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Abbott (ABT) Laps the Stock Market: Here's Why

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Abbott (ABT - Free Report) closed at $134.59 in the latest trading session, marking a +1.2% move from the prior day. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.

Shares of the maker of infant formula, medical devices and drugs have appreciated by 0.14% over the course of the past month, underperforming the Medical sector's gain of 4.67%, and the S&P 500's gain of 4.83%.

Investors will be eagerly watching for the performance of Abbott in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 15, 2025. The company is predicted to post an EPS of $1.3, indicating a 7.44% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.42 billion, indicating a 7.4% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.15 per share and a revenue of $44.68 billion, signifying shifts of +10.28% and +6.5%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Abbott possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 25.83. This expresses a premium compared to the average Forward P/E of 18.31 of its industry.

Also, we should mention that ABT has a PEG ratio of 2.52. 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 average PEG ratio for the Medical - Products industry stood at 2.27 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 77, placing it within the top 32% 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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