In the latest trading session, Abbott (ABT) closed at $102.73, marking a -1.98% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.37%. Meanwhile, the Dow lost 1.92%, and the Nasdaq, a tech-heavy index, lost 3.02%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 2.27% over the past month. This has outpaced the Medical sector's loss of 1.77% and the S&P 500's loss of 2.31% in that time.
ABT will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2020. The company is expected to report EPS of $0.89, up 5.95% from the prior-year quarter. 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.
Any recent changes to analyst estimates for ABT should also be noted by investors. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% 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).
Valuation is also important, so investors should note that ABT has a Forward P/E ratio of 32.02 right now. This valuation marks a discount compared to its industry's average Forward P/E of 38.78.
It is also worth noting that ABT currently has a PEG ratio of 2.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products industry currently had an average PEG ratio of 4.09 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% 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.
To follow ABT in the coming trading sessions, be sure to utilize 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.