In February 2025, stock markets fell on average. The S&P 500 (SPY) fell by 1.27%, due mostly to a decline in technology stocks. Investors reallocated their holdings into the drug sector.
AbbVie (ABBV) led the advance in drug stocks, gaining 19.27% and closing near a 52-week high. The firm declared a $1.64 per share quarterly dividend in mid-February. In its Q4/2024 report, AbbVie reaffirmed its revenue growth target in the mid-single-digit percentage. Skyrizi and Rinvoq are the blockbusters that will add $15.9 billion and $7.9 billion, respectively, in revenue.
Tobacco firm Philip Morris (PM) surged from a $120 bottom to close at $155.28 on Feb. 28. In Q4, it posted revenue of $9.71 billion, rising by 7.3% Y/Y. For the year, the firm is expecting an adjusted EPS of $7.04 to $7.17. The firm is transitioning to a smoke-free product line-up. This will free the firm away from the often disliked, traditional tobacco market.
Investors should consider British American Tobacco (BTI), too. The stock found support at $38. The firm is targeting a 3% to 5% growth rate by 2026.
Altria (MO) is breaking out after testing support at $52. NJOY Daily is an e-vapor product that could fuel Altria’s growth. This has marketing authorizations from the FDA.
