In the latest trading session, AbbVie (ABBV) closed at $153.93, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the drugmaker had gained 4.96% in the past month. In that same time, the Medical sector lost 1.13%, while the S&P 500 lost 6.79%.
AbbVie will be looking to display strength as it nears its next earnings release. In that report, analysts expect AbbVie to post earnings of $3.43 per share. This would mark year-over-year growth of 10.29%. Our most recent consensus estimate is calling for quarterly revenue of $14.66 billion, up 5% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $14.02 per share and revenue of $59.63 billion. These results would represent year-over-year changes of +10.39% and +6.11%, respectively.
Investors might also notice recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. AbbVie is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, AbbVie currently has a Forward P/E ratio of 10.97. This valuation marks a discount compared to its industry's average Forward P/E of 13.23.
Also, we should mention that ABBV has a PEG ratio of 4.33. 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. ABBV's industry had an average PEG ratio of 2 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
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