
NYSE:ABT
This summary was created by AI, based on 17 opinions in the last 12 months.
Abbott Labs (ABT) has faced a challenging year marked by a significant share price decline of approximately 30%. Analysts note that the company's ability to deliver on its earnings growth target is critical amid increasing competition and recent struggles. Despite these setbacks, several experts maintain a long-term bullish outlook on the company's growth potential, particularly after recent acquisitions that could enhance its position in the oncology space. While the stock is currently priced below its historical valuation, analysts remain cautious due to recent technical breakdowns in its stock chart and ongoing challenges. The company is expected to report quarterly results soon, prompting a wait-and-see approach from some investors, although there is optimism about future growth driven by a stable market for medical devices and diagnostics.
Defensive. Very strong growth platform. Diagnostic business is right-sizing now, but organic growth of other businesses is double digits. Valuation is a bit more expensive at 23x earnings, but free cashflow yield is about 4%.
Instead of innovation, they tend to acquire and enhance, which has been a knock against them. Big wins in cardiac portfolio and FreeStyle Libre glucose monitoring. Businesses are right in the sweet spot. Yield is 1.83%.
They made the Covid testing kits which generated $20 billion in revenues, so shares got ahead of itself. The market has ignored any such companies since then, but these earnings will eventually work their way up again. ABT has given guidance ex-Covid tests, meaning double-digit organic growth. This is a long-time core holding. They're in medtech and medical procedures are ramping up (a tailwind). Pays a constant and long-growing dividend now around 2.5%. She likes healthcare as a play on the aging population.
They beat their quarter due to their medical devices business