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AbbVie (ABBV) Gains As Market Dips: What You Should Know

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AbbVie (ABBV - Free Report) closed the most recent trading day at $104.70, moving +1.21% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Heading into today, shares of the drugmaker had lost 1.08% over the past month, lagging the Medical sector's gain of 3.32% and the S&P 500's gain of 2.78% in that time.

ABBV will be looking to display strength as it nears its next earnings release. On that day, ABBV is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 29.41%. Our most recent consensus estimate is calling for quarterly revenue of $13.76 billion, up 58.11% from the year-ago period.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.48 per share and revenue of $45.69 billion. These results would represent year-over-year changes of +17.23% and +37.36%, respectively.

Investors might also notice recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. ABBV currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.87 right now. This represents a discount compared to its industry's average Forward P/E of 13.8.

Also, we should mention that ABBV has a PEG ratio of 1.67. 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. ABBV's industry had an average PEG ratio of 2.19 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 122, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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