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Abbott (ABT) Outperforms Broader Market: What You Need to Know

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Abbott (ABT - Free Report) closed the most recent trading day at $113.64, moving +0.07% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.08%.

The maker of infant formula, medical devices and drugs's shares have seen a decrease of 0.96% over the last month, surpassing the Medical sector's loss of 3.6% and falling behind the S&P 500's gain of 1.21%.

Investors will be eagerly watching for the performance of Abbott in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 16, 2024. It is anticipated that the company will report an EPS of $1.20, marking a 5.26% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.53 billion, up 3.77% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.66 per share and revenue of $41.72 billion, indicating changes of +4.95% and +4.03%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. At present, Abbott boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.36. This expresses a discount compared to the average Forward P/E of 24.52 of its industry.

Investors should also note that ABT has a PEG ratio of 2.83 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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