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

Zacks Equity Research
American Airlines (AAL) closed the most recent trading day at $34.37, moving -0.04% from the previous trading session.

AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.34%.

Coming into today, shares of the drugmaker had gained 1.02% in the past month. In that same time, the Medical sector gained 1.34%, while the S&P 500 gained 1.83%.

ABBV will be looking to display strength as it nears its next earnings release. In that report, analysts expect ABBV to post earnings of $2.05 per share. This would mark year-over-year growth of 9.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. ABBV currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.37 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.27.

Meanwhile, ABBV's PEG ratio is currently 1.23. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.14 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 100, which puts it in the top 40% 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.

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


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