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31100.0 | 2023-03-31 00:00:00 UTC | 3 Healthcare Stocks to Watch As the Industry Evolves | ABT | https://www.nasdaq.com/articles/3-healthcare-stocks-to-watch-as-the-industry-evolves | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In 2022, healthcare stocks surpassed the S&P 500. But in 2023, they are not doing so well. Nonetheless, during economic uncertainty, the healthcare industry can serve as a reliable defensive strategy since individuals typically do not cut back on prescription drug acquisitions, postpone medical procedures, or cancel appointments with doctors solely due to a sluggish economy.
In 2021, health spending in the U.S. rose by 2.7% to $4.3 trillion, or $12,914 per capita, significantly lower than the growth rate of 10.3% in 2020. Nonetheless, the Centers for Medicare and Medicaid Services predict that healthcare spending in the U.S. will have an average annual growth rate of 5.1% between 2021 and 2030. That will result in a total expenditure of $6.8 trillion. This projection offers excellent long-term investment opportunities in the sector.
Healthcare stocks are great if you are an investor looking for safer waters. Across the board, they are defensive investments that will do well in multiple scenarios. As a result, if you are among those that want more bang for their buck, healthcare stocks are enticing.
Here are three stocks we have curated for you to study if you want to invest in healthcare.
Zoetis (ZTS)
Source: Casimiro PT / Shutterstock.com
Zoetis (NYSE:ZTS) is a prominent player in the global animal health industry, focusing on developing vaccines, medicines, and diagnostics for veterinarians and livestock producers.
The company’s companion animal business is expected to drive long-term growth, particularly in the pet parasiticides market, which presents the biggest opportunity in animal health. Zoetis is also making significant strides in companion animal pain management, further solidifying its position in the industry.
With a diverse range of products, including medicine, vaccines, genetic tests, and other offerings, Zoetis generates approximately $8 billion in revenue annually. The majority of this revenue, over 60%, is generated from the companion animal segment. The division includes products for dogs, cats, and horses. The remainder of the revenue comes from Zoetis’ livestock segment. The company offers around 300 products. Out of the total, 15 key offerings generate at least $100 million in annual revenue.
The stock will do well due to the growth in pet ownership in the U.S. Pet industry expenditure exceeded $126 billion in 2021. The increase in pet ownership contributed to this growth. In 2020, 70% of American households owned one or more pets, up from 56% in 1988.
Considering these secular tailwinds, Zoetis is among the best healthcare stocks to buy.
CVS Health Corp (CVS)
Source: Shutterstock
As the largest pharmacy healthcare provider in the United States, CVS Health Corp (NYSE:CVS) has a strong balance sheet, impressive free cash flow, and an attractive valuation, according to some analysts. Furthermore, CVS’s shift from being a drug store retailer to a holistic healthcare provider offering insurance, prescription drug management, and primary care services differentiates it from its competitors.
With America’s largest pharmacy benefits management business under its belt, CVS Health has leveraged its extensive retail presence to support additional operations. One such operation is its health insurance benefits management, bolstered by the acquisition of Aetna for approximately $78 billion in 2018, making CVS Health one of the largest health insurance benefits management providers in the United States.
As America’s population ages, the demand for healthcare services will increase steadily. Many of these services are provided directly by CVS Health. The company already operates over 1,100 walk-in medical clinics. Its proposed acquisition of Oak Street Health for $10.6 billion will add hundreds of primary care providers working in 169 medical centers, further expanding CVS Health’s capacity to provide essential healthcare services.
In summary, CVS Health is set to achieve consistent and robust profit growth. This is because it can provide and oversee numerous health benefits directly. As a result, it presents an appealing prospect to investors for an extended period.
Abbott Laboratories (ABT)
Source: Sundry Photography/Shutterstock.com
Abbott Laboratories (NYSE:ABT) is a top medical device sector player. It also operates in other industries, such as nutrition and a generic pharmaceutical division focusing on developing nations. The company’s triumphs can be attributed to its ability to create superior products and generate increased revenue and profits.
As a diversified healthcare company, Abbott Laboratories holds a prestigious distinction as a member of the exclusive group known as the Dividend Aristocrats. These comprise stocks that have consistently raised dividends for at least 25 consecutive years.
Abbott investors experienced a dividend increase for the 51st consecutive year last year.
Abbott’s past achievements are fantastic. However, the future is more important. Its strength lies in its innovative culture, which is critical in the healthcare industry and continually demands breakthrough products. For instance, Abbott rapidly created and marketed several COVID-19 diagnostic tests, leading the market during the pandemic.
Another example is the FreeStyle Libre franchise, a continuous glucose monitoring system that enables diabetes patients to monitor their blood glucose levels in real time. In 2022, revenue reached $4.3 billion, increasing by around 16% from the year-ago period. Abbott projects the product line will generate revenue of $10 billion by 2028.
Abbott Laboratories’ dedication to innovation and growth is apparent. Its plans include introducing products in various areas, such as structural heart, heart failure units, and beyond. It will only bolster the bottom line and improve its standing among investors and consumers. This commitment underscores why it is one of the top healthcare stocks around.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post 3 Healthcare Stocks to Watch As the Industry Evolves appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories (NYSE:ABT) is a top medical device sector player. Nonetheless, during economic uncertainty, the healthcare industry can serve as a reliable defensive strategy since individuals typically do not cut back on prescription drug acquisitions, postpone medical procedures, or cancel appointments with doctors solely due to a sluggish economy. With a diverse range of products, including medicine, vaccines, genetic tests, and other offerings, Zoetis generates approximately $8 billion in revenue annually. | Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories (NYSE:ABT) is a top medical device sector player. Zoetis (ZTS) Source: Casimiro PT / Shutterstock.com Zoetis (NYSE:ZTS) is a prominent player in the global animal health industry, focusing on developing vaccines, medicines, and diagnostics for veterinarians and livestock producers. CVS Health Corp (CVS) Source: Shutterstock As the largest pharmacy healthcare provider in the United States, CVS Health Corp (NYSE:CVS) has a strong balance sheet, impressive free cash flow, and an attractive valuation, according to some analysts. | Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories (NYSE:ABT) is a top medical device sector player. CVS Health Corp (CVS) Source: Shutterstock As the largest pharmacy healthcare provider in the United States, CVS Health Corp (NYSE:CVS) has a strong balance sheet, impressive free cash flow, and an attractive valuation, according to some analysts. One such operation is its health insurance benefits management, bolstered by the acquisition of Aetna for approximately $78 billion in 2018, making CVS Health one of the largest health insurance benefits management providers in the United States. | Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbott Laboratories (NYSE:ABT) is a top medical device sector player. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2022, healthcare stocks surpassed the S&P 500. The company offers around 300 products. |
31101.0 | 2023-03-29 00:00:00 UTC | Guru Fundamental Report for ABT - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abt-peter-lynch-4 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31102.0 | 2023-03-28 00:00:00 UTC | 2 Dividend Stocks Down 11% to 22% to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/2-dividend-stocks-down-11-to-22-to-buy-and-hold-forever | nan | nan | Forever is a long time. Before you invest money into a stock intending to hold shares for that long, it's vital to ensure the company has what it takes to succeed for years on end. That includes offering products or services that are unlikely to run out of style, the ability to innovate, and a competitive advantage.
Investors can find a few such companies in the market -- some even trading at discounts. Let's look at two companies that fit the bill: Pfizer (NYSE: PFE) and Abbott Laboratories (NYSE: ABT). In addition to being solid businesses, both companies are excellent dividend payers. Let's dig in.
PFE data by YCharts
1. Pfizer
Pfizer can't catch a break. Despite registering record revenue last year and a recent acquisition that could be a game changer, the company's shares are down by 22% since the beginning of 2023. What gives? In a way, Pfizer is a victim of its own success. The pharma giant won't maintain the pace it set over the past two years as sales of its coronavirus products, which are mainly responsible for its performance of late, will drop substantially.
Even so, Pfizer looks like a buy for investors focused on the long game. For one, as a leader in the pharmaceutical industry, Pfizer offers lifesaving drugs that are near the bottom of people's list of things to cut back on when financial troubles arise. And unless there is an all-purpose cure for all diseases in the works, the medicines the company sells will continue to be essential for a long time. Second, Pfizer has a habit of developing new products.
In fact, the company is in the middle of the most important stretch in its history. Those are CEO Albert Bourla's words. That may sound hyperbolic, but Pfizer plans to earn approval for 19 new products in the next 18 months. That's a staggering number. One way to put it in context is to note that the U.S. Food and Drug Administration (FDA) approved 37 new drugs in 2022 -- for the entire industry.
By itself, Pfizer could exceed half of that total in the next year and a half.
Pfizer's pending acquisition of Seagen for $43 billion in cash will further boost its innovative capabilities, especially in the area of oncology. Like its peers in the industry, Pfizer's most important competitive advantage is the patent protection its products benefit from, which allows it some degree of pricing power. Patent exclusivity often means the drugs can grow their sales for years before dealing with generic competition.
So with a pipeline being rejuvenated, Pfizer should be able to grow its non-coronavirus revenue at a good clip for years to come. The company currently offers a generous dividend yield of 4% and a modest cash payout ratio of 35%. Having raised its dividend by 20.6% in the past five years, Pfizer is well-positioned to keep boosting its payouts for a long time thanks to the solid business backing these dividend payments.
2. Abbott Laboratories
Abbott Laboratories is a medical devices specialist. The company has faced several issues over the past couple of years, from the pandemic disrupting its business to a recall of some of its infant powder products. The impact of these headwinds seems to still be weighing on Abbott Laboratories as its shares are down 11% this year. But things will eventually get back to normal for the healthcare giant.
Abbott Labs markets dozens of medical technologies that help physicians treat their patients. And the company is constantly developing new devices. In early March, Abbott announced that the FDA had cleared a mild traumatic brain injury (concussion) blood test developed by the company, which became the first commercially available lab-based blood test of its kind in the U.S.
The company is running plenty of clinical studies that should lead to new clearances or additional indications.
Abbott Laboratories has made progress in recent years in diabetes care with its continuous glucose monitoring (CGM) system, the FreeStyle Libre. This device gives patients a better way to keep track of their blood glucose levels. It has been one of the company's most important growth drivers in the past few years, and that probably won't change anytime soon given the large and growing number of people with diabetes worldwide, which currently stands at 422 million as of right now. Abbott is one of the world leaders in CGM technology.
The company also benefits from patent protection for the new products it develops. Further, there is a learning curve for physicians who use its medical devices, which grants some of the equipment the company offers a degree of high switching costs, bolstering its competitive edge. The rest of the company's business -- its nutrition, diagnostics, and pharmaceutical units -- add some diversification to Abbott's operations.
And as a dividend stock, Abbott Laboratories is in a rare class. It has raised its payouts for 51 consecutive years, which makes it a Dividend King. Abbott can offer growth and income for a long time for investors who add its shares to their portfolios today.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories, Pfizer, and Seagen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at two companies that fit the bill: Pfizer (NYSE: PFE) and Abbott Laboratories (NYSE: ABT). The pharma giant won't maintain the pace it set over the past two years as sales of its coronavirus products, which are mainly responsible for its performance of late, will drop substantially. For one, as a leader in the pharmaceutical industry, Pfizer offers lifesaving drugs that are near the bottom of people's list of things to cut back on when financial troubles arise. | Let's look at two companies that fit the bill: Pfizer (NYSE: PFE) and Abbott Laboratories (NYSE: ABT). Like its peers in the industry, Pfizer's most important competitive advantage is the patent protection its products benefit from, which allows it some degree of pricing power. Abbott Laboratories Abbott Laboratories is a medical devices specialist. | Let's look at two companies that fit the bill: Pfizer (NYSE: PFE) and Abbott Laboratories (NYSE: ABT). Having raised its dividend by 20.6% in the past five years, Pfizer is well-positioned to keep boosting its payouts for a long time thanks to the solid business backing these dividend payments. It has been one of the company's most important growth drivers in the past few years, and that probably won't change anytime soon given the large and growing number of people with diabetes worldwide, which currently stands at 422 million as of right now. | Let's look at two companies that fit the bill: Pfizer (NYSE: PFE) and Abbott Laboratories (NYSE: ABT). Having raised its dividend by 20.6% in the past five years, Pfizer is well-positioned to keep boosting its payouts for a long time thanks to the solid business backing these dividend payments. Abbott Laboratories Abbott Laboratories is a medical devices specialist. |
31103.0 | 2023-03-27 00:00:00 UTC | Abbott (ABT) Outpaces Stock Market Gains: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-outpaces-stock-market-gains%3A-what-you-should-know-5 | nan | nan | Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.4% over the past month. This has lagged the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $0.98, down 43.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $39.74 billion, which would represent changes of -17.98% and -8.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 22.38 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.26.
Also, we should mention that ABT has a PEG ratio of 4.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Products stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. Also, we should mention that ABT has a PEG ratio of 4.4. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. Also, we should mention that ABT has a PEG ratio of 4.4. | Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. Also, we should mention that ABT has a PEG ratio of 4.4. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Abbott (ABT) closed at $98.46 in the latest trading session, marking a +0.42% move from the prior day. Also, we should mention that ABT has a PEG ratio of 4.4. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31104.0 | 2023-03-27 00:00:00 UTC | Abbott's (ABT) CardioMEMS Favors Heart Failure Management | ABT | https://www.nasdaq.com/articles/abbotts-abt-cardiomems-favors-heart-failure-management | nan | nan | Abbott Laboratories ABT recently announced favorable findings on remote pressure monitoring. This study result was presented at the Technology and Heart Failure Therapeutics Conference in Boston, MA.
The data revealed that monitoring patients remotely with hemodynamic pressure sensing technology can significantly improve the survival rate of heart failure patients with reduced ejection fraction (HFrEF).
The latest clinical data within the company’s Heart Failure business generates optimism among clinicians and patients suffering from this progressive disease.
Details on the Study
The meta-analysis combined data from the CHAMPION, GUIDE-HF and LAPTOP-HF trials, to assess the mortality and heart failure-related hospitalizations of 1350 HFrEF patients. Among randomized trials, slightly less than half patient population was subjected to hemodynamic monitoring, while the rest received control. Heart failure hospitalizations were analyzed over 12 months, and all-cause mortality was evaluated across 24 months.
The ground-breaking research confirms that remote patient monitoring technology like CardioMEMS can provide an early warning against worsening heart failures and significantly reduce mortality risks among HFrEF patients by 25% in two years.
Image Source: Zacks Investment Research
ABT’s advanced monitoring technology, CardioMEMS HF System, remotely monitors changes in pulmonary artery pressure, which is considered an early indicator of worsening heart failure. The FDA-cleared, CardioMEMS sensor device wirelessly transmits daily readings to a patient’s clinical team. This empowers patients and their care team to manage their condition from virtually anywhere.
The incidence of heart failure is a growing health crisis, which demands innovative solutions. Per a representative at Abbott, the analysis establishes that remote pressure monitoring has the ability to reduce hospitalizations and should be considered for patients with a weak heart.
Industry Prospects
Per a Research report, the global hemodynamic monitoring system market was valued at $1.47 billion in 2021 and is expected to witness a CAGR of 6.73% by 2030.
High technology developments in hemodynamic monitoring systems, the rising prevalence of cardiovascular diseases & Type-2 diabetes and a government focus on critical care infrastructure and services are driving the market growth.
Recent Developments
Earlier this month, ABT received FDA clearance for the first, commercially-available laboratory, traumatic brain injury (TBI) blood test. Conducted on Abbott’s Alinity i laboratory instrument, the test will help clinicians quickly assess individuals with mild concussions, thus ruling out the need for a CT scan. The TBI test will be available across hospitals in the United States.
Additionally, Abbott also received FDA Clearance for its integrated continuous glucose monitoring (iCGM) system sensors — FreeStyle Libre 2 and FreeStyle Libre 3 — for integration with automated insulin delivery systems. The clearance allows people across the country to have an affordable option to pair with insulin pumps.
Price Performance
In the past six months, Abbott has mostly underperformed its industry. ABT shares have decreased 0.2% compared with the industry’s rise of 4.8%.
Zacks Rank and Key Picks
Abbott Laboratories currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Haemonetics Corporation HAE, Catalyst Pharmaceuticals CPRX and Avanos Medical AVNS. Haemonetics and Catalyst Pharmaceuticals each sport a Zacks Rank #1 (Strong Buy), while Avanos Medical has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 29.0% in the past year. Earnings estimates for Haemonetics have remained constant at $2.94 in 2023 and $3.29 in 2024 in the past 30 days.
HAE’s earnings beat estimates in all the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for Catalyst Pharmaceuticals’ 2023 earnings have increased from $1.17 to $1.42 in the past 30 days. Shares of the company have increased 102% in the past year.
CPRX’s earnings beat estimates in three quarters while beating the same in one, the average surprise being 3.35%. In the last reported quarter, Catalyst Pharmaceuticals delivered an earnings surprise of 4.76%
Estimates for Avanos Medical’s 2023 earnings have remained constant at $1.68 in the past 30 days. Shares of the company have declined 15.2% in the past year compared with the industry’s fall of 16.3%.
AVNS’ earnings beat estimates in all the trailing four quarters, the average surprise being 11.01%. In the last reported quarter, Avanos Medical delivered an earnings surprise of 25%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recent Developments Earlier this month, ABT received FDA clearance for the first, commercially-available laboratory, traumatic brain injury (TBI) blood test. Abbott Laboratories ABT recently announced favorable findings on remote pressure monitoring. Image Source: Zacks Investment Research ABT’s advanced monitoring technology, CardioMEMS HF System, remotely monitors changes in pulmonary artery pressure, which is considered an early indicator of worsening heart failure. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT recently announced favorable findings on remote pressure monitoring. Image Source: Zacks Investment Research ABT’s advanced monitoring technology, CardioMEMS HF System, remotely monitors changes in pulmonary artery pressure, which is considered an early indicator of worsening heart failure. | Image Source: Zacks Investment Research ABT’s advanced monitoring technology, CardioMEMS HF System, remotely monitors changes in pulmonary artery pressure, which is considered an early indicator of worsening heart failure. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT recently announced favorable findings on remote pressure monitoring. | Abbott Laboratories ABT recently announced favorable findings on remote pressure monitoring. Image Source: Zacks Investment Research ABT’s advanced monitoring technology, CardioMEMS HF System, remotely monitors changes in pulmonary artery pressure, which is considered an early indicator of worsening heart failure. Recent Developments Earlier this month, ABT received FDA clearance for the first, commercially-available laboratory, traumatic brain injury (TBI) blood test. |
31105.0 | 2023-03-25 00:00:00 UTC | Guru Fundamental Report for ABT - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abt-peter-lynch-3 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
Additional Research Links
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31106.0 | 2023-03-24 00:00:00 UTC | Notable ETF Inflow Detected - SSO, TMO, ABT, DHR | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-sso-tmo-abt-dhr | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $417.4 million dollar inflow -- that's a 15.2% increase week over week in outstanding units (from 59,200,000 to 68,200,000). Among the largest underlying components of SSO, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.7%, Abbott Laboratories (Symbol: ABT) is up about 0.5%, and Danaher Corp (Symbol: DHR) is lower by about 0.3%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average:
Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $68.66 as the 52 week high point — that compares with a last trade of $46.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Institutional Holders of HIMS
Top Ten Hedge Funds Holding FXEU
Institutional Holders of NATI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SSO, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.7%, Abbott Laboratories (Symbol: ABT) is up about 0.5%, and Danaher Corp (Symbol: DHR) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $417.4 million dollar inflow -- that's a 15.2% increase week over week in outstanding units (from 59,200,000 to 68,200,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SSO, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.7%, Abbott Laboratories (Symbol: ABT) is up about 0.5%, and Danaher Corp (Symbol: DHR) is lower by about 0.3%. For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $68.66 as the 52 week high point — that compares with a last trade of $46.24. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of SSO, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.7%, Abbott Laboratories (Symbol: ABT) is up about 0.5%, and Danaher Corp (Symbol: DHR) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $417.4 million dollar inflow -- that's a 15.2% increase week over week in outstanding units (from 59,200,000 to 68,200,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $68.66 as the 52 week high point — that compares with a last trade of $46.24. | Among the largest underlying components of SSO, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.7%, Abbott Laboratories (Symbol: ABT) is up about 0.5%, and Danaher Corp (Symbol: DHR) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares Ultra S&P500 (Symbol: SSO) where we have detected an approximate $417.4 million dollar inflow -- that's a 15.2% increase week over week in outstanding units (from 59,200,000 to 68,200,000). For a complete list of holdings, visit the SSO Holdings page » The chart below shows the one year price performance of SSO, versus its 200 day moving average: Looking at the chart above, SSO's low point in its 52 week range is $37.53 per share, with $68.66 as the 52 week high point — that compares with a last trade of $46.24. |
31107.0 | 2023-03-24 00:00:00 UTC | Wall Street Analysts See Abbott (ABT) as a Buy: Should You Invest? | ABT | https://www.nasdaq.com/articles/wall-street-analysts-see-abbott-abt-as-a-buy%3A-should-you-invest | nan | nan | Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT).
Abbott currently has an average brokerage recommendation (ABR) of 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy.
Of the 16 recommendations that derive the current ABR, 11 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.8% and 18.8% of all recommendations.
Brokerage Recommendation Trends for ABT
Check price target & stock forecast for Abbott here>>>
While the ABR calls for buying Abbott, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ABT Worth Investing In?
Looking at the earnings estimate revisions for Abbott, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.38.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Abbott. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Abbott.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Is ABT Worth Investing In? | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Is ABT Worth Investing In? | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Is ABT Worth Investing In? | Brokerage Recommendation Trends for ABT Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Is ABT Worth Investing In? |
31108.0 | 2023-03-22 00:00:00 UTC | Here's Why You Should Retain Abbott (ABT) Stock for Now | ABT | https://www.nasdaq.com/articles/heres-why-you-should-retain-abbott-abt-stock-for-now-4 | nan | nan | Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the core Diagnostics arm. Solid fourth-quarter 2022 performance buoys optimism. However, forex woes and Nutrition Product recall are impeding growth.
In the past year, this Zacks Rank #3 (Hold) stock has lost 15.9% compared with a 37.9% decline of the industry and a 11.3% fall of the S&P 500 composite.
This renowned provider of a diversified line of healthcare products has a market capitalization of $170.89 billion. The company projects 5.1% growth for the next five years and expects to maintain its strong performance. Abbott’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 22.42%.
Let’s delve deeper.
Q4 Upsides: Abbott exited the fourth quarter of 2022 with better-than-expected earnings and revenues. Excluding COVID testing sales, worldwide Diagnostics sales grew over 11% in the fourth quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. Within EPD, sales increased 8% organically in the fourth quarter, led by double-digit growth. In Medical Device, sales rose 7.5% globally. In the United States, sales growth was led by double-digit growth in Electrophysiology, Structural Heart and Diabetes Care. Within Diabetes Care specifically, fourth-quarter sales of FreeStyle Libre grew over 40% in the United States and global Libre sales reached $4.3 billion for 2022.
Core Diagnostics Grow Strong: In Diagnostics, COVID testing sales were $1.1 billion in the fourth quarter. Excluding COVID testing sales, worldwide diagnostics grew over 11% in the quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. During the pandemic, Abbott significantly expanded the install base of ID NOW and opened new testing channels. This expanded footprint drove strong growth and supported testing needs when flu and other respiratory infections surged late in 2021. During 2022, Abbott continued with the rollout of Alinity, the company’s innovative suite of diagnostic instruments, and expand test menus across its platforms for immunoassay, clinical chemistry and molecular testing.
Image Source: Zacks Investment Research
Progress With Diabetes Business: This business achieved organic sales growth of 17.3% in the fourth quarter of 2022 led by strong growth in FreeStyle Libre. In the quarter, sales of FreeStyle Libre were $1.1 billion. In the United States, where sales grew more than 40%, the company initiated the full launch of Libre 3. This latest device can automatically deliver up-to-the-minute glucose readings with more accuracy in the world’s smallest and thinnest wearable sensor. Abbott’s Libre sales reached $4.3 billion for the full-year 2022.
Downsides
Foreign Exchange Translation Impacts Sales: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues from outside the United States. The strengthening of the Euro and some other developed market currencies have constantly been hampering the company’s performance in the international markets.
Nutrition Product Recall Impedes Growth: Within Abbott’s Nutrition business, in the fourth quarter, worldwide Nutrition sales were down 5.7% on an organic basis, with an 11.8% slump in Pediatric Nutrition sales. The downside in worldwide Nutrition and Pediatric Nutrition sales can be attributed to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February.
Estimate Trend
Abbott has been witnessing a negative estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.5% down to $4.38.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $39.74 billion, suggesting an 8.9% decline from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Henry Schein, Inc. HSIC and Avanos Medical, Inc. AVNS.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 1.7% against the industry’s 17.5% growth in the past year.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 12.4% compared with the industry’s 10.9% decline over the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 13.7% compared with the industry’s 17.5% decline over the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Hologic, Inc. (HOLX) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the core Diagnostics arm. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. This expanded footprint drove strong growth and supported testing needs when flu and other respiratory infections surged late in 2021. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the core Diagnostics arm. Image Source: Zacks Investment Research Progress With Diabetes Business: This business achieved organic sales growth of 17.3% in the fourth quarter of 2022 led by strong growth in FreeStyle Libre. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the core Diagnostics arm. Image Source: Zacks Investment Research Progress With Diabetes Business: This business achieved organic sales growth of 17.3% in the fourth quarter of 2022 led by strong growth in FreeStyle Libre. | Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the core Diagnostics arm. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31109.0 | 2023-03-22 00:00:00 UTC | Guru Fundamental Report for ABT - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abt-peter-lynch-2 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
Additional Research Links
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31110.0 | 2023-03-21 00:00:00 UTC | S&P 500 Analyst Moves: ABT | ABT | https://www.nasdaq.com/articles/sp-500-analyst-moves%3A-abt | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #59 analyst pick, moving up by 2 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, Abbott Laboratories is lower by about 10.7%.
VIDEO: S&P 500 Analyst Moves: ABT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #59 analyst pick, moving up by 2 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #59 analyst pick, moving up by 2 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #59 analyst pick, moving up by 2 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #59 analyst pick, moving up by 2 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. |
31111.0 | 2023-03-21 00:00:00 UTC | Should You Invest in the iShares U.S. Medical Devices ETF (IHI)? | ABT | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-medical-devices-etf-ihi-5 | nan | nan | The iShares U.S. Medical Devices ETF (IHI) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Medical Devices segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $5.85 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. IHI seeks to match the performance of the Dow Jones U.S. Select Medical Equipment Index before fees and expenses.
The Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.45%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.47% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT).
The top 10 holdings account for about 64.37% of total assets under management.
Performance and Risk
The ETF has lost about -0.76% so far this year and is down about -13.45% in the last one year (as of 03/21/2023). In that past 52-week period, it has traded between $47.07 and $62.20.
The ETF has a beta of 0.84 and standard deviation of 23.50% for the trailing three-year period, making it a medium risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Medical Devices ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IHI is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. First Trust Indxx Medical Devices ETF has $1.94 million in assets, SPDR S&P Health Care Equipment ETF has $495.90 million. MDEV has an expense ratio of 0.70% and XHE charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Medical Devices ETF (IHI): ETF Research Reports
Abbott Laboratories (ABT) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports
First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.47% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $5.85 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. | Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.47% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. | Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.47% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.47% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. The iShares U.S. Medical Devices ETF (IHI) was launched on 05/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Medical Devices segment of the equity market. |
31112.0 | 2023-03-20 00:00:00 UTC | Abbott (ABT) Stock Moves 0.89%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-0.89%3A-what-you-should-know | nan | nan | In the latest trading session, Abbott (ABT) closed at $97.87, marking a +0.89% move from the previous day. This change traded in line with S&P 500. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 9.12% over the past month. This has lagged the Medical sector's loss of 4.48% and the S&P 500's loss of 3.9% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. In that report, analysts expect Abbott to post earnings of $0.98 per share. This would mark a year-over-year decline of 43.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Investors might also notice recent changes to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Abbott currently has a Forward P/E ratio of 22.14. This represents a premium compared to its industry's average Forward P/E of 21.89.
We can also see that ABT currently has a PEG ratio of 4.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, Abbott (ABT) closed at $97.87, marking a +0.89% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. We can also see that ABT currently has a PEG ratio of 4.35. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Abbott (ABT) closed at $97.87, marking a +0.89% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. | In the latest trading session, Abbott (ABT) closed at $97.87, marking a +0.89% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. We can also see that ABT currently has a PEG ratio of 4.35. | In the latest trading session, Abbott (ABT) closed at $97.87, marking a +0.89% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. We can also see that ABT currently has a PEG ratio of 4.35. |
31113.0 | 2023-03-18 00:00:00 UTC | Guru Fundamental Report for ABT - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abt-peter-lynch-1 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31114.0 | 2023-03-17 00:00:00 UTC | Abbott (ABT) Diabetes Arm Growth Robust Amid Macroeconomic Woes | ABT | https://www.nasdaq.com/articles/abbott-abt-diabetes-arm-growth-robust-amid-macroeconomic-woes | nan | nan | Abbott ABT is gaining from new product launches and strategic acquisitions. However, due to macroeconomic hazards, the business environment continues to be challenging. The stock carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has lost 15.6% compared with the industry’s 38% decline.
Abbott exited the fourth quarter of 2022, with better-than-expected earnings and revenues. In Diagnostics, COVID testing sales were $1.1 billion in the fourth quarter. Excluding COVID testing sales, worldwide diagnostics grew more than 11% in the quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year.
During the pandemic, Abbott significantly expanded the install base of ID NOW and opened new testing channels. This expanded footprint, drove strong growth and supported testing needs when flu and other respiratory infections surged late in 2021. During 2022, Abbott successfully continued with the rollout of Alinity, the company’s innovative suite of diagnostic instruments, and expanded test menus across its platforms for immunoassay, clinical chemistry and molecular testing.
Within EPD, sales increased 8% organically in the fourth quarter led by double-digit growth across several countries, including India, China, Brazil, and Mexico, and broad-based strength across several therapeutic areas.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
In Medical Device, sales grew 7.5% globally. In the United States, led by double-digit growth in Electrophysiology, Structural Heart and Diabetes Care.
Within Diabetes Care specifically, fourth-quarter sales of FreeStyle Libre grew more than 40% in the United States. Global Libre sales touched $4.3 billion in 2022.
Abbott currently forecasts total organic sales growth, excluding the impact of COVID testing-related sales, to be in high-single digits in 2023.
In a major update, Abbott recently entered into a definitive agreement to acquire Cardiovascular Systems, a medical device company with an advanced atherectomy system used in treating peripheral and coronary artery disease.
On the flip side, Abbott’s fourth-quarter revenues and earnings declined on a year-over-year basis. Total sales were negatively impacted by COVID testing-related sales decline. COVID testing sales were $1.1 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally and ID NOW globally, comprising approximately 95% of the sales.
Moreover, the decline in U.S. infant formula sales due to manufacturing disruptions dented the quarter’s sales further. We note that a manufacturing stoppage was initiated in February 2022 of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.
Within Medical Device, international sales were negatively impacted by intermittent COVID lockdowns in China, as well as supply constraints in certain areas.
Within Abbott’s Nutrition business, in the fourth quarter, worldwide Nutrition sales were down 5.7% on an organic basis, with an 11.8% slump in Pediatric Nutrition sales. The downside in total worldwide Nutrition and Pediatric Nutrition sales can be attributed to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February.
A challenging macro environment, adverse currency translation and stubborn inflationary situation severely impacted the company’s profitability in the fourth quarter.
Key Picks
Some better-ranked stocks in the overall healthcare sector include Haemonetics Corporation HAE, TerrAscend Corp. TRSSF and Akerna Corp. KERN. Haemonetics and TerrAscend both sport a Zacks Rank #1 (Strong Buy), while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has surged 42.1% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to 2.91 for 2023 and from $3.02 per share to $3.28 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in each of the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Akerna Corp. (KERN) : Free Stock Analysis Report
TerrAscend Corp. (TRSSF) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT is gaining from new product launches and strategic acquisitions. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Within Medical Device, international sales were negatively impacted by intermittent COVID lockdowns in China, as well as supply constraints in certain areas. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT is gaining from new product launches and strategic acquisitions. Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote In Medical Device, sales grew 7.5% globally. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT is gaining from new product launches and strategic acquisitions. COVID testing sales were $1.1 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally and ID NOW globally, comprising approximately 95% of the sales. | Abbott ABT is gaining from new product launches and strategic acquisitions. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. |
31115.0 | 2023-03-17 00:00:00 UTC | SpaceX, Netflix, Boeing to join "biggest-ever" US business mission to Vietnam | ABT | https://www.nasdaq.com/articles/spacex-netflix-boeing-to-join-biggest-ever-us-business-mission-to-vietnam | nan | nan | By Francesco Guarascio
HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said.
More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters.
The delegation is a sign of rising interest in the global manufacturing hub, which is benefiting from a shift away from China amid Sino-U.S. trade friction.
Vietnam, with a population of 100 million people, also has a rapidly-growing consumer market as its middle class expands.
"This is the biggest-ever mission in Vietnam," said Vu Tu Thanh, the US-ASEAN Business Council's representative in the country, noting that the body had been organising these events for three decades.
Streaming giant Netflix NFLX.O, which Reuters last month reported was planning to open an office in Vietnam, is among the companies joining the trip. Netflix did not respond to a request for comment.
Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam.
In December, the same companies held talks with Vietnamese government officials about the possible sale of helicopters and drones, as the country seeks new suppliers and the Ukraine conflict strains the capabilities of Russia, for decades Vietnam's main military partner.
"Helicopters is one of the things the companies hope to sell to the Vietnamese," Thanh said, although he cautioned that defence deals took time to be completed and no immediate breakthrough was expected.
Boeing said in a statement that its discussions with officials would focus on its growing partnership with Vietnam and ways to strengthen the country's aviation and defence capabilities.
Lockheed Martin and Bell did not respond to requests for comment.
The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it.
Some companies are also coming to get a better sense of the political situation after recent turmoil in the Communist-Party led country, including the resignation of the president in January, Thanh added.
Participants will have meetings with Vietnam's top political and regulatory leadership, including with Prime Minister Pham Minh Chinh.
Thanh said some companies were interested in Vietnam as a manufacturing hub and in providing services to increasingly wealthy consumers at a time when economic growth reached more than 8% last year.
Among them is SpaceX, which is looking to sell its satellite internet services to Vietnam and other countries in the region, Thanh said. SpaceX did not respond to a request for comment.
The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed.
(Reporting by Francesco Guarascio; Editing by Jamie Freed)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam. | The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters. | The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam. | The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters. |
31116.0 | 2023-03-16 00:00:00 UTC | Notable ETF Inflow Detected - ITOT, TMO, COST, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-itot-tmo-cost-abt | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $146.5 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 452,050,000 to 453,750,000). Among the largest underlying components of ITOT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $85.81. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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FRSG market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.5%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of ITOT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $146.5 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 452,050,000 to 453,750,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $85.81. | Among the largest underlying components of ITOT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $146.5 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 452,050,000 to 453,750,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $85.81. | Among the largest underlying components of ITOT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $146.5 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 452,050,000 to 453,750,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $85.81. |
31117.0 | 2023-03-15 00:00:00 UTC | Guru Fundamental Report for ABT - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abt-peter-lynch-0 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31118.0 | 2023-03-14 00:00:00 UTC | Abbott (ABT) Gains But Lags Market: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-but-lags-market%3A-what-you-should-know-12 | nan | nan | Abbott (ABT) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 1.68% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 9.52% in the past month. In that same time, the Medical sector lost 5.62%, while the S&P 500 lost 6.68%.
Abbott will be looking to display strength as it nears its next earnings release. On that day, Abbott is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 43.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.64 billion, down 18.98% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott currently has a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 22.41. This represents a premium compared to its industry's average Forward P/E of 21.74.
Also, we should mention that ABT has a PEG ratio of 4.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. Also, we should mention that ABT has a PEG ratio of 4.4. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott (ABT) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott (ABT) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. | Abbott (ABT) closed at $98.55 in the latest trading session, marking a +0.37% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. Also, we should mention that ABT has a PEG ratio of 4.4. |
31119.0 | 2023-03-14 00:00:00 UTC | Healthcare Stocks With at Least 30 Years of Dividend Increases | ABT | https://www.nasdaq.com/articles/healthcare-stocks-with-at-least-30-years-of-dividend-increases | nan | nan | While it is not the only factor to consider, the annual dividend can solidify whether a stock will benefit you financially. And among the many industry sectors to invest in, healthcare can be one of the most stable, especially regarding the dividend yield. Indeed, big dogs like Johnson & Johnson (NYSE: JNJ), AbbVie, Inc. (NYSE: ABBV), and Abbott Laboratories (NYSE: ABT) have been increasing their dividends for more than 50 years; and ABBV is considered one of the best dividend stocks out there.
The Marketbeat dividend calculator could help you determine if a stock is right for you. In addition, here are some strategies for picking the best dividend stocks [regardless of the industry]. Meanwhile, several lesser-known health sector stocks have paid increasing dividends for at least the last 30 years, dividend aristocrats and one qualifying as a dividend king.
Becton Dickinson & Company: 51 years
Of all the companies on this list, Becton Dickinson & Co. (NYSE: BDX) may seem the most obscure, but they are obviously among the most prolific. BDX is paying a $3.64 annual dividend at a 3-year annualized growth rate of 4.33%. The dividend payout ratio is 68.68%, with a 1.58% dividend yield.
More importantly, while stock value is down around 10% on both the quarter, and the year, the medical device manufacturer projects earnings will grow 10.91% by this time next year. Of course, its current share price ($229.71) is higher than that of the big three mentioned above, but its Moderate Buy rating certainly makes it worth a look.
Medtronic PLC: 46 years
The world-class medical technology company Medtronic PLC (NYSE: MDT) has an annual dividend of $2.72 at a 3.55% yield. And while its 7.99% annualized 3-year growth rate is impressive, the 89.74% dividend payout ratio could turn some heads.
MDT's current share price is near the 52-week low, but its $90.72 price target does represent an 18.3% upside. That might make it an even more attractive price than the big dogs mentioned above. A 25.24 P/E is certainly strong, but earnings projections are mostly flat, so caution is advised if growth is your objective. Accordingly, MDT remains down 3.75% on the quarter and more than 26% since last year, which justifies its Hold rating.
Cardinal Health, Inc.: 37 years
Cardinal Health, Inc. (NYSE: CAH) has a sturdy record of acquisitions, the most recent of which was the $2.2 billion all-stock Bindley Western Industries. The company's steady growth has helped CAH pay a $1.98 annual dividend at a 2.82% yield. And while the 1.00% annualized 3-year growth rate is not as exciting, a 36.33% payout ratio makes up for it.
Analysts have given CAH a Hold rating, even though the current $71.19 share value is in the top 33% of the 52-week range. Earnings are projected to grow about 15%, and the $80.64 price target represents a 14% upside, but the stock has had a rocky year. The share price may be up more than 35% since last year but remains down about 10% in the last quarter.
Roper Technologies, Inc: 31 years
Medical and scientific imaging company Roper Technologies, Inc. (NYSE: ROP) is paying out an annual dividend of $2.73 at an impressive 3-year annualized growth of 10.20%. Sure, the 0.65% dividend yield may not be much to write home about, but the 6.41% dividend payout ratio still offers a consistent return.
ROP is down about 3% on all measures, so it may not be as impressive as other stocks on this list. Still, analysts give ROP a Moderate Buy rating. And while the $495.67 price target may represent an 18% upside, it is a pricey investment, especially with a less-impressive 9.09 P/E. With earnings projected to grow only about 5%, ROP might not be as lucrative as other stocks on this list, at least in the short term.
West Pharmaceutical Services, Inc.: 30 Years
Specializing in the manufacturing, packaging, and delivery of injectable drugs, West Pharmaceutical Services, Inc. (NYSE: WST) saw a production boost during the Covid-19 pandemic. This may have maintained its annualized 3-year dividend growth rate of 14.06% and a 9.84% dividend payout ratio. However, its annual dividend is only $0.67 at a slight yield of 0.24%, so WST may not be as exciting as those mentioned above.
At $314.55, WST’s share price is at the dead center of the 52-week range but might be a little high for some. WST remains about 33% up on both the quarter and the year, so the stock is improving. Earnings are down, unfortunately, but they are also expected to improve–by more than 14%–next year. That said, the $291.25 price target represents a 7.4% downside. So while the dividend is strong, it makes sense that analysts have given the stock a HOLD rating.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Indeed, big dogs like Johnson & Johnson (NYSE: JNJ), AbbVie, Inc. (NYSE: ABBV), and Abbott Laboratories (NYSE: ABT) have been increasing their dividends for more than 50 years; and ABBV is considered one of the best dividend stocks out there. Of course, its current share price ($229.71) is higher than that of the big three mentioned above, but its Moderate Buy rating certainly makes it worth a look. And while its 7.99% annualized 3-year growth rate is impressive, the 89.74% dividend payout ratio could turn some heads. | Indeed, big dogs like Johnson & Johnson (NYSE: JNJ), AbbVie, Inc. (NYSE: ABBV), and Abbott Laboratories (NYSE: ABT) have been increasing their dividends for more than 50 years; and ABBV is considered one of the best dividend stocks out there. Medtronic PLC: 46 years The world-class medical technology company Medtronic PLC (NYSE: MDT) has an annual dividend of $2.72 at a 3.55% yield. Cardinal Health, Inc.: 37 years Cardinal Health, Inc. (NYSE: CAH) has a sturdy record of acquisitions, the most recent of which was the $2.2 billion all-stock Bindley Western Industries. | Indeed, big dogs like Johnson & Johnson (NYSE: JNJ), AbbVie, Inc. (NYSE: ABBV), and Abbott Laboratories (NYSE: ABT) have been increasing their dividends for more than 50 years; and ABBV is considered one of the best dividend stocks out there. Meanwhile, several lesser-known health sector stocks have paid increasing dividends for at least the last 30 years, dividend aristocrats and one qualifying as a dividend king. Roper Technologies, Inc: 31 years Medical and scientific imaging company Roper Technologies, Inc. (NYSE: ROP) is paying out an annual dividend of $2.73 at an impressive 3-year annualized growth of 10.20%. | Indeed, big dogs like Johnson & Johnson (NYSE: JNJ), AbbVie, Inc. (NYSE: ABBV), and Abbott Laboratories (NYSE: ABT) have been increasing their dividends for more than 50 years; and ABBV is considered one of the best dividend stocks out there. Earnings are projected to grow about 15%, and the $80.64 price target represents a 14% upside, but the stock has had a rocky year. This may have maintained its annualized 3-year dividend growth rate of 14.06% and a 9.84% dividend payout ratio. |
31120.0 | 2023-03-13 00:00:00 UTC | Top Research Reports for AbbVie, NextEra Energy & ConocoPhillips | ABT | https://www.nasdaq.com/articles/top-research-reports-for-abbvie-nextera-energy-conocophillips | nan | nan | Monday, March 13, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). The company is facing concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
Slowing consumer demand due to economic pressures is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
However, AbbVie has several new drugs in its portfolio, which have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Shares of NextEra Energy have declined -7.9% over the past year against the Zacks Utility - Electric Power industry’s decline of -9.2%. The company’s nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds.
(You can read the full research report on NextEra Energy here >>>)
Shares of ConocoPhillips have gained +7.9% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s gain of +10.4%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips projects its 2023 production at 1.76-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.
However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
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Canadian Pacific's (CP) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Canadian Pacific's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.
Intercontinental (ICE) Banks on Buyouts Amid High Costs
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Business Model & Pro-Investor Steps Boost Interpublic (IPG)
The Zacks Analyst is optimistic about Interpublic's digital capabilities, diversified business model and geographic reach. Moreover, its shareholder-friendly steps are tailwinds.
Theravance (TBPH) Progress Towards Its Pipelines Is Encouraging
While Theravance's collaboration revenues of Yupelri is driving its topline, Zacks Analysts is encouraged by its progress in development of pipeline candidate, ampreloxetine.
New Downgrades
Altice (ATUS) Plagued by Waning Demand, High Programing Costs
Per the Zacks analyst, Altice is likely to be plagued by escalating programing costs per customer due to an increase in contractual rates and waning demand owing to cheaper available alternatives.
