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31400.0 | 2022-10-11 00:00:00 UTC | Ex-Dividend Reminder: AbbVie, Abbott Laboratories and American Express | ABT | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbvie-abbott-laboratories-and-american-express | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.41 on 11/15/22, Abbott Laboratories will pay its quarterly dividend of $0.47 on 11/15/22, and American Express Co. will pay its quarterly dividend of $0.52 on 11/10/22. As a percentage of ABBV's recent stock price of $138.94, this dividend works out to approximately 1.01%, so look for shares of AbbVie Inc to trade 1.01% lower — all else being equal — when ABBV shares open for trading on 10/13/22. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal.
Below are dividend history charts for ABBV, ABT, and AXP, showing historical dividends prior to the most recent ones declared.
AbbVie Inc (Symbol: ABBV):
Abbott Laboratories (Symbol: ABT):
American Express Co. (Symbol: AXP):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.06% for AbbVie Inc, 1.87% for Abbott Laboratories, and 1.52% for American Express Co..
In Tuesday trading, AbbVie Inc shares are currently up about 0.5%, Abbott Laboratories shares are down about 0.5%, and American Express Co. shares are down about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal. Below are dividend history charts for ABBV, ABT, and AXP, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): American Express Co. (Symbol: AXP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): American Express Co. (Symbol: AXP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 10/13/22, AbbVie Inc (Symbol: ABBV), Abbott Laboratories (Symbol: ABT), and American Express Co. (Symbol: AXP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABT to open 0.47% lower in price and for AXP to open 0.38% lower, all else being equal. Below are dividend history charts for ABBV, ABT, and AXP, showing historical dividends prior to the most recent ones declared. |
31401.0 | 2022-10-11 00:00:00 UTC | Investors Heavily Search Abbott Laboratories (ABT): Here is What You Need to Know | ABT | https://www.nasdaq.com/articles/investors-heavily-search-abbott-laboratories-abt%3A-here-is-what-you-need-to-know | 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.
Over the past month, shares of this maker of infant formula, medical devices and drugs have returned -7.5%, compared to the Zacks S&P 500 composite's -11.1% change. During this period, the Zacks Medical - Products industry, which Abbott falls in, has lost 9.7%. 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.
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.
Abbott is expected to post earnings of $0.89 per share for the current quarter, representing a year-over-year change of -36.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The consensus earnings estimate of $4.99 for the current fiscal year indicates a year-over-year change of -4.2%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.63 indicates a change of -7.2% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
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
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 $9.57 billion indicates a year-over-year change of -12.5%. For the current and next fiscal years, $42.34 billion and $40.5 billion estimates indicate -1.7% and -4.4% changes, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $11.26 billion in the last reported quarter, representing a year-over-year change of +10.1%. EPS of $1.43 for the same period compares with $1.17 a year ago.
Compared to the Zacks Consensus Estimate of $10.36 billion, the reported revenues represent a surprise of +8.67%. The EPS surprise was +31.19%.
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 C on this front, indicating that it is trading at par with 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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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 Over the past month, shares of this maker of infant formula, medical devices and drugs have returned -7.5%, compared to the Zacks S&P 500 composite's -11.1% change. | Abbott (ABT) has been one of the most searched-for stocks on Zacks.com lately. Abbott Laboratories (ABT): Free Stock Analysis Report Last Reported Results and Surprise History Abbott reported revenues of $11.26 billion in the last reported quarter, representing a year-over-year change of +10.1%. | 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. |
31402.0 | 2022-10-10 00:00:00 UTC | What's Next For Eli Lilly Stock After Nearly A 3x Rise Since 2018? | ABT | https://www.nasdaq.com/articles/whats-next-for-eli-lilly-stock-after-nearly-a-3x-rise-since-2018 | nan | nan | Eli Lilly stock (NYSE: LLY) has seen a 21% rise this year, significantly outperforming the broader S&P500 index, down 21%. Even if we look at the longer term, LLY stock, with a stellar 188% return from levels seen in late 2018, has outperformed the S&P 500 index, up nearly 50%. However, LLY stock now looks fairly valued at around $330, as discussed below.
This 188% rise for LLY stock since late 2018 can primarily be attributed to 1. an 86% rise in the company’s P/S ratio to 10.3x trailing revenues currently, compared to 5.5x in 2018, 2. a 35% rise in Eli Lilly’s revenue to $29.1 billion over the last twelve months, compared to $21.5 billion in 2018, and 3. a 12% fall in its total shares outstanding to 900 million, driven by $7.7 billion the company spent on share repurchases over this period. The increase in revenue and a fall in shares outstanding have meant that Eli Lilly’s revenue per share rose 54% to $32.29 over the last twelve months, vs. $20.91 in 2018.
Eli Lilly’s revenue growth over the recent years has been driven by market share gains for some of its drugs, such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. The company recently secured U.S. FDA approval for its diabetes drug – Tirzepatide – which is expected to garner over $5 billion in peak sales. Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion.
Not only has Eli Lilly seen good revenue growth, but it has also posted a consistent rise in operating margins from 17.0% in 2018 to 24.5% over the last twelve months. Our Eli Lilly Operating Income dashboard has more details.
LLY stock has seen a rise of 6% in a week after Biogen’s success with its Alzheimer’s treatment – Lecanemab – in late-stage clinical trials. Lecanemab removed built-up plaque in the brain called beta amyloid, resulting in a cognitive benefit for patients with early-stage Alzheimer’s disease. Now, Eli Lilly is also testing a similar Alzheimer’s treatment that targets a modified form of beta amyloid plaque called N3pG. While Biogen’s share rose a stellar 32% in a week, the development helped some other pharmaceutical stocks with Alzheimer’s treatments in the pipeline, including Eli Lilly, Roche, and Prothena.
Given the company’s strong prospects with Tirzepatide and Verzenio, its revenue is expected to see over 16% growth this year to $29.7 billion (per the consensus estimate). Assuming the current share count of 900 million (reported for Q2 2022), we arrive at the expected revenue per share of $32.94 for the full year 2022. At its current levels, LLY stock is trading at 10.1x forward expected revenues, compared to the last three-year average of 6.3x.
Now, given the positive data from clinical trials of Lecanemab, investors are assigning a higher probability of success for Eli Lilly’s Donanemab. As such, an upward revision in trading multiple makes sense. However, now that LLY stock has already rallied 21% this year (vs. a 21% fall in the broader markets), and its P/S multiple is higher than the historical average, we don’t expect significant growth from the current levels. That said, any positive development from Eli Lilly on its pipeline drugs will surely bode well for its stock.
While LLY stock has already seen a rally, it is helpful to see how Eli Lilly’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 Corcept Therapeutics 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 Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
LLY Return 3% 21% 353%
S&P 500 Return 4% -21% 67%
Trefis Multi-Strategy Portfolio 7% -22% 211%
[1] Month-to-date and year-to-date as of 10/7/2022
[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. | Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion. While Biogen’s share rose a stellar 32% in a week, the development helped some other pharmaceutical stocks with Alzheimer’s treatments in the pipeline, including Eli Lilly, Roche, and Prothena. However, now that LLY stock has already rallied 21% this year (vs. a 21% fall in the broader markets), and its P/S multiple is higher than the historical average, we don’t expect significant growth from the current levels. | This 188% rise for LLY stock since late 2018 can primarily be attributed to 1. an 86% rise in the company’s P/S ratio to 10.3x trailing revenues currently, compared to 5.5x in 2018, 2. a 35% rise in Eli Lilly’s revenue to $29.1 billion over the last twelve months, compared to $21.5 billion in 2018, and 3. a 12% fall in its total shares outstanding to 900 million, driven by $7.7 billion the company spent on share repurchases over this period. While Biogen’s share rose a stellar 32% in a week, the development helped some other pharmaceutical stocks with Alzheimer’s treatments in the pipeline, including Eli Lilly, Roche, and Prothena. However, now that LLY stock has already rallied 21% this year (vs. a 21% fall in the broader markets), and its P/S multiple is higher than the historical average, we don’t expect significant growth from the current levels. | This 188% rise for LLY stock since late 2018 can primarily be attributed to 1. an 86% rise in the company’s P/S ratio to 10.3x trailing revenues currently, compared to 5.5x in 2018, 2. a 35% rise in Eli Lilly’s revenue to $29.1 billion over the last twelve months, compared to $21.5 billion in 2018, and 3. a 12% fall in its total shares outstanding to 900 million, driven by $7.7 billion the company spent on share repurchases over this period. The increase in revenue and a fall in shares outstanding have meant that Eli Lilly’s revenue per share rose 54% to $32.29 over the last twelve months, vs. $20.91 in 2018. Total [2] LLY Return 3% 21% 353% S&P 500 Return 4% -21% 67% Trefis Multi-Strategy Portfolio 7% -22% 211% [1] Month-to-date and year-to-date as of 10/7/2022 [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 188% rise for LLY stock since late 2018 can primarily be attributed to 1. an 86% rise in the company’s P/S ratio to 10.3x trailing revenues currently, compared to 5.5x in 2018, 2. a 35% rise in Eli Lilly’s revenue to $29.1 billion over the last twelve months, compared to $21.5 billion in 2018, and 3. a 12% fall in its total shares outstanding to 900 million, driven by $7.7 billion the company spent on share repurchases over this period. Not only has Eli Lilly seen good revenue growth, but it has also posted a consistent rise in operating margins from 17.0% in 2018 to 24.5% over the last twelve months. While Biogen’s share rose a stellar 32% in a week, the development helped some other pharmaceutical stocks with Alzheimer’s treatments in the pipeline, including Eli Lilly, Roche, and Prothena. |
31403.0 | 2022-10-10 00:00:00 UTC | After A 40% Fall This Year Illumina Stock Is A Better Pick Over Its Peer | ABT | https://www.nasdaq.com/articles/after-a-40-fall-this-year-illumina-stock-is-a-better-pick-over-its-peer | nan | nan | We believe that Illumina stock (NASDAQ: ILMN), a gene sequencing company, is currently a better pick than Thermo Fisher Scientific stock (NYSE: TMO), given Illumina’s better prospects. Both companies are trading at a similar valuation of around 5x trailing revenues. If we look at stock returns, Thermo Fisher Scientific, despite a fall of 18% year-to-date, has outperformed Illumina, down 43%, as well as the broader markets, with the S&P500 index falling 21%. For Illumina, legal troubles around the acquisition of Grail – a cancer blood test developer – have weighed on its stock this year. Illumina’s deal for Grail is under an antitrust review in the U.S. and Europe. There is more to the comparison, and in the sections below, we discuss why we believe ILMN stock will offer better returns than TMO 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 Illumina vs. Thermo Fisher Scientific Group: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Thermo Fisher Scientific’s Revenue Growth Has Been Better In Recent Years
Illumina’s revenue growth of 49.2% over the last twelve months is much better than 11.9% for Thermo Fisher Scientific.
However, if we look at a longer time frame, Illumina’s sales grew at an average growth rate of 12.5% to $4.5 billion in 2021, compared to $3.3 billion in 2018, while Thermo Fisher Scientific saw its revenue grow at an average rate of 17.6% to $39.2 billion in 2021, compared to $24.4 billion in 2018.
Illumina’s sales have been rising due to the booming demand for gene sequencing. The company’s cancer screening and population genomics testing are driving its revenue growth. Also, gains from Covid-19 surveillance programs have contributed to the top-line expansion.
Illumina has a recurring revenue model from consumables and accessories, accounting for 83% of the company’s total sales in 2021.
Thermo Fisher Scientific manufactures analytical laboratory instruments used in various tests, and the pandemic has increased demand for these instruments. Its sales growth is buoyed by continued market share gains for its instruments.
Thermo Fisher Scientific has seen a solid 18.8% growth in the first half of 2022, primarily driven by its Laboratory Products & Biopharma Services segment, which saw a substantial 53% y-o-y growth. This can be attributed to its December 2021 acquisition of PPD Inc. – a clinical research services provider to the biopharma and biotech industry – for $17.4 billion. The PPD business contributed $3.4 billion in revenue in the first half of 2022.
Our Illumina Revenue and Thermo Fisher Scientific Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Illumina’s revenue is expected to grow slightly faster than Thermo Fisher Scientific’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 11.6% for Illumina, compared to a 10.3% CAGR for Thermo Fisher Scientific, 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 in the 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.
Thermo Fisher Scientific Is More Profitable But Comes With Higher Risk
Thermo Fisher Scientific’s current operating margin of 23.8% is far better than -0.2% for Illumina.
However, Illumina has enjoyed better margins over recent years. The current margins compare with 20.6% and 29.3% figures seen in 2019, before the pandemic, respectively.
Thermo Fisher Scientific’s free cash flow margin of 20.6% is better than 7.6% for Illumina.
Our Illumina Operating Income and Thermo Fisher Scientific Operating Income dashboards have more details.
Looking at financial risk, Illumina is better placed than Thermo Fisher Scientific. Its 2% debt as a percentage of equity is lower than 14% for Thermo Fisher Scientific, while its 50% cash as a percentage of assets is higher than just 2% for the latter, implying that Illumina, with its better debt position and more cash cushion, offers lower financial risk compared to Thermo Fisher Scientific.
3. The Net of It All
We see that Illumina comes with lower financial risk. On the other hand, Thermo Fisher Scientific has seen better revenue growth over recent years and is more profitable.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Illumina is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Illumina and Thermo Fisher Scientific over the next three years and points to an expected return of 30% for Illumina over this period vs. a 22% expected return for Thermo Fisher Scientific, implying that both are good investment opportunities currently. However, if investors have to choose one among the two, they will likely be better off buying ILMN over TMO, based on Trefis Machine Learning analysis – Illumina vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers.
While ILMN stock may outperform TMO, 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.
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]
ILMN Return 15% -43% 71%
TMO Return 8% -18% 287%
S&P 500 Return 6% -21% 69%
Trefis Multi-Strategy Portfolio 7% -21% 212%
[1] Month-to-date and year-to-date as of 10/6/2022
[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 compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Illumina vs. Thermo Fisher Scientific Group: Which Stock Is A Better Bet? Beyond the recovery point, we apply the average annual growth observed in the three years before Covid to simulate a return to normal conditions. However, if investors have to choose one among the two, they will likely be better off buying ILMN over TMO, based on Trefis Machine Learning analysis – Illumina vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers. | However, if we look at a longer time frame, Illumina’s sales grew at an average growth rate of 12.5% to $4.5 billion in 2021, compared to $3.3 billion in 2018, while Thermo Fisher Scientific saw its revenue grow at an average rate of 17.6% to $39.2 billion in 2021, compared to $24.4 billion in 2018. However, if investors have to choose one among the two, they will likely be better off buying ILMN over TMO, based on Trefis Machine Learning analysis – Illumina vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers. Total [2] ILMN Return 15% -43% 71% TMO Return 8% -18% 287% S&P 500 Return 6% -21% 69% Trefis Multi-Strategy Portfolio 7% -21% 212% [1] Month-to-date and year-to-date as of 10/6/2022 [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. | Thermo Fisher Scientific’s Revenue Growth Has Been Better In Recent Years Illumina’s revenue growth of 49.2% over the last twelve months is much better than 11.9% for Thermo Fisher Scientific. Its 2% debt as a percentage of equity is lower than 14% for Thermo Fisher Scientific, while its 50% cash as a percentage of assets is higher than just 2% for the latter, implying that Illumina, with its better debt position and more cash cushion, offers lower financial risk compared to Thermo Fisher Scientific. The table below summarizes our revenue and return expectations for Illumina and Thermo Fisher Scientific over the next three years and points to an expected return of 30% for Illumina over this period vs. a 22% expected return for Thermo Fisher Scientific, implying that both are good investment opportunities currently. | Thermo Fisher Scientific’s Revenue Growth Has Been Better In Recent Years Illumina’s revenue growth of 49.2% over the last twelve months is much better than 11.9% for Thermo Fisher Scientific. Our Illumina Revenue and Thermo Fisher Scientific Revenue dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for Illumina and Thermo Fisher Scientific over the next three years and points to an expected return of 30% for Illumina over this period vs. a 22% expected return for Thermo Fisher Scientific, implying that both are good investment opportunities currently. |
31404.0 | 2022-10-09 00:00:00 UTC | 3 Diabetes Care Stocks That Could Help Set You Up for Life | ABT | https://www.nasdaq.com/articles/3-diabetes-care-stocks-that-could-help-set-you-up-for-life | nan | nan | Diabetes has been on the rise for a while because of both the aging of the U.S. population -- as well as expanding waistlines. According to the National Diabetes Statistics Report, 37.3 million people in the United States have diabetes, and 96 million in the U.S. have pre-diabetes, including 48.8% of the population that is 65 or older.
A recent report by Global Market Insights puts the compound annual growth rate for the diabetes care devices market at 10% between now and 2030, becoming an $88 billion market by that time.
DexCom (NASDAQ: DXCM), Medtronic (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), three of the largest manufacturers of continuous glucose monitoring management systems (CGMs) for diabetes care, are healthcare companies that are well-positioned to benefit from the growing number of people with diabetes worldwide.
1. DexCom continuously updates its technology
DexCom's stock is down more than 31% so far this year, but in the long term it is easy to see the company's potential. Halfway through 2022, DexCom reported revenue of $1.3 billion, up 20.4% year over year while net income came in at $148.2 million, up 9.8%, and earnings per share (EPS) was $0.36, up from $0.33.
The company forecast 2022 revenue to be between $2.86 billion and $2.91 billion, a rise of between 17% and 19% over 2021. Over the past 10 years, DexCom has seen revenue rise 2,350%.
DexCom's latest CGM device is its G7 model, a tiny (about the size of three stacked quarters) wearable sensor that can be worn on the arm or abdomen and provides real-time CGM. It's designed for extended wear (10 days) and can be paired with a smartphone or smartwatch. The device launched on Oct. 4 in Great Britain, Ireland, Germany, Austria, and Hong Kong. It is still awaiting Food and Drug Administration approval in the United States but is expected to be launched here sometime this year.
2. Abbott Laboratories has size on its side
Diabetes care is just one facet of Abbott Labs' business. The company operates in three segments: diagnostics, established pharmaceuticals, and medical devices, with its CGMs a big part of the company's medical devices sales.
The company's latest CGM is the FreeStyle Libre 3, a sensor that can be worn for 14 consecutive days and is the size of two stacked pennies, the company said. In the second quarter, sales of FreeStyle Libre systems totaled $1.1 billion, up 18.7% year over year. Overall, the company reported revenue of $11.3 billion, up 10.1%, and EPS of $1.43, up 22%.
Abbott is a Dividend King that has raised its payout for 50 years. It raised its dividend by 4.4% this year to $0.47, which gives it a yield of around 1.82%. The company has a cash dividend payout ratio of only 39%, so there's plenty of room for growth there.
3. Medtronic's balance, dividend make it a good long-term play
Medtronic is a medical device maker that has had more than 200 product approvals in the past 12 months and operates in four portfolios: cardiovascular, medical-surgical, diabetes, and neuroscience. The company's shares are down a little more than 17% this year, and in the short term, the company is struggling with supply chain issues.
In Medtronic's fiscal 2023 first quarter, revenue totaled $7.4 billion, down 7% year over year, but EPS came in at $0.70, up 25%. Revenue for its diabetes portfolio, which includes CGMs and insulin pumps, was down 5% year over year to $541 million, but the company expects sales growth this year with new launches. Of its four portfolios, diabetes was the only one to see organic growth, though that wasn't much at 0.3%.
Medtronic is a Dividend Aristocrat and has raised its dividend for 45 consecutive years, including a boost of 7% last year to $0.68 per quarter, giving the stock a yield of around 3.20%. Over the past 10 years, the company has delivered a total return of 138%.
Despite that track record, the company now trades for only 21 times earnings, making Medtronic an attractive buy.
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Jim Halley 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. | DexCom (NASDAQ: DXCM), Medtronic (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), three of the largest manufacturers of continuous glucose monitoring management systems (CGMs) for diabetes care, are healthcare companies that are well-positioned to benefit from the growing number of people with diabetes worldwide. It is still awaiting Food and Drug Administration approval in the United States but is expected to be launched here sometime this year. Despite that track record, the company now trades for only 21 times earnings, making Medtronic an attractive buy. | DexCom (NASDAQ: DXCM), Medtronic (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), three of the largest manufacturers of continuous glucose monitoring management systems (CGMs) for diabetes care, are healthcare companies that are well-positioned to benefit from the growing number of people with diabetes worldwide. The company's latest CGM is the FreeStyle Libre 3, a sensor that can be worn for 14 consecutive days and is the size of two stacked pennies, the company said. In the second quarter, sales of FreeStyle Libre systems totaled $1.1 billion, up 18.7% year over year. | DexCom (NASDAQ: DXCM), Medtronic (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), three of the largest manufacturers of continuous glucose monitoring management systems (CGMs) for diabetes care, are healthcare companies that are well-positioned to benefit from the growing number of people with diabetes worldwide. Halfway through 2022, DexCom reported revenue of $1.3 billion, up 20.4% year over year while net income came in at $148.2 million, up 9.8%, and earnings per share (EPS) was $0.36, up from $0.33. Revenue for its diabetes portfolio, which includes CGMs and insulin pumps, was down 5% year over year to $541 million, but the company expects sales growth this year with new launches. | DexCom (NASDAQ: DXCM), Medtronic (NYSE: MDT) and Abbott Laboratories (NYSE: ABT), three of the largest manufacturers of continuous glucose monitoring management systems (CGMs) for diabetes care, are healthcare companies that are well-positioned to benefit from the growing number of people with diabetes worldwide. Over the past 10 years, DexCom has seen revenue rise 2,350%. Revenue for its diabetes portfolio, which includes CGMs and insulin pumps, was down 5% year over year to $541 million, but the company expects sales growth this year with new launches. |
31405.0 | 2022-10-08 00:00:00 UTC | 2 Top Healthcare Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/2-top-healthcare-stocks-to-buy-right-now-5 | nan | nan | Persistently high inflation, huge interest-rate hikes, and military conflict in Ukraine have significantly raised the probability of a global recession. Ned Davis Research estimates that there's a 98.1% chance of one by sometime in 2023.
Healthcare is one sector of the global economy that should, for the most part, hold up well. This is because healthcare goods and services are indispensable, especially with a global population that is aging and more prone to health conditions. Here are two companies that are poised to meet the growing demand for medical devices and prescription drugs.
Image source: Getty Images.
1. Abbott Laboratories
Most people probably know healthcare giant Abbott Laboratories (NYSE: ABT) best for its COVID-19 rapid test, BinaxNOW. Its diagnostics business, led by its COVID-19 tests, is the company's largest segment, accounting for 41.5% of its $23.2 billion in total first-half 2022 revenue.
But with countless patents for lifesaving and life-enhancing medical devices and consumer health products (like Similac infant formula), as well as generic pharmaceuticals in international markets, Abbott is more than most consumers recognize it to be. With the global elderly population set to soar from 617 million in 2015 to 1.6 billion by 2050, increased demand for the company's products and new product launches should lead revenue and earnings higher.
Analysts are anticipating that Abbott's non-GAAP (adjusted) diluted earnings per share (EPS) will grow at 11% annually for the next five years. The company also currently provides income investors a 1.8% dividend yield, slightly higher than the 1.7% yield of the S&P 500 index. And since its dividend payout ratio will come in at around just 37% in 2022, Abbott's dividend is poised to continue quickly growing in the years ahead.
Sealing the deal on the "buy" case for the healthcare stock is its valuation. Abbott's forward price-to-earnings (P/E) ratio of 22.1 is just below the medical devices industry's average forward P/E of 22.7. For a bluechip stock such as Abbott, even a slight discount can make it an intriguing pick for investors.
2. Sanofi
French drugmaker Sanofi (NASDAQ: SNY) is most recognized for its megablockbuster immunology drug, Dupixent, which it co-owns with Regeneron (NASDAQ: REGN). Sanofi's share of revenue from the drug surged 44.4% higher year over year to nearly $4 billion in the first half of 2022. This was thanks to increased market share, and an expanded indication last October to treat children ages 6-11 with asthma in the U.S.
With Dupixent's approval from the Food and Drug Administration (FDA) to treat eosinophilic esophagitis earlier this year, the drug's revenue has plenty of room to grow in the years ahead. Sanofi has also five other drugs and a polio/pertussis vaccine franchise on track to generate at least $1 billion in revenue this year.
And the company has a pipeline of 87 projects in different stages of clinical development across multiple therapy areas, such as immunology, oncology, and vaccines. Analysts expect a bright future from Sanofi, with 12.3% annual earnings growth over the next five years.
Investors who need secure, passive income right now won't be disappointed by the stock's 4.4% dividend yield. The forward dividend payout ratio is projected to be modest 42%, which would leave Sanofi with the capital necessary to execute on acquisitions and repay debt to strengthen the business. The best part is that the stock can be purchased at a forward P/E ratio of 9.1, which is well below the industry average of 10.8.
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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 Most people probably know healthcare giant Abbott Laboratories (NYSE: ABT) best for its COVID-19 rapid test, BinaxNOW. Persistently high inflation, huge interest-rate hikes, and military conflict in Ukraine have significantly raised the probability of a global recession. And the company has a pipeline of 87 projects in different stages of clinical development across multiple therapy areas, such as immunology, oncology, and vaccines. | Abbott Laboratories Most people probably know healthcare giant Abbott Laboratories (NYSE: ABT) best for its COVID-19 rapid test, BinaxNOW. With the global elderly population set to soar from 617 million in 2015 to 1.6 billion by 2050, increased demand for the company's products and new product launches should lead revenue and earnings higher. The company also currently provides income investors a 1.8% dividend yield, slightly higher than the 1.7% yield of the S&P 500 index. | Abbott Laboratories Most people probably know healthcare giant Abbott Laboratories (NYSE: ABT) best for its COVID-19 rapid test, BinaxNOW. This was thanks to increased market share, and an expanded indication last October to treat children ages 6-11 with asthma in the U.S. With Dupixent's approval from the Food and Drug Administration (FDA) to treat eosinophilic esophagitis earlier this year, the drug's revenue has plenty of room to grow in the years ahead. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. | Abbott Laboratories Most people probably know healthcare giant Abbott Laboratories (NYSE: ABT) best for its COVID-19 rapid test, BinaxNOW. And since its dividend payout ratio will come in at around just 37% in 2022, Abbott's dividend is poised to continue quickly growing in the years ahead. Sanofi's share of revenue from the drug surged 44.4% higher year over year to nearly $4 billion in the first half of 2022. |
31406.0 | 2022-10-08 00:00:00 UTC | 3 Great Dividend Stocks to Buy in October | ABT | https://www.nasdaq.com/articles/3-great-dividend-stocks-to-buy-in-october | nan | nan | Dividends are important -- and not just for income investors. More than half of the S&P 500's total return over the past 30 years came from reinvesting dividends.
We asked three Motley Fool contributors to identify great dividend stocks to buy in October. Here's why they chose AbbVie (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), and Merck & Co. (NYSE: MRK).
A growth king
Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. AbbVie doesn't disappoint on this front with a juicy dividend yield of 4.2%. However, this yield is only part of the story.
AbbVie also has an impeccable track record of dividend hikes. The big drugmaker has increased its dividend for 50 consecutive years, making it a Dividend King. Since spinning off from Abbott in 2013, AbbVie has boosted its dividend payout by more than 250%.
The stock has also been a big winner for investors. AbbVie's shares have soared nearly 90% over the past three years and are handily beating the overall market so far in 2022.
One fly in the ointment for AbbVie is that its top-selling drug, Humira, faces biosimilar competition in the United States beginning in 2023. The company's sales will almost certainly decline as a result.
However, it's important to look ahead to where AbbVie will be in three years, 10 years, and beyond. The company already has two worthy successors to Humira on the market. AbbVie also has several other growth drivers in its lineup, plus a promising pipeline. I think this stock will keep up its winning ways for a long time to come.
As safe as dividends get
Prosper Junior Bakiny (Johnson & Johnson): For dividend-seeking investors, healthcare giant Johnson & Johnson checks all the right boxes, starting with its storied dividend history. The company has raised its payouts for 60 consecutive years. That puts J&J in the same exclusive club of Dividend Kings to which AbbVie belongs.
Next, there is the company's sturdy business. Johnson & Johnson's portfolio of drugs is both vast and diversified. It markets products within neuroscience, immunology, oncology, infectious diseases, and more. The company has a history of developing novel products, a necessary condition for pharmaceutical companies to remain successful over long periods.
Johnson & Johnson also owns a medical device unit that develops cutting-edge technology to address various heart-related problems, vision issues, and much more. The company is currently spinning off its consumer health segment, home to various over-the-counter healthcare brands. It should complete this transaction by year end.
J&J should then become a leaner, more focused company that is less burdened by the thousands of lawsuits related to some of its consumer health products. Healthcare never runs out of style. Johnson & Johnson's long-standing leadership in the field and the steady earnings it generates will allow it to remain successful.
Then there is the company's solid balance sheet. Johnson & Johnson boasts an AAA credit rating from Standard & Poor's. That's as high as it gets and a testament to the company's ability to handle its debt.
When corporations are in financial trouble, they sometimes choose to cut their dividend to save funds. That's unlikely to happen to Johnson & Johnson. In the past three years (i.e., amid the devastation caused by the pandemic), J&J has increased its payouts by 18.95%. With an above-average yield of nearly 2.8% and a reasonable cash payout ratio of 56.8%, there should be many more dividend increases in the company's future.
All this means I don't think that income-seeking investors can go wrong with Johnson & Johnson.
A high yield with room to go even higher
David Jagielski (Merck & Co.): I believe that Merck definitely ranks as a top dividend stock that investors should consider buying this month. The diversified pharmaceutical company makes medicines for a variety of therapeutic areas, including diabetes, immunology, neuroscience, and oncology.
Cancer drug Keytruda is Merck's top moneymaker, generating more than $10 billion in revenue through the first half of this year and one-third of the company's total sales during that stretch. Merck has also reported a solid profit of $8.3 billion year to date, with an impressive net margin of 27%.
The company's strong financials allow it to pay a dividend that yields 3.1% today. That's well above the S&P 500 average of 1.8%. On a $10,000 investment, that can be an extra $130 per year in dividends by going with Merck compared to the S&P 500.
Merck has paid dividends for decades. It has also been increasing those dividends in recent years, with a compound annual growth rate of 8% over the last five years. If the company were to continue making dividend increases at that pace, it would take only nine years for Merck's dividend to double.
There's plenty of room for Merck to continue increasing its payouts. Its dividend payout ratio currently stands at only 42%. The company normally announces its dividend increases in November, so investors may not have to wait too long before another hike.
Merck's high yield, strong margins, and blockbuster drug in Keytruda should make it an attractive option for investors. I think that it's an investment that can set you up for life.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends Merck & Co. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The diversified pharmaceutical company makes medicines for a variety of therapeutic areas, including diabetes, immunology, neuroscience, and oncology. Cancer drug Keytruda is Merck's top moneymaker, generating more than $10 billion in revenue through the first half of this year and one-third of the company's total sales during that stretch. Merck's high yield, strong margins, and blockbuster drug in Keytruda should make it an attractive option for investors. | A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. As safe as dividends get Prosper Junior Bakiny (Johnson & Johnson): For dividend-seeking investors, healthcare giant Johnson & Johnson checks all the right boxes, starting with its storied dividend history. Merck's high yield, strong margins, and blockbuster drug in Keytruda should make it an attractive option for investors. | As safe as dividends get Prosper Junior Bakiny (Johnson & Johnson): For dividend-seeking investors, healthcare giant Johnson & Johnson checks all the right boxes, starting with its storied dividend history. A high yield with room to go even higher David Jagielski (Merck & Co.): I believe that Merck definitely ranks as a top dividend stock that investors should consider buying this month. If the company were to continue making dividend increases at that pace, it would take only nine years for Merck's dividend to double. | A growth king Keith Speights (AbbVie): Probably the first thing investors look for with a dividend stock is its yield. It has also been increasing those dividends in recent years, with a compound annual growth rate of 8% over the last five years. 10 stocks we like better than Merck & Co. |
31407.0 | 2022-10-07 00:00:00 UTC | Why DexCom Stock Popped on Friday, Even as the Market Crumbled | ABT | https://www.nasdaq.com/articles/why-dexcom-stock-popped-on-friday-even-as-the-market-crumbled | nan | nan | What happened
Shares of DexCom (NASDAQ: DXCM) surged higher on Friday, rising as much as 10.6%. At the end of the trading day, the stock was still up 7.3%, even as the broader market indexes crumbled.
The catalyst that sent the medical device maker higher was a pending decision by Medicare that could be a game changer.
So what
Piper Sandler analyst Matt O'Brien raised his price target on DexCom to $120, up from $110, while maintaining an overweight (buy) rating on the shares. This would represent a 17% gain compared to Thursday's closing price.
The analyst cited a proposed local coverage determination (LCD) that appeared on the Centers for Medicare and Medicaid Services website. If finalized, it would provide coverage for basal insulin patients and others. O'Brien estimates this determination would expand the total addressable market for continuous glucose monitoring (CGM) for diabetes patients in the U.S. by two times, increasing the market by roughly $2 billion in domestic revenue. Furthermore, he posits that DexCom "will reclaim its position as the highest multiple name in diabetes following this announcement."
Stifel analyst Mathew Blackman came to a similar conclusion, boosting his price target on DexCom to $120, up from $112, while maintaining a buy rating. He noted that the LCD "appears to pave the way" for near-term CGM coverage for basal insulin users. He views the news as "an unequivocally positive development" for DexCom and Abbott Laboratories (NYSE: ABT), its rival in the space.
Now what
A local coverage determination is a decision made by a Medicare Administrative Contractor regarding coverage of a specific item or service in its jurisdiction, based on whether it is considered "reasonable and necessary." It's worth noting that this is a proposal and not a final determination, and it will still be some time before a decision is reached.
That said, this is no doubt a positive development for DexCom, which has long been one of the leading providers of CGM technology. Increasing the market by $2 billion would be a big deal, particularly in light of the fact that DexCom's full-year revenue in 2021 was roughly $2.5 billion.
Investors shouldn't buy the stock solely based on this development, but there are plenty of other reasons to believe DexCom is a buy.
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Danny Vena 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. | He views the news as "an unequivocally positive development" for DexCom and Abbott Laboratories (NYSE: ABT), its rival in the space. So what Piper Sandler analyst Matt O'Brien raised his price target on DexCom to $120, up from $110, while maintaining an overweight (buy) rating on the shares. The analyst cited a proposed local coverage determination (LCD) that appeared on the Centers for Medicare and Medicaid Services website. | He views the news as "an unequivocally positive development" for DexCom and Abbott Laboratories (NYSE: ABT), its rival in the space. The analyst cited a proposed local coverage determination (LCD) that appeared on the Centers for Medicare and Medicaid Services website. If finalized, it would provide coverage for basal insulin patients and others. | He views the news as "an unequivocally positive development" for DexCom and Abbott Laboratories (NYSE: ABT), its rival in the space. Investors shouldn't buy the stock solely based on this development, but there are plenty of other reasons to believe DexCom is a buy. 10 stocks we like better than DexCom When our award-winning analyst team has a stock tip, it can pay to listen. | He views the news as "an unequivocally positive development" for DexCom and Abbott Laboratories (NYSE: ABT), its rival in the space. It's worth noting that this is a proposal and not a final determination, and it will still be some time before a decision is reached. That's right -- they think these 10 stocks are even better buys. |
31408.0 | 2022-10-07 00:00:00 UTC | Abbott (ABT) Stock Moves -0.64%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-0.64%3A-what-you-should-know | nan | nan | In the latest trading session, Abbott (ABT) closed at $101.79, marking a -0.64% move from the previous day. This change was narrower than the S&P 500's 2.8% loss on the day. At the same time, the Dow lost 2.11%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 4.24% over the past month. This has lagged the Medical sector's loss of 1.18% and the S&P 500's loss of 4.08% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. This is expected to be October 19, 2022. In that report, analysts expect Abbott to post earnings of $0.89 per share. This would mark a year-over-year decline of 36.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.57 billion, down 12.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.34 billion. These totals would mark changes of -4.22% and -1.7%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Abbott. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.11% higher. 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 20.52 right now. For comparison, its industry has an average Forward P/E of 18.48, which means Abbott is trading at a premium to the group.
We can also see that ABT currently has a PEG ratio of 3.89. 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 2.18 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 $101.79, marking a -0.64% move from the previous day. We can also see that ABT currently has a PEG ratio of 3.89. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $101.79, marking a -0.64% move from the previous day. We can also see that ABT currently has a PEG ratio of 3.89. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $101.79, marking a -0.64% move from the previous day. We can also see that ABT currently has a PEG ratio of 3.89. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $101.79, marking a -0.64% move from the previous day. We can also see that ABT currently has a PEG ratio of 3.89. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. |
31409.0 | 2022-10-05 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-3 | nan | nan | In the latest trading session, Abbott (ABT) closed at $103.38, marking a +0.29% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Heading into today, shares of the maker of infant formula, medical devices and drugs had gained 0.36% over the past month, outpacing the Medical sector's loss of 0.3% and the S&P 500's loss of 3.29% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. This is expected to be October 19, 2022. The company is expected to report EPS of $0.89, down 36.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.57 billion, down 12.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $42.34 billion, which would represent changes of -4.22% and -1.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Abbott. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 20.64. This represents a premium compared to its industry's average Forward P/E of 17.33.
Also, we should mention that ABT has a PEG ratio of 3.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, Abbott (ABT) closed at $103.38, marking a +0.29% move from the previous day. Also, we should mention that ABT has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $103.38, marking a +0.29% move from the previous day. Also, we should mention that ABT has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $103.38, marking a +0.29% move from the previous day. Also, we should mention that ABT has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $103.38, marking a +0.29% move from the previous day. Also, we should mention that ABT has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report |
31410.0 | 2022-10-05 00:00:00 UTC | 3 Dividend Stocks to Buy In October and Hold Forever | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-in-october-and-hold-forever | nan | nan | If you're like most investors, 2022 has been a difficult year that you would rather forget. A war in Europe and the subsequent energy crisis it's causing would be enough to tank global stock markets in any given year. On top of Russia's invasion of Ukraine, markets are also reeling from rapidly rising interest rates intended to quell runaway inflation.
Once you consider all the challenges stock markets face, it's a little surprising that the benchmark S&P 500 index has only lost around 25% of its value this year. During difficult times like these, it makes sense to buy shares of businesses that have what it takes to survive external economic meltdowns.
Image source: Getty Images.
These three stocks are supported by highly reliable underlying businesses that have been making and raising their quarterly dividend payouts for a long time. Here's why putting them in your portfolio now could lead to heaps of passive income even if their share prices don't cooperate.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. The company has faced more than a few global economic challenges during its history, and its diversified healthcare operation has emerged stronger every time.
It's been 60 years since Abbott went more than a year without raising its dividend payout at least once. These days, the company's a leader among cardiovascular device makers. It also has a leading diagnostics business that jumped into action at the beginning of the COVID-19 pandemic.
Abbott shares offer a yield of 1.9% at recent prices. This may not seem very attractive now, but this reliable payout could jump higher in the years ahead. In May, the U.S. Food and Drug Administration cleared the company's 14-day continuous glucose monitor (CGM) for people living with diabetes. The FreeStyle Libre 3 system sends readings to patients' smartphones every minute from a tiny sensor the size of two stacked pennies that sticks to patients' upper arms.
Abbott Laboratories has been able to raise its dividend payout 77% higher over the past five years. The ongoing launch of its new CGM in the U.S. could make the next five years even more exciting.
2. CVS Health
CVS Health (NYSE: CVS) has only raised its dividend payout once over the past five years, but don't let this dissuade you from buying the stock. The company froze its dividend payout in 2018 to help pay for a $69 billion acquisition of Aetna, a leading provider of private and government-sponsored healthcare plans.
Aetna isn't the first acquisition that has transformed CVS Health from a simple retail pharmacy operation into a unique healthcare giant. The company also owns a pharmacy benefits management business that processed a whopping 1.15 billion claims in the first half of 2022.
In September, CVS took another step to stay ahead of the competition. The conglomerate agreed to acquire Signify Health for $8 billion. This is a network of more than 10,000 care providers expected to complete around 2.5 million home visits this year. The acquisition is expected to boost CVS Health's bottom line immediately, partly because the company can pull it off using cash from operations that reached a stunning $9.0 billion in the first half of 2022.
With a leading position in the rapidly evolving market for providing primary care services, I won't be surprised if this healthcare conglomerate triples its dividend payout over the next decade.
3. AbbVie
AbbVie (NYSE: ABBV) is a biopharmaceutical company that has only been making and increasing its dividend since 2013. That's because, before 2013, this was still Abbott Laboratories' biopharmaceutical segment.
AbbVie split to shield Abbott from the imminent collapse of the company's best-selling drug, Humira. This is an anti-inflammation injection first approved to treat arthritis in 2002. Subsequent approvals for psoriasis and related conditions pushed Humira sales past $20 billion annually in 2021.
The launch of biosimilar competition in Europe hammered international Humira sales in 2019. Beginning in 2023, U.S. Humira sales will begin falling in the face of biosimilar competition too. Fear of a post-Humira exclusivity future has pushed the stock low enough that its dividend offers a 4.2% yield at the moment.
AbbVie looks like a buy now because, in years past, it expertly funneled Humira profits into the development of new products that could more than offset impending Humira losses. Rinvoq and Skyrizi are treatments for arthritis and psoriasis, respectively, that both earned approvals for the first time in 2019. Skyrizi and Rinvoq are already on pace to generate a combined $7 billion in revenue annually, and AbbVie expects more than $15 billion from this pair of drugs in 2025.
AbbVie has raised its payout a stunning 120% over the past five years. With new growth drivers to offset Humira's impending losses, the dividend could continue rising rapidly for many 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. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. On top of Russia's invasion of Ukraine, markets are also reeling from rapidly rising interest rates intended to quell runaway inflation. The acquisition is expected to boost CVS Health's bottom line immediately, partly because the company can pull it off using cash from operations that reached a stunning $9.0 billion in the first half of 2022. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. CVS Health CVS Health (NYSE: CVS) has only raised its dividend payout once over the past five years, but don't let this dissuade you from buying the stock. With a leading position in the rapidly evolving market for providing primary care services, I won't be surprised if this healthcare conglomerate triples its dividend payout over the next decade. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. It's been 60 years since Abbott went more than a year without raising its dividend payout at least once. Abbott Laboratories has been able to raise its dividend payout 77% higher over the past five years. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has been advancing various healthcare businesses for over 130 years. It's been 60 years since Abbott went more than a year without raising its dividend payout at least once. Abbott shares offer a yield of 1.9% at recent prices. |
31411.0 | 2022-10-04 00:00:00 UTC | Noteworthy ETF Inflows: ITOT, DIS, MCD, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-itot-dis-mcd-abt | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $297.6 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 484,650,000 to 488,300,000). Among the largest underlying components of ITOT, in trading today Walt Disney Co. (Symbol: DIS) is up about 2.9%, McDonald's Corp (Symbol: MCD) is up about 2%, and Abbott Laboratories (Symbol: ABT) is higher by about 2.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $79.43 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today Walt Disney Co. (Symbol: DIS) is up about 2.9%, McDonald's Corp (Symbol: MCD) is up about 2%, and Abbott Laboratories (Symbol: ABT) is higher by about 2.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $79.43 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.76. 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 ITOT, in trading today Walt Disney Co. (Symbol: DIS) is up about 2.9%, McDonald's Corp (Symbol: MCD) is up about 2%, and Abbott Laboratories (Symbol: ABT) is higher by about 2.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $79.43 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.76. 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 ITOT, in trading today Walt Disney Co. (Symbol: DIS) is up about 2.9%, McDonald's Corp (Symbol: MCD) is up about 2%, and Abbott Laboratories (Symbol: ABT) is higher by about 2.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $297.6 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 484,650,000 to 488,300,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $79.43 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.76. | Among the largest underlying components of ITOT, in trading today Walt Disney Co. (Symbol: DIS) is up about 2.9%, McDonald's Corp (Symbol: MCD) is up about 2%, and Abbott Laboratories (Symbol: ABT) is higher by about 2.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $297.6 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 484,650,000 to 488,300,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $79.43 per share, with $108.15 as the 52 week high point — that compares with a last trade of $83.76. |
31412.0 | 2022-10-03 00:00:00 UTC | Best Stocks To Buy During A Recession? 3 Defensive Stocks To Know | ABT | https://www.nasdaq.com/articles/best-stocks-to-buy-during-a-recession-3-defensive-stocks-to-know | nan | nan | Defensive stocks are shares of companies that are considered to be relatively resilient to economic downturns. During times of stock market turbulence, defensive stocks tend to perform well, as investors seek out companies with a history of stability and consistent dividend payments. Specifically, defensive stocks typically belong to industries that are considered essential, such as healthcare, consumer staples, or industrial.
While defensive stocks may not offer the same upside potential as more aggressive investments, they can provide a measure of downside protection during market corrections. For these reasons, defensive stocks are often favored by risk-averse investors. However, it should be noted that even the most defensive stocks can lose value during prolonged periods of market volatility. With that being said, here are three defensive stocks for your list of stocks to watch during a recession in the stock market today.
Defensive Stocks To Watch In October 2022
FedEx Corporation (NYSE: FDX)
General Motors Company (NYSE: GM)
AbbVie Inc. (NYSE: ABBV)
1. FedEx (FDX Stock)
First, FedEx Corporation (FDX) is an American multinational delivery services company. Corporation provides a variety of services, including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Office. FedEx Corporation also offers a number of other products and services, including logistics, e-commerce, and transportation.
FDX Recent Stock News
Just last month, FedEx Corp announced a miss for its 1st quarter 2023 financial results. Getting straight to it, FedEx (FDX) reported first-quarter 2023 earnings of $3.44 per share with revenue of $23.2 billion. For context, analysts’ consensus earnings estimates were $3.43 per share on revenue of $23.6 billion for Q1 2023. Additionally, the company was able to grow revenue by 5.4% during the same period, a year prior.
Next, FedEx provided guidance for its second quarter of 2023 earnings. Specifically, the company said it maintains its Q2 2023 estimates, which are earnings of $2.75 per share, and revenue between $23.50 billion to $24.00 billion.
Raj Subramaniam, FedEx Corp. President & CEO commented this about the quarter’s performance, “We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand. As our team continues to work aggressively to address near-term headwinds, we’re meaningfully strengthening our business and customer experience, including delivering an outstanding peak.”
FDX Stock Chart
Since that report, shares of FedEx stock have dropped over 27%. Meanwhile, on Friday, FDX closed the trading day at $148.47 per share. All in all, do you think FDX stock is a good buy at its current price levels?
