In the latest trading session, Abbott (ABT) closed at $80.52, marking a -1.91% move from the previous day. This move was narrower than the S&P 500's daily loss of 3.39%. Elsewhere, the Dow lost 3.58%, while the tech-heavy Nasdaq lost 3.1%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 8.34% over the past month. This has lagged the Medical sector's loss of 1.65% and the S&P 500's loss of 4.8% in that time.
ABT will be looking to display strength as it nears its next earnings release. On that day, ABT is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $7.98 billion, up 5.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $33.67 billion, which would represent changes of +11.11% and +5.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ABT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABT is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ABT currently has a Forward P/E ratio of 22.82. For comparison, its industry has an average Forward P/E of 25.62, which means ABT is trading at a discount to the group.
Also, we should mention that ABT has a PEG ratio of 2.16. 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. ABT's industry had an average PEG ratio of 2.82 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Abbott Laboratories (NYSE:ABT
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