North Chicago, Illinois-based AbbVie Inc. (ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. With a market cap of $371.7 billion, the company discovers and develops medicines and therapies that solve health issues across immunology, oncology, aesthetics, neuroscience, and eye care. 

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ABBV definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the general drug manufacturers industry. ABBV stands out in the fields of immunology and oncology with its extensive product portfolio, featuring leading drugs such as Humira, Imbruvica, and Rinvoq, combined with significant investments in R&D, ensuring a steady pipeline of innovative therapies and strengthening its global presence. 

Despite its notable strength, ABBV slipped 3.8% from its 52-week high of $218.66, achieved on Mar. 10. Over the past three months, ABBV stock gained 13.4%, outperforming the S&P 500 Index’s ($SPX) 9.3% gains during the same time frame.

In the longer term, shares of ABBV rose 18.4% on a YTD basis, outperforming SPX’s YTD gains of 9.8%. However, the stock climbed 7.7% over the past 52 weeks, underperforming SPX’s 15.5% returns over the last year.

ABBV has been trading above its 50-day and 200-day moving averages since early June, experiencing some fluctuations, indicating a bullish trend.

AbbVie is facing challenges due to declining sales of its blockbuster drug Humira, which is expected to continue declining due to biosimilar erosion. Additionally, the company is experiencing slower market growth for its Juvederm fillers in the U.S. and China due to challenging market conditions and weakened consumer sentiment. Sales of Humira 

ABBV's shares dipped slightly on Jul. 31 despite beating Q2 earnings expectations, with revenue rising 6.6% year-over-year to $15.4 billion, and adjusted EPS increasing 12.1% from the year-ago quarter to $2.97. The company also raised its fiscal 2025 adjusted EPS guidance to a range of $11.88 to $12.08.

In the competitive arena of general drug manufacturers, Eli Lilly and Company (LLY) has lagged behind ABBV, with a 5.1% downtick on a YTD basis and 22.8% losses over the past 52 weeks.

Wall Street analysts are reasonably bullish on ABBV’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean price target of $215.81 suggests a potential upside of 2.6% from current price levels.