Is Trending Stock Abbott Laboratories (ABT) a Buy Now?

Abbott Laboratories (ABT) is trending on Zacks.com, with shares down -0.5% over the past month versus the S&P 500's +0.6% gain. Current consensus estimates forecast a +9.7% year-over-year EPS increase to $1.25 for the current quarter and revenue growth of +6.5% to $11.05 billion; full-year EPS is projected to grow by +10.5% to $5.16. The stock currently holds a Zacks Rank #3, suggesting near-term performance in line with the broader market, and a Value Style Score of C, indicating fair valuation relative to peers.

Analysis

Abbott Laboratories (ABT) has recently garnered significant investor attention despite its shares returning -0.5% over the past month, underperforming both the Zacks S&P 500 composite's +0.6% gain and the Zacks Medical - Products industry's -3.2% loss. Analyst expectations point to continued growth, with current quarter earnings projected at $1.25 per share, a 9.7% year-over-year increase, and the consensus estimate for this period showing a slight +0.1% upward revision in the last 30 days. For the current fiscal year, EPS is anticipated to reach $5.16, up 10.5% year-over-year, with this estimate holding steady. Looking ahead to the next fiscal year, a further 10% EPS growth to $5.67 is forecasted, with a +0.2% upward revision in the past month. Revenue is also expected to expand, with a consensus estimate of $11.05 billion for the current quarter (+6.5% YoY), and full-year revenues projected at $44.68 billion (+6.5% YoY) and $47.76 billion (+6.9% YoY) for the current and next fiscal years, respectively. In its last reported quarter, Abbott posted revenues of $10.36 billion (+4% YoY), which was a -0.56% miss against consensus, while EPS of $1.09 represented a +1.87% beat. The company's Zacks Rank #3 (Hold) suggests near-term performance is likely to be in line with the broader market, and its Zacks Value Style Score of C indicates it is trading at par with its peers.

Key Decisions for Investors

• Given Abbott's Zacks Rank #3 (Hold) and Value Style Score of C, investors might consider maintaining current positions, as the stock is expected to perform in line with the broader market and appears fairly valued relative to peers.
• Investors should monitor upcoming earnings releases to confirm the projected year-over-year EPS growth of +9.7% for the current quarter and revenue growth of +6.5%, as well as the full-year EPS growth forecast of +10.5%.
• Note the recent stock underperformance of -0.5% over the past month and the mixed earnings surprise history, particularly the revenue miss of -0.56% in the last reported quarter, when evaluating risk and future performance potential.