United Natural (UNFI) Hurt by High Costs, Supply-Chain Woes
Per the Zacks analyst, United Natural is battling cost inflation and supply-chain woes. Management cut fiscal 2023 earnings view as it expects similar profitability trends through the rest of the year
Capri Holdings' (CPRI) Grapples With Inflation & Other Woes
Per the Zacks analyst, Capri Holdings' performance has been hurt by inflationary headwinds, shift in consumer demand patterns, and weakness in wholesale channel. The company cuts fiscal 2023 view.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE). | Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Steady Investment & Renewable Focus Aid NextEra Energy (NEE) ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets Featured Reports Abbott's (ABT) Core Diagnostics Grows amid Forex Woes The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. |
31121.0 | 2023-03-13 00:00:00 UTC | Abbott (ABT) to Pair CGM Sensors & AID System on FDA Clearance | ABT | https://www.nasdaq.com/articles/abbott-abt-to-pair-cgm-sensors-aid-system-on-fda-clearance | nan | nan | Abbott Laboratories ABT recently announced that its modified continuous glucose monitoring (CGM) system sensors, FreeStyle Libre 2 and FreeStyle Libre 3, have received FDA clearance for integration with automated insulin delivery (AID) systems.
The company’s AID systems help people in their daily diabetes monitoring by automatically adjusting and administering the insulin delivered by an insulin pump based on real-time glucose data from their FreeStyle Libre 2 or FreeStyle Libre 3 sensors.
The latest development, while advancing Abbott’s Diabetes Care business line, upholds its target to effortlessly serve diabetes patients by providing them with an affordable option to pair with their insulin pumps.
About FreeStyle Libre System
The FreeStyle Libre portfolio of Abbott is a revolutionary system, which eliminates the hurdles of traditional glucose monitoring by providing affordable and easily accessible breakthrough technology.
Having served nearly 4.5 million people across more than 60 countries, the modified FreeStyle Libre 2 and FreeStyle Libre 3 sensors are expected to be available in the United States towards the end of the year.
The modified sensors will eventually replace the existing sensors of the Freestyle Libre portfolio which are currently available in the U.S. markets.
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More on the News
Additionally, the modified sensors were also cleared for use by children as young as two years old and for wear time of up to 15 days. Presently, the FreeStyle Libre 2 and FreeStyle Libre 3 sensors, which are available in the domestic markets, are approved for four years and older children and have a wear time of up to 14 days.
Further, the existing FreeStyle Libre 2 and FreeStyle Libre 3 sensors and the modified sensors are both allowed clearance to be used by pregnant women with Type 1, Type 2 and gestational diabetes.
To speed up the process of integrating insulin pumps with the modified sensors throughout the United States and other countries, Abbott has started partnering with leading manufacturers, Insulet and Tandem. The company’s FreeStyle Libre 3 sensor is already authorized to work with the mylife Loop solution from Ypsomed and CamDiab in Germany. Additional launches in the UK, Switzerland and the Netherlands are planned for the first half of this year.
Industry Prospects
Per a Research report, the global diabetes devices market size was valued at $26.7 billion in 2021 and is expected to witness a compound annual growth rate (CAGR) of 8.2% by 2030.
The increasing adoption of insulin delivery devices and rising prevalence of diabetes are driving market growth. Leading manufacturers are focusing on technological innovations and the development of advanced products to gain a substantial share of the market.
Recent Developments
Earlier this month, Abbott received FDA clearance for the first-ever commercially available laboratory traumatic brain injury blood test, making it widely available to hospitals in the United States. The test currently runs on Abbott's Alinity i-STAT laboratory instrument and will provide clinicians with an objective way to quickly assess individuals with mild concussions.
Abbott also presented late-breaking data from the landmark COAPT trial for MitraClip – the company’s leading therapy to treat leaky valves in people with mitral regurgitation (MR). The five-year results show that MitraClip is safe and effective and can cut the rate of hospitalizations while improving survival for heart failure patients with severe secondary or functional MR.
Price Performance
In the past six months, ABT has mostly underperformed its industry. Shares of the company have declined 8.3% compared with the industry’s fall of 5.8%.
Zacks Rank and Key Picks
Abbott Laboratories carries a Zacks Rank #3 (Hold).
Some better ranked stocks in the overall healthcare sector are Haemonetics Corporation HAE, TerrAscend Corp. TRSSF and Akerna Corp. KERN. Haemonetics and TerrAscend sport a Zacks Rank #1 (Strong Buy), while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Haemonetics’ stock has risen 45% in the past year. Earnings estimates for Haemonetics have increased from $2.91 per share to $2.94 for 2023, and from $3.28 per share to $3.29 for 2024 in the past 30 days.
HAE’s earnings beat estimates in all the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have decreased from a loss of 10 cents per share to a loss of 9 cents per share in the past 30 days. Shares of TerrAscend have declined 66.9% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in all the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The five-year results show that MitraClip is safe and effective and can cut the rate of hospitalizations while improving survival for heart failure patients with severe secondary or functional MR. Price Performance In the past six months, ABT has mostly underperformed its industry. Abbott Laboratories ABT recently announced that its modified continuous glucose monitoring (CGM) system sensors, FreeStyle Libre 2 and FreeStyle Libre 3, have received FDA clearance for integration with automated insulin delivery (AID) systems. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. | Abbott Laboratories ABT recently announced that its modified continuous glucose monitoring (CGM) system sensors, FreeStyle Libre 2 and FreeStyle Libre 3, have received FDA clearance for integration with automated insulin delivery (AID) systems. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-year results show that MitraClip is safe and effective and can cut the rate of hospitalizations while improving survival for heart failure patients with severe secondary or functional MR. Price Performance In the past six months, ABT has mostly underperformed its industry. | Abbott Laboratories ABT recently announced that its modified continuous glucose monitoring (CGM) system sensors, FreeStyle Libre 2 and FreeStyle Libre 3, have received FDA clearance for integration with automated insulin delivery (AID) systems. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-year results show that MitraClip is safe and effective and can cut the rate of hospitalizations while improving survival for heart failure patients with severe secondary or functional MR. Price Performance In the past six months, ABT has mostly underperformed its industry. | Abbott Laboratories ABT recently announced that its modified continuous glucose monitoring (CGM) system sensors, FreeStyle Libre 2 and FreeStyle Libre 3, have received FDA clearance for integration with automated insulin delivery (AID) systems. The five-year results show that MitraClip is safe and effective and can cut the rate of hospitalizations while improving survival for heart failure patients with severe secondary or functional MR. Price Performance In the past six months, ABT has mostly underperformed its industry. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31122.0 | 2023-03-10 00:00:00 UTC | Is Invesco Defensive Equity ETF (DEF) a Strong ETF Right Now? | ABT | https://www.nasdaq.com/articles/is-invesco-defensive-equity-etf-def-a-strong-etf-right-now-5 | nan | nan | The Invesco Defensive Equity ETF (DEF) made its debut on 12/15/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, DEF has amassed assets over $231.74 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the Guggenheim Defensive Equity Index.
The Invesco Defensive Equity Index is designed to provide exposure to securities of large-cap US issuers.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.54% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.50%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector - about 19.70% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC).
DEF's top 10 holdings account for about 9.38% of its total assets under management.
Performance and Risk
The ETF has lost about -1.84% and is down about -1.39% so far this year and in the past one year (as of 03/10/2023), respectively. DEF has traded between $60.13 and $72.60 during this last 52-week period.
The ETF has a beta of 0.85 and standard deviation of 22.04% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Defensive Equity ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $75.06 billion in assets, Invesco QQQ has $155.91 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Invesco Defensive Equity ETF (DEF): ETF Research Reports
Abbott Laboratories (ABT) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Invesco Defensive Equity ETF (DEF) made its debut on 12/15/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. | Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). The Invesco Defensive Equity ETF (DEF) made its debut on 12/15/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Invesco Defensive Equity ETF (DEF) made its debut on 12/15/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. |
31123.0 | 2023-03-09 00:00:00 UTC | 2 Top Dividend Stocks You Can Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/2-top-dividend-stocks-you-can-buy-and-hold-forever-7 | nan | nan | Depending on your investing objectives, dividend growth investing can be a great investing strategy. When stocks are selected properly and your portfolio is diversified, your passive income can steadily grow over time.
The most proven dividend-paying companies have grown their payouts for at least 50 straight years, and are referred to as Dividend Kings. Here are two dividend growers that are so dependable you should be able to count on them to provide you with ever higher dividend income for the next few decades.
Image source: Getty Images.
1. PepsiCo: A titan of the global snacks and beverages industry
Everybody around the world knows PepsiCo (NASDAQ: PEP) for the countless billion-dollar snack foods and beverage brands within its portfolio. These include Lay's potato chips, the eponymous Pepsi-Cola, Doritos chips, and the Gatorade sports drink. This stacked product lineup has paid dividends for shareholders over the years.
Most recently, the company just announced its 51st consecutive year of dividend growth with a 10% hike in the quarterly dividend, which will be paid in June of this year.
Considering that PepsiCo's 2.7% dividend yield is well above the S&P 500 index's 1.7% yield, that's an especially generous dividend raise. And this double-digit increase means that if anything, dividend growth is speeding up from its nearly 8% annual rate over the last 10 years.
With its tremendous portfolio of brands and bolt-on acquisitions to bolster its growth prospects, it's not hard to see why management was confident enough to hand out such a big pay boost to shareholders. Analysts believe that PepsiCo's non-GAAP (adjusted) diluted earnings per share (EPS) will grow by 7.6% each year over the next five years. This should allow for many more years of strong dividend growth since the company's dividend payout ratio will be around 67% in 2023.
Best of all, dividend growth investors can scoop up shares of this consumer staple at a forward price-to-earnings (P/E) ratio of 22.1. For context, that's close to the non-alcoholic beverages industry average forward P/E ratio of 21.3. That's a more than reasonable premium valuation for a proven Dividend King such as PepsiCo in my opinion.
2. Abbott Laboratories: A quality healthcare company
Most people will probably recognize Abbott Laboratories (NYSE: ABT) for its BinaxNOW COVID-19 rapid tests and its consumer-facing brands like Similac infant formula. But the medical devices business headed up by the continuous glucose monitoring (CGM) brand named FreeStyle Libre plays just as much of a role in generating revenue for Abbott.
Overall, the company enjoys market-leading positions in multiple categories within the medical devices industry (e.g., CGMs, heart pumps, and stents), nutrition, and diagnostics.
Abbott's impressive product portfolio enabled it to be kind to its shareholders over the decades: The company's most recent 8.5% dividend increase declared last December was the 51st year in a row. When its dividend growth is paired with its market-topping 2% dividend yield, Abbott becomes a compelling dividend growth stock. This is especially the case considering that the company's payout ratio will come in at approximately 46% in 2023.
Along with the 8.3% annual adjusted diluted EPS growth that analysts expect from Abbott over the next five years, this sets it up for more solid dividend growth in the future. Topping it all off, shares of the stock can be picked up at a forward P/E ratio of 21.2. This is meaningfully below the medical devices industry average forward P/E ratio of 24.8, which makes Abbott a smart buy for dividend growth investors.
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Kody Kester has positions in Abbott Laboratories and PepsiCo. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories: A quality healthcare company Most people will probably recognize Abbott Laboratories (NYSE: ABT) for its BinaxNOW COVID-19 rapid tests and its consumer-facing brands like Similac infant formula. With its tremendous portfolio of brands and bolt-on acquisitions to bolster its growth prospects, it's not hard to see why management was confident enough to hand out such a big pay boost to shareholders. But the medical devices business headed up by the continuous glucose monitoring (CGM) brand named FreeStyle Libre plays just as much of a role in generating revenue for Abbott. | Abbott Laboratories: A quality healthcare company Most people will probably recognize Abbott Laboratories (NYSE: ABT) for its BinaxNOW COVID-19 rapid tests and its consumer-facing brands like Similac infant formula. For context, that's close to the non-alcoholic beverages industry average forward P/E ratio of 21.3. This is meaningfully below the medical devices industry average forward P/E ratio of 24.8, which makes Abbott a smart buy for dividend growth investors. | Abbott Laboratories: A quality healthcare company Most people will probably recognize Abbott Laboratories (NYSE: ABT) for its BinaxNOW COVID-19 rapid tests and its consumer-facing brands like Similac infant formula. Most recently, the company just announced its 51st consecutive year of dividend growth with a 10% hike in the quarterly dividend, which will be paid in June of this year. This should allow for many more years of strong dividend growth since the company's dividend payout ratio will be around 67% in 2023. | Abbott Laboratories: A quality healthcare company Most people will probably recognize Abbott Laboratories (NYSE: ABT) for its BinaxNOW COVID-19 rapid tests and its consumer-facing brands like Similac infant formula. This should allow for many more years of strong dividend growth since the company's dividend payout ratio will be around 67% in 2023. When its dividend growth is paired with its market-topping 2% dividend yield, Abbott becomes a compelling dividend growth stock. |
31124.0 | 2023-03-08 00:00:00 UTC | Abbott (ABT) Stock Sinks As Market Gains: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-sinks-as-market-gains%3A-what-you-should-know-3 | nan | nan | Abbott (ABT) closed at $99.40 in the latest trading session, marking a -0.58% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had lost 10.72% over the past month, lagging the Medical sector's loss of 3.71% and the S&P 500's loss of 4.07% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. In that report, analysts expect Abbott to post earnings of $0.98 per share. This would mark a year-over-year decline of 43.35%. Our most recent consensus estimate is calling for quarterly revenue of $9.64 billion, down 18.98% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Investors should also note any recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 22.82. Its industry sports an average Forward P/E of 22.39, so we one might conclude that Abbott is trading at a premium comparatively.
It is also worth noting that ABT currently has a PEG ratio of 4.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $99.40 in the latest trading session, marking a -0.58% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.48. | ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. Abbott (ABT) closed at $99.40 in the latest trading session, marking a -0.58% move from the prior day. It is also worth noting that ABT currently has a PEG ratio of 4.48. | Abbott (ABT) closed at $99.40 in the latest trading session, marking a -0.58% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.48. | Abbott (ABT) closed at $99.40 in the latest trading session, marking a -0.58% move from the prior day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.48. |
31125.0 | 2023-03-08 00:00:00 UTC | Guru Fundamental Report for ABBOTT LABORATORIES - Peter Lynch | ABT | https://www.nasdaq.com/articles/guru-fundamental-report-for-abbott-laboratories-peter-lynch | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31126.0 | 2023-03-08 00:00:00 UTC | Abbott (ABT) Gets FDA Nod for Alinity I Laboratory Test | ABT | https://www.nasdaq.com/articles/abbott-abt-gets-fda-nod-for-alinity-i-laboratory-test | nan | nan | Abbott Laboratories, Inc. ABT recently announced the receipt of the FDA approval for the Alinity i laboratory traumatic brain injury (TBI) blood test. This will be the first commercially available TBI blood test widely available to hospitals in the United States.
The recent development is likely to bolster Abbott’s Medical Device business.
About Alinity i Laboratory Test for TBI
The Alinity i TBI test measures complementary biomarkers in blood plasma and serum - Ubiquitin C-terminal Hydrolase L1 (UCH-L1) and Glial Fibrillary Acidic Protein (GFAP), that, in elevated concentrations, are tightly correlated to brain injury.
The test runs on Abbott's Alinity i laboratory instrument and helps clinicians to rapidly evaluate individuals with mild TBIs, also known as concussions.
Abbott's Alinity i TBI lab test provides a new reliable result in 18 minutes to support clinicians in quickly assessing concussion and triaging patients. The test measures two biomarkers in the blood that, in elevated concentrations, are tightly correlated to brain injury.
Benefits of Alinity i Laboratory Test
Per Abbott’s management, with the availability of this test in labs across the country, medical centers will be able to provide an objective blood test that can support concussion assessment. This will benefit doctors and people who are trying to find out if they have suffered a traumatic brain injury.
With the Alinity i FDA approval, a TBI blood test can now be run on Abbott's high throughput Alinity i laboratory instrument. The development will make TBI testing more available because the Alinity i instrument is widely used in hospitals and laboratories across the United States.
Image Source: Zacks Investment Research
Moreover, expanding the availability of the TBI blood test for lab-based instruments is a significant step in Abbott's strategy to ensure its tests are available in all locations where people need care for head injuries.
Industry Prospects
Per Grand View Research report, the global traumatic brain injuries assessment and management devices market size was $2.89 billion in 2021 and is expected to grow at a CAGR of 7.5% by 2030. The increasing prevalence of TBIs, rising patients’ preference for minimally invasive procedures and rising awareness regarding brain injury treatment are the factors driving the market.
Recent Developments
This month, Abbott presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the device’s long-term benefits in patients fighting heart failure. The five-year results from the landmark COAPT trial demonstrated that MitraClip is safe, effective and can reduce hospitalizations while improving survival for heart failure patients with severe secondary (or functional) MR.
This month, Abbott announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. Results from this study supported Navitor's recent FDA approval to treat people with severe aortic stenosis who are at high or extreme risk for open-heart surgery.
Price Performance
Shares of the company have lost 15.5% in the past six months compared with the industry’s fall of 37.4%.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector include Haemonetics Corporation HAE, TerrAscend Corp. TRSSF and Akerna Corp. KERN . Haemonetics and TerrAscend both sport a Zacks Rank #1, while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 42.1% in the past year. Earnings Estimates for Haemonetics have increased from $2.87 per share to 2.91 for 2023 and from $3.02 per share to $3.28 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in each of the last four quarters, reporting a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Akerna Corp. (KERN) : Free Stock Analysis Report
TerrAscend Corp. (TRSSF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories, Inc. ABT recently announced the receipt of the FDA approval for the Alinity i laboratory traumatic brain injury (TBI) blood test. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Prospects Per Grand View Research report, the global traumatic brain injuries assessment and management devices market size was $2.89 billion in 2021 and is expected to grow at a CAGR of 7.5% by 2030. | Abbott Laboratories, Inc. ABT recently announced the receipt of the FDA approval for the Alinity i laboratory traumatic brain injury (TBI) blood test. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Prospects Per Grand View Research report, the global traumatic brain injuries assessment and management devices market size was $2.89 billion in 2021 and is expected to grow at a CAGR of 7.5% by 2030. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories, Inc. ABT recently announced the receipt of the FDA approval for the Alinity i laboratory traumatic brain injury (TBI) blood test. About Alinity i Laboratory Test for TBI The Alinity i TBI test measures complementary biomarkers in blood plasma and serum - Ubiquitin C-terminal Hydrolase L1 (UCH-L1) and Glial Fibrillary Acidic Protein (GFAP), that, in elevated concentrations, are tightly correlated to brain injury. | Abbott Laboratories, Inc. ABT recently announced the receipt of the FDA approval for the Alinity i laboratory traumatic brain injury (TBI) blood test. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Benefits of Alinity i Laboratory Test Per Abbott’s management, with the availability of this test in labs across the country, medical centers will be able to provide an objective blood test that can support concussion assessment. |
31127.0 | 2023-03-08 00:00:00 UTC | Notable ETF Outflow Detected - XLV, TMO, ABT, DHR | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlv-tmo-abt-dhr | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $539.9 million dollar outflow -- that's a 1.4% decrease week over week (from 306,470,000 to 302,220,000). Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $126.41. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $539.9 million dollar outflow -- that's a 1.4% decrease week over week (from 306,470,000 to 302,220,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $126.41. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $539.9 million dollar outflow -- that's a 1.4% decrease week over week (from 306,470,000 to 302,220,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $126.41. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Danaher Corp (Symbol: DHR) is higher by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $539.9 million dollar outflow -- that's a 1.4% decrease week over week (from 306,470,000 to 302,220,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $126.41. |
31128.0 | 2023-03-08 00:00:00 UTC | Abbott (ABT) Reveals Favorable Data on Tricuspid Regurgitation | ABT | https://www.nasdaq.com/articles/abbott-abt-reveals-favorable-data-on-tricuspid-regurgitation | nan | nan | Abbott Laboratories ABT recently announced late-breaking data on the company’s TriClip transcatheter edge-to-edge repair (TEER) system. This is a first-of-its-kind minimally invasive device designed specifically for tricuspid heart valve repair.
The Triluminate Pivotal study evaluates the superiority of TriClip compared to traditional medical therapy in treating patients with severe, symptomatic tricuspid regurgitation (TR) who are at intermediate or greater risk for open-heart surgery.
With the favorable research findings within Abbott’s Structural Heart solutions arm, the business is expected to get a boost.
Per Abbott’s management, TR can be debilitating and life-threatening if left unaddressed. By repairing the damage caused by structural heart disease, TriClip G4 and Abbott’s latest technological innovations are showing positive improvements in people.
About the Abbott Triluminate Pivotal Trial
The Triluminate Pivotal trial is the first randomized, controlled clinical study to evaluate the safety and effectiveness of transcatheter repair with the TriClip system compared to medical therapy in people with severe TR.
The Triluminate Pivotal data establishes that TriClip is the first minimally invasive device therapy for the treatment of tricuspid regurgitation to provide durable improvements in TR severity and quality of life that go beyond taking medication to manage symptoms.
The primary endpoint of the study was a composite of all-cause mortality or tricuspid valve surgery, heart failure hospitalizations, and quality-of-life improvement measured by the Kansas City Cardiomyopathy Questionnaire (KCCQ) score, a self-assessment of social abilities, symptoms and quality of life.
Key Insights
Image Source: Zacks Investment Research
At present, TriClip is an investigational device in the United States and is approved for use in more than 50 countries, including Europe and Canada. Earlier, tricuspid regurgitation patients had limited treatment options. They were often not eligible for open-heart surgery due to multiple co-morbidities or other factors.
The trial met its composite primary endpoint which demonstrates that the TriClip system is far superior to the control group. This is primarily driven by improvement in quality of life. Mortality or tricuspid valve surgery and heart failure hospitalizations did not appear different between the groups at one year.
Further, the study revealed that there has been a significant improvement in quality of life. About 50% of the patients who received the device achieved nearly a 15-point improvement in the KCCQ score.
At 30 days, only 1.7% of patients who received the device experienced major adverse events, with no urgent surgery or endocarditis. Accordingly, this concluded a strong safety profile. There were no occurrences of device embolization or device thrombus.
More on the News
The results were presented at the 72nd Annual Scientific Session of the American College of Cardiology and the World Congress of Cardiology held in New Orleans during Mar 4-6, 2023. The data was simultaneously published in The New England Journal of Medicine.
At the American College of Cardiology, Abbott also presented late-breaking five-year results from the landmark Coapt trial of the MitraClip. The TEER device is the leading therapy to treat leaky valves in people with mitral regurgitation which demonstrates the long-term benefits of the device in patients battling heart failure for functional mitral regurgitation in heart failure.
Industry Prospects
Per a report by Grand View Research, the global structural heart devices market size is expected to register a CAGR of 9.15% by 2025. The large prevalence of target disease is contributing to the market growth.
Recent Developments
In February 2023, Abbott announced late-breaking data for its next-generation Navitor transcatheter aortic valve implantation system. Results from the study supported Navitor's recent U.S. Food and Drug Administration (FDA) approval for treating people with severe, symptomatic aortic stenosis who are at high or greater risk for open-heart surgery.
In the same month, Abbott also released the latest installment in the company’s multi-year ‘Beyond Intervention’ series of global healthcare market research designed to uncover challenges that arise within the patient journey of people living with cardiovascular disease and to identify opportunities for patient care improvement.
Price Performance
In the last six months, Abbott has underperformed its industry. The price of the company’s shares have declined 7.9% compared with the industry’s 4.4% fall.
Zacks Rank and Key Picks
Abbott Laboratories carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical sector are Haemonetics Corporation HAE, TerrAscend Corp. TRSSF and Akerna Corp. KERN. Haemonetics and TerrAscend sport a Zacks Rank #1 (Strong Buy), while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 31.4% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to $2.94 for 2023, and from $3.02 per share to $3.29 for 2024 in the past 30 days.
HAE’s earnings beat estimates in all the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have improved from a loss of 10 cents per share to loss of 9 cents per share in the past 30 days. Shares of TerrAscend have declined 65.9% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock declined 95.8% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in all the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Akerna Corp. (KERN) : Free Stock Analysis Report
TerrAscend Corp. (TRSSF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT recently announced late-breaking data on the company’s TriClip transcatheter edge-to-edge repair (TEER) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. The Triluminate Pivotal study evaluates the superiority of TriClip compared to traditional medical therapy in treating patients with severe, symptomatic tricuspid regurgitation (TR) who are at intermediate or greater risk for open-heart surgery. | Abbott Laboratories ABT recently announced late-breaking data on the company’s TriClip transcatheter edge-to-edge repair (TEER) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. The Triluminate Pivotal study evaluates the superiority of TriClip compared to traditional medical therapy in treating patients with severe, symptomatic tricuspid regurgitation (TR) who are at intermediate or greater risk for open-heart surgery. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT recently announced late-breaking data on the company’s TriClip transcatheter edge-to-edge repair (TEER) system. About the Abbott Triluminate Pivotal Trial The Triluminate Pivotal trial is the first randomized, controlled clinical study to evaluate the safety and effectiveness of transcatheter repair with the TriClip system compared to medical therapy in people with severe TR. | Abbott Laboratories ABT recently announced late-breaking data on the company’s TriClip transcatheter edge-to-edge repair (TEER) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Akerna Corp. (KERN) : Free Stock Analysis Report TerrAscend Corp. (TRSSF) : Free Stock Analysis Report To read this article on Zacks.com click here. The Triluminate Pivotal data establishes that TriClip is the first minimally invasive device therapy for the treatment of tricuspid regurgitation to provide durable improvements in TR severity and quality of life that go beyond taking medication to manage symptoms. |
31129.0 | 2023-03-07 00:00:00 UTC | 3 Value Stocks on Sale Now | ABT | https://www.nasdaq.com/articles/3-value-stocks-on-sale-now | nan | nan | Growth stocks have clearly led the market thus far in 2023, but will that continue? Several extremely high-quality value stocks have been selling off this year, offering investors an opportunity to buy at a discount.
On Tuesday morning, in front of Congress, Jerome Powell stated he believed there may be more rate hikes in the future than the market is pricing in. As we saw last year, when rates rise, growth stocks get hit, and value stocks get bid. Is this year setting up like that again?
Procter and Gamble PG, Johnson and Johnson JNJ, and Abbott Labs ABT, three of the most established corporations in the world, are on sale today. This reflects the fact that investors believe the next 12 months are going to be rosy for the economy. But if they are wrong it could be another bull run in value stocks.
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Procter and Gamble
Procter and Gamble, founded in 1837, is a multinational branded consumer packaged goods company. Its products range from cleaning products and detergents to shampoo and cold relief medicine. Most Americans, and some 170 other countries probably have a medicine cabinet filled with Procter and Gamble Products. It has a long history of steady earnings growth and stock appreciation.
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So far this year PG stock is down -8%, as many investors have rotated out of value into growth. Many investors are hoping for a Fed pivot, and lower interest rates. But that thesis is looking shaky.
Procter and Gamble was an outperformer for most of 2022, although it did deal with some volatility giving back much of its gains later in the year. But I would contend that this sell-off is an opportunity to buy shares.
Sales growth for the current quarter is expected to be down marginally, -0.3% YoY, with the next quarter expecting a resumption of growth. Furthermore, while the current quarter earnings expectations have been revised lower over the last 90 days it has only been a very small revision while all the other time frames have been revised higher over the same period.
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If PG were able to eek out a slight beat on sales next quarter, it will very likely cause investors to buy back into the stock. Many of the products PG makes are non-discretionary, so even in the case of an economic slowdown or higher inflation, consumers will continue to purchase PG goods.
Procter and Gamble currently trades at a one-year forward earnings multiple of 24x, which is in line with its five-year median of 24x. PG offers a dividend yield of 2.6%. It has raised its dividend an average of 6.5% annually over the last five years.
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Johnson and Johnson
Johnson and Johnson is a deeply diversified pharmaceutical, medical devices, and consumer products company that was founded in 1886. JNJ’s brands include Tylenol, Nicorette, and Band-aid among many other notable names. Its pharmaceuticals range from psychological treatments to Covid vaccines, and MedTech does everything from stroke treatment to orthopedics.
Johnson and Johnson stock has a long history of earnings growth, dividend growth, and price appreciation, returning an average of 10% annually over the last 30 years. So far this year, JNJ stock has struggled though, down -12.5% YTD.
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Johnson and Johnson is trading at a very reasonable valuation. At 14x one-year forward earnings it is below its 10-year median of 17x. Over the last 10 years the only time the valuation was lower was during the Covid pandemic low. JNJ offers a dividend yield of 2.9%, which it has raised an average of 6% annually over the last five years.
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JNJ, like PG, has had slight downgrades in the current quarter earnings expectations, although future timeframes are being upgraded. Additionally current quarter sales are still expecting slight growth, which will accelerate over the next few years quarters.
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Because of the non-discretionary nature of JNJ products, the company should remain very robust though many different economic regimes. So, if investors are looking for some defensive allocations in their portfolio, I think JNJ fits the bill.
Abbott Laboratories
Abbott Laboratories is another company founded in the 1800s, with a long history of earnings growth, dividend growth, and consistent stock appreciation. Over the last 25 years ABT stock has provided an average annual return of 10%. Additionally, management has raised dividends an average of 14% annually over the last 5 years.
Abbott Labs discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Products sold by Abbott are critical in the treatment of many health issues ranging from glucose monitoring for diabetes, to heart pumps for cardiovascular disease treatment.
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Currently trading at a one-year forward earnings multiple of 23x, ABT stock is just below its five-year median of 24x. So far this year ABT stock is down -8.2%, and over the last two years is down -10%. This has all happened while both earnings and sales have increased 45% and 24% respectively over the two-year period.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Procter and Gamble PG, Johnson and Johnson JNJ, and Abbott Labs ABT, three of the most established corporations in the world, are on sale today. Over the last 25 years ABT stock has provided an average annual return of 10%. Image Source: Zacks Investment Research Currently trading at a one-year forward earnings multiple of 23x, ABT stock is just below its five-year median of 24x. | Image Source: Zacks Investment Research Currently trading at a one-year forward earnings multiple of 23x, ABT stock is just below its five-year median of 24x. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report To read this article on Zacks.com click here. Procter and Gamble PG, Johnson and Johnson JNJ, and Abbott Labs ABT, three of the most established corporations in the world, are on sale today. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report To read this article on Zacks.com click here. Procter and Gamble PG, Johnson and Johnson JNJ, and Abbott Labs ABT, three of the most established corporations in the world, are on sale today. Over the last 25 years ABT stock has provided an average annual return of 10%. | So far this year ABT stock is down -8.2%, and over the last two years is down -10%. Procter and Gamble PG, Johnson and Johnson JNJ, and Abbott Labs ABT, three of the most established corporations in the world, are on sale today. Over the last 25 years ABT stock has provided an average annual return of 10%. |
31130.0 | 2023-03-07 00:00:00 UTC | Abbott (ABT) Makes Progress in the TAVI Space With Navitor | ABT | https://www.nasdaq.com/articles/abbott-abt-makes-progress-in-the-tavi-space-with-navitor | nan | nan | Abbott ABT recently announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. The company announced late-breaking data for Navitor during presentations at the annual Cardiovascular Research Technologies (CRT) meeting held in Washington, D.C. (Feb 25-28, 2023).
Results from this study supported Navitor's recent FDA approval to treat people with severe aortic stenosis who are at high or extreme risk for open-heart surgery.
More About the Study
Following the development of Abbott's next-generation TAVI system, the company launched the PORTICO NG (Next Generation) study. This prospective, multicenter, international, single-arm trial supports the FDA approval of the Navitor TAVI system that was received back in January 2023.
PORTICO NG specifically demonstrates the safety of the Navitor TAVI system and its effectiveness in minimizing blood leakage around the valve implant.
In this regard, we note that the Navitor TAVI system, the latest addition to the company's comprehensive transcatheter structural heart portfolio, offers less-invasive treatment options for some of the most common and serious heart diseases.
Navitor’s unique fabric cuff (NaviSeal) is expected to reduce or eliminate the backflow of blood around the valve frame, known as the paravalvular leak. Additionally, the new device is the only self-expanding TAVI system with leaflets within the native valve. This design is expected to aid in improving access to coronary arteries to facilitate future procedures for treating coronary artery disease.
The Amplatzer Amulet LAA Update
Abbott also showcased late-breaking data for the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder at the annual CRT meeting. This study highlights the benefits of this device's immediate and complete closure of the LAA for patients with atrial fibrillation (AFib) at risk of stroke.
According to the company, the Amulet IDE trial’s findings demonstrated that the Amplatzer Amulet LAA Occluder with dual-seal technology (consisting of a lobe or piece to fill the cavity of the LAA and a disc to seal off the opening into the LAA) had fewer unresolved, severe peri-device leaks (PDLs), where blood leaks around the implant, compared to Boston Scientific's BSX Watchman‡ device that has a single component to close the LAA.
Per Abbott, severe PDLs with Amulet were less commonly associated with adverse events and deaths than BSX’s Watchman.
Competitive Niche in Transcatheter Aortic Valve Space
Per a report by Allied Market Research, the global TAVI market was valued at $4,559 million in 2020 and is anticipated to reach $16,937 million by 2030 at a CAGR of 14%. Factors like the increase in the prevalence of aortic stenosis, rise in demand for various TAVI procedures and rise in the elderly population are likely to drive the market.
Boston Scientific’s WATCHMAN Left Atrial Appendage Closure Device sales grew 22% organically in the last-reported fourth quarter of 2022. Strong utilization in the United States was supported by the DAPT label expansion. Importantly, the company completed the enrollment of the CHAMPION-AF trial ahead of schedule. This head-to-head trial versus novel oral anticoagulation has the potential to more than triple the number of patients indicated for WATCHMAN FLEX in 2027 and beyond.
Edwards Lifesciences EW, within TAVR in 2022, received approval and launched the innovative SAPIEN 3 Ultra RESILIA valve. The company continued to advance enrollment in the PROGRESS pivotal trial for moderate AS patients and gained significant learnings from the Alliance pivotal trial to study the next-generation TAVR technology, SAPIEN X4. These transformative developments reinforce Edwards Lifesciences’ long-term confidence in the strong growth of transcatheter-based aortic valve interventions.
Medtronic MDT, at the same time, despite healthcare staffing challenges, is seeing great physician reception for the company’s Evolut FX system, which just completed its full quarter launch in the United States. Evolut FX combines industry-leading durability with enhanced and predictable valve deployment. In addition, data presented at PCR London Valves showed that Evolut FX’s Commissure alignment has improved significantly, which is important for coronary access and valve hemodynamics. Medtronic is currently working to seek Evolut FX’s approval in the Japanese and European markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT recently announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. Results from this study supported Navitor's recent FDA approval to treat people with severe aortic stenosis who are at high or extreme risk for open-heart surgery. | Abbott ABT recently announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. The Amplatzer Amulet LAA Update Abbott also showcased late-breaking data for the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder at the annual CRT meeting. | Abbott ABT recently announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. According to the company, the Amulet IDE trial’s findings demonstrated that the Amplatzer Amulet LAA Occluder with dual-seal technology (consisting of a lobe or piece to fill the cavity of the LAA and a disc to seal off the opening into the LAA) had fewer unresolved, severe peri-device leaks (PDLs), where blood leaks around the implant, compared to Boston Scientific's BSX Watchman‡ device that has a single component to close the LAA. | Abbott ABT recently announced significant progress with Navitor, the company’s latest-generation transcatheter aortic valve implantation (TAVI) system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. The company continued to advance enrollment in the PROGRESS pivotal trial for moderate AS patients and gained significant learnings from the Alliance pivotal trial to study the next-generation TAVR technology, SAPIEN X4. |
31131.0 | 2023-03-07 00:00:00 UTC | U.S. FDA clears Abbott's blood test for concussions | ABT | https://www.nasdaq.com/articles/u.s.-fda-clears-abbotts-blood-test-for-concussions | nan | nan | Adds details, background
March 7 (Reuters) - The U.S. Food and Drug Administration has cleared Abbott Laboratories' ABT.N blood test that would help doctors assess traumatic brain injury (TBI), commonly known as concussions, the company said on Tuesday.
The clearance marks the first commercially available laboratory blood test for TBI, according to the company, helping the doctors to rule out need for a CT scan in patients with mild TBI.
TBIs are caused by blow or whiplash to the head and can pose risk of short- and long-term effects that can include impairment of memory and movement.
Abbott already has a plasma test for TBI and was cleared by the FDA in 2021.
The new test measures two indicators in the blood that, in elevated concentrations, are tightly correlated to brain injury, the company said.
(Reporting by Raghav Mahobe in Bengaluru; Editing by Shailesh Kuber)
((Raghav.Mahobe@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details, background March 7 (Reuters) - The U.S. Food and Drug Administration has cleared Abbott Laboratories' ABT.N blood test that would help doctors assess traumatic brain injury (TBI), commonly known as concussions, the company said on Tuesday. TBIs are caused by blow or whiplash to the head and can pose risk of short- and long-term effects that can include impairment of memory and movement. The new test measures two indicators in the blood that, in elevated concentrations, are tightly correlated to brain injury, the company said. | Adds details, background March 7 (Reuters) - The U.S. Food and Drug Administration has cleared Abbott Laboratories' ABT.N blood test that would help doctors assess traumatic brain injury (TBI), commonly known as concussions, the company said on Tuesday. The clearance marks the first commercially available laboratory blood test for TBI, according to the company, helping the doctors to rule out need for a CT scan in patients with mild TBI. The new test measures two indicators in the blood that, in elevated concentrations, are tightly correlated to brain injury, the company said. | Adds details, background March 7 (Reuters) - The U.S. Food and Drug Administration has cleared Abbott Laboratories' ABT.N blood test that would help doctors assess traumatic brain injury (TBI), commonly known as concussions, the company said on Tuesday. The clearance marks the first commercially available laboratory blood test for TBI, according to the company, helping the doctors to rule out need for a CT scan in patients with mild TBI. (Reporting by Raghav Mahobe in Bengaluru; Editing by Shailesh Kuber) ((Raghav.Mahobe@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details, background March 7 (Reuters) - The U.S. Food and Drug Administration has cleared Abbott Laboratories' ABT.N blood test that would help doctors assess traumatic brain injury (TBI), commonly known as concussions, the company said on Tuesday. TBIs are caused by blow or whiplash to the head and can pose risk of short- and long-term effects that can include impairment of memory and movement. (Reporting by Raghav Mahobe in Bengaluru; Editing by Shailesh Kuber) ((Raghav.Mahobe@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31132.0 | 2023-03-07 00:00:00 UTC | Abbott's (ABT) MitraClip Device Shows Favorable Outcome | ABT | https://www.nasdaq.com/articles/abbotts-abt-mitraclip-device-shows-favorable-outcome | nan | nan | Abbott Laboratories, Inc. ABT recently presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the long-term benefits of the device in patients fighting heart failure. The data were presented at the American College of Cardiology's 72nd Annual Scientific Session together with the World Congress of Cardiology organized in New Orleans between March 4-6, 2023.
The recent development will fortify Abbott’s Structural Heart’s business.
Study Details
In the COAPT trial, symptomatic heart failure patients with severe secondary MR — a condition in which a leaky valve caused by problems affecting other areas of the heart allows blood to flow back through the mitral valve — were evaluated with MitraClip plus guideline-directed medical therapy or guideline-directed medical therapy alone.
The five-year results from the landmark COAPT trial demonstrated that MitraClip is safe, effective and can reduce hospitalizations while improving survival for heart failure patients with severe secondary (or functional) MR.
Benefits of Favorable Results
With about two decades of clinical experience in transcatheter mitral repair, Abbott's MitraClip paved the way for advancement in supporting people with mitral regurgitation, offering an alternative to surgery for patients who often need treatment to survive.
These five-year COAPT results prove that MitraClip is safe and effective at treating secondary MR in advanced heart failure patients, minimizing hospitalizations and helping patients live longer.
Per Abbott’s management, these results indicate that MitraClip plays a vital role in enhancing the symptoms of people with this serious heart condition and getting them back to living their fullest lives.
Industry Prospects
Per a recent Allied Market Research market, the global structural heart devices market is expected to be worth $12.1 million by 2022, at a CAGR of 10.5%. Given the rising rate of cardiac ailments and the critical need to detect them, we believe Abbott is well-positioned to cash in on the opportunities in this market.
Recent Developments
This month, Abbott presented late-breaking data for the TriClip transcatheter edge-to-edge repair (TEER) system –a first-of-its-kind minimally invasive device developed specifically for tricuspid heart valve repair. The TRILUMINATE Pivotal study assesses the superiority of TriClip compared to medical therapy in treating patients with severe, symptomatic tricuspid regurgitation (TR) at intermediate or greater risk for open-heart surgery.
Last month, Abbott presented late-breaking data for its newest-generation Navitor transcatheter aortic valve implantation (TAVI) system. The study supported Navitor's recent FDA approval to treat people with severe, symptomatic aortic stenosis who are at high or greater risk for open-heart surgery. The company also demonstrated late-breaking data for the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder that continue to reflect the benefits of this device's immediate and complete closure of the LAA – a differentiator from competing therapies – for patients with atrial fibrillation (AFib) at risk of stroke.
Developments Within Peers
A few other companies like Medtronic plc MDT, Edwards Lifesciences, Inc. EW and Boston Scientific, Inc. BSX are also progressing well within the Heart segment.
In February 2023, Medtronic announced the relaunch of its Harmony Transcatheter Pulmonary Valve (TPV) System – a minimally invasive alternative to open-heart surgery for congenital heart disease patients with native or surgically repaired right ventricular outflow tract (RVOT). Harmony TPV was designed to treat patients with RVOT anomalies who develop severe pulmonary valve regurgitation, a condition where blood leaks back into the right lower chamber of the heart after being pumped into the lungs.
In November 2022, Edwards Lifesciences presented one-year results on patients treated in the single-arm, prospective, global, multi-center TRISCEND study of the company’s EVOQUE transcatheter tricuspid valve replacement system which demonstrated favorable safety, efficacy and quality-of-life outcomes. The one-year outcomes demonstrated high survival and high freedom from heart failure hospitalization.
In November 2022, Boston Scientific presented the first results from the ACURATE neo2 Post Market Clinical Follow-up (PMCF) study evaluating the performance of the ACURATE neo2 Aortic Valve System. These trial data confirmed the success of meaningful and differentiated enhancements included in the design of the ACURATE neo2 valve, from low rates of PVL and first-time pacemaker implantation to excellent hemodynamic performance and high rates of procedural success and safety.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories, Inc. ABT recently presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the long-term benefits of the device in patients fighting heart failure. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. In February 2023, Medtronic announced the relaunch of its Harmony Transcatheter Pulmonary Valve (TPV) System – a minimally invasive alternative to open-heart surgery for congenital heart disease patients with native or surgically repaired right ventricular outflow tract (RVOT). | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories, Inc. ABT recently presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the long-term benefits of the device in patients fighting heart failure. These five-year COAPT results prove that MitraClip is safe and effective at treating secondary MR in advanced heart failure patients, minimizing hospitalizations and helping patients live longer. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories, Inc. ABT recently presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the long-term benefits of the device in patients fighting heart failure. Study Details In the COAPT trial, symptomatic heart failure patients with severe secondary MR — a condition in which a leaky valve caused by problems affecting other areas of the heart allows blood to flow back through the mitral valve — were evaluated with MitraClip plus guideline-directed medical therapy or guideline-directed medical therapy alone. | Abbott Laboratories, Inc. ABT recently presented late-breaking data from the Landmark COAPT trial for MitraClip, demonstrating the long-term benefits of the device in patients fighting heart failure. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-year results from the landmark COAPT trial demonstrated that MitraClip is safe, effective and can reduce hospitalizations while improving survival for heart failure patients with severe secondary (or functional) MR. Benefits of Favorable Results With about two decades of clinical experience in transcatheter mitral repair, Abbott's MitraClip paved the way for advancement in supporting people with mitral regurgitation, offering an alternative to surgery for patients who often need treatment to survive. |
31133.0 | 2023-03-06 00:00:00 UTC | Abbott: FDA Clears FreeStyle Libre 2, 3 Sensors For Integration With AID Systems | ABT | https://www.nasdaq.com/articles/abbott%3A-fda-clears-freestyle-libre-2-3-sensors-for-integration-with-aid-systems | nan | nan | (RTTNews) - Abbott (ABT) announced Monday that the U.S. Food and Drug Administration has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring or iCGM system sensors for integration with automated insulin delivery or AID systems in the U.S.
The company said it modified the sensors to enable integration with AID systems. These systems help people manage daily diabetes care by automatically adjusting and administering the insulin delivered by an insulin pump based on real-time glucose data from their FreeStyle Libre 2 or FreeStyle Libre 3 sensors.
The modified FreeStyle Libre 2 and FreeStyle Libre 3 sensors will be available in the U.S. later this year. Over time, the modified sensors will replace the current FreeStyle Libre 2 and FreeStyle Libre 3 sensors available at present in the country.
The modified sensors were also cleared for use by children as young as two years old and for wear time up to 15 days. Current FreeStyle Libre 2 and FreeStyle Libre 3 sensors available in the U.S. are approved for people four years and older and have a wear time of up to 14 days.
The clearance also allows for FreeStyle Libre 2 and FreeStyle Libre 3 sensors to be used by women with all types of diabetes (Type 1, Type 2 and gestational) who are pregnant.
