AbbVie (ABBV) closed the most recent trading day at $88.50, moving -0.02% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the drugmaker had gained 1.71% over the past month. This has lagged the Medical sector's gain of 3.08% and the S&P 500's gain of 2.69% in that time.
Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. The company is expected to report EPS of $2.27, up 19.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.76 billion, up 5.48% from the prior-year quarter.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. ABBV currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ABBV currently has a Forward P/E ratio of 9.92. This valuation marks a discount compared to its industry's average Forward P/E of 15.63.
It is also worth noting that ABBV currently has a PEG ratio of 2.2. 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 2.2 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
You can find more information on all of these metrics, and much 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.