AbbVie (ABBV) closed the most recent trading day at $70.59, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the drugmaker had gained 11.96% in the past month. In that same time, the Medical sector lost 0.98%, while the S&P 500 gained 2.92%.
Investors will be hoping for strength from ABBV as it approaches its next earnings release. The company is expected to report EPS of $2.28, up 6.43% from the prior-year quarter. 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 $8.90 per share and revenue of $32.99 billion. These results would represent year-over-year changes of +12.47% and +0.74%, respectively.
Investors should also note any recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest 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. 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.
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 0.2% higher. ABBV is currently a Zacks Rank #3 (Hold).
Digging into valuation, ABBV currently has a Forward P/E ratio of 7.93. For comparison, its industry has an average Forward P/E of 13.83, which means ABBV is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 1.67. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.99 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 35, which puts it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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