AbbVie’s Chart Shows a Downward-Sloped Trend Despite Strong Fundamentals
Over the last six months, drug manufacturer AbbVie (NYSE: ABBV) has been confined to a downward trend with a channel defining the different cycles of the trend. The stock is near the upper rail of the channel at this point in time and the daily stochastic readings are in overbought territory.
As the channel has formed, the upper rail has developed from when the stochastic readings were in or near overbought territory. Given the current situation is showing such a scenario, it could be a sign that the stock is getting ready to get hit with another downswing.
From a fundamental perspective, AbbVie as a company has been performing far better than its stock would indicate. The company has averaged earnings growth of 19% per year over the last three years. The most recent quarter was even better with EPS growth of 52% over last year. Analysts expect overall earnings growth of 42% for this year as a whole.
In addition to the earnings growth, AbbVie has grown sales at a rate of 12% per year over the last three years and they grew by 18% in the most recent quarterly report.
The company has phenomenal profitability measurements with a return on equity of 185% currently and a profit margin of 39.4%.
This is a situation where the technical performance and the fundamental performance don’t match. If the stock can get through the resistance it faces, the fundamentals could help lift the stock over the next few quarters.
Momentum Indicator for ABBV turns negative, indicating new downward trend
ABBV saw its Momentum Indicator move below the 0 level on October 14, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned negative. In of the 77 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ABBV moved out of overbought territory on October 02, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for ABBV turned negative on October 09, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ABBV declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ABBV broke above its upper Bollinger Band on September 30, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ABBV advanced for three days, in of 366 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 376 cases where ABBV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. ABBV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: ABBV's P/B Ratio (243.902) is very high in comparison to the industry average of (9.785). ABBV's P/E Ratio (109.319) is considerably higher than the industry average of (24.212). Projected Growth (PEG Ratio) (0.413) is also within normal values, averaging (2.012). Dividend Yield (0.029) settles around the average of (0.028) among similar stocks. ABBV's P/S Ratio (6.978) is slightly higher than the industry average of (3.527).
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General Information
a research-based pharmaceutical company
Industry PharmaceuticalsMajor
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