Yahoo Finance Abbott (ABT) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Abbott (ABT) closed at $105.81, marking a -1.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.88%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 2.6% in the past month. In that same time, the Medical sector gained 2.89%, while the S&P 500 gained 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is expected to report EPS of $1.10, up 1.85% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.35 billion, showing a 3.78% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.62 per share and a revenue of $41.66 billion, indicating changes of +4.05% and +3.86%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Abbott presently features a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 23.27. This valuation marks a discount compared to its industry's average Forward P/E of 24.12.
We can also see that ABT currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Products industry had an average PEG ratio of 2.15 as trading concluded yesterday.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
