Abbott Laboratories
ABT
$0.00
-0.28%
Abbott Laboratories is a global healthcare company operating in the Medical Devices industry. It is a diversified leader with a strong international presence, known for its portfolio in cardiovascular and diabetes devices, diagnostics, and nutritional products.
ABT
Abbott Laboratories
$0.00
Related headlines
Investment Opinion: Should I buy ABT Today?
Based on a synthesis of the data, the objective assessment is a 'Hold' with a bias towards accumulation for long-term investors. The stock's severe price decline has brought its valuation to more reasonable levels (forward P/E 16.82), and its strong fundamentals (robust cash flow, low debt) provide a margin of safety. However, the clear negative momentum and lack of a defined technical bottom warrant caution. The stock is not yet a clear 'Buy' but represents a potential opportunity for patient, income-focused investors willing to tolerate near-term volatility.
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ABT 12-Month Price Forecast
The analysis is neutral due to the clash between deteriorating price action and solid underlying financials. Confidence is medium due to the lack of clear analyst price targets and the stock's current oversold, yet trendless, condition.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Abbott Laboratories's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
2 analysts
Implied Upside
—
vs. current price
Analyst Count
2
covering this stock
Price Range
$0 - $0
Analyst target range
No sufficient analyst coverage available. The provided data includes only two analyst estimates for future EPS and revenue, but does not contain consensus target prices or a ratings distribution from Wall Street analysts. Recent institutional ratings from firms like Citigroup and Barclays maintain positive outlooks such as 'Buy' and 'Overweight'.
Bulls vs Bears: ABT Investment Factors
Abbott presents a classic value versus momentum conflict. Fundamentally, it is a financially strong, diversified healthcare leader with a solid dividend. However, the stock is in a severe technical downtrend and faces earnings normalization headwinds. The current price near 52-week lows suggests significant pessimism may be priced in.
Bullish
- Strong Financial Position: Low debt-to-equity of 0.29 and robust free cash flow of $7.4B.
- Resilient Dividend History: 54-year history of dividend increases, offering income stability.
- Solid Profitability Metrics: ROE of 12.5% and net margin of 14.7% indicate efficient operations.
- Attractive Forward Valuation: Forward P/E of 16.82 suggests growth expectations at a reasonable price.
Bearish
- Severe Technical Downtrend: Stock down 22.8% in 6 months, underperforming S&P 500 by 20%.
- Earnings Volatility: Net margin dropped from 84% to 15% year-over-year due to tax benefit normalization.
- High Trailing P/E Ratio: Trailing P/E of 33.55 is elevated, indicating high historical earnings multiple.
- Negative PEG Ratio: PEG ratio of -0.65 suggests growth expectations may be mispriced or negative.
ABT Technical Analysis
Overall, the stock has been in a pronounced downtrend over the past six months, with the price falling from around $133 in early October 2025 to approximately $102.67 by March 31, 2026, representing a 6-month decline of 22.8%. The stock has significantly underperformed the broader market, with a 3-month relative strength of -13.4% and a 1-month relative strength of -6.5% against the S&P 500.
Short-term performance has been weak, with the stock down 11.76% over the past month and 18.05% over the past three months. The price action shows a sharp decline in late January 2026, falling from around $121 to near $107, followed by a failed recovery attempt and a subsequent breakdown to new lows in March.
The current price of $102.67 is near the lower end of its 52-week range of $100.875 to $139.06, trading just 1.8% above the 52-week low. This positioning indicates significant technical weakness and potential oversold conditions, though no RSI data is provided to confirm this.
