AbbVie (ABBV) closed the most recent trading day at $182.31, moving -2.4% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day. Meanwhile, the Dow experienced a rise of 1%, and the technology-dominated Nasdaq saw an increase of 0.52%.
Shares of the drugmaker witnessed a gain of 0.63% over the previous month, trailing the performance of the Medical sector with its gain of 3.5%, and the S&P 500's gain of 5.95%.
The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. It is anticipated that the company will report an EPS of $3.24, marking a 22.26% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.98 billion, indicating a 3.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $12.28 per share and a revenue of $60.04 billion, demonstrating changes of +21.34% and +6.58%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AbbVie. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has remained steady. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 15.21 right now. This expresses a premium compared to the average Forward P/E of 13.93 of its industry.
One should further note that ABBV currently holds a PEG ratio of 1.24. 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 1.21 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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