AbbVie (ABBV) closed the most recent trading day at $73.76, moving +0.18% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the drugmaker had gained 3.95% in the past month. In that same time, the Medical sector lost 3.51%, while the S&P 500 lost 0.91%.
ABBV will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2019. In that report, analysts expect ABBV to post earnings of $2.27 per share. This would mark year-over-year growth of 6.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.38 billion, up 1.78% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $33.05 billion. These results would represent year-over-year changes of +12.9% and +0.89%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.1% higher. ABBV is currently a Zacks Rank #2 (Buy).
In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 8.25. This represents a discount compared to its industry's average Forward P/E of 14.38.
It is also worth noting that ABBV currently has a PEG ratio of 1.5. 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 2.08 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 101, which puts it in the top 40% 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.
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