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

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In the latest trading session, AbbVie (ABBV - Free Report) closed at $104.64, marking a +1.77% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.5%.

Heading into today, shares of the drugmaker had gained 3.64% over the past month, outpacing the Medical sector's gain of 2.44% and the S&P 500's gain of 3.22% in that time.

ABBV will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.85, up 28.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.75 billion, up 57.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.48 per share and revenue of $45.68 billion, which would represent changes of +17.23% and +37.33%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ABBV. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. ABBV is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ABBV currently has a Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 13.55, which means ABBV is trading at a discount to the group.

Meanwhile, ABBV's PEG ratio is currently 1.66. 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. ABBV's industry had an average PEG ratio of 2.15 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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