Many tech stocks have gone down along with the tech-heavy nasdaq compositein recent months. This is partly because recession fears are increasing. Although some beaten-down companies may eventually bounce back – making them viable for those with longer investment horizons – some investors are choosing to move their cash to more stable companies, perhaps because they are relatively close to retirement and are looking to avoid significant volatility.
For investors looking for more stable stocks, let’s consider two in the healthcare sector that might be worth buying right now: AbbVie (ABBV 2.86%) And amgen (AMGN 1.51%).
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1. AbbVie
AbbVie is leading pharmaceutical company With a pharmaceutical portfolio that spans multiple therapeutic areas. The company’s immunology lineup includes Skyrizi and Rinvoq. In oncology, it markets drugs such as Imbruvica and Vencleta, while its neurology portfolio includes migraine drug Qlipta. None of these products are products that patients will stop taking, even if a recession hits and pockets become tighter.
This makes AbbVie a relatively safe stock to hold during a recession. The company also claims excellent long-term prospects. AbbVie’s biggest growth drivers, Skirzi and Rinvoq, have also impressed management, which has raised its guidance for both of them by multiples. AbbVie now expects combined sales of Skyrizi and Rinvoq to exceed $31 billion in 2026, a year ahead of schedule.
today’s change
(-2.86%) $-6.14
current price
$208.84
key data points
market cap
$380B
day limit
$207.71 -$214.56
52wk range
$164.39 -$244.81
volume
5.1M
average volume
7.4M
gross margin
70.12%
dividend yield
3.09%
AbbVie’s Botox franchise is also performing well. The company’s management once argued that due to the complexity of the molecule, it is unlikely that we will see a biosimilar version of Botox. This, combined with the strong brand name it has built over the years, makes it an important product for AbbVie’s future, and the company can generate consistent revenue from this franchise for a very long time.
Meanwhile, AbbVie should also launch new products given its deep and diverse pipeline. And finally, AbbVie is a great income stock, given its dividend kingA company with at least 50 consecutive annual payout increases. All of these factors make AbbVie stock an excellent choice for investors who want to manage portfolio volatility.
2. Amgen
Amgen is another leading drugmaker whose business should remain stable in tough economic times. The company has faced several challenges recently, including the loss of patent exclusivity for Prolia, one of its growth drivers last year, its osteoporosis (a bone disease) drug. That said, Amgen has a huge portfolio and an even more attractive pipeline. Products such as Tezspire for asthma and the cholesterol-lowering drug Repatha continue to grow in sales.
today’s change
(-1.51%) $-5.34
current price
$347.94
key data points
market cap
$190B
day limit
$345.87 -$354.16
52wk range
$261.43 -$391.29
volume
1.6m
average volume
2.8M
gross margin
70.47%
dividend yield
2.73%
Meanwhile, Amgen is developing new drugs such as an investigational maritide. GLP-1 The therapy is currently in Phase 3 trials. Maritide could be Amgen’s way of capitalizing on the huge and growing weight loss market. Over the next few years, Amgen should make meaningful clinical advances and launch several new drugs even beyond the highly promising weight management area.
Finally, Amgen is also a solid dividend stock. Although it’s not the dividend king, the biotech has increased its payout every year since its debut in 2011. With such a track record, investors can be confident that it will hold up even in a downturn, especially given Amgen’s strong underlying business.