Abbott (ABT) closed at $98.93 in the latest trading session, marking a -1.35% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.64%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.82%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 4.61% over the past month. This has lagged the Medical sector's loss of 3.72% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. The company is expected to report EPS of $1.10, down 4.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.78 billion, down 6.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.40 per share and revenue of $39.77 billion. These totals would mark changes of -17.6% and -8.89%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 22.8 right now. This represents a premium compared to its industry's average Forward P/E of 18.84.
Also, we should mention that ABT has a PEG ratio of 4.48. 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. The Medical - Products industry currently had an average PEG ratio of 2.65 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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