Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $217.27B
• Dividend Yield: 1.87%
• Average Volume (3M): 6.21M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.30
• Revenue Growth: 6.37%
• EPS Growth: 142.39%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.30
• Shares Outstanding: 1,738,872,000
• 10 Day Avg. Volume: 5,393,090
• 30 Day Avg. Volume: 6,207,896
• 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: 1.10
• Enterprise Value/Revenue: 5.56
• Enterprise Value/Gross Profit: 10.54
• Enterprise Value/Ebitda: 20.65
• 1Y Price Target: $147.13
• Price Target Upside: 16.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 5.15
• Revenue Forecast (FY): $44.66B

• Rating: 77 Outperform
• Price Target: $147.00 ▲(16.33% Upside)

Abbott Laboratories scores a 77, driven by strong financial performance and positive earnings call highlights. The company's robust growth in medical devices and international markets, coupled with strategic product launches, supports its growth trajectory. Technical analysis indicates potential short-term weakness, but valuation remains reasonable, providing a balanced investment opportunity.

Positive Factors

Revenue Growth

Abbott's strong organic sales growth, especially in medical devices and pharmaceuticals, indicates robust market demand and effective product strategy, supporting long-term revenue expansion.

Product Innovation

Continued focus on product innovation and a productive pipeline enhance Abbott's competitive edge and market position, driving sustainable growth and shareholder value.

International Market Expansion

Abbott's strategic focus on international markets, particularly in China, offers significant growth potential, diversifying revenue streams and reducing reliance on domestic markets.

Negative Factors

Cost Pressures

Tariff impacts and cost pressures on gross margins could challenge Abbott's profitability, necessitating strategic cost management to maintain margin sustainability.

Challenges in China

Persistent challenges in the Chinese diagnostics market could hinder Abbott's growth in this key region, affecting overall revenue and market share.

U.S. Pediatric Nutrition Decline

Loss of significant contracts in the U.S. pediatric nutrition segment could impact Abbott's market position and revenue, highlighting the need for strategic adjustments.

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 performance with robust profitability and efficient operations. The company maintains a solid balance sheet and healthy cash flows, supporting its growth trajectory. Minor concerns include cost pressures and increasing debt levels, but overall financial health remains sound.

Income Statement

Abbott Laboratories demonstrates strong profitability with a consistent gross profit margin above 50% and a net profit margin exceeding 30% in the TTM period. Revenue growth has been modest but positive, indicating steady expansion. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company's balance sheet is solid, with a manageable debt-to-equity ratio of 0.27 in the TTM period, indicating low leverage. Return on equity is robust at nearly 30%, showcasing effective use of equity capital. The equity ratio is stable, suggesting a strong capital structure. However, the gradual increase in total debt over the years warrants monitoring.

Cash Flow

Abbott Laboratories has shown a strong free cash flow growth rate in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. The free cash flow to net income ratio is also strong, reflecting efficient cash management. However, fluctuations in free cash flow growth in previous years highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.11B	41.95B	40.11B	43.65B	43.08B	34.61B
Gross Profit	22.76B	21.32B	20.04B	22.32B	23.21B	17.38B
EBITDA	11.61B	10.83B	10.61B	11.89B	12.16B	9.00B
Net Income	13.98B	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet
Total Assets	84.00B	81.41B	73.21B	74.44B	75.20B	72.55B
Cash, Cash Equivalents and Short-Term Investments	7.28B	7.97B	7.28B	10.17B	10.25B	7.15B
Total Debt	13.44B	15.28B	15.87B	17.95B	19.25B	19.89B
Total Liabilities	33.17B	33.51B	34.39B	37.53B	39.17B	39.55B
Stockholders Equity	50.56B	47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow
Free Cash Flow	6.78B	6.35B	5.06B	7.80B	8.65B	5.72B
Operating Cash Flow	9.04B	8.56B	7.26B	9.58B	10.53B	7.90B
Investing Cash Flow	-2.51B	-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
Financing Cash Flow	-6.59B	-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 126.36 is below the 20-day moving average (MA) of 126.96, below the 50-day MA of 130.41, and below the 200-day MA of 130.05, indicating a bearish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSX	79 Outperform	$146.84B	53.50	12.66%	―	21.62%	54.80%
EW	79 Outperform	$47.84B	35.50	13.59%	―	0.19%	65.58%
ABT	77 Outperform	$217.27B	15.67	30.62%	1.87%	6.37%	142.39%
MDT	71 Outperform	$115.95B	24.96	9.72%	3.06%	4.98%	22.08%
SYK	70 Outperform	$136.78B	46.96	14.04%	0.94%	10.95%	-18.32%
DXCM	69 Neutral	$23.12B	32.29	30.63%	―	14.21%	5.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Abbott Laboratories Corporate Events

Abbott Laboratories Reports Strong Q3 2025 Earnings

Abbott Laboratories is a global healthcare company that specializes in diagnostics, medical devices, nutritionals, and branded generic medicines, serving over 160 countries worldwide.

Abbott Laboratories’ Earnings Call Highlights Strong Growth

Abbott Laboratories’ recent earnings call conveyed a generally positive sentiment, highlighting robust growth across most segments, especially in medical devices and international markets. Despite these successes, the company faces ongoing challenges in the diagnostics market in China and the impact of tariffs on its financial performance.