Back to top

Image: Bigstock

Abbott (ABT) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Abbott (ABT - Free Report) closed at $84.51 in the latest trading session, marking a -1.1% move from the prior day. This move lagged the S&P 500's daily loss of 0.86%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.13%.

Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 2.2% over the past month. This has lagged the Medical sector's gain of 6.39% and the S&P 500's gain of 3.66% in that time.

Wall Street will be looking for positivity from ABT as it approaches its next earnings report date. In that report, analysts expect ABT to post earnings of $0.95 per share. This would mark year-over-year growth of 17.28%. Our most recent consensus estimate is calling for quarterly revenue of $8.26 billion, up 6.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $31.88 billion. These totals would mark changes of +12.5% and +4.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ABT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. ABT is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ABT is currently trading at a Forward P/E ratio of 26.34. This represents a discount compared to its industry's average Forward P/E of 26.37.

We can also see that ABT currently has a PEG ratio of 2.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 2.7 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Abbott Laboratories (ABT) - free report >>

Published in