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Abbott (ABT) Gains But Lags Market: What You Should Know
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In the latest market close, Abbott (ABT - Free Report) reached $127.42, with a +0.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 1.41%.
The maker of infant formula, medical devices and drugs's stock has dropped by 2.98% in the past month, falling short of the Medical sector's gain of 0.21% and outpacing the S&P 500's loss of 8.26%.
Market participants will be closely following the financial results of Abbott in its upcoming release. The company's earnings per share (EPS) are projected to be $1.07, reflecting a 9.18% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.39 billion, up 4.28% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.15 per share and a revenue of $44.35 billion, signifying shifts of +10.28% and +5.73%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Abbott is presently trading at a Forward P/E ratio of 24.55. This expresses a premium compared to the average Forward P/E of 18.29 of its industry.
It is also worth noting that ABT currently has a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 2.13.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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Abbott (ABT) Gains But Lags Market: What You Should Know
In the latest market close, Abbott (ABT - Free Report) reached $127.42, with a +0.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 1.41%.
The maker of infant formula, medical devices and drugs's stock has dropped by 2.98% in the past month, falling short of the Medical sector's gain of 0.21% and outpacing the S&P 500's loss of 8.26%.
Market participants will be closely following the financial results of Abbott in its upcoming release. The company's earnings per share (EPS) are projected to be $1.07, reflecting a 9.18% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.39 billion, up 4.28% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.15 per share and a revenue of $44.35 billion, signifying shifts of +10.28% and +5.73%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Abbott is presently trading at a Forward P/E ratio of 24.55. This expresses a premium compared to the average Forward P/E of 18.29 of its industry.
It is also worth noting that ABT currently has a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 2.13.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.