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Abbott (ABT) Ascends But Remains Behind Market: Some Facts to Note

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In the latest trading session, Abbott (ABT - Free Report) closed at $120.76, marking a +0.47% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.54%.

Shares of the maker of infant formula, medical devices and drugs witnessed a gain of 6.81% over the previous month, beating the performance of the Medical sector with its gain of 2.49% and the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Abbott in its upcoming release. On that day, Abbott is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 6.8%. In the meantime, our current consensus estimate forecasts the revenue to be $9.85 billion, indicating a 1.02% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.62 per share and revenue of $41.9 billion, which would represent changes of +4.05% and +4.47%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Abbott is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Abbott currently has a Forward P/E ratio of 26.03. This represents a premium compared to its industry's average Forward P/E of 20.84.

Investors should also note that ABT has a PEG ratio of 2.89 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ABT's industry had an average PEG ratio of 2.53 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 161, placing it within the bottom 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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