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Is AbbVie (ABBV) a Great Value Stock Right Now?

Zacks

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is AbbVie (ABBV). ABBV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.36, which compares to its industry’s average of 14.69. Over the last 12 months, ABBV’s Forward P/E has been as high as 18.44 and as low as 9.10, with a median of 11.51.


ABBV is also sporting a PEG ratio of 0.75. 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. ABBV’s PEG compares to its industry’s average PEG of 1.77. Over the last 12 months, ABBV’s PEG has been as high as 1.41 and as low as 0.67, with a median of 0.83.

These are only a few of the key metrics included in AbbVie’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ABBV looks like an impressive value stock at the moment.


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Zacks Investment Research
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