AbbVie's Prognosis: The February Dip Looks Like a Buy Signal

When the price of a high-quality stock such as AbbVie (NYSE: ABBV) declines after a report revealing growth, outperformance, and better-than-expected guidance, it's almost always a good time to buy.

The only question is how far the stock price may pull back, and in this case, it likely won't be far. This stock is well-supported by market trends, including institutional and analyst coverage that point to accumulation and a steady price uptrend.

The likely outcome is that this healthcare market finds a bottom in the $200 range and quickly rebounds to record levels. 

AbbVie Pulls Back After Beat-and-Raise Quarter, Strong Guidance

AbbVie had a solid Q4 2025, revealing the strength of its portfolio and immunity to the once-feared Humira patent cliff. While Humira sales fell approximately 26% year-over-year (YOY), it remains a blockbuster drug, contributing more than $1 billion in quarterly revenue, and systemwide growth is evident, up 10% YOY and better than expected. Segmentally, Immunology advanced by 18.3% on the strength of Skyrizi and Rinvoq, each up more than 30%, while Neurology gained 17.9%. Weakness was seen in Oncology and Aesthetics, both down about 1%, but growth is expected to resume in the upcoming year as comps get easier and new products are launched. 

Margin is also healthy. The combination of revenue growth and operational quality drove margin expansion and accelerated earnings growth. Adjusted earnings grew by more than 25% compared to the 10% top-line growth, outperformed by 220 basis points, and are expected to remain strong in F2026. Guidance calls for $14.37 in adjusted EPS at the low end of the range, fully 15 cents better than MarketBeat’s reported consensus, and likely to be cautious. The company is working hard on product optimization, higher-margin therapies, and operational efficiency.

Analysts and Institutions Accumulate AbbVie, Indicate Double-Digit Upside

The analysts’ response to 2026 guidance is favorable, highlighting double-digit growth in key product lines and pipeline advancements. Although no revisions were issued the morning of the release, the commentary aligns with trends including steady coverage, a firm Moderate Buy rating, and an uptrend in the price targets. As it stands, consensus forecasts a move to $250, a 25% upside from critical support targets and sufficient for a fresh all-time high, while high-end targets suggest as much as 50% upside is possible. 

Institutional activity is likewise bullish, with the group owning more than 70% of the stock and buying on balance. Activity was bullish throughout 2025, running a balance of nearly $2 bought for each $1 sold, and remains so in early 2026, providing market support and a tailwind for price action. 

Dividends are among the reasons why institutions and analysts like this stock. Technically a Dividend King due to its relationship with Abbott Laboratories (NYSE: ABT), AbbVie pays out a solid 70% of its robust earnings, yielding more than 3% with shares near record highs. 

On track for a 13th post-spin-off distribution increase, the company runs a 6% distribution compound annual growth rate and can sustain it for the foreseeable future. The biggest risk for investors is dilution, and the risk of that is small. The company’s share count increases incrementally due to share-based compensation; however, gains are offset by share buybacks

AbbVie Shows Support at Critical Levels 

AbbVie’s price pullback is a concern as it topped 5%, but the risk of a deeper downside movement is already being mitigated. Early action reveals support at critical levels, suggesting the correction is already over. The stock price will regain traction within weeks, if not days, in this scenario and could reach the $250 consensus price target before mid-year, potentially as high as $300 in the bull-case scenario. 

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The article "AbbVie’s Prognosis: The February Dip Looks Like a Buy Signal" first appeared on MarketBeat.