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

Zacks Equity Research
Enbridge (ENB) closed the most recent trading day at $35.83, moving -1.27% from the previous trading session.

In the latest trading session, AbbVie (ABBV) closed at $78.60, marking a -0.11% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.62%.

Coming into today, shares of the drugmaker had lost 1.02% in the past month. In that same time, the Medical sector gained 3.37%, while the S&P 500 gained 2.08%.

ABBV will be looking to display strength as it nears its next earnings release. In that report, analysts expect ABBV to post earnings of $2.21 per share. This would mark year-over-year growth of 10.5%. Our most recent consensus estimate is calling for quarterly revenue of $8.08 billion, down 2.39% from the year-ago period.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.81 per share and revenue of $32.77 billion. These results would represent year-over-year changes of +11.38% and +0.04%, respectively.

Investors might also notice 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.

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.

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 remained stagnant. ABBV currently has a Zacks Rank of #2 (Buy).

In terms of valuation, ABBV is currently trading at a Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 14.56, which means ABBV is trading at a discount to the group.

We can also see that ABBV currently has a PEG ratio of 1.61. 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 2.11 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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