AbbVie (ABBV -0.30%) closed out a pivotal 2024 with an excellent fourth-quarter earnings report. For the period ended Dec. 31, the biopharmaceuticals giant delivered 6% sales growth and $2.12 in adjusted earnings per share (EPS), with both metrics exceeding initial guidance. Comments by management projected optimism for continued growth momentum into the new year.

With the shares kicking off 2025 with a solid 8% gain year to date, some investors may wonder -- can the rally keep going, and is AbbVie stock a buy right now? Here's what you need to know.

The Skyrizi and Rinvoq boom

AbbVie is recognized as a leading drugmaker with an extensive portfolio of therapeutics in fields such as immunology, oncology, neuroscience, and eye care. Additionally, the company commercializes the high-profile aesthetics brands Botox and Juvederm as anti-aging skin treatments. This diversification, coupled with a long history of innovation, is a big part of what makes AbbVie a blue chip stock and compelling investment opportunity.

In recent years, the company has struggled to navigate the loss of patent exclusivity in the U.S. for its landmark drug, Humira. This monoclonal antibody played a massive role in the company's success over the past decade as the best-in-class treatment for several autoimmune conditions, including rheumatoid arthritis, Crohn's disease, and ulcerative colitis.

In early 2023, the expiration of key patents opened the door for biosimilar alternatives to enter the market. Humira sales in 2024 were $9 billion, down 58% from their peak.

The good news is that AbbVie has already found a replacement for Humira with two blockbuster drugs: Skyrizi and Rinvoq. While these drugs were developed for many of the same conditions as Humira, they work differently in the body. Studies have shown that they are more effective in treating certain autoimmune diseases, positioning them as superior successors.

In 2024, combined Skyrizi and Rinvoq sales reached $17.7 billion, up 51% year over year, reflecting accelerating global demand and ongoing market traction. Excluding the Humira platform, AbbVie sales increased by 18% last year compared to 2023, also driven by the strong performance from the neuroscience and oncology product portfolio.

Ultimately, the trends highlight AbbVie's ability to turn the page with a more positive long-term outlook.

Image source: Getty Images.

A growth runway for AbbVie

The expectation is for record total revenue in 2025 with a growth runway through the next decade. AbbVie believes Skyrizi and Rinvoq sales will climb to $24 billion this year and exceed $31 billion by 2029. The company's president and CEO, Robert A. Michael, commented on these themes during the last earnings conference call:

We are well-positioned with our ex-Humira platform. It will allow AbbVie to deliver robust mid-single-digit revenue growth in 2025 and exceed our previous peak revenue in just the second year following the U.S. Humira loss of exclusivity (LOE). And given that we have no significant LOE events for the rest of this decade, we have a clear runway to grow for at least the next eight years, including a high single-digit revenue average growth through 2029.

For 2025, the company is targeting adjusted diluted earnings per share (EPS) between $12.12 and $12.32, representing a 21% increase from $10.12 in 2024. AbbVie is also guiding for a "mid-single digit revenue growth," which also captures the contribution from a pipeline of new product candidates in late-stage clinical trials with expected approvals and regulatory submissions this year.

Is AbbVie stock a buy?

There is a case to be made that AbbVie's outlook is as strong as ever. The stock currently presents a good balance between growth and value.

Shares trade at under 16 times the company's 2025 consensus EPS as a forward price-to-earnings (P/E) ratio. This level is particularly compelling, given its expected earnings momentum and the number of potential catalysts from the research and development (R&D) pipeline. The stock also offers a 3.3% dividend yield through a $1.55 quarterly payment. Notably, AbbVie's consecutive 53-year history of growing its dividend places it in the exclusive group of stocks known as "Dividend Kings."

For investors with a long-term horizon, now could be a great time to add shares of this healthcare sector leader to a diversified portfolio.