The outlook and technical action suggest Abbott Laboratories (NYSE: ABT) will lead healthcare names like Johnson & Johnson (NYSE: JNJ) higher in 2025. While each produced a solid quarter, Abbott Laboratories outperformed and has a more robust outlook. The outlook is for Abbott’s growth to be sustained above Q4’s 7.2% pace in 2025, with growth accelerating YOY and margin widening. Johnson & Johnson’s results will be sluggish in comparison.
The analysts' reaction to the Q4 results highlights the potential for outperformance. Abbott analysts are raising price targets and firming sentiment, while JNJ’s do the opposite. The takeaway is that JNJ stock has headwinds and ABT tailwinds to increase its share price. The consensus in mid-January implies a 10% upside in 2025, while revisions suggest a move to the high-end range is likely, adding another 12.5% to the forecast.
