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31300.0 | 2022-12-09 00:00:00 UTC | 2 Supercharged Dividend Stocks to Buy in a Bear Market | ABT | https://www.nasdaq.com/articles/2-supercharged-dividend-stocks-to-buy-in-a-bear-market | nan | nan | Investing in dividend stocks can be a wonderful way to power up your returns and boost the amount of cash in your portfolio in a wide variety of market environments. However, with so many to pick from, finding the right dividend stocks for your portfolio that can produce sustained income and growth can be a challenge.
Here's a look at two top dividend stocks with some of the most illustrious histories of paying and raising their dividends on record.
1. Abbott Laboratories
With a company history spanning 130 years and counting, Abbott Laboratories (NYSE: ABT) is also one of a handful of stocks on the list of Dividend Kings. The company has not only paid out but also increased its dividend every single year for 50 years and counting.
And with a current yield of about 1.8%, its dividend falls right in line with that of the average stock trading on the S&P 500. Over the trailing decade alone, the company's dividend has risen by a whopping 236% and helped the stock deliver a total return of nearly 100% to investors in that same time frame.
The reason for Abbott's continued growth against a wide variety of economic backdrops comes down to its diverse portfolio of successful products and the general non-cyclical nature of its business. From continuous glucose monitoring devices (the company just completed the U.S. launch of its new FreeStyle Libre 3 system, featuring one of the smallest, thinnest wearable sensors on the market) to baby formula to nutritional formulas, these are the types of products that consumers require in any macro environment.
Although Abbott's top and bottom lines fell slightly in the most recent quarter -- primarily due to the impact of the strong U.S. dollar -- it still reported respective net sales and earnings of $10.4 billion and $1.4 billion for the three-month period, while also raising its full-year EPS guidance.
Looking back over the past decade, the company has grown its annual revenue by 126%, while its net income has risen by roughly 20% in that period. Income investors seeking a value-oriented business that can deliver stable returns to their portfolio through the years may want to consider a second look at Abbott Labs.
2. Hormel
Hormel (NYSE: HRL) also has a dividend history that rivals many of the most well-known income stocks, and a strong track record of profitability to boot. With a yield of 2.4%, Hormel beats out the average stock trading on the S&P 500. The company is also a Dividend King, having just announced its 57th consecutive annual dividend increase. Over the past decade, its dividend has increased by an incredible 224%, and the stock has delivered a total return of 268%.
Hormel Foods' family of brands -- which include names like Applegate, Skippy Peanut Butter, Planters, and Spam -- are sold in more than 80 countries globally. The company also controls the first or second market share spot in more than 40 categories across the diverse assortment of food products it sells.
In the company's fiscal 2022, it reported net sales of $12.5 billion and net income of about $1 billion, representing increases of 9% and 10% from fiscal 2021. It also generated cash flow from operations to the tune of $1.1 billion in the fiscal year, a 13% increase year over year. Over the trailing decade, Hormel Foods has delivered increases to its annual revenue and net income in the amount of 42% and 90%.
Even as investors tighten their belts with fears of a looming recession, they will still continue to buy necessary food staples, such as the ones that Hormel sells. Its leading market share across a wide range of food categories, combined with a robust track record of returns and dividend growth, create a compelling buying proposition for this stock.
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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 With a company history spanning 130 years and counting, Abbott Laboratories (NYSE: ABT) is also one of a handful of stocks on the list of Dividend Kings. The reason for Abbott's continued growth against a wide variety of economic backdrops comes down to its diverse portfolio of successful products and the general non-cyclical nature of its business. Hormel Foods' family of brands -- which include names like Applegate, Skippy Peanut Butter, Planters, and Spam -- are sold in more than 80 countries globally. | Abbott Laboratories With a company history spanning 130 years and counting, Abbott Laboratories (NYSE: ABT) is also one of a handful of stocks on the list of Dividend Kings. In the company's fiscal 2022, it reported net sales of $12.5 billion and net income of about $1 billion, representing increases of 9% and 10% from fiscal 2021. Over the trailing decade, Hormel Foods has delivered increases to its annual revenue and net income in the amount of 42% and 90%. | Abbott Laboratories With a company history spanning 130 years and counting, Abbott Laboratories (NYSE: ABT) is also one of a handful of stocks on the list of Dividend Kings. Its leading market share across a wide range of food categories, combined with a robust track record of returns and dividend growth, create a compelling buying proposition for this stock. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Rachel Warren has no position in any of the stocks mentioned. | Abbott Laboratories With a company history spanning 130 years and counting, Abbott Laboratories (NYSE: ABT) is also one of a handful of stocks on the list of Dividend Kings. Income investors seeking a value-oriented business that can deliver stable returns to their portfolio through the years may want to consider a second look at Abbott Labs. Over the trailing decade, Hormel Foods has delivered increases to its annual revenue and net income in the amount of 42% and 90%. |
31301.0 | 2022-12-08 00:00:00 UTC | Noteworthy ETF Outflows: XLV, ABT, DHR, BMY | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlv-abt-dhr-bmy | 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 $401.7 million dollar outflow -- that's a 0.9% decrease week over week (from 309,520,000 to 306,620,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1%, Danaher Corp (Symbol: DHR) is up about 1.4%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. 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 $139.61. 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.
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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 Abbott Laboratories (Symbol: ABT) is up about 1%, Danaher Corp (Symbol: DHR) is up about 1.4%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. 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 $401.7 million dollar outflow -- that's a 0.9% decrease week over week (from 309,520,000 to 306,620,000). 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 Abbott Laboratories (Symbol: ABT) is up about 1%, Danaher Corp (Symbol: DHR) is up about 1.4%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. 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 $139.61. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1%, Danaher Corp (Symbol: DHR) is up about 1.4%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. 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 $401.7 million dollar outflow -- that's a 0.9% decrease week over week (from 309,520,000 to 306,620,000). 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 $139.61. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1%, Danaher Corp (Symbol: DHR) is up about 1.4%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. 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 $401.7 million dollar outflow -- that's a 0.9% decrease week over week (from 309,520,000 to 306,620,000). 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 $139.61. |
31302.0 | 2022-12-07 00:00:00 UTC | Abbott (ABT) Gains As Market Dips: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-as-market-dips%3A-what-you-should-know-5 | nan | nan | Abbott (ABT) closed the most recent trading day at $104.81, moving +0.91% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had gained 4.24% over the past month, lagging the Medical sector's gain of 5.65% and the S&P 500's gain of 4.7% in that time.
Abbott will be looking to display strength as it nears its next earnings release. In that report, analysts expect Abbott to post earnings of $0.90 per share. This would mark a year-over-year decline of 31.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.47 billion, down 17.41% from the year-ago period.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $43.03 billion. These results would represent year-over-year changes of 0% and -0.1%, respectively.
Investors might also notice recent changes to analyst estimates for Abbott. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 19.94. For comparison, its industry has an average Forward P/E of 19.45, which means Abbott is trading at a premium to the group.
It is also worth noting that ABT currently has a PEG ratio of 3.92. 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 2.29 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 147, putting 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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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 $104.81, moving +0.91% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $43.03 billion. It is also worth noting that ABT currently has a PEG ratio of 3.92. | 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 $104.81, moving +0.91% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $43.03 billion. | Abbott (ABT) closed the most recent trading day at $104.81, moving +0.91% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $43.03 billion. It is also worth noting that ABT currently has a PEG ratio of 3.92. | Abbott (ABT) closed the most recent trading day at $104.81, moving +0.91% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $5.21 per share and revenue of $43.03 billion. It is also worth noting that ABT currently has a PEG ratio of 3.92. |
31303.0 | 2022-12-07 00:00:00 UTC | 2 Dividend Aristocrats to Buy for 2023 | ABT | https://www.nasdaq.com/articles/2-dividend-aristocrats-to-buy-for-2023 | nan | nan | Buying shares of a Dividend Aristocrat can be a good move whether you want some recurring dividend income or just a safe stock to buy and hold. These are businesses that have a great deal of stability and strong enough financials that they can justify making regular increases to their payouts.
Heading into next year, a couple of Aristocrats that look to be good investments are Abbott Laboratories (NYSE: ABT) and ExxonMobil (NYSE: XOM). Let's see why.
1. Abbott Laboratories
Healthcare giant Abbott Laboratories has a diverse business that generates over $1 billion in revenue every quarter from multiple segments, including medical devices, pharmaceuticals, diagnostics, and nutrition.
Through the first nine months of 2022, the company has reported positive year-over-year growth in all areas except nutrition, where manufacturing issues disrupted the production of certain baby formula products. Abbott has since restarted production and, assuming no interruptions happen again, next year should be a stronger one for that segment as well.
Overall, Abbott's year-to-date revenue of $33.6 billion is up 6.2% from the same period last year.
At 1.7%, Abbott pays a dividend that is in line with the S&P 500 average. But the company has also increased its payouts for 50 years in a row, making it not just an Aristocrat but a Dividend King. At $0.47, its current dividend is 77% higher than the $0.265 that the stock was paying five years ago. During that time, the company has increased its dividend at a compound annual rate of 12.1%.
For investors looking for a safe stock to buy and hold next year, Abbott Labs makes for an appealing buy. At 24 times earnings, it's trading only slightly higher than the average healthcare stock, which averages a multiple of 23.
2. ExxonMobil
Oil and gas producer ExxonMobil has been benefiting from high oil prices this year. West Texas Intermediate (WTI) is a key benchmark price for the industry; at around $80 per barrel, it has come down significantly from the more than $100/barrel it was at earlier this year (largely due to the Russian invasion of Ukraine). But investors shouldn't forget that oil prices are still at their highest levels since 2014.
This past Sunday, the Organization of Petroleum Exporting Countries agreed to continue cutting production by 2 million barrels/day in an effort to keep oil prices elevated and to combat slowing demand, especially in China where COVID lockdowns are weighing on the economy.
As a result, it seems probable that at the very least, oil prices could remain around their current levels in 2023. And that would be welcome news for ExxonMobil, which over the past three quarters has generated just under $43 billion in profits, three times the $14.2 billion it reported in the same period in 2021.
Exxon's 3.3% yield is higher than Abbott's and looks as safe as ever amid a high level of oil prices. Its $0.91 dividend has increased by 18% in five years, averaging a growth rate of 3.4% during that time. It's not a huge pace of growth, but if the price of oil remains stable, there could be greater increases over the next five years, especially if Exxon continues raking in some great profits.
At just nine times earnings, the stock looks like a cheap buy given the S&P 500 averages a multiple of 20. Investors are clearly discounting the stock, likely out of fear that oil prices could be volatile. But with OPEC planning for production cuts, that may not be the case, and that can make ExxonMobil one of the best oil dividend stocks to buy right now.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool 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. | Heading into next year, a couple of Aristocrats that look to be good investments are Abbott Laboratories (NYSE: ABT) and ExxonMobil (NYSE: XOM). West Texas Intermediate (WTI) is a key benchmark price for the industry; at around $80 per barrel, it has come down significantly from the more than $100/barrel it was at earlier this year (largely due to the Russian invasion of Ukraine). This past Sunday, the Organization of Petroleum Exporting Countries agreed to continue cutting production by 2 million barrels/day in an effort to keep oil prices elevated and to combat slowing demand, especially in China where COVID lockdowns are weighing on the economy. | Heading into next year, a couple of Aristocrats that look to be good investments are Abbott Laboratories (NYSE: ABT) and ExxonMobil (NYSE: XOM). Abbott Laboratories Healthcare giant Abbott Laboratories has a diverse business that generates over $1 billion in revenue every quarter from multiple segments, including medical devices, pharmaceuticals, diagnostics, and nutrition. For investors looking for a safe stock to buy and hold next year, Abbott Labs makes for an appealing buy. | Heading into next year, a couple of Aristocrats that look to be good investments are Abbott Laboratories (NYSE: ABT) and ExxonMobil (NYSE: XOM). Buying shares of a Dividend Aristocrat can be a good move whether you want some recurring dividend income or just a safe stock to buy and hold. For investors looking for a safe stock to buy and hold next year, Abbott Labs makes for an appealing buy. | Heading into next year, a couple of Aristocrats that look to be good investments are Abbott Laboratories (NYSE: ABT) and ExxonMobil (NYSE: XOM). Abbott Laboratories Healthcare giant Abbott Laboratories has a diverse business that generates over $1 billion in revenue every quarter from multiple segments, including medical devices, pharmaceuticals, diagnostics, and nutrition. ExxonMobil Oil and gas producer ExxonMobil has been benefiting from high oil prices this year. |
31304.0 | 2022-12-06 00:00:00 UTC | Got $500? Where to Invest It Before 2023 | ABT | https://www.nasdaq.com/articles/got-%24500-where-to-invest-it-before-2023 | nan | nan | Toward the end of the year, you may be putting your extra cash into holiday gifts. But it's also a good idea to offer yourself something. I'm talking about the possibility of future wealth. And that's by investing in companies with solid long-term prospects. Why buy now? Because so many of these top stocks are trading at dirt cheap valuations.
You can start investing -- or add to your current portfolio -- with any amount of money. But here I'll talk about investing $500. With this amount, you can get in on all three of the following stories, or make a bigger investment in just one. Let's take a look at three stocks to buy before you ring in the new year.
1. Disney
Disney (NYSE: DIS) is heading for a 35% decline this year. So, share performance clearly hasn't been anything to cheer about. What are investors' concerns? Costs. Disney has been struggling with higher costs in various areas of its business. This has weighed on earnings and on demand for the stock.
But Disney may be at a positive turning point right now. First, in just a couple of days, the company will start charging more for its streaming services. Increases apply to Disney+, Hulu, and ESPN+. For example, if you want to continue watching Disney+ without ads, you'll pay $3 more a month.
Second, Disney is setting off on a new path to boost growth, with longtime CEO Bob Iger back in the driver's seat. Iger agreed to come back for two years and then name a successor. During his tenure, he grew earnings at Disney and was behind key acquisitions, like Pixar. So he's an ideal person to lead Disney right now.
Even before Iger's return, Disney already was showing strength in a key area. Its parks, experiences, and products business grew revenue 73% in the recently ended fiscal year. Demand has been strong at the company's theme parks. And, historically, this part of the business has been the biggest moneymaker.
Today, Disney shares trade for 23 times forward-earnings estimates. That's about half the level of earlier this year. Considering momentum in the parks business and Iger's return, investors may have a lot to gain by getting in on this story as soon as possible.
2. Target
Higher inflation is weighing on Target's (NYSE: TGT) margins -- and on its customers' wallets too. The company's recent earnings came in below its own expectations. Target noted that shoppers are focusing on buying essentials, and across any product category they're looking for bargains.
So why should we run out to buy this stock? Today's economic situation is tough. But it's important to keep in mind that it's temporary. Target has the strength to weather the storm and thrive once the situation improves.
Even in today's difficult environment, Target managed to increase traffic and basket size in the third quarter. This was the company's 22nd straight quarter of comparable-sales growth. Target also made market-share gains across its merchandising categories. All of these points are important because they show customers keep coming back to Target.
At the same time, Target is putting into place a plan to increase efficiencies. And it expects this to save $2 billion to $3 billion over the coming three years. Target also continues to remodel stores, improve same-day fulfillment capacity in certain locations, and open new stores.
Target shares are trading for 29 times forward-earnings estimates. That's down from more than 40 earlier in the year. Today's level looks pretty reasonable if we consider Target's track record of growth, resilience today, and future prospects.
3. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. Traditionally, medical devices has been the biggest contributor to revenue. But in recent times, Abbott's COVID-19 testing business pushed diagnostics ahead.
Should we worry if coronavirus testing falls? No. Even if one business area weakens, Abbott's other businesses offer enough strength to keep growth going. One of Abbott's biggest products is the FreeStyle Libre continuous-glucose monitor. It brought in $1 billion in sales in the quarter. And the company continues to win new product approvals to drive future growth.
Abbott reported global sales of more than $10 billion in the third quarter. And the company increased full-year earnings-per-share guidance.
You'll also like Abbott for its dividend growth. The company is a Dividend King. That means it's increased its dividend for at least 50 straight years. So even during tough years like this one, you can count on income from your investment.
Why buy now? The stock looks cheap, trading at 20 times forward-earnings estimates. That's down from more than 27 earlier this year. So, investors who add Abbott before 2023 are getting a great price on a stock that will bring them passive income -- and possibly great gains over time.
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Adria Cimino has positions in Target. The Motley Fool has positions in and recommends Target and Walt Disney. The Motley Fool recommends Abbott Laboratories and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. 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) has four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. Second, Disney is setting off on a new path to boost growth, with longtime CEO Bob Iger back in the driver's seat. Its parks, experiences, and products business grew revenue 73% in the recently ended fiscal year. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. Today, Disney shares trade for 23 times forward-earnings estimates. The Motley Fool recommends Abbott Laboratories and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. Disney Disney (NYSE: DIS) is heading for a 35% decline this year. The Motley Fool has positions in and recommends Target and Walt Disney. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has four businesses: medical devices, diagnostics, nutrition, and established pharmaceuticals. Let's take a look at three stocks to buy before you ring in the new year. Disney Disney (NYSE: DIS) is heading for a 35% decline this year. |
31305.0 | 2022-12-06 00:00:00 UTC | Is AbbVie Stock a Buy Now? | ABT | https://www.nasdaq.com/articles/is-abbvie-stock-a-buy-now-2 | nan | nan | Given the volatility of AbbVie's (NYSE: ABBV) stock over the past year, it's pretty clear that traders are worried about next year's impending Humira patent cliff. But it's not as if the company didn't see this coming and didn't prepare for it.
As a result, the pharmaceutical stock is up more than 36% so far this year but still appears to be attractively priced, with a forward price-to-earnings ratio of slightly less than 12.
It appears the market has already priced in the potential for reduced earnings for the company. Although the way AbbVie is going, an earnings slump is likely to be short-lived.
A tale of three drugs
Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. AbbVie kept Humira when it split off from Abbott Labs in 2013. In 2006, three years after Humira got its first approval from the Food and Drug Administration (FDA), it did $2 billion in sales.
Compare that ramp up to the company's new duo of immunology drugs, Skyrizi and Rinvoq. Skyrizi got its first approval in April of 2019, so its first full year of sales was 2020, when it did $1.59 billion in sales. Rinvoq got its first FDA approval in August of 2019, so its first full year of sales was also 2020, when it brought in $731 million. Together the two did $2.32 billion in sales in their first year -- already more than Humira did in its third year:
Data sources: Abbott Laboratories and AbbVie. Chart by author. Yearly revenue figures are in millions of dollars.
AbbVie CEO Rick Gonzalez, in the company's third-quarter earnings call, said he expected Skyrizi and Rinvoq to together bring in $7.5 billion in sales this year, ahead of earlier company estimates.
"Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira, achieving the strategic objective we had for replacing Humira," Gonzalez said.
Taking a look past immunology
Outside of immunology, AbbVie has several other therapies that have already had more than $1 billion in sales this year. Imbruvica, used to treat several blood cancers, made $2.6 billion in revenue in the first nine months of 2022. Botox Therapeutic brought in $1.6 billion in revenue in that period, and Botox Cosmetic pulled in $1.2 billion through the nine months. Antipsychotic drug Vraylar brought in just under $1.5 billion. Creon, a therapy used to aid people who can't digest food normally because they lack enough enzymes in their pancreas, falls just outside the $1 billion threshold with $941 million in sales over the first three quarters of the year.
AbbVie's pipeline is huge. At the American Society of Hematology annual meeting in New Orleans next week, the company is on schedule to present 65 abstracts across eight different types of cancer that have potential to eventually reach FDA-approved status.
Besides Imbruvica, which continues to add indications, one of the most promising of the company's oncology therapies is epcoritamab, which is being codeveloped by AbbVie and Genmab. The drug is being looked at to treat various blood cancers, and its Biologics License Application (BLA) was just given priority review status by the FDA last month to treat relapsed/refractory large B-cell lymphoma, a fast-growing type of non-Hodgkin lymphoma that affects 150,000 people worldwide every year.
A solid dividend
AbbVie qualifies as a Dividend King because, counting its time as part of Abbott Labs, it has raised its dividend for at least 50 consecutive years. It's on track for 51 years as it has announced a dividend starting in February of $1.48 a share, a rise of 5%. That works out to a yield of around 3.6%, which is roughly twice the S&P 500's average dividend yield of 1.82.
Since it was split off from Abbott, the company has increased its dividend by 270%. That makes a big difference in the long term. Since 2013, AbbVie's total return price has increased 670%, superior to the S&P 500's average total return over the same period. It's also well-covered, as AbbVie has plenty of free cash flow and the cash dividend payout ratio is only 44.94%, leaving room for continued increases.
^SPX data by YCharts
Abbvie stock is waiting for the bounce
AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). Even if the percentage of decline is higher, expect a slower slump for Humira sales than many think.
Several Humira-type biosimilars are expected to launch next year, but only Amgen's Amjevita is expected to be ready in January. Overseas, Humira has been facing pressure from biosimilars since the fourth quarter of 2018, and yet the therapy still brought in $3 billion in international sales through the first nine months of this year.
It may take a while for physicians to change their habits and switch to new biosimilars, and AbbVie will likely offer discounts to maintain sales of Humira. Yes, the drug's revenue will slide, but the company is in a strong position to bounce back. That makes the stock a good buy for long-term investors.
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Jim Halley has positions in AbbVie. The Motley Fool has positions in and recommends Genmab A/s. The Motley Fool recommends Abbott Laboratories and Amgen. 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. | A tale of three drugs Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. Creon, a therapy used to aid people who can't digest food normally because they lack enough enzymes in their pancreas, falls just outside the $1 billion threshold with $941 million in sales over the first three quarters of the year. At the American Society of Hematology annual meeting in New Orleans next week, the company is on schedule to present 65 abstracts across eight different types of cancer that have potential to eventually reach FDA-approved status. | A tale of three drugs Humira was seen as a blockbuster from the beginning; the rheumatoid arthritis medication brought in $800 million in its first full year of sales in 2003, back when AbbVie was still part of Abbott Laboratories. ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). The Motley Fool recommends Abbott Laboratories and Amgen. | Together the two did $2.32 billion in sales in their first year -- already more than Humira did in its third year: Data sources: Abbott Laboratories and AbbVie. AbbVie CEO Rick Gonzalez, in the company's third-quarter earnings call, said he expected Skyrizi and Rinvoq to together bring in $7.5 billion in sales this year, ahead of earlier company estimates. ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). | Since it was split off from Abbott, the company has increased its dividend by 270%. ^SPX data by YCharts Abbvie stock is waiting for the bounce AbbVie's Gonzalez has said he expects the company, after the Humira patent cliff hits, to see erosion of as much as 45% of Humira's revenue (the drug brought in more than $20 billion last year and is on track to do so again this year). Overseas, Humira has been facing pressure from biosimilars since the fourth quarter of 2018, and yet the therapy still brought in $3 billion in international sales through the first nine months of this year. |
31306.0 | 2022-12-02 00:00:00 UTC | EXCLUSIVE -Reckitt expects U.S. infant formula shortage until spring | ABT | https://www.nasdaq.com/articles/exclusive-reckitt-expects-u.s.-infant-formula-shortage-until-spring-0 | nan | nan | By Richa Naidu
LONDON, Dec 2 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil.
Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas.
The products, made at a plant in Michigan, were pulled after complaints of bacterial infections.
Supermarkets like Target TGT.N and Walgreens Boots Alliance WBA.O were forced to limit sales, putting pressure on the Biden administration to address the crisis.
The White House in May took steps to address the shortage, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply.
Supplies are yet to return to normal since the peak of the crisis in May and June, despite the U.S. making progress in replenishing stocks, said Robert Cleveland, Reckitt senior vice president of North America and Europe Nutrition.
"I suspect that will persist to some degree until the spring resets," he said. The situation was improving, he said however. “There is much more volume on shelves than a few months ago, and enough to feed America’s babies."
New brands have increased formula supply this year, with multiple foreign brands available on shelves and online, including Danone's Aptamil and Bellamy's Organic, a White House official said.
"We are in close touch with top retailers who continue to have supplies of formula on hand, but may still lack all the sizes and varieties they once carried," the official said, adding that industry data shows U.S. formula production so far this year has outpaced 2021 levels.
According to data firm IRI, in-stock rates at U.S. stores have continued to improve and are close to pre-recall levels at 86% now versus 88–90% prior to the recall.
Rival manufacturers Perrigo Company Plc PRGO.Nand Danone declined to comment.
Since the Abbott recall, Reckitt's share of the infant formula market has skyrocketed, making it the No.1 supplier in the United States.
The British company has yet to see its newfound popularity recede, with Cleveland saying its just over 50% market share has "remained relatively unchanged" since earlier this year.
Its position has been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with the company.
Companies normally bid for state contracts to be the sole provider of baby formula for low-income families under the Women, Infants and Children (WIC) programme. In their bids, they offer a "rebate" in the form of discounts to the states.
The government's intervention, aimed at incentivising firms to boost supplies, effectively covers that rebate.
Reckitt has said its formula factories are operating 24/7, and that it was feeding more than 40% of all low-income WIC infants.
"Certainly at some point in the future, we expect they (the United States Department of Agriculture) will want to return the programme to normal," Cleveland said.
"What we're telling them is to give us enough notice - to put, essentially, a date on the calendar.... don't try to shock the system by making it happen too quickly - give us time to adjust because we'll have to adjust our production, we'll have to adjust our distribution," he said.
(Reporting by Richa Naidu in London. Additional reporting by Jessica DiNapoli in New York and Jeff Mason in Washington DC; Editing by Matt Scuffham, Arun Koyyur, Jan Harvey and Deepa Babington)
((richa.naidu@tr.com; Follow me on Twitter https://twitter.com/Richa_Writes; +44 755 755 9587;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 2 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Supplies are yet to return to normal since the peak of the crisis in May and June, despite the U.S. making progress in replenishing stocks, said Robert Cleveland, Reckitt senior vice president of North America and Europe Nutrition. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 2 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Since the Abbott recall, Reckitt's share of the infant formula market has skyrocketed, making it the No.1 supplier in the United States. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 2 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. "We are in close touch with top retailers who continue to have supplies of formula on hand, but may still lack all the sizes and varieties they once carried," the official said, adding that industry data shows U.S. formula production so far this year has outpaced 2021 levels. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 2 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Since the Abbott recall, Reckitt's share of the infant formula market has skyrocketed, making it the No.1 supplier in the United States. |
31307.0 | 2022-12-01 00:00:00 UTC | Abbott (ABT) Gains As Market Dips: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-as-market-dips%3A-what-you-should-know-4 | nan | nan | Abbott (ABT) closed at $107.93 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.09%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.22%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 9.73% over the past month. This has outpaced the Medical sector's gain of 5.18% and the S&P 500's gain of 5.55% 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 $0.90 per share. This would mark a year-over-year decline of 31.82%. Our most recent consensus estimate is calling for quarterly revenue of $9.47 billion, down 17.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $43.03 billion, which would represent changes of 0% and -0.1%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.06% lower. 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 20.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.02.
We can also see that ABT currently has a PEG ratio of 4.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 2.26 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 164, which puts it in the bottom 35% 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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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 $107.93 in the latest trading session, marking a +0.33% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.06. 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 $107.93 in the latest trading session, marking a +0.33% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.06. 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 $107.93 in the latest trading session, marking a +0.33% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.06. 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 $107.93 in the latest trading session, marking a +0.33% move from the prior day. We can also see that ABT currently has a PEG ratio of 4.06. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. |
31308.0 | 2022-12-01 00:00:00 UTC | EXCLUSIVE -Reckitt expects U.S. infant formula shortage until spring | ABT | https://www.nasdaq.com/articles/exclusive-reckitt-expects-u.s.-infant-formula-shortage-until-spring | nan | nan | By Richa Naidu
LONDON, Dec 1 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil.
Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas.
The products, made at a plant in Michigan, were pulled after complaints of bacterial infections.
Supermarkets like Target TGT.N and Walgreens Boots Alliance WBA.O were forced to limit its sales, putting pressure on the Biden administration to address the crisis.
The White House in May took steps to address the shortage, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply.
Supplies are yet to return to normal since the peak of the crisis in May and June, despite the U.S. making progress in replenishing stocks, said Robert Cleveland, Reckitt senior vice president, North America and Europe Nutrition.
"I suspect that will persist to some degree until the spring resets," he said. "When we talk about the crisis we talk about the condition of the shelves and how they appear to consumers, and how well that shelf meets their needs."
Rival manufacturer Perrigo Company Plc PRGO.N declined to comment, while Danone, maker of Aptamil, did not immediately respond to a request for comment.
Since the Abbott recall, share of Reckitt in the infant formula market has skyrocketed, making it the No.1 supplier in the United States.
The British company has yet to see its newfound popularity recede as Cleveland said its just over 50% of the market has "remained relatively unchanged" since earlier this year.
Its top position has been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with the company.
Companies normally bid for state contracts to be the sole provider of baby formula for low-income families under the Women, Infants and Children (WIC) programme. In their bids, they offer a "rebate" in the form of discounts to the states.
The government's intervention, aimed at incentivising firms to boost supplies effectively covers that rebate.
Reckitt has said its formula factories are operating 24/7, and it was feeding more than 40% of all low-income WIC infants.
"Certainly at some point in the future, we expect they (the United States Department of Agriculture) will want to return the programme to normal," Cleveland said.
"What we're telling them is to give us enough notice - to put, essentially, a date on the calendar....don't try to shock the system by making it happen too quickly - give us time to adjust because we'll have to adjust our production, we'll have to adjust our distribution," he said.
(Reporting by Richa Naidu in London. Additional reporting by Jessica DiNapoli in New York; Editing by Matt Scuffham and Arun Koyyur)
((richa.naidu@tr.com; Follow me on Twitter https://twitter.com/Richa_Writes; +44 755 755 9587;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Supplies are yet to return to normal since the peak of the crisis in May and June, despite the U.S. making progress in replenishing stocks, said Robert Cleveland, Reckitt senior vice president, North America and Europe Nutrition. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Its top position has been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with the company. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Its top position has been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with the company. | Panicked parents had earlier this year emptied the baby formula aisles at supermarkets after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - The near year-long infant formula shortage in the United States that prompted the intervention of the White House is likely to "persist" until spring, according to Reckitt Benckiser, the maker of what is now the biggest brand in the market, Enfamil. Its top position has been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with the company. |
31309.0 | 2022-12-01 00:00:00 UTC | EXCLUSIVE-Enfamil maker Reckitt sees formula shortage continuing until Spring | ABT | https://www.nasdaq.com/articles/exclusive-enfamil-maker-reckitt-sees-formula-shortage-continuing-until-spring | nan | nan | By Richa Naidu
LONDON, Dec 1 (Reuters) - A shortage of infant formula that has hit the United States for most of this year - prompting White House intervention - is likely to "persist to some degree" until spring, according to the maker of Enfamil, now the biggest brand in the market.
Earlier this year, baby formula aisles at supermarkets were emptied by panicked parents after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. The products, which were made at a plant in Michigan, were pulled after complaints of bacterial infections.
Supermarkets like Target TGT.N and Walgreens Boots Alliance WBA.N were forced to limit sales of formula, putting pressure on the Biden administration to address the crisis. The White House in May took steps to address the shortage, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply.
Supplies are yet to return to normal since the peak of the crisis in May and June, despite the U.S. making progress in replenishing stocks, said Robert Cleveland, Reckitt's senior vice president, North America and Europe Nutrition.
"I suspect that will persist to some degree until the spring resets," he said. "Really, when we talk about the crisis we talk about the condition of the shelves and how they appear to consumers, and how well that shelf meets their needs."
Rival manufacturer Perrigo Company Plc PRGO.N declined to comment, while Danone, maker of Aptamil, did not immediately respond to a request for comment.
Reckitt, whose share of the U.S. infant formula market has skyrocketed since the recall to make it the no.1 supplier in the market, said it has yet to see its newfound popularity recede. The company's share of just over 50% of the market has "remained relatively unchanged", Cleveland said.
(Reporting by Richa Naidu in London. Additional reporting by Jessica DiNapoli in New York; Editing by Matt Scuffham)
((richa.naidu@tr.com; Follow me on Twitter https://twitter.com/Richa_Writes; +44 755 755 9587;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earlier this year, baby formula aisles at supermarkets were emptied by panicked parents after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - A shortage of infant formula that has hit the United States for most of this year - prompting White House intervention - is likely to "persist to some degree" until spring, according to the maker of Enfamil, now the biggest brand in the market. The White House in May took steps to address the shortage, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply. | Earlier this year, baby formula aisles at supermarkets were emptied by panicked parents after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - A shortage of infant formula that has hit the United States for most of this year - prompting White House intervention - is likely to "persist to some degree" until spring, according to the maker of Enfamil, now the biggest brand in the market. Reckitt, whose share of the U.S. infant formula market has skyrocketed since the recall to make it the no.1 supplier in the market, said it has yet to see its newfound popularity recede. | Earlier this year, baby formula aisles at supermarkets were emptied by panicked parents after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - A shortage of infant formula that has hit the United States for most of this year - prompting White House intervention - is likely to "persist to some degree" until spring, according to the maker of Enfamil, now the biggest brand in the market. Reckitt, whose share of the U.S. infant formula market has skyrocketed since the recall to make it the no.1 supplier in the market, said it has yet to see its newfound popularity recede. | Earlier this year, baby formula aisles at supermarkets were emptied by panicked parents after former top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, Dec 1 (Reuters) - A shortage of infant formula that has hit the United States for most of this year - prompting White House intervention - is likely to "persist to some degree" until spring, according to the maker of Enfamil, now the biggest brand in the market. Reckitt, whose share of the U.S. infant formula market has skyrocketed since the recall to make it the no.1 supplier in the market, said it has yet to see its newfound popularity recede. |
31310.0 | 2022-11-30 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-4 | nan | nan | This year has been particularly difficult for the stock market, making investors more hesitant to invest their hard-earned money. Dividend stocks, on the other hand, are popular among investors because these investments are typically stable and secure. Such investments are also a simple way to earn consistent income even in a volatile market.
And what's better than companies with a history of consistently paying and increasing dividends? Dividend Kings are companies that have increased their dividends for 50 years in a row -- and I've got the perfect three in mind.
Image source: Getty Images.
1. AbbVie
Biopharma company AbbVie's (NYSE: ABBV) shares have jumped 18% so far this year, compared to the broader market's drop of roughly 17%. Though investors are concerned about it losing its U.S. patent exclusivity for Humira, its star product, next year, the company has a slew of other successful drugs. In adults, Humira is used to treat moderate to severe rheumatoid arthritis. Last year, it generated $21 billion in annual sales, accounting for 37% of AbbVie's total revenue.
Skyrizi (used to treat moderate to severe plaque psoriasis in adults) and Rinvoq (used to treat moderate to severely active rheumatoid arthritis in adults) are two of the company's most promising drugs now.
In the third-quarterearnings call CEO Rick Gonzalez made a bold prediction, stating:
Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira, achieving the strategic objective we had for replacing Humira.
In Q3, Skyrizi and Rinvoq together brought in nearly $2.1 billion in sales, while Humira generated $5.5 billion.
AbbVie has earned the prestigious title of Dividend King by raising dividends for 50 years in a row. Since its inception and separation from Abbott Laboratories in 2013, its payouts have increased by more than 250%.
AbbVie has a robust pipeline of successful drugs and will continue to develop new ones. The company is investing heavily in research and development (R&D), which totaled $1.6 billion (11% of revenue) in Q3. This should reassure investors that dividend payments will not be discontinued any time soon. It's not only an income stock -- it's also a growth stock that has the potential to reward investors handsomely in the long run.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a popular name in the consumer and healthcare sectors. It has captured the market with well-known brands such as Listerine, Neutrogena, and Tylenol. The company is spinning off its consumer business to focus solely on its healthcare division. That is not a major concern for investors, because its pharma segment will more than suffice to keep the company running for many years. This segment contains some high-quality cancer drugs, such as Darzalex and Erleada.
Its pharmaceutical segment contributed the most to total sales in Q3. Its revenue increased 2% year over year to $23.8 billion, while adjusted earnings per share fell 1.9% to $2.55 (impacted by the consumer health separation-related tax).
It also continues to invest heavily in R&D, which totaled $3.6 billion in Q3. In addition, the company is working to strengthen its MedTech (medical technology) segment. It recently announced its intention to acquire medical device company Abiomed, which could boost its MedTech revenue in the coming years.
Johnson & Johnson has a dividend yield of 2.5%. The company increased its quarterly dividend by 6.6% in the first quarter to $1.13 per share, which marked its 60th consecutive dividend hike. Market volatility hasn't affected its dividend payouts, which is why I believe it will continue to grow its revenue and profits while returning payments to shareholders.
3. Procter & Gamble
Procter & Gamble (NYSE: PG), the maker of brands such as Pampers, Tide, and Gillette, is well-known around the world. It has also earned the title of Dividend King due to its consistent dividend increases over the last 66 years, proving to investors how stable its business is despite market highs and lows.
In its recent fiscal Q1 (period ended Sept. 30), net sales increased 1% year over year to $21 billion, while diluted earnings per share fell 2% to $1.57. P&G generated 86% of its net earnings as free cash flow (free cash flow productivity), allowing it to pay out $2.3 billion in dividends.
Management anticipates some headwinds in fiscal 2023 as a result of rising raw material costs. Thus, the company now expects revenue to be down 1% to 3% from last year.
Its diverse business has kept it stable for years and may continue to do so in the future. Despite market headwinds, P&G expects to generate 90% free cash flow productivity this fiscal year, allowing it to pay close to $9 billion in dividends and repurchase $6 billion to $8 billion of common stock.
The company increased its quarterly dividend by 5% year over year to $0.91 per share in April. With a current dividend yield of 2.5%, P&G is a good way to earn some passive income.
JNJ Dividend Yield data by YCharts
Why these are safe stocks
All three stocks pay out significantly more than the S&P 500's current average dividend yield of 1.6%. When selecting dividend stocks, however, yield is not the only factor to consider. Investors should consider consistency in dividend payments. Earning the title of Dividend King also ensures that investors will have access to consistent income regardless of economic cycles.
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Sushree Mohanty has no position in any of the stocks mentioned. 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. | Though investors are concerned about it losing its U.S. patent exclusivity for Humira, its star product, next year, the company has a slew of other successful drugs. In the third-quarterearnings call CEO Rick Gonzalez made a bold prediction, stating: Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira, achieving the strategic objective we had for replacing Humira. Market volatility hasn't affected its dividend payouts, which is why I believe it will continue to grow its revenue and profits while returning payments to shareholders. | In its recent fiscal Q1 (period ended Sept. 30), net sales increased 1% year over year to $21 billion, while diluted earnings per share fell 2% to $1.57. P&G generated 86% of its net earnings as free cash flow (free cash flow productivity), allowing it to pay out $2.3 billion in dividends. Despite market headwinds, P&G expects to generate 90% free cash flow productivity this fiscal year, allowing it to pay close to $9 billion in dividends and repurchase $6 billion to $8 billion of common stock. | It has also earned the title of Dividend King due to its consistent dividend increases over the last 66 years, proving to investors how stable its business is despite market highs and lows. Despite market headwinds, P&G expects to generate 90% free cash flow productivity this fiscal year, allowing it to pay close to $9 billion in dividends and repurchase $6 billion to $8 billion of common stock. JNJ Dividend Yield data by YCharts Why these are safe stocks All three stocks pay out significantly more than the S&P 500's current average dividend yield of 1.6%. | In Q3, Skyrizi and Rinvoq together brought in nearly $2.1 billion in sales, while Humira generated $5.5 billion. It's not only an income stock -- it's also a growth stock that has the potential to reward investors handsomely in the long run. That is not a major concern for investors, because its pharma segment will more than suffice to keep the company running for many years. |
31311.0 | 2022-11-29 00:00:00 UTC | Notable ETF Outflow Detected - SPY, ABT, DHR, AMGN | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-spy-abt-dhr-amgn | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $673.2 million dollar outflow -- that's a 0.2% decrease week over week (from 952,180,000 to 950,480,000). Among the largest underlying components of SPY, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Danaher Corp (Symbol: DHR) is down about 0.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.5%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $348.11 per share, with $479.98 as the 52 week high point — that compares with a last trade of $397.02. 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 »
Also see:
CADC YTD Return
ACHN Price Target
Institutional Holders of RZC
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 SPY, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Danaher Corp (Symbol: DHR) is down about 0.5%, and Amgen Inc (Symbol: AMGN) 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 SPY, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Danaher Corp (Symbol: DHR) is down about 0.5%, and Amgen Inc (Symbol: AMGN) is lower by about 0.5%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $348.11 per share, with $479.98 as the 52 week high point — that compares with a last trade of $397.02. 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 SPY, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Danaher Corp (Symbol: DHR) is down about 0.5%, and Amgen Inc (Symbol: AMGN) 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 SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $673.2 million dollar outflow -- that's a 0.2% decrease week over week (from 952,180,000 to 950,480,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $348.11 per share, with $479.98 as the 52 week high point — that compares with a last trade of $397.02. | Among the largest underlying components of SPY, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Danaher Corp (Symbol: DHR) is down about 0.5%, and Amgen Inc (Symbol: AMGN) 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 SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $673.2 million dollar outflow -- that's a 0.2% decrease week over week (from 952,180,000 to 950,480,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $348.11 per share, with $479.98 as the 52 week high point — that compares with a last trade of $397.02. |
31312.0 | 2022-11-28 00:00:00 UTC | Is Trending Stock Abbott Laboratories (ABT) a Buy Now? | ABT | https://www.nasdaq.com/articles/is-trending-stock-abbott-laboratories-abt-a-buy-now | nan | nan | Abbott (ABT) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of infant formula, medical devices and drugs have returned +7.5% over the past month versus the Zacks S&P 500 composite's +4.5% change. The Zacks Medical - Products industry, to which Abbott belongs, has gained 4.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Abbott is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of -31.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
For the current fiscal year, the consensus earnings estimate of $5.21 points to no change from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $4.40 indicates a change of -15.6% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abbott, the consensus sales estimate for the current quarter of $9.47 billion indicates a year-over-year change of -17.4%. For the current and next fiscal years, $43.03 billion and $39.24 billion estimates indicate -0.1% and -8.8% changes, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $10.41 billion in the last reported quarter, representing a year-over-year change of -4.7%. EPS of $1.15 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $9.58 billion, the reported revenues represent a surprise of +8.67%. The EPS surprise was +26.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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.
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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) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of this maker of infant formula, medical devices and drugs have returned +7.5% over the past month versus the Zacks S&P 500 composite's +4.5% change. | Abbott (ABT) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. | Abbott (ABT) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. | Abbott (ABT) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well. |
31313.0 | 2022-11-27 00:00:00 UTC | This Robotic Surgical Company Is Likely To Offer Better Returns Over Abbott Stock | ABT | https://www.nasdaq.com/articles/this-robotic-surgical-company-is-likely-to-offer-better-returns-over-abbott-stock | nan | nan | We believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. Although Abbott is trading at a comparatively lower valuation of 4.1x trailing revenues vs. 15.2x for Intuitive Surgical, this gap in the valuation is justified mainly given the latter’s superior revenue growth and lower financial risk, as discussed below.
If we look at stock returns, both ABT and ISRG, with over a 25% fall this year, have underperformed the broader S&P 500 index, down 16%. There is more to the comparison, and in the sections below, we discuss why we believe ISRG stock will offer better returns than ABT stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation multiple, in an interactive dashboard analysis of Abbott vs. Intuitive Surgical: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuitive Surgical’s Revenue Growth Is Far Better
Intuitive Surgical’s revenue growth of 11.3% over the last twelve months is higher than 6.4% for Abbott.
Even if we look at a longer time frame, Intuitive Surgical’s sales growth has been better. It rose at an average annual growth rate of 16.2% to $5.7 billion in 2021, compared to $3.7 billion in 2018, while Abbott saw its revenue rise at an average annual rate of 12.4% to $43.1 billion in 2021, compared to $30.6 billion in 2018.
Abbott’s sales growth over the recent years was driven by a very high demand for Covid-19 testing. However, as the Covid-19 cases have declined over the recent quarters, 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 see steady growth over the coming years.
For Intuitive Surgical, revenue growth over the recent past has been driven by a rebound in procedure volume, which was adversely impacted in the initial phases of the pandemic due to the shelter-in-place restrictions. The company continues to expand its installed base, which results in the growth of recurring revenues, such as consumables.
That said, the stock has seen a meaningful correction this year, partly due to the challenging macroeconomic environment and a Q2 miss. This trend reversed after its upbeat Q3 results and the company’s announcement of an additional $1 billion in share buybacks.
Our Abbott Revenue Comparison and Intuitive Surgical Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Intuitive Surgical’s revenue is expected to grow faster than Abbott’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 13.7% for Intuitive Surgical, compared to a 4.2% CAGR for Abbott, 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. Abbott Is More Profitable
Abbott’s operating margin of 22.1% over the last twelve-month period is slightly better than 20.5% for Intuitive Surgical.
However, the operating margin has been better for Intuitive Surgical over recent years.
The figures stood at 16.1% and 30.7% in 2019, before the pandemic, respectively.
Intuitive Surgical’s free cash flow margin of 31.4% is also better than 22.9% for Abbott.
Our Abbott Operating Income and Intuitive Surgical Operating Income dashboards have more details.
Looking at financial risk, Intuitive Surgical fares much better. Its 0.5% debt as a percentage of equity is lower than 8.9% for Abbott, while its 61.7% cash as a percentage of assets is higher than the 13.6% for the latter, implying that Intuitive Surgical has a better debt position and also has more cash cushion.
3. The Net of It All
We see that Intuitive Surgical has demonstrated better revenue growth and offers lower financial risk with a better debt position and more cash cushion. Although its operating margin is currently a tad lower than Abbott’s, it has been better in recent years. On the other hand, Abbott is available at a comparatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Intuitive Surgical is currently the better choice of the two, despite it being the more expensive one.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 47% for Intuitive Surgical over this period and a 16% expected return for Abbott stock, implying that investors will likely be better off buying ISRG over ABT, based on Trefis Machine Learning analysis – Abbott vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers.
While ISRG may outperform ABT, it is helpful to see how Abbott’s Peers fares 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 25% this year. 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 Nov 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return 6% -25% 173%
ISRG Return 7% -27% 273%
S&P 500 Return 3% -16% 79%
Trefis Multi-Strategy Portfolio 3% -20% 217%
[1] Month-to-date and year-to-date as of 11/23/2022
[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 believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. If we look at stock returns, both ABT and ISRG, with over a 25% fall this year, have underperformed the broader S&P 500 index, down 16%. There is more to the comparison, and in the sections below, we discuss why we believe ISRG stock will offer better returns than ABT stock in the next three years. | The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 47% for Intuitive Surgical over this period and a 16% expected return for Abbott stock, implying that investors will likely be better off buying ISRG over ABT, based on Trefis Machine Learning analysis – Abbott vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. Total [2] ABT Return 6% -25% 173% ISRG Return 7% -27% 273% S&P 500 Return 3% -16% 79% Trefis Multi-Strategy Portfolio 3% -20% 217% [1] Month-to-date and year-to-date as of 11/23/2022 [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 believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. | The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 47% for Intuitive Surgical over this period and a 16% expected return for Abbott stock, implying that investors will likely be better off buying ISRG over ABT, based on Trefis Machine Learning analysis – Abbott vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. We believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. If we look at stock returns, both ABT and ISRG, with over a 25% fall this year, have underperformed the broader S&P 500 index, down 16%. | There is more to the comparison, and in the sections below, we discuss why we believe ISRG stock will offer better returns than ABT stock in the next three years. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 47% for Intuitive Surgical over this period and a 16% expected return for Abbott stock, implying that investors will likely be better off buying ISRG over ABT, based on Trefis Machine Learning analysis – Abbott vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. We believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. |
31314.0 | 2022-11-27 00:00:00 UTC | Should You Buy Medtronic Stock At $80? | ABT | https://www.nasdaq.com/articles/should-you-buy-medtronic-stock-at-%2480 | nan | nan | Medtronic stock (NYSE: MDT) has declined 5% in a week, while it’s down 7% in a month, underperforming the broader markets with the S&P500 index rising 6% in a month. The recent fall can be attributed to the Q2FY23 results the company reported yesterday, with revenue falling below and earnings above our estimates. After its recent fall, we find MDT stock undervalued, as discussed below.
Medtronic’s revenue of $7.6 billion reflected a 3% y-o-y decline, marginally below our $7.7 billion estimate, primarily due to forex headwinds. Its Neuroscience segment saw low single-digit growth in sales, while all other segments saw a y-o-y decline. The company’s earnings of $1.30 on a per share and adjusted basis was down 2% y-o-y, given the lower sales, around 140 bps fall in adjusted operating margin, partly offset by a slight decline in total shares outstanding.
Given the forex headwinds, the company lowered its full-year sales growth forecast to be between 3.5% and 4%, compared to its prior guidance of 4% and 5%. It now expects the earnings to be in the range of $5.25 to $5.30 on a per share and adjusted basis, vs. its previous guided range of $5.53 and $5.65. We have updated our model to reflect the latest quarterly results. We forecast revenue of $31.5 billion and adjusted earnings of $5.32 per share. We estimate Medtronic’s Valuation to be around $106 per share, which is 36% above the current market price of $78. This represents a 20x P/E multiple based on its expected EPS of $5.32 in fiscal 2023, aligning with its last three-year average.
But What About The Near Term?
Now that MDT stock has seen a 7% fall in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of an increase in MDT stock over the next month. MDT stock has seen a move of -7% or more 179 times in the last ten years. 114 of those resulted in MDT stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 114 out of 179, or a 64% chance of a rise in MDT stock over the next month. See our analysis on Medtronic Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -6.6% or more over five days, the stock rose on 55% of the occasions in the next five days.
After moving -2.8% or more over ten days, the stock rose in the next ten days on 59% of the occasions
After moving -7.1% or more over a twenty-one-day period, the stock rose on 64% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in MDT stock over the next five, ten, and twenty-one days.
