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Why Abbott (ABT) Dipped More Than Broader Market Today
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Abbott (ABT - Free Report) closed the most recent trading day at $118.48, moving -1.3% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.02%. At the same time, the Dow lost 1.04%, and the tech-heavy Nasdaq lost 1.65%.
The the stock of maker of infant formula, medical devices and drugs has risen by 7.51% in the past month, leading the Medical sector's gain of 4.07% and the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Abbott in its upcoming release. It is anticipated that the company will report an EPS of $0.96, marking a 6.8% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.85 billion, showing a 1.02% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.62 per share and a revenue of $41.9 billion, representing changes of +4.05% and +4.47%, respectively, from the prior year.
Investors might also notice 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Currently, Abbott is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Abbott is presently trading at a Forward P/E ratio of 26. This valuation marks a premium compared to its industry's average Forward P/E of 20.84.
It's also important to note that ABT currently trades at a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ABT's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Why Abbott (ABT) Dipped More Than Broader Market Today
Abbott (ABT - Free Report) closed the most recent trading day at $118.48, moving -1.3% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.02%. At the same time, the Dow lost 1.04%, and the tech-heavy Nasdaq lost 1.65%.
The the stock of maker of infant formula, medical devices and drugs has risen by 7.51% in the past month, leading the Medical sector's gain of 4.07% and the S&P 500's gain of 3.64%.
The investment community will be paying close attention to the earnings performance of Abbott in its upcoming release. It is anticipated that the company will report an EPS of $0.96, marking a 6.8% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.85 billion, showing a 1.02% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.62 per share and a revenue of $41.9 billion, representing changes of +4.05% and +4.47%, respectively, from the prior year.
Investors might also notice 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Currently, Abbott is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Abbott is presently trading at a Forward P/E ratio of 26. This valuation marks a premium compared to its industry's average Forward P/E of 20.84.
It's also important to note that ABT currently trades at a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ABT's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.