The most recent trading session ended with AbbVie (ABBV) standing at $187.66, reflecting a +0.17% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.83%.
The drugmaker's shares have seen a decrease of 0.4% over the last month, surpassing the Medical sector's loss of 2.31% and falling behind the S&P 500's gain of 5.17%.
The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. The company's upcoming EPS is projected at $3.24, signifying a 22.26% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.98 billion, indicating a 3.56% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.28 per share and revenue of $60.04 billion. These totals would mark changes of +21.34% and +6.58%, respectively, from last year.
It's also important for investors to be aware of any recent modifications 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 company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.02% lower. AbbVie currently has a Zacks Rank of #3 (Hold).
In terms of valuation, AbbVie is presently being traded at a Forward P/E ratio of 15.25. This valuation marks a premium compared to its industry's average Forward P/E of 13.69.
It is also worth noting that ABBV currently has a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.24 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 30, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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