We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abbott (ABT) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Abbott (ABT - Free Report) closed at $74.05 in the latest trading session, marking a +1.08% move from the prior day. This change outpaced the S&P 500's 0.82% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.79%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 4.43% over the past month. This has lagged the Medical sector's gain of 5.35% and outpaced the S&P 500's gain of 3.94% in that time.
ABT will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. On that day, ABT is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 9.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.79 billion, up 2.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $30.61 billion, which would represent changes of +15.2% and +11.74%, respectively, from the prior year.
Any recent changes to analyst estimates for ABT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. ABT currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ABT has a Forward P/E ratio of 25.42 right now. For comparison, its industry has an average Forward P/E of 25.19, which means ABT is trading at a premium to the group.
It is also worth noting that ABT currently has a PEG ratio of 2.18. 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 Medical - Products was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Abbott (ABT) Outpaces Stock Market Gains: What You Should Know
Abbott (ABT - Free Report) closed at $74.05 in the latest trading session, marking a +1.08% move from the prior day. This change outpaced the S&P 500's 0.82% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.79%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 4.43% over the past month. This has lagged the Medical sector's gain of 5.35% and outpaced the S&P 500's gain of 3.94% in that time.
ABT will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. On that day, ABT is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 9.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.79 billion, up 2.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $30.61 billion, which would represent changes of +15.2% and +11.74%, respectively, from the prior year.
Any recent changes to analyst estimates for ABT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. ABT currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ABT has a Forward P/E ratio of 25.42 right now. For comparison, its industry has an average Forward P/E of 25.19, which means ABT is trading at a premium to the group.
It is also worth noting that ABT currently has a PEG ratio of 2.18. 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 Medical - Products was holding an average PEG ratio of 2.33 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.