U.S. Markets open in 7 hrs 18 mins

AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
First Midwest Bancorp (FMBI) delivered earnings and revenue surprises of 2.22% and -0.60%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the drugmaker had gained 1.28% over the past month. This has outpaced the Medical sector's loss of 0.22% and the S&P 500's gain of 0.52% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. On that day, ABBV is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 9.63%. Meanwhile, our latest consensus estimate is calling for revenue of $7.75 billion, down 2.35% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.68 per share and revenue of $32.79 billion. These totals would mark changes of +9.73% and +0.12%, respectively, from last year.

Any recent changes to analyst estimates for ABBV should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. ABBV currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ABBV currently has a Forward P/E ratio of 9.19. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.

We can also see that ABBV currently has a PEG ratio of 1.21. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 39% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.