In the latest trading session, AbbVie (ABBV) closed at $162.99, marking a -0.07% move from the previous day. This change was narrower than the S&P 500’s 0.41% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 6.67%.
Coming into today, shares of the drugmaker had gained 2.95% in the past month. In that same time, the Medical sector gained 0.95%, while the S&P 500 lost 4.4%.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.67, up 10.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.38 billion, up 3.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.86 per share and revenue of $58.31 billion, which would represent changes of +9.13% and +3.76%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 has moved 0.24% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 11.77. Its industry sports an average Forward P/E of 15.07, so we one might conclude that AbbVie is trading at a discount comparatively.
It is also worth noting that ABBV currently has a PEG ratio of 4.64. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.15 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 90, which puts it in the top 36% 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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