Medtronic (MDT) Return (Recent) Comparison With Peers
Five-Day Return: JNJ highest at 2.6%; MDT lowest at -6.6%
Ten-Day Return: ISRG highest at 9.2%; MDT lowest at -2.8%
Twenty-One Day Return: ISRG highest at 19.4%; MDT lowest at -7.1%
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 undervalued, 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 Nov 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return -11% -25% 9%
S&P 500 Return 3% -16% 79%
Trefis Multi-Strategy Portfolio 3% -20% 217%
[1] Month-to-date and year-to-date as of 11/23/2022
[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 forex headwinds, the company lowered its full-year sales growth forecast to be between 3.5% and 4%, compared to its prior guidance of 4% and 5%. 114 of those resulted in MDT stock rising over the subsequent one-month period (twenty-one trading days). This pattern suggests a higher chance of a rise in MDT stock over the next five, ten, and twenty-one days. | Medtronic’s revenue of $7.6 billion reflected a 3% y-o-y decline, marginally below our $7.7 billion estimate, primarily due to forex headwinds. Medtronic (MDT) Return (Recent) Comparison With Peers Five-Day Return: JNJ highest at 2.6%; MDT lowest at -6.6% Ten-Day Return: ISRG highest at 9.2%; MDT lowest at -2.8% Twenty-One Day Return: ISRG highest at 19.4%; MDT lowest at -7.1% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \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 undervalued, the Covid-19 crisis and recent market volatility have created many pricing discontinuities, which can offer attractive trading opportunities. | After moving -2.8% or more over ten days, the stock rose in the next ten days on 59% of the occasions After moving -7.1% or more over a twenty-one-day period, the stock rose on 64% of the occasions in the next twenty-one days. Medtronic (MDT) Return (Recent) Comparison With Peers Five-Day Return: JNJ highest at 2.6%; MDT lowest at -6.6% Ten-Day Return: ISRG highest at 9.2%; MDT lowest at -2.8% Twenty-One Day Return: ISRG highest at 19.4%; MDT lowest at -7.1% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] MDT Return -11% -25% 9% S&P 500 Return 3% -16% 79% Trefis Multi-Strategy Portfolio 3% -20% 217% [1] Month-to-date and year-to-date as of 11/23/2022 [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 2% y-o-y, given the lower sales, around 140 bps fall in adjusted operating margin, partly offset by a slight decline in total shares outstanding. We estimate Medtronic’s Valuation to be around $106 per share, which is 36% above the current market price of $78. This historical pattern reflects 114 out of 179, or a 64% chance of a rise in MDT stock over the next month. |
31315.0 | 2022-11-27 00:00:00 UTC | 8 Dividend Aristocrats to Buy Now for a Lifetime of Passive Income | ABT | https://www.nasdaq.com/articles/8-dividend-aristocrats-to-buy-now-for-a-lifetime-of-passive-income | nan | nan | There is no one-size-fits-all strategy that has the potential to make investors wealthy over time, but there are few approaches that have a better track record of success than investing in dividend stocks.
Companies that pay dividends are often successful, profitable businesses -- year in, year out -- which have generally proven over time that they can withstand market cycles and recessions. They also have a bright-line history of outperforming their peers that don't pay a dividend.
The asset managers at Hartford Financial Services looked at the performance of the benchmark S&P 500 going all the way back to 1930 and found there was not a single decade in which dividend stocks in the index didn't generate positive returns, even when the broader market was losing money for investors.
Image source: Getty Images.
Dividend growth for the win
From 1973 on, the study also found stocks that grew their dividend or initiated one far outperformed every other category of stock, especially those that didn't pay one, and even worse, those that cut or eliminated their payout. Dividend growers returned 10.7% annually, on average, versus 4.8% for non-payers (and negative 0.5% for those that cut or eliminated the dividend). The S&P 500 itself returned 8.2% annually.
It's one reason why Dividend Aristocrats are such potent stocks. They are S&P 500 stocks that have raised their dividend every year for at least 25 years, and they tend to have higher yields than the average index stock (2.5% vs. 1.5%), offer lower risk, and -- especially pertinent to today's investment climate -- outperform the index 70% of the time in months when the S&P 500 declines.
As part of a core holding in your portfolio, the following eight Dividend Aristocrats could offer you a lifetime of income.
AbbVie
AbbVie (NYSE: ABBV) is not your typical Dividend Aristocrat because Standard & Poor's allows spinoffs to absorb the dividend history of their former parent company. Since the pharmaceutical stock was spun off from Abbott Laboratories (another Dividend Aristocrat) in 2013, AbbVie enjoys the double-dipping afforded by the rules and is credited with some 50 years of dividend payments.
While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. The dividend yields 3.7% annually.
With a robust pipeline of drugs as well as its legacy Humira treatment for rheumatoid arthritis lining up multiple additional indications in the U.S. and abroad, AbbVie still offers plenty of growth for years to come.
Amcor
Born of a merger with U.S.-based Bemis in 2019, U.K.-based Amcor (NYSE: AMCR) makes flexible packaging for food, beverage, pharmaceuticals, and personal care products. While some fear a recession could impact growth, Amcor notes consumer preference for smaller, more affordable items actually drives more packaging usage. It has been hit by inflation, unfavorable currency exchange rates, and supply chain issues, only some of which it was able to offset by price increases.
Amcor recently lowered its guidance for its fiscal year due to the U.S. dollar's strength, but it expects to produce between $1 billion and $1.1 billion in free cash flow. The packaging specialist's dividend of $0.49 per share currently yields 4.1% annually, which should provide investors with plenty of income to offset any short-term impact on the stock price.
Consolidated Edison
Regulated electric utility Consolidated Edison (NYSE: ED), also known as ConEd, has increased its dividend for 48 consecutive years, the longest streak for any utility in the S&P 500 index. It means it is poised to become a Dividend King in short order, or a stock that has raised its payout for 50 or more years (S&P 500 membership not required).
ConEd recently beat analyst earnings and revenue estimates for the third quarter as its deeply protected competitive moat and recession-resistant business delivered gains, though the prospect for persistent inflation could lead to consumers economizing on their heating bills even during a cold winter. Commercial customers might be affected by an economic downturn, but the overall impact ought to be muted.
The electric, gas, and steam delivery utility recently announced it would be selling its clean energy business and using the proceeds to pay down debt. Its annual dividend of $3.16 per share yields 3.3%.
Image source: Getty Images.
Chevron
One of the biggest and best-run oil and gas giants, Chevron (NYSE: CVX) is reporting record earnings on elevated pricing, limited supply, and continuing global uncertainty about Russia's invasion of Ukraine and the resulting sanctions that were imposed on Russian oil.
Despite this, Chevron stock remains cheap. It trades at 10 times trailing earnings and next year's estimates, a fraction of its projected earnings growth rate, and just 14 times the free cash flow it produces.
Fossil fuels still have a long opportunity for growth because, despite warnings of peak oil (which you don't hear too much about anymore) and the advent of alternative fuels, oil and gas are far too ingrained to simply shut off. There's also not the capacity available to replace fossil fuels with so-called clean energy, sources that have a fair amount of negative environmental impact themselves. Yet Chevron is also ramping up production of such sources and is spending about $2 billion through 2028 on decarbonization projects.
In addition to a cheap stock, Chevron's dividend yields 3.1% today and the company has bought back $7.5 billion worth of stock so far this year.
McDonald's
McDonald's (NYSE: MCD) is the largest restaurant chain in the world and it's still growing as the fast-food giant continues to resonate with consumers. It is seeing greater store traffic in all the regions in which it operates while also enjoying double-digit same-store sales growth.
Heading into a potential recessionary period marked with high inflation, the value-priced food that McDonald's sells could help consumers get good value for a decent tasty meal. While its own costs have increased as a result, impacting margins, CEO Chris Kempczinski said, "We are operating from a position of competitive strength."
Having perfected the drive-thru concept, McDonald's is leaning hard into its mobile and delivery strategies, which has been paying off with its stock. The shares trade near all-time highs, which might have investors worried about buying at the top, but that can be alleviated by waiting for a dip if one so chooses. A dollar-cost averaging approach could also be a benefit while investors enjoy its $6.08-per-share dividend, which yields 2.2% annually.
Stanley Black & Decker
Toolmaker Stanley Black & Decker (NYSE: SWK) has been getting hammered as the housing market slowed and then began to fall, but that is also forcing the company to get leaner and focus more intently on its core business in a bid to align with current conditions.
Yet with a business history extending back nearly 150 years, Stanley has been through such business cycles before and has weathered them without issue. In the process, it has grown and now owns some of the biggest and best brands in the industry, including Craftsman, DeWalt, Bostitch, and Porter-Cable, not to mention Stanley and Black & Decker.
Stanley trades at less than 18 times next year's earnings estimates and just a fraction of its sales, while paying a dividend as it has every year for the past 146 years. And it's increased that payout for 55 straight years. The dividend currently yields an attractive 3.9% annually.
Sysco
Food service distributor Sysco (NYSE: SYY) could be affected by a recession as it would impact how many people are eating away from home, whether that's at a restaurant, a hospital, a school, or a hotel. Inflation and high gas costs would also impact its truck-heavy delivery business.
Yet business is still growing, and though it fell short of analyst expectations in the latest quarter, people still need to eat. It has been through these kinds of downturns before and has always bounced back, and there's nothing indicating it won't do so again. It may also be a fortuitous time as the industry is highly fragmented with many smaller players that could become potential takeover targets, allowing Sysco to build up its position in new markets.
Its stock had been down 20% year to date just two months ago, but has marched back strongly as expected, and now Sysco is riding 10% above where it started the year. Even so, it goes for 18 times earnings estimates and a fraction of its sales, which when coupled with its history of dividend payments makes it a good long-term buy.
Walmart
Walmart (NYSE: WMT) will come into its own once again if a recession does hit. It's already seeing robust growth, particularly in groceries, as consumers seek out its everyday low prices to make their budgets go further. The retailer is even seeing customers with household incomes north of $100,000 shopping its stores, showing how much its value proposition appeals to consumers of all economic backgrounds.
It stands in stark contrast to how rival Target has fared, and is likely because Walmart is a consumer staples stock and Target a consumer discretionary one. When the markets and economy rebound, as they inevitably will, Target (also a Dividend Aristocrat) will likely come into its own once again as consumers pursue the higher-margin items for which the mass merchandise retailer is known.
For now, though, they'll be sticking with the store that gives them across-the-board good value, and that means -- especially in a recession -- Walmart will be a leader. With a dividend yielding 1.5% that it's paid and increased for almost 50 years, this discount king should soon be a Dividend King as well.
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Rich Duprey has positions in AbbVie, Amcor plc, Chevron, Consolidated Edison, and Sysco. The Motley Fool has positions in and recommends Amcor Limited, Target, and Walmart Inc. The Motley Fool recommends the following options: long January 2023 $50 calls on Sysco and short November 2022 $90 calls on Sysco. 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 asset managers at Hartford Financial Services looked at the performance of the benchmark S&P 500 going all the way back to 1930 and found there was not a single decade in which dividend stocks in the index didn't generate positive returns, even when the broader market was losing money for investors. With a robust pipeline of drugs as well as its legacy Humira treatment for rheumatoid arthritis lining up multiple additional indications in the U.S. and abroad, AbbVie still offers plenty of growth for years to come. ConEd recently beat analyst earnings and revenue estimates for the third quarter as its deeply protected competitive moat and recession-resistant business delivered gains, though the prospect for persistent inflation could lead to consumers economizing on their heating bills even during a cold winter. | Chevron One of the biggest and best-run oil and gas giants, Chevron (NYSE: CVX) is reporting record earnings on elevated pricing, limited supply, and continuing global uncertainty about Russia's invasion of Ukraine and the resulting sanctions that were imposed on Russian oil. It trades at 10 times trailing earnings and next year's estimates, a fraction of its projected earnings growth rate, and just 14 times the free cash flow it produces. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Rich Duprey has positions in AbbVie, Amcor plc, Chevron, Consolidated Edison, and Sysco. | Dividend growth for the win From 1973 on, the study also found stocks that grew their dividend or initiated one far outperformed every other category of stock, especially those that didn't pay one, and even worse, those that cut or eliminated their payout. They are S&P 500 stocks that have raised their dividend every year for at least 25 years, and they tend to have higher yields than the average index stock (2.5% vs. 1.5%), offer lower risk, and -- especially pertinent to today's investment climate -- outperform the index 70% of the time in months when the S&P 500 declines. While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. | While the drug developer has been paying dividends independently for only a relatively short time, AbbVie has rewarded shareholders by increasing the payout every year so that it has hiked its value from the original quarterly dividend of $0.40 per share to its current level of $1.48 per share, a near fourfold increase in nine years. In addition to a cheap stock, Chevron's dividend yields 3.1% today and the company has bought back $7.5 billion worth of stock so far this year. The Motley Fool has positions in and recommends Amcor Limited, Target, and Walmart Inc. |
31316.0 | 2022-11-26 00:00:00 UTC | Is This Stock-Split Stock a Buy For 2023? | ABT | https://www.nasdaq.com/articles/is-this-stock-split-stock-a-buy-for-2023 | nan | nan | Over the past 10 months, several high-profile stock splits helped animate an already lively stock market. One of them was that of the medical device expert DexCom (NASDAQ: DXCM), which completed a 4-for-1 stock split in June.
Of course, stock splits don't fundamentally change the prospects of the company, and DexCom's did little to jolt its stock performance in 2022. The company's shares have performed more or less on par with the struggling stock market this year.
Can the healthcare company rebound in 2023? Let's look closer at what DexCom has going on to find out.
Rolling out new devices
DexCom focuses on developing continuous glucose monitoring (CGM) devices, which allow diabetes patients to keep track of their blood sugar levels continuously. The company currently generates most of its money from its G6 CGM device, which comes with a sensor, a transmitter, and a touchscreen device that displays blood glucose levels.
Patients insert the sensor beneath the skin and snap the transmitter into the sensor. The sensor lasts for 10 days. While the G6 has been highly successful for DexCom, one of the key highlights for the company this year has been the rollout of a couple of new CGM options. The first is the G7, the successor of its current crown jewel.
The G7 earned clearance in Europe earlier this year. DexCom recently started the launch of this device in several countries in the Old Continent. DexCom expects to receive the green light for the G7 in the U.S. by year-end. The company should initiate the device's launch in the country next year.
DexCom's other new device is the DexCom ONE, which it has also launched in some parts of Europe, including the U.K. What is the difference between all these options? The G7 is an upgraded version of the G6. It has a faster warm-up period, which is the time it takes after setup before glucose readings are readable on the accompanying touchscreen device.
The G7 is also 60% smaller -- making it more discreet -- it has an integrated sensor and transmitter, making it simpler to manage, and most importantly, it showed superiority in helping diabetes patients achieve better health outcomes than the G6 in clinical trials.
By contrast, the DexCom ONE does not allow users to share data automatically with certain contacts, including when blood glucose levels fall below a certain threshold. Both the G6 and the G7 have this feature. In exchange, the DexCom ONE is cheaper than the company's other options.
The large CGM opportunity
DexCom's newest CGM devices should help it make further headway in the CGM space next year. In the U.S., a recent regulatory decision could substantially increase the number of people eligible for CGM coverage in the country, thereby widening the market. DexCom's rollout of the G7 in the U.S. -- if it earns clearance as the company expects -- should be an important part of the company's growth strategy in the U.S. in 2023.
DexCom is also aggressively marketing its devices, and it has partnered with some high-profile celebrities to do so. DexCom's G7, marketing efforts, and launch of the DexCom ONE should all help it gain more adoption both inside and outside the U.S. As of last year, CGM penetration in the U.S. diabetes type 1 market was about 30%, leaving plenty of room for expansion.
Theglobal marketalso shows plenty of whitespace. And that's before we account for the fact that the percentage of people with diabetes is on the rise, a trend that is projected to continue for decades. Naturally, DexCom isn't the only company in this market. Its most notable competitor is Abbott Laboratories, whose FreeStyle Libre has also been successful.
Even so, DexCom has established itself as one of the leaders in CGM, it continues to grow its revenue rapidly, and its innovations should allow it to stay on par with Abbott and some of its other peers in this industry. In the first nine months of the year, DexCom's top line jumped by 19.7% year over year to $2.1 billion.
The company's earnings per share came in at $0.60 compared to the $0.54 in the year-ago period. DexCom's momentum in the CGM space should help it deliver excellent returns well beyond next year, making it a top healthcare stock to buy heading into the new year.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. 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. | By contrast, the DexCom ONE does not allow users to share data automatically with certain contacts, including when blood glucose levels fall below a certain threshold. In the U.S., a recent regulatory decision could substantially increase the number of people eligible for CGM coverage in the country, thereby widening the market. Even so, DexCom has established itself as one of the leaders in CGM, it continues to grow its revenue rapidly, and its innovations should allow it to stay on par with Abbott and some of its other peers in this industry. | Over the past 10 months, several high-profile stock splits helped animate an already lively stock market. Rolling out new devices DexCom focuses on developing continuous glucose monitoring (CGM) devices, which allow diabetes patients to keep track of their blood sugar levels continuously. DexCom's momentum in the CGM space should help it deliver excellent returns well beyond next year, making it a top healthcare stock to buy heading into the new year. | The large CGM opportunity DexCom's newest CGM devices should help it make further headway in the CGM space next year. DexCom's G7, marketing efforts, and launch of the DexCom ONE should all help it gain more adoption both inside and outside the U.S. As of last year, CGM penetration in the U.S. diabetes type 1 market was about 30%, leaving plenty of room for expansion. DexCom's momentum in the CGM space should help it deliver excellent returns well beyond next year, making it a top healthcare stock to buy heading into the new year. | Over the past 10 months, several high-profile stock splits helped animate an already lively stock market. The company's shares have performed more or less on par with the struggling stock market this year. DexCom's rollout of the G7 in the U.S. -- if it earns clearance as the company expects -- should be an important part of the company's growth strategy in the U.S. in 2023. |
31317.0 | 2022-11-26 00:00:00 UTC | Better Dividend Stock: AbbVie or Viatris? | ABT | https://www.nasdaq.com/articles/better-dividend-stock%3A-abbvie-or-viatris | nan | nan | AbbVie (NYSE: ABBV) and Viatris (NASDAQ: VTRS) have a lot more in common than first glances would suggest. The two were both spun off from larger companies and now deliver above-average dividend yields.
As pharmaceutical companies, they provide the potential for steady growth and income that many investors seek. Each company has its own impending hurdle that may be depressing the price of its shares. In AbbVie's case, it is the patent cliff next year for its immunology drug Humira, the top-selling drug last year other than COVID-19 vaccines.
In Viatris' case, the concern is a little more nebulous. What, exactly, is the company going to be? When it first spun off as a combination of the UpJohn division from Pfizer and Mylan, it appeared to be a maker of generic drugs. Now, the company is looking to streamline its business with an eye toward more novel and profitable therapies.
In the long term, which is going to be the better dividend stock?
VTRS Financial Debt to Equity (Quarterly) data by YCharts
The case for AbbVie
AbbVie stock is up more than 18% so far this year, showing strength even amid supply chain, labor, and inflation concerns.
Everyone already knows that the company is facing a decline in revenue when biosimilar competition for Humira takes hold next year in the United States. But by now, that concern is already baked into the stock's price. Management has been optimistic that the company's newer immunology drugs, Skyrizi and Rinvoq, will eventually make up for Humira's declining sales.
In the meantime, it's important to realize the patent cliff isn't that steep as one might think.
Humira has faced biosimilar competition in Europe for four years; yet, in the third quarter, international sales were down only 25.9% over the same period last year and down 38.5% from the third quarter of 2018, the last quarter before the drug faced biosimilar competition overseas.
Humira's sales will likely taper off, and some of that dropoff will be due to in-house cannibalization as Rinvoq and Skyrizi add indications.
In the third quarter, Humira brought in $4.96 billion overall, and together Skyrizi and Rinvoq were responsible for $2.09 billion , with Skyrizi's sales up 75.4% year over year and Rinvoq's sales up 53.5% over the same period last year.
AbbVie is raising its dividend by 5% next year to $1.48 per share, the 51st consecutive year the company has raised its dividend (counting its time as part of Abbott Laboratories) and making it a Dividend King. Since AbbVie's spinoff in 2013, it has boosted its dividend by 270%. Its current yield of 3.7% is slightly more than double the S&P 500 average of 1.82%, and its payout ratio of 45% leaves plenty of room for continued growth.
The case for Viatris
Viatris' shares are down more than 19% this year. The company is in the process of shedding itself of key assets, including its biosimilars, women's health division, and its over-the-counter drugs -- and has said that other assets will be sold off as well.
In its place, the company is adding an ophthalmology franchise through the acquisitions of Oyster Point Pharma and Famy Life Sciences. The deal, announced Nov. 7, is worth $700 million to $750 million and is expected to close in the first quarter of 2023, the company said, adding that it sees the acquisitions adding at least $1 billion in sales by 2028.
With the $9 billion-plus from its divestitures, it makes sense that Viatris will look to add other profitable areas, but it isn't saying exactly what those will be yet. However, in February, Viatris CEO Michael Goettler said the company is looking at opportunities in ophthalmology, dermatology, and gastrointestinal therapies. And with its deal this month, it has already begun working on the first of those three. He also said the company is looking to maximize shareholder value, which speaks well to future dividend increases.
Viatris is profitable, but it is looking for more growth. In the third quarter, it reported revenue of $4.07 billion, down 10% year over year, but net income of $354.3 million, up 14% over the same period last year.
The company has a relatively high debt-to-equity ratio of nearly two, but it has said it is in the process of paying down its debt. Its other financial goals include a compound annual growth rate of 3% for revenue and a mid-teens rate for adjusted earnings per share between 2024 and 2028.
Counting its time as part of Pfizer, it has raised its dividend for 13 consecutive years. Since its spinoff in November 2020, it has raised its dividend once, by 9%, to $0.12 per share. Its current yield is 4.4%, and its payout ratio is very safe at 20%.
Neither is a sure thing, but...
Considering the changes surrounding Viatris' business plan, it's hard to tell what the company will look like in a few years. It may have a higher yield on its dividend and more potential growth, but AbbVie has a longer history of growing its dividend, and its plan going forward is easier to understand.
Viatris has the right idea by trimming its less-profitable operations and paying down its debt. That said, there are just too many unknowns going forward as it pivots for the stock to be a better divided pick for income investors, who tend to be more risk averse. AbbVie has its own issues with the decline of Humira on the horizon, but at least it's easier to see its path going forward.
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Jim Halley has positions in AbbVie, Pfizer, and Viatris Inc. The Motley Fool recommends Viatris Inc. 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. | Management has been optimistic that the company's newer immunology drugs, Skyrizi and Rinvoq, will eventually make up for Humira's declining sales. Its current yield of 3.7% is slightly more than double the S&P 500 average of 1.82%, and its payout ratio of 45% leaves plenty of room for continued growth. In its place, the company is adding an ophthalmology franchise through the acquisitions of Oyster Point Pharma and Famy Life Sciences. | Management has been optimistic that the company's newer immunology drugs, Skyrizi and Rinvoq, will eventually make up for Humira's declining sales. In the third quarter, Humira brought in $4.96 billion overall, and together Skyrizi and Rinvoq were responsible for $2.09 billion , with Skyrizi's sales up 75.4% year over year and Rinvoq's sales up 53.5% over the same period last year. AbbVie is raising its dividend by 5% next year to $1.48 per share, the 51st consecutive year the company has raised its dividend (counting its time as part of Abbott Laboratories) and making it a Dividend King. | Humira has faced biosimilar competition in Europe for four years; yet, in the third quarter, international sales were down only 25.9% over the same period last year and down 38.5% from the third quarter of 2018, the last quarter before the drug faced biosimilar competition overseas. In the third quarter, Humira brought in $4.96 billion overall, and together Skyrizi and Rinvoq were responsible for $2.09 billion , with Skyrizi's sales up 75.4% year over year and Rinvoq's sales up 53.5% over the same period last year. AbbVie is raising its dividend by 5% next year to $1.48 per share, the 51st consecutive year the company has raised its dividend (counting its time as part of Abbott Laboratories) and making it a Dividend King. | What, exactly, is the company going to be? The case for Viatris Viatris' shares are down more than 19% this year. Viatris is profitable, but it is looking for more growth. |
31318.0 | 2022-11-23 00:00:00 UTC | Want $10,000 in Annual Dividend Income by Retirement? Here's How Much You Should Invest in AbbVie Today. | ABT | https://www.nasdaq.com/articles/want-%2410000-in-annual-dividend-income-by-retirement-heres-how-much-you-should-invest-in | nan | nan | An easy way to boost your income is through dividend stocks. Since they pay a percentage of your investment back to you every quarter, you're collecting cash on a regular basis, and you don't have to sell your investment, either. If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts.
A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). The drugmaker behind the popular arthritis medication Humira has an excellent track record for paying and increasing dividends, and below I'll show you how much you would need to invest in the stock today to get your annual dividend income up to $10,000 by retirement.
AbbVie is an elite dividend growth stock
AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. But the real benefit you'll get from investing in the stock is from buying and holding. That's because AbbVie is also a Dividend King, meaning it has been increasing its dividend annually for more than 50 straight years (this includes when it was still part of Abbott Laboratories).
Last month, AbbVie announced a 5% increase to its quarterly dividend, paying shareholders $1.48 per share as of February 2023. That's more than double the $0.71 the company was paying at the start of 2018. That averages out to a compound annual growth rate of nearly 16%.
That high growth rate isn't sustainable, however, as is implied with AbbVie's most recent rate hike being a more modest 5%.
Here's how dividend income from AbbVie's stock could grow to $10,000
If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double.
Obviously, this makes a big assumption that every year the dividend rises by precisely 5%, which might not be all that likely. With the company continuing to grow and expand its business, there could be a mix of high and low dividend increases along the way. There's also the risk that the dividend increases could stop entirely. Although that seems unlikely today, it's important to remember that these payments are never guaranteed.
But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement:
Chart by author.
This is based on the assumption that you buy the stock for $158, which is around what it was trading for on Monday. As is always the case, the earlier you invest and the more investing years you have left before retirement, the less money you would need to invest today. The lowest investment amount, $48,385, would require 35 investing years to retirement for this strategy to be successful. Here's how dividend income from that investment would grow over the years:
Chart by author.
Unless you have a large portfolio where you can justify putting more than $48,000 into a single stock, investing in just AbbVie might not be suitable for this strategy. Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's.
A great stock to own for the long term
AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. And today, it trades at just 14 times its future profits -- the healthcare industry average is nearly 17. Overall, AbbVie is a top healthcare stock that can be a pillar of your portfolio for years.
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*Stock Advisor returns as of November 7, 2022
David Jagielski 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. | If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts. Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's. A great stock to own for the long term AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. | A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). AbbVie is an elite dividend growth stock AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | The drugmaker behind the popular arthritis medication Humira has an excellent track record for paying and increasing dividends, and below I'll show you how much you would need to invest in the stock today to get your annual dividend income up to $10,000 by retirement. Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement: Chart by author. | If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts. Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement: Chart by author. |
31319.0 | 2022-11-23 00:00:00 UTC | Could an Investment in AbbVie Give You $10,000 in Annual Dividend Income by Retirement? | ABT | https://www.nasdaq.com/articles/could-an-investment-in-abbvie-give-you-%2410000-in-annual-dividend-income-by-retirement | nan | nan | An easy way to boost your income is through dividend stocks. Since they pay a percentage of your investment back to you every quarter, you're collecting cash on a regular basis, and you don't have to sell your investment, either. If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts.
A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). The drugmaker behind the popular arthritis medication Humira has an excellent track record for paying and increasing dividends, and below I'll show you how much you would likely need to invest in the stock today to get your annual dividend income up to $10,000 by retirement.
AbbVie is an elite dividend growth stock
AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. But the real benefit you'll get from investing in the stock is from buying and holding. That's because AbbVie is also a Dividend King, meaning it has been increasing its dividend annually for more than 50 straight years (this includes when it was still part of Abbott Laboratories).
Last month, AbbVie announced a 5% increase to its quarterly dividend, paying shareholders $1.48 per share as of February 2023. That's more than double the $0.71 the company was paying at the start of 2018. That averages out to a compound annual growth rate of nearly 16%.
That high growth rate isn't sustainable, however, as is implied with AbbVie's most recent rate hike being a more modest 5%.
Here's how dividend income from AbbVie's stock could grow to $10,000
If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double.
Obviously, this makes a big assumption that every year the dividend rises by precisely 5%, which might not be all that likely. With the company continuing to grow and expand its business, there could be a mix of high and low dividend increases along the way. There's also the risk that the dividend increases could stop entirely. Although that seems unlikely today, it's important to remember that these payments are never guaranteed.
But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement:
Chart by author.
This is based on the assumption that you buy the stock for $158, which is around what it was trading for on Monday. As is always the case, the earlier you invest and the more investing years you have left before retirement, the less money you would need to invest today. The lowest investment amount, $48,385, would require 35 investing years to retirement for this strategy to be successful. Here's how dividend income from that investment would grow over the years:
Chart by author.
Unless you have a large portfolio where you can justify putting more than $48,000 into a single stock, investing in just AbbVie might not be suitable for this strategy. Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's.
A great stock to own for the long term
AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. And today, it trades at just 14 times its future profits -- the healthcare industry average is nearly 17. Overall, AbbVie is a top healthcare stock that can be a pillar of your portfolio for years.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 7, 2022
David Jagielski 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. | If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts. Instead, you might want to spread that total investment amount across multiple dividend stocks with yields and track records similar to AbbVie's. A great stock to own for the long term AbbVie is a growing business that is rewarding its shareholders as it expands, and that gives investors plenty of incentive to remain invested for not just years but decades. | A good example of a top dividend growth stock is healthcare company AbbVie (NYSE: ABBV). AbbVie is an elite dividend growth stock AbbVie's dividend yield is 3.8%, which is a full 2 percentage points higher than the S&P 500 average of 1.7%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | The drugmaker behind the popular arthritis medication Humira has an excellent track record for paying and increasing dividends, and below I'll show you how much you would likely need to invest in the stock today to get your annual dividend income up to $10,000 by retirement. Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement: Chart by author. | If you invest in dividend growth stocks, you can even see your income rise over the years as the company increases its payouts. Here's how dividend income from AbbVie's stock could grow to $10,000 If you were to hang on to AbbVie's stock and the company were to continue to raise its dividend payments by 5%, it could take 14 or more years for the payout to double. But if the company were to increase the dividend by 5% per year (on average), this is how much you would need to invest today to get to $10,000 in annual dividend income by retirement: Chart by author. |
31320.0 | 2022-11-23 00:00:00 UTC | AbbVie Boosts Its Dividend: Is the Dividend King a Buy? | ABT | https://www.nasdaq.com/articles/abbvie-boosts-its-dividend%3A-is-the-dividend-king-a-buy | nan | nan | The global economic and geopolitical environment is far from certain right now, with elevated inflation throughout the world and the ongoing conflict between Russia and Ukraine. And if there's anything that the market craves, it is certainty. This goes some way to explaining why the S&P 500 index is down about 18% so far in 2022.
While the overall market is down significantly, stocks that are viewed as safe income options have fared much better. Share prices of the pharmaceutical Dividend King AbbVie (NYSE: ABBV) are actually 16% higher in 2022.
Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? Let's dig into the company's fundamentals and valuation and see if we can answer the question.
A potent drug portfolio fueled revenue and earnings growth
Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. For context, the Chicago, Illinois-based business is the fourth-biggest pharmaceutical company in the world.
This was largely the result of the success of its mega-blockbuster (defined as at least $5 billion in annual sales) immunology drug known as Humira. The drug's net revenue was $9.3 billion in 2012. But due to higher market share and expanded indications, Humira is on pace to surpass $21 billion in net revenue in 2022.
But as important as the top-selling pre-COVID-19 product in the world has been to AbbVie, I would be remiss if I didn't point out that the company's revenue is well-balanced. In fact, AbbVie's drug portfolio consists of 11 other franchises that are on track to top $1 billion in net revenue this year. These include the next-generation immunology drugs Skyrizi and Rinvoq, which generated combined net revenue of $2.1 billion for the third quarter -- a 67.5% year-over-year growth rate.
In addition to double-digit growth in net revenue from the antipsychotic drug Vraylar and the aesthetics drug franchise Botox Cosmetic, this is how AbbVie reported $14.8 billion in net revenue during the quarter. This was good enough for a 3.3% net revenue growth rate over the year-ago period.
The drugmaker recorded $3.66 in non-GAAP (adjusted) diluted earnings per share (EPS) in the third quarter, which equates to a blistering 29.3% year-over-year growth rate. As a result of improved operating efficiency, AbbVie's non-GAAP net margin surged 880 basis points higher over the year-ago period to 44.1% for the quarter. Along with a 0.1% reduction in the company's weighted-average diluted share count to 1.8 billion, that's why the company's adjusted diluted EPS growth far exceeded its net revenue growth during the quarter.
And with dozens of indications currently in clinical development, AbbVie is positioned to quickly bounce back from Humira's U.S. patent expiration that is just over one month away.
Image source: Getty Images.
The safest dividend is the one just raised
AbbVie's 3.7% dividend yield is over double that of the S&P 500 index's 1.7% average yield. The company's tremendous drug portfolio inspires confidence that this generous dividend isn't a yield trap.
Another factor that AbbVie has working in its favor is that the dividend payout ratio will come in just above 40% in 2022. This gives the company adequate resources to expand its business, reduce debt, and execute share repurchases.
With these factors in mind, it's not surprising that AbbVie upped its payout last month. And it wouldn't be a shock if the dividend grew for many years to come.
A top-notch pharma stock at a sensible valuation
AbbVie is a superb company that arguably is capable of overcoming its looming Humira patent expiration. And the stock is priced at a compelling valuation.
AbbVie's forward price-to-earnings (P/E) ratio of 13.7 is just below the S&P 500 pharmaceutical industry average forward P/E ratio of 14.4. That's why this world-class stock is an attractive pick for this month and beyond.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 7, 2022
Kody Kester has positions in AbbVie and Abbott Laboratories. 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. | A potent drug portfolio fueled revenue and earnings growth Since its spin-off from Abbott Laboratories in 2013, AbbVie has established itself as a dominant player in the pharmaceutical industry. These include the next-generation immunology drugs Skyrizi and Rinvoq, which generated combined net revenue of $2.1 billion for the third quarter -- a 67.5% year-over-year growth rate. As a result of improved operating efficiency, AbbVie's non-GAAP net margin surged 880 basis points higher over the year-ago period to 44.1% for the quarter. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? But due to higher market share and expanded indications, Humira is on pace to surpass $21 billion in net revenue in 2022. Along with a 0.1% reduction in the company's weighted-average diluted share count to 1.8 billion, that's why the company's adjusted diluted EPS growth far exceeded its net revenue growth during the quarter. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? In addition to double-digit growth in net revenue from the antipsychotic drug Vraylar and the aesthetics drug franchise Botox Cosmetic, this is how AbbVie reported $14.8 billion in net revenue during the quarter. Along with a 0.1% reduction in the company's weighted-average diluted share count to 1.8 billion, that's why the company's adjusted diluted EPS growth far exceeded its net revenue growth during the quarter. | Hot off the 5% hike in its quarterly dividend per share to $1.48, this raises the following question: Is AbbVie still a buy for dividend growth investors after its sizable rally? But due to higher market share and expanded indications, Humira is on pace to surpass $21 billion in net revenue in 2022. That's right -- they think these 10 stocks are even better buys. |
31321.0 | 2022-11-22 00:00:00 UTC | 2 Reasons to Buy AbbVie Stock and 1 Reason to Sell | ABT | https://www.nasdaq.com/articles/2-reasons-to-buy-abbvie-stock-and-1-reason-to-sell-0 | nan | nan | As the developer of some of the world's highest-grossing medicines, AbbVie (NYSE: ABBV) stands as a pharmaceutical titan, and its stock could be a good fit for many different types of investors' portfolios. Between its huge pipeline and its history of profitable operations, everyone from passive income investors to those seeking growth may find something to like about the company.
But the next couple of years will almost certainly be bumpy for shareholders. Let's start by looking at why someone might want to sell their shares of AbbVie as it'll be a good jumping-off point for discussing the reasons why others might find this an attractive time to invest.
Reason No. 1 to sell: Humira sales will soon crater
The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. That's a problem: In the third quarter, the drug -- which treats symptoms from a host of conditions, from psoriatic arthritis to Crohn's disease -- brought in more than $5.5 billion out of the company's total revenue of $14.8 billion.
The issue is that in 2023, Humira will lose market exclusivity in the U.S., and biosimilars -- the large-molecule drug equivalent to generics -- will promptly start devouring its market share. That is expected to drag the company's top-line growth to a standstill in 2024, per management. In fact, outside the U.S., where biosimilars are already on the market, Humira sales are plummeting. In Q3, international sales fell by 25.9% to $603 million.
While the company has a solid plan to replace the revenue it will be losing as Humira recedes, it'll take some time. Management expects that by 2025, the newer drugs Skyrizi and Rinvoq, which are already on the market and have earned approval for many of the same indications as Humira, will be selling well enough to drive annualized revenue growth on the order of 7% to 9% for the remainder of the decade. Management expects sales of these two replacement medicines combined will eventually eclipse Humira's revenue at its peak, with both forecast to earn more than $7.5 billion annually.
But for risk-averse investors, that prediction might not sound sufficiently convincing. Nor is the projected amount of top-line growth going to make millionaires out of any shareholders in the near term. So, if you'd prefer not to be invested in companies that are about to face major challenges, you might feel it's best to sell AbbVie shares now, or avoid buying them in the first place.
Reason No. 1 to buy: AbbVie's valuation
The silver lining of Humira's looming demise is that it's keeping the stock priced at a cheaper valuation than it might be trading at otherwise. Investors and financial analysts don't see AbbVie's top line growing in the near term. Take a look at these forward revenue estimates by Wall Street analysts.
ABBV Revenue Estimates for Current Fiscal Year data by YCharts
Those estimates are largely in line with what management has said about the next couple of years.
Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences:
ABBV PE Ratio data by YCharts
At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. For investors with long time horizons, its valuation right now thus makes for a decent entry point. Further, its well-grounded valuation means that investors won't be taking on as much downside risk as they might be with a competitor that has already seen its shares bid up.
Reason No. 2 to buy: Its growing dividend
AbbVie's dividend is already generous, and management is set to continue boosting it. At the current share price, its forward dividend yield is above 3.8%, and the company just announced a 5% dividend hike that will take effect for its next distribution in February. That increase may not seem large, but it's only the latest in a long line of hikes.
In the years since it was spun off from Abbott Laboratories in 2013, AbbVie's management has raised its dividend each year without fail, increasing it by a total of 270%. What's more, management has explicitly and repeatedly stated that continuing to grow the dividend is a priority, which should give investors a measure of confidence that a cut is unlikely.
In terms of the passive income an investment might make you, if you buy around $3,289 of AbbVie shares, you'll receive $125 in dividends annually. That might not sound like much, but it could still be a good way to add to your income streams, and you'll likely get some share price appreciation down the line when the company starts to grow again.
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Alex Carchidi has positions in Abbott Laboratories. The Motley Fool has positions in and recommends Bristol Myers Squibb and Gilead Sciences. 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. | As the developer of some of the world's highest-grossing medicines, AbbVie (NYSE: ABBV) stands as a pharmaceutical titan, and its stock could be a good fit for many different types of investors' portfolios. Management expects that by 2025, the newer drugs Skyrizi and Rinvoq, which are already on the market and have earned approval for many of the same indications as Humira, will be selling well enough to drive annualized revenue growth on the order of 7% to 9% for the remainder of the decade. Management expects sales of these two replacement medicines combined will eventually eclipse Humira's revenue at its peak, with both forecast to earn more than $7.5 billion annually. | ABBV Revenue Estimates for Current Fiscal Year data by YCharts Those estimates are largely in line with what management has said about the next couple of years. Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences: ABBV PE Ratio data by YCharts At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. The Motley Fool has positions in and recommends Bristol Myers Squibb and Gilead Sciences. | 1 to sell: Humira sales will soon crater The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. 1 to buy: AbbVie's valuation The silver lining of Humira's looming demise is that it's keeping the stock priced at a cheaper valuation than it might be trading at otherwise. Next, examine this chart tracking the price-to-earnings ratios of AbbVie and some of its major competitors, such as Johnson & Johnson, Bristol Myers Squibb, and Gilead Sciences: ABBV PE Ratio data by YCharts At the moment, the stock isn't exactly a bargain buy, but it does compare favorably to its peers. | 1 to sell: Humira sales will soon crater The biggest reason to sell AbbVie right now is that its star moneymaker, the immunosuppressive drug Humira, is going to become a lot less lucrative starting next year. Investors and financial analysts don't see AbbVie's top line growing in the near term. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
31322.0 | 2022-11-22 00:00:00 UTC | Good Stocks To Invest In Now? 3 Dividend Aristocrats Stocks For Your List | ABT | https://www.nasdaq.com/articles/good-stocks-to-invest-in-now-3-dividend-aristocrats-stocks-for-your-list | nan | nan | Dividend Aristocrats are a group of companies that have increased their dividend payments for at least 25 consecutive years. This accomplishment is a testament to the financial strength and stability of these businesses, and it provides income investors with a reliable source of cash flow. Dividend Aristocrats tend to be large, well-established companies with diverse product lines and global reach.
Many of these businesses are leaders in their respective industries, and they have demonstrated a commitment to shareholder value. As a result, Dividend Aristocrats offer both growth potential and income stability, making them an attractive investment option for many investors. Considering this, here are three top dividend stocks to watch in the stock market today.
Dividend Aristocrats Stocks To Watch Now
3M Company (NYSE: MMM)
Cardinal Health Inc. (NYSE: CAH)
Abbott Laboratories (NYSE: ABT)
1. 3M Co. (MMM Stock)
Kicking us off, 3M Company (MMM) is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window film, paint protection film, dental and more. As of today, MMM has an annual dividend yield of 4.67%.
Earlier this month, 3M announced its Board of Directors has declared its Q4 2022 quarterly dividend on common stock of $1.49 per share. As a result of this dividend, 3M has paid dividends to its shareholders for more than 100 years without any disruption.
Moving along, as of November 18, 2022, MMM has a PE ratio of 11.04. Meanwhile, in the last month of trading, shares of 3M stock have recovered 7.81%. As of Monday’s closing bell, MMM stock closed the day trading at $127.63 a share.
Source: TD Ameritrade TOS
[Read More] Most Active Stocks To Buy Today? 4 Metaverse Stocks To Watch
2. Cardinal Health (CAH Stock)
Next, let’s turn our attention to Cardinal Health (CAH). In brief, Cardinal Health is one of the largest providers of healthcare products and services. The company provides a broad range of products and services that meet the needs of healthcare providers and patients. For example, the company has a portfolio that includes medical supplies, pharmaceuticals, diagnostic testing, and lab equipment. Currently, CAH has an annual dividend yield of 2.55%.
Just this month, the company announced its Board of Directors approved a quarterly dividend of $0.4957 per common stock. In addition, the dividend will be payable on January 15, 2023, to shareholders of record at the close of business on January 3, 2023.
Also this month, Cardinal Health reported a beat for its Q1 2023 financial results. Specifically, Cardinal Health reported 1st quarter 2023 earnings of $1.20 per share, along with revenue of $49.6 billion.
Meanwhile, shares of CAH stock are up 49.43% so far year-to-date, outperforming the broader markets. On Monday, Cardinal Health stock closed the day flat, trading at $77.72 a share.
Source: TD Ameritrade TOS
[Read More] 3 REIT Stocks To Watch In November 2022
3. Abbott Laboratories (ABT Stock)
Topping off this list we have Abbott Laboratories (ABT). For starters, Abbot Laboratories is a global healthcare company. The company develops and manufactures a broad range of medical products, including diagnostic tests, medical devices, nutrition products, and branded generic pharmaceuticals. What’s more, the company currently offers its shareholders an annual dividend yield of 1.81%.
Last month, Abbott Laboratories reported better-than-expected Q3 2022 financial results. In the report, the company announced an EPS of $1.15 and revenue of $10.4 billion for the 3rd quarter of 2022. This is versus analysts’ consensus estimates for the quarter was an EPS of $0.90 and revenue estimates of $9.6 billion. Additionally, ABT said it expects FY 2022 earnings of $5.17 to $5.23 per share.
Separate from that, in the last month of trading Abbott Laboratories has rebounded 5.69%. Going into Tuesday morning’s trading session, shares of ABT stock are set to open at around $103.85 a 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. | Dividend Aristocrats Stocks To Watch Now 3M Company (NYSE: MMM) Cardinal Health Inc. (NYSE: CAH) Abbott Laboratories (NYSE: ABT) 1. Abbott Laboratories (ABT Stock) Topping off this list we have Abbott Laboratories (ABT). Additionally, ABT said it expects FY 2022 earnings of $5.17 to $5.23 per share. | Dividend Aristocrats Stocks To Watch Now 3M Company (NYSE: MMM) Cardinal Health Inc. (NYSE: CAH) Abbott Laboratories (NYSE: ABT) 1. Abbott Laboratories (ABT Stock) Topping off this list we have Abbott Laboratories (ABT). Additionally, ABT said it expects FY 2022 earnings of $5.17 to $5.23 per share. | Dividend Aristocrats Stocks To Watch Now 3M Company (NYSE: MMM) Cardinal Health Inc. (NYSE: CAH) Abbott Laboratories (NYSE: ABT) 1. Abbott Laboratories (ABT Stock) Topping off this list we have Abbott Laboratories (ABT). Additionally, ABT said it expects FY 2022 earnings of $5.17 to $5.23 per share. | Dividend Aristocrats Stocks To Watch Now 3M Company (NYSE: MMM) Cardinal Health Inc. (NYSE: CAH) Abbott Laboratories (NYSE: ABT) 1. Abbott Laboratories (ABT Stock) Topping off this list we have Abbott Laboratories (ABT). Additionally, ABT said it expects FY 2022 earnings of $5.17 to $5.23 per share. |
31323.0 | 2022-11-22 00:00:00 UTC | Want Passive Income in 2023? Buy These Dividend Kings | ABT | https://www.nasdaq.com/articles/want-passive-income-in-2023-buy-these-dividend-kings | nan | nan | Today's market is tough. And your portfolio may be suffering. But if you invest in dividend stocks, the picture may begin to look brighter. These companies pay you annually -- just for owning their shares. So, in good times and in bad, you can rely on this passive income to lift the value of your holdings.
Where do you find the best dividend stocks? The list of Dividend Kings is a good place to start. These companies have increased their dividends for at least the past 50 years. This shows dividend growth is important to them. And that's great news for you as an investor.
Let's check out three stocks that could be your ticket to solid passive income in 2023.
1. AbbVie
AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Since that time, AbbVie has raised its dividend by more than 250%.
Today, Abbott pays investors $5.92 per share annually. The dividend yield is 3.82%. This is higher than the industry average of about 2%. So, investors can enjoy a generous dividend -- and likely watch it grow over time.
But you'll want to own AbbVie for more than its dividend. This pharmaceutical company is set to become the biggest by prescription drug market share by 2026, according to Evaluate. AbbVie sells treatments across a variety of areas, including immunology, neuroscience, and aesthetics.
The one dark spot for AbbVie right now is upcoming competition for its blockbuster immunology drug Humira. That's set to happen in the U.S. next year. But AbbVie expects its two newer immunology drugs, together, to eventually top Humira's peak sales. And they're on track to do so, the company said in the most recent earnings report.
AbbVie shares trade for about 20 times trailing-12-month earnings. That's down from more than 40 a year ago. Even considering the Humira situation, this looks like a bargain considering AbbVie's product portfolio and dividend strength.
2. Abbott
Abbott and AbbVie share a common history -- and that includes prioritizing dividends. Abbott, a diversified healthcare company, has reported 395 straight quarterly dividends since 1924. And it's increased the dividend for 50 years.
Abbott pays an annual dividend of $1.88 at a yield of 1.81%. The company's history of dividend growth and earnings track record are reason to be optimistic about Abbott's dividend over the long term.
And speaking of earnings, they should grow over time too. Abbott includes four units: diagnostics, medical devices, nutrition, and established pharmaceuticals. This diversification allows it to more easily weather any storm.
For instance, a temporary manufacturing shutdown at one of its baby formula facilities hurt the nutrition business this year. But gains in the three other businesses lifted revenue. And as a result, Abbott has increased its annual 2022 earnings-per-share guidance.
Today, Abbott shares trade for 23 times trailing-12-month earnings. That's compared to more than 45 prior to the pandemic -- when Abbott hadn't yet become a coronavirus testing giant. This looks like a good time to get in on Abbott for passive income and long-term earnings prospects.
3. Target
When you shop at Target, (NYSE: TGT) you may not think about the retailer actually putting money in your wallet. But if you invest in the shares, over time, it will. Target pays an annual dividend of $4.32 at a yield of 2.67%. So, if you hold 1,000 shares, Target will put $4,320 in your pocket for the year.
This sounds great. But some investors may not be excited about Target at the moment. The company disappointed the market when it said its comparable sales growth rate slowed from more than 3% to less than 1% in a matter of weeks just recently. The reason? Higher inflation is hurting shoppers' buying power.
But it's important to consider two things. First, as tough as things are right now, this economic situation is temporary. And strong companies like Target can make it through -- and flourish afterward.
Second, Target has made earnings progress that demonstrates its ability to keep customers coming back. For example, the company said traffic and basket size still are increasing. And Target gained market share across its product categories.
All of this means there's reason to be confident about Target over time. Trading at 18 times trailing-12-month earnings -- down from more than 25 last year -- the stock looks like a buy.
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Adria Cimino has positions in Target. The Motley Fool has positions in and recommends Target. 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. | AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). But AbbVie expects its two newer immunology drugs, together, to eventually top Humira's peak sales. For instance, a temporary manufacturing shutdown at one of its baby formula facilities hurt the nutrition business this year. | AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Today, Abbott pays investors $5.92 per share annually. The company's history of dividend growth and earnings track record are reason to be optimistic about Abbott's dividend over the long term. | AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). Abbott Abbott and AbbVie share a common history -- and that includes prioritizing dividends. The company's history of dividend growth and earnings track record are reason to be optimistic about Abbott's dividend over the long term. | AbbVie AbbVie (NYSE: ABBV) launched back in 2013 as a spinoff of Abbott Laboratories (NYSE: ABT). But you'll want to own AbbVie for more than its dividend. And it's increased the dividend for 50 years. |
31324.0 | 2022-11-18 00:00:00 UTC | Abbott (ABT) Up 7.7% Since Last Earnings Report: Can It Continue? | ABT | https://www.nasdaq.com/articles/abbott-abt-up-7.7-since-last-earnings-report%3A-can-it-continue | nan | nan | It has been about a month since the last earnings report for Abbott (ABT). Shares have added about 7.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Abbott due for a pullback? 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 Q3 Earnings and Revenues Beat Estimates
Abbott reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. The adjusted figure however declined from the prior-year quarter’s levels by 17.9%.
The quarter’s adjustments include certain non-recurring intangible amortization expenses.
GAAP earnings per share came in at 81 cents, a 30.8% plunge year on year.
Third-quarter worldwide sales of $10.41 billion were down 4.7% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 8.7%.
On an organic basis (excluding the impact of foreign exchange), sales improved 1.3% year over year in the reported quarter.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the third quarter, Established Pharmaceuticals sales improved 4.9% on a reported basis (up 12.2% on an organic basis) to $1.33 billion. Organic sales in key emerging markets improved 13% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Vietnam and several therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management.
Medical Devices business sales dropped 0.5% on a reported basis (up 6.4% on an organic basis) to $3.62 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.
Diabetes Care reported organic growth of 12.9% year over year, led by FreeStyle Libre, which contributed $1.0 billion of revenues in the reported quarter. Heart Failure sales improved 2.3% organically. Meanwhile, the Rhythm Management business recorded an organic sales decline of 0.8% in the quarter under review. Electrophysiology and Structural Heart recorded organic growth of 3.8% and 15.1%, respectively, in the quarter under review.
Nutrition sales were down 14.9% year over year on a reported basis (down 10.3% on an organic basis) to $1.79 billion. Pediatric Nutrition sales registered a 22% slump on an organic basis. The downside can be attributed to a manufacturing shutdown in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility. International Pediatric sales were negatively impacted by challenging market conditions in China.
