The Pharmaceutical Sector Is Surging. Here’s 1 Stock Every Investor Should Have on Their Radar.

This drugmaker has a strong portfolio of best-selling drugs and a growing pipeline.

Pharmaceutical stocks have been on fire this year. The iShares U.S. Pharmaceuticals ETF (IHE +0.01%), which tracks 43 drugmakers, is up almost 29% year to date and 11% over the past month.

There are lots of great stocks in this sector. But one that investors should be watching closely right now is AbbVie (ABBV 1.09%). The company is focused on drugs that treat a range of diseases in the areas of immunology, rheumatology, gastroenterology, dermatology, and oncology, among others.

Today’s Change

(-1.09%) $-2.50

Current Price

$226.21

Key Data Points

Market Cap

$400B

Day’s Range

$225.08 – $229.14

52wk Range

$164.39 – $244.81

Volume

136K

Avg Vol

5.9M

Gross Margin

69.68%

Dividend Yield

2.90%

The company released its quarterly results on Oct. 31, and they exceeded Wall Street’s forecasts. Sales climbed 9.1% to $15.78 billion, which was significantly higher than the $15.59 billion expected. The company posted earnings of $1.86 per share, 11 cents above the $1.77 expected.

AbbVie has a strong stable of top-performing drugs. Sales of Skyrizi, an immunology drug that treats conditions like psoriasis and arthritis, rose a whopping 46.8% to $4.7 billion during the quarter. Sales of Rinvoq, a similar immunology drug, climbed 35.3% to $2.18 billion. And Humira, which is used to treat plaque psoriasis, brought revenue of $993 million, up 55.4% from a year ago.

Image source: Getty Images.

Management said it believes Rinvoq will hit $11 billion in annual revenue by 2027, and Skyrizi will reach the $20 billion mark. AbbVie’s current stable of best-selling drugs is impressive, while it continues to expand its pipeline with acquisitions. This is a hot stock in a hot sector well worth watching.

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