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Abbott (ABT) Stock Moves -1.02%: What You Should Know

Zacks

Abbott (ABT) closed the most recent trading day at $88.71, moving -1.02% from the previous trading session. This move was narrower than the S&P 500′s daily loss of 2.42%. Elsewhere, the Dow lost 2.84%, while the tech-heavy Nasdaq lost 2.59%.

Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 2.69% in the past month. In that same time, the Medical sector gained 0.72%, while the S&P 500 gained 4.5%.

Wall Street will be looking for positivity from ABT as it approaches its next earnings report date. This is expected to be July 16, 2020. On that day, ABT is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 48.78%. 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 $2.82 per share and revenue of $31.27 billion. These totals would mark changes of -12.96% and -1.98%, respectively, from last year.


Investors might also notice recent changes to analyst estimates for ABT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. ABT currently has a Zacks Rank of #2 (Buy).

Digging into valuation, ABT currently has a Forward P/E ratio of 31.76. Its industry sports an average Forward P/E of 34.03, so we one might conclude that ABT is trading at a discount comparatively.

We can also see that ABT currently has a PEG ratio of 3.7. 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. The Medical – Products industry currently had an average PEG ratio of 4.05 as of yesterday’s close.

The Medical – Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research
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