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AbbVie (ABBV) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $223.12, marking a -1.31% move from the previous day. This change lagged the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.14%.

The drugmaker's shares have seen an increase of 3.16% over the last month, not keeping up with the Medical sector's gain of 5.67% and outstripping the S&P 500's gain of 1.2%.

Investors will be eagerly watching for the performance of AbbVie in its upcoming earnings disclosure. The company is expected to report EPS of $3.37, up 56.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 8.45% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.64 per share and revenue of $60.94 billion, indicating changes of +5.14% and +8.17%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for AbbVie. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 witnessed a 0.03% increase. Currently, AbbVie is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, AbbVie is presently being traded at a Forward P/E ratio of 21.25. For comparison, its industry has an average Forward P/E of 13.37, which means AbbVie is trading at a premium to the group.

Also, we should mention that ABBV has a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ABBV's industry had an average PEG ratio of 1.61 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 250 industries.

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

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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