Back to top

Image: Bigstock

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

Read MoreHide Full Article

AbbVie (ABBV - Free Report) closed at $153.14 in the latest trading session, marking a +0.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the drugmaker had gained 1.56% in the past month. In that same time, the Medical sector lost 0.32%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.43, up 10.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.66 billion, up 5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.02 per share and revenue of $59.63 billion, which would represent changes of +10.39% and +6.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. AbbVie is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 10.87. This valuation marks a discount compared to its industry's average Forward P/E of 13.38.

Also, we should mention that ABBV has a PEG ratio of 4.29. 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 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 157, putting it in the bottom 38% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


AbbVie Inc. (ABBV) - free report >>

Published in