Abbott (ABT) Stock Drops Despite Market Gains: Important Facts to Note
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Abbott (ABT) closed the latest trading day at $132.96, indicating a -0.56% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.32%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 0.49% over the past month. This has outpaced the Medical sector's loss of 2.72% and lagged the S&P 500's gain of 5.2% in that time.
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Analysts and investors alike will be keeping a close eye on the performance of Abbott in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.25, showcasing a 9.65% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.04 billion, up 6.38% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.16 per share and a revenue of $44.66 billion, signifying shifts of +10.49% and +6.47%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Abbott. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Abbott presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 25.93 right now. This expresses a premium compared to the average Forward P/E of 18.18 of its industry.
One should further note that ABT currently holds a PEG ratio of 2.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.