Why are these US medical stocks trending hot?

ABBV and AZN: Why are these US medical stocks trending hot?

AbbVie Inc. (NYSE: ABBV) and AstraZeneca PLC (NASDAQ: AZN), two major players in the US healthcare industry, released their second quarter results on Friday, July 29.

The healthcare segment was among the best performing sectors after the Federal Reserve announced a 75 basis point hike to tame inflation this week.

Let’s explore the latest results of these two medical stocks.

AbbVie Inc. (NYSE: ABBV)

ABBV shares fell more than one percent in premarket trading to trade at US$148.05 at 8:52 a.m. ET on Friday. The biotech company posted 4.5% growth in revenue to $14.58 billion in the second quarter of fiscal 2022.

AbbVie’s attributable net income improved to US$924 million, or $0.51 per diluted share in the three months ended June 30, 2022, from US$766 million, or $0.42 US per diluted share in Q2 FY21.

For the first six months ended June 30, 2022, its net revenue and attributable net income were US$28.12 billion and US$5.41 billion, respectively, compared to US$26.96 billion. and US$4.31 billion a year ago.

The North Chicago, Illinois-based company reaffirmed its adjusted diluted earnings per share (EPS) guidance range of $13.78 to $13.98 for fiscal 2022.

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AstraZeneca PLC (NASDAQ: AZN)

AZN stock held steady in pre-market trading to trade at US$66.75 on July 29. The pharmaceutical and biotech company on Friday raised its revenue outlook for fiscal year 2022.

In the second quarter of FY22, AstraZeneca’s total revenue was $10.77 billion, up 31% from $8.22 billion in the prior year quarter . Its after-tax profit deteriorated to $360 million, or $0.23 per share in the second quarter of fiscal year 2022, from $550 million, or $0.42 per share in the second quarter of fiscal year 21.

For the first half of 2022, the UK-based company reported revenue growth of 43% to US$22.16 billion. Its after-tax profit was $748 million, down significantly from $2.11 billion in the first half of FY21.

At the end of the line

The last week of July marked one of the most crucial weeks with several key developments and strong corporate earnings. Turning to the healthcare segment, the S&P 500 healthcare index has risen 3.55% so far this month. On an annual basis, the index increased by 0.83%.

However, investors should also focus on the current economic health, which has fueled fear of a recession in the market, before exploring these stocks.

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