AbbVie (ABBV) Stock Sinks As Market Gains: Here's Why

AbbVie (ABBV) closed the most recent trading day at $209.17, moving -0.4% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.77%. At the same time, the Dow added 1.42%, and the tech-heavy Nasdaq gained 2.28%.Heading into today, shares of the drugmaker had gained 3.92% over the past month, outpacing the Medical sector's loss of 1.17% and the S&P 500's loss of 5.73% in that time.The investment community will be paying close attention to the earnings performance of AbbVie in its upcoming release. The company is forecasted to report an EPS of $2.51, showcasing an 8.66% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $12.92 billion, up 4.94% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.30 per share and revenue of $59.52 billion, indicating changes of +21.54% and +5.66%, respectively, compared to the previous year.Investors should also take note of any recent adjustments to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. At present, AbbVie boasts a Zacks Rank of #3 (Hold).Looking at its valuation, AbbVie is holding a Forward P/E ratio of 17.07. This expresses a premium compared to the average Forward P/E of 14.53 of its industry.Also, we should mention that ABBV has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.34.The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks