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

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AbbVie (ABBV - Free Report) closed the most recent trading day at $89.40, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.35%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.56%.

Heading into today, shares of the drugmaker had gained 2.28% over the past month, lagging the Medical sector's gain of 3.32% and the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from ABBV as it approaches its next earnings release. The company is expected to report EPS of $2.27, up 19.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.76 billion, up 5.48% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ABBV is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.43 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.47.

Also, we should mention that ABBV has a PEG ratio of 2.1. 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 was holding an average PEG ratio of 2.1 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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