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AbbVie (ABBV) Gains But Lags Market: What You Should Know

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AbbVie (ABBV - Free Report) closed the most recent trading day at $111.39, moving +0.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the drugmaker had gained 7.22% over the past month. This has outpaced the Medical sector's gain of 1.44% and the S&P 500's gain of 6.99% in that time.

Investors will be hoping for strength from ABBV as it approaches its next earnings release, which is expected to be April 30, 2021. On that day, ABBV is projected to report earnings of $2.77 per share, which would represent year-over-year growth of 14.46%. Meanwhile, our latest consensus estimate is calling for revenue of $12.94 billion, up 50.18% from the prior-year quarter.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $12.51 per share and revenue of $55.84 billion. These results would represent year-over-year changes of +18.47% and +21.91%, respectively.

Investors might also notice recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. ABBV is currently a Zacks Rank #3 (Hold).

Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 8.91. For comparison, its industry has an average Forward P/E of 13.85, which means ABBV is trading at a discount to the group.

It is also worth noting that ABBV currently has a PEG ratio of 1.88. 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 was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 8% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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