AbbVie (ABBV) closed the most recent trading day at $179.53, moving -0.32% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Heading into today, shares of the drugmaker had gained 2% over the past month, outpacing the Medical sector's loss of 6.22% and the S&P 500's loss of 1.7% in that time.
The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. The company is slated to reveal its earnings on January 31, 2025. In that report, analysts expect AbbVie to post earnings of $2.99 per share. This would mark year-over-year growth of 7.17%. Alongside, our most recent consensus estimate is anticipating revenue of $14.92 billion, indicating a 4.34% upward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for AbbVie. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.7% higher. At present, AbbVie boasts a Zacks Rank of #3 (Hold).
In the context of valuation, AbbVie is at present trading with a Forward P/E ratio of 14.67. This signifies a premium in comparison to the average Forward P/E of 12.34 for its industry.
It is also worth noting that ABBV currently has a PEG ratio of 1.77. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.26.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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