Can Abbott Laboratories (ABT) Deliver Resilient Returns in the Long Term?

Parnassus Investments, an investment management firm, released its “Parnassus Value Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on owning a concentrated portfolio of U.S. large-cap stocks. For the third quarter of 2025, the fund reported a net return of 7.46% outperforming its benchmark, the Russell 1000 Value Index, which returned 5.33% for the same period. During the quarter, the portfolio reduced its weight in the IT sector to increase holdings in the Health Care sector. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

In its third-quarter 2025 investor letter, Parnassus Value Equity Fund highlighted stocks such as Abbott Laboratories (NYSE:ABT). Abbott Laboratories (NYSE:ABT) is a leading manufacturer of health care products. The one-month return of Abbott Laboratories (NYSE:ABT) was -1.09%, and its shares gained 10.93% of their value over the last 52 weeks. On December 17, 2025, Abbott Laboratories (NYSE:ABT) stock closed at $126.71 per share, with a market capitalization of $220.534 billion.

Parnassus Value Equity Fund stated the following regarding Abbott Laboratories (NYSE:ABT) in its third quarter 2025 investor letter:

"Abbott Laboratories (NYSE:ABT) stands out for its durable growth potential driven by steady demand in areas like diabetes care, heart health and electrophysiology, all supported by ongoing innovation and new product launches. We also believe Abbott’s diversified business model, global reach and leadership positions in key markets can provide resilient returns for long-term investors."

Abbott Laboratories (NYSE:ABT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Abbott Laboratories (NYSE:ABT) at the end of the third quarter, which was 69 in the previous quarter. While we acknowledge the potential of Abbott Laboratories (NYSE:ABT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Abbott Laboratories (NYSE:ABT) and shared the list of best slow growth stocks to invest in. Abbott Laboratories (NYSE:ABT) detracted from Carillon Eagle Growth & Income Fund's performance in Q3 2025 due to weak quarterly earnings and reduced financial guidance. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.