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Abbott (ABT) Increases Despite Market Slip: Here's What You Need to Know

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The most recent trading session ended with Abbott (ABT - Free Report) standing at $114.66, reflecting a +1.23% shift from the previouse trading day's closing. This change outpaced the S&P 500's 2.12% loss on the day. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 3.26%.

Heading into today, shares of the maker of infant formula, medical devices and drugs had gained 4.27% over the past month, lagging the Medical sector's gain of 5.45% and the S&P 500's gain of 5.78% in that time.

Investors will be eagerly watching for the performance of Abbott in its upcoming earnings disclosure. On that day, Abbott is projected to report earnings of $1.20 per share, which would represent year-over-year growth of 5.26%. Simultaneously, our latest consensus estimate expects the revenue to be $10.52 billion, showing a 3.75% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $41.73 billion, representing changes of +4.95% and +4.05%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Abbott. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Abbott is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Abbott is currently exchanging hands at a Forward P/E ratio of 24.3. This represents a discount compared to its industry's average Forward P/E of 24.36.

Investors should also note that ABT has a PEG ratio of 2.82 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. The Medical - Products was holding an average PEG ratio of 2.11 at yesterday's closing price.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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