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

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AbbVie (ABBV - Free Report) closed at $159.59 in the latest trading session, marking a -0.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.

Coming into today, shares of the drugmaker had gained 3.24% in the past month. In that same time, the Medical sector gained 6.47%, while the S&P 500 gained 6.17%.

Investors will be hoping for strength from AbbVie as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect AbbVie to post earnings of $2.47 per share. This would mark a year-over-year decline of 21.84%. Our most recent consensus estimate is calling for quarterly revenue of $12.08 billion, down 10.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.96 per share and revenue of $52.45 billion, which would represent changes of -20.41% and -9.66%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, AbbVie currently has a Forward P/E ratio of 14.7. Its industry sports an average Forward P/E of 14.87, so we one might conclude that AbbVie is trading at a discount comparatively.

We can also see that ABBV currently has a PEG ratio of 3.68. 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 1.84 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.

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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