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AbbVie (ABBV) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw AbbVie (ABBV - Free Report) ending at $188.57, denoting a -0.99% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.02%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.04%.

Heading into today, shares of the drugmaker had lost 1.29% over the past month, outpacing the Medical sector's loss of 4.19% and lagging the S&P 500's gain of 3.77% in that time.

Investors will be eagerly watching for the performance of AbbVie in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. The company is expected to report EPS of $2.94, down 0.34% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $14.25 billion, reflecting a 2.35% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.87 per share and revenue of $55.81 billion, indicating changes of -2.16% and +2.75%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for AbbVie. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. AbbVie is currently a Zacks Rank #3 (Hold).

Investors should also note AbbVie's current valuation metrics, including its Forward P/E ratio of 17.52. This valuation marks a premium compared to its industry's average Forward P/E of 16.05.

We can also see that ABBV currently has a PEG ratio of 2.6. 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 1.65 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 13% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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