Source: TD Ameritrade TOS
[Read More] Which Stocks To Buy Now? 3 REIT Stocks To Watch
2. General Motors (GM Stock)
Next, General Motors Company (GM) is one of the world’s largest automakers, with operations in more than 100 countries. The company’s products include cars, trucks, and SUVs under the Chevrolet, Cadillac, GMC, and Buick brands. In recent years, General Motors has been working to improve its environmental footprint and reduce its reliance on fossil fuels. The company has set a goal of having all of its vehicles be emissions-free by 2035. To achieve this goal, General Motors is investing heavily in electric vehicles and autonomous driving technology.
GM Recent Stock News
In mid-August, General Motors announced its Board of Directors has authorized the reinstatement of a quarterly cash dividend at $0.09 per share on common stock. What’s more, the company also said it will restart its share repurchases. Specifically, the Board of Directors increased the capacity of GM’s current share repurchase program to $5 billion, from the previously announced $3.3 billion.
Mary Barra, GM Chair and CEO stated, “GM is investing more than $35 billion through 2025 to advance our growth plan, including rapidly expanding our electric vehicle portfolio and creating a domestic battery manufacturing infrastructure. Progress on these key strategic initiatives has improved our visibility and strengthened confidence in our capacity to fund growth while also returning capital to shareholders.“
GM Stock Chart
Going into Monday morning’s trading session, GM stock is set to open at $32.09 a share. Though, shares of General Motors stock are still down 52.25% from their 52-week highs. Given this, is now an ideal time to add General Motors stock to your list of stocks to buy during a recession?
Source: TD Ameritrade TOS
[Read More] Best Semiconductor Stocks To Invest In 2022? 4 To Watch This Week
3. AbbVie (ABBV Stock)
Last up, AbbVie Inc. (ABBV) is a research-based biopharmaceutical company. In short, the company founded in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). AbbVie focuses on developing and commercializing therapies for chronic conditions such as cancer, autoimmune diseases, and virology. Moreover, AbbVie’s research and development efforts are primarily focused on addressing unmet medical needs in these therapeutic areas.
ABBV Recent Stock News
Last month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. In the announcement, the company said the cash dividend is payable on Tuesday, November 15, 2022, to stockholders of record at the close of business on October 14, 2022. This results in an annual dividend yield of 4.20%.
In fact, since AbbVie was formed in 2013, it has raised its dividend by more than 250%. Today, AbbVie is a member of the S&P Dividend Aristocrats Index. For the uninitiated, the S&P Dividend Aristocrats Index tracks companies that have increased their annual dividend for at least 25 straight years.
ABBV Stock Chart
Aside from that, ABBV stock has outperformed the broader markets so far in 2022. Shares of ABBV stock are looking to open this new trading week at $134.21 a share. With AbbVie’s strong product portfolio, and financial history do you think ABBV stock is a good defensive stock to buy during a recession?
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. | In short, the company founded in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Raj Subramaniam, FedEx Corp. President & CEO commented this about the quarter’s performance, “We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand. ABBV Recent Stock News Last month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. | In short, the company founded in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Defensive Stocks To Watch In October 2022 FedEx Corporation (NYSE: FDX) General Motors Company (NYSE: GM) AbbVie Inc. (NYSE: ABBV) 1. General Motors (GM Stock) Next, General Motors Company (GM) is one of the world’s largest automakers, with operations in more than 100 countries. | In short, the company founded in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). With that being said, here are three defensive stocks for your list of stocks to watch during a recession in the stock market today. Defensive Stocks To Watch In October 2022 FedEx Corporation (NYSE: FDX) General Motors Company (NYSE: GM) AbbVie Inc. (NYSE: ABBV) 1. | In short, the company founded in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). With that being said, here are three defensive stocks for your list of stocks to watch during a recession in the stock market today. Defensive Stocks To Watch In October 2022 FedEx Corporation (NYSE: FDX) General Motors Company (NYSE: GM) AbbVie Inc. (NYSE: ABBV) 1. |
31413.0 | 2022-10-02 00:00:00 UTC | Bubs Australia seeks permanent market access from U.S. FDA | ABT | https://www.nasdaq.com/articles/bubs-australia-seeks-permanent-market-access-from-u.s.-fda | nan | nan | Adds background
Oct 3 (Reuters) - Baby formula maker Bubs Australia Ltd BUB.AX said on Monday it is seeking permanent access to the U.S. market after the Food and Drug Administration (FDA) spelled out how companies that have been filling a temporary shortage can become long-term suppliers.
Bubs said it had lodged a letter of intent with the U.S. FDA for permanent market access to October 2025 and beyond, adding that the FDA will issue a letter of acknowledgement in response.
Global infant formula manufacturers have been importing goods into the United States after the country's health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products in February.
The U.S. health regulator on Friday published guidance to help provide a pathway for infant formula manufacturers operating under enforcement discretion in the United States to remain in the market.
The FDA said manufacturers currently marketing their products in the country under enforcement discretion should send a letter to the FDA by Dec. 5, 2022, outlining their intent to pursue completion of all regulatory requirements.
"Some manufacturers may have most of the information needed to meet all U.S. requirements, and therefore, could achieve compliance fairly quickly, while others may need the full time frame being provided," the U.S. health regulator said.
(Reporting by Riya Sharma in Bengaluru; Editing by Sandra Maler and Christopher Cushing)
((Riya.Sharma@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. | Global infant formula manufacturers have been importing goods into the United States after the country's health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products in February. Adds background Oct 3 (Reuters) - Baby formula maker Bubs Australia Ltd BUB.AX said on Monday it is seeking permanent access to the U.S. market after the Food and Drug Administration (FDA) spelled out how companies that have been filling a temporary shortage can become long-term suppliers. The U.S. health regulator on Friday published guidance to help provide a pathway for infant formula manufacturers operating under enforcement discretion in the United States to remain in the market. | Global infant formula manufacturers have been importing goods into the United States after the country's health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products in February. The U.S. health regulator on Friday published guidance to help provide a pathway for infant formula manufacturers operating under enforcement discretion in the United States to remain in the market. The FDA said manufacturers currently marketing their products in the country under enforcement discretion should send a letter to the FDA by Dec. 5, 2022, outlining their intent to pursue completion of all regulatory requirements. | Global infant formula manufacturers have been importing goods into the United States after the country's health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products in February. The U.S. health regulator on Friday published guidance to help provide a pathway for infant formula manufacturers operating under enforcement discretion in the United States to remain in the market. The FDA said manufacturers currently marketing their products in the country under enforcement discretion should send a letter to the FDA by Dec. 5, 2022, outlining their intent to pursue completion of all regulatory requirements. | Global infant formula manufacturers have been importing goods into the United States after the country's health regulator relaxed its import policy to address a nationwide shortage partly triggered by Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products in February. Bubs said it had lodged a letter of intent with the U.S. FDA for permanent market access to October 2025 and beyond, adding that the FDA will issue a letter of acknowledgement in response. The U.S. health regulator on Friday published guidance to help provide a pathway for infant formula manufacturers operating under enforcement discretion in the United States to remain in the market. |
31414.0 | 2022-10-01 00:00:00 UTC | Here's Why This Dividend King Is a Buy | ABT | https://www.nasdaq.com/articles/heres-why-this-dividend-king-is-a-buy | nan | nan | Mounting concerns over the state of the global economy have pushed stocks to their lowest levels of the year. Accordingly, the S&P 500 index has plunged 23% so far this year. But one sector of the market is holding its own in this downward cycle.
Many pharma stocks have squeezed out marginal gains in their share prices in 2022. Among the most notable stocks to do so, AbbVie (NYSE: ABBV) is actually trading up 6% on the year. And this strong performance looks set to continue for a few reasons.
AbbVie has a diverse and powerful portfolio of drugs
AbbVie is best known as the maker of the top-selling drug in the world, Humira. This immunology medicine will likely face competition in 2023 in the U.S. from biosimilars, so the company has been hard at work building its next generation of blockbuster drugs. Besides Humira, AbbVie's portfolio includes 11 other drugs likely to generate at least $1 billion each in net revenue for 2022. This stacked lineup of products explains how the drugmaker's net revenue increased 4.5% year over year to $14.6 billion in the second quarter.
The two drugs most instrumental to its revenue growth come from its immunology segment. Skyrizi recorded $1.3 billion in net revenue during the quarter, a staggering 85.9% growth rate year over year. The increase is attributed to approval in January from the U.S. Food and Drug Administration (FDA) for the drug to treat patients with psoriatic arthritis. Annualized, this new use case could provide a $1.1 billion boost to AbbVie's annual net revenue.
Arthritis medication Rinvoq's net revenue in Q2 soared 56.3% year over year to $592 million. This was the result of the FDA's green light in March for the medicine to treat patients with ulcerative colitis. This new use could add $400 million in annual net revenue for the pharma company.
AbbVie reported $3.37 in non-GAAP (generally accepted accounting principles) diluted earnings per share (EPS) in the second quarter, which was up 11.2% year over year. As a result of its higher net revenue base and tight cost management, the company's non-GAAP net margin increased 460 basis points over the year-ago period to 47.6% during the quarter. This is how AbbVie's adjusted diluted EPS growth was significantly higher than its net revenue growth for the quarter.
Thanks to the company's pipeline of nearly five dozen molecules currently in clinical development, AbbVie has plenty of potential new drugs to help it keep growing over the medium term.
Image source: Getty Images.
AbbVie's market-beating dividend is safe
AbbVie's strong performance allows the company to generate enough free cash flow to support a generous dividend which yields 3.9%, more than twice the S&P 500's average yield of 1.8%. The dividend is sustainable and has room to run higher.
AbbVie's dividend payout ratio will be about 41% in 2022 if earnings projections hold true. That should allow the company enough funds to make further acquisitions and shore up its drug portfolio and pipeline as well as repay debt to strengthen its balance sheet. It should also give AbbVie some breathing room to maintain its dividend in 2023 when profits are likely to dip a bit over the aforementioned rise in U.S. Humira competition.
AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). But because of how the spin-off was handled (with AbbVie maintaining a dividend), AbbVie was able to maintain its streak of consecutive annual dividend increases. That allowed it to be recognized this year as a Dividend King (along with Abbott Labs). Both companies effectively reached 50 consecutive years of payout raises (the main requirement to become a Dividend King) this year. That growth consistency points to the stability and strength of AbbVie's dividend.
AbbVie is still a good value
AbbVie is going to have a hard time replicating the success of Humira with just a single new drug. But the company expects more than $15 billion in combined net revenue from Skyrizi and Rinvoq by 2025, so there is reason to AbbVie can keep its growth going. And with the trailing-12-month (TTM) dividend yield of 3.9% hovering near the 10-year median TTM dividend yield of 3.85%, the market thinks the stock is trading at a fair price. This makes AbbVie a solid buy for income investors and value 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. | AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). Thanks to the company's pipeline of nearly five dozen molecules currently in clinical development, AbbVie has plenty of potential new drugs to help it keep growing over the medium term. That should allow the company enough funds to make further acquisitions and shore up its drug portfolio and pipeline as well as repay debt to strengthen its balance sheet. | AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). As a result of its higher net revenue base and tight cost management, the company's non-GAAP net margin increased 460 basis points over the year-ago period to 47.6% during the quarter. This is how AbbVie's adjusted diluted EPS growth was significantly higher than its net revenue growth for the quarter. | AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). AbbVie has a diverse and powerful portfolio of drugs AbbVie is best known as the maker of the top-selling drug in the world, Humira. AbbVie's market-beating dividend is safe AbbVie's strong performance allows the company to generate enough free cash flow to support a generous dividend which yields 3.9%, more than twice the S&P 500's average yield of 1.8%. | AbbVie has only been in existence as an independent company since 2013 (it was spun off from Abbott Laboratories (NYSE: ABT)). Besides Humira, AbbVie's portfolio includes 11 other drugs likely to generate at least $1 billion each in net revenue for 2022. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
31415.0 | 2022-09-30 00:00:00 UTC | This CGM Device Maker Is Likely To Outperform Abbott Stock | ABT | https://www.nasdaq.com/articles/this-cgm-device-maker-is-likely-to-outperform-abbott-stock | nan | nan | We believe DexCom stock (NASDAQ: DXCM) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. Although Abbott is trading at a comparatively lower valuation of 3.8x trailing revenues vs. 12.3x for DexCom, this gap in the valuation is largely justified given DexCom’s superior revenue growth and lower financial risk, as discussed below.
If we look at stock returns, ABT, with a 30% fall this year, has fared better than a 39% decline for DXCM stock, but both have underperformed the broader S&P 500 index, down 23%. There is more to the comparison, and in the sections below, we discuss why we believe DXCM 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 Abbott vs. DexCom: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. DexCom’s Revenue Growth Is Far Better
DexCom’s revenue growth of 23.2% over the last twelve months is higher than 13.2% for Abbott.
Even if we look at a longer time frame, DexCom’s sales growth has been better. It rose at an average annual growth rate of 33.6% to $2.4 billion in 2021, compared to $1.0 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 decline, the demand for testing is also expected to fall, weighing on Abbott’s diagnostics business in 2023.
That said, the company’s medical devices and established pharmaceutical sales will likely see steady growth over the coming years.
DexCom is one of the few players, along with Abbott, which has secured regulatory approvals for its wearable continuous glucose monitoring (CGM) device. There is a high demand for CGM devices that do not require a finger prick, and data can be self-monitored easily. Given the limited competition and a vast pool of diabetic patients (over 34 million in the U.S. alone), the company will likely see strong revenue growth over the coming years.
DexCom’s future sales growth will likely be bolstered by the launch of its much-anticipated G7 CGM system in the U.S.
The aging population in the U.S. and its rising awareness about diabetes products have aided the demand for CGM products.
Our Abbott Revenue and DexCom Revenue dashboards provide more insight into the companies’ sales.
Looking forward, DexCom’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 20.6% for DexCom, compared to a 4.1% 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 23.6% over the last twelve-month period is better than 11.5% for DexCom.
This compares with 16.1% and 13.4% figures seen in 2019, before the pandemic, respectively.
Abbott’s free cash flow margin of 22.5% aligns with 22.3% for DexCom.
Our Abbott Operating Income and DexCom Operating Income dashboards have more details.
Looking at financial risk, DexCom fares better. Its 6.3% debt as a percentage of equity is lower than 9.7% for Abbott, while its 14.1% cash as a percentage of assets is higher than the 12.5% for the latter, implying that DexCom has a better debt position and also has more cash cushion.
3. The Net of It All
We see that DexCom has demonstrated better revenue growth and offers lower financial risk with a better debt position and more cash cushion. On the other hand, Abbott is more profitable and 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 DexCom is currently the better choice of the two, despite it being the more expensive of the two.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for Abbott over this period and a 101% expected return for DexCom stock, implying that investors will likely be better off buying DXCM over ABT, based on Trefis Machine Learning analysis – Abbott vs. DexCom – which also provides more details on how we arrive at these numbers.
While DXCM 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 30% 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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return -5% -30% 155%
DXCM Return -1% -39% 444%
S&P 500 Return -8% -23% 63%
Trefis Multi-Strategy Portfolio -12% -26% 194%
[1] Month-to-date and year-to-date as of 9/28/2022
[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 DexCom stock (NASDAQ: DXCM) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. If we look at stock returns, ABT, with a 30% fall this year, has fared better than a 39% decline for DXCM stock, but both have underperformed the broader S&P 500 index, down 23%. There is more to the comparison, and in the sections below, we discuss why we believe DXCM 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 21% for Abbott over this period and a 101% expected return for DexCom stock, implying that investors will likely be better off buying DXCM over ABT, based on Trefis Machine Learning analysis – Abbott vs. DexCom – which also provides more details on how we arrive at these numbers. Total [2] ABT Return -5% -30% 155% DXCM Return -1% -39% 444% S&P 500 Return -8% -23% 63% Trefis Multi-Strategy Portfolio -12% -26% 194% [1] Month-to-date and year-to-date as of 9/28/2022 [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 DexCom stock (NASDAQ: DXCM) 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 21% for Abbott over this period and a 101% expected return for DexCom stock, implying that investors will likely be better off buying DXCM over ABT, based on Trefis Machine Learning analysis – Abbott vs. DexCom – which also provides more details on how we arrive at these numbers. We believe DexCom stock (NASDAQ: DXCM) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. If we look at stock returns, ABT, with a 30% fall this year, has fared better than a 39% decline for DXCM stock, but both have underperformed the broader S&P 500 index, down 23%. | The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 21% for Abbott over this period and a 101% expected return for DexCom stock, implying that investors will likely be better off buying DXCM over ABT, based on Trefis Machine Learning analysis – Abbott vs. DexCom – which also provides more details on how we arrive at these numbers. We believe DexCom stock (NASDAQ: DXCM) is currently a better pick than Abbott stock (NYSE: ABT), given its better prospects. If we look at stock returns, ABT, with a 30% fall this year, has fared better than a 39% decline for DXCM stock, but both have underperformed the broader S&P 500 index, down 23%. |
31416.0 | 2022-09-29 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABT | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-47 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
NU Skin Enterprises, Inc. (Symbol: NUS) $35.36 $47.00 32.92%
Abbott Laboratories (Symbol: ABT) $98.72 $127.15 28.80%
Ecolab Inc (Symbol: ECL) $148.73 $188.56 26.78%
Polaris Inc (Symbol: PII) $104.16 $125.56 20.54%
NextEra Energy Inc (Symbol: NEE) $82.37 $97.89 18.84%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
NU Skin Enterprises, Inc. (Symbol: NUS) 4.36% 32.92% 37.28%
Abbott Laboratories (Symbol: ABT) 1.90% 28.80% 30.7%
Ecolab Inc (Symbol: ECL) 1.37% 26.78% 28.15%
Polaris Inc (Symbol: PII) 2.46% 20.54% 23%
NextEra Energy Inc (Symbol: NEE) 2.06% 18.84% 20.9%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32%
Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77%
Ecolab Inc (Symbol: ECL) $1.92 $2.04 6.25%
Polaris Inc (Symbol: PII) $2.51 $2.55 1.59%
NextEra Energy Inc (Symbol: NEE) $1.505 $1.66 10.30%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NU Skin Enterprises, Inc. (Symbol: NUS) $35.36 $47.00 32.92% Abbott Laboratories (Symbol: ABT) $98.72 $127.15 28.80% Ecolab Inc (Symbol: ECL) $148.73 $188.56 26.78% Polaris Inc (Symbol: PII) $104.16 $125.56 20.54% NextEra Energy Inc (Symbol: NEE) $82.37 $97.89 18.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 4.36% 32.92% 37.28% Abbott Laboratories (Symbol: ABT) 1.90% 28.80% 30.7% Ecolab Inc (Symbol: ECL) 1.37% 26.78% 28.15% Polaris Inc (Symbol: PII) 2.46% 20.54% 23% NextEra Energy Inc (Symbol: NEE) 2.06% 18.84% 20.9% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.92 $2.04 6.25% Polaris Inc (Symbol: PII) $2.51 $2.55 1.59% NextEra Energy Inc (Symbol: NEE) $1.505 $1.66 10.30% These five stocks are part of our full Dividend Aristocrats List. | NU Skin Enterprises, Inc. (Symbol: NUS) $35.36 $47.00 32.92% Abbott Laboratories (Symbol: ABT) $98.72 $127.15 28.80% Ecolab Inc (Symbol: ECL) $148.73 $188.56 26.78% Polaris Inc (Symbol: PII) $104.16 $125.56 20.54% NextEra Energy Inc (Symbol: NEE) $82.37 $97.89 18.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 4.36% 32.92% 37.28% Abbott Laboratories (Symbol: ABT) 1.90% 28.80% 30.7% Ecolab Inc (Symbol: ECL) 1.37% 26.78% 28.15% Polaris Inc (Symbol: PII) 2.46% 20.54% 23% NextEra Energy Inc (Symbol: NEE) 2.06% 18.84% 20.9% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.92 $2.04 6.25% Polaris Inc (Symbol: PII) $2.51 $2.55 1.59% NextEra Energy Inc (Symbol: NEE) $1.505 $1.66 10.30% These five stocks are part of our full Dividend Aristocrats List. | NU Skin Enterprises, Inc. (Symbol: NUS) $35.36 $47.00 32.92% Abbott Laboratories (Symbol: ABT) $98.72 $127.15 28.80% Ecolab Inc (Symbol: ECL) $148.73 $188.56 26.78% Polaris Inc (Symbol: PII) $104.16 $125.56 20.54% NextEra Energy Inc (Symbol: NEE) $82.37 $97.89 18.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 4.36% 32.92% 37.28% Abbott Laboratories (Symbol: ABT) 1.90% 28.80% 30.7% Ecolab Inc (Symbol: ECL) 1.37% 26.78% 28.15% Polaris Inc (Symbol: PII) 2.46% 20.54% 23% NextEra Energy Inc (Symbol: NEE) 2.06% 18.84% 20.9% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.92 $2.04 6.25% Polaris Inc (Symbol: PII) $2.51 $2.55 1.59% NextEra Energy Inc (Symbol: NEE) $1.505 $1.66 10.30% These five stocks are part of our full Dividend Aristocrats List. | NU Skin Enterprises, Inc. (Symbol: NUS) $35.36 $47.00 32.92% Abbott Laboratories (Symbol: ABT) $98.72 $127.15 28.80% Ecolab Inc (Symbol: ECL) $148.73 $188.56 26.78% Polaris Inc (Symbol: PII) $104.16 $125.56 20.54% NextEra Energy Inc (Symbol: NEE) $82.37 $97.89 18.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 4.36% 32.92% 37.28% Abbott Laboratories (Symbol: ABT) 1.90% 28.80% 30.7% Ecolab Inc (Symbol: ECL) 1.37% 26.78% 28.15% Polaris Inc (Symbol: PII) 2.46% 20.54% 23% NextEra Energy Inc (Symbol: NEE) 2.06% 18.84% 20.9% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.92 $2.04 6.25% Polaris Inc (Symbol: PII) $2.51 $2.55 1.59% NextEra Energy Inc (Symbol: NEE) $1.505 $1.66 10.30% These five stocks are part of our full Dividend Aristocrats List. |
31417.0 | 2022-09-28 00:00:00 UTC | Medtronic Stock Is A Better Pick Over This Pharmaceuticals Bellwether | ABT | https://www.nasdaq.com/articles/medtronic-stock-is-a-better-pick-over-this-pharmaceuticals-bellwether | nan | nan | We believe Medtronic stock (NYSE: MDT) is currently a better pick than Johnson & Johnson stock (NYSE: JNJ), given its better prospects. Although Medtronic is trading at a comparatively lower valuation of 3.5x trailing revenues vs. 4.5x for J&J, this gap in the valuation is largely justified given J&J’s superior profitability and lower financial risk, as discussed below.
If we look at stock returns, JNJ, with a 3% fall this year, has fared better than a 20% decline for MDT stock and -23% returns for the broader S&P 500 index. JNJ’s outperformance can partly be attributed to its recently announced $5 billion share buyback plan, reaffirming its full-year earnings outlook of $10.70 at the mid-point of its range. There is more to the comparison, and in the sections below, we discuss why we believe MDT stock will offer better returns than JNJ 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 Medtronic vs. Johnson & Johnson: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. J&J’s Revenue Growth Is Better
J&J’s revenue growth of 7.2% over the last twelve months is much better than -1.7% for Medtronic.
Even if we look at a longer time frame, J&J’s sales growth has been better. It rose at an average annual growth rate of 4.9% to $93.8 billion in 2021, compared to $81.6 billion in 2018, while Medtronic saw its revenue rise at an average annual rate of just 1.3% to $31.7 billion in fiscal 2022 (Medtronic’s fiscal ends in April), compared to $30.0 billion in 2018.
While J&J’s medical devices business faced headwinds in 2020 due to the pandemic’s impact, it rebounded in 2021.
The pharmaceuticals segment saw a 14% rise in 2021 sales, and the medical devices segment sales were up 18%. The strong performance from both segments is expected to continue going forward.
The company’s pharmaceuticals business is seeing strong growth led by market share gains for its cancer drugs, Imbruvica and Darzalex, and immunology drugs, Stelara and Tremfya.
Medtronic’s sales were also hurt during the pandemic due to the postponement of elective surgeries. The rise of new Covid-19 variants, including Delta and Omicron, impacted demand recovery.
There are high hopes for Medtronic’s most advanced insulin pump system – MiniMed 780G – to drive its diabetes sales in the future. The product is yet to be approved in the U.S. The underperformance of MDT stock stated earlier in this article can be linked to the concerns over the delay in the MiniMed 780G approval. Late last year, the U.S. FDA issued a warning to Medtronic’s diabetes business facility in California, citing inadequacies in quality system requirements.
Our Medtronic Revenue and Johnson & Johnson Revenue dashboards provide more insight into the companies’ sales.
Looking forward, J&J revenue is expected to grow faster than Medtronic’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 1.6% for Medtronic, compared to a 3.6% CAGR for J&J, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. J&J Is More Profitable, And It Comes With Lower Risk
J&J’s operating margin of 23.9% over the last twelve-month period is slightly better than 19.9% for Medtronic.
This compares with 24.5% and 25.2% figures seen in 2019, before the pandemic, respectively.
J&J’s free cash flow margin of 24.7% is also better than 23.0% for Medtronic.
Our Medtronic Operating Income and Johnson & Johnson Operating Income dashboards have more details.
Looking at financial risk, J&J fares better. Its 15.5% debt as a percentage of equity is lower than 21.2% for Medtronic, while its 13.3% cash as a percentage of assets is higher than 9.9% for the latter, implying that J&J has a better debt position and more cash cushion.
3. The Net of It All
We see that J&J has demonstrated better revenue growth, is more profitable, has a better debt position, and has more cash cushion. On the other hand, Medtronic is available at a comparatively lower valuation.
Going by historical performance, J&J appears to be a clear winner among the two. But will it continue to outperform in the coming years? We don’t think so.
Looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Medtronic is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Medtronic and J&J over the next three years and points to an expected return of 14% for Medtronic over this period vs. an 8% expected return for J&J, based on Trefis Machine Learning analysis – Medtronic vs. Johnson & Johnson – which also provides more details on how we arrive at these numbers.
While MDT stock looks like a better pick over JNJ stock, it is helpful to see how Medtronic’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 UnitedHealth Group vs. Pool Corporation.
Given the higher inflation and the Fed raising interest rates, among other factors, MDT stock has fallen 20% this year. Can it drop more from here? See how low Medtronic 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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return -6% -20% 16%
JNJ Return 3% -3% 45%
S&P 500 Return -7% -23% 65%
Trefis Multi-Strategy Portfolio -11% -25% 198%
[1] Month-to-date and year-to-date as of 9/26/2022
[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. | JNJ’s outperformance can partly be attributed to its recently announced $5 billion share buyback plan, reaffirming its full-year earnings outlook of $10.70 at the mid-point of its range. Late last year, the U.S. FDA issued a warning to Medtronic’s diabetes business facility in California, citing inadequacies in quality system requirements. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | It rose at an average annual growth rate of 4.9% to $93.8 billion in 2021, compared to $81.6 billion in 2018, while Medtronic saw its revenue rise at an average annual rate of just 1.3% to $31.7 billion in fiscal 2022 (Medtronic’s fiscal ends in April), compared to $30.0 billion in 2018. The table below summarizes our revenue and return expectations for Medtronic and J&J over the next three years and points to an expected return of 14% for Medtronic over this period vs. an 8% expected return for J&J, based on Trefis Machine Learning analysis – Medtronic vs. Johnson & Johnson – which also provides more details on how we arrive at these numbers. Total [2] MDT Return -6% -20% 16% JNJ Return 3% -3% 45% S&P 500 Return -7% -23% 65% Trefis Multi-Strategy Portfolio -11% -25% 198% [1] Month-to-date and year-to-date as of 9/26/2022 [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 compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Medtronic vs. Johnson & Johnson: Which Stock Is A Better Bet? It rose at an average annual growth rate of 4.9% to $93.8 billion in 2021, compared to $81.6 billion in 2018, while Medtronic saw its revenue rise at an average annual rate of just 1.3% to $31.7 billion in fiscal 2022 (Medtronic’s fiscal ends in April), compared to $30.0 billion in 2018. The table below summarizes our revenue and return expectations for Medtronic and J&J over the next three years and points to an expected return of 14% for Medtronic over this period vs. an 8% expected return for J&J, based on Trefis Machine Learning analysis – Medtronic vs. Johnson & Johnson – which also provides more details on how we arrive at these numbers. | There is more to the comparison, and in the sections below, we discuss why we believe MDT stock will offer better returns than JNJ 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 Medtronic vs. Johnson & Johnson: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for Medtronic and J&J over the next three years and points to an expected return of 14% for Medtronic over this period vs. an 8% expected return for J&J, based on Trefis Machine Learning analysis – Medtronic vs. Johnson & Johnson – which also provides more details on how we arrive at these numbers. |
31418.0 | 2022-09-28 00:00:00 UTC | Want to Get Richer? 3 Top Stocks to Buy Now and Hold Forever | ABT | https://www.nasdaq.com/articles/want-to-get-richer-3-top-stocks-to-buy-now-and-hold-forever-2 | nan | nan | There isn't just one recipe to build wealth over time. There are many ways to get there. But a particularly good one is identifying solid companies set to bring in revenue and profit well into the future. And you can find some excellent candidates in the world of healthcare.
Let's talk about two leaders in their markets and a well-diversified healthcare company with a track record of success. They each have what it takes to keep winning -- and this should score wins for your portfolio too.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) has been generating returns for investors for quite a while. Over the past 10 years, it's far surpassed the performance of the S&P 500 Index, for example.
VRTX data by YCharts
Vertex is theglobal marketleader in the treatment of cystic fibrosis (CF). The company sells four CF drugs. And the latest -- Trikafta -- brought in more than $5.6 billion in revenue last year.
This product has plenty of growth ahead as it continues to win approvals in new age groups and reimbursements in various countries. Vertex may ensure lasting leadership in this market: The company is studying a candidate in phase 3 trials that may be even better than Trikafta.
Shares of Vertex have defied the bear market this year for one big reason. Vertex plans to submit its blood disorder candidate for regulatory approval in the U.K. and Europe this year. And Vertex aims to complete its submission in the U.S. in the first quarter of next year. This is a one-time curative candidate -- and in disorders with limited treatment options. So, this could be big for Vertex.
At the same time, the company is also working on promising candidates for much-needed therapy areas, such as pain and type 1 diabetes. Vertex generates billions of dollars in revenue today. And these potential products could result in blockbuster revenue down the road too.
2. Abbott Laboratories
You'll want to pick up Abbott Laboratories (NYSE: ABT) for two big reasons: Its diversified product profile and its dividend payments. Let's talk about products first.
Abbott's business includes four units: Medical devices, diagnostics, nutrition, and established pharmaceuticals. Prior to the pandemic, medical devices contributed the most to Abbott's revenue.
And here, the company's diabetes care segment -- with continuous glucose monitoring system FreeStyle Libre -- continues to lead growth. For example, diabetes care revenue climbed more than 19% in the second quarter for the best performance among seven specialty areas.
Since the pandemic's early days, diagnostics has also become a big revenue driver. That's thanks to Abbott's coronavirus tests for at-home and laboratory use. The company reported more than $2 billion in coronavirus testing sales in the quarter.
But even if coronavirus testing demand wanes, I'm not worried about Abbott's growth. That's thanks to its long-term strength in medical devices and its diversification.
Add to that Abbott's status as a Dividend King, and you've got a pretty good package. Dividend Kings have raised their dividends annually for at least the past 50 years. That shows dividends are important to them. So it's reason to believe they may continue on this path. That's good news for you because it offers you passive income over time.
3. Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) is the leader in its industry by far. The company holds nearly 80% of the global robotic surgery market.
Here's even better news: It's not likely a competitor will knock it down a notch any time soon. Surgical robots are million-dollar products. That's quite an investment. And that means hospitals that have already installed one of Intuitive's flagship da Vinci robots probably will stick with it. The fact that most doctors train on the da Vinci also weighs in Intuitive's favor.
Intuitive doesn't generate revenue only through da Vinci installs. In fact, it makes a greater share of revenue from sales of instruments and accessories hospitals must replace between surgeries. And Intuitive sells servicing contracts for the robots too. So, each device installed results in recurrent revenue.
Intuitive has a long track record of revenue and profit. But Intuitive saw revenue slip during certain stages of the pandemic. That's as hospitals postponed surgeries. This may continue at times when coronavirus hospitalizations rise. But it's a temporary situation. Patients will eventually need these da Vinci procedures. And Intuitive's revenue and profit should continue to climb over time.
Considering Intuitive's market position today -- and its staying power -- you won't want to let go of Intuitive shares any time soon.
Find out why Vertex Pharmaceuticals is one of the 10 best stocks to buy 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 You'll want to pick up Abbott Laboratories (NYSE: ABT) for two big reasons: Its diversified product profile and its dividend payments. This product has plenty of growth ahead as it continues to win approvals in new age groups and reimbursements in various countries. At the same time, the company is also working on promising candidates for much-needed therapy areas, such as pain and type 1 diabetes. | Abbott Laboratories You'll want to pick up Abbott Laboratories (NYSE: ABT) for two big reasons: Its diversified product profile and its dividend payments. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) has been generating returns for investors for quite a while. Intuitive doesn't generate revenue only through da Vinci installs. | Abbott Laboratories You'll want to pick up Abbott Laboratories (NYSE: ABT) for two big reasons: Its diversified product profile and its dividend payments. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) has been generating returns for investors for quite a while. And Intuitive's revenue and profit should continue to climb over time. | Abbott Laboratories You'll want to pick up Abbott Laboratories (NYSE: ABT) for two big reasons: Its diversified product profile and its dividend payments. Intuitive doesn't generate revenue only through da Vinci installs. This may continue at times when coronavirus hospitalizations rise. |
31419.0 | 2022-09-27 00:00:00 UTC | Abbott Laboratories Shares Near 52-Week Low - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-near-52-week-low-market-mover-1 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.2% above its 52 week low of $97.57, giving the company a market cap of $172B. The stock is currently down 29.0% year-to-date, down 15.5% over the past 12 months, and up 99.9% over the past five years. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 1.8%.
Trading Activity
Trading volume this week was 29.9% 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 under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward 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 , lags 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 , lags 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 227.2%
The company's stock price performance over the past 12 months lags the peer average by 249.3%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.6% 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 1.2% above its 52 week low of $97.57, giving the company a market cap of $172B. 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 , lags 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 , lags 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 227.2% The company's stock price performance over the past 12 months lags the peer average by 249.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.6% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.2% above its 52 week low of $97.57, giving the company a market cap of $172B. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 1.8%. Trading Activity Trading volume this week was 29.9% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 1.2% above its 52 week low of $97.57, giving the company a market cap of $172B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags 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 , lags 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 227.2% The company's stock price performance over the past 12 months lags the peer average by 249.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.6% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.2% above its 52 week low of $97.57, giving the company a market cap of $172B. This week, the Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 1.8%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. |
31420.0 | 2022-09-27 00:00:00 UTC | Abbott Laboratories Enters Oversold Territory | ABT | https://www.nasdaq.com/articles/abbott-laboratories-enters-oversold-territory | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $97.91 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Abbott Laboratories, the RSI reading has hit 27.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 29.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.88% based upon the recent $99.84 share price.
A bullish investor could look at ABT's 27.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABT's 27.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $97.91 per share. | Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.88% based upon the recent $99.84 share price. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $97.91 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $97.91 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $97.91 per share. |
31421.0 | 2022-09-26 00:00:00 UTC | Abbott (ABT) Stock Moves -0.83%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-0.83%3A-what-you-should-know | nan | nan | Abbott (ABT) closed the most recent trading day at $99.84, moving -0.83% from the previous trading session. This change was narrower than the S&P 500's 1.03% loss on the day. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 1.2% over the past month. This has was narrower than the Medical sector's loss of 6.55% and the S&P 500's loss of 10.4% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. On that day, Abbott is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 36.43%. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, down 12.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.34 billion. These totals would mark changes of -4.22% and -1.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Abbott is currently a Zacks Rank #3 (Hold).
Investors should also note Abbott's current valuation metrics, including its Forward P/E ratio of 20.16. This valuation marks a premium compared to its industry's average Forward P/E of 19.16.
It is also worth noting that ABT currently has a PEG ratio of 3.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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. | Abbott (ABT) closed the most recent trading day at $99.84, moving -0.83% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 3.73. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | Abbott (ABT) closed the most recent trading day at $99.84, moving -0.83% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 3.73. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | Abbott (ABT) closed the most recent trading day at $99.84, moving -0.83% from the previous trading session. It is also worth noting that ABT currently has a PEG ratio of 3.73. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | Abbott (ABT) closed the most recent trading day at $99.84, moving -0.83% from the previous trading session. Abbott Laboratories (ABT): Free Stock Analysis Report It is also worth noting that ABT currently has a PEG ratio of 3.73. |
31422.0 | 2022-09-26 00:00:00 UTC | Good Stocks To Buy Right Now? 4 Healthcare Stocks To Know | ABT | https://www.nasdaq.com/articles/good-stocks-to-buy-right-now-4-healthcare-stocks-to-know | nan | nan | Healthcare stocks have been on the rise in recent years, as investors have become more interested in the sector. Healthcare stocks are typically seen as defensive investments, as they tend to perform well even during periods of economic uncertainty. Furthermore, the aging population is expected to drive continued growth in the healthcare sector, making it an attractive investment option for long-term stock market investors.
In addition, healthcare stocks also offer a high degree of stability, as they are less likely to be affected by short-term economic fluctuations. As a result, Healthcare stocks offer investors an appealing mix of defensive qualities and long-term growth potential. If this has you keen on investing in healthcare right now, here are four trending healthcare stocks to watch in the stock market today.
Healthcare Stocks To Buy [Or Sell] Right Now
UnitedHealth Group Inc. (NYSE: UNH)
Merck & Company Inc. (NYSE: MRK)
AbbVie Inc. (NYSE: ABBV)
CVS Health Corporation (NYSE: CVS)
1. UnitedHealth Group (UNH Stock)
Kicking off our list of healthcare stocks today, let’s look at UnitedHealth Group (UNH). In short, UnitedHealth Group is a United States-based health care company. The company operates through two main business segments: UnitedHealthcare and Optum. Additionally, UNH offers a diversified portfolio of products and services to the health care industry. This includes products and services such as; insurance plans, health care products and services, information and technology products and services, and consulting services. Today, UnitedHealth Group offers its shareholders an annual dividend yield of 1.22%.
UNH Recent Stock News
Just this month, the company announced it will report its third quarter 2022 financial results. Specifically, UnitedHealth Group is set to announce its results on Friday, October 14, 2022, before the opening bell. In the meantime, let’s recap how UNH performed in Q2 2022.
Back in July, UnitedHealth Group reported second-quarter 2022 earnings of $5.57 per share and revenue of $80.3 billion. This came in better than analysts estimated for the 2nd quarter of 2022, which was earnings of $5.24 per share and revenue of $79.7 billion.
What’s interesting, is to see if the company provides a revised outlook on its estimated full-year 2022 results. In the second quarter release, UNH said it expects full-year 2022 earnings of $21.40 to $21.90 per share. Additionally, Andrew Witty, CEO of UnitedHealth Group said this about their performance in Q2 2022, “Customers are responding as we build on our five growth pillars, enabling us to move into the second half of 2022 with strong momentum serving ever more people more deeply.”
UNH Stock Chart
Separate from that, shares of UNH stock are green on the year so far up 1.55%. As of Monday’s afternoon trading session, UnitedHealth Group stock is trading at $509.87 per share. Given UNH’s strong track record, and Q3 earnings on deck, do you think now is a good time to keep UNH stock on your watchlist right now?
Source: TD Ameritrade TOS
[Read More] 3 Fertilizer Stocks To Watch In The Stock Market Today
2. Merck & Co. (MRK Stock)
Next, let’s move our attention over to Merck & Co. (MRK). In brief, Merck & Company is an American pharmaceutical company. To start, the company’s pharmaceutical products are used to treat several conditions in a number of therapeutic areas. This includes cardiometabolic disease, cancer, and infections. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. In addition, MRK currently has an annual dividend yield of 3.20% for shareholders.
MRK Recent Stock News
Just last week, the company’s Merck Animal Health announced they will be acquiring privately-held company Venice. Venice is a leader in virtual fencing technology. Specifically for the use cases of rotational grazing and livestock management. What’s more, Venice’s platform allows its customers from a desktop or smartphone the ability to manage cattle movement and simplify rotational grazing. Essentially, Venice’s platform enables producers and ranchers to help manage inventory, all while cutting costs of labor and fencing materials. Meanwhile, the transaction is set to be completed in the third quarter of 2022.
Rick DeLuca, president, of Merck Animal Health, said this about the acquisition, “The acquisition of Vence will broaden our portfolio with complementary products and technologies to advance animal health and well-being as well as outcomes for our customers. Vence is a natural fit with Merck Animal Health’s growing portfolio of animal intelligence products that include identification, traceability and monitoring products. This new technology will give cow-calf producers the ability to track their cattle and the ability to move them from pasture to pasture.“
MRK Stock Chart
Moving along, so far in 2022 shares of MRK stock have advanced over 12%. During Monday’s afternoon trading session, MRK stock is trading at $86.15 per share. With this being said, do you think it’s the right time to add MRK to your list of healthcare stocks to watch in the stock market now?
Source: TD Ameritrade TOS
3. AbbVie (ABBV Stock)
Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). The company focuses its efforts on a broad range of therapeutic areas. This entails areas like; immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology.
ABBV Recent Stock News
Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. In detail, the cash dividend is payable on November 15, 2022, to stockholders of record at the close of business on October 14, 2022.
What’s more, since AbbVie’s inception in 2013, the company has increased its dividend by greater than 250&, while increasing its annual dividend for 25 straight years. Currently, AbbVie is a member of the S&P Dividend Aristocrats Index and has an annual dividend yield of 3.98%.
ABBV Stock Chart
Shares of ABBV stock are outperforming the broader markets so far in 2022. ABBV stock is up over 4% year-to-date and is trading on Monday afternoon at $141.68 per share. With this in mind, do you think now could be a good time to add ABBV stock to your long-term portfolio?
Source: TD Ameritrade TOS
[Read More] Best Stocks To Buy Now In 2022? 4 Dividend Stocks For Your Watchlist
4. CVS Health (CVS Stock)
Rounding off the list, CVS Health Corporation (CVS) is an American healthcare company. In detail, The company owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, as well as many other brands. For a sense of scale, CVS currently has over 9,700 CVS pharmacy locations throughout the United States as of September 19, 2022. What’s more, currently CVS shareholders enjoy an annual dividend yield from the company of 2.25%.
CVS Recent Stock News
In August, CVS Health announced stronger-than-expected second-quarter 2022 financial results. In the report, CVS announced earnings of $2.40 per share and revenue of $80.6 billion for Q2 2022. Wall street’s earnings estimate was $2.16 per share and revenue estimates of $76.4 billion. Separate from that, CVS also announced its forecast for its 2022 full-year fiscal earnings. The company said it estimates full-year 2022 earnings of $8.40 to $8.60 per share.
Furthermore, Karen S. Lynch, CVS Health President, and CEO said this about the quarter’s performance, “Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments. The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care.“
CVS Stock Chart
During Monday’s afternoon trading action, CVS stock is trading at $97.94 per share. Meanwhile, with shares of CVS Health stock down approximately 5.98% year-to-date, will you be keeping an eye on CVS stock today?
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. | AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Furthermore, the aging population is expected to drive continued growth in the healthcare sector, making it an attractive investment option for long-term stock market investors. ABBV Recent Stock News Just earlier this month, AbbVie announced its Board of Directors has declared a quarterly cash dividend of $1.41 per share. | AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. CVS Health (CVS Stock) Rounding off the list, CVS Health Corporation (CVS) is an American healthcare company. | AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Healthcare Stocks To Buy [Or Sell] Right Now UnitedHealth Group Inc. (NYSE: UNH) Merck & Company Inc. (NYSE: MRK) AbbVie Inc. (NYSE: ABBV) CVS Health Corporation (NYSE: CVS) 1. CVS Health (CVS Stock) Rounding off the list, CVS Health Corporation (CVS) is an American healthcare company. | AbbVie (ABBV Stock) Following that, AbbVie Inc. (ABBV) is a global, research-based biopharmaceutical company formed in 2013 as a spin-off from Abbott Laboratories (NYSE: ABT). Additionally, UNH offers a diversified portfolio of products and services to the health care industry. Today, UnitedHealth Group offers its shareholders an annual dividend yield of 1.22%. |
31423.0 | 2022-09-26 00:00:00 UTC | 2 Growth Stocks Down 14% to 28% to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/2-growth-stocks-down-14-to-28-to-buy-and-hold-forever | nan | nan | You're not alone if you're in the red in the stock market this year. Losses have piled up as equities have had about as bad a year as we've seen in the past decade. However, the best way to erase these losses isn't to sell stocks. Rather, it is to hold on for dear life.
Quality stocks and a long time horizon never fail to make investors richer. Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). These longtime winners can still deliver market-beating returns, despite being down this year.
ABT data by YCharts.
1. Abbott Laboratories
Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. For instance, when the company's medical devices segment took a hit during the pandemic, its diagnostics unit picked up the slack. The company developed and marketed several successful coronavirus diagnostics tests.
When Abbott's nutrition segment was under the weather earlier this year -- specifically, its infant formula products -- the rest of its business still managed a solid performance. Still, Abbott's best long-term prospects arguably lie within medical devices. One key product it can count on is the FreeStyle Libre, a continuous glucose monitoring (CGM) system that helps diabetes patients track their blood glucose levels.
Abbott Laboratories continues to show the benefits of this innovative device. In a recent study with type-2 diabetes patients on once-daily insulin therapy, the FreeStyle Libre reduced the number of hospitalizations associated with acute diabetes events by 67%. The prevalence of diabetes is on the rise. Devices like the FreeStyle Libre that improve the health outcomes of diabetes patients will be in even higher demand in the years to come.
Abbott Laboratories boasts many other devices that could help spearhead growth. Earlier this month, it reported encouraging results from a study for its Amplatzer Piccolo Occluder, a device that treats a heart defect in infants. In another encouraging result, Abbott's HeartMate 3 heart pump recently proved able to extend the life of advanced heart failure patients by at least five years.
Abbott Laboratories has a long history of developing innovative products, typically protected by patents. The healthcare company has built a solid reputation as one of the top medical device players. That grants Abbott a strong and almost impenetrable competitive edge -- a necessary condition for a corporation to be successful over several decades.
