Abbott (ABT) ended the recent trading session at $128.47, demonstrating a +2.4% change from the preceding day's closing price. This change outpaced the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.59%.
Shares of the maker of infant formula, medical devices and drugs witnessed a loss of 3.93% over the previous month, trailing the performance of the Medical sector with its gain of 1.12%, and the S&P 500's loss of 0.21%.
Market participants will be closely following the financial results of Abbott in its upcoming release. The company's upcoming EPS is projected at $1.5, signifying a 11.94% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $11.79 billion, indicating a 7.48% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.15 per share and a revenue of $44.6 billion, representing changes of +10.28% and +6.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Abbott. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0% lower. At present, Abbott boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.37. This denotes a premium relative to the industry average Forward P/E of 19.3.
Investors should also note that ABT has a PEG ratio of 2.29 right now. 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. Medical - Products stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Abbott Laboratories (ABT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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