Abbott said it is working with insulin pump manufacturers to integrate their systems with the FreeStyle Libre 2 and FreeStyle Libre 3 sensors as soon as possible.
The company is partnering with Insulet and Tandem for future integrations in multiple countries, including the U.S.
Outside the U.S., Abbott's FreeStyle Libre 3 sensor is already authorized to work with the mylife Loop solution from Ypsomed and CamDiab in Germany, with additional launches in the UK, Switzerland and the Netherlands planned for the first half of this year.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) announced Monday that the U.S. Food and Drug Administration has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring or iCGM system sensors for integration with automated insulin delivery or AID systems in the U.S. These systems help people manage daily diabetes care by automatically adjusting and administering the insulin delivered by an insulin pump based on real-time glucose data from their FreeStyle Libre 2 or FreeStyle Libre 3 sensors. The company is partnering with Insulet and Tandem for future integrations in multiple countries, including the U.S. Outside the U.S., Abbott's FreeStyle Libre 3 sensor is already authorized to work with the mylife Loop solution from Ypsomed and CamDiab in Germany, with additional launches in the UK, Switzerland and the Netherlands planned for the first half of this year. | (RTTNews) - Abbott (ABT) announced Monday that the U.S. Food and Drug Administration has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring or iCGM system sensors for integration with automated insulin delivery or AID systems in the U.S. Over time, the modified sensors will replace the current FreeStyle Libre 2 and FreeStyle Libre 3 sensors available at present in the country. Abbott said it is working with insulin pump manufacturers to integrate their systems with the FreeStyle Libre 2 and FreeStyle Libre 3 sensors as soon as possible. | (RTTNews) - Abbott (ABT) announced Monday that the U.S. Food and Drug Administration has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring or iCGM system sensors for integration with automated insulin delivery or AID systems in the U.S. Over time, the modified sensors will replace the current FreeStyle Libre 2 and FreeStyle Libre 3 sensors available at present in the country. Abbott said it is working with insulin pump manufacturers to integrate their systems with the FreeStyle Libre 2 and FreeStyle Libre 3 sensors as soon as possible. | (RTTNews) - Abbott (ABT) announced Monday that the U.S. Food and Drug Administration has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring or iCGM system sensors for integration with automated insulin delivery or AID systems in the U.S. The company said it modified the sensors to enable integration with AID systems. The modified FreeStyle Libre 2 and FreeStyle Libre 3 sensors will be available in the U.S. later this year. |
31134.0 | 2023-03-06 00:00:00 UTC | Should Invesco Defensive Equity ETF (DEF) Be on Your Investing Radar? | ABT | https://www.nasdaq.com/articles/should-invesco-defensive-equity-etf-def-be-on-your-investing-radar-6 | nan | nan | The Invesco Defensive Equity ETF (DEF) was launched on 12/15/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $238.64 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.54%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 19.90% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC).
The top 10 holdings account for about 9.38% of total assets under management.
Performance and Risk
DEF seeks to match the performance of the Guggenheim Defensive Equity Index before fees and expenses. The Invesco Defensive Equity Index is designed to provide exposure to securities of large-cap US issuers.
The ETF has gained about 1.17% so far this year and is down about -0.32% in the last one year (as of 03/06/2023). In the past 52-week period, it has traded between $60.13 and $72.60.
The ETF has a beta of 0.85 and standard deviation of 22.65% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Defensive Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DEF is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $76.49 billion in assets, Invesco QQQ has $160.01 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Defensive Equity ETF (DEF): ETF Research Reports
Abbott Laboratories (ABT) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $238.64 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Invesco Defensive Equity ETF (DEF) was launched on 12/15/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market. | Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). The Invesco Defensive Equity ETF (DEF) was launched on 12/15/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market. | Looking at individual holdings, United Parcel Service Inc (UPS) accounts for about 1.05% of total assets, followed by Abbott Laboratories (ABT) and Norfolk Southern Corp (NSC). Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Invesco Defensive Equity ETF (DEF) was launched on 12/15/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market. |
31135.0 | 2023-03-06 00:00:00 UTC | 7 Dividend Kings to Buy for an Uncertain Market Environment | ABT | https://www.nasdaq.com/articles/7-dividend-kings-to-buy-for-an-uncertain-market-environment | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Though the term dividend aristocrats generate plenty of interest for the underlying elite status, another even more rarefied category exists called dividend kings to buy. Rather than 25 years of consecutive payout growth, the kings command at least 50 years. As we head into uncertain times, investors should pay close attention to this rare group of enterprises.
Fundamentally, of course, companies that can afford to provide passive income to their stakeholders tend to be deeply established businesses. Should unexpected turbulence hit the market, they’re likelier to ride out the turmoil compared to growth-centric organizations. Therefore, dividend kings to buy deserve serious consideration for your portfolio. In addition, these elites of elite firms will want to keep the trend going at any cost. Naturally, you don’t want to be the person responsible for a 50-plus-year track record being broken. Thus, you’re in reasonably good hands with these dividend kings to buy.
ABBV AbbVie $155.28
CL Colgate-Palmolive $73.29
PG Procter & Gamble $140.35
NWN Northwest Natural $47.41
KO Coca-Cola $60.36
SYY SYSCO $76.35
JNJ Johnson & Johnson $155.56
AbbVie (ABBV)
Source: Sisacorn / Shutterstock.com
A top-flight pharmaceutical firm, AbbVie (NYSE:ABBV) ranks among the most intriguing dividend kings to buy. According to Dividend.com, the company features 51 years of consecutive payout growth. Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. Therefore, Dividend.com tracks the history to Abbott, not to the 2012 spinoff date.
Now, either way, I don’t think you can go wrong. For Abbott, the company might be undervalued relative to forward earnings. In AbbVie’s case, it too may be undervalued. For instance, the market prices ABBV at a forward multiple of 13.66. As a discount to earnings, AbbVie ranks better than 60.16% of the competition.
Fundamentally, AbbVie’s buyout of Allergan – the manufacturer of Botox – could pay off handsomely. As people return to the office, a greater incentive exists to look presentable. That should help Botox and in turn ABBV stock. Finally, Wall Street analysts peg ABBV as a consensus moderate buy. Further, their average price target stands at $163.64, implying 6% upside potential.
Colgate-Palmolive (CL)
Source: monticello / Shutterstock.com
One of the top manufacturers of household goods, Colgate-Palmolive (NYSE:CL) commands attention for the underlying toothpaste. According to Divdend.com, the enterprise features 60 years of consecutive dividend growth. Further, it carries a forward yield of 2.57%. In contrast, the underlying consumer staples sector’s average yield sits at 1.89%. Finally, its payout ratio is 55.23, reflecting a reasonably sustainable passive income.
According to Gurufocus.com’s proprietary calculations for fair market value (FMV), CL rates as modestly undervalued. Objectively, Colgate-Palmolive’s greatest strengths lie in its profitability metrics. Perhaps most notably, its operating margin stands at 19.77%, outpacing 90.77% of the field. As well, its net margin pings at 9.93%, above nearly 80% of the industry.
Further, while it could use a little bit of improvement in the balance sheet, Colgate-Palmolive’s Altman Z-Score is 6.43. This indicates a very low risk of bankruptcy over the next two years. Lastly, covering analysts peg CL as a consensus moderate buy. Moreover, their average price target is $79.70, implying 8% upside potential. Thus, it’s one of the steady dividend kings to buy.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
With so many rumblings in the market and in the broader global economy, consumer goods giant Procter & Gamble (NYSE:PG) simply makes sense. However, the enterprise’s status as one of the dividend kings to buy makes PG all the more attractive. Presently, Procter & Gamble commands 67 years of consecutive payout growth. As well, its forward yield stands at 2.61%. Again, this ranks conspicuously higher than the consumer staples sector’s average yield of 1.89%.
According to Gurufocus.com’s FMV calculations, PG rates as fairly valued. Objectively, it might be a tough overvalued. However, this is really an organization built for the long haul. For instance, the consumer goods stalwart features an Altman Z-Score of 5.06, implying low bankruptcy risk. Operationally, PG enjoys a three-year EBITDA growth rate of 31.2%, outpacing 82% of the field. However, it’s again the profitability that drives the case for PG as one of the dividend kings to buy. Its net margin stands at 17.79%, above nearly 92% of the industry.
Turning to Wall Street, analysts peg PG as a consensus moderate buy. Moreover, their average price target is $157.48, implying almost 13% upside potential.
Northwest Natural (NWN)
Source: jittawit21/Shutterstock.com
Headquartered in Portland, Oregon, Northwest Natural (NYSE:NWN) provides natural gas service to approximately 2.5 million people in Oregon and southwest Washington. As a public utility, Northwest enjoys a natural monopoly. Because of the scale involved and the high barrier to entry, it’s doubtful that anyone can usurp Northwest.
Cynically, then, NWN makes for an enticing opportunity among dividend kings to buy. Currently, the utility commands 66 years of consecutive dividend increases. Further, its forward yield stands at 4.06%. In contrast, the utility sector’s average yield is 3.75%. Now, one factor to keep in mind is that Northwest’s payout ratio of just under 70% is a bit high. Still, no one’s going to want to give up the dividend king status. Also, for full transparency, Northwest doesn’t offer wow-factor financials. However, Gurufocus.com’s FMV calculations rate NWN as modestly undervalued.
Finally, covering analysts peg NWN as a consensus moderate buy. Further, their average price target stands at $54.33, implying almost 14% upside potential.
Coca-Cola (KO)
Source: Dmitry Lobanov/Shutterstock.com
Probably the world’s most famous soft-drink manufacturer, Coca-Cola (NYSE:KO) needs no introduction. Not only does it represent a blue-chip giant, it effectively symbolizes American capitalism. From this angle, it’s not terribly surprising that KO ranks among the dividend kings to buy.
Right now, the iconic enterprise features 62 years of consecutive payout growth. As well, the company’s fairly generous with its passive income, carrying a forward yield of 3.08%. Again, in contrast, the consumer staples sector’s average yield is 1.89%. While I wouldn’t fret about the sustainability of the yield, prospective investors should note the payout ratio of 65.82%.
At the present juncture, Gurufocus.com rates KO as fairly valued. However, patient investors may be able to advantage of Coca-Cola’s operational strengths. For example, its three-year revenue growth rate pings at 4.6% while its net margin hit 22.19%. Both stats rate into the top tier of the underlying industry. Looking to the Street, covering analysts peg KO as a consensus strong buy. Additionally, their average price target stands at $68.33, implying over 14% upside potential.
SYSCO (SYY)
Source: iQoncept/shutterstock.com
Headquartered in Houston, Texas, SYSCO (NYSE:SYY) specializes in marketing and distributing food products, small wares, kitchen equipment, and tabletop items to restaurants, healthcare and educational facilities, and hospitality businesses. Given its vast relevancies, it makes for an attractive idea among dividend kings to buy. Specifically, Sysco commands 54 years of consecutive dividend increases.
In addition, it offers a forward yield of 2.59%. I’m not going to repeat it but it’s higher than the underlying consumer staples sector. Also, it should be stated that the payout ratio sits at 42.68%. While it’s not the lowest figure in the world, no one should worry excessively about yield sustainability. Gurufocus.com rates SYY as modestly undervalued. Objectively, Sysco’s greatest strengths lie in its profitability-related metrics. For instance, its return on asset (ROA) pings at 6.45%, outpacing 77% of the competition.
Turning to Wall Street, analysts peg SYY as a consensus moderate buy. Moreover, their average price target stands at $88.15, implying nearly 17% upside potential.
Johnson & Johnson (JNJ)
Source: Shutterstock
A consumer goods and healthcare giant, Johnson & Johnson (NYSE:JNJ) represents one of the world’s most recognizable brands. As well, with so many events seemingly spiraling out of control globally, JNJ just seems like a smart bet overall. Tack on the fact that it’s one of the dividend kings to buy and you have a very compelling bullish case.
At the moment, Johnson & Johnson features 61 years of consecutive payout growth. In addition, the company carries a forward yield of 2.91%. In contrast, the healthcare sector’s average yield sits at 1.58%. Also noteworthy is the payout ratio, which pings at 41.5%. At this rate, investors can sleep a little easier when it comes to yield sustainability. Financially, the company’s greatest strengths lie in its profitability metrics. Notably, its net margin hit 18.9%, blowing past 87% of the industry. Plus, the company’s Altman Z-Score is 4.01, reflecting low bankruptcy risk.
Lastly, covering analysts peg JNJ as a consensus moderate buy. Additionally, their average price target stands at $183.10, implying 20% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Dividend Kings to Buy for an Uncertain Market Environment appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. Source: iQoncept/shutterstock.com Headquartered in Houston, Texas, SYSCO (NYSE:SYY) specializes in marketing and distributing food products, small wares, kitchen equipment, and tabletop items to restaurants, healthcare and educational facilities, and hospitality businesses. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. | Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 Northwest Natural (NWN) Source: jittawit21/Shutterstock.com Headquartered in Portland, Oregon, Northwest Natural (NYSE:NWN) provides natural gas service to approximately 2.5 million people in Oregon and southwest Washington. | Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Though the term dividend aristocrats generate plenty of interest for the underlying elite status, another even more rarefied category exists called dividend kings to buy. Rather than 25 years of consecutive payout growth, the kings command at least 50 years. | Now, it’s worth pointing out for clarification that AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2012. ABBV AbbVie $155.28 CL Colgate-Palmolive $73.29 PG Procter & Gamble $140.35 NWN Northwest Natural $47.41 KO Coca-Cola $60.36 According to Dividend.com, the company features 51 years of consecutive payout growth. |
31136.0 | 2023-03-05 00:00:00 UTC | Validea Guru Fundamental Report for ABT - 3/5/2023 | ABT | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abt-3-5-2023 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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Peter Lynch Portfolio
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31137.0 | 2023-03-04 00:00:00 UTC | 2 Top Dividend Kings to Buy for the Long Haul | ABT | https://www.nasdaq.com/articles/2-top-dividend-kings-to-buy-for-the-long-haul-4 | nan | nan | Dividend Kings are among the best stocks that income-seeking investors can turn to in these uncertain days. These companies have been raising their payouts for at least 50 consecutive years, which says something about the strength of their underlying businesses. And beyond the potential for the regular passive income they offer, many Dividend Kings have excellent long-term prospects, too.
Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV).
1. Abbott Laboratories
Abbott Laboratories is known as a leader in the medical devices field although it has a presence in several other areas, including nutrition and a generic pharmaceutical unit that targets primarily developing countries. The healthcare company has been highly successful thanks to its ability to develop newer and better products while delivering growing revenue and profits.
These factors have also allowed Abbott Laboratories to sustain an impressive dividend record, with 51 consecutive years of payout raises.
Abbott'a past is impressive, but the company's future matters more. The best part of Abbott's business remains its innovative culture. There is always a high demand for breakthrough healthcare products, something Abbott has been able to consistently deliver over the years. Here's one example of the company's innovative capabilities.
During the early days of the pandemic, it quickly developed and marketed several coronavirus diagnostic tests and became a leader in this market. That helped Abbott keep its revenue afloat even as its medical device revenue dropped. Consider another example, namely the company's FreeStyle Libre franchise.
FreeStyle Libre is a continuous glucose monitoring (CGM) system that helps patients with diabetes track their blood glucose levels in real time throughout the day. In October, it was named the best medical technology of the past 50 years by the prominent Galien Foundation, which honors innovations in the life sciences.
The FreeStyle Libre system generated $4.3 billion in sales in 2022, an improvement of about 16% year over year. Abbott Labs expects revenue of $10 billion for this product line by 2028. We can expect Abbott to continue launching new products in this and other areas such as its structural heart and heart failure units.
The company arguably benefits from a strong moat, having acquired a solid brand name over the years while navigating the highly regulated healthcare industry. Like other consumers, physicians and patients are more likely to go back to those brands with which they are familiar. That can lead to sustained revenue, earnings, and stock price appreciation over the long run for Abbott Laboratories.
2. AbbVie
AbbVie is a drugmaker with 51 years of consecutive dividend increases. That's not a coincidence. AbbVie was once a division of Abbott Laboratories. The two companies split in 2013, and AbbVie has delivered above-average returns since then. Although its most important product over this period, rheumatoid arthritis drug Humira, is now facing biosimilar competition, AbbVie can rely on other blockbusters to pick up the slack.
Skyrizi and Rinvoq are two immunology medicines tasked with replacing Humira. The two continue to earn new indications, many of which overlap with Humira's. Management expects combined peak revenue from Skyrizi and Rinvoq to surpass that of their predecessor eventually, which would be an impressive feat. After all, Humira is one of the most successful drugs in the history of the industry.
Beyond its immunology products, AbbVie has a deep lineup that includes cancer drugs Venclexta and Imbruvica, its Botox franchise, depression treatment Vraylar, and many more. Then there is AbbVie's equally impressive pipeline, which boasts more than 50 programs in mid- and late-stage development. Even at a 50% success rate, that's two dozen brand-new products or label expansions AbbVie can score in the next few years, at least a handful of which will meaningfully impact revenue growth for years.
In the meantime, those programs in the early stages of development will make their way through clinical and regulatory hurdles and also inch closer to approval. While losing patent exclusivity can be challenging for pharmaceutical companies, AbbVie's combination of a rich lineup, pipelines, and cycles of new approvals is precisely the remedy against patent cliffs. It's also a great recipe for long-term success on the market.
That's why investors can still trust this Dividend King to provide solid returns over the long haul.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). The company arguably benefits from a strong moat, having acquired a solid brand name over the years while navigating the highly regulated healthcare industry. Although its most important product over this period, rheumatoid arthritis drug Humira, is now facing biosimilar competition, AbbVie can rely on other blockbusters to pick up the slack. | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). Abbott Laboratories Abbott Laboratories is known as a leader in the medical devices field although it has a presence in several other areas, including nutrition and a generic pharmaceutical unit that targets primarily developing countries. These factors have also allowed Abbott Laboratories to sustain an impressive dividend record, with 51 consecutive years of payout raises. | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). Abbott Laboratories Abbott Laboratories is known as a leader in the medical devices field although it has a presence in several other areas, including nutrition and a generic pharmaceutical unit that targets primarily developing countries. These factors have also allowed Abbott Laboratories to sustain an impressive dividend record, with 51 consecutive years of payout raises. | Let's consider a duo of corporations in this category that investors should consider buying and holding on to for a while: Abbott Laboratories (NYSE: ABT) and AbbVie (NYSE: ABBV). Here's one example of the company's innovative capabilities. That can lead to sustained revenue, earnings, and stock price appreciation over the long run for Abbott Laboratories. |
31138.0 | 2023-03-04 00:00:00 UTC | 2 High-Yield Dividend Stocks to Buy in March | ABT | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-to-buy-in-march | nan | nan | Hunting for the next big thing is an exciting investment strategy that usually doesn't work out. Luckily, there's a more reliable way to build wealth through the stock market.
If you're more interested in accumulating wealth than impressing folks with prescient stock market picks, consider these dividend-paying stocks. They probably won't deliver dramatic overnight gains, but there's a good chance they'll outperform over time.
Companies that commit to distributing a portion of their profits behave a little differently, and the end result is higher rates of return for investors. From 1973 through 2021, stocks in the benchmark S&P 500 index that initiated or grew their dividend payouts returned 10.7% annually on average. Over the same time frame, non-dividend payers delivered a measly 4.8% average annual return, according to research from Hartford Funds and Ned Davis.
AbbVie
AbbVie (NYSE: ABBV) only has a decade of consecutive annual-dividend raises under its belt because before that, it was the biopharmaceutical segment of Abbott Laboratories. Abbott had already been raising its payout for decades before the separation, and AbbVie picked up the pace. The drugmaker's quarterly payout has grown 270% over the past decade.
At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. The yield is relatively high because the market is nervous about incoming competition for its best-selling drug, Humira.
Humira launched in the U.S. in 2002, and a thicket of patents kept lower-cost biosimilar versions off the market until just recently. U.S. sales of the drug reached $18.6 billion in 2022, and this figure could fall by around 30% this year.
Humira sales will tank in the face of biosimilar competition, but this isn't a one-trick pony. AbbVie has a handful of more recently launched blockbuster drugs to offset Humira's losses and allow its dividend to continue growing.
Skyrizi and Rinvoq are treatments for psoriasis and arthritis, respectively, that first earned approval in 2019. Combined sales from this pair reached $7.7 billion last year, and management expects this figure to exceed $17.5 billion in 2025.
Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns around 444 hospitals and acute care facilities spread throughout the U.S. and nine other countries.
Dividend investors flock toward REITs like this one because they can avoid paying income taxes as long as they distribute at least 90% of profits to shareholders as a dividend. Instead of running its own hospitals, Medical Properties Trust just collects the rent. It generally employs long-term net leases that transfer all the variable costs of building ownership, like maintenance and property taxes, to the tenants that operate its facilities.
Inflation-conscious investors appreciate Medical Properties Trust because it builds inflation-based rent adjustments and annual escalators into its long-term leases. With highly predictable cash flows, the company has been able to steadily raise its dividend payout by 45% over the past decade. Right now, the stock offers an eye-popping 11% yield.
Shares of Medical Properties Trust have fallen hard this year because one of its larger tenants, Prospect Medical, is having trouble paying its bills. A couple of large write-downs caused the company to report a net loss in the fourth quarter of 2022.
The important thing for investors to remember is that people still need hospitals whether Prospect can make ends meet or not. Medical Properties Trust shouldn't have much trouble transitioning Prospect's troubled properties to a new operator.
Management thinks funds from operations (FFO), a proxy for REIT earnings, will reach $1.50 per share this year if lost revenue from Prospect can't be recovered in 2023. That's more than enough to meet an annual dividend obligation currently set at $1.16 per share. With its dividend program in better condition than it might appear at a distance, adding some shares of this high-yield dividend stock to a diversified portfolio looks like a smart move to make right now.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Over the same time frame, non-dividend payers delivered a measly 4.8% average annual return, according to research from Hartford Funds and Ned Davis. It generally employs long-term net leases that transfer all the variable costs of building ownership, like maintenance and property taxes, to the tenants that operate its facilities. Management thinks funds from operations (FFO), a proxy for REIT earnings, will reach $1.50 per share this year if lost revenue from Prospect can't be recovered in 2023. | Medical Properties Trust Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns around 444 hospitals and acute care facilities spread throughout the U.S. and nine other countries. Inflation-conscious investors appreciate Medical Properties Trust because it builds inflation-based rent adjustments and annual escalators into its long-term leases. Medical Properties Trust shouldn't have much trouble transitioning Prospect's troubled properties to a new operator. | At recent prices, AbbVie shares offer a 3.8% yield that is way above the 1.7% yield offered by the average dividend-paying stock in the S&P 500 index. Medical Properties Trust Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns around 444 hospitals and acute care facilities spread throughout the U.S. and nine other countries. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Cory Renauer has no position in any of the stocks mentioned. | The yield is relatively high because the market is nervous about incoming competition for its best-selling drug, Humira. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Cory Renauer has no position in any of the stocks mentioned. |
31139.0 | 2023-03-03 00:00:00 UTC | Should You Invest in Abbott (ABT) Based on Bullish Wall Street Views? | ABT | https://www.nasdaq.com/articles/should-you-invest-in-abbott-abt-based-on-bullish-wall-street-views | nan | nan | The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT).
Abbott currently has an average brokerage recommendation (ABR) of 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy.
Of the 16 recommendations that derive the current ABR, 11 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.8% and 18.8% of all recommendations.
Brokerage Recommendation Trends for ABT
Check price target & stock forecast for Abbott here>>>
The ABR suggests buying Abbott, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ABT?
In terms of earnings estimate revisions for Abbott, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.38.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Abbott. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Abbott.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Should You Invest in ABT? | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Should You Invest in ABT? | Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Brokerage Recommendation Trends for ABT Should You Invest in ABT? | Brokerage Recommendation Trends for ABT Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT). Should You Invest in ABT? |
31140.0 | 2023-03-03 00:00:00 UTC | 1 High-Flying Growth Stock With 19% Upside, According to Wall Street | ABT | https://www.nasdaq.com/articles/1-high-flying-growth-stock-with-19-upside-according-to-wall-street | nan | nan | Medical device specialist DexCom (NASDAQ: DXCM) has been on fire over the past year, significantly outperforming the broader market. The healthcare company can thank several tailwinds for its performance, including the continued adoption of the technology it has helped pioneer -- continuous glucose monitoring (CGM) -- and the launch of new products.
But DexCom still has some upside left, at least if we go by Wall Street's predictions. The company's current average price target of $132.22 (according to Yahoo! Finance) represents a 19% upside over its stock price of about $111 as of this writing. Should investors follow the Street's advice and buy DexCom's shares? Let's dig in and find out.
The advantage of continuous glucose monitoring
CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. Typically, those with diabetes have to draw blood with a device sometimes called a glucometer that measures the amount of sugar in the blood sample. But this method is painful and suffers from one other major drawback: It only tells patients their blood glucose levels at a specific point when they measure it. Enter CGM options, like DexCom's G6.
The G6 system has a small sensor inserted under the skin that measures blood glucose levels once every five minutes. That's 12 times per hour and 288 times per day. Having access to this much data can allow patients to better navigate the day-to-day challenges of living with diabetes. The G6 also sends alerts to compatible devices if blood glucose levels go above or below a predetermined threshold.
This option is superior. And it has helped DexCom make serious headway in the diabetes market. The company currently serves an estimated 1.7 million patients worldwide, and its G6 is the most popular CGM system in the world. Further DexCom's revenue has grown. Last year, the company's top line jumped by 19% year over year to $2.91 billion.
But there is plenty of upside left. There are 37.3 million diabetes patients in the U.S. alone. According to the World Health Organization, there are 422 million of them globally. DexCom's installed base of 1.7 million is just a minuscule portion of that. The company does have several competitors, but it leads this market with Abbott Laboratories, whose CGM devices franchise, the FreeStyle Libre, generated $4.3 billion in revenue in 2022.
DexCom has been able to continue to increase its revenue and its installed base despite the competition from the much larger Abbott Laboratories.
Even if there is a combined 20 million CGM users worldwide (an unlikely number), there is still massive room to grow globally. And that's before we add the fact that the population of patients with diabetes will maintain an upward trajectory for decades. Meanwhile, DexCom has released the G7, an updated CGM system whose sensor is smaller than that of the G6.
It started launching it in Europe last year and should do so in the U.S. this year. The DexCom ONE is another device that focuses on simplicity and accessibility (in terms of price). These newer devices will help DexCom as it continues to gain new users.
A solid buy despite the risks
All companies face risks. DexCom is no exception to this iron rule. Let's consider two potential headwinds for investors to consider before initiating a position in this healthcare company; the first is valuation. DexCom's shares look richly valued, with a forward price-to-earnings ratio of 106. That looks high by almost any standard. By comparison, the S&P 500's forward P/E is just 20. DexCom's valuation is likely a reflection of the company's prospects and the fact that it has historically grown its revenue very rapidly.
In the past five years, DexCom's top line has increased by an average of 42.5% per year. Companies with impressive revenue growth and attractive opportunities often command much higher premiums. However, DexCom could be vulnerable to heightened volatility in the short term, especially if it fails to live up to investors' expectations which are, to some extent, already baked into its stock price.
Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. It could eventually integrate this feature into some of its devices like the Apple Watch. According to recent reports, Apple has reached the proof-of-concept phase of its work in this area. What should investors think of these potential problems for DexCom?
Let's start with the second. It's important to note that the proof-of-concept stage is a fancy way of saying, there is real promise here, but there is still a long way to go. It could be five years or more before this technology sees the light of day if it does at all. And while valuation is an issue, DexCom could justify its rich premium over the long run, given the massive opportunity ahead in the diabetes market. Will the healthcare company meet the Street's predictions in the next year?
My view is that it will. But even if it doesn't, DexCom still looks like an excellent long-term bet.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The advantage of continuous glucose monitoring CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. The company does have several competitors, but it leads this market with Abbott Laboratories, whose CGM devices franchise, the FreeStyle Libre, generated $4.3 billion in revenue in 2022. However, DexCom could be vulnerable to heightened volatility in the short term, especially if it fails to live up to investors' expectations which are, to some extent, already baked into its stock price. | The advantage of continuous glucose monitoring CGM devices give diabetes patients a much better option to keep track of their blood sugar levels. Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In the past five years, DexCom's top line has increased by an average of 42.5% per year. Another problem for DexCom could be increased competition from Apple, which has been developing non-invasive ways to measure patients' blood glucose levels. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Finance) represents a 19% upside over its stock price of about $111 as of this writing. There are 37.3 million diabetes patients in the U.S. alone. * They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them! |
31141.0 | 2023-03-02 00:00:00 UTC | Abbott (ABT) Outpaces Stock Market Gains: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-outpaces-stock-market-gains%3A-what-you-should-know-4 | nan | nan | Abbott (ABT) closed at $102.63 in the latest trading session, marking a +1.79% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq lost 0.98%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 9.83% in the past month. In that same time, the Medical sector lost 4.24%, while the S&P 500 lost 3.91%.
Abbott will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.98, down 43.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.64 billion, down 18.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $39.74 billion, which would represent changes of -17.98% and -8.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Abbott is holding a Forward P/E ratio of 23.01. This represents a discount compared to its industry's average Forward P/E of 24.39.
We can also see that ABT currently has a PEG ratio of 4.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products industry currently had an average PEG ratio of 2.33 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $102.63 in the latest trading session, marking a +1.79% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.52. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott (ABT) closed at $102.63 in the latest trading session, marking a +1.79% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.52. | Abbott (ABT) closed at $102.63 in the latest trading session, marking a +1.79% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.52. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Abbott (ABT) closed at $102.63 in the latest trading session, marking a +1.79% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.52. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31142.0 | 2023-03-02 00:00:00 UTC | Validea Guru Fundamental Report for ABT - 3/2/2023 | ABT | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abt-3-2-2023 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31143.0 | 2023-03-02 00:00:00 UTC | Will Boston Scientific Stock See Higher Levels? | ABT | https://www.nasdaq.com/articles/will-boston-scientific-stock-see-higher-levels | nan | nan | Boston Scientific stock (NYSE: BSX) has seen a fall of 3% in a month, compared with -5% returns for the broader S&P500 index. The company reported mixed Q4 results last month, with revenue falling in line but earnings missing the consensus estimate. Still, BSX stock trended higher due to better-than-expected guidance for 2023. However, we believe BSX stock is fully valued.
Boston Scientific’s revenue of $11.2 billion in Q4 2022 reflected a 3.7% y-o-y rise, driven by growth in both of its segments – Cardiovascular and MedSurg. The company continues to benefit from market share gains for its Left Atrial Appendage Closure device – Watchman – which saw its sales rise 22% y-o-y to $1.0 billion in 2022, compared to just $829 million in 2021 and $324 million in 2020. Boston Scientific also sees strong sales growth in Electrophysiology, up 18% y-o-y organically in 2022, and this trend is expected to continue in the near term.
The company has guided for its sales to rise between 5% and 7% and its adjusted EPS to be between $1.86 and $1.93 in 2023. It expects a 50 basis points improvement in operating margin in 2023. Our model considers the company’s guidance of mid-single-digit top-line growth and low double-digit bottom-line growth, partly driven by lower operating expenses.
But, looking at valuation, at its current level of $47, BSX stock is already trading at 24x its forward expected earnings of $1.92 (which is at the higher end of the guided range), aligning with its last three-year average, implying that BSX stock is fully valued. We estimate Boston Scientific’s Valuation to be around $49 per share, marginally above the current market price. This represents a 25x forward P/E multiple, slightly above its historical average mentioned above, owing to the expected rise in operating margin in the coming years.
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While BSX stock may be fully valued, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Boston Scientific vs. West Pharmaceutical Services.
BSX stock has risen 6% in the last twelve months despite higher inflation and rising interest rates. But can it drop from here? See how low Boston Scientific stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Mar 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
BSX Return 0% 1% 116%
S&P 500 Return -1% 2% 75%
Trefis Multi-Strategy Portfolio 0% 7% 237%
[1] Month-to-date and year-to-date as of 3/2/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Boston Scientific’s revenue of $11.2 billion in Q4 2022 reflected a 3.7% y-o-y rise, driven by growth in both of its segments – Cardiovascular and MedSurg. Boston Scientific also sees strong sales growth in Electrophysiology, up 18% y-o-y organically in 2022, and this trend is expected to continue in the near term. This represents a 25x forward P/E multiple, slightly above its historical average mentioned above, owing to the expected rise in operating margin in the coming years. | Boston Scientific’s revenue of $11.2 billion in Q4 2022 reflected a 3.7% y-o-y rise, driven by growth in both of its segments – Cardiovascular and MedSurg. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While BSX stock may be fully valued, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] BSX Return 0% 1% 116% S&P 500 Return -1% 2% 75% Trefis Multi-Strategy Portfolio 0% 7% 237% [1] Month-to-date and year-to-date as of 3/2/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Boston Scientific stock (NYSE: BSX) has seen a fall of 3% in a month, compared with -5% returns for the broader S&P500 index. But, looking at valuation, at its current level of $47, BSX stock is already trading at 24x its forward expected earnings of $1.92 (which is at the higher end of the guided range), aligning with its last three-year average, implying that BSX stock is fully valued. Total [2] BSX Return 0% 1% 116% S&P 500 Return -1% 2% 75% Trefis Multi-Strategy Portfolio 0% 7% 237% [1] Month-to-date and year-to-date as of 3/2/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Boston Scientific stock (NYSE: BSX) has seen a fall of 3% in a month, compared with -5% returns for the broader S&P500 index. But, looking at valuation, at its current level of $47, BSX stock is already trading at 24x its forward expected earnings of $1.92 (which is at the higher end of the guided range), aligning with its last three-year average, implying that BSX stock is fully valued. We estimate Boston Scientific’s Valuation to be around $49 per share, marginally above the current market price. |
31144.0 | 2023-03-01 00:00:00 UTC | Abbott (ABT) Dips More Than Broader Markets: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-dips-more-than-broader-markets%3A-what-you-should-know-2 | nan | nan | Abbott (ABT) closed the most recent trading day at $100.83, moving -0.87% from the previous trading session. This change lagged the S&P 500's 0.47% loss on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 15.51%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had lost 7.99% over the past month, lagging the Medical sector's loss of 4% and the S&P 500's loss of 2.53% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $0.98, down 43.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.64 billion, down 18.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.38 per share and revenue of $39.74 billion, which would represent changes of -17.98% and -8.97%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Abbott is holding a Forward P/E ratio of 23.21. Its industry sports an average Forward P/E of 23.77, so we one might conclude that Abbott is trading at a discount comparatively.
It is also worth noting that ABT currently has a PEG ratio of 4.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed the most recent trading day at $100.83, moving -0.87% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 4.56. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Abbott (ABT) closed the most recent trading day at $100.83, moving -0.87% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 4.56. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott (ABT) closed the most recent trading day at $100.83, moving -0.87% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 4.56. | Abbott (ABT) closed the most recent trading day at $100.83, moving -0.87% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 4.56. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31145.0 | 2023-03-01 00:00:00 UTC | Get a Dividend Every Month With These 3 Healthcare Stocks | ABT | https://www.nasdaq.com/articles/get-a-dividend-every-month-with-these-3-healthcare-stocks | nan | nan | Dependable cash flow is a nice thing, especially for income-oriented investors. You have to pay your electric bill and rent or mortgage every month, why not get a dividend check every month as well, to help pay your bills?
There are companies that deliver a monthly dividend, but the better move, at least for diversity and safety's sake, is to get a monthly dividend check each month by finding dependable dividend payers that deliver in different months.
Using that logic, I picked Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), and Medtronic (NYSE: MDT). All three healthcare companies have raised their dividends for 25 consecutive years or more and their dividends have a yield of 2.9% or more, well above the S&P 500 average of 1.7%.
Johnson & Johnson consistently delivers
Johnson & Johnson raised its dividend by 6.6% last year to $1.13 a quarterly share, the 60th consecutive year it has increased its quarterly dividend. It has a yield of about 2.9%. That means if you bought 900 shares of Johnson & Johnson stock, you would earn $1,017 every quarter, or to put it in monthly terms, you would receive that amount in March, June, September, and December.
Johnson & Johnson's family of companies operate in three divisions: pharmaceutical, consumer healthcare, and medical technology. The company reported 2022 earnings of $94.9 billion, up 1.3%. It sells products in more than 200 countries and its earnings were adversely affected by unfavorable foreign exchange rates, with earnings per share (EPS) falling almost 14% to $6.73.
Johnson & Johnson's cash dividend payout ratio of 68% is a tad high, but the company expects revenue to rise by 5% this year to $97.4 billion, meaning another dividend increase seems likely. It will be an interesting year for the company as it spins off its consumer health segment into a separate company, Kenvue, but that should help the company's profit margin as the segment has been its least profitable.
MDT Dividend data by YCharts
AbbVie has planned for the future
Pharmaceutical company AbbVie increased its quarterly dividend 4.9% this year to $1.48, the 51st consecutive year it has increased its dividend, counting its time as a division of Abbott Laboratories. The yield on AbbVie's dividend is about 3.8%. The company's cash dividend payout ratio of 41% shows the company can easily afford to increase its dividend. To earn $1,110 in the months that company pays its dividend (February, May, August, and November), you would need to buy 750 shares of AbbVie stock.
AbbVie reported 2022 full-year revenue of $58.1 billion, up 3.3%, and full-year EPS of $6.63, up 2.8%. The concern for AbbVie this year is that immuno-oncology blockbuster drug Humira will face biosimilar competition for the first time in the U.S. The company didn't issue a full-year revenue projection; it only said it expected 2023 adjusted EPS to be between $10.70 and $11.10, after having adjusted EPS of $13.77 in 2022. It also said it expected Humira sales to drop by 37% this year. While that's a considerable fall, it's not enough for AbbVie to trim its dividend, which has increased by 270% since its split from Abbott in 2013.
Thanks to expanding indications and sales of its other immuno-oncology blockbusters, Skyrizi and Rinvoq, AbbVie Chief Executive Officer Richard Gonzalez said the company should return to improved revenue by 2025. The two drugs brought in $7.7 billion in 2022 and AbbVie said it expects that number to nearly triple by 2027.
"Looking forward, we have a solid foundation which will allow us to absorb the U.S. Humira loss of exclusivity, return to strong top-line growth in 2025 and drive top-tier financial performance over the long term," Gonzalez said in the fourth-quarter earnings release.
There are plenty of reasons to be bullish on AbbVie's future, as it had 11 drugs with $1 billion or more in sales in 2023 and more than 100 programs in its drug pipeline.
Medtronic prepares to bounce back
Medical equipment maker Medtronic increased its quarterly dividend by 7.9% last year to $0.68 a share, the 45th consecutive year it has boosted its dividend. It has a current yield of around 3.3%. To earn $1,088 in the months it pays a dividend (January, April, July, and October), you would need to own 1,600 shares of Medtronic stock. Medtronic has increased its dividend by 262.9% over the past decade.
One concern is Medtronic's cash dividend payout of 85% is the highest of these three stocks. However, the company, in its fiscal 2023 third-quarter presentation, reiterated its emphasis on its dividend, saying that it was committing to returning at least 50% of the company's free cash flow to shareholders, with the bulk of that being through dividends.
In the fiscal third quarter of 2023, ended Jan. 27, the company reported revenue of $7.73 billion, down 0.4% year over year, and EPS of $0.92, down 16% over the same period last year. However, the company is undergoing a restructuring that allowed it to say it expected fourth-quarter organic revenue growth of 4.5% to 5%.
"Given our third-quarter performance, we are raising our full year outlook and expect our momentum to continue in the fourth quarter," Medtronic CEO Karen Parkhill said in the Q3 earnings release.
The areas that seem to be growing the most include the company's cardiovascular and neuroscience portfolios, with its cardiac rhythm management and spine portfolios bouncing back from pandemic lows. The company's leadless pacemakers, in particular, are doing well, with sales up 14% in the third quarter year over year.
Medtronic's Hugo robotic-assisted surgery (RAS) system is also expected to drive revenue as the company ramps up to compete with the industry-leading da Vinci RAS from Intuitive Surgical. The Hugo got its CE Mark approval for urologic and gynecologic procedures in Europe last year and in December, the company enrolled the first patient in its Expand URO U.S. clinical trial for urologic procedures.
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Jim Halley has positions in AbbVie and Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories and Intuitive Surgical. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Thanks to expanding indications and sales of its other immuno-oncology blockbusters, Skyrizi and Rinvoq, AbbVie Chief Executive Officer Richard Gonzalez said the company should return to improved revenue by 2025. "Looking forward, we have a solid foundation which will allow us to absorb the U.S. Humira loss of exclusivity, return to strong top-line growth in 2025 and drive top-tier financial performance over the long term," Gonzalez said in the fourth-quarter earnings release. "Given our third-quarter performance, we are raising our full year outlook and expect our momentum to continue in the fourth quarter," Medtronic CEO Karen Parkhill said in the Q3 earnings release. | Johnson & Johnson consistently delivers Johnson & Johnson raised its dividend by 6.6% last year to $1.13 a quarterly share, the 60th consecutive year it has increased its quarterly dividend. MDT Dividend data by YCharts AbbVie has planned for the future Pharmaceutical company AbbVie increased its quarterly dividend 4.9% this year to $1.48, the 51st consecutive year it has increased its dividend, counting its time as a division of Abbott Laboratories. Medtronic prepares to bounce back Medical equipment maker Medtronic increased its quarterly dividend by 7.9% last year to $0.68 a share, the 45th consecutive year it has boosted its dividend. | Johnson & Johnson consistently delivers Johnson & Johnson raised its dividend by 6.6% last year to $1.13 a quarterly share, the 60th consecutive year it has increased its quarterly dividend. Johnson & Johnson's cash dividend payout ratio of 68% is a tad high, but the company expects revenue to rise by 5% this year to $97.4 billion, meaning another dividend increase seems likely. MDT Dividend data by YCharts AbbVie has planned for the future Pharmaceutical company AbbVie increased its quarterly dividend 4.9% this year to $1.48, the 51st consecutive year it has increased its dividend, counting its time as a division of Abbott Laboratories. | Johnson & Johnson consistently delivers Johnson & Johnson raised its dividend by 6.6% last year to $1.13 a quarterly share, the 60th consecutive year it has increased its quarterly dividend. Johnson & Johnson's cash dividend payout ratio of 68% is a tad high, but the company expects revenue to rise by 5% this year to $97.4 billion, meaning another dividend increase seems likely. Medtronic prepares to bounce back Medical equipment maker Medtronic increased its quarterly dividend by 7.9% last year to $0.68 a share, the 45th consecutive year it has boosted its dividend. |
31146.0 | 2023-03-01 00:00:00 UTC | Lucira Stock Jumps over 250% on FDA Approval, Beware Chapter 11 | ABT | https://www.nasdaq.com/articles/lucira-stock-jumps-over-250-on-fda-approval-beware-chapter-11 | nan | nan | Lucira Health Inc. (NASDAQ: LHDX) shares spiked up 264% to close at $0.52 on a massive 278 million shares traded on the announcement of FDA approval for its combination at-home COVID-19 and a flu test. The over-the-counter (OTC) 30-minute at-home rapid test can detect influenza A and B and the SARS-CoV-2 virus using nasal swabs.
This appears to be good news, but digging just a little deeper reveals that it's a case of too little and too late. The company had expected the FDA approval in August 2022, but the protracted approval process left the company bleeding through cash with high expenditures.
Lucira Health went public through an IPO on Feb. 5. 2021, at $22.10 per share and currently has 40 million shares outstanding While it blames the FDA for its slow approval of its combo test, the company has still been selling its COVID-19 test, which competes with rapid tests from Abbott Laboratories Inc. (NYSE: ABT), Beckton, Dickinson & Co. Dickinson (NYSE: BDX) and QuidelOrtho Corp. (NASDAQ: QDEL). The delay caused them to miss the U.S. 2022 to 2023 flu season, despite Canada approving the combo test. The bottom line is that the demand has been falling as COVID-19 falls further into the rearview mirror.
Big Charge-Offs
On November 14, 2022, Lucira Health released its Q3 2022 earnings for the quarter ending in September 2022. The company reported net revenues of $34.4 million, up 130% year-over-year (YoY). GAAP gross loss was ($99.6 million), compared to ($1.5 million) in the year-ago period. GAAP negative gross margin was (289%) versus (10%) for the year-ago period.
The excessive GAAP losses were from charges for overstocked inventory, non-cancellable purchase commitments, and prepaid inventory. GAAP net loss was ($126.9 million) compared to a loss of ($27.5 million) in Q3 2021.
The company took a non-cash inventory charge of (-$107.2 million) due to a significant sale forecast reduction stemming from the unanticipated delay of its combination test from the FDA. Lucira ended the quarter with $39.8 million in cash, down from $106 million at the end of 2021.
