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AbbVie (ABBV) Gains But Lags Market: What You Should Know
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AbbVie (ABBV - Free Report) closed at $87.07 in the latest trading session, marking a +1.37% move from the prior day. This move lagged the S&P 500's daily gain of 1.74%. At the same time, the Dow added 1.91%, and the tech-heavy Nasdaq gained 1.88%.
Prior to today's trading, shares of the drugmaker had lost 4.8% over the past month. This has lagged the Medical sector's loss of 0.19% and the S&P 500's loss of 1.86% in that time.
Investors will be hoping for strength from ABBV as it approaches its next earnings release, which is expected to be October 30, 2020. The company is expected to report EPS of $2.78, up 19.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.85 billion, up 51.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.44 per share and revenue of $45.48 billion, which would represent changes of +16.78% and +36.7%, respectively, from the prior year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. ABBV is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ABBV is holding a Forward P/E ratio of 8.22. For comparison, its industry has an average Forward P/E of 14.08, which means ABBV is trading at a discount to the group.
Meanwhile, ABBV's PEG ratio is currently 1.38. 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 currently had an average PEG ratio of 1.95 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 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.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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AbbVie (ABBV) Gains But Lags Market: What You Should Know
AbbVie (ABBV - Free Report) closed at $87.07 in the latest trading session, marking a +1.37% move from the prior day. This move lagged the S&P 500's daily gain of 1.74%. At the same time, the Dow added 1.91%, and the tech-heavy Nasdaq gained 1.88%.
Prior to today's trading, shares of the drugmaker had lost 4.8% over the past month. This has lagged the Medical sector's loss of 0.19% and the S&P 500's loss of 1.86% in that time.
Investors will be hoping for strength from ABBV as it approaches its next earnings release, which is expected to be October 30, 2020. The company is expected to report EPS of $2.78, up 19.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.85 billion, up 51.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.44 per share and revenue of $45.48 billion, which would represent changes of +16.78% and +36.7%, respectively, from the prior year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. ABBV is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ABBV is holding a Forward P/E ratio of 8.22. For comparison, its industry has an average Forward P/E of 14.08, which means ABBV is trading at a discount to the group.
Meanwhile, ABBV's PEG ratio is currently 1.38. 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 currently had an average PEG ratio of 1.95 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 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.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.