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North Chicago, Illinois-based Abbott Laboratories (ABT) discovers, develops, manufactures, and sells healthcare products. Valued at $229.1 billion by market cap, ABT is a global leader in the large and growing in-vitro diagnostic market and its products include pharmaceuticals, nutritional, diagnostics, and vascular products.
Shares of this medical device manufacturer have underperformed the broader market over the past year. ABT has gained 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. However, in 2025, ABT stock is up 13.4%, surpassing the SPX’s 3.4% rise on a YTD basis.
Zooming in further, ABT’s outperformance is apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 11.6% over the past year. Moreover, ABT’s double-digit gains on a YTD basis outshine the ETF’s 9.8% returns over the same time frame.
ABT is struggling due to industry challenges like margin pressure, labor shortages, supply chain disruptions, and technological advancements. Its COVID testing demand has declined, impacting sales in the diagnostics segment. Moreover, unfavorable foreign exchange rates and higher costs have also hurt performance.
On Jan. 22, ABT reported its Q4 results, and its shares closed up more than 4% in the following trading session. Its adjusted EPS of $1.34 met Wall Street expectations. The company’s revenue was $10.97 billion, missing Wall Street forecasts of $11.02 billion. ABT expects full-year adjusted EPS to be between $5.05 and $5.25.
For fiscal 2025, ending in December, analysts expect ABT’s EPS to grow 10.1% to $5.14 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 25 analysts covering ABT stock, the consensus is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is more bullish than a month ago, with 16 analysts suggesting a “Strong Buy.”
On Jan. 28, Argus analyst David Toung kept a “Buy” rating on ABT and raised the price target to $150, implying a potential upside of 17% from current levels.
The mean price target of $136.09 represents a 6.1% premium to ABT’s current price levels. The Street-high price target of $158 suggests an upside potential of 23.2%.
