In the latest trading session, AbbVie (ABBV) closed at $219.99, marking a -1.18% move from the previous day. This change lagged the S&P 500's 0.29% loss on the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.
Heading into today, shares of the drugmaker had gained 6.84% over the past month, outpacing the Medical sector's loss of 0.33% and the S&P 500's gain of 3.08%.
The upcoming earnings release of AbbVie will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.26, reflecting a 8.67% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $15.54 billion, reflecting a 7.5% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.02 per share and revenue of $60.64 billion, which would represent changes of +18.77% and +7.64%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 18.53. This valuation marks a premium compared to its industry average Forward P/E of 14.34.
It is also worth noting that ABBV currently has a PEG ratio of 1.33. 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 1.53 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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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