Back to top

Image: Bigstock

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

Read MoreHide Full Article

AbbVie (ABBV - Free Report) ended the recent trading session at $197.69, demonstrating a +0.7% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 2.12%. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 3.26%.

Coming into today, shares of the drugmaker had gained 6.48% in the past month. In that same time, the Medical sector gained 5.45%, while the S&P 500 gained 5.78%.

Market participants will be closely following the financial results of AbbVie in its upcoming release. On that day, AbbVie is projected to report earnings of $2.95 per share, which would represent no growth from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $14.25 billion, reflecting a 2.31% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.87 per share and revenue of $56.91 billion, indicating changes of -2.16% and +4.77%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AbbVie. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. AbbVie is currently a Zacks Rank #3 (Hold).

In the context of valuation, AbbVie is at present trading with a Forward P/E ratio of 18.06. This represents a premium compared to its industry's average Forward P/E of 16.36.

We can also see that ABBV currently has a PEG ratio of 2.68. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.71 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.


See More Zacks Research for These Tickers


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


AbbVie Inc. (ABBV) - free report >>

Published in