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31600.0 | 2022-06-04 00:00:00 UTC | Baby formula shortage could ease as Abbott reopens Michigan plant | ABT | https://www.nasdaq.com/articles/baby-formula-shortage-could-ease-as-abbott-reopens-michigan-plant | nan | nan | Adds background
June 4 (Reuters) - Abbott Laboratories ABT.N said on Saturday that it has reopened its baby formula production plant in Sturgis, Michigan, taking a step toward alleviating an acute nationwide shortage that has sent parents scrambling for supplies.
The company said it will begin production of EleCare and other specialty and metabolic formulas, with initial EleCare product release to consumers beginning on or about June 20.
The FDA said on May 19 that the plant was on track to open within one or two weeks.
The plant shutdown and a recall of infant formula had deepened a supply shortage in a nation where, according to federal data from 2020, less than half of babies were exclusively breast-fed through their first three months.
Abbott started a recall in February after reports of bacterial infections in children who had consumed the formula made at the plant.
(Reporting by Juby Babu and Manas Mishra in Bengaluru; Editing by Lisa Shumaker and Diane Craft)
((Juby.Babu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background June 4 (Reuters) - Abbott Laboratories ABT.N said on Saturday that it has reopened its baby formula production plant in Sturgis, Michigan, taking a step toward alleviating an acute nationwide shortage that has sent parents scrambling for supplies. The plant shutdown and a recall of infant formula had deepened a supply shortage in a nation where, according to federal data from 2020, less than half of babies were exclusively breast-fed through their first three months. Abbott started a recall in February after reports of bacterial infections in children who had consumed the formula made at the plant. | Adds background June 4 (Reuters) - Abbott Laboratories ABT.N said on Saturday that it has reopened its baby formula production plant in Sturgis, Michigan, taking a step toward alleviating an acute nationwide shortage that has sent parents scrambling for supplies. The company said it will begin production of EleCare and other specialty and metabolic formulas, with initial EleCare product release to consumers beginning on or about June 20. The plant shutdown and a recall of infant formula had deepened a supply shortage in a nation where, according to federal data from 2020, less than half of babies were exclusively breast-fed through their first three months. | Adds background June 4 (Reuters) - Abbott Laboratories ABT.N said on Saturday that it has reopened its baby formula production plant in Sturgis, Michigan, taking a step toward alleviating an acute nationwide shortage that has sent parents scrambling for supplies. The company said it will begin production of EleCare and other specialty and metabolic formulas, with initial EleCare product release to consumers beginning on or about June 20. The plant shutdown and a recall of infant formula had deepened a supply shortage in a nation where, according to federal data from 2020, less than half of babies were exclusively breast-fed through their first three months. | Adds background June 4 (Reuters) - Abbott Laboratories ABT.N said on Saturday that it has reopened its baby formula production plant in Sturgis, Michigan, taking a step toward alleviating an acute nationwide shortage that has sent parents scrambling for supplies. The company said it will begin production of EleCare and other specialty and metabolic formulas, with initial EleCare product release to consumers beginning on or about June 20. The FDA said on May 19 that the plant was on track to open within one or two weeks. |
31601.0 | 2022-06-04 00:00:00 UTC | H&H working with FDA to up U.S. baby formula supplies | ABT | https://www.nasdaq.com/articles/hh-working-with-fda-to-up-u.s.-baby-formula-supplies | nan | nan | By Richa Naidu
LONDON, June 4 (Reuters) - Health and Happiness (H&H) International Holdings Ltd is working closely with the U.S. Food and Drug Administration (FDA) to gain approval to send more infant formula supplies to the United States, a top executive said.
Top manufacturer Abbott Laboratories in February recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent baby food shortages in recent history for U.S. families.
H&H, China's fourth-biggest and the world's tenth-largest infant formula supplier, has joined European rivals in stepping up shipments to address the shortage, according to Chief Strategy & Operations Officer Akash Bedi.
The maker of infant formula Biostime is "urgently working to provide assistance and is in the process of shipping infant formula from France and Australia to the U.S. to respond to the crisis," Bedi said in an emailed statement.
"H&H is working closely with the FDA and other government bodies to gain approval and hope to be able to send products in the coming weeks," he added.
