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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 $132.16, moving +0.14% from the previous trading session. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the drugmaker had lost 0.83% in the past month. In that same time, the Medical sector lost 9.62%, while the S&P 500 lost 5.39%.

Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. This is expected to be February 2, 2022. In that report, analysts expect AbbVie to post earnings of $3.29 per share. This would mark year-over-year growth of 12.67%. Meanwhile, our latest consensus estimate is calling for revenue of $15.07 billion, up 8.72% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.01% lower within the past month. AbbVie is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 9.39. This represents a discount compared to its industry's average Forward P/E of 12.85.

Meanwhile, ABBV's PEG ratio is currently 1.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.98 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 224, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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