AbbVie (ABBV) shares ended the last trading session 4.2% higher at $253.35. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.2% gain over the past four weeks.
AbbVie stock hit its 52-week high on Friday, driven by some recent positive developments. These include the proposed $10.9 billion acquisition of Apogee Therapeutics, which will further expand its dominant immunology franchise, and the FDA’s approval of its blockbuster immunology drug, Skyrizi (risankizumab), for the treatment of children aged six years and older with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy, or with active psoriatic arthritis.
This drugmaker is expected to post quarterly earnings of $3.78 per share in its upcoming report, which represents a year-over-year change of +27.3%. Revenues are expected to be $16.8 billion, up 8.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For AbbVie, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ABBV going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
AbbVie is part of the Zacks Large Cap Pharmaceuticals industry. Innoviva (INVA), another stock in the same industry, closed the last trading session 0.9% higher at $23.57. INVA has returned 6.7% in the past month.
Innoviva's consensus EPS estimate for the upcoming report has changed +9.8% over the past month to $0.56. Compared to the company's year-ago EPS, this represents a change of -27.3%. Innoviva currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).