AbbVie Inc is a biopharmaceutical company that discovers, develops, manufactures and sells a range of pharmaceutical products for treating chronic autoimmune diseases, virology and neurological disorders. AbbVie Inc is a drug company with a strong exposure to immunology and oncology. The company’s top drug, Humira, represents over half of the company’s current profits. The company was spun off from Abbott in early 2013.
It has a very profitable business with Net Margin of 17.3% and the whole company is traded at favorably low Price-to-Free-Cash-Flow ratio of just 10.6 times. That essentially means that the total free cash flow generated by company in less than 11 years will be equal to the whole market capitalization. Not only it is profitable. On top of that ABBV stands out for solid dividend yield of 4.9%!
Since the beginning of 2013 ABBV has been nicely following a five up fractal. In January 2018 it topped at $125.86. I count that top as the top of the wave ( 3 ) up.
Off that top we got a five wave move down that bottomed at 77.50 in November 2018. I count that decline as subwave ( A ) of ( 4 ) down. Off that low we are expected to get a corrective wave ( B ) up structured as A up, B down and C up. It looks like a rally that topped at 90.48 in December 2018 was A of ( B ). And subsequent decline that bottomed at 75.55 in January 2019 was B of ( B ). As you can see on the weekly chart below, we got several candles with long down wicks in January 2019. That is a sign that bears failed to move price down and there was a solid demand from bulls under $80. So we have a count suggesting a rally in wave C of ( B ) up and a good sign that decline in wave B of ( B ) was stopped by bulls. I have two hihg probability targets for a rally in wave C of ( B ) up: $93 (100% extension of wave A of (B), and $97.11 (123.6% extension ).