Adult Nutrition sales improved 2.4% 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 6.2% year over year on a reported basis (down 0.6% on an organic basis) to $3.67 billion. Core Laboratory Diagnostics sales were up 2.2% organically. Meanwhile, Molecular Diagnostics declined 44.3% on an organic basis. Rapid Diagnostics sales rose 4.9% on an organic basis, whereas Point of Care Diagnostics sales fell 4% organically.
Margins
Gross profit for the reported quarter fell 11.1% year over year to $5.78 billion. Gross margin contracted 399 basis points (bps) to 55.5%.
Selling, general and administrative expenses were down 1.3% year over year to $2.73 billion. Research and development expenses rose 16.4% year over year to $782 million.
The company reported an adjusted operating profit of $2.27 billion for the quarter under review, down 26% year over year. Adjusted operating margin, too, contracted 627 bps to 21.8%.
2022 Guidance
Abbott has raised its 2022 EPS guidance.
Full-year adjusted earnings (excluding specified items of $1.42 per share) are expected to be in the range of $5.17 to $5.23 (compared with the earlier guidance of at least $4.90). The current Zacks Consensus Estimate is pegged at $5.00.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -5.5% due to these changes.
VGM Scores
At this time, 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 top 40% 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). Abbott Laboratories (ABT): Free Stock Analysis Report 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). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q3 Earnings and Revenues Beat Estimates Abbott reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. | It has been about a month since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q3 Earnings and Revenues Beat Estimates Abbott reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. | It has been about a month since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q3 Earnings and Revenues Beat Estimates Abbott reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. |
31325.0 | 2022-11-17 00:00:00 UTC | 3 Reasons to Retain Abbott (ABT) Stock in Your Portfolio | ABT | https://www.nasdaq.com/articles/3-reasons-to-retain-abbott-abt-stock-in-your-portfolio | nan | nan | Abbott Laboratories ABT is well poised for growth in the coming quarters, courtesy of its solid Diabetes business. The optimism led by the company's solid third-quarter 2022 performance, along with growing momentum in its Established Pharmaceuticals Division (EPD) business, is expected to contribute further. However, forex woes and Nutrition Product recall impeding growth are concerning.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 18.8% compared with 46.8% decline of the industry and 17.4% fall of the S&P 500 composite.
This renowned provider of a diversified line of healthcare products has a market capitalization of $180.65 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 21.8%.
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Let’s delve deeper.
Progress With Diabetes Business: We are optimistic about Abbott’s diabetes business. This business achieved robust organic sales growth in the third quarter of 2022, led by strong growth in FreeStyle Libre. In the quarter, sales of FreeStyle Libre exceeded $1 billion. Abbott’s user base expanded to approximately 4.5 million users globally. 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.
EPD Business Gains Momentum: Abbott’s EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest-growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America. The company recently noted that banking on the successful execution of its Branded Generic operating model, EPD is well-positioned for sustained growth in many of these growing pharmaceutical markets.
Strong Q3 Results: Abbott’s better-than-expected third-quarter 2022 results buoy optimism. Within the company’s Diagnostics business, excluding COVID testing revenues, sales growth of routine diagnostic tests in the third quarter went up globally. This was fueled by the continued global rollout of the Alinity instrument for immunoassay, clinical chemistry and molecular testing. In Medical Device, global sales growth was also strong. In the United States, sales growth was led by strong double-digit growth in Electrophysiology, Structural Heart and Diabetes Care.
Downsides
Foreign Exchange Translation Impacts Sales: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the Euro and some other developed market currencies has been constantly hampering the company’s performance in the international markets.
Nutrition Product Recall Impedes Growth: Within Abbott’s Nutrition business, in the third quarter, worldwide Nutrition sales were down on an organic basis, with a significant 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 positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 4.4% north to $5.21.
The Zacks Consensus Estimate for the company’s fourth-quarter 2022 revenues is pegged at $9.47 billion, suggesting a 17.4% 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, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
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 0.9% against the industry’s 36.6% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 23.6% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has gained 21.8% against the industry’s 28.8% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has gained 61.1% against the industry’s 15.2% 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 solid Diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report The company recently noted that banking on the successful execution of its Branded Generic operating model, EPD is well-positioned for sustained growth in many of these growing pharmaceutical markets. | Abbott Laboratories ABT is well poised for growth in the coming quarters, courtesy of its solid Diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report Nutrition Product Recall Impedes Growth: Within Abbott’s Nutrition business, in the third quarter, worldwide Nutrition sales were down on an organic basis, with a significant slump in Pediatric Nutrition sales. | Abbott Laboratories ABT is well poised for growth in the coming quarters, courtesy of its solid Diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report This business achieved robust organic sales growth in the third 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 solid Diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report This business achieved robust organic sales growth in the third quarter of 2022, led by strong growth in FreeStyle Libre. |
31326.0 | 2022-11-17 00:00:00 UTC | 2 Reasons to Buy Abbott Labs and 1 Reason to Sell | ABT | https://www.nasdaq.com/articles/2-reasons-to-buy-abbott-labs-and-1-reason-to-sell | nan | nan | Abbott Laboratories (NYSE: ABT) is a huge healthcare company with more than 130,000 employees that operates in more than 160 countries. The company has been around 130 years, so it's a familiar name to many investors.
To me, it's a stock with a nice blend of growth and value, even though, for the year, its shares are down more than 26%. Because of its size and four separate segments -- Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals -- the company has a built-in diversification that allows it to thrive, even in difficult financial times.
Here are two reasons to buy the stock and one reason to sell it.
Consistent revenue and dividend growth
Abbott is on track to increase annual revenue for the 10th consecutive year. Over the past decade, the company has increased revenue 226% and earnings per share (EPS) by 22.7%. Medical Devices and Diagnostics brought in $3.6 billion and $3.7 billion in revenue, respectively, in the third quarter, while Nutrition and Established Pharmaceuticals brought in $1.8 billion and $1.3 billion, respectively.
Through nine months, the company reported $33.6 billion in revenue, up 6.2%. The biggest growth came in Diagnostics, up 18.9% over the same period in 2021, including 46.6% in the United States.
Abbott is a Dividend King that has increased its quarterly dividend for 50 consecutive years, including a 4.4% raise this year to $0.47 per share. The dividend's yield is 1.81%, about average for the S&P 500, but there's plenty of room for continued growth as its payout ratio is only 38.4%.
Data by YCharts.
The FreeStyle Libre 3 is a game changer
Abbott sells hundreds of products, so singling out just one is unusual. The company's latest version of its continuous glucose monitoring system (CGM) for diabetic care, the FreeStyle Libre 3, has been a big success because it is so small. CGMs, also known as blood sugar monitors, keep track of blood glucose 24 hours a day to allow diabetes patients to better manage their disease.
The level of sales in diabetic care is expected to grow because of our aging population and its increasingly sedentary lifestyle. According to a report by Strategic Market Research, the global CGM market was worth $6.13 billion in 2021 and is expected to have a compound annual growth rate of 11.5% between now and 2030, reaching a $16.33 billion market by that time.
At about the size of two stacked pennies, Abbott's FreeStyle Libre 3 is the smallest CGM sensor on the market. That's a big deal because it allows diabetes patients to wear the devices discreetly and without interfering with other daily activities. The information the sensors gather is downloaded to an app on users' cellphones. The company has marketed FreeStyle Libre systems for years, but the Libre 3 was just approved for use in the U.S. by diabetics age 4 and older by the U.S. Food and Drug Administration in May.
Through nine months, Abbott's diabetes care sales, which have been driven by the release of the new device, were nearly $3.5 billion, up 34.7% in the U.S. and 10.4% overall. Once supply chain issues lessen overseas, the company expects the device to do well there as well.
The FreeStyle Libre 3's users appear to be very loyal, and sensors need to be replaced every 14 days, so that means consistent revenue for Abbott.
The bottom is falling out of the company's COVID-19 testing sales
Last year, Abbott said its COVID-19 testing sales were approximately $7.7 billion. That's a lot of revenue to replace, and it will take a while for the healthcare company, even with all of its diversity, to do so. In the third quarter, it did only $1.7 billion in COVID-19 testing sales, and the company said it expects only $500,000 in COVID-19 tests in the fourth quarter.
That means that next year, Abbott's quarterly sales could pale in comparison to this year's, so the stock could likely fall out of favor with investors. In the long run, it has the strength to replace that revenue, but 2023 may be a rough year for Abbott investors.
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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 (NYSE: ABT) is a huge healthcare company with more than 130,000 employees that operates in more than 160 countries. Because of its size and four separate segments -- Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals -- the company has a built-in diversification that allows it to thrive, even in difficult financial times. The company's latest version of its continuous glucose monitoring system (CGM) for diabetic care, the FreeStyle Libre 3, has been a big success because it is so small. | Abbott Laboratories (NYSE: ABT) is a huge healthcare company with more than 130,000 employees that operates in more than 160 countries. Because of its size and four separate segments -- Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals -- the company has a built-in diversification that allows it to thrive, even in difficult financial times. Consistent revenue and dividend growth Abbott is on track to increase annual revenue for the 10th consecutive year. | Abbott Laboratories (NYSE: ABT) is a huge healthcare company with more than 130,000 employees that operates in more than 160 countries. Medical Devices and Diagnostics brought in $3.6 billion and $3.7 billion in revenue, respectively, in the third quarter, while Nutrition and Established Pharmaceuticals brought in $1.8 billion and $1.3 billion, respectively. The bottom is falling out of the company's COVID-19 testing sales Last year, Abbott said its COVID-19 testing sales were approximately $7.7 billion. | Abbott Laboratories (NYSE: ABT) is a huge healthcare company with more than 130,000 employees that operates in more than 160 countries. Abbott is a Dividend King that has increased its quarterly dividend for 50 consecutive years, including a 4.4% raise this year to $0.47 per share. The FreeStyle Libre 3's users appear to be very loyal, and sensors need to be replaced every 14 days, so that means consistent revenue for Abbott. |
31327.0 | 2022-11-17 00:00:00 UTC | 2 Stocks Down 75% and 26% to Buy Right Now | ABT | https://www.nasdaq.com/articles/2-stocks-down-75-and-26-to-buy-right-now | nan | nan | If you're looking to stock up on stocks with long-term potential, now is a great time. That's because so many promising players have seen their prices drop this year. And that's left them at very interesting valuations. Companies with solid earnings prospects and those with an extra something like a growing dividend could fare well over time.
So, where to look for such players? Healthcare is a good start. Here, Motley Fool contributors Keith Speights and Adria Cimino share two stocks that have dropped by double digits -- and make great buys today. Teladoc Health (NYSE: TDOC) is a leader in the high-growth telemedicine market. And Abbott Laboratories (NYSE: ABT) is a diversified healthcare company that's awarded investors with dividend growth year after year.
A diamond in the rough
Keith Speights (Teladoc Health): I have bad news, good news, and great news about Teladoc Health. The bad news is that the company's shares are down close to 75% year to date and nearly 90% below its all-time high. The good news is that the telehealth stock has picked up positive momentum in recent weeks, soaring more than 45% over the last month.
Now for the great news: Teladoc should have a lot more room to run. Why? For one thing, the company is making pretty good progress toward achieving profitability.
The main reason behind Teladoc's recent surge is that the company delivered surprisingly good third-quarter results. Sure, the virtual care provider remains unprofitable. However, Teladoc's bottom line is moving in the right direction. And the company anticipates continued improvement in the fourth quarter.
More importantly, Teladoc still has a massive market opportunity. Less than one-third of total U.S. covered lives currently have access to the company's virtual care products. Teladoc also has significant opportunities within its customer base to cross-sell other products.
There's plenty of competition in the virtual care market. But Teladoc stands as the clear leader with a larger customer base and a broader array of products and services. I think this beaten-down stock is a great pick for investors looking for a diamond in the rough.
An earnings track record and dividend strength
Adria Cimino (Abbott Laboratories): Abbott's strength is in its diversification. The healthcare company has four business units: medical devices, diagnostics, nutrition, and established pharmaceuticals. This range of businesses helps Abbott maintain earnings growth in various market situations.
For example, Abbott's suite of coronavirus tests has driven gains in diagnostics during the pandemic. At the same time, medical device sales slipped during certain phases of the crisis as hospitals postponed surgeries. Today, medical device sales are rising again -- and can keep revenue climbing even if coronavirus testing falls.
Speaking of medical devices, this business traditionally has been Abbott's biggest revenue driver. This is led by diabetes care. Abbott sells one of the world's leading continuous glucose monitoring systems. The FreeStyle Libre brought in $1 billion in the third quarter alone -- and sales growth of the device in the U.S. topped 40%.
Abbott has a track record of growing earnings, free cash flow, and return on invested capital over time. And the company, even in today's difficult economic environment, recently raised its full-year earnings-per-share guidance.
All of this sounds great. But the picture gets even better. Abbott belongs to the elite group known as Dividend Kings. These companies have raised their dividend for at least 50 consecutive years. This shows dividend growth is important to Abbott. So there's reason to be optimistic Abbott will continue increasing its dividend over time. And that equals passive income for you as an investor.
Now, let's talk price. Abbott shares are trading at around 19 times forward earnings estimates. That's compared to more than 27 earlier this year. At the same time, sales over the past nine months climbed in three out of four of Abbott's business. And the company continues to launch new products that should drive future earnings growth. All of this means that Abbott's shares -- down 26% this year -- look like a bargain at today's level.
Is now really the right time to buy?
It may seem scary to jump into the market when stocks have fallen so much. But it's important to remember that bear markets and economic troubles don't last forever. Strong companies can weather the storm -- and thrive down the road.
If you invest when the market is down, you have the opportunity to get in on some of these potential success stories at an excellent price. So right now is the perfect time to check out Teladoc, Abbott, and other beaten-down stocks that may boost your portfolio over time.
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Adria Cimino has no position in any of the stocks mentioned. Keith Speights has positions in Teladoc Health. The Motley Fool has positions in and recommends Teladoc 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. | And Abbott Laboratories (NYSE: ABT) is a diversified healthcare company that's awarded investors with dividend growth year after year. Here, Motley Fool contributors Keith Speights and Adria Cimino share two stocks that have dropped by double digits -- and make great buys today. But Teladoc stands as the clear leader with a larger customer base and a broader array of products and services. | And Abbott Laboratories (NYSE: ABT) is a diversified healthcare company that's awarded investors with dividend growth year after year. Here, Motley Fool contributors Keith Speights and Adria Cimino share two stocks that have dropped by double digits -- and make great buys today. A diamond in the rough Keith Speights (Teladoc Health): I have bad news, good news, and great news about Teladoc Health. | And Abbott Laboratories (NYSE: ABT) is a diversified healthcare company that's awarded investors with dividend growth year after year. A diamond in the rough Keith Speights (Teladoc Health): I have bad news, good news, and great news about Teladoc Health. So right now is the perfect time to check out Teladoc, Abbott, and other beaten-down stocks that may boost your portfolio over time. | And Abbott Laboratories (NYSE: ABT) is a diversified healthcare company that's awarded investors with dividend growth year after year. Here, Motley Fool contributors Keith Speights and Adria Cimino share two stocks that have dropped by double digits -- and make great buys today. So there's reason to be optimistic Abbott will continue increasing its dividend over time. |
31328.0 | 2022-11-16 00:00:00 UTC | Shortages a Boon for These 2 Medical Device Stocks | ABT | https://www.nasdaq.com/articles/shortages-a-boon-for-these-2-medical-device-stocks | nan | nan | Supply-chain tentacles have held the medical device-making industry in a tight grip. However, this may present upside potential for industry players like Baxter International (NYSE:BAX) and Abbott Labs (NYSE:ABT).
The pandemic saw large numbers of patients deferring key medical and surgical procedures due to the lockdowns and the scare of visiting hospitals, which were the hubs of the virus. Now, medical-device manufacturers are struggling to meet the inflated pent-up demand. The sporadic resurgences of COVID cases in the U.S. have kept up the demand for medical devices as well.
The journey from glut to shortage of medical devices has been accelerated by the supply-chain snarls. Moreover, inflated costs have been making it difficult for companies to procure electronic chips to run the devices, even if they overcame the supply hurdles.
The burgeoning demand and higher costs are forcing medical device makers to raise product prices and look for other sources of supply of raw materials. Although this may look like a problem at first glance, this is exactly where the ray of hope for recovering the profit shrinkages lies.
BAX and ABT are making maximum use of the surging demand and increased prices.
Baxter International (BAX)
Higher demand for acute therapy devices to treat the rise in COVID-19 cases, as well as continuous renal replacement therapies and devices, are driving Baxter’s Acute Therapies business. The company’s robust product portfolio and pipeline of therapies and products are also a positive.
With increases in the prices of medical devices, the company can recover some of the losses till the run lasts. Also, despite being a considerably leveraged company, Baxter has enough cash to finance its short-term obligations.
The company’s shares have declined by 36% this year thus far, and the price-to-sales ratio is hovering around 2%, making the stock potentially attractive to those who have faith in the stock.
Is BAX Stock a Buy, According to Analysts?
Wall Street is cautiously optimistic about BAX stock, with a Moderate Buy rating based on seven Buys, two Holds, and one Sell. The average price target on Baxter stock is $63.50, indicating 15.6% upside potential from current levels.
Abbott Labs (ABT)
One of the most popular products of medical device maker Abbott Labs is its Libre blood-sugar monitoring device. However, Bernstein analyst Lee Hambright pointed out that sales in several emerging markets had been affected due to the company being unable to get the desired volume of semiconductors for first-generation Libre devices.
Nonetheless, Abbott’s FreeStyle Libre exceeded $1 billion in revenues in the third quarter. Moreover, the company also expects supply constraints to moderate over the next couple of months.
Is ABT a Good Stock to Buy, According to Analysts?
Abbott enjoys a Strong Buy consensus rating on Wall Street, based on 10 Buys and three Holds. The stock price is expected to increase by 12% over the next year to arrive at $116.08.
The Takeaway
With every problem, new solutions are discovered. Demand for medical devices is strong, creating upside potential. People will keep needing surgeries, medical procedures, and tests. This can alleviate some of the cost pressures of companies in this field, adding to the upside potential.
Also, older semiconductors are difficult to procure even with eased chip shortages, which is a problem when the demand for older device models is high. To bridge this gap, many companies are investing in R&D to develop the same models with new chips, as newer semiconductors are more abundant.
These will not only help the industry narrow the gap between supply and demand but also lead to improved margins and, subsequently, value recovery.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, this may present upside potential for industry players like Baxter International (NYSE:BAX) and Abbott Labs (NYSE:ABT). BAX and ABT are making maximum use of the surging demand and increased prices. Abbott Labs (ABT) One of the most popular products of medical device maker Abbott Labs is its Libre blood-sugar monitoring device. | However, this may present upside potential for industry players like Baxter International (NYSE:BAX) and Abbott Labs (NYSE:ABT). BAX and ABT are making maximum use of the surging demand and increased prices. Abbott Labs (ABT) One of the most popular products of medical device maker Abbott Labs is its Libre blood-sugar monitoring device. | Abbott Labs (ABT) One of the most popular products of medical device maker Abbott Labs is its Libre blood-sugar monitoring device. However, this may present upside potential for industry players like Baxter International (NYSE:BAX) and Abbott Labs (NYSE:ABT). BAX and ABT are making maximum use of the surging demand and increased prices. | Abbott Labs (ABT) One of the most popular products of medical device maker Abbott Labs is its Libre blood-sugar monitoring device. However, this may present upside potential for industry players like Baxter International (NYSE:BAX) and Abbott Labs (NYSE:ABT). BAX and ABT are making maximum use of the surging demand and increased prices. |
31329.0 | 2022-11-16 00:00:00 UTC | VTV, CVX, ABT, NEE: Large Inflows Detected at ETF | ABT | https://www.nasdaq.com/articles/vtv-cvx-abt-nee%3A-large-inflows-detected-at-etf | 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 Value ETF (Symbol: VTV) where we have detected an approximate $1.2 billion dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 731,450,766 to 739,581,733). Among the largest underlying components of VTV, in trading today Chevron Corporation (Symbol: CVX) is off about 0.5%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and NextEra Energy Inc (Symbol: NEE) is higher by about 1.6%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average:
Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $141.79. 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 had notable inflows »
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Technology Stocks Hedge Funds Are Selling
Top Ten Hedge Funds Holding SCIF
Institutional Holders of LAIX
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 VTV, in trading today Chevron Corporation (Symbol: CVX) is off about 0.5%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and NextEra Energy Inc (Symbol: NEE) is higher by about 1.6%. 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 VTV, in trading today Chevron Corporation (Symbol: CVX) is off about 0.5%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and NextEra Energy Inc (Symbol: NEE) is higher by about 1.6%. For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $141.79. 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 VTV, in trading today Chevron Corporation (Symbol: CVX) is off about 0.5%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and NextEra Energy Inc (Symbol: NEE) is higher by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $1.2 billion dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 731,450,766 to 739,581,733). For a complete list of holdings, visit the VTV Holdings page » The chart below shows the one year price performance of VTV, versus its 200 day moving average: Looking at the chart above, VTV's low point in its 52 week range is $122.54 per share, with $151.89 as the 52 week high point — that compares with a last trade of $141.79. | Among the largest underlying components of VTV, in trading today Chevron Corporation (Symbol: CVX) is off about 0.5%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and NextEra Energy Inc (Symbol: NEE) is higher by about 1.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Value ETF (Symbol: VTV) where we have detected an approximate $1.2 billion dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 731,450,766 to 739,581,733). 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''. |
31330.0 | 2022-11-15 00:00:00 UTC | FDA to review baby formula production rules to prevent bacterial illness | ABT | https://www.nasdaq.com/articles/fda-to-review-baby-formula-production-rules-to-prevent-bacterial-illness | nan | nan | Nov 15 (Reuters) - The U.S. health regulator said on Tuesday it would review guidance and rules about manufacturing infant formula as part of its strategy to prevent bacterial illness similar to Abbott Laboratories' ABT.N products this year.
The Food and Drug Administration will also consider whether to establish a dedicated group of investigators and realign staff across two of its divisions to better support regulatory oversight of infant formula, among other measures, it said.
The FDA's statement follows a major shortage of baby formula earlier this year due to a shutdown at Abbott's plant in Michigan after complaints of infection by a bacteria called cronobacter sakazakii.
The plant shutdown and the recall of Abbott infant formula products deepened a supply shortage and sent parents in the United States scrambling. Abbott's plant was restarted in July.
While the bacterial infection is considered rare and is not reportable in most states, it can be deadly in newborns. Abbott's products were recalled following reports of four cases and two deaths.
(Reporting by Leroy Leo in Bengaluru; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nov 15 (Reuters) - The U.S. health regulator said on Tuesday it would review guidance and rules about manufacturing infant formula as part of its strategy to prevent bacterial illness similar to Abbott Laboratories' ABT.N products this year. The Food and Drug Administration will also consider whether to establish a dedicated group of investigators and realign staff across two of its divisions to better support regulatory oversight of infant formula, among other measures, it said. The FDA's statement follows a major shortage of baby formula earlier this year due to a shutdown at Abbott's plant in Michigan after complaints of infection by a bacteria called cronobacter sakazakii. | Nov 15 (Reuters) - The U.S. health regulator said on Tuesday it would review guidance and rules about manufacturing infant formula as part of its strategy to prevent bacterial illness similar to Abbott Laboratories' ABT.N products this year. The FDA's statement follows a major shortage of baby formula earlier this year due to a shutdown at Abbott's plant in Michigan after complaints of infection by a bacteria called cronobacter sakazakii. The plant shutdown and the recall of Abbott infant formula products deepened a supply shortage and sent parents in the United States scrambling. | Nov 15 (Reuters) - The U.S. health regulator said on Tuesday it would review guidance and rules about manufacturing infant formula as part of its strategy to prevent bacterial illness similar to Abbott Laboratories' ABT.N products this year. The FDA's statement follows a major shortage of baby formula earlier this year due to a shutdown at Abbott's plant in Michigan after complaints of infection by a bacteria called cronobacter sakazakii. The plant shutdown and the recall of Abbott infant formula products deepened a supply shortage and sent parents in the United States scrambling. | Nov 15 (Reuters) - The U.S. health regulator said on Tuesday it would review guidance and rules about manufacturing infant formula as part of its strategy to prevent bacterial illness similar to Abbott Laboratories' ABT.N products this year. The Food and Drug Administration will also consider whether to establish a dedicated group of investigators and realign staff across two of its divisions to better support regulatory oversight of infant formula, among other measures, it said. The plant shutdown and the recall of Abbott infant formula products deepened a supply shortage and sent parents in the United States scrambling. |
31331.0 | 2022-11-15 00:00:00 UTC | Is Most-Watched Stock Abbott Laboratories (ABT) Worth Betting on Now? | ABT | https://www.nasdaq.com/articles/is-most-watched-stock-abbott-laboratories-abt-worth-betting-on-now | nan | nan | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of infant formula, medical devices and drugs have returned -1.5%, compared to the Zacks S&P 500 composite's +10.5% change. During this period, the Zacks Medical - Products industry, which Abbott falls in, has gained 4.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Abbott is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of -31.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.5%.
The consensus earnings estimate of $5.21 for the current fiscal year indicates no change from the prior year. This estimate has changed +4.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.40 indicates a change of -15.6% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -4.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Abbott, the consensus sales estimate for the current quarter of $9.47 billion indicates a year-over-year change of -17.4%. For the current and next fiscal years, $43.03 billion and $39.24 billion estimates indicate -0.1% and -8.8% changes, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $10.41 billion in the last reported quarter, representing a year-over-year change of -4.7%. EPS of $1.15 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $9.58 billion, the reported revenues represent a surprise of +8.67%. The EPS surprise was +26.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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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 one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report Over the past month, shares of this maker of infant formula, medical devices and drugs have returned -1.5%, compared to the Zacks S&P 500 composite's +10.5% change. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report When earnings estimates for a company go up, the fair value for its stock goes up as well. |
31332.0 | 2022-11-13 00:00:00 UTC | Is There Room For Growth In Boston Scientific Stock? | ABT | https://www.nasdaq.com/articles/is-there-room-for-growth-in-boston-scientific-stock | nan | nan | Boston Scientific stock (NYSE: BSX) is up 6% in a month, marginally outperforming the broader S&P500 index, up 4%. The company reported its Q3 results in late October. Its top line was in line, but earnings were slightly below our estimates. Boston Scientific’s revenue of $3.2 billion reflected an 8% y-o-y rise, with growth seen in both segments. While the Cardiovascular segment saw a 9.1% rise in sales, MedSurg sales were up 6.5%. The adjusted EPS came in at $0.43 vs. $0.41 in the prior-year quarter, reflecting a 5% rise due to revenue growth, partly offset by a 190 bps fall in operating margin due to higher costs. This compares with our adjusted EPS estimate of $0.45.
Given the forex headwinds, the company lowered its full-year sales forecast to be up 6.5% vs. its prior guidance of 6.5% to 7.5% growth, and its earnings outlook to be in the range of $1.71 to $1.74 vs. its previous guidance of $1.74 to $1.77 on a per-share and adjusted basis.
Boston Scientific’s revenue growth over the recent past has been driven by higher sales for its peripheral interventions, endoscopy, and women’s health products. Its Left Atrial Appendage Closure (LAAC) device – Watchman – has gained market share, driven by a higher physician utilization rate. Electrophysiology sales were up a solid 83% y-o-y, led by higher international sales from Farapulse and POLARx. While this trend is expected to continue in the near term, forex headwinds will likely weigh on the overall revenue growth in the near term.
We have updated our model to reflect the latest quarterly results. We now estimate Boston Scientific’s Valuation to be $49 per share, which is 17% above the current market price of $42 and marginally lower than our prior estimate of $50. This represents a 28x forward P/E based on our earnings forecast of $1.73 for 2022, compared to the last three-year average of 31x, implying that BSX stock has more room for growth.
While BSX stock looks like it has more room for growth, it is helpful to see how Boston Scientific’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 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 Xylem vs. Merck.
With inflation rising and the Fed raising interest rates, among other factors, BSX stock has fallen 1% this year. Can it drop more? 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 Nov 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BSX Return -2% -1% 94%
S&P 500 Return -3% -21% 67%
Trefis Multi-Strategy Portfolio -5% -26% 192%
[1] Month-to-date and year-to-date as of 11/10/2022
[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’s revenue growth over the recent past has been driven by higher sales for its peripheral interventions, endoscopy, and women’s health products. Its Left Atrial Appendage Closure (LAAC) device – Watchman – has gained market share, driven by a higher physician utilization rate. This represents a 28x forward P/E based on our earnings forecast of $1.73 for 2022, compared to the last three-year average of 31x, implying that BSX stock has more room for growth. | The adjusted EPS came in at $0.43 vs. $0.41 in the prior-year quarter, reflecting a 5% rise due to revenue growth, partly offset by a 190 bps fall in operating margin due to higher costs. Boston Scientific’s revenue growth over the recent past has been driven by higher sales for its peripheral interventions, endoscopy, and women’s health products. Total [2] BSX Return -2% -1% 94% S&P 500 Return -3% -21% 67% Trefis Multi-Strategy Portfolio -5% -26% 192% [1] Month-to-date and year-to-date as of 11/10/2022 [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. | Given the forex headwinds, the company lowered its full-year sales forecast to be up 6.5% vs. its prior guidance of 6.5% to 7.5% growth, and its earnings outlook to be in the range of $1.71 to $1.74 vs. its previous guidance of $1.74 to $1.77 on a per-share and adjusted basis. We now estimate Boston Scientific’s Valuation to be $49 per share, which is 17% above the current market price of $42 and marginally lower than our prior estimate of $50. Total [2] BSX Return -2% -1% 94% S&P 500 Return -3% -21% 67% Trefis Multi-Strategy Portfolio -5% -26% 192% [1] Month-to-date and year-to-date as of 11/10/2022 [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’s revenue of $3.2 billion reflected an 8% y-o-y rise, with growth seen in both segments. We now estimate Boston Scientific’s Valuation to be $49 per share, which is 17% above the current market price of $42 and marginally lower than our prior estimate of $50. See how low Boston Scientific stock can go by comparing its decline in previous market crashes. |
31333.0 | 2022-11-13 00:00:00 UTC | T, ABT, or PG: Which Value Stock Could Fetch Higher Returns? | ABT | https://www.nasdaq.com/articles/t-abt-or-pg%3A-which-value-stock-could-fetch-higher-returns | nan | nan | October inflation data has triggered hopes that the U.S. Federal Reserve might dial back its hawkish stance. That said, persistent macro uncertainty continues to spook investors. Amid this scenario, many investors are avoiding growth stocks and looking for safer value bets. Stocks of companies trading at lower prices than what their fundamentals suggest are called value stocks. Using TipRanks’ Stock Comparison Tool, we will place AT&T (NYSE:T), Abbott (NYSE:ABT), and Procter & Gamble (NYSE:PG) against each other to pick the most attractive value stock.
AT&T (T) Stock
Despite a tough macro backdrop, telecom giant AT&T reported better-than-anticipated third-quarter results due to the solid performance of its wireless business. The quarter saw total wireless net additions of 7.1 million, including 964,000 postpaid net additions. However, business and consumer wireline businesses continued to be under pressure due to the weakness in the demand for legacy voice and data services.
Meanwhile, AT&T sees strong growth opportunities in 5G and fiber. Most of its targeted capital expenditure of $24 billion for 2022 is directed toward these two growth engines. The company is on track to reach 1 million AT&T Fiber net additions this year.
What is the Target Price for AT&T stock?
Recently Truist Financial analyst Gregory P. Miller upgraded AT&T stock to Buy from Hold but kept the price target unchanged at $21. Miller feels that the company “demonstrated an ability to focus on core business as opposed to acquisitions of loosely related companies at market high valuations.”
Furthermore, the analyst contends that digital subscriber line (DSL) losses will moderate moving forward. Miller believes the company is on the path to generate more than $17 billion in free cash flow in 2023 and beyond, which it can either reinvest in its core business or return to shareholders.
Overall, the Street is cautiously optimistic about AT&T stock, with a Moderate Buy consensus rating based on six Buys and eight Holds. The average T stock price target of $19.91 implies 5.7% upside potential. AT&T stock is highly attractive for dividend-oriented investors. Its dividend yield stands at an impressive 7.4%.
Abbott Laboratories (ABT) Stock
Abbott is a diversified healthcare company focused on four key areas --nutrition, diagnostics, medicines, and medical devices. The company’s Q3 results surpassed the Street’s estimates. However, ABT stock still fell as investors were concerned about the year-over-year decline in sales and earnings due to lower COVID-19 testing revenue, a significant drop in Nutrition segment’s sales, and currency headwinds.
Notably, the Nutrition segment was hit by the shutdown (initiated in February) of Sturgis, Michigan, facility, due to the contamination of certain infant formula products. Abbott recalled its baby formula products earlier this year, causing a nationwide shortage. The company resumed production at the facility in Q3.
Looking ahead, Abbott sees strong potential in its Medical Devices segment. The segment’s international sales declined in Q3 due to the impact of COVID-19 lockdowns in China and supply constraints in certain areas. However, these pressures seem temporary. High-growth products, like the FreeStyle Libre continuous glucose monitoring system, are expected to fuel the company’s growth in the times ahead.
Is Abbott Labs a Buy, Sell, or Hold?
Following the results, Barclays analyst Matt Miksic reduced his price target for Abbott stock to $114 from $118 but maintained a Buy rating. The analyst noted that the sell-off following the results brought back Abbott stock to early October levels, even as the performance of diabetes, Established Pharmaceuticals division, and cardio devices was "encouraging." Miksic feels that the post-earnings pullback in the stock was overdone.
On TipRanks, Abbott earns the Street’s Strong Buy consensus rating based on 10 Buys and three Holds. The average ABT stock price prediction of $116.08 suggests 11.4% upside potential. Abbott has increased its dividends for 50 consecutive years. Its dividend yield stands at 1.9%.
Procter & Gamble (PG) Stock
Consumer staples giant Procter & Gamble sells household and personal care products. The demand for these products generally remains resilient during an economic downturn, which makes PG stock an attractive pick.
Despite higher costs due to soaring inflation and significant currency headwinds, PG topped analysts’ estimates for the first quarter of Fiscal 2023 (ended September 30, 2022), thanks to its pricing power and impressive brand portfolio. PG owns some of the most popular global brands, like Head & Shoulders, Oral-B, Pampers, Pantene, Tide, and Gillette.
Meanwhile, currency headwinds are expected to continue to hurt PG’s performance. Consequently, the company now expects its Fiscal 2023 EPS growth at the low end of the previously issued guidance range of “in-line to up four percent” compared to EPS of $5.81 in the prior fiscal year.
Is PG a Good Stock to Buy?
Following the Q1 FY23 results, Jefferies analyst Kevin Grundy reiterated a Buy rating on PG stock, with a price target of $149. The analyst feels that the broad-based portfolio momentum (organic sales grew 7% against the analysts’ consensus estimate of 5.5%) in Q3 reflected the company’s impressive brand portfolio, “durable” supply chain, and scale that can withstand a challenging macro environment.
All in all, the Street’s Moderate Buy consensus rating on Procter & Gamble stock is based on eight Buys and seven Holds. The average PG stock price target of $147.67 implies upside potential of 4.6%. PG offers a dividend yield of 2.6%. Furthermore, PG is a dividend king and has raised its dividends for 66 consecutive years.
Conclusion
AT&T stock has risen 1.4% year-to-date and fared better than Abbott and Procter & Gamble stocks, which have declined 26% and 14%, respectively. However, Wall Street analysts are more bullish about Abbott and see higher upside potential in the stock.
That said, if we consider dividend yields as well, then the estimated total returns of AT&T and Abbott are comparable. Investors can choose between these two value stocks based on their investment objective, risk appetite, and dividend orientation.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Using TipRanks’ Stock Comparison Tool, we will place AT&T (NYSE:T), Abbott (NYSE:ABT), and Procter & Gamble (NYSE:PG) against each other to pick the most attractive value stock. Abbott Laboratories (ABT) Stock Abbott is a diversified healthcare company focused on four key areas --nutrition, diagnostics, medicines, and medical devices. However, ABT stock still fell as investors were concerned about the year-over-year decline in sales and earnings due to lower COVID-19 testing revenue, a significant drop in Nutrition segment’s sales, and currency headwinds. | Using TipRanks’ Stock Comparison Tool, we will place AT&T (NYSE:T), Abbott (NYSE:ABT), and Procter & Gamble (NYSE:PG) against each other to pick the most attractive value stock. Abbott Laboratories (ABT) Stock Abbott is a diversified healthcare company focused on four key areas --nutrition, diagnostics, medicines, and medical devices. However, ABT stock still fell as investors were concerned about the year-over-year decline in sales and earnings due to lower COVID-19 testing revenue, a significant drop in Nutrition segment’s sales, and currency headwinds. | Using TipRanks’ Stock Comparison Tool, we will place AT&T (NYSE:T), Abbott (NYSE:ABT), and Procter & Gamble (NYSE:PG) against each other to pick the most attractive value stock. Abbott Laboratories (ABT) Stock Abbott is a diversified healthcare company focused on four key areas --nutrition, diagnostics, medicines, and medical devices. However, ABT stock still fell as investors were concerned about the year-over-year decline in sales and earnings due to lower COVID-19 testing revenue, a significant drop in Nutrition segment’s sales, and currency headwinds. | Using TipRanks’ Stock Comparison Tool, we will place AT&T (NYSE:T), Abbott (NYSE:ABT), and Procter & Gamble (NYSE:PG) against each other to pick the most attractive value stock. Abbott Laboratories (ABT) Stock Abbott is a diversified healthcare company focused on four key areas --nutrition, diagnostics, medicines, and medical devices. However, ABT stock still fell as investors were concerned about the year-over-year decline in sales and earnings due to lower COVID-19 testing revenue, a significant drop in Nutrition segment’s sales, and currency headwinds. |
31334.0 | 2022-11-12 00:00:00 UTC | 7 No-Brainer Blue-Chip Stocks to Buy for 2023 and Beyond | ABT | https://www.nasdaq.com/articles/7-no-brainer-blue-chip-stocks-to-buy-for-2023-and-beyond | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While it’s tempting to target the flavors of the week during a market correction, investors ought to spare some time for no-brainer blue-chip stocks to buy for 2023 and beyond. Indeed, the broader market and economic dynamics encourage retail investors to think about value and stability over growth.
Earlier, I laid out the monetary backdrop that should guide investing principles in the new normal. “In the trailing five years since September 2022, the real M2 money stock expanded over 30%. Put another way, money was “cheap” (or inflationary), so it incentivized business growth. However, in the trailing year, M2 declined over 5%, making money “expensive” (deflationary).”
Put another way, companies with deeply established track records should gain significant relevance. You couldn’t ask for a better framework for no-brainer blue-chip stocks to buy. Below are some compelling ideas to consider.
AAPL Apple $149.70
MSFT Microsoft $247.11
ABT Abbott Laboratories $104.09
VEEV Veeva Systems $191.02
ROST Ross Stores $96.17
CTSH Cognizant Technology $58.42
BF-B Brown-Forman $69.64
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Recently, the company generated buzz when its market performance for the Nov. 10 session added $190.9 billion in market value, a record for a U.S.-listed company. At the time of writing, Apple had a market capitalization of $2.38 trillion, making it the world’s most valuable company.
To be fair, broadly weak consumer sentiment data suggests that companies like Apple should be having a rough time. Not surprisingly, AAPL is down over 19% on a year-to-date basis. However, the fundamentals remain strong. For instance, the company benefited from strong results from its latest product rollout. Therefore, Apple facilitates a powerful case for no-brainer blue-chip stocks to buy.
Financially, AAPL brings excellent value for what you get. The company enjoys blistering performance states for growth and profitability. In addition, Apple provides stability in the balance sheet, particularly its Altman Z-Score of 6.45 reflecting low bankruptcy risk.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Headquartered in Redmond, Washington, Microsoft (NASDAQ:MSFT) is a software and technology powerhouse. In addition, the company also carved a huge name for itself as a console video game manufacturer. Therefore, the company enjoys a wide canvas of relevancies. At the moment, MSFT features a market cap of $1.84 trillion, making it one of the elites among blue-chip stocks to buy.
Fundamentally, what investors should focus on regarding MSFT is that the underlying company dominates the business ecosystem. For example, it owns 76% of the desktop operating system market share. In other words, if you want to get anything done in the professional realm, you have to be familiar with Microsoft Windows and its business applications.
Financially, Gurufocus.com considers MSFT a modestly undervalued investment based on its proprietary calculations. It’s difficult to argue with this notion. Microsoft enjoys strong revenue growth metrics along with excellent profitability margins that dominate the underlying sector. Additionally, it features a stable balance sheet based on its 7.36 Altman Z-Score.
Abbott Laboratories (ABT)
Source: venusvi / Shutterstock.com
Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Currently, Abbott sells medical devices, diagnostics, branded generic medicines, and nutritional products. At the time of writing, the enterprise commands a market cap of nearly $181.4 billion. Since the start of the year, ABT dropped 25% in equity value.
To be sure, Abbott carries much baggage. From its baby formula recall to weak medical device sales, the company can’t say it doesn’t deserve any market loss. At the same time, near-term momentum has been picking up. In the trailing five days since the close of the Nov. 10 session, ABT gained 6.5% in value.
Against the bigger picture financially, ABT certainly makes a strong case for blue-chip stocks to buy. Mainly, the company enjoys excellent profit margins. For example, its net margin stands at 17.5%, beating out 82% of the competition. Also, its return on equity (ROE) is 22% compared to the industry median of 0.2%.
Veeva Systems (VEEV)
Source: Blackboard / Shutterstock
Founded in 2007, Veeva Systems (NYSE:VEEV) operates out of Pleasanton, California. Veeva is a cloud-computing company focused on pharmaceutical and life sciences industry applications. At the moment, the enterprise features a market cap of $29.66 billion. Since the beginning of this year, VEEV gave up nearly 27% of its equity value. However, shares are making a comeback, gaining nearly 16% over the trailing month.
Admittedly, the fallout in the market this year has not been kind, especially toward the tech segment. However, with recent data on inflation coming in lighter than expected, it’s possible that the Federal Reserve could relax its monetary tightening policy. If so, that might encourage badly beaten-up investors to consider tech plays like VEEV.
Now, what makes Veeva one of the blue-chip stocks to buy centers on its financial resilience. Primarily, the company enjoys a stout balance sheet. For instance, its cash-to-debt ratio stands at 46 times, ranked better than 87% of its rivals. Also, the enterprise carries outstanding profit margins that also rank among the sector’s elite.
Ross Stores (ROST)
Source: Rawpixel.com / Shutterstock
Headquartered in Dublin, California, Ross Stores (NASDAQ:ROST) is a chain of discount department stores. Per its public profile, the company is the largest off-price retailer in the U.S. Presently, Ross Stores carries a market cap of $33.38 billion. Since the start of the year, ROST slipped more than 14%. Still, the stock is outperforming the benchmark S&P 500 index.
Obviously, the big concern for ROST that works against its inclusion among the blue-chip stocks to buy centers on sentiment. With the consumer taking a beating from high inflation and now rising layoffs, not too many folks are interested in opening their wallets unnecessarily. However, with remote work facing a possible paradigm shift as employees lose leverage to employers, many folks might be forced to upgrade their professional wardrobes.
Cynically, that’s a big plus for Ross Stores. While it’s a tricky narrative, it’s still worth considering for blue-chip stocks to buy. On a final note, the company impresses on the income statement, particularly its strong operating and net margins.
Cognizant Technology (CTSH)
Source: Peshkova / Shutterstock
Based in New Jersey, Cognizant Technology (NASDAQ:CTSH) is an American multinational information technology services and consulting company. Cognizant provides myriad solutions, including business process services, cloud-computing applications, industrial automation, and artificial intelligence. At the time of writing, Cognizant carries a market cap of $30 billion.
Since the January opener, CTSH stock gave up 36% of its equity value. As with other tech-related blue-chip stocks to buy, macroeconomic headwinds imposed a dark cloud over the broader industry. Nevertheless, enthusiasm is finally returning to the space, with CTSH gaining nearly 9% over the trailing five days. While it still has a ways to go, this might be the start of something interesting.
Financially, CTSH will likely attract investors seeking blue-chip stocks to buy because it’s deeply undervalued. Shares trade at 12.2 times forward earnings, comparing favorably to the industry median of 22.2 times. Also, the company features a stable balance sheet with an Altman Z-Score of over 6, reflecting low bankruptcy risk.
Brown-Forman (BF-B)
Source: Shutterstock
Headquartered in Louisville, Kentucky, Brown-Forman (NYSE:BF-B) is one of the largest companies in the spirits and wine industry. It features some iconic brands including Jack Daniel’s, Old Forester, and Woodford Reserve. At the time of writing, Brown-Forman commands a market cap of $33.48 billion. Since the start of the year, BF.B declined by 2.4% in the charts.
Interestingly, though, over the trailing month, BF.B gained 8%. At least some of this enthusiasm might be traced to the underlying fundamentals. According to TipRanks, “during a recession, consumers are likely to increase alcohol consumption at home, while companies in the space retain fantastic pricing power during such periods.” Further, with people likely to seek escapism from troubling headlines, Brown-Forman could jump higher on cynical catalysts.
Financially, what may impress market observers the most is the company’s high business quality. It features an ROE of 32.7%, beating out more than 90% of its competitors. Also, it has a return on assets of 13.9%, above more than 86% of the industry.
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 No-Brainer Blue-Chip Stocks to Buy for 2023 and Beyond 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. | AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Abbott Laboratories (ABT) Source: venusvi / Shutterstock.com Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Since the start of the year, ABT dropped 25% in equity value. | AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Abbott Laboratories (ABT) Source: venusvi / Shutterstock.com Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Since the start of the year, ABT dropped 25% in equity value. | AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Abbott Laboratories (ABT) Source: venusvi / Shutterstock.com Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Since the start of the year, ABT dropped 25% in equity value. | AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Abbott Laboratories (ABT) Source: venusvi / Shutterstock.com Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Since the start of the year, ABT dropped 25% in equity value. |
31335.0 | 2022-11-10 00:00:00 UTC | Becton Dickinson expects fiscal 2023 COVID test sales to drag | ABT | https://www.nasdaq.com/articles/becton-dickinson-expects-fiscal-2023-covid-test-sales-to-drag | nan | nan | By Leroy Leo
Nov 10 (Reuters) - Becton Dickinson and Co BDX.N on Thursday forecast a sharp decline in COVID-19 test sales for fiscal year 2023 as it expects the testing market to shrink next year with infections dropping.
The medical equipment maker forecast COVID testing sales to be in the range of $125 million to $175 million for its current fiscal year, compared with $511 million it generated a year earlier.
A fall in COVID cases has also led rivals such as Abbott Laboratories ABT.N and Thermo Fisher Scientific TMO.N to forecast lower sales of coronavirus test kits.
Abbott, which sells the rapid antigen test BinaxNOW among others, expects $500 million in COVID sales as the disease becomes endemic, while Thermo Fisher expects $100 million per quarter in the near future.
"Since none of us exactly knows the course that COVID infections are going to take going forward, it seems reasonable and very prudent for Becton and other companies to guide conservatively," Stifel analyst Rick Wise said in an interview.
With the cases falling, however, the U.S. Food and Drug Administration in September announced its plans to review only a small number of emergency use authorization requests for COVID tests, and ask companies to instead apply for a traditional review.
BD, which starts its financial year from October unlike others that follow calendar year, is the first large test maker to give an outlook for next year.
(Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A fall in COVID cases has also led rivals such as Abbott Laboratories ABT.N and Thermo Fisher Scientific TMO.N to forecast lower sales of coronavirus test kits. By Leroy Leo Nov 10 (Reuters) - Becton Dickinson and Co BDX.N on Thursday forecast a sharp decline in COVID-19 test sales for fiscal year 2023 as it expects the testing market to shrink next year with infections dropping. "Since none of us exactly knows the course that COVID infections are going to take going forward, it seems reasonable and very prudent for Becton and other companies to guide conservatively," Stifel analyst Rick Wise said in an interview. | A fall in COVID cases has also led rivals such as Abbott Laboratories ABT.N and Thermo Fisher Scientific TMO.N to forecast lower sales of coronavirus test kits. By Leroy Leo Nov 10 (Reuters) - Becton Dickinson and Co BDX.N on Thursday forecast a sharp decline in COVID-19 test sales for fiscal year 2023 as it expects the testing market to shrink next year with infections dropping. The medical equipment maker forecast COVID testing sales to be in the range of $125 million to $175 million for its current fiscal year, compared with $511 million it generated a year earlier. | A fall in COVID cases has also led rivals such as Abbott Laboratories ABT.N and Thermo Fisher Scientific TMO.N to forecast lower sales of coronavirus test kits. By Leroy Leo Nov 10 (Reuters) - Becton Dickinson and Co BDX.N on Thursday forecast a sharp decline in COVID-19 test sales for fiscal year 2023 as it expects the testing market to shrink next year with infections dropping. The medical equipment maker forecast COVID testing sales to be in the range of $125 million to $175 million for its current fiscal year, compared with $511 million it generated a year earlier. | A fall in COVID cases has also led rivals such as Abbott Laboratories ABT.N and Thermo Fisher Scientific TMO.N to forecast lower sales of coronavirus test kits. The medical equipment maker forecast COVID testing sales to be in the range of $125 million to $175 million for its current fiscal year, compared with $511 million it generated a year earlier. Abbott, which sells the rapid antigen test BinaxNOW among others, expects $500 million in COVID sales as the disease becomes endemic, while Thermo Fisher expects $100 million per quarter in the near future. |
31336.0 | 2022-11-10 00:00:00 UTC | Better Buy: Johnson & Johnson vs. Abbott Laboratories | ABT | https://www.nasdaq.com/articles/better-buy%3A-johnson-johnson-vs.-abbott-laboratories | nan | nan | If you're a risk-averse investor looking for stocks to buy, it's hard to go wrong with stalwarts in the healthcare industry such as Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). These two businesses have strong track records for profitability, pay dividends, and generally aren't risky investments to be hold. While they both could make for stable long-term investments, which stock looks to be the best buy right now?
The case for Johnson & Johnson
One of the most attractive reasons to buy Johnson & Johnson right now is the company's pivot more toward growth. It's spinning off its slow-growing consumer health segment next year, and by doing so, its focus will be more on pharmaceuticals and medtech. It's already working on the new phase of its business. On Nov. 1, Johnson & Johnson announced plans to acquire Abiomed, a business that makes heart pumps and that achieved 22% sales growth in its most recent fiscal year (which ended in March) with revenue totaling more than $1 billion.
While Johnson & Johnson is losing patent protection in the U.S. on psoriasis medication Stelara in 2023, the company is confident it has a strong enough pipeline to not only offset losses from that, but to grow its pharmaceutical revenue to $60 billion by 2025. Last year, revenue from that segment totaled $52 billion.
Unlike Abbott Laboratories, which is down close to 30% this year, Johnson & Johnson has proven to be a more stable buy thus far, rising a modest 2%. Its dividend also yields 2.5%, which is higher than Abbott's payout of 1.9%.
The case for Abbott Laboratories
Abbott's stock has been struggling this year and is near its 52-week low. For value-oriented investors, the shares could provide some good value as they trade at 22 times its earnings. That's a slightly more modest valuation than Johnson & Johnson shares, which trade at 24 times profits.
