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Abbott (ABT) Stock Sinks As Market Gains: What You Should Know

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Abbott (ABT - Free Report) closed the most recent trading day at $124.65, moving -0.38% from the previous trading session. This change lagged the S&P 500's 0.95% gain on the day.

Heading into today, shares of the maker of infant formula, medical devices and drugs had lost 0.29% over the past month, outpacing the Medical sector's loss of 1.9% and the S&P 500's loss of 1.87% in that time.

Wall Street will be looking for positivity from ABT as it approaches its next earnings report date. The company is expected to report EPS of $0.92, down 6.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.43 billion, up 6.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.42 per share and revenue of $39.79 billion, which would represent changes of +21.1% and +14.98%, respectively, from the prior year.

Any recent changes to analyst estimates for ABT should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. ABT is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ABT has a Forward P/E ratio of 28.34 right now. This valuation marks a discount compared to its industry's average Forward P/E of 28.53.

We can also see that ABT currently has a PEG ratio of 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% 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% 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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