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Here's Why You Should Add Abbott (ABT) to Your Portfolio Now
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Abbott (ABT - Free Report) has been gaining investors’ confidence on consistently positive results. Over the past six months, the company’s share price has outperformed its industry. The stock has gained 7.1%, compared to the industry’s 5.3%. The company has also fared better than the 0.3% decline of the S&P 500 market.
This leading developer, manufacturer and seller of a diversified line of health care products has a market cap of $113.52 billion. The company’s projected earnings growth rate for the current year is also favorable at 14.4% compared with the industry’s 10.1%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s earnings estimate revision trend for the current year has been positive. In the past 60 days, one analyst revised the estimates upward, with no movement in the opposite direction. Resultantly, earnings estimates remained steady at $2.86 per share.
Further, the Zacks Consensus Estimate for current-year revenues of $30.96 billion reflects an improvement of 13.1% year over year.
Per our Zacks Style Score system, Abbott has a Growth Score of A which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Solid EPD Business
Abbott’s EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America.
The company recently noted that, banking on successful execution of its Branded Generic operating model, EPD is well positioned for sustained above-market growth in many of these growing pharmaceutical markets. Particularly, India, China, and Latin America have demonstrated double-digit growth of late.
Impressive Synergies From Alere Buyout
The integration of Alere has added Rapid Diagnostics to the company’s existing leadership position in the $50-billion global diagnostics market. Alere’s complementary portfolio of diagnostic products, comprising tests for infections such as HIV, tuberculosis, malaria and dengue will be added to Abbott’s portfolio.
Over the past few months, Abbott has made good progress integrating this business and continues to see several factors for growth acceleration, including opportunities for geographic, platform and test menu expansion.
Rapid Diagnostics registered sales of nearly $484 million in the second quarter on strong infectious disease and cardiometabolic testing. Abbott continues to expect sales from this segment to exceed $2 billion by the end of 2018.
Strengthening Diabetes Business
There have been a slew of developments within the Diabetics business. We are upbeat about Abbott’s FreeStyle Libre Flash Glucose Monitoring System’s recent reimbursement approval in the United States and the United Kingdom. Plus, the company announced receipt of Health Canada License and Japanese national reimbursement for the same. With these positives in place, Abbott’s FreeStyle Libre system stands partially or fully covered in 21 countries.
Notably, all these developments are expected to drive the company’s traction in the Diabetes Care segment, which saw significant sales growth in the last reported quarter on continued consumer acceptance of FreeStyle Libre internationally.
Other Key Picks
Other top-ranked stocks in the broader medical space are Genomic Health , Align Technology, Inc. (ALGN - Free Report) and Baxter International Inc. (BAX - Free Report) .
Align Technology has a projected long-term earnings growth rate of 28.4% and a Zacks Rank of 1.
Baxter has a projected long-term earnings growth rate of 13.4%. The stock carries a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Here's Why You Should Add Abbott (ABT) to Your Portfolio Now
Abbott (ABT - Free Report) has been gaining investors’ confidence on consistently positive results. Over the past six months, the company’s share price has outperformed its industry. The stock has gained 7.1%, compared to the industry’s 5.3%. The company has also fared better than the 0.3% decline of the S&P 500 market.
This leading developer, manufacturer and seller of a diversified line of health care products has a market cap of $113.52 billion. The company’s projected earnings growth rate for the current year is also favorable at 14.4% compared with the industry’s 10.1%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s earnings estimate revision trend for the current year has been positive. In the past 60 days, one analyst revised the estimates upward, with no movement in the opposite direction. Resultantly, earnings estimates remained steady at $2.86 per share.
Further, the Zacks Consensus Estimate for current-year revenues of $30.96 billion reflects an improvement of 13.1% year over year.
Per our Zacks Style Score system, Abbott has a Growth Score of A which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Solid EPD Business
Abbott’s EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America.
The company recently noted that, banking on successful execution of its Branded Generic operating model, EPD is well positioned for sustained above-market growth in many of these growing pharmaceutical markets. Particularly, India, China, and Latin America have demonstrated double-digit growth of late.
Impressive Synergies From Alere Buyout
The integration of Alere has added Rapid Diagnostics to the company’s existing leadership position in the $50-billion global diagnostics market. Alere’s complementary portfolio of diagnostic products, comprising tests for infections such as HIV, tuberculosis, malaria and dengue will be added to Abbott’s portfolio.
Over the past few months, Abbott has made good progress integrating this business and continues to see several factors for growth acceleration, including opportunities for geographic, platform and test menu expansion.
Rapid Diagnostics registered sales of nearly $484 million in the second quarter on strong infectious disease and cardiometabolic testing. Abbott continues to expect sales from this segment to exceed $2 billion by the end of 2018.
Strengthening Diabetes Business
There have been a slew of developments within the Diabetics business. We are upbeat about Abbott’s FreeStyle Libre Flash Glucose Monitoring System’s recent reimbursement approval in the United States and the United Kingdom. Plus, the company announced receipt of Health Canada License and Japanese national reimbursement for the same. With these positives in place, Abbott’s FreeStyle Libre system stands partially or fully covered in 21 countries.
Notably, all these developments are expected to drive the company’s traction in the Diabetes Care segment, which saw significant sales growth in the last reported quarter on continued consumer acceptance of FreeStyle Libre internationally.
Other Key Picks
Other top-ranked stocks in the broader medical space are Genomic Health , Align Technology, Inc. (ALGN - Free Report) and Baxter International Inc. (BAX - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a projected long-term earnings growth rate of 28.4% and a Zacks Rank of 1.
Baxter has a projected long-term earnings growth rate of 13.4%. The stock carries a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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