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AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know

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AbbVie (ABBV - Free Report) closed the most recent trading day at $84.25, moving -0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 0.33%.

Coming into today, shares of the drugmaker had lost 5.37% in the past month. In that same time, the Medical sector lost 1.81%, while the S&P 500 gained 3.42%.

Wall Street will be looking for positivity from ABBV as it approaches its next earnings report date. This is expected to be October 30, 2020. In that report, analysts expect ABBV to post earnings of $2.78 per share. This would mark year-over-year growth of 19.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.81 billion, up 51.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.45 per share and revenue of $45.41 billion, which would represent changes of +16.89% and +36.52%, respectively, from the prior year.

Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. ABBV is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 8.07 right now. Its industry sports an average Forward P/E of 14.1, so we one might conclude that ABBV is trading at a discount comparatively.

We can also see that ABBV currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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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