AbbVie (NYSE:ABBV) stock has garnered recent attention following the FDA approval of Emrelis for adults with previously treated lung cancer who exhibit an overabundance of the c-Met protein. This protein is known to promote tumor growth and resistance to certain therapies. This positive news coincides with ABBV's strong stock performance, which has risen nearly 10% in the past six months, notably outperforming the broader S&P Healthcare index, which has declined by 8%.

Contributing significantly to AbbVie's positive trajectory is the exceptional growth within its immunology portfolio, particularly Skyrizi and Rinvoq. These two drugs demonstrated substantial year-over-year growth of 71% and 57%, respectively, in the first quarter of 2025, building upon their impressive 50% growth in the previous year.

While the stock's current high valuation introduces a degree of risk, we maintain a positive outlook on AbbVie. This conclusion is based on a comparative analysis of the company's present valuation against its recent operating performance, as well as its current and historical financial condition. Our assessment across key parameters—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that AbbVie possesses a strong operating performance and a sound financial condition, as detailed below.

Despite concerns surrounding potential drug price controls, which Wall Street analysts anticipate will likely face legal challenges and be difficult to implement, AbbVie’s specific performance appears robust, largely driven by its successful immunology drugs. However, for investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see – Is UNH Stock Now A Falling Knife?

Going by what you pay per dollar of sales or profit, ABBV stock compared to the broader market.

AbbVie's Revenues have grown marginally over recent years.

AbbVie’s profit margins in the Trefis coverage universe.

AbbVie's balance sheet looks .

ABBV stock has the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six .

Covid Pandemic (2020)

In summary, AbbVie's performance across the parameters detailed above are as follows:

• Profitability: Neutral
• Financial Stability: Weak
• Downturn Resilience: Extremely Strong

In addition: See Buy or Sell AbbVie Stock.

AbbVie's performance, when initially compared to the benchmark S&P 500 index across the aforementioned parameters, appears moderate. However, a closer examination of the adjusted figures reveals a more compelling picture. For example, the company boasts a robust adjusted net income margin of 32%. Furthermore, its price-to-earnings (P/E) ratio, based on adjusted trailing earnings of $10.27 per share, stands at a reasonable 18x.