DGI For The DIY

[EricL]

(09-07-2017, 10:03 AM)divmenow Wrote: ABBV has been a great performer this year. Its up like $18 in the past 3 weeks. I wonder how much higher it can go?

Yeah, it seems a lot of biotech has been moving up of late, GILD has done well too.

I have ABBV right at fair value here. It's trading at a 14.5 PE on 2017 estimates, right in line with historical valuation levels.

Analysts are still projecting double-digit EPS growth going forward, which is pretty impressive to go along with a 3.2% yield.

It should also announce a new dividend increase in October, which will probably be another double-digit raise.

I already have an over-weight position, so I won't be adding, but if I didn't ABBV would still be at the top of my list among the drug stocks.