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Illinois-based Abbott Laboratories (ABT) discovers, develops, manufactures, and sells healthcare products. Valued at $190.9 billion by market cap, ABT is a global leader in the large and growing in-vitro diagnostic market, and its products include pharmaceuticals, nutritional, diagnostics, and vascular products.
Shares of this medical device manufacturer have struggled to keep up with the broader market over the past year. ABT stock has gained 4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024, ABT stock is down marginally, while the SPX is up 11.5% on a YTD basis.
Narrowing the focus, ABT has also lagged behind the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 4.6% over the past year. Moreover, the ETF’s 3.6% gains on a YTD basis outshine the stock’s marginal losses over the same time frame.
On Jul. 29, ABT stock fell over 3% after it was ordered by a jury to pay about $500 million over allegations that it hid the risk that its premature-infant formula could cause a potentially fatal bowel disease.
Moreover, on Jul. 18, ABT stock closed down more than 4% after reporting its Q2 earnings results. Its adjusted EPS increased 5.6% year over year to $1.14. Its revenue stood at $10.38 billion, up 4% annually. For fiscal Q3, the company projects adjusted EPS to be between $1.18 and $1.22, and it raised its full-year adjusted EPS to $4.61 and $4.71.
For the current fiscal year, ending in December, analysts expect Abbott Laboratories’ EPS to grow 5% to $4.66 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the past four quarters. Moreover, the company surpassed its consensus EPS estimate by 3.6% in the previous quarter.
Among the 21 analysts covering ABT stock, the overall consensus is a “Strong Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
This configuration is slightly more bullish than three months ago, with 13 analysts rating the stock a “Strong Buy.”
On Aug. 8, Wells Fargo & Company (WFC) analyst Larry Biegelsen maintained a “Buy” rating on ABT, with a price target of $133.
The mean price target of $124.84 represents a 13.7% premium from ABT’s current price levels. The Street-high price target of $143 suggests an upside potential of 30.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
