In the latest trading session, AbbVie (ABBV - Free Report) closed at $88.09, marking a -1.55% move from the previous day. This change was narrower than the S&P 500's 1.82% loss on the day. Elsewhere, the Dow lost 2.21%, while the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the drugmaker had gained 6.18% over the past month, outpacing the Medical sector's loss of 1.44% and the S&P 500's loss of 2.57% in that time.
Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be January 25, 2019. The company is expected to report EPS of $1.92, up 29.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.36 billion, up 8.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.93 per share and revenue of $32.78 billion. These totals would mark changes of +41.61% and +16.17%, respectively, from last year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions help to show the ever-changing nature of 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. The Zacks Consensus EPS estimate has moved 0.95% higher within the past month. ABBV is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 11.28. For comparison, its industry has an average Forward P/E of 17.07, which means ABBV is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 33% of all 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.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.