In the latest market close, Abbott (ABT – Free Report) reached $127.21, with a +0.69% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.77% for the day. At the same time, the Dow added 1.42%, and the tech-heavy Nasdaq gained 2.28%.
The maker of infant formula, medical devices and drugs’s shares have seen a decrease of 6.36% over the last month, not keeping up with the Medical sector’s loss of 1.17% and the S&P 500’s loss of 5.73%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $1.07, reflecting a 9.18% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.39 billion, up 4.28% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.15 per share and a revenue of $44.35 billion, demonstrating changes of +10.28% and +5.73%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Abbott possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.56. For comparison, its industry has an average Forward P/E of 18.38, which means Abbott is trading at a premium to the group.
Meanwhile, ABT’s PEG ratio is currently 2.36. 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 2.09 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 140, placing it within the bottom 45% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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