Abbott (ABT) Laps the Stock Market: Here's Why
The most recent trading session ended with Abbott (ABT) standing at $109.79, reflecting a +0.51% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
The maker of infant formula, medical devices and drugs's shares have seen an increase of 7.03% over the last month, surpassing the Medical sector's gain of 4.24% and the S&P 500's gain of 4.89%.
The investment community will be paying close attention to the earnings performance of Abbott in its upcoming release. The company is expected to report EPS of $1.19, up 15.53% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $10.14 billion, indicating a 0.49% increase compared to the same quarter of the previous year.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.44 per share and revenue of $40.01 billion. These results would represent year-over-year changes of -16.85% and -8.35%, respectively.
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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 24.6. This indicates a premium in contrast to its industry's Forward P/E of 22.62.
It's also important to note that ABT currently trades at a PEG ratio of 2.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Medical - Products industry stood at 2.73 at the close of the market yesterday.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