That's why getting in on Abbott Laboratories while its shares are down would be a great move.
2. Apple
Apple needs no introduction. The company boasts one of the most valuable brands in the world, which grants it solid name recognition and, of course, a competitive edge. But Apple has built this reputation for a reason; the company's products, particularly its iPhones, remain some of the best around.
Apple recently unveiled a new set of products, including various versions of the iPhone 14. And early data strongly suggests that pre-orders for this new device are robust, coming ahead of what many had predicted. Consider that we are still dealing with challenging economic conditions. Does anyone really need a new iPhone?
The fact that Apple's latest devices are attracting more attention than initially predicted in this environment is impressive -- and it is a testament to the company's brand and customer loyalty.
Detractors have been preaching the iPhone's fall from grace for several years. It is true that it no longer generates the buzz it did in the late 2000s. Still, the prophecies of doom have yet to pass. And whenever they do actualize (likely not anytime soon, in my view), Apple will be ready.
The company's services segment, including iCloud, Apple Music, and Apple TV+, continues to grow. As Apple expands its installed base of customers by selling more devices to new users, its ecosystem will become even stronger. The tech giant's services segment also carries higher margins, and that's obviously good for the bottom line.
The lasting dominance of Apple's hardware products, particularly the iPhone, its booming services unit, and the company's solid moat should help it deliver solid returns for a long time, even with a market cap already above $2 trillion.
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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. | Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). ABT data by YCharts. When Abbott's nutrition segment was under the weather earlier this year -- specifically, its infant formula products -- the rest of its business still managed a solid performance. | Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). ABT data by YCharts. Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. | Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). ABT data by YCharts. Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. | Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). ABT data by YCharts. Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. |
31424.0 | 2022-09-24 00:00:00 UTC | Is AbbVie a Buy? | ABT | https://www.nasdaq.com/articles/is-abbvie-a-buy | nan | nan | Drugmaker AbbVie (NYSE: ABBV) is one of the largest healthcare stocks in the world, with a market cap of over $250 billion. It pays a reasonably high dividend yield and has products in a wide range of therapeutic areas, including eye care, neuroscience, immunology, and oncology. It also owns Botox through its $63 billion acquisition of Allergan in 2020.
But shares of the company have been falling in recent months -- down 18% since hitting all-time highs last April. Is the healthcare company a good buy on this dip in price, or should investors be worried about it falling even further in value?
How well is the business doing today?
AbbVie last reported its earnings in July. For the period ending June 30, the company's net revenue of $14.6 billion rose 4.5% year over year. Fast-growing immunology products Skyrizi and Rinvoq generated sales growth in excess of 55% and are key parts of the company's future growth; management has previously forecast that combined, they will reach higher peak annual sales than top-selling drug Humira, which is losing patent protection next year. Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated.
The company also has its Botox business, which it acquired from Allergan a few years ago, that can drive more growth. Despite inflation, demand for that looks to be strong as Botox cosmetic sales of $695 million during the quarter rose 19% year over year. And with the economy returning to normal, those sales may rise even more.
This year, AbbVie is forecasting that its adjusted diluted per-share earnings will be between $13.78 and $13.98, which at the midpoint represents a 9.3% increase from the $12.7 adjusted earnings per share it reported in 2021.
Over the trailing 12 months, the company has generated a profit of $12.6 billion on sales of $57.3 billion. The business has also accumulated an impressive $22.2 billion in free cash flow during that time frame. That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year.
AbbVie's dividend is likely to increase over the years
One of the most attractive features about AbbVie's stock is that it offers investors a high dividend yield. At just under 4%, it pays more than double the S&P 500 (1.7%). If you wanted to collect $1,000 in dividends from AbbVie's stock over the course of a year, you would need to invest roughly $25,000 into the business. But there's even more incentive for you if you plan to buy and hold, because AbbVie is a Dividend King and it has more than doubled its payouts in just five years. That's better than other dividend growth stocks, including pharma peers Johnson & Johnson and Abbott Laboratories:
Data by YCharts.
Is AbbVie stock cheap?
Despite the positive results, shares of AbbVie have been falling in recent months, but overall, the stock remains up around 4%. Although that's modest, it's better than the S&P 500, which is down a whopping 19% this year. As a result, AbbVie's valuation hasn't changed significantly, and it's currently trading at 20 times its earnings.
Data by YCharts.
Compared to some of its peers in the healthcare industry, AbbVie doesn't look like a cheap buy, but its valuation does appear to be fair.
Should you buy AbbVie's stock today?
AbbVie is showing strength and versatility even at a time when other businesses are struggling. It's a positive sign for investors and demonstrates why this is a safe stock to buy and hold for years. With a broad mix of products and a top dividend, this can be a suitable investment for investors who value both dividends and growth.
Although there is some risk that AbbVie's sales could drop as Humira loses patent protection, its business is robust. With significant cash flow coming in, the company has the resources to pursue more growth opportunities. Overall, this is a solid stock that you can buy and forget about.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Merck & Co. The Motley Fool recommends Amgen and 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. | It pays a reasonably high dividend yield and has products in a wide range of therapeutic areas, including eye care, neuroscience, immunology, and oncology. Fast-growing immunology products Skyrizi and Rinvoq generated sales growth in excess of 55% and are key parts of the company's future growth; management has previously forecast that combined, they will reach higher peak annual sales than top-selling drug Humira, which is losing patent protection next year. That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year. | Fast-growing immunology products Skyrizi and Rinvoq generated sales growth in excess of 55% and are key parts of the company's future growth; management has previously forecast that combined, they will reach higher peak annual sales than top-selling drug Humira, which is losing patent protection next year. Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated. That's better than other dividend growth stocks, including pharma peers Johnson & Johnson and Abbott Laboratories: | That leaves plenty of room for it to pursue growth opportunities while still paying (and potentially increasing) its dividend, which AbbVie spent $9.7 billion on in the past year. AbbVie's dividend is likely to increase over the years One of the most attractive features about AbbVie's stock is that it offers investors a high dividend yield. If you wanted to collect $1,000 in dividends from AbbVie's stock over the course of a year, you would need to invest roughly $25,000 into the business. | Humira remains key to AbbVie's business for now, generating $5.4 billion this past quarter, nearly three times the $1.8 billion Skyrizi and Rinvoq generated. As a result, AbbVie's valuation hasn't changed significantly, and it's currently trading at 20 times its earnings. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
31425.0 | 2022-09-23 00:00:00 UTC | Medical device makers see little impact from Fiona on Puerto Rico operations | ABT | https://www.nasdaq.com/articles/medical-device-makers-see-little-impact-from-fiona-on-puerto-rico-operations | nan | nan | By Leroy Leo and Khushi Mandowara
Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island.
The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies.
Most companies Reuters spoke to, including Baxter International BAX.N, said they had initially either temporarily halted operations or were running their plants on generators since Fiona struck on Sunday.
None said they expected supplies to the United States to be significantly disrupted by the storm, in part due to infrastructure changes, such as building up their generator power, following Hurricane Maria.
The electricity grid on the island is owned by bankrupt state-run Puerto Rico Electric Power Authority (PREPA) and is now operated by LUMA Energy, a private joint venture of Canadian energy firm ATCO Ltd ATCx.TO and U.S. energy contractor Quanta Services PWR.N.
While the pace of power restoration has been much faster than following the devastation of Maria, an estimated 1 million homes and businesses remain without power. Baxter, which makes small bags for intravenous medication, clinical nutrition products and inhaled anesthetics in Puerto Rico, said its facilities have "sustained little to no damage" from the storm.
By Thursday, Baxter had restarted operations and was running at normal, pre-hurricane levels, spokesperson Lauren Russ said.
The company took a $70 million revenue hit after Hurricane Maria in 2017, spurring it to diversify manufacturing of key products.
Ahead of hurricane season, the company now builds up supplies of some products and stores much of it on the U.S. mainland, Russ said, adding that Baxter had good inventory levels for most products produced in Puerto Rico and the Dominican Republic for U.S. customers.
Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said.
"Most MedTech companies are more prepared with greater redundancy" than when Maria hit, J.P Morgan analyst Robbie Marcus in a research note.
Spokespeople for other medical equipment companies including Becton Dickinson BDX.N, Medtronic MDT.N, Edwards Lifesciences EW.N and Stryker SYK.N also said they were not seeing a major impact to operations from Hurricane Fiona due to measures undertaken following Maria.
Drugmakers with plants in Puerto Rico said they have been able to keep up production and supplies as well.
Johnson & Johnson JNJ.N said operations were restored at all its sites in Puerto Rico by Wednesday.
AbbVie's ABBV.N facilities are intact and operational and unlikely to see any patient impact or product shortages due to Fiona, according to a person familiar with the company's operations who asked not to be named.
Eli Lilly and Co LLY.N has not experienced any disruptions to its site or supply, spokesperson Molly McCully said.
(Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; additional reporting by Michael Erman; editing by Caroline Humer and Bill Berkrot)
((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. | Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. Baxter, which makes small bags for intravenous medication, clinical nutrition products and inhaled anesthetics in Puerto Rico, said its facilities have "sustained little to no damage" from the storm. | Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. | Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. | Integra Lifesciences IART.O and Abbott Laboratories ABT.N also upgraded back-up generators and communication capabilities and shored up infrastructure at plants such as improvements to roofs and pipes, their spokespeople said. By Leroy Leo and Khushi Mandowara Sept 23 (Reuters) - Medical device companies and some drugmakers with manufacturing operations in Puerto Rico said they do not expect meaningful disruption from Hurricane Fiona, which knocked out power for over 3 million people and caused flooding and landslides on the island. The U.S. Food and Drug Administration, which worked with companies to prevent shortages of drugs and medical devices after Hurricane Maria battered the medical manufacturing hub in 2017, said it is in discussion with companies it regulates there regarding any impact on supplies. |
31426.0 | 2022-09-22 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-0 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.9% above its 52 week low of $98.81, giving the company a market cap of $176B. The stock is currently down 27.6% year-to-date, down 18.4% over the past 12 months, and up 108.2% over the past five years. This week, the Dow Jones Industrial Average fell 4.0%, and the S&P 500 fell 4.6%.
Trading Activity
Trading volume this week was 5.4% 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 under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
The stock closed at 1.1% lower than its 5-day moving average, 3.1% lower than its 20-day moving average, and 7.3% lower than its 90-day moving average.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags 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 , lags 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 213.6%
The company's stock price performance over the past 12 months lags the peer average by 180.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 281.2% 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 1.9% above its 52 week low of $98.81, giving the company a market cap of $176B. 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 , lags 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 , lags 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 213.6% The company's stock price performance over the past 12 months lags the peer average by 180.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 281.2% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.9% above its 52 week low of $98.81, giving the company a market cap of $176B. This week, the Dow Jones Industrial Average fell 4.0%, and the S&P 500 fell 4.6%. The stock closed at 1.1% lower than its 5-day moving average, 3.1% lower than its 20-day moving average, and 7.3% lower than its 90-day moving average. | Abbott Laboratories (ABT) shares closed today at 1.9% above its 52 week low of $98.81, giving the company a market cap of $176B. The stock closed at 1.1% lower than its 5-day moving average, 3.1% lower than its 20-day moving average, and 7.3% lower than its 90-day moving average. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags 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 , lags 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 213.6% The company's stock price performance over the past 12 months lags the peer average by 180.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 281.2% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.9% above its 52 week low of $98.81, giving the company a market cap of $176B. This week, the Dow Jones Industrial Average fell 4.0%, and the S&P 500 fell 4.6%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. |
31427.0 | 2022-09-22 00:00:00 UTC | Abbott (ABT) Reports Favorable Findings From RELIEF Study | ABT | https://www.nasdaq.com/articles/abbott-abt-reports-favorable-findings-from-relief-study | nan | nan | Abbott Laboratories ABT recently presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. According to the latest findings, Type 2 diabetes patients receiving once-daily (basal) insulin therapy experienced a significantly lower rate of hospitalizations from acute diabetes events (ADEs) when using the FreeStyle Libre, a continuous glucose monitoring system (CGM).
Currently, the FreeStyle Libre system is reimbursed for all Type 1 diabetes patients in most European countries. However, patients with Type 2 diabetes can only be reimbursed for the product if they meet certain requirements, like using insulin several times a day or having poorly controlled glucose levels.
The RELIEF study’s results add to a growing body of evidence demonstrating the FreeStyle Libre system’s efficacy in reducing hospitalizations in Type 1 and Type 2 diabetes patients requiring multiple daily insulin injections. These favorable findings are likely to fortify Abbott’s diabetes care division.
A Detailed View of the Study Results
The RELIEF study was conducted using the French national health claims database. The findings showed that 5,933 patients with Type 2 diabetes using the FreeStyle Libre system and adhering to a basal-only regimen had 67% fewer ADE-related hospitalizations one year after beginning the FreeStyle Libre treatment.
The results also revealed a 75% reduction in hospitalizations for diabetic ketoacidosis (DKA) and a 44% decline in admissions for severe hypoglycemia. Also, the study found that the use of the FreeStyle Libre system over two years demonstrated sustained reductions in hospitalizations, regardless of whether the patients were under the care of a diabetes specialist or a general healthcare practitioner.
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The RELIEF study suggests that lowering the incidence of hypoglycemia and DKA may enhance adherence and help diabetes patients attain their glycemic targets. This is particularly important for the elderly, as hypoglycemia is linked to a significant increase in the risk of falls, fractures, dementia, and death.
Industry Prospects
Per a report published in GlobeNewswire, the blood glucose monitoring devices market is expected to see a CAGR of 7.92% from 2021 to 2030. Factors such as the increase in diabetic patients worldwide, rapid technological enhancements and early diagnosis of hypoglycemia and hyperglycemia can be attributed to market growth.
Given the market prospects, the RELIEF study’s latest findings backing the FreeStyle Libre seems strategic.
Other Notable Developments
This month, Abbott launched its Amplatzer Talisman PFO Occlusion System in Europe. The Talisman device aims to treat patent foramen ovale (PFO) patients who have had a stroke and are at risk of having another. The novel Talisman system simplified doctors’ procedures while allowing patients to return to living fuller, healthier lives more quickly.
In August 2022, the company received FDA approval for its novel Proclaim Plus spinal cord stimulation system featuring FlexBurst360 therapy. The FlexBurst360 therapy on the Proclaim Plus system enables physicians to detect the lowest effective dose of stimulation for each patient and alter it in response to changing pain requirements.
Share Price Performance
The stock has outperformed its industry in the past year. It has declined 19.7% against the industry’s 51% fall.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 6.9% against the industry’s 39.8% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 25% against the industry’s 36.4% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 70.4% against the industry’s 18.8% fall.
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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 recently presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. Abbott Laboratories (ABT): Free Stock Analysis Report Also, the study found that the use of the FreeStyle Libre system over two years demonstrated sustained reductions in hospitalizations, regardless of whether the patients were under the care of a diabetes specialist or a general healthcare practitioner. | Abbott Laboratories ABT recently presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. Abbott Laboratories (ABT): Free Stock Analysis Report According to the latest findings, Type 2 diabetes patients receiving once-daily (basal) insulin therapy experienced a significantly lower rate of hospitalizations from acute diabetes events (ADEs) when using the FreeStyle Libre, a continuous glucose monitoring system (CGM). | Abbott Laboratories ABT recently presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. Abbott Laboratories (ABT): Free Stock Analysis Report According to the latest findings, Type 2 diabetes patients receiving once-daily (basal) insulin therapy experienced a significantly lower rate of hospitalizations from acute diabetes events (ADEs) when using the FreeStyle Libre, a continuous glucose monitoring system (CGM). | Abbott Laboratories ABT recently presented new data from the Real World Evidence of FreeStyle Libre (RELIEF) study at the 58th Annual European Association for the Study of Diabetes (EASD) meeting. Abbott Laboratories (ABT): Free Stock Analysis Report According to the latest findings, Type 2 diabetes patients receiving once-daily (basal) insulin therapy experienced a significantly lower rate of hospitalizations from acute diabetes events (ADEs) when using the FreeStyle Libre, a continuous glucose monitoring system (CGM). |
31428.0 | 2022-09-22 00:00:00 UTC | December 16th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/december-16th-options-now-available-for-abbott-laboratories-abt | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the December 16th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 85 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new December 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $100.00 strike price has a current bid of $4.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $100.00, but will also collect the premium, putting the cost basis of the shares at $95.35 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $101.03/share today.
Because the $100.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.65% return on the cash commitment, or 19.96% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Abbott Laboratories, and highlighting in green where the $100.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $105.00 strike price has a current bid of $3.50. If an investor was to purchase shares of ABT stock at the current price level of $101.03/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $105.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.39% if the stock gets called away at the December 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $105.00 strike highlighted in red:
Considering the fact that the $105.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.46% boost of extra return to the investor, or 14.87% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 27%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $101.03) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the December 16th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new December 16th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new December 16th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new December 16th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABT's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the December 16th expiration. |
31429.0 | 2022-09-21 00:00:00 UTC | Should You Buy Intuitive Surgical Stock Over This Healthcare Company? | ABT | https://www.nasdaq.com/articles/should-you-buy-intuitive-surgical-stock-over-this-healthcare-company | nan | nan | We believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Becton Dickinson stock (NYSE: BDX), despite ISRG being the more expensive of the two, with its P/S ratio of 12.4x, compared to just 3.5x for BDX stock. This gap in the valuation is largely justified, given Intuitive Surgical’s superior revenue growth, lower financial risk, and better growth prospects.
If we look at stock returns, Intuitive Surgical’s 44% fall year-to-date has been worse than the <1% rise for Becton Dickinson. This compares with a 19% fall in the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss why we believe ISRG stock will offer better returns than BDX 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 Intuitive Surgical vs. Becton Dickinson: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuitive Surgical’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Intuitive Surgical has witnessed comparatively faster revenue growth of 15.5% vs. 5.5% for Becton Dickinson.
Even if we look at a longer time frame, Intuitive Surgical has fared better, with its sales rising at an average annual rate of 16.2% to $5.7 billion in 2021, compared to $3.7 billion in 2018, while Becton Dickinson’s sales grew at an average rate of 8.5% to $20.2 billion in 2021, compared to around $16.0 billion in 2018.
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. The capital spending for many hospitals is tepid, weighing on the overall robotic equipment demand.
Becton Dickinson’s revenue growth over the recent past has been aided by its Covid-19 diagnostic tests and the increased demand for its medical delivery solutions and pharmaceuticals systems, primarily pre-filled devices. Earlier this year, the company completed the spin-off of its diabetes business, which is now listed as a separate entity – Embecta (NASDAQ: EMBC) – on the Nasdaq stock exchange.
Our Intuitive Surgical Revenue and Becton Dickinson Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Intuitive Surgical’s revenue is expected to grow faster than Becton Dickinson’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 13.9% for Intuitive Surgical, compared to a 9.2% CAGR for Becton Dickinson, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies negatively impacted by Covid and those 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. Becton Dickinson Is More Profitable, But It Comes With Higher Risk
Intuitive Surgical’s operating margin of 13.7% over the last twelve months is lower than 16.2% for Becton Dickinson.
This compares with 30.7% and 13.9% figures seen in 2019, before the pandemic, respectively.
Our Intuitive Surgical Operating Income and Becton Dickinson Operating Income dashboards have more details.
Intuitive Surgical’s free cash flow margin of 31.3% is much higher than 13.9% for Becton Dickinson.
Looking at financial risk, Intuitive Surgical is much better placed than Becton Dickinson. Its 0.6% debt as a percentage of equity is much lower than 21.1% for Becton Dickinson, while its 61.8% cash as a percentage of assets is much higher than 4.8% for the latter, implying that Intuitive Surgical has a better debt position and has more cash cushion.
3. The Net of It All
Intuitive Surgical has demonstrated better revenue growth and offers lower financial risk. On the other hand, Becton Dickinson is more profitable and is available at a relatively 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 its higher valuation.
The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 63% for ISRG over this period vs. a 29% expected return for BDX stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over BDX, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Becton Dickinson – which also provides more details on how we arrive at these numbers.
While ISRG stock looks like a better pick over BDX stock, 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 Syneos Health vs. Amerco.
With inflation rising and the Fed raising interest rates, among other factors, ISRG stock has plunged 44% 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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return -2% -44% 187%
BDX Return 0% 0% 52%
S&P 500 Return -2% -19% 73%
Trefis Multi-Strategy Portfolio -2% -18% 226%
[1] Month-to-date and year-to-date as of 9/20/2022
[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. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuitive Surgical vs. Becton Dickinson: Which Stock Is A Better Bet? 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. Becton Dickinson’s revenue growth over the recent past has been aided by its Covid-19 diagnostic tests and the increased demand for its medical delivery solutions and pharmaceuticals systems, primarily pre-filled devices. | Even if we look at a longer time frame, Intuitive Surgical has fared better, with its sales rising at an average annual rate of 16.2% to $5.7 billion in 2021, compared to $3.7 billion in 2018, while Becton Dickinson’s sales grew at an average rate of 8.5% to $20.2 billion in 2021, compared to around $16.0 billion in 2018. The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 63% for ISRG over this period vs. a 29% expected return for BDX stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over BDX, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Becton Dickinson – which also provides more details on how we arrive at these numbers. Total [2] ISRG Return -2% -44% 187% BDX Return 0% 0% 52% S&P 500 Return -2% -19% 73% Trefis Multi-Strategy Portfolio -2% -18% 226% [1] Month-to-date and year-to-date as of 9/20/2022 [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. | We believe Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Becton Dickinson stock (NYSE: BDX), despite ISRG being the more expensive of the two, with its P/S ratio of 12.4x, compared to just 3.5x for BDX stock. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuitive Surgical vs. Becton Dickinson: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 63% for ISRG over this period vs. a 29% expected return for BDX stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over BDX, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Becton Dickinson – which also provides more details on how we arrive at these numbers. | Still, Intuitive Surgical has witnessed comparatively faster revenue growth of 15.5% vs. 5.5% for Becton Dickinson. Becton Dickinson Is More Profitable, But It Comes With Higher Risk Intuitive Surgical’s operating margin of 13.7% over the last twelve months is lower than 16.2% for Becton Dickinson. The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 63% for ISRG over this period vs. a 29% expected return for BDX stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over BDX, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Becton Dickinson – which also provides more details on how we arrive at these numbers. |
31430.0 | 2022-09-19 00:00:00 UTC | Abbott (ABT) Gains But Lags Market: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-but-lags-market%3A-what-you-should-know-10 | nan | nan | In the latest trading session, Abbott (ABT) closed at $104.09, marking a +0.09% move from the previous day. The stock lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 5.51% over the past month. This has was narrower than the Medical sector's loss of 5.7% and the S&P 500's loss of 9.94% in that time.
Abbott will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, down 36.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, down 12.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.39 billion. These totals would mark changes of -4.22% and -1.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Abbott is holding a Forward P/E ratio of 20.85. For comparison, its industry has an average Forward P/E of 20.85, which means Abbott is trading at a no noticeable deviation to the group.
Investors should also note that ABT has a PEG ratio of 3.85 right now. 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 2.11 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $104.09, marking a +0.09% move from the previous day. Investors should also note that ABT has a PEG ratio of 3.85 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $104.09, marking a +0.09% move from the previous day. Investors should also note that ABT has a PEG ratio of 3.85 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $104.09, marking a +0.09% move from the previous day. Investors should also note that ABT has a PEG ratio of 3.85 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | In the latest trading session, Abbott (ABT) closed at $104.09, marking a +0.09% move from the previous day. Investors should also note that ABT has a PEG ratio of 3.85 right now. Abbott Laboratories (ABT): Free Stock Analysis Report |
31431.0 | 2022-09-18 00:00:00 UTC | Should You Buy Stryker Stock Around $225? | ABT | https://www.nasdaq.com/articles/should-you-buy-stryker-stock-around-%24225 | nan | nan | Stryker stock (NYSE: SYK), a medical devices company, has seen a 15% fall this year, in line with the broader S&P500 index, down 17%. Even if we look at the longer term, SYK stock, with 46% returns from levels seen in late 2017, has aligned with the S&P 500 index, up 48%. However, we believe that Stryker still has more room for growth, as discussed below.
This 46% rise for Stryker stock since late 2017 can primarily be attributed to 1. Stryker’s revenue rising a significant 42% to $17.6 billion over the last twelve months, compared to $12.4 billion in 2017, 2. a 3% rise in the company’s P/S ratio to 4.9x trailing revenues currently, compared to 4.7x in 2017, partly offset by 3. a 2% rise in its total shares outstanding to 379 million. The increase in revenue and shares outstanding has meant that Stryker’s revenue per share rose 40% to $46.49 over the last twelve months, vs. $33.31 in 2017. Our dashboard on Why Stryker Stock Moved has more details.
Stryker’s sales growth over the recent years has been driven by new product launches, such as – Surgi-Count+ – a surgical sponge counting system. Last month, it launched Insignia Hip Stem and Power-PRO 2 ambulance cot. The new launches are likely to aid its revenue growth going forward.
The company’s revenue growth has also been buoyed by the acquisition of Wright Medical, a medical device company, in late 2020. Earlier this year, Stryker agreed to acquire Vocera Communications – a company focused on communications systems for the healthcare industry.
Stryker has seen its operating margins expand to 13.2% for the last twelve-month period, compared to just 1.9% in 2017. That said, the metric is below the 18.2% figure seen in 2019, before the pandemic. The operating margin on an adjusted basis contracted 190 bps in the first half of 2022, partly due to higher inflation resulting in increased raw material costs and supply chain disruption, also weighing on the margin growth. Our Stryker Operating Income Comparison dashboard has more details.
Looking at SYK stock, we believe there is more room for growth from its current market price of $226. The company’s management has guided for 6% to 8% revenue growth for the full-year 2022. At the mid-point of the guided range, it translates into revenue of $18.3 billion. We assume the current share count of 378.3 million (reported for Q2 2022) to arrive at the expected revenue per share of $48.40 for the full year 2022. Now, at its current levels, SYK stock is trading at 4.7x forward expected revenues, compared to the last three-year average of 5.5x, implying that it has more room for growth.
While SYK stock looks like it has more room for growth, it is helpful to see how Stryker’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 Vicor vs. Stryker.
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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
SYK Return 10% -15% 89%
S&P 500 Return 0% -17% 76%
Trefis Multi-Strategy Portfolio 0% -15% 234%
[1] Month-to-date and year-to-date as of 9/15/2022
[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. | Stryker stock (NYSE: SYK), a medical devices company, has seen a 15% fall this year, in line with the broader S&P500 index, down 17%. Stryker’s sales growth over the recent years has been driven by new product launches, such as – Surgi-Count+ – a surgical sponge counting system. Now, at its current levels, SYK stock is trading at 4.7x forward expected revenues, compared to the last three-year average of 5.5x, implying that it has more room for growth. | Stryker’s revenue rising a significant 42% to $17.6 billion over the last twelve months, compared to $12.4 billion in 2017, 2. a 3% rise in the company’s P/S ratio to 4.9x trailing revenues currently, compared to 4.7x in 2017, partly offset by 3. a 2% rise in its total shares outstanding to 379 million. Now, at its current levels, SYK stock is trading at 4.7x forward expected revenues, compared to the last three-year average of 5.5x, implying that it has more room for growth. Total [2] SYK Return 10% -15% 89% S&P 500 Return 0% -17% 76% Trefis Multi-Strategy Portfolio 0% -15% 234% [1] Month-to-date and year-to-date as of 9/15/2022 [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. | Stryker’s revenue rising a significant 42% to $17.6 billion over the last twelve months, compared to $12.4 billion in 2017, 2. a 3% rise in the company’s P/S ratio to 4.9x trailing revenues currently, compared to 4.7x in 2017, partly offset by 3. a 2% rise in its total shares outstanding to 379 million. Now, at its current levels, SYK stock is trading at 4.7x forward expected revenues, compared to the last three-year average of 5.5x, implying that it has more room for growth. Total [2] SYK Return 10% -15% 89% S&P 500 Return 0% -17% 76% Trefis Multi-Strategy Portfolio 0% -15% 234% [1] Month-to-date and year-to-date as of 9/15/2022 [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. | Even if we look at the longer term, SYK stock, with 46% returns from levels seen in late 2017, has aligned with the S&P 500 index, up 48%. Stryker’s revenue rising a significant 42% to $17.6 billion over the last twelve months, compared to $12.4 billion in 2017, 2. a 3% rise in the company’s P/S ratio to 4.9x trailing revenues currently, compared to 4.7x in 2017, partly offset by 3. a 2% rise in its total shares outstanding to 379 million. Looking at SYK stock, we believe there is more room for growth from its current market price of $226. |
31432.0 | 2022-09-18 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 9/18/2022 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-9-18-2022 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AmerisourceBergen Corporation is a global pharmaceutical sourcing and distribution services company. The Company operates through two segments: U.S. Healthcare Solutions and International Healthcare Solutions. The U.S. Healthcare Solutions segment distributes an offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. The International Healthcare Solutions segment consists of businesses that focus on international pharmaceutical wholesale and related service operations and global commercialization services. This segment consists of Alliance Healthcare, World Courier, Innomar, Profarma, and Profarma Specialty.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of AMERISOURCEBERGEN CORP.
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ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABBOTT LABORATORIES
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CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Centene Corporation is a multi-national healthcare company. The Company provides services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. It also provides education and outreach programs to inform and assist members in accessing appropriate healthcare services. Its segments include Managed Care and Specialty Services. The Managed Care segment provides health plan coverage to individuals through government subsidized and commercial programs. Its Specialty Services segment includes companies offering diversified healthcare services and products to its Managed Care segment and other external customers. It provides managed healthcare products and services through Medicaid, Medicare and commercial products. In addition to its Medicaid and Medicare services, its service offerings include commercial programs, correctional healthcare services, government-sponsored care under federal contracts with the department of defense (DoD).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: FAIL
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of CENTENE CORP
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ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Ensign Group, Inc. is a holding company, which provides skilled nursing, senior living, and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation) through its subsidiaries. The Company operates through two segments: skilled services and real estate. The skilled services segment includes the operation of skilled nursing facilities and rehabilitation therapy services. The real estate segment primarily comprised of properties owned by the Company and leased to skilled nursing and senior living operations, including its own operating subsidiaries and third-party operators, and are subject to triple-net long-term leases. It offers skilled nursing, senior living and rehabilitative care services through approximately 245 skilled nursing and senior living facilities. Its real estate portfolio includes approximately 100 owned real estate properties located in Arizona, California, Colorado, Idaho, and Nebraska, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ENSIGN GROUP INC
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PFIZER INC. (PFE) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products around the world. The Company manages its commercial operations through two segments: Biopharma and PC1. Biopharma is a science-based medicines business that includes six therapeutic areas, such as Vaccines, Hospital, Oncology, Internal Medicine, Rare Disease, and Inflammation & Immunology. PC1 is its global contract development and manufacturing organization and supplier of specialty active pharmaceutical ingredients. Its Vaccines include Comirnaty/BNT162b2, the Prevnar family, Nimenrix and others. Its Oncology products include Ibrance, Xtandi, Inlyta, Sutent, Retacrit, Lorbrena and Braftovi. Its Internal Medicine products include Eliquis and the Premarin family. Its Inflammation & Immunology products include Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis and Cibinqo.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of PFIZER INC.
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More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of CENTENE CORP Full Guru Analysis for CNC> Full Factor Report for CNC> ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The U.S. Healthcare Solutions segment distributes an offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. | Detailed Analysis of AMERISOURCEBERGEN CORP. Full Guru Analysis for ABC> Full Factor Report for ABC> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. |
31433.0 | 2022-09-18 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Peter Lynch - 9/18/2022 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-peter-lynch-9-18-2022 | nan | nan | The following are the top rated Healthcare stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its Established Pharmaceutical Products segment includes gastroenterology products, women's health products, cardiovascular and metabolic products, pain and central nervous system products and respiratory drugs and vaccines. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. Its Nutritional Products segment includes various forms of infant formula and follow-on formula, adult and other pediatric nutritional products and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
Full Guru Analysis for ABT>
Full Factor Report for ABT>
DUPONT DE NEMOURS INC (DD) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DuPont de Nemours, Inc. provides technology-based materials and solutions. The Company's segments include Electronics & Industrial, Water & Protection and Mobility & Materials. Electronics & Industrial is a global supplier of various materials and systems for a range of consumer electronics, including mobile devices, television monitors, personal computers and electronics used in a variety of industries. Mobility & Materials segment provides engineering thermoplastics, elastomers, adhesives, silicone encapsulants, pastes, filaments and advanced films to engineers and designers in the transportation, electronics, renewable energy, industrial and consumer end-markets to enable systems solutions for demanding applications and environments. Water & Protection segment is focused on providing engineered products and integrated systems for a range of industries, including, worker safety, water purification and separation, transportation, energy, medical packaging and building materials.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of DUPONT DE NEMOURS INC
Full Guru Analysis for DD>
Full Factor Report for DD>
QUEST DIAGNOSTICS INC (DGX) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through DIS segment, which provides diagnostic information services to a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers, accountable care organizations (ACOs) and direct contract entities (DCEs). It is also engaged in two business operations, Diagnostic Information Services, which develops and delivers diagnostic information services that provides insights to a range of customers, and the Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers and its healthcare information technology businesses, which offers solutions for healthcare providers. The Company's services primarily are provided under the Quest Diagnostics brand, but it also provides services under other brands, including AmeriPath, Dermpath Diagnostics, ExamOne and Quanum.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of QUEST DIAGNOSTICS INC
Full Guru Analysis for DGX>
Full Factor Report for DGX>
EMERGENT BIOSOLUTIONS INC (EBS) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Emergent BioSolutions, Inc. is a life sciences company focused on providing preparedness and response solutions addressing accidental, deliberate and naturally occurring public health threats (PHTs). The Company is focused on five PHT categories: chemical, biological, radiological, nuclear and explosives (CBRNE); emerging infectious diseases; travel health; public health crises (such as the opioid crisis and the COVID-19 pandemic); acute, emergency, and community care. Its business lines include Medical Countermeasures (MCM), Commercial and CDMO. MCM focuses primarily on procurement of MCM products and procured product candidates by domestic and international government customers. It provides solutions for public health threats through a portfolio of vaccines and therapeutics that it develops and manufactures for governments and consumers. The Company also offers a range of integrated contract development and manufacturing services for pharmaceutical and biotechnology customers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EMERGENT BIOSOLUTIONS INC
Full Guru Analysis for EBS>
Full Factor Report for EBS>
HOLOGIC, INC. (HOLX) is a large-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems, and surgical products focused on women's health and well-being through early detection and treatment. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The Diagnostics segment offers a range of diagnostics products, which are used primarily to aid in the screening and diagnosis of human diseases. The Breast Health segment offers a portfolio of solutions for breast cancer care for radiology, pathology and surgery. The GYN Surgical segment offers a range of products, including its NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System as well as its Fluent Fluid Management system. The Skeletal Health segment offers products such as the Horizon DXA, a dual energy x-ray system, which evaluates bone density and performs body composition assessments, and the Fluoroscan Insight FD mini C-arm.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of HOLOGIC, INC.
Full Guru Analysis for HOLX>
Full Factor Report for HOLX>
More details on Validea's Peter Lynch strategy
Peter Lynch Stock Ideas
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DUPONT DE NEMOURS INC (DD) is a large-cap growth stock in the Biotechnology & Drugs industry. The Company operates through DIS segment, which provides diagnostic information services to a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers, accountable care organizations (ACOs) and direct contract entities (DCEs). | Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DUPONT DE NEMOURS INC (DD) is a large-cap growth stock in the Biotechnology & Drugs industry. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of EMERGENT BIOSOLUTIONS INC Full Guru Analysis for EBS> Full Factor Report for EBS> HOLOGIC, INC. (HOLX) is a large-cap value stock in the Medical Equipment & Supplies industry. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DUPONT DE NEMOURS INC (DD) is a large-cap growth stock in the Biotechnology & Drugs industry. Its Diagnostic Products segment includes core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion medicine; molecular diagnostics polymerase chain reaction (PCR) instrument systems; point of care systems; rapid diagnostics lateral flow testing products, and informatics and automation solutions. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DUPONT DE NEMOURS INC (DD) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: Quest Diagnostics Incorporated is a provider of diagnostic information services. |
31434.0 | 2022-09-17 00:00:00 UTC | 3 Stocks You Can Keep Forever | ABT | https://www.nasdaq.com/articles/3-stocks-you-can-keep-forever-4 | nan | nan | Forever may seem like a long time, but if you park your money in the right places, you'll get solid returns much sooner than you suspect, and that's why it pays to always be packing your portfolio with forever stocks. But what makes a forever stock different from others? Essentially, it's having a killer business model that doesn't need to change much to stay profitable, relevant, and rewarding for shareholders as the years roll by.
With that thought in mind, let's examine a trio of stocks worth buying and holding forever -- and you've probably already heard of all three.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a no-brainer stock for indefinite holding because it's always growing its dividend and making share repurchases to boost returns. To accomplish those tasks, it manufactures every kind of healthcare good, from glucose monitors to generic medicines, tools for heart surgery, and even diagnostic tests. And that's how, over the last 10 years, its trailing 12-month net income rose by 307%, reaching more than $8.5 billion.
Because of how many different types of products it makes, the risk of its top line collapsing from competitive pressure in any given segment is minimized. That means as economic conditions and market forces shift over the long term, it can rework its strategy in each of its segments gradually, allowing it to stay relevant when more focused competitors might stumble.
At the moment, its forward dividend yield is nearly 1.8%, which is unremarkable. But, in the last five years alone, Abbott hiked its dividend by 77.3%, and it also hit the milestone of 50 years of continuous annual dividend increases. So even if its shares won't outperform the market, you'll have an ever-rising income stream paid for courtesy of Abbott's sales of medical goods that'll always be in demand.
2. Costco
Costco Wholesale (NASDAQ: COST) is another stock that's worth keeping forever because forever is the period of time for which people will continue to need low-cost groceries and home goods. The company's business model is to charge its customers a membership fee, which allows them to shop at its wholesale warehouses, where they can purchase goods in bulk at close to their cost. While its food options are the most extensive, it also sells consumer goods like clothing and kitchenware. It even offers its members access to low-cost pharmacies, insurance coverage, and vehicle repair services.
Everyone likes inexpensive stuff, so it's no surprise that it brought in net revenue of $45.5 billion and net income of $8.5 billion over the trailing 12 months -- and there's likely more growth in store. The business plans to keep opening new warehouses, initiating new growth campaigns like its recent push into e-commerce, and offering new products to attract consumers, just like it's been doing for the prior two decades and beyond.
In that vein, one of the keys to Costco's enduring success is that its members enjoy shopping there thanks to its combination of good customer service, low prices, and decent quality products. Of the 116.6 million members in May 2022, an estimated 92.3% had opted to renew their subscriptions for the next year. That's a lot of happy customers who will continue to spend at its warehouses. And with inflation surging worldwide, its customers will be seeking out bargains more than ever, which should drive short-term growth too.
3. Apple
As one of the world's most valuable companies and perhaps the world's most valuable brand, Apple (NASDAQ: AAPL) is the third stock here that deserves a forever home in your portfolio. Its cellphones, computers, peripherals, software, accessories, and cloud services are heavily in demand. And its constant work to keep innovating on successful designs has so far made it relevant throughout multiple booms and recessions. In its fiscal third quarter alone, the company brought in revenue of $83 billion and net income of more than $19.4 billion.
With such a roaring business, it can afford to benefit shareholders through stock buybacks. Since its 2012 fiscal year, Apple spent $529.1 billion (!) on repurchasing its shares. And there's no indication that it'll stop anytime soon, either. As long as consumers build their digital lives in the company's ecosystem of products and software, their switching costs will remain high, and they'll be incentivized to keep buying the latest editions of whatever they use the most.
To keep the growth train going even more, Apple is also diversifying into new segments like payment processing. It might eventually go even further by entering new hardware markets or even vehicle markets. What's more, its base of revenue comes from so many different products that losing in any given segment won't bring down the house, much like with Abbott Labs. In total, there aren't many other stocks that are so consistently lucrative to hold, and those who hang onto their shares for the long-term get the biggest boost from its constant efforts to return capital.
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Alex Carchidi has positions in Abbott Laboratories, Apple, and Costco Wholesale. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a no-brainer stock for indefinite holding because it's always growing its dividend and making share repurchases to boost returns. That means as economic conditions and market forces shift over the long term, it can rework its strategy in each of its segments gradually, allowing it to stay relevant when more focused competitors might stumble. In that vein, one of the keys to Costco's enduring success is that its members enjoy shopping there thanks to its combination of good customer service, low prices, and decent quality products. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a no-brainer stock for indefinite holding because it's always growing its dividend and making share repurchases to boost returns. Costco Costco Wholesale (NASDAQ: COST) is another stock that's worth keeping forever because forever is the period of time for which people will continue to need low-cost groceries and home goods. Everyone likes inexpensive stuff, so it's no surprise that it brought in net revenue of $45.5 billion and net income of $8.5 billion over the trailing 12 months -- and there's likely more growth in store. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a no-brainer stock for indefinite holding because it's always growing its dividend and making share repurchases to boost returns. Costco Costco Wholesale (NASDAQ: COST) is another stock that's worth keeping forever because forever is the period of time for which people will continue to need low-cost groceries and home goods. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Alex Carchidi has positions in Abbott Laboratories, Apple, and Costco Wholesale. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a no-brainer stock for indefinite holding because it's always growing its dividend and making share repurchases to boost returns. But what makes a forever stock different from others? But, in the last five years alone, Abbott hiked its dividend by 77.3%, and it also hit the milestone of 50 years of continuous annual dividend increases. |
31435.0 | 2022-09-16 00:00:00 UTC | Daily Dividend Report: CIO,TXN,KR,ABT,INTC | ABT | https://www.nasdaq.com/articles/daily-dividend-report%3A-ciotxnkrabtintc | nan | nan | City Office REIT announced today that its Board of Directors has authorized a quarterly dividend amount of $0.20 per share of common stock and common unit of partnership interest for the third quarter of 2022. The dividend will be payable on October 21, 2022 to all stockholders and operating partnership unitholders, as applicable, of record as of the close of business on October 7, 2022.
Texas Instruments today said it will raise its quarterly cash dividend 8%, from $1.15 per share to $1.24, or $4.96 annualized. The higher dividend will be payable November 15, 2022, to stockholders of record on October 31, 2022, contingent upon formal declaration by the board of directors at its regular meeting in October. The board of directors also authorized the company to repurchase an additional $15 billion of its common stock over time. This is in addition to approximately $8.2 billion of previously authorized repurchases that remained at the end of June 2022. TXN has a proven track record of returning cash to its owners. Today's announcement marks 19 consecutive years of dividend increases. In addition, as of second quarter 2022, the company has reduced its outstanding shares by 47% through its share repurchases since the end of 2004.
The Kroger's Board of Directors today declared a quarterly dividend of 26 cents per share to be paid on December 1, 2022, to shareholders of record as of the close of business on November 15, 2022. The company's quarterly dividend has grown at a 14% compounded annual growth rate since it was reinstated in 2006. The company continues to expect, subject to board approval, an increasing dividend over time.
The board of directors of Abbott today declared a quarterly common dividend of 47 cents per share. This marks the 395th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Nov. 15, 2022, to shareholders of record at the close of business on Oct. 14, 2022. Abbott has increased its dividend payout for 50 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
Intel today announced that its board of directors has declared a quarterly dividend of $0.365 per share, $1.46 per share on an annual basis, on the company's common stock. The dividend will be payable on Dec. 1, 2022, to stockholders of record on Nov. 7, 2022.
VIDEO: Daily Dividend Report: CIO,TXN,KR,ABT,INTC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: CIO,TXN,KR,ABT,INTC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The board of directors also authorized the company to repurchase an additional $15 billion of its common stock over time. The Kroger's Board of Directors today declared a quarterly dividend of 26 cents per share to be paid on December 1, 2022, to shareholders of record as of the close of business on November 15, 2022. | VIDEO: Daily Dividend Report: CIO,TXN,KR,ABT,INTC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Kroger's Board of Directors today declared a quarterly dividend of 26 cents per share to be paid on December 1, 2022, to shareholders of record as of the close of business on November 15, 2022. The board of directors of Abbott today declared a quarterly common dividend of 47 cents per share. | VIDEO: Daily Dividend Report: CIO,TXN,KR,ABT,INTC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. City Office REIT announced today that its Board of Directors has authorized a quarterly dividend amount of $0.20 per share of common stock and common unit of partnership interest for the third quarter of 2022. Abbott has increased its dividend payout for 50 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years. | VIDEO: Daily Dividend Report: CIO,TXN,KR,ABT,INTC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The board of directors of Abbott today declared a quarterly common dividend of 47 cents per share. The cash dividend is payable Nov. 15, 2022, to shareholders of record at the close of business on Oct. 14, 2022. |
31436.0 | 2022-09-16 00:00:00 UTC | Top Stock Reports for Alphabet, JPMorgan & Coca-Cola | ABT | https://www.nasdaq.com/articles/top-stock-reports-for-alphabet-jpmorgan-coca-cola | nan | nan | Friday, September 16, 2022
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 Alphabet Inc. (GOOGL), JPMorgan Chase & Co. (JPM) and The Coca-Cola Company (KO). 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 >>>
Alphabet shares have gained +38.4% over the past two years against the Zacks Internet - Services industry’s gain of +24.7%. The company’s expanding data centers will continue to bolster its presence in the cloud space. For 2022, we expect Google Cloud revenue to grow 8.4% from 2021. Further, major updates in its search segment are enhancing the search results.
Moreover, Google’s mobile search is gaining solid momentum. For 2022, we anticipate Google Search revenue to be up 11% from the last year. Also, strong focus on innovation of AI techniques and the home automation space should continue aiding Alphabet’s business growth in the days ahead.
Its deepening focus on the wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well. Considering the aforesaid factors, we expect 2022 total revenue to grow 10.3% from 2021.
(You can read the full research report on Alphabet here >>>)
JPMorgan Chase shares have declined -23.7% over the past year against the Zacks Banks - Major Regional industry’s decline of -14.0%. The volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. Our estimates for non-interest income (managed) indicate a decline almost 15%.
Moreover, steadily rising operating expenses remains a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.
Nevertheless, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). The Zacks estimate for NII (managed) suggest a CAGR of around 19% over the next three years Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep driving the company’s financials.
(You can read the full research report on JPMorgan here >>>)
Coca-Cola shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+13.0% vs. +6.1%). The company’s top and bottom lines surpassed estimates for the sixth straight quarter. The company’s results reflect elasticity in the marketplace despite the ongoing global challenges. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales.
