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

Zacks Equity Research

AbbVie (ABBV) closed the most recent trading day at $86.43, moving -0.63% from the previous trading session. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.4%.

Coming into today, shares of the drugmaker had gained 6.06% in the past month. In that same time, the Medical sector gained 6.71%, while the S&P 500 gained 2.51%.

ABBV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.24, up 17.89% 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.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $33.32 billion. These results would represent year-over-year changes of +12.9% and +1.74%, respectively.

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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABBV is currently a Zacks Rank #3 (Hold).

Digging into valuation, ABBV currently has a Forward P/E ratio of 9.74. For comparison, its industry has an average Forward P/E of 14.85, which means ABBV is trading at a discount to the group.

We can also see that ABBV currently has a PEG ratio of 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABBV's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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