UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 6, 2025 ABBVIE INC. (Exact name of registrant as specified in its charter) (State or other Jurisdiction (Commission File Number) (IRS Employer Delaware 001-35565 32-0375147 of Incorporation) Identification No.) 1 North Waukegan Road ...

Reports Full-Year Diluted EPS of $2.39 on a GAAP Basis, a Decrease of 12.1 Percent; Adjusted Diluted EPS of $10.12, a Decrease of 8.9 Percent; These Results Include an Unfavorable Impact of $1.52 Per Share Related to 2024 Acquired IPR&D and Milestones Expense  Delivers Full-Year Net Revenues of $56.334 Billion, an Increase of 3.7 Percent on a Reported Basis and 4.6 Percent on an Operational Basis   Full-Year Global Net Revenues from the Immunology Portfolio Were $26.682 Billion, an Increase of 2.1 Percent ...

Core Viewpoint - AbbVie Inc. is experiencing stagnation in its stock performance, while Novartis AG shows stronger bullish momentum ahead of their fourth-quarter earnings reports [1]. AbbVie Analysis - AbbVie stock is trading above its short-term moving averages, with the eight-day SMA at $173.14 and the 20-day SMA at $175.20 indicating bullish signals [2]. - However, longer-term trends reveal AbbVie is closely aligned with its 50-day SMA at $175.33 and below its 200-day SMA at $178.77, indicating potential downside pressure [2]. - The MACD at negative 0.89 supports a bearish outlook, while the RSI at 50.39 suggests neutral momentum [2]. - Overall, AbbVie is struggling for direction, with slight selling pressure limiting breakout potential [3]. - A strong earnings beat could help AbbVie surpass key resistance levels, but the current setup indicates vulnerability to further consolidation [3]. Novartis Analysis - Novartis is trending higher, trading above its short-term and mid-range moving averages, with the eight-day SMA at $101.27, the 20-day SMA at $99.57, and the 50-day SMA at $100.44 acting as support [4]. - The MACD at 0.68 indicates bullish momentum, and the RSI at 63.61 shows strength without being overbought [4]. - Despite the positive indicators, Novartis remains below its 200-day SMA at $106.77, suggesting some caution is warranted [4]. Investor Implications - Heading into earnings, Novartis has a technical advantage with a stronger bullish structure and upward momentum, while AbbVie is in a range and requires a catalyst for upward movement [5]. - Key resistance levels to watch are AbbVie above $177 and Novartis above $106 for potential movement post-earnings [5].

Core Viewpoint - AbbVie is expected to report its fourth-quarter and full-year 2024 earnings on January 31, with sales estimated at $14.92 billion and earnings at $2.09 per share, although earnings estimates for 2025 have slightly declined from $12.27 to $12.17 per share [1][7]. Financial Performance - AbbVie has a strong earnings surprise history, exceeding expectations in the last four quarters with an average earnings surprise of 2.29%, including a 2.74% surprise in the last quarter [3]. - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5]. Sales Drivers - Sales in the fourth quarter are likely driven by newer immunology drugs, Skyrizi and Rinvoq, with consensus estimates of $3.58 billion and $1.72 billion, respectively [7]. - Humira, AbbVie's blockbuster drug, is facing sales erosion after losing patent protection in January 2023, with consensus estimates for its sales at $1.94 billion [8]. - Sales for the J&J-partnered Imbruvica are expected to decline due to competition, while Roche-partnered Venclexta sales are likely to rise [9]. - Neuroscience sales are projected to be strong, driven by drugs like Vraylar and new migraine treatments, with estimates at $2.47 billion [10]. - Aesthetics product sales are expected to be negatively impacted by sluggish growth in the U.S. and China, with estimates at $1.39 billion [11]. Stock Performance and Valuation - AbbVie shares have risen nearly 8% over the past year, outperforming the industry but underperforming the S&P 500 [12]. - The stock trades at a forward price/earnings ratio of 14.39, lower than the industry average of 16.00, indicating attractive valuation [15]. Investment Outlook - Despite challenges such as Humira's biosimilar erosion and competitive pressures, AbbVie is well-positioned for growth, driven by strong sales from Rinvoq, Skyrizi, and other newer drugs [18]. - The company is generating double-digit sales growth from its ex-Humira platform, which constitutes over 80% of total sales [19]. - AbbVie is actively pursuing collaborations to strengthen its pipeline and drive long-term growth [20]. - Long-term investors may find current valuations reasonable for investment, with potential opportunities arising from any significant share price declines [21].

