The Pharmaceutical Sector Is Surging. Here's 1 Stock Every Investor Should Have on Their Radar.

Pharmaceutical stocks have been on fire this year. The iShares U.S. Pharmaceuticals ETF (NYSEMKT: IHE), which tracks 43 drugmakers, is up almost 29% year to date and 11% over the past month.

There are lots of great stocks in this sector. But one that investors should be watching closely right now is AbbVie (NYSE: ABBV). The company is focused on drugs that treat a range of diseases in the areas of immunology, rheumatology, gastroenterology, dermatology, and oncology, among others.

The company released its quarterly results on Oct. 31, and they exceeded Wall Street's forecasts. Sales climbed 9.1% to $15.78 billion, which was significantly higher than the $15.59 billion expected. The company posted earnings of $1.86 per share, 11 cents above the $1.77 expected.

AbbVie has a strong stable of top-performing drugs. Sales of Skyrizi, an immunology drug that treats conditions like psoriasis and arthritis, rose a whopping 46.8% to $4.7 billion during the quarter. Sales of Rinvoq, a similar immunology drug, climbed 35.3% to $2.18 billion. And Humira, which is used to treat plaque psoriasis, brought revenue of $993 million, up 55.4% from a year ago.

Management said it believes Rinvoq will hit $11 billion in annual revenue by 2027, and Skyrizi will reach the $20 billion mark. AbbVie's current stable of best-selling drugs is impressive, while it continues to expand its pipeline with acquisitions. This is a hot stock in a hot sector well worth watching.

Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.