Investors are bearish on Abbott's stock as COVID-19 testing bolstered its numbers in the past, a trend that isn't likely to continue in the future, and baby formula recalls have also hindered its nutrition business. But over the long term, the business is still robust and diverse.
Unlike Johnson & Johnson, which will heavily rely on two segments in its future (pharmaceuticals and medtech), Abbott also has diagnostics and nutrition business units that can make the business more diverse and stable in the long run. While Johnson & Johnson's stock is outperforming Abbott this year, over the past five years, Abbott's shareholders have been the big winners, earning returns of 80% -- dwarfing the 24% gains for Johnson & Johnson's stock during that time.
One underrated opportunity Abbott has is in diabetes care, a component of its medical devices business that generated 31% sales growth in the U.S. in the most recent quarter (ended Sept. 30). Within that segment is the company's FreeStyle Libre 3, a continuous glucose monitoring device that features the world's smallest sensor. The entire FreeStyle Libre line of products generated $1 billion during the past quarter and its U.S. growth was an impressive 40%.
With a plethora of growth opportunities, investors should be careful not to discount the long-term potential for Abbott Laboratories.
I'd go with Abbott Laboratories stock today
Both of these healthcare businesses are likely to grow over the years but with a more modest valuation and diverse business, Abbott Laboratories is the stock I would buy right now. Johnson & Johnson is in the midst of a transition in its business and that can be a risky time to invest. Stelara is a big part of its business and brought in more than $9 billion in revenue for 2021, representing 18% of its pharmaceutical segment. While the company is planning to replace losses in revenue from Stelara over the years, that won't be an easy task.
Abbott Laboratories is the safer buy and although it's down in value this year, that just makes it a more compelling investment to load up on, especially for the long haul.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abiomed. 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. | If you're a risk-averse investor looking for stocks to buy, it's hard to go wrong with stalwarts in the healthcare industry such as Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). These two businesses have strong track records for profitability, pay dividends, and generally aren't risky investments to be hold. Investors are bearish on Abbott's stock as COVID-19 testing bolstered its numbers in the past, a trend that isn't likely to continue in the future, and baby formula recalls have also hindered its nutrition business. | If you're a risk-averse investor looking for stocks to buy, it's hard to go wrong with stalwarts in the healthcare industry such as Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). That's a slightly more modest valuation than Johnson & Johnson shares, which trade at 24 times profits. One underrated opportunity Abbott has is in diabetes care, a component of its medical devices business that generated 31% sales growth in the U.S. in the most recent quarter (ended Sept. 30). | If you're a risk-averse investor looking for stocks to buy, it's hard to go wrong with stalwarts in the healthcare industry such as Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). The case for Johnson & Johnson One of the most attractive reasons to buy Johnson & Johnson right now is the company's pivot more toward growth. While Johnson & Johnson's stock is outperforming Abbott this year, over the past five years, Abbott's shareholders have been the big winners, earning returns of 80% -- dwarfing the 24% gains for Johnson & Johnson's stock during that time. | If you're a risk-averse investor looking for stocks to buy, it's hard to go wrong with stalwarts in the healthcare industry such as Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). Unlike Johnson & Johnson, which will heavily rely on two segments in its future (pharmaceuticals and medtech), Abbott also has diagnostics and nutrition business units that can make the business more diverse and stable in the long run. While Johnson & Johnson's stock is outperforming Abbott this year, over the past five years, Abbott's shareholders have been the big winners, earning returns of 80% -- dwarfing the 24% gains for Johnson & Johnson's stock during that time. |
31337.0 | 2022-11-10 00:00:00 UTC | 3 Top Healthcare Stocks Defying the Bear Market | ABT | https://www.nasdaq.com/articles/3-top-healthcare-stocks-defying-the-bear-market-0 | nan | nan | Many healthcare stocks' earnings reports lately include the phrases "inflationary pressures," "labor shortages," "supply chain issues," and "short-term macroeconomic conditions" to describe why earnings are flat or down.
The S&P 500 index is down more than 20% so far this year and even the healthcare sector, which is considered non-cyclical and somewhat recession-proof, is down more than 7% in 2022.
That's not the case with all healthcare stocks, though. UnitedHealth Group (NYSE: UNH), AbbVie (NYSE: ABBV), and Vertex Pharmaceuticals (NASDAQ: VRTX) are all up 8.5% or more this year despite the headwinds affecting so many companies.
UnitedHealth Group's rise makes sense
It's easy to see why UnitedHealth Group's shares are up more than 8.5% so far this year. The managed healthcare and insurance company's numbers are well ahead of last year's pace.
Through the first nine months, the company has earned revenue of $192.5 billion, up 14% year over year, while earnings per share (EPS) was $16.15, compared to $13.82 in the same period last year. The company operates in two segments: UnitedHealthcare, which provides a full range of healthcare insurance, and Optum Health, which provides data-driven healthcare through its surgery centers, clinics, doctor practices, and its related pharmacy management company, OptumRx. Both segments are thriving as the company boosted full-year guidance of $20.85 to $21.05 in EPS, compared to 2021 annual EPS of $18.08.
The driver for that growth is increased subscribers to its services, with the total number of people served by UnitedHealthcare increasing by 850,000 this year, including 185,000 added in the third quarter. The company also has a dividend to attract investors. It raised its quarterly dividend by 14% this year to $1.65, the 13th consecutive year it has increased its dividend and its yield is around 1.22%.
AbbVie continues to surprise
Analysts have been predicting doom for pharmaceutical giant AbbVie for years because its blockbuster immunology drug, Humira, is already seeing lessened sales overseas due to biosimilar competition and will hit a patent cliff next year in the United States. However, the strong sales for two rising immunology drugs have created optimism about the company's future.
AbbVie's shares are up more than 9% so far this year. In the third quarter, the company reported revenue of $14.8 billion, up 3.3% year over year, and EPS of $2.21, up 24.2% over the same period last year. While Humira continues to be the company's biggest seller with $4.96 billion up 7.4% year over year, in the U.S. alone. Two other immunology therapies, Skyrizi and Rinvoq, had revenue of nearly $1.4 billion and $695 million, up 75.4% and 53.5%, respectively, over the same period last year. Those numbers will grow as the company is in the process of getting label expansions approved for both.
The company also has a huge pipeline that should help deliver revenue in the coming years, including a combination therapy of two oncology drugs Imbruvica and Venclexta that could be used to treat chronic lymphocytic leukemia (CLL), the most common form of leukemia in adults, as well as mantle cell lymphoma (MCL).
AbbVie, thanks to its time as a part of Abbott Laboratories, is a Dividend King, having increased its dividend for 50 consecutive years. That streak will continue as the company has already increased its quarterly dividend by 5% to $1.48, starting in the first quarter of 2023, giving it a forward yield of around 4.07%.
Vertex Pharmaceuticals has double-digit share, revenue growth
Vertex's shares are up over 38% this year, thanks to a combo of the revenue growth of its cystic fibrosis (CF) therapies and the huge potential of exa-cel, the CRISPR gene-editing therapy it is developing with CRISPR Therapeutics that has shown the potential to treat two hereditary blood disorders, severe sickle-cell anemia (SCD) and transfusion-dependent beta-thalassemia (TDT).
In the third quarter, the company reported revenue of $2.3 billion, up 18% year over year, led by increased sales for its lead CF therapy Trikafta, which had $2 billion in sales in the quarter, up 29% over the same period last year. Net income was $931 million and EPS was $3.59, both of which were up 9% year over year.
Vertex bumped up full-year revenue guidance to between $8.8 billion and $8.9 billion, compared to earlier estimates of between $8.6 billion and $8.8 billion and representing an eighth consecutive year of double-digit revenue growth.
Besides exa-cel, which is in the process of a rolling review of its biologics licensing application (BLA) by the Food and Drug Administration, the company has two therapies in its pipeline that are in phase 3 trials: VX-548 to treat acute pain and neuropathic pain, and Inaxaplin to treat APOL1-Mediated Kidney Disease.
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Jim Halley has positions in AbbVie and CRISPR Therapeutics. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends UnitedHealth Group. 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. | AbbVie continues to surprise Analysts have been predicting doom for pharmaceutical giant AbbVie for years because its blockbuster immunology drug, Humira, is already seeing lessened sales overseas due to biosimilar competition and will hit a patent cliff next year in the United States. The company also has a huge pipeline that should help deliver revenue in the coming years, including a combination therapy of two oncology drugs Imbruvica and Venclexta that could be used to treat chronic lymphocytic leukemia (CLL), the most common form of leukemia in adults, as well as mantle cell lymphoma (MCL). Vertex Pharmaceuticals has double-digit share, revenue growth Vertex's shares are up over 38% this year, thanks to a combo of the revenue growth of its cystic fibrosis (CF) therapies and the huge potential of exa-cel, the CRISPR gene-editing therapy it is developing with CRISPR Therapeutics that has shown the potential to treat two hereditary blood disorders, severe sickle-cell anemia (SCD) and transfusion-dependent beta-thalassemia (TDT). | Through the first nine months, the company has earned revenue of $192.5 billion, up 14% year over year, while earnings per share (EPS) was $16.15, compared to $13.82 in the same period last year. Vertex Pharmaceuticals has double-digit share, revenue growth Vertex's shares are up over 38% this year, thanks to a combo of the revenue growth of its cystic fibrosis (CF) therapies and the huge potential of exa-cel, the CRISPR gene-editing therapy it is developing with CRISPR Therapeutics that has shown the potential to treat two hereditary blood disorders, severe sickle-cell anemia (SCD) and transfusion-dependent beta-thalassemia (TDT). In the third quarter, the company reported revenue of $2.3 billion, up 18% year over year, led by increased sales for its lead CF therapy Trikafta, which had $2 billion in sales in the quarter, up 29% over the same period last year. | Through the first nine months, the company has earned revenue of $192.5 billion, up 14% year over year, while earnings per share (EPS) was $16.15, compared to $13.82 in the same period last year. In the third quarter, the company reported revenue of $14.8 billion, up 3.3% year over year, and EPS of $2.21, up 24.2% over the same period last year. In the third quarter, the company reported revenue of $2.3 billion, up 18% year over year, led by increased sales for its lead CF therapy Trikafta, which had $2 billion in sales in the quarter, up 29% over the same period last year. | That's not the case with all healthcare stocks, though. Through the first nine months, the company has earned revenue of $192.5 billion, up 14% year over year, while earnings per share (EPS) was $16.15, compared to $13.82 in the same period last year. In the third quarter, the company reported revenue of $2.3 billion, up 18% year over year, led by increased sales for its lead CF therapy Trikafta, which had $2 billion in sales in the quarter, up 29% over the same period last year. |
31338.0 | 2022-11-08 00:00:00 UTC | Noteworthy ETF Outflows: UPRO, ACN, WFC, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-upro-acn-wfc-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 ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $109.3 million dollar outflow -- that's a 5.0% decrease week over week (from 65,750,000 to 62,450,000). Among the largest underlying components of UPRO, in trading today Accenture plc (Symbol: ACN) is up about 1.5%, Wells Fargo & Co (Symbol: WFC) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average:
Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $78.715 as the 52 week high point — that compares with a last trade of $33.63. 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 »
Also see:
AERI shares outstanding history
Funds Holding JJT
Institutional Holders of TMV
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 UPRO, in trading today Accenture plc (Symbol: ACN) is up about 1.5%, Wells Fargo & Co (Symbol: WFC) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $109.3 million dollar outflow -- that's a 5.0% decrease week over week (from 65,750,000 to 62,450,000). 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 UPRO, in trading today Accenture plc (Symbol: ACN) is up about 1.5%, Wells Fargo & Co (Symbol: WFC) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $78.715 as the 52 week high point — that compares with a last trade of $33.63. 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 UPRO, in trading today Accenture plc (Symbol: ACN) is up about 1.5%, Wells Fargo & Co (Symbol: WFC) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $109.3 million dollar outflow -- that's a 5.0% decrease week over week (from 65,750,000 to 62,450,000). For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $25.94 per share, with $78.715 as the 52 week high point — that compares with a last trade of $33.63. | Among the largest underlying components of UPRO, in trading today Accenture plc (Symbol: ACN) is up about 1.5%, Wells Fargo & Co (Symbol: WFC) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $109.3 million dollar outflow -- that's a 5.0% decrease week over week (from 65,750,000 to 62,450,000). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. |
31339.0 | 2022-11-08 00:00:00 UTC | Investing $1,000 in the Current Market? Don't Overlook These 2 Winning Dividend Stocks | ABT | https://www.nasdaq.com/articles/investing-%241000-in-the-current-market-dont-overlook-these-2-winning-dividend-stocks | nan | nan | Dividend stocks are rarely the lightning-growth companies that many investors seem to gravitate toward, but these types of investments certainly have an allure of their own. Whether providing additional capital that you can put back into your portfolio again and again, or increasing your total returns with time, the best dividend stocks are compelling investments that you can buy and hold for decades or even a lifetime.
Here are two such winning dividend stocks to consider adding to your portfolio ASAP.
1. Bristol-Myers Squibb
Bristol-Myers Squibb (NYSE: BMY) may not come to mind as a first-tier pharmaceutical maker, but that doesn't mean you should overlook this top dividend payer.
Bristol-Myers Squibb currently yields about 2.7%, above the 2% average for stocks on the S&P 500. Over the trailing-five-year period, the company has increased its dividend by 35%, while its yield has risen by nearly 9%. It's also worth noting that the stock has delivered a total return of 48% in the trailing-five-year period, behind the S&P 500's trailing-five-year return of about 60%.
The company has built a strong track record of revenue growth and profits on the foundation of a diverse portfolio of products including treatments in immunology, oncology, cardiology, and neurology. Many of these have been developed in-house.
Other medicines have been obtained through a series of well-chosen moves, including its 2019 acquisition of cancer and immunology drugmaker Celgene and a deal for the clinical-stage precision oncology company Turning Point earlier this year. Bristol-Myers Squibb's pipeline contains a robust lineup of more than 50 treatments targeting more than 35 diseases.
Mature businesses like Bristol-Myers aren't known for quarterly reports supercharged with dazzling levels of growth. Instead, it's one of the companies making the medicines that are constantly in demand. Such businesses are noncyclical, which translates into stable balance sheets and more-moderate shareholder gains.
In the most recent quarter, the strength of the U.S. dollar and loss of patent exclusivity for a few core products meant that Bristol-Myers's total revenue of $11.2 billion (nothing to sneeze at by any means) represented a decline of 3% from a year earlier. But on a currency-neutral basis, revenue from its in-line and new products actually increased 8%.
Moreover, revenue generated in the U.S. jumped 9% year over year. The company also reported net income of $1.6 billion, a 7% increase from one year ago.
Over the past decade, the company has increased its annual revenue and net income by 163% and 257%, respectively. The healthcare giant's incredible dividend history -- and highly profitable portfolio of products -- make it a no-brainer contender that long-term investors should consider for their list of potential buys to hold for many years to come.
At its current share price of about $79, a $1,000 investment in Bristol-Myers Squibb would give you about 13 shares.
2. AbbVie
AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. Even though the company was formed in 2013, its spinoff from long-standing dividend payer Abbott Laboratories meant that it inherited that company's dividend history.
Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. The stock yields 4.1% for investors based on current share prices, roughly twice that of the average stock in the S&P 500.
It also has delivered a total return of more than 540% since its spinoff, compared to the S&P 500's total return of 220% in the same period.
Like Bristol-Myers, AbbVie has an extensive portfolio of drugs in many different disciplines, including virology, oncology, and immunology. Its 2020 acquisition of Allergan also added Botox to its portfolio, as well as eye medications like Lumigan for glaucoma and the dry-eye treatment Restastis.
Since AbbVie became a stand-alone company in 2013, it has increased annual revenue by nearly 206% and its net income by almost 119%.
In the most recent quarter, the company reported total revenue of $14.8 billion, a 3% increase year over year. This was driven by revenue increases of 15%, 7%, and 4%, respectively, from its immunology, neuroscience, and aesthetics portfolios. Meanwhile, AbbVie's net earnings of about $4 billion represented a jump of 24% from the same quarter last year.
Income-seeking investors will also be glad to learn that management just announced a 5% increase for AbbVie's 2023 dividend, beginning with its payout in February.
At its current share price of $148, a $1,000 investment in AbbVie would give you about seven shares.
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Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends Bristol Myers Squibb. 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. | Other medicines have been obtained through a series of well-chosen moves, including its 2019 acquisition of cancer and immunology drugmaker Celgene and a deal for the clinical-stage precision oncology company Turning Point earlier this year. In the most recent quarter, the strength of the U.S. dollar and loss of patent exclusivity for a few core products meant that Bristol-Myers's total revenue of $11.2 billion (nothing to sneeze at by any means) represented a decline of 3% from a year earlier. The healthcare giant's incredible dividend history -- and highly profitable portfolio of products -- make it a no-brainer contender that long-term investors should consider for their list of potential buys to hold for many years to come. | Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY) may not come to mind as a first-tier pharmaceutical maker, but that doesn't mean you should overlook this top dividend payer. In the most recent quarter, the company reported total revenue of $14.8 billion, a 3% increase year over year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Whether providing additional capital that you can put back into your portfolio again and again, or increasing your total returns with time, the best dividend stocks are compelling investments that you can buy and hold for decades or even a lifetime. AbbVie AbbVie (NYSE: ABBV) is a member of the esteemed group of companies known as Dividend Kings, meaning it has increased its dividend annually for at least 50 consecutive years. In the most recent quarter, the company reported total revenue of $14.8 billion, a 3% increase year over year. | Since AbbVie was formed, the stock has not only raised its dividend by 270%, but its yield has also increased by more than 20%. The stock yields 4.1% for investors based on current share prices, roughly twice that of the average stock in the S&P 500. In the most recent quarter, the company reported total revenue of $14.8 billion, a 3% increase year over year. |
31340.0 | 2022-11-07 00:00:00 UTC | 2 Reasons to Buy DexCom, and 1 Reason to Sell | ABT | https://www.nasdaq.com/articles/2-reasons-to-buy-dexcom-and-1-reason-to-sell | nan | nan | A struggling economy, rising interest rates, and negative results from high-profile corporations continue to drag the stock market down. And although medical device specialist DexCom (NASDAQ: DXCM) hasn't entirely escaped the bloodbath, the company has been doing much better in the past few months.
Now, investors want to know whether DexCom can continue riding that wave for a while -- and there are good reasons why it might. However, there is also at least one major worry with this healthcare company. Are its shares a buy? Let's briefly look at both sides of the argument.
DXCM data by YCharts.
Reason to buy #1: Massive whitespace ahead
DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients with an essential function: tracking their blood sugar levels. Being too high or too low can lead to severe -- and sometimes life-threatening -- complications. CGM devices like DexCom's G6 compete with blood glucose meters (BGM) in helping people with diabetes with this critical task. And it seems clear which method has the advantage.
CGM devices take up to 288 readings per day -- one every five minutes. They also do not rely on painful fingersticks. By contrast, BGMs do rely on fingersticks and must be used manually to read a patient's glucose level at specific times. That's why CGM devices have been associated with better health outcomes for diabetes patients.
And yet, they continue to lag behind their BGM counterparts. The company's CEO, Kevin Sayer, recently said: "The domestic core market still has a long runway of growth ahead as we expect the vast majority of the population to adopt CGM to help them better manage their health." But notice that the U.S. leads most other countries in CGM adoption. That means if there is plenty of room for DexCom to grow domestically, there is even more room internationally.
And that's before we get into long-term trends in the number of diabetes patients increasing in the coming years. DexCom isn't the only player in this industry. Perhaps its most notable competitor is Abbott Laboratories, whose device, the FreeStyle Libre, has also been successful. But the market can accommodate multiple winners, especially as there seems to be enough room for them to grow.
Reason to buy #2: A new coverage plan
One barrier preventing many patients from enjoying CGM technology is third-party payers' unwillingness to cover it. Fortunately, a potential decision in the U.S. could expand those eligible for CGM coverage under Medicare. The existing coverage standards only include patients taking at least three insulin doses daily. But in October, the U.S. Center for Medicare and Medicaid Services (CMS) proposed a new plan.
Under the new guidelines, even patients not on intensive insulin therapy would be eligible for CMS coverage, provided they have a history of problematic hypoglycemia (when blood glucose levels drop below a specific threshold) or take at least one insulin dose daily. According to Wells Fargo analyst Larry Biegelsent, this change could double the U.S. CGM market opportunity to eight million patients.
That's not trivial, and as a leader in this field, DexCom would be one of the primary beneficiaries. True, the CMS still needs to finalize this decision, and until it does, anything could happen. But realistically speaking, these proposed plans generally look very much like the finalized ones. So there is an excellent chance the change in CGM Medicare coverage will become official. That's great news for DexCom.
Reason to sell: Rich valuation
Despite DexCom's seemingly bright prospects, one could argue that much of its future success is already baked into its stock price. The company's current forward price-to-earnings (P/E) ratio of 142 is substantially higher than the S&P 500's P/E of about 18.6 and the healthcare industry's average of 16.4. Failure to live up to its lofty expectations could send its stock price off a cliff.
Should investors purchase shares of DexCom despite this risk? In my view, it depends on each person's investment timeline. For those willing to stay the course for five years or more, DexCom is positioned to justify its high valuation metrics. In addition to an underpenetrated and rapidly growing industry, DexCom is developing newer devices to help diabetes patients achieve even better health outcomes.
The company has already begun the launch of its G7 in Europe and expects it to earn clearance in the U.S. by the end of the year. DexCom has a solid history of innovation, and we can expect the company to continue rolling out better devices down the road. That should help it increase its revenue and profits as it enrolls more diabetes patients, providing solid returns to investors in the process.
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Prosper Junior Bakiny has no position in any of the stocks mentioned. 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. | Reason to buy #1: Massive whitespace ahead DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients with an essential function: tracking their blood sugar levels. The company's CEO, Kevin Sayer, recently said: "The domestic core market still has a long runway of growth ahead as we expect the vast majority of the population to adopt CGM to help them better manage their health." In addition to an underpenetrated and rapidly growing industry, DexCom is developing newer devices to help diabetes patients achieve even better health outcomes. | Reason to buy #1: Massive whitespace ahead DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients with an essential function: tracking their blood sugar levels. In addition to an underpenetrated and rapidly growing industry, DexCom is developing newer devices to help diabetes patients achieve even better health outcomes. That should help it increase its revenue and profits as it enrolls more diabetes patients, providing solid returns to investors in the process. | Reason to buy #1: Massive whitespace ahead DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients with an essential function: tracking their blood sugar levels. CGM devices like DexCom's G6 compete with blood glucose meters (BGM) in helping people with diabetes with this critical task. In addition to an underpenetrated and rapidly growing industry, DexCom is developing newer devices to help diabetes patients achieve even better health outcomes. | Reason to buy #1: Massive whitespace ahead DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients with an essential function: tracking their blood sugar levels. That's why CGM devices have been associated with better health outcomes for diabetes patients. That's right -- they think these 10 stocks are even better buys. |
31341.0 | 2022-11-06 00:00:00 UTC | Politician’s Picks: Senior Delaware Senator Favors CVS, ABT, TSM Stocks | ABT | https://www.nasdaq.com/articles/politicians-picks%3A-senior-delaware-senator-favors-cvs-abt-tsm-stocks | nan | nan | Thomas Richard Carper, popularly known as Tom Carper, a Senior U.S. Senator from Delaware, has been trading (buying and selling) some interesting stocks lately. As per Capitol Trades, on October 17, the Democratic party member sold shares of communications services provider Verizon Communications Inc. (NYSE:VZ), media powerhouse The Walt Disney Co. (NYSE:DIS), and chip maker Intel Corp. (NASDAQ:INTC).
At the same time, Carper bought shares of healthcare companies CVS Health (NYSE:CVS) and Abbott Laboratories (NYSE:ABT), as well as shares of famed chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM). Let’s take a look at each of these companies and their recent performances.
CVS Health (NYSE:CVS)
CVS Health runs a pharmacy retail chain named CVS Pharmacy, a pharmacy benefits manager CVS Caremark, and health insurance provider Aetna. On November 2, CVS beat Q3FY22 earnings expectations. Since the date of trade, CVS stock has gained 7.6%.
Is CVS a Buy, Hold, or Sell?
With 13 unanimous Buys, CVS Health stock has a Strong Buy consensus rating. On TipRanks, the average CVS Health price target of $120.85 implies 23.6% upside potential to current levels. Meanwhile, CVS stock has lost 4% so far this year.
Abbott Laboratories (NYSE:ABT)
Abbott Laboratories offers a diverse range of healthcare products. On October 19, after Carper bought ABT shares, Abbott posted solid Q3FY22 results that beat expectations and raised its guidance. However, the results were followed by an unprecedented sell-off in Abbott’s share price. Unfortunately for Carper, since the date of the trade, ABT stock has lost 6.8%.
Is Abbott Labs a Buy, Sell, or Hold?
On TipRanks, Abbott Laboratories stock commands a Strong Buy consensus rating. This is based on ten Buys versus three Hold ratings during the past three months. The average Abbott Laboratories price forecast of $116.08 implies 20.4% upside potential to current levels. Meanwhile, year-to-date, ABT stock has lost 29.5%.
Taiwan Semiconductor Manufacturing (NYSE:TSM)
Taiwan Semi manufactures and sells integrated circuits (ICs) and wafer semiconductor devices. On October 13, TSM posted robust Q3 results, beating both earnings and revenue expectations. Similar to the ABT purchase, TSM stock has lost 7.1% since the date of the stock purchase.
Is TSM a Good Investment?
Wall Street analysts believe TSM to be a good investment. On TipRanks, Taiwan Semi has a Strong Buy consensus rating based on four Buys and one Hold. The average Taiwan Semiconductor stock prediction of $93 implies 54.3% upside potential to current levels. Meanwhile, TSM stock has lost 52.6% so far this year.
Ending Thoughts
Carper’s recent buy views seem to have gone off the radar. Nonetheless, all three companies are just going through short-term rough patches. Should the politician hold on to the stocks for the long term, as analysts have a Strong Buy rating on them, these investments may turn out to be highly profitable for Carper.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On October 19, after Carper bought ABT shares, Abbott posted solid Q3FY22 results that beat expectations and raised its guidance. At the same time, Carper bought shares of healthcare companies CVS Health (NYSE:CVS) and Abbott Laboratories (NYSE:ABT), as well as shares of famed chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM). Abbott Laboratories (NYSE:ABT) Abbott Laboratories offers a diverse range of healthcare products. | At the same time, Carper bought shares of healthcare companies CVS Health (NYSE:CVS) and Abbott Laboratories (NYSE:ABT), as well as shares of famed chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM). On October 19, after Carper bought ABT shares, Abbott posted solid Q3FY22 results that beat expectations and raised its guidance. Abbott Laboratories (NYSE:ABT) Abbott Laboratories offers a diverse range of healthcare products. | At the same time, Carper bought shares of healthcare companies CVS Health (NYSE:CVS) and Abbott Laboratories (NYSE:ABT), as well as shares of famed chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM). Abbott Laboratories (NYSE:ABT) Abbott Laboratories offers a diverse range of healthcare products. On October 19, after Carper bought ABT shares, Abbott posted solid Q3FY22 results that beat expectations and raised its guidance. | At the same time, Carper bought shares of healthcare companies CVS Health (NYSE:CVS) and Abbott Laboratories (NYSE:ABT), as well as shares of famed chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM). Unfortunately for Carper, since the date of the trade, ABT stock has lost 6.8%. Abbott Laboratories (NYSE:ABT) Abbott Laboratories offers a diverse range of healthcare products. |
31342.0 | 2022-11-05 00:00:00 UTC | 3 Reasons to Buy AbbVie Stock Right Now | ABT | https://www.nasdaq.com/articles/3-reasons-to-buy-abbvie-stock-right-now | nan | nan | Despite the market downturn, pharma giant AbbVie (NYSE: ABBV) has performed well this year. The company's shares are up 8% in the past 10 months, easily beating the broader market. But can AbbVie maintain this pace? One of the bears' favorite arguments is that the healthcare company will lose U.S. patent exclusivity for Humira, its best-selling drug, next year.
That could be catastrophic for AbbVie as Humira has been its most important asset since it spun off from its former parent company, Abbott Laboratories, back in 2013. But despite this risk, there are excellent reasons to be bullish on AbbVie. Let's consider three of them.
ABBV data by YCharts.
1. Passing of the torch
AbbVie has tried to plan for the inevitable Humira patent cliff by pulling several moves. The company's blockbuster 2020 acquisition of Allergan was one of these moves. It allowed AbbVie to expand both its lineup and pipeline. Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq.
Between them, these two medicines treat many of the same conditions Humira targets. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira."
Exceeding Humira's peak sales would be a big deal. It is the most lucrative drug in the history of the industry. Last year, Humira achieved $20.7 billion in annual sales, its highest total ever for a single year. Skyrizi and Rinvoq don't seem close to that total, at least not yet. In the first nine months of the year, they generated a combined $5.3 billion in sales.
However, they have continued to earn label expansions and will probably win more. That will help them improve their sales. If these two products continue on the trajectory they have shown in the past few years -- and approach or exceed Humira's peak sales as Gonzalez predicts -- investors have little to fear from Humira's patent cliff.
2. Dividends matter
Counting its time spent under the wing of Abbott Laboratories, AbbVie is a Dividend King. It has raised its payouts for 50 consecutive years. In fact, the company recently announced a 5% dividend increase. AbbVie's cash payout ratio of 43% shows that it generates more than enough free cash flow to cover its current dividend and be able to afford even more increases.
Further, AbbVie offers a highly competitive yield of 4.03%, which is more than twice the S&P 500's average of 1.82%. Reliable, dividend-paying companies can help investors get through severe downturns or economic troubles. They can be a good source of passive income and smooth out market losses. AbbVie is a great option to consider for income-seeking investors.
3. So does valuation
Although AbbVie is flying high right now, the company remains reasonably valued. AbbVie's forward price-to-earnings ratio currently stands at 10.6, compared to 18.6 and 13.8 for the S&P 500 and the pharmaceutical industry, respectively. Although a low valuation can sometimes signal that a company's prospects aren't too bright, that's not the case for AbbVie.
The company is well on its way to replacing Humira thanks to Skyrizi, Rinvoq, and the products it got through the Allergan acquisition, including its Botox franchise. In other words, AbbVie isn't a value trap.
Buy and forget
There is much more to love about AbbVie. The company has a rich pipeline and will continue to earn approval for brand-new products. As a drugmaker, its products are must-haves for its clients, which makes it likely to get through challenging economic times with its business relatively unscathed.
And last but not least, long-term trends will only favor companies like AbbVie. With an aging population, we will need more innovative medicines in the future. All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while.
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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. | One of the bears' favorite arguments is that the healthcare company will lose U.S. patent exclusivity for Humira, its best-selling drug, next year. Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira." | Exceeding Humira's peak sales would be a big deal. If these two products continue on the trajectory they have shown in the past few years -- and approach or exceed Humira's peak sales as Gonzalez predicts -- investors have little to fear from Humira's patent cliff. All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while. | Another important part of AbbVie's strategy to replace Humira has been the rest of the company's immunology lineup: Skyrizi and Rinvoq. Their sales continue to grow rapidly, and AbbVie's CEO, Rick Gonzalez, recently made a bold prediction: "Skyrizi and Rinvoq have established outstanding launch trajectories across existing and new indications, giving us a high degree of confidence in the collective potential of these two assets to ultimately exceed the peak revenues achieved by Humira." If these two products continue on the trajectory they have shown in the past few years -- and approach or exceed Humira's peak sales as Gonzalez predicts -- investors have little to fear from Humira's patent cliff. | In the first nine months of the year, they generated a combined $5.3 billion in sales. All these factors, combined with AbbVie's dividend and a reasonable valuation, make it an ideal stock for investors to hold on to for a while. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
31343.0 | 2022-11-04 00:00:00 UTC | Abbott Laboratories (ABT) is Attracting Investor Attention: Here is What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-is-attracting-investor-attention%3A-here-is-what-you-should-know | nan | nan | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of infant formula, medical devices and drugs have returned -5.9% over the past month versus the Zacks S&P 500 composite's +1.2% change. The Zacks Medical - Products industry, to which Abbott belongs, has lost 1.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Abbott is expected to post earnings of $0.90 per share, indicating a change of -31.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.8% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.19 points to a change of -0.4% from the prior year. Over the last 30 days, this estimate has changed +4.4%.
For the next fiscal year, the consensus earnings estimate of $4.43 indicates a change of -14.7% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -4.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Abbott, the consensus sales estimate of $9.52 billion for the current quarter points to a year-over-year change of -17%. The $42.97 billion and $39.52 billion estimates for the current and next fiscal years indicate changes of -0.3% and -8%, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $10.41 billion in the last reported quarter, representing a year-over-year change of -4.7%. EPS of $1.15 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $9.58 billion, the reported revenues represent a surprise of +8.67%. The EPS surprise was +26.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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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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 one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report Shares of this maker of infant formula, medical devices and drugs have returned -5.9% over the past month versus the Zacks S&P 500 composite's +1.2% change. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Abbott Laboratories (ABT): Free Stock Analysis Report And if earnings estimates go up for a company, the fair value for its stock goes up. |
31344.0 | 2022-11-03 00:00:00 UTC | The Zacks Analyst Blog Highlights Abbott Laboratories, ServiceNow, Schlumberger, Shopify and Workday | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-abbott-laboratories-servicenow-schlumberger-shopify-and | nan | nan | For Immediate Release
Chicago, IL – November 3, 2022 – 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, ServiceNow, Inc. NOW, Schlumberger Ltd. SLB, Shopify Inc. SHOP and Workday, Inc. WDAY.
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for Abbott Labs, ServiceNow and Schlumberger
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, ServiceNow, Inc. and Schlumberger Ltd. 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 >>>
Abbott Laboratories' shares have declined -22.2% over the past year against the Zacks Medical - Products industry's decline of -49.3%. The company's total sales were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.
Excluding these negative factors, total worldwide sales increased 6% on an organic basis, benefiting from robust sales growth across the company's core Established Pharmaceuticals and Medical Devices segments.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship CGM system, FreeStyle Libre. Abbott exited the third quarter of 2022 with better-than-expected earnings and revenues. The raised 2022 guidance buoys optimism.
(You can read the full research report on Abbott Laboratories here >>>)
Shares of ServiceNow have underperformed the Zacks Computers - IT Services industry over the past year (-39.1% vs. -35.3%). The company is suffering from high inflation, unfavorable forex and challenging macro-economic environment. Stiff competition is a headwind and is expected to hurt prospects in the long haul.
However, robust growth in subscription revenues as reflected by the strong third-quarter 2022 results. The company is riding on the increasing adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to upgrade their infrastructure to cloud, the company is poised to boost uptake of its Now platform.
Further, its expanding global presence, solid partner base and strategic buyouts are expected to bolster growth prospects. Strategic alliances with the likes of Microsoft remain tailwinds.
(You can read the full research report on ServiceNow here >>>)
Schlumberger's shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+56.3% vs. +6.4%). The company is the largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the company is well-poised to take up new offshore projects in international markets.
The significant increase in oil prices is aiding its overall business. Increased participation in growth of drilling and completion activities across the world brightened the company's outlook. Schlumberger reported strong third-quarter results owing to strong activities in land and offshore resources in North America and Latin America.
However, the company's balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital spending budget remains a headwind for the company. As such, the stock warrants a cautious stance.
(You can read the full research report on Schlumberger here >>>)
Other noteworthy reports we are featuring today include Shopify Inc. and Workday, 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.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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Workday, Inc. (WDAY): Free Stock Analysis Report
ServiceNow, Inc. (NOW): Free Stock Analysis Report
Shopify Inc. (SHOP): 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, ServiceNow, Inc. NOW, Schlumberger Ltd. SLB, Shopify Inc. SHOP and Workday, Inc. WDAY. Abbott Laboratories (ABT): Free Stock Analysis Report 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, ServiceNow, Inc. NOW, Schlumberger Ltd. SLB, Shopify Inc. SHOP and Workday, Inc. WDAY. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for Abbott Labs, ServiceNow and Schlumberger The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Abbott Laboratories ABT, ServiceNow, Inc. NOW, Schlumberger Ltd. SLB, Shopify Inc. SHOP and Workday, Inc. WDAY. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for Abbott Labs, ServiceNow and Schlumberger The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Abbott Laboratories ABT, ServiceNow, Inc. NOW, Schlumberger Ltd. SLB, Shopify Inc. SHOP and Workday, Inc. WDAY. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Wednesday’s Analyst Blog: Top Research Reports for Abbott Labs, ServiceNow and Schlumberger The Zacks Research Daily presents the best research output of our analyst team. |
31345.0 | 2022-11-02 00:00:00 UTC | NZ's a2 Milk gets temporary approval to export infant milk formula to U.S. | ABT | https://www.nasdaq.com/articles/nzs-a2-milk-gets-temporary-approval-to-export-infant-milk-formula-to-u.s. | nan | nan | Adds details, background
Nov 3 (Reuters) - New Zealand's a2 Milk Co Ltd ATM.NZ has received U.S. approval to export its infant milk formula to the Unites States as the country faces a shortage of baby food.
Under the approval from the U.S. Food and Drug Administration (FDA), the dairy major will be able to sell and distribute its a2 Platinum infant milk formula product through to Jan. 6, 2023, the company said on Thursday.
The move will help plug a gap in baby food supply in the United States after Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula, in February recalled dozens of products after reports of serious bacterial infections in four infants.
"If the U.S. requires further support over an extended period, we have the proven ability to scale up significantly," said a2 Milk CEO David Bortolussi.
The company forecast sales during fiscal 2023 of up to 1 million cans all within the second half, assuming the FDA enforcement discretion remains in place throughout the period, it said.
It also flagged lower-than-average gross margins and higher distribution costs in fiscal 2023 due to potential air freight and rework costs in the near term, and marketing and trade investments to enter the U.S. market.
a2 had applied to sell its infant milk formula in the country earlier this year but the FDA had deferred its request in August.
(Reporting by Jaskiran Singh in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)
((Jaskiran.Singh@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 move will help plug a gap in baby food supply in the United States after Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula, in February recalled dozens of products after reports of serious bacterial infections in four infants. Under the approval from the U.S. Food and Drug Administration (FDA), the dairy major will be able to sell and distribute its a2 Platinum infant milk formula product through to Jan. 6, 2023, the company said on Thursday. The company forecast sales during fiscal 2023 of up to 1 million cans all within the second half, assuming the FDA enforcement discretion remains in place throughout the period, it said. | The move will help plug a gap in baby food supply in the United States after Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula, in February recalled dozens of products after reports of serious bacterial infections in four infants. Adds details, background Nov 3 (Reuters) - New Zealand's a2 Milk Co Ltd ATM.NZ has received U.S. approval to export its infant milk formula to the Unites States as the country faces a shortage of baby food. Under the approval from the U.S. Food and Drug Administration (FDA), the dairy major will be able to sell and distribute its a2 Platinum infant milk formula product through to Jan. 6, 2023, the company said on Thursday. | The move will help plug a gap in baby food supply in the United States after Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula, in February recalled dozens of products after reports of serious bacterial infections in four infants. Adds details, background Nov 3 (Reuters) - New Zealand's a2 Milk Co Ltd ATM.NZ has received U.S. approval to export its infant milk formula to the Unites States as the country faces a shortage of baby food. Under the approval from the U.S. Food and Drug Administration (FDA), the dairy major will be able to sell and distribute its a2 Platinum infant milk formula product through to Jan. 6, 2023, the company said on Thursday. | The move will help plug a gap in baby food supply in the United States after Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula, in February recalled dozens of products after reports of serious bacterial infections in four infants. Adds details, background Nov 3 (Reuters) - New Zealand's a2 Milk Co Ltd ATM.NZ has received U.S. approval to export its infant milk formula to the Unites States as the country faces a shortage of baby food. Under the approval from the U.S. Food and Drug Administration (FDA), the dairy major will be able to sell and distribute its a2 Platinum infant milk formula product through to Jan. 6, 2023, the company said on Thursday. |
31346.0 | 2022-11-02 00:00:00 UTC | Got $5,000? Buy These 3 Dividend Kings And Hold Them Forever | ABT | https://www.nasdaq.com/articles/got-%245000-buy-these-3-dividend-kings-and-hold-them-forever | nan | nan | Whether you're looking to make some extra dough from dividend income or build defensive investments into your portfolio, Dividend Kings are stocks you should know about these days. What they all have in common is this: they've raised their dividends for at least 50 (yup, 50) consecutive years.
The capacity to build such an impressive track record of payouts shows them to be among the most financially stable businesses, and makes them great choices as long-term investments for a portion of your nest egg.
In my view, there are three Dividend Kings worthy of special attention right now. Let's see how a $5,000 investment spread across this trio could boost your finances for decades to come.
1. AbbVie
As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021.
While Humira is in the process of going off patent, the company should continue to be in good shape thanks to sales of its constantly expanding portfolio of medicines. In 2023 alone, AbbVie could see as many as eight of its programs get approved by regulators, and with a myriad of oncology and immunology candidates in mid-stage clinical trials, it should deliver similar performance in the years that follow.
Since 2013, AbbVie's management has grown its dividend by 270%, and at the current share price, it has a forward yield of nearly 3.7%. If you invest one-third of $5,000 ($1,666) in it, you'd get $61.66 in dividend income after a year, which doesn't sound like much.
But when considering that the payout is likely to continue growing quite rapidly for the foreseeable future, holding AbbVie shares for one year should just be the start, and the biggest rewards will come to those who are the most patient.
2. Becton, Dickinson
Becton, Dickinson (NYSE: BDX) is an "everything company" in the healthcare sector, selling everything from syringes to diagnostic tests, medical devices, and scientific instruments for use in biomedical research.
That means it's buoyed by long-term growth trends in multiple industries, including pharma, biotech, and clinical care. It also means there's a relatively steady level of demand for many of its products, which provides enough predictability for the business to pay its dividend.
Since late 2013, Becton, Dickinson has boosted its payout by 76% though its forward yield of just above 1.5% is on the low side. Management explicitly endorses the idea of continuing to hike the dividend, and its $3.4 billion of free cash flow in 2021 suggests it will be feasible for it to do so.
Investing $1,666 into Becton, Dickinson today probably won't result in returns that beat the market anytime soon, but its payout ratio of around 52% means that there's plenty of room to keep raising the dividend for years, even in the absence of significant earnings growth -- and that should give investors a measure of confidence in its sustainability.
3. Abbott Laboratories
Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. The range of its product offerings spans from baby formula and glucose monitors to coronavirus tests and surgical sets for use in operating rooms.
As it competes in so many different product segments, it has the benefit of a durable top line that's resilient to disruption from economic phenomena or encroaching competition. After all, even if customers defect to another supplier for cardiac stents or some other product, each one accounts for just a tiny slice of Abbott's trailing 12-month revenue of $45 billion.
Abbott Labs isn't new to curating its mix of products to favor what's in demand, and the speed with which it developed rapid coronavirus diagnostic tests at the start of the pandemic demonstrates that it's still quite agile for such a large and established business. That dynamism is core to its long-term appeal.
In the last 10 years, the company has boosted its dividend by 236%. Presently, it yields a hair over 1.9%. Investing the remainder of your $5,000 in Abbott is unlikely to get you rich quickly, but it'll help you to accumulate wealth slowly and without major pullbacks.
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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 Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. The capacity to build such an impressive track record of payouts shows them to be among the most financially stable businesses, and makes them great choices as long-term investments for a portion of your nest egg. Investing $1,666 into Becton, Dickinson today probably won't result in returns that beat the market anytime soon, but its payout ratio of around 52% means that there's plenty of room to keep raising the dividend for years, even in the absence of significant earnings growth -- and that should give investors a measure of confidence in its sustainability. | Abbott Laboratories Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. AbbVie As the maker of Humira, one of the top-grossing drugs of all time, AbbVie (NYSE: ABBV) is practically a money printer with free cash flow topping $21.9 billion in 2021. Becton, Dickinson Becton, Dickinson (NYSE: BDX) is an "everything company" in the healthcare sector, selling everything from syringes to diagnostic tests, medical devices, and scientific instruments for use in biomedical research. | Abbott Laboratories Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. Whether you're looking to make some extra dough from dividend income or build defensive investments into your portfolio, Dividend Kings are stocks you should know about these days. Becton, Dickinson Becton, Dickinson (NYSE: BDX) is an "everything company" in the healthcare sector, selling everything from syringes to diagnostic tests, medical devices, and scientific instruments for use in biomedical research. | Abbott Laboratories Much like Becton, Dickinson, Abbott Laboratories (NYSE: ABT) wears many hats. Whether you're looking to make some extra dough from dividend income or build defensive investments into your portfolio, Dividend Kings are stocks you should know about these days. Since late 2013, Becton, Dickinson has boosted its payout by 76% though its forward yield of just above 1.5% is on the low side. |
31347.0 | 2022-11-02 00:00:00 UTC | Is DexCom a Good Healthcare Stock to Buy Now? | ABT | https://www.nasdaq.com/articles/is-dexcom-a-good-healthcare-stock-to-buy-now | nan | nan | Shares of the medical device maker DexCom (NASDAQ: DXCM) shot about 50% higher in October. Unfortunately, the stock is still around 25% below the peak it reached in late 2021.
Investors who have seen DexCom soar in the past only to come crashing down are justifiably nervous about adding the stock to their own portfolios. Let's look below the surface to see if it has any more fuel in the tank.
Why DexCom soared in October
On Oct. 28, DexCom stock jumped in response to a third-quarter earnings report that beat expectations on the top and bottom lines. Analysts expected adjusted earnings of $0.24 per share and were pleasantly surprised when the company reported a profit of $0.28 per share.
Image source: Getty Images.
DexCom specializes in constant blood-glucose monitors (CGMs) for diabetic patients. Earlier this year, the company began offering an older device called DexCom One at a lower cost in price-sensitive regions, and the strategy is working. International sales jumped 22% year over year, or 28% if you adjust for the strengthening U.S. dollar.
Reasons to buy DexCom now
Roughly 1 in 10 Americans are living with diabetes. Keeping blood sugar concentrations in an ideal range helps keep them out of the hospital and saves healthcare systems heaps in the process.
Despite discounting some older products, DexCom's overall business is getting more profitable. Third-quarter adjusted earnings came in at 20.9% of total revenue, which was 1.9% better than the previous year's period.
Investors can reasonably expect DexCom to become significantly more profitable over the next several quarters. In early October, the company launched its next-generation CGM called DexCom G7 in the United Kingdom, Germany, and other important markets around the world.
DexCom sent its application for clearance of the G7 device to U.S. regulators in late 2021, but some last-minute changes to the associated smartphone application have held up the process. DexCom has already responded to the FDA's concerns and expects G7 clearance in the important U.S. market by the end of the year.
Top reasons to remain cautious
DexCom isn't the only company marketing CGMs to diabetic patients. Its biggest rival, Abbott Laboratories (NYSE: ABT), received FDA clearance for its next-generation CGM, FreeStyle Libre 3, in May.
A long lead isn't the only reason DexCom could have a hard time competing with the much larger company's device. Abbott's inconspicuous device is the size of two stacked pennies, and it doesn't need to be replaced for 14 days at a time. The G7 is significantly larger and needs to be replaced every 10 days.
The diabetic patient population is probably big enough to drive strong demand for both Abbott's and DexCom's devices. That said, expectations for the G7 are extremely high. At recent prices, the stock costs more than 150 times the company's forward-looking earnings forecast. This means anything less than an ultra-successful launch could lead to heavy losses for investors who buy the stock at its present valuation.
A buy now?
Smaller size and a longer life span could be significant advantages for Abbott's CGM. With an arguably inferior product, growing into its ultra-high valuation won't be easy for DexCom. It's probably best to watch this stock from a safe distance -- at least until we see how well the G7 launch progresses.
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Cory Renauer has no position in any of the stocks mentioned. 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. | Its biggest rival, Abbott Laboratories (NYSE: ABT), received FDA clearance for its next-generation CGM, FreeStyle Libre 3, in May. Earlier this year, the company began offering an older device called DexCom One at a lower cost in price-sensitive regions, and the strategy is working. In early October, the company launched its next-generation CGM called DexCom G7 in the United Kingdom, Germany, and other important markets around the world. | Its biggest rival, Abbott Laboratories (NYSE: ABT), received FDA clearance for its next-generation CGM, FreeStyle Libre 3, in May. Why DexCom soared in October On Oct. 28, DexCom stock jumped in response to a third-quarter earnings report that beat expectations on the top and bottom lines. In early October, the company launched its next-generation CGM called DexCom G7 in the United Kingdom, Germany, and other important markets around the world. | Its biggest rival, Abbott Laboratories (NYSE: ABT), received FDA clearance for its next-generation CGM, FreeStyle Libre 3, in May. Why DexCom soared in October On Oct. 28, DexCom stock jumped in response to a third-quarter earnings report that beat expectations on the top and bottom lines. 10 stocks we like better than DexCom When our award-winning analyst team has a stock tip, it can pay to listen. | Its biggest rival, Abbott Laboratories (NYSE: ABT), received FDA clearance for its next-generation CGM, FreeStyle Libre 3, in May. Analysts expected adjusted earnings of $0.24 per share and were pleasantly surprised when the company reported a profit of $0.28 per share. Investors can reasonably expect DexCom to become significantly more profitable over the next several quarters. |
31348.0 | 2022-11-02 00:00:00 UTC | 3 Dividend-Paying Stocks to Buy in November and Hold Forever | ABT | https://www.nasdaq.com/articles/3-dividend-paying-stocks-to-buy-in-november-and-hold-forever | nan | nan | Are you seeking a steadily growing passive income stream? If so, these dividend-paying stocks are right up your alley.
All of these companies have a long history of making and raising their dividend payouts. Best of all, it looks like their best days are in front of them.
Image source: Getty Images.
CVS Health
You're most likely familiar with CVS Health's (NYSE: CVS) chain of retail pharmacies and walk-in medical clinics. But it's the businesses you don't really see that make this a great dividend-paying stock to buy right now. That said, you won't find CVS Health on the Dividend Aristocrats list. In 2018, the company froze its dividend payment to help pay for a transformative merger with the major U.S. health insurer Aetna.
The merger with Aetna has been so successful that CVS Health cranked up its quarterly dividend payout by 10% in early 2022. There could be another big payout bump coming soon. The company reported a medical benefit ratio (MBR) of 82.9% in the second quarter. This essentially means that for every $1 collected as monthly premiums, the company had to spend a little less than $0.83 in healthcare-related costs.
Aetna has one of the best MBRs in the business because CVS Health can provide many of the benefits it gets paid to manage. In addition to a retail pharmacy, the company owns a pharmacy benefits management business with around 110 million members.
Despite the years-long freeze, CVS Health's dividend has risen a stunning 144% since 2012 and it offers a 2.3% yield at the moment. With a unique combination of healthcare businesses that feed into each other, the payout could rise much further in the decade to come.
Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns heaps of hospitals in the U.S. and abroad. As a REIT, it can avoid paying income taxes so long as it distributes nearly all its earnings to investors in the form of dividends.
