AbbVie Stock Hits a New 52-Week High. Has It Gotten Too Expensive to Buy?

When a banal hits a caller 52-week high, it tin beryllium a motion that things are going good for the concern and that investors are recognizing immoderate encouraging value. However, it besides means that the banal has go much costly of late. Thus, it isn't ever wide whether it's a bully buy, since buying a banal astatine an elevated terms tin pb to less-than-stellar returns aboriginal on.

Healthcare elephantine AbbVie (NYSE: ABBV) deed a caller 52-week precocious connected Monday. And successful the past 12 months, it's present up astir 40%. Can it spell adjacent higher, oregon has its valuation go excessively affluent to marque it a bully buy?

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Why a rally for AbbVie whitethorn person been overdue

While it whitethorn look similar AbbVie has go a blistery banal of late, fixed that it has deed caller highs, connected a year-to-date basis, it has risen by conscionable astir 11%. That's amended than the S&P 500's gains of astir 8%, but it hasn't been taking disconnected the mode immoderate apical maturation stocks have.

Given the company's level of earnings, the banal should arguably person been trading astatine a higher terms than it has. Even with its emergence successful worth this year, the banal trades astatine little than 18 times its estimated aboriginal net (based connected expert expectations). This is inactive beneath the S&P 500 mean of 21.

Due to concerns astir healthcare betterment nether the existent administration, investors whitethorn person been a spot hesitant to load up connected the stock. But with AbbVie continually reporting beardown numbers, it's been demonstrating coagulated resiliency, reminding investors arsenic to wherefore it's a apical bluish spot banal to own.

It isn't excessively precocious to bargain AbbVie banal

AbbVie is simply a maturation beast arsenic it continues to grow its concern done acquisitions. Most recently, it announced a $10.9 cardinal acquisition of Apogee Therapeutics, which volition grow its immunology portfolio. While acquisition-related expenses tin measurement connected its earnings, successful the agelong run, they alteration the pharmaceutical elephantine to diversify and make immoderate awesome results. on the way.

With an charismatic valuation, beardown financials, an appetite for much growth, and an above-average dividend that yields 2.7%, AbbVie makes for a terrific all-around banal to bargain and clasp for the agelong run. Although its stock terms whitethorn look inflated, being that it's astatine a caller 52-week high, it's not excessively precocious to bargain the stock, particularly if you're readying to bent connected to it for the agelong haul.