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Abbott (ABT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

In the latest trading session, Abbott (ABT) closed at $104.70, marking a +0.67% move from the previous day. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq lost 0.61%.

Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 2.87% in the past month. In that same time, the Medical sector lost 1.9%, while the S&P 500 lost 0.52%.

Wall Street will be looking for positivity from ABT as it approaches its next earnings report date. On that day, ABT is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 5.95%. Our most recent consensus estimate is calling for quarterly revenue of $8.43 billion, up 4.4% from the year-ago period.

ABT's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $32.88 billion. These results would represent year-over-year changes of +0.93% and +3.05%, respectively.

Investors might also notice recent changes to analyst estimates for ABT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. ABT is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ABT is holding a Forward P/E ratio of 31.77. Its industry sports an average Forward P/E of 38.53, so we one might conclude that ABT is trading at a discount comparatively.

Investors should also note that ABT has a PEG ratio of 2.89 right now. 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 4.18 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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