It isn't easy to grow a business when you can only reinvest a very limited portion of profits. Despite the challenge, the company has raised its quarterly payout for eight consecutive years. While many healthcare REITs had to reduce their payouts in response to the COVID-19 pandemic, Medical Properties Trust maintained a steady string of annual payout bumps.
A focus on essential hospital infrastructure isn't the only reason this REIT has proven more reliable than its peers. The company insists its tenants sign net leases that leave them responsible for all the variable costs of building ownership, such as taxes and maintenance.
At recent prices, shares of Medical Properties Trust offer an eye-popping 10.1% yield. With steady cash flows from net-leased hospitals, investors will more than likely see this payout continue moving in the right direction for many years to come.
Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is an ultra-reliable healthcare conglomerate that hasn't missed a quarterly dividend payment since 1924. Moreover, the company hasn't gone over a year without raising its payout at least once for 50 consecutive years.
One of Abbott's specialties is diagnostics, and soaring demand for COVID-19 tests drove earnings, and in turn the dividend, much higher. The company has been able to raise its payout a stunning 236% over the past 10 years.
Demand for COVID-19 tests is waning but Abbott's next-generation device for millions of diabetic patients will pick up the slack and drive growth in the years to come. The company's new continuous blood-glucose monitor (CGM) received clearance from the FDA in May. During the quarter that ended Sept. 30, 2022, U.S. diabetes care sales soared 31% year over year.
At recent prices, the stock offers a 1.9% yield, which is more modest than the other stocks on this list. Before you let that turn you away, know that soaring sales of its new CGM could help Abbott's payout rise the fastest. Adding some shares to your own portfolio and hanging on to them for the long run looks like a smart move right now.
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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 Abbott Laboratories (NYSE: ABT) is an ultra-reliable healthcare conglomerate that hasn't missed a quarterly dividend payment since 1924. The company insists its tenants sign net leases that leave them responsible for all the variable costs of building ownership, such as taxes and maintenance. With steady cash flows from net-leased hospitals, investors will more than likely see this payout continue moving in the right direction for many years to come. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is an ultra-reliable healthcare conglomerate that hasn't missed a quarterly dividend payment since 1924. In addition to a retail pharmacy, the company owns a pharmacy benefits management business with around 110 million members. Medical Properties Trust Medical Properties Trust (NYSE: MPW) is a real estate investment trust (REIT) that owns heaps of hospitals in the U.S. and abroad. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is an ultra-reliable healthcare conglomerate that hasn't missed a quarterly dividend payment since 1924. CVS Health You're most likely familiar with CVS Health's (NYSE: CVS) chain of retail pharmacies and walk-in medical clinics. Moreover, the company hasn't gone over a year without raising its payout at least once for 50 consecutive years. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is an ultra-reliable healthcare conglomerate that hasn't missed a quarterly dividend payment since 1924. CVS Health You're most likely familiar with CVS Health's (NYSE: CVS) chain of retail pharmacies and walk-in medical clinics. While many healthcare REITs had to reduce their payouts in response to the COVID-19 pandemic, Medical Properties Trust maintained a steady string of annual payout bumps. |
31349.0 | 2022-11-01 00:00:00 UTC | Baby formula maker Perrigo buying Nestle's Good Start brand, Wisconsin plant | ABT | https://www.nasdaq.com/articles/baby-formula-maker-perrigo-buying-nestles-good-start-brand-wisconsin-plant | nan | nan | By Jessica DiNapoli
NEW YORK, Nov 1 (Reuters) - Infant formula manufacturer Perrigo Company Plc PRGO.N said on Tuesday it is buying the Good Start brand and a Wisconsin plant that makes the product from Nestle SA NESN.S, as U.S. retailers recover from shortages of the good.
The deal is part of a $170 million investment that Perrigo is making in its U.S. infant formula manufacturing. The investment includes $60 million to expand the plant's capacity by roughly 100 million eight-ounce bottles each year.
U.S. retailers have been rationing formula and putting it behind lock-and-key due to a severe shortage stemming from the closure of a Sturgis, Michigan, Abbott Laboratories ABT.N plant earlier this year.
The shortage has improved in recent months, with about 87% of powder baby formula in stock the week ending Oct. 23, up from about 69% three months ago, according to market research firm IRI.
Perrigo, which makes 17 store-brand infant formulas including for Walmart Inc WMT.N and Target Corp TGT.N, could not meet consumer demand, leading to the deal, the company said in a news release. The company's other manufacturing facilities in Ohio and Vermont have been running at 115% of capacity.
Perrigo also works as a contract manufacturer for new formula brands, including Bobbie.
Good Start is a relatively "small player" in the U.S. infant formula market, which is dominated by Abbott's Similac and Reckitt Benckiser Group Plc's RKT.L Enfamil, said Tarun Malkani, the CEO of Nestle's Gerber Product's Company, in an interview.
"We invested in the U.S. in particular for years," Malkani said. "We never got the return in terms of scale or potential we hoped for."
Nestle has sent cans of specialized Alfamino formula and NAN from Europe to help try to alleviate the shortage earlier this year.
Perrigo will supply Nestle with Good Start formula so the company can fulfill its contracts with the Women, Infants and Children program, which helps poor families afford the item.
(Reporting by Jessica DiNapoli in New York Editing by Matthew Lewis)
((Jessica.DiNapoli@thomsonreuters.com; 845-591-4428;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. retailers have been rationing formula and putting it behind lock-and-key due to a severe shortage stemming from the closure of a Sturgis, Michigan, Abbott Laboratories ABT.N plant earlier this year. Perrigo, which makes 17 store-brand infant formulas including for Walmart Inc WMT.N and Target Corp TGT.N, could not meet consumer demand, leading to the deal, the company said in a news release. Good Start is a relatively "small player" in the U.S. infant formula market, which is dominated by Abbott's Similac and Reckitt Benckiser Group Plc's RKT.L Enfamil, said Tarun Malkani, the CEO of Nestle's Gerber Product's Company, in an interview. | U.S. retailers have been rationing formula and putting it behind lock-and-key due to a severe shortage stemming from the closure of a Sturgis, Michigan, Abbott Laboratories ABT.N plant earlier this year. By Jessica DiNapoli NEW YORK, Nov 1 (Reuters) - Infant formula manufacturer Perrigo Company Plc PRGO.N said on Tuesday it is buying the Good Start brand and a Wisconsin plant that makes the product from Nestle SA NESN.S, as U.S. retailers recover from shortages of the good. The deal is part of a $170 million investment that Perrigo is making in its U.S. infant formula manufacturing. | U.S. retailers have been rationing formula and putting it behind lock-and-key due to a severe shortage stemming from the closure of a Sturgis, Michigan, Abbott Laboratories ABT.N plant earlier this year. By Jessica DiNapoli NEW YORK, Nov 1 (Reuters) - Infant formula manufacturer Perrigo Company Plc PRGO.N said on Tuesday it is buying the Good Start brand and a Wisconsin plant that makes the product from Nestle SA NESN.S, as U.S. retailers recover from shortages of the good. Good Start is a relatively "small player" in the U.S. infant formula market, which is dominated by Abbott's Similac and Reckitt Benckiser Group Plc's RKT.L Enfamil, said Tarun Malkani, the CEO of Nestle's Gerber Product's Company, in an interview. | U.S. retailers have been rationing formula and putting it behind lock-and-key due to a severe shortage stemming from the closure of a Sturgis, Michigan, Abbott Laboratories ABT.N plant earlier this year. By Jessica DiNapoli NEW YORK, Nov 1 (Reuters) - Infant formula manufacturer Perrigo Company Plc PRGO.N said on Tuesday it is buying the Good Start brand and a Wisconsin plant that makes the product from Nestle SA NESN.S, as U.S. retailers recover from shortages of the good. The deal is part of a $170 million investment that Perrigo is making in its U.S. infant formula manufacturing. |
31350.0 | 2022-11-01 00:00:00 UTC | This Groundbreaking Device Just Keeps Winning for Abbott Labs | ABT | https://www.nasdaq.com/articles/this-groundbreaking-device-just-keeps-winning-for-abbott-labs | nan | nan | In late September, Abbott Laboratories (NYSE: ABT) shared encouraging results from a study that tracked the efficacy of its FreeStyle Libre continuous glucose monitor (CGM) device for type 2 diabetes.
What were the results from the study that amounted to such great news for Abbott and type 2 diabetes patients? What impact could this have on the future sales of the franchise? Let's dig into the study's findings and the CGM market to answer these questions.
A device with life-changing results for patients
Abbott retrospectively observed 5,933 patients diagnosed with type 2 diabetes via the French national health claims database between Aug. 1, 2017, and Dec. 31, 2018. These patients followed a once-daily basal-only insulin treatment plan and used the FreeStyle Libre system to monitor their blood sugar (glucose) levels.
A basal-only insulin regimen is often prescribed by a doctor when oral medications are unable to regulate glucose levels efficiently. The FreeStyle Libre system is a minimally invasive sensor applied to the back of the upper arm, allowing a patient to check their glucose at any time. And that's without the inconvenience or finger-prick pain often associated with glucose meters.
Abbott's study followed a select group of patients 12 months before FreeStyle Libre initiation and up to 24 months after FreeStyle Libre initiation to assess the frequency of acute diabetes-related events (ADEs), which are emergencies warranting hospitalization. These include severely low glucose levels (hypoglycemia); severely high glucose levels (hyperglycemia); a life-threatening condition called diabetic ketoacidosis, characterized by high glucose levels for prolonged periods; and comas.
The findings of this study were truly remarkable. Patients were 67% less likely overall to be hospitalized due to an ADE one year after initiating the FreeStyle Libre treatment. And this reduction was sustained over a two-year period, regardless of whether patients received care from a general healthcare practitioner or a diabetes specialist.
In diabetes care, more information can give patients and their doctors a better understanding of how their condition is trending. This is critical in helping doctors to advise patients on lifestyle and medication changes necessary to control their condition better if it is unfavorably progressing. That's the secret sauce behind how the FreeStyle Libre system has been so miraculous for diabetes patients.
Image source: Getty Images.
Plenty of room for future growth
FreeStyle Libre has already established itself as an essential device in recent years. And the franchise will only become more important with each passing year.
Rising global obesity rates will likely push the number of patients with diabetes higher over time. In fact, the International Diabetes Federation anticipates that the prevalence of diabetes will soar more than 50% from 463 million people in 2019 to 700 million by 2045.
As it stands, the global CGM market was already worth $6 billion in 2021. With more patients being diagnosed with diabetes and turning to CGMs, Polaris Market Research expects the global CGM market to compound at 10.1% annually to reach $14.8 billion by 2029.
FreeStyle Libre is on track to generate around $4 billion in sales for Abbott in 2022. For context, this is approximately 10% of the $43.2 billion in total sales analysts expect from the company for the year. Yet, thanks to growing demand, the revolutionary CGM should have no trouble continuing to post double-digit annual sales growth moving forward.
The Dividend King is a buy
With 50 years of dividend hikes to its credit, Abbott is a Dividend King. And with the company's dividend payout ratio clocking in at 36%, Abbott should have the flexibility to continue building on its dividend growth streak in the years ahead.
Income investors can snatch up shares of Abbott and its 1.9% dividend yield at a forward price-to-earnings ratio of 21.8, just slightly below the medical devices industry average of 22.6. The stock is a buy for investors seeking a decent starting income with future growth potential.
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Kody Kester has positions in Abbott Laboratories. 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. | In late September, Abbott Laboratories (NYSE: ABT) shared encouraging results from a study that tracked the efficacy of its FreeStyle Libre continuous glucose monitor (CGM) device for type 2 diabetes. The FreeStyle Libre system is a minimally invasive sensor applied to the back of the upper arm, allowing a patient to check their glucose at any time. Income investors can snatch up shares of Abbott and its 1.9% dividend yield at a forward price-to-earnings ratio of 21.8, just slightly below the medical devices industry average of 22.6. | In late September, Abbott Laboratories (NYSE: ABT) shared encouraging results from a study that tracked the efficacy of its FreeStyle Libre continuous glucose monitor (CGM) device for type 2 diabetes. Abbott's study followed a select group of patients 12 months before FreeStyle Libre initiation and up to 24 months after FreeStyle Libre initiation to assess the frequency of acute diabetes-related events (ADEs), which are emergencies warranting hospitalization. These include severely low glucose levels (hypoglycemia); severely high glucose levels (hyperglycemia); a life-threatening condition called diabetic ketoacidosis, characterized by high glucose levels for prolonged periods; and comas. | In late September, Abbott Laboratories (NYSE: ABT) shared encouraging results from a study that tracked the efficacy of its FreeStyle Libre continuous glucose monitor (CGM) device for type 2 diabetes. A device with life-changing results for patients Abbott retrospectively observed 5,933 patients diagnosed with type 2 diabetes via the French national health claims database between Aug. 1, 2017, and Dec. 31, 2018. Abbott's study followed a select group of patients 12 months before FreeStyle Libre initiation and up to 24 months after FreeStyle Libre initiation to assess the frequency of acute diabetes-related events (ADEs), which are emergencies warranting hospitalization. | In late September, Abbott Laboratories (NYSE: ABT) shared encouraging results from a study that tracked the efficacy of its FreeStyle Libre continuous glucose monitor (CGM) device for type 2 diabetes. These patients followed a once-daily basal-only insulin treatment plan and used the FreeStyle Libre system to monitor their blood sugar (glucose) levels. With more patients being diagnosed with diabetes and turning to CGMs, Polaris Market Research expects the global CGM market to compound at 10.1% annually to reach $14.8 billion by 2029. |
31351.0 | 2022-11-01 00:00:00 UTC | Eli Lilly cuts annual profit forecast on stronger dollar | ABT | https://www.nasdaq.com/articles/eli-lilly-cuts-annual-profit-forecast-on-stronger-dollar | nan | nan | Adds details on earnings, background
Nov 1 (Reuters) - Eli Lilly and Co LLY.N on Tuesday cut its annual profit forecast for the third time, as a stronger dollar piled more pressure on the drugmaker struggling with lower insulin prices and generic competition for its cancer drug.
The company now expects adjusted full-year earnings of $7.70 to $7.85 per share, compared to its prior forecast of $7.90 to $8.05.
The drugmaker said it took an additional $300 million hit from the stronger dollar.
Multinational companies such as Abbott Laboratories ABT. and Johnson & Johnson JNJ.N have been hit by the dollar's strength against a basket of currencies.
Sales of Mounjaro, Lilly's newly-approved diabetes drug, was $187.3 million, with over half coming from the United States.
(Reporting by Bhanvi Satija and Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Multinational companies such as Abbott Laboratories ABT. Adds details on earnings, background Nov 1 (Reuters) - Eli Lilly and Co LLY.N on Tuesday cut its annual profit forecast for the third time, as a stronger dollar piled more pressure on the drugmaker struggling with lower insulin prices and generic competition for its cancer drug. The company now expects adjusted full-year earnings of $7.70 to $7.85 per share, compared to its prior forecast of $7.90 to $8.05. | Multinational companies such as Abbott Laboratories ABT. Adds details on earnings, background Nov 1 (Reuters) - Eli Lilly and Co LLY.N on Tuesday cut its annual profit forecast for the third time, as a stronger dollar piled more pressure on the drugmaker struggling with lower insulin prices and generic competition for its cancer drug. The drugmaker said it took an additional $300 million hit from the stronger dollar. | Multinational companies such as Abbott Laboratories ABT. Adds details on earnings, background Nov 1 (Reuters) - Eli Lilly and Co LLY.N on Tuesday cut its annual profit forecast for the third time, as a stronger dollar piled more pressure on the drugmaker struggling with lower insulin prices and generic competition for its cancer drug. The company now expects adjusted full-year earnings of $7.70 to $7.85 per share, compared to its prior forecast of $7.90 to $8.05. | Multinational companies such as Abbott Laboratories ABT. The company now expects adjusted full-year earnings of $7.70 to $7.85 per share, compared to its prior forecast of $7.90 to $8.05. The drugmaker said it took an additional $300 million hit from the stronger dollar. |
31352.0 | 2022-10-28 00:00:00 UTC | Is This Dividend King a Buy Near Its 52-Week Low? | ABT | https://www.nasdaq.com/articles/is-this-dividend-king-a-buy-near-its-52-week-low | nan | nan | Even with the rally in the S&P 500 index over the past week, the index is still 20% lower than where it began the year. The state of the global economy, coupled with military conflict in Ukraine, has many stocks trading near their 52-week low.
Down 30% so far in 2022, diversified healthcare company Abbott Laboratories (NYSE: ABT) is one such example. At just 5% above its 52-week low of $93, is Abbott a buy for dividend growth investors? A look at its fundamentals and valuation will help show whether it could fit within a dividend-growth portfolio.
Abbott navigated near-term headwinds
Abbott's products are sold in over 160 countries and used by millions of people each day. They include heart pumps and its FreeStyle Libre diabetes care franchise, COVID-19 rapid tests, products like Similac infant formula and Ensure nutritional shakes, and generic medicines.
The company recorded $10.4 billion in revenue during its third quarter (ended Sept. 30), down 4.7% year over year. At first glance, a decline in revenue is something investors don't want to see. But this wasn't due to lower sales volume or weakened pricing power. The U.S. dollar remained robust versus the currencies of other countries where Abbott sales its products. Factoring this into the mix, the company's organic sales were actually up 1.3% over the year-ago period.
Abbott's sales grew in two out of its four segments. The medical devices business logged 6.4% organic sales growth year over year in the third quarter, while sales for its established pharmaceuticals segment surged 12%. The medical devices segment was buoyed by double-digit growth in the U.S. in its electrophysiology, structural heart, and diabetes care categories. And the established pharmaceuticals business, which focuses on off-patent medicines, was boosted by tremendous growth in India, China, and Brazil.
A slowdown in COVID-19 testing led to a 0.6% decline in the diagnostics segment's sales. Lastly, the nutrition segment's sales slipped 10.3%. This was the result of a halt in manufacturing some infant formula products in February at its factory in Sturgis, Michigan. Production wasn't resumed until part way through the third quarter.
Abbott produced $1.15 in adjusted diluted earnings per share (EPS) for the quarter, which was a 17.9% drop from the year-ago period. An increase in the company's cost of products sold during the quarter contributed to a nearly 350-basis-point decline year over year in adjusted net margin to 19.6%. Abbott's 1.4% decline in its shares outstanding to 1.8 billion wasn't able to offset the reduction in profitability in the quarter.
With the company devoting more than 6% of its net sales to research and development, analysts anticipate that Abbott will remain a major innovator. This is why they believe the company is positioned to generate 11% annual growth in adjusted diluted EPS growth through the next five years.
Image source: Getty Images.
A dividend with strong growth potential
Shares of Abbott currently have a dividend yield of 1.9%, which is a bit better than the S&P 500 index's 1.7% yield. And it doesn't appear to come at the cost of reduced potential for dividend growth.
That's because Abbott's dividend payout ratio currently stands at 36%. This allows the company to keep enough capital to fund expansion, debt repayment, and share buybacks. With this balanced payout ratio, I expect Abbott's dividend to grow nearly as fast as its earnings over the next several years.
The stock is fairly valued
Abbott's shares trade at a forward price-to-earnings ratio of 22.1, which is a tad below the medical devices industry's average of 22.8. Given Abbott's reputation and the fact that its earnings growth prospects are in line with the medical devices industry average of 12.2% a year, this is a rational price for long-term investors to pay.
Abbott is a top-notch business trading at a reasonable valuation -- giving investors a chance to buy and hold it for years to come.
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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. | Down 30% so far in 2022, diversified healthcare company Abbott Laboratories (NYSE: ABT) is one such example. They include heart pumps and its FreeStyle Libre diabetes care franchise, COVID-19 rapid tests, products like Similac infant formula and Ensure nutritional shakes, and generic medicines. The stock is fairly valued Abbott's shares trade at a forward price-to-earnings ratio of 22.1, which is a tad below the medical devices industry's average of 22.8. | Down 30% so far in 2022, diversified healthcare company Abbott Laboratories (NYSE: ABT) is one such example. The medical devices business logged 6.4% organic sales growth year over year in the third quarter, while sales for its established pharmaceuticals segment surged 12%. Abbott produced $1.15 in adjusted diluted earnings per share (EPS) for the quarter, which was a 17.9% drop from the year-ago period. | Down 30% so far in 2022, diversified healthcare company Abbott Laboratories (NYSE: ABT) is one such example. The medical devices business logged 6.4% organic sales growth year over year in the third quarter, while sales for its established pharmaceuticals segment surged 12%. Given Abbott's reputation and the fact that its earnings growth prospects are in line with the medical devices industry average of 12.2% a year, this is a rational price for long-term investors to pay. | Down 30% so far in 2022, diversified healthcare company Abbott Laboratories (NYSE: ABT) is one such example. At just 5% above its 52-week low of $93, is Abbott a buy for dividend growth investors? The medical devices business logged 6.4% organic sales growth year over year in the third quarter, while sales for its established pharmaceuticals segment surged 12%. |
31353.0 | 2022-10-25 00:00:00 UTC | Is Weakness In Abbott Laboratories (NYSE:ABT) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects? | ABT | https://www.nasdaq.com/articles/is-weakness-in-abbott-laboratories-nyse%3Aabt-stock-a-sign-that-the-market-could-be-wrong | nan | nan | Abbott Laboratories (NYSE:ABT) has had a rough three months with its share price down 9.9%. However, stock prices are usually driven by a company’s financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Abbott Laboratories' ROE in this article.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
How Is ROE Calculated?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Abbott Laboratories is:
21% = US$7.9b ÷ US$37b (Based on the trailing twelve months to September 2022).
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.21 in profit.
What Has ROE Got To Do With Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
A Side By Side comparison of Abbott Laboratories' Earnings Growth And 21% ROE
To begin with, Abbott Laboratories seems to have a respectable ROE. Especially when compared to the industry average of 11% the company's ROE looks pretty impressive. This certainly adds some context to Abbott Laboratories' exceptional 40% net income growth seen over the past five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
We then compared Abbott Laboratories' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 19% in the same period.
NYSE:ABT Past Earnings Growth October 25th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for ABT? You can find out in our latest intrinsic value infographic research report.
Is Abbott Laboratories Making Efficient Use Of Its Profits?
Abbott Laboratories has a significant three-year median payout ratio of 51%, meaning the company only retains 49% of its income. This implies that the company has been able to achieve high earnings growth despite returning most of its profits to shareholders.
Additionally, Abbott Laboratories has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 40% over the next three years. Despite the lower expected payout ratio, the company's ROE is not expected to change by much.
Summary
In total, we are pretty happy with Abbott Laboratories' performance. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that's probably a good sign. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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 had a rough three months with its share price down 9.9%. NYSE:ABT Past Earnings Growth October 25th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. Has the market priced in the future outlook for ABT? | Abbott Laboratories (NYSE:ABT) has had a rough three months with its share price down 9.9%. NYSE:ABT Past Earnings Growth October 25th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. Has the market priced in the future outlook for ABT? | Abbott Laboratories (NYSE:ABT) has had a rough three months with its share price down 9.9%. NYSE:ABT Past Earnings Growth October 25th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. Has the market priced in the future outlook for ABT? | Abbott Laboratories (NYSE:ABT) has had a rough three months with its share price down 9.9%. NYSE:ABT Past Earnings Growth October 25th 2022 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. Has the market priced in the future outlook for ABT? |
31354.0 | 2022-10-25 00:00:00 UTC | Are Options Traders Betting on a Big Move in Abbott (ABT) Stock? | ABT | https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-abbott-abt-stock | nan | nan | Investors in Abbott ABT need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 18, 2022 $55.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Abbott shares, but what is the fundamental picture for the company? Currently, Abbott is a Zacks Rank #3 (Hold) in the Medical - Products industry that ranks in the Bottom 44% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while four analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 95 cents per share to 90 cents in that period.
Given the way analysts feel about Abbott right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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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. | Investors in Abbott ABT need to pay close attention to the stock based on moves in the options market lately. Abbott Laboratories (ABT): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Abbott ABT need to pay close attention to the stock based on moves in the options market lately. Abbott Laboratories (ABT): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Abbott ABT need to pay close attention to the stock based on moves in the options market lately. Abbott Laboratories (ABT): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. | Investors in Abbott ABT need to pay close attention to the stock based on moves in the options market lately. Abbott Laboratories (ABT): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. |
31355.0 | 2022-10-24 00:00:00 UTC | Abbott Laboratories (ABT) Is a Trending Stock: Facts to Know Before Betting on It | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-is-a-trending-stock%3A-facts-to-know-before-betting-on-it | nan | nan | Abbott (ABT) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of infant formula, medical devices and drugs have returned -5.6% over the past month versus the Zacks S&P 500 composite's -0.8% change. The Zacks Medical - Products industry, to which Abbott belongs, has lost 2.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Abbott is expected to post earnings of $0.90 per share, indicating a change of -31.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.8% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.19 points to a change of -0.4% from the prior year. Over the last 30 days, this estimate has changed +4.4%.
For the next fiscal year, the consensus earnings estimate of $4.43 indicates a change of -14.7% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -4.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Abbott, the consensus sales estimate of $9.52 billion for the current quarter points to a year-over-year change of -17%. The $42.97 billion and $39.6 billion estimates for the current and next fiscal years indicate changes of -0.3% and -7.8%, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $10.41 billion in the last reported quarter, representing a year-over-year change of -4.7%. EPS of $1.15 for the same period compares with $1.40 a year ago.
Compared to the Zacks Consensus Estimate of $9.58 billion, the reported revenues represent a surprise of +8.67%. The EPS surprise was +26.37%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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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) has been one of the most searched-for stocks on Zacks.com lately. Abbott Laboratories (ABT): Free Stock Analysis Report Shares of this maker of infant formula, medical devices and drugs have returned -5.6% over the past month versus the Zacks S&P 500 composite's -0.8% change. | Abbott (ABT) has been one of the most searched-for stocks on Zacks.com lately. Abbott Laboratories (ABT): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. | Abbott (ABT) has been one of the most searched-for stocks on Zacks.com lately. Abbott Laboratories (ABT): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. | Abbott (ABT) has been one of the most searched-for stocks on Zacks.com lately. Abbott Laboratories (ABT): Free Stock Analysis Report And if earnings estimates go up for a company, the fair value for its stock goes up. |
31356.0 | 2022-10-23 00:00:00 UTC | What's Next For Intuitive Surgical Stock After Upbeat Q3? | ABT | https://www.nasdaq.com/articles/whats-next-for-intuitive-surgical-stock-after-upbeat-q3 | nan | nan | Intuitive Surgical stock (NASDAQ: ISRG) has seen an 11% rise in a month, while it is up 14% in a week. This compares with a 2% fall for the broader S&P500 index in a month and a 2% rise in a week. The rise for ISRG can be attributed to solid Q3 performance, with revenue falling in line and earnings slightly above our estimates.
Intuitive Surgical’s Revenue rose 11% to $1.6 billion, driven by a solid 20% rise in global da Vinci procedure volume. The company’s installed base grew 13% y-o-y to 7,364. Although its adjusted EPS of $1.19 reflected no growth compared to the prior year’s quarter, it was comfortably above our $1.16 and consensus estimate of $1.12.
Intuitive Surgical did not only report upbeat results but also raised its outlook for the full-year 2022, with procedure growth now expected to be between 17% and 18%, compared to the prior guidance of 14% to 16.5%. We have updated our model to reflect the latest quarterly results, and we now estimate the 2022 adjusted EPS to be higher at $4.79, vs. our earlier estimate of $4.70. However, after the recent rise in ISRG stock, we don’t see any significant upside. We estimate Intuitive Surgical’s Valuation to be around $242 per share, which is just 11% above the current market price of $218. At its current levels, ISRG is trading at 46x forward earnings, compared to the last three-year average of 47x, implying that it has only a little room for growth.
But what about the near term?
Now that ISRG stock has seen a rise of 11% in a month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is an equal chance of a rise or fall in ISRG stock over the next month. A move of 11% or more in a month for ISRG has occurred 215 times in the past ten years. Of those instances, 108 resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 108 of 215 or a 50% chance of a rise in ISRG stock over the next month. See our analysis of Intuitive Surgical Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving 14% or more over five days, the stock rose on 17% of the occasions in the next five days.
After moving 10% or more over ten days, the stock rose on 40% of the occasions in the next ten days.
After moving 11% or more over a twenty-one-day period, the stock rose on 50% of the occasions in the next twenty-one days.
This pattern suggests an equal chance of a rise or fall in ISRG stock over the next month, while it has a higher chance of a decline in the next five and ten days.
Intuitive Surgical (ISRG) Return (Recent) Comparison With Peers
Five-Day Return: ISRG highest at 13.9%; BDX lowest at -0.4%
Ten-Day Return: ISRG highest at 9.7%; BDX lowest at -1.2%
Twenty-One Day Return: ISRG highest at 11.2%; BDX lowest at -5.2%
While ISRG stock looks like it has only a little room for growth, it is helpful to see how Intuitive Surgical’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
With inflation rising and the Fed raising interest rates, among other factors, ISRG stock has plunged 40% this year. Can it drop more? See how low Intuitive Surgical stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
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 Biogen vs. AGCO.
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Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return 14% -40% 205%
S&P 500 Return 3% -22% 65%
Trefis Multi-Strategy Portfolio 2% -25% 197%
[1] Month-to-date and year-to-date as of 10/20/2022
[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. | Intuitive Surgical’s Revenue rose 11% to $1.6 billion, driven by a solid 20% rise in global da Vinci procedure volume. Intuitive Surgical did not only report upbeat results but also raised its outlook for the full-year 2022, with procedure growth now expected to be between 17% and 18%, compared to the prior guidance of 14% to 16.5%. At its current levels, ISRG is trading at 46x forward earnings, compared to the last three-year average of 47x, implying that it has only a little room for growth. | Although its adjusted EPS of $1.19 reflected no growth compared to the prior year’s quarter, it was comfortably above our $1.16 and consensus estimate of $1.12. Intuitive Surgical (ISRG) Return (Recent) Comparison With Peers Five-Day Return: ISRG highest at 13.9%; BDX lowest at -0.4% Ten-Day Return: ISRG highest at 9.7%; BDX lowest at -1.2% Twenty-One Day Return: ISRG highest at 11.2%; BDX lowest at -5.2% While ISRG stock looks like it has only a little room for growth, it is helpful to see how Intuitive Surgical’s Peers fare on metrics that matter. Total [2] ISRG Return 14% -40% 205% S&P 500 Return 3% -22% 65% Trefis Multi-Strategy Portfolio 2% -25% 197% [1] Month-to-date and year-to-date as of 10/20/2022 [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. | This pattern suggests an equal chance of a rise or fall in ISRG stock over the next month, while it has a higher chance of a decline in the next five and ten days. Intuitive Surgical (ISRG) Return (Recent) Comparison With Peers Five-Day Return: ISRG highest at 13.9%; BDX lowest at -0.4% Ten-Day Return: ISRG highest at 9.7%; BDX lowest at -1.2% Twenty-One Day Return: ISRG highest at 11.2%; BDX lowest at -5.2% While ISRG stock looks like it has only a little room for growth, it is helpful to see how Intuitive Surgical’s Peers fare on metrics that matter. Total [2] ISRG Return 14% -40% 205% S&P 500 Return 3% -22% 65% Trefis Multi-Strategy Portfolio 2% -25% 197% [1] Month-to-date and year-to-date as of 10/20/2022 [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. | Intuitive Surgical stock (NASDAQ: ISRG) has seen an 11% rise in a month, while it is up 14% in a week. We estimate Intuitive Surgical’s Valuation to be around $242 per share, which is just 11% above the current market price of $218. This pattern suggests an equal chance of a rise or fall in ISRG stock over the next month, while it has a higher chance of a decline in the next five and ten days. |
31357.0 | 2022-10-22 00:00:00 UTC | Is Abbott Laboratories Still a Good Dividend Stock to Buy? | ABT | https://www.nasdaq.com/articles/is-abbott-laboratories-still-a-good-dividend-stock-to-buy | nan | nan | When it rains, it pours. After several weeks of relative quiet, dividend-paying healthcare businesses are reporting quarterly results left and right. Unfortunately, not everyone is telling stories that the stock market wants to hear.
Shares of Abbott Laboratories (NYSE: ABT) slipped more than 6% lower in response to the company's third-quarterearnings callon Wednesday, Oct. 19, 2022. The company reported earnings per share that beat analyst expectations by about 23%, but investors couldn't get over declining sales from more than one of Abbott's operating segments.
Is Abbott still a good dividend stock to buy, or will the challenges currently limiting growth be its undoing? Here's what you should know before you turn your back on this company and its legendary dividend program.
A mixed bag for medical devices
Medical devices are arguably Abbott's most important operating segment, so it was more than a little disturbing to see international device sales decline by 9% year over year and 7% compared to the previous quarter.
The company blamed intermittent lockdowns in China and supply constraints for soft device sales internationally. The important takeaway here is that both of these factors are temporary.
Supply constraints that have hampered international sales of cardiovascular devices haven't been a problem for the U.S. launch of Abbott's next-generation constant blood glucose monitor (CGM), the Freestyle Libre 3. Roughly one out of every 10 Americans has diabetes, and many are already on board with CGM. In the U.S., the FDA granted Abbott's new CGM clearance in May, and it's already in use by 4.5 million people worldwide.
Globally, second-quarter medical device sales grew 6.4% year over year. As supply chain constraints work themselves out, we could see this segment start growing at a double-digit percentage again.
Declining COVID-19 test revenue
Abbott Laboratories reported COVID-19 test revenue above its own expectation at around $1.7 billion during the second quarter. This is a decline from the previous year; investors can probably expect this figure to slide further in 2023.
Steadily declining demand for COVID tests will be a headwind, but it isn't anything the company can't overcome with soaring CGM sales. At the moment, COVID testing is responsible for just 16% of total revenue.
Never mind stumbling nutrition sales
Traditionally, nutrition sales have grown at a mid-single-digit percentage. The abrupt closures of a manufacturing facility that makes special baby formulas in February and then again in June caused third-quarter U.S. nutrition segment sales to tumble more than 25% year over year.
Closures and recalls regarding Abbott's nutrition business were embarrassing, but they highlight the company's dominant position in this niche. Abbott intends to maintain its position by investing $500 million into a second nutrition product manufacturing facility in the U.S. This should prevent a repeat of the national baby formula shortage that pressured nutrition sales this year.
Image source: Getty Images.
How much passive income to expect
At recent prices, shares of Abbott offer investors a 1.9% yield that could rise significantly in the years ahead. Over the past year, the company used just 38% of its earnings to meet its dividend commitment.
A well-funded dividend program means shareholders can expect their quarterly payouts to rise roughly in line with the company's bottom line. At the midpoint of its guidance range, the company expects its bottom line to flatten out in 2022. That's impressive considering all the extra challenges facing Abbott this year.
Declining COVID revenue and supply chain constraints might make 2022 a flat year for earnings, but these challenges are temporary. The strength of its decades-old nutrition brands and its new device for the world's enormous population of diabetic patients will more than likely return Abbott's bottom line to double-digit year-over-year growth. Put it all together and it looks like Abbott is still a great dividend stock to buy now and hold for the long run.
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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. | Shares of Abbott Laboratories (NYSE: ABT) slipped more than 6% lower in response to the company's third-quarterearnings callon Wednesday, Oct. 19, 2022. Supply constraints that have hampered international sales of cardiovascular devices haven't been a problem for the U.S. launch of Abbott's next-generation constant blood glucose monitor (CGM), the Freestyle Libre 3. How much passive income to expect At recent prices, shares of Abbott offer investors a 1.9% yield that could rise significantly in the years ahead. | Shares of Abbott Laboratories (NYSE: ABT) slipped more than 6% lower in response to the company's third-quarterearnings callon Wednesday, Oct. 19, 2022. A mixed bag for medical devices Medical devices are arguably Abbott's most important operating segment, so it was more than a little disturbing to see international device sales decline by 9% year over year and 7% compared to the previous quarter. Declining COVID-19 test revenue Abbott Laboratories reported COVID-19 test revenue above its own expectation at around $1.7 billion during the second quarter. | Shares of Abbott Laboratories (NYSE: ABT) slipped more than 6% lower in response to the company's third-quarterearnings callon Wednesday, Oct. 19, 2022. The company reported earnings per share that beat analyst expectations by about 23%, but investors couldn't get over declining sales from more than one of Abbott's operating segments. A mixed bag for medical devices Medical devices are arguably Abbott's most important operating segment, so it was more than a little disturbing to see international device sales decline by 9% year over year and 7% compared to the previous quarter. | Shares of Abbott Laboratories (NYSE: ABT) slipped more than 6% lower in response to the company's third-quarterearnings callon Wednesday, Oct. 19, 2022. The company reported earnings per share that beat analyst expectations by about 23%, but investors couldn't get over declining sales from more than one of Abbott's operating segments. A well-funded dividend program means shareholders can expect their quarterly payouts to rise roughly in line with the company's bottom line. |
31358.0 | 2022-10-21 00:00:00 UTC | SPLG, PFE, TMO, ABT: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/splg-pfe-tmo-abt%3A-etf-inflow-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 SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $133.2 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 308,850,000 to 311,950,000). Among the largest underlying components of SPLG, in trading today Pfizer Inc (Symbol: PFE) is up about 4.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.5%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.8%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.20. 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 »
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 SPLG, in trading today Pfizer Inc (Symbol: PFE) is up about 4.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.5%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.8%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.20. 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 SPLG, in trading today Pfizer Inc (Symbol: PFE) is up about 4.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.5%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.8%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.20. 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 ». | Among the largest underlying components of SPLG, in trading today Pfizer Inc (Symbol: PFE) is up about 4.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.5%, and Abbott Laboratories (Symbol: ABT) 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 SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $133.2 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 308,850,000 to 311,950,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.20. | Among the largest underlying components of SPLG, in trading today Pfizer Inc (Symbol: PFE) is up about 4.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.5%, and Abbott Laboratories (Symbol: ABT) 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 SPDR Portfolio S&P 500 ETF (Symbol: SPLG) where we have detected an approximate $133.2 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 308,850,000 to 311,950,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $40.92 per share, with $56.44 as the 52 week high point — that compares with a last trade of $43.20. |
31359.0 | 2022-10-21 00:00:00 UTC | Want Passive Income? 3 Dividend Kings to Buy Right Now | ABT | https://www.nasdaq.com/articles/want-passive-income-3-dividend-kings-to-buy-right-now | nan | nan | When we think of a successful portfolio, we usually think of solid stock performance. And that's one big piece of the puzzle. But there's another element that's part of a good investment story: stocks that will pay you a dividend year after year.
What do you have to do to benefit from this passive income? Nothing. You just have to own the stock.
Sounds like a pretty good deal, right? And passive income can be particularly appreciated during times when the market is down. Let's take a look at three dividend superstars to add to your holdings right now.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has increased its dividend for the past 50 years and is on the prestigious list of Dividend Kings. Why is this past behavior significant? It shows dividend increases are important to the company. And that's a good sign for future dividend decisions.
How much can you generate in passive income from this diversified healthcare company? It depends on how many shares you own. Abbott pays an annual forward dividend of $1.88 per share at a yield of 1.79%. If you own 100 shares of Abbott, your dividend will total $188, for example.
But you don't want to own Abbott for dividends alone. There's a lot to like beyond the dividend policy. The company operates four businesses: diagnostics, medical devices, nutrition, and established pharmaceuticals.
This diversification is a safety net of sorts. If one business struggles at a certain point, others may compensate.
In recent times, a baby formula recall weighed on nutrition revenue. At the same time, new product clearances and the popularity of Abbott's continuous glucose monitoring system drove double-digit revenue gains in the U.S. medical-devices business. Overall, Abbott can weather tough times because patients depend on the company's products.
Abbott has a track record of earnings increases over time. And its strong product portfolio likely will keep that going.
2. Target
Target (NYSE: TGT) has increased its dividend for the past 51 years. That's almost as long as Target's history as a publicly traded company.
The retail giant went public 55 years ago. Today, Target pays an annual forward dividend of $4.32 per share at a yield of 2.78%. Quarterly data in the chart below shows this is higher than rival Walmart.
TGT Dividend data by YCharts.
Like Abbott, Target makes a great addition to your portfolio for the dividend payment. But the company also brings a story of earnings strength over time -- and future prospects.
Target was a shining star during the worst days of the pandemic. The company's broad range of essentials, contactless pickup services, and digital platform made it a favorite among consumers. That resulted in huge gains in online sales and its pickup and delivery options.
In recent times, though, Target has faced the challenges of higher inflation and supply chain troubles, which has resulted in rising transport costs and excess inventory. And this has weighed on gross margin.
But these are temporary issues, and Target has taken measures to address the problems. For instance, the company has cleared out inventory through markdowns and is preparing for the key holiday shopping season.
The second-quarter earnings report offered reasons to be optimistic about Target's future. Digital comparable sales rose 9%, and delivery and pickup services climbed almost 11%. The main point is that revenue continues to rise and shoppers keep returning to Target.
3. Coca-Cola
Coca-Cola (NYSE: KO) may not deliver huge share performance -- but you can count on it for steady growth over time. For instance, over the past decade, the stock has climbed about 50%.
Coca-Cola is the world's largest non-alcoholic beverage company. Its products are present in about 200 countries. It sells popular drinks across a wide variety of categories, from sparkling soft drinks to hydration and fruit juices -- and even coffee.
You may think of Coca-Cola as a name that's already completed its growth story, but there's actually a lot of territory left to conquer. Much opportunity remains in developing and emerging countries. There, commercial beverages make up only about 30% of what people drink. And Coca-Cola has only 6% volume share. Progress in these areas could add to revenue at Coca-Cola well into the future.
It's worth buying shares of Coca-Cola for its earnings potential. And dividends make the story even more refreshing.
Coca-Cola has raised its dividend for 60 consecutive years. The company today pays an annual forward dividend of $1.76 at a yield of 3.15%. That's higher than the average yield in the soft drinks industry of 2.52%, according to the NYU Stern School of Business.
All of this means that, over time, you're likely to benefit as Coca-Cola extends its brand strength into newer markets -- and you get paid just for sitting back and watching the story unfold.
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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 Abbott Laboratories (NYSE: ABT) has increased its dividend for the past 50 years and is on the prestigious list of Dividend Kings. At the same time, new product clearances and the popularity of Abbott's continuous glucose monitoring system drove double-digit revenue gains in the U.S. medical-devices business. In recent times, though, Target has faced the challenges of higher inflation and supply chain troubles, which has resulted in rising transport costs and excess inventory. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for the past 50 years and is on the prestigious list of Dividend Kings. Target Target (NYSE: TGT) has increased its dividend for the past 51 years. Today, Target pays an annual forward dividend of $4.32 per share at a yield of 2.78%. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for the past 50 years and is on the prestigious list of Dividend Kings. But there's another element that's part of a good investment story: stocks that will pay you a dividend year after year. Target Target (NYSE: TGT) has increased its dividend for the past 51 years. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for the past 50 years and is on the prestigious list of Dividend Kings. But there's another element that's part of a good investment story: stocks that will pay you a dividend year after year. Target Target (NYSE: TGT) has increased its dividend for the past 51 years. |
31360.0 | 2022-10-20 00:00:00 UTC | See Which Of The Latest 13F Filers Holds Abbott Laboratories | ABT | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbott-laboratories-2 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Signet Investment Advisory Group Inc. Existing UNCH -$43
Capital Insight Partners LLC Existing -2,635 -$314
Tsfg LLC Existing +5,130 -$501
Asset Allocation & Management Company LLC Existing UNCH -$36
First Affirmative Financial Network Existing +298 -$19
Foster Dykema Cabot & Co. Inc. MA Existing UNCH -$49
ARGI Investment Services LLC Existing +988 -$3
Monarch Capital Management Inc. Existing -2,524 -$1,013
Ellsworth Advisors LLC Existing +503 -$334
Crew Capital Management Ltd. Existing UNCH -$52
Cardinal Strategic Wealth Guidance Existing UNCH -$35
Ogorek Anthony Joseph NY ADV Existing UNCH -$18
Barton Investment Management Existing UNCH -$118
Nikulski Financial Inc. Existing +365 -$38
Hanson & Doremus Investment Management Existing -46 -$150
Aggregate Change: +2,079 -$2,723
In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 06/30/2022 to 09/30/2022, with 3 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABT share count in the aggregate among all of the funds which held ABT at the 09/30/2022 reporting period (out of the 1,006 we looked at in total). We then compared that number to the sum total of ABT shares those same funds held back at the 06/30/2022 period, to see how the aggregate share count held by hedge funds has moved for ABT. We found that between these two periods, funds increased their holdings by 12,437 shares in the aggregate, from 20,671,985 up to 20,684,422 for a share count increase of approximately 0.06%. The overall top three funds holding ABT on 09/30/2022 were:
» FUND SHARES OF ABT HELD
1. Mackenzie Financial Corp 1,042,741
2. Bartlett & Co. LLC 1,033,202
3. Nordea Investment Management AB 887,043
4-10 Find out the full Top 10 Hedge Funds Holding ABT »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT). Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. Existing +365 -$38 Hanson & Doremus Investment Management Existing -46 -$150 Aggregate Change: +2,079 -$2,723 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 06/30/2022 to 09/30/2022, with 3 having decreased their positions. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: | Existing +365 -$38 Hanson & Doremus Investment Management Existing -46 -$150 Aggregate Change: +2,079 -$2,723 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 06/30/2022 to 09/30/2022, with 3 having decreased their positions. Nordea Investment Management AB 887,043 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. | Existing +365 -$38 Hanson & Doremus Investment Management Existing -46 -$150 Aggregate Change: +2,079 -$2,723 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 06/30/2022 to 09/30/2022, with 3 having decreased their positions. Nordea Investment Management AB 887,043 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. |
31361.0 | 2022-10-20 00:00:00 UTC | Want $1 Million in Retirement? Invest $250,000 in These 3 Stocks and Wait a Decade | ABT | https://www.nasdaq.com/articles/want-%241-million-in-retirement-invest-%24250000-in-these-3-stocks-and-wait-a-decade-1 | nan | nan | Many workers aim to save $1 million for retirement, a sum they think will sustain them through much of their golden years. And while there are many ways to generate that kind of wealth, the stock market remains one of the most potent. With a substantial initial investment -- such as $250,000 -- ending up with $1 million in just 10 years requires a compound annual growth rate of 14.87%.
Let's look at three stocks that stand an excellent chance of generating these kinds of returns: Intuitive Surgical (NASDAQ: ISRG), Abbott Laboratories (NYSE: ABT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
ISRG Total Return Level data by YCharts
1. Intuitive Surgical
Intuitive Surgical is a medical device company best-known for its da Vinci surgical system, which allows physicians to perform various minimally invasive procedures. The company makes much of its revenue by selling instruments and accessories that go along with its devices. The more procedures surgeons perform, the more money Intuitive Surgical makes.
Despite a drop during the pandemic, the volume of elective surgeries performed with the da Vinci system will rebound and continue to grow. So-called "elective surgeries" aren't necessarily optional. They are procedures that can be scheduled in advance, provided it is within a period during which the patient is unlikely to suffer severe and debilitating pain or worse.
The robotic-assisted surgery (RAS) market is still in its infancy, with only 3% of procedures performed robotically as of last year. That gives Intuitive Surgical plenty of room to grow. And while increasingly more companies are seeking to make a dent in this market, Intuitive Surgical has already built a lead and a solid competitive advantage.
As of 2020, the healthcare giant held a nearly 80% share of the RAS market. And given the highly prohibitive cost of the da Vinci system -- typically between $0.5 million and $2.5 million -- Intuitive Surgical benefits from high switching costs, a potent competitive advantage.
The company's shares just popped a little over 10% following a positive earnings report, but remain way below their highs. The company's solid position in a rapidly expanding industry should help Intuitive Surgical rebound still further and provide solid returns in the next 10 years and beyond.
2. Abbott Laboratories
Abbott Laboratories has a diversified business although its medical device segment is arguably its most important. The company markets dozens of products that are critical to the lives and well-being of thousands of patients worldwide. Consider Abbott's portfolio of devices that target various heart-related conditions.
There is, for instance, the company's Heartmate 3 heart pump, which proved able to extend the lives of patients with advanced heart failure by more than five years. There is also Abbott's Amplatzer Amulet, a minimally invasive option that allows physicians to perform left atrial appendage closures. A study showed that the Amplatzer Amulet is associated with lower risks of cardiovascular-related deaths.
There are many more devices in Abbott's portfolio, including in its diabetes care unit. The company's key product in this segment is the FreeStyle Libre, a continuous glucose monitoring (CGM) system. CGM technology allows diabetes patients to keep track of their blood glucose levels and helps these patients achieve better health outcomes.
Abbott is a leader in the CGM market, and given the ongoing increase in the prevalence of diabetes, this device seems to have a bright future. Abbott Laboratories benefits from patents that protect such innovations from competition, and over the past decades, it has developed a solid reputation as a leader in its field. That grants the company a solid competitive edge.
Although it has encountered headwinds lately, especially related to recalls of some of its baby formula products, short-term problems will likely do little to derail the company's long-term prospects.
3. Alphabet
Alphabet is the parent company of Google, the world's leading search engine. It held an 83.8% share of this market as of July. It will be difficult for competitors to dethrone Google for at least two reasons. First, it has already built an incredibly valuable brand name. It has achieved the rare feat of becoming a verb -- Google it.
Second, Alphabet benefits from a network effect -- the value of its search engine increases as more people use it. The tech company collects data that allows it to fine-tune its search engine to deliver better search results, which, in turn, attracts more people to the platform. And the more people use it, the more data Alphabet collects to continue improving its engine.
A strong brand name and the network effect are two potent competitive advantages that should allow Alphabet to remain the leader in this space for a long time. But the company's other business ventures make it even more valuable.
It is a leader in streaming thanks to YouTube, and it is also making a push in the cloud computing industry. As of the second quarter of 2022, Alphabet held a 10% share of the cloud computing market, ranking third. This is an industry that is growing rapidly. Given Alphabet's strong position and the fact that it generates plenty of cash, it has the means to pour funds into this lucrative area and remain a leader.
Alphabet is a solid stock for those looking to beat the market for the next 10 years and beyond.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Intuitive Surgical. 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 three stocks that stand an excellent chance of generating these kinds of returns: Intuitive Surgical (NASDAQ: ISRG), Abbott Laboratories (NYSE: ABT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Abbott Laboratories benefits from patents that protect such innovations from competition, and over the past decades, it has developed a solid reputation as a leader in its field. Although it has encountered headwinds lately, especially related to recalls of some of its baby formula products, short-term problems will likely do little to derail the company's long-term prospects. | Let's look at three stocks that stand an excellent chance of generating these kinds of returns: Intuitive Surgical (NASDAQ: ISRG), Abbott Laboratories (NYSE: ABT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Intuitive Surgical Intuitive Surgical is a medical device company best-known for its da Vinci surgical system, which allows physicians to perform various minimally invasive procedures. And given the highly prohibitive cost of the da Vinci system -- typically between $0.5 million and $2.5 million -- Intuitive Surgical benefits from high switching costs, a potent competitive advantage. | Let's look at three stocks that stand an excellent chance of generating these kinds of returns: Intuitive Surgical (NASDAQ: ISRG), Abbott Laboratories (NYSE: ABT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Intuitive Surgical Intuitive Surgical is a medical device company best-known for its da Vinci surgical system, which allows physicians to perform various minimally invasive procedures. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Intuitive Surgical. | Let's look at three stocks that stand an excellent chance of generating these kinds of returns: Intuitive Surgical (NASDAQ: ISRG), Abbott Laboratories (NYSE: ABT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Intuitive Surgical Intuitive Surgical is a medical device company best-known for its da Vinci surgical system, which allows physicians to perform various minimally invasive procedures. And while increasingly more companies are seeking to make a dent in this market, Intuitive Surgical has already built a lead and a solid competitive advantage. |
31362.0 | 2022-10-20 00:00:00 UTC | Thursday's ETF with Unusual Volume: FTHI | ABT | https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-fthi | nan | nan | The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Shares of FTHI were off about 0.4% on the day.
Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
VIDEO: Thursday's ETF with Unusual Volume: FTHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. | Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. VIDEO: Thursday's ETF with Unusual Volume: FTHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. | Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. VIDEO: Thursday's ETF with Unusual Volume: FTHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31363.0 | 2022-10-20 00:00:00 UTC | Abbott's (ABT) Q3 Earnings Top Estimates, 2022 EPS View Up (Revised) | ABT | https://www.nasdaq.com/articles/abbotts-abt-q3-earnings-top-estimates-2022-eps-view-up-revised | nan | nan | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. The adjusted figure however declined from the prior-year quarter’s levels by 17.9%.
The quarter’s adjustments include certain non-recurring intangible amortization expenses.
GAAP EPS came in at 81 cents, a 30.8% plunge year on year.
Third-quarter worldwide sales of $10.41 billion were down 4.7% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 8.7%.
On an organic basis (excluding the impact of foreign exchange), sales improved 1.3% year over year in the reported quarter.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the third quarter, Established Pharmaceuticals sales improved 4.9% on a reported basis (up 12.2% on an organic basis) to $1.33 billion. Organic sales in key emerging markets improved 13% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Vietnam and several therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management.
Medical Devices business sales dropped 0.5% on a reported basis (up 6.4% on an organic basis) to $3.62 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.
Diabetes Care reported organic growth of 12.9% year over year, led by FreeStyle Libre, which contributed $1.0 billion of revenues in the reported quarter. Heart Failure sales improved 2.3% organically. Meanwhile, the Rhythm Management business recorded an organic sales decline of 0.8% in the quarter under review. Electrophysiology and Structural Heart recorded organic growth of 3.8% and 15.1%, respectively, in the quarter under review.
Nutrition sales were down 14.9% year over year on a reported basis (down 10.3% on an organic basis) to $1.79 billion. Pediatric Nutrition sales registered a 22% slump on an organic basis. The downside can be attributed to a manufacturing shutdown in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility. International Pediatric sales were negatively impacted by challenging market conditions in China.
Adult Nutrition sales improved 2.4% 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 6.2% year over year on a reported basis (down 0.6% on an organic basis) to $3.67 billion. Core Laboratory Diagnostics sales were up 2.2% organically. Meanwhile, Molecular Diagnostics declined 44.3% on an organic basis. Rapid Diagnostics sales rose 4.9% on an organic basis, whereas Point of Care Diagnostics sales fell 4% organically.
Margins
Gross profit for the reported quarter fell 11.1% year over year to $5.78 billion. Gross margin contracted 399 basis points (bps) to 55.5%.
Selling, general and administrative expenses were down 1.3% year over year to $2.73 billion. Research and development expenses rose 16.4% year over year to $782 million.
The company reported an adjusted operating profit of $2.27 billion for the quarter under review, down 26% year over year. Adjusted operating margin, too, contracted 627 bps to 21.8%.
2022 Guidance
Abbott has raised its 2022 EPS guidance.
Full-year adjusted earnings (excluding specified items of $1.42 per share) are expected to be in the range of $5.17 to $5.23 (compared with the earlier guidance of at least $4.90). The current Zacks Consensus Estimate is pegged at $5.00.
Our Take
Abbott exited the third quarter of 2022 with better-than-expected earnings and revenues. However, the figures declined on a year-over-year basis.Total sales in the third quarter were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility.
Excluding these negative factors, total worldwide sales increased 6% on an organic basis in the third quarter, benefitting from robust organic sales growth across the company’s core Established Pharmaceuticals andMedical Devices segments.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
The raised 2022 guidance buoys optimism.
Zacks Rank and Upcoming Releases
Abbott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Charles River Laboratories International CRL will release third-quarter 2022 results on Nov 2.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson MCK is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana HUM is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
(We are reissuing this article to correct a mistake. The original article, issued on October 19, 2022, should no longer be relied upon.)
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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Abbott Laboratories (ABT): Free Stock Analysis Report
McKesson Corporation (MCK): Free Stock Analysis Report
Humana Inc. (HUM): Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL): 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 reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report However, the figures declined on a year-over-year basis.Total sales in the third quarter were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report On an organic basis (excluding the impact of foreign exchange), sales improved 1.3% year over year in the reported quarter. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report Diabetes Care reported organic growth of 12.9% year over year, led by FreeStyle Libre, which contributed $1.0 billion of revenues in the reported quarter. |
31364.0 | 2022-10-20 00:00:00 UTC | US STOCKS-Nasdaq futures fall as Tesla warns on 2022 deliveries | ABT | https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-fall-as-tesla-warns-on-2022-deliveries | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.13%, S&P 0.49%, Nasdaq 0.82%
Oct 20 (Reuters) - U.S. stock index futures slipped on Thursday, with those of the Nasdaq taking the biggest hit, after Tesla failed to meet estimates for quarterly revenue and warned of missing its vehicle delivery target.
Shares of the electric-vehicle maker TSLA.O dropped 6.1% in premarket trading as the company flagged persistent logistics challenges, with fourth-quarter deliveries growing by less than the aimed 50%.
Other megacap growth stocks like Alphabet Inc GOOGL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Mirosoft Corp MSFT.O and Amazon.com AMZN.O also fell between 0.7% and 1.3%.
Analysts have raised expectations for third-quarter profit growth at S&P 500 companies to 3% from 2.8%, according to Refinitiv data. But the number is still sharply lower than their forecast of an 11.1% increase at the start of July.
At 4:41 a.m. ET, Dow e-minis 1YMcv1 were down 39 points, or 0.13%, S&P 500 e-minis EScv1 were down 18.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were down 91.75 points, or 0.82%.
The main U.S. indexes fell after two days of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix's shares. .N
Fears of aggressive rate hikes by the Federal Reserve continue to weigh on investor sentiment, with expectations of yet another 75 basis point hike in the November meeting.
IBM Corp IBM.N said it was expecting to exceed full-year revenue growth target on strong demand for its digital services. Its shares rose 3.1% in light trading.
(Reporting by Ankika Biswas; Editing by Anil D'Silva)
((Ankika.Biswas@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 main U.S. indexes fell after two days of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix's shares. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Shares of the electric-vehicle maker TSLA.O dropped 6.1% in premarket trading as the company flagged persistent logistics challenges, with fourth-quarter deliveries growing by less than the aimed 50%. | The main U.S. indexes fell after two days of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix's shares. Futures down: Dow 0.13%, S&P 0.49%, Nasdaq 0.82% Oct 20 (Reuters) - U.S. stock index futures slipped on Thursday, with those of the Nasdaq taking the biggest hit, after Tesla failed to meet estimates for quarterly revenue and warned of missing its vehicle delivery target. ET, Dow e-minis 1YMcv1 were down 39 points, or 0.13%, S&P 500 e-minis EScv1 were down 18.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were down 91.75 points, or 0.82%. | The main U.S. indexes fell after two days of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix's shares. Futures down: Dow 0.13%, S&P 0.49%, Nasdaq 0.82% Oct 20 (Reuters) - U.S. stock index futures slipped on Thursday, with those of the Nasdaq taking the biggest hit, after Tesla failed to meet estimates for quarterly revenue and warned of missing its vehicle delivery target. ET, Dow e-minis 1YMcv1 were down 39 points, or 0.13%, S&P 500 e-minis EScv1 were down 18.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were down 91.75 points, or 0.82%. | The main U.S. indexes fell after two days of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix's shares. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.13%, S&P 0.49%, Nasdaq 0.82% Oct 20 (Reuters) - U.S. stock index futures slipped on Thursday, with those of the Nasdaq taking the biggest hit, after Tesla failed to meet estimates for quarterly revenue and warned of missing its vehicle delivery target. |
31365.0 | 2022-10-19 00:00:00 UTC | US STOCKS-Equities close lower as rise in yields overshadows earnings | ABT | https://www.nasdaq.com/articles/us-stocks-equities-close-lower-as-rise-in-yields-overshadows-earnings-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.
U.S. 10-year Treasury yield hits highest since July 2008
Netflix jumps after reversing customer losses
Procter & Gamble, Travelers post upbeat earnings
PHLX Housing Index falls on weak U.S. housing data
Dow down 0.33%, S&P 500 down 0.67%, Nasdaq down 0.85%
Adds Tesla results, market trading volume
By Chuck Mikolajczak
NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares.
The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation.
The rise in yields weighed on rate-sensitive names like real estate .SPLRCR stocks, down 2.56% as the worst-performing S&P sector on the day, and megacap growth names such as Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. Energy .SPNY was the sole S&P sector to end the session in positive territory with a gain of 2.94%.
Abbott Laboratories tumbled 6.5% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China.
Netflix shares, however, jumped 13.1% as the best perfomer operformerP 500 after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year-end.
"The bonds are just weighing so heavily on it ... it’s a shame to see good earnings be wasted," said JJ Kinahan, CEO of IG North America in Chicago.
"Ultimately earnings drives stocks but when they are being overshadowed it is tough to have that optimism, but ultimately good earnings will lead to stocks going higher, it is a matter of how much the macroeconomic picture is going to continue to hurt those earnings."
The Dow Jones Industrial Average .DJI fell 99.99 points, or 0.33%, to 30,423.81, the S&P 500 .SPX lost 24.82 points, or 0.67%, to 3,695.16 and the Nasdaq Composite .IXIC dropped 91.89 points, or 0.85%, to 10,680.51.
Fed officials have largely been in sync in their public comments about the need to be aggressive in raising rates to tackle inflation. On Wednesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said job market demand remains strong and underlying inflation pressures probably have not peaked yet.
The Fed's "Beige Book" survey of economic activity showed firms noted price pressures remained elevated, although there was some easing in several districts, while the labor market showed some signs of cooling.
The U.S. central bank is widely expected to raise rates by 75 basis points for the fourth straight time at its November meeting.
The Fed's effect on the housing market continues to grow. Housing starts, a measure of new residential construction, dropped 8.1% in September in the latest sign of the economy losing steam.
The PHLX Housing Index .HGX stumbled -4.50%, marking another sector unlikely to help stocks reverse months of declines, with the three main U.S. indexes still mired in bear markets.
Dow components Procter & Gamble CoPG.N gained 0.93% and Travelers Companies IncTRV.N rose 4.44% after the companies posted better-than expected quarterly profit.
Third-quarter profit growth expectations for S&P 500 companies have edged up to 3% from 2.8% on Tuesday, according to Refinitiv data, still well below the 11.1% increase forecast at the start of July.
Tesla Inc TSLA.O advanced 0.84% ahead of its earnings after the bell, with focus on any weakness in demand that is starting to weigh on the auto industry. Shares dropped 3.94% following the close as the electric vehicle maker missed revenue estimates for the third quarter.
Volume on U.S. exchanges was 11.05 billion shares, compared with the 11.62 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 3.28-to-1 ratio; on Nasdaq, a 2.69-to-1 ratio favored decliners.
The S&P 500 posted 2 new 52-week highs and 9 new lows; the Nasdaq Composite recorded 42 new highs and 232 new lows.
Housing starts building permitshttps://tmsnrt.rs/3DbVsAD
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. 10-year Treasury yield hits highest since July 2008 Netflix jumps after reversing customer losses Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls on weak U.S. housing data Dow down 0.33%, S&P 500 down 0.67%, Nasdaq down 0.85% Adds Tesla results, market trading volume By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. On Wednesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said job market demand remains strong and underlying inflation pressures probably have not peaked yet. | U.S. 10-year Treasury yield hits highest since July 2008 Netflix jumps after reversing customer losses Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls on weak U.S. housing data Dow down 0.33%, S&P 500 down 0.67%, Nasdaq down 0.85% Adds Tesla results, market trading volume By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. On Wednesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said job market demand remains strong and underlying inflation pressures probably have not peaked yet. Dow components Procter & Gamble CoPG.N gained 0.93% and Travelers Companies IncTRV.N rose 4.44% after the companies posted better-than expected quarterly profit. | U.S. 10-year Treasury yield hits highest since July 2008 Netflix jumps after reversing customer losses Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls on weak U.S. housing data Dow down 0.33%, S&P 500 down 0.67%, Nasdaq down 0.85% Adds Tesla results, market trading volume By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. "Ultimately earnings drives stocks but when they are being overshadowed it is tough to have that optimism, but ultimately good earnings will lead to stocks going higher, it is a matter of how much the macroeconomic picture is going to continue to hurt those earnings." | U.S. 10-year Treasury yield hits highest since July 2008 Netflix jumps after reversing customer losses Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls on weak U.S. housing data Dow down 0.33%, S&P 500 down 0.67%, Nasdaq down 0.85% Adds Tesla results, market trading volume By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. The U.S. central bank is widely expected to raise rates by 75 basis points for the fourth straight time at its November meeting. |
31366.0 | 2022-10-19 00:00:00 UTC | US STOCKS-Equities close lower as rise in yields overshadows earnings | ABT | https://www.nasdaq.com/articles/us-stocks-equities-close-lower-as-rise-in-yields-overshadows-earnings | nan | nan | By Chuck Mikolajczak
NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares.
The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation.
The rise in yields weighed on rate-sensitive names like real estate .SPLRCR stocks and megacap growth names such as Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. Energy .SPNY was the sole major S&P sector to end the session in positive territory.
Abbott Laboratories tumbled after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China.
Netflix shares, however, jumped after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year-end.
"The bonds are just weighing so heavily on it ... it’s a shame to see good earnings be wasted," said JJ Kinahan, CEO of IG North America in Chicago.
"Ultimately earnings drives stocks but when they are being overshadowed it is tough to have that optimism, but ultimately good earnings will lead to stocks going higher, it is a matter of how much the macroeconomic picture is going to continue to hurt those earnings."
According to preliminary data, the S&P 500 .SPX lost 24.09 points, or 0.65%, to end at 3,695.89 points, while the Nasdaq Composite .IXIC lost 89.45 points, or 0.82%, to 10,684.07. The Dow Jones Industrial Average .DJI fell 84.73 points, or 0.28%, to 30,439.07.
Fed officials have largely been in sync in their public comments about the need to be aggressive in raising rates to tackle inflation. On Wednesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said job market demand remains strong and underlying inflation pressures probably have not peaked yet.
The Fed's "Beige Book" survey of economic activity showed firms noted price pressures remained elevated, although there was some easing in several districts, while the labor market showed some signs of cooling.
The U.S. central bank is widely expected to raise rates by 75 basis points for the fourth straight time at its November meeting.
The Fed's effect on the housing market continues to grow. Housing starts, a measure of new residential construction, dropped 8.1% in September in the latest sign of the economy losing steam.
The PHLX Housing Index .HGX stumbled, marking another sector unlikely to help stocks reverse months of declines, with the three main U.S. indexes still mired in bear markets.
Dow components Procter & Gamble CoPG.N and Travelers Companies IncTRV.N both rose after the companies posted better-than expected quarterly profit.
Third-quarter profit growth expectations for S&P 500 companies have edged up to 3% from 2.8% on Tuesday, according to Refinitiv data, still well below the 11.1% increase forecast at the start of July.
Tesla Inc TSLA.O advanced ahead of its earnings due after the bell, with focus on any weakness in demand that is starting to weigh on the auto industry.
Housing starts building permitshttps://tmsnrt.rs/3DbVsAD
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. Abbott Laboratories tumbled after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China. | By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. According to preliminary data, the S&P 500 .SPX lost 24.09 points, or 0.65%, to end at 3,695.89 points, while the Nasdaq Composite .IXIC lost 89.45 points, or 0.82%, to 10,684.07. On Wednesday, Federal Reserve Bank of Minneapolis President Neel Kashkari said job market demand remains strong and underlying inflation pressures probably have not peaked yet. | By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. "Ultimately earnings drives stocks but when they are being overshadowed it is tough to have that optimism, but ultimately good earnings will lead to stocks going higher, it is a matter of how much the macroeconomic picture is going to continue to hurt those earnings." | By Chuck Mikolajczak NEW YORK, Oct 19 (Reuters) - U.S. stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories ABT.N and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc NFLX.O shares. The yield on the 10-year U.S. Treasury US10YT=RR note touched its highest level in more than 14 years as soft housing data did little to alter expectations the Federal Reserve will remain aggressive in hiking interest rates as it attempts to wrestle down stubbornly high inflation. According to preliminary data, the S&P 500 .SPX lost 24.09 points, or 0.65%, to end at 3,695.89 points, while the Nasdaq Composite .IXIC lost 89.45 points, or 0.82%, to 10,684.07. |
31367.0 | 2022-10-19 00:00:00 UTC | Why Abbott Laboratories Stock Is Slumping Today | ABT | https://www.nasdaq.com/articles/why-abbott-laboratories-stock-is-slumping-today | nan | nan | What happened
Shares of the diversified healthcare company Abbott Laboratories (NYSE: ABT) are having a rough session today. Specifically, the company's stock was in the red by a noteworthy 7.72% on sky-high volume as of 1:07 p.m. ET Wednesday afternoon.
What's weighing on Abbott's stock today? Ahead of the opening bell, the healthcare giant released its 2022 third-quarter results. While the company's Q3 results were strong overall (more on this below), investors appear to be focused on future declines stemming from an anticipated drop-off in COVID-19 testing revenue.
So what
That said, Abbott's Q3 results were far from doom and gloom. Abbott handily beat Wall Street's consensus Q3 revenue estimate by nearly $800 million. What's more, the company's Q3 adjusted earnings per share of $1.15 topped analysts' average estimate by a whopping 22.3%. Abbott also raised its full-year 2022 earnings per share guidance during today's presentation. That being said, the company did not roll out an updated revenue forecast for the year.
What's all the fuss about? Management's Q3 commentary seems to imply that COVID-19 testing sales will drop by a staggering 70% in Q4 relative to Q3. Wall Street, for its part, was expecting the company's COVID-19 diagnostic sales to remain strong for the remainder of the year due to a potential surge in cases during the winter months.
Now what
Is Abbott's stock a buy on this weakness? I think this pullback is entirely unjustified. Abbott's management seems to be lowering expectations for its COVID-19 testing business out of an abundance of caution. Nonetheless, most experts believe that COVID-19 cases will surge worldwide for a third year in a row this winter. Abbott's COVID-19 diagnostics business, in turn, should generate stellar sales yet again in Q4.
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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 Shares of the diversified healthcare company Abbott Laboratories (NYSE: ABT) are having a rough session today. While the company's Q3 results were strong overall (more on this below), investors appear to be focused on future declines stemming from an anticipated drop-off in COVID-19 testing revenue. Wall Street, for its part, was expecting the company's COVID-19 diagnostic sales to remain strong for the remainder of the year due to a potential surge in cases during the winter months. | What happened Shares of the diversified healthcare company Abbott Laboratories (NYSE: ABT) are having a rough session today. Abbott handily beat Wall Street's consensus Q3 revenue estimate by nearly $800 million. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Shares of the diversified healthcare company Abbott Laboratories (NYSE: ABT) are having a rough session today. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! | What happened Shares of the diversified healthcare company Abbott Laboratories (NYSE: ABT) are having a rough session today. What's weighing on Abbott's stock today? Wall Street, for its part, was expecting the company's COVID-19 diagnostic sales to remain strong for the remainder of the year due to a potential surge in cases during the winter months. |
31368.0 | 2022-10-19 00:00:00 UTC | Notable Wednesday Option Activity: MTB, EA, ABT | ABT | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-mtb-ea-abt | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in M & T Bank Corp (Symbol: MTB), where a total volume of 5,239 contracts has been traded thus far today, a contract volume which is representative of approximately 523,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 55% of MTB's average daily trading volume over the past month, of 951,690 shares. Particularly high volume was seen for the $185 strike call option expiring October 21, 2022, with 1,378 contracts trading so far today, representing approximately 137,800 underlying shares of MTB. Below is a chart showing MTB's trailing twelve month trading history, with the $185 strike highlighted in orange:
Electronic Arts, Inc. (Symbol: EA) options are showing a volume of 8,879 contracts thus far today. That number of contracts represents approximately 887,900 underlying shares, working out to a sizeable 52.1% of EA's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $115 strike put option expiring October 21, 2022, with 1,547 contracts trading so far today, representing approximately 154,700 underlying shares of EA. Below is a chart showing EA's trailing twelve month trading history, with the $115 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) saw options trading volume of 31,212 contracts, representing approximately 3.1 million underlying shares or approximately 51.7% of ABT's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $100 strike call option expiring November 18, 2022, with 2,904 contracts trading so far today, representing approximately 290,400 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for MTB options, EA options, or ABT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $100 strike call option expiring November 18, 2022, with 2,904 contracts trading so far today, representing approximately 290,400 underlying shares of ABT. Below is a chart showing EA's trailing twelve month trading history, with the $115 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 31,212 contracts, representing approximately 3.1 million underlying shares or approximately 51.7% of ABT's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MTB options, EA options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing EA's trailing twelve month trading history, with the $115 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 31,212 contracts, representing approximately 3.1 million underlying shares or approximately 51.7% of ABT's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $100 strike call option expiring November 18, 2022, with 2,904 contracts trading so far today, representing approximately 290,400 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MTB options, EA options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing EA's trailing twelve month trading history, with the $115 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 31,212 contracts, representing approximately 3.1 million underlying shares or approximately 51.7% of ABT's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $100 strike call option expiring November 18, 2022, with 2,904 contracts trading so far today, representing approximately 290,400 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MTB options, EA options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing EA's trailing twelve month trading history, with the $115 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 31,212 contracts, representing approximately 3.1 million underlying shares or approximately 51.7% of ABT's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MTB options, EA options, or ABT options, visit StockOptionsChannel.com. Especially high volume was seen for the $100 strike call option expiring November 18, 2022, with 2,904 contracts trading so far today, representing approximately 290,400 underlying shares of ABT. |
31369.0 | 2022-10-19 00:00:00 UTC | US STOCKS-Wall St struggles as losses in Abbott counter Netflix's gains | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-struggles-as-losses-in-abbott-counter-netflixs-gains | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
U.S. 10-year Treasury yield at highest since July 2008
Netflix jumps after reversing customer losses
Tesla third quarter earnings awaited
Procter & Gamble, Travelers post upbeat earnings
PHLX Housing Index falls 3% on weak U.S. housing data Indexes down: Dow 0.16%, S&P 0.55%, Nasdaq 0.64%
Updates prices through out, adds comments
By Ankika Biswas and Shreyashi Sanyal
Oct 19 (Reuters) - Wall Street's main indexes struggled to gain on Wednesday as weakness in shares of Abbott countered gains in Netflix, leaving investors muddled about the ongoing earnings momentum.
Abbott Laboratories ABT.N tumbled 8.08% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China.
Netflix NFLX.O, on the other hand, jumped 13.84% after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year end.
A surge in Treasury yields to 14-year highs in a steep selloff in U.S. government bonds on expectations of bigger interest rate hikes also added to the woes for risk assets.
Housing starts, a measure of new residential constructions, dropped 8.1% in September in the latest sign of the economy losing steam, taking a hit from the Federal Reserve aggressive monetary policy tightening and spiraling inflation.
The PHLX Housing Index .HGX fell 3.70%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory.
While some gauges of the equity market's health showed that the latest rally may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation, which is way above the Federal Reserve's target.
"We're just in a bear market and the trend is for lower prices and the leading reason is we have high inflation and there's some indications that it may not have peaked," said Rusty Vanneman, chief investment strategist at Orion Advisor Solutions.
The U.S. central bank is likely to raise rates by 75-basis points for the fourth straight time this year in November.
Analysts also said that the Fed will not relax its aggressive stance until there is a visible impact on the U.S. labor market, which has so far been resilient.
At 12:19 p.m. ET, the Dow Jones Industrial Average .DJI was down 47.36 points, or 0.16%, at 30,476.44, the S&P 500 .SPX was down 20.32 points, or 0.55%, at 3,699.66, and the Nasdaq Composite .IXIC was down 68.71 points, or 0.64%, at 10,703.69.
Dow components Procter & Gamble CoPG.N and Travelers Companies IncTRV.N rose 2.3% and 3.0%, respectively, after the companies posted better-than expected quarterly profit.
Analysts have raised third-quarter profit growth expectations for S&P 500 companies to 3% from 2.8%, according to Refinitiv data. But it is still sharply lower than an 11.1% increase forecast at the start of July.
Tesla Inc TSLA.O added 0.13% ahead of its earnings after the bell, with focus on any weakness in demand that is starting to weigh on the auto industry.
Declining issues outnumbered advancers for a 3.43-to-1 ratio on the NYSE and for a 2.64-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and seven new lows, while the Nasdaq recorded 28 new highs and 144 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Ankika.Biswas@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. | Abbott Laboratories ABT.N tumbled 8.08% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China. Housing starts, a measure of new residential constructions, dropped 8.1% in September in the latest sign of the economy losing steam, taking a hit from the Federal Reserve aggressive monetary policy tightening and spiraling inflation. While some gauges of the equity market's health showed that the latest rally may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation, which is way above the Federal Reserve's target. | Abbott Laboratories ABT.N tumbled 8.08% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls 3% on weak U.S. housing data Indexes down: Dow 0.16%, S&P 0.55%, Nasdaq 0.64% Updates prices through out, adds comments By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled to gain on Wednesday as weakness in shares of Abbott countered gains in Netflix, leaving investors muddled about the ongoing earnings momentum. The PHLX Housing Index .HGX fell 3.70%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory. | Abbott Laboratories ABT.N tumbled 8.08% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls 3% on weak U.S. housing data Indexes down: Dow 0.16%, S&P 0.55%, Nasdaq 0.64% Updates prices through out, adds comments By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled to gain on Wednesday as weakness in shares of Abbott countered gains in Netflix, leaving investors muddled about the ongoing earnings momentum. The PHLX Housing Index .HGX fell 3.70%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory. | Abbott Laboratories ABT.N tumbled 8.08% after reporting lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble, Travelers post upbeat earnings PHLX Housing Index falls 3% on weak U.S. housing data Indexes down: Dow 0.16%, S&P 0.55%, Nasdaq 0.64% Updates prices through out, adds comments By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled to gain on Wednesday as weakness in shares of Abbott countered gains in Netflix, leaving investors muddled about the ongoing earnings momentum. The PHLX Housing Index .HGX fell 3.70%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory. |
31370.0 | 2022-10-19 00:00:00 UTC | Pre-Markets Give Some Back; Housing Starts Lower; PG, ABT Beat | ABT | https://www.nasdaq.com/articles/pre-markets-give-some-back-housing-starts-lower-pg-abt-beat | nan | nan | Wednesday, October 19, 2022
An eventful pre-market has dragged futures into negative territory, following key housing data and more big-name Q3 earnings beats. The markets seem in a mood to give back some of the boon they’ve garnered over the past 3 of 4 sessions: the Dow is -150 points at this hour, the S&P 500 is -25 and the Nasdaq is -70 points.
Housing Starts for the month of September came in lower than expectations, with 1.439 million seasonally adjusted, annualized starts beneath the 1.47 million expected. It’s a fairly big drop from the previous month’s downwardly revised 1.566 million, but still higher than the July cycle-low of 1.377 million. Still, the right direction for the housing market if we’re looking to curb inflation, of which home prices represents a big chunk.
Building Permits, a relative forward indicator of future starts, actually ticked up in September to 1.564 million from 1.542 million seasonally adjusted, annualized units in August. But this still represents a leg-down from the high 1.6-millions we were seeing earlier in the summer and 1.879 million at the 12-month peak. The August print represents lows not seen since the pandemic; again, this is the sort of thing the Fed wants to see in order to help bring down inflation.
Procter & Gamble PG posted fiscal Q1 results this morning, keeping earnings season successful overall to this point, with earnings of $1.57 per share beating the Zacks consensus by 2 cents. Revenues in the quarter of $20.61 billion were up from the expected $20.45 billion, and swung to a yearly gain of +1% from an expected loss. Organic revenues grew +7% in the quarter. P&G has just one earnings miss in the past five years.
Abbott Labs ABT also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Revenues topped estimates by +8.67% to $10.41 billion in the quarter (though again down from the $10.93 billion a year ago). Abbott has also only posted one earnings miss in the past five years. For more on ABT’s earnings, click here.
After today’s closing bell, we’ll see another slew of earnings reports, including from Tesla TSLA, which is expected to bring earnings growth of more than +50% year over year on +62% growth in revenues. We already know the EV leader produced 365K vehicles in Q3 and delivered 343K, which helps analysts in their forecasts for the Zacks Rank #3 (Hold) company with a Zacks Style Score of A.
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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 Labs ABT also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. For more on ABT’s earnings, click here. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott Labs ABT also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. For more on ABT’s earnings, click here. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott Labs ABT also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. For more on ABT’s earnings, click here. Abbott Laboratories (ABT): Free Stock Analysis Report | For more on ABT’s earnings, click here. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Labs ABT also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. |
31371.0 | 2022-10-19 00:00:00 UTC | Abbott Laboratories (ABT) Q3 2022 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q3-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q3 2022 Earnings Call
Oct 19, 2022, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to Abbott's third quarter 2022earnings conference call [Operator instructions] This call is being recorded by Abbott. With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott.
It cannot be recorded or rebroadcast without Abbott's expressed written permission. I would now like to introduce Mr. Scott Leinenweber, vice president, investor relations, licensing, and acquisitions.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Good morning, and thank you for joining us. With me today are Robert Ford, chairman and chief executive officer; and Bob Funck, executive vice president, finance, and chief financial officer. Robert and Bob will provide opening remarks. Following their comments, we'll take your questions.
Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2022. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological, and other factors that may affect Abbott's operations are discussed in Item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31, 2021. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign exchange rates which could impact reported sales growth. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which excludes the impact of foreign exchange.
With that, I will now turn the call over to Robert.
Robert Ford -- Chairman and Chief Executive Officer
Thanks, Scott. Good morning, everyone, and thank you for joining us. Today, we reported results of another strong quarter, including ongoing earnings per share of $1.15. Based on our performance through the first nine months of the year, we increased our full-year adjusted earnings per share guidance to $5.17 to $5.23, which is more than 10% higher than the initial guidance flow we provided back in January.
As you know, the macroeconomic conditions remain challenging. Inflation continues to be a stubborn force globally, but we've started to see some moderating impacts in certain areas of our businesses compared to earlier in the year. At the same time, the U.S. dollar has continued to strengthen, including throughout the most recent quarter.
COVID remains as unpredictable as ever with intermittent surges continuing throughout the world. And lastly, global supply chain dynamics, staffing shortages continued to impact our healthcare markets, though we're seeing steady signs of improvements. Over the last few months, we've made progress in several important areas following the temporary shutdown of our infant formula manufacturing plant in Sturgis, Michigan earlier this year. We restarted production at Sturgis in July with a focus on our EleCare and other specialty infant formulas.
And in September, we began production of several Similac products, which we expect will begin to reach retail store shelves over the coming weeks. We also boosted production in our global network to increase infant formula supply to the U.S. In fact, we delivered roughly the same volume of formula to our U.S. customers this past quarter as we did during the three months prior to the recall.
Our No. 1 supply priority was to the WIC, women, infant, and children, federal food assistance program to ensure that underserved participants would have access to infant formula. During the quarter, we also made leadership changes, both at our Sturgis site and in our organization, and we concluded a month-long investigation into the accusations that were made by a former employee. The investigation, which included extensive document reviews and interviews, concluded that the allegations about quality were unfounded.
And during the quarter, the same former employee dropped the federal OSHA complaint. And lastly, we conducted an analysis of the U.S. infant former market and concluded that this country would benefit from more manufacturing capacity and redundancy. As such, we're moving forward with plans for a half-billion investment in a new U.S.
nutrition facility for specialty and metabolic infant formulas. We're currently in the final stages of determining the site location and will work with regulators and other experts to ensure this facility is state-of-the-art and sets a new standard for infant formula production. We recognize there's more to do, but feel confident in the progress we're making, and I want to thank all the Abbott employees that have been working around the clock on this matter. I'll now summarize our third quarter results for our remaining businesses in more detail before turning the call over to Bob.
And I'll start with Established Pharmaceuticals, or EPD, where sales increased more than 12% in the quarter. Strong performance was led by double-digit growth across several countries, including India, China, Brazil, and Vietnam, along with broad-based strength across several therapeutic areas. EPD has now achieved double-digit organic sales growth since the beginning of last year, fueled by a steady cadence of new product launches and strong commercial execution. And EPD has also expanded its profitability profile over the same time period, which is quite unique given the current macroeconomic headwinds.
Moving to diagnostics, where COVID test sales of $1.7 billion were significantly higher than expectations but lower compared to last year, which resulted in a modest decline in sales growth overall. The decline in COVID test sales compared to last year was driven by lower demand for laboratory-based tests. Whereas demand for our rapid tests, which include BinaxNOW, Panbio, and ID NOW continues to be strong, with sales this past quarter at a similar amount to the third quarter of last year. Rapid tests have proven to be very important and highly practical tools.
They provide a quick and affordable way to test COVID almost anywhere and at any time, whether you're experiencing symptoms or just want to know your status before attending events or gatherings. Excluding COVID testing revenues, sales of routine diagnostic tests grew 6% in the quarter overall and even faster internationally, fueled by the continued global rollout of our Alinity instrument for immunoassay, clinical chemistry, and molecular testing. Lastly, I'll wrap up with medical devices, where sales grew 6.5% in the quarter globally. In the U.S., sales growth of approximately 11.5% was led by strong double-digit growth in electrophysiology, structural heart, and diabetes care.
During the quarter in the U.S., cardiovascular procedure volumes were somewhat soft in July before strengthening in August and September. Internationally, in addition to similar procedure volume trends, sales were negatively impacted by intermittent COVID lockdowns in China as well as supply constraints in certain areas, most notably in electrophysiology. In diabetes care, sales of FreeStyle Libre exceeded $1 billion in the quarter, and our user base expanded to approximately 4.5 million users globally. In the U.S., where sales grew more than 40%, we initiated the full launch of Libre 3, which automatically delivers up-to-the-minute glucose readings with unsurpassed accuracy in the world's smallest and thinnest wearable sensor.
Internationally, organic sales growth was impacted by a couple of transitory items, including supply constraints on Libre 1 in certain emerging markets, which we expect to improve over the next couple of months. And secondly, a strategic choice we made in Germany to rapidly transition our large existing user base to our latest generation Libre 3 system, which temporarily reduced our focus on new user additions during the quarter in that country. We already transitioned well over half of our users with the vast majority of the remaining users expected to move to Libre 3 by year end. This move strategically fortifies our leadership position in the second-largest continuous glucose monitoring market in the world and further enhances our already strong strategic position as we work to bring the benefits of Libre to more and more people, including those with type 2 diabetes that are not reliant on insulin to manage their disease.
So in summary, despite the challenging environment, we achieved another strong quarter that significantly surpassed expectations which reflects the strength of our diversified business model and execution. And based on our strong performance for the first nine months of the year, we're once again raising our EPS guidance for the year. I'll now turn the call to Bob. Bob?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Thanks, Robert. As Scott mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis, which excludes the impact of foreign exchange. Turning to our results. Sales increased 1.3% on an organic basis in the quarter.
COVID testing-related sales were $1.7 billion, which while stronger than anticipated, reflect a year-over-year decline versus sales in the third quarter of last year. Additionally, organic sales growth was negatively impacted by a temporary shutdown of manufacturing at our nutrition plant in Sturgis, Michigan earlier this year. Excluding COVID testing-related sales and the U.S. sales impacted by the temporary manufacturing shutdown, total Abbott sales increased 6% on an organic basis in the third quarter.
Foreign exchange had an unfavorable year-over-year impact of 6% on third-quarter sales. During the quarter, we saw the U.S. dollar continue to strengthen versus several currencies, which resulted in a slightly more unfavorable impact on sales compared to exchange rates at the time of ourearnings callin July. Regarding other aspects of the P&L, the adjusted gross margin ratio was 55.9% of sales, which reflects the impacts of the nutrition manufacturing disruption and inflation we've experienced on certain manufacturing and distribution costs across our businesses.
Adjusted R&D investment was 6.1% of sales, and adjusted SG&A investment was 25.9% of sales in the third quarter. Lastly, our third-quarter adjusted tax rate was 18.1%, which reflects an adjustment to align our year-to-date tax rate with our revised full-year effective tax rate forecast of 15.5%. The revised full-year forecast is modestly higher than the estimate we provided in July due to a shift in the mix of our business and geographic income. Turning to our 2022 outlook.
For the full year, we now forecast ongoing earnings per share of $5.17 to $5.23, which is comprised of our year-to-date results through September, plus ongoing earnings per share guidance of $0.86 to $0.92 for the fourth quarter. We forecast total company organic sales growth, excluding the impact of COVID testing-related sales, to be in the mid-single digits for the fourth quarter. Excluding U.S. sales impacted by the temporary manufacturing disruption, we forecast fourth-quarter organic sales growth to be in the mid-to-high single digits for the remainder of our combined businesses, which includes medical devices, established pharmaceuticals, diagnostics, excluding COVID testing-related sales, and areas of nutrition, not impacted by the disruption.
We forecast COVID testing-related sales of approximately $500 million, which does not assume a COVID testing surge in the fourth quarter. And lastly, based on current rates, we expect exchange to have an unfavorable impact of approximately 7% on our fourth quarter reported sales. With that, we'll now open the call for questions.
Questions & Answers:
Operator
[Operator instructions] And our first question comes from Robbie Marcus from J.P. Morgan.
Robbie Marcus -- JPMorgan Chase and Company -- Analyst
Great. Congrats on the quarter. Robert, maybe we could start, we're already toward the end of 2022. And I think people's attention are really shifting to next year just with so many moving pieces, both in revenues and down the P&L with currency and inflation and COVID testing assumptions and so on.
So I was hoping sometime at this point in the year, you might give us some early thoughts on next year. Anything you can provide to help us narrow the range of outcomes would be great.
Robert Ford -- Chairman and Chief Executive Officer
Sure. I mean, with all those topics, we could spend the whole call on it, right? So I'll provide a broad framework that I can give you here. Obviously, the macro conditions are going to remain challenging, right, Robbie? I don't think that anybody right now as we're planning going into next year, is forecasting that this is just going to ease up, right? So specifically, I would say probably inflation, I don't expect to get better. And I'd say the currency headwinds are very much kind of in play here for next year, right? Those are probably two of the big kind of macro kind of impacts for us.
But I still see a lot of opportunity for growth as I have been talking about our business and our portfolio. There's a clear path in my mind here for top-line growth of high single digits. And you can get there with a variety of looking at across our businesses. So in medical devices, we've got a lot of upcoming launches and products that we have launched.
So Libre 3, Amulet, Aveir, CardioMEMS, Navitor, we expect to be launching next year here in the U.S. Inside X, our mapping system, launching a new ablation catheter into the market globally next year also. I'm probably sure there's more that I could kind of rattle off here in terms of devices. So I think the device portfolio looks very strong as we go into next year.
I expect the same kind of growth rate that we're seeing in EPD. I expect to see continued share capture that we're seeing in core diagnostics and then obviously, a strong recovery in U.S. infant nutrition. So like I said, you see that high single-digit growth in the clear path just based looking at how those businesses will perform and how they're performing and the launches that we got upcoming.
Then you mentioned COVID, right? And that's the other piece of the business. so high single-digit growth, excluding COVID. COVID is an interesting one, Robbie, where I think over the last couple of years, we've been talking about the sustainability of COVID. Many of you writing that COVID testing will probably go away.
And here we are in the third quarter, in the summer months, with a $1.5 billion, $1.6 billion number here in the third quarter. So I think that as we look -- I want to see how the next few months look like. I think Bob made a comment in terms of our forecast for Q4. We haven't really planned for a big win to surge.
It's more of an endemic-like forecast for Q4. And I think that's the kind of endemic forecast that we'll see going into 2023. But I think it's -- right now, it's looking like COVID test sales are stickier than most have assumed. So those are the components on the top line.
Down the P&L, as I've said, we're going to be taking a close look at our cost structure. We have been. We've increased that over the last couple of years, made the investments. We talked about those investments.
And I'm looking to be able to get a lot of leverage out of those investments that we've made historically. And at the top line, the way it's kind of laid out comes through and the leverage falls through, you're going to see that sales growth falling through at, I'd say, pretty healthy margins. Rob is going to invest in the areas that we know we've got good growth and high growth. Those get the investment dollars.
I think in the past, a lot of you have written about the big three of Abbott, where there was Libre, Alinity, and MitraClip and those are still a big contributor of a driver of growth. But we've got a new class of products, I guess, I would call them the Fab 5, looking at TriClip, Aveir, Navitor, CardioMEMS, and LAA. These products combined are an annual run rate of about $0.5 billion, growing 50% and those will also receive the kind of investments to be able to kind of drive their growth since I think they're, again, in the early innings of growth for us. So we'll look at managing the P&L and our investments in our structures and choosing the areas where we're going to continue to invest.
And then other areas, we'll see some of the leverage from the investments that we've made in the past. So as we go into 2023, to say that everything is fundamentally nothing has changed. I'd say, true, our markets are still very attractive. We've got leading positions in these very large, high-growth markets.
I like the pipeline, and we've got a lot of ongoing and upcoming launch activity. So that, I'd say, hasn't really changed. We're going to have to be mindful, obviously, of the cost structure of some of the inflation pressures and FX challenges we have. And then on top of that, we have a strong balance sheet.
And we've talked about that and that provides us a lot of strategic and financial flexibility as we go into next year. So that's probably my best characterization here in the condensed version of 2023.
Robbie Marcus -- JPMorgan Chase and Company -- Analyst
That's really helpful. And maybe one for Bob. The fourth quarter implied EPS guide came in a little bit lower than the Street. We also saw a much bigger FX headwind.
So how should we be thinking about the impact to the bottom line in third quarter? What's implied in fourth quarter? And if we start thinking about our models for next year, Robert gave us the top-line considerations. How do we think about FX at current rates heading into next year?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Yes, certainly. So we've seen the dollar significantly strengthened this year, including throughout the third quarter. And the biggest moves have been really in developed market currencies, the euro, the pound, the yen. So this is something that most, if not all, multinationals are dealing with and certainly not unique to us.
And I think, Robbie, maybe these headwinds are a little bit underappreciated in terms of the impact here. We always are looking to mitigate as best we can, but there's certainly going to be a limit here in terms of what can be done. We try to match our cost, hedging program, and take price where appropriate. This year at current rates, our full-year headwind is a little bit more than $0.15 in terms of earnings.
About $0.10 of that is happening just in the fourth quarter alone. And so while there are certainly other moving parts, that fourth quarter impact should give you a pretty good feel for the magnitude of headwind that's flowing into next year, particularly in the first two to three quarters of the year. We'll provide our earnings guidance in January as we always do, and we'll contemplate currency rates at that time.
Operator
Our next question comes from Larry Biegelsen from Wells Fargo.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Two product-related questions for me. First, I wanted to start with Libre. A lot going on there, Robert. Obviously, the exciting news this quarter was the type 2 basal LCD from CMS.
So I'd love to hear your thoughts on that opportunity. Our back-of-the-envelope math suggests that could be a $1 billion opportunity for Abbott in 5 years. I'd love to hear if you agree. And just lastly, on the vitamin C timing of that resolution and any color -- any additional color you want to provide on Libre.
And I did catch in your prepared remarks, you talked about non-insulin patients that was interesting. And I did have one follow-up.
Robert Ford -- Chairman and Chief Executive Officer
Sure. That's the catch-all Libre question. Let me take the CMS one. So it is very exciting.
And if I think about your model, you're probably more aligned maybe to my team, but I think my team is cutting it short in terms of what we could actually do with this indication, and I'll tell you why in a second. But it is pretty significant. I mean, you got 4 million basal patients in the U.S., about a third of them are covered by CMS. So this is probably going to be in terms of the timing of public comments and amount of time it's going to take for CMS to make the decision and then the implementation date, etc.
So this is probably more of a second half 2023 item, I would say, but it's pretty significant. It's going to expand CGM coverage by about 1.5 million patients on CMS. And as you probably know, Larry, one CMS makes that determination then there's a natural flow that will then move into the private commercial market. So I'm looking at the opportunity of ultimately 4 million patients that will have potential to get some sort of coverage and benefit from the technology.
Listen, I think that we've -- it's not surprising from the perspective of this coming up because we've been leading in the generation of data and evidence to support this proposal. I think if you do a lit search on all the studies that have been done on CGM and then segment them between pump studies and basal studies and type 2 studies and type 2 with non-insulin studies, you're going to see that Libre's at the head of all of those type 2 study. So I think this is part of the investments that we've been making clinically to be able to show the evidence on how this benefits a broader population. And then with the value proposition that Libre has, it provides us -- I think I know what your model is saying.
I just think that we'll have a disproportionate share of that. This is a market where, whether it's in the U.S. or in Europe, it predominantly drives around primary care, primary care call point, primary care scale, specifically in the U.S., DMEs. And this is a segment where we do very well.
If you do an audit of prescriptions by physician class, Libre has taken about 80% market share of the primary care Rx. So the team has been working on that. So I think it's a great opportunity. And I think this kind of fuels into this notion of this is a much larger market than has historically been contemplated as part of CGM, and that's what our strategy for the moment we enter the market has been thinking about it, right? We're not looking at sprinting quarter to quarter -- we're looking at this over the long term and making the investments to be able to sustain this kind of growth rate.
We announced manufacturing capacity expansions also in the quarter for diabetes care because we believe this is a $10 billion franchise by 2028. We believe that we've got pathway between 15 million and 20 million users on this product. So we're resourcing our manufacturing, our scale, our commercial infrastructure, our service, our clinical investments to be able to support what I believe is a significant growth opportunity, and we intend to lead that. I think your other question was on Vitamin C.
Yes, we have completed the clinical work on the Vitamin C. I'll provide updates at the appropriate time. I do recognize that this is an important, I would call short-term, medium-term kind of growth driver for us. If you think about our franchise, it's going to be about basal, type 2, and pump integration.
So think of that the next kind of two, three years of key core growth drivers. And then I'd say, more longer term to get to those numbers, I made an announcement beginning of this year regarding looking at this outside of diabetes on our Lingo franchise, and that will then sustain our growth going forward. So we've made the study. We feel good about the results, and I'll be updating once we have something to update there.
We are working on pump integrations outside the United States and we'll have a pump integration launch by end of this year, beginning of next year into Europe with one of our pump partners. And I think they're going to benefit a lot from our user base that we have in those countries.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Robert, that was super helpful. Just for my follow-up, I'd love to get your reaction to the Pascal data at TCT and the launch in the U.S. specifically, your thoughts on the greater durability effect they showed with Pascal. I know we haven't seen that in the MitraClip registries.
And just any update on the locking issue we heard about this quarter?
Robert Ford -- Chairman and Chief Executive Officer
Yes. So it wasn't unexpected. Every time at TCT, there's always an expectation of a landmark study or an approval. So that wasn't unexpected.
They got approval for FMR. That's one of the smaller indications, about a third of the market. We've competed with Pascal internationally already for a couple of years. I expect to see some trialing in the U.S.
And the question is going to be how much it is going to stick. Internationally, MitraClip has done very well, and we've held on to a good portion of our share. I think in Europe, we're kind of at that 80-20 split. So I think I expect some of those dynamics to play out here in the U.S.
And I think MitraClip is going to do very well. Regarding the data set, yes, I mean it was -- I think it was 117 or 120 patients. I think it was maybe versus 63 of MitraClip. I mean we've done over 150,000 implants, Larry.
And we've got great data on our products. We do have over 1,000 patients in the registry. I think the data set is pretty small right now. So we're working on our side.
We're doing our investments in our clinical trials, investments in product advancements, in MitraClip. I think right now, I think the biggest opportunity is market expansion, and we're going to be driving a lot of that with the FMR indication. I think I said this in the last call, I think that one of the biggest impacts we have, for me, as I looked at our portfolio was regarding COVID was not being able to benefit the FMR indication and the NCD. So I think that's the biggest opportunity we have is market expansion and working to get those referrals network set up and driving that demand for further expansion.
So I think the locking mechanism -- yes, I think we took a field action and I think that's so far going OK. I haven't had any kind of issues, supplies back to normal.
Operator
And our next question will come from Joanne Wuensch from Citibank.
Joanne Wuensch -- Citi -- Analyst
I'd like to jump off a little bit from the MitraClip conversation and try and peel apart the double-digit growth in Structural Heart this quarter a little bit stronger than we were looking for. How much of that is MitraClip versus demand for Portico versus maybe something else? And how do you think about developing that segment a little bit further?
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, I mean, I think we've talked about how important the structural heart portfolio was for us even when we go all the way back to the acquisition of St. Jude and really building this franchise. So we've been intentional about doing that.
MitraClip had a good quarter. We had a growth of about 6%. That was impacted a little bit in the U.S. but we had double digit -- almost double-digit growth internationally.
So if you kind of then back into that, you could see that some of the other parts of the portfolio are now starting to kind of -- as they're gaining in scale, Joanne, they're starting to have a stronger impact on the portfolio. So Amulet and Navitor internationally, I know you mentioned Portico, but I'd say it's probably more Navitor in Europe that did very well for us, and it continues to do pretty well. As I say, we acknowledge that we're behind two market leaders here, but we're making the investments and it's done pretty well. In Europe, I'd say we've got about an 8%, 9% market share in Europe, and the accounts that we actually have Navitor in we're close to kind of mid-teens.
So that product is very competitive, and we're looking forward to bringing that here to the U.S. We filed it with the FDA and we expect to bring this to the market here in the first half of next year. Scott, maybe you can talk about kind of Amulet and what we're seeing there also.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Yes. I'd say, Joanne, as Robert mentioned, it is kind of the remaining basket of that Structural Heart Business that's driving a lot of the growth there, amulet, being a component of that. Launch in the U.S. continues to go very well, nice traction.
In particular, I would say, in the early adopter accounts as it started late last year. Our share in those accounts is around 40% now at this point. It just shows you kind of once you get in there and get experience and have an opportunity to drive some deeper penetration that you can really achieve a strong share position, and we're doing that in those early adopter accounts. So as we've added accounts over the first portion of this year, we'll look to do the same thing with them as we go forward.
So a great opportunity to build, seeing nice growth there. And like I said, like Robert said, kind of a handful of the other items along with TriClip, Navitor, and Amulet here that are driving growth in addition to what you're seeing, and now is the long-term opportunity for MitraClip.
