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AbbVie (ABBV) Stock Declines While Market Improves: Some Information for Investors

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AbbVie (ABBV - Free Report) closed the latest trading day at $167.52, indicating a -0.89% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw an increase of 1.68%.

The drugmaker's stock has dropped by 6.02% in the past month, falling short of the Medical sector's loss of 4.72% and the S&P 500's gain of 0.8%.

Investors will be eagerly watching for the performance of AbbVie in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 26, 2024. On that day, AbbVie is projected to report earnings of $2.32 per share, which would represent a year-over-year decline of 5.69%. Alongside, our most recent consensus estimate is anticipating revenue of $11.95 billion, indicating a 2.26% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.16 per share and revenue of $54.61 billion. These totals would mark changes of +0.45% and +0.54%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AbbVie. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. 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 15.14. For comparison, its industry has an average Forward P/E of 14.1, which means AbbVie is trading at a premium to the group.

Meanwhile, ABBV's PEG ratio is currently 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 223, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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