Abbott (ABT) ended the recent trading session at $115.29, demonstrating a +2.74% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.04%. Meanwhile, the Dow lost 1.66%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Shares of the maker of infant formula, medical devices and drugs witnessed a gain of 4.46% over the previous month, beating the performance of the Medical sector with its gain of 0.7%, and the S&P 500's gain of 1.75%.
Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is expected to report EPS of $1.15, up 5.5% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.03 billion, indicating a 6.53% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.68 per share and revenue of $47.73 billion. These totals would mark changes of +10.29% and +7.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Abbott. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Right now, Abbott possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 19.76. For comparison, its industry has an average Forward P/E of 20.25, which means Abbott is trading at a discount to the group.
We can also see that ABT currently has a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.79.
The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 140, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
