Abbott (ABT) closed the most recent trading day at $101.66, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 6.92% over the past month. This has lagged the Medical sector's loss of 2.31% and the S&P 500's gain of 3.78% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $1.04 per share, which would represent a year-over-year decline of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.67 billion, down 14.08% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.38 billion. These results would represent year-over-year changes of -17.98% and -9.8%, respectively.
Investors should also note any recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 23.41. This valuation marks a premium compared to its industry's average Forward P/E of 22.69.
It is also worth noting that ABT currently has a PEG ratio of 4.6. 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 industry currently had an average PEG ratio of 2.52 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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