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In the latest trading session, AbbVie (ABBV) closed at $186.11, marking a +0.26% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq depreciated by 0.32%.
Coming into today, shares of the drugmaker had lost 3.99% in the past month. In that same time, the Medical sector lost 3.23%, while the S&P 500 gained 6.43%.
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Market participants will be closely following the financial results of AbbVie in its upcoming release. On that day, AbbVie is projected to report earnings of $3.24 per share, which would represent year-over-year growth of 22.26%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.98 billion, indicating a 3.56% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.28 per share and revenue of $60.04 billion. These totals would mark changes of +21.34% and +6.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AbbVie presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, AbbVie is holding a Forward P/E ratio of 15.11. Its industry sports an average Forward P/E of 13.22, so one might conclude that AbbVie is trading at a premium comparatively.
It's also important to note that ABBV currently trades at a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABBV's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.