J&J or AbbVie: Which Stock Deserves a Place in Your Portfolio Now?

Zacks Investment Research··Read original
2▲2 ▼1Impact / 5
Summary · why it matters

Johnson & Johnson and AbbVie are both leading drugmakers with strong franchises in immunology, oncology and neuroscience, but face patent headwinds that make pipeline execution critical. J&J's diversified model spans pharmaceuticals and medical devices, with 28 platforms exceeding $1 billion in annual sales and a dividend track record of 64 consecutive years of increases. The company expects 10 new products to reach peak sales of $5 billion each and targets around $100 billion in revenue for 2026, though it contends with Stelara's loss of exclusivity and talc litigation. AbbVie has successfully navigated Humira's patent cliff, driven by Skyrizi and Rinvoq, which are expected to generate more than $31 billion combined in 2026, and is bolstering its pipeline through acquisitions including Apogee Therapeutics for approximately $10.9 billion. From a valuation standpoint, AbbVie trades at 16.51 times forward earnings versus J&J's 21.01, while both offer similar dividend yields around 2.1%. Analysts currently assign a Zacks Rank of 3, or Hold, to each stock, with J&J showing stronger estimate revisions and stock performance year-to-date.

Impact on assets 4

Biotech & Genomic Medicine± Mixed · 4 stocks
AbbVie Inc
ABBV
▲ PositiveCapitalrelevance

AbbVie successfully navigated Humira's patent cliff with Skyrizi and Rinvoq expected to generate >$31B combined in 2026, and trades at a lower forward P/E of 16.51.

Johnson & Johnson
JNJ
▼ NegativeRegulationrelevance

J&J faces talc litigation and Stelara's loss of exclusivity, creating headwinds.

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