We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abbott (ABT) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Abbott (ABT - Free Report) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 1.68% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 9.52% in the past month. In that same time, the Medical sector lost 5.62%, while the S&P 500 lost 6.68%.
Abbott will be looking to display strength as it nears its next earnings release. On that day, Abbott is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 43.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 22.41. This represents a premium compared to its industry's average Forward P/E of 21.74.
Also, we should mention that ABT has a PEG ratio of 4.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Abbott (ABT) Gains But Lags Market: What You Should Know
Abbott (ABT - Free Report) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 1.68% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 9.52% in the past month. In that same time, the Medical sector lost 5.62%, while the S&P 500 lost 6.68%.
Abbott will be looking to display strength as it nears its next earnings release. On that day, Abbott is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 43.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 22.41. This represents a premium compared to its industry's average Forward P/E of 21.74.
Also, we should mention that ABT has a PEG ratio of 4.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.