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AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know

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AbbVie (ABBV - Free Report) closed at $152.83 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.

Heading into today, shares of the drugmaker had lost 4.89% over the past month, lagging the Medical sector's gain of 1.12% and the S&P 500's gain of 4.01% in that time.

Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, AbbVie is projected to report earnings of $3.67 per share, which would represent year-over-year growth of 10.88%. Meanwhile, our latest consensus estimate is calling for revenue of $15.38 billion, up 3.29% from the prior-year quarter.

Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.27% higher within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 13.14 right now. Its industry sports an average Forward P/E of 14.64, so we one might conclude that AbbVie is trading at a discount comparatively.

It is also worth noting that ABBV currently has a PEG ratio of 3.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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