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In the latest trading session, Abbott (ABT) closed at $119.02, marking a +0.98% move from the previous day. The stock's change was less than the S&P 500's daily gain of 2.11%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 2.96%.
The the stock of maker of infant formula, medical devices and drugs has risen by 6.41% in the past month, leading the Medical sector's gain of 3.98% and the S&P 500's gain of 3.08%.
The upcoming earnings release of Abbott will be of great interest to investors. The company's upcoming EPS is projected at $0.97, signifying a 5.83% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.81 billion, indicating a 0.65% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.61 per share and a revenue of $41.78 billion, signifying shifts of +3.83% and +4.17%, respectively, from the last year.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Currently, Abbott is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Abbott is at present trading with a Forward P/E ratio of 25.56. This expresses a premium compared to the average Forward P/E of 20.65 of its industry.
We can additionally observe that ABT currently boasts a PEG ratio of 2.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Products industry had an average PEG ratio of 2.38 as trading concluded yesterday.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 35% of all industries, numbering over 250.