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Abbott (ABT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Abbott (ABT - Free Report) closed at $89.02, marking a +1.41% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.31%. Elsewhere, the Dow gained 1.9%, while the tech-heavy Nasdaq added 1.01%.

ABT will be looking to display strength as it nears its next earnings release. On that day, ABT is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 50%. Our most recent consensus estimate is calling for quarterly revenue of $6.76 billion, down 15.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $31.22 billion, which would represent changes of -13.27% and -2.16%, respectively, from the prior year.

Any recent changes to analyst estimates for ABT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. ABT is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note ABT's current valuation metrics, including its Forward P/E ratio of 31.22. Its industry sports an average Forward P/E of 34.22, so we one might conclude that ABT is trading at a discount comparatively.

Meanwhile, ABT's PEG ratio is currently 3.64. 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. ABT's industry had an average PEG ratio of 4.62 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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