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Abbott Laboratories (ABT), with a market cap of $197.1 billion, is a North Chicago-based company that delivers innovative medical devices and healthcare solutions. It operates across four key segments: Established Pharmaceuticals, Diagnostics, Nutrition, and Medical Devices.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Abbott fits this criterion perfectly, exceeding the mark. Its strengths lie in its global presence, operating in over 160 countries with 60% of sales outside the U.S., and its diverse product portfolio, which includes medical devices and nutritional products, ensuring multiple revenue streams and reduced risk.
Despite the strengths, Abbott is down almost 6.9% from its 52-week high of $121.64, achieved on Mar. 8. Shares of ABT are up 11.3% over the past three months, surpassing the S&P 500 Index’s ($SPX) 7.9% gain during the same time frame.
However, over the longer term, ABT stock is up 2.9% on a YTD basis, lagging behind SPX's 18.4% gains. Moreover, shares of Abbott have gained 9.1% over the past 52 weeks, compared to SPX’s 25.6% over the same time frame.
On the bright side, ABT has been trading above its 50-day moving average since late July and over its 200-day moving average since early August, indicating a bullish price trend.
On July 18, Abbott's stock dropped over 4% after the release of its Q2 earnings report despite raising its full-year profit forecast. The company’s adjusted EPS increased 5.6% to $1.14, with revenue up 4%, amounting to $10.38 billion. Abbott projects fiscal Q3 adjusted EPS between $1.18 and $1.22 and revised its full-year guidance between $4.61 and $4.71.
Nevertheless, top rival Medtronic plc (MDT) is underperforming – not just ABT but the broader equity benchmarks over the past year. MDT has rallied 7.9% over the past 52 weeks.
Analysts are bullish about Abbott’s prospects as the stock has a consensus rating of "Strong Buy" from the 21 analysts in coverage, and the mean price target of $125.26 is a premium of 10.6% to current price levels.
On the date of publication, Kritika Sarmah 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.
