Abbott Laboratories (ABT) Buy or Sell Stock Guide

Last updated: Oct 12, '19

Are you looking for the analysis of Abbott Laboratories (ABT) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 7 reasons to buy and 4 reasons to sell ABT stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ABT stock:

  • Is ABT a buy or a sell?
  • Should I sell or hold ABT stock today?
  • Is ABT a good buy / investment?
  • What are ABT analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ABT stock:

1. Abbott's Xience stent remains a powerhouse in the drug-eluting stent market, thanks to its well-established record of safety and efficacy.

2. Aggressive cost-cutting plans should propel Abbott's bottom-line growth more quickly than top-line growth.

3. Abbott's sale of its established pharma business in developed markets to Mylan and its acquisition of CFR and Veropharm have put Abbott's branded generics business in a strong position to benefit from growing demand in emerging markets.

4. ABT profitability is improving. The YoY profit margin change was 6.00 percentage points. See ABT profitability chart.

5. ABT forward dividend yield is 1.56%, higher than the industry (0.10%) and sector (0.11%) forward dividend yields. See ABT forward dividend chart.

6. ABT average analyst rating is Strong Buy. See ABT analyst rating chart.

7. ABT average analyst price target ($94.32) is above its current price ($79.63). See ABT price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ABT stock (i.e., the bear case):

1. Abbott faces an uphill battle in the diagnostics arena, where it must go head-to-head against market leader Roche, along with energetic upstarts like Qiagen and Hologic.

2. Considering the heterogeneity involved in mitral valve disease, we are skeptical that MitraClip will move beyond niche use for certain inoperable patients.

3. ABT forward P/E ratio is 21.97, and it’s high compared to its industry peers’ P/E ratios. See ABT forward P/E ratio chart.

4. ABT short interest (days to cover the shorts) ratio is 3.26. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ABT short interest ratio chart.

Now let's look at the key statistics for ABT:

Metrics ABT
Price $82.79
Average Price Target / Upside $94.32 / 13.93%
Average Analyst Rating Strong Buy
Industry Medical Devices
Sector Healthcare
Number of Employees 103,000
Market Cap $141.07B
Forward P/E Ratio 22.05
Price/Book Ratio 4.56
PEG 2.09
Revenue (TTM) $30.93B
YoY Quarterly Revenue Growth 2.7%
Profit Margin 9.36%

What are your thoughts on ABT?

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