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Abbott (ABT) Gains But Lags Market: What You Should Know
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Abbott (ABT - Free Report) closed at $101.86 in the latest trading session, marking a +0.45% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 7.68% over the past month. This has lagged the Medical sector's loss of 1.27% and the S&P 500's gain of 5.41% 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 $1.05 per share. This would mark a year-over-year decline of 26.57%. Our most recent consensus estimate is calling for quarterly revenue of $9.67 billion, down 14.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.39 per share and revenue of $39.38 billion, which would represent changes of -17.79% and -9.79%, respectively, from the prior year.
It is also important to note the 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. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Abbott currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 23.12. Its industry sports an average Forward P/E of 23.59, so we one might conclude that Abbott is trading at a discount comparatively.
Meanwhile, ABT's PEG ratio is currently 4.54. 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 was holding an average PEG ratio of 2.51 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Abbott (ABT) Gains But Lags Market: What You Should Know
Abbott (ABT - Free Report) closed at $101.86 in the latest trading session, marking a +0.45% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 7.68% over the past month. This has lagged the Medical sector's loss of 1.27% and the S&P 500's gain of 5.41% 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 $1.05 per share. This would mark a year-over-year decline of 26.57%. Our most recent consensus estimate is calling for quarterly revenue of $9.67 billion, down 14.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.39 per share and revenue of $39.38 billion, which would represent changes of -17.79% and -9.79%, respectively, from the prior year.
It is also important to note the 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. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Abbott currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 23.12. Its industry sports an average Forward P/E of 23.59, so we one might conclude that Abbott is trading at a discount comparatively.
Meanwhile, ABT's PEG ratio is currently 4.54. 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 was holding an average PEG ratio of 2.51 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.