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

Zacks Equity Research
·3 min read

In the latest trading session, AbbVie (ABBV) closed at $109.78, marking a +0.7% move from the previous day. This change outpaced the S&P 500's 0.04% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.28%.

Heading into today, shares of the drugmaker had gained 4.63% over the past month, outpacing the Medical sector's gain of 2.37% and the S&P 500's gain of 3.84% in that time.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. On that day, ABBV is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 29.41%. Our most recent consensus estimate is calling for quarterly revenue of $13.76 billion, up 58.11% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ABBV. These revisions help to show the ever-changing nature of near-term business trends. 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.

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 0.51% higher. ABBV currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ABBV currently has a Forward P/E ratio of 8.96. Its industry sports an average Forward P/E of 14.25, so we one might conclude that ABBV is trading at a discount comparatively.

Investors should also note that ABBV has a PEG ratio of 1.52 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 2.08 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 126, which puts it in the top 50% 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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