AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, AbbVie (ABBV) closed at $156.12, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the drugmaker had gained 1.92% over the past month, outpacing the Medical sector's loss of 4.48% and the S&P 500's loss of 3.9% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 21.2%. Our most recent consensus estimate is calling for quarterly revenue of $12.04 billion, down 11.09% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.97 per share and revenue of $52.34 billion. These results would represent year-over-year changes of -20.33% and -9.85%, respectively.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
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 0.32% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 14.05. For comparison, its industry has an average Forward P/E of 13.79, which means AbbVie is trading at a premium to the group.
Meanwhile, ABBV's PEG ratio is currently 3.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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