Abbott (ABT) closed the most recent trading day at $75.67, moving -0.05% from the previous trading session. This change was narrower than the S&P 500's 0.69% loss on the day. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had lost 4.84% over the past month, lagging the Medical sector's loss of 0.97% and the S&P 500's loss of 4.53% in that time.
Investors will be hoping for strength from ABT as it approaches its next earnings release. On that day, ABT is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 9.59%. Meanwhile, our latest consensus estimate is calling for revenue of $7.99 billion, up 2.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.22 per share and revenue of $31.92 billion. These totals would mark changes of +11.81% and +4.4%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ABT. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ABT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ABT currently has a Forward P/E ratio of 23.54. This represents a discount compared to its industry's average Forward P/E of 24.64.
Also, we should mention that ABT has a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABT's industry had an average PEG ratio of 2.22 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
Abbott Laboratories (ABT) : Free Stock Analysis Report
To read this article on Zacks.com click here.