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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $191.50, marking a +1.06% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.27% for the day.

Prior to today's trading, shares of the drugmaker had gained 0.8% lagged the Medical sector's gain of 4.77% and the S&P 500's gain of 6.9%.

Market participants will be closely following the financial results of AbbVie in its upcoming release. The company is predicted to post an EPS of $3.24, indicating a 22.26% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $14.98 billion, showing a 3.56% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.28 per share and revenue of $60.04 billion. These totals would mark changes of +21.34% and +6.58%, respectively, from last year.

Investors should also take note of any recent adjustments 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Right now, AbbVie possesses a Zacks Rank of #3 (Hold).

Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 15.43. This valuation marks a premium compared to its industry average Forward P/E of 13.83.

We can also see that ABBV currently has a PEG ratio of 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.26 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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