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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $108.80, marking a -1.54% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.07%.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be February 3, 2021. On that day, ABBV is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 29.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.74 billion, up 57.9% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. ABBV currently has a Zacks Rank of #3 (Hold).

Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 9.11. For comparison, its industry has an average Forward P/E of 14.12, which means ABBV is trading at a discount to the group.

Investors should also note that ABBV has a PEG ratio of 1.54 right now. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.09 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.


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