Yahoo Finance Why AbbVie (ABBV) Outpaced the Stock Market Today
AbbVie (ABBV) closed the latest trading day at $196.42, indicating a +1.56% change from the previous session's end. This change outpaced the S&P 500's 1.16% gain on the day. Elsewhere, the Dow saw an upswing of 1.2%, while the tech-heavy Nasdaq appreciated by 1.16%.
The drugmaker's shares have seen an increase of 1.83% over the last month, not keeping up with the Medical sector's gain of 4.5% and the S&P 500's gain of 3.48%.
Analysts and investors alike will be keeping a close eye on the performance of AbbVie in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.95, signifying steadiness compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.25 billion, reflecting a 2.31% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.87 per share and revenue of $55.8 billion, which would represent changes of -2.16% and +2.73%, respectively, from the prior year.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. 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 17.8. This expresses a premium compared to the average Forward P/E of 15.99 of its industry.
Investors should also note that ABBV has a PEG ratio of 2.64 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.67 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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AbbVie Inc. (ABBV) : Free Stock Analysis Report
