Sat, Dec 20, 2014, 5:43 PM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Abbott Laboratories Message Board

  • oxledge oxledge Apr 4, 2011 12:25 PM Flag

    Reasons to own ABT just went up

    There are always a number of great reasons to own ABT, particularly when the share price takes one of its periodic hits, like the recent dip to $45.

    Reasons to own:

    1. Excellent valuation relative to the market and relative to the pharma industry.

    2. Tremendous track record.

    3. Great dividend yield and long history of large annual dividend increases.

    4. Financial stability - ABT has always held its value even in the toughest equity markets. Doesn't always do the best in huge up markets, but always rock solid in bad times.

    So what new do we have going on?

    The key here is on the product side, which influences the institutional investor and the momentum crowd.

    1. Threat to Humira from Pfizer is grossly overrated, so Humira growth continues unabated.

    2. Acquisition of the Solvay healthcare business will do better than expected.

    3. ABT's new self dissolving stent continues to produce great results in trials and will revolutionize the stent industry yet again.

    Now the ABT picture takes on a whole new look and this is being reflected in the share price, which is going up. ABT to earn $4.60 this year (2011). A pathetically low p/e of 12 puts the shares at $55, not including the current 4% yield. P/E on ABT should be more like 14-16, which is only a market multiple. At that p/e, ABT shares would trade at $64-$74 range.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
46.05+0.28(+0.61%)Dec 19 4:01 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Under Armour, Inc.
NYSEFri, Dec 19, 2014 4:04 PM EST
ImmunoGen, Inc.
NASDAQFri, Dec 19, 2014 4:00 PM EST
La Jolla Pharmaceutical Co.
NASDAQFri, Dec 19, 2014 4:00 PM EST