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AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
In the latest trading session, Intuitive Surgical (ISRG) closed at $476.13, marking a +0.49% move from the previous day.

AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.19%.

Coming into today, shares of the drugmaker had gained 6.66% in the past month. In that same time, the Medical sector gained 1.2%, while the S&P 500 gained 3.84%.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2019. The company is expected to report EPS of $2.05, up 9.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.75 billion, down 2.35% from the year-ago period.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. These results would represent year-over-year changes of +9.73% and +0.12%, respectively.

Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABBV is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, ABBV is holding a Forward P/E ratio of 9.62. Its industry sports an average Forward P/E of 15.44, so we one might conclude that ABBV is trading at a discount comparatively.

It is also worth noting that ABBV currently has a PEG ratio of 1.71. 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 2.12 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 109, which puts it in the top 43% 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.

To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.


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