In the latest trading session, AbbVie (ABBV) closed at $83.92, marking a -0.5% move from the previous day. This change was narrower than the S&P 500's 1.86% loss on the day. Meanwhile, the Dow lost 2.3%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Coming into today, shares of the drugmaker had lost 1.83% in the past month. In that same time, the Medical sector gained 2.07%, while the S&P 500 gained 7.63%.
ABBV will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2020. In that report, analysts expect ABBV to post earnings of $2.75 per share. This would mark year-over-year growth of 18.03%. Meanwhile, our latest consensus estimate is calling for revenue of $12.64 billion, up 49.09% from the prior-year quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.42 per share and revenue of $45.22 billion. These results would represent year-over-year changes of +16.55% and +35.94%, respectively.
Any recent changes to analyst estimates for ABBV should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. ABBV is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 8.1. For comparison, its industry has an average Forward P/E of 14.16, which means ABBV is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 1.4. 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 was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.