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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $115.40, marking a -0.02% move from the previous day. This change lagged the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the drugmaker had lost 0.87% over the past month. This has lagged the Medical sector's gain of 4.62% and the S&P 500's gain of 2.43% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. The company is expected to report EPS of $2.91, up 24.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.64 billion, up 30.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.60 per share and revenue of $55.93 billion. These totals would mark changes of +19.32% and +22.12%, respectively, from last year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.1% 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 9.16 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.8.

It is also worth noting that ABBV currently has a PEG ratio of 1.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.11 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 203, which puts it in the bottom 21% 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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