Abbott Laboratories
ABT
$110.36
-1.88%
Abbott Laboratories is a diversified healthcare company that develops and markets medical devices, diagnostics, nutritional products, and branded generic pharmaceuticals, operating across more than 160 countries. As a global leader in medical devices and diagnostics, Abbott holds strong positions in cardiovascular devices, continuous glucose monitoring, and point-of-care testing, with roughly 60% of sales generated outside the U.S. The current investor narrative centers on the company's recovery from a challenging 2025-2026 period, marked by a guidance cut in April 2026 that overshadowed an earnings beat, while strategic moves like the Exact Sciences acquisition and continued innovation in diabetes care (FreeStyle Libre) are seen as key growth drivers. Recent stock volatility reflects concerns about near-term headwinds, but the company's 54-year dividend growth streak and defensive healthcare positioning attract long-term investors.…
ABT
Abbott Laboratories
$110.36
Related headlines
Investment Opinion: Should I buy ABT Today?
We rate ABT as a Hold. The consensus 'Buy' rating and average target of $120.20 suggest modest upside, but the recent guidance cut and high valuation warrant caution. The thesis is that Abbott's diversified portfolio and dividend growth provide downside support, but near-term headwinds limit upside.
Sign up to view all
ABT 12-Month Price Forecast
The AI model assesses ABT as neutral, balancing the positive revenue growth and dividend streak against the negative PEG and guidance cut. The forward P/E of 18.5x is attractive if earnings recover, but the negative PEG suggests the market is skeptical. The stance would upgrade to bullish if Q2 earnings show margin expansion and revenue growth accelerates above 10%. It would downgrade to bearish if guidance is cut again or if the dividend is at risk.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Abbott Laboratories's 12-month outlook, with a consensus price target around $120.20 and implied upside of +8.9% versus the current price.
Average Target
$120.20
0 analysts
Implied Upside
+8.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$103 - $135
Analyst target range
Abbott is covered by 25 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.59 (where 1 is Strong Buy and 5 is Sell). The average price target is $120.20, implying approximately 6.9% upside from the current price of $112.47. The target range is $103.00 (low) to $135.00 (high), with the low target suggesting a potential 8.4% downside, while the high target implies 20.0% upside. The relatively wide spread of $32 indicates moderate uncertainty, but the recent ratings actions from Evercore ISI, Piper Sandler, and others have been positive, with no downgrades in the last three months, signaling a constructive outlook.
Bulls vs Bears: ABT Investment Factors
Abbott presents a mixed picture: strong revenue growth and a robust dividend streak are offset by a recent guidance cut, high valuation, and negative momentum. The bull case rests on the forward P/E of 18.5x and expected earnings recovery, while the bear case highlights the negative PEG and premium valuation. Currently, the bearish evidence is slightly stronger due to the guidance cut and underperformance, but the stock's defensive nature and analyst support provide a floor. The key tension is whether the forward earnings estimates are realistic; if Abbott can deliver on them, the stock is undervalued, but any further cuts could trigger a de-rating.
Bullish
- Strong Q1 2026 Revenue Growth: Q1 2026 revenue of $11.16B grew 7.8% YoY, driven by Medical Devices ($5.54B) and Diagnostics ($6.20B). This demonstrates continued demand for core products despite macro headwinds.
- Attractive Forward Valuation: Forward P/E of 18.5x is well below trailing P/E of 33.5x, implying market expects significant earnings recovery. This is supported by analyst EPS estimates of $8.28 for 2026, suggesting a rebound from 2025 trough.
- Strong Dividend Growth Streak: Abbott has increased dividends for 54 consecutive years, with a current yield of 1.88% and payout ratio of 63%. This provides a reliable income stream and signals financial stability.
- Positive Analyst Sentiment: Consensus rating is 'Buy' with a mean score of 1.59 (1=Strong Buy, 5=Sell). Average price target of $120.20 implies 6.9% upside, and recent ratings actions from Evercore ISI and Piper Sandler have been positive.
Bearish
- Guidance Cut Overshadows Earnings: In April 2026, Abbott cut its 2026 profit outlook despite beating Q1 earnings, triggering a sharp selloff. This indicates management sees near-term headwinds that could pressure earnings.
- Negative PEG Ratio Signals Risk: PEG ratio of -0.65 is negative due to expected earnings decline, a red flag. This suggests the market may be overpaying for growth that may not materialize as forecasted.
- Underperformance vs. Market: ABT has fallen 14.4% over the past year while the S&P 500 gained 18.6%. Relative strength is negative across all timeframes, indicating persistent selling pressure and weak momentum.
- High Valuation Premium: Trailing P/E of 33.5x is 52% above the industry average of 22x. Even on forward earnings, the stock trades at a premium, which could lead to multiple compression if growth disappoints.
ABT Technical Analysis
Abbott's stock has been in a pronounced downtrend over the past year, with a 1-year price change of -14.39%, significantly underperforming the S&P 500's +18.56% gain. The current price of $112.47 sits at approximately 62% of the 52-week range (low $81.97, high $137.49), indicating the stock is closer to its lows than highs, which could suggest either a value opportunity or a falling knife. After hitting a 52-week low of $81.97 in May 2026, the stock has rebounded strongly, but it remains well below its 52-week high of $137.49, reflecting persistent selling pressure over the longer term.
Beta
0.58
0.58x market volatility
Max Drawdown
-39.6%
Largest decline past year
52-Week Range
$82-$137
Price range past year
Annual Return
-16.8%
Cumulative gain past year
| Period | ABT Return | S&P 500 |
|---|---|---|
| 1m | +4.4% | +2.7% |
| 3m | +26.9% | +1.0% |
| 6m | -2.4% | +12.0% |
| 1y | -16.8% | +18.9% |
| ytd | -11.1% | +12.5% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
ABT Fundamental Analysis
Abbott's revenue growth has been steady but modest, with Q1 2026 revenue of $11.16 billion, up 7.8% year-over-year, and sequential growth from $10.36 billion in Q1 2025. The company's diversified portfolio, including Medical Devices ($5.54 billion) and Diagnostics ($6.20 billion), is driving growth, while Nutritional Products ($2.02 billion) and Established Pharmaceuticals ($1.43 billion) provide stability. However, the growth rate is decelerating from the double-digit levels seen in 2022-2023, and the recent guidance cut for 2026 suggests near-term headwinds, including competitive pressures and macroeconomic challenges.
Quarterly Revenue
$11.2B
2026-03
Revenue YoY Growth
+7.8%
YoY Comparison
Gross Margin
56.3%
Latest Quarter
Free Cash Flow
$7.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is ABT Overvalued?
Given Abbott's positive net income, the trailing P/E ratio of 33.5x is the primary valuation metric, while the forward P/E of 18.5x indicates the market expects significant earnings growth, likely due to recovery from the 2025 trough. The gap between trailing and forward P/E suggests optimism about margin expansion and cost synergies from recent acquisitions. Compared to the industry average P/E of 22x (based on available data), Abbott trades at a 52% premium, justified by its strong brand portfolio, R&D pipeline, and consistent dividend growth. However, the PEG ratio of -0.65 is negative due to expected earnings decline, which is a red flag.
PE
33.5x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 21x~47x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a debt-to-equity ratio of 0.29, which is manageable, but the company's payout ratio of 63% leaves limited room for dividend growth if earnings decline. Free cash flow of $7.38B TTM is solid, but the negative PEG ratio (-0.65) suggests the market expects earnings to fall, which could strain the dividend if sustained. Additionally, the Q1 2026 net margin of 9.6% is well below the 15.5% in Q4 2025, indicating margin volatility that could persist.