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

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AbbVie (ABBV - Free Report) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the drugmaker had gained 1.04% in the past month. In that same time, the Medical sector lost 2.31%, while the S&P 500 gained 4.3%.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2019. In that report, analysts expect ABBV to post earnings of $2.05 per share. This would mark year-over-year growth of 9.63%. Meanwhile, our latest consensus estimate is calling for revenue of $7.75 billion, down 2.35% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.69 per share and revenue of $32.79 billion. These totals would mark changes of +9.86% and +0.12%, respectively, from last year.

Any recent changes to analyst estimates for ABBV should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.13% higher. ABBV currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.3 right now. For comparison, its industry has an average Forward P/E of 14.97, which means ABBV is trading at a discount to the group.

Meanwhile, ABBV's PEG ratio is currently 1.66. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.07 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 83, putting it in the top 33% 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.

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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