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Abbott (ABT) Gains As Market Dips: What You Should Know

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Abbott (ABT - Free Report) ended the recent trading session at $90.87, demonstrating a +0.75% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.5% loss on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.23%.

Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 12.14% in the past month. In that same time, the Medical sector lost 4.84%, while the S&P 500 lost 2.4%.

The investment community will be paying close attention to the earnings performance of Abbott in its upcoming release. The company is slated to reveal its earnings on October 18, 2023. The company is predicted to post an EPS of $1.10, indicating a 4.35% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.79 billion, indicating a 5.95% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.40 per share and revenue of $39.78 billion, indicating changes of -17.6% and -8.88%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Abbott. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Abbott presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 20.49. For comparison, its industry has an average Forward P/E of 17.94, which means Abbott is trading at a premium to the group.

Meanwhile, ABT's PEG ratio is currently 4.03. 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. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 2.28.

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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