AbbVie (ABBV) Down In Early Morning Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified AbbVie ( ABBV) as a pre-market laggard 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 $655.5 million.
  • ABBV traded 279,460 shares today in the pre-market hours as of 7:32 AM.
  • ABBV is down 3% today from yesterday's close.

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More details on ABBV:

AbbVie Inc., a research-based biopharmaceutical company, is engaged in the discovery, development, manufacture, and sale of pharmaceutical products worldwide. The stock currently has a dividend yield of 3.2%. ABBV has a PE ratio of 20.3. Currently there are 5 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 8.7 million shares per day over the past 30 days. AbbVie has a market cap of $83.4 billion and is part of the health care sector and drugs industry. Shares are up 0.9% year-to-date as of the close of trading on Monday.

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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, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 2.8% when compared to the same quarter one year prior, going from $1,068.00 million to $1,098.00 million.
  • ABBVIE INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ABBVIE INC increased its bottom line by earning $2.56 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.56).
  • The gross profit margin for ABBVIE INC is currently very high, coming in at 77.59%. Regardless of ABBV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ABBV's net profit margin of 22.28% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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