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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 2.2% at $111.59. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 1.57%.
Shares of the maker of infant formula, medical devices and drugs have appreciated by 5.65% over the course of the past month, underperforming the Medical sector's gain of 6.22%, and outperforming the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company is predicted to post an EPS of $1.43, indicating a 10% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.91 billion, up 13.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.52 per share and revenue of $50.18 billion, which would represent changes of +7.18% and +13.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Abbott holds a Zacks Rank of #3 (Hold).
In the context of valuation, Abbott is at present trading with a Forward P/E ratio of 20.66. This represents a discount compared to its industry average Forward P/E of 21.25.
Also, we should mention that ABT has a PEG ratio of 2.21. 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. The average PEG ratio for the Medical - Products industry stood at 2.12 at the close of the market yesterday.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
View the Zacks #1 Rank List
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Abbott (ABT) Stock Sinks As Market Gains: Here's Why
In the latest close session, Abbott (ABT - Free Report) was down 2.2% at $111.59. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 1.57%.
Shares of the maker of infant formula, medical devices and drugs have appreciated by 5.65% over the course of the past month, underperforming the Medical sector's gain of 6.22%, and outperforming the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company is predicted to post an EPS of $1.43, indicating a 10% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.91 billion, up 13.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.52 per share and revenue of $50.18 billion, which would represent changes of +7.18% and +13.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Abbott holds a Zacks Rank of #3 (Hold).
In the context of valuation, Abbott is at present trading with a Forward P/E ratio of 20.66. This represents a discount compared to its industry average Forward P/E of 21.25.
Also, we should mention that ABT has a PEG ratio of 2.21. 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. The average PEG ratio for the Medical - Products industry stood at 2.12 at the close of the market yesterday.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.