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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $72.99, marking a -1.72% move from the previous day. This change lagged the S&P 500's daily gain of 6%. At the same time, the Dow added 5.2%, and the tech-heavy Nasdaq gained 6.23%.

Prior to today's trading, shares of the drugmaker had lost 21.03% over the past month. This has was narrower than the Medical sector's loss of 23.01% and the S&P 500's loss of 29.18% in that time.

ABBV will be looking to display strength as it nears its next earnings release. In that report, analysts expect ABBV to post earnings of $2.25 per share. This would mark year-over-year growth of 5.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.35 billion, up 6.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.53 per share and revenue of $47.88 billion. These totals would mark changes of +17.79% and +43.93%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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. Within the past 30 days, our consensus EPS projection has moved 1.2% higher. 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 7.06. This valuation marks a discount compared to its industry's average Forward P/E of 12.08.

Investors should also note that ABBV has a PEG ratio of 1.57 right now. 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 1.64 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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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