Abbott Laboratories (ABT) AI Stock Analysis

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Abbott Laboratories

(NYSE:ABT)

Rating:79Outperform

Price Target:

$149.00

▲(10.96% Upside)

Abbott Laboratories' strong financial performance and robust earnings call highlights, particularly in Medical Devices, contribute significantly to its overall score. While technical indicators are neutral, and valuation is reasonable, the company faces challenges in the Diagnostics segment and from tariffs. However, its strategic initiatives and market resilience support a positive outlook.

Positive Factors

Product Performance

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

Sales Performance

Libre sales of $1.9 billion surpassed estimates, highlighting strong demand and growth in this product line.

Stock Valuation

The stock's reaction is seen as too punitive, presenting a buying opportunity as it has been upgraded to Buy.

Negative Factors

Diagnostics Segment Challenges

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.

Guidance Revision

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

Revenue Disruption

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

Abbott Laboratories (ABT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$233.71B

Dividend Yield1.73%

Average Volume (3M)6.95M

Price to Earnings (P/E)16.8

Beta (1Y)0.34

Revenue Growth5.85%

EPS Growth152.28%

CountryUS

Employees114,000

SectorHealthcare

Sector Strength38

IndustryMedical - Devices

Share Statistics

EPS (TTM)1.26

Shares Outstanding1,740,459,000

10 Day Avg. Volume5,716,722

30 Day Avg. Volume6,953,043

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)4.11

Price to Sales (P/S)4.67

P/FCF Ratio30.84

Enterprise Value/Market Cap1.05

Enterprise Value/Revenue5.78

Enterprise Value/Gross Profit11.23

Enterprise Value/Ebitda21.94

Forecast

1Y Price Target

$144.83

Price Target Upside7.86% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

Abbott Laboratories Business Overview & Revenue Model

Company DescriptionAbbott 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 MoneyAbbott 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much revenue each business unit or product line generates, highlighting which areas drive growth and where there might be challenges or opportunities for expansion.

Chart InsightsAbbott Laboratories' Medical Devices segment shows robust growth, driven by strong performance in diabetes care and structural heart, aligning with a 12.5% sales increase reported in the earnings call. Nutrition also sees a resurgence with 7% growth, particularly in US pediatric nutrition. However, Diagnostics faces headwinds, notably in China, with a 5% decline due to reduced COVID-19 testing and procurement challenges. Despite tariff impacts, Abbott's strategic investments and product innovations position it well for future growth, with plans to launch over 25 new products in the next three years.

Data provided by:

Main Street Data

Abbott Laboratories Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q2-2025)

% Change Since: 1.93%|

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Neutral

Abbott experienced strong growth in several segments, particularly in Medical Devices and EPD, and achieved significant EPS growth. However, challenges persist in the Diagnostics segment due to declining COVID testing sales and issues in the China market. The impact of tariffs also presents a headwind, but overall performance remains resilient.

Q2-2025 Updates

Positive Updates

Strong Sales Growth

Abbott delivered high single-digit sales growth excluding COVID testing, with a 7.5% increase in the second quarter and an 8% increase in the first half of 2025.

Record Performance in EPD

Sales in EPD grew nearly 8% in the quarter, surpassing $1 billion in quarterly sales for the first time, driven by strong performance in key markets including India, China, and other regions.

Medical Devices Success

Medical Devices sales grew 12% driven by double-digit growth in diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management.

Diabetes Care Growth

Sales of continuous glucose monitors reached $1.9 billion in the quarter, growing 19.5%.

EPS Growth

Second quarter adjusted earnings per share were $1.26, reflecting 11% growth versus the prior year and 16% growth on a sequential basis.

Negative Updates

Diagnostics Sales Decline

Sales in Diagnostics declined 1.5% in the quarter, mainly due to a year-over-year decline in COVID testing sales and volume-based procurement programs in China, representing a projected $700 million headwind for full year 2025.

China Market Challenges

The expected recovery in China Diagnostic volumes has not materialized, creating uncertainty and continued headwinds in the market.

Impact of Tariffs

Tariffs are expected to have a $200 million impact on the company, contributing to ongoing headwinds.

Company Guidance

During the second quarter of 2025, Abbott demonstrated robust financial performance with high single-digit organic sales growth, excluding COVID testing sales, amounting to 7.5% for the quarter and 8% for the first half of the year. The company also achieved over 100 basis points of margin expansion in both gross and operating margins, alongside a 16% sequential growth in adjusted earnings per share, reaching $1.26, which exceeded consensus estimates. Despite a 1.5% decline in diagnostics sales due to reduced COVID testing and challenges in China, Abbott's core lab diagnostics grew by 8% outside China. Nutrition sales rose by 3.5% driven by a 6.5% increase in adult nutrition, while Medical Devices saw a 12% growth, propelled by double-digit growth in diabetes care, heart failure, and electrophysiology. The company's strategic initiatives, including biosimilar regulatory submissions in emerging markets and advancements in mitral valve replacement technologies, underscore its commitment to sustainable growth and innovation. Abbott forecasts continued high single-digit growth with expectations for favorable foreign exchange impacts and resilience against headwinds in diagnostics.

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

Very Positive

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

Positive

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

Very Positive

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 Price134.28

Price Trends

50DMA

131.35

Positive

100DMA

130.30

Positive

200DMA

125.10

Positive

Market Momentum

MACD

0.18

Negative

RSI

62.81

Neutral

STOCH

92.16

Negative

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 134.28 is above the 20-day moving average (MA) of 128.06, above the 50-day MA of 131.35, and above the 200-day MA of 125.10, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 92.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.

Abbott Laboratories Risk Analysis

Abbott Laboratories disclosed 20 risk factors in its most recent earnings report. Abbott Laboratories reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Abbott Laboratories Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABT	79 Outperform	$233.71B	16.79	31.01%	1.73%	5.85%	152.28%
MDT	77 Outperform	$119.00B	25.70	9.49%	3.03%	3.62%	31.18%
EW	76 Outperform	$46.00B	53.49	15.71%	―	-5.23%	-39.83%
DXCM	75 Outperform	$30.93B	55.21	22.83%	―	9.30%	-14.95%
BSX	73 Outperform	$152.83B	61.39	11.71%	―	21.45%	36.19%
SYK	69 Neutral	$144.35B	49.96	14.25%	0.88%	11.36%	-15.66%
Sector *	51 Neutral	$7.35B	-0.20	-44.53%	2.35%	30.18%	-1.17%

* Healthcare Sector Average

Performance Comparison

ABT

Abbott Laboratories

134.28

28.51

26.95%

BSX

Boston Scientific

103.14

27.20

35.82%

DXCM

Dexcom

78.86

7.59

10.65%

Edwards Lifesciences

78.35

12.81

19.55%

MDT

Medtronic

92.88

14.30

18.20%

SYK

Stryker

377.58

55.29

17.16%

Abbott Laboratories Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Abbott Laboratories Announces Executive Vice President’s Retirement

Neutral

May 1, 2025

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025