AbbVie (ABBV) closed the most recent trading day at $185.48, moving -2.82% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%.
Heading into today, shares of the drugmaker had gained 3.72% over the past month, outpacing the Medical sector's loss of 0% and the S&P 500's gain of 1.44%.
The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. The company is forecasted to report an EPS of $3.24, showcasing a 22.26% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.98 billion, up 3.56% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.28 per share and a revenue of $60.04 billion, signifying shifts of +21.34% and +6.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, AbbVie boasts a Zacks Rank of #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 15.54. This indicates a premium in contrast to its industry's Forward P/E of 13.65.
It is also worth noting that ABBV currently has a PEG ratio of 1.27. 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 industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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