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AbbVie (ABBV) Soars 3.2%: Is Further Upside Left in the Stock?

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AbbVie (ABBV - Free Report) shares rallied 3.2% in the last trading session to close at $161.24. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.8% loss over the past four weeks.

The rise in share price came after management announced that the EMA’s Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion on its regulatory filing seeking label expansion for blockbuster immunology drug Skyrizi in ulcerative colitis indication. The drug has been performing extremely well since launch, bolstered by approvals in new indications.

This drugmaker is expected to post quarterly earnings of $3.05 per share in its upcoming report, which represents a year-over-year change of +4.8%. Revenues are expected to be $12.46 billion, down 10.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For AbbVie, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ABBV going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

AbbVie is part of the Zacks Large Cap Pharmaceuticals industry. Johnson & Johnson (JNJ - Free Report) , another stock in the same industry, closed the last trading session 1% higher at $146.67. JNJ has returned -3.1% in the past month.

For Johnson & Johnson, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.73. This represents a change of -2.5% from what the company reported a year ago. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).


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