5 Best Stagflation Stocks To Buy

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1. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 80

AbbVie Inc. (NYSE:ABBV) is an Illinois-based biopharmaceutical company that originated as a spin-off of Abbott Laboratories. On October 28, AbbVie Inc. (NYSE:ABBV) declared a $1.48 per share quarterly dividend, a 5% increase from its prior dividend of $1.41. The dividend is distributable on February 15, 2023 to shareholders of record on January 3. AbbVie Inc. (NYSE:ABBV)’s dividend yield on December 1 came in at 3.67%. 

Credit Suisse analyst Trung Huynh on November 17 initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Outperform rating and a $170 price target, naming it one of his two top ideas a relative basis among the U.S. large-cap biopharma peer group. AbbVie Inc. (NYSE:ABBV)’s 45%, plus or minus 10% erosion, expectation of Humira is “too conservative” and the analyst sees long-term resilience from portfolio leverage as well as incremental growth from the company’s “robust pipeline”.

According to Insider Monkey’s data, 80 hedge funds were long AbbVie Inc. (NYSE:ABBV) at the end of September 2022, compared to 71 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent stakeholder of the company, with 1.75 million shares worth $235.5 million. 

Here is what Baron Funds specifically said about AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

Follow Abbvie Inc. (NYSE:ABBV)

You can also take a look at 14 Best Beginner Stocks To Invest In and 10 Best Robinhood Stocks To Buy

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