Back to top

Image: Bigstock

AbbVie (ABBV) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Read MoreHide Full Article

AbbVie (ABBV - Free Report) closed at $180 in the latest trading session, marking a +0.9% move from the prior day. The stock lagged the S&P 500's daily gain of 1.1%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq increased by 1.35%.

Coming into today, shares of the drugmaker had gained 0.75% in the past month. In that same time, the Medical sector lost 3.78%, while the S&P 500 gained 0.22%.

Market participants will be closely following the financial results of AbbVie in its upcoming release. The company's earnings per share (EPS) are projected to be $2.99, reflecting a 7.17% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.92 billion, indicating a 4.34% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.96 per share and revenue of $56.15 billion, indicating changes of -1.35% and +3.38%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AbbVie. Recent revisions tend to reflect the latest near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. AbbVie is currently a Zacks Rank #3 (Hold).

Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 16.28. This valuation marks a premium compared to its industry's average Forward P/E of 13.85.

Investors should also note that ABBV has a PEG ratio of 1.96 right now. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.46.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 140, finds itself in the bottom 45% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AbbVie Inc. (ABBV) - free report >>

Published in