The Panic-Proof Portfolio (Stockchase Research) Abbott Labs ABT-N TOP PICK May 31, 2022

Is one of the stars of the JPMorgan conference. Shares have been growing in a straight line with growth in medical devices and pharmaceuticals.

Is enjoying the rotation out of semis/tech stocks today, up 3.52%. It's been undervalued lately. Has more room to run; he expects the rotation to continue beyond today.

It is one of the more diversified lab equipment manufacturers. He really likes the medical part and sees growth there. Some of their components have slower growth.

He was looking at defensive healthcare names to avoid threat of tariffs. This is one name to consider, reasonable valuation but good growth profile.

It reports Wednesday. They will report on their strong franchises and their baby formula lawsuit which would have hurt their valuation for a long time. Not long ago, this was 14 points higher during that brutal, ridiculous rotation. These stocks are now all the way down.

They reported solid numbers today and considered raising their full-year forecast but then the tariffs hit, but maintained guidance, which is positive enough in this market. Shares jumped 2.76% today. A weaker USD helps too.

Their forward PE suggests an explosion, coming from their diabetes device, Libra. A fine CEO who will settle their lawsuits. Is up 17% this year.

In general, he's had almost no healthcare exposure for the last year. Relative price performance for the group has been weak. That said, he's seeing some improvement around the edges. 

He always looks for what's held up better than the rest, and this name would fit. Performed better than 78% of S&P stocks over the last 52 weeks. Technically, made a series of higher lows. More of its earnings estimates have moved higher than lower, so earnings momentum revision is decent. Hasn't technically broken out, so he's not there yet. If you own it, hold.

Is defensive and not a target like the pharmas. Abbott is in testing and diagnostics, a steady business reflected in their numbers.

It reports Thursday. Wait for the report first. They are always misinterpreted during earnings which annoys him. He likes ABT.