AbbVie (ABBV) closed the most recent trading day at $75.73, moving +1.18% from the previous trading session. This change outpaced the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.75%.
Prior to today's trading, shares of the drugmaker had gained 13.03% over the past month. This has outpaced the Medical sector's loss of 0.42% and the S&P 500's gain of 3.44% in that time.
ABBV will be looking to display strength as it nears its next earnings release. In that report, analysts expect ABBV to post earnings of $2.22 per share. This would mark year-over-year growth of 3.74%. Meanwhile, our latest consensus estimate is calling for revenue of $8.38 billion, up 1.78% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for ABBV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.12% higher. ABBV currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 8.41 right now. Its industry sports an average Forward P/E of 14.47, 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 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
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 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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