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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 $110.36, moving +1.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.13%.

Prior to today's trading, shares of the drugmaker had lost 5.04% over the past month. This has lagged the Medical sector's gain of 2.12% and the S&P 500's gain of 2.07% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. In that report, analysts expect ABBV to post earnings of $3.08 per share. This would mark year-over-year growth of 8.83%. Meanwhile, our latest consensus estimate is calling for revenue of $14.44 billion, up 11.89% from the prior-year quarter.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $12.64 per share and revenue of $56.44 billion. These results would represent year-over-year changes of +19.7% and +23.23%, respectively.

Investors might also notice recent changes to analyst estimates for ABBV. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 remained stagnant 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 8.62. For comparison, its industry has an average Forward P/E of 14.5, which means ABBV is trading at a discount to the group.

Also, we should mention that ABBV has a PEG ratio of 2.05. 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 2.17 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 123, putting it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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