Home / Biopharma / Stocks Trapped in Bearish Claws: AbbVie Inc. (NYSE:ABBV), Cigna Corp. (NYSE:CI)

Stocks Trapped in Bearish Claws: AbbVie Inc. (NYSE:ABBV), Cigna Corp. (NYSE:CI)

AbbVie Inc. (NYSE:ABBV) runs in leading trade, it inching up 0.02% to traded at $63.35. ABBV attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of -1.11%. The board of directors of AbbVie Inc. (ABBV) declared a quarterly cash dividend of $0.57 per share. The cash dividend is payable Nov. 15, 2016 to stockholders of record at the close of business on Oct. 14, 2016. Since the firm’s inception in 2013, AbbVie has surged its dividend by over 42 percent.  AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have yearlyly surged their dividend for at least 25 consecutive years

To find out the technical position of ABBV, it holds price to book ratio of 18.26 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 11.19, and price to earnings ratio calculated as 18.16. The price to earnings growth ration calculated as 1.12. ABBV is presenting price to cash flow of 13.04 and free cash flow concluded as 25.45.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 185.20%, and looking further price to next year’s EPS is 17.71%. While take a short look on price to sales ratio, that was 4.21 and price to earning ration of 18.16 attracting passive investors.

Cigna Corp. (NYSE:CI) kept active in under and overvalue discussion, CI holds price to book ratio of 2.46 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 16.70, which is authentic method to judge but not universal for all situation.

Fundament/ News Factor in Focus

Taking look on ratio analysis, CI has forward price to earnings ratio of 13.51, compare to its price to earnings ratio of 16.70. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 1.46. The co is presenting price to cash flow as 13.37 and while calculating price to free cash flow it concluded at 24.32, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.

The firm has price volatility of 1.79% for a week and 1.46% for a month. Its beta stands at 0.43 times. Narrow down four to firm performance, its weekly performance was 0.76% and monthly performance was -2.42%.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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