Abbott (ABT) closed at $102.14 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's daily gain of 0.88%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 3.76%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 4.33% over the past month. This has lagged the Medical sector's loss of 3.2% and the S&P 500's loss of 0.38% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $1.04, down 27.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.67 billion, down 14.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.38 per share and revenue of $39.38 billion. These totals would mark changes of -17.98% and -9.8%, respectively, from last year.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 23.74. This represents a premium compared to its industry's average Forward P/E of 23.04.
It is also worth noting that ABT currently has a PEG ratio of 4.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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