AbbVie (ABBV) closed at $76.95 in the latest trading session, marking a -0.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.05%.
Prior to today's trading, shares of the drugmaker had lost 0.62% over the past month. This has lagged the Medical sector's gain of 1.73% and the S&P 500's loss of 0.08% in that time.
ABBV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.21, up 10.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.08 billion, down 2.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.81 per share and revenue of $32.76 billion. These totals would mark changes of +11.38% and +0.02%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ABBV. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ABBV is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 8.79. This valuation marks a discount compared to its industry's average Forward P/E of 14.56.
Meanwhile, ABBV's PEG ratio is currently 1.58. 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 2.11 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 57, which puts it in the top 23% 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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