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

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AbbVie (ABBV - Free Report) closed at $77.47 in the latest trading session, marking a +0.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq lost 0.81%.

Heading into today, shares of the drugmaker had lost 16.33% over the past month, lagging the Medical sector's gain of 2.7% and the S&P 500's gain of 6.55% in that time.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2019. On that day, ABBV is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 8.02%. Meanwhile, our latest consensus estimate is calling for revenue of $7.77 billion, down 2.1% from the prior-year quarter.

ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.67 per share and revenue of $33.13 billion. These results would represent year-over-year changes of +9.61% and +1.15%, respectively.

Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 0.03% lower. ABBV is currently a Zacks Rank #3 (Hold).

Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 8.9. This represents a discount compared to its industry's average Forward P/E of 14.05.

It is also worth noting that ABBV currently has a PEG ratio of 0.81. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.93 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 73, putting it in the top 29% 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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