In the latest close session, Abbott (ABT) was up +1.41% at $110.47. This move outpaced the S&P 500’s daily gain of 0.46%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.45%.
The maker of infant formula, medical devices and drugs’s shares have seen an increase of 3.29% over the last month, not keeping up with the Medical sector’s gain of 4.16% and outstripping the S&P 500’s gain of 2%.
The upcoming earnings release of Abbott will be of great interest to investors. In that report, analysts expect Abbott to post earnings of $1.43 per share. This would mark year-over-year growth of 10%. At the same time, our most recent consensus estimate is projecting a revenue of $12.91 billion, reflecting a 13.52% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.52 per share and revenue of $50.32 billion. These totals would mark changes of +7.18% and +13.51%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Abbott. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Right now, Abbott possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Abbott is at present trading with a Forward P/E ratio of 19.73. This signifies a discount in comparison to the average Forward P/E of 21.18 for its industry.
One should further note that ABT currently holds a PEG ratio of 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Medical – Products industry was having an average PEG ratio of 1.88.
The Medical – Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
