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Abbott (ABT) Outpaces Stock Market Gains: What You Should Know
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Abbott (ABT - Free Report) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.83% over the past month. This has lagged the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. In that report, analysts expect Abbott to post earnings of $1.48 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.76 billion, up 2.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $40.56 billion. These totals would mark changes of -7.68% and -5.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.35% higher. Abbott is currently a Zacks Rank #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.75. This valuation marks a premium compared to its industry's average Forward P/E of 23.93.
Meanwhile, ABT's PEG ratio is currently 3.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Abbott (ABT) Outpaces Stock Market Gains: What You Should Know
Abbott (ABT - Free Report) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.83% over the past month. This has lagged the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. In that report, analysts expect Abbott to post earnings of $1.48 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.76 billion, up 2.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $40.56 billion. These totals would mark changes of -7.68% and -5.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.35% higher. Abbott is currently a Zacks Rank #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.75. This valuation marks a premium compared to its industry's average Forward P/E of 23.93.
Meanwhile, ABT's PEG ratio is currently 3.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.