Here's Why Abbott (ABT) Gained But Lagged the Market Today
Abbott (ABT) closed the most recent trading day at $108.42, moving +0.33% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 6.78% in the past month. In that same time, the Medical sector gained 5.08%, while the S&P 500 gained 5.16%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company is predicted to post an EPS of $1.19, indicating a 15.53% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.14 billion, reflecting a 0.49% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.44 per share and a revenue of $40.01 billion, indicating changes of -16.85% and -8.35%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Abbott holds a Zacks Rank of #3 (Hold).
With respect to valuation, Abbott is currently being traded at a Forward P/E ratio of 24.34. This signifies a premium in comparison to the average Forward P/E of 23.32 for its industry.
It's also important to note that ABT currently trades at a PEG ratio of 2.7. 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. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 2.68.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
