Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $230.89B
• Dividend Yield: 1.75%
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.33
• Revenue Growth: 5.85%
• EPS Growth: 152.28%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Devices
• EPS (TTM): 1.26
• Shares Outstanding: 1,740,459,000
• 10 Day Avg. Volume: 4,507,472
• 30 Day Avg. Volume: 5,725,403
• PEG Ratio: 0.11
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 4.67
• P/FCF Ratio: 30.84
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 5.78
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 21.94
• 1Y Price Target: $145.39
• Price Target Upside: 9.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 79 Outperform
• Price Target: $149.00 ▲(12.32% Upside)

Abbott Laboratories' strong financial performance and positive earnings call guidance are the most significant factors driving the stock score. Technical analysis and valuation are supportive but less impactful. The company's resilience against market headwinds and strategic focus on growth areas like Medical Devices contribute to a favorable outlook.

Positive Factors

Diabetes Care Performance

US performance in Diabetes Care really stood out at +24.5%, with Libre essentially driving significant upside for ABT in Q2.

MedTech Growth

Multiple key growth drivers from ABT's MedTech segment showed continued strength, especially in Diabetes and EP.

Stock Opportunity

The post-EPS stock reaction creates a potentially more favorable risk/reward profile going forward.

Negative Factors

Diagnostics Sales

Softer-than-expected COVID sales, ongoing disruption from VBP in China, and recent changes in HIV funding were largely responsible for lower-than-expected Diagnostics sales.

Lowered Growth Guidance

The organic growth guide including covid was lowered to 6-7% from prior 7.5%.

Non-MedTech Segments

ABT's non-MedTech segments, which account for about 55% of revenue, remain a source of disruption.

Abbott Laboratories Business Overview & Revenue Model

Company Description

Abbott Laboratories (ABT) is a global healthcare company that specializes in the development and marketing of a wide range of medical devices, diagnostics, nutrition products, and pharmaceuticals. Founded in 1888 and headquartered in Abbott Park, Illinois, the company operates through four main sectors: Established Pharmaceuticals, Diagnostic Products, Nutritional Products, and Medical Devices. Abbott is known for its innovative products, including glucose monitoring systems, heart devices, and nutritional supplements, catering to diverse health needs across all stages of life.

How the Company Makes Money

Abbott Laboratories generates revenue through multiple key streams across its various sectors. The Medical Devices segment, which includes products such as cardiovascular devices, diabetes care products, and neuromodulation devices, represents a significant portion of the company's revenue. The Diagnostics segment, providing a range of laboratory and point-of-care testing solutions, also contributes substantially to earnings, particularly through partnerships with healthcare providers and laboratories. The Nutritional Products sector, which offers infant formulas and nutritional supplements, benefits from strong market demand and brand recognition. Additionally, the Established Pharmaceuticals segment focuses on generic and branded medications, contributing to steady revenue growth. Abbott's revenue model is bolstered by its commitment to research and development, allowing it to introduce innovative products and maintain competitive advantage. Strategic partnerships with healthcare organizations, hospitals, and distributors further enhance its market reach and revenue potential.

Abbott Laboratories Financial Statement Overview

Summary

Abbott Laboratories exhibits strong financial health with consistent profitability, efficient operations, and solid financial management. The company maintains a stable growth trajectory in revenue and cash flow generation, with manageable leverage and effective equity utilization.

Income Statement

Abbott Laboratories shows strong profitability with a consistent gross profit margin and net profit margin. The TTM revenue growth rate is moderate, indicating steady performance. EBIT and EBITDA margins are robust, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet demonstrates solid equity with a favorable equity ratio. The debt-to-equity ratio indicates manageable leverage, while the return on equity is strong, suggesting effective use of equity financing.

Cash Flow

The cash flow statements show healthy operating cash flow compared to net income, indicating strong cash generation. Free cash flow growth is positive, although not rapidly increasing, it reflects stability in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.34B	41.95B	40.11B	43.65B	43.08B	34.61B
Gross Profit	21.77B	21.32B	20.04B	22.32B	23.21B	17.38B
EBITDA	11.14B	10.83B	10.61B	11.89B	12.16B	9.00B
Net Income	13.50B	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet
Total Assets	81.45B	81.41B	73.21B	74.44B	75.20B	72.55B
Cash, Cash Equivalents and Short-Term Investments	6.84B	7.97B	7.28B	10.17B	10.25B	7.15B
Total Debt	13.24B	15.28B	15.87B	17.95B	19.25B	19.89B
Total Liabilities	32.38B	33.51B	34.39B	37.53B	39.17B	39.55B
Stockholders Equity	48.81B	47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow
Free Cash Flow	6.66B	6.35B	5.06B	7.80B	8.65B	5.72B
Operating Cash Flow	8.95B	8.56B	7.26B	9.58B	10.53B	7.90B
Investing Cash Flow	-2.38B	-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
Financing Cash Flow	-6.28B	-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABT, the sentiment is Positive. The current price of 132.66 is above the 20-day moving average (MA) of 131.41, above the 50-day MA of 130.78, and above the 200-day MA of 126.38, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$119.05B	25.63	9.72%	3.03%	4.98%	22.08%
ABT	79 Outperform	$230.89B	16.59	31.01%	1.75%	5.85%	152.28%
EW	78 Outperform	$47.75B	55.53	15.71%	―	-5.23%	-39.83%
BSX	74 Outperform	$156.32B	62.79	11.71%	―	21.45%	36.19%
SYK	72 Outperform	$149.64B	51.79	14.25%	0.85%	11.36%	-15.66%
DXCM	68 Neutral	$29.54B	52.74	22.83%	―	9.30%	-14.95%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%

Abbott Laboratories Corporate Events

Abbott Laboratories Announces Executive Vice President’s Retirement

On April 25, 2025, Abbott Laboratories announced that Hubert L. Allen, the Executive Vice President, General Counsel, and Secretary, plans to retire after a transition period. This leadership change could impact the company’s operations and strategic direction, potentially influencing its market positioning and stakeholder relationships.