Abbott Laboratories (ABT) Buy or Sell Stock Guide

Last updated: Dec 24, '18

The analysis below may be 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 / a good investment?
  • What are ABT analyst opinions, recommendations, ratings?

Here are ABT stock buy reasons/signals:

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 quarterly revenue growth was 12.10%, higher than the industry and sector average revenue growth (6.62% and 3.27%, respectively).

5. ABT forward dividend yield is 1.55%, higher than the industry (0.16%) and sector (0.14%) forward dividend yields.

6. ABT average analyst rating is Buy.

7. ABT average analyst price target ($78.11) is above its current price ($67.30).

Here are ABT stock sell reasons/signals:

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 profitability is declining. The YoY profit margin change was -4.97pp.

What are your thoughts on ABT?

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