Recent trade saw AbbVie (ABBV) settle at $179.86, down 0.59%. The stock trailed the S&P 500, which lost 0.19%. The Dow rose 0.1% and the tech-heavy Nasdaq fell 0.54%. The drugmaker's shares rose 4.4% last month, outperforming the Medical sector's 2.91% and the S&P 500's 3.18%.
Investors will watch AbbVie's earnings report. Compared to the same quarter last year, the company's anticipated EPS is $2.34, down 4.88%. Our latest consensus estimate predicts revenue of $11.94 billion, down 2.31% from previous quarter.
The Zacks Consensus Estimates predict $11.16 per share earnings and $54.5 billion in revenue for the full year. These totals are up 0.45% and 0.33 percent from last year.
AbbVie investors should also examine recent analyst estimate changes. These adjustments reflect short-term business patterns that alter often. Positive estimate revisions indicate analyst optimism about the company's business and profitability.
Our research shows that estimate changes predict stock price performance. Our quantitative Zacks Rank rating system uses these estimate revisions to capitalize on this. #1 stocks have returned +25% annually since 1988, according to outside audits. Over 30 days, the Zacks Consensus EPS estimate has risen 0.05%. AbbVie is #3 (Hold) on Zacks.
Value is key, thus investors should observe AbbVie's 16.21 Forward P/E ratio. This valuation exceeds the industry average Forward P/E of 14.3. Additionally, ABBV has a PEG ratio of 2.3. The PEG ratio, like the P/E ratio, considers the company's predicted profits growth. The Large Cap Pharmaceuticals averaged 1.73 PEG at yesterday's close.
The Medical sector includes Large Cap Pharmaceuticals. The Zacks Industry Rank of 195 places this industry in the bottom 23% of 250+ industries.
By evaluating the average Zacks Rank of individual companies within industry groups, the Zacks Industry Rank measures their strength. Our analysis shows that the top 50% of ranked industries outperform the bottom half 2 to 1.
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