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

·3 min read

Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day.

Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 5.96% over the past month. This has was narrower than the Medical sector's loss of 6.22% and lagged the S&P 500's loss of 5.13% in that time.

Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 36.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.57 billion, down 12.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.39 billion. These totals would mark changes of -4.22% and -1.59%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Abbott currently has a Forward P/E ratio of 20.55. This represents a premium compared to its industry's average Forward P/E of 20.33.

Meanwhile, ABT's PEG ratio is currently 3.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.03 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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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