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Abbott (ABT) Ascends But Remains Behind Market: Some Facts to Note

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Abbott (ABT - Free Report) closed the latest trading day at $114.02, indicating a +0.08% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.

The the stock of maker of infant formula, medical devices and drugs has risen by 6.08% in the past month, leading the Medical sector's gain of 3.45% and the S&P 500's gain of 0.64%.

Market participants will be closely following the financial results of Abbott in its upcoming release. The company plans to announce its earnings on January 24, 2024. The company's upcoming EPS is projected at $1.19, signifying a 15.53% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $10.14 billion, up 0.49% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abbott. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Abbott currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 24.68. Its industry sports an average Forward P/E of 20.68, so one might conclude that Abbott is trading at a premium comparatively.

It is also worth noting that ABT currently has a PEG ratio of 2.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Products stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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