AbbVie (ABBV) closed at $190.58 in the latest trading session, marking a +2.25% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.
Shares of the drugmaker have appreciated by 0.49% over the course of the past month, outperforming the Medical sector's loss of 3.4%, and lagging the S&P 500's gain of 4.51%.
The upcoming earnings release of AbbVie will be of great interest to investors. The company's earnings report is expected on July 31, 2025. In that report, analysts expect AbbVie to post earnings of $3.02 per share. This would mark year-over-year growth of 13.96%. Alongside, our most recent consensus estimate is anticipating revenue of $15.04 billion, indicating a 3.97% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.07 per share and a revenue of $60.12 billion, signifying shifts of +19.27% and +6.72%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for AbbVie. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the past month, there's been a 2.29% fall in the Zacks Consensus EPS estimate. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 14.02, which means AbbVie is trading at a premium to the group.
It's also important to note that ABBV currently trades at a PEG ratio of 1.23. 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 had an average PEG ratio of 1.23 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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