During the quarter, Lucira executed a marketing agreement with Pfizer (NYSE: PFE) to increase awareness of the risks of COVID-19 and treatment options. The company received approval and launched its combination COVID-19 and flu test in Canada while still awaiting U.S. FDA approval, filed under Emergency Use Authorization (EUA) in May 2022.
Voluntary Chapter 11 Bankruptcy
On Feb. 22, 2023, Lucira Health announced the voluntary filing for protection under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company will continue to operate daily and use cash on hand to fund operations. It intends to sell the business under Section 363 of the Bankruptcy code. It will continue to support customers throughout the process. In October 2022, the Board of Directors approved actions to rebalance its cost structure and consider selling the company.
While the company was able to trim costs, reduce headcount, and renegotiate some vendor contracts, the delay in the approval and subsequent revenues from the 2022 to 2023 flu season left the company in shambles.
Lucira CEO Erik Engleson commented, "Unfortunately, as restrictions lessened in 2022, we saw lower demand for COVID-19 tests. This, combined with slower-than-anticipated regulatory approval for the new combined test kit developed for the 2022-2023 flu season, led to insufficient revenue and capitalization to offset expenditures. Despite every effort to reduce capital outlays and restructure our business, we took this action to protect and maximize the value of our assets."
What Happens Next?
Chapter 11 is a way to protect the company from creditors as it operates on a day-to-day basis while planning a reorganization. Many companies have emerged from Chapter 11. Unfortunately, the common stock shareholders are often left holding worthless stock as new shares are issued. This was the case for General Motors Co. (NYSE: GM) Chapter 11 filing in 2009. This was also the case with American Airlines Chapter 11 filing in 2011.
After restructuring the company emerged from bankruptcy in 2013. When American Airlines issued new stock, the previous shareholders were stuck with worthless stock. The recent case of rental car giant The Hertz Corporation (NASDAQ: HTZ) emerged from Chapter 11 and resumed NASDAQ trading on November 9, 2021. Old shareholders got a package deal of cash, 3% stock of the new company, and warrants for 18% of the newly reorganized company.
Lucira needs to raise cash. It's trying to preserve as much cash as possible to buy enough time to launch sales of its combo test and find a buyer for the business. The expedited sale of the business awaits approval from the U.S. Bankruptcy Court. Unlike the earlier examples, Lucira plans to sell the business rather than go it alone and emerge from Chapter 11. This may be driving speculators to pile into the stock.
Gap and Crap or Gap and Go
The daily candlestick chart on LHDX illustrates the rollercoaster price action for Feb. 20, 2023. On Feb. 22, Lucira announced its voluntary Chapter 11 filing, causing shares to gap down and selloff to a low of $0.11 on Feb. 23. On Feb. 24, Lucira announced the long-awaited FDA approval for its combination COVID-19 and flu home test caused shares to surge over 700% off previous day lows to a high of $0.75 before closing at $0.52, up only 264% on a massive 278 million shares of the trading volume.
This was 6X of its total outstanding shares traded in a single day. The $0.87 is the weekly market structure low (MSL) trigger. Pullback support levels are $0.28, $0.17, and $0.11. Be aware that shares may be delisted during Chapter 11 but shares may spike on sentiment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 2021, at $22.10 per share and currently has 40 million shares outstanding While it blames the FDA for its slow approval of its combo test, the company has still been selling its COVID-19 test, which competes with rapid tests from Abbott Laboratories Inc. (NYSE: ABT), Beckton, Dickinson & Co. Dickinson (NYSE: BDX) and QuidelOrtho Corp. (NASDAQ: QDEL). The company took a non-cash inventory charge of (-$107.2 million) due to a significant sale forecast reduction stemming from the unanticipated delay of its combination test from the FDA. During the quarter, Lucira executed a marketing agreement with Pfizer (NYSE: PFE) to increase awareness of the risks of COVID-19 and treatment options. | 2021, at $22.10 per share and currently has 40 million shares outstanding While it blames the FDA for its slow approval of its combo test, the company has still been selling its COVID-19 test, which competes with rapid tests from Abbott Laboratories Inc. (NYSE: ABT), Beckton, Dickinson & Co. Dickinson (NYSE: BDX) and QuidelOrtho Corp. (NASDAQ: QDEL). Lucira Health Inc. (NASDAQ: LHDX) shares spiked up 264% to close at $0.52 on a massive 278 million shares traded on the announcement of FDA approval for its combination at-home COVID-19 and a flu test. The company received approval and launched its combination COVID-19 and flu test in Canada while still awaiting U.S. FDA approval, filed under Emergency Use Authorization (EUA) in May 2022. | 2021, at $22.10 per share and currently has 40 million shares outstanding While it blames the FDA for its slow approval of its combo test, the company has still been selling its COVID-19 test, which competes with rapid tests from Abbott Laboratories Inc. (NYSE: ABT), Beckton, Dickinson & Co. Dickinson (NYSE: BDX) and QuidelOrtho Corp. (NASDAQ: QDEL). Lucira Health Inc. (NASDAQ: LHDX) shares spiked up 264% to close at $0.52 on a massive 278 million shares traded on the announcement of FDA approval for its combination at-home COVID-19 and a flu test. On Feb. 24, Lucira announced the long-awaited FDA approval for its combination COVID-19 and flu home test caused shares to surge over 700% off previous day lows to a high of $0.75 before closing at $0.52, up only 264% on a massive 278 million shares of the trading volume. | 2021, at $22.10 per share and currently has 40 million shares outstanding While it blames the FDA for its slow approval of its combo test, the company has still been selling its COVID-19 test, which competes with rapid tests from Abbott Laboratories Inc. (NYSE: ABT), Beckton, Dickinson & Co. Dickinson (NYSE: BDX) and QuidelOrtho Corp. (NASDAQ: QDEL). Lucira Health Inc. (NASDAQ: LHDX) shares spiked up 264% to close at $0.52 on a massive 278 million shares traded on the announcement of FDA approval for its combination at-home COVID-19 and a flu test. Many companies have emerged from Chapter 11. |
31147.0 | 2023-02-28 00:00:00 UTC | Why Abbott Laboratories Stock Bumped Higher Today | ABT | https://www.nasdaq.com/articles/why-abbott-laboratories-stock-bumped-higher-today | nan | nan | What happened
On a piece of encouraging news from the laboratory, healthcare sector mainstay Abbott Laboratories (NYSE: ABT) saw its stock price rise by nearly 2% on Tuesday. That convincingly beat the S&P 500 index's performance on the day; the bellwether index went in the opposite direction, sliding by 0.3%.
So what
Abbott announced that late-breaking data from a clinical study indicate that the company's Navitor transcatheter aortic valve implantation (TAVI) system is a safe and effective treatment for certain heart patients. Specifically, this concerns patients with severe, symptomatic aortic stenosis (a narrowing of the valve in the heart's main artery).
Abbott added that the study indicated a 97% rate of procedural success with the system, accompanied by low rates of all-cause mortality and disabling stroke (both 1.9%) at 30 days.
Also receiving high marks from the latest research was another of the healthcare company's heart products, the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder. Abbott said that the device was shown to have fewer unresolved and severe peri-device leaks than a competing product, Boston Scientific's Watchman.
Now what
In the announcement, Abbott's Senior Vice President of the Structural Heart division Michael Dale said, "These results for Navitor and Amulet demonstrate that the innovative designs of our minimally invasive devices are changing how doctors are approaching -- and patients are experiencing -- the treatment of structural heart conditions."
This is particularly encouraging because heart disease is the leading cause of death in the U.S., according to the Centers for Disease Control and Prevention. Nearly 700,000 Americans died of heart disease in 2020.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened On a piece of encouraging news from the laboratory, healthcare sector mainstay Abbott Laboratories (NYSE: ABT) saw its stock price rise by nearly 2% on Tuesday. So what Abbott announced that late-breaking data from a clinical study indicate that the company's Navitor transcatheter aortic valve implantation (TAVI) system is a safe and effective treatment for certain heart patients. Also receiving high marks from the latest research was another of the healthcare company's heart products, the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder. | What happened On a piece of encouraging news from the laboratory, healthcare sector mainstay Abbott Laboratories (NYSE: ABT) saw its stock price rise by nearly 2% on Tuesday. So what Abbott announced that late-breaking data from a clinical study indicate that the company's Navitor transcatheter aortic valve implantation (TAVI) system is a safe and effective treatment for certain heart patients. Also receiving high marks from the latest research was another of the healthcare company's heart products, the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder. | What happened On a piece of encouraging news from the laboratory, healthcare sector mainstay Abbott Laboratories (NYSE: ABT) saw its stock price rise by nearly 2% on Tuesday. Now what In the announcement, Abbott's Senior Vice President of the Structural Heart division Michael Dale said, "These results for Navitor and Amulet demonstrate that the innovative designs of our minimally invasive devices are changing how doctors are approaching -- and patients are experiencing -- the treatment of structural heart conditions." 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. | What happened On a piece of encouraging news from the laboratory, healthcare sector mainstay Abbott Laboratories (NYSE: ABT) saw its stock price rise by nearly 2% on Tuesday. So what Abbott announced that late-breaking data from a clinical study indicate that the company's Navitor transcatheter aortic valve implantation (TAVI) system is a safe and effective treatment for certain heart patients. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. |
31148.0 | 2023-02-28 00:00:00 UTC | Should Abbott and DexCom Investors Be Worried About Apple's Latest News? | ABT | https://www.nasdaq.com/articles/should-abbott-and-dexcom-investors-be-worried-about-apples-latest-news | nan | nan | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Patients can easily monitor their glucose and receive alerts when thresholds are exceeded on their smart devices.
But that relationship could be about to change significantly in a way that isn't helpful to the two big CGM makers. Bloomberg reported last week about one of Apple's major development efforts. Should Abbott and DexCom investors be worried about Apple's latest news?
Image source: Getty Images.
From partner to competitor
The CGM market is already huge and continues to grow rapidly. Abbott posted sales of $1.1 billion for its FreeStyle Libre in the fourth quarter of 2022, a year-over-year jump of more than 40%. DexCom's Q4 sales for its CGM devices topped $815 million, up 17% year over year.
Apple wants to take a bite of its own out of this big market opportunity. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. The tech giant's goal is to launch its own CGM tied to its Apple Watch, according to Bloomberg's sources, who are familiar with Apple's efforts.
The two current market leaders in CGM use patches that are inserted into the skin of a person's arm. These patches must be replaced regularly -- every 10 days for DexCom's G7 and every 14 days for Abbott's FreeStyle Libre.
However, Apple is using a much different method to measure glucose. The company's approach is to use lasers to bounce light off of areas beneath the skin that contain interstitial fluids that leak from capillaries. These interstitial fluids are absorbed by glucose in the blood. Apple's process, known as optical absorption spectroscopy, measures the reflected light to determine an individual's concentration of glucose. This concentration can then be used to calculate the blood glucose level.
Immediate jolts
It's understandable that Apple's potential entrance into the CGM market immediately caught the attention of Abbott's and DexCom's shareholders. The two healthcare stocks took a hit after the news broke about Apple's secret E5 project.
Abbott's share price fell nearly 3% immediately after the Bloomberg story was published on Feb. 22. The stock bounced back quickly, however. Still, though, Abbott's shares remain nearly 2% lower than they were prior to the revelation of Apple's CGM development efforts.
DexCom stock was hit even harder. Shares sank as much as 8% on Feb. 22 before recovering later in the day. The stock has continued to claw its way back this week but is still a little lower than it was before the Apple project was reported.
A long way to go
Should Abbott and DexCom investors really be worried about Apple's CGM efforts? Yes. The growth trajectories for both companies could be negatively impacted if Apple becomes a direct rival.
The competition would likely hurt DexCom the most. While Abbott has many other products other than FreeStyle Libre, all of DexCom's revenue is generated from its CGM systems. However, Abbott would definitely be affected if Apple is able to carve out a significant market share.
Perhaps the best news for Abbott and DexCom is that Apple still has a long way to go to perfect its CGM technology. Apple is only at the proof-of-concept stage at this point, according to Bloomberg's sources. The company could take several years before it could potentially launch a CGM product. And it's possible that Apple's efforts will fail.
Bloomberg also reported that Apple is working on a prototype device that's roughly the size of an iPhone. Abbott's and DexCom's current CGM patches are much smaller and could be preferred by many people with diabetes.
In the meantime, both Abbott and DexCom continue to invest in research and development to build better CGM technology. The companies could be able to out-innovate Apple.
The bottom line is that Apple could be a formidable rival in the CGM market at some point in the future. For now, however, Abbott and DexCom should continue to deliver solid growth with their respective CGM products.
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Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The two companies' popular continuous glucose monitoring (CGM) devices used by many patients with diabetes connect to iPhones and Apple Watches. Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). The tech giant's goal is to launch its own CGM tied to its Apple Watch, according to Bloomberg's sources, who are familiar with Apple's efforts. A long way to go Should Abbott and DexCom investors really be worried about Apple's CGM efforts? | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) enjoy symbiotic relationships with Apple (NASDAQ: AAPL). Bloomberg cited anonymous sources that revealed Apple has a secret project called E5 to measure glucose without pricking the skin to obtain blood. A long way to go Should Abbott and DexCom investors really be worried about Apple's CGM efforts? |
31149.0 | 2023-02-28 00:00:00 UTC | XLV, TMO, ABT, DHR: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/xlv-tmo-abt-dhr%3A-etf-outflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $108.9 million dollar outflow -- that's a 0.3% decrease week over week (from 307,320,000 to 306,470,000). Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $127.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $108.9 million dollar outflow -- that's a 0.3% decrease week over week (from 307,320,000 to 306,470,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $127.43. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $108.9 million dollar outflow -- that's a 0.3% decrease week over week (from 307,320,000 to 306,470,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $127.43. | Among the largest underlying components of XLV, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $108.9 million dollar outflow -- that's a 0.3% decrease week over week (from 307,320,000 to 306,470,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $118.75 per share, with $143.42 as the 52 week high point — that compares with a last trade of $127.43. |
31150.0 | 2023-02-27 00:00:00 UTC | Better Dividend Stock: Abbott Laboratories or Medtronic? | ABT | https://www.nasdaq.com/articles/better-dividend-stock%3A-abbott-laboratories-or-medtronic | nan | nan | Dividend stocks tend to outperform other asset classes during economically challenging times. The simple reason is that companies with mature businesses, and hence stable free cash flows, are typically less sensitive to economic headwinds.
The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. Despite both companies raising their dividends for over four straight decades, Abbott and Medtronic's shares actually sank faster than the broader markets over the course of 2022.
ABT data by YCharts.
Which of these beaten-down dividend stocks is the better buy right now? Let's dig deeper to find out.
The case for Abbott Laboratories
Abbott's stock price has struggled of late for four reasons:
An investigation into its infant formula business isn't sitting well with shareholders.
Declining COVID-19 product sales weighed heavily on its 2022 fourth-quarter financial results.
Apple's rumored development of a noninvasive glucose monitoring device (CGM) is a potential competitive threat to the company's Libre CGM franchise. Libre sales currently account for approximately 10% of Abbott's consolidated revenue.
Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio.
On the plus side of the ledger, Abbott is expected to return to top-line growth next year. Wall Street bulls think that newer medical devices like the transcatheter aortic valve implantation system Navitor and the chronic pain device Eterna can power the company past most, if not all, of these headwinds.
Dividend-wise, Abbott pays out an annualized yield of 2% at current levels, which is slightly higher than the average dividend-paying stock in the benchmark S&P 500 index. Its dividend also appears sustainable for the long haul based on the company's below-average payout ratio of 48%.
The case for Medtronic
Medtronic's stock took a step backward in 2022 due to supply chain issues, hospital staffing challenges, and a sharp uptick in patients delaying medical procedures due to the pandemic, among other headwinds beyond the company's control.
With most of these difficulties starting to ease, Wall Street analysts think the company's financial results ought to normalize over the balance of the current year. What's more, the medical device giant's bulls are optimistic that new product launches in cardiovascular care and diabetes could return it to mid-single-digit top-line growth in 2024.
On the dividend front, Medtronic has proven its dedication to rewarding loyal shareholders through its 45-year streak of consecutive payout increases. At current levels, the company also offers an above-average yield of 3.26%.
Medtronic's relatively high dividend yield is especially attractive in light of its bargain-basement valuation. While the average large-cap medical device company trades at over 45 times trailing earnings, Medtronic's stock is presently being valued at a far more modest price-to-earnings ratio of 27.9.
Now, Medtronic's payout ratio is on the high side at 87.8%. And while its return to top-line growth next year should improve this key metric, this elevated payout ratio does imply that future dividend increases might be modest in nature.
Verdict
Although Abbott and Medtronic both have fundamentally sound businesses, Medtronic is arguably the better dividend stock to buy right now. The medical device titan sports a substantially higher yield, and it comes with fewer question marks from a near-term growth standpoint.
Medtronic's rich history of annual dividend increases should also comfort any investors concerned about a possible payout reduction. The company's payout ratio, after all, should normalize as the medical procedure space ramps up post-COVID.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. ABT data by YCharts. Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. | The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. ABT data by YCharts. Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. | The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. ABT data by YCharts. Abbott's stock has long held a premium valuation -- relative to Wall Street's fair value estimate -- due to its stable revenue stream, 51-year streak of raising its dividend, and highly diversified product portfolio. | The dividend powerhouses Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) apparently didn't get this memo, however. ABT data by YCharts. Now, Medtronic's payout ratio is on the high side at 87.8%. |
31151.0 | 2023-02-27 00:00:00 UTC | Dividend Stocks To Buy Now? 3 For Your Watchlist | ABT | https://www.nasdaq.com/articles/dividend-stocks-to-buy-now-3-for-your-watchlist | nan | nan | Dividends refer to payments made by companies to their shareholders. This is typically in the form of cash or additional shares of stock. With that, companies generally pay dividends to their shareholders on a regular basis. This can be monthly, quarterly, or annually. This serves as a way for companies to distribute a portion of their profits to their shareholders. Which provides a steady source of income for investors. For those seeking a long-term investment strategy, dividend payments can play a significant role in total returns.
Next, dividend stocks are shares of stock that pay dividends to their shareholders. They are a popular choice among investors seeking reliable sources of income and can be found in a variety of industries, such as utilities, consumer staples, and healthcare. Typically, companies that pay dividends are well-established with strong financial records. As such, they provide a sense of stability for investors seeking a conservative approach to investing.
Investing in dividend stocks can be a way to generate income while potentially benefiting from capital appreciation. However, it’s important to note that dividend payments are not guaranteed, and may be reduced or eliminated at any time. Retail investors should carefully research and evaluate the risks before making any investment decisions. With that said, let’s explore three top dividend stocks for your stock market watchlist today.
Dividend Stocks To Buy [Or Avoid] Now
Exxon Mobil Corporation (NYSE: XOM)
Medtronic plc. (NYSE: MDT)
Abbott Laboratories (NYSE: ABT)
Exxon Mobil (XOM Stock)
Exxon Mobil Corporation (XOM) is a multinational energy company. In brief, Exxon Mobil engages in the exploration, production, transportation, and sale of crude oil and natural gas. With a long history of paying and increasing dividends, XOM currently offers a 3.31% annual dividend yield for shareholders.
At the end of last month, Exxon reported its 4th quarter 2022 financial results. In detail, the company reported earnings of $3.40 per share with revenue of $95.4 billion. This is versus Wall Street’s consensus estimates for Q4 2022 which were earnings of $3.32 per share, and revenue estimates of $99.7 billion. What’s more, Exxon also notched in a 12.3% increase in revenue versus the same period, in 2021.
Meanwhile, as of Monday morning’s trading session, shares of XOM stock are up slightly off the open by 0.15% at $110.94 per share.
Source: TD Ameritrade TOS
[Read More] 3 E-Commerce Stocks To Watch In February 2023
Medtronic (MDT Stock)
Next, Medtronic plc. (MDT) is a medical device company. For starters, the company develops and manufactures products for various medical specialties, including cardiac and vascular health, diabetes management, and neurological conditions. Today, MDT has an annual dividend yield of 3.24%.
Earlier this month, Medtronic reported its Q3 2022 financial results. Diving in, the company posted Q3 2022 earnings per share of $1.30 with revenue of $7.7 billion. This came in better than analysts’ consensus estimates for the quarter which was earnings per share of $1.26 on revenue of $7.5 billion.
Moving along, off the open on Monday morning, shares of MDT stock are trading modestly higher by 0.37% so far at $83.80 per share.
Source: TD Ameritrade TOS
[Read More] 3 Copper Mining Stocks To Watch In February 2023
Abbott Laboratories (ABT Stock)
Lastly, Abbott Laboratories (ABT) is a healthcare company. The company specializes in the development and manufacturing of medical devices, diagnostics, and nutritional products. Currently, ABT has an annual dividend yield for shareholders of 2.02%.
To add to this, on February 17, 2023, Abbott Labs announced that its board of directors has declared a quarterly common dividend of $0.51 per common share. For context, this is the 397th straight quarterly dividend that Abbott has paid since 1924. The dividend is payable on May 15, 2023, to shareholders of record on April 14, 2023.
Moving along, on Monday morning, ABT stock is trading higher off the open by 0.77% at $101.20 per share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (NYSE: MDT) Abbott Laboratories (NYSE: ABT) Exxon Mobil (XOM Stock) Exxon Mobil Corporation (XOM) is a multinational energy company. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 Abbott Laboratories (ABT Stock) Lastly, Abbott Laboratories (ABT) is a healthcare company. Currently, ABT has an annual dividend yield for shareholders of 2.02%. | (NYSE: MDT) Abbott Laboratories (NYSE: ABT) Exxon Mobil (XOM Stock) Exxon Mobil Corporation (XOM) is a multinational energy company. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 Abbott Laboratories (ABT Stock) Lastly, Abbott Laboratories (ABT) is a healthcare company. Currently, ABT has an annual dividend yield for shareholders of 2.02%. | (NYSE: MDT) Abbott Laboratories (NYSE: ABT) Exxon Mobil (XOM Stock) Exxon Mobil Corporation (XOM) is a multinational energy company. Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 Abbott Laboratories (ABT Stock) Lastly, Abbott Laboratories (ABT) is a healthcare company. Currently, ABT has an annual dividend yield for shareholders of 2.02%. | Source: TD Ameritrade TOS [Read More] 3 Copper Mining Stocks To Watch In February 2023 Abbott Laboratories (ABT Stock) Lastly, Abbott Laboratories (ABT) is a healthcare company. (NYSE: MDT) Abbott Laboratories (NYSE: ABT) Exxon Mobil (XOM Stock) Exxon Mobil Corporation (XOM) is a multinational energy company. Currently, ABT has an annual dividend yield for shareholders of 2.02%. |
31152.0 | 2023-02-26 00:00:00 UTC | Validea Guru Fundamental Report for ABT - 2/26/2023 | ABT | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abt-2-26-2023 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31153.0 | 2023-02-24 00:00:00 UTC | Why Is Abbott (ABT) Down 7.7% Since Last Earnings Report? | ABT | https://www.nasdaq.com/articles/why-is-abbott-abt-down-7.7-since-last-earnings-report | nan | nan | It has been about a month since the last earnings report for Abbott (ABT). Shares have lost about 7.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Abbott due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Abbott's Q4 Earnings and Revenues Beat Estimates
Abbott reported fourth-quarter 2022 adjusted earnings of $1.03 per share, which exceeded the Zacks Consensus Estimate by 14.4%. The adjusted figure however declined from the prior-year quarter’s levels by 22%.
The quarter’s adjustments include 44 cents of certain non-recurring items.
GAAP earnings per share came in at 59 cents, a 46.8% plunge year on year.
For the full year, adjusted earnings per share came in at $5.34, exceeding the Zacks Consensus Estimate and the year-ago figure by 2.5%.
Fourth-quarter worldwide sales of $10.09 billion were down 12% year over year on a reported basis. The top line however exceeded the Zacks Consensus Estimate by 6.4%.
On an organic basis (excluding the impact of foreign exchange), sales declined 6.1% year over year in the reported quarter.
Worldwide sales for 2022 were $43.65 billion, up 1.3% from 2021 on a reported basis and 6.4% on an organic basis. The full-year top line exceeded the Zacks Consensus Estimate by 1.4%.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the fourth quarter, Established Pharmaceuticals sales improved 1% on a reported basis (up 7.9% on an organic basis) to $1.22 billion. Organic sales in key emerging markets improved 10.3% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Mexico, and across several therapeutic areas, including cardiometabolic, women's health and central nervous system/pain management.
Medical Devices business sales were flat year over year on a reported basis (up 7.4% on an organic basis) at $3.75 billion. U.S. Sales growth was led by strong double-digit growth in Electrophysiology, Structural Heart and Diabetes Care. Internationally, sales growth was negatively impacted by intermittent COVID-19 lockdown restrictions in China as well as supply constraints in certain areas, most notably Electrophysiology and Diabetes Care.
Diabetes Care reported organic growth of 17.4% year over year, led by FreeStyle Libre, which contributed $1.1 billion of revenues in the reported quarter.Structural Heart sales rose 13% and Heart Failure sales improved 5.9% year over year organically. Meanwhile, the Vascular business recorded an organic sales decline of 1% in the quarter under review. Electrophysiology, Rhythm Management and Neuromodulation recorded organic growth of 7.3%, 1.5% and 0.9%, respectively, in the quarter under review.
Nutrition sales were down 11.1% year over year on a reported basis (down 5.7% on an organic basis) to $1.82 billion. Pediatric Nutrition sales registered an 11.8% slump on an organic basis. The downside was due to a manufacturing disruption during 2022 of certain infant formula products at Abbott's Sturgis, MI facility.
Adult Nutrition sales improved 0.5% organically. Per the company, Adult Nutrition sales benefited from improved sales performance of Abbott's complete and balanced nutrition brand, Ensure, globally.
Diagnostics sales were down 26.1% year over year on a reported basis (down 21.3% on an organic basis) to $3.31 billion. Core Laboratory Diagnostics sales were up 2.8% organically. Meanwhile, Molecular Diagnostics declined 44.7% on an organic basis. Rapid Diagnostics sales declined 31.6% on an organic basis, whereas Point of Care Diagnostics sales fell 1.2% organically.
Margins
Gross profit for the reported quarter fell 17.9% year over year to $5.49 billion. Gross margin contracted 396 basis points (bps) to 54.5%.
Selling, general and administrative expenses were down 2.5% year over year to $2.97 billion. Research and development expenses declined 4.9% year over year to $725 million.
The company reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. Adjusted operating margin, too, contracted 738 bps to 17.8%.
2023 Guidance
Abbott issued its 2023 earnings per share guidance.
Full-year adjusted earnings (excluding specified items of $1.25 per share) are expected to be in the range of $4.30 to $4.50. The current Zacks Consensus Estimate is pegged at $4.39.
Abbott projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales, of high-single digits and COVID testing-related sales of around $2 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Abbott has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Abbott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has been about a month since the last earnings report for Abbott (ABT). Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. | It has been about a month since the last earnings report for Abbott (ABT). Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott's Q4 Earnings and Revenues Beat Estimates Abbott reported fourth-quarter 2022 adjusted earnings of $1.03 per share, which exceeded the Zacks Consensus Estimate by 14.4%. | It has been about a month since the last earnings report for Abbott (ABT). Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Diabetes Care reported organic growth of 17.4% year over year, led by FreeStyle Libre, which contributed $1.1 billion of revenues in the reported quarter.Structural Heart sales rose 13% and Heart Failure sales improved 5.9% year over year organically. | It has been about a month since the last earnings report for Abbott (ABT). Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott's Q4 Earnings and Revenues Beat Estimates Abbott reported fourth-quarter 2022 adjusted earnings of $1.03 per share, which exceeded the Zacks Consensus Estimate by 14.4%. |
31154.0 | 2023-02-24 00:00:00 UTC | Better Buy: Abbott Laboratories or DexCom Stock? | ABT | https://www.nasdaq.com/articles/better-buy%3A-abbott-laboratories-or-dexcom-stock | nan | nan | Americans are getting heavier and have been for a while. According to the Centers for Disease Control and Prevention, U.S. obesity prevalence has increased since 1999, from 30.5% to 41.9%, with severe obesity growing from 4.7% to 9.2%.
With all that extra weight comes an increased likelihood of certain obesity-related conditions, such as heart disease, strokes, certain cancers, and type 2 diabetes. According to MarketStudyReport, a market research firm, the global diabetes care devices market was $23.3 billion in 2022 and is projected to reach $32.7 billion by 2028, representing a compound annual growth rate of 4.95% over this period.
Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) are both poised to benefit from increased spending on diabetes care devices as they manufacture continuous glucose monitoring devices used by diabetes patients. Which healthcare company is the better buy? Let's see.
The case for Abbott Laboratories
Abbott Laboratories stock is down over 4% in 2023 and more than 10% over the past 12 months. What's hurting it lately is news that the Securities and Exchange Commission and Federal Trade Commission are investigating Abbott in connection with its infant formula business.
The company had a voluntary recall and manufacturing shutdown of certain infant formulas at its plants a year ago after U.S. Food and Drug Administration (FDA) investigators found cronobacter sakazakii bacteria at the company's Sturgis, Michigan plant. At least two dozen families are suing Abbott over allegedly contaminated formula.
Abbott's big advantage over DexCom is its size and scope, which makes it easier to adapt to changing market conditions, or to overcome legal judgments. It has more than 115,000 employees, compared to roughly 8,000 for DexCom. Abbott operates in four segments: nutrition, diagnostics, medical devices, and established pharmaceuticals.
Abbott reported full-year and fourth-quarter earnings on Jan. 25. 2022 revenue totaled $43.7 billion, up 1.3%, with earnings per share of $3.91, down 0.8%. In the fourth quarter, the company reported revenue of $10.1 billion, down 12% year over year, thanks mostly to reduced COVID-19 testing sales. Earnings per share (EPS) were $0.59, down 46.8% compared to Q4 2021.
One big bright spot for Abbott was diabetes care sales of $4.8 billion for the year, up 9.9%. Within those sales, the company's Freestyle Libre continuous glucose monitors (CGMs) reported sales of $1.1 billion in Q4, up 40% year over year. This was thanks in part to the FDA's 2022 clearance of the Freestyle Libre 3 model, said to be the world's smallest CGM.
Another positive sign for Abbott was its diagnostics sales, which, excluding COVID testing sales, were $16.6 billion in 2022, up 6%. Diagnostics was led by rapid diagnostics products, whose sales were $10.2 billion in 2022, up 19%. Abbott's guidance points to a down year in 2023, saying it expected EPS between $3.15 and $3.25, down 18%.
The company is a favorite of income investors because it has increased its quarterly dividend for 51 consecutive years, That includes an 8.5% boost in December 2022 to $0.51 per share, equal to a yield of around 1.97%, slightly above the S&P 500 average dividend.
DXCM Revenue (Annual) data by YCharts
The case for DexCom
DexCom's stock is up only slightly in 2023, but up more than 19% over the past year. The company's sole products are CGMs and CGM-related peripherals.
DexCom's price-to-earnings ratio (P/E) of 140 makes it appear less of a buy than Abbott's P/E of about 26. But the reason the stock is more expensive is DexCom's continued growth and its profit margin of 64.7%, compared to Abbott's profit margin of 56.1%.
The company reported $2.91 billion in revenue in 2022, up 19%, and EPS of $0.82, up 54.7%. In Q4, that growth didn't slow down, with revenue of $815.2 million, up 17% year over year, and EPS of $0.22, compared to an EPS loss of $0.01 in the same period a year ago.
This could be another big year for DexCom. The DexCom G7, its latest CGM, was cleared by the FDA last year and just launched on Feb. 17. The company made a big splash with an ad during the Super Bowl for the product featuring singer Nick Jonas, who has type 1 diabetes. The G7 is covered by Medicare. The device's sensor is only slightly larger than Abbott's Freestyle Libre 3, and also operates in conjunction with a phone app.
In its 2023 guidance, the company said it expects revenue of between $3.35 billion and $3.49 billion, up 15% to 20%, and a non-GAAP gross profit margin of between 62% and 63%.
Making a solid choice
Choosing between these stocks may depend on what kind of investor you are. While both are good long-term choices, Abbott has a longer track record as a company and more diversity in its revenue streams. And because of its dependable dividend, it may be better for income-oriented investors. However, its infant formula issues could also be a drag on the company's stock price for a while, and the company's own guidance points to lower EPS in 2023.
DexCom has a less diverse business model. However, the company's revenue and EPS growth and better margins make it the better play for growth-oriented investors with a longer window of investing. And in the short term, it may be the better choice because it isn't facing lawsuits or investigations.
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Jim Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) are both poised to benefit from increased spending on diabetes care devices as they manufacture continuous glucose monitoring devices used by diabetes patients. With all that extra weight comes an increased likelihood of certain obesity-related conditions, such as heart disease, strokes, certain cancers, and type 2 diabetes. Abbott's big advantage over DexCom is its size and scope, which makes it easier to adapt to changing market conditions, or to overcome legal judgments. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) are both poised to benefit from increased spending on diabetes care devices as they manufacture continuous glucose monitoring devices used by diabetes patients. Within those sales, the company's Freestyle Libre continuous glucose monitors (CGMs) reported sales of $1.1 billion in Q4, up 40% year over year. But the reason the stock is more expensive is DexCom's continued growth and its profit margin of 64.7%, compared to Abbott's profit margin of 56.1%. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) are both poised to benefit from increased spending on diabetes care devices as they manufacture continuous glucose monitoring devices used by diabetes patients. In the fourth quarter, the company reported revenue of $10.1 billion, down 12% year over year, thanks mostly to reduced COVID-19 testing sales. Within those sales, the company's Freestyle Libre continuous glucose monitors (CGMs) reported sales of $1.1 billion in Q4, up 40% year over year. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) are both poised to benefit from increased spending on diabetes care devices as they manufacture continuous glucose monitoring devices used by diabetes patients. Within those sales, the company's Freestyle Libre continuous glucose monitors (CGMs) reported sales of $1.1 billion in Q4, up 40% year over year. The company reported $2.91 billion in revenue in 2022, up 19%, and EPS of $0.82, up 54.7%. |
31155.0 | 2023-02-23 00:00:00 UTC | Abbott (ABT) Stock Sinks As Market Gains: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-sinks-as-market-gains%3A-what-you-should-know-2 | nan | nan | Abbott (ABT) closed the most recent trading day at $102.55, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.2%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 8.74% over the past month. This has lagged the Medical sector's loss of 2.5% and the S&P 500's gain of 0.67% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $0.98, down 43.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.64 billion, down 18.98% from the prior-year quarter.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. These results would represent year-over-year changes of -17.98% and -8.97%, respectively.
Any recent changes to analyst estimates for Abbott should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% lower. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 23.43. This valuation marks a discount compared to its industry's average Forward P/E of 24.11.
It is also worth noting that ABT currently has a PEG ratio of 4.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABT's industry had an average PEG ratio of 2.14 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed the most recent trading day at $102.55, moving -0.14% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.6. | ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. Abbott (ABT) closed the most recent trading day at $102.55, moving -0.14% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 4.6. | Abbott (ABT) closed the most recent trading day at $102.55, moving -0.14% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.6. | Abbott (ABT) closed the most recent trading day at $102.55, moving -0.14% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $39.74 billion. It is also worth noting that ABT currently has a PEG ratio of 4.6. |
31156.0 | 2023-02-23 00:00:00 UTC | Is Abbott Stock A Better Pick Over This Pharmaceuticals Bellwether? | ABT | https://www.nasdaq.com/articles/is-abbott-stock-a-better-pick-over-this-pharmaceuticals-bellwether | nan | nan | We believe that Abbott stock (NYSE: ABT) is a better pick than its sector peer, Johnson & Johnson stock (NYSE: JNJ). Both stocks are trading at a similar valuation of a little over 4x trailing revenues. Although Abbott has seen better revenue growth over recent years, J&J is more profitable. Still, in our view, Abbott’s better prospects and attractive valuation make it a better pick.
Looking at stock returns, JNJ has outperformed ABT and the broader indices. While JNJ is down 2% in the last twelve months, ABT is down 12%, and the S&P500 index is down 6%. There is more to the comparison, and in the sections below, we discuss why we believe ABT stock will offer slightly better returns than JNJ stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Abbott vs. Johnson & Johnson: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Abbott’s Revenue Growth Is Better
J&J’s revenue growth of 5% over the last twelve months is higher than 1% for Abbott.
However, if we look at a longer time frame, Abbott has fared better, with its sales rising at an average annual rate of 11.4% to $43.7 billion in 2022, compared to $31.9 billion in 2019, while J&J saw its sales rise at an average rate of 4.9% to $95.6 billion in 2022, vs. $82.1 billion in 2019.
A high demand for Covid-19 testing drove Abbott’s sales growth in recent years. However, as the Covid-19 cases have declined over the last year or so, the demand for testing is falling, weighing on Abbott’s diagnostics business.
That said, the company’s medical devices and established pharmaceutical sales will likely grow steadily over the coming years.
While J&J’s medical devices business faced headwinds in 2020 due to the pandemic’s impact, it rebounded in 2021.
The pharmaceuticals segment saw a 14% rise in 2021 sales and 2% growth in 2022, while the medical devices segment sales were up 18% and 1% over the same period, respectively.
The company’s pharmaceuticals business is seeing strong growth led by market share gains for its cancer drugs, Darzalex and Erleada, and immunology drugs, Stelara and Tremfya. However, declining sales of some of its drugs, including Remicade, have offset this growth.
Our Abbott Revenue Comparison and Johnson & Johnson Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Abbott’s revenue is expected to grow just a tad faster than J&J’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 3.6% for Abbott, compared to a 3.2% CAGR for J&J, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. J&J Is More Profitable
J&J’s operating margin of 25.2% over the last twelve-month period is better than 20.4% for Abbott.
The figures stood at 24.1% and 16.1% in 2019, before the pandemic, respectively.
Abbott’s free cash flow margin of 21.9% is slightly lower than 22.8% for J&J.
Our Abbott Operating Income Comparison and Johnson & Johnson Operating Income Comparison dashboards have more details.
Looking at financial risk, both are comparable. J&J’s 15% debt as a percentage of equity is higher than 9% for Abbott, but its 17% cash as a percentage of assets is also higher than 14% for the latter, implying that Abbott has a better debt position, but J&J has more cash cushion.
3. The Net of It All
We see that Abbott has demonstrated better revenue growth over the recent years and has a better debt position. On the other hand, J&J has seen better revenue growth over the recent quarters, is more profitable, and has more cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Abbott is the better choice of the two.
If we compare the current valuation to the historical average, Abbott fares better, with its stock currently trading at 4.1x trailing revenues vs. the last five-year average of 5.6x. In contrast, J&J’s stock trades at 4.4x trailing revenues vs. the last five-year average of 5.0x. Our Abbott (ABT) Valuation Ratios Comparison and Johnson & Johnson (JNJ) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for Abbott and J&J over the next three years and points to an expected return of 18% for Abbott over this period vs. a 12% expected return for J&J, based on Trefis Machine Learning analysis – Abbott vs. Johnson & Johnson – which also provides more details on how we arrive at these numbers.
While ABT may outperform JNJ over the next three years, it is helpful to see how Abbott’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.
With higher inflation and the Fed raising interest rates, among other factors, ABT stock has fallen 12% in the last twelve months. Can it drop more? See how low Abbott stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
ABT Return -7% -6% 167%
JNJ Return -3% -11% 37%
S&P 500 Return -2% 4% 78%
Trefis Multi-Strategy Portfolio -3% 9% 242%
[1] Month-to-date and year-to-date as of 2/23/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While ABT may outperform JNJ over the next three years, it is helpful to see how Abbott’s Peers fare on metrics that matter. With higher inflation and the Fed raising interest rates, among other factors, ABT stock has fallen 12% in the last twelve months. We believe that Abbott stock (NYSE: ABT) is a better pick than its sector peer, Johnson & Johnson stock (NYSE: JNJ). | Our Abbott (ABT) Valuation Ratios Comparison and Johnson & Johnson (JNJ) Valuation Ratios Comparison have more details. We believe that Abbott stock (NYSE: ABT) is a better pick than its sector peer, Johnson & Johnson stock (NYSE: JNJ). Looking at stock returns, JNJ has outperformed ABT and the broader indices. | We believe that Abbott stock (NYSE: ABT) is a better pick than its sector peer, Johnson & Johnson stock (NYSE: JNJ). Looking at stock returns, JNJ has outperformed ABT and the broader indices. While JNJ is down 2% in the last twelve months, ABT is down 12%, and the S&P500 index is down 6%. | There is more to the comparison, and in the sections below, we discuss why we believe ABT stock will offer slightly better returns than JNJ stock in the next three years. We believe that Abbott stock (NYSE: ABT) is a better pick than its sector peer, Johnson & Johnson stock (NYSE: JNJ). Looking at stock returns, JNJ has outperformed ABT and the broader indices. |
31157.0 | 2023-02-22 00:00:00 UTC | Will Medtronic Stock See Higher Levels After An Upbeat Q3? | ABT | https://www.nasdaq.com/articles/will-medtronic-stock-see-higher-levels-after-an-upbeat-q3 | nan | nan | Medtronic stock (NYSE: MDT) has risen 4% in a month, compared with -0.6% returns for the broader S&P500 index. Medtronic recently reported its Q3FY23 results, with revenue and earnings falling above our estimates. Despite its recent rise, we find MDT stock has more room for growth, as discussed below.
Medtronic’s revenue of $7.7 billion reflected a 0.5% y-o-y decline, slightly above our $7.6 billion estimate. While forex headwinds impacted the overall sales growth, its Neuroscience segment saw 4.9% growth, and cardiovascular sales were up 1.0%. The company’s earnings of $1.30 on a per share and adjusted basis was down 4% y-o-y, given the lower sales and about 200 bps fall in adjusted operating margin.
Given the upbeat results, the company raised its full-year organic sales growth forecast to be between 4.5% and 5%, compared to its prior guidance of 3.5% and 4%. It also narrowed its earnings outlook to $5.28 to $5.30 on a per share and adjusted basis, vs. its previous guided range of $5.25 and $5.30. We have updated our model to reflect the latest quarterly results. We forecast revenue of $30.6 billion, reflecting a 3.5% y-o-y decline on a reported basis, and adjusted earnings of $5.29 per share, in line with the company’s provided guidance.
We estimate Medtronic’s Valuation to be around $97 per share, 14% above the current market price of $85. This represents an 18x P/E multiple based on its expected EPS of $5.29 in fiscal 2023, compared to the last three-year average of 23x. We have lowered our P/E forecast, primarily due to an anticipated decline in earnings in the near term. Furthermore, fiscal 2024 will likely be challenging for Medtronic, with pressure on its gross and operating margins amid high costs. Also, the high-interest rate environment and the economy expected to go into recession doesn’t bode well for the company. Still, at its current valuation of $85, MDT appears to have more room for growth, as it is trading at a low multiple of 16x forward earnings compared to its historical average.
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock looks like it can gain more, the Covid-19 crisis and recent market volatility have created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Becton Dickinson vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MDT Return 2% 10% 20%
S&P 500 Return -2% 4% 79%
Trefis Multi-Strategy Portfolio -4% 7% 237%
[1] Month-to-date and year-to-date as of 2/22/2023
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Given the upbeat results, the company raised its full-year organic sales growth forecast to be between 4.5% and 5%, compared to its prior guidance of 3.5% and 4%. We forecast revenue of $30.6 billion, reflecting a 3.5% y-o-y decline on a reported basis, and adjusted earnings of $5.29 per share, in line with the company’s provided guidance. Still, at its current valuation of $85, MDT appears to have more room for growth, as it is trading at a low multiple of 16x forward earnings compared to its historical average. | We forecast revenue of $30.6 billion, reflecting a 3.5% y-o-y decline on a reported basis, and adjusted earnings of $5.29 per share, in line with the company’s provided guidance. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock looks like it can gain more, the Covid-19 crisis and recent market volatility have created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] MDT Return 2% 10% 20% S&P 500 Return -2% 4% 79% Trefis Multi-Strategy Portfolio -4% 7% 237% [1] Month-to-date and year-to-date as of 2/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We forecast revenue of $30.6 billion, reflecting a 3.5% y-o-y decline on a reported basis, and adjusted earnings of $5.29 per share, in line with the company’s provided guidance. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock looks like it can gain more, the Covid-19 crisis and recent market volatility have created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] MDT Return 2% 10% 20% S&P 500 Return -2% 4% 79% Trefis Multi-Strategy Portfolio -4% 7% 237% [1] Month-to-date and year-to-date as of 2/22/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company’s earnings of $1.30 on a per share and adjusted basis was down 4% y-o-y, given the lower sales and about 200 bps fall in adjusted operating margin. We forecast revenue of $30.6 billion, reflecting a 3.5% y-o-y decline on a reported basis, and adjusted earnings of $5.29 per share, in line with the company’s provided guidance. We estimate Medtronic’s Valuation to be around $97 per share, 14% above the current market price of $85. |
31158.0 | 2023-02-22 00:00:00 UTC | ABT Crosses Above 2% Yield Territory | ABT | https://www.nasdaq.com/articles/abt-crosses-above-2-yield-territory | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Abbott Laboratories (Symbol: ABT) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.04), with the stock changing hands as low as $100.50 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Abbott Laboratories (Symbol: ABT) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Abbott Laboratories, looking at the history chart for ABT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Abbott Laboratories (Symbol: ABT) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.04), with the stock changing hands as low as $100.50 on the day. Abbott Laboratories (Symbol: ABT) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of Abbott Laboratories, looking at the history chart for ABT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Abbott Laboratories (Symbol: ABT) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.04), with the stock changing hands as low as $100.50 on the day. Abbott Laboratories (Symbol: ABT) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of Abbott Laboratories, looking at the history chart for ABT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Abbott Laboratories (Symbol: ABT) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.04), with the stock changing hands as low as $100.50 on the day. Abbott Laboratories (Symbol: ABT) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of Abbott Laboratories, looking at the history chart for ABT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield. | Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Abbott Laboratories (Symbol: ABT) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.04), with the stock changing hands as low as $100.50 on the day. Abbott Laboratories (Symbol: ABT) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index. In the case of Abbott Laboratories, looking at the history chart for ABT below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield. |
31159.0 | 2023-02-22 00:00:00 UTC | Abbott Laboratories is Oversold | ABT | https://www.nasdaq.com/articles/abbott-laboratories-is-oversold-0 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABT entered into oversold territory, changing hands as low as $100.50 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Abbott Laboratories, the RSI reading has hit 29.1 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABT's recent annualized dividend of 2.04/share (currently paid in quarterly installments) works out to an annual yield of 1.97% based upon the recent $103.65 share price.
