U.S. Markets closed

Abbott (ABT) Gains Ground on Solid EPD and Diabetes Arms

Zacks Equity Research

On Mar 19, we issued an updated research report on Abbott Laboratories ABT. The company has been consistently delivering solid organic growth in the Established Pharmaceuticals (“EPD”) and Diabetes segments. The stock currently carries a Zacks Rank #2 (Buy).

This leading developer, manufacturer and seller of a diversified line of health care products has outperformed its industry over the past year. The stock has gained 27.7% in comparison with the industry’s 6.6% rise.

The EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America.

The company recently noted that the Branded Generic operating model has positioned EPD for sustained above-market growth in many of these growing pharmaceutical markets. In the last reported quarter, sales were strong led by double-digit growth in both India and China.

We are also upbeat about Abbott’s Diabetes arm which achieved mid-30s growth led by FreeStyle Libre’s global sales of more than $1 billion in 2018, a 100% increase over the 2017 figure. As of 2018-end, there were approximately 1.3 million active users worldwide, of which approximately two-thirds were type 1 diabetics and one-third type 2.

Meanwhile, the United States has been seeing an accelerating trend of new users since Abbott ramped up its awareness efforts during the second half of 2018.

In Europe, the company initiated the launch of Libre 2.0, which offers optional alarms that set off when patients’ glucose levels fall, in the fourth quarter.

Moreover, we are upbeat about the company’s Diagnostics business delivering impressive performance over the past few quarters.  Synergies from the Alere consolidation in the form of revenues from Rapid Diagnostics have been driving growth. Furthermore, Alinity, family of highly differentiated instruments, is achieving accelerated growth and competitive win rates in Europe.

Other Key Picks

Other top-ranked stocks in the broader medical space are Integer Holdings Corporation ITGR, Veeva Systems Inc. VEEV and Hologic, Inc. HOLX.

Integer Holdings projects an earnings growth rate of 31.2% for the first quarter. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock currently carries a Zacks Rank of 2.

Hologic’s long-term earnings growth rate is projected at 8.9%. The stock presently has a Zacks Rank #2.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
Hologic, Inc. (HOLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research