Coca-Cola benefited from underlying share gains in both at-home and away-from-home channels. It raised the organic revenues and comparable earnings per share growth guidance for 2022. It is poised to gain from innovations and accelerating digital investments.
However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spends and currency headwinds are also concerning.
(You can read the full research report on Coca-Cola here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Higher Rates, Buyouts Aid JPMorgan (JPM), Fee Income a Woe
Coca-Cola's (KO) Digital Investments to Aid the Top Line
Featured Reports
Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes
The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. However, unfavorable foreign exchange movements continue to hamper sales results.
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Per the Zacks analyst, Salesforce is benefiting from ongoing digital transformations and adoption of its cloud services. Moreover, strategic acquisitions like Slack and Tableau are positive.
Linde (LIN) Benefits From Advanced Gas Processing Solutions
The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Yet, higher costs of sales are concerning.
Altria (MO) Hurt by Escalated Costs, Solid Pricing a Respite
Per the Zacks analyst, Altria is battling commodity cost inflation, as witnessed in the second quarter. However, solid pricing power has been supporting Altria's adjusted operating companies income.
Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)
Per the Zacks analyst, several acquisitions and partnerships have bolstered the capabilities and global presence of MetLife. Efforts to control costs have been driving its margins.
Debt Management & Regulated investment Aid Exelon (EXC)
Per the Zacks analyst Exelon's debt management initiatives will reduce its capital servicing costs and its planned $29B investments through 2025 will strengthen its operation.
ZTO Express (ZTO) Benefits From Parcel Volumes, Expenses Ail
The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery services unit. However rise in selling, general and administrative expenses continue to bother bottom line
New Upgrades
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Restructuring Actions and Acquisitions Aid Valmont (VMI)
Per the Zacks analyst, cost-savings from restructuring actions will support the company's margins. It should also gain from its efforts to grow through acquisitions.
Robust Equipment, Services Demand to Aid Patterson (PTEN)
Per the Zacks analyst, solid rig activity along with improved demand for land drilling and pressure pumping services offers enhanced prospects for PTEN going forward.
New Downgrades
Low Production, Inflated Costs Hurt Southern Copper (SCCO)
The Zacks analyst is worried that lower production due to the suspension of operations at Cuajone and reduction in ore grades and high fuel, labor and operating costs will hurt the company's results.
Supply Chain Woes & Stiff Competition to Hurt Seagate (STX)
Per the Zacks analyst, pandemic induced supply chain troubles continue to be a major headwind for Seagate. Increasing competition in the disk drive market is an added concern.
Higher Freight Costs Weigh on Spectrum Brands' (SPB) Margins
Per the Zacks analyst, inflationary pressures owing to higher freight and commodity costs, are hurting Spectrum Brands' margins. Management expects inflation of $290-$310 million for fiscal 2022.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
Salesforce Inc. (CRM): Free Stock Analysis Report
CocaCola Company The (KO): Free Stock Analysis Report
Linde plc (LIN): Free Stock Analysis Report
Alphabet Inc. (GOOGL): 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. | (You can read the full research report on Coca-Cola here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Higher Rates, Buyouts Aid JPMorgan (JPM), Fee Income a Woe Coca-Cola's (KO) Digital Investments to Aid the Top Line Featured Reports Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. 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 Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Higher Rates, Buyouts Aid JPMorgan (JPM), Fee Income a Woe Coca-Cola's (KO) Digital Investments to Aid the Top Line Featured Reports Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. (You can read the full research report on Coca-Cola here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN). 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 Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Higher Rates, Buyouts Aid JPMorgan (JPM), Fee Income a Woe Coca-Cola's (KO) Digital Investments to Aid the Top Line Featured Reports Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. (You can read the full research report on Coca-Cola here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN). 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 Alphabet (GOOGL) Benefits From Cloud & Search Initiatives Higher Rates, Buyouts Aid JPMorgan (JPM), Fee Income a Woe Coca-Cola's (KO) Digital Investments to Aid the Top Line Featured Reports Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. (You can read the full research report on Coca-Cola here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN). Abbott Laboratories (ABT): Free Stock Analysis Report |
31437.0 | 2022-09-15 00:00:00 UTC | Should You Buy Baxter Stock Under $60? | ABT | https://www.nasdaq.com/articles/should-you-buy-baxter-stock-under-%2460 | nan | nan | Baxter stock (NYSE: BAX) has seen a 32% fall this year, underperforming the broader S&P500 index, down 17%. Even if we look at the longer term, BAX stock, with -10% returns from levels seen in late 2017, has underperformed the S&P 500 index, up 47%. After the recent fall for Baxter, we believe it now has some room for growth, as discussed below.
This 10% fall for Baxter stock since late 2017 can primarily be attributed to 1. a 33% decline in the company’s P/S ratio to 2.1x trailing revenues currently, compared to 3.1x in 2017, 2. an 11% rise in its total shares outstanding to 504 million, partly offset by 3. Baxter’s revenue rising 34% to $14.2 billion over the last twelve months, compared to $10.6 billion in 2017, The rise in revenue and shares outstanding has meant that Baxter’s revenue per share rose only 20% to $28.16 over the last twelve months, vs. $23.38 in 2017. Our dashboard on Why Baxter Stock Moved has more details.
Baxter’s sales growth over the recent years has been led by increased demand for its advanced surgery products. In December 2021, Baxter completed the Hillrom acquisition, which added connected care offerings, including Smart Beds and patient monitoring products, to Baxter’s existing portfolio of acute, nutritional, renal, hospital, and surgical care products. The Hillrom acquisition is expected to be low double-digit EPS accretive by 2023 and even higher over the subsequent years.
Baxter is seeing its net margins contract with higher inflation resulting in increased raw material costs and supply chain disruption, also weighing on the margin growth. For perspective, the company reported a 56% y-o-y rise in SG&A expenses in the first half of 2022, compared to a 23% rise in total sales. Baxter’s operating margins have declined to 6.4% currently, compared to 11.6% in 2017 and 15.0% in 2019, before the pandemic. Our Baxter Operating Income Comparison dashboard has more details.
Looking at BAX stock, we estimate Baxter’s valuation to be $64 per share, reflecting a 10% upside from its current market price of $58. At its current levels, BAX stock is trading at 1.9x forward expected revenues, compared to the last three-year average of 3.3x, implying that it has more room for growth. That said, we don’t expect a significant upside from its current levels, partly due to the contraction in operating margin. Although the company expects its operating margin to improve over the coming years, it will depend on the integration with Hill-Rom, while it continues to face inflationary headwinds in the near term.
While BAX stock looks like it has more room for growth, it is helpful to see how Baxter’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 Phibro Animal Health vs. Tri Pointe Homes.
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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BAX Return 1% -32% 31%
S&P 500 Return -1% -17% 76%
Trefis Multi-Strategy Portfolio 1% -15% 236%
[1] Month-to-date and year-to-date as of 9/14/2022
[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 10% fall for Baxter stock since late 2017 can primarily be attributed to 1. a 33% decline in the company’s P/S ratio to 2.1x trailing revenues currently, compared to 3.1x in 2017, 2. an 11% rise in its total shares outstanding to 504 million, partly offset by 3. At its current levels, BAX stock is trading at 1.9x forward expected revenues, compared to the last three-year average of 3.3x, implying that it has more room for growth. Although the company expects its operating margin to improve over the coming years, it will depend on the integration with Hill-Rom, while it continues to face inflationary headwinds in the near term. | Baxter’s revenue rising 34% to $14.2 billion over the last twelve months, compared to $10.6 billion in 2017, The rise in revenue and shares outstanding has meant that Baxter’s revenue per share rose only 20% to $28.16 over the last twelve months, vs. $23.38 in 2017. Looking at BAX stock, we estimate Baxter’s valuation to be $64 per share, reflecting a 10% upside from its current market price of $58. At its current levels, BAX stock is trading at 1.9x forward expected revenues, compared to the last three-year average of 3.3x, implying that it has more room for growth. | This 10% fall for Baxter stock since late 2017 can primarily be attributed to 1. a 33% decline in the company’s P/S ratio to 2.1x trailing revenues currently, compared to 3.1x in 2017, 2. an 11% rise in its total shares outstanding to 504 million, partly offset by 3. Baxter’s revenue rising 34% to $14.2 billion over the last twelve months, compared to $10.6 billion in 2017, The rise in revenue and shares outstanding has meant that Baxter’s revenue per share rose only 20% to $28.16 over the last twelve months, vs. $23.38 in 2017. Total [2] BAX Return 1% -32% 31% S&P 500 Return -1% -17% 76% Trefis Multi-Strategy Portfolio 1% -15% 236% [1] Month-to-date and year-to-date as of 9/14/2022 [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. | Baxter’s operating margins have declined to 6.4% currently, compared to 11.6% in 2017 and 15.0% in 2019, before the pandemic. Looking at BAX stock, we estimate Baxter’s valuation to be $64 per share, reflecting a 10% upside from its current market price of $58. Total [2] BAX Return 1% -32% 31% S&P 500 Return -1% -17% 76% Trefis Multi-Strategy Portfolio 1% -15% 236% [1] Month-to-date and year-to-date as of 9/14/2022 [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. |
31438.0 | 2022-09-15 00:00:00 UTC | This Healthcare Company Is Likely To Offer Better Returns Over Eli Lilly Stock | ABT | https://www.nasdaq.com/articles/this-healthcare-company-is-likely-to-offer-better-returns-over-eli-lilly-stock | nan | nan | We believe that Becton Dickinson stock (NYSE: BDX) is currently a better pick than Eli Lilly stock (NYSE: LLY), given its better prospects. Although BDX stock is trading at a comparatively lower valuation of 3.6x trailing revenues, compared to 10.0x for LLY, this gap in valuation, to a large extent, makes sense, given Eli Lilly’s superior revenue growth, profitability, and lower financial risk, as discussed below.
Looking at stock returns, Eli Lilly, with an 11% rise this year, has fared better than Becton Dickinson stock, which is up 2%, and both have outperformed the broader S&P500 index, down 17% over this period. There is more to the comparison, and in the sections below, we discuss why we believe BDX stock will offer better returns than LLY 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 Eli Lilly vs. Becton Dickinson: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Eli Lilly’s Revenue Growth Is Better
Both companies posted sales growth over the last twelve months. Still, Eli Lilly’s revenue growth of 8.8% is higher than 5.1% for Becton Dickinson.
Even if we look at a longer time frame, Eli Lilly has fared better, with its sales rising at an average annual rate of 9.7% to $28.3 billion in 2021, compared to $21.5 billion in 2018, while Becton Dickinson’s sales grew at an average rate of 8.5% to $20.2 billion in 2021, compared to around $16.0 billion in 2018.
Eli Lilly’s revenue growth has been driven by continued market share gains for drugs, such as Trulicity, Verzenio, Jardiance, and its Covid-19 antibodies. The company recently secured U.S. FDA approval for its diabetes drug – Tirzepatide – which is expected to garner over $5 billion in peak sales.
Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion.
Becton Dickinson’s revenue growth over the recent past has been aided by its Covid-19 diagnostic tests and the increased demand for its medical delivery solutions and pharmaceuticals systems, primarily pre-filled devices. Earlier this year, the company completed the spin-off of its diabetes business, which is now listed as a separate entity – Embecta (NASDAQ: EMBC) – on the Nasdaq stock exchange.
Our Eli Lilly Revenue and Becton Dickinson Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Becton Dickinson is expected to post better sales growth.
The table below summarizes our revenue expectation for both companies over the next three years and points to a CAGR of 2.1% for Eli Lilly, compared to a CAGR of 9.2% for Becton Dickinson.
Note that we have different methodologies for companies negatively impacted by Covid and those 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 predict 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. Eli Lilly Is More Profitable, And It Offers Lower Risk
Eli Lilly’s operating margin of 24.5% over the last twelve-month period is better than 16.2% for Becton Dickinson.
This compares with 21.8% and 13.9% figures seen in 2019, before the pandemic, respectively.
Eli Lilly’s free cash flow margin of 24.4% is also better than 13.9% for Becton Dickinson.
Our Eli Lilly Operating Income and Becton Dickinson Operating Income dashboards have more details.
Looking at financial risk, Eli Lilly fares better. Its 6.1% debt as a percentage of equity is lower than 20.9% for Becton Dickinson, while its 5.8% cash as a percentage of assets is higher than 4.8% for the latter, implying that Eli Lilly has a better debt position and has more cash cushion.
3. The Net of It All
We see that Eli Lilly has demonstrated better revenue growth, is more profitable, and offers lower financial risk. On the other hand, Becton Dickinson 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 Becton Dickinson is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Eli Lilly and Becton Dickinson over the next three years and points to an expected return of -7% for Eli Lilly over this period vs. a 28% expected return for Becton Dickinson, implying that investors are better off buying BDX over LLY, based on Trefis Machine Learning analysis –Eli Lilly vs. Becton Dickinson – which also provides more details on how we arrive at these numbers.
While BDX stock may outperform LLY, it is helpful to see how Eli Lilly’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 Teleflex vs. Amerco.
Despite higher inflation and the Fed raising interest rates, LLY stock has seen an 11% rise this year. But can it drop from here? See how low Eli Lilly 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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
LLY Return 2% 11% 317%
BDX Return 2% 2% 55%
S&P 500 Return -1% -17% 76%
Trefis Multi-Strategy Portfolio 1% -15% 236%
[1] Month-to-date and year-to-date as of 9/14/2022
[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. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Eli Lilly vs. Becton Dickinson: Which Stock Is A Better Bet? Eli Lilly has a robust product cycle, including Alzheimer’s treatment – Donanemab – one of the most anticipated drugs with peak sales pegged as high as $10 billion. Becton Dickinson’s revenue growth over the recent past has been aided by its Covid-19 diagnostic tests and the increased demand for its medical delivery solutions and pharmaceuticals systems, primarily pre-filled devices. | Even if we look at a longer time frame, Eli Lilly has fared better, with its sales rising at an average annual rate of 9.7% to $28.3 billion in 2021, compared to $21.5 billion in 2018, while Becton Dickinson’s sales grew at an average rate of 8.5% to $20.2 billion in 2021, compared to around $16.0 billion in 2018. Our Eli Lilly Operating Income and Becton Dickinson Operating Income dashboards have more details. Total [2] LLY Return 2% 11% 317% BDX Return 2% 2% 55% S&P 500 Return -1% -17% 76% Trefis Multi-Strategy Portfolio 1% -15% 236% [1] Month-to-date and year-to-date as of 9/14/2022 [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 BDX stock is trading at a comparatively lower valuation of 3.6x trailing revenues, compared to 10.0x for LLY, this gap in valuation, to a large extent, makes sense, given Eli Lilly’s superior revenue growth, profitability, and lower financial risk, as discussed below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Eli Lilly vs. Becton Dickinson: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for Eli Lilly and Becton Dickinson over the next three years and points to an expected return of -7% for Eli Lilly over this period vs. a 28% expected return for Becton Dickinson, implying that investors are better off buying BDX over LLY, based on Trefis Machine Learning analysis –Eli Lilly vs. Becton Dickinson – which also provides more details on how we arrive at these numbers. | Although BDX stock is trading at a comparatively lower valuation of 3.6x trailing revenues, compared to 10.0x for LLY, this gap in valuation, to a large extent, makes sense, given Eli Lilly’s superior revenue growth, profitability, and lower financial risk, as discussed below. Still, Eli Lilly’s revenue growth of 8.8% is higher than 5.1% for Becton Dickinson. The table below summarizes our revenue and return expectations for Eli Lilly and Becton Dickinson over the next three years and points to an expected return of -7% for Eli Lilly over this period vs. a 28% expected return for Becton Dickinson, implying that investors are better off buying BDX over LLY, based on Trefis Machine Learning analysis –Eli Lilly vs. Becton Dickinson – which also provides more details on how we arrive at these numbers. |
31439.0 | 2022-09-15 00:00:00 UTC | 7 Top-Rated Biotech Stocks to Buy for Q4 | ABT | https://www.nasdaq.com/articles/7-top-rated-biotech-stocks-to-buy-for-q4 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A new White House program will likely boost the entire biotech industry. And it makes these seven names some outstanding biotech stocks to buy for the fourth quarter.
The new National Biotechnology and Biomanufacturing Initiative is designed to encourage biotech production in the U.S. An executive order signed by President Joe Biden on Sept. 12, was followed by a White House summit featuring Cabinet-level initiatives that will increase the nation’s biotech and biomanufacturing capabilities.
This week’s announcements come on the heels of Biden’s pledge to cure cancer. Clearly, biotech companies are going to be getting a lot of government support in the coming quarters.
What’s the best way to capitalize on this opportunity and maximize your profits? One way is to run biotech stocks through the Portfolio Grader, which is my tool to evaluate stocks on an “A” through “F” scale, based on the stock’s earnings, momentum and performance, among other factors.
Here are seven biotech stocks to buy for Q4 as the White House leans in hard on the biotech industry.
ADMA Biologics (ADMA)
Source: Gorodenkoff / Shutterstock.com
ADMA Biologics (NASDAQ:ADMA) is an end-to-end commercial biopharmaceutical company with offices in New Jersey and Florida. The company made waves in 2020 during the early months of the Covid-19 pandemic as its convalescent plasma won emergency use authorization to treat Covid-19 patients.
And while ADMA is a penny stock, it’s still showing impressive growth this year, up by more than 90% making it one of the hit biotech stocks to keep your eyes on.
Earnings in the second quarter were up by more than 90% from a year ago, to hit $33.91 million. That beat analysts’ expectations for $31.81 million. Earnings per share also were better than expected – the company reported a loss of 7 cents per share, but the Street was expecting a loss of 8 cents per share.
ADMA is known for its plasma-derived treatments for patients with compromised immune systems, and it also won approval from the FDA last year for an expanded manufacturing process to increase production of its Intravenous Immune Globulin (IVIG).
With strong earnings and momentum firmly on its side, ADMA stock has an “A” rating in the Portfolio Grader.
Geron (GERN)
Source: everything possible / Shutterstock.com
Geron (NASDAQ:GERN) is a biopharmaceutical company that specializes in the development of a telomerase inhibitor, imetelstat, in hematologic myeloid malignancies. It uses advanced technologies to exploit cancer cells’ dependency on telomerase, which is a type of ribonucleoprotein.
It currently is working through two Phase 3 clinical trials: one in low or intermediate-1 risk myelodysplastic syndromes, or lower risk MDS, and the other for intermediate or high-risk myelofibrosis, or refractory MF.
The California-based company is having even a better year than ADMA, with GERN stock up more than 134%. But while the stock price is rocketing higher, the company doesn’t quite match ADMA’s performance. Revenue of $73,000 in the second quarter was down nearly 32% from a year ago, and came in below analysts’ expectations for $114,600. A loss of 7 cents per share was 2 cents better than analysts predicted.
GERN stock also gets an “A” rating in the Portfolio Grader.
Prometheus Biosciences (RXDX)
Source: Hernan E. Schmidt / Shutterstock.com
After looking at two penny stocks, now we’re getting to one that’s a little more established, with a market capitalization of more than $2 billion.
Based in San Diego, Prometheus Biosciences (NASDAQ:RXDX) is a biotech company its mark targeting gastrointestinal diseases and now is expanding to treat autoimmune diseases. The company went public a little more than a year ago, pricing its stock at $19. Today you can get it for about $57.
Earnings for the second quarter showed how fast the company is growing. Revenue of $1.27 million was 289% greater than a year ago, and beat analysts’ expectations for $464,000. The company loss 86 cents per share, but that still beat expectations by 6 cents per share.
With the amazing growth in RXDX since its IPO, it’s no surprise that Prometheus Biosciences has an “A” rating in the Portfolio Grader.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). The Illinois-based company boasts a diversified product portfolio, despite having losing exclusivity for its Humira rheumatoid arthritis drug.
Earnings of $14.58 billion in the second quarter came in slightly less than the $14.64 billion that analysts expected. EPS of $3.37, however, was better than the Street’s expectation for $3.31.
Analysts are expecting AbbVie’s Skyrizi and Rinvoq drugs to replace Humira’s revenue, as the two drugs are collectively expected to generate more than $15 billion in annual revenue by 2025. That would be better than Humira at its peak. Skyrizi is used for moderate-to-severe plaque psoriasis as well as psoriatic arthritis, while Rinvoq is for severe rheumatoid arthritis.
ABBV stock is up only 3% so far this year, but that’s still much better than the major indices, and it also boasts a dividend yield of 4%. So it warrants an “A” rating in the Portfolio Grader.
Voyager Therapeutics (VYGR)
Source: luchschenF / Shutterstock.com
There’s a lot of brainpower in Cambridge, Massachusetts, where gene therapy company Voyager Therapeutics (NASDAQ:VYGR) is headquartered. The company’s Tracer platform identifies way to target tissues and cells with more specificity and at lower doses – and hopefully, with reduced risk than conventional treatments.
The company recently announced its top development priorities include treatments for Parkinson’s disease, amyotrophic lateral sclerosis (ALS), and Alzheimer’s disease.
The stock is up 143% so far this year, even after a 7% drop since announcing its second quarter earnings. Revenue of $712,000 was far below the $6.03 million that analysts expected. The loss of 50 cents per share worse than what analysts predicted, which was an EPS loss of 42 cents.
Even so, there’s still a lot to like about Voyager, and it has a “B” rating in the Portfolio Grader.
SIGA Technologies (SIGA)
Source: Shutterstock
SIGA Technologies (NASDAQ:SIGA) is one of the biotech companies working on the monkeypox outbreak, which so far has affected more than 22,700 people in the U.S.
SIGA’s monkeypox treatment is called TPOXX. SIGA CEO Phil Gomez says the company is prepared to increase production to meet the demand in the U.S. and elsewhere. TPOXX is also part of an experimental treatment protocol in the Central African Republic, CAR. SIGA is providing up to 500 doses to the study, sponsored by Oxford University in the U.K.
Earnings for the second quarter included revenue of $16.67 million, up from $8.7 million a year ago.
SIGA stock is up 75% so far this year and has an “A” rating in the Portfolio Grader.
Axsome Therapeutics (AXSM)
Source: Pavel Kapysh/Shutterstock.com
Axsome Therapeutics (NASDAQ:AXSM) focuses on treatments for the central nervous system, including depression, Alzheimer’s disease, migraine, narcolepsy and fibromyalgia. It bought Sunosi, which treats daytime sleepiness, from Jazz Pharmaceuticals (NASDAQ:JAZZ) in May.
Earnings in the second quarter came in better than expected, with revenue of $8.82 million and a loss per share of $1.06 better than analysts’ predictions of $8.29 and a loss per share of $1.12.
Axsome stock has had a big year, up more than 63%. Combined with its earnings win and the Biden administration’s focus on biotechs, AXSM stock is worthy of its “B” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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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. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). The company made waves in 2020 during the early months of the Covid-19 pandemic as its convalescent plasma won emergency use authorization to treat Covid-19 patients. The company’s Tracer platform identifies way to target tissues and cells with more specificity and at lower doses – and hopefully, with reduced risk than conventional treatments. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). ADMA Biologics (ADMA) Source: Gorodenkoff / Shutterstock.com ADMA Biologics (NASDAQ:ADMA) is an end-to-end commercial biopharmaceutical company with offices in New Jersey and Florida. SIGA Technologies (SIGA) Source: Shutterstock SIGA Technologies (NASDAQ:SIGA) is one of the biotech companies working on the monkeypox outbreak, which so far has affected more than 22,700 people in the U.S. SIGA’s monkeypox treatment is called TPOXX. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). One way is to run biotech stocks through the Portfolio Grader, which is my tool to evaluate stocks on an “A” through “F” scale, based on the stock’s earnings, momentum and performance, among other factors. Earnings per share also were better than expected – the company reported a loss of 7 cents per share, but the Street was expecting a loss of 8 cents per share. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:ABBV) is one of the best-known biotech stocks in the U.S., after having spun off from Abbott Laboratories (NYSE:ABT). And while ADMA is a penny stock, it’s still showing impressive growth this year, up by more than 90% making it one of the hit biotech stocks to keep your eyes on. The stock is up 143% so far this year, even after a 7% drop since announcing its second quarter earnings. |
31440.0 | 2022-09-15 00:00:00 UTC | Do Options Traders Know Something About Abbott (ABT) Stock We Don't? | ABT | https://www.nasdaq.com/articles/do-options-traders-know-something-about-abbott-abt-stock-we-dont | nan | nan | Investors in Abbott Laboratories ABT need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 16, 2022 $85.00 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 32% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while six analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 96 cents per share to 89 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 Laboratories 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. | Abbott Laboratories (ABT): Free Stock Analysis Report Investors in Abbott Laboratories ABT need to pay close attention to the stock based on moves in the options market lately. 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 Laboratories 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 Laboratories ABT need to pay close attention to the stock based on moves in the options market lately. Abbott Laboratories (ABT): Free Stock Analysis Report However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. |
31441.0 | 2022-09-14 00:00:00 UTC | Where to Invest $5,000 Right Now | ABT | https://www.nasdaq.com/articles/where-to-invest-%245000-right-now | nan | nan | Given the extreme volatility the market has seen this year, you might be wondering whether it's still the right time to invest in the stock market. The short answer is, it depends. If you're struggling to put money toward your nest egg and/or your emergency fund, it might be wise to work on shoring up those areas before you invest more cash in stocks.
On the other hand, if you have cash to invest that you don't expect you'll need soon, it's always an opportune time to invest in great stocks, and the current market environment is no exception. When you have a minimum investment horizon of three to five years for any stock you buy, recent market events shouldn't deter you from continuing to build your portfolio.
On that note, if you have $5,000 to invest in the stock market right now, here are two fantastic stocks to consider.
1. Abbott Labs
Healthcare stocks are a wise place to park your cash in any market, bull or bear. Abbott Laboratories (NYSE: ABT) is one of my favorites for a few reasons. The company boasts an incredibly diversified portfolio featuring a broad selection of therapies, products, and devices that people need at any given point in time, regardless of what's happening with the market or economy at large.
These include a robust lineup of branded generic medicines targeting everything from bowel to respiratory to nervous system disorders, as well as household name nutrition products like Ensure and Pedialyte, and cardiovascular devices like surgical valves and pacemakers. Abbott is also a leader in diabetes care with its continuous glucose monitoring system FreeStyle Libre, the third version of which was recently cleared by the FDA. Sales of the company's FreeStyle Libre systems surged 25% in the most recent quarter alone.
The fact that Abbott has a foothold in so many sectors of the healthcare industry gives it a distinct competitive edge and has helped it continue to generate impressive financials. In the most recent quarter, Abbott reported overall organic sales growth of 14% year over year, along with net earnings up 70% from the year-ago period.
Another reason to consider Abbott if you're looking for ways to generate passive income is its long-standing tradition of paying and raising its dividend. The company has boosted its dividend every year for 50 years and counting, which makes it a Dividend King, with a current yield of 1.7%.
2. Trupanion
According to a study by the Information Insurance Institute, roughly 70% of families in the U.S. own a pet, which comes to about 91 million households. Meanwhile, the same study showed that just 3.9 million pets were insured as of 2021. Bear in mind, these numbers only encompass the U.S. alone. The pet insurance market is a multi-billion dollar industry, set to witness growth of nearly 17% CAGR between 2022 and 2030. What does this all boil down to? A fast-growing market that is considerably underpenetrated.
That's great news for Trupanion (NASDAQ: TRUP), one of the leading pet insurance providers in the world. Trupanion offers coverage for pets across North America, Australia, and Puerto Rico. The company has become a mainstay for pet owners, reimbursing 90% of covered veterinary costs with no payout limits for insured cats and dogs, including everything from sudden injuries or illnesses to breed-specific conditions.
Trupanion's proprietary software reimburses vets directly to make the process more seamless for pet owners, and all coverage is provided under the single plan that Trupanion offers, with premiums billed as a monthly subscription.
Trupanion's highly sticky business model has allowed it to post 20% or more revenue growth for 59 quarters straight. As of the last quarter, the company reported 1.3 million enrolled pets and a 98.7% monthly customer retention rate. In the most recent quarter, revenue actually jumped 30% year over year, while total enrolled pets climbed 32%.
In my opinion, Trupanion's robust foothold in the pet insurance space, its strong customer loyalty, and the still highly untapped market in which it operates are all excellent reasons to consider this stock as a long-term investment.
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Trupanion. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is one of my favorites for a few reasons. These include a robust lineup of branded generic medicines targeting everything from bowel to respiratory to nervous system disorders, as well as household name nutrition products like Ensure and Pedialyte, and cardiovascular devices like surgical valves and pacemakers. The company has become a mainstay for pet owners, reimbursing 90% of covered veterinary costs with no payout limits for insured cats and dogs, including everything from sudden injuries or illnesses to breed-specific conditions. | Abbott Laboratories (NYSE: ABT) is one of my favorites for a few reasons. In the most recent quarter, Abbott reported overall organic sales growth of 14% year over year, along with net earnings up 70% from the year-ago period. As of the last quarter, the company reported 1.3 million enrolled pets and a 98.7% monthly customer retention rate. | Abbott Laboratories (NYSE: ABT) is one of my favorites for a few reasons. Given the extreme volatility the market has seen this year, you might be wondering whether it's still the right time to invest in the stock market. On that note, if you have $5,000 to invest in the stock market right now, here are two fantastic stocks to consider. | Abbott Laboratories (NYSE: ABT) is one of my favorites for a few reasons. Given the extreme volatility the market has seen this year, you might be wondering whether it's still the right time to invest in the stock market. On that note, if you have $5,000 to invest in the stock market right now, here are two fantastic stocks to consider. |
31442.0 | 2022-09-14 00:00:00 UTC | Should You Invest in the iShares U.S. Medical Devices ETF (IHI)? | ABT | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-medical-devices-etf-ihi-2 | nan | nan | Designed to provide broad exposure to the Healthcare - Medical Devices segment of the equity market, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded fund launched on 05/01/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.48 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. IHI seeks to match the performance of the Dow Jones U.S. Select Medical Equipment Index before fees and expenses.
The Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.31%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT).
The top 10 holdings account for about 71.55% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Medical Devices ETF has lost about -19.95% so far, and is down about -19.39% over the last 12 months (as of 09/14/2022). IHI has traded between $47.65 and $66.41 in this past 52-week period.
The ETF has a beta of 0.89 and standard deviation of 24.97% for the trailing three-year period, making it a medium risk choice in the space. With about 70 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Medical Devices ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IHI is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. First Trust Indxx Medical Devices ETF has $1.91 million in assets, SPDR S&P Health Care Equipment ETF has $430.76 million. MDEV has an expense ratio of 0.70% and XHE charges 0.35%.
Bottom Line
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iShares U.S. Medical Devices ETF (IHI): ETF Research Reports
Abbott Laboratories (ABT): Free Stock Analysis Report
Medtronic PLC (MDT): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports
First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report It has amassed assets over $6.48 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report Designed to provide broad exposure to the Healthcare - Medical Devices segment of the equity market, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded fund launched on 05/01/2006. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. |
31443.0 | 2022-09-13 00:00:00 UTC | What's Happening With Cardinal Health Stock? | ABT | https://www.nasdaq.com/articles/whats-happening-with-cardinal-health-stock | nan | nan | Cardinal Health stock (NYSE: CAH) has seen a significant 36% rise this year, outperforming the broader S&P500 index, which is down 15%. However, in the longer term, CAH stock, with 14% returns from levels seen in late 2017, has underperformed the S&P 500 index, up 52%. After the sharp rise for Cardinal, we believe it is fully priced now, as discussed below.
This 14% rise for CAH stock since late 2017 can primarily be attributed to 1. Cardinal Health’s revenue rising 33% to $181 billion over the last twelve months, compared to $137 billion in 2017, 2. a 6% fall in its total shares outstanding to 294 million, partly offset by 3. a 7% decline in the company’s P/S ratio to 0.1x trailing revenues currently. The rise in revenue and a decrease in shares outstanding has meant that Cardinal’s revenue per share rose 41% to $618 over the last twelve months, vs. $438 in 2017. Our dashboard on Why Cardinal Health Stock Moved has more details.
Cardinal’s sales growth over the recent years has been driven by its pharmaceutical distribution business, while its medical segment has seen tepid growth. Cardinal is the second largest pharmaceutical distributor in the U.S. It has been eying acquisitions to enhance its service offerings. However, its investments in medical segments haven’t been very fruitful and weighed on the company’s bottom line growth. Cardinal’s operating margins have declined to -0.3% currently, compared to 1.6% in 2019, before the pandemic. Our Cardinal Health Operating Income Comparison dashboard has more details.
Of late, CAH stock has been in the limelight after activist investor firm Elliott Management Corp confirmed a large position in the company, and Cardinal has agreed to appoint four director nominees to its board. Investors are hoping for value unlocking, and it has sent CAH share price soaring over the last couple of months. However, given the sharp rally in CAH stock, we believe the positives are now priced in. We estimate Cardinal Health’s valuation to be $68, in line with the current market price of $70.
While CAH stock looks fully priced, it is helpful to see how Cardinal Health’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 Phibro Animal Health vs. Tri Pointe Homes.
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 Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAH Return -1% 36% -3%
S&P 500 Return 3% -15% 82%
Trefis Multi-Strategy Portfolio 5% -12% 250%
[1] Month-to-date and year-to-date as of 9/12/2022
[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. | Cardinal Health stock (NYSE: CAH) has seen a significant 36% rise this year, outperforming the broader S&P500 index, which is down 15%. Of late, CAH stock has been in the limelight after activist investor firm Elliott Management Corp confirmed a large position in the company, and Cardinal has agreed to appoint four director nominees to its board. While CAH stock looks fully priced, it is helpful to see how Cardinal Health’s Peers fare on metrics that matter. | Cardinal Health’s revenue rising 33% to $181 billion over the last twelve months, compared to $137 billion in 2017, 2. a 6% fall in its total shares outstanding to 294 million, partly offset by 3. a 7% decline in the company’s P/S ratio to 0.1x trailing revenues currently. Our Cardinal Health Operating Income Comparison dashboard has more details. Total [2] CAH Return -1% 36% -3% S&P 500 Return 3% -15% 82% Trefis Multi-Strategy Portfolio 5% -12% 250% [1] Month-to-date and year-to-date as of 9/12/2022 [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. | Cardinal Health’s revenue rising 33% to $181 billion over the last twelve months, compared to $137 billion in 2017, 2. a 6% fall in its total shares outstanding to 294 million, partly offset by 3. a 7% decline in the company’s P/S ratio to 0.1x trailing revenues currently. While CAH stock looks fully priced, it is helpful to see how Cardinal Health’s Peers fare on metrics that matter. Total [2] CAH Return -1% 36% -3% S&P 500 Return 3% -15% 82% Trefis Multi-Strategy Portfolio 5% -12% 250% [1] Month-to-date and year-to-date as of 9/12/2022 [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. | This 14% rise for CAH stock since late 2017 can primarily be attributed to 1. We estimate Cardinal Health’s valuation to be $68, in line with the current market price of $70. Total [2] CAH Return -1% 36% -3% S&P 500 Return 3% -15% 82% Trefis Multi-Strategy Portfolio 5% -12% 250% [1] Month-to-date and year-to-date as of 9/12/2022 [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. |
31444.0 | 2022-09-12 00:00:00 UTC | 2 Dividend Aristocrats to Buy for Passive Income That Could Outperform the Market | ABT | https://www.nasdaq.com/articles/2-dividend-aristocrats-to-buy-for-passive-income-that-could-outperform-the-market | nan | nan | We've all heard that you shouldn't judge a book by its cover, but income-seeking investors sometimes forget this lesson when it comes to picking stocks. Dividend Aristocrats are stocks in the S&P 500 index with at least 25 consecutive years of payment increases under their belts, and most of them get more attention than they deserve.
Reliable dividend-paying stocks are a great way to generate a passive income. If you're determined to stick with the elite group of Dividend Aristocrats, though, at least stick with ones that have a good chance of outperforming the overall market.
Image source: Getty Images.
This pair of related healthcare companies have been paying and raising their quarterly dividends for five long decades. Best of all, their best days could lie ahead.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate with a hand in diagnostics, medical devices, and nutrition. A diverse collection of businesses helped it increase its dividend payout for the 50th consecutive year last December.
Abbott got a lot of unflattering attention when the closure of one of its baby food manufacturing plants led to a national shortage of specialty formulas. Investors seeking steadily rising payouts will be glad to know the specialty nutrition market isn't the only reliable industry where the company has an advantage.
At recent prices, Abbott shares offer a 1.7% yield. That isn't too enticing now, but its payout could grow by leaps and bounds over the next several years. In May, the FDA cleared Abbott's next-generation constant glucose monitoring (CGM) device.
The tiny Freestyle Libre 3 is smaller than CGMs from its nearest competitor, the G7 from Dexcom. Abbott's device also has a head start. The FDA still hasn't cleared the G7 and it isn't expected to begin a U.S. launch until 2023.
With more than one reliable revenue stream Abbott has been able to raise its payout by 77% over the past five years, and it could start growing even faster. The U.S. Centers for Disease Control think there are more than 37 million Americans with diabetes right now, and Abbott has what could be the leading CGM for the foreseeable future.
2. AbbVie
AbbVie (NYSE: ABBV) was spun off from Abbott Laboratories in 2013 to shield Abbott's shareholders from the impending end of market exclusivity for the world's top-selling anti-inflammatory drug, Humira. Sales of Humira plus a growing roster of younger drugs have helped the company raise its payout a stunning 120% over the past five years.
Now, AbbVie shares offer an above-average dividend yield of 4% because investors are worried the company's bottom line can't keep growing. In the U.S. this spring, Humira began competing with lower-cost biosimilar versions, and sales will most likely drop significantly in the second half of the year.
U.S. sales of Humira that reached $4.7 billion in the second quarter were responsible for 32% of total revenue. Luckily, AbbVie has new drugs that could more than offset the losses. In 2019, the FDA approved Skyrizi, a psoriasis injection, and Rinvoq, an arthritis drug. This pair is on pace to record $7.3 billion in combined sales this year, and AbbVie thinks they can pass $15 billion in 2025.
U.S. Humira sales that drop faster than AbbVie's younger product lineup could make growth hard to achieve over the next year or two. Investors who appreciate steady dividend raises will be glad to know the company can meet and raise its payout even if Humira sales start plummeting.
Over the past year, AbbVie used just 43.5% of the free cash flow its operations generated to meet its dividend obligation. With a well-funded dividend program and new growth drivers to fill in for Humira's impending losses, this stock has a good chance of outperforming over the long run.
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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 a diversified healthcare conglomerate with a hand in diagnostics, medical devices, and nutrition. Investors seeking steadily rising payouts will be glad to know the specialty nutrition market isn't the only reliable industry where the company has an advantage. Now, AbbVie shares offer an above-average dividend yield of 4% because investors are worried the company's bottom line can't keep growing. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate with a hand in diagnostics, medical devices, and nutrition. Investors who appreciate steady dividend raises will be glad to know the company can meet and raise its payout even if Humira sales start plummeting. With a well-funded dividend program and new growth drivers to fill in for Humira's impending losses, this stock has a good chance of outperforming over the long run. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate with a hand in diagnostics, medical devices, and nutrition. AbbVie AbbVie (NYSE: ABBV) was spun off from Abbott Laboratories in 2013 to shield Abbott's shareholders from the impending end of market exclusivity for the world's top-selling anti-inflammatory drug, Humira. Sales of Humira plus a growing roster of younger drugs have helped the company raise its payout a stunning 120% over the past five years. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified healthcare conglomerate with a hand in diagnostics, medical devices, and nutrition. With more than one reliable revenue stream Abbott has been able to raise its payout by 77% over the past five years, and it could start growing even faster. Sales of Humira plus a growing roster of younger drugs have helped the company raise its payout a stunning 120% over the past five years. |
31445.0 | 2022-09-12 00:00:00 UTC | A Look At The Intrinsic Value Of Abbott Laboratories (NYSE:ABT) | ABT | https://www.nasdaq.com/articles/a-look-at-the-intrinsic-value-of-abbott-laboratories-nyse%3Aabt | nan | nan | Today we will run through one way of estimating the intrinsic value of Abbott Laboratories (NYSE:ABT) by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
Step By Step Through The Calculation
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) forecast
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Levered FCF ($, Millions) US$8.70b US$8.99b US$9.22b US$9.64b US$9.92b US$10.2b US$10.4b US$10.7b US$10.9b US$11.1b
Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x1 Analyst x1 Est @ 2.93% Est @ 2.63% Est @ 2.42% Est @ 2.28% Est @ 2.18% Est @ 2.11%
Present Value ($, Millions) Discounted @ 5.9% US$8.2k US$8.0k US$7.8k US$7.7k US$7.4k US$7.2k US$7.0k US$6.7k US$6.5k US$6.3k
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$73b
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 5.9%.
Terminal Value (TV)= FCF2032 × (1 + g) ÷ (r – g) = US$11b× (1 + 1.9%) ÷ (5.9%– 1.9%) = US$284b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$284b÷ ( 1 + 5.9%)10= US$160b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$232b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$108, the company appears about fair value at a 18% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
NYSE:ABT Discounted Cash Flow September 12th 2022
The Assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Abbott Laboratories as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.9%, which is based on a levered beta of 0.942. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Abbott Laboratories, we've put together three relevant elements you should explore:
Risks: Case in point, we've spotted 2 warning signs for Abbott Laboratories you should be aware of.
Future Earnings: How does ABT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
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. | Today we will run through one way of estimating the intrinsic value of Abbott Laboratories (NYSE:ABT) by estimating the company's future cash flows and discounting them to their present value. NYSE:ABT Discounted Cash Flow September 12th 2022 The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does ABT's growth rate compare to its peers and the wider market? | Today we will run through one way of estimating the intrinsic value of Abbott Laboratories (NYSE:ABT) by estimating the company's future cash flows and discounting them to their present value. NYSE:ABT Discounted Cash Flow September 12th 2022 The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does ABT's growth rate compare to its peers and the wider market? | NYSE:ABT Discounted Cash Flow September 12th 2022 The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Today we will run through one way of estimating the intrinsic value of Abbott Laboratories (NYSE:ABT) by estimating the company's future cash flows and discounting them to their present value. Future Earnings: How does ABT's growth rate compare to its peers and the wider market? | Today we will run through one way of estimating the intrinsic value of Abbott Laboratories (NYSE:ABT) by estimating the company's future cash flows and discounting them to their present value. NYSE:ABT Discounted Cash Flow September 12th 2022 The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Future Earnings: How does ABT's growth rate compare to its peers and the wider market? |
31446.0 | 2022-09-12 00:00:00 UTC | Abbott (ABT) Gains But Lags Market: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-but-lags-market%3A-what-you-should-know-9 | nan | nan | Abbott (ABT) closed the most recent trading day at $109.29, moving +0.75% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 2.69% in the past month. In that same time, the Medical sector lost 1.69%, while the S&P 500 lost 1.14%.
Abbott will be looking to display strength as it nears its next earnings release. In that report, analysts expect Abbott to post earnings of $0.89 per share. This would mark a year-over-year decline of 36.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.57 billion, down 12.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.39 billion. These totals would mark changes of -4.22% and -1.59%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Abbott is holding a Forward P/E ratio of 21.75. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.75.
Meanwhile, ABT's PEG ratio is currently 4.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 2.15 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $109.29, moving +0.75% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 4.02. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $109.29, moving +0.75% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 4.02. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $109.29, moving +0.75% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 4.02. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $109.29, moving +0.75% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 4.02. Abbott Laboratories (ABT): Free Stock Analysis Report |
31447.0 | 2022-09-12 00:00:00 UTC | SPYG, DHR, NFLX, ABT: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/spyg-dhr-nflx-abt%3A-etf-outflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $166.8 million dollar outflow -- that's a 1.1% decrease week over week (from 261,450,000 to 258,550,000). Among the largest underlying components of SPYG, in trading today Danaher Corp (Symbol: DHR) is up about 1%, Netflix Inc (Symbol: NFLX) is up about 0.9%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.8%. 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 $50.01 per share, with $73.64 as the 52 week high point — that compares with a last trade of $58.22. 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 »
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 Danaher Corp (Symbol: DHR) is up about 1%, Netflix Inc (Symbol: NFLX) is up about 0.9%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.8%. 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 $50.01 per share, with $73.64 as the 52 week high point — that compares with a last trade of $58.22. 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 Danaher Corp (Symbol: DHR) is up about 1%, Netflix Inc (Symbol: NFLX) is up about 0.9%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.8%. 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 $50.01 per share, with $73.64 as the 52 week high point — that compares with a last trade of $58.22. 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 SPYG, in trading today Danaher Corp (Symbol: DHR) is up about 1%, Netflix Inc (Symbol: NFLX) is up about 0.9%, and Abbott Laboratories (Symbol: ABT) is higher 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 Growth ETF (Symbol: SPYG) where we have detected an approximate $166.8 million dollar outflow -- that's a 1.1% decrease week over week (from 261,450,000 to 258,550,000). 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 $50.01 per share, with $73.64 as the 52 week high point — that compares with a last trade of $58.22. | Among the largest underlying components of SPYG, in trading today Danaher Corp (Symbol: DHR) is up about 1%, Netflix Inc (Symbol: NFLX) is up about 0.9%, and Abbott Laboratories (Symbol: ABT) is higher 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 Growth ETF (Symbol: SPYG) where we have detected an approximate $166.8 million dollar outflow -- that's a 1.1% decrease week over week (from 261,450,000 to 258,550,000). 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 $50.01 per share, with $73.64 as the 52 week high point — that compares with a last trade of $58.22. |
31448.0 | 2022-09-12 00:00:00 UTC | Nestle's Gerber CEO sees formula shortage improving by October | ABT | https://www.nasdaq.com/articles/nestles-gerber-ceo-sees-formula-shortage-improving-by-october | nan | nan | By Jessica DiNapoli
NEW YORK, Sept 12 (Reuters) - Nestle SA's NESN.S Gerber Products Company is still in "critical task force mode" due to the U.S. infant formula shortage, its CEO Tarun Malkani said last week, adding that he expects the crunch to improve by October.
Gerber added market share as it pumped out formula to meet the heightened demand during the shortage, caused by supply chain crunches and the closure of an Abbott Laboratories ABT.N plant in Michigan, Malkani said last Thursday during a media event at Nestle's U.S. headquarters in Arlington, Virginia.
The Nestle brand, which makes the Good Start line of infant formulas, now has market share of roughly mid-9%, Malkani said. Before the crisis, its market share was around 8.5%, he said.
"We need the marketplace to rebalance," he said.
Availability of powder baby formula, the bulk of the market, has been improving on store shelves, with roughly 79% in stock as of Sept. 4, according to data provider IRI. It reached as low as 69% mid-July, according to IRI.
