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Abbott (ABT) Gains But Lags Market: What You Should Know

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In the latest trading session, Abbott (ABT - Free Report) closed at $137.71, marking a +0.09% move from the previous day. The stock lagged the S&P 500's daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.

The the stock of maker of infant formula, medical devices and drugs has risen by 6.57% in the past month, leading the Medical sector's gain of 0.4% and the S&P 500's loss of 4.13%.

Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.07, indicating a 9.18% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.39 billion, showing a 4.28% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.15 per share and a revenue of $44.35 billion, representing changes of +10.28% and +5.73%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Abbott. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Abbott currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Abbott is currently exchanging hands at a Forward P/E ratio of 26.74. This represents a premium compared to its industry's average Forward P/E of 18.57.

We can also see that ABT currently has a PEG ratio of 2.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.08.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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