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

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AbbVie (ABBV - Free Report) closed at $141.21 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the drugmaker had gained 4.92% over the past month. This has outpaced the Medical sector's loss of 6.55% and the S&P 500's loss of 10.4% in that time.

Investors will be hoping for strength from AbbVie as it approaches its next earnings release. The company is expected to report EPS of $3.59, up 7.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.05 billion, up 4.95% from the prior-year quarter.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $59.22 billion. These results would represent year-over-year changes of +9.37% and +5.37%, respectively.

It is also important to note the 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. 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 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 has moved 0.05% lower within the past month. AbbVie is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 10.3. For comparison, its industry has an average Forward P/E of 12.19, which means AbbVie is trading at a discount to the group.

We can also see that ABBV currently has a PEG ratio of 4.06. 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 was holding an average PEG ratio of 1.75 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

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


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