Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $231.50B
• Dividend Yield: 1.7%
• Average Volume (3M): 7.60M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.36
• Revenue Growth: 5.00%
• EPS Growth: 139.98%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): 1.09
• Shares Outstanding: 1,739,836,400
• 10 Day Avg. Volume: 6,505,141
• 30 Day Avg. Volume: 7,597,541
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $144.40
• Price Target Upside: 8.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

Abbott Laboratories demonstrates strong financial performance with robust profitability and efficient operations. The positive momentum in stock price, coupled with reasonable valuation metrics, supports a favorable outlook. The earnings call reinforced confidence with strategic growth initiatives, although challenges such as tariffs and diagnostics sales declines need monitoring.

Positive Factors

Financial Performance

Sales grew an impressive 8.3% organic in a tough macro climate led by 13% organic growth in Medical Devices.

Legal Outcomes

Abbott Laboratories won the first bellwether case, indicating potential strengths in their legal position.

Product Development

Abbott showcased major advances in its EP business and Volt PFA platform, emphasizing faster-than-expected progress.

Negative Factors

Litigation Risks

The judge did not exclude the expert reports and ruled that the expert credibility question must go to the jury, which could prolong the litigation process.

Tariff Impact

Management sized 2025 tariff impact at $300mn to $400mn, resulting in a 3.5% headwind to EPS growth.

Abbott Laboratories Business Overview & Revenue Model

Company Description

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

How the Company Makes Money

Abbott Laboratories generates revenue through the sale of its diverse product portfolio across its four main business segments. The Established Pharmaceutical Products segment focuses on branded generic pharmaceuticals, primarily in emerging markets, contributing significantly to the company's revenue. The Diagnostic Products segment offers a range of testing systems and assays, including core laboratory, molecular, and point-of-care testing solutions, generating revenue through both product sales and service contracts. Abbott's Nutritional Products segment includes pediatric and adult nutrition brands like Similac and Ensure, which are distributed globally, providing a steady revenue stream. The Medical Devices segment encompasses a wide array of products for cardiovascular, diabetes care, neuromodulation, and other medical device markets, generating revenue from both the sale of devices and associated consumables. Additionally, strategic partnerships, research and development initiatives, and a focus on innovation help to drive Abbott's growth and profitability in the competitive healthcare industry.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.95B	40.11B	43.65B	43.08B	34.61B
	Gross Profit
23.24B	22.13B	24.51B	24.54B	19.61B
	EBIT
6.83B	6.48B	8.36B	8.43B	5.36B
	EBITDA
10.83B	10.61B	12.38B	12.74B	8.79B
	Net Income Common Stockholders
13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.97B	7.28B	10.17B	10.25B	7.15B
	Total Assets
81.41B	73.21B	74.44B	75.20B	72.55B
	Total Debt
15.02B	15.87B	17.72B	19.01B	19.65B
	Net Debt
7.41B	8.98B	7.83B	9.21B	12.81B
	Total Liabilities
33.51B	34.39B	37.53B	39.17B	39.55B
	Stockholders Equity
47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow		Free Cash Flow
6.35B	5.06B	7.80B	8.65B	5.72B
	Operating Cash Flow
8.56B	7.26B	9.58B	10.53B	7.90B
	Investing Cash Flow
-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
	Financing Cash Flow
-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.24
• 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 133.24 is above the 20-day moving average (MA) of 130.58, above the 50-day MA of 130.10, and above the 200-day MA of 119.18, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.98 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
ABT	79 Outperform	$231.50B	17.20	30.66%	1.70%	5.00%	139.98%
BSX	78 Outperform	$154.04B	76.29	9.65%	―	19.35%	14.31%
SYK	78 Outperform	$144.36B	51.04	14.26%	0.86%	10.76%	-15.22%
DXCM	76 Outperform	$32.00B	60.26	23.72%	―	9.11%	-17.87%
MDT	75 Outperform	$105.58B	25.36	8.42%	3.35%	2.72%	4.48%
EW	71 Outperform	$43.88B	30.26	16.73%	―	-9.84%	-35.77%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%

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.

Spark’s Take on ABT Stock

According to Spark, TipRanks’ AI Analyst, ABT is a Outperform.

Abbott Laboratories shows strong financial performance, particularly in revenue and profit growth, and has strategic initiatives for future expansion. While the technical indicators are mixed, the company’s fair valuation and positive earnings call highlight its resilience and potential for growth. However, attention to leverage and external challenges such as tariffs is necessary.

To see Spark’s full report on ABT stock, click here.