On Tuesday, AbbVie (NYSE:ABBV) received a positive boost in its Relative Strength (RS) Rating, climbing from 65 to 71. The company is currently striving to surpass key moving averages, which could be perceived as potential resistance levels.
When evaluating stocks for investment, one crucial factor to monitor closely is relative price strength. The RS Rating, on a scale of 1 (weakest) to 99 (strongest), assesses a stock’s price performance over the past 52 weeks relative to all other stocks in our database.
Historical data has shown that the most significant market winners often boast an RS Rating of at least 80 during the initial phases of their upward moves. It will be interesting to observe whether AbbVie can continue its rebound and achieve this benchmark.
Examining the weekly chart action on MarketSmith, AbbVie appears to be forming a consolidation pattern with a potential buy point at 168.11. Investors should monitor the stock’s ability to break out above this price level, ideally accompanied by robust trading volume. It’s worth noting that AbbVie is recovering from a prior failed breakout from a daily cup with a handle chart.
Regarding its recent earnings performance, AbbVie reported a decline in both earnings and sales growth, with figures at -14% and -5%, respectively, in its latest report. However, it’s noteworthy that these numbers reflect an improvement for both the top and bottom lines. AbbVie is scheduled to release its next quarterly earnings update on or around October 27.
Among its peers in the Medical-Ethical Drugs industry group, AbbVie currently holds the No. 6 ranking. Notably, Zoetis (NYSE:ZTS) and Novartis ADR (NYSE:NVS) are also positioned as top-rated stocks within the same industry group.
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