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AbbVie (ABBV) Outperforms Broader Market: What You Need to Know

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AbbVie (ABBV - Free Report) ended the recent trading session at $189.65, demonstrating a +0.94% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.76%.

Shares of the drugmaker witnessed a loss of 1.77% over the previous month, beating the performance of the Medical sector with its loss of 3.79% and underperforming the S&P 500's gain of 1.47%.

The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. The company is forecasted to report an EPS of $2.93, showcasing a 0.68% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.28 billion, up 2.5% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.86 per share and a revenue of $55.85 billion, signifying shifts of -2.25% and +2.81%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for AbbVie. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. AbbVie is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, AbbVie is currently being traded at a Forward P/E ratio of 17.31. This denotes a premium relative to the industry's average Forward P/E of 15.92.

Also, we should mention that ABBV has a PEG ratio of 2.57. 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 industry currently had an average PEG ratio of 1.59 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.

To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.


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