Shares of Dividend Stock Advisor holding AbbVie (ABBV) bounced more than 1% Monday after the Chicago-based drug maker continued to rally from a quarterly earnings report Friday that beat analyst forecasts.
Dave Peliter, manager of the Dividend Stock Advisor portfolio, noted in a Monday email that "AbbVie is keeping a tight lid on costs" and is also benefiting from raised price targets from analysts at BMO Capital and Credit Suisse over the weekend.
The primary factor for the earnings beat, in which AbbVie topped earnings estimates by 5% after posting second-quarter earnings per share of $1.26, was the strength of its lead drug, Humira, Peltier added. Humira is a treatment for rheumatoid arthritis and a variety of inflammatory illnesses.
AbbVie sales of $6.43 billion also topped consensus forecasts by about 4%, and CEO Richard Gonzalez highlighted on a Friday earnings call with analysts that Humira and Imbruvica, an anti-cancer drug, were major drivers.
Meanwhile, Jim Cramer's Action Alerts PLUS charitable trust booked gains Monday after Google parent Alphabet (GOOGL) , a portfolio holding, announced a new partnership with pharmaceutical giant GlaxoSmithKline (GSK) .
GlaxoSmithKline said it has formed a joint venture with Alphabet in order to develop and commercialize "biolectronics medicines." The new enterprise, Galvani Bioelectronics, is set to be headquartered in the U.K. in hopes of pioneering the use of miniature electronics to manage electrical transmissions in the nervous system.
GlaxoSmithKline noted that initial research will focus on disorders such as type-2 diabetes, as well as a variety of inflammatory and metabolic illnesses, and GlaxoSmithKline and Alphabet will each contribute roughly $715 million over the next seven years if certain criteria are met.
Alphabet shares climbed more than 1% in Monday trading.
Action Alerts PLUS also raised its price target on Facebook (FB) Monday to $160 from $135, which Jack Mohr, the portfolio's co-manager, bases on a valuation of 30x expected 2017 earnings per share of roughly $5.05.