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AbbVie (ABBV) Laps the Stock Market: Here's Why

AbbVie (ABBV) ended the recent trading session at $170.46, demonstrating a +0.61% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.26% gain on the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.35%.

The drugmaker's stock has climbed by 5.39% in the past month, exceeding the Medical sector's gain of 3.06% and the S&P 500's gain of 3.25%.

The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. The company's earnings per share (EPS) are projected to be $3.05, reflecting a 4.81% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.46 billion, indicating a 10.12% decrease compared to the same quarter of the previous 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.

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Investors might also notice recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. AbbVie is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 15.05. For comparison, its industry has an average Forward P/E of 14.5, which means AbbVie is trading at a premium to the group.

Also, we should mention that ABBV has a PEG ratio of 2.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 39% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.

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AbbVie Inc. (ABBV) : Free Stock Analysis Report

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Zacks Investment Research