Core Insights - High-yield dividend stocks have outperformed the S&P 500 over 20+ years, indicating that sustainable high dividend yields can signal intrinsic value [1] - Companies with above-average dividend yields typically exhibit strong free cash flows, resilient business models, and shareholder-focused management [2] Company Summaries AbbVie Inc. (ABBV) - AbbVie is a leader in the healthcare sector, with growth driven by its immunology franchise despite the patent expiration of Humira in the U.S. [4] - The stock trades at a forward P/E ratio of 14.2, significantly lower than the S&P 500's 23.6, supported by a robust clinical pipeline with over 90 compounds in development [5] - AbbVie offers a 3.85% dividend yield with a 213% payout ratio, backed by strong free cash flow and a clear path to earnings growth from new drug launches [6] HSBC Holdings plc (HSBC) - HSBC provides exposure to Asian financial markets, benefiting from rising affluence and demand for banking services, with a global network across 60 countries and $3 trillion in assets [7] - The stock has a forward P/E ratio of 8.2, below the banking industry average of 12.9, indicating a potential undervaluation given its strong position in high-growth markets [8] - HSBC offers a 3.9% dividend yield with a conservative 50% payout ratio, supported by diversified revenue streams and a strong balance sheet [9] Pfizer Inc. (PFE) - Pfizer is viewed as a turnaround opportunity in pharmaceuticals, generating over $60 billion in annual revenue from key therapeutic areas [10] - The stock trades at a forward P/E ratio of 8.87, significantly below the S&P 500's 23.6, presenting a buying opportunity at a steep discount [11] - Pfizer has a 6.59% dividend yield with a concerning 222% payout ratio, though its diverse portfolio and strong free cash flow provide some assurance for sustainability [12][13] Philip Morris International Inc. (PM) - Philip Morris is leading the transition to reduced-risk tobacco products, with growth driven by the IQOS heated tobacco system [14] - The stock trades at a forward P/E ratio of 18.3, below the S&P 500's 23.6 but at a premium to tobacco industry peers, justified by its lead in reduced-risk products [15] - The company has an 83% payout ratio, raising concerns about dividend sustainability, but offers a healthy 4.24% yield supported by stable free cash flows [16] Investment Strategy - High-yield dividend investing requires balancing current income with sustainability risks, and these four companies represent high-conviction income investments for 2025 and beyond due to their attractive yield and sustainability profiles [17]

Core Insights - AbbVie experienced a share price increase of nearly 4%, contrasting with the S&P 500's decline of 1.5% on the same day [1] - The price target increases from analysts were announced ahead of AbbVie's fourth-quarter earnings report scheduled for January 31 [2] Analyst Price Target Changes - Goldman Sachs raised its price target for AbbVie to $208 per share from $205, despite lowering some profitability estimates, while remaining optimistic about its immunology products [3] - Piper Sandler increased its price target to $227 per share from $220, citing similar reasons and highlighting a potential $3.5 billion noncash, after-tax impairment charge related to the investigational drug emraclidine [4] Company Strengths - AbbVie is recognized as a strong pharmaceutical stock, supported by a robust product lineup and a promising pipeline of developmental programs [5] - The company offers a generous dividend, which is notable in the pharmaceutical sector known for lower dividend payouts [5]