A bullish investor could look at ABT's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABT's 29.1 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABT entered into oversold territory, changing hands as low as $100.50 per share. | Indeed, ABT's recent annualized dividend of 2.04/share (currently paid in quarterly installments) works out to an annual yield of 1.97% based upon the recent $103.65 share price. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABT entered into oversold territory, changing hands as low as $100.50 per share. | Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABT entered into oversold territory, changing hands as low as $100.50 per share. Indeed, ABT's recent annualized dividend of 2.04/share (currently paid in quarterly installments) works out to an annual yield of 1.97% based upon the recent $103.65 share price. | Indeed, ABT's recent annualized dividend of 2.04/share (currently paid in quarterly installments) works out to an annual yield of 1.97% based upon the recent $103.65 share price. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of ABT entered into oversold territory, changing hands as low as $100.50 per share. |
31160.0 | 2023-02-21 00:00:00 UTC | Daily Dividend Report: ABT, NUE, WLK, TPR, PNR | ABT | https://www.nasdaq.com/articles/daily-dividend-report%3A-abt-nue-wlk-tpr-pnr | nan | nan | Abbott (ABT) declared a quarterly common dividend of 51 cents per share. This marks the 397th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable May 15, 2023, to shareholders of record at the close of business on April 14, 2023.
The Board of Directors of Nucor Corporation (NUE) declared the regular quarterly cash dividend of $0.51 per share on Nucor's common stock. This cash dividend is payable on May 11, 2023 to stockholders of record on March 31, 2023 and is Nucor's 200th consecutive quarterly cash dividend.
Westlake Corporation (WLK) declared today a regular dividend distribution of $0.3570 per share for the fourth quarter of 2022. This dividend will be payable on March 16, 2023, to stockholders of record on March 1, 2023.
Tapestry (TPR) declared a quarterly cash dividend of $0.30 per common share. The dividend is payable on March 27, 2023 to shareholders of record as of the close of business on March 10, 2023.
Pentair (PNR) will pay a regular quarterly cash dividend of $0.22 per share on May 5, 2023 to shareholders of record at the close of business on April 21, 2023. 2023 marks the 47th consecutive year that Pentair has increased its dividend.
VIDEO: Daily Dividend Report: ABT, NUE, WLK, TPR, PNR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) declared a quarterly common dividend of 51 cents per share. VIDEO: Daily Dividend Report: ABT, NUE, WLK, TPR, PNR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Westlake Corporation (WLK) declared today a regular dividend distribution of $0.3570 per share for the fourth quarter of 2022. | VIDEO: Daily Dividend Report: ABT, NUE, WLK, TPR, PNR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Abbott (ABT) declared a quarterly common dividend of 51 cents per share. The Board of Directors of Nucor Corporation (NUE) declared the regular quarterly cash dividend of $0.51 per share on Nucor's common stock. | Abbott (ABT) declared a quarterly common dividend of 51 cents per share. VIDEO: Daily Dividend Report: ABT, NUE, WLK, TPR, PNR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of Nucor Corporation (NUE) declared the regular quarterly cash dividend of $0.51 per share on Nucor's common stock. | VIDEO: Daily Dividend Report: ABT, NUE, WLK, TPR, PNR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Abbott (ABT) declared a quarterly common dividend of 51 cents per share. This cash dividend is payable on May 11, 2023 to stockholders of record on March 31, 2023 and is Nucor's 200th consecutive quarterly cash dividend. |
31161.0 | 2023-02-20 00:00:00 UTC | Validea Guru Fundamental Report for ABT - 2/20/2023 | ABT | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-abt-2-20-2023 | nan | nan | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). | Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31162.0 | 2023-02-20 00:00:00 UTC | Here's Why You Should Retain Abbott (ABT) Stock for Now | ABT | https://www.nasdaq.com/articles/heres-why-you-should-retain-abbott-abt-stock-for-now-3 | nan | nan | Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the Diabetes business. Solid fourth-quarter 2022 performance buoys optimism. However, forex woes and Nutrition Product recall impede growth.
In the past year, this Zacks Rank #3 (Hold) stock has lost 21.2% compared with a 44.2% decline of the industry and a 19.5% fall of the S&P 500 composite.
This renowned provider of a diversified line of healthcare products has a market capitalization of $186.11 billion. The company projects 5.1% growth for the next five years and expects to maintain its strong performance. Abbott’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 22.4%.
Let’s delve deeper.
Q4 Upsides: Abbott exited the fourth quarter of 2022 with better-than-expected earnings and revenues. Excluding COVID testing sales, worldwide Diagnostics sales grew over 11% in the fourth quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. Within EPD, sales increased 8% organically in the fourth quarter, led by double-digit growth. In Medical Device, sales rose 7.5% globally. In the United States, sales growth was led by double-digit growth in Electrophysiology, Structural Heart and Diabetes Care. Within Diabetes Care specifically, fourth-quarter sales of FreeStyle Libre grew over 40% in the United States and global Libre sales reached $4.3 billion for 2022.
Progress With Diabetes Business: This business achieved organic sales growth of 17.3% in the fourth quarter of 2022, led by strong growth in FreeStyle Libre. In the quarter, sales of FreeStyle Libre were $1.1 billion. In the United States, where sales grew more than 40%, the company initiated the full launch of Libre 3. This latest device can automatically deliver up-to-the-minute glucose readings more accurately in the world’s smallest and thinnest wearable sensor. Abbott’s Libre sales reached $4.3 billion for the full-year 2022.
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Core Diagnostics Grow Strong: In Diagnostics, COVID testing sales were $1.1 billion in the fourth quarter. Excluding COVID testing sales, worldwide diagnostics grew over 11% in the quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year. During 2022, Abbott successfully continued with the rollout of Alinity, the company’s innovative suite of diagnostic instruments and expand test menus across its platforms for immunoassay, clinical chemistry and molecular testing.
Downsides
Foreign Exchange Translation Impacts Sales: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues from outside the United States. The strengthening of the Euro and some other developed market currencies have constantly been hampering the company’s performance in the international markets.
Nutrition Product Recall Impedes Growth: Within Abbott’s Nutrition business, in the fourth quarter, worldwide Nutrition sales were down 5.7% on an organic basis, with an 11.8% slump in Pediatric Nutrition sales. The downside in total worldwide Nutrition and Pediatric Nutrition sales can be attributed to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February.
Estimate Trend
Abbott has been witnessing a negative estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.5% down to $4.38.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $39.74 billion, suggesting an 8.9% decline from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Cardinal Health, Inc. CAH and Merit Medical Systems, Inc. MMSI.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 11.6% against the industry’s 19.4% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 45.4% against the industry’s 3.1% decline over the past year.
Merit Medical, flaunting a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 23.2% against the industry’s 3.1% decline over the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the Diabetes business. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past year, this Zacks Rank #3 (Hold) stock has lost 21.2% compared with a 44.2% decline of the industry and a 19.5% fall of the S&P 500 composite. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the Diabetes business. Within Diabetes Care specifically, fourth-quarter sales of FreeStyle Libre grew over 40% in the United States and global Libre sales reached $4.3 billion for 2022. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the Diabetes business. Progress With Diabetes Business: This business achieved organic sales growth of 17.3% in the fourth quarter of 2022, led by strong growth in FreeStyle Libre. | Abbott Laboratories ABT is well-poised for growth in the coming quarters, courtesy of its continued growth in the Diabetes business. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. In Medical Device, sales rose 7.5% globally. |
31163.0 | 2023-02-20 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABT | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-6 | nan | nan | For long-term investors, there are not many things better than finding a profitable company paying you to hold shares. Yes, I'm talking about dividends. The best companies can give you annual raises, which can add to substantial investment returns over time. If a company in the S&P 500 can pay and raise its dividend annually for 50 consecutive years, it earns a designation as a Dividend King.
Healthcare is one of the most essential industries in the global economy, and it's a multitrillion-dollar industry. So why not combine these two ideas? Here are three Dividend Kings in the healthcare industry that you can own and sleep well at night while building wealth simultaneously.
1. Johnson & Johnson
Healthcare conglomerate Johnson & Johnson (NYSE: JNJ) is a dividend legend. The company has posted 60 years of consecutive increases, truly creating generational wealth. The company has a three-legged business that consists of consumer products, medical devices, and pharmaceuticals. The business makes more than $94 billion in annual revenue.
The company has a lot going on; it has some very public lawsuits hanging over its head regarding adverse health effects allegedly caused by some of its talc-based products. There are more than 40,000 pending suits against the company, which could be very expensive if things don't go Johnson & Johnson's way. Management is spinning off its consumer products business as Kenvue in November, in part, as a way to help shield itself from some of the liability from these pending lawsuits. Shareholders could see the dividend divided between Kenvue and the remainder of Johnson & Johnson.
So why should investors buy Johnson & Johnson now instead of running away from the stock? The current lawsuits will have short-term implications but shouldn't affect it all that much long term; The company has a sparkling balance sheet, which carries a rare AAA credit rating from S&P Global. Cash profits surpassed $17 billion over the past year alone. Even in a worst-case scenario with billions in liabilities, Johnson & Johnson is financially prepared to absorb those expenses without disrupting its overall business. Shareholders will have shares of both Johnson & Johnson and Kenvue after the spin-off. But the J&J shareholders will own a company with segments that are more geared toward growth that won't be hampered by the slower-growing consumer segment.
JNJ Revenue (TTM) data by YCharts
Looking past the lawsuits, you can see Johnson & Johnson's consistent growth in the above chart, which could continue. Analyst estimates call for earnings-per-share (EPS) growth averaging 5.5% over the next three to five years, which gives investors potential total returns of 8% to 9% when factoring in the dividend's 2.8% yield. The stock's forward price-to-earnings (P/E) ratio of 15 offers a potentially attractive entry point for long-term investors, given the company's dependability and near-market average return potential at a less expensive valuation. Investors may not have the buying opportunity of today if not for the lawsuit drama hanging over the company.
2. Abbott Laboratories
Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. The dividend has continued rising through all of this, on a 51-year streak that continues today.
Abbott has grown revenue by an average of nearly 10% annually over the past five years, thanks to its focus on cardiovascular disease and diabetes. The company benefited from the pandemic with a COVID-19 testing device it brought to market, but that multibillion-dollar opportunity has almost run its course. Abbott's growth could slow over the next several years as the company works to backfill that revenue hole. Analysts believe EPS will average 5% annual growth over three to five years.
ABT Revenue (TTM) data by YCharts
Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. However, the decline of COVID-19 testing equipment sales will be a headwind that will slow growth for a little while. Investors should temper expectations for the short term, but Abbott's track record of solid performance remains intact for the years beyond.
3. AbbVie
Pharmaceutical company AbbVie (NYSE: ABBV) has grown by leaps and bounds since splitting from Abbott a decade ago. AbbVie is known for its best-selling drug Humira, the Botox brand, and several others that add up to $58 billion in annual sales. AbbVie has continued its dividend-growing tradition, now at a 51-year streak (when including its days as part of Abbott Labs). The stock's 3.9% dividend yield is a great way to earn passive income from investing.
Humira, AbbVie's top-selling drug, recently lost patent exclusivity in the U.S. market. Generic competitors called biosimilars have begun entering the market, which will cause a drop in Humira's sales. While not ideal, AbbVie's strong pipeline and financials should keep the dividend intact.
ABBV Revenue (TTM) data by YCharts
However, growth could slow in the years ahead; analysts are looking for EPS growth averaging 4% annually over the next few years. That's a notable slowdown from the 8% earnings growth AbbVie averaged over the previous decade. The stock's valuation has come down as a result, with shares trading at a forward P/E ratio of 13, far below the median P/E of 21 in the past decade. But even if the valuation remains depressed, the stock's dividend and mid-single-digit growth could generate solid total returns.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and S&P Global. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. ABT Revenue (TTM) data by YCharts Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. The company has a lot going on; it has some very public lawsuits hanging over its head regarding adverse health effects allegedly caused by some of its talc-based products. | Abbott Laboratories Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. ABT Revenue (TTM) data by YCharts Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. Johnson & Johnson Healthcare conglomerate Johnson & Johnson (NYSE: JNJ) is a dividend legend. | Abbott Laboratories Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. ABT Revenue (TTM) data by YCharts Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. Johnson & Johnson Healthcare conglomerate Johnson & Johnson (NYSE: JNJ) is a dividend legend. | Abbott Laboratories Fellow conglomerate Abbott Laboratories (NYSE: ABT) has made many changes over the past decade -- the company's main pharmaceutical business was spun off, and some big mergers have rebuilt Abbott around nutrition products, diagnostic and medical devices, and generic pharmaceuticals. ABT Revenue (TTM) data by YCharts Shares trade at a forward P/E of 24, below the stock's average P/E of 32 over the past decade. If a company in the S&P 500 can pay and raise its dividend annually for 50 consecutive years, it earns a designation as a Dividend King. |
31164.0 | 2023-02-19 00:00:00 UTC | Validea's Top Ten Healthcare Stocks Based On Peter Lynch - 2/19/2023 | ABT | https://www.nasdaq.com/articles/valideas-top-ten-healthcare-stocks-based-on-peter-lynch-2-19-2023 | nan | nan | The following are the top rated Healthcare stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
PFIZER INC. (PFE) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Pfizer Inc. is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products around the world. The Company operations through two segments: Biopharma and PC1. Biopharma is a science-based medicines business that includes six therapeutic areas, such as Vaccines, Hospital, Oncology, Internal Medicine, Rare Disease, and Inflammation & Immunology. PC1 is its global contract development and manufacturing organization and supplier of specialty active pharmaceutical ingredients. Its Vaccines include Comirnaty/BNT162b2, the Prevnar family, Nimenrix and others. Its Oncology products include Ibrance, Xtandi, Inlyta, Sutent, Retacrit, Lorbrena and Braftovi. Its Internal Medicine products include Eliquis and the Premarin family. Its Inflammation & Immunology products include Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis and Cibinqo. It also offers Rimegepant and Zavegepant.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
Detailed Analysis of PFIZER INC.
PFE Guru Analysis
PFE Fundamental Analysis
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Corcept Therapeutics Incorporated is a commercial-stage company engaged in the discovery and development of drugs that treat severe metabolic, oncologic and neuropsychiatric disorders by modulating the effects of the hormone cortisol. The Company operates through the discovery, development and commercialization of the pharmaceutical products segment. It has marketed Korlym (mifepristone) for the treatment of patients suffering from Cushing's syndrome. The Company's portfolio of selective cortisol modulators consists of four series totaling approximately 1,000 compounds. Its portfolio of selective cortisol modulators consists of relacorilant, exicorilant, dazucorilant and miricorilant. Its cortisol activity can be modulated by a drug that competes with cortisol as it attempts to bind to the glucocorticoid receptor (GR). The Company's ingredient, mifepristone, reduces the binding of excess cortisol to GR. Its compounds bind to GR but not the progesterone, estrogen, or androgen receptors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED
CORT Guru Analysis
CORT Fundamental Analysis
EMERGENT BIOSOLUTIONS INC (EBS) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Emergent BioSolutions, Inc. is a life sciences company focused on providing preparedness and response solutions addressing accidental, deliberate and naturally occurring public health threats (PHTs). The Company is focused on five PHT categories: chemical, biological, radiological, nuclear and explosives (CBRNE); emerging infectious diseases; travel health; public health crises (such as the opioid crisis and the COVID-19 pandemic); acute, emergency, and community care. Its business lines include Medical Countermeasures (MCM), Commercial and CDMO. MCM focuses primarily on procurement of MCM products and procured product candidates by domestic and international government customers. It provides solutions for PHTs through a portfolio of vaccines and therapeutics that it develops and manufactures for governments and consumers. It offers TEMBEXA (brincidofovir) an antiviral for the treatment of smallpox in all age groups, including adults, and for patients who have difficulty swallowing.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EMERGENT BIOSOLUTIONS INC
EBS Guru Analysis
EBS Fundamental Analysis
LABORATORY CORP. OF AMERICA HOLDINGS (LH) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Laboratory Corporation of America Holdings is a global life sciences company. The Company provides information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make decisions. Its segments include Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). The Dx segment is an independent clinical laboratory business. It offers a menu of frequently requested and specialty diagnostic tests through an integrated network of primary and specialty laboratories across the United States. In addition to diagnostic testing along with occupational and wellness testing for employers and forensic DNA analysis, Dx segment also offers a range of other testing services. The DD segment is a contract research organizations (CRO) business that provides end-to-end drug development services. The DD segment provides these services predominantly to pharmaceutical, biotechnology and medical device companies across the world. It serves clients in more than 100 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of LABORATORY CORP. OF AMERICA HOLDINGS
LH Guru Analysis
LH Fundamental Analysis
MERCK & CO INC (MRK) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Merck & Co., Inc. is a global health care company. The Company offers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products. It operates through two segments: Pharmaceutical and Animal Health. The Company's Pharmaceutical segment includes human health pharmaceutical and vaccine products. Its human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations. The Animal Health segment develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
Detailed Analysis of MERCK & CO INC
MRK Guru Analysis
MRK Fundamental Analysis
PATTERSON COMPANIES, INC. (PDCO) is a mid-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Patterson Companies, Inc. is a specialty distributor serving the United States and Canadian dental supply markets and the United States, Canadian and United Kingdom animal health supply markets. The Company's segments include Dental, Animal Health and Corporate. Dental segment provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value-added services to dentists, dental laboratories, institutions, and other healthcare professionals throughout North America. Animal Health segment is a full-line distributor in North America and the United Kingdom. of animal health products, services, and technologies to both the production-animal and companion-pet markets. The Company provides relief services. It also provides pasteurizing equipment and single-use bags that allow dairy producers to produce, store and feed colostrum for newborn calves, as well as product offerings for beef cattle producers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of PATTERSON COMPANIES, INC.
PDCO Guru Analysis
PDCO Fundamental Analysis
DR REDDY'S LABORATORIES LTD (ADR) (RDY) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dr. Reddy's Laboratories Limited is an India-based pharmaceutical company. The Company's segments include Global Generics, which is engaged in manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics); Pharmaceutical Services and Active Ingredients (PSAI), which is engaged in manufacturing and marketing active pharmaceutical ingredients and intermediates for finished pharmaceutical products; Proprietary Products, which focuses on research and development of differentiated formulations and Others, which consists of the Company's wholly-owned subsidiary, Aurigene Discovery Technologies Limited, which is a discovery stage biotechnology company developing novel and therapies in the fields of oncology and inflammation.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of DR REDDY'S LABORATORIES LTD (ADR)
RDY Guru Analysis
RDY Fundamental Analysis
CHEMED CORPORATION (CHE) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Peter Lynch is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Chemed Corporation is focused on purchasing, operating, and divests subsidiaries in diverse business activities. The Company's segments include VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The VITAS segment provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. The Company's VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers. The Company services are provided through a network of Company-owned branches, independent contractors, and franchisees. The Company operates through its two wholly owned subsidiaries VITAS Healthcare Corporation and Roto-Rooter Group, Inc.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of CHEMED CORPORATION
CHE Guru Analysis
CHE Fundamental Analysis
INTEGER HOLDINGS CORP (ITGR) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Integer Holdings Corporation is a medical device outsource (MDO) manufacturer, which serves the cardiac, neuromodulation, vascular, orthopedics, advanced surgical and portable medical markets. The Company's segments include Medical and Non-Medical. The Medical segment includes the Cardio and Vascular, Cardiac and Neuromodulation and Advanced Surgical, Orthopedics and Portable Medical product lines. The Non-Medical segment comprises the Electrochem product line. The Company provides medical technologies and develops batteries for various applications in the non-medical energy, military, and environmental markets. Its brands include Greatbatch Medical, Lake Region Medical and Electrochem. Its primary customers include large, multi-national original equipment manufacturers and their affiliated subsidiaries. It operates approximately 18 facilities in the United States, five in Europe, three in Mexico, two in Asia, one in the Dominican Republic, one in South America, and one in Israel.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of INTEGER HOLDINGS CORP
ITGR Guru Analysis
ITGR Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of PFIZER INC. PFE Guru Analysis PFE Fundamental Analysis ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The VITAS segment provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. | Detailed Analysis of PFIZER INC. PFE Guru Analysis PFE Fundamental Analysis ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The Company's segments include Global Generics, which is engaged in manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics); Pharmaceutical Services and Active Ingredients (PSAI), which is engaged in manufacturing and marketing active pharmaceutical ingredients and intermediates for finished pharmaceutical products; Proprietary Products, which focuses on research and development of differentiated formulations and Others, which consists of the Company's wholly-owned subsidiary, Aurigene Discovery Technologies Limited, which is a discovery stage biotechnology company developing novel and therapies in the fields of oncology and inflammation. | Detailed Analysis of PFIZER INC. PFE Guru Analysis PFE Fundamental Analysis ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. | Detailed Analysis of PFIZER INC. PFE Guru Analysis PFE Fundamental Analysis ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. |
31165.0 | 2023-02-17 00:00:00 UTC | Interview With David Rolfe of Wedgewood Partners | ABT | https://www.nasdaq.com/articles/interview-with-david-rolfe-of-wedgewood-partners | nan | nan | David Rolfe is the chief investment officer and portfolio manager at Wedgewood Partners. Under his leadership, Wedgewood was named a separately managed account (SMA) manager of the year in both 2011 and 2013. He writes some of the most thorough quarterly investing letters I'm aware of and those letters (and Wedgewood's investment performance) are included in the Investment Masters Class website. Wedgewood letters have also been honored by Professor Lawrence Cunningham in his journal article "Lessons from Quality Shareholders." David has been a featured guest on CNBC and Barron's, and he will be presenting at the Guru Investing Conference in Omaha this May.
What follows is a recent interview I conducted with David over email.
John Rotonti: Tell us about Wedgewood Partners. (David, here you can keep it high level into things like where you are located, whether you are a value or growth investing firm, whether you manage a concentrated or diverse portfolio, assets under management [AUM] if you want, when you were founded, anything else you want.)
David Rolfe: Wedgewood Partners was founded in 1988 by our chairman, Tony Guerrerio. Our strategy was incepted 30 years ago in 1992 when I joined Wedgewood as chief investment officer. I am also the architect of our strategy that I started at my previous firm of employ back in 1988. In addition to our large-cap focused-growth strategy, we also offer a focused SMID strategy we stared in the summer of 2018. We currently manage $1.2 billion.
Our firm's leaders, on both the investment and business front, have spent many years, if not decades in the investment management industry. Our investment team is also quite rare in the industry in that our three-decade-long track record is not a compilation of different CIOs and different senior investment professionals or different investment teams. Our investment team includes Tony Guerrerio, Michael Quigley, and Chris Jersan. With Wedgewood, you invest with the key people who actually built the firm's leading 30 year-track record.
Image source: Wedgewood Partners.
Rotonti: What is your investing philosophy? What types of businesses do you try to buy stock in?
Rolfe: Our firm's large-cap focused-growth strategy is based on what we call "The Competitive Advantage of Focus." Our 30-plus years of peer and index outperformance is due to the competitive advantage of our focused strategy. We believe that focus is our edge. And that edge is repeatable.
The powerful combination of a disciplined culture of investing for the true long term in best-of-breed businesses, combined with the synthesis of the time-tested, classic tenets of both growth company investing and intelligent value investing is a recipe for long-term wealth creation, as well as peer and index outperformance.
Rotonti: What is Wedgewood's investment process?
Rolfe: Our investment philosophy begins where so many other non-focused managers finish. Our investment universe is the Russell 1000 Growth index. There are currently 519 stocks in that Index. We also include the best businesses in the S&P 500 index. We begin our investment process by identifying best-in-class business models. In that search, we look to measures of past excellence, in terms of both profitability and growth. At this point, the first question the team collectively asks is, "Can we understand the business model's past drivers of that profitability, growth, and management's capital allocation?" Going through this process typically reduces our universe by about 80%. Once we get to this point on about 100 companies, we ask ourselves a second question: "Can we understand the business model's competitive advantages well enough to be confident on what the business model will look like over the next 5-10 years?" This second question cuts our universe in half down to around 40 business models. The third question we ask ourselves are actually a series of questions on portfolio management. These involve matters of catalysts, valuation, risk management and actual portfolio construction.
The key to our investment philosophy and strategy of building a focused, 20-stock portfolio, in order to beat our benchmark and peers, is risk management. I can't emphasize this enough -- risk management pervades our entire strategy, from security analysis to portfolio construction to portfolio management.
There are five steps that synthesize our philosophy and process, all in accordance with prudent risk management. One: Profitability is the mother's milk of growth. Best-in-class profitability is our process North Star. Better businesses typically perform better in tough times and emerge even stronger after industry downturns or general recessions. Two: We believe the best way to generate wealth is through the long-term ownership of exceptional growth companies, where intrinsic value growth compounds at least at double-digit rates over time. Three: Businesses that require the least amount of capital to maintain their competitive position and support future growth are inherently better businesses. Four: We earnestly believe and practice the maxim, "Price is what you pay; value is what you get." We endeavor to invest in a select few, best-of-breed businesses when the stocks of such businesses are either misunderstood by the market and/or undervalued by the market relative to their long-term growth prospects. Five: We build our 20-stock portfolio by overweighting our highest-conviction ideas, all the while adhering to prudent diversification through limited business model overlap.
Rotonti: What is your portfolio management philosophy? How many stocks do you own? How do you determine weightings? What percentage of your portfolio is in cash?
Rolfe: "Invest like an owner" may be an overused cliché, but we practice exactly this at Wedgewood. Such a mentality becomes very powerful when so many of our active management peers profess such, but their portfolio turnover stats tell another, much different tale. For example, during calendar 2022, we sold just two stocks and bought just one. We typically own 20. We weight each holding on two scores. First, we weight what we consider our best risk-reward stocks the highest. Second, we also take care to make sure that every stock weighting in our portfolio is weighted higher than its respective constituent weighting in the benchmark. The only exception to No. 2 has been the huge weightings of a few megatech stocks. Our cash weighting is typically around 2%-4%. We aren't market timers. We want to own great businesses, not hold cash.
Rotonti: How do you think about risk management and portfolio diversity?
Rolfe: We think of risk management within the confines a 20-stock portfolio. Competitively advantaged businesses are best suited to ward off competitors throughout both industry cycles and economic cycles. Buying expensive stocks is a recipe for sustained underperformance -- no matter how great the underlying business may be. Again, price is what you pay; value is what you get. We are the antithesis of momentum investing, which is a staple in large-cap growth investing. Diversifying by business model, rather than industry sectors, is key to investing in just 20 stocks. While we are extremely focused relative to our benchmark and most active managers, that said, we won't let any position exceed 10% of the portfolio. Lastly, being an independent firm protects our unique investment strategy from the performance ruination of institutional imperatives, which so many other active managers suffer.
On the matter of portfolio diversity, we believe "business model" diversity trumps the more common "Noah's Ark" model of diversity whereby most portfolio managers buy a couple of stocks in too many industries to "diversify." Here's how we think about business model diversity -- consider our technology holdings. Motorola Solutions (NYSE: MSI) couldn't be a more different business model than, say, Microsoft (NASDAQ: MSFT), while Microsoft's business model couldn't be more different than Taiwan Semiconductor (NYSE: TSM). Business model diversification has been a staple of our risk management since our strategy's inception.
As a proof statement of our portfolio risk management, again in the context of a portfolio of just 20 stocks, consider that since our strategy's inception 1992, there have been 28 3-year rolling time periods. We have generated positive returns in 26 of those periods, or 93%. There have been 26 5-year rolling periods. We have generated positive returns in 25 of those periods, or 96%. Both percentages greater than broad stock market indexes.
Rotonti: How do you measure management quality, and can you please give us an example of a CEO (either in your portfolio or not) that you think does it right?
Rolfe: Quality is a mosaic. High-quality managements demonstrate capital allocation excellence over product, service, industry, and economic cycles. Quality managements treat all shareholders as partners. Quality managements deliver bad news quick. Quality managements are honest, humble, and transparent. High-quality managements understand that growth without profits is rarely a long-term plan.
We think that all of our invested company CEOs are paragons of quality, but I'd like to call out CEO Greg Brown of Motorola Solutions. Starting in 2015, Brown has spent over $5 billion acquiring 22 companies that span public and private safety, from land mobile radio communications to video security and building access control, combined with command center software. In all, Brown has transformed Motorola Solutions into a near-monopoly platform company with 50% recurring revenues. In 1987, Harvard Business School presented a case study on retiring CEO Bob Galvin, who was the son of the founder of Motorola. HBS needs to do the same with Brown.
Rotonti: Do you have any performance metrics that you prefer management compensation be based on?
Rolfe: We prefer compensation to be largely based on some form of return on capital metrics.
Rotonti: How long does it typically take for a brand-new idea to make it into the portfolio from the first day of research to the day you hit the buy button?
Rolfe: It typically takes more than a few months, sometimes years if the stock's valuation doesn't come in enough. That said, over the past 30 years, we have found that if we identify a great business that we endeavor to own, the market usually will serve it up on the valuations terms we demand.
Rotonti: What financial data tools does your team use such as Bloomberg, FactSet, New Constructs, HOLT, or others?
Rolfe: Mostly FactSet.
Rotonti: What is your definition of an investment thesis?
Rolfe: An investment thesis is a set of overlapping understandings and facts of what made a company outstanding in the past, and our assumptions of a continued entrenched competitive advantages that will allow said company to continue to prosper and grow at industry-leading rates so that it will be great over the ensuing years.
Rotonti: How important is valuation to your process?
Rolfe: Critical. We are buying a share in a business, but that share must be valued at a reasonable discount to what we believe that business is worth today, tomorrow, and in the future.
Rotonti: What valuation tools and metrics does your team use? Do you build discounted cash flow models? Do you look at P/E ratios and free cash flow yields? Something else?
Rolfe: We incorporate a myriad of valuation measures. Critically, we are always inverting the traditional DDM by asking ourselves, "What's in the stock price?" Oftentimes, our earnings estimates may not differ much from consensus, but what the market prices in on earnings expectations can vary greatly. That shorter-term valuation discrepancy, coupled with our time arbitrage as longer-term investors perfectly illustrates the maxim, as mentioned earlier, "Price is what you pay; value is what you get."
Rotonti: When picking stocks, do you consider an upside potential-to-downside potential ratio? If so, what do you look for?
Rolfe: Yes, we do. We don't employ a hard, fast ratio, but we look for a multiple of upside versus potential downside risk. It is a mixture of quantitative and qualitative. This embodies what John Train called, "The Craft of Investing."
Rotonti: Do you incorporate a macro view into your stock picking and portfolio management? If so, what is your current macro outlook?
Rolfe: Macro view, not so much at all. Industry economic views, absolutely.
Rotonti: How do you factor interest rates into your stock picking and portfolio management?
Rolfe: No, not too much. In the extreme, yes. For example, during the zero-interest rates borne of quantitative easing, for years we avoided reducing the required return rate of our stock selections to absurdly low levels, which propelled far too many "growth companies" to absurdly ridiculous valuations. We all know what happened starting in early 2021, when Fed Chairman Powell began whispering a change to a tighter monetary policy.
Rotonti: Do you read Wall Street research and do you find it helpful?
Rolfe: Sure. There are many excellent Street analysts, particularly those analysts who have proven a high level of industry knowledge. That said, we don't pay much attention to Wall Street price targets and such.
Rotonti: When do you trim and when do you sell out of a stock completely?
Rolfe: Sales and/or trims are made due to the following: Full valuation. Recognizing mistakes. New and better risk-adjusted opportunities. Resizing positions due to industry concentration and other position-size considerations.
Rotonti: In your opinion, is the S&P 500 undervalued and are you finding cheap stocks to invest in?
Rolfe: The beauty of being invested in just 20 stocks is that you don't need to have an opinion on the valuation of the stock market. It is quite rare if some terrific company's stock isn't "on sale." Warren Buffett has been quite clear over the decades admonishing investors that the "stock market is there to serve you, not instruct you." If any investor, lay or professional, can figure out Buffett's admonishment (plus understand and practice chapters 8 and 20 in Benjamin Graham's The Intelligent Investor), they will be miles ahead of the investing game.
Rotonti: What is one company you'd love to own stock in at the right price?
Rolfe: Ha! I'd tell you, but then I'd have to charge you a client fee! Let's just say there a just a couple of extraordinary high-end retailers and semiconductor companies that are beyond compare in their own respective ways.
Rotonti: Your largest position is Motorola Solutions. Please tell us why this deserves to be your largest position.
Rolfe: Motorola is the dominant market leader in its core land mobile radio (LMR) business: providing infrastructure, handsets, and related software and services for customized, highly resilient, secure networks for global police and emergency services, a variety of government and military applications, and other commercial and public safety applications where security and reliability are of the utmost importance. The company has continued to find success in using its entrenched position in these mission-critical networks to layer in faster-growing and higher-margin software, service, and video products. It is the only player capable of fully integrating the entire service offering with its core LMR network backbone.
Motorola has assembled this stable of complementary products and services largely through acquisition, using the steady, recurring cash flows the LMR business has provided. These purchases not only have been attractive strategically; they have been extremely attractive financially, as well.
The U.S. federal government has been creating (and continues to create) massive stimulus funding for state and local governments, as well as other Motorola customers such as FEMA, school districts, and airport and transit operators. Although this funding typically does not appear immediately and may take some time to find its way from a news headline to an actual customer's budget, the company has highlighted funding already available to customers in the region of $350 billion for state and local governments, $170 billion for education, and $38 billion for airport and transit. The company expects to see the benefit of this funding through 2024, when the current rounds of stimulus expire.
Rotonti: What is your investment thesis in Meta (NASDAQ: META)?
Rolfe: If you build it, they will come. With apologies to W.P. Kinsella, CEO Mark Zuckerberg has built it. And they did come. And they have stayed. By the billions. The metaverse will be the next evolutionary chapter by Meta Platforms. And speaking of billions: Meta Platforms' family of apps (FoA: Facebook, Instagram, WhatsApp, and Messenger) currently has over 3.7 billion monthly active users -- this includes almost 3 billion daily active users. If baseball is sports' national pastime, family of apps is the social national pastime. The International Telecommunications Network (ITU) estimates that of the 8 billion in world population, nearly 3 billion are without an internet connection. If you exclude China's population (where U.S. social media companies are largely banned), Meta Platforms' family of apps are used monthly by a staggering 90% of the world's connected population and by 70% on a daily basis. This level of user engagement and density across the company's FoAs would seem to be an impenetrable fortress. It surely has been in the continued growth and stickiness in terms of users.
It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. Even renaming the company from Facebook to Meta Platforms seems premature. In short (from that long list), Zuckerberg has lost the confidence of shareholders. In the coin of the realm circa-2022/2023, Meta Platforms had lost "the narrative" -- despite its still intact family of apps profit and cash generation machinery.
We have long applauded companies that invest for the long term. Companies, regardless of their particular industry, must adapt, or evolve, or they will slowly die. That's why for years we have emphasized in our research the importance of capital allocation. This is critical to our investment process. We endeavor to hold our investments for many years, not just for a few quarters, which is the typical fare on Wall Street. Our portfolio of best-of-breed businesses generates substantial retained earnings. The deployment of this largesse into a myriad of capital allocation decisions (R&D, capex, M&A, stock buybacks) is arguably the most critical function of the C-suite.
We've owned Apple since 2005. Apple is a very different company than it was 15 years ago -- much different still from the company's founding in Steve Jobs parents' garage in 1975. At the time of our first purchase, the iPhone was little more than a twinkle in Steve Job' eyes. In fact, early on in those years, the iPad was slated to be launched before the iPhone.
In our view, Zuckerberg has built and navigated the company quite well as technology and user behavior has changed. He has built it. They have come. He continues to build. His "vision thing" has be good, too, considering his early critics on mobile, Stories, and Reels. The jury is still out on his megaspending on the metaverse -- no, check that -- the jury is in on this score. By Wall Street's reaction, Zuckerberg's metaverse vision and spending is a near-unanimous flop. We don't share this view. We remain bulls on Zuckerberg and Meta Platforms.
In fact, in the general internet economy, which is to say any enterprise or institution whereby the internet today is in any way relevant, expect future digital disruption. These countless entities are already planning for the next evolution of the internet (call it what you will). And they collectively are already planning for it in size -- whether Zuckerberg builds his vision of a metaverse platform or not.
The stock at 2022 lows had priced in zero growth in FoA users and little rebound in profitability. This is fat-pitch territory. Valuations at current levels need to assume a long secular decline in the company's family of apps business and continued billions dumped into the assumed metaverse landfill. Both extremes in the negative, in our view. If the combination of favorable 2023 catalysts emerge, along with unduly cheap valuations, we may well swing again at the shares. The stock has currently staged one of the most remarkable turnarounds I have witnessed since entering the investment business way back in 1986.
Rotonti: What is your thesis in Pool Corp. (NASDAQ: POOL)?
Rolfe: Those of you who own a backyard pool already know the Pool Corp. story quite well. ("Honey, why is the pool water green?") Those who don't own a pool, well, we recommend a little rent-seeking on your neighbor's pool by owning these shares. The Pool Corp. strategy is beautifully simple: build a pool and become its customer for life. Once the major discretionary expenditure of building a pool is made, that high-maintenance asset becomes an annual annuity for your local pool service company. Increasingly, that local pool service company could well be owned by Pool Corp.
Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years. Once a pool reaches its early teen years (often sooner), maintenance reaches a very different level (read: expensive) when every part of the pool's filtration system wears out. As the years progress, the pool/backyard rebuild kicks off. Well, that original pool becomes a brand-new second pool. Rinse and repeat. Your local pool-service company is assuredly not the lonely Maytag repairman.
A decade or so ago, most backyard pools were simply pools surrounded by some type of hard coping. Fast-forward to today, and our backyards have turned into major entertainment centers. We are spending much more time outdoors, and the backyard is now a focal point of our homes. Healthier outdoor living is now ingrained in our lifestyles and budgets. According to Zillow (NASDAQ: Z) (NASDAQ: ZG) Research Surveys, respondents asked of the importance of a house with a pool (or spa) jumped to 35% in 2021, from 25% in just 2019. Pools are now surrounded by decking and patios, outdoor fireplaces and kitchens, majestic fireplaces and waterfalls, outdoor lighting, weatherproof speakers, hardscapes, landscapes, and irrigation -- much of it connected to apps controlled by smartphones. Indeed, significant technological advancements are found across the entire spectrum of a modern pool, dominated by automation; sanitizing systems (salt systems, UV systems, and ozone systems); heat pumps (which cool water, too); robotic cleaners; whisper-quiet, variable speed pumps, and LED lighting. Pool Corp. distributed all this backyard evolution.
Today, the company is the world's largest wholesale distributor of swimming pool and related outdoor living products, operating over 410 sales centers in 12 countries across North America, Europe, and Australia, and distributing more than 200,000 national brand and private-label products from over 2,200 vendors to roughly 120,000 wholesale customers.
Notable, too, is the company's November 2021 acquisition of Largo, Florida-based Porpoise Pool & Patio, including its main operating subsidiaries, Sun Wholesale Supply and Pinch A Penny. Sun Wholesale Supply is a wholesale distributor of swimming pool and outdoor-living products, including a key, state-of-the-art (chlorine) specialty chemical packaging operation, which until now only sold to Pinch A Penny franchisees. Pinch A Penny is the largest franchiser of pool and outdoor living-related specialty retail stores in the U.S., with approximately 260 independently owned and operated franchised stores in Florida, Texas, Louisiana, Alabama, and Georgia, and brings Pool Corp. substantial opportunities for expansion.
Sixty percent of the company's business revolves around the installed base of pools (and spas). Pool renovations and upgrades are 20%, and new pool construction is 20%, as well. Its typical customer, 80%-plus, are local maintenance contractors and professional builders. Local backyard-related retailers make up 12% and the rest is a small mixture of do-it-yourself customers and commercial customers (hotels, theme parks, and universities).
The company estimates its U.S. share of the pool industry to be around 38% in the $10 billion wholesale market ($22 billion retail), based on the U.S. installed base of 5.4 million pools. The company is about four times larger than its only national competitor (Heritage Pool Supply, a division of SRS Distribution). Horizon (Green), the fourth-largest landscape distributor in the U.S., with 81 locations largely in the Sun Belt, services a $14 billion national Green addressable market.
Pool Corp. has been a growth and profitability powerhouse for years. The company reminds us of another powerhouse, Old Dominion Freight Line (NASDAQ: ODFL). Both share a long-ingrained culture of organic growth by nonstop capacity additions. Both, too, have surely benefited by strategic acquisitions, but at the end of the day, the consistent ability to serve more customers from existing locations is the seed-corn of organic growth. Such growth, on top of the long crawl of operating leverage is the mother's milk of ever-increasing profitability.
While 2023 has started quite well for the company, our growth expectations for late-2022/early 2023 encompass a material decline in 2020-2021 growth rates. Namely, for calendar double-digit growth in revenues and low 20%-plus growth in earnings per share -- and back to high-single-digit growth in each during 2023. The current bear market has corrected the once-excessive valuation in the stock.
Rotonti: What do you like about Edwards Lifesciences (NYSE: EW)?
Rolfe: Edwards Lifesciences has been in portfolios since 2017. The company is a leader in treating structural heart diseases and providing critical care technologies to surgical and intensive care centers. Edwards' flagship franchise is its Transcatheter Aortic Valve Replacement (TAVR) SAPIEN family of aortic heart valves. The company's TAVR products began revolutionizing aortic valve replacement clinics around 15 years ago. Prior to TAVR, patients who were too sick to undergo open-heart surgery often went untreated. After a long history of surgical valve development, Edwards came to develop a prosthetic aortic valve that could be inserted into place with a minimally invasive procedure, often via a small opening in the femoral artery (or less frequently, through a small incision in the ribs). Since then, Edwards has provided these life-saving valves for over 800,000 patients.
Edwards' revenue rose over 40%-plus from 2016 through 2021 driven by TAVR revenues that more than doubled. More recently, the company's TAVR performance has been volatile, especially when compared to the pre-pandemic trend line. The large swings in growth have been due to random regional shutdowns from the pandemic in addition to hospital staffing shortages. The pandemic societal shutdowns are almost impossible to predict, but we assume those will eventually subside, as they have in the U.S.
On the latter point of hospital staffing shortages, it is most acute in the U.S. Even though TAVR is minimally invasive to the body of the patient, it seems TAVR is "moderately invasive" to the administrative efforts of hospitals in the U.S., at least in the early part of this post-pandemic world. We will admit, surprisingly, that cracking open a patient's ribs in to expose their beating heart for an aortic valve replacement is more streamlined from an administrative perspective than minimally invasive TAVR. TAVR, on the other hand, requires several non-invasive, pre-operational steps in order to make a clinically safe decision about if and how the body can handle the procedure.
But Edwards, and the rest of the structural heart technology industry, have an excellent incentive to help hospitals alleviate the administrative bottleneck that emerged during the pandemic. We estimate Edwards' addressable market for TAVR grows by about $1 billion per year in the U.S. alone, based on demographics and compared to the company's 2021 TAVR revenues that approached $3.5 billion. Severe aortic stenosis (SAS), which is the disease that TAVR is most often used to treat, is most prevalent in those approaching their mid-70s and beyond. Only 12 out of 100 patients with SAS have had valve replacement therapy, with over 1 million patients estimated to be in need of the therapy in the U.S. alone. We estimate U.S. valves to cost anywhere from $20k to $30k per device. Further, Edwards is enrolling a study to treat patients with moderate aortic stenosis (MAS). MAS has been shown to be nearly as lethal as "severe" cases, but with a population that is twice the size.
