AbbVie (ABBV) Falls More Than Market: What to Expect from Earnings and Industry Trends

AbbVie (ABBV) closed the latest trading session at $185.48, marking a -2.82% decline from the previous day. This move was smaller than the S&P 500's daily loss of 0.84%. The Dow experienced a 0.7% decrease, while the tech-heavy Nasdaq depreciated by 0.91%. Looking at the drugmaker's performance over the past month, shares have gained 3.72%, outpacing the Medical sector's 0% loss and the S&P 500's 1.44% gain. Investors will be closely watching AbbVie's upcoming earnings release, which is forecasted to report an EPS of $3.24, showing a 22.26% increase from the corresponding quarter of the prior year. The Zacks Consensus Estimate for revenue is projecting net sales of $14.98 billion, up 3.56% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.28 per share and a revenue of $60.04 billion, indicating a +21.34% and +6.58% shift, respectively, from the last year. It's important to note that recent changes in analyst estimates for AbbVie reflect the evolving nature of short-term business trends. Upbeat changes in estimates indicate analysts' favorable outlook on the company's health and profitability. To utilize this information, Zacks has created a proprietary model called the Zacks Rank, which integrates these estimate changes and provides a functional rating system ranging from #1 (Strong Buy) to #5 (Strong Sell). Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged, and AbbVie currently boasts a Zacks Rank of #3 (Hold). In terms of valuation, AbbVie has a Forward P/E ratio of 15.54, indicating a premium compared to its industry's Forward P/E of 13.65. The company also has a PEG ratio of 1.27, which takes into account the company's expected earnings growth rate and is similar to the widely-known P/E ratio. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.27 as of yesterday's trading close. The Large Cap Pharmaceuticals industry is part of the Medical sector and currently has a Zacks Industry Rank of 57, placing it in the top 24% of all 250+ industries. The Zacks Industry Rank gauges the strength of industry groups by measuring the average Zacks Rank of individual stocks within those groups, with our research showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To keep track of all these stock-moving metrics and others in upcoming trading sessions, be sure to use Zacks.com. Don't forget to download Zacks Investment Research's latest recommendations, including their 7 Best Stocks for the Next 30 Days report.