Today we are going to look at Abbvie to see if it is a stock that we should avoid or embrace. We will look at the 7 fundamental parameters I look to see if a stock can be consider a growth stock. Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Abbvie in the next 72 hours and do not hold any positions in Abbvie (ABBV).
Abbvie, Inc. A Stock to Avoid or Embrace?
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does Abbvie, Inc meet these 7 markers?
- Market Cap: 120.01B (YES)
- EPS growth past 5 years: 7.60% (YES)
- P/E: 22.36 YES
- EPS growth next 5 years: 9.58% (YES)
- Sales growth past 5 years: 11.80% (NO)
- Debt/Equity: N/A (NO)
- Sales growth qtr over qtr: 7.30% (YES)
I used Finviz.com for the fundamental analysis screener. With ABBV only hitting 5 out of the 7 markers I cannot pass this off as a growth stock. That doesn’t necessarily mean the fundamentals are bad. It just shows me that ABBV should not be considered a potential candidate for being labeled as a growth stock.
One thing to note is the Debt/Equity parameter was not listed on Finviz so we really should consider it being 5 out of 6 parameters at this current time.
Technical Analysis for Abbvie, Inc. (ABBV)
The first setup Abbvie has working is the 38-127 trade. Price has bounced off of the 78.6% Fibonacci retracement level so the current exit is the pink line at $94.05. If price doesn’t hit $94.05 first but goes down and hits the green line at $63.32 then the exit would move down to just below the 61.8% Fib level at $87.00.
After that the exit would not move again even if price continues to go lower. So with price currently at $80.98 this is what I consider a “free trade” since your final exit doesn’t have to move from $87.00.
The next setup is a short setup. It is using my Reverse Lightning Trade setup. Since price has hit the 38% Fib retracement the current exit is the pink line at $77.71. But if price goes up and hits the top green line at $95.04 first then the exit moves to just north of the 50% Fib retracement (the red line) at $86.60.
So depending on how you view ABBV there is a short and a long setup that are currently playing out.
Popular Links
Here are a couple of links if you are looking at how I view the market and some trade setups. You can create your own trading style and setups. Quit paying losing traders to teach you. The only thing they teach is how to lose money.
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