The company has not seen any impact from the U.S. shortage in the Chinese market, Bedi added. (Reporting by Richa Naidu; Editing by Matt Scuffham and Christina Fincher) ((richa.naidu@tr.com ; Follow me on Twitter https://twitter.com/Richa_Writes; +44 755 755 9587;)) Keywords: SUPPLY CHAIN BABY FORMULA/H&H
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Richa Naidu LONDON, June 4 (Reuters) - Health and Happiness (H&H) International Holdings Ltd is working closely with the U.S. Food and Drug Administration (FDA) to gain approval to send more infant formula supplies to the United States, a top executive said. Top manufacturer Abbott Laboratories in February recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent baby food shortages in recent history for U.S. families. H&H, China's fourth-biggest and the world's tenth-largest infant formula supplier, has joined European rivals in stepping up shipments to address the shortage, according to Chief Strategy & Operations Officer Akash Bedi. | By Richa Naidu LONDON, June 4 (Reuters) - Health and Happiness (H&H) International Holdings Ltd is working closely with the U.S. Food and Drug Administration (FDA) to gain approval to send more infant formula supplies to the United States, a top executive said. Top manufacturer Abbott Laboratories in February recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent baby food shortages in recent history for U.S. families. The maker of infant formula Biostime is "urgently working to provide assistance and is in the process of shipping infant formula from France and Australia to the U.S. to respond to the crisis," Bedi said in an emailed statement. | By Richa Naidu LONDON, June 4 (Reuters) - Health and Happiness (H&H) International Holdings Ltd is working closely with the U.S. Food and Drug Administration (FDA) to gain approval to send more infant formula supplies to the United States, a top executive said. H&H, China's fourth-biggest and the world's tenth-largest infant formula supplier, has joined European rivals in stepping up shipments to address the shortage, according to Chief Strategy & Operations Officer Akash Bedi. The maker of infant formula Biostime is "urgently working to provide assistance and is in the process of shipping infant formula from France and Australia to the U.S. to respond to the crisis," Bedi said in an emailed statement. | By Richa Naidu LONDON, June 4 (Reuters) - Health and Happiness (H&H) International Holdings Ltd is working closely with the U.S. Food and Drug Administration (FDA) to gain approval to send more infant formula supplies to the United States, a top executive said. Top manufacturer Abbott Laboratories in February recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent baby food shortages in recent history for U.S. families. H&H, China's fourth-biggest and the world's tenth-largest infant formula supplier, has joined European rivals in stepping up shipments to address the shortage, according to Chief Strategy & Operations Officer Akash Bedi. |
31602.0 | 2022-06-03 00:00:00 UTC | Abbott (ABT) Stock Moves -0.8%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-0.8%3A-what-you-should-know | nan | nan | In the latest trading session, Abbott (ABT) closed at $116.57, marking a -0.8% move from the previous day. This change was narrower than the S&P 500's 1.64% loss on the day. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 3.98% in the past month. In that same time, the Medical sector gained 0.06%, while the S&P 500 gained 0.73%.
Abbott will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.11, down 5.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.34 billion, up 1.1% from the prior-year quarter.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $41.62 billion. These results would represent year-over-year changes of -7.49% and -3.38%, respectively.
Any recent changes to analyst estimates for Abbott should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. Abbott is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Abbott currently has a Forward P/E ratio of 24.39. This represents a premium compared to its industry's average Forward P/E of 22.99.
It is also worth noting that ABT currently has a PEG ratio of 3.11. 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. ABT's industry had an average PEG ratio of 1.79 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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. | In the latest trading session, Abbott (ABT) closed at $116.57, marking a -0.8% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $41.62 billion. It is also worth noting that ABT currently has a PEG ratio of 3.11. | In the latest trading session, Abbott (ABT) closed at $116.57, marking a -0.8% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $41.62 billion. It is also worth noting that ABT currently has a PEG ratio of 3.11. | ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $41.62 billion. In the latest trading session, Abbott (ABT) closed at $116.57, marking a -0.8% move from the previous day. It is also worth noting that ABT currently has a PEG ratio of 3.11. | In the latest trading session, Abbott (ABT) closed at $116.57, marking a -0.8% move from the previous day. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $41.62 billion. It is also worth noting that ABT currently has a PEG ratio of 3.11. |
31603.0 | 2022-06-03 00:00:00 UTC | Cardiovascular Systems (CSII) Up 0.9% Since Last Earnings Report: Can It Continue? | ABT | https://www.nasdaq.com/articles/cardiovascular-systems-csii-up-0.9-since-last-earnings-report%3A-can-it-continue | nan | nan | A month has gone by since the last earnings report for Cardiovascular Systems (CSII). Shares have added about 0.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cardiovascular Systems Q3 Earnings Top Estimates
Cardiovascular Systems reported a loss of 25 cents per share for third-quarter fiscal 2022, compared to the loss of 15 cents in the prior-year period. The reported loss was narrower than the Zacks Consensus Estimate of a loss of 28 cents.
