Abbott (ABT) closed the most recent trading day at $85.68, moving -1.14% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 7.66% lagged the Medical sector's gain of 2.02% and the S&P 500's gain of 5.12%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company is predicted to post an EPS of $1.28, indicating a 1.59% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.53 billion, reflecting a 12.43% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.48 per share and revenue of $50.49 billion, indicating changes of +6.41% and +13.9%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% lower. Abbott is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 15.82 right now. This valuation marks a discount compared to its industry average Forward P/E of 18.69.
We can also see that ABT currently has a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ABT's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).