To ease the shortage, the U.S. government and Food and Drug Administration made it easier for manufacturers to get shipments into the country from overseas.
Gerber "pruned" novelty infant formulas in the beginning of the crisis to focus on those needed most, he said.
Nestle also flew in infant formula supplies from Europe to the United States
Major U.S. retailers including Walmart Inc WMT.N and Target Corp TGT.N both said last month they have seen formula supplies improve. Target said it was still rationing the product online and in store.
(Reporting by Jessica DiNapoli in Arlington, Virgina; Editing by Andrea Ricci)
((Jessica.DiNapoli@thomsonreuters.com; 646-223-4678;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gerber added market share as it pumped out formula to meet the heightened demand during the shortage, caused by supply chain crunches and the closure of an Abbott Laboratories ABT.N plant in Michigan, Malkani said last Thursday during a media event at Nestle's U.S. headquarters in Arlington, Virginia. By Jessica DiNapoli NEW YORK, Sept 12 (Reuters) - Nestle SA's NESN.S Gerber Products Company is still in "critical task force mode" due to the U.S. infant formula shortage, its CEO Tarun Malkani said last week, adding that he expects the crunch to improve by October. Availability of powder baby formula, the bulk of the market, has been improving on store shelves, with roughly 79% in stock as of Sept. 4, according to data provider IRI. | Gerber added market share as it pumped out formula to meet the heightened demand during the shortage, caused by supply chain crunches and the closure of an Abbott Laboratories ABT.N plant in Michigan, Malkani said last Thursday during a media event at Nestle's U.S. headquarters in Arlington, Virginia. The Nestle brand, which makes the Good Start line of infant formulas, now has market share of roughly mid-9%, Malkani said. Nestle also flew in infant formula supplies from Europe to the United States Major U.S. retailers including Walmart Inc WMT.N and Target Corp TGT.N both said last month they have seen formula supplies improve. | Gerber added market share as it pumped out formula to meet the heightened demand during the shortage, caused by supply chain crunches and the closure of an Abbott Laboratories ABT.N plant in Michigan, Malkani said last Thursday during a media event at Nestle's U.S. headquarters in Arlington, Virginia. By Jessica DiNapoli NEW YORK, Sept 12 (Reuters) - Nestle SA's NESN.S Gerber Products Company is still in "critical task force mode" due to the U.S. infant formula shortage, its CEO Tarun Malkani said last week, adding that he expects the crunch to improve by October. Nestle also flew in infant formula supplies from Europe to the United States Major U.S. retailers including Walmart Inc WMT.N and Target Corp TGT.N both said last month they have seen formula supplies improve. | Gerber added market share as it pumped out formula to meet the heightened demand during the shortage, caused by supply chain crunches and the closure of an Abbott Laboratories ABT.N plant in Michigan, Malkani said last Thursday during a media event at Nestle's U.S. headquarters in Arlington, Virginia. The Nestle brand, which makes the Good Start line of infant formulas, now has market share of roughly mid-9%, Malkani said. Before the crisis, its market share was around 8.5%, he said. |
31449.0 | 2022-09-11 00:00:00 UTC | 3 Beaten-Down Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/3-beaten-down-stocks-to-buy-right-now | nan | nan | A stock that's dropped in the double digits may set off an alarm bell for you. But in many cases, that ringing should instead signal opportunity. Today, many companies with solid track records and great future prospects have lost ground, as concerns about the economy weigh on investor sentiment.
Though these stocks are suffering today, many could deliver significant gains over time. So, instead of fleeing beaten-down stocks, it's a good idea to examine them closely. Here are three that make great buys right now. They've each dropped more than 20% this year.
1. Home Depot
Home Depot (NYSE: HD) shares have declined even as the company defies today's difficult economic situation. The world's biggest home improvement retailer actually delivered its highest quarterly sales and earnings ever in the second quarter. Sales climbed 6.5% to $43.8 billion, and net earnings reached $5.2 billion.
Home Depot noted growth in sales to both professionals and the do-it-yourself crowd. The project pipeline and demand for home repair supplies remain strong, the company says. It's always possible some of this could weaken if economic difficulties persist. But Home Depot's general strength is reason to be optimistic about this company over the long term.
Home Depot has a solid track record of success when it comes to revenue and profit.
And the important financial measures of free cash flow and return on invested capital have generally climbed over the years. These metrics are key because they show a company has money to invest in its business -- and has used its money wisely.
HD Free Cash Flow data by YCharts
Today, Home Depot continues to invest in its service to professionals. It recently launched features on its business-to-business website to improve the shopping and quoting experience. These efforts should keep Home Depot ahead over the long term.
2. Starbucks
Starbucks (NASDAQ: SBUX) has many strengths. One of them is the loyalty of its customers. The coffee chain giant's membership program drives more than half of revenue in U.S. company-operated stores. And the great news is this population is growing.
In the most recent quarter -- the fiscal third quarter -- U.S. active Starbucks Rewards membership climbed 13% to 27.4 million members. Starbucks reported another important figure: Consolidated net revenue increased 9% to $8.2 billion. That's a quarterly record.
The company faces headwinds of coronavirus restrictions in China -- its second-biggest market after the U.S. But Starbucks has worked to make its business as flexible in possible in China so that it can immediately benefit as stores reopen. The company now operates 5,761 shops in China and plans to grow that to 6,000 by the end of the year.
Meanwhile, Starbucks may be entering a new phase of growth. Longtime Starbucks leader and interim CEO Howard Schultz is ushering in Laxman Narasimhan as the new CEO. Schultz will guide Narasimhan through next year. At the same time, Starbucks is launching a "reinvention" plan -- some features include new bar configurations, a focus on customized drinks, and new models for ordering digitally.
With shares trading at about 30 times forward earnings estimates -- compared to more than 40 at the start of the year -- now is a great time to bet on Starbucks' next chapter.
3. Abbott Laboratories
Diversification is a big part of Abbott Laboratories' (NYSE: ABT) success story. The company has four businesses: diagnostics, medical devices, nutrition, and established pharmaceuticals.
Since the early days of the pandemic, diagnostics has become its biggest business. That's thanks to Abbott's multitude of coronavirus tests. In the second quarter, coronavirus testing brought in $2.3 billion. And the company predicts total coronavirus testing sales for the year of about $6.1 billion.
But Abbott doesn't just rely on the testing business. Historically, medical devices have been the biggest contributor to revenue. The company sells devices in a variety of cardiovascular specialties and has a leading diabetes care business.
One of Abbott's star products is the FreeStyle Libre continuous glucose monitoring system. That product alone brought in $1.1 billion in revenue during the quarter. The company recently won U.S. regulatory clearance for the FreeStyle Libre 3 system. This updated version of the popular product could drive more revenue gains down the road.
Abbott has increased profit and revenue over the years, and Abbott continues to innovate and win new product approvals. So even if coronavirus testing revenue wanes, overall growth prospects are bright. Abbott also is known for raising its dividend. It's part of an exclusive group known as Dividend Kings.
Abbott shares trade at about 20 times forward earnings estimates. Earlier this year, they traded closer to 30. Today, Abbott is looking cheap considering the total package it offers long-term 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 Diversification is a big part of Abbott Laboratories' (NYSE: ABT) success story. Today, many companies with solid track records and great future prospects have lost ground, as concerns about the economy weigh on investor sentiment. HD Free Cash Flow data by YCharts Today, Home Depot continues to invest in its service to professionals. | Abbott Laboratories Diversification is a big part of Abbott Laboratories' (NYSE: ABT) success story. Home Depot Home Depot (NYSE: HD) shares have declined even as the company defies today's difficult economic situation. HD Free Cash Flow data by YCharts Today, Home Depot continues to invest in its service to professionals. | Abbott Laboratories Diversification is a big part of Abbott Laboratories' (NYSE: ABT) success story. Home Depot Home Depot (NYSE: HD) shares have declined even as the company defies today's difficult economic situation. Abbott has increased profit and revenue over the years, and Abbott continues to innovate and win new product approvals. | Abbott Laboratories Diversification is a big part of Abbott Laboratories' (NYSE: ABT) success story. Home Depot Home Depot (NYSE: HD) shares have declined even as the company defies today's difficult economic situation. That's right -- they think these 10 stocks are even better buys. |
31450.0 | 2022-09-09 00:00:00 UTC | Notable Friday Option Activity: WYNN, CL, ABT | ABT | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-wynn-cl-abt | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Wynn Resorts Ltd (Symbol: WYNN), where a total of 7,647 contracts have traded so far, representing approximately 764,700 underlying shares. That amounts to about 42.6% of WYNN's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $90 strike put option expiring January 20, 2023, with 405 contracts trading so far today, representing approximately 40,500 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $90 strike highlighted in orange:
Colgate-Palmolive Co. (Symbol: CL) options are showing a volume of 15,233 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 42% of CL's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $80 strike call option expiring October 21, 2022, with 13,701 contracts trading so far today, representing approximately 1.4 million underlying shares of CL. Below is a chart showing CL's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,847 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 41.7% of ABT's average daily trading volume over the past month, of 4.5 million shares. Especially high volume was seen for the $115 strike call option expiring January 20, 2023, with 4,739 contracts trading so far today, representing approximately 473,900 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for WYNN options, CL 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 $115 strike call option expiring January 20, 2023, with 4,739 contracts trading so far today, representing approximately 473,900 underlying shares of ABT. Below is a chart showing CL's trailing twelve month trading history, with the $80 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,847 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 41.7% of ABT's average daily trading volume over the past month, of 4.5 million shares. | That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 41.7% of ABT's average daily trading volume over the past month, of 4.5 million shares. Below is a chart showing CL's trailing twelve month trading history, with the $80 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,847 contracts thus far today. Especially high volume was seen for the $115 strike call option expiring January 20, 2023, with 4,739 contracts trading so far today, representing approximately 473,900 underlying shares of ABT. | That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 41.7% of ABT's average daily trading volume over the past month, of 4.5 million shares. Below is a chart showing CL's trailing twelve month trading history, with the $80 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,847 contracts thus far today. Especially high volume was seen for the $115 strike call option expiring January 20, 2023, with 4,739 contracts trading so far today, representing approximately 473,900 underlying shares of ABT. | Especially high volume was seen for the $115 strike call option expiring January 20, 2023, with 4,739 contracts trading so far today, representing approximately 473,900 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for WYNN options, CL options, or ABT options, visit StockOptionsChannel.com. Below is a chart showing CL's trailing twelve month trading history, with the $80 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,847 contracts thus far today. |
31451.0 | 2022-09-08 00:00:00 UTC | Why Abbot Stock Was a Winner Today | ABT | https://www.nasdaq.com/articles/why-abbot-stock-was-a-winner-today | nan | nan | What happened
Abbott Laboratories (NYSE: ABT) ended up outpacing the broader stock market on Thursday, with its share price rising by more than 2% against the 0.7% bump of the S&P 500 index. Investors were clearly happy with the latest product news from the company.
So what
Abbott reported some highly encouraging data about its Amplatzer Piccolo Occluder, a device that treats a common congenital heart defect in infants called patent ductus arteriosus (PDA).
According to the big healthcare company, the three years of data it has compiled on the device indicate that it produced a survival rate of nearly 96%, with zero procedure-related deaths. The implant success rate was similar, and the device closed the PDA in nearly every patient.
A PDA is an opening between a pair of blood vessels in the heart that fails to close; such closing is standard just after birth. If untreated, the PDA can channel additional blood to the lungs, producing difficulty with breathing.
Abbott's Amplatzer Piccolo Occluder is a wire mesh device inserted through an incision in the leg, then guided through blood vessels until it reaches the PDA site in the heart. It thus closes the PDA in a minimally invasive procedure. According to Abbott, this makes it preferable to the traditional means of treatment for the affliction -- placing the infant on respiratory support, or having the patient undergo risky surgery.
The device was approved by the Food and Drug Administration in 2019.
Now what
In its latest update on the product, Abbott did not provide any estimates for the level of sales it could reach. Nevertheless, it's undoubtedly an advancement in the treatment of an awful disorder afflicting the youngest patients, and as such it's a lock to be a popular solution.
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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 Abbott Laboratories (NYSE: ABT) ended up outpacing the broader stock market on Thursday, with its share price rising by more than 2% against the 0.7% bump of the S&P 500 index. So what Abbott reported some highly encouraging data about its Amplatzer Piccolo Occluder, a device that treats a common congenital heart defect in infants called patent ductus arteriosus (PDA). Abbott's Amplatzer Piccolo Occluder is a wire mesh device inserted through an incision in the leg, then guided through blood vessels until it reaches the PDA site in the heart. | What happened Abbott Laboratories (NYSE: ABT) ended up outpacing the broader stock market on Thursday, with its share price rising by more than 2% against the 0.7% bump of the S&P 500 index. So what Abbott reported some highly encouraging data about its Amplatzer Piccolo Occluder, a device that treats a common congenital heart defect in infants called patent ductus arteriosus (PDA). Abbott's Amplatzer Piccolo Occluder is a wire mesh device inserted through an incision in the leg, then guided through blood vessels until it reaches the PDA site in the heart. | What happened Abbott Laboratories (NYSE: ABT) ended up outpacing the broader stock market on Thursday, with its share price rising by more than 2% against the 0.7% bump of the S&P 500 index. So what Abbott reported some highly encouraging data about its Amplatzer Piccolo Occluder, a device that treats a common congenital heart defect in infants called patent ductus arteriosus (PDA). Abbott's Amplatzer Piccolo Occluder is a wire mesh device inserted through an incision in the leg, then guided through blood vessels until it reaches the PDA site in the heart. | What happened Abbott Laboratories (NYSE: ABT) ended up outpacing the broader stock market on Thursday, with its share price rising by more than 2% against the 0.7% bump of the S&P 500 index. The implant success rate was similar, and the device closed the PDA in nearly every patient. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. |
31452.0 | 2022-09-08 00:00:00 UTC | FDA warns of potential clip lock issue with Abbott's heart valve repair device | ABT | https://www.nasdaq.com/articles/fda-warns-of-potential-clip-lock-issue-with-abbotts-heart-valve-repair-device | nan | nan | Sept 8 (Reuters) - The U.S. Food and Drug Administration on Thursday alerted healthcare providers about a potential clip lock issue with Abbott Laboratories' ABT.N MitraClip device used to stop heart valve leakage.
The medical device treats mitral regurgitation, a condition in which the mitral valve of the heart does not close properly, causing blood leakage that can lead to stroke, heart attack or even death. MitraClip was first approved in 2013.
The FDA said the malfunctions appear to occur in about 1.3% of MitraClip procedures and have been observed with all device models.
Abbott said it had received increased rate of reports of the devices failing to "establish final arm angle" or "clip opening while locked".
The company said it has identified the cause of the clip lock malfunction and was working on producing new lots of the device with updated manufacturing processes and raw materials to mitigate the issue.
The health regulator said majority of the reported malfunctions have not been associated with "adverse patient outcomes" and based on the available data it believes benefits continue to outweigh the risks for use of the device.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta)
((mrinalika.roy@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. | Sept 8 (Reuters) - The U.S. Food and Drug Administration on Thursday alerted healthcare providers about a potential clip lock issue with Abbott Laboratories' ABT.N MitraClip device used to stop heart valve leakage. The company said it has identified the cause of the clip lock malfunction and was working on producing new lots of the device with updated manufacturing processes and raw materials to mitigate the issue. The health regulator said majority of the reported malfunctions have not been associated with "adverse patient outcomes" and based on the available data it believes benefits continue to outweigh the risks for use of the device. | Sept 8 (Reuters) - The U.S. Food and Drug Administration on Thursday alerted healthcare providers about a potential clip lock issue with Abbott Laboratories' ABT.N MitraClip device used to stop heart valve leakage. The company said it has identified the cause of the clip lock malfunction and was working on producing new lots of the device with updated manufacturing processes and raw materials to mitigate the issue. The health regulator said majority of the reported malfunctions have not been associated with "adverse patient outcomes" and based on the available data it believes benefits continue to outweigh the risks for use of the device. | Sept 8 (Reuters) - The U.S. Food and Drug Administration on Thursday alerted healthcare providers about a potential clip lock issue with Abbott Laboratories' ABT.N MitraClip device used to stop heart valve leakage. The medical device treats mitral regurgitation, a condition in which the mitral valve of the heart does not close properly, causing blood leakage that can lead to stroke, heart attack or even death. The company said it has identified the cause of the clip lock malfunction and was working on producing new lots of the device with updated manufacturing processes and raw materials to mitigate the issue. | Sept 8 (Reuters) - The U.S. Food and Drug Administration on Thursday alerted healthcare providers about a potential clip lock issue with Abbott Laboratories' ABT.N MitraClip device used to stop heart valve leakage. The medical device treats mitral regurgitation, a condition in which the mitral valve of the heart does not close properly, causing blood leakage that can lead to stroke, heart attack or even death. MitraClip was first approved in 2013. |
31453.0 | 2022-09-08 00:00:00 UTC | Abbott (ABT) Debuts Amplatzer Talisman System in Europe | ABT | https://www.nasdaq.com/articles/abbott-abt-debuts-amplatzer-talisman-system-in-europe | nan | nan | Abbott Laboratories ABT recently launched its Amplatzer Talisman PFO Occlusion System in Europe. The Talisman device aims to treat patent foramen ovale (PFO) patients who have had a stroke and are at risk of having another.
According to guidelines from industry organizations and clinical trial data, the PFO closure has proven beneficial for patients experiencing a PFO-associated stroke. Per Abbott’s management, the company’s trusted PFO closure technology has been used to treat over 180,000 patients worldwide. The novel Talisman system simplified doctors’ procedures while allowing patients to return to living fuller, healthier lives more quickly.
The latest European launch of the Amplatzer Talisman PFO Occlusion System will likely fortify Abbott's structural heart business.
More About the Amplatzer Talisman System
The Amplatzer Talisman system builds upon the company's industry-leading Amplatzer PFO Occluder. The Talisman PFO occluders come pre-attached to the Amplatzer Trevisio delivery cable, which cuts down on preparation time ahead of the procedure and makes it easier to use. Previously, physicians had to attach the Amplatzer PFO Occluder to the delivery cable before performing the implant procedure.
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The Talisman system accommodates a broader range of patient anatomies. An updated 30mm occluder size has optimized the system’s fit in the heart. The device is also fully recapturable and repositionable, enabling doctors to adjust for accurate placement more easily.
Industry Prospects
Per a report published in PR Newswire, the patent foramen ovale closure devices market is expected to see a CAGR of 3.1% across the seven major markets during 2018-2026. Factors such as the launch of emerging medical devices and upcoming technologies, including a first-generation light-activated PFO implant, can be attributable to market growth.
Given the market prospects, Abbott’s latest launch in Europe seems well-timed.
Other Notable Developments
In August 2022, Abbott received FDA approval for its novel Proclaim Plus spinal cord stimulation system featuring FlexBurst360 therapy. The FlexBurst360 therapy is the next generation of Abbott's proprietary BurstDR stimulation, which offers pain coverage across six areas of the trunk and/or limbs. The FlexBurst360 therapy on the Proclaim Plus system enables physicians to detect the lowest effective dose of stimulation for each patient and alter it in response to changing pain requirements.
In July 2022, the company gained FDA’s Breakthrough Device Designation to investigate the use of its deep brain stimulation (DBS) system in treatment-resistant depression (TRD), a form of major depressive disorder. Abbott's DBS System is a personalized, adjustable therapy that involves inserting small wires or leads into specific regions of the brain. The receipt of Breakthrough Device Designation will make the DBS System available as a novel treatment option for TRD soon.
Share Price Performance
The stock has outperformed its industry in the past year. It has declined 18% against the industry’s 50.1% surge.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 8.4% against the industry’s 36.3% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 33.5% against the industry’s 31.4% fall over the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 79.4% against the industry’s 13.4% fall.
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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 recently launched its Amplatzer Talisman PFO Occlusion System in Europe. Abbott Laboratories (ABT): Free Stock Analysis Report The Talisman PFO occluders come pre-attached to the Amplatzer Trevisio delivery cable, which cuts down on preparation time ahead of the procedure and makes it easier to use. | Abbott Laboratories ABT recently launched its Amplatzer Talisman PFO Occlusion System in Europe. Abbott Laboratories (ABT): Free Stock Analysis Report A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK. | Abbott Laboratories ABT recently launched its Amplatzer Talisman PFO Occlusion System in Europe. Abbott Laboratories (ABT): Free Stock Analysis Report More About the Amplatzer Talisman System The Amplatzer Talisman system builds upon the company's industry-leading Amplatzer PFO Occluder. | Abbott Laboratories ABT recently launched its Amplatzer Talisman PFO Occlusion System in Europe. Abbott Laboratories (ABT): Free Stock Analysis Report More About the Amplatzer Talisman System The Amplatzer Talisman system builds upon the company's industry-leading Amplatzer PFO Occluder. |
31454.0 | 2022-09-06 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-2 | nan | nan | Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 5.96% over the past month. This has was narrower than the Medical sector's loss of 6.22% and lagged the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 36.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.57 billion, down 12.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $42.39 billion. These totals would mark changes of -4.22% and -1.59%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Abbott is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Abbott currently has a Forward P/E ratio of 20.55. This represents a premium compared to its industry's average Forward P/E of 20.33.
Meanwhile, ABT's PEG ratio is currently 3.8. 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. The Medical - Products industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.8. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.8. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.8. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $102.71, moving +0.2% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.8. Abbott Laboratories (ABT): Free Stock Analysis Report |
31455.0 | 2022-09-06 00:00:00 UTC | FDA warns against use of Mother's Touch baby formula | ABT | https://www.nasdaq.com/articles/fda-warns-against-use-of-mothers-touch-baby-formula | nan | nan | Sept 6 (Reuters) - The U.S. Food and Drug Administration (FDA) on Tuesday advised parents and caregivers against feeding Mother's Touch Formula to infants as the product has not undergone proper testing.
The directive comes as the United States recovers from a severe infant formula crunch that began with pandemic-led supply issues and worsened after Abbott ABT.N closed its Michigan plant in February due to reports of bacterial contamination.
The Mother's Touch Formula is being marketed without U.S. clearance and has not been properly tested for the presence of potentially harmful bacteria, the FDA said.
The product has also not been tested to determine if it meets nutrient requirements, and contains label claims for seven nutrients that do not meet the requisite for infant formula.
The product is sold at local markets in Kinzers, Loganton, and Gap, Pennsylvania, and was available for purchase directly from the Mother's Touch website.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Devika Syamnath)
((mrinalika.roy@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 directive comes as the United States recovers from a severe infant formula crunch that began with pandemic-led supply issues and worsened after Abbott ABT.N closed its Michigan plant in February due to reports of bacterial contamination. Sept 6 (Reuters) - The U.S. Food and Drug Administration (FDA) on Tuesday advised parents and caregivers against feeding Mother's Touch Formula to infants as the product has not undergone proper testing. The product is sold at local markets in Kinzers, Loganton, and Gap, Pennsylvania, and was available for purchase directly from the Mother's Touch website. | The directive comes as the United States recovers from a severe infant formula crunch that began with pandemic-led supply issues and worsened after Abbott ABT.N closed its Michigan plant in February due to reports of bacterial contamination. Sept 6 (Reuters) - The U.S. Food and Drug Administration (FDA) on Tuesday advised parents and caregivers against feeding Mother's Touch Formula to infants as the product has not undergone proper testing. The Mother's Touch Formula is being marketed without U.S. clearance and has not been properly tested for the presence of potentially harmful bacteria, the FDA said. | The directive comes as the United States recovers from a severe infant formula crunch that began with pandemic-led supply issues and worsened after Abbott ABT.N closed its Michigan plant in February due to reports of bacterial contamination. Sept 6 (Reuters) - The U.S. Food and Drug Administration (FDA) on Tuesday advised parents and caregivers against feeding Mother's Touch Formula to infants as the product has not undergone proper testing. The product has also not been tested to determine if it meets nutrient requirements, and contains label claims for seven nutrients that do not meet the requisite for infant formula. | The directive comes as the United States recovers from a severe infant formula crunch that began with pandemic-led supply issues and worsened after Abbott ABT.N closed its Michigan plant in February due to reports of bacterial contamination. Sept 6 (Reuters) - The U.S. Food and Drug Administration (FDA) on Tuesday advised parents and caregivers against feeding Mother's Touch Formula to infants as the product has not undergone proper testing. The Mother's Touch Formula is being marketed without U.S. clearance and has not been properly tested for the presence of potentially harmful bacteria, the FDA said. |
31456.0 | 2022-09-01 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 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.7% above its 52 week low of $100.79, giving the company a market cap of $183B. The stock is currently down 24.6% year-to-date, down 16.4% over the past 12 months, and up 122.4% over the past five years. This week, the Dow Jones Industrial Average fell 4.8%, and the S&P 500 fell 5.5%.
Trading Activity
Trading volume this week was 8.9% 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 a downward 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 , lags 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 , lags 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 416.0%
The company's stock price performance over the past 12 months lags the peer average by 231.3%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 379.3% 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 1.7% above its 52 week low of $100.79, 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 , lags 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 , lags 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 416.0% The company's stock price performance over the past 12 months lags the peer average by 231.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 379.3% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.7% above its 52 week low of $100.79, giving the company a market cap of $183B. This week, the Dow Jones Industrial Average fell 4.8%, and the S&P 500 fell 5.5%. Trading Activity Trading volume this week was 8.9% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 1.7% above its 52 week low of $100.79, 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 , lags 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 , lags 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 416.0% The company's stock price performance over the past 12 months lags the peer average by 231.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 379.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.7% above its 52 week low of $100.79, giving the company a market cap of $183B. This week, the Dow Jones Industrial Average fell 4.8%, and the S&P 500 fell 5.5%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
31457.0 | 2022-09-01 00:00:00 UTC | 3 Dividend Stocks to Buy in September for Passive Income Generation | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-in-september-for-passive-income-generation | nan | nan | Do you like getting paid to do practically nothing? I thought so.
Lots of savvy investors know that they can generate heaps of passive income with dividend-paying stocks. These three businesses are more than just reliable dividend payers; they're known for raising their dividend payouts year after year. Here's how they could provide ever-increasing dividend payments to your brokerage account.
Image source: Getty Images.
1. Abbott Laboratories
This healthcare conglomerate's COVID-19 tests made it a stock market darling in 2021. Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. Now the stock offers a tempting 1.8% dividend yield that could rise significantly in the years ahead.
In the second quarter, COVID-19 testing-related sales fell to $2.3 billion from $3.3 billion during the first quarter of 2022. Luckily for long-term investors, the company could report significant earnings growth even if COVID-19 sales fall off a cliff.
Declining COVID-19 testing revenue isn't a major issue for this diversified conglomerate because its diabetes-care segment is about to rocket higher. In May, the FDA granted clearance to Abbott's FreeStyle Libre 3 system. This device is only the size of a couple of pennies stacked together, but once a patient sticks it on her or his arm, it monitors blood sugar levels constantly for two weeks.
Constant monitoring leads to fewer interventions in expensive hospitals, so insurers and government payers are eager to reimburse patients for the devices. With glucose monitoring sales about to explode higher, Abbott could approve some big dividend raises in the foreseeable future.
2. CVS Health
Shares of CVS Health (NYSE: CVS) surged late last year when the company announced that it would begin raising its dividend payout again. Since then, the stock has been in a holding pattern.
At recent prices, shares of CVS Health offer a 2.2% yield that could grow significantly in the years ahead. In addition to thousands of retail pharmacies, this conglomerate owns a pharmacy benefits management business that boasts more than 110 million plan members.
Integrating a pharmacy benefits management business is one advantage its peers in the retail pharmacy space can't match, and it isn't the company's only big advantage. CVS Health previously paused raising its dividend payout to pay off its acquisition of Aetna, a health insurer that currently collects premiums from an estimated 35 million members.
CVS Health's unique combination of related businesses allowed the company to raise its dividend payout by 10% this year. Without any competitors combining a large retail footprint with a health benefits management business, the latest big payout bump could be the first of many in the years ahead.
3. AbbVie
AbbVie (NYSE: ABBV) was once the pharmaceutical segment of Abbott Laboratories. Shares of AbbVie offer an above-average yield of 4.2% that could climb even higher.
Since the drugmaker spun off in 2013, its dividend has risen an astonishing 253% on the back of its lead drug, Humira. Second-quarter sales of Humira rose 9.6% year over year to a stunning $4.7 billion in the U.S. Unfortunately, international Humira revenue fell 13.8% to $699 million.
AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. An interchangeable biosimilar version of the anti-inflammatory blockbuster became available in the U.S. this July.
AbbVie investors can expect their dividend payouts to continue rising in the face of Humira competition because the company has new blockbuster drugs to pick up the slack. Second-quarter sales of Rinvoq, a new arthritis drug, and Skyrizi, a new psoriasis drug, soared 75% year over year to a combined $1.84 billion. With new blockbusters to offset Humira losses, AbbVie shareholders could see more big payout bumps in the years ahead.
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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. | Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. This device is only the size of a couple of pennies stacked together, but once a patient sticks it on her or his arm, it monitors blood sugar levels constantly for two weeks. Without any competitors combining a large retail footprint with a health benefits management business, the latest big payout bump could be the first of many in the years ahead. | Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. CVS Health Shares of CVS Health (NYSE: CVS) surged late last year when the company announced that it would begin raising its dividend payout again. In addition to thousands of retail pharmacies, this conglomerate owns a pharmacy benefits management business that boasts more than 110 million plan members. | Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. These three businesses are more than just reliable dividend payers; they're known for raising their dividend payouts year after year. CVS Health Shares of CVS Health (NYSE: CVS) surged late last year when the company announced that it would begin raising its dividend payout again. | Shares of Abbott Laboratories (NYSE: ABT) have tumbled around 27% since the beginning of 2022 in response to subsiding demand for COVID tests. These three businesses are more than just reliable dividend payers; they're known for raising their dividend payouts year after year. AbbVie offers an above-average dividend now because U.S. Humira sales will soon go the same way as international sales. |
31458.0 | 2022-08-31 00:00:00 UTC | Foreign business travel missing ingredient for Irish hotel recovery - Dalata | ABT | https://www.nasdaq.com/articles/foreign-business-travel-missing-ingredient-for-irish-hotel-recovery-dalata | nan | nan | By Padraic Halpin
DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said.
Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
Chief Executive Dermot Crowley said that despite the fall in foreign business travel, corporate demand managed to return towards levels last seen before the pandemic, with domestic business travel and new business making up for the falls elsewhere.
"The big unknown is that multinationals, (who were) our big customers pre-COVID, are not travelling anywhere near the same level as they were pre-COVID," Crowley told Reuters.
He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel.
Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland.
Central Statistics Office data on Tuesday showed overseas arrivals into Ireland in July were 12% lower than pre-pandemic levels.
Dalata's first-half 2022 revenues rose almost six-fold from the COVID-19 hammered first half of 2021 and were 9% higher than 2019 at 220 million euros, aided by a 15% rise in average room rate over the same period.
Core profit jumped 14% compared with 2019, with like-for-like group revenue per available room (RevPAR) - a key measure of a hotel's top-line performance - up 5%. Strong trading continued in July and August with occupancy back at pre-pandemic levels.
Crowley said leisure demand looked strong for September but that the group had little visibility beyond that with most bookings typically made within six weeks of travelling.
While Dalata has not seen any impact on demand to date from sharp rises in the cost of living, it said inflationary costs may impact consumer discretionary spending in the future.
(Reporting by Padraic Halpin. Editing by Jane Merriman)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels. | Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels. | Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels. | Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels. |
31459.0 | 2022-08-29 00:00:00 UTC | Abbott Laboratories Shares Near 52-Week Low - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-near-52-week-low-market-mover-0 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.4% above its 52 week low of $100.79, giving the company a market cap of $178B. The stock is currently down 26.5% year-to-date, down 17.6% over the past 12 months, and up 121.5% over the past five years. This week, the Dow Jones Industrial Average fell 3.4%, and the S&P 500 fell 3.4%.
Trading Activity
Trading volume this week was 22.8% 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 under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward 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 , lags 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 , lags 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 378.6%
The company's stock price performance over the past 12 months lags the peer average by 206.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 455.1% 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 1.4% above its 52 week low of $100.79, giving the company a market cap of $178B. 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 , lags 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 , lags 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 378.6% The company's stock price performance over the past 12 months lags the peer average by 206.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 455.1% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.4% above its 52 week low of $100.79, giving the company a market cap of $178B. This week, the Dow Jones Industrial Average fell 3.4%, and the S&P 500 fell 3.4%. Trading Activity Trading volume this week was 22.8% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 1.4% above its 52 week low of $100.79, giving the company a market cap of $178B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags 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 , lags 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 378.6% The company's stock price performance over the past 12 months lags the peer average by 206.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 455.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.4% above its 52 week low of $100.79, giving the company a market cap of $178B. This week, the Dow Jones Industrial Average fell 3.4%, and the S&P 500 fell 3.4%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. |
31460.0 | 2022-08-29 00:00:00 UTC | Abbott: Study Shows HeartMate 3 Pump Extends Life Expectancy Of Advanced Heart Failure Patients | ABT | https://www.nasdaq.com/articles/abbott%3A-study-shows-heartmate-3-pump-extends-life-expectancy-of-advanced-heart-failure | nan | nan | (RTTNews) - Abbott (ABT) said the data from the MOMENTUM 3 trial showed its HeartMate 3 heart pump extended survival of advanced heart failure patients by at least five years. Results of the five-year study showed an improved survival rate of 58% with the HeartMate 3 compared to 44% with the HeartMate II. Also, the greater survival for HeartMate 3 patients was largely associated with a reduction in deaths due to stroke, clotting and bleeding.
The company also noted that the latest MOMENTUM 3 data showed that the five-year survival for HeartMate 3 patients is approaching the five-year survival rates of heart transplant recipients who have a similar risk profile.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said the data from the MOMENTUM 3 trial showed its HeartMate 3 heart pump extended survival of advanced heart failure patients by at least five years. Also, the greater survival for HeartMate 3 patients was largely associated with a reduction in deaths due to stroke, clotting and bleeding. The company also noted that the latest MOMENTUM 3 data showed that the five-year survival for HeartMate 3 patients is approaching the five-year survival rates of heart transplant recipients who have a similar risk profile. | (RTTNews) - Abbott (ABT) said the data from the MOMENTUM 3 trial showed its HeartMate 3 heart pump extended survival of advanced heart failure patients by at least five years. Results of the five-year study showed an improved survival rate of 58% with the HeartMate 3 compared to 44% with the HeartMate II. The company also noted that the latest MOMENTUM 3 data showed that the five-year survival for HeartMate 3 patients is approaching the five-year survival rates of heart transplant recipients who have a similar risk profile. | (RTTNews) - Abbott (ABT) said the data from the MOMENTUM 3 trial showed its HeartMate 3 heart pump extended survival of advanced heart failure patients by at least five years. The company also noted that the latest MOMENTUM 3 data showed that the five-year survival for HeartMate 3 patients is approaching the five-year survival rates of heart transplant recipients who have a similar risk profile. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said the data from the MOMENTUM 3 trial showed its HeartMate 3 heart pump extended survival of advanced heart failure patients by at least five years. Also, the greater survival for HeartMate 3 patients was largely associated with a reduction in deaths due to stroke, clotting and bleeding. The company also noted that the latest MOMENTUM 3 data showed that the five-year survival for HeartMate 3 patients is approaching the five-year survival rates of heart transplant recipients who have a similar risk profile. |
31461.0 | 2022-08-29 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABT | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-39 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Abbott Laboratories (Symbol: ABT) $101.90 $127.15 24.78%
Ecolab Inc (Symbol: ECL) $165.26 $188.60 14.12%
3M Co (Symbol: MMM) $129.14 $146.00 13.06%
NU Skin Enterprises, Inc. (Symbol: NUS) $42.28 $47.00 11.16%
Polaris Inc (Symbol: PII) $116.97 $125.56 7.34%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Abbott Laboratories (Symbol: ABT) 1.84% 24.78% 26.62%
Ecolab Inc (Symbol: ECL) 1.23% 14.12% 15.35%
3M Co (Symbol: MMM) 4.62% 13.06% 17.68%
NU Skin Enterprises, Inc. (Symbol: NUS) 3.64% 11.16% 14.8%
Polaris Inc (Symbol: PII) 2.19% 7.34% 9.53%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77%
Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24%
3M Co (Symbol: MMM) $5.91 $5.95 0.68%
NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32%
Polaris Inc (Symbol: PII) $2.5 $2.54 1.60%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
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 (Symbol: ABT) $101.90 $127.15 24.78% Ecolab Inc (Symbol: ECL) $165.26 $188.60 14.12% 3M Co (Symbol: MMM) $129.14 $146.00 13.06% NU Skin Enterprises, Inc. (Symbol: NUS) $42.28 $47.00 11.16% Polaris Inc (Symbol: PII) $116.97 $125.56 7.34% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.84% 24.78% 26.62% Ecolab Inc (Symbol: ECL) 1.23% 14.12% 15.35% 3M Co (Symbol: MMM) 4.62% 13.06% 17.68% NU Skin Enterprises, Inc. (Symbol: NUS) 3.64% 11.16% 14.8% Polaris Inc (Symbol: PII) 2.19% 7.34% 9.53% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% 3M Co (Symbol: MMM) $5.91 $5.95 0.68% NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Polaris Inc (Symbol: PII) $2.5 $2.54 1.60% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $101.90 $127.15 24.78% Ecolab Inc (Symbol: ECL) $165.26 $188.60 14.12% 3M Co (Symbol: MMM) $129.14 $146.00 13.06% NU Skin Enterprises, Inc. (Symbol: NUS) $42.28 $47.00 11.16% Polaris Inc (Symbol: PII) $116.97 $125.56 7.34% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.84% 24.78% 26.62% Ecolab Inc (Symbol: ECL) 1.23% 14.12% 15.35% 3M Co (Symbol: MMM) 4.62% 13.06% 17.68% NU Skin Enterprises, Inc. (Symbol: NUS) 3.64% 11.16% 14.8% Polaris Inc (Symbol: PII) 2.19% 7.34% 9.53% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% 3M Co (Symbol: MMM) $5.91 $5.95 0.68% NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Polaris Inc (Symbol: PII) $2.5 $2.54 1.60% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $101.90 $127.15 24.78% Ecolab Inc (Symbol: ECL) $165.26 $188.60 14.12% 3M Co (Symbol: MMM) $129.14 $146.00 13.06% NU Skin Enterprises, Inc. (Symbol: NUS) $42.28 $47.00 11.16% Polaris Inc (Symbol: PII) $116.97 $125.56 7.34% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.84% 24.78% 26.62% Ecolab Inc (Symbol: ECL) 1.23% 14.12% 15.35% 3M Co (Symbol: MMM) 4.62% 13.06% 17.68% NU Skin Enterprises, Inc. (Symbol: NUS) 3.64% 11.16% 14.8% Polaris Inc (Symbol: PII) 2.19% 7.34% 9.53% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% 3M Co (Symbol: MMM) $5.91 $5.95 0.68% NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Polaris Inc (Symbol: PII) $2.5 $2.54 1.60% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $101.90 $127.15 24.78% Ecolab Inc (Symbol: ECL) $165.26 $188.60 14.12% 3M Co (Symbol: MMM) $129.14 $146.00 13.06% NU Skin Enterprises, Inc. (Symbol: NUS) $42.28 $47.00 11.16% Polaris Inc (Symbol: PII) $116.97 $125.56 7.34% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.84% 24.78% 26.62% Ecolab Inc (Symbol: ECL) 1.23% 14.12% 15.35% 3M Co (Symbol: MMM) 4.62% 13.06% 17.68% NU Skin Enterprises, Inc. (Symbol: NUS) 3.64% 11.16% 14.8% Polaris Inc (Symbol: PII) 2.19% 7.34% 9.53% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% 3M Co (Symbol: MMM) $5.91 $5.95 0.68% NU Skin Enterprises, Inc. (Symbol: NUS) $1.515 $1.535 1.32% Polaris Inc (Symbol: PII) $2.5 $2.54 1.60% These five stocks are part of our full Dividend Aristocrats List. |
31462.0 | 2022-08-29 00:00:00 UTC | Should You Buy Medtronic Stock Around $90? | ABT | https://www.nasdaq.com/articles/should-you-buy-medtronic-stock-around-%2490 | nan | nan | Medtronic stock (NYSE: MDT) reported its Q1FY23 results on Aug 23, with revenue falling above and earnings below our estimates. MDT stock has declined 6% in a week, while it’s down 3% in a month. After the recent fall, we believe MDT stock is undervalued, as discussed below.
Medtronic’s revenue (Q1) of $7.4 billion was down 8%, while its EPS of $1.13 was down 17% y-o-y, compared to our estimates of $7.3 billion and $1.15, respectively. The revenue growth was impacted due to forex headwinds and supply chain disruptions. Furthermore, it was a tough comparison to the prior-year quarter, which benefited from higher ventilator sales. The adjusted operating margin contracted 320 bps due to higher costs, primarily SG&A, which grew 1% y-o-y, compared to the revenue decline of 8%.
However, the company reiterated its full-fiscal year guidance with organic revenue growth expected to be in mid-single-digits and earnings to be between $5.53 and $5.65 on a per share and adjusted basis and includes the impact of forex headwinds. Despite a high single-digit decline in top-line in Q1, the company’s robust outlook implies that it expects sales to rebound over the coming quarters, especially in the second half of the fiscal year.
Now, our Q1 forecast was higher than the street estimates, and Medtronic beat the consensus figures. Still, its stock price declined in line with its peers, including Abbott, Intuitive Surgical, and Baxter, which are also down between 4 and 5% in a week. For Medtronic, in particular, the recent dip offers a buying opportunity for long-term investors, in our view.
We have updated our model to reflect the latest earnings. We expect full-fiscal 2023 revenue to be $32.0 billion and earnings to be $5.58 on a per share and adjusted basis. We have revised Medtronic’s Valuation to be around $118 per share (vs. $114 earlier), which is 33% above the current market price of $89. At its current levels, MDT stock is trading under 16x its expected forward earnings, compared to the last three-year average of 20x, implying that MDT stock is attractive from a valuation point of view.
But what about the near term?
Now that MDT stock has seen a fall of 3% 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. A move of -3% or more in a month for Medtronic has occurred 503 times in the past ten years. Of those, 278 instances resulted in MDT stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 278 out of 503, or a 55% chance of a rise in MDT stock over the coming 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% or more over five days, the stock rose on 54% of the occasions in the next five days.
After moving -5% or more over ten days, the stock rose in the next ten days on 59% of the occasions
After moving -3% or more over a twenty-one-day period, the stock rose on 55% 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 days, ten days, and one month.
Medtronic (MDT) Return (Recent) Comparison With Peers
Five-Day Return: JNJ highest at -1.2%; MDT lowest at -5.9%
Ten-Day Return: BSX highest at -1.7%; ISRG lowest at -7.3%
Twenty-One Day Return: BSX highest at 8.4%; BAX lowest at -12.0%
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Becton Dickinson vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return -4% -14% 25%
S&P 500 Return 0% -13% 85%
Trefis Multi-Strategy Portfolio -1% -14% 241%
[1] Month-to-date and year-to-date as of 8/25/2022
[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 adjusted operating margin contracted 320 bps due to higher costs, primarily SG&A, which grew 1% y-o-y, compared to the revenue decline of 8%. However, the company reiterated its full-fiscal year guidance with organic revenue growth expected to be in mid-single-digits and earnings to be between $5.53 and $5.65 on a per share and adjusted basis and includes the impact of forex headwinds. Despite a high single-digit decline in top-line in Q1, the company’s robust outlook implies that it expects sales to rebound over the coming quarters, especially in the second half of the fiscal year. | Medtronic (MDT) Return (Recent) Comparison With Peers Five-Day Return: JNJ highest at -1.2%; MDT lowest at -5.9% Ten-Day Return: BSX highest at -1.7%; ISRG lowest at -7.3% Twenty-One Day Return: BSX highest at 8.4%; BAX lowest at -12.0% 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 may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. Total [2] MDT Return -4% -14% 25% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio -1% -14% 241% [1] Month-to-date and year-to-date as of 8/25/2022 [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. | At its current levels, MDT stock is trading under 16x its expected forward earnings, compared to the last three-year average of 20x, implying that MDT stock is attractive from a valuation point of view. After moving -5% or more over ten days, the stock rose in the next ten days on 59% of the occasions After moving -3% or more over a twenty-one-day period, the stock rose on 55% of the occasions in the next twenty-one days. Medtronic (MDT) Return (Recent) Comparison With Peers Five-Day Return: JNJ highest at -1.2%; MDT lowest at -5.9% Ten-Day Return: BSX highest at -1.7%; ISRG lowest at -7.3% Twenty-One Day Return: BSX highest at 8.4%; BAX lowest at -12.0% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | Medtronic stock (NYSE: MDT) reported its Q1FY23 results on Aug 23, with revenue falling above and earnings below our estimates. This historical pattern reflects 278 out of 503, or a 55% chance of a rise in MDT stock over the coming month. This pattern suggests a higher chance of a rise in MDT stock over the next five days, ten days, and one month. |
31463.0 | 2022-08-28 00:00:00 UTC | Abbott Laboratories Shares Near 52-Week Low - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-near-52-week-low-market-mover | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.0% above its 52 week low of $100.79, giving the company a market cap of $178B. The stock is currently down 26.8% year-to-date, down 17.0% over the past 12 months, and up 120.5% over the past five years. This week, the Dow Jones Industrial Average fell 2.9%, and the S&P 500 fell 2.6%.
Trading Activity
Trading volume this week was 14.5% 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 under 30, indicating it may be underbought.
MACD, a trend-following momentum indicator, indicates a downward 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 , lags 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 , lags 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 486.2%
The company's stock price performance over the past 12 months lags the peer average by 283.6%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 531.2% 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 1.0% above its 52 week low of $100.79, giving the company a market cap of $178B. 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 , lags 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 , lags 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 486.2% The company's stock price performance over the past 12 months lags the peer average by 283.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 531.2% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.0% above its 52 week low of $100.79, giving the company a market cap of $178B. This week, the Dow Jones Industrial Average fell 2.9%, and the S&P 500 fell 2.6%. Trading Activity Trading volume this week was 14.5% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 1.0% above its 52 week low of $100.79, giving the company a market cap of $178B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags 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 , lags 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 486.2% The company's stock price performance over the past 12 months lags the peer average by 283.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 531.2% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.0% above its 52 week low of $100.79, giving the company a market cap of $178B. This week, the Dow Jones Industrial Average fell 2.9%, and the S&P 500 fell 2.6%. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. |
31464.0 | 2022-08-27 00:00:00 UTC | Abbott restarts Similac infant formula production at Michigan facility | ABT | https://www.nasdaq.com/articles/abbott-restarts-similac-infant-formula-production-at-michigan-facility | nan | nan | Corrects time frame 8th paragraph to July from earlier this month
Aug 27 (Reuters) - Abbott Laboratories ABT.N has restarted production of its Similac infant formula at the plant in Sturgis, Michigan at the center of the U.S. baby formula shortage.
