Allergan recently missed Q3 estimates that should mostly be ignored.
The growth pharma has a huge capital return plan that overrides current earnings weakness.
The net payout yield will push into one of the top yields in the current market.
Allergan (NYSE:AGN) hit our radar screen due to the combination of two key signals: plunging stock price and massive capital return plans. The market typically runs away from a stock at the wrong time and these contrary positions can signal the market has the situation wrong.
The stock closed last week around multi-year lows of $195. With politicians increasingly attacking drug pricing and the costs in the healthcare system, are the capital return plans enough to consider buying the massive dips in Allergan from a high near $340 back in 2015.