Trade-Ideas: AbbVie (ABBV) Is Today's Post-Market Leader Stock - TheStreet

Trade-Ideas LLC identified

AbbVie

(

ABBV

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified AbbVie as such a stock due to the following factors:

  • ABBV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $806.0 million.
  • ABBV is up 2% today from today's close.

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More details on ABBV:

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The stock currently has a dividend yield of 3.9%. ABBV has a PE ratio of 41. Currently there are 10 analysts that rate AbbVie a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for AbbVie has been 11.2 million shares per day over the past 30 days. AbbVie has a market cap of $87.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.58 and a short float of 2.2% with 2.34 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AbbVie as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:

  • ABBV's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 24.4% when compared to the same quarter one year prior, going from $1,098.00 million to $1,366.00 million.
  • Net operating cash flow has slightly increased to $1,832.00 million or 6.69% when compared to the same quarter last year. Despite an increase in cash flow, ABBVIE INC's cash flow growth rate is still lower than the industry average growth rate of 17.19%.
  • ABBV has underperformed the S&P 500 Index, declining 15.17% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 5.65 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, ABBV's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.

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