Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $215.17B
• Dividend Yield: 1.91%
• Average Volume (3M): 6.22M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.35
• Revenue Growth: 5.85%
• EPS Growth: N/A
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): 1.26
• Shares Outstanding: 1,739,836,400
• 10 Day Avg. Volume: 7,526,284
• 30 Day Avg. Volume: 6,220,705
• PEG Ratio: -1.60
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.32
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 9.38
• Enterprise Value/Ebitda: 5.16
• 1Y Price Target: $145.67
• Price Target Upside: 17.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $134.00 ▲(8.35%Upside)

Abbott Laboratories achieves a solid overall stock score driven by strong financial performance and positive earnings call insights. While the technical analysis indicates bearish momentum, the company's robust financial health and strategic growth initiatives in key segments support its long-term prospects. The valuation remains fair, providing a balanced investment opportunity.

Positive Factors

Financial Performance

Q2 sales of $11,047 came in 1% ahead of Visible Alpha consensus, with Medical Devices driving the majority of the upside.

Growth Potential

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

MedTech Performance

Strong performance in MedTech, especially in Diabetes and Structural Heart, highlights the company's growth potential.

Negative Factors

Guidance Update

The guidance update left more to be desired, with a lowered full-year organic revenue growth.

Organic Sales Growth

Shares fell 8% after ABT cut its 2025 organic sales growth guidance.

Transitory Challenges

The lower guidance is due to 3 transitory factors in Dx: 1) lower COVID testing; 2) slower recovery in China core labs volume; 3) US gov cuts to HIV testing in developing markets.

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 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 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. The financial statements reflect a well-managed company poised for sustainable performance.

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
EBITDA	10.83B	10.54B	12.13B	12.28B	8.84B
Net Income	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet
Total Assets	81.41B	73.21B	74.44B	75.20B	72.55B
Cash, Cash Equivalents and Short-Term Investments	7.97B	7.28B	10.17B	10.25B	7.15B
Total Debt	15.02B	15.87B	17.72B	19.01B	19.65B
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: Negative
• Last Price: 123.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 123.67 is below the 20-day moving average (MA) of 132.32, below the 50-day MA of 132.53, and below the 200-day MA of 123.99, indicating a bearish trend. The MACD of -1.75 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 19.83 is Positive, 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
SYK	81 Outperform	$148.82B	52.55	14.26%	0.86%	10.76%	-15.22%
DXCM	78 Outperform	$32.89B	62.98	23.72%	―	9.11%	-17.87%
MDT	77 Outperform	$114.81B	24.79	9.49%	3.17%	3.62%	31.18%
ABT	73 Outperform	$215.17B	15.49	30.66%	1.91%	5.85%	―
BSX	72 Outperform	$153.33B	75.94	9.65%	―	19.35%	14.31%
EW	71 Outperform	$44.87B	51.11	16.73%	―	-9.84%	-35.77%
Sector *	60 Neutral	HK$17.01B	5.47	-7.44%	3.79%	11.55%	-28.15%

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.