Joanne Wuensch -- Citi -- Analyst
As my follow-up question, in Nutrition, one of the things we talk with investors about is, how do you think about the recovery in that segment once your supply is back up? Do you see yourself just returning to growth of the market rate or taking a good percentage of the share back? Or any guidance you could give us remodel forward would be helpful.
Robert Ford -- Chairman and Chief Executive Officer
Sure. I would say we've gone -- we've had a situation like this back in 2010, and we've seen other competitors have situations like this, Joanne, in terms of the share recovery process. I'd say there's a couple of key things in terms of consideration. And when you think about doing those modeling, it's looking at your share of the WIC program, your ability to continue to call on pediatricians and your share in the hospitals.
And I would say we've disproportionately focused in this quarter with our global supply network to focus on those channels. And one of the challenges with that is the WIC channel is a lower-priced channel than what we'd call the non-WIC channel. So that's probably where we made a decision to take our -- take the volume that we had. And like I said in my opening comments, we actually supplied to the market this quarter, what we supplied in the three months prior to the recall.
It's just the mix of that supply was overly gated toward the WIC states and the WIC contracts that we had. We made a commitment to those states that they would not have backward supply shortages. So we focused on that. And I think by focusing on that, we not only live to our commitments and the contracts that we put in place but that's going to obviously be a base for us as we go into this quarter and into next quarter.
So if you look at the Nielsen data, you do see share recovery, I'd say, we probably lost about 20 share points from the recall. And I think the last read that I saw in September was we got half of it back. And that is a mix -- this will go to the mix piece where on the WIC side, we've recovered all of our share. And now we're going to take our capacity and start moving it into the non-WIC channel with the non-WIC configuration.
So like I said, we've intentionally made these decisions in terms of how we're supplying the market. And I think by doing that, just naturally with the work that our teams are doing, we'll start to see the share recovery build month-over-month. So that's probably how to think about it.
Operator
And our next question comes from Josh Jennings from Cowen.
Josh Jennings -- Cowen and Company -- Analyst
Robert, I wanted to ask about the COVID testing franchise and just the strength in 2022 and thinking about the comp for 2023. Is there anything you can share in terms of contracts that are in place for 2023 and what that base could look like where weather contracts in 2022 could roll over into 2023? I know it's impossible to forecast utilization or uptake of COVID testing next year, but if there's any base commentary you can provide, that would be helpful. And I just have one follow-up.
Robert Ford -- Chairman and Chief Executive Officer
Yes, I think that's -- looking at the market between government contracts and nongovernment contracts is something that we spent a lot of time this year doing because obviously, those government contracts, they're high-volume and they ultimately skew a little bit of kind of the run rate as we're trying to kind of run rate this. So if you look at our Q4 number, our Q4 number that we're forecasting is really what I would call an endemic state, right? So about $0.5 billion across the world, across all of our platforms, in a winter season without necessarily forecasting the kind of surge that we saw last year. In that number, we do not have any significant government contracts. Now what governments have realized is that they do need to make some investments and they do need to hold some level of testing inventory in their countries.
So we have active conversations with a lot of governments and they recognize and realize Abbott's ability to scale up and scale up pretty fast. So we've got plenty of capacity, and they know that, they know the value of our product. They work very well with the -- in terms of determining COVID and the new variants, etc. So we don't have any significant number in 2020 -- in Q4 of this year, we think that that's the kind of -- right kind of run rate from an endemic standpoint.
And if there is a surge and if governments realize that they do need to procure more testing, we've got the product, we've got the reliability of the product and we've got the reliability of supply, and they know that. So we're in a good position there.
Josh Jennings -- Cowen and Company -- Analyst
Excellent. Just one follow-up on Libre. You mentioned just the path to achieving full ICGM status and understand there's a segment of the CGM that will open up for Libre, but I was wondering if you could just share your thoughts on the potential impact to clinician sentiment toward accuracy of the platform, payer sentiment in terms of whether there could be any formulary prioritization decisions considering the pricing? And then on the other side of that, how are you -- any new thoughts on pricing for Libre 3 for taking this inflationary environment.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, listen, this is an important segment, right? Obviously, the vast majority of CGM users and the vast majority of future potential users are people that are either injecting insulin with pens or syringes or not even using insulin, right? But we recognize that this is an important segment. So we're doing -- like I said, we completed the work on Libre 2 regarding the Vitamin C. We'll be updating -- will be updated in the market and our partners as we go through that process with the agency.
But we also believe that -- we also believe that there is potential to innovate even further in that pump integration, right? And we talked about this last call. We announced this at the ADA in June which is the creation of a dual analyze sensor, a glucose ketone sensor. Everybody -- all the capabilities that I've spoken to that you're -- I guess you're referring to believe that this would be the go-to sensor for pump integration because the ketone functionality provides the added safety feature that would be required, right? So if there's some sort of interruption in insulin delivery from the pump, what is understood clinically is that the ketone levels will rise earlier than the glucose levels and to be able to have that ketone level, that continuous ketone level measurement is an added safety feature for that pump environment. And I think it does provide, I guess, a step ahead in terms of innovation, in terms of pump integration.
Regarding the accuracy, I mean, I think it's commonly understood and the data is very clear in terms of Freestyle Libre -- I mean even FreeStyle Libre 2, but FreeStyle Libre 3 being a definitive best-in-class accurate sensor. It's the only CGM sub-8 MARD. So I don't think we have that issue. So it's an important segment, and we're going to be investing in it, and we're going to -- our goal is to actually provide something that's even more advanced and more beneficial.
Sorry, did you have another question on -- pricing. Yes, Libre 3 pricing, Libre 2 pricing, Libre 1 pricing, it's practically all the same, Josh. And the more volume we can get on to Libre 3, the more we can kind of lower those COGS. But we have a parity pricing right now.
And we think that that pricing strategy -- as I said last year, as the international markets or even in the U.S., people have challenges either with co-pays in the U.S. or with formularies and reimbursement decisions internationally. I think that our value proposition is very strong, and it's going to prove itself out very clearly as single-payer systems start to look at how to fine-tune their budgets and get more done either with less or with the same amount. So I think that our value proposition, consumer-friendly product with best-in-class accuracy, feature set that has no real gaps, and our pricing strategy, I think it's a complete value prop.
Operator
And our next question comes from Vijay Kumar from Evercore ISI.
Vijay Kumar -- Evercore ISI -- Analyst
Robert, maybe my first one for you. The headline organic ExCo within 3Q was 3%-ish low singles. When you back out some of these the supply chain impact, I think you mentioned Germany at Nutrition, what was the underlying organic growth? And when can we get back to an environment where there is no mismatch in the headline organic and underlying rate? It's a clean number. So maybe just talk about that cadence to normality.
Robert Ford -- Chairman and Chief Executive Officer
It was high single -- mid- to high single once you do all those exclusions. I don't like doing that. I mean I get that it's important to be able to isolate what the challenges are and what the issues are and are they more transitory or are they more kind of sustained issues in the business. I would say the issues that we've had, the challenges we've had in this quarter regarding supply chain, they're fairly, I'd say, from a med device perspective, they're pretty significant, and they kind of had the impact that we saw in our med device business.
I think if you had look at the kind of back orders that we had, whether it was Libre 1 and some of the back orders that we had in EP, we would be high single digits. But if you back out these issues mid to high overall for the company. Yes, your question of when do we get into kind of normal organic? I think part of the challenge here is COVID -- COVID to play. And as that base becomes smaller than what it is this year, I mean, this year, we'll probably do very much close to the same amount of COVID test sales that we did kind of last year.
But as we move into next year, and that becomes smaller than this year, we'll see a little bit of an impact on that overall growth rate. But as I said, I think in Robbie's question, I see high single-digit growth once you back out of COVID. And so COVID will be just the determining factor there, but base non-COVID, high single digits next year.
Vijay Kumar -- Evercore ISI -- Analyst
That's helpful. And then maybe one on the financial side. I think gross margins were down Q-on-Q. I'm wondering what was the FX incremental inflation impact.
I think Robert Funck mentioned $0.10 of FX impact in Q4. Should we annualize that to about $0.40 of FX impact for next year? I'm not sure how to think about FX and inflationary impact for next year. And we didn't talk about Lingo. Shouldn't that be an incremental driver here and not '23?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Let me -- Vijay, I'll take the exchange first. I mean, I wouldn't necessarily take that $0.10 impact in the fourth quarter and extrapolate that for the full year of next year. But certainly, through the first three quarters, you would expect to see that. But then in the fourth quarter, you're going to kind of be at those rates that we currently are at.
So but again, it is going to be a significant headwind for us next year. On inflation, definitely, we're seeing the impacts there. Like others, the biggest impacts we've seen it really around commodities, other manufacturing input cost and logistics. We've incorporated about another $100 million impact to gross margin in our current guidance.
So that's about $1 billion for the year, so call it, maybe 240 -- probably a little more than 240 basis points on the gross margin. As we -- as Robert said, we've seen a little bit of moderation in the rate of increase in the third quarter to where we were earlier in the year, and we're trying to take some price to offset that really more in our consumer-facing businesses. Kind of given the way that inflation has hit us over the course of this year, the inventory that we purchased and manufacture this year at these higher costs will definitely negatively impact us next year when that inventory is sold even if inflationary pressures start to come down kind of as we get into next year.
Robert Ford -- Chairman and Chief Executive Officer
On your question on Lingo, Vijay, we have factored in a launch into next year. We have not factored that launch here in the U.S. So it is an international launch. It's a different business model, as I talked about it, more of a direct-to-consumer wellness subscription model.
And we're on target here to come out of the gates to that in Q1. We are going to be launching into what I would call a little bit of a challenging environment. So we've taken that into consideration here. But I think that the long-term growth opportunity of building this kind of business, a wellness subscription-like model with the platform that we've built and the scale that we have, I think, is a great growth opportunity for us.
We do have it factored in into next year probably launching in the beginning of the year and then building from there. But we'll be launching, like I said, in a challenging environment, but I still think it's the right thing to do from a long-term perspective.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Operator, we'll take one more question.
Operator
And we'll take our last question from Travis Steed from Bank of America.
Travis Steed -- Bank of America Merrill Lynch -- Analyst
I did want to ask on China, how do you see the recovery shaping up there? There's going to be another headwind next year and any new EVPs that you see coming up in China?
Robert Ford -- Chairman and Chief Executive Officer
Yes. It is going to be a little bit of a headwind. You can think about it as either currency and EVP. We've gone through this in some other parts of our business.
So we do expect this value-based procurement or pricing here to play out. I think the next the next area that we're looking at. We've gone through it with stents last year or a year and a half ago, and the next area that we're looking at is probably on the electrophysiology side. That's probably the next category that's up.
It's interesting, as we've been looking at this, there's definitely interesting impacts in terms of ranges of these pricing. We've actually gone through some of it in pharmaceuticals also. It will range from 30% to 80% in terms of pricing. And really, the magnitude here depends on whether it's a national or regional process.
Some of the categories have been more regional. And they tend to be a little bit lower. And it also depends on the number of participants that exist in that category. So as I look at -- on the EP side, we've also seen that when there are more -- like a system-based approach, Travis.
So think capital, think about the technical support and the infrastructure associated support that, those tend to be a little bit on the lower end of that range versus to be on the higher end of that range. So that's probably what we've got contemplated for VBP next year is more on the EP side.
Travis Steed -- Bank of America Merrill Lynch -- Analyst
No. That's helpful. And I did want to ask about the M&A environment, too, since it hasn't come up yet on this call. And also kind of how it relates to your thinking of the device growth longer term, if you're still able to grow at the high end of med tech.
And it's the Fab 5, as you called, is enough to do that? Or if you need to augment device growth with M&A over time?
Robert Ford -- Chairman and Chief Executive Officer
No, I don't feel that I need to do M&A to be able to sustain that high single-digit growth that we've been posting pretty consistently on devices. I did say in the last call that we're interested and we're being prudent about that interest. The interest has increased and we actively assess all the opportunities here. But as I've said, just because we have a strong balance sheet, and we've got a lot of flexibility, we're still going to make sure that we're going about this from a strategic perspective and we're going about it from a financial perspective.
So obviously, valuations come down somewhat. And that helps on the financial modeling and attractiveness side from it. But I would say they probably need to stabilize a little bit of these valuations so that you can engage what I would call just meaningful discussions here. And I think as those stabilize, I think you'll see the environment pick up here in terms of M&A.
So we're in a good position. Don't need to do M&A, but there's a lot of opportunities out there for us, and we're going to apply that consistent framework of strategic and financially disciplined in terms of how we look at that. So I'll just sum up here. Q3 was probably a very challenging quarter for us, probably our most challenging.
Obviously, the impact of inflation and supply chain and some of the back orders that we encountered was a headwind. Some of the FX as we go forward also will be a headwind. But you saw the portfolio strength and the execution here coming through that, all those challenges and delivery, not only in the quarter but also for the full year, as evidence of our full-year raise here also. So it's also provided us an opportunity to make some strategic choices, to strengthen our business and to strengthen our position and build our momentum, I guess, to Robbie's comment in the beginning about how everybody shifting to 2023 and so are we.
And we made some choices and decisions here to be able to prepare us and build our momentum and strengthen our position as we go into 2023. I saw a nice recovery in the institutional businesses. And our pipeline here that we talked a little bit about is going to sustain that growth acceleration. There's a lot of organic growth opportunities that we've got in 2023.
And I highlighted here how I see a clear path for high single-digit revenue growth. And then on top of that, we've got a strong balance sheet, and that's going to allow for a very balanced capital deployment to our shareholders and also allow us to fuel future growth. So with that, I'm going to wrap that up. Thanks.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Thank you, operator, and thank you for all of your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11:00 a.m. Central Time today on Abbott's Investor Relations website at abbottinvestor.com.
Thank you for joining us today.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Robert Ford -- Chairman and Chief Executive Officer
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Robbie Marcus -- JPMorgan Chase and Company -- Analyst
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Joanne Wuensch -- Citi -- Analyst
Josh Jennings -- Cowen and Company -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Travis Steed -- Bank of America Merrill Lynch -- Analyst
More ABT analysis
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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 (NYSE: ABT) Q3 2022 Earnings Call Oct 19, 2022, 9:00 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- JPMorgan Chase and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Josh Jennings -- Cowen and Company -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Internationally, in addition to similar procedure volume trends, sales were negatively impacted by intermittent COVID lockdowns in China as well as supply constraints in certain areas, most notably in electrophysiology. | Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- JPMorgan Chase and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Josh Jennings -- Cowen and Company -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q3 2022 Earnings Call Oct 19, 2022, 9:00 a.m. With me today are Robert Ford, chairman and chief executive officer; and Bob Funck, executive vice president, finance, and chief financial officer. | Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- JPMorgan Chase and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Josh Jennings -- Cowen and Company -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q3 2022 Earnings Call Oct 19, 2022, 9:00 a.m. Robert Ford -- Chairman and Chief Executive Officer Yes, I think that's -- looking at the market between government contracts and nongovernment contracts is something that we spent a lot of time this year doing because obviously, those government contracts, they're high-volume and they ultimately skew a little bit of kind of the run rate as we're trying to kind of run rate this. | Operator [Operator signoff] Duration: 0 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- JPMorgan Chase and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Josh Jennings -- Cowen and Company -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q3 2022 Earnings Call Oct 19, 2022, 9:00 a.m. And so while there are certainly other moving parts, that fourth quarter impact should give you a pretty good feel for the magnitude of headwind that's flowing into next year, particularly in the first two to three quarters of the year. |
31372.0 | 2022-10-19 00:00:00 UTC | U.S. Housing Starts Declined in September | ABT | https://www.nasdaq.com/articles/u.s.-housing-starts-declined-in-september | nan | nan | An eventful pre-market has dragged futures into negative territory, following key housing data and more big-name Q3 earnings beats. The markets seem in a mood to give back some of the boon they’ve garnered over the past 3 of 4 sessions: the Dow is -150 points at this hour, the S&P 500 is -25 and the Nasdaq is -70 points.
Housing Starts for the month of September came in lower than expectations, with 1.439 million seasonally adjusted, annualized starts beneath the 1.47 million expected. It’s a fairly big drop from the previous month’s downwardly revised 1.566 million, but still higher than the July cycle-low of 1.377 million. Still, the right direction for the housing market if we’re looking to curb inflation, of which home prices represents a big chunk.
Building Permits, a relative forward indicator of future starts, actually ticked up in September to 1.564 million from 1.542 million seasonally adjusted, annualized units in August. But this still represents a leg-down from the high 1.6-millions we were seeing earlier in the summer and 1.879 million at the 12-month peak. The August print represents lows not seen since the pandemic; again, this is the sort of thing the Fed wants to see in order to help bring down inflation.
Procter & Gamble (PG) posted fiscal Q1 results this morning, keeping earnings season successful overall to this point, with earnings of $1.57 per share beating the Zacks consensus by 2 cents. Revenues in the quarter of $20.61 billion were up from the expected $20.45 billion, and swung to a yearly gain of +1% from an expected loss. Organic revenues grew +7% in the quarter. P&G has just one earnings miss in the past five years.
Abbott Labs (ABT) also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Revenues topped estimates by +8.67% to $10.41 billion in the quarter (though again down from the $10.93 billion a year ago). Abbott has also only posted one earnings miss in the past five years.
After today’s closing bell, we’ll see another slew of earnings reports, including from Tesla (TSLA), which is expected to bring earnings growth of more than +50% year over year on +62% growth in revenues. We already know the EV leader produced 365K vehicles in Q3 and delivered 343K, which helps analysts in their forecasts for the Zacks Rank #3 (Hold) company with a Zacks Style Score of A.
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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 Labs (ABT) also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Abbott Laboratories (ABT): Free Stock Analysis Report An eventful pre-market has dragged futures into negative territory, following key housing data and more big-name Q3 earnings beats. | Abbott Labs (ABT) also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Abbott Laboratories (ABT): Free Stock Analysis Report After today’s closing bell, we’ll see another slew of earnings reports, including from Tesla (TSLA), which is expected to bring earnings growth of more than +50% year over year on +62% growth in revenues. | Abbott Labs (ABT) also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Abbott Laboratories (ABT): Free Stock Analysis Report Housing Starts for the month of September came in lower than expectations, with 1.439 million seasonally adjusted, annualized starts beneath the 1.47 million expected. | Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Labs (ABT) also posted a positive surprise in its Q3 report this morning: earnings of $1.15 per share easily surpassed the 91 cents expected (though still down from the $1.40 per share in the year-ago quarter), for a +26.37% beat. Still, the right direction for the housing market if we’re looking to curb inflation, of which home prices represents a big chunk. |
31373.0 | 2022-10-19 00:00:00 UTC | Health Care Sector Update for 10/19/2022: ABT, JAZZ, ZYME, ISRG, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-10-19-2022%3A-abt-jazz-zyme-isrg-xlv-ibb | nan | nan | Health care stocks were mixed premarket Wednesday. The Health Care SPDR (XLV) was down 0.6% and the iShares Biotechnology Index (IBB) was flat.
Abbott Laboratories (ABT) was declining by 3.8% after it reported Q3 adjusted earnings of $1.15 per diluted share, down from $1.40 a year earlier. Analysts polled by Capital IQ expected $0.94.
Jazz Pharmaceuticals (JAZZ) and Zymeworks' (ZYME) subsidiary Zymeworks BC Inc. have entered into an exclusive licensing deal in which Jazz will be allowed to develop and commercialize Zymeworks' zanidatamab, a HER2-targeted bispecific antibody that the companies said has shown anti-tumor activity in several HER2-expressing cancers. Jazz Pharmaceuticals was 5% lower.
Intuitive (ISRG) reported Q3 non-GAAP earnings of $1.19 per diluted share, flat from a year earlier. Analysts polled by Capital IQ expected $1.12. Intuitive was recently up 11%.
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) was declining by 3.8% after it reported Q3 adjusted earnings of $1.15 per diluted share, down from $1.40 a year earlier. The Health Care SPDR (XLV) was down 0.6% and the iShares Biotechnology Index (IBB) was flat. Intuitive (ISRG) reported Q3 non-GAAP earnings of $1.19 per diluted share, flat from a year earlier. | Abbott Laboratories (ABT) was declining by 3.8% after it reported Q3 adjusted earnings of $1.15 per diluted share, down from $1.40 a year earlier. Analysts polled by Capital IQ expected $0.94. Intuitive (ISRG) reported Q3 non-GAAP earnings of $1.19 per diluted share, flat from a year earlier. | Abbott Laboratories (ABT) was declining by 3.8% after it reported Q3 adjusted earnings of $1.15 per diluted share, down from $1.40 a year earlier. Jazz Pharmaceuticals (JAZZ) and Zymeworks' (ZYME) subsidiary Zymeworks BC Inc. have entered into an exclusive licensing deal in which Jazz will be allowed to develop and commercialize Zymeworks' zanidatamab, a HER2-targeted bispecific antibody that the companies said has shown anti-tumor activity in several HER2-expressing cancers. Intuitive (ISRG) reported Q3 non-GAAP earnings of $1.19 per diluted share, flat from a year earlier. | Abbott Laboratories (ABT) was declining by 3.8% after it reported Q3 adjusted earnings of $1.15 per diluted share, down from $1.40 a year earlier. Health care stocks were mixed premarket Wednesday. The Health Care SPDR (XLV) was down 0.6% and the iShares Biotechnology Index (IBB) was flat. |
31374.0 | 2022-10-19 00:00:00 UTC | Abbott's (ABT) Q2 Earnings Top Estimates, 2022 EPS View Up | ABT | https://www.nasdaq.com/articles/abbotts-abt-q2-earnings-top-estimates-2022-eps-view-up | nan | nan | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. The adjusted figure however declined from the prior-year quarter’s levels by 17.9%.
The quarter’s adjustments include certain non-recurring intangible amortization expenses.
GAAP EPS came in at 81 cents, a 30.8% plunge year on year.
Third-quarter worldwide sales of $10.41 billion were down 4.7% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 8.7%.
On an organic basis (excluding the impact of foreign exchange), sales improved 1.3% year over year in the reported quarter.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the third quarter, Established Pharmaceuticals sales improved 4.9% on a reported basis (up 12.2% on an organic basis) to $1.33 billion. Organic sales in key emerging markets improved 13% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Vietnam and several therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
Medical Devices business sales dropped 0.5% on a reported basis (up 6.4% on an organic basis) to $3.62 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.
Diabetes Care reported organic growth of 12.9% year over year, led by FreeStyle Libre, which contributed $1.0 billion of revenues in the reported quarter. Heart Failure sales improved 2.3% organically. Meanwhile, the Rhythm Management business recorded an organic sales decline of 0.8% in the quarter under review. Electrophysiology and Structural Heart recorded organic growth of 3.8% and 15.1%, respectively, in the quarter under review.
Nutrition sales were down 14.9% year over year on a reported basis (down 10.3% on an organic basis) to $1.79 billion. Pediatric Nutrition sales registered a 22% slump on an organic basis. The downside can be attributed to a manufacturing shutdown in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility. International Pediatric sales were negatively impacted by challenging market conditions in China.
Adult Nutrition sales improved 2.4% 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 6.2% year over year on a reported basis (down 0.6% on an organic basis) to $3.67 billion. Core Laboratory Diagnostics sales were up 2.2% organically. Meanwhile, Molecular Diagnostics declined 44.3% on an organic basis. Rapid Diagnostics sales rose 4.9% on an organic basis, whereas Point of Care Diagnostics sales fell 4% organically.
Margins
Gross profit for the reported quarter fell 11.1% year over year to $5.78 billion. Gross margin contracted 399 basis points (bps) to 55.5%.
Selling, general and administrative expenses were down 1.3% year over year to $2.73 billion. Research and development expenses rose 16.4% year over year to $782 million.
The company reported an adjusted operating profit of $2.27 billion for the quarter under review, down 26% year over year. Adjusted operating margin, too, contracted 627 bps to 21.8%.
2022 Guidance
Abbott has raised its 2022 EPS guidance.
Full-year adjusted earnings (excluding specified items of $1.42 per share) are expected to be in the range of $5.17 to $5.23 (compared with the earlier guidance of at least $4.90). The current Zacks Consensus Estimate is pegged at $5.00.
Our Take
Abbott exited the third quarter of 2022 with better-than-expected earnings and revenues. However, the figures declined on a year-over-year basis.Total sales in the third quarter were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility.
Excluding these negative factors, total worldwide sales increased 6% on an organic basis in the third quarter, benefitting from robust organic sales growth across the company’s core Established Pharmaceuticals andMedical Devices segments.
Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
The raised 2022 guidance buoys optimism.
Zacks Rank and Upcoming Releases
Abbott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Charles River Laboratories International CRL will release third-quarter 2022 results on Nov 2.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson MCK is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana HUM is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
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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 reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote Medical Devices business sales dropped 0.5% on a reported basis (up 6.4% on an organic basis) to $3.62 billion. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote Medical Devices business sales dropped 0.5% on a reported basis (up 6.4% on an organic basis) to $3.62 billion. | Abbott Laboratories ABT reported third-quarter 2022 adjusted earnings of $1.15 per share, which exceeded the Zacks Consensus Estimate by 26.4%. Abbott Laboratories (ABT): Free Stock Analysis Report Diabetes Care reported organic growth of 12.9% year over year, led by FreeStyle Libre, which contributed $1.0 billion of revenues in the reported quarter. |
31375.0 | 2022-10-19 00:00:00 UTC | Abbott (ABT) Q3 Earnings and Revenues Surpass Estimates | ABT | https://www.nasdaq.com/articles/abbott-abt-q3-earnings-and-revenues-surpass-estimates-0 | nan | nan | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 26.37%. A quarter ago, it was expected that this maker of infant formula, medical devices and drugs would post earnings of $1.09 per share when it actually produced earnings of $1.43, delivering a surprise of 31.19%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. This compares to year-ago revenues of $10.93 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Abbott shares have lost about 25.4% since the beginning of the year versus the S&P 500's decline of -22%.
What's Next for Abbott?
While Abbott has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Abbott: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $9.61 billion in revenues for the coming quarter and $5 on $42.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
LeMaitre Vascular (LMAT), another stock in the same industry, has yet to report results for the quarter ended September 2022. The results are expected to be released on October 27.
This medical device maker is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -6.7%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level.
LeMaitre Vascular's revenues are expected to be $40.13 million, up 4.6% from the year-ago quarter.
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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) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report While Abbott has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? |
31376.0 | 2022-10-19 00:00:00 UTC | Abbott (ABT) Q3 Earnings and Revenues Surpass Estimates | ABT | https://www.nasdaq.com/articles/abbott-abt-q3-earnings-and-revenues-surpass-estimates | nan | nan | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 26.37%. A quarter ago, it was expected that this maker of infant formula, medical devices and drugs would post earnings of $1.09 per share when it actually produced earnings of $1.43, delivering a surprise of 31.19%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. This compares to year-ago revenues of $10.93 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Abbott shares have lost about 25.4% since the beginning of the year versus the S&P 500's decline of -22%.
What's Next for Abbott?
While Abbott has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Abbott: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $9.61 billion in revenues for the coming quarter and $5 on $42.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
LeMaitre Vascular (LMAT), another stock in the same industry, has yet to report results for the quarter ended September 2022. The results are expected to be released on October 27.
This medical device maker is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -6.7%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level.
LeMaitre Vascular's revenues are expected to be $40.13 million, up 4.6% from the year-ago quarter.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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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) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $10.41 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 8.67%. | Abbott (ABT) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.91 per share. Abbott Laboratories (ABT): Free Stock Analysis Report While Abbott has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? |
31377.0 | 2022-10-19 00:00:00 UTC | Abbott Laboratories Boosts FY22 Outlook - Update | ABT | https://www.nasdaq.com/articles/abbott-laboratories-boosts-fy22-outlook-update | nan | nan | (RTTNews) - While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2022.
For fiscal 2022, the company now projects earnings in a range of $3.75 to $3.81 per share and adjusted earnings in a range of $5.17 to $5.23 per share.
Previously, the company expected earnings of at least $3.50 per share and adjusted earnings of at least $4.90 per share.
On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $5.05 per share for the year. Analysts' estimates typically exclude special items.
The company said the guidance assumes COVID-19 testing-related sales of $7.8 billion, which includes sales of $7.3 billion through September 2022 and projected sales of $0.5 billion in the fourth quarter.
On September 15, 2022, the board of directors of Abbott declared the company's quarterly cash dividend of $0.47 per share, payable November 15, 2022 to shareholders of record at the close of business on October 14, 2022.
For more earnings news, earnings calendar, and earnings for stocks, 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) - While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2022. On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $5.05 per share for the year. On September 15, 2022, the board of directors of Abbott declared the company's quarterly cash dividend of $0.47 per share, payable November 15, 2022 to shareholders of record at the close of business on October 14, 2022. | (RTTNews) - While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, the company now projects earnings in a range of $3.75 to $3.81 per share and adjusted earnings in a range of $5.17 to $5.23 per share. The company said the guidance assumes COVID-19 testing-related sales of $7.8 billion, which includes sales of $7.3 billion through September 2022 and projected sales of $0.5 billion in the fourth quarter. | (RTTNews) - While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2022. For fiscal 2022, the company now projects earnings in a range of $3.75 to $3.81 per share and adjusted earnings in a range of $5.17 to $5.23 per share. Previously, the company expected earnings of at least $3.50 per share and adjusted earnings of at least $4.90 per share. | (RTTNews) - While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2022. Previously, the company expected earnings of at least $3.50 per share and adjusted earnings of at least $4.90 per share. Analysts' estimates typically exclude special items. |
31378.0 | 2022-10-19 00:00:00 UTC | Abbott raises 2022 profit forecast for second time | ABT | https://www.nasdaq.com/articles/abbott-raises-2022-profit-forecast-for-second-time | nan | nan | Adds third-quarter results
Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products.
Shares of the company rose nearly 2% in premarket trade.
The company's medical devices sales grew 11% in the United States in the third quarter, driven by strong performance of its Freestyle Libre continuous glucose monitoring system, which clocked around $1 billion in sales.
The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. The company had raised its outlook from at least $4.70 per share in July.
Abbott said it expects around $7.8 billion in COVID-19 test sales this year, with $500 million in the fourth quarter.
(Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds third-quarter results Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. Abbott said it expects around $7.8 billion in COVID-19 test sales this year, with $500 million in the fourth quarter. (Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Maju Samuel) ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds third-quarter results Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company's medical devices sales grew 11% in the United States in the third quarter, driven by strong performance of its Freestyle Libre continuous glucose monitoring system, which clocked around $1 billion in sales. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. | Adds third-quarter results Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company's medical devices sales grew 11% in the United States in the third quarter, driven by strong performance of its Freestyle Libre continuous glucose monitoring system, which clocked around $1 billion in sales. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. | Adds third-quarter results Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. Abbott said it expects around $7.8 billion in COVID-19 test sales this year, with $500 million in the fourth quarter. |
31379.0 | 2022-10-19 00:00:00 UTC | Abbott Laboratories Q3 Profit Decreases, but beats estimates | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q3-profit-decreases-but-beats-estimates | nan | nan | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for third quarter that decreased from the same period last year but beat the Street estimates.
The company's bottom line came in at $1.44 billion, or $0.81 per share. This compares with $2.10 billion, or $1.17 per share, in last year's third quarter.
Excluding items, Abbott Laboratories reported adjusted earnings of $2.04 billion or $1.15 per share for the period.
Analysts on average had expected the company to earn $0.94 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 4.8% to $10.41 billion from $10.93 billion last year.
Abbott Laboratories earnings at a glance (GAAP) :
-Earnings (Q3): $1.44 Bln. vs. $2.10 Bln. last year. -EPS (Q3): $0.81 vs. $1.17 last year. -Analyst Estimates: $0.94 -Revenue (Q3): $10.41 Bln vs. $10.93 Bln last year.
-Guidance: Full year EPS guidance: $5.17 to $5.23
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 Laboratories (ABT) revealed a profit for third quarter that decreased from the same period last year but beat the Street estimates. Excluding items, Abbott Laboratories reported adjusted earnings of $2.04 billion or $1.15 per share for the period. Analysts on average had expected the company to earn $0.94 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for third quarter that decreased from the same period last year but beat the Street estimates. Excluding items, Abbott Laboratories reported adjusted earnings of $2.04 billion or $1.15 per share for the period. Abbott Laboratories earnings at a glance (GAAP) : -Earnings (Q3): $1.44 Bln. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for third quarter that decreased from the same period last year but beat the Street estimates. This compares with $2.10 billion, or $1.17 per share, in last year's third quarter. The company's revenue for the quarter fell 4.8% to $10.41 billion from $10.93 billion last year. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for third quarter that decreased from the same period last year but beat the Street estimates. This compares with $2.10 billion, or $1.17 per share, in last year's third quarter. Excluding items, Abbott Laboratories reported adjusted earnings of $2.04 billion or $1.15 per share for the period. |
31380.0 | 2022-10-19 00:00:00 UTC | Abbott raises 2022 profit forecast for second time | ABT | https://www.nasdaq.com/articles/abbott-raises-2022-profit-forecast-for-second-time-0 | nan | nan | Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products.
The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. The company had raised its outlook from at least $4.70 per share in July.
Abbott said it expects around $7.8 billion in COVID-19 test sales this year, with $500 million in the fourth quarter.
(Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. Abbott said it expects around $7.8 billion in COVID-19 test sales this year, with $500 million in the fourth quarter. (Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Maju Samuel) ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. The company had raised its outlook from at least $4.70 per share in July. | Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. (Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Maju Samuel) ((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oct 19 (Reuters) - Abbott Laboratories ABT.Non Wednesday raised its annual earnings forecast for the second time, citing strong demand for medical devices and pharmaceutical products. The company now expects $5.17-$5.23 per share in adjusted earnings this year, compared to at least $4.90 per share it forecast earlier. The company had raised its outlook from at least $4.70 per share in July. |
31381.0 | 2022-10-19 00:00:00 UTC | Abbott Laboratories Q3 22 Earnings Conference Call At 9:00 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q3-22-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on Oct. 19, 2022, to discuss Q3 22 earnings results.
To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall
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 Laboratories (ABT) will host a conference call at 9:00 AM ET on Oct. 19, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall 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 Laboratories (ABT) will host a conference call at 9:00 AM ET on Oct. 19, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall 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 Laboratories (ABT) will host a conference call at 9:00 AM ET on Oct. 19, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall 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 Laboratories (ABT) will host a conference call at 9:00 AM ET on Oct. 19, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31382.0 | 2022-10-18 00:00:00 UTC | Abbott Laboratories Shares Approach 52-Week Low - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-approach-52-week-low-market-mover-1 | nan | nan | Abbott Laboratories (ABT) shares closed today at 2.0% above its 52 week low of $96.22, giving the company a market cap of $183B. The stock is currently down 24.2% year-to-date, down 8.6% over the past 12 months, and up 104.4% over the past five years. This week, the Dow Jones Industrial Average rose 4.5%, and the S&P 500 rose 3.7%.
Trading Activity
Trading volume this week was 48.1% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , lags it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by 228.9%
The company's stock price performance over the past 12 months lags the peer average by 709.5%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 287.4% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 2.0% above its 52 week low of $96.22, giving the company a market cap of $183B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 228.9% The company's stock price performance over the past 12 months lags the peer average by 709.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 287.4% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 2.0% above its 52 week low of $96.22, giving the company a market cap of $183B. This week, the Dow Jones Industrial Average rose 4.5%, and the S&P 500 rose 3.7%. Trading Activity Trading volume this week was 48.1% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 2.0% above its 52 week low of $96.22, giving the company a market cap of $183B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , lags it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 228.9% The company's stock price performance over the past 12 months lags the peer average by 709.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 287.4% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 2.0% above its 52 week low of $96.22, giving the company a market cap of $183B. This week, the Dow Jones Industrial Average rose 4.5%, and the S&P 500 rose 3.7%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
31383.0 | 2022-10-18 00:00:00 UTC | Pre-Market Earnings Report for October 19, 2022 : PG, ABT, ELV, PLD, TRV, MTB, NDAQ, BKR, NTRS, CFG, CMA, ALLY | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-19-2022-%3A-pg-abt-elv-pld-trv-mtb-ndaq-bkr-ntrs-0 | nan | nan | The following companies are expected to report earnings prior to market open on 10/19/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company (PG)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.55. This value represents a 3.73% decrease compared to the same quarter last year. PG missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -1.63%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for PG is 21.77 vs. an industry ratio of 22.00.
Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. The medical products company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.90. This value represents a 35.71% decrease compared to the same quarter last year. In the past year ABT has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 31.19%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Elevance Health, Inc. (ELV)is reporting for the quarter ending September 30, 2022. The medical services company's consensus earnings per share forecast from the 16 analysts that follow the stock is $7.10. This value represents a 4.57% increase compared to the same quarter last year. In the past year ELV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.15%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ELV is 16.56 vs. an industry ratio of -37.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Prologis, Inc. (PLD)is reporting for the quarter ending September 30, 2022. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.70. This value represents a 63.46% increase compared to the same quarter last year. PLD missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -0.89%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PLD is 20.55 vs. an industry ratio of 12.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The Travelers Companies, Inc. (TRV)is reporting for the quarter ending September 30, 2022. The insurance (property & casualty) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.77. This value represents a 31.92% decrease compared to the same quarter last year. In the past year TRV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 28.5%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TRV is 12.66 vs. an industry ratio of 16.60.
M&T Bank Corporation (MTB)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 13 analysts that follow the stock is $4.21. This value represents a 11.97% increase compared to the same quarter last year. In the past year MTB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MTB is 12.43 vs. an industry ratio of 9.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Nasdaq, Inc. (NDAQ)is reporting for the quarter ending September 30, 2022. The securities exchange company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.65. This value represents a 10.17% increase compared to the same quarter last year. In the past year NDAQ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NDAQ is 21.42 vs. an industry ratio of 18.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Baker Hughes Company (BKR)is reporting for the quarter ending September 30, 2022. The oil (field services) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.25. This value represents a 56.25% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BKR is 26.01 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Northern Trust Corporation (NTRS)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.82. This value represents a 1.11% increase compared to the same quarter last year. NTRS missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -2.11%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NTRS is 11.97 vs. an industry ratio of 9.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Citizens Financial Group, Inc. (CFG)is reporting for the quarter ending September 30, 2022. The savings & loan company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.21. This value represents a 0.82% decrease compared to the same quarter last year. In the past year CFG has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 11.76%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CFG is 8.50 vs. an industry ratio of 11.60.
Comerica Incorporated (CMA)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.57. This value represents a 35.26% increase compared to the same quarter last year. CMA missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.72%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CMA is 8.56 vs. an industry ratio of 9.70.
Ally Financial Inc. (ALLY)is reporting for the quarter ending September 30, 2022. The financial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.73. This value represents a 19.91% decrease compared to the same quarter last year. ALLY missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -7.37%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ALLY is 4.21 vs. an industry ratio of 4.80.
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 reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. | Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. | In the past year ABT has beat the expectations every quarter. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. |
31384.0 | 2022-10-18 00:00:00 UTC | Pre-Market Earnings Report for October 19, 2022 : PG, ABT, ELV, PLD, TRV, MTB, NDAQ, BKR, NTRS, CFG, CMA, ALLY | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-19-2022-%3A-pg-abt-elv-pld-trv-mtb-ndaq-bkr-ntrs-cfg | nan | nan | The following companies are expected to report earnings prior to market open on 10/19/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company (PG)is reporting for the quarter ending September 30, 2022. The cleaning company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.55. This value represents a 3.73% decrease compared to the same quarter last year. PG missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -1.63%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for PG is 21.77 vs. an industry ratio of 22.00.
Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. The medical products company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.90. This value represents a 35.71% decrease compared to the same quarter last year. In the past year ABT has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 31.19%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Elevance Health, Inc. (ELV)is reporting for the quarter ending September 30, 2022. The medical services company's consensus earnings per share forecast from the 16 analysts that follow the stock is $7.10. This value represents a 4.57% increase compared to the same quarter last year. In the past year ELV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.15%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ELV is 16.56 vs. an industry ratio of -37.00, implying that they will have a higher earnings growth than their competitors in the same industry.
ProLogis, Inc. (PLD)is reporting for the quarter ending September 30, 2022. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.70. This value represents a 63.46% increase compared to the same quarter last year. PLD missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -0.89%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PLD is 20.55 vs. an industry ratio of 12.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The Travelers Companies, Inc. (TRV)is reporting for the quarter ending September 30, 2022. The insurance (property & casualty) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.77. This value represents a 31.92% decrease compared to the same quarter last year. In the past year TRV has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 28.5%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TRV is 12.66 vs. an industry ratio of 16.60.
M&T Bank Corporation (MTB)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 13 analysts that follow the stock is $4.21. This value represents a 11.97% increase compared to the same quarter last year. In the past year MTB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MTB is 12.43 vs. an industry ratio of 9.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Nasdaq, Inc. (NDAQ)is reporting for the quarter ending September 30, 2022. The securities exchange company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.65. This value represents a 10.17% increase compared to the same quarter last year. In the past year NDAQ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.81%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NDAQ is 21.42 vs. an industry ratio of 18.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Baker Hughes Company (BKR)is reporting for the quarter ending September 30, 2022. The oil (field services) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.25. This value represents a 56.25% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BKR is 26.01 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Northern Trust Corporation (NTRS)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.82. This value represents a 1.11% increase compared to the same quarter last year. NTRS missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -2.11%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NTRS is 11.97 vs. an industry ratio of 9.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Citizens Financial Group, Inc. (CFG)is reporting for the quarter ending September 30, 2022. The savings & loan company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.21. This value represents a 0.82% decrease compared to the same quarter last year. In the past year CFG has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 11.76%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CFG is 8.50 vs. an industry ratio of 11.60.
Comerica Incorporated (CMA)is reporting for the quarter ending September 30, 2022. The bank company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.57. This value represents a 35.26% increase compared to the same quarter last year. CMA missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.72%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CMA is 8.56 vs. an industry ratio of 9.70.
Ally Financial Inc. (ALLY)is reporting for the quarter ending September 30, 2022. The financial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.73. This value represents a 19.91% decrease compared to the same quarter last year. ALLY missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -7.37%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ALLY is 4.21 vs. an industry ratio of 4.80.
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 reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. | Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. In the past year ABT has beat the expectations every quarter. | In the past year ABT has beat the expectations every quarter. Abbott Laboratories (ABT)is reporting for the quarter ending September 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 20.70 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry. |
31385.0 | 2022-10-18 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, Abbott Laboratories, International Business Machines, Estee Lauder and Progressive | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-abbott-laboratories-international-business | nan | nan | For Immediate Release
Chicago, IL – October 18, 2022 – 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: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR.
Here are highlights from Monday’s Analyst Blog:
Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM and Others
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc., Abbott Laboratories and International Business Machines Corp. 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 >>>
Q3 Earnings Season Scorecard
Including this morning's results, we now havre Q3 results from 38 S&P 500 members that combined account for 10.7% of the index's total market capitalization. Total earnings for these 38 index members are down -4.7% from the same period last year on +9.4% higher revenues, with 76.3% beating EPS estimates and 57.9% beating revenue estimates.
For the Finance sector which has an outisize weightage in the results at this stage, we now have results from 32.3% of the sector's market capitalization in the S&P 500 index. Total Q3 earnings for these banks and brokers are down -12.3% from the same period last year on +5.2% higher revenues, with 91.7% beating EPS estimates and 66.7% beating revenue estimates. The proportion of these banks that have been beaten both EPS and revenue estimates is 66.7%.
This is a better showing from these Finance sector companeis relative to what we have seen from the group in other recent periods. The 'blended' 66.7% beats % for this group of Finance sector companies compares to a low of 33.7%, high of 83.3% and average of 58.3% over the preceding 20 quarters (5 years).
In other words, the Finance sector has given a better-than-expected start to this earnigns season.
Today's Featured Research Reports
Apple shares have declined -3.3% over the past year against the S&P 500 index's -21.2% and decline and the -37.3% pullback in the Zacks Tech sector.
While there are undoubtedly some challenges for Apple on the near-term horizon as a result of the evolving uncertain macro backdrop, it should continue to benefit from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 models are witnessing high pre-order which is expected to drive top-line growth. We expect Apple’s fiscal 2022 revenues to increase 7.3% year over year with Services growing 14.1%..
On the flip side, Apple has a growing exposure to the uncertain Chinese market. The company’s services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
Also, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex.
(You can read the full research report on Apple here >>>)
Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise apprehension.
However, Abbott exited the second quarter of 2022 with better-than-expected earnings and revenues. The top line benefitted from robust organic sales growth across core operating segments, barring Nutrition.
The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. We are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022.
(You can read the full research report on Abbott Laboratories here >>>)
IBM shares have declined -13.7% over the past year against the Zacks Computer - Integrated Systems industry’s decline of -21.0%. The company is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company.
High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM. However, synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include The Estée Lauder Companies Inc., and The Progressive Corporation.
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Abbott Laboratories (ABT): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
The Progressive Corporation (PGR): 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. | Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Abbott Laboratories (ABT): Free Stock Analysis Report Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM. | Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Abbott Laboratories (ABT): Free Stock Analysis Report (You can read the full research report on Apple here >>>) Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%. | Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM and Others The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Abbott Laboratories (ABT): Free Stock Analysis Report The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. |
31386.0 | 2022-10-17 00:00:00 UTC | Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM & Others | ABT | https://www.nasdaq.com/articles/q3-earnings-scorecard-and-analyst-reports-for-apple-abbott-ibm-others | nan | nan | Monday, October 17, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). 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 >>>
Q3 Earnings Season Scorecard
Including this morning's results, we now havre Q3 results from 38 S&P 500 members that combined account for 10.7% of the index's total market capitalization. Total earnings for these 38 index members are down -4.7% from the same period last year on +9.4% higher revenues, with 76.3% beating EPS estimates and 57.9% beating revenue estimates.
For the Finance sector which has an outisize weightage in the results at this stage, we now have results from 32.3% of the sector's market capitalization in the S&P 500 index. Total Q3 earnings for these banks and brokers are down -12.3% from the same period last year on +5.2% higher revenues, with 91.7% beating EPS estimates and 66.7% beating revenue estimates. The proportion of these banks that have been beaten both EPS and revenue estimates is 66.7%.
This is a better showing from these Finance sector companeis relative to what we have seen from the group in other recent periods. The 'blended' 66.7% beats % for this group of Finance sector companies compares to a low of 33.7%, high of 83.3% and average of 58.3% over the preceding 20 quarters (5 years).
In other words, the Finance sector has given a better-than-expected start to this earnigns season.
Today's Featured Research Reports
Apple shares have declined -3.3% over the past year against the S&P 500 index's -21.2% and decline and the -37.3% pullback in the Zacks Tech sector.
While there are undoubtedly some challenges for Apple on the near-term horizon as a result of the evolving uncertain macro backdrop, it should continue to benefit from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 models are witnessing high pre-order which is expected to drive top-line growth. We expect Apple’s fiscal 2022 revenues to increase 7.3% year over year with Services growing 14.1%..
On the flip side, Apple has a growing exposure to the uncertain Chinese market. The company’s services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
Also, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex.
(You can read the full research report on Apple here >>>)
Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise apprehension.
However, Abbott exited the second quarter of 2022 with better-than-expected earnings and revenues. The top line benefitted from robust organic sales growth across core operating segments, barring Nutrition.
The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. We are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022.
(You can read the full research report on Abbott Laboratories here >>>)
IBM shares have declined -13.7% over the past year against the Zacks Computer - Integrated Systems industry’s decline of -21.0%. The company is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company.
High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM. However, synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include Equinor ASA (EQNR), The Estée Lauder Companies Inc. (EL), and The Progressive Corporation (PGR).
Sheraz Mian
Director of Research
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch
IBM Rides on Solid Business Mix, Healthy Productivity Gains
Featured Reports
The Estee Lauder Companies (EL) Benefits From Online Business
Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. For fiscal 2022, online channel grew mid single-digits organically fueled by double-digit growth in Asia-Pacific.
Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
McKesson's (MCK) Deals Buoys Optimism Amid Sluggish Market
Per the Zacks analyst, McKesson has been pursuing acquisitions and divestures to drive growth for its pharmaceutical distribution business, a targeted market that has sluggish growth rate.
Strength in Electrification Segment Aids ABB Amid High Costs
Per the Zacks analyst, strength in ABB's Electrification segment owing to strong customer activity should drive its growth. However, high operating costs remain a concern.
Fidelity National (FIS) Solid on Top-Line Growth, Buyouts
Per the Zacks analyst, strong performance of the company's Merchant Solutions segment is driving revenues. Acquisitions continue to boost its presence across several regions.
Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from strength in beer business on solid demand, particularly in Modelo Especial and Corona Extra. This led to beer sales growth of 15% in Q2.
Solid Investments Aid DTE Energy (DTE), Weak Solvency Woes
Per the Zacks analyst, DTE Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
New Upgrades
Equinor (EQNR) to Benefit From Rising Clean Energy Demand
The Zacks analyst is impressed by Equinor's massive investments in renewable projects, comprising solar and wind energy. With this, the company can capitalize on the rising clean energy demand.
H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons strategy is expected to help H&R Block deliver sustainable revenues, operating profit growth, improve return on investments and maintain solid liquidity.
Sports Betting Expansion to Boost Boyd Gaming (BYD) Prospects
Per the Zacks analyst, Boyd Gaming is likely to benefit from its interactive gaming platform, FanDuel partnership and expansion initiatives. Also, focus on streamlining of cost structure bodes well.
New Downgrades
Sarepta's (SRPT) Overdependence on DMD Drugs a Woe
Though Sarepta Therapeutics has a strong commercial portfolio of drugs targeting DMD indication, the Zacks Analyst is concerned about the company's dependence on a single target market for revenues.n
Low Stream Volumes & Metal Prices to Hurt Royal Gold (RGLD)
The Zacks analyst is concerned that the Royal Gold's results will bear the brunt of lower stream segment sales and the recent downtrend in gold, copper and silver prices.
Challenging Market, Rising Expenses Hurt Franklin (BEN)
Per the Zacks analyst, challenging operating backdrop and geopolitical concerns might affect assets under management (AUM) for Franklin. Rising costs are likely to impede the bottom line.
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 >>
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
Apple Inc. (AAPL): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
The Progressive Corporation (PGR): Free Stock Analysis Report
Equinor ASA (EQNR): 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. | Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Abbott Laboratories (ABT): Free Stock Analysis Report | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). Abbott Laboratories (ABT): Free Stock Analysis Report | Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Abbott Laboratories (ABT): Free Stock Analysis Report | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). Abbott Laboratories (ABT): Free Stock Analysis Report |
31387.0 | 2022-10-17 00:00:00 UTC | 3 Dividend Stocks to Buy Now for a Lifetime of Passive Income | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-now-for-a-lifetime-of-passive-income | nan | nan | It's a bloodbath out there. The S&P 500 fell another 1.6% last week. Now, the benchmark index consisting of the largest publicly traded stocks traded on U.S. markets is down a stunning 24.8% since the end of 2021.
With stock prices tanking left and right, investors looking for stocks to buy are increasingly interested in ones that can deliver reliable streams of passive income. There are a lot of options, but not all can be expected to both make and steadily raise their payouts year after year.
Image source: Getty Images.
These three giants of the healthcare sector have been making and raising their payout for a long time. Here's why their best days could still be in front of them.
