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

Zacks Equity Research

AbbVie (ABBV) closed the most recent trading day at $77.31, moving +1.11% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.91%.

Prior to today's trading, shares of the drugmaker had gained 6.68% over the past month. This has outpaced the Medical sector's loss of 1.39% and the S&P 500's loss of 0.61% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be November 1, 2019. In that report, analysts expect ABBV to post earnings of $2.29 per share. This would mark year-over-year growth of 7.01%. Our most recent consensus estimate is calling for quarterly revenue of $8.41 billion, up 2.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.93 per share and revenue of $33.04 billion, which would represent changes of +12.9% and +0.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. ABBV is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ABBV is holding a Forward P/E ratio of 8.57. This valuation marks a discount compared to its industry's average Forward P/E of 14.52.

Investors should also note that ABBV has a PEG ratio of 1.56 right now. 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 2.01 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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