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

Zacks Equity Research

In the latest trading session, AbbVie (ABBV) closed at $88.50, marking a -0.63% move from the previous day. This move lagged the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.04%.

Heading into today, shares of the drugmaker had gained 0.37% over the past month, lagging the Medical sector's gain of 2.27% and the S&P 500's gain of 4.38% 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 $2.27 per share. This would mark year-over-year growth of 19.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.76 billion, up 5.48% 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. ABBV currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ABBV currently has a Forward P/E ratio of 9.47. For comparison, its industry has an average Forward P/E of 15.73, which means ABBV is trading at a discount to the group.

Meanwhile, ABBV's PEG ratio is currently 2.1. 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 1.95 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 48, which puts it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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