Abbott, the biggest U.S. supplier of baby formula, in February recalled Similac and other infant formula products produced at the Michigan facility after reports of bacterial infections in babies who had consumed products that originated there.
The plant shutdown and subsequent product recall deepened a supply shortage in a nation where less than half of babies are exclusively breast-fed through their first three months, according to federal data from 2020.
To address the serious shortage, U.S. health regulators relaxed import policies and flew in millions of cans of emergency supplies from companies such as Nestle SA NESN.S and Reckitt Benckiser RKT.L.
Abbott briefly reopened the Michigan plant early last month, but had to shutter it again after about two weeks due to damage caused by heavy rains and flooding.
Abbott, in a statement on Friday, said as Similac enters into production, it will take about six weeks for the product to begin shipping to retail locations.
“We know that the nationwide infant formula shortage has been difficult for the families we serve, and while restarting Similac production in Michigan is an important milestone, we won’t rest until this product is back on shelves,” Abbott Chief Executive Robert Ford said in a statement.
In July, the company said it expects to begin releasing EleCare formula from its Sturgis plant after production of it and other specialty formulas restarted last month.
The company also said it would extend rebates offered on competitive products until Oct. 31 for participants in the government's Women, Infants, and Children (WIC) program in states where Abbott holds the contract if Similac is unavailable.
(Reporting by Akriti Sharma in Bengaluru; Editing by Bill Berkrot)
((Akriti.Sharma@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. | Corrects time frame 8th paragraph to July from earlier this month Aug 27 (Reuters) - Abbott Laboratories ABT.N has restarted production of its Similac infant formula at the plant in Sturgis, Michigan at the center of the U.S. baby formula shortage. The plant shutdown and subsequent product recall deepened a supply shortage in a nation where less than half of babies are exclusively breast-fed through their first three months, according to federal data from 2020. To address the serious shortage, U.S. health regulators relaxed import policies and flew in millions of cans of emergency supplies from companies such as Nestle SA NESN.S and Reckitt Benckiser RKT.L. | Corrects time frame 8th paragraph to July from earlier this month Aug 27 (Reuters) - Abbott Laboratories ABT.N has restarted production of its Similac infant formula at the plant in Sturgis, Michigan at the center of the U.S. baby formula shortage. Abbott, the biggest U.S. supplier of baby formula, in February recalled Similac and other infant formula products produced at the Michigan facility after reports of bacterial infections in babies who had consumed products that originated there. “We know that the nationwide infant formula shortage has been difficult for the families we serve, and while restarting Similac production in Michigan is an important milestone, we won’t rest until this product is back on shelves,” Abbott Chief Executive Robert Ford said in a statement. | Corrects time frame 8th paragraph to July from earlier this month Aug 27 (Reuters) - Abbott Laboratories ABT.N has restarted production of its Similac infant formula at the plant in Sturgis, Michigan at the center of the U.S. baby formula shortage. Abbott, the biggest U.S. supplier of baby formula, in February recalled Similac and other infant formula products produced at the Michigan facility after reports of bacterial infections in babies who had consumed products that originated there. “We know that the nationwide infant formula shortage has been difficult for the families we serve, and while restarting Similac production in Michigan is an important milestone, we won’t rest until this product is back on shelves,” Abbott Chief Executive Robert Ford said in a statement. | Corrects time frame 8th paragraph to July from earlier this month Aug 27 (Reuters) - Abbott Laboratories ABT.N has restarted production of its Similac infant formula at the plant in Sturgis, Michigan at the center of the U.S. baby formula shortage. Abbott, the biggest U.S. supplier of baby formula, in February recalled Similac and other infant formula products produced at the Michigan facility after reports of bacterial infections in babies who had consumed products that originated there. To address the serious shortage, U.S. health regulators relaxed import policies and flew in millions of cans of emergency supplies from companies such as Nestle SA NESN.S and Reckitt Benckiser RKT.L. |
31465.0 | 2022-08-25 00:00:00 UTC | Abbott (ABT) Gains But Lags Market: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-but-lags-market%3A-what-you-should-know-8 | nan | nan | Abbott (ABT) closed at $105.89 in the latest trading session, marking a +0.43% move from the prior day. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 4.14% over the past month. This has lagged the Medical sector's loss of 0.78% and the S&P 500's gain of 4.68% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. In that report, analysts expect Abbott to post earnings of $0.89 per share. This would mark a year-over-year decline of 36.43%. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, down 12.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $42.39 billion, which would represent changes of -4.22% and -1.59%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.17% lower. Abbott currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 21.14. For comparison, its industry has an average Forward P/E of 21.16, which means Abbott is trading at a discount to the group.
It is also worth noting that ABT currently has a PEG ratio of 3.91. 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. The Medical - Products industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $105.89 in the latest trading session, marking a +0.43% move from the prior day. It is also worth noting that ABT currently has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $105.89 in the latest trading session, marking a +0.43% move from the prior day. It is also worth noting that ABT currently has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $105.89 in the latest trading session, marking a +0.43% move from the prior day. It is also worth noting that ABT currently has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $105.89 in the latest trading session, marking a +0.43% move from the prior day. It is also worth noting that ABT currently has a PEG ratio of 3.91. Abbott Laboratories (ABT): Free Stock Analysis Report |
31466.0 | 2022-08-25 00:00:00 UTC | Noteworthy Thursday Option Activity: NEM, WYNN, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-nem-wynn-abt | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Newmont Corp (Symbol: NEM), where a total of 47,098 contracts have traded so far, representing approximately 4.7 million underlying shares. That amounts to about 50.1% of NEM's average daily trading volume over the past month of 9.4 million shares. Particularly high volume was seen for the $46 strike call option expiring August 26, 2022, with 12,400 contracts trading so far today, representing approximately 1.2 million underlying shares of NEM. Below is a chart showing NEM's trailing twelve month trading history, with the $46 strike highlighted in orange:
Wynn Resorts Ltd (Symbol: WYNN) options are showing a volume of 10,518 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 50.1% of WYNN's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $65 strike call option expiring August 26, 2022, with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $65 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) saw options trading volume of 17,556 contracts, representing approximately 1.8 million underlying shares or approximately 48.4% of ABT's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $75 strike put option expiring January 20, 2023, with 11,748 contracts trading so far today, representing approximately 1.2 million underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for NEM options, WYNN 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. | Particularly high volume was seen for the $75 strike put option expiring January 20, 2023, with 11,748 contracts trading so far today, representing approximately 1.2 million underlying shares of ABT. Below is a chart showing WYNN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 17,556 contracts, representing approximately 1.8 million underlying shares or approximately 48.4% of ABT's average daily trading volume over the past month, of 3.6 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for NEM options, WYNN options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing WYNN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 17,556 contracts, representing approximately 1.8 million underlying shares or approximately 48.4% of ABT's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $75 strike put option expiring January 20, 2023, with 11,748 contracts trading so far today, representing approximately 1.2 million underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for NEM options, WYNN options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing WYNN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 17,556 contracts, representing approximately 1.8 million underlying shares or approximately 48.4% of ABT's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $75 strike put option expiring January 20, 2023, with 11,748 contracts trading so far today, representing approximately 1.2 million underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for NEM options, WYNN options, or ABT options, visit StockOptionsChannel.com. | Below is a chart showing WYNN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) saw options trading volume of 17,556 contracts, representing approximately 1.8 million underlying shares or approximately 48.4% of ABT's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $75 strike put option expiring January 20, 2023, with 11,748 contracts trading so far today, representing approximately 1.2 million underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for NEM options, WYNN options, or ABT options, visit StockOptionsChannel.com. |
31467.0 | 2022-08-25 00:00:00 UTC | XLV, ABT, BMY, CVS: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/xlv-abt-bmy-cvs%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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $349.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 300,270,000 to 302,970,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.9%, and CVS Health Corporation (Symbol: CVS) is higher by about 0.7%. 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 $129.95. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.9%, and CVS Health Corporation (Symbol: CVS) is higher by about 0.7%. 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 $349.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 300,270,000 to 302,970,000). 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 down about 0.1%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.9%, and CVS Health Corporation (Symbol: CVS) is higher by about 0.7%. 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 $129.95. 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 down about 0.1%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.9%, and CVS Health Corporation (Symbol: CVS) is higher by about 0.7%. 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 $349.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 300,270,000 to 302,970,000). 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 $129.95. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.9%, and CVS Health Corporation (Symbol: CVS) is higher by about 0.7%. 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 $349.7 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 300,270,000 to 302,970,000). 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 $129.95. |
31468.0 | 2022-08-25 00:00:00 UTC | Here's Why Intuitive Surgical Stock Is A Better Pick Over This Medical Devices Company | ABT | https://www.nasdaq.com/articles/heres-why-intuitive-surgical-stock-is-a-better-pick-over-this-medical-devices-company | nan | nan | We think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Stryker stock (NYSE: SYK), despite ISRG being the more expensive of the two, with its P/S ratio of 13.7x, compared to just 4.7x for SYK stock. This gap in the valuation is largely justified, given Intuitive Surgical’s superior revenue growth, better profitability, lower financial risk, and better growth prospects.
If we look at stock returns, Intuitive Surgical’s 37% fall year-to-date has been worse than the 18% decline for Stryker. This compares with a 12% fall in the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss why we believe ISRG stock will offer better returns than SYK 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 Intuitive Surgical vs. Stryker: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuitive Surgical’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Intuitive Surgical has witnessed comparatively faster revenue growth of 15.5% vs. 9.0% for Stryker.
Looking at a longer time frame, Intuitive Surgical’s sales rose at an average annual growth rate of 16.2% to $5.7 billion in 2021, compared to $3.7 billion in 2018, while that for Stryker stood at 8.4%, with revenue of $17.1 billion in 2021, vs. $13.6 billion in 2018.
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.
Stryker’s revenue growth has been driven by new product launches, such as – Surgi-Count+ – a surgical sponge counting system. Earlier this year, it launched Insignia Hip Stem and Power-PRO 2 ambulance cot, aiding its revenue growth. Of late, it has seen a rise in volume for both of its segments – MedSurg & Neurotechnology and Orthopedics and Spine.
Stryker’s revenue growth has also been buoyed by the acquisition of Wright Medical, a medical device company, in late 2020. Earlier this year, Stryker agreed to acquire Vocera Communications – a company focused on communications systems for the healthcare industry.
Our Intuitive Surgical Revenue and Stryker Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Intuitive Surgical’s revenue is expected to grow faster than Stryker’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 13.9% for Intuitive Surgical, compared to a 7.2% CAGR for Stryker, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies negatively impacted by Covid and those 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. Intuitive Surgical Is More Profitable, And It Comes With Lower Risk
Intuitive Surgical’s operating margin of 13.7% over the last twelve months is marginally better than 13.2% for Stryker.
This compares with 30.7% and 18.2% figures seen in 2019, before the pandemic, respectively.
Our Intuitive Surgical Operating Income and Stryker Operating Income dashboards have more details.
Intuitive Surgical’s free cash flow margin of 31.3% is much higher than 17.4% for Stryker.
Looking at financial risk, Intuitive Surgical is much better placed than Stryker. Its 0.6% debt as a percentage of equity is much lower than 33.2% for Stryker, while its 62.4% cash as a percentage of assets is much higher than 6.8% for the latter, implying that Intuitive Surgical has a better debt position and has more cash cushion.
3. The Net of It All
Intuitive Surgical has demonstrated better revenue growth and superior profitability and offers lower financial risk. On the other hand, Stryker is available at a relatively 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.
The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 60% for ISRG over this period vs. a 30% expected return for SYK stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over SYK, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Stryker – which also provides more details on how we arrive at these numbers.
While ISRG stock looks like a better pick over SYK stock, 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 how counter-intuitive the stock valuation is for Syneos Health vs. Amerco.
With inflation rising and the Fed raising interest rates, among other factors, ISRG stock has plunged 37% 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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return -2% -37% 219%
SYK Return 2% -18% 82%
S&P 500 Return 1% -12% 86%
Trefis Multi-Strategy Portfolio 2% -12% 247%
[1] Month-to-date and year-to-date as of 8/22/2022
[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 compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuitive Surgical vs. Stryker: Which Stock Is A Better Bet? 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. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. | This gap in the valuation is largely justified, given Intuitive Surgical’s superior revenue growth, better profitability, lower financial risk, and better growth prospects. The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 60% for ISRG over this period vs. a 30% expected return for SYK stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over SYK, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Stryker – which also provides more details on how we arrive at these numbers. Total [2] ISRG Return -2% -37% 219% SYK Return 2% -18% 82% S&P 500 Return 1% -12% 86% Trefis Multi-Strategy Portfolio 2% -12% 247% [1] Month-to-date and year-to-date as of 8/22/2022 [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 think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Stryker stock (NYSE: SYK), despite ISRG being the more expensive of the two, with its P/S ratio of 13.7x, compared to just 4.7x for SYK stock. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuitive Surgical vs. Stryker: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 60% for ISRG over this period vs. a 30% expected return for SYK stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over SYK, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Stryker – which also provides more details on how we arrive at these numbers. | Still, Intuitive Surgical has witnessed comparatively faster revenue growth of 15.5% vs. 9.0% for Stryker. Intuitive Surgical Is More Profitable, And It Comes With Lower Risk Intuitive Surgical’s operating margin of 13.7% over the last twelve months is marginally better than 13.2% for Stryker. The table below summarizes our revenue and return expectations for Intuitive Surgical and Stryker over the next three years and points to an expected return of 60% for ISRG over this period vs. a 30% expected return for SYK stock, implying that both stocks offer good buying opportunity at current levels but if investors have to pick one, they will likely be better off buying ISRG over SYK, despite its high valuation, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Stryker – which also provides more details on how we arrive at these numbers. |
31469.0 | 2022-08-24 00:00:00 UTC | Abbott (ABT) to Offer New Treatment Option for Chronic Pain | ABT | https://www.nasdaq.com/articles/abbott-abt-to-offer-new-treatment-option-for-chronic-pain | nan | nan | Abbott Laboratories ABT recently received FDA approval for its novel Proclaim Plus spinal cord stimulation (SCS) system featuring FlexBurst360 therapy. The FlexBurst360 therapy is the next generation of Abbott's proprietary BurstDR stimulation, which offers pain coverage across six areas of the trunk and/or limbs. It facilitates programming that can be changed according to a person's evolving therapeutic needs.
The Proclaim Plus SCS system has been designed to fit within an individual’s life. It is recharge-free and offers a battery lasting up to 10 years. The Proclaim Plus SCS system can be used with Abbott's NeuroSphere Virtual Clinic connected care technology. Its therapy settings can be accessed with a personal mobile device or via an Abbott-provided mobile device.
FlexBurst360 therapy on the Proclaim Plus system enables physicians to detect the lowest effective dose of stimulation for each patient and alter it in response to changing pain requirements. The system allows doctors to control multiple independent BurstDR stimulation areas to facilitate broader pain coverage without overstimulation risk.
An Overview of the BurstDR Therapy
The BurstDR therapy from Abbott is an exclusive stimulation technology that delivers pulses or bursts of mild electrical energy to modify pain signals as they pass from the spinal cord to the brain. The Abbott BurstDR platform can mimic natural patterns found in the brain that helps in pain relief, allowing patients with chronic pain to perform everyday activities while relieving any emotional distress.
The findings from clinical studies have demonstrated that the BurstDR technology delivers superior pain relief than tonic stimulation, improves a patient’s day-to-day life and lowers the emotional suffering associated with pain. The BurstDR technology has been preferred by 87% of people compared with standard tonic stimulation technology.
Image Source: Zacks Investment Research
Despite the many advantages of BurstDR, some patients still experience pain due to multiple painful areas and evolving pain needs. However, the latest availability of the Proclaim Plus and FlexBurst360 has improved an already established platform to treat more patients who suffer from pain across several body parts and changing pain over time.
Industry Prospects
Per a report published in PR Newswire, the global chronic pain treatment market is expected to see a 7.2% CAGR between 2020 and 2030. Factors such as the surge in the geriatric population, increasing incidence of people with chronic diseases and greater awareness regarding chronic pain can be attributable to market growth.
Given the market prospects, the latest FDA approval for Abbott’s Proclaim Plus SCS system with FlexBurst360 therapy seems opportune.
Other Notable Developments
Of late, Abbott has gained a series of regulatory approvals.
In July 2022, the company gained FDA’s Breakthrough Device Designation to investigate the use of its deep brain stimulation (DBS) system in treatment-resistant depression (TRD), a form of major depressive disorder. Abbott's DBS System is a personalized, adjustable therapy that involves inserting small wires or leads into specific regions of the brain. The receipt of Breakthrough Device Designation will make the DBS System available as a novel treatment option for TRD soon.
In May 2022, the company received the FDA’s approval for its next-generation FreeStyle Libre 3 system for diabetic patients aged four years and older. The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor, with readings sent directly to a smartphone every minute. It is priced similarly to the previous versions to enhance access and affordability.
Share Price Performance
The stock has outperformed its industry in the past year. It has declined 15% against the industry’s 48.6% growth.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Patterson Companies, Inc. PDCO and McKesson Corporation MCK.
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 5.8% against the industry’s 33.2% fall.
Patterson Companies has an estimated long-term growth rate of 7.9%. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%. It currently flaunts a Zacks Rank #2 (Buy).
Patterson Companies has outperformed its industry in the past year. PDCO has lost 1.2% compared with the industry’s 10.3% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2.
McKesson has outperformed its industry in the past year. MCK has gained 81.8% against the industry’s 10.3% fall.
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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 recently received FDA approval for its novel Proclaim Plus spinal cord stimulation (SCS) system featuring FlexBurst360 therapy. Abbott Laboratories (ABT): Free Stock Analysis Report FlexBurst360 therapy on the Proclaim Plus system enables physicians to detect the lowest effective dose of stimulation for each patient and alter it in response to changing pain requirements. | Abbott Laboratories ABT recently received FDA approval for its novel Proclaim Plus spinal cord stimulation (SCS) system featuring FlexBurst360 therapy. Abbott Laboratories (ABT): Free Stock Analysis Report The findings from clinical studies have demonstrated that the BurstDR technology delivers superior pain relief than tonic stimulation, improves a patient’s day-to-day life and lowers the emotional suffering associated with pain. | Abbott Laboratories ABT recently received FDA approval for its novel Proclaim Plus spinal cord stimulation (SCS) system featuring FlexBurst360 therapy. Abbott Laboratories (ABT): Free Stock Analysis Report An Overview of the BurstDR Therapy The BurstDR therapy from Abbott is an exclusive stimulation technology that delivers pulses or bursts of mild electrical energy to modify pain signals as they pass from the spinal cord to the brain. | Abbott Laboratories ABT recently received FDA approval for its novel Proclaim Plus spinal cord stimulation (SCS) system featuring FlexBurst360 therapy. Abbott Laboratories (ABT): Free Stock Analysis Report Image Source: Zacks Investment Research Despite the many advantages of BurstDR, some patients still experience pain due to multiple painful areas and evolving pain needs. |
31470.0 | 2022-08-24 00:00:00 UTC | The Best Stocks to Invest $5,000 in Right Now | ABT | https://www.nasdaq.com/articles/the-best-stocks-to-invest-%245000-in-right-now-1 | nan | nan | It may seem counterintuitive, but now is a great time to buy stocks. True, equity markets are down, and economic problems persist. However, history affirms that bull markets always follow downturns, and the current economic challenges won't last forever. That's why it's worth buying stocks while they are still down.
No list of great companies to invest in will satisfy everyone, but Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT) are stocks worth watching. They are both leaders in their industries, boast solid growth avenues and strong moats, and have underperformed the market this year.
If you have $5,000 to spare that isn't earmarked for emergencies, these two stocks would be a great addition to your portfolio.
ABT data by YCharts
1. Abbott Laboratories
Abbott Laboratories is one of the most notable medical device companies around. It has been racking up an impressive record of innovations for decades. Although past history is no guarantee of future success, Abbott Laboratories' business remains healthy, as revenue and profits continue growing despite the headwinds it encountered earlier this year.
In the second quarter, the healthcare company's revenue jumped by 10.1% year over year to $11.3 billion. Its adjusted earnings per share increased by 22.2% year over year to $1.43.
Abbott Laboratories draws its competitive edge from multiple sources. First, its products benefit from patent protection. The company boasts thousands of active patents worldwide, which help protect its innovations and grant it some pricing power.
Second, there is the power of Abbott Laboratories' brands -- one of the strongest in the medical devices industry, according to some estimates. Customers tend to gravitate toward companies that are very well-known. Abbott's strong moat ensures it can profit from the healthcare sector and invaluable and expanding industry thanks to secular tailwinds such as the world's aging population and the rising incidence of chronic illnesses such as diabetes.
That's why some of Abbott Laboratories' products have a bright future. That includes the FreeStyle Libre, a continuous glucose monitoring system that helps diabetes patients keep track of their blood glucose levels. There's also Abbott's portfolio of devices that allow physicians to care for patients suffering from heart-related issues, which are more likely to affect the elderly.
Abbott's MitraClip for mitral valve repair and its TriClip, a treatment option for tricuspid regurgitation (both allow for minimally invasive procedures), are just two of the company's products in this area. Abbott may have underperformed the market this year, but a strong moat and solid growth paths will help the healthcare leader rebound and eventually return to its market-beating ways.
2. Microsoft
Microsoft is synonymous with computer operating systems (OS), a market in which it held a roughly 76% market share as of June. Microsoft's brand -- which is one of the most valuable in the world -- forms an integral part of its competitive advantage.
But the company also benefits from high switching costs thanks to its suite of services, which includes productivity tools that have become essential to the functioning of millions of businesses worldwide. That's one more reason it will continue to keep the bulk of its customers. Despite its dominance in computer OS, Microsoft's most important growth path is in the cloud computing industry.
It seems like a natural extension of the company's business, since cloud solutions enable businesses to be more efficient and productive.
According to some projections, the cloud computing market will register a compound annual growth rate of 15.7% through 2030. Microsoft is second only to Amazon in this space. Microsoft Azure has become a major driver behind the company's top-line growth. Microsoft's fourth quarter for its fiscal year 2022 ended on June 30. It reported revenue of $51.9 billion during this quarter, 12% higher than the year-ago period.
Microsoft Azure revenue jumped by more than triple that -- 40% year over year. The tech company's cloud business also generates juicier margins, and it is having a positive impact on earnings growth. There is no end in sight for the expansion of Microsoft's cloud business, and the company will also remain a leading computer OS provider for a long time. That makes a strong case in favor of getting in on Microsoft's 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. | No list of great companies to invest in will satisfy everyone, but Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT) are stocks worth watching. ABT data by YCharts 1. Although past history is no guarantee of future success, Abbott Laboratories' business remains healthy, as revenue and profits continue growing despite the headwinds it encountered earlier this year. | No list of great companies to invest in will satisfy everyone, but Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT) are stocks worth watching. ABT data by YCharts 1. They are both leaders in their industries, boast solid growth avenues and strong moats, and have underperformed the market this year. | No list of great companies to invest in will satisfy everyone, but Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT) are stocks worth watching. ABT data by YCharts 1. Abbott Laboratories Abbott Laboratories is one of the most notable medical device companies around. | No list of great companies to invest in will satisfy everyone, but Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT) are stocks worth watching. ABT data by YCharts 1. Abbott Laboratories Abbott Laboratories is one of the most notable medical device companies around. |
31471.0 | 2022-08-23 00:00:00 UTC | U.S. to extend baby formula waivers for low-income families - Politico | ABT | https://www.nasdaq.com/articles/u.s.-to-extend-baby-formula-waivers-for-low-income-families-politico | nan | nan | Adds Abbott response
Aug 23 (Reuters) - The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday.
Earlier this year, the U.S. Department of Agriculture started temporarily covering the cost of baby formula for low-income families in some states which access formula through the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program.
The move was made after closure of Abbott Laboratories ABT.N Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product.
The current waivers are set to expire on Sept. 30 and an extension will help the government avoid a steep drop in infant formula access as shortages linger in pockets across the country, the Politico report said, citing two people familiar with the matter.
Infants enrolled in the WIC program consumed about 56% of all infant formula in the United States in 2018.
WIC shoppers can typically only buy formula produced by the company that has a contract with their state, territory, or tribe. Those companies provide rebates to cut the cost of formula to WIC shoppers.
Abbott Laboratories ABT.N, the biggest participant in the WIC program, said on Tuesday it is extending rebates on competitive products to help low-income families through Oct. 31.
The USDA and the Department of Health and Human Services did not immediately respond to Reuters' requests for comment.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Maju Samuel)
((mrinalika.roy@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 was made after closure of Abbott Laboratories ABT.N Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product. Abbott Laboratories ABT.N, the biggest participant in the WIC program, said on Tuesday it is extending rebates on competitive products to help low-income families through Oct. 31. Adds Abbott response Aug 23 (Reuters) - The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday. | Abbott Laboratories ABT.N, the biggest participant in the WIC program, said on Tuesday it is extending rebates on competitive products to help low-income families through Oct. 31. The move was made after closure of Abbott Laboratories ABT.N Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product. Adds Abbott response Aug 23 (Reuters) - The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday. | The move was made after closure of Abbott Laboratories ABT.N Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product. Abbott Laboratories ABT.N, the biggest participant in the WIC program, said on Tuesday it is extending rebates on competitive products to help low-income families through Oct. 31. Adds Abbott response Aug 23 (Reuters) - The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday. | Abbott Laboratories ABT.N, the biggest participant in the WIC program, said on Tuesday it is extending rebates on competitive products to help low-income families through Oct. 31. The move was made after closure of Abbott Laboratories ABT.N Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product. Adds Abbott response Aug 23 (Reuters) - The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday. |
31472.0 | 2022-08-22 00:00:00 UTC | What To Expect From Medtronic's Q1? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-medtronics-q1 | nan | nan | Medtronic (NYSE: MDT) is scheduled to report its fiscal 2023 first-quarter results on Tuesday, August 23. We expect Medtronic to post revenues and earnings above the street estimates, aided by its newly launched cardiovascular products. However, high inflation, the Covid-19-induced lockdowns in China, and supply chain disruptions likely weighed on the company’s overall performance. Looking at MDT stock, we believe that it has more room for growth, as discussed below. Our interactive dashboard analysis of Medtronic’s Earnings Preview has additional details.
(1) Revenues are expected to be higher than the consensus estimate
Trefis estimates Medtronic’s Q1 fiscal 2023 total revenues to be around $7.3 billion, slightly higher than the $7.2 billion consensus estimate.
The company launched the Micra AV pacemaker in Japan in November 2021 and secured regulatory approval in China in May 2022. It also launched Abre venous self-expanding stent system for Deep Venous disease. These new products should aid its Cardiovascular sales growth.
Medical Surgical segment may see lower sales due to a continued decline in ventilator demand.
Looking at the last quarter, Medtronic’s revenue declined 1% y-o-y to $8.1 billion, as a 2% rise in Cardiovascular sales was more than offset by a 5% decline in Medical Surgical and an 8% fall in Diabetes sales.
Our dashboard on Medtronic Revenues provides more details on the company’s segments.
(2) EPS likely to be above the consensus estimates
Medtronic’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $1.15 per Trefis analysis, above the consensus estimate of $1.12.
Medtronic’s net income of $2.0 billion in Q4 reflected a 0.4% rise y-o-y, as the company’s adjusted operating margins improved 40 bps to 28.8%.
Looking at the full fiscal 2023, we expect EPS to be higher at $5.58, compared to the $5.55 seen in fiscal 2022.
(3) MDT stock has more room for growth
We estimate Medtronic’s Valuation to be $114 per share, reflecting a 20% upside from its current market price of $95.
This represents a forward P/EBITDA multiple of 16x based on our Medtronic’s EBITDA forecast.
That said, if the company reports upbeat Q1 results and full fiscal guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in higher levels for MDT stock.
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised 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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return 3% -8% 34%
S&P 500 Return 4% -10% 91%
Trefis Multi-Strategy Portfolio 5% -9% 258%
[1] Month-to-date and year-to-date as of 8/19/2022
[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 Medtronic to post revenues and earnings above the street estimates, aided by its newly launched cardiovascular products. Medtronic’s net income of $2.0 billion in Q4 reflected a 0.4% rise y-o-y, as the company’s adjusted operating margins improved 40 bps to 28.8%. (3) MDT stock has more room for growth We estimate Medtronic’s Valuation to be $114 per share, reflecting a 20% upside from its current market price of $95. | (1) Revenues are expected to be higher than the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2023 total revenues to be around $7.3 billion, slightly higher than the $7.2 billion consensus estimate. (2) EPS likely to be above the consensus estimates Medtronic’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $1.15 per Trefis analysis, above the consensus estimate of $1.12. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While MDT stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. | (1) Revenues are expected to be higher than the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2023 total revenues to be around $7.3 billion, slightly higher than the $7.2 billion consensus estimate. (2) EPS likely to be above the consensus estimates Medtronic’s Q1 fiscal 2023 earnings per share (EPS) is expected to be $1.15 per Trefis analysis, above the consensus estimate of $1.12. Total [2] MDT Return 3% -8% 34% S&P 500 Return 4% -10% 91% Trefis Multi-Strategy Portfolio 5% -9% 258% [1] Month-to-date and year-to-date as of 8/19/2022 [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. | (1) Revenues are expected to be higher than the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2023 total revenues to be around $7.3 billion, slightly higher than the $7.2 billion consensus estimate. (3) MDT stock has more room for growth We estimate Medtronic’s Valuation to be $114 per share, reflecting a 20% upside from its current market price of $95. Total [2] MDT Return 3% -8% 34% S&P 500 Return 4% -10% 91% Trefis Multi-Strategy Portfolio 5% -9% 258% [1] Month-to-date and year-to-date as of 8/19/2022 [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. |
31473.0 | 2022-08-22 00:00:00 UTC | The Return Trends At Abbott Laboratories (NYSE:ABT) Look Promising | ABT | https://www.nasdaq.com/articles/the-return-trends-at-abbott-laboratories-nyse%3Aabt-look-promising | nan | nan | Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital.
Return On Capital Employed (ROCE): What Is It?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Abbott Laboratories, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = US$11b ÷ (US$74b - US$12b) (Based on the trailing twelve months to June 2022).
So, Abbott Laboratories has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Medical Equipment industry average of 9.2% it's much better.
NYSE:ABT Return on Capital Employed August 22nd 2022
Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
How Are Returns Trending?
Abbott Laboratories is showing promise given that its ROCE is trending up and to the right. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 287% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.
The Key Takeaway
In summary, we're delighted to see that Abbott Laboratories has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue.
Like most companies, Abbott Laboratories does come with some risks, and we've found 2 warning signs that you should be aware of.
While Abbott Laboratories may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
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. | So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. NYSE:ABT Return on Capital Employed August 22nd 2022 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. | So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. NYSE:ABT Return on Capital Employed August 22nd 2022 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. | NYSE:ABT Return on Capital Employed August 22nd 2022 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. | NYSE:ABT Return on Capital Employed August 22nd 2022 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. Return On Capital Employed (ROCE): What Is It? |
31474.0 | 2022-08-19 00:00:00 UTC | Abbott (ABT) Down 0.7% Since Last Earnings Report: Can It Rebound? | ABT | https://www.nasdaq.com/articles/abbott-abt-down-0.7-since-last-earnings-report%3A-can-it-rebound | nan | nan | It has been about a month since the last earnings report for Abbott (ABT). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Abbott due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Abbott's Q2 Earnings and Revenues Beat Estimates
Abbott reported second-quarter 2022 adjusted earnings of $1.43 per share, which exceeded the Zacks Consensus Estimate by 31.2%. The adjusted figure also improved 22.2% from the prior-year quarter’s levels.
The quarter’s adjustments include certain non-recurring intangible amortization expenses and other expenses primarily associated with restructuring actions, acquisitions and other expenses.
GAAP earnings per share came in at $1.14, surging 72.7% year on year.
Second-quarter worldwide sales of $11.26 billion were up 10.1% 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 14.3% year over year in the reported quarter.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition, and Diagnostics.
In the second quarter, Established Pharmaceuticals sales improved 3.7% on a reported basis (up 9.2% on an organic basis) to $1.22 billion. Organic sales in key emerging markets improved 7.1% year over year. According to Abbott, organic sales improvement was backed by double-digit growth in several geographies and therapeutic areas, including cardiometabolic, respiratory and central nervous system/pain management.
Medical Devices business sales improved 2.5% on a reported basis (up 7.5% on an organic basis) to $3.76 billion. Barring Neuromodulation and Vascular businesses, all other sub-segments in the quarter reported organic revenue growth.
Diabetes Care reported organic growth of 19.4% year over year, led by FreeStyle Libre, which contributed 25.6% to organic sales growth in the reported quarter. Heart Failure sales improved 8.3% organically. Meanwhile, the Rhythm Management business recorded single-digit organic growth of 0.9% in the quarter under review. Electrophysiology and Structural Heart recorded organic growth of 5% and 9.9%, respectively, in the quarter under review.
Nutrition sales were down 7.4% year over year on a reported basis (down 4.5% on an organic basis) to $1.95 billion. Pediatric Nutrition sales registered a 13.4% slump on an organic basis. The downside in both 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.
Adult Nutrition sales improved 5.2% organically. Per the company, Adult Nutrition sales benefited from improved sales performance of Abbott's complete and balanced nutrition brand, Ensure, and diabetes nutrition brand, Glucerna.
Diagnostics sales were up 33.1% year over year on a reported basis (up 36.9% on an organic basis) to $4.32 billion. Core Laboratory Diagnostics sales were down 1.3% organically. Meanwhile, Molecular Diagnostics declined 24.2% on an organic basis. Rapid Diagnostics sales surged 84.6% on an organic basis, whereas Point of Care Diagnostics sales rose 2.4% organically.
Margins
Gross profit for the reported quarter rose 19.9% year over year to $6.32 billion. Gross margin expanded 457 basis points (bps) to 56.2%.
Selling, general and administrative expenses were up 1.1% year over year to $2.76 billion. Research and development expenses rose 4.6% year over year to $684 million.
The company reported an adjusted operating profit of $2.88 billion for the quarter under review. Adjusted operating margin, too, expanded 706 bps to 25.6%.
2022 Guidance
Abbott has raised its 2022 earnings per share guidance.
Full-year adjusted earnings from continuing operations (excluding specified items of $1.40 per share) are expected to be at least $4.90, up from previous expectation of adjusted earnings per share of at least $4.70. The current Zacks Consensus Estimate is pegged at $4.81.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.61% due to these changes.
VGM Scores
At this time, Abbott has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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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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. | 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 drivers. | It has been about a month since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q2 Earnings and Revenues Beat Estimates Abbott reported second-quarter 2022 adjusted earnings of $1.43 per share, which exceeded the Zacks Consensus Estimate by 31.2%. | It has been about a month since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Diabetes Care reported organic growth of 19.4% year over year, led by FreeStyle Libre, which contributed 25.6% to organic sales growth in the reported quarter. | It has been about a month since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q2 Earnings and Revenues Beat Estimates Abbott reported second-quarter 2022 adjusted earnings of $1.43 per share, which exceeded the Zacks Consensus Estimate by 31.2%. |
31475.0 | 2022-08-19 00:00:00 UTC | The Zacks Analyst Blog Highlights JPMorgan Chase, AbbVie, Abbott Laboratories, Intuit and Caterpillar | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-jpmorgan-chase-abbvie-abbott-laboratories-intuit-and | nan | nan | For Immediate Release
Chicago, IL – August 19, 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: JPMorgan Chase & Co. JPM, AbbVie Inc. ABBV, Abbott Laboratories ABT, Intuit Inc. INTU, and Caterpillar Inc. CAT.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for JPMorgan, AbbVie and Abbott
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co., AbbVie Inc. and Abbott Laboratories. 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 >>>
JPMorgan Chase shares have declined -18.3% over the past year against the Zacks Banks - Major Regional industry's decline of -8.8%. The company's capital markets business and higher mortgage rates are likely to make fee income growth challenging due to the uncertain macroeconomic environment. Moreover, steadily rising operating expenses remain a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.
However, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep aiding the top line.
(You can read the full research report on JPMorgan Chase here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan's acquisition has diversified AbbVie's revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica's sales.
(You can read the full research report on AbbVie here >>>)
Abbott shares have declined -11.7% over the past year against the Zacks Medical - Products industry's decline of -44.5%. 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 raises worries.
Offsetting these negatives, Abbott continues to enjoy robust organic sales growth across core operating segments, barring Nutrition, as reflected in its latest quarterly release. The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. The Zacks analyst 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 here >>>)
Other noteworthy reports we are featuring today include Intuit Inc., and Caterpillar Inc.
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>>>
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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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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: JPMorgan Chase & Co. JPM, AbbVie Inc. ABBV, Abbott Laboratories ABT, Intuit Inc. INTU, and Caterpillar Inc. CAT. Abbott Laboratories (ABT): Free Stock Analysis Report (You can read the full research report on JPMorgan Chase here >>>) AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, AbbVie Inc. ABBV, Abbott Laboratories ABT, Intuit Inc. INTU, and Caterpillar Inc. CAT. Abbott Laboratories (ABT): Free Stock Analysis Report Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co., AbbVie Inc. and Abbott Laboratories. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, AbbVie Inc. ABBV, Abbott Laboratories ABT, Intuit Inc. INTU, and Caterpillar Inc. CAT. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for JPMorgan, AbbVie and Abbott The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, AbbVie Inc. ABBV, Abbott Laboratories ABT, Intuit Inc. INTU, and Caterpillar Inc. CAT. Abbott Laboratories (ABT): Free Stock Analysis Report The company's capital markets business and higher mortgage rates are likely to make fee income growth challenging due to the uncertain macroeconomic environment. |
31476.0 | 2022-08-18 00:00:00 UTC | Top Analyst Reports for JPMorgan Chase, AbbVie & Abbott | ABT | https://www.nasdaq.com/articles/top-analyst-reports-for-jpmorgan-chase-abbvie-abbott | nan | nan | Thursday, August 18, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). 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 >>>
JPMorgan Chase shares have declined -18.3% over the past year against the Zacks Banks - Major Regional industry’s decline of -8.8%. The company’s capital markets business and higher mortgage rates are likely to make fee income growth challenging due to the uncertain macroeconomic environment. Moreover, steadily rising operating expenses remain a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.
However, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep aiding the top line.
(You can read the full research report on JPMorgan Chase here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
(You can read the full research report on AbbVie here >>>)
Abbott shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -44.5%. 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 worries.
Offsetting these negatives, Abbott continues to enjoy robust organic sales growth across core operating segments, barring Nutrition, as reflected in its latest quarterly release. The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. The Zacks analyst 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 here >>>)
Other noteworthy reports we are featuring today include Linde plc (LIN), Intuit Inc. (INTU), and Caterpillar Inc. (CAT).
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>>>
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Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
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The Zacks Analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta, which is likely to help reduce the debt burden and raise shareholder returns.
Strength in the End Market to Drive Applied Industrial (AIT)
Per the Zacks analyst, solid demand across the technology, metals, refining, chemicals and automation end markets are likely to drive Applied Industrial's top-line performance in the quarters ahead.
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Per the Zacks analyst, persistent of soft comps performance may hurt Children's Place sales. The company expects a low-double-digit decline in comps in both the third quarter as well as fiscal year.
Weakening Memory Chip Demand to Hurt Micron's (MU) Sales
Per the Zacks Analyst, weakening consumer spending on personal computers and smartphones is expected to negatively impact demand for Micron's memory chips in the near term.
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Per Zacks analyst, News Corporation is seeing a soft Subscription Video Services segment for a while. Lower revenues from residential broadcast product and currency headwinds hurt the unit's revenues.
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JPMorgan Chase & Co. (JPM): 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report | Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. 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 Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report | Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) and Abbott Laboratories (ABT). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Higher Rates to Aid JPMorgan (JPM) Margins, Fee Income A Woe AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay Featured Reports Linde (LIN) Benefits from Advanced Gas Processing Solutions The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Abbott Laboratories (ABT): Free Stock Analysis Report |
31477.0 | 2022-08-18 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-2 | nan | nan | If you're hunting for stocks that you can expect to keep hiking their dividends year after year, look no further than the Dividend Kings. Every member of this elite group has a history of raising dividend payments year after year without interruption for at least 50 years, and many of the businesses are eager to do the same for the next 50 years.
Investing in one of those companies is a fair bet that you'll get the advantage of those hikes for the long haul, so let's examine three of the juicier royals that are ripe for buying today.
1. Becton, Dickinson
Becton, Dickinson (NYSE: BDX) makes the healthcare goods that the world's clinics, laboratories, and operating rooms need, like sterile dressings, diagnostic tests, and test tubes. And it's getting into cloud-based software for pharmacies and research groups, too.
With more than $20 billion in trailing-12-month (TTM) revenue, it's also one of the biggest businesses on the planet, which should go a long way to convince investors that it'll be sticking around for the foreseeable future.
While it isn't a rapidly growing company -- diluted earnings per share (EPS) increased 13.2% year over year in its fiscal third quarter -- that shouldn't matter much for long-term investors. In the last 10 years, its dividend has increased by 93.3%, and there's likely more on the way, given its proven ability to expand, albeit ploddingly, into global biomedical markets.
In other words, slow growth isn't a problem if it's relatively consistent and has few pullbacks over time, like with BD. Its customers aren't about to reduce their orders for evergreen medical supplies, and given the expansion of the global population over time, it's reasonable to expect that BD will face slowly rising demand in the future, just like it did in the past.
2. Abbott Laboratories
Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. Most of its products exhibit consistent levels of demand over time, which generates steady cash flows regardless of economic headwinds.
And it has the distinction of paying its dividend for 394 consecutive quarters, growing it by more than 77.3% in the last five years. To accomplish that, it has innovated in response to opportunity, often quite quickly.
For example, its coronavirus diagnostic tests brought in $2.3 billion in revenue in the second quarter of this year alone, accounting for a significant portion of its quarterly haul of $11.3 billion. That's a couple of billion dollars in sales roughly every three months that it wasn't making a mere three years ago, before the pandemic.
And it won't be the last time the company successfully chases an emerging market while simultaneously maintaining and expanding its revenue from existing products. Medical devices are likely to be its biggest growth segment, as the margins are even more attractive than with diagnostics.
3. AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical company that develops and sells medicines, and it's a spin-off of Abbott Laboratories. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. So it goes big on squeezing as much money as it can out of its drugs by investigating them for new indications once they're approved for sale.
As a result, in the first quarter of this year, it was waiting on regulators to weigh in on a grand total of four different programs, all of which were based on its existing medicines. Plus, it has dozens of programs in late-stage clinical trials, with even more working their way through the earlier parts of the process. And consistent success with commercializing its drugs is why its annual revenue rose by nearly 100% in the last five years.
It'll need to keep up the good work if it wants to continue hiking its dividend, which investors have been pleased to see expand by 120.3% since around this time in late 2018.
And this Dividend King isn't without risks. Management expects to expand its top line at a compound annual rate in the low single digits from 2025 through 2030 after weak growth in 2023 and 2024 stemming from the exclusivity expiration of one of its biggest-selling drugs, Humira. For long-term investors, that period of slow growth just might be a great time to buy AbbVie's shares should they become priced at a discount.
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Alex Carchidi has positions in Abbott Laboratories. The Motley Fool recommends Becton, Dickinson. 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 Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. Its customers aren't about to reduce their orders for evergreen medical supplies, and given the expansion of the global population over time, it's reasonable to expect that BD will face slowly rising demand in the future, just like it did in the past. Because its drugs eventually lose their exclusivity protections, opening the door for generics to steal their market share, AbbVie can't rest on its laurels or expect to develop a base of revenue that's safe in the long term. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. Becton, Dickinson Becton, Dickinson (NYSE: BDX) makes the healthcare goods that the world's clinics, laboratories, and operating rooms need, like sterile dressings, diagnostic tests, and test tubes. While it isn't a rapidly growing company -- diluted earnings per share (EPS) increased 13.2% year over year in its fiscal third quarter -- that shouldn't matter much for long-term investors. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. If you're hunting for stocks that you can expect to keep hiking their dividends year after year, look no further than the Dividend Kings. Every member of this elite group has a history of raising dividend payments year after year without interruption for at least 50 years, and many of the businesses are eager to do the same for the next 50 years. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) produces diagnostic tests and surgical goods, but it also makes medical devices like pacemakers and medical nutrition products like baby formula. If you're hunting for stocks that you can expect to keep hiking their dividends year after year, look no further than the Dividend Kings. For example, its coronavirus diagnostic tests brought in $2.3 billion in revenue in the second quarter of this year alone, accounting for a significant portion of its quarterly haul of $11.3 billion. |
31478.0 | 2022-08-16 00:00:00 UTC | Noteworthy ETF Outflows: VIG, KO, ABT, CMCSA | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-vig-ko-abt-cmcsa | 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 Dividend Appreciation ETF (Symbol: VIG) where we have detected an approximate $240.1 million dollar outflow -- that's a 0.4% decrease week over week (from 418,096,347 to 416,583,787). Among the largest underlying components of VIG, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.3%, and Comcast Corp (Symbol: CMCSA) is lower by about 1.3%. For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average:
Looking at the chart above, VIG's low point in its 52 week range is $137.50 per share, with $172.87 as the 52 week high point — that compares with a last trade of $158.99. 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 »
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 VIG, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.3%, and Comcast Corp (Symbol: CMCSA) is lower by about 1.3%. For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average: Looking at the chart above, VIG's low point in its 52 week range is $137.50 per share, with $172.87 as the 52 week high point — that compares with a last trade of $158.99. 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 VIG, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.3%, and Comcast Corp (Symbol: CMCSA) is lower by about 1.3%. For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average: Looking at the chart above, VIG's low point in its 52 week range is $137.50 per share, with $172.87 as the 52 week high point — that compares with a last trade of $158.99. 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 VIG, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.3%, and Comcast Corp (Symbol: CMCSA) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Dividend Appreciation ETF (Symbol: VIG) where we have detected an approximate $240.1 million dollar outflow -- that's a 0.4% decrease week over week (from 418,096,347 to 416,583,787). For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average: Looking at the chart above, VIG's low point in its 52 week range is $137.50 per share, with $172.87 as the 52 week high point — that compares with a last trade of $158.99. | Among the largest underlying components of VIG, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.3%, and Comcast Corp (Symbol: CMCSA) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Dividend Appreciation ETF (Symbol: VIG) where we have detected an approximate $240.1 million dollar outflow -- that's a 0.4% decrease week over week (from 418,096,347 to 416,583,787). For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average: Looking at the chart above, VIG's low point in its 52 week range is $137.50 per share, with $172.87 as the 52 week high point — that compares with a last trade of $158.99. |
31479.0 | 2022-08-14 00:00:00 UTC | Should Dividend Investors Add This Stock to Their Portfolios? | ABT | https://www.nasdaq.com/articles/should-dividend-investors-add-this-stock-to-their-portfolios | nan | nan | In favorable economic environments, even mediocre companies are able to grow their dividends. But when the going gets tough, it may be time to focus on Dividend Kings. These are the most proven dividend-paying stocks because they have demonstrated an ability to raise their payouts for at least 50 years. A half a century is such a long period of time that it virtually guarantees a company has raised its dividend through at least several recessions.