Group 1 - AbbVie has been recognized as a Top Socially Responsible Dividend Stock by Dividend Channel, highlighting its strong 3.9% dividend yield and positive social responsibility metrics [1] - The company is included in the iShares USA ESG Select ETF (SUSA), representing 1.06% of the fund's holdings, which amounts to approximately $52.91 million in ABBV shares [2] - AbbVie pays an annualized dividend of $6.56 per share, distributed quarterly, with the most recent dividend ex-date on January 15, 2025 [3] Group 2 - AbbVie operates within the Drugs & Pharmaceuticals sector, competing with companies such as Eli Lilly and Novo-Nordisk [4]

Core Insights - Cyclical companies, such as Freeport-McMoRan Inc. (FCX), can provide significant investment opportunities by trading within predictable ranges, allowing investors to buy low and sell high [1][3] - The recent performance of FCX, where shares rose 67% from $30 to $50, exemplifies the potential for high returns in cyclical stocks [3][4] - Eversource (ES) is expected to recover from a previous decline, with analysts projecting a revenue growth of 4% in 2025 and a 75% surge in cash flows [7][10] - AbbVie Inc. (ABBV) is experiencing a turnaround with new drug launches expected to match previous sales, alongside a favorable regulatory environment that could lead to a 20% upside in shares over the next year [13][15] - Kimberly-Clark Corp. (KMB) is positioned for a potential 15% share-price upside, supported by expected gross profit growth of 4% this year [20][21] Group 1: Freeport-McMoRan Inc. (FCX) - FCX shares dropped from $50 to $30 due to macroeconomic concerns, leading to a significant investment opportunity [3] - The stock's subsequent rise of 67% allowed for average gains of 119% through strategic selling [3][4] Group 2: Eversource (ES) - Eversource faced a 40% decline after abandoning offshore wind projects, resulting in substantial impairment charges [6][7] - Analysts predict a positive revenue growth of 4% for 2025 and a 75% increase in cash flows, indicating a recovery [7][10] - The announcement of the Stargate Project is expected to further boost Eversource's prospects, as it aligns with the growing demand for electricity [8][10] Group 3: AbbVie Inc. (ABBV) - AbbVie is navigating challenges from patent cliffs and regulatory pressures, but recent drug launches are showing promising results [11][13] - Analysts expect combined sales of new therapies to reach previous peak sales levels, suggesting a potential turnaround [13][15] - The regulatory landscape is shifting positively, with potential for a 20% upside in shares over the next year [15] Group 4: Kimberly-Clark Corp. (KMB) - Kimberly-Clark has maintained consistent profits but faces market fluctuations, trading between $120 and $145 [16][17] - Current trading at $127 presents an opportunity for a 15% upside, supported by expected gross profit growth [20][21] - The company is positioned to benefit from a temporary drawdown in market share, with analysts projecting an 11.8% increase in earnings per share [20]

Company Performance and Guidance - AbbVie (NYSE: ABBV) is set to report Q4 2024 results next week and will provide guidance for 2025 [2] - The company is managing the erosion of Humira effectively, but the decline in Humira's net sales remains a key factor to watch [2] Investment Platform Features - The Growth Stock Forum offers a model portfolio of 15-20 names updated regularly [2] - It includes a top picks list of up to 10 stocks expected to perform well in the current calendar year [2] - The platform provides trading ideas targeting both short-term and medium-term moves [2] - It features community dialogue and a space for questions [2]

Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to achieve high income with low risk and capital preservation [1] - The service provides DIY investors with essential information and portfolio/asset allocation strategies aimed at creating stable, long-term passive income with sustainable yields [1] - The portfolios are specifically designed for income investors, including retirees or near-retirees, and include seven different portfolios: 3 buy-and-hold, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] Group 2 - The offerings include two high-income portfolios, two dividend growth investing (DGI) portfolios, and a conservative NPP strategy portfolio characterized by low drawdowns and high growth potential [1]