Abbott Labs (ABT) AI Stock Analysis

Compare

8,411 Followers

Top Page

Abbott Labs

(NYSE:ABT)

Rating:80Outperform

Price Target:

$153.00

▲(14.23%Upside)

Abbott Laboratories receives a solid score due to its strong financial performance and positive earnings call highlights, bolstered by strategic investments and growth in medical devices and nutrition segments. Despite some challenges, such as tariffs and declining diagnostics sales, the company's effective management and strategic initiatives offer a promising outlook. Technical indicators support a positive trend, while valuation remains fair.

Positive Factors

Growth Prospects

ABT views its business as fundamentally high single digit sales and double-digit EPS growth.

Legal Outcomes

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

Market Growth

Following the approval of Volt, ABT believes that it can grow in-line or above electrophysiology (EP) market growth.

Negative Factors

Litigation Challenges

The possibility of different state laws providing an advantage to plaintiffs is considered a wild card, but Abbott is expected to challenge these issues in any trial.

Revenue Headwinds

Despite a ~$700M headwind in 2025, consisting of ~$200M from China VBP and ~$500M y/y COVID testing decline.

Sales Decline

ABT sees China declining as a percent of sales longer term, expecting it to be ~6% in 2025 from ~9% in the past.

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

Market Cap

$232.63B

Dividend Yield1.71%

Average Volume (3M)6.18M

Price to Earnings (P/E)17.3

Beta (1Y)0.37

Revenue Growth5.00%

EPS Growth139.98%

CountryUS

Employees114,000

SectorHealthcare

Sector Strength41

IndustryMedical - Devices

Share Statistics

EPS (TTM)1.09

Shares Outstanding1,739,836,400

10 Day Avg. Volume5,653,930

30 Day Avg. Volume6,183,812

Financial Highlights & Ratios

PEG Ratio26.69

Price to Book (P/B)2.49

Price to Sales (P/S)0.00

P/FCF Ratio34.82

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue1.43

Enterprise Value/Gross Profit10.08

Enterprise Value/Ebitda5.51

Forecast

1Y Price Target

$143.28

Price Target Upside6.97% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

Abbott Labs Business Overview & Revenue Model

Company DescriptionAbbott Laboratories (ABT) is a global healthcare company headquartered in Abbott Park, Illinois. The company operates through four main business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Abbott is known for its wide range of healthcare products, including branded generic medicines, diagnostic systems and tests, nutritional products for infants and adults, and advanced medical devices for cardiovascular, diabetes care, and neuromodulation.

How the Company Makes MoneyAbbott Laboratories generates revenue through its diversified portfolio of healthcare products and services. The company earns a substantial portion of its income from the sale of branded generic pharmaceuticals, particularly in emerging markets. Its Diagnostic Products segment provides significant revenue through the sale of innovative diagnostic systems and tests used in laboratory and point-of-care settings. The Nutritional Products segment contributes to earnings through sales of well-known brands like Similac and Ensure, catering to both pediatric and adult nutrition needs. The Medical Devices division is another key revenue stream, driven by advanced products for cardiovascular health, diabetes management, and neuromodulation therapies. Additionally, strategic partnerships and collaborations in research and development, as well as an extensive global distribution network, play crucial roles in expanding Abbott's market reach and enhancing its revenue-generating capabilities.

Abbott Labs Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how different business units contribute to overall sales, highlighting areas of strength, diversification, and potential growth within the company’s portfolio.

Chart InsightsAbbott Laboratories' Medical Devices segment shows robust growth, driven by diabetes care and structural heart products, aligning with the 12.5% sales increase reported in the earnings call. Meanwhile, the Diagnostics segment faces challenges with declining sales, particularly in China, due to reduced COVID-19 testing and procurement pressures. Nutrition sales are rebounding, supported by strong performance in adult and pediatric nutrition. Despite tariff challenges, Abbott's strategic investments and product launches are poised to sustain growth, with a focus on expanding the US transfusion diagnostic business and introducing over 25 new products in the coming years.

Data provided by:

Main Street Data

Abbott Labs Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q1-2025)

% Change Since: 6.12%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

Abbott Laboratories reported a strong financial performance with significant growth in several segments, including medical devices and nutrition, while facing challenges from tariffs and a decline in diagnostics sales, particularly in China. The company's strategic investments and product innovations provide a solid foundation for future growth, although the impact of tariffs remains a concern.

Q1-2025 Updates

Positive Updates

Strong Overall Financial Performance

Achieved target growth objective with high single-digit sales growth and double-digit earnings per share growth. First quarter sales grew 7% or more than 8% excluding COVID testing sales. Adjusted earnings per share of $1.09 grew 11% versus the prior year.

