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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $137.82, marking a -0.59% move from the previous day. This change lagged the S&P 500's 0.47% loss on the day. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.

Coming into today, shares of the drugmaker had lost 4.32% in the past month. In that same time, the Medical sector gained 0.37%, while the S&P 500 gained 5.36%.

Investors will be hoping for strength from AbbVie as it approaches its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. Our most recent consensus estimate is calling for quarterly revenue of $13.52 billion, down 7.27% from the year-ago period.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.97 per share and revenue of $52.57 billion. These results would represent year-over-year changes of -20.33% and -9.45%, respectively.

Investors might also notice recent changes to analyst estimates for AbbVie. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 12.63. For comparison, its industry has an average Forward P/E of 15.15, which means AbbVie is trading at a discount to the group.

Investors should also note that ABBV has a PEG ratio of 2.53 right now. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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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