AbbVie (ABBV) Gains But Lags Market: What You Should Know
AbbVie (ABBV) closed at $98.87 in the latest trading session, marking a +1.03% move from the prior day. The stock lagged the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the drugmaker had gained 5.14% in the past month. In that same time, the Medical sector gained 2.85%, while the S&P 500 gained 3.92%.
Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be July 31, 2020. On that day, ABBV is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 0.88%. Meanwhile, our latest consensus estimate is calling for revenue of $10.21 billion, up 23.69% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.50 per share and revenue of $45.42 billion. These totals would mark changes of +17.45% and +36.54%, respectively, from last year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. ABBV is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 9.32. This represents a discount compared to its industry's average Forward P/E of 15.31.
We can also see that ABBV currently has a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABBV's industry had an average PEG ratio of 2.13 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 26, which puts it in the top 11% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.