Abbott (ABT) Gains As Market Dips: What You Should Know
Abbott (ABT) closed at $109.10 in the latest trading session, marking a +1.99% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had lost 8.93% over the past month, lagging the Medical sector's loss of 5.47% and the S&P 500's loss of 7.99% in that time.
Abbott will be looking to display strength as it nears its next earnings release. On that day, Abbott is projected to report earnings of $1.11 per share, which would represent a year-over-year decline of 5.13%. Meanwhile, our latest consensus estimate is calling for revenue of $10.39 billion, up 1.6% from the prior-year quarter.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $41.69 billion. These results would represent year-over-year changes of -7.29% and -3.22%, respectively.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate has moved 1.61% higher within the past month. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 22.16. This valuation marks a premium compared to its industry's average Forward P/E of 20.96.
Investors should also note that ABT has a PEG ratio of 3.87 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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