We recently published a list of 10 Best Safe Stocks To Buy According to Analysts. In this article, we are going to take a look at where AbbVie Inc. (NYSE:ABBV) stands against other best safe stocks to buy according to analysts.
Market Will End 2024 Positively, Strategist Says
Statistically, November and December tend to be great months for stocks. However, with the economic turmoil in question, will stocks end the year on a positive note? On November 30, Quincy Krosby, chief global strategist at LPL Financial, joined Market Domination on Yahoo Finance to discuss her market thesis. Krosby believes that the market will end the year in “positive territory,” assuming that no unexpected or headline events occur moving forward. She also added that portfolio managers will strive to report gains, and will most likely close books before the end of 2024.
Krosby revealed that the market is very “enthusiastic” about the new administration, despite serious concerns over tariffs. She shared that while 2024 has been a solid year for stocks, some moderation is expected in 2025. She also said that the number of earning revisions coming down for the year ahead is evidence of moderation, adding that if the Fed decides to withdraw its easing cycle plan or alter it, the market is going to be “pretty disappointed.”
She stated that in 2025, the market will have greater funding needs, reaching nearly $7.5-8 trillion, and greater uncertainty along with geopolitical risks. However, despite this, the market has been marching higher and navigating through these risks and is expected to continue doing so. Speaking about “waning business pricing power,” Krosby stated that while consumers have been spending, they are looking for “more bargains.” Companies have also been trying to beat tariffs and figure out which areas of the market are going to get more expensive.
Speaking of market uncertainty, Krosby believes how the market unfolds will be crucial and critical. Overall, she shared her bullish stance on industrials, especially names in the defense, building, and defense manufacturing industries. She also added that stocks in the communication sector, especially those with higher dividend offerings, particularly if the Fed easing cycle goes as planned, are going to perform better in the coming year.
While the future of the Fed cycle and inflationary pressures may be uncertain, some stocks have historically been safe to invest in. That said, let’s take a look at the 10 safe stocks to buy according to analysts.
Our Methodology
To come up with the 10 safe stocks to buy according to analysts we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10-year revenue growth rate for each stock and a solid analyst upside, of at least 8%. The 10 safe stocks to buy according to analysts are in ascending order of the analyst upside as of December 9, 2024. We also included the hedge fund sentiment of each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.
AbbVie Inc. (NYSE:ABBV)
Analyst Upside as of December 9, 2024: 16%
10-Year Revenue Growth Rate: 10.9%
Number of Hedge Fund Holders: 68
AbbVie Inc. (NYSE:ABBV) is one of the safest stocks to buy according to analysts. The pharmaceutical company is one of the biggest biotechnology companies in the United States. With an immense focus on advanced research, ABBV is making strides in drug development and treatment discovery. In the third quarter of 2024, the company generated $14.46 billion in worldwide net revenues, an increase of nearly 4%. Of this global net revenues for its immunology portfolio were $7.05 billion, up by nearly 4%. The company also saw significant revenue growth rates in its oncology and neuroscience portfolio, up by 12% and 16% respectively.
Following its growing momentum in pipeline expansion and commercial expansion, the company increased its full-year revenue guidance and quarterly dividend. Aligning with its strategy, AbbVie Inc. (NYSE:ABBV) completed the acquisition of Cerevel during the quarter, expanding its neuroscience portfolio. During the same quarter, AbbVie Inc. (NYSE:ABBV) announced a definitive agreement to acquire Aliada Therapeutics for $1.4 billion, a biotechnology company.
Overall, AbbVie Inc. (NYSE:ABBV) received approvals for major drugs and treatments and also expanded its existing pipelines, positioning it as a leader in the pharmaceutical industry and an emerging one in the biotechnology industry. At the end of Q3 2024, 68 hedge funds were bullish on the stock, according to our Insider Monkey database.
Overall, ABBV ranks 5th on our list of best safe stocks to buy according to analysts. While we acknowledge the potential of ABBV to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