Nutrition Segment Growth

Sales increased 7% in the quarter, driven by high single-digit growth in adult nutrition and double-digit growth in US pediatric nutrition.

Medical Devices Surge

Sales grew 12.5%, with strong performance in diabetes care, structural heart, and electrophysiology segments. Continuous glucose monitors grew more than 20%, including 30% growth in the US.

Strategic Manufacturing and R&D Investments

On track to go live with two new manufacturing and R&D investments in Illinois and Texas by the end of the year, totaling half a billion dollars, to expand US transfusion diagnostic business.

Positive Developments in Electrophysiology and Structural Heart

Electrophysiology sales grew 10% with early Volt PFA system launch in Europe. Structural heart segment grew 15% with strong performance in surgical valves and transcatheter repair products.

Negative Updates

Impact of Tariffs

Tariffs estimated to impact 2025 by a few hundred million dollars, primarily affecting the US and China, with potential long-term implications.

Diagnostics Sales Decline

Sales declined 5% in the quarter due to a year-over-year decline in COVID-19 testing sales and the impact of volume-based procurement programs in China.

Challenges in China Diagnostics Market

Core laboratory diagnostics affected by volume-based procurement programs in China, leading to lower sales growth without volume offset.

Company Guidance

During Abbott Laboratories' First Quarter 2025 Earnings Conference Call, the company provided guidance that emphasized its resilient performance and strategic initiatives amid a dynamic economic environment. Abbott Laboratories reported a 7% increase in first-quarter sales, or more than 8% excluding COVID testing sales, and an 11% rise in adjusted earnings per share to $1.09, which was at the high end of their guidance range. The company achieved high single-digit sales growth and double-digit EPS growth, with gross margin expanding by 140 basis points and operating margin by 130 basis points compared to the prior year. Despite challenges such as new tariffs, Abbott Laboratories reaffirmed its full-year guidance, projecting adjusted earnings per share for the second quarter to be in the range of $1.23 to $1.27. The company highlighted its diverse business model's strength, with significant growth in medical devices (12.5%), diabetes care sales ($1.7 billion), and structural heart (15%). Abbott Laboratories is also making strategic investments, including half a billion dollars to expand its US transfusion diagnostic business, and is on track to launch more than 25 key new products over the next three years.

Abbott Labs 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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
42.34B	41.95B	40.11B	43.65B	43.08B	34.61B
	Gross Profit
23.67B	23.24B	22.13B	24.51B	24.54B	19.61B
	EBIT
7.19B	6.83B	6.48B	8.36B	8.43B	5.36B
	EBITDA
11.20B	10.83B	10.61B	12.38B	12.74B	8.79B
	Net Income Common Stockholders
13.50B	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.84B	7.97B	7.28B	10.17B	10.25B	7.15B
	Total Assets
81.45B	81.41B	73.21B	74.44B	75.20B	72.55B
	Total Debt
13.24B	15.02B	15.87B	17.72B	19.01B	19.65B
	Net Debt
6.71B	7.41B	8.98B	7.83B	9.21B	12.81B
	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 Labs Technical Analysis

Technical Analysis Sentiment

Positive

Last Price133.94

Price Trends

50DMA

130.72

Positive

100DMA

129.39

Positive

200DMA

121.51

Positive

Market Momentum

MACD

0.70

Positive

RSI

55.83

Neutral

STOCH

64.41

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 133.94 is above the 20-day moving average (MA) of 132.86, above the 50-day MA of 130.72, and above the 200-day MA of 121.51, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 64.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.

Abbott Labs Risk Analysis

Abbott Labs disclosed 20 risk factors in its most recent earnings report. Abbott Labs 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 Labs Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXCM	81 Outperform	$34.03B	64.27	23.72%	―	9.11%	-17.87%
ABT	80 Outperform	$232.63B	17.34	30.66%	1.71%	5.00%	139.98%
SYK	78 Outperform	$146.20B	51.70	14.26%	0.86%	10.76%	-15.22%
MDT	75 Outperform	$109.79B	24.10	9.49%	3.27%	3.62%	31.18%
BSX	73 Outperform	$152.53B	75.05	9.65%	―	19.35%	14.31%
EW	71 Outperform	$45.67B	51.96	16.73%	―	-9.84%	-35.77%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%

* Healthcare Sector Average

Performance Comparison

ABT

Abbott Labs

133.94

28.48

27.01%

BSX

Boston Scientific

102.83

25.72

33.35%

DXCM

Dexcom

85.74

-30.05

-25.95%

Edwards Lifesciences

77.77

-10.37

-11.77%

MDT

Medtronic

87.00

5.68

6.98%

SYK

Stryker

383.10

36.97

10.68%

Abbott Labs 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

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.