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AbbVie (ABBV) Gains But Lags Market: What You Should Know
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AbbVie (ABBV - Free Report) closed at $81.47 in the latest trading session, marking a +1.38% move from the prior day. This move lagged the S&P 500's daily gain of 2.29%. At the same time, the Dow added 1.99%, and the tech-heavy Nasdaq gained 2.81%.
Heading into today, shares of the drugmaker had gained 19.07% over the past month, lagging the Medical sector's gain of 22.38% and the S&P 500's gain of 19.13% in that time.
ABBV will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2020. The company is expected to report EPS of $2.27, up 6.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.44 billion, up 7.76% from the prior-year quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.16 per share and revenue of $47.18 billion. These results would represent year-over-year changes of +13.65% and +41.83%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 3.47% lower. ABBV currently has a Zacks Rank of #3 (Hold).
Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 7.91. For comparison, its industry has an average Forward P/E of 14.29, which means ABBV is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 1.76. 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. ABBV's industry had an average PEG ratio of 1.97 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie (ABBV) Gains But Lags Market: What You Should Know
AbbVie (ABBV - Free Report) closed at $81.47 in the latest trading session, marking a +1.38% move from the prior day. This move lagged the S&P 500's daily gain of 2.29%. At the same time, the Dow added 1.99%, and the tech-heavy Nasdaq gained 2.81%.
Heading into today, shares of the drugmaker had gained 19.07% over the past month, lagging the Medical sector's gain of 22.38% and the S&P 500's gain of 19.13% in that time.
ABBV will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2020. The company is expected to report EPS of $2.27, up 6.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.44 billion, up 7.76% from the prior-year quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $10.16 per share and revenue of $47.18 billion. These results would represent year-over-year changes of +13.65% and +41.83%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 3.47% lower. ABBV currently has a Zacks Rank of #3 (Hold).
Investors should also note ABBV's current valuation metrics, including its Forward P/E ratio of 7.91. For comparison, its industry has an average Forward P/E of 14.29, which means ABBV is trading at a discount to the group.
It is also worth noting that ABBV currently has a PEG ratio of 1.76. 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. ABBV's industry had an average PEG ratio of 1.97 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.