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3 Cheap Stocks to Buy With Your Tax Refund Check
ABBVAbbVie(ABBV) The Motley Fool·2025-03-07 10:30

Core Insights - The average tax refund in 2024 is 3,138,similartothepreviousyearsaverageof3,138, similar to the previous year's average of 3,167, providing potential extra cash for investments [1] Group 1: AbbVie - AbbVie is a leading healthcare company with a market capitalization of approximately 370billionandoffersadividendyieldof3.1370 billion and offers a dividend yield of 3.1%, significantly higher than the S&P 500 average of 1.3% [3][6] - Concerns about AbbVie losing patent protection for its top-selling drug Humira are mitigated by the success of its newer immunology drugs, Skyrizi and Rinvoq, which generated 17.7 billion in revenue last year, while Humira's sales fell by 38% to just under 9billion[4]AbbViesdiversebusinessincludestreatmentsinimmunology,oncology,neuroscience,andaesthetics,withpotentialgrowthintheaestheticssectordrivenbyrisingpopularityofGLP1weightlosstreatmentsandBotox[5]Group2:AlibabaGroupAlibabahasgainedtractionamonggrowthinvestors,withitsstockrisingover609 billion [4] - AbbVie's diverse business includes treatments in immunology, oncology, neuroscience, and aesthetics, with potential growth in the aesthetics sector driven by rising popularity of GLP-1 weight loss treatments and Botox [5] Group 2: Alibaba Group - Alibaba has gained traction among growth investors, with its stock rising over 60% in the past six months, bolstered by the launch of its AI chatbot Qwen 2.5-Max, which reportedly outperforms ChatGPT-4o [7][8] - Despite a modest sales growth of 8% in the last quarter of 2024, reaching 38.4 billion, the partnership with Apple for AI features signals promising future growth [8][9] - The stock is trading at 13 times expected future profits, presenting a potentially attractive investment opportunity, alongside a dividend yield of 1.5% [9] Group 3: FedEx - FedEx, a key player in shipping and logistics, offers a dividend yield of 2.1% and is well-positioned to benefit from the growing e-commerce market, projected to expand at an annual rate of around 19% through the end of the decade [10] - Recent challenges include a 1% decline in sales over the past two quarters and a 23% drop in operating income, but the company is focusing on efficiency improvements and AI investments to enhance profitability [11][12] - With a forward price-to-earnings ratio of just 12, FedEx is considered a potentially undervalued investment for long-term holders [12]