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AbbVie (ABBV) Gains But Lags Market: What You Should Know

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AbbVie (ABBV - Free Report) closed at $112.62 in the latest trading session, marking a +0.39% move from the prior day. This move lagged the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.97%.

Coming into today, shares of the drugmaker had gained 9.12% in the past month. In that same time, the Medical sector gained 2.58%, while the S&P 500 gained 2.58%.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2021. In that report, analysts expect ABBV to post earnings of $2.86 per share. This would mark year-over-year growth of 29.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.76 billion, up 58.11% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ABBV. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.12% higher within the past month. ABBV is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ABBV is holding a Forward P/E ratio of 9.07. For comparison, its industry has an average Forward P/E of 14.19, which means ABBV is trading at a discount to the group.

We can also see that ABBV currently has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.

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


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