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Here's Why AbbVie (ABBV) is a Strong Growth Stock
ZACKS· 2026-02-24 15:46
Core Insights - Zacks Premium offers various tools to help investors make informed decisions in the stock market, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators designed to assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Style Score emphasizes a company's financial health and future potential, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [5] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions, indicating favorable buying opportunities for high-momentum stocks [6] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth prospects, and momentum, serving as a strong indicator when used alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [9] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended, while 3 (Hold) stocks should also have A or B scores for potential upside [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings forecasts [11] Company Spotlight: AbbVie (ABBV) - AbbVie, based in North Chicago, IL, has strengthened its position in the pharmaceutical industry through the acquisition of Allergan for $63 billion, diversifying its portfolio beyond Humira [12] - AbbVie holds a 3 (Hold) Zacks Rank and a VGM Score of B, with a Growth Style Score of B indicating a projected year-over-year earnings growth of 44.9% for the current fiscal year [13] - Recent upward revisions from analysts for AbbVie's earnings estimates and an average earnings surprise of +3.2% further enhance its attractiveness to investors [13][14]