Yahoo Finance AbbVie (ABBV) Exceeds Market Returns: Some Facts to Consider
The latest trading session saw AbbVie (ABBV) ending at $171.36, denoting a +0.99% adjustment from its last day's close. This change outpaced the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the drugmaker had gained 3.11% in the past month. In that same time, the Medical sector gained 0.11%, while the S&P 500 gained 3.34%.
The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. On that day, AbbVie is projected to report earnings of $3.05 per share, which would represent year-over-year growth of 4.81%. In the meantime, our current consensus estimate forecasts the revenue to be $14.03 billion, indicating a 1.18% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.26 per share and a revenue of $55.29 billion, demonstrating changes of +1.35% and +1.79%, respectively, from the preceding year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 15.07. This signifies a premium in comparison to the average Forward P/E of 14.43 for its industry.
It's also important to note that ABBV currently trades at a PEG ratio of 2.17. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
