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Abbott (ABT) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Abbott (ABT) closed the most recent trading day at $92.62, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily gain of 0.82%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.59%.

Investors will be hoping for strength from ABT as it approaches its next earnings release. In that report, analysts expect ABT to post earnings of $0.41 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $6.76 billion, down 15.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $31.22 billion, which would represent changes of -13.27% and -2.16%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ABT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. ABT is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ABT is holding a Forward P/E ratio of 33.08. For comparison, its industry has an average Forward P/E of 34.21, which means ABT is trading at a discount to the group.

Investors should also note that ABT has a PEG ratio of 3.86 right now. 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 4.9 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 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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Zacks Investment Research