To The Moon

$NVIDIA Corp(NVDA)$ 's trailing PE ratio is close to 40, reflecting the market's sky-high expectations and growth potential. But that also means if earnings fall short of analysts' and investors' hopes, the stock could get dumped hard. Compared to that, $AbbVie(ABBV)$ , the pharma giant, is a safer haven.

Growth

AbbVie's not as hyped as NVDA, and its stock price has even dipped lately due to sluggish growth. In the first three months of this year, their revenue totaled just $12.3 billion, with a less than 1% year-over-year increase.

But let's not be too quick to judge. The dip in growth is largely due to the patent expiry of their blockbuster drug, Humira, for rheumatoid arthritis. Sales fell almost 36% to less than $2.3 billion. But luckily, their immune drugs like Skyrizi and Rinvoq are picking up the slack.

AbbVie's always investing in growth opportunities. Earlier this year, they spent $10 billionon on ImmunoGen, an ADC producer, and plan to shell out $8.7 billion for Cerevel Therapeutics to boost their neuroscience pipeline.

For growth-hungry investors, this growth rate might seem sluggish, but AbbVie's got tons of free cash. Over the past three years, they've generated over $68 billion in free cash flow, which means they've got plenty to spend on acquisitions and other opportunities.

Valuation

So far this year, AbbVie's stock is up just 5%, but its trailing PE ratio is only 15, and its PEG ratio is a mere 0.4. Compare that to NVDA's PEG ratio hovering around 1.3. Plus, AbbVie's dividend yield is 3.8%, more than double the $S&P 500(.SPX)$ 's average of 1.4%.

While their recent earnings might not be stellar, there's plenty of reason to be bullish on AbbVie in the long run. Investors can collect dividends while waiting for earnings to pick up and drive the stock price up.

So, why not give AbbVie a shot? You might be surprised by the returns!