Back to top

Image: Bigstock

Abbott (ABT) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

In the latest trading session, Abbott (ABT - Free Report) closed at $132.02, marking a -1.18% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.09% lagged the Medical sector's loss of 0.32% and the S&P 500's gain of 4.07%.

The investment community will be paying close attention to the earnings performance of Abbott in its upcoming release. The company is slated to reveal its earnings on July 17, 2025. The company is predicted to post an EPS of $1.25, indicating a 9.65% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.07 billion, indicating a 6.7% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $44.7 billion. These totals would mark changes of +10.49% and +6.56%, respectively, from last 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.02% upward. As of now, Abbott holds a Zacks Rank of #2 (Buy).

In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 25.91. This represents a premium compared to its industry average Forward P/E of 20.14.

One should further note that ABT currently holds a PEG ratio of 2.54. 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. ABT's industry had an average PEG ratio of 2.29 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Abbott Laboratories (ABT) - free report >>

Published in