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Abbott (ABT) Gains But Lags Market: What You Should Know

Abbott (ABT) closed the most recent trading day at $90.76, moving +1.43% from the previous trading session. This move lagged the S&P 500's daily gain of 1.48%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 0.77%.

Investors will be hoping for strength from ABT as it approaches its next earnings release. In that report, analysts expect ABT to post earnings of $0.41 per share. This would mark a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.76 billion, down 15.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $31.22 billion. These totals would mark changes of -13.27% and -2.16%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ABT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ABT is currently a Zacks Rank #4 (Sell).

Investors should also note ABT's current valuation metrics, including its Forward P/E ratio of 31.82. This represents a discount compared to its industry's average Forward P/E of 35.73.

We can also see that ABT currently has a PEG ratio of 3.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABT's industry had an average PEG ratio of 4.58 as of yesterday's close.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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