In the latest trading session, AbbVie (ABBV) closed at $236.56, marking a -3.2% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.39%.
The drugmaker's shares have seen an increase of 15.35% over the last month, surpassing the Medical sector's gain of 5.06% and the S&P 500's gain of 3.94%.
Analysts and investors alike will be keeping a close eye on the performance of AbbVie in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.26, indicating a 8.67% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.54 billion, indicating a 7.5% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.02 per share and revenue of $60.64 billion. These totals would mark changes of +18.77% and +7.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. As of now, AbbVie holds a Zacks Rank of #3 (Hold).
In the context of valuation, AbbVie is at present trading with a Forward P/E ratio of 20.34. This signifies a premium in comparison to the average Forward P/E of 15.27 for its industry.
Also, we should mention that ABBV has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.64.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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