The good news about Edwards' treatable population is they are living longer, not only once they reach 70 years of age but also once they reach 80 years and beyond. As people are living longer, they are more susceptible to moderate and severe forms of aortic stenosis. So there's no shortage of patients in need of TAVR treatment. Given the recent bottlenecks in the U.S. healthcare system, those calls for gloom and doom are coming again. But as we can see, the untreated population for both severe and moderate aortic stenosis is clearly huge and underserved, so TAVR's demise continues to be greatly exaggerated.
We expect Edwards to be able to compound revenues at a double-digit rate over the next several years by driving higher adoption of TAVR, as well as through the launch of new platforms targeting other forms of structural heart disease (especially related to mitral valve). The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). Edwards' returns are still tremendous, even with this high level of reinvestment in future growth.
Rotonti: What is your thesis in First Republic Bank (NYSE: FRC)?
Rolfe: First Republic Bank is one of the most differentiated business models in our large-cap universe. What makes the company so different is not necessarily the activities that it does, but the activities it does not do. These trade-offs are an incredibly important strategic decision that every company must make. However, in our experience, rarely are these forgone activities lauded or even recognized as critical differentiators.
When we consider the financial industry, especially banking, is fraught with competition, simply being better than any of the other massive money-center banks is not enough to sustain many decades or even years of superior performance. Rather than try to outcompete every bank in the country, First Republic's competitive strategy of doing only a handful of things well results in a superior value proposition to its customers. These trade-offs are easy to understand, but difficult to copy, given widespread competitive and institutional imperatives that pressure management teams to revert to the mean.
First Republic organizes its entire business around keeping long-term relationships with its bankers and clients. This strategic decision contrasts with competitors that have underlying strategic goals to drive as much client activity as possible. As a result, client development activities at First Republic look very different from those of its competitors. First Republic has outgrown its peers over the past several years. The company compounded revenues at an 18%-plus rate from 2016 to 2021 and is now one of largest single-family mortgage lenders in the U.S.
And more recently, the dramatic rise in long-term interest rates has caused mortgage industry underwriting volumes to plummet, mostly due to a decline in refinance activity. Despite this, and admittedly to our surprise, First Republic turned in an astonishing 23%-plus growth rate in mortgage originations during the second quarter of 2022. That is not to say things won't slow from here, given the continued rise in rates, but it was another important, contrasting data point of how the company's business model differs from most large money-center peers. Competitors' overwhelming reliance on the securitization markets, as well as mortgage correspondent mass-market focus was in no small part to blame for the industry slowdown. As First Republic keeps these functions in-house and focuses mostly on jumbo mortgage financing, there were no third parties or vendor partner upheavals that the company had to contend with to continue providing its customers with reliable mortgage underwriting service.
In conclusion, while being the most profitable or fastest-growing business are certainly the goals most businesses strive for, we are steadfast in our view those goals must be byproducts of a differentiated competitive strategy. In the highly competitive industry of personal banking, First Republic has made a concerted effort to focus on only a handful of activities to excel at while actively avoiding many others, even when those activities might seem to be industry-standard offerings. First Republic's prudent and deliberate approach to trade-offs offers competitive differentiation that should continue to drive exceptional growth over the long term.
Rotonti: What is your thesis in Taiwan Semiconductor and how do you think about its valuation?
Rolfe: Taiwan Semiconductor Manufacturing is arguably the most important corporation on the planet. TSM is the leading -- by far -- semiconductor manufacturer in size, scale, scope, and advanced nodes. Indeed, if Samsung falters rolling out their next-gen 3-nanometer (3N) technology, TSM could enjoy a near-monopoly post-2022 at 3N. Technology companies such as Apple, Advanced Micro Devices (NASDAQ: AMD), Nvidia (NASDAQ: NVDA), Qualcomm (NASDAQ: QCOM), and Intel (NASDAQ: INTC) would not exist in their current form without TSM.
Since TSM's stock trades as an ADR, few institutions own the stock in size and the stock is not owned by the gigantic passive crowd (both index funds and index ETFs), unlike, say, Intel and Texas Instruments (NASDAQ: TXN). The only owners of note are the relatively small emerging market funds and ETFs. As such, TSM is one of our largest portfolio positions on an "index attribution, active share" measurement.
In fact, Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) most recent reported stake of 60,000,000 shares would arguably make Berkshire TSM's most significant "large" U.S.-based shareholder. Furthermore, we suspect that Berkshire has continued to build their TSM position after the Sept. 30 13-F reporting deadline. If Buffett is indeed the buyer (and not one of his portfolio manager lieutenants), Buffett, in our opinion, would likely be still swinging a fat bat at TSM given its fat-pitch cheap valuation. We can't help but think that TSM is akin to how Buffett views the railroad industry -- few rational competitors, with massive legacy and capex barriers to entry.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Rotonti has positions in Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Texas Instruments. The Motley Fool has positions in and recommends Abbott Laboratories, Advanced Micro Devices, Apple, Berkshire Hathaway, Edwards Lifesciences, Intel, Meta Platforms, Microsoft, Nvidia, Old Dominion Freight Line, Qualcomm, Taiwan Semiconductor Manufacturing, Texas Instruments, and Zillow Group. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). Starting in 2015, Brown has spent over $5 billion acquiring 22 companies that span public and private safety, from land mobile radio communications to video security and building access control, combined with command center software. We expect Edwards to be able to compound revenues at a double-digit rate over the next several years by driving higher adoption of TAVR, as well as through the launch of new platforms targeting other forms of structural heart disease (especially related to mitral valve). | The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). Rolfe: Motorola is the dominant market leader in its core land mobile radio (LMR) business: providing infrastructure, handsets, and related software and services for customized, highly resilient, secure networks for global police and emergency services, a variety of government and military applications, and other commercial and public safety applications where security and reliability are of the utmost importance. The Motley Fool has positions in and recommends Abbott Laboratories, Advanced Micro Devices, Apple, Berkshire Hathaway, Edwards Lifesciences, Intel, Meta Platforms, Microsoft, Nvidia, Old Dominion Freight Line, Qualcomm, Taiwan Semiconductor Manufacturing, Texas Instruments, and Zillow Group. | The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). The powerful combination of a disciplined culture of investing for the true long term in best-of-breed businesses, combined with the synthesis of the time-tested, classic tenets of both growth company investing and intelligent value investing is a recipe for long-term wealth creation, as well as peer and index outperformance. It seemed that everything that could go wrong for the company in 2022 did go wrong: A post-pandemic growth hangover, the multibillion revenue hit from Apple's (NASDAQ: AAPL) infamous iOS 14.5 update that introduced the company's App Tracking Transparency (ATT), a cyclical slowdown in online advertising spending, poor capital allocation timing of stock buybacks, and Zuckerberg's unchecked spending of billions on both new hirings and massive billions to be spent on artificial intelligence and the metaverse. | The company probably "under-earns" as they commit between 15%-20% of revenues to R&D, a multiple of larger medtech conglomerates (e.g., Medtronic (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Stryker (NYSE: SYK). Rolfe: The beauty of being invested in just 20 stocks is that you don't need to have an opinion on the valuation of the stock market. The company estimates its U.S. share of the pool industry to be around 38% in the $10 billion wholesale market ($22 billion retail), based on the U.S. installed base of 5.4 million pools. |
31166.0 | 2023-02-17 00:00:00 UTC | How Abbott Labs, AbbVie Could Profit on Seizure Drug Formula | ABT | https://www.nasdaq.com/articles/how-abbott-labs-abbvie-could-profit-on-seizure-drug-formula | nan | nan | A new study published in Science Translational Medicine could introduce a profitable opportunity for makers of seizure drug medications. The discovery has immense medical implications, of course, but it could lead to a windfall for investors, particularly those holding Abbott Laboratories (NYSE: ABT) and AbbVie, Inc (NYSE: ABBV) shares.
These are the two main manufacturers of seizure drugs like Depakote and Depakene. Thus ABT and ABBV shareholders could benefit from the potential surge in sales if some formulations of these drugs can return to the market with a new purpose.
What Is Valproic Acid and Why Is it Important?
In particular, the study found that a key component of these anti-seizure medications can improve the storage time of donor hearts. This component is known as valproic acid. Volpraic acid is found in common anti-seizure medications but often under different names, most notably Abbott’s Depakote.
In the study mentioned above, scientists found that when a donor heart is infused with valproic acid, it can dramatically extend the time the heart can be stored before transplantation.
Heart surgeons only have about 4 hours between the time they remove a healthy heart from the donor to the time of transplant in the patient. After these 4 hours, the failure risk begins to escalate. But the study results suggest that the simple introduction of valproic acid could significantly increase that time.
Heart failure affects approximately 6.5 million adults in the US every year, so this presents promising clinical success in the future. That, in turn, should also mean more financial potential for ABT and ABBV shareholders.
Abbott Labs Depakote Lawsuits
The new discovery is particularly beneficial to Abbott Laboratories, who paid upwards of $1.6 billion to settle a lawsuit regarding Depakote, in early 2012. This lawsuit found that Abbott was training workers to promote the off-label use of Depakote. In addition, the court found that the Global Health Care Company made illegal payments to pharmacists and doctors in an effort to encourage more prescriptions outside of its traditional anti-seizure use.
Before that, in 1999, Abbott was forced to discontinue a clinical trial of Depakote after they found a higher risk for adverse events in elderly participants. While anorexia, somnolence, and dehydration are not necessarily deadly, they are dangerous enough to warrant elevated caution. More importantly, this was another incident–perhaps the primary–in which Abbott used the medication for something the FDA had not approved.
For reference, the FDA only approved Depakote for bipolar mania, epileptic seizures, and migraine prevention, though the agency may be updating this description soon. And if they do, it will legitimize the new clinical use of valproic acid, which should solidify the long-term earnings potential.
New Life for Valproic Acid Could Mean Long-Term Growth for ABT Stock
In October 2022, ABT plunged more than 10% in the third week, from around $104 to $95. This was when Abbott announced a recall of their infant formula products regarding defective caps. While the company maintained that the issue is small–and should not significantly impact their nationwide supply–it seems the recall significantly impacted share value.
The controversy appears to have waned quickly as share value almost immediately bounced back and went up to $114 by the end of January 2023.
Accordingly, the Volpraic acid announcement could help Abbott continue their upward momentum. Analysts appear optimistic about ABT stock, with modest earnings growth projections of around 9.8%. In addition, the $125.63 price target represents a 17.1% upside on the current $107.28 share price. Also, the 27.44 P/E is encouraging and supports the stock’s Moderate Buy rating.
Also, the Jan 25 earnings report indicated ABT beat the estimate by $0.13, at $1.03, though overall share value remains down from last year’s $1.32. This puts the stock itself down nearly -13.5% since the same time last year. However, the stock is on an upward swing, as share value is up more than +4% over the most recent quarter.
Down the road, Abbott could find that sales of volpraic acid products might help bolster what is already a very good return for investors in terms of dividend. ABT is already paying an annual dividend of $2.04 at a yield of 1.89%, and they have been increasing that dividend consistently for at least the last five decades. Overall, ABT has a 13.30% annualized dividend at a 3-year growth rate of 52.17%.
While introducing valproic acid to a donor's heart is very simple, more study is needed to better determine the viability of those donor hearts. With the progress made from these upcoming studies, the potential financial benefit to Abbott and investors should become clearer.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The discovery has immense medical implications, of course, but it could lead to a windfall for investors, particularly those holding Abbott Laboratories (NYSE: ABT) and AbbVie, Inc (NYSE: ABBV) shares. Thus ABT and ABBV shareholders could benefit from the potential surge in sales if some formulations of these drugs can return to the market with a new purpose. That, in turn, should also mean more financial potential for ABT and ABBV shareholders. | The discovery has immense medical implications, of course, but it could lead to a windfall for investors, particularly those holding Abbott Laboratories (NYSE: ABT) and AbbVie, Inc (NYSE: ABBV) shares. New Life for Valproic Acid Could Mean Long-Term Growth for ABT Stock In October 2022, ABT plunged more than 10% in the third week, from around $104 to $95. Thus ABT and ABBV shareholders could benefit from the potential surge in sales if some formulations of these drugs can return to the market with a new purpose. | New Life for Valproic Acid Could Mean Long-Term Growth for ABT Stock In October 2022, ABT plunged more than 10% in the third week, from around $104 to $95. The discovery has immense medical implications, of course, but it could lead to a windfall for investors, particularly those holding Abbott Laboratories (NYSE: ABT) and AbbVie, Inc (NYSE: ABBV) shares. Thus ABT and ABBV shareholders could benefit from the potential surge in sales if some formulations of these drugs can return to the market with a new purpose. | The discovery has immense medical implications, of course, but it could lead to a windfall for investors, particularly those holding Abbott Laboratories (NYSE: ABT) and AbbVie, Inc (NYSE: ABBV) shares. Thus ABT and ABBV shareholders could benefit from the potential surge in sales if some formulations of these drugs can return to the market with a new purpose. That, in turn, should also mean more financial potential for ABT and ABBV shareholders. |
31167.0 | 2023-02-17 00:00:00 UTC | Abbott gets FTC notice for information on infant formula products | ABT | https://www.nasdaq.com/articles/abbott-gets-ftc-notice-for-information-on-infant-formula-products | nan | nan | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts.
(Reporting by Granth Vanaik; Editing by Shailesh Kuber)
((Granth.Vanaik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. (Reporting by Granth Vanaik; Editing by Shailesh Kuber) ((Granth.Vanaik@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. (Reporting by Granth Vanaik; Editing by Shailesh Kuber) ((Granth.Vanaik@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. (Reporting by Granth Vanaik; Editing by Shailesh Kuber) ((Granth.Vanaik@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. (Reporting by Granth Vanaik; Editing by Shailesh Kuber) ((Granth.Vanaik@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31168.0 | 2023-02-17 00:00:00 UTC | Abbott gets FTC notice for information on infant formula products | ABT | https://www.nasdaq.com/articles/abbott-gets-ftc-notice-for-information-on-infant-formula-products-0 | nan | nan | Adds background
Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts.
The FTC had launched an inquiry last year into the shortage for infant formula in the United States and had said it would examine the pattern of mergers and acquisitions in the formula market.
In January, Abbott's Michigan plant, which was at the center of the U.S. baby formula shortage last year, faced a criminal investigation by the Justice Department, the Wall Street Journal had reported.
The FTC did not immediately respond to a Reuters request for comment.
(Reporting by Granth Vanaik; Editing by Shailesh Kuber and Krishna Chandra Eluri)
((Granth.Vanaik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. In January, Abbott's Michigan plant, which was at the center of the U.S. baby formula shortage last year, faced a criminal investigation by the Justice Department, the Wall Street Journal had reported. (Reporting by Granth Vanaik; Editing by Shailesh Kuber and Krishna Chandra Eluri) ((Granth.Vanaik@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. The FTC had launched an inquiry last year into the shortage for infant formula in the United States and had said it would examine the pattern of mergers and acquisitions in the formula market. In January, Abbott's Michigan plant, which was at the center of the U.S. baby formula shortage last year, faced a criminal investigation by the Justice Department, the Wall Street Journal had reported. | Adds background Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. The FTC had launched an inquiry last year into the shortage for infant formula in the United States and had said it would examine the pattern of mergers and acquisitions in the formula market. In January, Abbott's Michigan plant, which was at the center of the U.S. baby formula shortage last year, faced a criminal investigation by the Justice Department, the Wall Street Journal had reported. | Adds background Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Friday it received a civil investigative demand in January from the Federal Trade Commission related to a probe of the companies participating in bids for women, infants and children formula contracts. The FTC had launched an inquiry last year into the shortage for infant formula in the United States and had said it would examine the pattern of mergers and acquisitions in the formula market. In January, Abbott's Michigan plant, which was at the center of the U.S. baby formula shortage last year, faced a criminal investigation by the Justice Department, the Wall Street Journal had reported. |
31169.0 | 2023-02-16 00:00:00 UTC | Notable ETF Outflow Detected - ITOT, ABT, VZ, DHR | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-itot-abt-vz-dhr | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $111.0 million dollar outflow -- that's a 0.3% decrease week over week (from 452,150,000 to 450,950,000). Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.5%, Verizon Communications Inc (Symbol: VZ) is down about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 0.3%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $91.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.5%, Verizon Communications Inc (Symbol: VZ) is down about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 0.3%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.5%, Verizon Communications Inc (Symbol: VZ) is down about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 0.3%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $91.73. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.5%, Verizon Communications Inc (Symbol: VZ) is down about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $111.0 million dollar outflow -- that's a 0.3% decrease week over week (from 452,150,000 to 450,950,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $91.73. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.5%, Verizon Communications Inc (Symbol: VZ) is down about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $111.0 million dollar outflow -- that's a 0.3% decrease week over week (from 452,150,000 to 450,950,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $91.73. |
31170.0 | 2023-02-16 00:00:00 UTC | Labcorp beats quarterly profit estimates | ABT | https://www.nasdaq.com/articles/labcorp-beats-quarterly-profit-estimates-0 | nan | nan | Adds details about results, background
Feb 16 (Reuters) - Laboratory Corp of America Holdings LH.N on Thursday beat quarterly profit estimates, helped by strength in its diagnostics business and demand for its drug development services.
Test providers such as Quest Diagnostics DGX.N and Abbott Laboratories ABT.N have seen a rebound in demand for routine testing in the recent quarters, helping them cushion a decline in revenues from COVID-19 tests.
Last month, Labcorp indicated that diagnostics volume were coming back to pre-COVID levels.
The company said on Thursday its sales from COVID testing can fall as much as 90% this year.
Excluding items, the company reported a profit of $4.14 per share for the quarter ended Dec. 31, compared with analysts' estimates of $4.10 per share, according to Refinitiv data.
(Reporting by Raghav Mahobe and Mariam E Sunny in Bengaluru; Editing by Maju Samuel)
((Raghav.Mahobe@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Test providers such as Quest Diagnostics DGX.N and Abbott Laboratories ABT.N have seen a rebound in demand for routine testing in the recent quarters, helping them cushion a decline in revenues from COVID-19 tests. Adds details about results, background Feb 16 (Reuters) - Laboratory Corp of America Holdings LH.N on Thursday beat quarterly profit estimates, helped by strength in its diagnostics business and demand for its drug development services. Last month, Labcorp indicated that diagnostics volume were coming back to pre-COVID levels. | Test providers such as Quest Diagnostics DGX.N and Abbott Laboratories ABT.N have seen a rebound in demand for routine testing in the recent quarters, helping them cushion a decline in revenues from COVID-19 tests. Adds details about results, background Feb 16 (Reuters) - Laboratory Corp of America Holdings LH.N on Thursday beat quarterly profit estimates, helped by strength in its diagnostics business and demand for its drug development services. Excluding items, the company reported a profit of $4.14 per share for the quarter ended Dec. 31, compared with analysts' estimates of $4.10 per share, according to Refinitiv data. | Test providers such as Quest Diagnostics DGX.N and Abbott Laboratories ABT.N have seen a rebound in demand for routine testing in the recent quarters, helping them cushion a decline in revenues from COVID-19 tests. Adds details about results, background Feb 16 (Reuters) - Laboratory Corp of America Holdings LH.N on Thursday beat quarterly profit estimates, helped by strength in its diagnostics business and demand for its drug development services. (Reporting by Raghav Mahobe and Mariam E Sunny in Bengaluru; Editing by Maju Samuel) ((Raghav.Mahobe@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Test providers such as Quest Diagnostics DGX.N and Abbott Laboratories ABT.N have seen a rebound in demand for routine testing in the recent quarters, helping them cushion a decline in revenues from COVID-19 tests. Adds details about results, background Feb 16 (Reuters) - Laboratory Corp of America Holdings LH.N on Thursday beat quarterly profit estimates, helped by strength in its diagnostics business and demand for its drug development services. Last month, Labcorp indicated that diagnostics volume were coming back to pre-COVID levels. |
31171.0 | 2023-02-14 00:00:00 UTC | Notable Two Hundred Day Moving Average Cross - ABT | ABT | https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-abt | nan | nan | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $107.31, changing hands as low as $106.36 per share. Abbott Laboratories shares are currently trading off about 0.9% on the day. The chart below shows the one year performance of ABT shares, versus its 200 day moving average:
Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $125.4199 as the 52 week high point — that compares with a last trade of $107.21. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
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RDFN Videos
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $107.31, changing hands as low as $106.36 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $125.4199 as the 52 week high point — that compares with a last trade of $107.21. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: RDFN Videos NRGY Insider Buying | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $107.31, changing hands as low as $106.36 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $125.4199 as the 52 week high point — that compares with a last trade of $107.21. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: RDFN Videos NRGY Insider Buying | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $107.31, changing hands as low as $106.36 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $125.4199 as the 52 week high point — that compares with a last trade of $107.21. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: RDFN Videos NRGY Insider Buying | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $107.31, changing hands as low as $106.36 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $125.4199 as the 52 week high point — that compares with a last trade of $107.21. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: RDFN Videos NRGY Insider Buying |
31172.0 | 2023-02-14 00:00:00 UTC | Which Healthcare Stock Is a Better Pick in 2023? | ABT | https://www.nasdaq.com/articles/which-healthcare-stock-is-a-better-pick-in-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investor sentiment has improved this year on expectations of less-aggressive interest rate hikes by the Federal Reserve to tame inflation. However, the ongoing macro uncertainty continues to create confusion about which sectors or companies to invest in.
In the wake of a possible economic downturn, investing in healthcare stocks could be a good idea. Healthcare companies are not completely immune to a recession or macro pressures. However, they are known to escape sharp declines during recessions due to the essential nature of the business.
I used TipRanks’ Stock Comparison Tool to compare the following prominent healthcare stocks and pick the one that Wall Street finds most attractive at current levels.
Abbott Labs (ABT)
Source: testing / Shutterstock.com
2022 was a tough year for Abbott (NYSE:ABT), not only due to macro pressures and currency headwinds but also due to the disruptions at its baby formula facility in Michigan. Furthermore, the company’s medical devices segment was hit by Covid-19 restrictions in China and supply chain issues.
Despite these pressures and falling Covid-19 testing-related sales, Abbott delivered market-beating results for the fourth quarter of 2022. One of the key growth drivers for the company is its FreeStyle Libre continuous glucose monitoring (CGM) system. The product generated over $1 billion in sales in the fourth quarter alone, with U.S. sales rising more than 40%.
Looking ahead, Abbott expects organic sales growth, excluding Covid testing sales, in the high single-digits in 2023. Aside from high-growth products like the FreeStyle Libre, the company is also expected to benefit from recently approved products. This includes Navitor, the latest-generation transcatheter aortic valve implantation system for the treatment of severe aortic stenosis. Abbott is also seeking inorganic growth through strategic acquisitions. It recently announced the acquisition of Cardiovascular Systems, Inc. (NASDAQ:CSII) for about $890 million.
BTIG analyst Marie Thibault feels that this acquisition “is an inexpensive way for ABT to tap into large, high-growth, adjacent market opportunities with CSII’s R&D pipeline in mechanical thrombectomy, intravascular lithotripsy (IVL), drug-coated balloons (DCBs) and mechanical circulatory support (MCS).” Thibault reiterated a “buy” rating for Abbott with a price target of $125. She called it her “top large-cap pick for 2023.”
Wall Street is cautiously optimistic about Abbott Labs. The stock has a “moderate buy” consensus rating based on nine buys, one hold and one sell. At $123.90, the average ABT stock price target suggests 15% upside potential.
Eli Lilly (LLY)
Source: Jonathan Weiss / Shutterstock.com
Eli Lilly’s (NYSE:LLY) recently reported mixed fourth-quarter results that failed to impress investors. The company’s adjusted earnings per share (EPS) topped expectations, but revenue declined 9% and slightly lagged estimates. Currency headwinds, a substantial drop in sales from Covid-19 antibodies and the loss of exclusivity for cancer medicine Alimta hurt the company’s top line.
Moreover, investors were unhappy with the lower-than-expected sales of Mounjaro, a type-2 diabetes drug launched in June 2022. Nonetheless, Lilly is optimistic about the prospects for Mounjaro and other drugs in its existing portfolio as well as its strong pipeline. Mounjaro is expected to be approved by the U.S. Food and Drug Administration (FDA) for weight loss later this year.
Highlighting the strength of its existing portfolio, Lilly stated that revenue from its key growth products (Verzenio, Mounjaro, Jardiance, Taltz, Trulicity, Retevmo, Emgality, Cyramza, Tyvyt and Olumiant) increased 21% and accounted for 70% of the overall Q4 2022 revenue. It expects to launch four new drugs this year and projects mid-teen revenue growth for its core business.
Morgan Stanley analyst Terence Flynn acknowledges that there is “likely limited upside” to the expectations for the first half of the year. However, he continues to see several catalysts that could drive growth in the second half of 2023 and the years ahead. Flynn increased the price target for Eli Lilly stock to $455 from $440 and reiterated a “buy” rating.
Overall, Wall Street is bullish about Eli Lilly. The stock has a “strong buy” consensus rating backed by 13 buys and two holds. The average LLY stock price target of $406.31 implies nearly 16% upside potential.
CVS Health (CVS)
Source: Shutterstock
Leading pharmacy chain CVS Health (NYSE:CVS) has been in the news for two large acquisitions announced over recent months — the Signify Health (NYSE:SGFY) deal announced in September 2022 and the potential takeover of Oak Street Health (NYSE:OSH) that was announced last week. Both deals will likely bolster the company’s position in the primary healthcare space.
Through the $10.6 billion acquisition of Oak Street Health, CVS could gain access to about 600 primary care providers and 169 medical centers across 21 states. The deal comes at a time when CVS’ rivals are aggressively expanding their presence in the primary care market. Walgreens (NASDAQ:WBA)-backed VillageMD acquired Summit Health-CityMD for $8.9 billion, while e-commerce giant Amazon (NASDAQ:AMZN) is acquiring One Medical for $3.9 billion.
Mizuho Securities analyst Ann Hynes expects the Oak Street Health and Signify acquisitions to help CVS generate the “+2% of EPS contribution embedded in long-term EPS targets.” Commenting on the Oak Street Health deal, Hynes said, “The main areas with expected synergy opportunities include OSH patient growth through CVS channels, better retention of Aetna MA [Medicare Advantage] members, and PBM [Pharmacy Benefit Manager] and pharmacy collaboration opportunities.”
While Hynes believes the deal is expensive, she acknowledges that it is in line with the company’s long-term growth strategy for its Health Services business. Hynes reiterated a “buy” rating on CVS stock with a price target of $120.
All in all, CVS earns the Street’s “strong buy” consensus rating, backed by 10 buys and two holds. The average CVS stock price target of $114.75 implies about 28% upside from current levels.
To conclude, healthcare stocks Abbott Labs, Eli Lilly and CVS Health offer attractive long-term growth potential. Currently, Wall Street is very bullish on CVS and estimates higher upside potential in the stock. CVS expects 2023 adjusted EPS in the range of $8.70 to $8.90, reflecting growth of about 5% to 8%. Based on its strategic acquisitions and other growth initiatives, the company is targeting adjusted EPS of nearly $9 in 2024 and $10 in 2025.
On the date of publication, Sirisha Bhogaraju did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sirisha Bhogaraju has over 15 years of experience in financial research. She has written in-depth research reports and covered companies across various sectors, with a primary focus on the consumer sector. Sirisha has a master’s degree in finance.
The post Which Healthcare Stock Is a Better Pick in 2023? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BTIG analyst Marie Thibault feels that this acquisition “is an inexpensive way for ABT to tap into large, high-growth, adjacent market opportunities with CSII’s R&D pipeline in mechanical thrombectomy, intravascular lithotripsy (IVL), drug-coated balloons (DCBs) and mechanical circulatory support (MCS).” Thibault reiterated a “buy” rating for Abbott with a price target of $125. Abbott Labs (ABT) Source: testing / Shutterstock.com 2022 was a tough year for Abbott (NYSE:ABT), not only due to macro pressures and currency headwinds but also due to the disruptions at its baby formula facility in Michigan. At $123.90, the average ABT stock price target suggests 15% upside potential. | Abbott Labs (ABT) Source: testing / Shutterstock.com 2022 was a tough year for Abbott (NYSE:ABT), not only due to macro pressures and currency headwinds but also due to the disruptions at its baby formula facility in Michigan. BTIG analyst Marie Thibault feels that this acquisition “is an inexpensive way for ABT to tap into large, high-growth, adjacent market opportunities with CSII’s R&D pipeline in mechanical thrombectomy, intravascular lithotripsy (IVL), drug-coated balloons (DCBs) and mechanical circulatory support (MCS).” Thibault reiterated a “buy” rating for Abbott with a price target of $125. At $123.90, the average ABT stock price target suggests 15% upside potential. | Abbott Labs (ABT) Source: testing / Shutterstock.com 2022 was a tough year for Abbott (NYSE:ABT), not only due to macro pressures and currency headwinds but also due to the disruptions at its baby formula facility in Michigan. BTIG analyst Marie Thibault feels that this acquisition “is an inexpensive way for ABT to tap into large, high-growth, adjacent market opportunities with CSII’s R&D pipeline in mechanical thrombectomy, intravascular lithotripsy (IVL), drug-coated balloons (DCBs) and mechanical circulatory support (MCS).” Thibault reiterated a “buy” rating for Abbott with a price target of $125. At $123.90, the average ABT stock price target suggests 15% upside potential. | Abbott Labs (ABT) Source: testing / Shutterstock.com 2022 was a tough year for Abbott (NYSE:ABT), not only due to macro pressures and currency headwinds but also due to the disruptions at its baby formula facility in Michigan. BTIG analyst Marie Thibault feels that this acquisition “is an inexpensive way for ABT to tap into large, high-growth, adjacent market opportunities with CSII’s R&D pipeline in mechanical thrombectomy, intravascular lithotripsy (IVL), drug-coated balloons (DCBs) and mechanical circulatory support (MCS).” Thibault reiterated a “buy” rating for Abbott with a price target of $125. At $123.90, the average ABT stock price target suggests 15% upside potential. |
31173.0 | 2023-02-14 00:00:00 UTC | Better Buy: Johnson & Johnson or AbbVie? | ABT | https://www.nasdaq.com/articles/better-buy%3A-johnson-johnson-or-abbvie | nan | nan | Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) are two of the bigger names in healthcare stocks. The companies are favored by income-oriented investors because each has raised its dividend for 50 years or more.
This is a pivotal year for both. Johnson & Johnson is expected to complete the spinoff of its consumer health segment later this year, perhaps the biggest shake-up in the company's history. AbbVie's Humira, for years the world's top-selling drug, will begin to face generic competition in the U.S. for the first time this year.
Johnson & Johnson is a little more diversified than AbbVie, even after the expected spinoff, because it is also a pharmaceutical company and a medtech company. AbbVie, while it is strictly a pharmaceutical company, offers more growth and a better dividend. Which is the better buy right now? Let's take a look.
The case for Johnson & Johnson
The company is a great stock to own during a recession because of its consistency, regardless of economic conditions. While 2022 was a dreary year for some healthcare companies, Johnson & Johnson's shares are down around just 3% over the past year. Over the past decade, the company delivered a total return of slightly more than 180.7%.
More importantly, when a real recession hits, Johnson & Johnson stock is seen as a safe harbor by investors. During the Great Recession of 2007 to 2009, its shares dropped 21%, but that's less than half of the S&P 500's 54% decline during that period.
Part of the reason for that is the company's steady quarterly dividend, which it raised 6.6% last year to $1.13 per share, the 60th consecutive year the company has increased its dividend. Its current yield is around 2.78%.
As a mature company, its growth is slow but steady. In 2022, the company reported revenue of $94.9 billion, up 1.3% over 2021, though earnings per share (EPS) dropped 13.8% to $6.73, due in great part to the effect of a stronger dollar making the company's products overseas more expensive.
Johnson & Johnson should show greater margins once it completes its spinoff of consumer health, the only segment that saw declining sales in 2022 ($15 billion, down 0.5% over 2021). The new company, called Kenvue, filed for its initial public offering on Jan. 4, so it will likely go public this year. The talcum powder lawsuits Johnson & Johnson is facing will now fall on Kenvue, though Johnson & Johnson will retain, for now, 80.1% ownership of the new company.
The company's other divisions are thriving. Pharmaceutical reported revenue of $52.6 billion, up 1.7% year over year, and medtech saw revenue of $27.4 billion, up 1.4% over 2021. The company's acquisition of Abiomed, known for its Impella heart pump, gives medtech 12 products with more than $1 billion in annual sales.
The company forecasted 2023 revenue of between $96.9 billion and $97.9 billion, up 5% at the midpoint, over 2022. Those numbers count, for now, the consumer health segment.
JNJ Total Return Level data by YCharts
The case for AbbVie
As strong as Johnson & Johnson's total returns were over the past decade, AbbVie's were far better at 516.9%. Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year.
Investors realize the company may face a couple of down years of revenue, but also know the company's up-and-coming immuno-oncology drugs, Skyrizi and Rinvoq, could easily make up for that deficit as they continue to add applications. In 2022, AbbVie reported revenue of $58.1 billion, up 3.3% over 2021 and EPS of $6.63, up 2.8% year over year. While the company acknowledges it probably won't top 2022's revenue number the next two years, it says it expects to return to revenue growth by 2025. Also, Humira's sales won't plummet right away as it will take awhile for biosimilars to take market share.
AbbVie has an even better dividend than Johnson & Johnson. It raised its quarterly dividend by 5% this year to $1.48, the 52nd consecutive year it has increased its dividend, counting its time as part of Abbott Laboratories. If you just look at what AbbVie has done since it became an independent company in 2013, it has raised its dividend by 270% in that period. The current yield on the dividend is 3.89%.
No bad choices here
Of the two, Johnson & Johnson is certainly the safer pick, even with the talcum powder lawsuits and the complications around its consumer health spinoff. However, safer isn't necessarily better.
AbbVie has a better dividend, more dividend growth, and a slightly lower valuation (23 times earnings versus 24 times earnings). In the short term, it will likely take a hit to its share price this year once its quarterly reports show revenue slipping year over year. However, considering the company's potential in immuno-oncology therapies, it appears to be the better long-term buy right now.
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Jim Halley has positions in AbbVie and Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's acquisition of Abiomed, known for its Impella heart pump, gives medtech 12 products with more than $1 billion in annual sales. Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Part of the reason for that is the company's steady quarterly dividend, which it raised 6.6% last year to $1.13 per share, the 60th consecutive year the company has increased its dividend. Despite overhanging concerns about how the company will fare now that blockbuster immuno-oncology drug Humira is beginning to face generic competition in the U.S., AbbVie's shares are up more than 7% over the past year. It raised its quarterly dividend by 5% this year to $1.48, the 52nd consecutive year it has increased its dividend, counting its time as part of Abbott Laboratories. | Johnson & Johnson is a little more diversified than AbbVie, even after the expected spinoff, because it is also a pharmaceutical company and a medtech company. While 2022 was a dreary year for some healthcare companies, Johnson & Johnson's shares are down around just 3% over the past year. The talcum powder lawsuits Johnson & Johnson is facing will now fall on Kenvue, though Johnson & Johnson will retain, for now, 80.1% ownership of the new company. | While 2022 was a dreary year for some healthcare companies, Johnson & Johnson's shares are down around just 3% over the past year. While the company acknowledges it probably won't top 2022's revenue number the next two years, it says it expects to return to revenue growth by 2025. AbbVie has an even better dividend than Johnson & Johnson. |
31174.0 | 2023-02-14 00:00:00 UTC | Candy? Flowers? These Top Stocks Offer You Something Even Sweeter | ABT | https://www.nasdaq.com/articles/candy-flowers-these-top-stocks-offer-you-something-even-sweeter | nan | nan | Candy and flowers are great on Valentine's Day -- or any other time -- but we all have to admit the joy is pretty short-term. You wouldn't want to keep those chocolates or roses hanging around too long. Some stocks are like this too: They might have what it takes to boost your portfolio right now -- but they're likely to spoil or wilt down the road.
That's why, when investing, it's so important to focus on the long term and choose companies with strong prospects. This might be a company with a solid plan for growth, one that's proven its commitment to dividend growth, or a company with a strong pipeline of potential products. Candy and flowers may make you happy right now, but these stocks will keep you smiling over the long term. Let's check out three to buy now.
1. Lululemon Athletica
Lululemon Athletica (NASDAQ: LULU) is the perfect example of a company with a strong growth plan -- and one that looks achievable. That's because the maker of yoga-inspired clothing has done this before. The company launched its Power of Three growth plan prior to the pandemic and has met all of its goals.
The goals included doubling revenue from the men's line, doubling digital sales, and quadrupling international sales. Now, the company aims to do this again by 2026. If it succeeds, Lululemon's annual revenue would double to $12.5 billion.
Why is Lululemon so successful? The company's brand strength and innovation have kept customers coming back. Lululemon also reinforced its online connection with fans during the earlier stages of the pandemic -- inviting them to take part in its online community, Sweatlife. More recently, Lululemon launched a membership program to offer perks like early access to new products.
All of this has translated into earnings strength -- even in a difficult economy. Lululemon recently predicted that fourth-quarter 2022 revenue may come in as high as $2.7 billion, which would be a 27% increase over the same period a year earlier.
Today, Lululemon shares are trading at 27 times forward earnings, down from more than 40 a year ago. Considering potential growth ahead, Lululemon offers investors a sweet deal right now.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) gives investors two gifts every year: a dividend, and growth of that dividend. The healthcare giant has increased the payment for more than 50 consecutive years. That puts it on the list of Dividend Kings.
Why should a new Abbott investor care about past dividend increases? They suggest rewarding shareholders is important to the company, so it will probably continue with the current policy.
And the company's general growth in free cash flow means it has what it takes to keep boosting payouts:
ABT Free Cash Flow data by YCharts.
Today, Abbott pays an annual dividend of $2.04, currently providing a yield of 1.89%.
Investors will like Abbott for its earnings track record and future prospects too. The company recently reported full-year sales of more than $43 billion, representing a 6.4% increase on an organic basis. Abbott's leading products -- like the FreeStyle Libre continuous glucose monitoring system -- and new launches should keep growth going. And the company's presence in medical devices, diagnostics, nutrition, and established pharmaceuticals is another plus; if one business suffers a setback, the others may compensate.
Abbott shares trade at 27 times trailing-12-month earnings, well below their level of more than 60 just a few years ago. This isn't a lot to pay for all that Abbott offers over time.
3. Moderna
Moderna's (NASDAQ: MRNA) pipeline is a great reason to buy the stock today -- and sit back and wait. The company is working on 48 programs. And three candidates may represent blockbuster opportunities in the next few years: potential vaccines for influenza, respiratory syncytial virus (RSV), and cytomegalovirus (CMV).
Meanwhile, Moderna's coronavirus vaccine sales may decline as we head toward a post-pandemic world -- but they're still likely to remain at blockbuster levels. Moderna might lift the price of its vaccine to as much as $130 per dose from about $25. And the company forecasts aglobal marketsize in the range of $12 billion to $24 billion, as some of the population continues to opt for annual coronavirus boosters -- just as they would go for a flu shot.
So far, Moderna's profits from vaccine sales have helped it build a cash level of more than $18 billion. This will help the company bring product candidates through the pipeline and potentially to market.
It's hard to value Moderna's shares by traditional measures, since the coronavirus vaccine landscape is at a transition point right now. But considering that this billion-dollar product isn't going away and Moderna's pipeline may be set to produce more blockbusters, its shares look like they've got plenty of room to run over the coming years.
10 stocks we like better than Lululemon Athletica
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Lululemon Athletica. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) gives investors two gifts every year: a dividend, and growth of that dividend. And the company's general growth in free cash flow means it has what it takes to keep boosting payouts: ABT Free Cash Flow data by YCharts. And the company's presence in medical devices, diagnostics, nutrition, and established pharmaceuticals is another plus; if one business suffers a setback, the others may compensate. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) gives investors two gifts every year: a dividend, and growth of that dividend. And the company's general growth in free cash flow means it has what it takes to keep boosting payouts: ABT Free Cash Flow data by YCharts. Lululemon Athletica Lululemon Athletica (NASDAQ: LULU) is the perfect example of a company with a strong growth plan -- and one that looks achievable. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) gives investors two gifts every year: a dividend, and growth of that dividend. And the company's general growth in free cash flow means it has what it takes to keep boosting payouts: ABT Free Cash Flow data by YCharts. This might be a company with a solid plan for growth, one that's proven its commitment to dividend growth, or a company with a strong pipeline of potential products. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) gives investors two gifts every year: a dividend, and growth of that dividend. And the company's general growth in free cash flow means it has what it takes to keep boosting payouts: ABT Free Cash Flow data by YCharts. This might be a company with a solid plan for growth, one that's proven its commitment to dividend growth, or a company with a strong pipeline of potential products. |
31175.0 | 2023-02-13 00:00:00 UTC | The 7 Most Undervalued Dividend Aristocrats to Buy | ABT | https://www.nasdaq.com/articles/the-7-most-undervalued-dividend-aristocrats-to-buy | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If there’s anything better than having at least some exposure to passive income-providing enterprises, it’s loading the boat on the most undervalued dividend aristocrats to buy. Per Investopedia, “[d]ividend aristocrats are stocks of companies that have raised their dividends for at least 25 consecutive years.” Several of these enterprises have raised them for far longer, providing confidence for investors.
Fundamentally, the most undervalued dividend aristocrats may come in hand this year due to lingering uncertainties. While speculation about a gradual return to normal lift equities for the year so far, questions started to pop up. In particular, a robust labor market implies that the Federal Reserve may still need to raise rates significantly.
Plus, we have geopolitical tensions rising throughout the world, sending jitters into the financial system. While the most undervalued dividend aristocrats don’t provide perfect mitigation, they offer significant insulation. Below are seven ideas with analyst support to consider.
AFL Aflac $71.01
DOV Dover $155.70
ABBV AbbVie $153.73
PNR Pentair $56.54
GD General Dynamics $232.88
EMR Emerson Electric $86.91
ADM Archer Daniels Midland $81.90
Aflac (AFL)
Source: jittawit21/Shutterstock.com
An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. In fact, per its public profile, it’s the largest such provider in the nation. Because of its all-around relevance, AFL performed well. In the trailing year, shares gained 7% of equity value.
At the moment, Aflac carries a forward yield of 2.4%. To be sure, it’s not the greatest amount among undervalued dividend stocks to buy. For instance, the underlying financial sector’s average yield stands at 3.18%. However, the company commands an impressive 40 years of consecutive dividend increases. Plus, its payout ratio sits at 27.78%, providing confidence regarding sustainability.
Objectively, the market prices AFL at a trailing multiple of 10.64. As a discount to earnings, Aflac ranks better than 57% of its peers. Also, the company enjoys a strong net margin of 21.69%, adding to its overall appeal.
Finally, Wall Street analysts peg AFL as a consensus moderate buy. Their average price target pings at $72.11, implying over 3% upside potential. Thus, it makes for a solid candidate for most undervalued dividend aristocrats to buy.
Dover (DOV)
Source: iQoncept/shutterstock.com
Based in Illinois, Dover (NYSE:DOV) is a conglomerate manufacturer of industrial products. So far this year, DOV delighted stakeholders. Since the January opener, shares popped up over 13%. However, it still has some work to do. In the trailing year, DOV gave up more than 4% of equity value.
Be that as it may, DOV makes for an interesting case for undervalued dividend aristocrats, particularly for investors that don’t want to rock the boat. Currently, Dover carries a forward yield of 1.32%, admittedly a low rate of passive income. The industrial sector’s average yield stands at 2.36%. However, Dover commands 67 years of consecutive dividend increases. Furthermore, its payout ratio is subterranean at 20.61%.
According to data from Gurufocus.com, the market prices DOV at a trailing multiple of 20.63. As a discount to earnings, Dover ranks better than 51.47% of its competitors. Moreover, the company features above-average stats for revenue growth and net margin. Lastly, Wall Street analysts peg DOV as a consensus moderate buy. Their average price target stands at $158.92, implying 3.7% upside potential.
AbbVie (ABBV)
Source: Shutterstock
One of the largest biopharmaceutical companies, AbbVie (NYSE:ABBV) generally performed well during the post-coronavirus pandemic new normal. In the trailing year, ABBV gained 7% of equity value (though the price action was choppy). Further, in the trailing five years, shares gained 28%. However, since the January opener, ABBV slipped more than 6%.
Still, investors might consider the red ink as an opportunity among undervalued dividend aristocrats. Presently, AbbVie offers a forward yield of 3.89%. Conspicuosly, this ranks much higher than the healthcare sector’s average yield of 1.58%. Further, AbbVie enjoys 51 years of consecutive dividend increases. To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013.
