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Should You Think About Buying Abbott Laboratories (NYSE:ABT) Now?

Simply Wall St

Abbott Laboratories (NYSE:ABT) maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of US$83.68 to US$91.86. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Abbott Laboratories’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Abbott Laboratories

Is Abbott Laboratories still cheap?

Good news, investors! Abbott Laboratories is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $121.58, but it is currently trading at US$89.66 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Abbott Laboratories’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Abbott Laboratories?

NYSE:ABT Past and Future Earnings, February 17th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Abbott Laboratories’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since ABT is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ABT for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ABT. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Abbott Laboratories. You can find everything you need to know about Abbott Laboratories in the latest infographic research report. If you are no longer interested in Abbott Laboratories, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.