Abbott (ABT) ended the latest trading session at $112.90, moving -0.18% from the previous day’s close. The stock outperformed the S&P 500, which saw a daily loss of 0.6%. Meanwhile, the Dow lost 0.39% and the Nasdaq, a tech-heavy index, lost 1.12%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had gained 7.39% over the past month. During the same period, the medical sector gained 4.78%, while the S&P 500 gained 3.15%.
Analysts and investors will be closely monitoring Abbott’s performance on its upcoming earnings release. The company is expected to report earnings per share of $1.20, up 5.26% from the corresponding quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.52 billion, up 3.75% from the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $41.73 billion, representing changes of +4.95% and +4.05%, respectively, from the prior year.
Investors should also pay attention to recent changes in analyst estimates for Abbott. These recent changes typically reflect the evolving nature of near-term business trends. Consequently, upward revisions to estimates express analysts’ positive view of the company’s business and its ability to generate earnings.
Based on our research, we believe these estimate changes are directly related to stock moves in nearby teams. To capitalize on this, we have developed the Zacks Rank, a unique model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable outside-audited track record of success. #1 stocks have delivered an average annual gain of +25% since 1988. Over the past 30 days, the Zacks Consensus Estimate for earnings per share remained unchanged. Currently, Abbott holds a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a P/E ratio of 24.26, which represents a discount to the industry’s average P/E ratio of 24.58.
We can also note that ABT currently has a PEG ratio of 2.81. The PEG ratio is similar to the commonly used P/E ratio, but it also takes into account the company’s expected earnings growth rate. When the market closed yesterday, the Medical Devices industry had an average PEG ratio of 2.36.
The Medical Devices industry is part of the Medical sector. This industry, which currently has a Zacks Industry Rank of 98, ranks in the top 39% 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% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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