Yahoo Finance Abbott (ABT) Exceeds Market Returns: Some Facts to Consider
Abbott (ABT) closed the most recent trading day at $105.49, moving +0.18% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The maker of infant formula, medical devices and drugs's shares have seen an increase of 1.3% over the last month, not keeping up with the Medical sector's gain of 2.3% and the S&P 500's gain of 2.83%.
Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.10, showcasing a 1.85% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.35 billion, showing a 3.78% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.62 per share and revenue of $41.66 billion, which would represent changes of +4.05% and +3.86%, respectively, from the prior 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. 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Abbott holds a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 22.8. Its industry sports an average Forward P/E of 23.4, so one might conclude that Abbott is trading at a discount comparatively.
We can also see that ABT currently has a PEG ratio of 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ABT's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
