In the latest trading session, AbbVie (ABBV) closed at $72.97, marking a +0.8% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the drugmaker had gained 7.21% in the past month. In that same time, the Medical sector gained 1.37%, while the S&P 500 gained 3.23%.
Investors will be hoping for strength from ABBV as it approaches its next earnings release. The company is expected to report EPS of $2.27, up 6.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.38 billion, up 1.78% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.91 per share and revenue of $32.99 billion. These results would represent year-over-year changes of +12.64% and +0.74%, respectively.
It is also important to note the recent changes to analyst estimates for ABBV. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.24% higher. ABBV is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 8.13. This represents a discount compared to its industry's average Forward P/E of 14.33.
It is also worth noting that ABBV currently has a PEG ratio of 1.48. 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. ABBV's industry had an average PEG ratio of 2.05 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 43, which puts it in the top 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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