AbbVie (ABBV) closed the most recent trading day at $227.45, moving +1.85% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Coming into today, shares of the drugmaker had lost 3.89% in the past month. In that same time, the Medical sector gained 1.12%, while the S&P 500 lost 0.21%.
Investors will be eagerly watching for the performance of AbbVie in its upcoming earnings disclosure. On that day, AbbVie is projected to report earnings of $3.37 per share, which would represent year-over-year growth of 56.02%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 8.45% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.64 per share and a revenue of $60.93 billion, demonstrating changes of +5.14% and +8.16%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. As of now, AbbVie holds a Zacks Rank of #3 (Hold).
From a valuation perspective, AbbVie is currently exchanging hands at a Forward P/E ratio of 20.99. This expresses a premium compared to the average Forward P/E of 14.06 of its industry.
One should further note that ABBV currently holds a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ABBV's industry had an average PEG ratio of 1.6 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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
