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Abbott (ABT) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw Abbott (ABT - Free Report) ending at $118.77, denoting a -0.15% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.56% for the day. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.83%.

Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 4.92% in the past month. In that same time, the Medical sector lost 2.27%, while the S&P 500 gained 3.11%.

Investors will be eagerly watching for the performance of Abbott in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.34, showcasing a 12.61% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $11.03 billion, up 7.71% from the prior-year quarter.

ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.67 per share and revenue of $42.01 billion. These results would represent year-over-year changes of +5.18% and +4.73%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abbott. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently a Zacks Rank #3 (Hold).

In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 25.47. This signifies a discount in comparison to the average Forward P/E of 26.43 for its industry.

Investors should also note that ABT has a PEG ratio of 2.8 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Products industry stood at 2.37 at the close of the market yesterday.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 123, placing it within the top 49% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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