In the latest close session, AbbVie (ABBV) was down 1.17% at $228.68. The stock fell short of the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Prior to today's trading, shares of the drugmaker had gained 3.94% outpaced the Medical sector's gain of 3.64% and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of AbbVie in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 31, 2025. The company is expected to report EPS of $2, down 33.33% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $15.59 billion, showing a 7.81% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.06 per share and a revenue of $60.68 billion, representing changes of +9.29% and +7.72%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AbbVie. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.42% lower. AbbVie is currently a Zacks Rank #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 20.91. Its industry sports an average Forward P/E of 14.66, so one might conclude that AbbVie is trading at a premium comparatively.
It's also important to note that ABBV currently trades at a PEG ratio of 1.4. 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 Large Cap Pharmaceuticals was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% 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.
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AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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