Abbott (ABT) Outpaces Stock Market Gains: What You Should Know
Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.4% over the past month. This has lagged the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $0.98, down 43.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $39.74 billion, which would represent changes of -17.98% and -8.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 22.38 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.26.
Also, we should mention that ABT has a PEG ratio of 4.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Products stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% 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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Abbott Laboratories (ABT) : Free Stock Analysis Report
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