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Headquartered in North Chicago, Illinois, Abbott Laboratories (ABT) is a global leader in healthcare, specializing in discovering, developing, manufacturing, and distributing innovative medical solutions. Valued at $175.23 billion by market cap, Abbott is renowned for its pioneering diagnostic tools, transformative medical devices, and advanced nutritional offerings. ABT’s groundbreaking contributions include the FreeStyle Libre, a revolutionary continuous glucose monitoring system that has redefined diabetes management worldwide.
Abbott shares significantly underperformed the broader market over the past year. The stock has declined 2.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 25.2%. In 2024 alone, the stock has lost 8.5%, compared to SPX's 10.4% gains on a YTD basis.
Narrowing the focus, ABT’s underperformance is also evident compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained 4.3% over this period. Also, the ETF’s 2.5% returns on a YTD basis compare to the stock’s loss over the same time frame.
On Apr. 17, ABT reported its Q1 earnings, beating Wall Street’s expectations for revenue and EPS. The company raised the low end of its full-year earnings forecast. However, the stock declined more than 3% on the earnings release day.
For the current fiscal year, ending in December, analysts expect ABT’s EPS to grow 4.1% to $4.62 on a diluted basis. The company's earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 19 analysts covering ABT stock, the consensus rating is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is slightly more bullish than three months ago, with 12 suggesting a “Strong Buy.”
On May 20, Citi (C) analyst Joanne Wuensch maintained a “Buy” rating on Abbott Laboratories with a price target of $128.00, implying a potential upside of 27.1% from current levels.
The mean price target of $126.56 represents a 25.6% premium to ABT’s current price levels. The Street-high price target of $140 suggests an upside potential of 39%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
