In the latest trading session, AbbVie (ABBV) closed at $149.45, marking a -0.74% move from the previous day. This change was narrower than the S&P 500’s 2.95% loss on the day. Elsewhere, the Dow lost 2.37%, while the tech-heavy Nasdaq lost 0.33%.
Prior to today’s trading, shares of the drugmaker had gained 7.05% over the past month. This has outpaced the Medical sector’s loss of 0.72% and the S&P 500’s loss of 3.75% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. In that report, analysts expect AbbVie to post earnings of $3.14 per share. This would mark year-over-year growth of 6.44%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.18 per share and revenue of $60.2 billion, which would represent changes of +11.65% and +7.13%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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, 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 has moved 0.27% higher within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 10.61. This represents a discount compared to its industry’s average Forward P/E of 12.08.
We can also see that ABBV currently has a PEG ratio of 4.19. 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 was holding an average PEG ratio of 2.03 at yesterday’s closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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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