In the latest close session, AbbVie (ABBV) was down 1.2% at $210.00. This change lagged the S&P 500's 0.21% gain on the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Shares of the drugmaker witnessed a gain of 7.33% over the previous month, beating the performance of the Medical sector with its gain of 5.47%, and the S&P 500's gain of 3.07%.
Market participants will be closely following the financial results of AbbVie in its upcoming release. It is anticipated that the company will report an EPS of $3.27, marking a 9% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.54 billion, indicating a 7.49% increase compared to the same quarter of the previous year.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $12.03 per share and revenue of $60.56 billion. These results would represent year-over-year changes of +18.87% and +7.5%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for AbbVie. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.14% lower. As of now, AbbVie holds a Zacks Rank of #3 (Hold).
Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 17.68. Its industry sports an average Forward P/E of 14.41, so one might conclude that AbbVie is trading at a premium comparatively.
Also, we should mention that ABBV has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.37 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 36% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
