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Abbott (ABT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Abbott (ABT - Free Report) closed at $139.04, marking a -1.21% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 8.04% in the past month. In that same time, the Medical sector gained 5.28%, while the S&P 500 gained 4.56%.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $0.94 per share, which would represent a year-over-year decline of 35.17%. Meanwhile, our latest consensus estimate is calling for revenue of $10.42 billion, down 2.59% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Abbott is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 27.85 right now. Its industry sports an average Forward P/E of 26.02, so we one might conclude that Abbott is trading at a premium comparatively.
It is also worth noting that ABT currently has a PEG ratio of 2.32. 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. The Medical - Products industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% 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.
View the Zacks #1 Rank List
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Abbott (ABT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Abbott (ABT - Free Report) closed at $139.04, marking a -1.21% move from the previous day. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 8.04% in the past month. In that same time, the Medical sector gained 5.28%, while the S&P 500 gained 4.56%.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $0.94 per share, which would represent a year-over-year decline of 35.17%. Meanwhile, our latest consensus estimate is calling for revenue of $10.42 billion, down 2.59% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Abbott is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 27.85 right now. Its industry sports an average Forward P/E of 26.02, so we one might conclude that Abbott is trading at a premium comparatively.
It is also worth noting that ABT currently has a PEG ratio of 2.32. 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. The Medical - Products industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% 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.