In the latest trading session, Abbott (ABT) closed at $133.89, marking a -1.47% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 3.27% in the past month. In that same time, the Medical sector lost 0.33%, while the S&P 500 gained 3.08%.
Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.3, showcasing a 7.44% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $11.42 billion, reflecting a 7.4% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.15 per share and revenue of $44.68 billion, which would represent changes of +10.28% and +6.5%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Abbott is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Abbott is currently exchanging hands at a Forward P/E ratio of 26.4. This denotes a premium relative to the industry average Forward P/E of 18.45.
We can additionally observe that ABT currently boasts a PEG ratio of 2.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Abbott Laboratories (ABT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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