With 50 consecutive years of dividend growth, healthcare giant Abbott Laboratories (NYSE: ABT) is a Dividend King. Is it a buy for income investors right now? Let's dig into its fundamentals and valuation to get an answer.
A proven track record of defying analysts' expectations
In late July, Abbott Laboratories shared its financial results for the second quarter ended June 30. The healthcare company once again topped average analysts' expectations.
Abbott reported $11.3 billion in sales during the second quarter, which was 10.1% higher than the year-ago period. This handily surpassed the analyst sales consensus of $10.4 billion for the quarter. And it was the ninth quarter out of the last 10 quarters that the company has done so.
As was also the case in the previous quarter, Abbott's nutrition segment was the only segment to not log year-over-year sales growth. Sales for the segment declined 7.4% year over year to $2 billion in the second quarter. That's because the company issued a voluntary recall and manufacturing shutdown on some of its baby formula products at a U.S. plant back in February. The good news for the segment is that its plant started production back up in July, so results should recover.
Abbott's tremendous sales growth in the second quarter was again driven by strong demand for its COVID-19 rapid tests in the diagnostics segment. This powered the segment's revenue 33.1% higher over the year-ago period to $4.3 billion for the quarter. Despite COVID-19 surges in markets around the world and lockdowns in China, the company's medical devices segment sales edged 2.5% higher to $3.8 billion during the second quarter. And the established pharmaceuticals segment was able to increase its sales by 3.7% year over year to $1.2 billion in the quarter.
Meanwhile, non-GAAP (adjusted) diluted earnings per share (EPS) soared 22.2% higher over the year-ago period to $1.43 during the second quarter. This was significantly more than the $1.09 that analysts were expecting for the quarter. How did the company manage to beat expectations for 10 quarters in a row?
Aside from Abbott's higher sales base, the company's non-GAAP net margin increased by 190 basis points year over year in the second quarter. Along with a 1.6% decline in its diluted outstanding share count to 1.8 billion, this explains how earnings growth far outpaced sales growth for the quarter.
As COVID gradually wanes over time, this will likely be a headwind to Abbott's sales and profits. But analysts expect that the company's innovation will lead to 11% annual earnings growth over the next five years.
Image source: Getty Images.
The dividend should keep chugging along
Abbott boasts a 1.7% dividend yield, which is slightly above the S&P 500 index's 1.5% yield. And robust dividend growth should persist in the years ahead for the Dividend King.
This is because the company's dividend payout ratio will be around 37% in 2022, which allows it to retain the capital necessary for share repurchases, debt reduction, and acquisitions. As a result, I believe high-single-digit annual dividend growth will occur over the medium term.
A world-class company at a sensible valuation
Abbott Laboratories is arguably among the best businesses on the planet. And the stock's valuation doesn't fully reflect this reality.
This is evidenced by Abbott's forward price-to-earnings (P/E) ratio of 23.6. For context, this is just below the medical devices industry average forward P/E ratio of 24.8. That's why I'm convinced that income and value investors should buy this dividend growth stock for their portfolios.
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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. | With 50 consecutive years of dividend growth, healthcare giant Abbott Laboratories (NYSE: ABT) is a Dividend King. A proven track record of defying analysts' expectations In late July, Abbott Laboratories shared its financial results for the second quarter ended June 30. That's because the company issued a voluntary recall and manufacturing shutdown on some of its baby formula products at a U.S. plant back in February. | With 50 consecutive years of dividend growth, healthcare giant Abbott Laboratories (NYSE: ABT) is a Dividend King. A proven track record of defying analysts' expectations In late July, Abbott Laboratories shared its financial results for the second quarter ended June 30. Despite COVID-19 surges in markets around the world and lockdowns in China, the company's medical devices segment sales edged 2.5% higher to $3.8 billion during the second quarter. | With 50 consecutive years of dividend growth, healthcare giant Abbott Laboratories (NYSE: ABT) is a Dividend King. As was also the case in the previous quarter, Abbott's nutrition segment was the only segment to not log year-over-year sales growth. Aside from Abbott's higher sales base, the company's non-GAAP net margin increased by 190 basis points year over year in the second quarter. | With 50 consecutive years of dividend growth, healthcare giant Abbott Laboratories (NYSE: ABT) is a Dividend King. Sales for the segment declined 7.4% year over year to $2 billion in the second quarter. But analysts expect that the company's innovation will lead to 11% annual earnings growth over the next five years. |
31480.0 | 2022-08-12 00:00:00 UTC | October 21st Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/october-21st-options-now-available-for-abbott-laboratories-abt | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the October 21st expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 70 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new October 21st contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $3.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $106.05 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $110.91/share today.
Because the $110.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.59% return on the cash commitment, or 18.72% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Abbott Laboratories, and highlighting in green where the $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of $2.82. If an investor was to purchase shares of ABT stock at the current price level of $110.91/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $115.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.23% if the stock gets called away at the October 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red:
Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.54% boost of extra return to the investor, or 13.26% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $110.91) to be 24%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the October 21st expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the October 21st expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the October 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new October 21st contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new October 21st contracts and identified one put and one call contract of particular interest. Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the October 21st expiration. |
31481.0 | 2022-08-12 00:00:00 UTC | Abbott to add 1,000 jobs in $450 million Irish investment | ABT | https://www.nasdaq.com/articles/abbott-to-add-1000-jobs-in-%24450-million-irish-investment | nan | nan | DUBLIN, Aug 12 (Reuters) - U.S. healthcare company Abbott Laboratories ABT.N plans to hire 1,000 more people in Ireland in one of the biggest job announcements this year in the country's booming multinational sector, state investment agency IDA Ireland said on Friday.
Abbott, which is one of the largest multinational employers in Ireland with 5,000 staff, will expand its manufacturing facilities in the north west county of Donegal and build a new plant at the other end of the country in Kilkenny.
Confirming the $450 million investment, Abbott's senior vice-president for diabetes care, Jared Watkin, told the Irish Times that choosing Ireland for its increased production of devices that monitor glucose levels made strategic sense.
Jobs growth among multinationals in Ireland soared to record levels in the first half of 2022, helping push the country's unemployment rate to a 21-year low of 4.2%.
($1 = 0.9728 euros)
(Reporting by Padraic Halpin; editing by Jason Neely)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DUBLIN, Aug 12 (Reuters) - U.S. healthcare company Abbott Laboratories ABT.N plans to hire 1,000 more people in Ireland in one of the biggest job announcements this year in the country's booming multinational sector, state investment agency IDA Ireland said on Friday. Abbott, which is one of the largest multinational employers in Ireland with 5,000 staff, will expand its manufacturing facilities in the north west county of Donegal and build a new plant at the other end of the country in Kilkenny. Confirming the $450 million investment, Abbott's senior vice-president for diabetes care, Jared Watkin, told the Irish Times that choosing Ireland for its increased production of devices that monitor glucose levels made strategic sense. | DUBLIN, Aug 12 (Reuters) - U.S. healthcare company Abbott Laboratories ABT.N plans to hire 1,000 more people in Ireland in one of the biggest job announcements this year in the country's booming multinational sector, state investment agency IDA Ireland said on Friday. Confirming the $450 million investment, Abbott's senior vice-president for diabetes care, Jared Watkin, told the Irish Times that choosing Ireland for its increased production of devices that monitor glucose levels made strategic sense. Jobs growth among multinationals in Ireland soared to record levels in the first half of 2022, helping push the country's unemployment rate to a 21-year low of 4.2%. | DUBLIN, Aug 12 (Reuters) - U.S. healthcare company Abbott Laboratories ABT.N plans to hire 1,000 more people in Ireland in one of the biggest job announcements this year in the country's booming multinational sector, state investment agency IDA Ireland said on Friday. Confirming the $450 million investment, Abbott's senior vice-president for diabetes care, Jared Watkin, told the Irish Times that choosing Ireland for its increased production of devices that monitor glucose levels made strategic sense. ($1 = 0.9728 euros) (Reporting by Padraic Halpin; editing by Jason Neely) ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters Messaging: padraic.halpin.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DUBLIN, Aug 12 (Reuters) - U.S. healthcare company Abbott Laboratories ABT.N plans to hire 1,000 more people in Ireland in one of the biggest job announcements this year in the country's booming multinational sector, state investment agency IDA Ireland said on Friday. Abbott, which is one of the largest multinational employers in Ireland with 5,000 staff, will expand its manufacturing facilities in the north west county of Donegal and build a new plant at the other end of the country in Kilkenny. Confirming the $450 million investment, Abbott's senior vice-president for diabetes care, Jared Watkin, told the Irish Times that choosing Ireland for its increased production of devices that monitor glucose levels made strategic sense. |
31482.0 | 2022-08-11 00:00:00 UTC | Abbott: Research Shows TBI Blood Test Helpful In Predicting Recovery From Traumatic Brain Injury | ABT | https://www.nasdaq.com/articles/abbott%3A-research-shows-tbi-blood-test-helpful-in-predicting-recovery-from-traumatic-brain | nan | nan | (RTTNews) - Abbott (ABT) said a new study concluded that elevated levels of two proteins help predict how a person will recover from a traumatic brain injury. The research showed that when a clinician conducts a blood test for these brain proteins soon after a possible injury, they quickly get a more accurate picture of how severe the injury is, the expected course of recovery and the longer-term implications. The researchers used Abbott's i-STAT TBI Plasma test and core laboratory ARCHITECT instrument to measure two biomarkers in blood plasma associated with brain injury.
Abbott is pursuing FDA clearance under Breakthrough Designation for the TBI test on its Alinity i and ARCHITECT core laboratory instruments. Abbott's TBI test on Alinity i is CE Marked and available outside the U.S.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said a new study concluded that elevated levels of two proteins help predict how a person will recover from a traumatic brain injury. Abbott is pursuing FDA clearance under Breakthrough Designation for the TBI test on its Alinity i and ARCHITECT core laboratory instruments. Abbott's TBI test on Alinity i is CE Marked and available outside the U.S. For More Such Health News, visit rttnews.com. | (RTTNews) - Abbott (ABT) said a new study concluded that elevated levels of two proteins help predict how a person will recover from a traumatic brain injury. The researchers used Abbott's i-STAT TBI Plasma test and core laboratory ARCHITECT instrument to measure two biomarkers in blood plasma associated with brain injury. Abbott is pursuing FDA clearance under Breakthrough Designation for the TBI test on its Alinity i and ARCHITECT core laboratory instruments. | (RTTNews) - Abbott (ABT) said a new study concluded that elevated levels of two proteins help predict how a person will recover from a traumatic brain injury. The research showed that when a clinician conducts a blood test for these brain proteins soon after a possible injury, they quickly get a more accurate picture of how severe the injury is, the expected course of recovery and the longer-term implications. The researchers used Abbott's i-STAT TBI Plasma test and core laboratory ARCHITECT instrument to measure two biomarkers in blood plasma associated with brain injury. | (RTTNews) - Abbott (ABT) said a new study concluded that elevated levels of two proteins help predict how a person will recover from a traumatic brain injury. The researchers used Abbott's i-STAT TBI Plasma test and core laboratory ARCHITECT instrument to measure two biomarkers in blood plasma associated with brain injury. Abbott's TBI test on Alinity i is CE Marked and available outside the U.S. For More Such Health News, visit rttnews.com. |
31483.0 | 2022-08-11 00:00:00 UTC | Down 15% In A Month, Will QuidelOrtho Stock Rebound? | ABT | https://www.nasdaq.com/articles/down-15-in-a-month-will-quidelortho-stock-rebound | nan | nan | QuidelOrtho stock (NASDAQ: QDEL), a manufacturer of diagnostic healthcare products, including the Covid-19 test, reported its Q2 results last week, with revenue and earnings falling below the street estimates. QDEL stock fell around 11% in a week, while it’s down 15% in a month. The company reported revenue of $613 million (up 246% y-o-y) and EPS of $2.34 (up 284% y-o-y) in Q2, compared to the consensus estimates of $768 million and $2.68, respectively. The significant y-o-y top and bottom line growth can be attributed to its merger with Ortho Clinical Diagnostics in May 2022. QuidelOrtho’s management has guided for the full year 2022 revenue (constant currency) to be between $3.8 and $3.9 billion and earnings to be between $11.80 and $12.75 on a per share and adjusted basis.
Now that QDEL stock has seen a fall of 15% 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 for QDEL stock over the next month. QDEL stock has seen a fall of 15% or more in a month 190 times in the last ten years. Of those, 118 resulted in QDEL stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 118 out of 190, or about a 62% chance of a rise in QDEL stock over the next month. See our analysis of QuidelOrtho’s Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -11% or more over five days, the stock rose on 45% of the occasions in the next five days.
After moving -12% or more over ten days, the stock rose on 45% of the occasions in the next ten days.
After moving -15% or more over a twenty-one-day period, the stock rose on 62% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a decline in QDEL stock over the next five and ten days but a higher chance of a rise over the next twenty-one days.
QuidelOrtho (QDEL) Return (Recent) Comparison With Peers
Five-Day Return: OPGN highest at 10.8%; QDEL lowest at -11.4%
Ten-Day Return: OPGN highest at 6.2%; QDEL lowest at -11.8%
Twenty-One Day Return: TRIB highest at 3.7%; QDEL lowest at -15.2%
While QDEL stock looks like it can gain over the next month, it is helpful to see how QuidelOrtho’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 how counter-intuitive the stock valuation is for Xylem vs. Merck.
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 Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
QDEL Return -12% -33% 322%
S&P 500 Return 0% -13% 85%
Trefis Multi-Strategy Portfolio 5% -9% 259%
[1] Month-to-date and year-to-date as of 8/9/2022
[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. | QuidelOrtho stock (NASDAQ: QDEL), a manufacturer of diagnostic healthcare products, including the Covid-19 test, reported its Q2 results last week, with revenue and earnings falling below the street estimates. The significant y-o-y top and bottom line growth can be attributed to its merger with Ortho Clinical Diagnostics in May 2022. QuidelOrtho’s management has guided for the full year 2022 revenue (constant currency) to be between $3.8 and $3.9 billion and earnings to be between $11.80 and $12.75 on a per share and adjusted basis. | Of those, 118 resulted in QDEL stock rising over the subsequent one-month period (twenty-one trading days). QuidelOrtho (QDEL) Return (Recent) Comparison With Peers Five-Day Return: OPGN highest at 10.8%; QDEL lowest at -11.4% Ten-Day Return: OPGN highest at 6.2%; QDEL lowest at -11.8% Twenty-One Day Return: TRIB highest at 3.7%; QDEL lowest at -15.2% While QDEL stock looks like it can gain over the next month, it is helpful to see how QuidelOrtho’s Peers fare on metrics that matter. Total [2] QDEL Return -12% -33% 322% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio 5% -9% 259% [1] Month-to-date and year-to-date as of 8/9/2022 [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 a higher chance of a decline in QDEL stock over the next five and ten days but a higher chance of a rise over the next twenty-one days. QuidelOrtho (QDEL) Return (Recent) Comparison With Peers Five-Day Return: OPGN highest at 10.8%; QDEL lowest at -11.4% Ten-Day Return: OPGN highest at 6.2%; QDEL lowest at -11.8% Twenty-One Day Return: TRIB highest at 3.7%; QDEL lowest at -15.2% While QDEL stock looks like it can gain over the next month, it is helpful to see how QuidelOrtho’s Peers fare on metrics that matter. Total [2] QDEL Return -12% -33% 322% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio 5% -9% 259% [1] Month-to-date and year-to-date as of 8/9/2022 [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. | QDEL stock has seen a fall of 15% or more in a month 190 times in the last ten years. This pattern suggests a higher chance of a decline in QDEL stock over the next five and ten days but a higher chance of a rise over the next twenty-one days. Total [2] QDEL Return -12% -33% 322% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio 5% -9% 259% [1] Month-to-date and year-to-date as of 8/9/2022 [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. |
31484.0 | 2022-08-11 00:00:00 UTC | 2 Healthcare Stocks That Could Help Set You Up for Life | ABT | https://www.nasdaq.com/articles/2-healthcare-stocks-that-could-help-set-you-up-for-life-1 | nan | nan | Being a successful investor starts with figuring out why you are investing. Is it to gain financial independence for yourself? Is it more for the benefit of future generations? Answering these questions can help set you on the path toward achieving your financial goals and shape your investment philosophy.
Regardless of your financial goals, these two quality healthcare stocks could be smart buys to compound wealth over the long run. Let's take a look at why.
Image source: Getty Images.
1. Humana
Humana's (NYSE: HUM) $61 billion market capitalization positions it as the fifth-largest health insurer in the world.
As of the second quarter, the company had nearly 27 million customers for medical, dental, vision, and other insurance. This allowed Humana to generate $47.6 billion in total revenue through the first half of 2022, which was a whopping 15.3% growth rate over the year-ago period.
And this tremendous revenue growth rate looks set to continue for Humana. That's thanks to rising medical care costs and an increasing prevalence of chronic medical conditions, which is boosting demand for health insurance over time. This is why Allied Market Research anticipates the global health insurance market will grow at a 9.7% annual rate, from $2 trillion in 2020 to $4.2 trillion in 2028.
Investors can also be confident that Humana's future revenue growth will push the company's profits upward as well. That's because it is a profitable business, posting a 5.8% non-GAAP (adjusted) net margin in the first half of 2022. This led the insurer's adjusted diluted earnings per share (EPS) to surge 14.7% higher year over year to $16.70 for the first half of the year.
These factors explain why analysts believe Humana's adjusted diluted EPS will compound at a 14.2% annual rate each over the next five years. Since the company's dividend payout ratio is poised to be just above 12% in 2022, Humana's dividend should grow at a low-double-digit annual clip for the foreseeable future. This arguably compensates for the dividend yield of 0.7%, which is less than half of the S&P 500 index's 1.6%.
And Humana's forward price-to-earnings (P/E) ratio of 17.4 is barely above the healthcare plan industry's average forward P/E ratio of 16.6. This is a sensible valuation for the stock, which is why it appears to be a buy and hold for long-term investors.
2. Abbott Laboratories
Few healthcare companies are as diversified as Abbott Laboratories (NYSE: ABT) in terms of industries and geography. Selling medical devices, diagnostic tests (e.g., COVID-19 rapid test kits), consumer-facing products (e.g., baby formula), and generic pharmaceuticals, the company has operations in more than 160 countries around the world. This is how Abbott recorded $23.2 billion in total revenue for the first half of this year, which was up 12% year over year.
The necessity of these products to patients and consumers the world over builds in pricing power for the company. Along with increasing product demand via an aging, growing global population, that's why analysts are expecting 11% annual adjusted diluted EPS growth over the next five years.
Aside from the company's strong earnings growth prospects, Abbott can provide income investors with a 1.7% dividend yield. And with the Dividend King's payout ratio set to be 37.3% in 2022, there should be plenty of room for future payout hikes.
Abbott Laboratories is a world-class business, yet its forward P/E ratio of 23.3 is slightly below the medical device industry average of 24.3. This makes the stock a buy for dividend growth investors.
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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. | Abbott Laboratories Few healthcare companies are as diversified as Abbott Laboratories (NYSE: ABT) in terms of industries and geography. Regardless of your financial goals, these two quality healthcare stocks could be smart buys to compound wealth over the long run. This allowed Humana to generate $47.6 billion in total revenue through the first half of 2022, which was a whopping 15.3% growth rate over the year-ago period. | Abbott Laboratories Few healthcare companies are as diversified as Abbott Laboratories (NYSE: ABT) in terms of industries and geography. This is why Allied Market Research anticipates the global health insurance market will grow at a 9.7% annual rate, from $2 trillion in 2020 to $4.2 trillion in 2028. These factors explain why analysts believe Humana's adjusted diluted EPS will compound at a 14.2% annual rate each over the next five years. | Abbott Laboratories Few healthcare companies are as diversified as Abbott Laboratories (NYSE: ABT) in terms of industries and geography. Investors can also be confident that Humana's future revenue growth will push the company's profits upward as well. This led the insurer's adjusted diluted earnings per share (EPS) to surge 14.7% higher year over year to $16.70 for the first half of the year. | Abbott Laboratories Few healthcare companies are as diversified as Abbott Laboratories (NYSE: ABT) in terms of industries and geography. Investors can also be confident that Humana's future revenue growth will push the company's profits upward as well. Since the company's dividend payout ratio is poised to be just above 12% in 2022, Humana's dividend should grow at a low-double-digit annual clip for the foreseeable future. |
31485.0 | 2022-08-11 00:00:00 UTC | 2 Dividend Kings That Have Hiked Their Payouts by More Than 50% in 5 Years | ABT | https://www.nasdaq.com/articles/2-dividend-kings-that-have-hiked-their-payouts-by-more-than-50-in-5-years | nan | nan | Dividend Kings aren't normally the most generous when it comes to dividend growth. After all, to keep a dividend streak going, a company can just raise its dividend by a penny each year. Although these can be reliable dividend stocks to own for the long term, they aren't usually good dividend growth stocks to own.
However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. These businesses have done more than just the minimum to keep their streaks going. They both yield around 1.7%, which is in line with the S&P 500 average, but that is misleading as their dividend payments today are much greater than they were just five years ago.
1. Abbott Laboratories
Abbott Laboratories is a diversified healthcare company; it generates revenue through its nutrition, diagnostics, pharmaceuticals, and medical devices segments. It has made for a solid investment over the past several years. Its shares are up over 120% (not including dividends) in five years which is far better than the S&P 500, which has climbed a more modest 67% over that period. That impressive increase in value is a key reason that Abbott's dividend yield isn't as high -- the higher the share price, the lower the yield becomes since it costs more money to collect the same dividend.
Investors, however, are likely more than happy with that trade-off as it allows them both to bank some attractive gains along with a decent dividend. Today, Abbott pays its shareholders a quarterly dividend of $0.47 per share. Five years ago, it was only $0.265, which means it has risen by 77% during that stretch, averaging a compound annual growth rate (CAGR) of 12.1%.
Abbott made a particularly generous 25% increase to its dividend in 2021 when it raised its quarterly payment from $0.36 to $0.45. Those types of rate hikes aren't typical for the company, but they are positive signs that the business is committed to creating value for its shareholders. With 50 years of consecutive rate hikes, Abbott is a Dividend King and one of the better dividend growth stocks you'll find out in the markets today.
If you're looking for an income investment you can buy and hold, Abbott should be near the top of that list for its diversification and strong dividend.
2. American States Water Company
Utility companies generally make for good income investments because they have a steady stream of recurring income. That can help investors predict how the business will perform over the long term. And American States Water is no exception. The company serves over a million people in nine states. It provides multiple segments: water, electric, and contracted services.
American States Water also has an impressive track record of paying dividends going back to 1931. Last month, it announced an 8.9% increase in its quarterly dividend. On an annual basis, it will be paying its shareholders $1.59 per share, up from $1.46 previously. That marks the 68th consecutive year that the company has raised its payouts. Even among Dividend Kings, that's an incredible accomplishment as no other company in the S&P 500 has such an impressive streak going.
Five years ago, the company was paying $0.255 per share, and the dividend has climbed 56% during that time. That averages out to a CAGR of 9.3%.
American States Water has generated some good, steady growth over the years with revenue of $436.8 million in 2018 rising to just under $499 million this past year, representing an increase of 14% during that time. Over five years, its gains of 73% are slightly better than the S&P's gains.
American Water and Abbott Laboratories both make for safe, long-term dividend stocks you can comfortably buy and forget.
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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. | However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. Five years ago, it was only $0.265, which means it has risen by 77% during that stretch, averaging a compound annual growth rate (CAGR) of 12.1%. Those types of rate hikes aren't typical for the company, but they are positive signs that the business is committed to creating value for its shareholders. | However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. American States Water Company Utility companies generally make for good income investments because they have a steady stream of recurring income. American States Water has generated some good, steady growth over the years with revenue of $436.8 million in 2018 rising to just under $499 million this past year, representing an increase of 14% during that time. | However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. After all, to keep a dividend streak going, a company can just raise its dividend by a penny each year. Although these can be reliable dividend stocks to own for the long term, they aren't usually good dividend growth stocks to own. | However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. Today, Abbott pays its shareholders a quarterly dividend of $0.47 per share. With 50 years of consecutive rate hikes, Abbott is a Dividend King and one of the better dividend growth stocks you'll find out in the markets today. |
31486.0 | 2022-08-05 00:00:00 UTC | Should You Really Care About This Company's Short-Term Success? | ABT | https://www.nasdaq.com/articles/should-you-really-care-about-this-companys-short-term-success | nan | nan | Medical-device company Abbott Laboratories (NYSE: ABT) reported impressive second-quarter earnings and raised guidance for the full year. COVID-19 diagnostic tests have given the company several quarters of strong earnings growth, but the performance of the underlying core business may give a better idea of future revenue prospects.
Strong COVID-19 and medical device sales
Abbott is one of the largest manufacturers of rapid COVID-19 antigen tests, offering personal and point-of-care testing to provide a real-time diagnosis of infection in less than 15 minutes. The sensitivity of its rapid antigen test compares favorably to the gold standard polymerase chain reaction (PCR) tests, identifying 14 of 15 individuals who are likely to be infectious. Overall, the company has sold more than 200 million rapid tests since April 2020.
Despite Abbott's expectation that COVID-19 sales would sharply dwindle as the year progressed second-quarter sales remained robust. Global COVID-19 diagnostic revenue fell from $3.3 billion in the first quarter to $2.3 billion in the second quarter. This was well above expectations, causing the company to upgrade its full-year guidance for COVID diagnostic sales from $4.5 billion to $6.1 billion.
Abbott has taken a conservative approach, estimating almost no revenue from this source in the upcoming months. This may set the company up for a nice upside if demand holds as new coronavirus strains emerge.
Some analysts anticipate that the global antigen test market will continue to expand, growing just under 7% annually to reach $8.3 billion by 2027. However, COVID-19 diagnostics sales are highly unpredictable, so there's no guarantee that this revenue stream will remain strong in the future.
The company's large medical-device segment showed moderate 3% growth, driven particularly by the company's FreeStyle Libre continuous glucose monitor. The company claims that the most recent version, which was cleared for use in May, is the world's smallest and most accurate wearable glucose sensor, and the market seems to have responded. Sales expanded more than 25% in the second quarter.
On the pipeline front, Abbott received Food & Drug Administration (FDA) Breakthrough Device Designation to explore deep brain stimulation as a tool to manage severe depression. This pacemaker-like device regulates electrical impulses using electrodes implanted in the brain, which is an established technique for treating movement disorders.
Abbott's device has already been approved for Parkinson's. The company hopes that the technique might also prove invaluable for treating clinical depression in patients who have not responded to medication.
Don't forget these headwinds
Abbott looks like it's on the verge of finally putting its struggles with baby formula behind it. The FDA wrapped up its investigation without uncovering a clear link between Abbott's facility and the contaminated infant formula that caused the illnesses. The site has now reopened after several weeks of downtime caused by severe flooding in the area, so production should resume in several weeks.
But Abbott may find a more competitive market going forward. Manufacturers have expanded capacity, even as the FDA has cut red tape to increase imports from competitors to the tune of 720 million bottles of formula. This could increase the domestic supply of infant formula powder by about 30%, compared to 2021.
The company may also be impacted by the strengthening U.S. dollar, which has reversed from last year's lows to near its highest level in two decades. A strong dollar has the potential to dampen the value of international sales and is likely to impact Abbott since at least 60% of the company's full-year sales in 2021 came from overseas. Management expects this to come into full effect in the second half of the year.
Reasonable valuation
COVID-19 diagnostics, established pharmaceuticals, and medical-device sales were more than enough to offset the struggling nutrition segment. Overall, the company generated $11.3 billion in second-quarter sales, a 10.1% increase from the previous year. It also raised its full-year guidance for earnings per share from $4.70 to $4.90, based largely on the strength of second-quarter COVID-19-related sales.
Abbott's stock has declined about 20% this year, bringing it down from last year's high valuation to a much more reasonable forward price-to-earnings ratio of 23. Excluding COVID-19, management is guiding for near-term sales growth in the high single digits.
These numbers are in line with major medical-device competitors such as Stryker and Becton Dickinson. Right now, Abbott appears to be a reasonable investment option but not a bargain.
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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. | Medical-device company Abbott Laboratories (NYSE: ABT) reported impressive second-quarter earnings and raised guidance for the full year. COVID-19 diagnostic tests have given the company several quarters of strong earnings growth, but the performance of the underlying core business may give a better idea of future revenue prospects. On the pipeline front, Abbott received Food & Drug Administration (FDA) Breakthrough Device Designation to explore deep brain stimulation as a tool to manage severe depression. | Medical-device company Abbott Laboratories (NYSE: ABT) reported impressive second-quarter earnings and raised guidance for the full year. COVID-19 diagnostic tests have given the company several quarters of strong earnings growth, but the performance of the underlying core business may give a better idea of future revenue prospects. This was well above expectations, causing the company to upgrade its full-year guidance for COVID diagnostic sales from $4.5 billion to $6.1 billion. | Medical-device company Abbott Laboratories (NYSE: ABT) reported impressive second-quarter earnings and raised guidance for the full year. Strong COVID-19 and medical device sales Abbott is one of the largest manufacturers of rapid COVID-19 antigen tests, offering personal and point-of-care testing to provide a real-time diagnosis of infection in less than 15 minutes. Despite Abbott's expectation that COVID-19 sales would sharply dwindle as the year progressed second-quarter sales remained robust. | Medical-device company Abbott Laboratories (NYSE: ABT) reported impressive second-quarter earnings and raised guidance for the full year. Despite Abbott's expectation that COVID-19 sales would sharply dwindle as the year progressed second-quarter sales remained robust. Abbott's stock has declined about 20% this year, bringing it down from last year's high valuation to a much more reasonable forward price-to-earnings ratio of 23. |
31487.0 | 2022-08-03 00:00:00 UTC | Famed "Big Short" Investor Loves This Multibillion-Dollar Company -- Should You? | ABT | https://www.nasdaq.com/articles/famed-big-short-investor-loves-this-multibillion-dollar-company-should-you | nan | nan | Michael Burry rose to fame by calling the 2008 housing bubble, as documented in the hit movie The Big Short. More recently, he reentered the spotlight by buying into Gamestop before it became a meme stock. Taking a hard turn from such dramatic holdings, pharmaceutical stalwart Bristol Myers Squibb (NYSE: BMY) is now one of Burry's Scion Asset Management's top holdings. Let's look into a few reasons why the famed investor might be holding and one big reason why it might not be for you.
Two future blockbusters already approved
While $10-billion blockbuster Eliquis will likely anchor sales for the next few years, the company has multiple drugs in which it sees multibillion-dollar potential. And this vision may be starting to come to fruition as sales of its new product category are up 38% sequentially for the quarter, to $482 million.
One of these hopeful new compounds, cancer-fighting Opdualag, is a combination of Bristol's hit drug Opdivo and another monoclonal antibody. Opdualag has come out hot, generating $58 million in its first full quarter on the market. With the initiation of several late-stage trials for Opdualag in large markets such as colorectal and lung cancer, it is clear that the pharma giant is hoping the combination therapy picks up where blockbuster Opdivo will leave off in 2028 when its patent is set to expire.
The other approved therapy that has the company excited is Camzyos. The drug was cleared by the FDA in April for a condition called hypertrophic cardiomyopathy, where portions of the heart become abnormally enlarged, making it difficult for blood to flow out of the heart. Studies have shown meaningful improvements in symptoms, functional status, and quality of life by reducing the obstruction of blood flow from the heart when taking Camzyos.
Obtained through the MyoKardia buyout in October 2020, its initial market is a small one. With only an estimated 35,000 patients across the European Union, U.S., and Japan, the real prize is the heart failure market. A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. If those results are positive, the addressable market for Camzyos will skyrocket overnight.
More billion-dollar dreams
Burry's healthcare company of choice also has high hopes for its drug, deucravacitinib, targeting auto-immune diseases such as psoriasis and lupus. The company believes it has superior efficacy to current oral standards of care in moderate to severe psoriasis. With strong data in hand for its first potential indication, Bristol is aiming for FDA approval in September 2022. Investors can expect a steady stream of data for the investigational compound in other auto-immune diseases such as lupus, psoriatic arthritis, and Crohn's disease in the next three years. If results are positive, management could easily be sitting on yet another multibillion-dollar drug.
With Eliquis being wildly successful, it would make sense that Bristol would go to the anti-coagulant market again. The phase 2 investigational drug milvexian is being evaluated to take over both the anti-platelet market -- think Plavix and its $7 billion in revenue for 2011 -- as well as the oral anti-coagulant market dominated by Eliquis, namely atrial fibrillation, and blood clots. Management believes this to be at least a $5 billion opportunity -- not a bad encore.
Why investors should reconsider
Unfortunately for shareholders, Bristol has struggled to track the market over any meaningful amount of time. Even after accounting for dividend reinvesting, the pharma giant has returned only 178% versus 262% for the S&P 500 since August 2012. That trend holds even if you go back 25 years, with Bristol trailing 368% versus 563% for the index. This amounts to just over a paltry 6%, including reinvested dividends for the pharmaceutical giant. Even over the last five years, Bristol still lags the market by 53% versus 81%.
Despite the pain of the markets recently, Bristol might be experiencing its own issues -- a patent cliff. Blockbuster Revlimid, which generated $12.8 billion in fiscal year 2021, is beginning to see sales erode, with revenue expected to contract to the $9 billion to $9.5 billion range this year. Then there is Eliquis and Opdivo. With $10.76 billion and $7.52 billion, respectively, in revenue in FY 2021, both of these cash cows are tentatively set to come off-patent in 2028.
Revlimid, Eliquis, and Opdivo combined for roughly two-thirds of the company's revenue in 2021. Losses that large put a lot of pressure on its pipeline, which likely means Bristol has its eyes open to potential acquisitions that can immediately contribute to the bottom line. And while Bristol had $13.2 billion in cash at the end of Q2, it is competing with other cash-rich heavyweights that have publicly stated their aspirations for M&A activity.
Perhaps most importantly, Bristol still looks expensive to its peers, with a 25.6 price-to-earnings (P/E) ratio. Compare this to other healthcare behemoths AbbVie, Abbott, and Amgen, all of which have lower P/E ratios and have beaten the S&P over both the last 10 and 25 years, including dividends. While Bristol has a promising pipeline, it has a history of lagging the market, not to mention its upcoming patent cliffs. Investors may want to think twice before following the legendary Burry into this historically underperforming pharmaceutical company.
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Patrick Bafuma has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends 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. | With the initiation of several late-stage trials for Opdualag in large markets such as colorectal and lung cancer, it is clear that the pharma giant is hoping the combination therapy picks up where blockbuster Opdivo will leave off in 2028 when its patent is set to expire. Studies have shown meaningful improvements in symptoms, functional status, and quality of life by reducing the obstruction of blood flow from the heart when taking Camzyos. Losses that large put a lot of pressure on its pipeline, which likely means Bristol has its eyes open to potential acquisitions that can immediately contribute to the bottom line. | One of these hopeful new compounds, cancer-fighting Opdualag, is a combination of Bristol's hit drug Opdivo and another monoclonal antibody. A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. The Motley Fool has positions in and recommends Bristol Myers Squibb. | The phase 2 investigational drug milvexian is being evaluated to take over both the anti-platelet market -- think Plavix and its $7 billion in revenue for 2011 -- as well as the oral anti-coagulant market dominated by Eliquis, namely atrial fibrillation, and blood clots. Even over the last five years, Bristol still lags the market by 53% versus 81%. Blockbuster Revlimid, which generated $12.8 billion in fiscal year 2021, is beginning to see sales erode, with revenue expected to contract to the $9 billion to $9.5 billion range this year. | A phase 2 study on a subset of heart failure patients is set to report results in April 2023, a market of just over 2 million patients in the U.S. alone. Blockbuster Revlimid, which generated $12.8 billion in fiscal year 2021, is beginning to see sales erode, with revenue expected to contract to the $9 billion to $9.5 billion range this year. The Motley Fool has positions in and recommends Bristol Myers Squibb. |
31488.0 | 2022-08-02 00:00:00 UTC | MonkeyPox Stocks To Buy Right Now? 3 To Know | ABT | https://www.nasdaq.com/articles/monkeypox-stocks-to-buy-right-now-3-to-know | nan | nan | Check Out These Three MonkeyPox Stocks Making Headlines In The Stock Market Today
Unless you’ve been living under a rock, it’s likely you’ve seen all the monkeypox headlines in the stock market today. Health authorities worldwide are actively looking for a way effective ways to stop the monkeypox outbreak. With that, investors have turned their attention to monkeypox stocks. The World Health Organization (WHO) reported that Monkeypox is a rare viral disease comparable to smallpox but considered clinically less severe. It has caused an endemic in West Africa and Central Africa. Also, because it’s a viral disease, vaccination may be the best option to defend against it.
In detail, the resurgence of the disease could enable routine vaccinations for people globally. As well as Monkeypox vaccine manufacturers, antiviral drugmakers, and protective equipment manufacturers could be poised to significantly benefit. Investors may look to deploy a similar strategy as they did for COVID-19 stocks. With that, if you’re keen on investing in the monkeypox sector, here are three monkeypox stocks to keep an eye on in the stock market today.
Monkeypox Stocks To Watch Right Now
Bavarian Nordic A/S (OTCMKTS: BVNRY)
SIGA Technologies (NASDAQ: SIGA)
Emergent BioSolutions Inc. (NYSE: EBS)
Bavarian Nordic A/S
First, on the list, we have Bavarian Nordic A/S (BVNRY). The biotechnology company focuses on the development, manufacturing, and commercialization of cancer immunotherapies and vaccines for infectious diseases. Bavarian Nordic specializes in diseases for which the unmet medical need is high. In detail, the company generates most of its revenue through government research and development and supply contracts, and from its commercial partnerships. The company has been in the headlines lately amid the monkeypox outbreak.
Specifically, in July Bavarian Nordic announced it received the green light from the United States & EU regulatory authorities to manufacture JYNNEOS®/IMVANEX® smallpox and monkeypox vaccine at the company’s Denmark fill and finish facility. This approval permits Bavarian Nordic to deliver drug products manufactured at its facility to the U.S. and E.U markets.
Paul Chaplin, President and CEO of Bavarian Nordic stated: “We are proud to announce the successful completion of the FDA’s inspection and subsequent approval of our state-of-the-art fill and finish facility along with EMA’s approval. This achievement, which underscores the excellence of our manufacturing site and our ability to deliver high quality vaccines for improving and saving lives, was made possible through the dedication and commitment of our talented employees.” Furthermore, shares of BVNRY stock are up over 63% in the past month. They are currently trading at $18.26 a share prior to Tuesday’s opening bell.
Source: TD Ameritrade TOS
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SIGA Technologies
Next, we have SIGA Technologies (SIGA). SIGA Technologies Inc is a commercial-stage pharmaceutical company focused on the health security market. The company’s flagship product is TPOXX. In detail, its an orally administered antiviral drug for the treatment of human smallpox disease caused by the variola virus. Coincidentally, TPOXX is the only available treatment for Monkeybpox. This has caused a 35% rally in SIGA stock over the last month of trading. Prior to Tuesday’s opening bell SIGA stock is trading at $17.26 per share.
This rally comes off a series of news headlines from the company. For example, in July, the company announced it had received nearly $28 million of procurement orders for its TPOXX treatment. Year-to-date, SIGA has received an estimated $56 million of international orders for oral TPOXX (tecovirimat) from six jurisdictions.
“The increase over the last two months in international orders of oral TPOXX (tecovirimat) reflects an initial public health reaction to the evolving monkeypox outbreak,” commented Phil Gomez, CEO of SIGA. “SIGA continues to receive a large number of ongoing inquiries about accessing oral TPOXX. We believe these new orders and the ongoing inquiries highlight the overall importance of health security preparedness, and that by increasing both the scale and scope of TPOXX stockpiling, countries can be better prepared for the outbreak risks of smallpox, monkeypox, and other viruses in the orthopoxvirus family of viruses and make sure that patients are able to access treatment.” Considering all of this, are you keeping SIGA stock on watch right now?
Source: TD Ameritrade TOS
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Emergent BioSolutions Inc.
Following that, let’s look at Emergent BioSolutions, Inc. (EBS). In brief, the company offers public health products to government and healthcare providers. Emergent Biosolutions has four main business segments. They are; vaccines, which produce specialty vaccines for public health threats; devices, like nasal sprays, skin lotions, and injections; therapeutics, which entails antibody-based treatments; and contract development and manufacturing, which delivers treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government.
Additionally, the majority of the company’s revenue comes from U.S. government purchases of vaccines, devices, and therapeutic products. Coincidentally, EBS is in the process of purchasing from Chimerix (NASDAQ: CMRX) its global rights to TEMBEXA(R) (brincidofovir). This is the first FDA-approved smallpox oral antiviral for all ages; continue to expect transaction closing in the third quarter of this year. As a result, the company will now have two of three approved Monkeypox vaccines in the U.S.
“Central to Emergent’s mission – to protect and enhance life – is our ability to provide quality products and services for the benefit of our patients and customers,” stated Robert G. Kramer, president, and CEO of Emergent BioSolutions. “We continue to focus on combating critical public health threats with our core medical countermeasure and commercial businesses, executing on our growth strategy with M&A opportunities, and further strengthening our public-private partnerships, development pipeline, and manufacturing network to reinforce the durability of our diversified business.” Tuesday morning, shares of EBS are trading at $34.23 a share.
Sources: 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. | Specifically, in July Bavarian Nordic announced it received the green light from the United States & EU regulatory authorities to manufacture JYNNEOS®/IMVANEX® smallpox and monkeypox vaccine at the company’s Denmark fill and finish facility. This achievement, which underscores the excellence of our manufacturing site and our ability to deliver high quality vaccines for improving and saving lives, was made possible through the dedication and commitment of our talented employees.” Furthermore, shares of BVNRY stock are up over 63% in the past month. “The increase over the last two months in international orders of oral TPOXX (tecovirimat) reflects an initial public health reaction to the evolving monkeypox outbreak,” commented Phil Gomez, CEO of SIGA. | Monkeypox Stocks To Watch Right Now Bavarian Nordic A/S (OTCMKTS: BVNRY) SIGA Technologies (NASDAQ: SIGA) Emergent BioSolutions Inc. (NYSE: EBS) Bavarian Nordic A/S First, on the list, we have Bavarian Nordic A/S (BVNRY). Specifically, in July Bavarian Nordic announced it received the green light from the United States & EU regulatory authorities to manufacture JYNNEOS®/IMVANEX® smallpox and monkeypox vaccine at the company’s Denmark fill and finish facility. “The increase over the last two months in international orders of oral TPOXX (tecovirimat) reflects an initial public health reaction to the evolving monkeypox outbreak,” commented Phil Gomez, CEO of SIGA. | Check Out These Three MonkeyPox Stocks Making Headlines In The Stock Market Today Unless you’ve been living under a rock, it’s likely you’ve seen all the monkeypox headlines in the stock market today. Monkeypox Stocks To Watch Right Now Bavarian Nordic A/S (OTCMKTS: BVNRY) SIGA Technologies (NASDAQ: SIGA) Emergent BioSolutions Inc. (NYSE: EBS) Bavarian Nordic A/S First, on the list, we have Bavarian Nordic A/S (BVNRY). We believe these new orders and the ongoing inquiries highlight the overall importance of health security preparedness, and that by increasing both the scale and scope of TPOXX stockpiling, countries can be better prepared for the outbreak risks of smallpox, monkeypox, and other viruses in the orthopoxvirus family of viruses and make sure that patients are able to access treatment.” Considering all of this, are you keeping SIGA stock on watch right now? | Monkeypox Stocks To Watch Right Now Bavarian Nordic A/S (OTCMKTS: BVNRY) SIGA Technologies (NASDAQ: SIGA) Emergent BioSolutions Inc. (NYSE: EBS) Bavarian Nordic A/S First, on the list, we have Bavarian Nordic A/S (BVNRY). This has caused a 35% rally in SIGA stock over the last month of trading. As a result, the company will now have two of three approved Monkeypox vaccines in the U.S. “Central to Emergent’s mission – to protect and enhance life – is our ability to provide quality products and services for the benefit of our patients and customers,” stated Robert G. Kramer, president, and CEO of Emergent BioSolutions. |
31489.0 | 2022-08-02 00:00:00 UTC | Analysts Anticipate 15% Gains Ahead For MGV | ABT | https://www.nasdaq.com/articles/analysts-anticipate-15-gains-ahead-for-mgv | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Mega Cap Value ETF (Symbol: MGV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $114.96 per unit.
With MGV trading at a recent price near $100.29 per unit, that means that analysts see 14.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Although WFC has traded at a recent price of $43.54/share, the average analyst target is 25.09% higher at $54.46/share. Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Below is a twelve month price history chart comparing the stock performance of WFC, ABBV, and ABT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63%
Wells Fargo & Co WFC $43.54 $54.46 25.09%
AbbVie Inc ABBV $140.22 $165.20 17.81%
Abbott Laboratories ABT $109.52 $127.15 16.10%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. | Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Below is a twelve month price history chart comparing the stock performance of WFC, ABBV, and ABT: Below is a summary table of the current analyst target prices discussed above: | Vanguard Mega Cap Value ETF MGV $100.29 $114.96 14.63% Wells Fargo & Co WFC $43.54 $54.46 25.09% AbbVie Inc ABBV $140.22 $165.20 17.81% Abbott Laboratories ABT $109.52 $127.15 16.10% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MGV's underlying holdings with notable upside to their analyst target prices are Wells Fargo & Co (Symbol: WFC), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT). Similarly, ABBV has 17.81% upside from the recent share price of $140.22 if the average analyst target price of $165.20/share is reached, and analysts on average are expecting ABT to reach a target price of $127.15/share, which is 16.10% above the recent price of $109.52. |
31490.0 | 2022-07-31 00:00:00 UTC | Don't Ignore The Fact That This Insider Just Sold Some Shares In Abbott Laboratories (NYSE:ABT) | ABT | https://www.nasdaq.com/articles/dont-ignore-the-fact-that-this-insider-just-sold-some-shares-in-abbott-laboratories-nyse-0 | nan | nan | Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Fernando Mateus, recently divested US$268k worth of shares in the company, at an average price of US$109 each. The eyebrow raising move amounted to a reduction of 14% in their holding.
