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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 $117.79, marking a -0.34% move from the previous day. This move lagged the S&P 500's daily gain of 0.24%.

Coming into today, shares of the drugmaker had gained 4.61% in the past month. In that same time, the Medical sector lost 2.6%, while the S&P 500 gained 4.09%.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2021. In that report, analysts expect ABBV to post earnings of $3.11 per share. This would mark year-over-year growth of 32.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.71 billion, up 31.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.63 per share and revenue of $56.05 billion, which would represent changes of +19.6% and +22.37%, respectively, from the prior year.

Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. ABBV is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ABBV currently has a Forward P/E ratio of 9.36. This represents a discount compared to its industry's average Forward P/E of 14.79.

Meanwhile, ABBV's PEG ratio is currently 1.77. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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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