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

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AbbVie (ABBV) closed at $135.87 in the latest trading session, marking a +1.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Prior to today's trading, shares of the drugmaker had gained 4.89% over the past month. This has outpaced the Medical sector's loss of 3.56% and the S&P 500's gain of 0.64% in that time.

Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 2, 2022. On that day, AbbVie is projected to report earnings of $3.29 per share, which would represent year-over-year growth of 12.67%. Meanwhile, our latest consensus estimate is calling for revenue of $15.07 billion, up 8.72% from the prior-year quarter.

Any recent changes to analyst estimates for AbbVie should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.28% higher. AbbVie is currently a Zacks Rank #2 (Buy).

Looking at its valuation, AbbVie is holding a Forward P/E ratio of 30.22. This represents a premium compared to its industry's average Forward P/E of 13.12.

It is also worth noting that ABBV currently has a PEG ratio of 6.42. 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 2.03 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.


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