AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know
AbbVie (ABBV) closed the most recent trading day at $66.70, moving -1.36% from the previous trading session. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Heading into today, shares of the drugmaker had gained 3.32% over the past month, outpacing the Medical sector's gain of 1.02% and lagging the S&P 500's gain of 3.61% in that time.
Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. In that report, analysts expect ABBV to post earnings of $2.28 per share. This would mark year-over-year growth of 6.54%. Meanwhile, our latest consensus estimate is calling for revenue of $8.38 billion, up 1.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.90 per share and revenue of $32.99 billion. These totals would mark changes of +12.52% and +0.74%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ABBV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.2% higher. ABBV is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 7.6 right now. This represents a discount compared to its industry's average Forward P/E of 14.05.
Investors should also note that ABBV has a PEG ratio of 1.61 right now. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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