Objectively, the market prices ABBV at a trailing multiple of 20.3. As a discount to earnings, AbbVie ranks better than 53.54% of the competition. Also, ABBV trades hands at 12.41-times forward earnings, coming in below the sector median of 15.27 times.
Right now, analysts peg AbbVie as a consensus moderate buy. Moreover, their average price target stands at $163.50, implying 7.53% upside potential. Thus, it’s well worth consideration for undervalued dividend aristocrats to buy.
Pentair (PNR)
Source: Shutterstock
A water treatment company, Pentair (NYSE:PNR) might not be one of the most well-known examples of undervalued dividend aristocrats. However, its relevance has served the company well recently. In the last six months, PNR gained over 11% of equity value. And since the January opener, shares moved up more than 22%.
Like some of the more conservative plays among undervalued dividend aristocrats, Pentair represents a don’t-rock-the-boat type of investment. Presently, its forward yield pings at 1.59%. That’s noticeably lower than the industrial sector’s average yield of 2.36%. However, Pentair commands 48 years of consecutive dividend increases. Moreover, its payout ratio sits at 21.9%, a very sustainable metric.
Financially, the market prices PNR at a trailing multiple of 19.1. As a discount to earnings, Pentair ranks better than 54.12% of its peers. Also, PNR trades hands at 15.5-times forward earnings, below the sector median of 18.87 times. Turning to Wall Street, covering analysts peg Pentair as a consensus moderate buy. In addition, their average price target stands at $60.50, implying almost 10% upside potential.
General Dynamics (GD)
Source: Shutterstock
Headquartered in Reston, Virginia, General Dynamics (NYSE:GD) is an aerospace and defense corporation. As of 2020, the company represented the fifth-largest defense contractor in the world by arms sales. Cynically speaking, relevancies associated with geopolitical flashpoints helped boost GD in 2022 while other securities struggled. However, GD dipped over 6% in the year thus far.
Nevertheless, contrarians might view this as an opportunity to pick up undervalued dividend aristocrats. Currently, General Dynamics offers a forward yield of 2.16%. This stat just slips below the industrial sector’s average yield. Interestingly, GD represents a relatively new entry among the dividend aristocrats, featuring 26 years of consecutive dividend increases. Still, this circumstance implies that management won’t be too quick to give up this hard-earned status.
Objectively, the market prices GD at a trailing multiple of 19.12. As a discount to earnings, General Dynamics ranks better than 70.93% of its rivals. Also, GD trades at 18.38-times forward earnings, below the sector median of 20.79 times. Finally, covering analysts peg the defense contractor as a consensus moderate buy. Further, their average price target stands at $272.50, implying nearly 17% upside potential.
Emerson Electric (EMR)
Source: Shutterstock
Based in Missouri, Emerson Electric (NYSE:EMR) is a multinational corporation that manufactures products and provides engineering services for industrial, commercial and consumer markets. To be sure, recent developments haven’t been kind to Emerson. In the trailing year, EMR gave up more than 9% of equity value. Since the Jan. opener, shares slipped nearly 11%.
Still, for contrarians, EMR could rank among the undervalued dividend aristocrats to buy. Presently, Emerson carries a forward yield of 2.42%. In this case, the yield just pips the underlying sector’s average value. Impressively, the company commands 66 years of consecutive dividend increases. Further, its payout ratio is manageable at 45.73%.
At time of writing, the market prices EMR at a trailing multiple of 10.89. As a discount to earnings, Emerson ranks better than 76.67% of its sector peers. Other than that, the company enjoys a strong profitability metrics. Lastly, Wall Street analysts peg EMR as a consensus moderate buy. Further, their average price target stands at $103.53, implying upside potential of almost 21%.
Archer Daniels Midland (ADM)
Source: Shutterstock
Headquartered in Chicago, Illinois, Archer Daniels Midland (NYSE:ADM) is a multinational food processing and commodities trading corporation. Thanks to its unparalleled relevance, ADM performed well in 2022. During the trailing year, ADM gained over 7% of equity value. And in the past five years, shares almost doubled. That said, this year saw ADM slip over 8% so far.
Nevertheless, it’s easy to imagine astute investors targeting ADM as one of the undervalued dividend aristocrats to buy. Currently, the company offers a forward yield of 2.19%. That’s a bit higher than the consumer staple sector’s average yield of 1.89%. Moreover, the company features 51 years of consecutive dividend increases and a payout ratio of 26.74%.
Right now, the market prices ADM at a trailing multiple of 10.65. As a discount to earnings, ADM ranks better than 72.67% of its rivals. Also, shares trade hands at 12.14-times forward earnings, below the sector median of 16.25 times. Finally, Wall Street analysts peg ADM as a consensus strong buy. Their average price target stands at $104.20, implying upside potential of 27%.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post The 7 Most Undervalued Dividend Aristocrats to Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013. Be that as it may, DOV makes for an interesting case for undervalued dividend aristocrats, particularly for investors that don’t want to rock the boat. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. | To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013. AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. Emerson Electric (EMR) Source: Shutterstock Based in Missouri, Emerson Electric (NYSE:EMR) is a multinational corporation that manufactures products and provides engineering services for industrial, commercial and consumer markets. | To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013. AFL Aflac $71.01 DOV Dover $155.70 ABBV AbbVie $153.73 PNR Pentair $56.54 GD General Dynamics $232.88 EMR Emerson Electric $86.91 ADM Archer Daniels Midland $81.90 Aflac (AFL) Source: jittawit21/Shutterstock.com An American insurance company, Aflac (NYSE:AFL) specializes in supplemental insurance. Interestingly, GD represents a relatively new entry among the dividend aristocrats, featuring 26 years of consecutive dividend increases. | To note, AbbVie spun off from Abbott Laboratories (NYSE:ABT) in 2013. The industrial sector’s average yield stands at 2.36%. Interestingly, GD represents a relatively new entry among the dividend aristocrats, featuring 26 years of consecutive dividend increases. |
31176.0 | 2023-02-13 00:00:00 UTC | Abbott (ABT) to Expand Vascular Device Line With New Buyout | ABT | https://www.nasdaq.com/articles/abbott-abt-to-expand-vascular-device-line-with-new-buyout | nan | nan | Abbott Laboratories, Inc. ABT recently entered into a definitive agreement to acquire Cardiovascular Systems CSII -- a medical device company with an innovative atherectomy system. The deal will help Abbott gain access to Cardiovascular System's leading atherectomy system to treat vascular disease.
The acquisition is likely to expand Abbott’s Vascular device solutions offering.
Financial Details
Per terms of the agreement, Cardiovascular System stockholders will get $20 per common share at a total expected equity value of around $890 million.
The transaction has been approved by the boards of directors of Cardiovascular System and Abbott. Still, it is subject to the approval of Cardiovascular System stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
Upon closing, the deal is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance. The company expects full-year adjusted earnings (excluding specified items of $1.25 per share) to be in the range of $4.30 to $4.50.
About Cardiovascular System
Cardiovascular Systems is a medical device company that develops and commercializes innovative solutions for treating vascular and coronary disease. The company's orbital atherectomy system treats calcified and fibrotic plaque in arterial vessels throughout the leg and heart. It addresses many of the limitations associated with existing surgical, catheter and pharmacological treatment alternatives.
Strategic Implications
Per Abbott’s management, the acquisition of Cardiovascular System will add new, complementary technologies to Abbott's leading vascular device offerings. Cardiovascular System has a talented and experienced team and a leading atherectomy system that will enable Abbott to provide physicians with more tools to aid patients to live fuller lives.
Image Source: Zacks Investment Research
Upon closing of the acquisition, Cardiovascular System's offering will support Abbott's ability to provide better care for patients with peripheral and coronary artery disease.
Industry Prospects
Per a report by Allied market Research, the global vascular disease devices market was valued at $26.52 billion in 2020 and is projected to reach $ 51.80 billion by 2030, registering a CAGR of 6.50%.
The advancements in vascular devices and improved healthcare infrastructure are expected to drive the market.
Recent Developments
In February, Abbott announced two approvals as part of its growing suite of electrophysiology products in theglobal market The company’s TactiFlex Ablation Catheter, Sensor Enabled — the world’s only ablation catheter with a flexible tip and contact force sensing, received CE Mark1 for treating people with abnormal heart rhythms like atrial fibrillation (AFi). Abbott’s FlexAbility Ablation Catheter, Sensor Enabled, also recently secured an expanded indication2 for treating patients with a complex heart condition by the FDA.
In January 2023, Abbott announced the receipt of Proclaim XR spinal cord stimulation (SCS) system to treat painful diabetic peripheral neuropathy (DPN) --- a debilitating complication of diabetes. The Proclaim XR SCS system can give relief to DPN patients in need of alternatives to traditional treatment approaches, such as oral medication.
Price Performance
Shares of the company have lost 11.9% in the past six months compared with the industry’s fall of 37.2%.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Two better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN and Cardinal Health, Inc. CAH.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 5.4% against the industry’s 19.6% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 48.7% against the industry’s 0.8% decline over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories, Inc. ABT recently entered into a definitive agreement to acquire Cardiovascular Systems CSII -- a medical device company with an innovative atherectomy system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Upon closing of the acquisition, Cardiovascular System's offering will support Abbott's ability to provide better care for patients with peripheral and coronary artery disease. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories, Inc. ABT recently entered into a definitive agreement to acquire Cardiovascular Systems CSII -- a medical device company with an innovative atherectomy system. About Cardiovascular System Cardiovascular Systems is a medical device company that develops and commercializes innovative solutions for treating vascular and coronary disease. | Abbott Laboratories, Inc. ABT recently entered into a definitive agreement to acquire Cardiovascular Systems CSII -- a medical device company with an innovative atherectomy system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report To read this article on Zacks.com click here. About Cardiovascular System Cardiovascular Systems is a medical device company that develops and commercializes innovative solutions for treating vascular and coronary disease. | Abbott Laboratories, Inc. ABT recently entered into a definitive agreement to acquire Cardiovascular Systems CSII -- a medical device company with an innovative atherectomy system. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report To read this article on Zacks.com click here. The deal will help Abbott gain access to Cardiovascular System's leading atherectomy system to treat vascular disease. |
31177.0 | 2023-02-13 00:00:00 UTC | Abbott (ABT) EPD Growth Continues Amid Macroeconomic Challenges | ABT | https://www.nasdaq.com/articles/abbott-abt-epd-growth-continues-amid-macroeconomic-challenges | nan | nan | Abbott ABT is gaining from new product launches and strategic acquisitions. Yet, due to macroeconomic hazards, the business environment continues to be challenging. The stock carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has lost 15.6% compared with the industry’s 38% fall.
Abbott exited the fourth quarter of 2022, with better-than-expected earnings and revenues. In Diagnostics, COVID testing sales were $1.1 billion in the fourth quarter. Excluding COVID testing sales, worldwide diagnostics grew more than 11% in the quarter. Growth in the quarter was led by rapid diagnostics where, excluding COVID-19 tests, sales improved 30% year over year.
During the pandemic, Abbott significantly expanded the install base of ID NOW and opened new testing channels. This expanded footprint, drove strong growth and supported testing needs when flu and other respiratory infections surged late in 2021. During 2022, Abbott successfully continued with the rollout of Alinity, the company’s innovative suite of diagnostic instruments, and expanded test menus across its platforms for immunoassay, clinical chemistry and molecular testing.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
Within EPD, sales increased 8% organically in the fourth quarter led by double-digit growth across several countries, including India, China, Brazil, and Mexico, along with broad-based strength across several therapeutic areas.
In Medical Device, sales grew 7.5% globally. In the United States, sales growth was led by double-digit growth in Electrophysiology, Structural Heart and Diabetes Care.
Within Diabetes Care specifically, fourth-quarter sales of FreeStyle Libre grew over 40% in the United States. Global Libre sales touched $4.3 billion in 2022.
Abbott currently forecasts total organic sales growth, excluding the impact of COVID testing-related sales, to be in high-single digits in 2023.
As a major update, Abbott recently entered into a definitive agreement to acquire Cardiovascular Systems, a medical device company with an advanced atherectomy system used in treating peripheral and coronary artery disease.
On the flip side, Abbott’s fourth-quarter revenues and earnings declined on a year-over-year basis. Total sales were negatively impacted by COVID testing-related sales decline. COVID testing sales were $1.1 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally and ID NOW globally, comprising approximately 95% of the sales.
Moreover, the decline in U.S. infant formula sales due to manufacturing disruptions dented the quarter’s sales further. We note that a manufacturing stoppage was initiated in February 2022 of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.
Within Medical Device, international sales were negatively impacted by intermittent COVID lockdowns in China, as well as supply constraints in certain areas.
Within Abbott’s Nutrition business, in the fourth quarter, worldwide Nutrition sales were down 5.7% on an organic basis, with an 11.8% slump in Pediatric Nutrition sales. The downside in total worldwide Nutrition and Pediatric Nutrition sales can be attributed to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February.
A challenging macro environment, adverse currency translation and stubborn inflationary situation severely impacted the company’s profitability in the fourth quarter.
Key Picks
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Cardinal Health, Inc. CAH and Merit Medical Systems, Inc. MMSI.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 8.3% compared with the industry’s 22.9% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 48.9% against the industry’s 4.5% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 22.9% against the industry’s 4.5% decline over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT is gaining from new product launches and strategic acquisitions. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. This expanded footprint, drove strong growth and supported testing needs when flu and other respiratory infections surged late in 2021. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT is gaining from new product launches and strategic acquisitions. COVID testing sales were $1.1 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally and ID NOW globally, comprising approximately 95% of the sales. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT is gaining from new product launches and strategic acquisitions. COVID testing sales were $1.1 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally and ID NOW globally, comprising approximately 95% of the sales. | Abbott ABT is gaining from new product launches and strategic acquisitions. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report To read this article on Zacks.com click here. In Diagnostics, COVID testing sales were $1.1 billion in the fourth quarter. |
31178.0 | 2023-02-12 00:00:00 UTC | Here's What To Expect From Medtronic's Q3 | ABT | https://www.nasdaq.com/articles/heres-what-to-expect-from-medtronics-q3 | nan | nan | Medtronic (NYSE: MDT) is scheduled to report its fiscal 2023 third-quarter results on Tuesday, February 21. We expect Medtronic stock to trade higher post Q3, with its revenues and earnings likely falling above the street estimates. The company should benefit from its new products and a better pricing environment. Not only do we expect Medtronic to report upbeat results, but we also find its stock undervalued, as discussed below. Our interactive dashboard analysis of Medtronic’s Earnings Preview has additional details.
(1) Revenues are expected to be marginally above the consensus estimate
Trefis estimates Medtronic’s Q3 fiscal 2023 total revenues to be around $7.6 billion, reflecting a low single-digit y-o-y decline but slightly above the $7.5 billion consensus estimate.
The company should benefit from its new products, including the Micra AV pacemaker and Abre venous self-expanding stent system for Deep Venous disease. It should also see continued strength in cardiac products.
However, the Medical Surgical segment may see lower sales due to a continued decline in ventilator demand.
Forex headwinds may also weigh on the overall top-line growth. Medtronic expects organic revenue growth of around 4% in the second half of the current fiscal.
Looking at the last quarter, Medtronic’s revenue declined 3% y-o-y to $7.6 billion, primarily due to a 3.5% fall in Medical Surgical sales due to declining demand for ventilators. All its other segments, including Diabetes and Neuroscience, saw sales growth during the quarter.
Our dashboard on Medtronic Revenues provides more details on the company’s segments.
(2) EPS expected to be above the consensus estimates
Medtronic’s Q3 fiscal 2023 earnings per share (EPS) is expected to be $1.29 per Trefis analysis, slightly higher than the $1.27 consensus estimate.
Medtronic’s net income of $1.7 billion in Q2 reflected a 4% fall y-o-y, as the company’s adjusted operating margins fell over 150 bps to 25.4%.
Looking at the full fiscal 2023, we expect EPS to be lower at $5.32, compared to the $5.55 seen in fiscal 2022.
(3) MDT stock is undervalued
We estimate Medtronic’s Valuation to be $106 per share, reflecting a 22% upside from its current market price of around $87.
At its current levels, MDT stock is trading at 16x its expected forward earnings, compared to the last three-year average of 20x, implying that MDT stock is attractive from a valuation point of view.
If the company reports upbeat Q3 results and the guidance is better than the street estimates, it is likely that the P/E multiple will be revised upward, resulting in higher levels for MDT stock.
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Becton Dickinson vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Feb 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
MDT Return 3% 11% 21%
S&P 500 Return 1% 7% 84%
Trefis Multi-Strategy Portfolio 1% 13% 254%
[1] Month-to-date and year-to-date as of 2/9/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We expect Medtronic stock to trade higher post Q3, with its revenues and earnings likely falling above the street estimates. Medtronic’s net income of $1.7 billion in Q2 reflected a 4% fall y-o-y, as the company’s adjusted operating margins fell over 150 bps to 25.4%. (3) MDT stock is undervalued We estimate Medtronic’s Valuation to be $106 per share, reflecting a 22% upside from its current market price of around $87. | (1) Revenues are expected to be marginally above the consensus estimate Trefis estimates Medtronic’s Q3 fiscal 2023 total revenues to be around $7.6 billion, reflecting a low single-digit y-o-y decline but slightly above the $7.5 billion consensus estimate. Looking at the last quarter, Medtronic’s revenue declined 3% y-o-y to $7.6 billion, primarily due to a 3.5% fall in Medical Surgical sales due to declining demand for ventilators. (2) EPS expected to be above the consensus estimates Medtronic’s Q3 fiscal 2023 earnings per share (EPS) is expected to be $1.29 per Trefis analysis, slightly higher than the $1.27 consensus estimate. | (1) Revenues are expected to be marginally above the consensus estimate Trefis estimates Medtronic’s Q3 fiscal 2023 total revenues to be around $7.6 billion, reflecting a low single-digit y-o-y decline but slightly above the $7.5 billion consensus estimate. (2) EPS expected to be above the consensus estimates Medtronic’s Q3 fiscal 2023 earnings per share (EPS) is expected to be $1.29 per Trefis analysis, slightly higher than the $1.27 consensus estimate. Total [2] MDT Return 3% 11% 21% S&P 500 Return 1% 7% 84% Trefis Multi-Strategy Portfolio 1% 13% 254% [1] Month-to-date and year-to-date as of 2/9/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We expect Medtronic stock to trade higher post Q3, with its revenues and earnings likely falling above the street estimates. (3) MDT stock is undervalued We estimate Medtronic’s Valuation to be $106 per share, reflecting a 22% upside from its current market price of around $87. Total [2] MDT Return 3% 11% 21% S&P 500 Return 1% 7% 84% Trefis Multi-Strategy Portfolio 1% 13% 254% [1] Month-to-date and year-to-date as of 2/9/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31179.0 | 2023-02-10 00:00:00 UTC | The Zacks Analyst Blog Highlights Abbott Laboratories, Boeing, Diageo, Lam Research and Freeport-McMoRan | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbott-laboratories-boeing-diageo-lam-research-and | nan | nan | For Immediate Release
Chicago, IL – February 10, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Abbott Labs, Boeing and Diageo
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Abbott Laboratories, The Boeing Company and Diageo plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Abbott Laboratories have declined -13.7% over the past year against the Zacks Medical - Products industry’s decline of -37.7%. The company’s numbers declined on a year-over-year basis in the latest quarterly release, with sales were negatively impacted by a decline in COVID testing-related sales. Moreover, the decline in U.S. infant formula sales due to manufacturing disruptions dented the quarter’s sales further.
However, Abbott exited the fourth quarter of 2022 with better-than-expected earnings and revenues. Excluding COVID testing sales, worldwide Diagnostics sales grew over 11% led by rapid diagnostics. Within EPD, sales increased 8% organically in the fourth quarter led by double-digit growth across several countries.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
(You can read the full research report on Abbott Laboratories here >>>)
Shares of Boeing have declined -2.4% over the past year against the Zacks Aerospace - Defense industry’s decline of -7.4%. The company’s 737 MAX program remains a cause of concern in China, thus impacting its expectation of delivery timing and future gradual production rate increases.
Its arch-rival, Airbus, remained quite a step ahead in terms of commercial deliveries during the fourth quarter of 2022. The Russia-Ukraine crisis poses risk for Boeing. However, Boeing remains the largest aircraft manufacturer in the United States, in terms of revenue, orders and deliveries.
Lately, the company has been witnessing solid recovery in its commercial business. The outlook for its defense business also remains optimistic. It holds a strong solvency position in the near term.
(You can read the full research report on Boeing here >>>)
Diageo shares have underperformed the Zacks Beverages - Alcohol industry over the past year (-15.6% vs. -9.5%). The company is facing continued inflationary pressures from increased glass, ocean freight and other transportation costs, and currency headwinds are concerning.
Nevertheless, Diageo’s organic operating margin expansion, productivity savings and favorable currency impact aided Diageo’s first-half fiscal 2023 results. Effective marketing and exceptional commercial execution further aided the results. Price/mix gained from a positive mix due to the robust growth in super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. The company retained its optimistic view for the medium to long term.
(You can read the full research report on Diageo here >>>)
Other noteworthy reports we are featuring today include Lam Research Corp. and Freeport-McMoRan Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. DEO’s margin trends were favorable in the first half, thanks to the its premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset the cost inflation. | Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Abbott Laboratories, The Boeing Company and Diageo plc. | Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Abbott Labs, Boeing and Diageo The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Abbott Laboratories ABT, The Boeing Company BA, Diageo plc DEO, Lam Research Corp. LRCX and Freeport-McMoRan Inc. FCX. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Diageo plc (DEO) : Free Stock Analysis Report To read this article on Zacks.com click here. Its arch-rival, Airbus, remained quite a step ahead in terms of commercial deliveries during the fourth quarter of 2022. |
31180.0 | 2023-02-09 00:00:00 UTC | Why Cardiovascular Systems Stock Is Soaring Today | ABT | https://www.nasdaq.com/articles/why-cardiovascular-systems-stock-is-soaring-today | nan | nan | What happened
Shares of Cardiovascular Systems (NASDAQ: CSII) are up big today. Specifically, the medical technology company's stock is up by a noteworthy 48.7% as of 10:44 a.m. ET Thursday morning.
Cardiovascular Systems' stock is jumping in response to a buyout agreement with Abbott Laboratories (NYSE: ABT). Per the terms of the deal, Abbott has agreed to pay $20 per share for Cardiovascular Systems for a total deal value of approximately $890 million.
Image source: Getty Images.
So what
This price point represents a 50% premium relative to where Cardiovascular Systems stock closed Wednesday. What's more, Abbott expects the deal to be neutral to its 2023 ongoing earnings per share guidance.
Through this acquisition, Abbott will gain Cardiovascular Systems' platform of market-leading vascular plaque clearing devices. Wall Street analysts expect this novel platform to generate roughly $284 million in sales in 2024.
To put this sales figure into context, Abbott is forecast to haul in over $42 billion in sales next year. So this acquisition probably won't have much of an impact on the healthcare giant's financials in the near term. In fact, the real value add behind this deal appears to be Cardiovascular Systems' early-stage pipeline of complementary vascular intervention devices.
Now what
Is Abbott stock a buy on this news? Although this particular transaction won't have an immediate impact on Abbott's core value proposition, this Dividend King is arguably always worth consideration. Speaking to this point, Abbott has raised its dividend for 51 consecutive years, it sports a rock-solid balance sheet, and it offers respectable top-line-growth prospects over the balance of the decade.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems' stock is jumping in response to a buyout agreement with Abbott Laboratories (NYSE: ABT). Through this acquisition, Abbott will gain Cardiovascular Systems' platform of market-leading vascular plaque clearing devices. In fact, the real value add behind this deal appears to be Cardiovascular Systems' early-stage pipeline of complementary vascular intervention devices. | Cardiovascular Systems' stock is jumping in response to a buyout agreement with Abbott Laboratories (NYSE: ABT). Per the terms of the deal, Abbott has agreed to pay $20 per share for Cardiovascular Systems for a total deal value of approximately $890 million. Through this acquisition, Abbott will gain Cardiovascular Systems' platform of market-leading vascular plaque clearing devices. | Cardiovascular Systems' stock is jumping in response to a buyout agreement with Abbott Laboratories (NYSE: ABT). 10 stocks we like better than Cardiovascular Systems When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 8, 2023 George Budwell has no position in any of the stocks mentioned. | Cardiovascular Systems' stock is jumping in response to a buyout agreement with Abbott Laboratories (NYSE: ABT). Per the terms of the deal, Abbott has agreed to pay $20 per share for Cardiovascular Systems for a total deal value of approximately $890 million. Wall Street analysts expect this novel platform to generate roughly $284 million in sales in 2024. |
31181.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Alphabet extends fall; Disney hits 5-month high | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-alphabet-extends-fall-disney-hits-5-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25%
Updates prices, details; adds comments
By Johann M Cherian and Ankika Biswas
Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings.
Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.6%. The S&P 500 communication services sector .SPLRCL sank 2.6%, while Alphabet shares eyed their worst weekly performance since November.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Meanwhile, Disney Co DIS.N gained 1.6%, highest since late August, after beating earnings estimates and announcing job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat.
"Wall Street wants to see companies taking action and reducing costs and expenses. That's the name of the game right now. Not great for employees, but certainly good for shareholders," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Salesforce IncCRM.N added 2.8% on reports that hedge fund Third Point LLC owns a stake in the company.
At 12:53 p.m. ET, the Dow Jones Industrial Average .DJI was down 73.56 points, or 0.22%, at 33,875.45, the S&P 500 .SPX was down 10.01 points, or 0.24%, at 4,107.85, and the Nasdaq Composite .IXIC was down 29.41 points, or 0.25%, at 11,881.11.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 1.2% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.1% after beating fourth-quarter profit expectations.
Ralph Lauren CorpRL.N gained 1.2% after beating quarterly sales expectations, while peer Tapestry IncTPR.N soared 5.4% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 0.9%.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 64 new highs and 39 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week. | Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.6%. | Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims. | Cardiovascular Systems IncCSII.O soared 48.5% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes down: Dow 0.22%, S&P 0.24%, Nasdaq 0.25% Updates prices, details; adds comments By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings. Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims. |
31182.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Treasury yields rise; Disney hits 5-month high | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-treasury-yields-rise-disney-hits-5-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65%
Updates prices, details; adds comments
By Carolina Mandl
Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings.
"The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. He said investors were also still digesting recent comments from Fed officials.
The U.S. 30-year Treasury yield rose after an auction in the early afternoon, while the yield curve between two-year and 10-year notes widened earlier.
Wall Street's three main indexes opened higher after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 5.2179%. The S&P 500 communication services sector .SPLRCL sank 2.86%.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Meanwhile, Disney Co DIS.N was up 0.36% after posting the highest gains since late August. It beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat.
Salesforce Inc CRM.N added 2.31% on reports that hedge fund Third Point LLC owns a stake in the company.
At 2:36 p.m. ET, the Dow Jones Industrial Average .DJI fell 175.71 points, or 0.52%, to 33,773.3, the S&P 500 .SPX lost 23.16 points, or 0.56%, to 4,094.7 and the Nasdaq Composite .IXIC dropped 77.55 points, or 0.65%, to 11,832.97.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations.
Ralph Lauren Corp RL.N gained 1.01% after beating quarterly sales expectations, while peer Tapestry Inc TPR.N soared 4.48% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 1.80%.
Declining issues outnumbered advancing ones on the NYSE by a 1.85-to-1 ratio; on the Nasdaq, a 2.02-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 69 new highs and 41 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. PepsiCo Inc PEP.O rose 0.67% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 3.08% after beating fourth-quarter profit expectations. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Dow down 0.52%, S&P 500 down 0.56%, Nasdaq down 0.65% Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes turned lower on Thursday afternoon as Treasury yields rose after an auction, overshadowing gains in Disney after strong earnings. More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data. |
31183.0 | 2023-02-09 00:00:00 UTC | Health Care Sector Update for 02/09/2023: AZN, BAX, CSII, ABT, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-02-09-2023%3A-azn-bax-csii-abt-xlv-ibb | nan | nan | Health care stocks were mixed premarket Thursday. The Health Care Select Sector SPDR Fund (XLV) was up 0.3% and the iShares Biotechnology ETF (IBB) was about 0.3% lower recently.
AstraZeneca (AZN) reported Q4 core earnings of $1.38 per share, down from $1.67 a year earlier. Analysts polled by Capital IQ expected $1.33. AstraZeneca was over 5% higher in recent premarket activity.
Baxter International (BAX) was slipping nearly 8% after it reported Q4 adjusted earnings of $0.88 per diluted share, down from $1.03 a year earlier. Analysts polled by Capital IQ forecast $0.94.
Cardiovascular Systems (CSII) was gaining over 48% in value after Abbott Laboratories (ABT) said it has agreed to acquire the company for $20 per share, representing approximately $890 million in equity value. Separately, Cardiovascular Systems posted a fiscal Q2 loss of $0.20 per diluted share, compared with a loss of $0.23 per share a year earlier. Analysts polled by Capital IQ expected a loss of $0.15 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems (CSII) was gaining over 48% in value after Abbott Laboratories (ABT) said it has agreed to acquire the company for $20 per share, representing approximately $890 million in equity value. The Health Care Select Sector SPDR Fund (XLV) was up 0.3% and the iShares Biotechnology ETF (IBB) was about 0.3% lower recently. Baxter International (BAX) was slipping nearly 8% after it reported Q4 adjusted earnings of $0.88 per diluted share, down from $1.03 a year earlier. | Cardiovascular Systems (CSII) was gaining over 48% in value after Abbott Laboratories (ABT) said it has agreed to acquire the company for $20 per share, representing approximately $890 million in equity value. Analysts polled by Capital IQ expected $1.33. Separately, Cardiovascular Systems posted a fiscal Q2 loss of $0.20 per diluted share, compared with a loss of $0.23 per share a year earlier. | Cardiovascular Systems (CSII) was gaining over 48% in value after Abbott Laboratories (ABT) said it has agreed to acquire the company for $20 per share, representing approximately $890 million in equity value. The Health Care Select Sector SPDR Fund (XLV) was up 0.3% and the iShares Biotechnology ETF (IBB) was about 0.3% lower recently. Separately, Cardiovascular Systems posted a fiscal Q2 loss of $0.20 per diluted share, compared with a loss of $0.23 per share a year earlier. | Cardiovascular Systems (CSII) was gaining over 48% in value after Abbott Laboratories (ABT) said it has agreed to acquire the company for $20 per share, representing approximately $890 million in equity value. Health care stocks were mixed premarket Thursday. AstraZeneca (AZN) reported Q4 core earnings of $1.38 per share, down from $1.67 a year earlier. |
31184.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Treasury yields rise after auction | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-treasury-yields-rise-after-auction | nan | nan | By Carolina Mandl
Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
"The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. He said investors were also still digesting recent comments from Fed officials.
Yields on the U.S. 30-year note rose after the Treasury Department saw weak demand for a $21 billion sale, the final sale of $96 billion in coupon-bearing supply this week. In a note to clients, Jefferies said "the buyside bid failed to come together."
According to preliminary data, the S&P 500 .SPX lost 36.09 points, or 0.88%, to end at 4,081.77 points, while the Nasdaq Composite .IXIC lost 119.01 points, or 1.00%, to 11,791.51. The Dow Jones Industrial Average .DJI fell 243.40 points, or 0.72%, to 33,705.61.
"With Treasury yields higher, it becomes a legitimate alternative to equities," said Michael Rosen, chief investment officer at Angeles Investments.
Wall Street's three main indexes opened higher on Thursday after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall. Most S&P 500 sectors posted losses.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat.
Salesforce Inc CRM.N rose on reports that hedge fund Third Point LLC owns a stake in the company.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained after beating fourth-quarter profit expectations.
Tapestry Inc TPR.N soared on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems Inc CSII.O soared after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell.
(Reporting by Carolina Mandl, in New York, Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems Inc CSII.O soared after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. | Cardiovascular Systems Inc CSII.O soared after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data. |
31185.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St rises on robust earnings, Disney hits five-month high | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-robust-earnings-disney-hits-five-month-high | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney jumps on Q1 beat, layoff plans
PepsiCo gains on quarterly profit, sales beat
Salesforce rises on reports Third Point owns stake
U.S. weekly jobless claims increase
Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11%
Updates prices, details
By Johann M Cherian and Ankika Biswas
Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path.
Disney Co DIS.N gained 3% to its highest level since late August after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs.
Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company.
Investor sentiment was further boosted after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data comes on the heels of a strong January employment report that rattled markets last week.
"This is a definite sign that weakness in the labor market is coming despite the huge job number last week," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"There are so many companies that are laying off people...if this trend continues and inflation continues to head downwards, then the Fed's tune will change and a pause is not that far away."
Traders are betting that the central bank will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
At 10:11 a.m. ET, the Dow Jones Industrial Average .DJI was up 242.31 points, or 0.71%, at 34,191.32, the S&P 500 .SPX was up 29.97 points, or 0.73%, at 4,147.83, and the Nasdaq Composite .IXIC was up 131.96 points, or 1.11%, at 12,042.48.
All the major S&P 500 sectors were higher, with technology .SPLRCT jumping 1.7%.
Megacap stocks including Meta Platforms META.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O climbed in the range of 1.1% to 4.8% as U.S. Treasury yields extended declines. US/
Stocks have enjoyed an upbeat start to the year on hopes that the Fed would abandon its hawkish rhetoric and pilot the economy to a soft landing.
PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations.
Ralph Lauren CorpRL.N gained 3% after beating quarterly sales expectations, while peer Tapestry IncTPR.N soared 5% on a strong annual profit forecast.
The consumer discretionary sector .SPLRCD housing the luxury names added 1.7%.
Of more than half of the S&P 500 companies that have reported fourth-quarter earnings so far, 69% have topped estimates, as per Refinitiv data.
Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million.
Advancing issues outnumbered decliners by a 3.03-to-1 ratio on the NYSE and by a 2.17-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and one new low, while the Nasdaq recorded 49 new highs and 20 new lows.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Disney Co DIS.N gained 3% to its highest level since late August after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs. Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company. | Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. PepsiCo Inc PEP.O rose 1.6% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 4.6% after beating fourth-quarter profit expectations. | Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. Fellow Dow component Salesforce IncCRM.N added 3% as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company. | Cardiovascular Systems Inc (CSI) CSII.O soared 48.1% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Disney jumps on Q1 beat, layoff plans PepsiCo gains on quarterly profit, sales beat Salesforce rises on reports Third Point owns stake U.S. weekly jobless claims increase Indexes up: Dow 0.71%, S&P 0.73%, Nasdaq 1.11% Updates prices, details By Johann M Cherian and Ankika Biswas Feb 9 (Reuters) - U.S. main stock indexes rose on Thursday with Disney and Salesforce boosting the blue-chip Dow index, while data showing a rise in weekly jobless claims helped ease concerns about the Federal Reserve's rate-hike path. The data comes on the heels of a strong January employment report that rattled markets last week. |
31186.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St set to get a lift from robust earnings, rise in jobless claims | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-get-a-lift-from-robust-earnings-rise-in-jobless-claims | nan | nan | By Sruthi Shankar and Johann M Cherian
Feb 9 (Reuters) - U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path.
Walt Disney Co DIS.N climbed 5.6% premarket after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs and make its streaming business profitable.
PepsiCo Inc PEP.O rose 1.8% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 1.3% after beating fourth-quarter profit expectations.
Futures got a lift after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4. Economists polled by Reuters had forecast 190,000 claims for the latest week.
The data comes on the heels of a strong January employment report that rattled markets last week.
"This is a definite sign that weakness in the labor market is coming despite the huge job number last week," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"There are so many companies that are laying off people and that eventually is going to weaken the job market. This for the Fed is too soon, but if this trend continues and inflation continues to head downwards, then the Fed's tune will change and a pause is not that far away."
Traders are betting that the central bank will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials. However, money market traders are also anticipating rate cuts this year. 0#FEDWATCH
At 8:50 a.m. ET, Dow e-minis 1YMcv1 were up 213 points, or 0.63%, S&P 500 e-minis EScv1 were up 33 points, or 0.8%, and Nasdaq 100 e-minis NQcv1 were up 160.5 points, or 1.28%.
Megacap stocks including Meta Platforms META.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O climbed in the range of 1.3% to 2.0% as U.S. Treasury yields extended declines. US/
Stocks have enjoyed an upbeat start to the year on hopes that the Fed would steer away from its hawkish rhetoric and leave the economy on a strong footing.
Of more than half of the S&P 500 companies that have reported fourth-quarter results so far, 69% have topped analysts' earnings estimates, as per Refinitiv IBES data. In a typical quarter 66% top estimates.
Ralph Lauren CorpRL.N gained 2.4% after beating quarterly revenue expectations on resilient demand for its high-end clothing and accessories.
Salesforce Inc CRM.N edged 1.8% higher as a source familiar with the matter told Reuters that hedge fund Third Point LLC owns a stake in the company.
Cardiovascular Systems Inc (CSI) CSII.O jumped 48.3% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million.
(Reporting by Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems Inc (CSI) CSII.O jumped 48.3% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Sruthi Shankar and Johann M Cherian Feb 9 (Reuters) - U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path. Walt Disney Co DIS.N climbed 5.6% premarket after topping earnings estimates and announcing 7,000 job cuts as part of an effort to save $5.5 billion in costs and make its streaming business profitable. | Cardiovascular Systems Inc (CSI) CSII.O jumped 48.3% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Sruthi Shankar and Johann M Cherian Feb 9 (Reuters) - U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path. PepsiCo Inc PEP.O rose 1.8% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 1.3% after beating fourth-quarter profit expectations. | Cardiovascular Systems Inc (CSI) CSII.O jumped 48.3% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Sruthi Shankar and Johann M Cherian Feb 9 (Reuters) - U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path. "This is a definite sign that weakness in the labor market is coming despite the huge job number last week," said Peter Cardillo, chief market economist at Spartan Capital Securities. | Cardiovascular Systems Inc (CSI) CSII.O jumped 48.3% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. By Sruthi Shankar and Johann M Cherian Feb 9 (Reuters) - U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path. "This is a definite sign that weakness in the labor market is coming despite the huge job number last week," said Peter Cardillo, chief market economist at Spartan Capital Securities. |
31187.0 | 2023-02-09 00:00:00 UTC | US STOCKS-Wall St dips as Treasury yields rise after auction | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-dips-as-treasury-yields-rise-after-auction-0 | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02%
Weak demand for $21 bln sale of 30-year Treasury bonds
PepsiCo gains on quarterly profit, sales beat
Disney beats earnings estimates but ends down
Salesforce rises on reports Third Point owns stake
Updates prices, details; adds comments
By Carolina Mandl
Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
"The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. He said investors were also still digesting recent comments from Fed officials.
Yields on the U.S. 30-year note rose after the Treasury Department saw weak demand for a $21 billion sale, the final sale of $96 billion in coupon-bearing supply this week. In a note to clients, Jefferies said "the buyside bid failed to come together."
The Dow Jones Industrial Average .DJI fell 249.13 points on Thursday, or 0.73%, to 33,699.88, the S&P 500 .SPX lost 36.36 points, or 0.88%, to 4,081.5 and the Nasdaq Composite .IXIC dropped 120.94 points, or 1.02%, to 11,789.58.
Volume on U.S. exchanges was 11.49 billion shares, compared with the 11.93 billion average for the full session over the last 20 trading days.
"With Treasury yields higher, it becomes a legitimate alternative to equities," said Michael Rosen, chief investment officer at Angeles Investments.
Wall Street's three main indexes opened higher on Thursday after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims.
The data tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.
Weighing on the S&P 500 .SPX and Nasdaq .IXIC indexes, Alphabet IncGOOGL.O extended losses from the previous session to fall 4.7%. All 11 S&P 500 sectors posted losses.
The Google parent's new chatbot shared inaccurate information on Wednesday, feeding worries that it is losing ground to rival Microsoft Corp MSFT.O.
Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. Still, it ended down 1.27%.
Salesforce Inc CRM.N rose 2.38% on reports that hedge fund Third Point LLC owns a stake in the company.
Stocks have enjoyed an upbeat start to the year on hopes that the Fed will abandon its hawkish rhetoric and pilot the economy to a soft landing.
Traders are betting that the Fed will raise its benchmark rate to a peak of 5.1% in July, largely in line with the forecasts of Fed officials.
PepsiCo Inc PEP.O rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie IncABBV.N gained 2.82% after beating fourth-quarter profit expectations.
Tapestry Inc TPR.N soared 3.47% on a strong annual profit forecast.
More than half of the S&P 500 companies have reported quarterly earnings so far, and 69% of them have beaten estimates, according to Refinitiv data.
Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. Abbott fell 1.93%.
Declining issues outnumbered advancing ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 2.37-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 75 new highs and 57 new lows.
(Reporting by Carolina Mandl, in New York, Sruthi Shankar, Medha Singh, Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. Disney Co DIS.N beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. "The stock market started today's session with a distinct bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market today," said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah. | Cardiovascular Systems Inc CSII.O soared 48.38% after Abbott Laboratories ABT.N said it would buy the medical device maker for $837.6 million. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02% Weak demand for $21 bln sale of 30-year Treasury bonds PepsiCo gains on quarterly profit, sales beat Disney beats earnings estimates but ends down Salesforce rises on reports Third Point owns stake Updates prices, details; adds comments By Carolina Mandl Feb 9 (Reuters) - U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. All 11 S&P 500 sectors posted losses. |
31188.0 | 2023-02-08 00:00:00 UTC | Abbott To Acquire Cardiovascular Systems In $890 Mln Deal | ABT | https://www.nasdaq.com/articles/abbott-to-acquire-cardiovascular-systems-in-%24890-mln-deal | nan | nan | (RTTNews) - Abbott (ABT) said Wednesday that it agreed to acquire Cardiovascular Systems Inc, a medical device company with an atherectomy system used in treating peripheral and coronary artery disease, in a deal valued at about $890 million.
Under terms of the agreement, Cardiovascular Systems Inc or CSI stockholders will receive $20 per common share.
The transaction is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance.
The transaction, is subject to the approval of CSI stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said Wednesday that it agreed to acquire Cardiovascular Systems Inc, a medical device company with an atherectomy system used in treating peripheral and coronary artery disease, in a deal valued at about $890 million. Under terms of the agreement, Cardiovascular Systems Inc or CSI stockholders will receive $20 per common share. The transaction is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance. | (RTTNews) - Abbott (ABT) said Wednesday that it agreed to acquire Cardiovascular Systems Inc, a medical device company with an atherectomy system used in treating peripheral and coronary artery disease, in a deal valued at about $890 million. Under terms of the agreement, Cardiovascular Systems Inc or CSI stockholders will receive $20 per common share. The transaction, is subject to the approval of CSI stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. | (RTTNews) - Abbott (ABT) said Wednesday that it agreed to acquire Cardiovascular Systems Inc, a medical device company with an atherectomy system used in treating peripheral and coronary artery disease, in a deal valued at about $890 million. The transaction, is subject to the approval of CSI stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said Wednesday that it agreed to acquire Cardiovascular Systems Inc, a medical device company with an atherectomy system used in treating peripheral and coronary artery disease, in a deal valued at about $890 million. Under terms of the agreement, Cardiovascular Systems Inc or CSI stockholders will receive $20 per common share. The transaction is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance. |
31189.0 | 2023-02-08 00:00:00 UTC | Abbott to acquire Cardiovascular Systems for $890 mln | ABT | https://www.nasdaq.com/articles/abbott-to-acquire-cardiovascular-systems-for-%24890-mln | nan | nan | Feb 8 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it has agreed to acquire medical device maker Cardiovascular Systems Inc in a deal valued at about $890 million.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 8 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it has agreed to acquire medical device maker Cardiovascular Systems Inc in a deal valued at about $890 million. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 8 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it has agreed to acquire medical device maker Cardiovascular Systems Inc in a deal valued at about $890 million. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 8 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it has agreed to acquire medical device maker Cardiovascular Systems Inc in a deal valued at about $890 million. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 8 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it has agreed to acquire medical device maker Cardiovascular Systems Inc in a deal valued at about $890 million. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31190.0 | 2023-02-08 00:00:00 UTC | Notable ETF Inflow Detected - VT, PFE, MRK, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-vt-pfe-mrk-abt | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total World Stock ETF (Symbol: VT) where we have detected an approximate $472.5 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 281,760,612 to 286,806,051). Among the largest underlying components of VT, in trading today Pfizer Inc (Symbol: PFE) is up about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.9%. For a complete list of holdings, visit the VT Holdings page » The chart below shows the one year price performance of VT, versus its 200 day moving average:
Looking at the chart above, VT's low point in its 52 week range is $76.80 per share, with $104.95 as the 52 week high point — that compares with a last trade of $93.31. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VT, in trading today Pfizer Inc (Symbol: PFE) is up about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.9%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of VT, in trading today Pfizer Inc (Symbol: PFE) is up about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total World Stock ETF (Symbol: VT) where we have detected an approximate $472.5 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 281,760,612 to 286,806,051). For a complete list of holdings, visit the VT Holdings page » The chart below shows the one year price performance of VT, versus its 200 day moving average: Looking at the chart above, VT's low point in its 52 week range is $76.80 per share, with $104.95 as the 52 week high point — that compares with a last trade of $93.31. | Among the largest underlying components of VT, in trading today Pfizer Inc (Symbol: PFE) is up about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total World Stock ETF (Symbol: VT) where we have detected an approximate $472.5 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 281,760,612 to 286,806,051). For a complete list of holdings, visit the VT Holdings page » The chart below shows the one year price performance of VT, versus its 200 day moving average: Looking at the chart above, VT's low point in its 52 week range is $76.80 per share, with $104.95 as the 52 week high point — that compares with a last trade of $93.31. | Among the largest underlying components of VT, in trading today Pfizer Inc (Symbol: PFE) is up about 0.6%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total World Stock ETF (Symbol: VT) where we have detected an approximate $472.5 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 281,760,612 to 286,806,051). For a complete list of holdings, visit the VT Holdings page » The chart below shows the one year price performance of VT, versus its 200 day moving average: Looking at the chart above, VT's low point in its 52 week range is $76.80 per share, with $104.95 as the 52 week high point — that compares with a last trade of $93.31. |
31191.0 | 2023-02-08 00:00:00 UTC | 3 MedTech Stocks Likely to Beat Estimates This Earnings Season | ABT | https://www.nasdaq.com/articles/3-medtech-stocks-likely-to-beat-estimates-this-earnings-season | nan | nan | So far, the fourth-quarter reporting cycle has displayed a year-over-year improvement for the MedTech companies within the broader Medical sector. The handful of MedTech stocks that have released their earnings so far showed market share gain within their base businesses through the months of the fourth quarter compared with 2021, following three years of COVID-induced debacle. Amid the ongoing macroeconomic headwind, this was solely due to the reduction in the severity of COVID-19 despite the emergence of new virus variants in limited geographies.
