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Abbott (ABT) ended the recent trading session at $134.92, demonstrating a +1.31% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 2.2%.
The maker of infant formula, medical devices and drugs's stock has climbed by 8.07% in the past month, exceeding the Medical sector's gain of 5.02% and the S&P 500's gain of 2.2%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.07, marking a 9.18% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.39 billion, up 4.28% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.15 per share and a revenue of $44.35 billion, indicating changes of +10.28% and +5.73%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. At present, Abbott boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Abbott is currently being traded at a Forward P/E ratio of 25.88. This expresses a premium compared to the average Forward P/E of 20.03 of its industry.
We can also see that ABT currently has a PEG ratio of 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.22 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.