AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know
AbbVie (ABBV) closed the most recent trading day at $115.42, moving -1.77% from the previous trading session. This move lagged the S&P 500's daily loss of 1.59%.
Heading into today, shares of the drugmaker had gained 3.87% over the past month, outpacing the Medical sector's loss of 4.1% and the S&P 500's gain of 2.53% in that time.
Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be July 30, 2021. On that day, ABBV is projected to report earnings of $3.07 per share, which would represent year-over-year growth of 31.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.71 billion, up 31.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.62 per share and revenue of $56.05 billion, which would represent changes of +19.51% and +22.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ABBV. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. ABBV currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ABBV is holding a Forward P/E ratio of 9.31. This valuation marks a discount compared to its industry's average Forward P/E of 14.87.
It is also worth noting that ABBV currently has a PEG ratio of 1.76. 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 2.24 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 192, which puts it in the bottom 25% 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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