AbbVie (ABBV) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The healthcare industry has proven to be a remarkably resilient place to put capital to work in a wide range of environments. From life-saving medicines and therapies to vaccines, these are just a few examples of the essential products that healthcare companies make that render them particularly defensive investments in a bearish environment. AbbVie (NYSE: ABBV) is a pharmaceutical giant.
If its profit margins are low, then it could easily swing to a loss if it faces headwinds or the economy as a whole struggles. A higher profit margin can also create an important buffer for the business, allowing it to reduce prices if it needs to be more competitive or to better handle inflationary pressures. Three businesses that are performing exceptionally well with profit margins of 20% and higher include AbbVie (NYSE: ABBV), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V).