Even if we consider the performance on a sequential basis, the Q4 performance of the majority of the companies is likely to have improved. In this regard we note that, in the last-reported third quarter, the MedTech players witnessed rising raw material costs and other expense pressure, thanks to the global surge in the inflationary situation. Added to this, staffing shortages and supply-chain hazards severely dampened the growth process. Although market watchers expected a similar or a graver macroeconomic situation to hit the fourth-quarter performance of the sector hard, the sequentially better performance so far, in a way, is a breather for investors.
Here we talk about three stocks, Exact Sciences Corporation EXAS, Medtronic plc MDT and Integra LifeSciences IART that are expected to beat earnings estimates in the ongoing reporting cycle.
Two Major Q4 Trends
The Q4 reporting cycle depicted a sequential improvement in base sales volumes. This was attributed to a significant reduction in COVID-led severity globally. There has been a significant rebound in non-COVID and elective legacy businesses of the MedTech companies. Also, the fourth-quarter results of the diagnostic testing companies are expected to reflect a sequential rise in testing demand, thanks to rising new cases in selected geographies.
However, a contrasting trend is also evident. Considering the deteriorating trade situation, with the global inflationary pressure leading to an extremely tighter situation related to raw material and labor cost as well as freight charges, we expect fourth-quarter results to be disappointing in comparison to the year-ago period. In this regard, IMF, during the fourth quarter provided its World Economic Outlook Update. There it noted thata tentative recovery in 2021 was followed by increasingly gloomy developments in 2022. IMF specifically addressed the ongoing cost of living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic, all of which have been weighing heavily on the MedTech sector’s business performance.
The IMF update noted that global growth is expected to slow down from 6% in 2021 to 3.2% in 2022. If we exclude the global financial crisis and pandemic phase, this marks the weakest growth profile since 2001. Accordingly, industry players are expected to have collectively faced a more severe setback in terms of logistical challenges and increasing unit cost in the fourth quarter, resulting in corporate profitability cuts.
Q4 Scorecard Thus Far
Per the latest Earnings Preview, 28.6% of the companies in the broader Medical sector, constituting nearly 51.2% of the sector’s market capitalization, have already reported earnings. Of these, 81.3% beat in terms of earnings while 62.5% beat on revenues. Earnings increased 3.6% year over year on 7.6% higher revenues. Overall, fourth-quarter earnings for the Medical sector are expected to decline 9% despite a 4.3% sales increase.
Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate.
In Q4, Abbott’s Established Pharmaceuticals sales improved 7.9% on an organic basis, backed by strong growth in several geographies, including India, China, Brazil and Mexico, and across several therapeutic areas, including cardiometabolic, women's health and central nervous system/pain management. Diabetes Care reported organic growth of 17.4% year over year, led by FreeStyle Libre, which contributed $1.1 billion of revenues in the reported quarter. Structural Heart sales rose 13% and Heart Failure sales improved 5.9% year over year organically.
However, rising costs and expenses in the face of record inflationary pressure put huge pressure on margins for the company.
Quest Diagnostics’ legacy base business (excludes COVID-19 testing) revenues were up 6.3% year over year. However, COVID-19 testing revenues nosedived 74.6% in the quarter.
However, pressure on volume, owing to a difficult macroeconomic situation and pricing, constitutes the primary risk for Quest Diagnostics. Total volume, measured by the number of requisitions, was down 11.2% year over year in the fourth quarter.
Zacks Methodology
Given the high degree of diversity in the Medtech industry, finding the right stocks with the potential to beat estimates might be quite a daunting task.
However, our proprietary Zacks methodology makes this fairly simple.
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with this combination, the chances of an earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here we present three MedTech stocks that are expected to beat earnings estimates in this reporting cycle.
Exact Sciences: Exact Sciences’ Screening segment’s fourth-quarter performance is expected to have benefited from a continued increase in Cologuard volume. Per the last-reported quarter'searnings call roughly 292,000 healthcare providers ordered Cologuard since its launch, with 10,000 new orders received in the third quarter. Moreover, the company added 65,000 new ordering healthcare providers, which is expected to have benefited fourth-quarter performance.(Read more: Exact Sciences to Post Q4 Earnings: What's in Store?)
Exact Sciences’ Earnings ESP of +23.64% and a Zacks Rank #2 raise the possibility of an earnings surprise in the to-be-reported quarter.
Exact Sciences is slated to release results for the fourth quarter of fiscal 2022 on Feb 21.
Exact Sciences Corporation Price and EPS Surprise
Exact Sciences Corporation price-eps-surprise | Exact Sciences Corporation Quote
Medtronic: Medtronic has been witnessing an adverse trend of procedure volume across its core business over the past few quarters, impacted by the choppy macroeconomic scenario globally in the form of supply chain disruption, a severe shortage of health professional labor and a record level of inflationary pressure. The full impact of inflation with increased freight expense is expected to have been realized in Q3 of fiscal 2023. (Read more: What's in the Cards for Medtronic in Q3 Earnings?)
Medtronic is scheduled to release third-quarter fiscal 2023 results on Feb 21.
Medtronic has an Earnings ESP of +1.47% and a Zacks Rank #3.
Medtronic PLC Price and EPS Surprise
Medtronic PLC price-eps-surprise | Medtronic PLC Quote
Integra LifeSciences: Integra LifeSciences is expected to have seen healthy demand for its industry-leading products within Codman Specialty Surgical (CSS). The segment is expected to have benefited from the growing market acceptance of the company’s global neurosurgery line-ups, including CSS management and neuromonitoring. Within CSS management, Integra has been experiencing growth banking on strong market adoption of programmable valves and advanced energy (CUSA Capital and related disposables). Neuromonitoring sales are expected to have gained traction too on new product launches.
Integra LifeSciences is scheduled to release fourth-quarter 2022 results on Feb 22.
Integra LifeSciences has an Earnings ESP of +3.77% and a Zacks Rank #3.
Integra LifeSciences Holdings Corporation Price and EPS Surprise
Integra LifeSciences Holdings Corporation price-eps-surprise | Integra LifeSciences Holdings Corporation Quote
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report To read this article on Zacks.com click here. Here we talk about three stocks, Exact Sciences Corporation EXAS, Medtronic plc MDT and Integra LifeSciences IART that are expected to beat earnings estimates in the ongoing reporting cycle. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Medtronic PLC Price and EPS Surprise Medtronic PLC price-eps-surprise | Medtronic PLC Quote Integra LifeSciences: Integra LifeSciences is expected to have seen healthy demand for its industry-leading products within Codman Specialty Surgical (CSS). | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Exact Sciences Corporation Price and EPS Surprise Exact Sciences Corporation price-eps-surprise | Exact Sciences Corporation Quote Medtronic: Medtronic has been witnessing an adverse trend of procedure volume across its core business over the past few quarters, impacted by the choppy macroeconomic scenario globally in the form of supply chain disruption, a severe shortage of health professional labor and a record level of inflationary pressure. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report To read this article on Zacks.com click here. Here we talk about three stocks, Exact Sciences Corporation EXAS, Medtronic plc MDT and Integra LifeSciences IART that are expected to beat earnings estimates in the ongoing reporting cycle. |
31192.0 | 2023-02-07 00:00:00 UTC | Baby Formula Blues Hit Abbott Laboratories Stock Hard in 2022. Can It Rebound in 2023? | ABT | https://www.nasdaq.com/articles/baby-formula-blues-hit-abbott-laboratories-stock-hard-in-2022.-can-it-rebound-in-2023 | nan | nan | Abbott Laboratories (NYSE: ABT) has generally been a good investment to hold over the years. Its business is diverse. And the company not only pays a dividend but also has a terrific track record of increasing its payouts for 50-plus years. But last year was a tough one for the company as, in addition to unfavorable foreign exchange rates, manufacturing problems (e.g., contamination issues) with its baby formula products led to declines in Abbott's top line. And according to The Wall Street Journal, a criminal investigation is ongoing that relates to last year's recalls.
Is Abbott a bad-news buy that could turn things around in 2023, or has this once-safe healthcare stock become too risky of an investment to be holding right now?
The company's sales grew by just over 1% last year
Last month, Abbott reported its fourth-quarter and year-end results for 2022. And for the full year, revenue of $43.7 billion rose by just 1.3% from the previous year. There wasn't a lot of growth to show for, as its medical device business reported just 2.2% revenue growth. It was weighed down by foreign exchange as its growth rate jumps to 8.1% organically when factoring out the impact of currency.
Meanwhile, Abbott's diagnostics revenue for the year rose by 6%, which is impressive when you consider that during the last three months of 2022 it declined by more than 26% due to a drop in COVID-19 testing. Overall, it wasn't an impressive year for Abbott by any stretch.
Where is the growth going to come from?
The challenge I see right now is determining where the growth will come from for Abbott. Sales from its nutrition business fell 10% last year. And with contamination issues last year leading to a recall of baby formula products, Abbott may have a hard time winning over customers' trust. There's also the decline in coronavirus testing that, unless there's a resurgence in cases, isn't coming back. Plus, the uncertainty around the economy and the U.S. dollar could mean foreign exchange also plays a big role in 2023's numbers.
The saving grace may be in the medical device business, which is one of Abbott's largest segments. It didn't perform well last year, but COVID-19 restrictions and lockdowns in China negatively impacted its operations. And now that China has loosened those restrictions, that should help improve Abbott's numbers. Another positive for the company is that the U.S. Food and Drug Administration cleared its newest glucose monitoring system, the FreeStyle Libre 3 system, last year. Revenue from its diabetes devices rose 10% in 2022, and that momentum could continue this year.
Abbott has some growth opportunities this year that could help build some momentum, but whether it's enough to offset the challenges in the nutrition and diagnostics areas of its business is the big question.
Could the diversification and dividend income attract investors?
Last year was the first time since 2016 that Abbott's stock didn't rise in value. It has normally been a relatively safe investment to hold as its diversification has been a strength. With pharmaceuticals, medical devices, diagnostics, and nutrition all contributing to the top line, the company hasn't been dependent on just a single area of its business. The problem is that in 2022 multiple segments took a hit.
I wouldn't expect a repeat performance in 2023 as Abbott will be going up against some soft comparables from last year, and that should help when it reports earnings. Then there's also the dividend, which with a payout ratio of around 50% is incredibly safe, even if Abbott doesn't have a much stronger bottom line in 2023 (earnings declined by 2% last year).
But with a yield of 1.8%, which is only marginally higher than the 1.7% investors can get with the average S&P 500 stock, there isn't a huge incentive to buy Abbott's stock for its dividend right now -- certainly not given the challenges the business faces this year.
Is the stock a good buy for 2023?
The consensus price target for Abbott's stock is around $126, which represents an upside of around just 12% from where it is now.
While I don't think Abbott's stock will do as badly as it did in 2022, I'm not expecting that it will outperform the markets this year. If the bear market ends, investors are likely to pile into beaten-down growth stocks, which will possess much more upside. Although Abbott offers a dividend, it's an underwhelming one. And when you throw in the risk and uncertainty surrounding its nutrition and diagnostics segments, even the usual safety that comes with owning the stock may not be there anymore.
Ultimately, there just isn't a compelling enough of a reason to invest in the stock, which is why I don't expect 2023 to be a much better year for Abbott's stock.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) has generally been a good investment to hold over the years. But last year was a tough one for the company as, in addition to unfavorable foreign exchange rates, manufacturing problems (e.g., contamination issues) with its baby formula products led to declines in Abbott's top line. And with contamination issues last year leading to a recall of baby formula products, Abbott may have a hard time winning over customers' trust. | Abbott Laboratories (NYSE: ABT) has generally been a good investment to hold over the years. But last year was a tough one for the company as, in addition to unfavorable foreign exchange rates, manufacturing problems (e.g., contamination issues) with its baby formula products led to declines in Abbott's top line. There wasn't a lot of growth to show for, as its medical device business reported just 2.2% revenue growth. | Abbott Laboratories (NYSE: ABT) has generally been a good investment to hold over the years. Last year was the first time since 2016 that Abbott's stock didn't rise in value. But with a yield of 1.8%, which is only marginally higher than the 1.7% investors can get with the average S&P 500 stock, there isn't a huge incentive to buy Abbott's stock for its dividend right now -- certainly not given the challenges the business faces this year. | Abbott Laboratories (NYSE: ABT) has generally been a good investment to hold over the years. There wasn't a lot of growth to show for, as its medical device business reported just 2.2% revenue growth. Meanwhile, Abbott's diagnostics revenue for the year rose by 6%, which is impressive when you consider that during the last three months of 2022 it declined by more than 26% due to a drop in COVID-19 testing. |
31193.0 | 2023-02-07 00:00:00 UTC | Is This Dividend King a Buy for Income Investors? | ABT | https://www.nasdaq.com/articles/is-this-dividend-king-a-buy-for-income-investors | nan | nan | Last year was a much-needed reminder that just as there will be plenty of winning years in the stock market, there will also be a year of losses (or sometimes even two or three) sandwiched in between.
But that's what makes high-quality dividend growth stocks so appealing. No matter which way the market goes, the payouts of companies with decades of dividend growth behind them tend to go in one direction: up.
Abbott Laboratories' (NYSE: ABT) 50-year dividend growth streak makes it one of just 43 Dividend Kings. But should income-oriented investors buy the healthcare stock now? Let's assess its fundamentals and valuation to see.
A difficult quarter, a promising outlook
With 113,000 employees and a presence in more than 160 countries, Abbott is among the largest healthcare companies in the world. Its diversified product line includes FreeStyle Libre continuous glucose monitors, Glucerna shakes and bars for blood sugar management, BinaxNOW rapid COVID tests, and dozens of generic medicines.
Sales dipped 12% year over year to $10.1 billion in its fourth quarter, ended Dec. 31, due to declines in the diagnostics and nutrition segments.
A significant decrease in demand for its coronavirus rapid tests resulted in a 26.1% plunge in diagnostics revenue to $3.3 billion for the quarter. With baby formula production resuming at its Michigan plant since last summer, demand is just starting to recover. But not before nutrition sales dropped 11.1% over the year-ago period to $1.8 billion during the quarter.
Revenue was relatively flat in the medical devices and established-pharmaceuticals segments (the latter of which sells generic medicines in developing countries), which wasn't enough to offset declines in the other two segments.
Adjusted diluted earnings per share (EPS) plummeted 22% year over year to $1.03 in the fourth quarter. Operating expenses dropped more slowly than revenue did, so adjusted net margin contracted 270 basis points over the year-ago period to 17.9%.
A 1.6% decrease in Abbott's shares outstanding wasn't enough to offset the hit to profitability, and the bottom line fell faster than the top line during the quarter.
It was an uncharacteristically difficult quarter to close out 2022. But with $2.9 billion invested in research and development for the year and more product launches on the way, the future still looks bright. That's why analysts anticipate that Abbott will increase adjusted diluted EPS by 8.3% annually through the next five years.
A dividend with robust growth potential
Abbott's 1.8% dividend yield is moderately higher than the S&P 500 index's 1.6%. But payout increases in the medium term should be right around the most-recent hike of 8.5% declared last December.
The company's dividend payout ratio is expected to be about 46% in 2023, balancing shareholder rewards with the capital necessary to drive profits steadily higher.
Data by YCharts.
The valuation makes it a buy
In a sense, Abbott has become a victim of the success of its own COVID rapid tests in recent years as retreating demand has weighed on its revenue. But with an innovative culture, the company is almost sure to bounce back.
Its trailing-12-month (TTM) dividend yield of 1.8% is in line with the 10-year median yield, making the stock a buy for dividend growth investors at the current $112 price.
Moreover, Abbott's forward price-to-earnings (P/E) ratio of 23.1 is just below the medical devices industry average forward P/E ratio of 24.7. For a Dividend King such as Abbott with solid fundamentals, any discount to peers is worth buying in my opinion.
10 stocks we like better than Abbott Laboratories
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Kody Kester has positions in Abbott Laboratories. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories' (NYSE: ABT) 50-year dividend growth streak makes it one of just 43 Dividend Kings. Its diversified product line includes FreeStyle Libre continuous glucose monitors, Glucerna shakes and bars for blood sugar management, BinaxNOW rapid COVID tests, and dozens of generic medicines. Operating expenses dropped more slowly than revenue did, so adjusted net margin contracted 270 basis points over the year-ago period to 17.9%. | Abbott Laboratories' (NYSE: ABT) 50-year dividend growth streak makes it one of just 43 Dividend Kings. Sales dipped 12% year over year to $10.1 billion in its fourth quarter, ended Dec. 31, due to declines in the diagnostics and nutrition segments. Adjusted diluted earnings per share (EPS) plummeted 22% year over year to $1.03 in the fourth quarter. | Abbott Laboratories' (NYSE: ABT) 50-year dividend growth streak makes it one of just 43 Dividend Kings. The valuation makes it a buy In a sense, Abbott has become a victim of the success of its own COVID rapid tests in recent years as retreating demand has weighed on its revenue. Its trailing-12-month (TTM) dividend yield of 1.8% is in line with the 10-year median yield, making the stock a buy for dividend growth investors at the current $112 price. | Abbott Laboratories' (NYSE: ABT) 50-year dividend growth streak makes it one of just 43 Dividend Kings. Sales dipped 12% year over year to $10.1 billion in its fourth quarter, ended Dec. 31, due to declines in the diagnostics and nutrition segments. Its trailing-12-month (TTM) dividend yield of 1.8% is in line with the 10-year median yield, making the stock a buy for dividend growth investors at the current $112 price. |
31194.0 | 2023-02-06 00:00:00 UTC | BlackRock Increases Position in Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/blackrock-increases-position-in-abbott-laboratories-abt | nan | nan | Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 139.53MM shares of Abbott Laboratories (ABT). This represents 8.0% of the company.
In their previous filing dated February 1, 2022 they reported 137.16MM shares and 7.80% of the company, an increase in shares of 1.73% and an increase in total ownership of 0.20% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 9.29% Upside
As of February 5, 2023, the average one-year price target for Abbott Laboratories is $122.18. The forecasts range from a low of $92.92 to a high of $151.20. The average price target represents an increase of 9.29% from its latest reported closing price of $111.79.
The projected annual revenue for Abbott Laboratories is $39,830MM, a decrease of 8.76%. The projected annual EPS is $4.45, a decrease of 0.34%.
Fund Sentiment
There are 3852 funds or institutions reporting positions in Abbott Laboratories. This is an increase of 26 owner(s) or 0.68%.
Average portfolio weight of all funds dedicated to US:ABT is 0.6037%, a decrease of 3.0152%. Total shares owned by institutions increased in the last three months by 0.13% to 1,512,352K shares.
What are large shareholders doing?
Capital Research Global Investors holds 78,806,814 shares representing 4.52% ownership of the company. In it's prior filing, the firm reported owning 80,097,328 shares, representing a decrease of 1.64%. The firm decreased its portfolio allocation in ABT by 7.58% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 52,252,196 shares representing 3.00% ownership of the company. In it's prior filing, the firm reported owning 51,559,839 shares, representing an increase of 1.33%. The firm decreased its portfolio allocation in ABT by 5.92% over the last quarter.
Capital International Investors holds 52,232,376 shares representing 3.00% ownership of the company. In it's prior filing, the firm reported owning 50,520,586 shares, representing an increase of 3.28%. The firm decreased its portfolio allocation in ABT by 1.26% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 39,697,796 shares representing 2.28% ownership of the company. In it's prior filing, the firm reported owning 38,755,172 shares, representing an increase of 2.37%. The firm decreased its portfolio allocation in ABT by 5.67% over the last quarter.
Geode Capital Management holds 30,060,816 shares representing 1.72% ownership of the company. In it's prior filing, the firm reported owning 29,407,281 shares, representing an increase of 2.17%. The firm decreased its portfolio allocation in ABT by 5.66% over the last quarter.
Abbott Laboratories Declares $0.51 Dividend
Abbott Laboratories said on December 9, 2022 that its board of directors declared a regular quarterly dividend of $0.51 per share ($2.04 annualized). Shareholders of record as of January 12, 2023 will receive the payment on February 15, 2023. Previously, the company paid $0.47 per share.
At the current share price of $111.79 / share, the stock's dividend yield is 1.82%. Looking back five years and taking a sample every week, the average dividend yield has been 1.61%, the lowest has been 1.26%, and the highest has been 2.29%. The standard deviation of yields is 0.17 (n=237).
The current dividend yield is 1.25 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.51. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.
Abbott Laboratories Background Information
(This description is provided by the company.)
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Its portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 109,000 colleagues serve people in more than 160 countries.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 139.53MM shares of Abbott Laboratories (ABT). Average portfolio weight of all funds dedicated to US:ABT is 0.6037%, a decrease of 3.0152%. The firm decreased its portfolio allocation in ABT by 7.58% over the last quarter. | Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 139.53MM shares of Abbott Laboratories (ABT). Average portfolio weight of all funds dedicated to US:ABT is 0.6037%, a decrease of 3.0152%. The firm decreased its portfolio allocation in ABT by 7.58% over the last quarter. | Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 139.53MM shares of Abbott Laboratories (ABT). Average portfolio weight of all funds dedicated to US:ABT is 0.6037%, a decrease of 3.0152%. The firm decreased its portfolio allocation in ABT by 7.58% over the last quarter. | Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 139.53MM shares of Abbott Laboratories (ABT). Average portfolio weight of all funds dedicated to US:ABT is 0.6037%, a decrease of 3.0152%. The firm decreased its portfolio allocation in ABT by 7.58% over the last quarter. |
31195.0 | 2023-02-06 00:00:00 UTC | Ensign Group (ENSG) Shares Down 2% Since Q4 Earnings Release | ABT | https://www.nasdaq.com/articles/ensign-group-ensg-shares-down-2-since-q4-earnings-release | nan | nan | Shares of The Ensign Group, Inc. ENSG have lost 1.7% since it reported fourth-quarter 2022 results on Feb 2. Despite suffering from an escalating expense level, the quarterly results received an impetus from strong segmental contributions and consistent improvement in occupancies. An optimistic 2023 outlook for revenue and earnings per share (EPS) also remains noteworthy.
Q4 Update
Ensign Group reported fourth-quarter 2022 adjusted operating earnings of $1.10 per share, which matched the Zacks Consensus Estimate and came higher than our estimate of $1.09. The bottom line advanced 13.4% year over year.
Operating revenues improved 16.9% year over year to $810 million in the quarter under review. The growth resulted from higher skilled services and rental revenues. The top line outpaced the consensus mark by 1.2% and our estimate of $796.6 million.
Adjusted net income came in at $62.7 million, which grew 14.1% year over year.
Same-store occupancy rose 2.9% year over year while transitioning occupancy increased 4.3% year over year.
Total expenses escalated 17% year over year to $734.3 million in the fourth quarter due to increased cost of services, rent-cost of services, general and administrative expenses, and depreciation and amortization. The metric was higher than our estimate of $712.4 million.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote
Segmental Update
Skilled Services: The segment’s revenues climbed 16.5% year over year to $777.6 million, higher than our estimate of $770.9 million. Segmental income of $106.5 million advanced 6.2% year over year.
Skilled nursing and campus operations of the segment totaled 234 and 26, respectively, at the fourth-quarter end.
Standard Bearer: Revenues of $19.4 million rose 26% year over year in the quarter under review but fell short of our estimate of $20.4 million. Segmental income fell 13.5% year over year to $7.2 million.
Funds from Operations (FFO) came in at $13 million, which dipped 0.6% year over year.
Financial Update (as of Dec 31, 2022)
Ensign Group exited the fourth quarter with cash and cash equivalents of $316.3 million, which increased 20.6% from the figure in 2021 end. ENSG had an available capacity of $593.3 million under its credit facility at the end of the quarter.
Total assets of $3,452 million rose 21.1% from the 2021-end level.
Long-term debt less current maturities amounted to $149.3 million, which declined 2.4% from the figure as of Dec 31, 2021.
During 2022, net cash provided by operating activities totaled $272.5 million, down 1.2% from the 2021-end level.
Capital-Deployment Update
Ensign Group did not buy back shares in the fourth quarter as part of the share repurchase program authorized by management in July 2022.
In December 2022, management approved a quarterly dividend hike and the increased dividend stood at 5.75 cents per share.
2023 Guidance
Revenues are projected to lie between $3.55 billion and $3.62 billion this year, the midpoint of which suggests 18.3% growth from the 2022 figure of $3.03 billion.
EPS is anticipated within $4.60-$4.74 in 2023, the midpoint of the guidance indicates an improvement of 12.8% from the 2022 figure of $4.14.
The weighted average common shares outstanding is estimated at roughly 57.7 million.
Zacks Rank
Ensign Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported fourth-quarter results so far, the bottom lines of Abbott Laboratories ABT, Cigna Corporation CI and Humana Inc. HUM beat the Zacks Consensus Estimate.
Abbott Laboratories reported fourth-quarter 2022 adjusted earnings of $1.03 per share, which exceeded the Zacks Consensus Estimate by 14.4%. The adjusted figure however declined from the prior-year quarter’s levels by 22%. Fourth-quarter worldwide sales of $10.09 billion were down 12% year over year on a reported basis. The top line however exceeded the Zacks Consensus Estimate by 6.4%. ABT reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. The adjusted operating margin, too, contracted 738 bps to 17.8%.
Cigna’s fourth-quarter 2022 adjusted earnings of $4.96 per share outpaced the Zacks Consensus Estimate by 2.5%. The bottom line advanced 4% year over year. Adjusted revenues inched up 0.1% year over year to $45,743 million. The top line beat the consensus mark by a whisker. CI’s medical customer base came in at 18 million, which grew 5.4% year over year as of Dec 31, 2022.
Humana reported fourth-quarter 2022 adjusted earnings per share of $1.62, beating the Zacks Consensus Estimate by 11%. The bottom line climbed 30.6% year over year. Revenues of HUM amounted to $22,439 million, which rose 6.6% year over year in the quarter under review. Yet, the top line fell short of the consensus mark by a whisker. Total premiums of HUM grew 7.3% year over year to $21,275 million.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Medical Sector Releases Of the Medical sector players that have reported fourth-quarter results so far, the bottom lines of Abbott Laboratories ABT, Cigna Corporation CI and Humana Inc. HUM beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Corporation (CI) : Free Stock Analysis Report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report To read this article on Zacks.com click here. | Other Medical Sector Releases Of the Medical sector players that have reported fourth-quarter results so far, the bottom lines of Abbott Laboratories ABT, Cigna Corporation CI and Humana Inc. HUM beat the Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Corporation (CI) : Free Stock Analysis Report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Corporation (CI) : Free Stock Analysis Report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Medical Sector Releases Of the Medical sector players that have reported fourth-quarter results so far, the bottom lines of Abbott Laboratories ABT, Cigna Corporation CI and Humana Inc. HUM beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. | ABT reported an adjusted operating profit of $1.80 billion for the quarter under review, down 37.8% year over year. Other Medical Sector Releases Of the Medical sector players that have reported fourth-quarter results so far, the bottom lines of Abbott Laboratories ABT, Cigna Corporation CI and Humana Inc. HUM beat the Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Corporation (CI) : Free Stock Analysis Report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31196.0 | 2023-02-06 00:00:00 UTC | Validea Daily Guru Fundamental Report for ABT - 2/6/2023 | ABT | https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-abt-2-6-2023 | nan | nan | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the twelve guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the twelve guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Of the twelve guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). | Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the twelve guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. | Below is Validea's daily guru fundamental report for ABBOTT LABORATORIES (ABT). Of the twelve guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. |
31197.0 | 2023-02-04 00:00:00 UTC | 3 Unstoppable Dividend Stocks to Buy in February | ABT | https://www.nasdaq.com/articles/3-unstoppable-dividend-stocks-to-buy-in-february | nan | nan | Will the stock market rise or fall in 2023? Income investors can win either way. Any time is a good time to buy solid dividend stocks.
We asked three Motley Fool contributors to identify unstoppable dividend stocks to buy in February. Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ).
Even a bad year in 2022 can't stop Abbott's dividend hikes
David Jagielski (Abbott Laboratories): One dividend stock that should be attractive to long-term investors is Abbott Laboratories. The company's versatility and broad business make it a strong dividend investment to own. Abbott's most recent quarterly results are an excellent example of that.
For the period ending Dec. 31, 2022, the healthcare company's quarterly net sales totaled $10 billion and were down 12%. And that was with some significant declines in COVID-19 testing as diagnostic revenue was down 26% from the prior-year period, while nutritional revenue fell by 11%. But better performances in Abbott's medical-device and pharmaceutical segments helped offset some of those lackluster numbers.
Abbott's diluted earnings per share (EPS) plunged 47% year over year to $0.59. But when factoring out one-time items, the company's adjusted per-share profit was $1.03, suggesting there was plenty of noise on Abbott's most recent financials. Despite manufacturing disruptions impacting its baby formula sales, costs related to recalls, restructuring charges, and other nonrecurring expenses, the company is still coming off a profitable quarter. The great thing for dividend investors is that despite so much adversity, Abbott can still post a strong profit margin of over 10%.
Confident in its financials, the company also increased its quarterly dividend last year by 8.5%. That means Abbott has now raised its dividend for 51 straight years. Although its yield may look underwhelming at just 1.9%, for long-term investors, it's likely that the payouts will continue growing in the years ahead.
The past year was a brutal one for Abbott and yet the company's full-year EPS was still far above what it is paying out annually in dividends per share right now ($3.91 vs $2.04). The company's payout ratio is relatively low. With a robust and diversified business, Abbott makes for an unstoppable income investment to buy and hold for the long haul.
Five decades of dividend increases and counting
Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. And thus, AbbVie entered year 51 in its streak of consecutive years of dividend hikes when including its time as a division of the company previously mentioned -- Abbott. This stellar record makes AbbVie a Dividend King. Investors have every reason to think its future could look much like its past.
AbbVie markets a long list of medicines in various therapeutic areas. The company generates consistent revenue and earnings thanks to its lineup. With a rich pipeline that boasts dozens of products, AbbVie routinely adds brand-new products or earns label expansions for existing ones.
It is true that the company now faces the impact of the loss of exclusivity of its longtime best-selling product, rheumatoid arthritis medicine Humira. But AbbVie planned ahead and seems more than capable of eventually putting this issue in the rearview mirror.
The company's other immunology products, Skyrizi and Rinvoq, its Botox franchise, migraine treatment Qulipta, and cancer medicine Venclexta will help smooth out the losses caused by biosimilar competition to Humira. And although AbbVie expects a relatively short period of declining revenue, growth should pick up once its business adjusts.
In the meantime, AbbVie will likely continue to reward shareholders with dividend increases. The company has prioritized dividend payments since it became a stand-alone company in 2013, increasing its payouts by 270% since then. AbbVie won't risk losing its status as a Dividend King. That's why AbbVie remains a top pick for dividend investors to buy this month and beyond.
Add another king to your hand
Keith Speights (Johnson & Johnson): Like Abbott and AbbVie, Johnson & Johnson belongs to the elite group of stocks known as Dividend Kings. The healthcare giant has increased its dividend for an impressive 60 consecutive years.
After beating the S&P 500 last year, Johnson & Johnson is off to a relatively bad start in 2023. The company's shares have tumbled around 6% despite reporting better-than-expected fourth-quarter results in late January.
I think, though, that J&J has what it takes to rebound over the near term. Year-over-year comparisons due to declining sales of the company's COVID-19 vaccine should become less problematic as time goes by. Johnson & Johnson's business could also be helped if inflation moderates further.
The biggest milestone to look forward to this year, however, is J&J's upcoming spin-off of its consumer health unit. This divestiture will leave the company with its faster-growing pharmaceutical and medtech businesses.
Over the long term, I expect that Johnson & Johnson will continue to be what it's been for decades -- a reliable winner. Look for the company to keep its streak of dividend increases going for years to come as well.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Despite manufacturing disruptions impacting its baby formula sales, costs related to recalls, restructuring charges, and other nonrecurring expenses, the company is still coming off a profitable quarter. It is true that the company now faces the impact of the loss of exclusivity of its longtime best-selling product, rheumatoid arthritis medicine Humira. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Even a bad year in 2022 can't stop Abbott's dividend hikes David Jagielski (Abbott Laboratories): One dividend stock that should be attractive to long-term investors is Abbott Laboratories. Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Even a bad year in 2022 can't stop Abbott's dividend hikes David Jagielski (Abbott Laboratories): One dividend stock that should be attractive to long-term investors is Abbott Laboratories. Five decades of dividend increases and counting Prosper Junior Bakiny (AbbVie): In October, pharmaceutical giant AbbVie announced a 5% dividend increase that would kick in during the first quarter of this year, pushing its dividend yield to over 4%. | Here's why they chose Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). Confident in its financials, the company also increased its quarterly dividend last year by 8.5%. Over the long term, I expect that Johnson & Johnson will continue to be what it's been for decades -- a reliable winner. |
31198.0 | 2023-02-04 00:00:00 UTC | 2 Beaten-Down Stocks With Stable Dividends to Buy In 2023 | ABT | https://www.nasdaq.com/articles/2-beaten-down-stocks-with-stable-dividends-to-buy-in-2023 | nan | nan | Here is one thing that separates the best dividend stocks from the rest. Even when economic or market troubles hit, solid dividend-paying companies do not decrease or suspend their payouts. That's because they generally have stable businesses that can survive in any environment.
With the downturn that equity markets experienced last year, investors can now find such corporations in the discount bin. Two excellent examples are Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT). Both are solid dividend stocks with strong, long-term outlooks.
1. Abbott Laboratories
Abbott Labs encountered several problems last year that contributed to its poor performance. First, manufacturing of some of its infant formula products was disrupted due to safety-related issues at some of its facilities. Second, unfavorable currency exchange dynamics affected revenue growth like at many other corporations.
For the full fiscal 2022, Abbott Laboratories reported sales of $43.7 billion, up 1.3% year over year, or 6.4% in constant currency. The company's adjusted net income for the year came in at $9.5 billion, 1.1% higher than the previous fiscal year. Abbott won't deal with all the issues it encountered last year forever. The company restarted manufacturing at the infant formula facilities that halted production last year. Currency exchange rates should also stabilize eventually.
That's why investors should focus on the parts of Abbott's business that are performing well. For instance, the healthcare giant is an established innovator and continues developing new products. Just in January, the company received key approvals from the U.S. Food and Drug Administration, including that of the next-gen version of its device to treat severe aortic stenosis, the Navitor. Aortic stenosis is a potentially life-threatening condition that leads to reduced blood flow from the heart.
Also in January, Abbott's Proclaim XR SCS system earned a label expansion in treating diabetic peripheral neuropathy, a complication of diabetes. Abbott's diabetes care business is doing particularly well. It reported sales of $4.8 billion last year, an increase of 9.9% year over year, or 17.4% in constant currency.
Abbott's continuous glucose monitoring system, the FreeStyle Libre, continues to be the star of the show, racking up sales of $4.3 billion in 2022, 16% higher than the previous fiscal year. These businesses should see support from long-term trends, such as an aging population that is unfortunately more prone to heart-related problems such as aortic stenosis and an increase in diabetes.
The company is well-positioned to continue developing new products and delivering decent financial results. Abbott Laboratories has raised its dividends for 51 consecutive years (a period that includes several recessions), making it a member of the exclusive club of Dividend Kings. Given Abbott's track record and solid operations, there are likely many more years of dividend growth in the company's future.
2. Medtronic
Medtronic is also a longtime leader in the medical device field, with a vast array of products and a knack for innovation. But last year, it fell prey to economic problems such as inflation and supply chain disruptions that increased costs and materially affected its top and bottom lines. During its latest quarter -- the second quarter of its fiscal year 2023, ended on Oct. 28 -- the company's revenue decreased by 3% year over year to $7.6 billion.
On an organic basis, Medtronic's revenue increased by 2% compared to the year-ago period. On the bottom line, Medtronic's adjusted net income dropped by 4% year over year to $1.7 billion.
Despite its recent troubles, there are still good reasons to invest in Medtronic. First, once again, the economy will recover, and those problems that have affected the company will recede. Once inflation cools down (which has already started to happen), and supply chain issues wane, expect better results from Medtronic. The company also announced the spin-off of its patient monitoring and respiratory interventions businesses last year, which should lead to stronger revenue growth.
Furthermore, Medtronic still has plenty of opportunities ahead. Consider the robotic-assisted surgery (RAS) field, where the company is looking to carve out a niche. In December, it enrolled the first U.S. patient in a clinical trial for its Hugo RAS device; the company is working toward earning clearance in the country.
The Hugo, which is already approved in Europe, offers physicians the ability to perform minimally invasive surgeries, which come with several advantages compared to open surgeries. These benefits include less scarring, less bleeding, faster recovery times, and shorter hospital stays. This and other opportunities can allow Medtronic to rebound from a down year while still offering regular dividend hikes.
The company has raised its payouts for 45 consecutive years, so it's inching closer to Dividend King status and will likely join this club in a few years.
10 stocks we like better than Abbott Laboratories
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two excellent examples are Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT). Just in January, the company received key approvals from the U.S. Food and Drug Administration, including that of the next-gen version of its device to treat severe aortic stenosis, the Navitor. These businesses should see support from long-term trends, such as an aging population that is unfortunately more prone to heart-related problems such as aortic stenosis and an increase in diabetes. | Two excellent examples are Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT). For the full fiscal 2022, Abbott Laboratories reported sales of $43.7 billion, up 1.3% year over year, or 6.4% in constant currency. The company's adjusted net income for the year came in at $9.5 billion, 1.1% higher than the previous fiscal year. | Two excellent examples are Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT). For the full fiscal 2022, Abbott Laboratories reported sales of $43.7 billion, up 1.3% year over year, or 6.4% in constant currency. It reported sales of $4.8 billion last year, an increase of 9.9% year over year, or 17.4% in constant currency. | Two excellent examples are Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT). Second, unfavorable currency exchange dynamics affected revenue growth like at many other corporations. It reported sales of $4.8 billion last year, an increase of 9.9% year over year, or 17.4% in constant currency. |
31199.0 | 2023-02-01 00:00:00 UTC | 2 Top Dividend Growth Stocks to Buy in February | ABT | https://www.nasdaq.com/articles/2-top-dividend-growth-stocks-to-buy-in-february | nan | nan | Want to know the worst-kept secret on Wall Street? Stocks that pay growing dividends outperform ones that don't distribute profits, by a mile.
From 1973 through 2021, stocks that grew or initiated a dividend returned 10.7% annually on average. Stocks that didn't pay a dividend returned a paltry 4.8% over the same time frame, according to Hartford Funds and Ned Davis Research.
Now, just because a stock pays a dividend doesn't necessarily mean it can increase distributions at a satisfactory pace. These two stocks stand out because they have rapidly raised their payouts in recent years, and they appear poised to do it again.
Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate that offers a 1.9% dividend yield. Last December, the company declared its 51st consecutive annual dividend raise.
Despite a long history of annual dividend raises, this major healthcare company has been able to grow its payout a whopping 264% over the past decade.
Its diagnostics business grew by leaps and bounds in the early days of the pandemic thanks to soaring demand for COVID-19 tests. But rapidly subsiding demand for COVID testing caused Abbott's total revenue stream to contract in 2022.
If investors look past Abbott's short-term pandemic-related challenges, they'll see a handful of important new growth drivers that could more than make up the difference.
For example, the company's spinal cord stimulation device recently earned Food and Drug Administration (FDA) approval to treat painful diabetic nerve damage, a condition around half of diabetes patients experience within 25 years of developing the condition.
Earlier this month, Abbott also received FDA approval for its next-generation aortic valve replacement device, Navitor. Its share of the aortic valve market is just a tiny sliver compared to Edwards Lifesciences and Medtronic. But Navitor's recent approval and incoming clinical-trial data from an ongoing study could make it a major growth driver in the years ahead.
CVS Health
CVS Health (NYSE: CVS) is a healthcare conglomerate that offers a 2.8% yield at recent prices. The company has raised its payout an impressive 169% over the past decade, but it doesn't show up on many dividend growth screens because it paused payout raises from 2017 through 2021.
Dividend growth investors should know that CVS Health paused its payout to complete a $69 billion acquisition of Aetna, a major manager of health insurance benefits that collects monthly premiums from around 35 million people. CVS also owns a pharmacy benefits management business that has around 110 million plan members.
Rather than rely on relatively unpredictable retail operations, CVS Health has leveraged its enormous physical footprint to become a major player in the primary-care space. Pharmaceutical companies get a lot of attention for high prices, but savvy healthcare investors know that primary-care providers are responsible for a much larger portion of the roughly $4.3 trillion America spends on healthcare annually.
With roughly 1,100 medical clinics and over 9,000 retail pharmacies, CVS Health can provide many of the health benefits it also gets paid to manage. The planned acquisition of Signify Health for $8 billion will add a network of more than 10,000 clinicians across all 50 states to CVS Health's growing army of primary-care providers.
Providing healthcare benefits that it also gets paid to manage is an incredibly lucrative position to be in, as shown by CVS Health's performance following the Aetna acquisition. Over the past five years, the amount of free cash flow that its operations generate has quadrupled to $19.5 billion annually.
Over the past 12 months, CVS Heath met its dividend commitment using just 14.6% of the free cash flow it generated. That means the company can easily afford to make big payout bumps over the next several years. Investors who buy this stock in February and simply hold it have an excellent chance to come out ahead over the long run.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Edwards Lifesciences. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate that offers a 1.9% dividend yield. But Navitor's recent approval and incoming clinical-trial data from an ongoing study could make it a major growth driver in the years ahead. Rather than rely on relatively unpredictable retail operations, CVS Health has leveraged its enormous physical footprint to become a major player in the primary-care space. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate that offers a 1.9% dividend yield. CVS Health CVS Health (NYSE: CVS) is a healthcare conglomerate that offers a 2.8% yield at recent prices. The company has raised its payout an impressive 169% over the past decade, but it doesn't show up on many dividend growth screens because it paused payout raises from 2017 through 2021. Dividend growth investors should know that CVS Health paused its payout to complete a $69 billion acquisition of Aetna, a major manager of health insurance benefits that collects monthly premiums from around 35 million people. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate that offers a 1.9% dividend yield. CVS Health CVS Health (NYSE: CVS) is a healthcare conglomerate that offers a 2.8% yield at recent prices. The company has raised its payout an impressive 169% over the past decade, but it doesn't show up on many dividend growth screens because it paused payout raises from 2017 through 2021. Dividend growth investors should know that CVS Health paused its payout to complete a $69 billion acquisition of Aetna, a major manager of health insurance benefits that collects monthly premiums from around 35 million people. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate that offers a 1.9% dividend yield. Despite a long history of annual dividend raises, this major healthcare company has been able to grow its payout a whopping 264% over the past decade. The company has raised its payout an impressive 169% over the past decade, but it doesn't show up on many dividend growth screens because it paused payout raises from 2017 through 2021. Dividend growth investors should know that CVS Health paused its payout to complete a $69 billion acquisition of Aetna, a major manager of health insurance benefits that collects monthly premiums from around 35 million people. |
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