In the latest close session, Abbott (ABT) was down 1.19% at $134.01. This move lagged the S&P 500's daily gain of 0.94%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.52%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 0.61% lagged the Medical sector's gain of 4.95% and the S&P 500's gain of 1.67%.
Investors will be eagerly watching for the performance of Abbott in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.25, showcasing a 9.65% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.04 billion, showing a 6.38% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.16 per share and a revenue of $44.66 billion, signifying shifts of +10.49% and +6.47%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Abbott possesses a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 26.3. This expresses a premium compared to the average Forward P/E of 18.54 of its industry.
Investors should also note that ABT has a PEG ratio of 2.56 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.25.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
