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

Zacks Equity Research
CNB (CCNE) delivered earnings and revenue surprises of 10.34% and 5.53%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

Abbott (ABT) closed at $78.83 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 7.96% over the past month. This has outpaced the Medical sector's gain of 1.34% and the S&P 500's gain of 1.83% in that time.

Investors will be hoping for strength from ABT as it approaches its next earnings release. In that report, analysts expect ABT to post earnings of $0.61 per share. This would mark year-over-year growth of 3.39%. Our most recent consensus estimate is calling for quarterly revenue of $7.48 billion, up 1.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $31.80 billion, which would represent changes of +11.11% and +4.01%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. ABT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ABT is holding a Forward P/E ratio of 24.96. This represents a no noticeable deviation compared to its industry's average Forward P/E of 24.96.

Investors should also note that ABT has a PEG ratio of 2.13 right now. 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 was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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