Abbott Laboratories (ABT) Buy or Sell Stock Guide

Last updated: Last Friday

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 6 reasons to buy and 5 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 6.00percentage points. See ABT profitability chart.

5. ABT forward dividend yield is 1.50%, higher than the industry (0.13%) and sector (0.14%) forward dividend yields. See ABT forward dividend chart.

6. ABT average analyst rating is Buy. See ABT analyst rating 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 stock price ($85.77) is close to the 52-week high ($85.80). Perhaps now is a good time to sell? See ABT price chart.

4. ABT quarterly revenue growth was 1.92%, lower than the industry and sector average revenue growth (5.28% and 3.11%, respectively). See ABT revenue growth chart.

5. ABT average analyst price target ($84.78) is below its current price ($85.77). See ABT price target chart.

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

Metrics ABT
Price $83.80
Average Price Target / Upside $84.78 / 1.17%
Average Analyst Rating Buy
Industry Medical Devices
Sector Healthcare
Number of Employees 103,000
Market Cap $147.77B
Forward P/E Ratio 26.0417
Price/Book Ratio 4.8425
PEG 2.7696
Revenue (TTM) $30.72B
YoY Quarterly Revenue Growth 1.9243530192435303%
Profit Margin 8.528645833333334%

What are your thoughts on ABT?

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