AbbVie outperformed in 2022 and could be primed for more gains in 2023
Every day for the next week, we're going to highlight one of Schaeffer's top seven picks for 2023. First up, we have drugmaker AbbVie Inc (NYSE:ABBV). To access the entirety of the 2023 report, click here.
The shares of pharmaceutical name AbbVie (ABBV) have outperformed in 2022, and the pullback on the stock’s weekly chart found support at the year-to-date breakeven level. The rising 50-week moving average has defined the intermediate trend since the stock’s low in 2020 as well, making now an ideal time to bet big on ABBV in the coming year.
ABBV’s Relative Strength Index (RSI) on the weekly chart shows a move above the 50 mark, after previously being in an oversold condition. This comes just as the shares are breaking out of a bullish falling wedge pattern on the same chart. Analysts are mostly split on the equity, with 50% carrying a "buy" or "strong buy" and the remaining a "hold" or "strong sell." In simpler terms, this leaves plenty of room for upgrades in the weeks and months ahead.
Lastly, options are certainly an intriguing route, per the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 71 out of 100, which means ABBV has exceeded option traders' volatility expectations during the past 12 months.