1. CVS Health
Most of us are familiar with CVS Health's (NYSE: CVS) enormous chain of retail pharmacies and medical clinics. What you probably don't realize is that the pharmacies you see are just a small part of this healthcare conglomerate's increasingly profitable operation.
CVS Health is a great dividend stock to buy because it usually manages the healthcare benefits folks receive at its physical locations. The company has long owned a pharmacy benefits management business that currently handles prescription benefits for an estimated 110 million plan members. In 2018, CVS Health merged with Aetna, a major health insurer that collects premiums from around 35 million Americans.
Being the end provider of healthcare benefits that the company also gets paid to manage is an incredibly lucrative position to be in. In the second quarter alone, CVS Health recorded $5.4 billion in cash from operations and profits will more than likely rise as the company provides more primary care benefits. In September, CVS Health agreed to acquire Signify Health and its nationwide network of more than 10,000 clinicians for around $8 billion in cash.
At recent prices, CVS Health stock offers a 2.5% yield. This isn't exactly tantalizing but it could rise sharply over the next few years. Over the past 12 months, the company needed just 17.5% of the free cash flow its operations generated to meet its dividend obligation.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that offers a 1.9% yield at the moment. This isn't the sort of dividend yield that gets investors' blood pumping right now but it could get a lot bigger in a few years.
Abbott's nutrition business was in the spotlight earlier this year, when the temporary closure of a single Abbott factory in Michigan led to a nationwide baby formula shortage. In addition to a nutrition business with very little competition, the company markets diagnostic products, cardiovascular devices, and a constant glucose monitor (CGM) for diabetic patients that are driving growth right now.
In May, the FDA cleared Abbott's new CGM device, the Freestyle Libre 3. At the size of two stacked pennies, it's far less obtrusive than similar devices by Abbott or its competitors.
An estimated 37 million Americans, or around 1 in 10, have diabetes. Healthcare plan sponsors are generally willing to pay for CGM devices that need to be replaced every other week. That's because they're a lot less expensive than hospitalizations that become necessary when patients don't keep their blood glucose concentrations in an ideal range. With the CGM likely to lead the market for the foreseeable future, Abbott looks like a smart stock to buy now and hold for the long run.
3. AbbVie
Up until 2013, AbbVie (NYSE: ABBV) was Abbott Laboratories' biopharmaceutical segment. It spun off to shield Abbott from the impending loss of revenue from Humira. This is an injectable anti-inflammation drug used to treat rheumatoid arthritis, psoriasis, and related conditions.
International Humira sales fell to $699 million in the second quarter of 2022 compared to U.S. sales which actually grew to $4.6 billion. The international backsliding is due to biosimilar competition for branded Humira that became available throughout the EU in late 2018.
Right now you can get an above-average 3.9% yield from AbbVie shares because investors are worried about competition hammering U.S. Humira revenue next year. This stock looks like a smart buy because the company's plan to offset Humira losses with sales of more recently launched drugs is working. AbbVie launched Rinvoq for arthritis and Skyrizi for Psoriasis in 2019. Combined sales of the pair reached $4.6 billion last year, and they're expected to contribute a combined $15 billion to AbbVie's top line in 2025.
The next couple of years could be nerve-wracking as biosimilar competition for Humira heats up. With a line-up of more recently launched drugs to offset the losses, though, this stock could deliver heaps of passive income to patient investors.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and CVS Health Corporation. 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 healthcare conglomerate that offers a 1.9% yield at the moment. CVS Health is a great dividend stock to buy because it usually manages the healthcare benefits folks receive at its physical locations. In the second quarter alone, CVS Health recorded $5.4 billion in cash from operations and profits will more than likely rise as the company provides more primary care benefits. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that offers a 1.9% yield at the moment. At recent prices, CVS Health stock offers a 2.5% yield. This stock looks like a smart buy because the company's plan to offset Humira losses with sales of more recently launched drugs is working. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that offers a 1.9% yield at the moment. CVS Health Most of us are familiar with CVS Health's (NYSE: CVS) enormous chain of retail pharmacies and medical clinics. CVS Health is a great dividend stock to buy because it usually manages the healthcare benefits folks receive at its physical locations. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that offers a 1.9% yield at the moment. In the second quarter alone, CVS Health recorded $5.4 billion in cash from operations and profits will more than likely rise as the company provides more primary care benefits. At recent prices, CVS Health stock offers a 2.5% yield. |
31388.0 | 2022-10-16 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy if There's a Stock Market Sell-Off | ABT | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-if-theres-a-stock-market-sell-off-2 | nan | nan | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. People tighten their spending during a downturn, but generally, they don't cut back on their prescriptions.
A high-yielding dividend without sound fundamentals can easily become a dividend trap, but all three of these companies have pipelines with great potential and a strong history of increasing revenue -- and none appear to be overpriced yet.
AbbVie has a plan for its future
AbbVie is a new Dividend King. Counting its time as part of Abbott Laboratories, it has issued a dividend for 50 consecutive years, and since its spinoff from Abbott in 2013, it has increased its dividend by 250%. The company boosted its revenue by 9% this year to $1.41 per share, giving it a yield around 4%.
In the second quarter, the company reported revenue of $14.6 billion, up 4.5% year over year, and earnings per share (EPS) of $3.37, up 11.2% over the same period last year.
So far this year, the company's shares are up a little more than 3% and it trades for slightly more than 19 times earnings. The company has made billions off the immunology drug Humira since it was first approved by the Food and Drug Administration (FDA) 20 years ago. In the second quarter, it brought in $5.4 billion worldwide, up 5.8% year over year. While that drug already faces biosimilar competition overseas and will lose its patent protection in the U.S. next year, AbbVie is already moving to replace it with two other high-selling immunology drugs: Skyrizi and Rinvoq, the combination of which it expects to reach $15 million in sales by 2025.
In the meantime, AbbVie has a huge pipeline that includes therapies in immunology, oncology, neuroscience, virology, women's health, and gastroenterology, along with Allergan's aesthetics drugs. Abbvie will likely produce several blockbuster drugs, even if none of them come close to Humira's sales.
Pfizer putting COVID-19-related revenue to use
Pfizer has seen revenue climb by 1,410% over the past three years. It raised its dividend by 2.5% this year to $0.40 per quarterly share, giving it a yield around 3.82%, with a cash dividend payout ratio of 31.18%. It is the 12th consecutive year the company has increased its dividend, and it has increased it by 150% over that period.
The global company's shares are down more than 9% so far this year but over the past three months, are up more than 5%. In the second quarter, the company reported revenue of $27.7 billion, up 47% year over year. This was led by COVID-19 treatment Paxlovid, with $8.1 billion in sales, and Comirnaty, the company's COVID-19 vaccine that it developed with BioNTech, with $8.8 billion in revenue.
The company had EPS of $1.73, up 77% over the same period last year. Pfizer issued guidance of yearly revenue between $98 billion and $102 billion, up 21% from last year at the midpoint. It also said it expected EPS between $6.30 and $6.45, which would be a 65% increase at the midpoint.
The revenue generated from Paxlovid and Comirnaty may not disappear as the virus will be with us for a while, but they will likely ebb. However, Pfizer has put itself in a strong position by reinvesting its billions toward its pipeline. It has 104 therapies in its pipeline, with 28 in phase 3 trials. This includes a potential blockbuster, the company's mRNA-based flu vaccine, which began its phase 3 clinical trial on Sept. 14. The company is also looking to build revenue through acquisitions, including 36 since 2021. In the meantime, the stock is a steal at only eight times earnings.
Gilead Sciences has been racking up successes
Gilead Sciences, which specializes in oncology and HIV therapies, has been on a winning streak the past few months. In the second quarter, the company reported revenue of $6.3 billion, up 1% over the same period in 2021, due to increased sales of its HIV and oncology therapies, offsetting decreased sales for COVID-19 therapy Veklury and its hepatitis C virus products.
On Sept. 15, the World Health Organization extended its recommendation for Veklury to treat patients with severe COVID-19.
On Sept. 16, the CHMP approved a CAR T-cell therapy, Yescarta, developed by Gilead subsidiary Kite, in Europe as a second-line treatment for diffuse large B-cell lymphoma and high-grade B-cell lymphoma.
On Oct. 3, the FDA approved the retroviral vector manufacturing facility in Oceanside, California, for Kite, making it the only cell therapy company with in-house viral vector manufacturing capabilities.
On Oct. 11, the FDA accepted for priority review the supplemental Biologics License Application (sBLA) for Trodelvy to treat a late-stage of HR+/HER2- metastatic breast cancer. The drug has already been approved to treat other types of breast cancer, as well as metastatic urothelial cancer, a type of cancer that appears in the upper urinary tract.
Even if you take Veklury out of the mix, Gilead would still have generated $5.7 billion in revenue in the second quarter, up 7% year over year. The company's blockbuster HIV drug, Biktarvy, had $2.6 billion in revenue in the quarter, up 28% year over year and 19% sequentially.
The company's shares are down more than 9% so far this year, which has, in turn, raised the yield on the company's dividend to 4.47%. The company raised its quarterly dividend by 2.8% to $0.73 per share this year. Since initiating a dividend in 2015, the company has increased its dividend every year.
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Jim Halley has positions in AbbVie and Pfizer. The Motley Fool has positions in and recommends Gilead Sciences. 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. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. In the meantime, AbbVie has a huge pipeline that includes therapies in immunology, oncology, neuroscience, virology, women's health, and gastroenterology, along with Allergan's aesthetics drugs. On Oct. 11, the FDA accepted for priority review the supplemental Biologics License Application (sBLA) for Trodelvy to treat a late-stage of HR+/HER2- metastatic breast cancer. | Medical stocks don't generally have high dividends, but Abbvie (NYSE: ABBV), Pfizer (NYSE: PFE), and Gilead Sciences (NASDAQ: GILD) all have dividends with yields of 3.5% or more, and these pharmaceuticals stocks serve as a great hedge against inflation because their business models are largely resistant to recessions. In the second quarter, the company reported revenue of $14.6 billion, up 4.5% year over year, and earnings per share (EPS) of $3.37, up 11.2% over the same period last year. The company's blockbuster HIV drug, Biktarvy, had $2.6 billion in revenue in the quarter, up 28% year over year and 19% sequentially. | In the second quarter, the company reported revenue of $14.6 billion, up 4.5% year over year, and earnings per share (EPS) of $3.37, up 11.2% over the same period last year. In the second quarter, the company reported revenue of $27.7 billion, up 47% year over year. The company's blockbuster HIV drug, Biktarvy, had $2.6 billion in revenue in the quarter, up 28% year over year and 19% sequentially. | In the second quarter, the company reported revenue of $14.6 billion, up 4.5% year over year, and earnings per share (EPS) of $3.37, up 11.2% over the same period last year. In the second quarter, the company reported revenue of $27.7 billion, up 47% year over year. Even if you take Veklury out of the mix, Gilead would still have generated $5.7 billion in revenue in the second quarter, up 7% year over year. |
31389.0 | 2022-10-15 00:00:00 UTC | 3 Beaten-Down Stocks to Buy and Hold | ABT | https://www.nasdaq.com/articles/3-beaten-down-stocks-to-buy-and-hold | nan | nan | What's the best time to buy a stock? When it's trading at a discount. And the best stocks to buy at lower prices are the ones that you can hold for the long term.
With this in mind, we asked three Motley Fool contributors to pick beaten-down stocks to buy and hold. Here's why they chose Abbott Laboratories (NYSE: ABT), Moderna (NASDAQ: MRNA), and Pfizer (NYSE: PFE).
A Dividend King with a bright future
Keith Speights (Abbott Laboratories): Shares of Abbott Laboratories have fallen close to 30% year to date. But it's not because the company is struggling. Investors appear to be concerned about the economic uncertainty and the anticipated COVID-related sales decline.
Abbott's business continues to perform quite well, though. The company reported 14.3% year-over-year revenue growth in Q2 on a constant-currency basis. Its adjusted diluted earnings per share (EPS) jumped 22.2%. Abbott even raised its full-year EPS guidance.
To be sure, the company faces some challenges over the near term, including the negative impact of the strong U.S. dollar, healthcare staffing issues, and high inflation. The company also projects a steep decline in revenue from its COVID-19 diagnostic tests in the second half of 2022.
However, Abbott remains one of the best-run companies around. Fortune magazine has ranked it No. 1 among the most admired companies in healthcare for nine consecutive years. Abbott is strong financially. It's a market leader in multiple areas, including continuous glucose monitoring, remote heart-failure monitoring, point-of-care diagnostics, and adult nutrition.
Abbott is also a Dividend King with a track record of 50 consecutive years of dividend increases. The company has paid a dividend every quarter since 1924.
The demand for Abbott's wide range of healthcare products should increase over the long term with aging populations across the world. This stock is beaten down now, but could deliver market-beating returns over the next decade and beyond.
The story is just beginning
Prosper Junior Bakiny (Moderna): Moderna's meteoric rise in the early days of the pandemic was impressive, but it arguably wasn't entirely justified. Sure, the company developed one of the leading coronavirus vaccines on the market. But it makes little sense that after launching just one product, Moderna's market cap surpassed that of well-established biotechs with plenty of approved products on the market, and all in just a couple of years.
That's why the company's horrible performance in the market this year isn't surprising. And with the pandemic slowly receding, Moderna's shares could continue to be southbound in the near term. But it'd be wise for investors to hold on.
Moderna is advancing several exciting programs through the pipeline, including several non-coronavirus candidates in late-stage studies. In June, it kicked off a phase 3 clinical trial for mRNA-1010, a potential influenza vaccine.
Flu vaccines typically aren't very effective. Moderna is looking to change that. The company's other late-stage programs target the respiratory syncytial virus and the cytomegalovirus. There are no approved vaccines for either.
Thanks to its highly successful coronavirus vaccine, Moderna has the funds to sustain its operations and invest in research and development efforts. The company does not have to resort to dilutive forms of financing. In the next five years, investors can expect Moderna to have multiple data readouts for important candidates, at least one major regulatory approval, and it will start many more late-stage programs.
All of that could help the vaccine maker get back in the good graces of investors. The biotech's revenue might drop next year, but Moderna's mRNA vaccine platform boasts exciting potential. We learned that much from Moderna's success in the coronavirus vaccine market. And that could be the first of many victories for this innovative biotech.
A growth stock that's a bargain
David Jagielski (Pfizer): A mammoth healthcare company with a market cap of nearly $240 billion, trading at just eight times its earnings and paying a yield of 3.8%, isn't a deal that you might expect investors to be overlooking right now. But that's what is happening in Pfizer's case. The healthcare stock has been in free fall this year, down 28% since the start of the year. While the stock market is struggling, that's still a steeper drop than the S&P 500's decline of 24% over the same time frame.
What's behind this puzzling performance? Some investors are afraid that Pfizer's top line will tumble next year when sales from its COVID-19 vaccine and pill could decline sharply. But even if that's the case, the pharmaceutical company still has catalysts that can generate growth for its business in the long run. Next year may be a transitional one for the company. However, Pfizer has been preparing itself by taking on multiple acquisitions within the past year to strengthen its operations.
Its most recent deal was the acquisition of Global Blood Therapeutics, which it closed earlier this month. Global Blood, which focuses on developing treatments for sickle cell disease (SCD), generated $235 million in revenue over its past four quarters. Pfizer says the business will help its pipeline develop more SCD treatments. In June, Pfizer also acquired ReViral, which could help it in its development vaccines for the respiratory syncytial virus.
Not all of the moves Pfizer is making will lead to significant revenue next year and make up for what could be a huge loss in COVID-related sales. But over the long term, these and other acquisitions should pay off.
Pfizer is a business with a strong track record for growth over the years. It has over $33 billion on its books in cash and short-term investments that can help it pursue even more growth opportunities. And it's not as if the company's pipeline, which contains more than 100 projects, is short of options.
For long-term investors who crave a great dividend, Pfizer could be an underrated stock to buy right now.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in Pfizer. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Moderna Inc. 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), Moderna (NASDAQ: MRNA), and Pfizer (NYSE: PFE). To be sure, the company faces some challenges over the near term, including the negative impact of the strong U.S. dollar, healthcare staffing issues, and high inflation. In the next five years, investors can expect Moderna to have multiple data readouts for important candidates, at least one major regulatory approval, and it will start many more late-stage programs. | Here's why they chose Abbott Laboratories (NYSE: ABT), Moderna (NASDAQ: MRNA), and Pfizer (NYSE: PFE). A Dividend King with a bright future Keith Speights (Abbott Laboratories): Shares of Abbott Laboratories have fallen close to 30% year to date. A growth stock that's a bargain David Jagielski (Pfizer): A mammoth healthcare company with a market cap of nearly $240 billion, trading at just eight times its earnings and paying a yield of 3.8%, isn't a deal that you might expect investors to be overlooking right now. | Here's why they chose Abbott Laboratories (NYSE: ABT), Moderna (NASDAQ: MRNA), and Pfizer (NYSE: PFE). But it makes little sense that after launching just one product, Moderna's market cap surpassed that of well-established biotechs with plenty of approved products on the market, and all in just a couple of years. A growth stock that's a bargain David Jagielski (Pfizer): A mammoth healthcare company with a market cap of nearly $240 billion, trading at just eight times its earnings and paying a yield of 3.8%, isn't a deal that you might expect investors to be overlooking right now. | Here's why they chose Abbott Laboratories (NYSE: ABT), Moderna (NASDAQ: MRNA), and Pfizer (NYSE: PFE). Abbott's business continues to perform quite well, though. The biotech's revenue might drop next year, but Moderna's mRNA vaccine platform boasts exciting potential. |
31390.0 | 2022-10-14 00:00:00 UTC | Abbott (ABT) Stock Moves -1.52%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-1.52%3A-what-you-should-know | nan | nan | In the latest trading session, Abbott (ABT) closed at $100.91, marking a -1.52% move from the previous day. This change was narrower than the S&P 500's 2.37% loss on the day. At the same time, the Dow lost 1.35%, and the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 2.47% in the past month. In that same time, the Medical sector lost 3.73%, while the S&P 500 lost 6.51%.
Investors will be hoping for strength from Abbott as it approaches its next earnings release, which is expected to be October 19, 2022. The company is expected to report EPS of $0.90, down 35.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.58 billion, down 12.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $42.35 billion, which would represent changes of -4.03% and -1.69%, respectively, from the prior year.
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. 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.
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 0.33% higher. Abbott is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 20.48. Its industry sports an average Forward P/E of 18.67, so we one might conclude that Abbott is trading at a premium comparatively.
Meanwhile, ABT's PEG ratio is currently 3.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 2.17 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 146, which puts it in the bottom 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.
To follow ABT in the coming trading sessions, be sure to utilize 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 $100.91, marking a -1.52% move from the previous day. Meanwhile, ABT's PEG ratio is currently 3.88. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $100.91, marking a -1.52% move from the previous day. Meanwhile, ABT's PEG ratio is currently 3.88. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $100.91, marking a -1.52% move from the previous day. Meanwhile, ABT's PEG ratio is currently 3.88. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $100.91, marking a -1.52% move from the previous day. Meanwhile, ABT's PEG ratio is currently 3.88. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. |
31391.0 | 2022-10-14 00:00:00 UTC | Abbott recalls some ready-to-feed baby formula over bottle defect | ABT | https://www.nasdaq.com/articles/abbott-recalls-some-ready-to-feed-baby-formula-over-bottle-defect | nan | nan | Adds background
Oct 14 (Reuters) - Abbott Laboratories ABT.N said on Friday it was recalling some ready-to-feed baby formula products including Similac-branded items due to inadequate sealing of some bottle caps.
The recall equates to less than one day's worth of infant formula fed in the United States and is not expected to impact the overall supply, Abbott said in a statement.
The recall is one more setback for Abbott, which has been at the center of a baby formula shortage in the United States that sent parent scrambling for supplies earlier this year.
A recall and temporary halt of production at its Michigan plant in February exacerbated a supply shortage of baby formula in the United States.
The products being recalled on Friday were made at Abbott's Columbus, Ohio plant.
TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies
(Reporting by Manas Mishra in Bengaluru; Editing by Vinay Dwivedi)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15;))
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 Oct 14 (Reuters) - Abbott Laboratories ABT.N said on Friday it was recalling some ready-to-feed baby formula products including Similac-branded items due to inadequate sealing of some bottle caps. The recall equates to less than one day's worth of infant formula fed in the United States and is not expected to impact the overall supply, Abbott said in a statement. The recall is one more setback for Abbott, which has been at the center of a baby formula shortage in the United States that sent parent scrambling for supplies earlier this year. | Adds background Oct 14 (Reuters) - Abbott Laboratories ABT.N said on Friday it was recalling some ready-to-feed baby formula products including Similac-branded items due to inadequate sealing of some bottle caps. The recall is one more setback for Abbott, which has been at the center of a baby formula shortage in the United States that sent parent scrambling for supplies earlier this year. A recall and temporary halt of production at its Michigan plant in February exacerbated a supply shortage of baby formula in the United States. | Adds background Oct 14 (Reuters) - Abbott Laboratories ABT.N said on Friday it was recalling some ready-to-feed baby formula products including Similac-branded items due to inadequate sealing of some bottle caps. The recall is one more setback for Abbott, which has been at the center of a baby formula shortage in the United States that sent parent scrambling for supplies earlier this year. A recall and temporary halt of production at its Michigan plant in February exacerbated a supply shortage of baby formula in the United States. | Adds background Oct 14 (Reuters) - Abbott Laboratories ABT.N said on Friday it was recalling some ready-to-feed baby formula products including Similac-branded items due to inadequate sealing of some bottle caps. The recall equates to less than one day's worth of infant formula fed in the United States and is not expected to impact the overall supply, Abbott said in a statement. A recall and temporary halt of production at its Michigan plant in February exacerbated a supply shortage of baby formula in the United States. |
31392.0 | 2022-10-14 00:00:00 UTC | Here's How Investors Can Find Strong Medical Stocks with the Zacks ESP Screener | ABT | https://www.nasdaq.com/articles/heres-how-investors-can-find-strong-medical-stocks-with-the-zacks-esp-screener-6 | nan | nan | Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Abbott?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Abbott (ABT) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.91 a share five days away from its upcoming earnings release on October 19, 2022.
By taking the percentage difference between the $0.91 Most Accurate Estimate and the $0.90 Zacks Consensus Estimate, Abbott has an Earnings ESP of +0.98%. Investors should also know that ABT is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ABT is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is AmerisourceBergen (ABC).
AmerisourceBergen is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 3, 2022. ABC's Most Accurate Estimate sits at $2.60 a share 20 days from its next earnings release.
AmerisourceBergen's Earnings ESP figure currently stands at +0.61% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.58.
ABT and ABC's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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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
AmerisourceBergen Corporation (ABC): 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) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.91 a share five days away from its upcoming earnings release on October 19, 2022. Investors should also know that ABT is one of a large group of stocks with positive ESPs. ABT is one of just a large database of Medical stocks with positive ESPs. | Abbott (ABT) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.91 a share five days away from its upcoming earnings release on October 19, 2022. Investors should also know that ABT is one of a large group of stocks with positive ESPs. ABT is one of just a large database of Medical stocks with positive ESPs. | Abbott (ABT) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.91 a share five days away from its upcoming earnings release on October 19, 2022. Investors should also know that ABT is one of a large group of stocks with positive ESPs. ABT is one of just a large database of Medical stocks with positive ESPs. | Abbott (ABT) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.91 a share five days away from its upcoming earnings release on October 19, 2022. ABT and ABC's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon. Investors should also know that ABT is one of a large group of stocks with positive ESPs. |
31393.0 | 2022-10-13 00:00:00 UTC | What To Expect From Intuitive Surgical's Q3? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-intuitive-surgicals-q3 | nan | nan | Intuitive Surgical (NASDAQ: ISRG) is scheduled to report its Q3 2022 results on Tuesday, October 18. We expect Intuitive Surgical to report revenue and earnings above the street estimates, driven by a rise in total procedures volume. However, inflationary headwinds may weigh on the company’s net margins. Not only do we believe the company will navigate well during the quarter, but we also find the stock to be undervalued, as discussed below. Our interactive dashboard analysis on Intuitive Surgical Earnings Preview has additional details.
(1) Revenues expected to be marginally above the consensus estimates
Trefis estimates Intuitive Surgical’s Q3 2022 revenues to be around $1.6 billion, slightly above the $1.5 billion consensus estimate.
The overall procedure volume likely picked up pace in Q3, aiding the company’s top-line growth.
The company expects its full-year 2022 procedure growth to be between 14% and 16.5%.
Looking at Q2 2022, the company saw its sales grow 4% (y-o-y) to $1.5 billion. This can be attributed to a higher demand for consumables and new system placements. The overall procedure volume grew 14% during the quarter.
Our dashboard on Intuitive Surgical Revenues has more details on the company’s segments.
(2) EPS likely to be slightly above the consensus estimates
Intuitive Surgical’s Q3 2022 adjusted earnings per share (EPS) is expected to be $1.16 per Trefis analysis, slightly above the $1.12 consensus estimate.
The company’s adjusted net income of $415 million in Q2 2022 reflected a 13% fall from its $475 million figure in the prior-year quarter, as the 4% sales growth was more than offset by over 500 bps drop in net margins. This can primarily be attributed to higher logistics costs and increased component pricing.
With the rising inflation, the costs may remain high for the company in the near term.
For the full-year 2022, we expect the adjusted EPS to be lower at $4.70 compared to $4.96 in 2021.
(3) ISRG stock is undervalued
We estimate Intuitive Surgical’s Valuation to be around $240 per share, which is a significant 29% above the current market price of $186.
At its current levels, ISRG stock is trading at under 40x forward adjusted earnings, compared to the last three-year average of over 47x, implying the stock is attractive from a valuation point of view.
Investors have assigned a high trading multiple for ISRG stock, given the substantial revenue and earnings growth over the past years.
However, the stock has corrected meaningfully this year owing to the lockdowns in China impacting its system placements and hospitals reducing their capital expenditures.
Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year
While ISRG stock looks undervalued, it is helpful to see how Intuitive Surgical’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 Abbott vs. Amerco.
With inflation rising and the Fed raising interest rates, among other factors, ISRG stock has plunged 48% this year. Can it drop more? See how low Intuitive Surgical 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 Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return -1% -48% 164%
S&P 500 Return 0% -25% 60%
Trefis Multi-Strategy Portfolio 0% -26% 192%
[1] Month-to-date and year-to-date as of 10/12/2022
[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 Intuitive Surgical to report revenue and earnings above the street estimates, driven by a rise in total procedures volume. Investors have assigned a high trading multiple for ISRG stock, given the substantial revenue and earnings growth over the past years. However, the stock has corrected meaningfully this year owing to the lockdowns in China impacting its system placements and hospitals reducing their capital expenditures. | (1) Revenues expected to be marginally above the consensus estimates Trefis estimates Intuitive Surgical’s Q3 2022 revenues to be around $1.6 billion, slightly above the $1.5 billion consensus estimate. (2) EPS likely to be slightly above the consensus estimates Intuitive Surgical’s Q3 2022 adjusted earnings per share (EPS) is expected to be $1.16 per Trefis analysis, slightly above the $1.12 consensus estimate. Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year While ISRG stock looks undervalued, it is helpful to see how Intuitive Surgical’s Peers fare on metrics that matter. | (1) Revenues expected to be marginally above the consensus estimates Trefis estimates Intuitive Surgical’s Q3 2022 revenues to be around $1.6 billion, slightly above the $1.5 billion consensus estimate. Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year While ISRG stock looks undervalued, it is helpful to see how Intuitive Surgical’s Peers fare on metrics that matter. Total [2] ISRG Return -1% -48% 164% S&P 500 Return 0% -25% 60% Trefis Multi-Strategy Portfolio 0% -26% 192% [1] Month-to-date and year-to-date as of 10/12/2022 [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 Intuitive Surgical to report revenue and earnings above the street estimates, driven by a rise in total procedures volume. The company’s adjusted net income of $415 million in Q2 2022 reflected a 13% fall from its $475 million figure in the prior-year quarter, as the 4% sales growth was more than offset by over 500 bps drop in net margins. (3) ISRG stock is undervalued We estimate Intuitive Surgical’s Valuation to be around $240 per share, which is a significant 29% above the current market price of $186. |
31394.0 | 2022-10-13 00:00:00 UTC | What's in Store for Abbott Laboratories (ABT) in Q3 Earnings? | ABT | https://www.nasdaq.com/articles/whats-in-store-for-abbott-laboratories-abt-in-q3-earnings | nan | nan | Abbott Laboratories ABT is slated to report third-quarter 2022 results on Oct 19, before market open.
In the last reported quarter, the company delivered an earnings surprise of 31.19%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all the occasions, the average beat being 28.23%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
The ongoing inflationary pressure, a strengthening U.S. dollar and supply chain issues are expected to have adversely impacted Abbott’s overall third-quarter performance. Going by the industry-wide trend so far, logistical challenges and increasing unit cost might have weighed on corporate profitability of the company. Not just this, the existing healthcare staffing challenges and diminishing demand for COVID-testing products may also have weighed on the company through the Q3 months. The lockdown issues in limited geographies, including China where the company has extensive base, are expected to have also impacted the business during the third quarter.
On a positive note, in the months of the third quarter, a significant rise in the number of monkeypox cases in the United States and other major developed as well as emerging economies are expected to have accelerated testing volume globally, giving a boost to Abbott’s Diagnostics business revenues. According to the company, with the emergence of new viruses that escape immunity, rapid tests have become the best tool to help slow and prevent transmission.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Worldwide Diagnostic sales are expected to have demonstrated growth in Q3 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments as well as expanding menus across the company’s testing platforms.
Within Nutrition, total worldwide Nutrition and Pediatric Nutrition sales are expected to have declined in Q3, thanks to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February. These include the company’s market-leading Similac and Elecare. Though the company announced an update on the resumption of partial production at the facility, starting with the specialty formula EleCare and metabolic formulas, business recovery might take some more time. Also, per the last update, the company is yet to restart Similac production. All these are expected to have caused a year-over-year dip in the pediatric nutrition business.
Abbott’s other consumer-facing businesses, which include diabetes care and established pharmaceuticals, have been catching up, backed by new product instructions. This uptrend is likely to have majorly contributed to the company's third-quarter performance.
Within Established Pharmaceuticals Division (EPD), the company has been witnessing visible signs of a rebound, reflecting sequential improvement based on its stable business model. New product launches across key emerging markets have been majorly boosting the EPD business in recent months. The third-quarter performance is likely to have been driven by growing customer demand for core therapeutic lines, including cardiometabolic, respiratory and central nervous system/pain management.
Revenues are likely to have improved in the company’s Diabetes Care business, as it has been on a substantially strong growth trajectory in recent times. Abbott has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, widely known as the FreeStyle Libre System.
Estimates
For third-quarter 2022, the Zacks Consensus Estimate for total revenues of $9.59 billion indicates a 12.2% dip from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at 89 cents, suggesting a 36.4% decline year on year.
Earnings Whispers
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a higher chance of beating estimates. However, that is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -2.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Charles River Laboratories International CRL has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson MCK has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana HUM currently has an Earnings ESP of +0.76% and a Zacks Rank of #2. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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Abbott Laboratories (ABT): Free Stock Analysis Report
McKesson Corporation (MCK): Free Stock Analysis Report
Humana Inc. (HUM): Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL): 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 ABT is slated to report third-quarter 2022 results on Oct 19, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Factors at Play The ongoing inflationary pressure, a strengthening U.S. dollar and supply chain issues are expected to have adversely impacted Abbott’s overall third-quarter performance. | Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories ABT is slated to report third-quarter 2022 results on Oct 19, before market open. McKesson Corporation (MCK): Free Stock Analysis Report | Abbott Laboratories ABT is slated to report third-quarter 2022 results on Oct 19, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price and EPS Surprise Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote Worldwide Diagnostic sales are expected to have demonstrated growth in Q3 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments as well as expanding menus across the company’s testing platforms. | Abbott Laboratories ABT is slated to report third-quarter 2022 results on Oct 19, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report New product launches across key emerging markets have been majorly boosting the EPD business in recent months. |
31395.0 | 2022-10-13 00:00:00 UTC | SPYG, ADBE, ORCL, ABT: Large Inflows Detected at ETF | ABT | https://www.nasdaq.com/articles/spyg-adbe-orcl-abt%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $98.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 239,600,000 to 241,600,000). Among the largest underlying components of SPYG, in trading today Adobe Inc (Symbol: ADBE) is down about 0.4%, Oracle Corp (Symbol: ORCL) is off about 2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $48.46. 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 »
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 SPYG, in trading today Adobe Inc (Symbol: ADBE) is down about 0.4%, Oracle Corp (Symbol: ORCL) is off about 2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $48.46. 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 SPYG, in trading today Adobe Inc (Symbol: ADBE) is down about 0.4%, Oracle Corp (Symbol: ORCL) is off about 2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $48.46. 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 ». | Among the largest underlying components of SPYG, in trading today Adobe Inc (Symbol: ADBE) is down about 0.4%, Oracle Corp (Symbol: ORCL) is off about 2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $98.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 239,600,000 to 241,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $48.46. | Among the largest underlying components of SPYG, in trading today Adobe Inc (Symbol: ADBE) is down about 0.4%, Oracle Corp (Symbol: ORCL) is off about 2%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $98.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 239,600,000 to 241,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $73.64 as the 52 week high point — that compares with a last trade of $48.46. |
31396.0 | 2022-10-13 00:00:00 UTC | Why the Bear Market May Not Be Over Anytime Soon | ABT | https://www.nasdaq.com/articles/why-the-bear-market-may-not-be-over-anytime-soon | nan | nan | As of the end of last week, the S&P 500 and the Nasdaq were down 24% and 32%, respectively. Concerns of a possible recession combined with rising interest rates, inflation, supply chain issues, and a war in Ukraine are some of the main reasons the markets have faced a tough year in 2022.
But even though the markets have tanked so much already, investors should be careful not to assume that the worst is over. Here are a couple of reasons why the markets could still be struggling in the months ahead.
Earnings estimates remain high
A big problem I'm seeing with some stocks is that, although investors are concerned about a recession being on the way, that isn't reflected in analysts' earnings estimates. Forward price-to-earnings (P/E) multiples are based on analyst expectations for how a business will perform next year. And if a recession is coming, then it would stand to reason that forward P/E multiples should look worse than the trailing ones (i.e., how the company has been performing over the past 12 months).
But this isn't the case: The S&P 500 currently averages a trailing P/E of 18, but based on estimates for the next 12 months, its forward P/E is just over 16. That suggests analysts expect, on average, for stocks in the S&P 500 to generate better earnings in the future than they are now. An adjustment to these expectations is overdue, and once analysts update their estimates, which could happen after the next earnings season, it could trigger another sell-off.
Many households are still holding lots of money in equities
Another factor that looks to be still positively impacting the stock market is that more people are invested in stocks than is normally the case. Retail investors have been piling into stocks since the start of the pandemic. Not only were there a lack of entertainment options amid lockdowns in 2020, but stimulus payments combined with a freeze on student loan repayments put people in better financial positions, and thus, many of them began buying stocks.
According to Goldman Sachs, equities account for 39% of the assets that U.S. households have right now. That remains near record levels (in the 96th percentile). The investment bank projects that next year, under challenging economic conditions and potentially higher unemployment, there could be many people pulling money out of the stock market; the bank expects households will sell up to $100 billion in stocks. That's a lot of money coming out of the market, meaning that there could be more bearish activity on the way, and some stocks could become even cheaper than they are at present.
Many quality stocks are available right now
There are already many attractive stocks to buy in the market today. In healthcare, where the pandemic disrupted regular day-to-day operations at hospitals, for example, there could be some underrated investments.
Shares of pharmaceutical giant and medical device maker Johnson & Johnson (NYSE: JNJ) are down a relatively modest 6% this year, but this top healthcare stock remains close to its 52-week low. Its P/E over the past 12 months is 23 (the healthcare average is around 20), but this is a company that should perform better as the healthcare industry returns to normal. Plus, with the business spinning off its consumer health unit, which is the source of many legal headaches for the company and not a whole lot of growth, it has the potential to become a much better buy in the future. It's also a Dividend King, raising its dividend payments for 60 years in a row.
Then there's Abbott Laboratories (NYSE: ABT), which voluntarily issued recalls on its baby formula products earlier this year. The bad press and underwhelming results due to that led to its shares crashing 28% so far this year. But this is still a largely diversified company that makes medical devices, sells nutritional products and pharmaceuticals, and provides diagnostics. It's also a Dividend King and makes for an attractive long-term investment. Its trailing P/E of 22 should also improve next year.
Should you wait to buy stocks?
The deals in thestock market todaycould become better ones if the markets crash even more. But that isn't a guarantee, as some beaten-down stocks may have already reached a bottom. The point here is that some stocks, especially those with optimistic forecasts, could remain vulnerable and due for steeper declines in value.
If you've found some fairly valued stocks to buy right now that you believe could do well next year, it's still a good idea to buy and hold. Trying to time the market and wait for the bottom could lead to missing out on a great opportunity.
Investors should simply brace themselves for the possibility that even blue-chip investments, such as Johnson & Johnson and Abbott Laboratories, could decline next year. But that doesn't mean that buying them today would be a bad move. With so much unpredictability in the markets these days, the short term is likely to remain volatile. But loading up on quality investments over the long term could still pay off significantly.
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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. | Then there's Abbott Laboratories (NYSE: ABT), which voluntarily issued recalls on its baby formula products earlier this year. Concerns of a possible recession combined with rising interest rates, inflation, supply chain issues, and a war in Ukraine are some of the main reasons the markets have faced a tough year in 2022. Not only were there a lack of entertainment options amid lockdowns in 2020, but stimulus payments combined with a freeze on student loan repayments put people in better financial positions, and thus, many of them began buying stocks. | Then there's Abbott Laboratories (NYSE: ABT), which voluntarily issued recalls on its baby formula products earlier this year. The investment bank projects that next year, under challenging economic conditions and potentially higher unemployment, there could be many people pulling money out of the stock market; the bank expects households will sell up to $100 billion in stocks. But this is still a largely diversified company that makes medical devices, sells nutritional products and pharmaceuticals, and provides diagnostics. | Then there's Abbott Laboratories (NYSE: ABT), which voluntarily issued recalls on its baby formula products earlier this year. Many households are still holding lots of money in equities Another factor that looks to be still positively impacting the stock market is that more people are invested in stocks than is normally the case. The investment bank projects that next year, under challenging economic conditions and potentially higher unemployment, there could be many people pulling money out of the stock market; the bank expects households will sell up to $100 billion in stocks. | Then there's Abbott Laboratories (NYSE: ABT), which voluntarily issued recalls on its baby formula products earlier this year. But this isn't the case: The S&P 500 currently averages a trailing P/E of 18, but based on estimates for the next 12 months, its forward P/E is just over 16. Many households are still holding lots of money in equities Another factor that looks to be still positively impacting the stock market is that more people are invested in stocks than is normally the case. |
31397.0 | 2022-10-12 00:00:00 UTC | What's Happening With Hologic Stock? | ABT | https://www.nasdaq.com/articles/whats-happening-with-hologic-stock | nan | nan | Hologic stock (NASDAQ: HOLX), a medical devices company focused on women’s health, has seen a 19% fall this year, faring slightly better than the broader S&P500 index, down 24%. Even if we look at the longer term, HOLX stock, with 45% returns from levels seen in late 2017, has slightly outperformed the S&P 500 index, up around 35%. However, HOLX stock now looks fairly valued at around $62, as discussed below.
This 45% rise for HOLX stock since late 2017 can primarily be attributed to 1. Hologic’s revenue rising a significant 69% to $5.2 billion over the last twelve months, compared to $3.1 billion in 2017, 2. a 10% fall in its total shares outstanding to 251 million, driven by $1.9 billion spent on share repurchases over this period, partly offset by 3. a 23% fall in the company’s P/S ratio to 3.0x trailing revenues currently, compared to 3.9x in 2017. The increase in revenue and a fall in shares outstanding have meant that Hologic’s revenue per share rose 88% to $20.82 over the last twelve months, vs. $11.08 in 2017.
Hologic’s sharp revenue growth over the recent years was primarily driven by its diagnostics business, which benefited from Covid-19 testing. Diagnostics segment revenue surged 3x to $3.6 billion in 2021, compared to 1.2 billion in 2019, before the pandemic. Now that the Covid-19-induced growth is over, Diagnostics revenue is declining (down 13% y-o-y for the nine months period ending June 2022). However, it should be noted that the company’s diagnostics business is not limited to Covid-19 tests; it sells the Panther systems used to run different types of tests, bolstering revenue growth in the long run. With these systems already in place, the company can look forward to recurring revenues from other tests. Furthermore, last year, Hologic acquired Mobidiag – an acute care molecular diagnostic testing company – for $808 million, which will likely bolster its revenue growth in the future.
While the company has good prospects, supply chain disruptions, semiconductor chip shortage, rising costs, and a decline in Covid-19 testing demand are some factors that have weighed on its stock price growth. Although Hologic’s operating margin has seen strong growth from -4.2% in 2019, before the pandemic, to 45.3% in 2021, it has fallen slightly to 38.9% for the last twelve months, owing to rising costs. For perspective, Hologic’s operating expenses increased 6% y-o-y for the nine months period ending June 2022, compared to a 9% revenue fall. Our Hologic Operating Income Comparison dashboard has more details.
Given the near-term headwinds, Hologic is expected to see over 15% top-line contraction this fiscal to over $4.8 billion (per the consensus estimate). Assuming the current share count of 251 million (reported for Q3 fiscal 2022), we arrive at the expected revenue per share of $19.04 for the full fiscal 2022. Now, at its current levels, HOLX stock is trading at 3.3x forward expected revenues, compared to the last three-year average of 3.5x. Given the expected decline in the Diagnostics business in the near term, a moderate downward revision in the trading multiple makes sense. That said, now that HOLX stock has already seen a 19% fall this year and its P/S multiple is lower than the historical average, we believe that it is appropriately priced.
While HOLX stock looks appropriately priced, it is helpful to see how Hologic’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 Heico vs. Abbott.
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 Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
HOLX Return -4% -19% 54%
S&P 500 Return 1% -24% 61%
Trefis Multi-Strategy Portfolio 1% -26% 195%
[1] Month-to-date and year-to-date as of 10/11/2022
[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. | Hologic stock (NASDAQ: HOLX), a medical devices company focused on women’s health, has seen a 19% fall this year, faring slightly better than the broader S&P500 index, down 24%. Furthermore, last year, Hologic acquired Mobidiag – an acute care molecular diagnostic testing company – for $808 million, which will likely bolster its revenue growth in the future. While the company has good prospects, supply chain disruptions, semiconductor chip shortage, rising costs, and a decline in Covid-19 testing demand are some factors that have weighed on its stock price growth. | Hologic’s revenue rising a significant 69% to $5.2 billion over the last twelve months, compared to $3.1 billion in 2017, 2. a 10% fall in its total shares outstanding to 251 million, driven by $1.9 billion spent on share repurchases over this period, partly offset by 3. a 23% fall in the company’s P/S ratio to 3.0x trailing revenues currently, compared to 3.9x in 2017. For perspective, Hologic’s operating expenses increased 6% y-o-y for the nine months period ending June 2022, compared to a 9% revenue fall. Now, at its current levels, HOLX stock is trading at 3.3x forward expected revenues, compared to the last three-year average of 3.5x. | Hologic’s revenue rising a significant 69% to $5.2 billion over the last twelve months, compared to $3.1 billion in 2017, 2. a 10% fall in its total shares outstanding to 251 million, driven by $1.9 billion spent on share repurchases over this period, partly offset by 3. a 23% fall in the company’s P/S ratio to 3.0x trailing revenues currently, compared to 3.9x in 2017. The increase in revenue and a fall in shares outstanding have meant that Hologic’s revenue per share rose 88% to $20.82 over the last twelve months, vs. $11.08 in 2017. Total [2] HOLX Return -4% -19% 54% S&P 500 Return 1% -24% 61% Trefis Multi-Strategy Portfolio 1% -26% 195% [1] Month-to-date and year-to-date as of 10/11/2022 [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. | Hologic’s revenue rising a significant 69% to $5.2 billion over the last twelve months, compared to $3.1 billion in 2017, 2. a 10% fall in its total shares outstanding to 251 million, driven by $1.9 billion spent on share repurchases over this period, partly offset by 3. a 23% fall in the company’s P/S ratio to 3.0x trailing revenues currently, compared to 3.9x in 2017. Now that the Covid-19-induced growth is over, Diagnostics revenue is declining (down 13% y-o-y for the nine months period ending June 2022). Although Hologic’s operating margin has seen strong growth from -4.2% in 2019, before the pandemic, to 45.3% in 2021, it has fallen slightly to 38.9% for the last twelve months, owing to rising costs. |
31398.0 | 2022-10-12 00:00:00 UTC | Will Abbott Stock Rise After Its Q3 Results? | ABT | https://www.nasdaq.com/articles/will-abbott-stock-rise-after-its-q3-results | nan | nan | Abbott (NYSE: ABT) is scheduled to report its Q3 2022 results on Wednesday, October 19. We expect the company to likely post revenue and earnings slightly below the street expectations. Supply chain disruptions, forex headwinds, and a decline in Covid-19-related demand will likely weigh on the company’s performance. Although we expect Abbott to post downbeat results in Q3, our forecast indicates that ABT stock has some room for growth from its current levels, as discussed below. Our interactive dashboard analysis of Abbott Earnings Preview has additional details.
(1) Revenues expected to be slightly below the consensus estimates
Trefis estimates Abbott’s Q3 2022 revenues to be around $9.6 billion, reflecting a 12% y-o-y decline and slightly below the consensus estimate of $9.7 billion.
The revenue growth will likely be impacted by lower demand for Covid-19 testing and forex headwinds.
For perspective, Abbott expects total Covid-19-related sales of $6.1 billion for 2022, of which it has already garnered $5.6 billion in the first half of the year, implying only $500 million in expected sales in the second half of the year. This compares with $7.7 billion in Covid-19-related sales in 2021.
The nutritional segment has had a tough start this year, with manufacturing challenges at its Michigan facility impacting the supply and, in turn, sales of baby formula products, weighing on the segment sales in the first half of this year.
Earlier this year, Abbott secured the U.S. FDA approval for its Freestyle Libre 3, and this will help it gain market share and aid the diabetes business sales growth.
Looking at Q2, the company reported $11.3 billion in sales, up 10% y-o-y, driven by a solid 33% rise in diagnostics sales.
Our dashboard on Abbott Revenues offers more details on the company’s segments.
(2) EPS likely to be marginally below the consensus estimates
Abbott’s Q3 2022 adjusted earnings per share (EPS) is expected to be $0.94 per Trefis analysis, just a cent below the consensus estimate of $0.95.
Abbott’s adjusted net income of $2.5 billion in Q2 2022 reflected a 20% growth from its $2.1 billion figure in the prior-year quarter. This can be attributed to higher revenues and nearly a 200 bps net margin expansion, partly due to a decline in R&D and SG&A as a percentage of sales.
For the full-year 2022, we expect the adjusted EPS to be lower at $5.03, compared to $5.24 in 2021. This can be attributed to an anticipated decline in Covid-19-related sales.
(3) ABT stock has room for growth
We estimate Abbott’s Valuation to be around $124 per share, which is about 23% above the current market price of $101.
At its current levels, ABT stock is trading at a forward P/E multiple of 20x based on our EPS estimate of $5.03 for 2022, compared to the last three-year average of 24x, implying that ABT stock is attractive from a valuation point of view.
If the company reports upbeat Q3 results and provides an outlook better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for ABT stock.
While ABT stock looks undervalued, 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 Cintas vs. Merck.
With inflation rising and the Fed raising interest rates, among other factors, ABT stock has fallen 28% this year. 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 Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return 5% -28% 163%
S&P 500 Return 1% -24% 61%
Trefis Multi-Strategy Portfolio 1% -26% 195%
[1] Month-to-date and year-to-date as of 10/11/2022
[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. | Although we expect Abbott to post downbeat results in Q3, our forecast indicates that ABT stock has some room for growth from its current levels, as discussed below. Abbott (NYSE: ABT) is scheduled to report its Q3 2022 results on Wednesday, October 19. (3) ABT stock has room for growth We estimate Abbott’s Valuation to be around $124 per share, which is about 23% above the current market price of $101. | Total [2] ABT Return 5% -28% 163% S&P 500 Return 1% -24% 61% Trefis Multi-Strategy Portfolio 1% -26% 195% [1] Month-to-date and year-to-date as of 10/11/2022 [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. Abbott (NYSE: ABT) is scheduled to report its Q3 2022 results on Wednesday, October 19. Although we expect Abbott to post downbeat results in Q3, our forecast indicates that ABT stock has some room for growth from its current levels, as discussed below. | Total [2] ABT Return 5% -28% 163% S&P 500 Return 1% -24% 61% Trefis Multi-Strategy Portfolio 1% -26% 195% [1] Month-to-date and year-to-date as of 10/11/2022 [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. Abbott (NYSE: ABT) is scheduled to report its Q3 2022 results on Wednesday, October 19. Although we expect Abbott to post downbeat results in Q3, our forecast indicates that ABT stock has some room for growth from its current levels, as discussed below. | (3) ABT stock has room for growth We estimate Abbott’s Valuation to be around $124 per share, which is about 23% above the current market price of $101. At its current levels, ABT stock is trading at a forward P/E multiple of 20x based on our EPS estimate of $5.03 for 2022, compared to the last three-year average of 24x, implying that ABT stock is attractive from a valuation point of view. Total [2] ABT Return 5% -28% 163% S&P 500 Return 1% -24% 61% Trefis Multi-Strategy Portfolio 1% -26% 195% [1] Month-to-date and year-to-date as of 10/11/2022 [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. |
31399.0 | 2022-10-12 00:00:00 UTC | Analysts Estimate Abbott (ABT) to Report a Decline in Earnings: What to Look Out for | ABT | https://www.nasdaq.com/articles/analysts-estimate-abbott-abt-to-report-a-decline-in-earnings%3A-what-to-look-out-for | nan | nan | Wall Street expects a year-over-year decline in earnings on lower revenues when Abbott (ABT) reports results for the quarter ended September 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 19, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of infant formula, medical devices and drugs is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of -36.4%.
Revenues are expected to be $9.59 billion, down 12.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.53% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Abbott?
For Abbott, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.52%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Abbott will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Abbott would post earnings of $1.09 per share when it actually produced earnings of $1.43, delivering a surprise of +31.19%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Abbott doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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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. | Wall Street expects a year-over-year decline in earnings on lower revenues when Abbott (ABT) reports results for the quarter ended September 2022. Abbott Laboratories (ABT): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Wall Street expects a year-over-year decline in earnings on lower revenues when Abbott (ABT) reports results for the quarter ended September 2022. Abbott Laboratories (ABT): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Wall Street expects a year-over-year decline in earnings on lower revenues when Abbott (ABT) reports results for the quarter ended September 2022. Abbott Laboratories (ABT): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. | Wall Street expects a year-over-year decline in earnings on lower revenues when Abbott (ABT) reports results for the quarter ended September 2022. Abbott Laboratories (ABT): Free Stock Analysis Report For Abbott, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. |
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