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AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know

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AbbVie (ABBV - Free Report) closed at $90.40 in the latest trading session, marking a +1.49% move from the prior day. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 1.26%.

Heading into today, shares of the drugmaker had lost 1.39% over the past month, outpacing the Medical sector's loss of 6.76% and the S&P 500's loss of 6.13% 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. On that day, ABBV is projected to report earnings of $1.92 per share, which would represent year-over-year growth of 29.73%. Meanwhile, our latest consensus estimate is calling for revenue of $8.36 billion, up 8.07% from the prior-year quarter.

Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. ABBV currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ABBV is holding a Forward P/E ratio of 10.23. This represents a discount compared to its industry's average Forward P/E of 14.41.

Meanwhile, ABBV's PEG ratio is currently 0.76. 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 Large Cap Pharmaceuticals was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.

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




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