Beta
0.74
0.74x market volatility
Max Drawdown
-27.3%
Largest decline past year
52-Week Range
$101-$139
Price range past year
Annual Return
-22.3%
Cumulative gain past year
| Period | ABT Return | S&P 500 |
|---|---|---|
| 1m | -10.3% | -3.7% |
| 3m | -18.3% | -4.1% |
| 6m | -23.9% | -2.1% |
| 1y | -22.3% | +16.1% |
| ytd | -17.6% | -3.9% |
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ABT Fundamental Analysis
Revenue growth has been modest but positive; Q4 2025 revenue of $11.46B increased 4.4% year-over-year from Q4 2024. Profitability remains solid with a net margin of 14.7% for the latest quarter, though it has declined from the elevated 84.1% in Q4 2024 (which was boosted by a large tax benefit). Sequential quarterly net income improved from $1.64B in Q3 to $1.78B in Q4.
The company maintains a strong financial position with a low debt-to-equity ratio of 0.29 and a healthy current ratio of 1.58. Cash flow generation is robust, with trailing twelve-month free cash flow of $7.4B, supporting consistent dividend payments and share repurchases.
Operational efficiency is demonstrated by a Return on Equity (ROE) of 12.5% and a Return on Assets (ROA) of 6.6%. The company's asset turnover and margins indicate effective management of its diversified healthcare portfolio.
Quarterly Revenue
$11.5B
2025-12
Revenue YoY Growth
+0.04%
YoY Comparison
Gross Margin
+0.57%
Latest Quarter
Free Cash Flow
$7.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ABT Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 33.55, while the forward P/E is 16.82, suggesting the market expects significant earnings growth. The Price-to-Sales (P/S) ratio is 4.94, and the Enterprise Value-to-Sales (EV/Sales) is 4.16.
Peer comparison data for industry averages is not available in the provided inputs. The valuation appears to be factoring in future earnings recovery, as the forward P/E is substantially lower than the trailing multiple, potentially reflecting analyst optimism about post-downturn performance.
PE
33.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 5x~46x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.5x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is the sustained technical downtrend and significant underperformance relative to the market, which may indicate underlying concerns not fully captured in financials, such as competitive pressures or growth deceleration in key segments like medical devices. The company's high trailing P/E ratio of 33.55, despite a more reasonable forward P/E of 16.82, suggests earnings expectations are in flux, and any failure to meet forward estimates could lead to further multiple contraction. Furthermore, while the balance sheet is strong (D/E 0.29), the stock's high short ratio of 2.35 indicates elevated bearish sentiment, which could exacerbate volatility. External risks include regulatory pressures in the healthcare sector and foreign exchange exposure, as roughly 60% of sales are international.
FAQ
Key risks include continued technical downtrend and underperformance, with the stock down 18% in 3 months. Earnings volatility is a concern, as the net margin normalized from 84% to 15%. High short interest of 2.35 could fuel further downside pressure. External risks include healthcare regulation and foreign exchange volatility, given 60% of sales are international.
Our 12-month outlook presents three scenarios. The base case (55% probability) sees a range of $110-$125, based on stabilization and forward P/E valuation. The bull case (30%) targets $125-$139 on a recovery to prior highs. The bear case (15%) sees a retest of the $101-$108 range near the 52-week low. The overall stance is neutral.
The valuation is mixed. The trailing P/E of 33.55 appears high, but the forward P/E of 16.82 is more reasonable, suggesting the market expects earnings growth. The Price-to-Sales ratio of 4.94 and EV/Sales of 4.16 are not extreme for a healthcare leader. Given the sharp price decline, the stock is likely fairly valued to slightly undervalued based on forward earnings estimates.
ABT is a 'Hold' for now, with potential for long-term investors. The stock is down 22.8% in six months and trades near its 52-week low, which may present a value opportunity given its strong fundamentals like a 14.7% net margin and $7.4B in annual free cash flow. However, the severe downtrend and high short interest suggest waiting for price stabilization could be prudent.
ABT is more suitable for long-term, income-focused investors. The company's 54-year dividend growth history, strong cash flow, and diversified business model support a long-term thesis. The current technical weakness and volatility make it a challenging short-term trade. Patient investors can collect the 1.88% dividend while waiting for a fundamental and technical recovery.