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Abbott (ABT) Stock Sinks As Market Gains: Here's Why

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In the latest close session, Abbott (ABT - Free Report) was down 1.02% at $124.64. The stock trailed the S&P 500, which registered a daily gain of 0.16%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.26%.

Heading into today, shares of the maker of infant formula, medical devices and drugs had gained 0.37% over the past month, lagging the Medical sector's gain of 2.84% and the S&P 500's gain of 1.89%.

The upcoming earnings release of Abbott will be of great interest to investors. The company's earnings report is expected on January 22, 2026. It is anticipated that the company will report an EPS of $1.5, marking a 11.94% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.79 billion, indicating a 7.48% 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 $5.15 per share and revenue of $44.6 billion. These totals would mark changes of +10.28% and 0%, respectively, from last year.

Any recent changes to analyst estimates for Abbott should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Abbott is currently a Zacks Rank #4 (Sell).

In the context of valuation, Abbott is at present trading with a Forward P/E ratio of 22.23. Its industry sports an average Forward P/E of 20.42, so one might conclude that Abbott is trading at a premium comparatively.

It's also important to note that ABT currently trades at a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 1.75.

The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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