AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know
AbbVie (ABBV) closed at $134.95 in the latest trading session, marking a -0.71% move from the prior day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.
Prior to today's trading, shares of the drugmaker had lost 1.19% over the past month. This has lagged the Medical sector's gain of 1.08% and the S&P 500's gain of 5.01% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. On that day, AbbVie is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 13.06%. Meanwhile, our latest consensus estimate is calling for revenue of $13.52 billion, down 7.27% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.97 per share and revenue of $52.57 billion. These totals would mark changes of -20.33% and -9.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AbbVie. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AbbVie is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 12.39. Its industry sports an average Forward P/E of 14.93, so we one might conclude that AbbVie is trading at a discount comparatively.
Meanwhile, ABBV's PEG ratio is currently 2.48. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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AbbVie Inc. (ABBV) : Free Stock Analysis Report
