5 Best Stocks to Buy for Deflation

2. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 71

AbbVie Inc. (NYSE:ABBV) is an American biopharmaceutical company. As healthcare remains one of the safest sectors despite economic downturns, AbbVie Inc. (NYSE:ABBV) is a significant stock to consider. The company also has a strong history of increasing dividends annually since its inception. AbbVie Inc. (NYSE:ABBV) declared on September 9 a $1.41 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record as of October 14. On September 23, AbbVie Inc. (NYSE:ABBV) delivered a dividend yield of 3.94%. 

JPMorgan analyst Chris Schott said on September 21 that AbbVie Inc. (NYSE:ABBV) remains one of his favorite large cap ideas as investors focus on Humira generics and the company’s trough earnings profile. The analyst continues to see a solid case for multiple expansion and maintains an Overweight rating on the shares with a $180 price target.

According to Insider Monkey’s data, 71 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV) at the end of the second quarter of 2022, compared to 76 funds in the last quarter. Rajiv Jain’s GQG Partners is a significant shareholder of the company, with more than 3 million shares worth $467.6 million. 

Here is what ClearBridge Investments specifically said about AbbVie Inc. (NYSE:ABBV) in its Q2 2022 letter:

“We added to our health care exposure in the quarter with the purchases of Straumann Holding (OTCPK:SAUHF), a Swiss manufacturer of medical instruments, implants and related supplies for dental procedures, in the secular bucket and U.S. pharmaceutical maker AbbVie Inc. (NYSE:ABBV) in the structural bucket. Straumann is the global market leader in dental implants with 29% overall share, a meaningful position within premium implants and smaller share in value implants. The company is also involved in clear aligners through a series of acquisitions as well as peripheral capital equipment around those businesses.

Growth will come from increasing share in both value implants and clear aligners through expansion in emerging markets on top of market growth in its premium implant business. AbbVie is undergoing a transition in anticipation of loss of exclusivity for its blockbuster Humira in the next several years with several commercial therapeutics, led by Skyrizi for psoriasis and Rinvoq for rheumatoid arthritis.”