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.
ABBV saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 27, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 27, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ABBV as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
ABBV moved below its 50-day moving average on April 27, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ABBV crossed bearishly below the 50-day moving average on May 04, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for ABBV entered a downward trend on May 30, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 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 Uptrend is expected.
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 368 cases, the price rose further within the following month. The odds of a continued upward trend are .
ABBV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 60, 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (18.149) is slightly higher than the industry average of (6.139). P/E Ratio (32.154) is within average values for comparable stocks, (30.248). ABBV's Projected Growth (PEG Ratio) (10.412) is slightly higher than the industry average of (3.483). ABBV has a moderately high Dividend Yield (0.042) as compared to the industry average of (0.027). P/S Ratio (4.274) is also within normal values, averaging (4.024).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ABBV’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a research-based pharmaceutical company
A.I.dvisor indicates that over the last year, ABBV has been loosely correlated with PFE. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if ABBV jumps, then PFE could also see price increases.
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