Why AbbVie Stock Looks Like a Dirt Cheap Buy Right Now

Key Points
AbbVie's growth rate has been accelerating in recent quarters.
Its diverse business can enable it to continue growing at a strong rate in the future.
The stock trades at just 14 times its estimated future earnings.
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AbbVie (NYSE: ABBV) is a top healthcare stock, but it isn't trading like one of late. This year, it's down 11%, and it has been underperforming the S&P 500, which is down only 4%. Investors have been bearish on healthcare stocks as a whole, with the Healthcare Select Sector SPDR ETF falling by 6% thus far. Concerns about healthcare reform and government cuts have been weighing on the sector.
For investors, however, now can be an opportune time to buy low on a quality stock such as AbbVie. While it may not be doing well of late, that doesn't mean it can't still be a great buy for the long haul. Here's why this might be an underrated stock to buy right now.
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AbbVie's business is showing strength
The past couple of years haven't been easy for AbbVie, as the pandemic disrupted regular hospital operations, and the healthcare company has also lost patent protection for its top drug, Humira. But AbbVie has shown that it can pivot and adapt, with its new immunology drugs Skyrizi and Rinvoq doing well in filling the gap. Together, those drugs generated $25.9 billion in revenue last year, while Humira sales were cut in half, totaling just $4.5 billion.
AbbVie's revenue totaled $61.2 billion in 2025, which increased by 9% from the previous year. The company's growth rate has been accelerating in recent quarters, showing a strong upward trend.
The company's diverse operations give it plenty of different levers to pull on to drive more growth. Even though its core business did well last year, its aesthetics sales fell by 6%, and that segment could have room to grow in the future as consumer discretionary spending rises.
The stock already looks like a steal of a deal
Even if AbbVie's growth rate doesn't accelerate further, it's arguably already a cheap-looking stock to own right now. It is trading at a forward price-to-earnings multiple of just 14, which is well below the S&P 500 average of 21.
Its price-to-earnings-growth (PEG) multiple of 0.49 also suggests it's incredibly cheap given the growth that analysts expect from the business over the next five years. Anything below 1.0 for a PEG multiple is considered cheap. And the lower the multiple, the better the bargain.
While the stock may not be a terribly exciting investment to own today, there's loads of potential upside for it in the future. And with an above-average dividend yield of 3.4%, there's plenty of incentive to simply buy and hold AbbVie shares for the long haul.
Should you buy stock in AbbVie right now?
Before you buy stock in AbbVie, consider this:
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.