Has excellent fundamentals across four businesses, including best-in-class medical devices renown in cardiology. However, they face lawsuits over their similac formula which studies show is not harmful. It's unfair. It lost a lawsuit last summer and was hit a $495 million penalty. More lawsuits are coming, though the latest decision yesterday went in Abbott's favour. Last month, federal agencies found that the formula is not at fault. Two weeks ago, ABT reported a clean top and bottom line beat and raised their full-year forecast. Shares would have rallied more without the lawsuits.
It reports Wednesday. Good risk/reward with shares rallying after an earnings beat but not declining much after a miss. They may buy Intel, which is rallying these days.