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

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AbbVie (ABBV - Free Report) closed the most recent trading day at $87.20, moving -0.9% from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the drugmaker had lost 2.07% in the past month. In that same time, the Medical sector gained 0.81%, while the S&P 500 gained 3.23%.

ABBV will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2020. On that day, ABBV is projected to report earnings of $2.21 per share, which would represent year-over-year growth of 16.32%. Our most recent consensus estimate is calling for quarterly revenue of $8.76 billion, up 5.48% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ABBV. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABBV is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 9.36. This valuation marks a discount compared to its industry's average Forward P/E of 16.11.

We can also see that ABBV currently has a PEG ratio of 2.08. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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