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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 $161.97, moving +0.4% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the drugmaker had gained 7.88% over the past month. This has outpaced the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.13, up 6.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $60.2 billion. These totals would mark changes of +11.26% and +7.13%, respectively, from last year.
It is also important to note the 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 12.83, which means AbbVie is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 4.5. 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 2.29 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 114, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie (ABBV) Gains But Lags Market: What You Should Know
AbbVie (ABBV - Free Report) closed the most recent trading day at $161.97, moving +0.4% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the drugmaker had gained 7.88% over the past month. This has outpaced the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
AbbVie will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.13, up 6.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.13 per share and revenue of $60.2 billion. These totals would mark changes of +11.26% and +7.13%, respectively, from last year.
It is also important to note the 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. AbbVie is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 12.83, which means AbbVie is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 4.5. 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 2.29 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 114, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.