Is AbbVie Inc. (ABBV) the Best Stock for 15 Years?

We recently published a list of Long-Term Stock Portfolio: 15 Best Stocks for 15 Years. In this article, we are going to take a look at where AbbVie Inc. (NYSE:ABBV) stands against other best stocks for 15 years.

Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance.

Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Sectors Providing Investment Opportunities

With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration’s emphasis on expanding LNG (liquified natural gas) production.

The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments.

Our Methodology

We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

AbbVie Inc. (NYSE:ABBV)

10-year Revenue Growth: ~10.9%

Number of Hedge Fund Holders: 85

AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that is engaged in the research and development, manufacture, commercialization, and sale of medicines and therapies. Erste Group upped the company’s stock from “Hold” to “Buy.” The rating stems from the company’s strong sales growth forecast and promising pipeline of new products. Notably, AbbVie Inc. (NYSE:ABBV) has reaffirmed expectations for a high single-digit compound annual revenue growth rate through 2029 and has increased its 2027 combined sales outlook for Skyrizi and Rinvoq to over $31 billion.

AbbVie Inc. (NYSE:ABBV)’s strategic emphasis on expanding the product portfolio appears to contribute to its sustained growth and profitability over the long term. Elsewhere, Bernstein SocGen Group remains optimistic about the company, citing its entry into the obesity treatment market via the Gubra agreement. This move is regarded as a strategic diversification, aligning AbbVie Inc. (NYSE:ABBV)’s long history of successful ventures outside the core focus. AbbVie Inc. (NYSE:ABBV) believes that this partnership provides a strong opportunity based on the potential to address patient needs while, at the same time, bolstering long-term growth.

Ariel Investments, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“We added research-based biopharmaceutical company, AbbVie Inc. (NYSE:ABBV) following a recent pullback in shares related to a Phase 2 clinical failure for schizophrenia drug, Emraclidine. Despite the setback, we believe AbbVie’s core inflammation and immunology (I&I) business is set to outperform. We expect next-generation I&I drugs, Skyrizi and Rinvoq, used in the treatment of inflammatory bowel disease, to be key long-term revenue drivers.”

Overall, ABBV ranks 13th on our list of best stocks for 15 years. While we acknowledge the potential of ABBV as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.