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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 $90.23, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the drugmaker had gained 3.2% over the past month. This has lagged the Medical sector's gain of 6.06% and the S&P 500's gain of 3.81% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. In that report, analysts expect ABBV to post earnings of $2.24 per share. This would mark year-over-year growth of 17.89%. Our most recent consensus estimate is calling for quarterly revenue of $8.76 billion, up 5.48% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.94 per share and revenue of $33.32 billion. These totals would mark changes of +13.02% and +1.74%, respectively, from last year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. ABBV is currently a Zacks Rank #3 (Hold).

In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 9.99. This represents a discount compared to its industry's average Forward P/E of 15.55.

Investors should also note that ABBV has a PEG ratio of 2.22 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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