In a holiday-shortened week, shares of AbbVie Inc. (NYSE: ABBV) are down a little more than 3%. To put that in context, the drop in ABBV stock was more than that of biotech stocks such as Johnson & Johnson (NYSE: JNJ), which is down 0.68%, and Pfizer Inc. (NYSE: PFE), which is down 1.38%.  

However, both JNJ and PFE were already down for the year. By contrast, ABBV stock is up about 7%. That's well above the sector ETF, which is flat for the year and slightly outpacing the S&P 500, up about 4%.  

Without any obvious news, the question is, why? Shares of the iShares Biotechnology ETF (NASDAQ: IBB) have been down nearly 2% in the last five days, so this may be a case of some sector rotation. But with AbbVie getting ready to report earnings on July 25, it's a good time to check in on the stock and see what investors should be watching now. 

AbbVie Welcomes a New CEO 

Some will point to the change that was made in the C-suite. On July 1, Robert A. Michael assumed the role of chief executive officer. Michael succeeds Richard A. Gonzalez, who had held the role since 2013, when AbbVie spun off from Abbott Laboratories (NYSE: ABT). 

However, this was a planned change, so that seems an unlikely reason for investors to waver on ABBV stock. Right now, this looks like a stock getting caught up in a slight sell-off in the overall biotech market.  

AbbVie Investors Shrug Off Humira Concerns

Conventional wisdom suggests that AbbVie is having a prove-it moment. The company now faces generic equivalents to its blockbuster drug Humira in the United States and Europe. However, the company is optimistic that sales of drugs such as Skyrizi and Rinvoq will more than make up for any decline in revenue from Humira.  

The company also has Vraylar, a drug that has indications for major depressive and bipolar 1 disorders, which generated almost $700 million in the first quarter. Analysts are also bullish on Elahere, which is now part of the AbbVie portfolio after its $10 billion acquisition of ImmunoGen in 2023. That drug could top $2 billion in sales by 2030.  

That story will play out over several quarters. It hasn't had much impact on AbbVie stock, which is up 22.8% in the last 12 months. That's on par with the S&P 500 index and well ahead of the iShares Biotechnology ETF, which is up just 7% in that time. When you factor in the company's dividend, the total return for ABBV stock in the last 12 months is over 30%, which makes it one of the best medical stocks to own.

Piper Sandler Just Confirmed its ABBV Price Target 

If you're looking for another bullish confirmation, on July 3, analysts from Piper Sandler reiterated their Overweight rating on ABBV stock as well as the firm's price target of $190.  

That's about a 15% increase in the share price. Investors accustomed to the stock generating an average total return of over 35% in the last five years may believe the stock is looking overbought with the addition of more debt on its balance sheet.  

That may keep traders at bay, but with the stock trading at just 14.8x forward earnings and a dividend that has grown for 52 consecutive years, ABBV stock still looks like a solid stock for value-oriented investors.