The Last 12 Months Of Insider Transactions At Abbott Laboratories
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Daniel Starks, sold US$5.0m worth of shares at a price of US$113 per share. That means that an insider was selling shares at around the current price of US$109. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Abbott Laboratories didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:ABT Insider Trading Volume July 31st 2022
I will like Abbott Laboratories better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Abbott Laboratories insiders own 0.7% of the company, currently worth about US$1.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Abbott Laboratories Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Abbott Laboratories makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Abbott Laboratories that deserve your attention before buying any shares.
But note: Abbott Laboratories may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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. | Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Fernando Mateus, recently divested US$268k worth of shares in the company, at an average price of US$109 each. NYSE:ABT Insider Trading Volume July 31st 2022 I will like Abbott Laboratories better if I see some big insider buys. Abbott Laboratories insiders own 0.7% of the company, currently worth about US$1.4b based on the recent share price. | Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Fernando Mateus, recently divested US$268k worth of shares in the company, at an average price of US$109 each. NYSE:ABT Insider Trading Volume July 31st 2022 I will like Abbott Laboratories better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. | Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Fernando Mateus, recently divested US$268k worth of shares in the company, at an average price of US$109 each. NYSE:ABT Insider Trading Volume July 31st 2022 I will like Abbott Laboratories better if I see some big insider buys. The Last 12 Months Of Insider Transactions At Abbott Laboratories In the last twelve months, the biggest single sale by an insider was when the Independent Director, Daniel Starks, sold US$5.0m worth of shares at a price of US$113 per share. | Anyone interested in Abbott Laboratories (NYSE:ABT) should probably be aware that a company insider, Fernando Mateus, recently divested US$268k worth of shares in the company, at an average price of US$109 each. NYSE:ABT Insider Trading Volume July 31st 2022 I will like Abbott Laboratories better if I see some big insider buys. Insiders in Abbott Laboratories didn't buy any shares in the last year. |
31491.0 | 2022-07-31 00:00:00 UTC | If You Invested $25,000 in Abbott Laboratories in 2013, This Is How Much You Would Have Today | ABT | https://www.nasdaq.com/articles/if-you-invested-%2425000-in-abbott-laboratories-in-2013-this-is-how-much-you-would-have | nan | nan | It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition.
The move has worked out well for AbbVie, which today has a larger market capitalization than Abbott's. But how has it worked out for Abbott, and would its investors have made the right move if they bought $25,000 worth of shares in the company back then?
Abbott has continued to grow and remain diverse
In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role:
ABT Revenue (Annual) data by YCharts.
In 2021, Abbott generated $7.7 billion in revenue from its COVID-19 testing products, which accounted for 18% of its $43.1 billion in total sales. The healthcare company has been investing in its different segments and developing new products, which has made the overall business stronger. Here's a quick look at how its reporting units have grown since 2013:
REPORTING SEGMENT 2021 REVENUE 2013 REVENUE % GROWTH
Established pharmaceuticals $4,718 $2,862 65%
Nutritionals $8,294 $6,740 23%
Diagnostics $15,644 $4,545 244%
Medical devices $14,367 $3,012 377%
Figures in millions. Source: Company filings. Table by author.
Diagnostics revenue will likely fall as demand for COVID-19 testing diminishes. However, even in 2019, Abbott reported $7.7 billion from its diagnostics business -- more than double what it reported back in 2013.
What's most impressive is the company's growth in medical devices. In 2013, Abbott had a segment called "vascular" that encompassed all of its devices. Today, the company has a wider variety of devices, with sub-segments including diabetes care, neuromodulation, heart failure, vascular, and others.
Being able to invest in its core business has certainly made Abbott a more diverse and stable company. However, that's not always what investors seek out.
Growth has trumped stability and diversification
On Jan. 2, 2013, after the spinoff, Abbott's stock was trading at around $32. A $25,000 investment would have been enough to buy 781 shares of the business. Today, the value of that investment would be worth more than $85,000.
Investors would have made out well on the investment, but they would have enjoyed even better gains from holding shares of the growth-oriented AbbVie instead; its value has risen by more than 330% since inception, while Abbott's stock price has climbed by 239%. Ultimately, it turned out to be a win-win for both companies, and investors would have made great returns by choosing either stock back then.
Is Abbott still a good buy today?
Abbott recently released its second-quarter results, and all indications are that the company is fine and still finding ways to grow. Sales for the period ended June 30 totaled $11.3 billion, and organically, the business grew at a rate of 14.3% year over year. While diagnostics and COVID-related testing continue to drive its strong numbers, totaling $2.3 billion, its other segments have also been growing. The only exception is the nutritional segment. That's due to recalls of infant formula products, a problem that the company has already addressed.
Although its shares are down 23% this year (worse than the S&P 500, which is down 17%), Abbott remains a good, long-term buy. Its strong fundamentals and diverse product offerings make it a safe option for risk-averse investors for the long haul.
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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 more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). Abbott has continued to grow and remain diverse In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role: ABT Revenue (Annual) data by YCharts. Today, the company has a wider variety of devices, with sub-segments including diabetes care, neuromodulation, heart failure, vascular, and others. | Abbott has continued to grow and remain diverse In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role: ABT Revenue (Annual) data by YCharts. It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. | Abbott has continued to grow and remain diverse In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role: ABT Revenue (Annual) data by YCharts. It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). By doing so, AbbVie could focus on research and developing breakthrough therapies while Abbott could remain a diversified healthcare company focused on generic pharmaceuticals, medical devices, diagnostics, and nutrition. | It has been more than nine years since Abbott Laboratories (NYSE: ABT) spun off AbbVie (NYSE: ABBV). Abbott has continued to grow and remain diverse In the years since the deal, Abbott has more than doubled its annual revenue, and COVID-19 testing played a big role: ABT Revenue (Annual) data by YCharts. But how has it worked out for Abbott, and would its investors have made the right move if they bought $25,000 worth of shares in the company back then? |
31492.0 | 2022-07-31 00:00:00 UTC | 3 Dividend Aristocrats to Buy in August | ABT | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-in-august | nan | nan | Track records matter. And when it comes to dividends, there's a group of stocks that have especially impressive track records. These stocks don't just reliably pay dividends; they've consistently increased their dividends for 25 or more years in a row.
I'm referring, of course, to Dividend Aristocrats. Not every member of this elite group is a great pick to buy right now, but some are. Here are three Dividend Aristocrats to buy in August.
1. AbbVie
AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. That makes the big drugmaker both a Dividend Aristocrat and a Dividend King. AbbVie has grown its dividend payout by more than 250% since 2013 with the dividend yield now topping 3.7%.
It isn't just the dividend that has risen tremendously, though. AbbVie's share price has soared more than 120% over the past three years. The stock ranked as the third best-performing Dividend Aristocrat in the first half of 2022.
The main knock against AbbVie is that autoimmune-disease drug Humira faces biosimilar competition in the U.S. beginning next year. This will present a stiff challenge for the company since Humira generated close to 37% of total revenue in 2021.
However, AbbVie has plenty of rising stars in its product lineup. The company should quickly return to growth after the initial hit from Humira's loss of exclusivity. The headwinds are also already largely priced into the stock, with AbbVie's shares trading at only 10.6 times expected earnings.
2. Abbot Laboratories
Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. That's not a coincidence: Until 2013, AbbVie was part of Abbott. Since the separation of the two companies, Abbott has increased its dividend by over 235%.
There are a few distinct differences between the two healthcare companies, though. Abbott's dividend yield is only 1.7%. Its stock performance has also lagged well behind AbbVie's over the past three years and so far in 2022.
However, Abbott's business remains strong. The company commands market-leading positions in every arena in which it operates, including diagnostics, generic medicines, and nutrition. Abbott delivered 14.3% year-over-year organic revenue growth in the second quarter. It also raised earnings guidance for full-year 2022.
Abbott's COVID-19 testing revenue is likely to decline. But the possibility of another coronavirus wave in the fall and winter could boost sales over the near term. The company also has several other growth drivers, notably including its FreeStyle Libre continuous glucose monitors.
3. PepsiCo
PepsiCo (NASDAQ: PEP) belongs to the same club as AbbVie and Abbott, increasing its dividend for 50 consecutive years. Its dividend payout has more than doubled over the past 10 years. Pepsi's yield now stands at nearly 2.7%.
The stock hasn't always outperformed the S&P 500 in recent years. But even though Pepsi's share price is down slightly in 2022, it's handily beating the market. Investors have been drawn to the stability of the company's beverage and snack business.
Pepsi's second-quarter results showed that its business is largely insulated from inflation. That's a huge plus with inflation at 40-year highs. The company continues to deliver strong growth while passing price increases along to customers.
It's possible that Pepsi could lag behind the market after the current downturn ends. However, until that happens, the stock appears to be one of the best Dividend Aristocrats to buy.
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Keith Speights has positions in AbbVie and PepsiCo. 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. | Abbot Laboratories Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. The main knock against AbbVie is that autoimmune-disease drug Humira faces biosimilar competition in the U.S. beginning next year. The company commands market-leading positions in every arena in which it operates, including diagnostics, generic medicines, and nutrition. | Abbot Laboratories Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. The company continues to deliver strong growth while passing price increases along to customers. | Abbot Laboratories Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. These stocks don't just reliably pay dividends; they've consistently increased their dividends for 25 or more years in a row. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. | Abbot Laboratories Abbott Laboratories (NYSE: ABT) boasts a 50-year history of annual dividend hikes like AbbVie does. AbbVie AbbVie (NYSE: ABBV) has increased its dividend for 50 consecutive years. Abbott's dividend yield is only 1.7%. |
31493.0 | 2022-07-28 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABT | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-35 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Ecolab Inc (Symbol: ECL) $160.64 $195.23 21.53%
Abbott Laboratories (Symbol: ABT) $109.99 $127.08 15.54%
NU Skin Enterprises, Inc. (Symbol: NUS) $43.36 $48.75 12.43%
NextEra Energy Inc (Symbol: NEE) $80.38 $89.38 11.19%
Expeditors International of Washington, Inc. (Symbol: EXPD) $100.57 $111.28 10.65%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Ecolab Inc (Symbol: ECL) 1.27% 21.53% 22.8%
Abbott Laboratories (Symbol: ABT) 1.71% 15.54% 17.25%
NU Skin Enterprises, Inc. (Symbol: NUS) 3.55% 12.43% 15.98%
NextEra Energy Inc (Symbol: NEE) 2.11% 11.19% 13.3%
Expeditors International of Washington, Inc. (Symbol: EXPD) 1.33% 10.65% 11.98%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24%
Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77%
NU Skin Enterprises, Inc. (Symbol: NUS) $1.51 $1.53 1.32%
NextEra Energy Inc (Symbol: NEE) $1.47 $1.62 10.20%
Expeditors International of Washington, Inc. (Symbol: EXPD) $1.1 $1.25 13.64%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ecolab Inc (Symbol: ECL) $160.64 $195.23 21.53% Abbott Laboratories (Symbol: ABT) $109.99 $127.08 15.54% NU Skin Enterprises, Inc. (Symbol: NUS) $43.36 $48.75 12.43% NextEra Energy Inc (Symbol: NEE) $80.38 $89.38 11.19% Expeditors International of Washington, Inc. (Symbol: EXPD) $100.57 $111.28 10.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Ecolab Inc (Symbol: ECL) 1.27% 21.53% 22.8% Abbott Laboratories (Symbol: ABT) 1.71% 15.54% 17.25% NU Skin Enterprises, Inc. (Symbol: NUS) 3.55% 12.43% 15.98% NextEra Energy Inc (Symbol: NEE) 2.11% 11.19% 13.3% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.33% 10.65% 11.98% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% NU Skin Enterprises, Inc. (Symbol: NUS) $1.51 $1.53 1.32% NextEra Energy Inc (Symbol: NEE) $1.47 $1.62 10.20% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.1 $1.25 13.64% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $160.64 $195.23 21.53% Abbott Laboratories (Symbol: ABT) $109.99 $127.08 15.54% NU Skin Enterprises, Inc. (Symbol: NUS) $43.36 $48.75 12.43% NextEra Energy Inc (Symbol: NEE) $80.38 $89.38 11.19% Expeditors International of Washington, Inc. (Symbol: EXPD) $100.57 $111.28 10.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Ecolab Inc (Symbol: ECL) 1.27% 21.53% 22.8% Abbott Laboratories (Symbol: ABT) 1.71% 15.54% 17.25% NU Skin Enterprises, Inc. (Symbol: NUS) 3.55% 12.43% 15.98% NextEra Energy Inc (Symbol: NEE) 2.11% 11.19% 13.3% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.33% 10.65% 11.98% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% NU Skin Enterprises, Inc. (Symbol: NUS) $1.51 $1.53 1.32% NextEra Energy Inc (Symbol: NEE) $1.47 $1.62 10.20% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.1 $1.25 13.64% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $160.64 $195.23 21.53% Abbott Laboratories (Symbol: ABT) $109.99 $127.08 15.54% NU Skin Enterprises, Inc. (Symbol: NUS) $43.36 $48.75 12.43% NextEra Energy Inc (Symbol: NEE) $80.38 $89.38 11.19% Expeditors International of Washington, Inc. (Symbol: EXPD) $100.57 $111.28 10.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Ecolab Inc (Symbol: ECL) 1.27% 21.53% 22.8% Abbott Laboratories (Symbol: ABT) 1.71% 15.54% 17.25% NU Skin Enterprises, Inc. (Symbol: NUS) 3.55% 12.43% 15.98% NextEra Energy Inc (Symbol: NEE) 2.11% 11.19% 13.3% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.33% 10.65% 11.98% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% NU Skin Enterprises, Inc. (Symbol: NUS) $1.51 $1.53 1.32% NextEra Energy Inc (Symbol: NEE) $1.47 $1.62 10.20% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.1 $1.25 13.64% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $160.64 $195.23 21.53% Abbott Laboratories (Symbol: ABT) $109.99 $127.08 15.54% NU Skin Enterprises, Inc. (Symbol: NUS) $43.36 $48.75 12.43% NextEra Energy Inc (Symbol: NEE) $80.38 $89.38 11.19% Expeditors International of Washington, Inc. (Symbol: EXPD) $100.57 $111.28 10.65% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Ecolab Inc (Symbol: ECL) 1.27% 21.53% 22.8% Abbott Laboratories (Symbol: ABT) 1.71% 15.54% 17.25% NU Skin Enterprises, Inc. (Symbol: NUS) 3.55% 12.43% 15.98% NextEra Energy Inc (Symbol: NEE) 2.11% 11.19% 13.3% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.33% 10.65% 11.98% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.91 $2.01 5.24% Abbott Laboratories (Symbol: ABT) $1.71 $1.86 8.77% NU Skin Enterprises, Inc. (Symbol: NUS) $1.51 $1.53 1.32% NextEra Energy Inc (Symbol: NEE) $1.47 $1.62 10.20% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.1 $1.25 13.64% These five stocks are part of our full Dividend Aristocrats List. |
31494.0 | 2022-07-27 00:00:00 UTC | 3 MedTech Stocks That are Likely to Beat This Earnings Season | ABT | https://www.nasdaq.com/articles/3-medtech-stocks-that-are-likely-to-beat-this-earnings-season | nan | nan | So far, the second-quarter reporting cycle has displayed a year-over-year improvement for the MedTech companies within the broader Medical sector. Overall, the handful of MedTech stocks that have released their earnings so far showed accelerated base business growth through the months of the second quarter compared with 2021, given the reduction in the severity of COVID-19 despite the emergence of new virus variants.
However, if we consider the performance on a sequential basis, the Q2 performance of the majority of the companies is likely to have deteriorated. A number of MedTech players are expected to have witnessed rising raw material costs and other expense pressure through the Q2 months, thanks to the global surge in the inflationary situation. Added to this, the ongoing staffing shortages and supply-chain hazards with the emergence of the new COVID variants are expected to have dampened the growth process.
Meanwhile, industry players that have well-adapted to changing consumer preferences are witnessing a continued uptrend in their stock prices. Also, the legacy base business recovery of the companies through Q2 is expected to be sharp.
Here we talk about three stocks, STERIS STE, Thermo Fisher TMO and IDEXX Laboratories IDXX that are expected to beat earnings estimates in the ongoing reporting cycle.
Two Major Q2 Trends
The Q2 reporting cycle depicted a solid rebound in base sales volumes with the companies reaching their pre-pandemic legacy business level. This was attributed to a significant reduction in COVID-led fatality across the United States and other developed markets. With the continued opening up of the economy, there has been a significant rebound in non-COVID and elective legacy businesses of the MedTech companies. Also, the second-quarter results of the diagnostic testing companies are expected to reflect a sequential rise in testing demand, thanks to rising new cases, leading to impressive business growth for many companies.
However, a contrasting trend is also evident. Considering the deteriorating trade situation, with the global inflationary pressure leading to an extremely tighter situation related to raw material and labor cost as well as freight charges, we expect second-quarter results to be disappointing in comparison to Q1. In this regard, IMF, on its Jul 26 World Economic Outlook Update, noted that a tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022. IMF specifically addressed that theworse-than-anticipated slowdown in China, difficult trade situation in Russia, along with significant slowing down of U.S. consumer spending in the inflationary phase resulted in output contraction in the second quarter.
The IMF update noted that global growth is expected to moderate from 6.1% in 2021 to 3.2% in 2022—0.4 percentage points lower than in the April 2022 World Economic Outlook. The reduced household purchasing power and tighter monetary policy drove a downward revision of 1.4 percentage points in the United States.
This deteriorating economic outlook is evident in the MedTech sector’s sequential business slowdown in Q2. The industry players who had witnessed a strong rebound in product demand across core business segments till the first quarter, might have collectively faced a setback in terms of reduction in consumer spending and staffing shortages.
Q2 Scorecard Thus Far
Per the latest Earnings Preview, 8.9% of the companies in the broader Medical sector, constituting nearly 29% of the sector’s market capitalization, have already reported earnings. Of these, 100% beat in terms of both earnings and revenue estimates. Earnings increased 10.4% year over year on 11.2% higher revenues. Overall, second-quarter earnings for the Medical sector are expected to rise 1.5% on an 8.1% sales increase.
Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate.
In Q2, Abbott’sOrganic sales increased 14.5%, led by growth in the core Established Pharmaceuticals Division (EPD), diagnostics, and medical devices.
Within EPD, Abbott achieved 9% organic sales growth led by double-digit growth across several countries, including China, Brazil, Colombia, Mexico, and Vietnam. In Diagnostics, in the reported quarter, worldwide diagnostic sales grew 35% organically. COVID-19 test sales were $2.3 billion in the quarter, more than 95% of which came from rapid tests, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally. Within medical devices, Abbott’ssales grew 7.5% in the quarter led by growth in cardiovascular devices, particularly in structural heart and heart failure. In diabetes care, sales of FreeStyle Libre grew more than 25% organically with the user base now exceeding 4 million users globally.
Quest Diagnostics’ legacy base business grew 2.9% in the second quarter amid softer utilization trends, which impacted the entire health care industry. During the reported quarter, the company saw solid performances from hematology, prenatal genetics and pharma services. The company also ramped up investments to accelerate growth in the base business, particularly in advanced diagnostics and direct-to-consumer testing.
However, pressure on volume, owing to a difficult macroeconomic situation and pricing, constitutes the primary risk for Quest Diagnostics. Total volume, measured by the number of requisitions, was down 1.4% year over year in the second quarter. Revenue per requisition declined 2.6% year over year due to lower COVID-19 molecular testing volume.
Zacks Methodology
Given the high degree of diversity in the Medtech industry, finding the right stocks with the potential to beat estimates might be quite a daunting task.
However, our proprietary Zacks methodology makes this fairly simple.
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with this combination, the chances of an earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here we present three MedTech stocks that are expected to beat earnings estimates in this reporting cycle.
STERIS: The Healthcare arm of STERIS has been witnessing a major rebound, with considerable constant currency organic growth during fiscal 2022. STERIS’ Key Surgical and Cantel Medical businesses have been making significant contributions to consumable revenues within the Healthcare arm over the last few quarters. With more normalized procedure volume through the months of the first quarter of fiscal 2023, this uptrend is expected to have continued in Q1. (Read more: STERIS to Report Q1 Earnings: What's in the Cards?)
STERIS’ Earnings ESP of +1.85% and a Zacks Rank #1 raise the possibility of an earnings surprise in the to-be-reported quarter.
STERIS is slated to release results for the first quarter of fiscal 2023 on Aug 2.
STERIS plc Price and EPS Surprise
STERIS plc price-eps-surprise | STERIS plc Quote
Thermo Fisher: Through the months of the second quarter, Thermo Fisher’s Analytical Instruments segment is expected to have generated strong sales, banking on electron microscopy, chromatography, mass spectrometry, chemical analysis as well as the research and safety market channel businesses. The company is expected to report growth driven by a favorable business mix and new launches including four new gas chromatography and GC-MS instruments to advance analytical testing for food, environmental, industrial, and pharmaceutical applications. (Read more: What's in Store for Thermo Fisher in Q2 Earnings?)
Thermo Fisher is scheduled to release second-quarter 2022 results on Jul 28.
Thermo Fisher has an Earnings ESP of +2.96% and a Zacks Rank #3.
Thermo Fisher Scientific Inc. Price and EPS Surprise
Thermo Fisher Scientific Inc. price-eps-surprise | Thermo Fisher Scientific Inc. Quote
IDEXX: The Companion Animal Group (CAG) business of IDEXX is expected to have gained in the second quarter of 2022 from consistent strong organic CAG Diagnostics recurring revenues backed by an increasing number of pet patients. With economies returning to pre-pandemic levels, we anticipate a rebound in the U.S. clinical visits to have led to CAG Diagnostic recurring revenue gains in Q2. The CAG arm is also likely to have gained from continued organic revenue growth in CAG diagnostic instruments, as it did in the last reported quarter. (Read more: IDEXX to Report Q2 Earnings: What's in the Cards?)
IDEXX is scheduled to release second-quarter 2022 results on Aug 2.
IDXX has an Earnings ESP of +49.15% and a Zacks Rank #3.
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Abbott Laboratories (ABT): Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
STERIS plc (STE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report IMF specifically addressed that theworse-than-anticipated slowdown in China, difficult trade situation in Russia, along with significant slowing down of U.S. consumer spending in the inflationary phase resulted in output contraction in the second quarter. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, STERIS STE, Thermo Fisher TMO and IDEXX Laboratories IDXX that are expected to beat earnings estimates in the ongoing reporting cycle. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, STERIS STE, Thermo Fisher TMO and IDEXX Laboratories IDXX that are expected to beat earnings estimates in the ongoing reporting cycle. | Abbott ABT and Quest Diagnostics DGX are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, STERIS STE, Thermo Fisher TMO and IDEXX Laboratories IDXX that are expected to beat earnings estimates in the ongoing reporting cycle. |
31495.0 | 2022-07-27 00:00:00 UTC | Merck avoided billions in U.S. tax by offshoring Keytruda profits - senator | ABT | https://www.nasdaq.com/articles/merck-avoided-billions-in-u.s.-tax-by-offshoring-keytruda-profits-senator | nan | nan | By Michael Erman
July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee.
The committee's chairman Senator Ron Wyden of Oregon sent a letter to Merck Chief Executive Robert Davis on Wednesday criticizing the drugmaker for refusing to provide all the information the committee has requested. Wyden's office provided a copy of the letter to Reuters.
Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes.
Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland.
"Prior to today, we have received two letters from the Senate Finance Committee requesting responses to questions around our tax rate, and in each case, we have cooperated and responded with information that we believe appropriately addressed their inquiries," Merck said in an emailed statement.
AbbVie did not immediately respond to a request for comment.
Cancer immunotherapy Keytruda is one of the world's top-selling drugs. Merck sold around $17.2 billion of it in 2021, with around $9.8 billion of those sales in the United States.
Merck's effective tax rate last year was 11%, Wyden said in his letter, just over half the current U.S. corporate tax rate of 21%.
Wyden said the $22.4 billion of sales it reported in the United States accounted for 46% of Merck's sales in 2021. Still, the company only reported $1.85 billion in pretax income in the United States for the year - less than 15% of its total pretax income.
Earlier this month, an interim report from the committee said that shifting profits overseas by AbbVie Inc resulted in "stunningly low effective tax rates."
In 2018, Reuters laid out how AbbVie reported its income in lower tax jurisdictions, which was possible in part because the company parked the majority of the patents for its top-selling drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda.
(Reporting by Michael Erman Editing by Caroline Humer and Mark Potter)
((michael.erman@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. | By Michael Erman July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee. Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland. "Prior to today, we have received two letters from the Senate Finance Committee requesting responses to questions around our tax rate, and in each case, we have cooperated and responded with information that we believe appropriately addressed their inquiries," Merck said in an emailed statement. | By Michael Erman July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee. Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland. Still, the company only reported $1.85 billion in pretax income in the United States for the year - less than 15% of its total pretax income. | By Michael Erman July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee. Democrats on the committee have been investigating how the tax law passed by Republicans in 2017 has benefited large U.S. pharmaceutical companies such as Merck and AbbVie and whether those companies have been exploiting foreign subsidiaries to avoid taxes. Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland. | By Michael Erman July 27 (Reuters) - Drugmaker Merck & Co MRK.N avoided billions of dollars of U.S. taxes in recent years on its top-selling cancer drug Keytruda by booking all the profits from the treatment outside of the United States, according to an ongoing investigation by Democrats on the Senate Finance Committee. Wyden said in the letter that Merck was able to avoid U.S. taxes on Keytruda - even on sales in the United States - by holding patents in the Netherlands and manufacturing the drug in Ireland. "Prior to today, we have received two letters from the Senate Finance Committee requesting responses to questions around our tax rate, and in each case, we have cooperated and responded with information that we believe appropriately addressed their inquiries," Merck said in an emailed statement. |
31496.0 | 2022-07-27 00:00:00 UTC | iShares Russell 1000 Value ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/ishares-russell-1000-value-etf-experiences-big-outflow-1 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Value ETF (Symbol: IWD) where we have detected an approximate $462.4 million dollar outflow -- that's a 0.9% decrease week over week (from 350,450,000 to 347,350,000). Among the largest underlying components of IWD, in trading today Bank of America Corp (Symbol: BAC) is up about 0.3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.4%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average:
Looking at the chart above, IWD's low point in its 52 week range is $139.96 per share, with $171.42 as the 52 week high point — that compares with a last trade of $149.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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 IWD, in trading today Bank of America Corp (Symbol: BAC) is up about 0.3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.4%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $139.96 per share, with $171.42 as the 52 week high point — that compares with a last trade of $149.73. 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 IWD, in trading today Bank of America Corp (Symbol: BAC) is up about 0.3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.4%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $139.96 per share, with $171.42 as the 52 week high point — that compares with a last trade of $149.73. 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 IWD, in trading today Bank of America Corp (Symbol: BAC) is up about 0.3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.4%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Value ETF (Symbol: IWD) where we have detected an approximate $462.4 million dollar outflow -- that's a 0.9% decrease week over week (from 350,450,000 to 347,350,000). For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $139.96 per share, with $171.42 as the 52 week high point — that compares with a last trade of $149.73. | Among the largest underlying components of IWD, in trading today Bank of America Corp (Symbol: BAC) is up about 0.3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.4%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Value ETF (Symbol: IWD) where we have detected an approximate $462.4 million dollar outflow -- that's a 0.9% decrease week over week (from 350,450,000 to 347,350,000). For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $139.96 per share, with $171.42 as the 52 week high point — that compares with a last trade of $149.73. |
31497.0 | 2022-07-27 00:00:00 UTC | 7 Large-Cap Stocks to Buy on the Dip | ABT | https://www.nasdaq.com/articles/7-large-cap-stocks-to-buy-on-the-dip | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Following this year’s sell-off, seasoned investors are increasingly hunting for large-cap stocks to buy on the dip. For instance, the S&P 500 index and Dow Jones Industrial Average have lost 185 and 13% so far in 2022. As investors rotate toward safer bets, undervalued large-cap stocks could offer attractive upside potential for long-term investors.
Recent numbers from the Bureau of Labor Statistics reported show the consumer price index increased 9.1% from June 2021. Put another way, the U.S. is facing its highest inflationary pressure in four decades.
Wall Street now expects the Federal Reserve to continue its aggressive position on taming inflation. Many analysts are already bracing for a full percentage point hike in interest rates in late July.
Amidst such macroeconomic headwinds, it could be prudent to get more defensive by investing in large-cap stocks. Such shares boast mature businesses with wide moats. Investors can typically rely on them for stable revenue, earnings growth and dividends.
With that information, here are seven large-cap stocks to buy on the dip that could offer lucrative returns for long-term investors.
Ticker Company/Fund Recent Price
ABT Abbott Laboratories $108.88
AVIV Avantis International Large Cap Value ETF $42.25
COST Costco Wholesale $510.85
DHR Danaher $274.04
ILCV iShares Morningstar Value ETF $62.12
LIN Linde $285.65
NVDA Nvidia $166.11
Abbott Laboratories (ABT)
Healthcare giant Abbott Laboratories (NYSE:ABT), our first large-cap stock It manufactures medical devices, nutritional products, diagnostic equipment, testing kits, as well as branded generic drugs.
Abbott reported Q2 results on July 20. Revenue stood at $11.3 billion, up 10.1%. Adjusted diluted earnings per share came in at $1.43.
Meanwhile, Abbott’s nutrition segment was in the spotlight due to the nationwide baby formula shortage caused by the closure of one of its factories. Despite the bad press the company received, this shortage also highlighted Abbott’s solid competitive advantage in this niche segment.
In early June, management announced Abbott’s FreeStyle Libre 3 system. It will become the first 14-day continuous glucose monitoring system to eliminate daily fingersticks. Long-term ABT investors will look at how it can contribute to Abbott’s bottom line.
ABT stock has been hovering near its 52-week low. This Dividend King recently supported a yield of 1.8%. Shares were changing hands at 22.6 times forward earnings and 4.4 times sales. Wall Street’s 12-month median price forecast for Abbott stock stands at $132.50.
Avantis International Large Cap Value ETF (AVIV)
The Avantis International Large Cap Value ETF (NYSEARCA:AVIV) invests in global companies with high profitability that also trade at low valuations. The fund started trading in September 2021.
AVIV tracks the MSCI World Ex-USA Value Index and has 474 holdings. Regarding sector weightings, we see Finance with 25.88%, Energy Minerals with 15.30%, and Non-Energy Minerals with 10.36%.
The top 10 stocks in the fund account for more than 17% of $41.6 million in net assets. Energy and petrochemical giants Shell (NYSE:SHEL) and BP (NYSE:BP); mining companies Anglo American (OTCMKTS:ANGPY) and Rio Tinto (NYSE:RIO) are among the leading holdings in the fund.
The ETF WAS down 19% this year. Price-to-earnings and price-to-book ratios stand at 9.35x and 1.29x, respectively. AVIV could appeal to readers looking for international large-cap with juicy dividends.
Costco Wholesale (COST)
Wholesale giant Costco Wholesale (NASDAQ:COST) boasts around 850 membership warehouses around the globe. Its share of retail e-commerce stateside is over 1.5%.
The wholesale giant released Q3 financials on May 26. Revenue increased 16.3% YOY to $51.61 billion from $44.38 billion last year. Diluted EPS increased to $3.04, up from $2.75 in the prior-year quarter. Cash and equivalents ended the period at $11.2 billion.
Costco grew its membership households 6% YOY to 64.4 million. Global membership renewal rates stand at a robust 90%. Comparable-store sales accounted for nearly 15% of the revenue growth.
Meanwhile, Costco recently acquired the minority interest of 45% of Costco Taiwan. Investors are wondering if Costco’s international expansion steps are likely to continue in future quarters.
Shares have lost 13% of their value YTD, yet they are up 21% over a 52-week period. Forward P/E and P/S metrics stand at 34.8 and 1x, respectively. Wall Street’s 12-month median price forecast for Costco stock is $546.50.
Danaher (DHR)
Our next stock pick for today is the industrial play Danaher (NYSE:DHR), which manufactures life sciences, diagnostics and environmental products. Among other industrial manufacturers stateside, its market share is well over 2%.
On July 21, DHR released its second-quarter financials. Revenue increased 7.5% YOY to $7.8 billion. Adjusted diluted EPS came in at $2.25, down. 1.5% compared to a year ago. The mighty cash cow generated a free cash flow of $1.7 billion in the quarter.
In 2021, Danaher had enjoyed significant diagnostic revenue thanks to Covid-19 testing. Wall Street was pleased that management generated double-digit growth in Q2 2022.
DHR stock is down about 14% YTD.
Yet, many analysts point out DHR shares deserve a premium due to its wide moat, continuous growth prospects, and strong profit margins. Analysts’ median price forecast for Danaher stock stands at $320.
iShares Morningstar Value ETF (ILCV)
The iShares Morningstar Value ETF (NYSEARCA:ILCV) provides exposure to U.S. companies that are considered to be undervalued compared to their peers. The fund started trading in June 2004.
ILCV tracks the Morningstar US Large-Mid Cap Broad Value Index and has 536 holdings. Regarding sectoral distribution, we see Health Care with 18.11%, Financials with 16.83%, Information Technology with 12.60%, and Industrials with 10.46%, among others.
The top 10 stocks in the portfolio represent more than a fifth of the $720 million in total net assets. Leading names on the roster include Apple (NASDAQ:AAPL), Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), Johnson & Johnson (NYSE:JNJ), and Exxon Mobil (NYSE:XOM).
The ETF is currently down 13.5% YTD. P/E and P/B ratios stand at 14.3x and 2.5x, respectively. We believe ILCV could find a place in long-term portfolios, especially following the recent declines on Wall Street.
Linde (LIN)
Linde (NYSE:LIN), our next large-cap stock, is one of the largest industrial gas suppliers worldwide. The gas giant serves various end markets, including chemicals, manufacturing, healthcare, and steelmaking. Globally, the group has a market share of about 30%.
On April 28, Linde announced Q1 earnings. Revenue jumped 13% YOY to $8.2 billion. Adjusted earnings came in at $2.93 per diluted share, up 18% YOY. Free cash flow generated during the quarter stood at $1.35 billion.
Management raised full-year 2022 adjusted EPS guidance to $11.65 to $11.90. These numbers would represent a 9% to 11% growth YOY.
In late June, the Austrian food retailer MPREIS launched Europe’s most powerful hydrogen refueling station. It was designed and built by Linde Engineering to supply green hydrogen for trucks. As global decarbonization efforts increase, analysts expect Linde to play a growing role in this space.
So far in 2022, LIN stock is down nearly 21%. The current price level supports a dividend yield of 1.7%. Shares are trading at 22.9 times forward earnings and 4.5 times sales. Wall Street’s 12-month median price forecast stands at $358.97.
Nvidia (NVDA)
Next up is the semiconductor giant Nvidia (NASDAQ:NVDA). We find its chips increasingly in autonomous driving, robotics and virtual reality.
Within the graphics processing unit, or GPU, segment, Nvidia’s market share is around 20%. Meanwhile, InvestorPlace.com readers will know company is in the process of transitioning from a dominant hardware player to a computing platform company.
The chipmaker reported Q1 FY23 results on May 25. Revenue came in at a record $8.29 billion, up 46% year-over-year. Adjusted earnings came in at $1.36 per diluted share, up 49% YOY. Cash and equivalents ended the period at $3.89 billion.
The company recently launched Nvidia Omniverse, a platform for Web 3.0 developers to build their own metaverse products. In late June, Nvidia and Siemens (OTCMKTS:SIEGY) jointly announced they will increase the use of AI to bring industrial automation to a new level. The two companies will connect Siemens’ open digital business platform with Nvidia’s Omniverse 3D design and collaboration platform.
NVDA stock is down more than 48% YTD, near its 52-week lows. Shares are trading at 29.4 times forward earnings and 13.6 times sales. Finally, the current 12-month median price forecast for Nvidia stock stands at $229.
On the date of publication, Tezcan Gecgil, Ph.D., is both long and short NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Large-Cap Stocks to Buy on the Dip 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. | Ticker Company/Fund Recent Price ABT Abbott Laboratories $108.88 AVIV Avantis International Large Cap Value ETF $42.25 COST Costco Wholesale $510.85 DHR Danaher $274.04 ILCV iShares Morningstar Value ETF $62.12 LIN Linde $285.65 NVDA Nvidia $166.11 Abbott Laboratories (ABT) Healthcare giant Abbott Laboratories (NYSE:ABT), our first large-cap stock It manufactures medical devices, nutritional products, diagnostic equipment, testing kits, as well as branded generic drugs. Long-term ABT investors will look at how it can contribute to Abbott’s bottom line. ABT stock has been hovering near its 52-week low. | Ticker Company/Fund Recent Price ABT Abbott Laboratories $108.88 AVIV Avantis International Large Cap Value ETF $42.25 COST Costco Wholesale $510.85 DHR Danaher $274.04 ILCV iShares Morningstar Value ETF $62.12 LIN Linde $285.65 NVDA Nvidia $166.11 Abbott Laboratories (ABT) Healthcare giant Abbott Laboratories (NYSE:ABT), our first large-cap stock It manufactures medical devices, nutritional products, diagnostic equipment, testing kits, as well as branded generic drugs. Long-term ABT investors will look at how it can contribute to Abbott’s bottom line. ABT stock has been hovering near its 52-week low. | Ticker Company/Fund Recent Price ABT Abbott Laboratories $108.88 AVIV Avantis International Large Cap Value ETF $42.25 COST Costco Wholesale $510.85 DHR Danaher $274.04 ILCV iShares Morningstar Value ETF $62.12 LIN Linde $285.65 NVDA Nvidia $166.11 Abbott Laboratories (ABT) Healthcare giant Abbott Laboratories (NYSE:ABT), our first large-cap stock It manufactures medical devices, nutritional products, diagnostic equipment, testing kits, as well as branded generic drugs. Long-term ABT investors will look at how it can contribute to Abbott’s bottom line. ABT stock has been hovering near its 52-week low. | Ticker Company/Fund Recent Price ABT Abbott Laboratories $108.88 AVIV Avantis International Large Cap Value ETF $42.25 COST Costco Wholesale $510.85 DHR Danaher $274.04 ILCV iShares Morningstar Value ETF $62.12 LIN Linde $285.65 NVDA Nvidia $166.11 Abbott Laboratories (ABT) Healthcare giant Abbott Laboratories (NYSE:ABT), our first large-cap stock It manufactures medical devices, nutritional products, diagnostic equipment, testing kits, as well as branded generic drugs. Long-term ABT investors will look at how it can contribute to Abbott’s bottom line. ABT stock has been hovering near its 52-week low. |
31498.0 | 2022-07-27 00:00:00 UTC | Why a Product Recall Won't Change This Company's Prospects | ABT | https://www.nasdaq.com/articles/why-a-product-recall-wont-change-this-companys-prospects | nan | nan | Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. Marketwide worries such as rising inflation and geopolitical tensions aside, the medical devices specialist has been hit hard partly due to issues related to its infant formula business. In February, Abbott Laboratories voluntarily recalled infant formula manufactured at one of its U.S. plants after four infants who had consumed the company's products were hospitalized with bacterial infections.
This problem is worth keeping an eye on as it negatively impacted Abbott Laboratories' revenue. However, it won't derail Abbott Laboratories' long-term prospects, and the company provided more evidence for that in its latest quarterly update. Here's why Abbott Laboratories' future remains bright.
ABT data by YCharts
The benefits of diversification
Abbott Laboratories restarted partial production in the facility that manufactured the infant formula in question only last month. The effects of this halt in production are evident in the company's revenue from its nutrition segment. During the second quarter, this unit delivered about $2 billion in sales, representing a 7.4% year-over-year decline. Excluding sales of the products associated with the recall, Abbott Laboratories' nutrition revenue increased by 0.5%.
That's not a particularly impressive jump, but it's much better than a 7.4% decline. Moreover, this headwind did not have that big an impact on Abbott Laboratories' overall top line. The company's sales increased by 10.1% to $11.3 billion. There's more to the story. Abbott Laboratories is best known for its medical devices. During the second quarter, this segment suffered due to a resurgence of COVID-19 cases in various places around the world.
Abbott Laboratories has been dealing with this issue since the pandemic started. And the healthcare giant continues to keep its revenue and earnings afloat due to the sale of COVID-19 diagnostic products. Abbott's diagnostics segment reported sales of $4.3 billion during the period, a 33.1% year-over-year increase, largely thanks to $2.3 billion in COVID-19 testing-related sales.
Excluding its coronavirus-related revenue and sales associated with the infant products it recalled, Abbott Laboratories' revenue would have increased by 1.6% during the quarter. The company's diversified business helped it get through yet another challenging period.
A solid long-term pick
Abbott Laboratories' coronavirus-related headwinds won't last forever. Nobody knows when the pandemic will officially end but when it does, the company's medical device business will fully recover. After all, some of Abbott's key products are still performing well. That's the case for its continuous glucose monitoring (CGM) system, the FreeStyle Libre. In my view, this device is one of the most important for the future of Abbott Laboratories.
That's because CGM technology helps diabetes patients keep track of their blood glucose levels continuously throughout the day and leads to better health outcomes for these patients while reducing the economic burden associated with diabetes. Meanwhile, diabetes is on the rise.
In the second quarter, sales of Abbott Laboratories' diabetes care products jumped by 12.8% to $1.2 billion -- thanks to sales of the FreeStyle Libre increasing by 18.7% year over year to roughly $1.1 billion. Abbott Laboratories boasts various other growth prospects as well, and it is also a solid pick for income-seeking investors. The company is a Dividend King -- part of an exclusive group of corporations that have raised their payouts for at least 50 consecutive years.
There will be more dividend hikes in Abbott's future. Abbott Laboratories' 1.72% dividend yield is barely above average in the S&P 500, but it has a conservative payout ratio of just 39.67%. Product recalls are rarely good news for a company, and the continued impact of COVID-19 on Abbott's medical devices segment is worth monitoring. But these short-term roadblocks will do very little to stop the company in the long run. As per usual in the stock market, patience will pay off.
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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. | ABT data by YCharts The benefits of diversification Abbott Laboratories restarted partial production in the facility that manufactured the infant formula in question only last month. Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. Marketwide worries such as rising inflation and geopolitical tensions aside, the medical devices specialist has been hit hard partly due to issues related to its infant formula business. | Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. ABT data by YCharts The benefits of diversification Abbott Laboratories restarted partial production in the facility that manufactured the infant formula in question only last month. Excluding its coronavirus-related revenue and sales associated with the infant products it recalled, Abbott Laboratories' revenue would have increased by 1.6% during the quarter. | Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. ABT data by YCharts The benefits of diversification Abbott Laboratories restarted partial production in the facility that manufactured the infant formula in question only last month. Excluding sales of the products associated with the recall, Abbott Laboratories' nutrition revenue increased by 0.5%. | Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. ABT data by YCharts The benefits of diversification Abbott Laboratories restarted partial production in the facility that manufactured the infant formula in question only last month. Excluding its coronavirus-related revenue and sales associated with the infant products it recalled, Abbott Laboratories' revenue would have increased by 1.6% during the quarter. |
31499.0 | 2022-07-27 00:00:00 UTC | Reckitt raises sales forecast after quarterly beat | ABT | https://www.nasdaq.com/articles/reckitt-raises-sales-forecast-after-quarterly-beat | nan | nan | Adds details, background
LONDON, July 27 (Reuters) - Britain's Reckitt Benckiser RKT.L, maker of Dettol and Lysol cleaning products, on Wednesday raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations.
The company said quarterly like-for-like revenue rose 11.9% on a constant currency basis, ahead of the 6.8% growth analysts had expected in a company-supplied poll.
Quarterly sales also received a roughly 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands in February.
"We now expect like-for-like net revenue growth of 5% - 8% for 2022, and growth in adjusted operating margins," Reckitt said in a statement. In April, the company had said it expected net revenue growth in the upper part of a 1-4% range.
Reckitt, whose products also include Nurofen painkillers, Durex condoms and Strepsils cough lozenges, is one of many packaged goods companies that have struggled with higher input costs since the start of the COVID-19 pandemic.
Supply chain logjams at major ports and soaring energy costs due to the Ukraine-Russia conflict have only made matters worse, sending the prices of key raw materials like palm oil, pulp and plastic to record highs.
To combat higher expenses and make up for lacklustre volumes as consumers traded down to supermarkets' private label brands, Reckitt raised prices 9.7% in the quarter. Sales volumes were up 2.2%.
(Reporting by Richa Naidu Editing by Mark Potter)
((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. | Quarterly sales also received a roughly 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands in February. Adds details, background LONDON, July 27 (Reuters) - Britain's Reckitt Benckiser RKT.L, maker of Dettol and Lysol cleaning products, on Wednesday raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations. Reckitt, whose products also include Nurofen painkillers, Durex condoms and Strepsils cough lozenges, is one of many packaged goods companies that have struggled with higher input costs since the start of the COVID-19 pandemic. | Quarterly sales also received a roughly 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands in February. The company said quarterly like-for-like revenue rose 11.9% on a constant currency basis, ahead of the 6.8% growth analysts had expected in a company-supplied poll. "We now expect like-for-like net revenue growth of 5% - 8% for 2022, and growth in adjusted operating margins," Reckitt said in a statement. | Quarterly sales also received a roughly 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands in February. Adds details, background LONDON, July 27 (Reuters) - Britain's Reckitt Benckiser RKT.L, maker of Dettol and Lysol cleaning products, on Wednesday raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations. "We now expect like-for-like net revenue growth of 5% - 8% for 2022, and growth in adjusted operating margins," Reckitt said in a statement. | Quarterly sales also received a roughly 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands in February. Adds details, background LONDON, July 27 (Reuters) - Britain's Reckitt Benckiser RKT.L, maker of Dettol and Lysol cleaning products, on Wednesday raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations. The company said quarterly like-for-like revenue rose 11.9% on a constant currency basis, ahead of the 6.8% growth analysts had expected in a company-supplied poll. |
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