
NYSE:ABT
This summary was created by AI, based on 16 opinions in the last 12 months.
Abbott Labs (ABT) has faced a challenging year, suffering a decline of around 30% amidst lowered guidance and increased competition. Despite this, several experts remain optimistic about its long-term growth potential, particularly in the diagnostics and devices sectors. The company has a robust pipeline, including a recent acquisition in cancer treatment that may bolster future growth, although it won’t be accretive for a few years. Analysts note a decline in its price-to-earnings (PE) ratio, making it more attractive compared to historical levels, and highlight its stable dividend yield. However, concerns remain over recent market performance, with some experts advising caution amid negative technical signals and broader healthcare sector struggles.
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