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Here's Why Abbott (ABT) Fell More Than Broader Market
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Abbott (ABT - Free Report) closed at $105.52 in the latest trading session, marking a -2.59% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
The maker of infant formula, medical devices and drugs's stock has dropped by 0.27% in the past month, falling short of the Medical sector's gain of 2.73% and outpacing the S&P 500's loss of 0.36%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.43, marking a 10% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.91 billion, showing a 13.52% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.52 per share and a revenue of $50.32 billion, signifying shifts of +7.18% and +13.51%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Abbott holds a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 19.62. For comparison, its industry has an average Forward P/E of 20.55, which means Abbott is trading at a discount to the group.
One should further note that ABT currently holds a PEG ratio of 2.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ABT's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Here's Why Abbott (ABT) Fell More Than Broader Market
Abbott (ABT - Free Report) closed at $105.52 in the latest trading session, marking a -2.59% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
The maker of infant formula, medical devices and drugs's stock has dropped by 0.27% in the past month, falling short of the Medical sector's gain of 2.73% and outpacing the S&P 500's loss of 0.36%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.43, marking a 10% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.91 billion, showing a 13.52% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.52 per share and a revenue of $50.32 billion, signifying shifts of +7.18% and +13.51%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Abbott holds a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is presently being traded at a Forward P/E ratio of 19.62. For comparison, its industry has an average Forward P/E of 20.55, which means Abbott is trading at a discount to the group.
One should further note that ABT currently holds a PEG ratio of 2.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ABT's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.