Is AbbVie Stock Too Cheap to Ignore at Today's Price?

AbbVie (NYSE: ABBV), a pharmaceutical leader, has faced some challenges over the past three years. The company is managing some patent cliffs and clinical setbacks that worried investors and dinged its stock price. Despite all that, the stock still performed well over this period. Yet, there is an argument to be made that AbbVie remains attractively valued and will grow into its valuation over the next five years or so, delivering market-beating returns in the process.Image source: Getty Images.Let's consider two metrics that help make a case for AbbVie's shares being undervalued at current levels. First, the stock trades at 16.8 times forward earnings. That's slightly lower than the 18.3 average for the healthcare sector, and the 22.6 average for the S&P 500. AbbVie's price/earnings-to-growth (PEG ratio) of 0.43 also puts the stock well within the undervalued range. Of course, numbers can't tell us everything. But these two, which are well-respected valuation metrics, at least suggest that AbbVie is too cheap to ignore.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool