Is It Too Late to Make Money on ABT Stocks This Fall?

NYSE: ABT | Abbott Laboratories News, Ratings, and Charts

ABT – Despite the uncertain macro environment, Abbott (ABT) increased its adjusted EPS guidance for 2022. Wall Street analysts expect it to rally more than 20% in the near term. However, the stock is down 30% year-to-date. So, let’s find out if it is the right time to invest in ABT….

Healthcare giant Abbott Laboratories (ABT) has increased its projected adjusted EPS from $5.17 to $5.23 for 2022. “Our results and increased guidance in the current macroeconomic environment reflect the strength of our diversified business model and execution,” Robert B. Ford, ABT’s Chairman and CEO, said.

He added, “We’re particularly pleased with improving sales growth rates in U.S. Medical Devices, which is being fueled by several recent product launches, as well as continued strong performance in Established Pharmaceuticals.”

Additionally, ABT has paid dividends for 33 consecutive years. Its dividend payouts have grown at a 12.1% CAGR over the past five years and a 13.7% CAGR over the past three years. Its current dividend yield is 1.91%, while its four-year average yield is 1.49%.

ABT has lost 2.4% over the past month to close the last trading session at $98.29. It has lost 30.2% year-to-date and 22.4% over the past year. However, Wall Street analysts expect the stock to hit $118.21 in the near term, indicating a potential upside of 20.3%.

Here is what could shape ABT’s performance in the near term:

Solid Financials

ABT’s net sales came in at $33.56 billion for the nine months that ended September 30, 2022, up 6.2% year-over-year. Its adjusted net earnings came in at $7.66 billion, up 9.3% year-over-year, while its adjusted EPS came in at $4.31, up 10.8% year-over-year. Also, its operating earnings came in at $7.06 billion, up 16.7% year-over-year.

Attractive Valuations

ABT’s forward EV/EBIT of 15.84x is 2.5% lower than the industry average of 16.25x. Its forward Price/Sales of 3.99x is 5.8% lower than the industry average of 4.24x. Moreover, its forward Price/Cash Flow of 13.83x is 13.4% lower than the industry average of 15.97x.

Robust Profitability Margins

ABT’s trailing-12-month gross profit margin of 57.19% is 4.96% higher than the industrial average of 54.49%. Its trailing-12-month EBITDA and net income margins of 29.14% and 17.52% are higher than the industrial averages of 3.29% and negative 2.85%, respectively.

In addition, its trailing-12-month ROCE, ROTC, and ROTA of 22.17%, 11.46%, and 10.63%, compared with the industry averages of negative 38.67%, 21.39%, and 29.59%, respectively.

POWR Ratings Reflect Promising Outlook

ABT has an overall rating of B, which equates to a Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

The stock has a B grade for Quality, consistent with its higher-than-industry profitability margins. It has a B grade for Stability, in sync with its 24-month beta of 0.63.

In the 142-stock Medical – Devices & Equipment industry, ABT is ranked #8.

Click here for the additional POWR Ratings for ABT (Growth, Value, Momentum, and Sentiment).

View all the top stocks in the Medical – Devices & Equipment industry here.

Bottom Line

ABT delivered a steady performance in its last reported quarter. Moreover, its EPS is expected to increase by 11% per annum for the next five years. Also, it surpassed EPS estimates in all four trailing quarters.

Although the stock has been declining in price lately, given its robust profitability and growth potential, ABT seems poised to deliver solid returns over time. Thus, it might be an ideal Buy this fall.

How Does Abbott Laboratories (ABT) Stack Up Against its Peers?

While ABT has an overall POWR Rating of B, one might consider looking at its industry peers, FONAR Corporation (FONR), Electromed, Inc. (ELMD), and Utah Medical Products, Inc. (UTMD), which have an overall A (Strong Buy) rating.


ABT shares were trading at $97.84 per share on Tuesday afternoon, down $0.45 (-0.46%). Year-to-date, ABT has declined -29.32%, versus a -18.26% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ABTGet RatingGet RatingGet Rating
FONRGet RatingGet RatingGet Rating
ELMDGet RatingGet RatingGet Rating
UTMDGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Read More Stories

More Abbott Laboratories (ABT) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ABT News