Net Sales
Cardiovascular Systems’ revenues of $56.2 million dropped 11.1% year over year. The top line missed the Zacks Consensus Estimate by 2%.
Segment Details
In the quarter under review, worldwide coronary revenues fell 7% to $18.9 million sequentially.
In the United States, coronary revenues declined 12% year over year. Outside the United States, coronary revenues rose 17% year over year to $4.2 million, led by continued strength in Japan and Europe.
Worldwide peripheral revenues plunged 4% year over year to $37.4 million. In the United States, peripheral revenues contracted 12% year over year.
Margins
Gross margin in the reported quarter was 73.7%, down 416 basis points (bps) year over year on a 5.5% rise in the cost of goods sold.
Selling, general and administrative expenses rose 0.6% to $41.7 million. Research and development expenses contracted 31.2% to $9.1 million.
Adjusted operating expenses fell 7.1% to $50.7 million. Adjusted operating loss in the reported quarter was $9.3 million compared with the adjusted operating loss of $5.3 million in the year-ago period.
Financial Position
The company exited the third quarter of fiscal 2022 with cash and cash equivalents of $66.9 million compared with $71.1 million at the end of the fiscal second quarter.
2022 Guidance
Cardiovascular Systems’ management continues to forecast a gradual improvement in revenues throughout the fiscal fourth quarter. However, the pace of this recovery is slower than anticipated. As a result, Cardiovascular Systems now expects revenue for fiscal year 2022 to be at the low end of the previously shared range.
Revenues are expected in the band of $235 million to $245 million. TheZacks Consensus Estimate for the same is currently pegged at $237.1 million.
The company expects net loss in the range of 15% to 16% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 98 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 15.36% due to these changes.
VGM Scores
Currently, Cardiovascular Systems has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cardiovascular Systems belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT), has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Abbott reported revenues of $11.9 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $1.73 for the same period compares with $1.32 a year ago.
For the current quarter, Abbott is expected to post earnings of $1.11 per share, indicating a change of -5.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B.
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
Cardiovascular Systems, Inc. (CSII): Free Stock Analysis Report
Abbott Laboratories (ABT): 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. | Another stock from the same industry, Abbott (ABT), has gained 4% over the past month. 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 its most recent earnings report in order to get a better handle on the important catalysts. | Another stock from the same industry, Abbott (ABT), has gained 4% over the past month. Abbott Laboratories (ABT): Free Stock Analysis Report Cardiovascular Systems Q3 Earnings Top Estimates Cardiovascular Systems reported a loss of 25 cents per share for third-quarter fiscal 2022, compared to the loss of 15 cents in the prior-year period. | Another stock from the same industry, Abbott (ABT), has gained 4% over the past month. Abbott Laboratories (ABT): Free Stock Analysis Report Cardiovascular Systems Q3 Earnings Top Estimates Cardiovascular Systems reported a loss of 25 cents per share for third-quarter fiscal 2022, compared to the loss of 15 cents in the prior-year period. | Another stock from the same industry, Abbott (ABT), has gained 4% over the past month. Abbott Laboratories (ABT): Free Stock Analysis Report A month has gone by since the last earnings report for Cardiovascular Systems (CSII). |
31604.0 | 2022-06-03 00:00:00 UTC | 2 Dividend Kings to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/2-dividend-kings-to-buy-and-hold-forever | nan | nan | Dividend stocks aren't just for investors looking for a reliable passive income stream. Companies that have a habit of rewarding their shareholders with increasing payouts often have solid businesses that generate growing revenue and profits. That's probably one reason why dividend stocks have historically outperformed their non-dividend-paying counterparts.
And in the universe of dividend companies, the so-called Dividend Kings -- companies that have raised their payouts for at least 50 consecutive years -- reign supreme. Let's look at two Dividend Kings worth buying now and holding onto forever: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT).
JNJ Total Return Level data by YCharts
1. Johnson & Johnson
Johnson & Johnson has been a leader in the pharmaceutical industry for several decades. The company markets drugs in different therapeutic areas, including oncology, immunology, neuroscience, and infectious diseases. J&J's largest therapeutic areas by revenue are oncology and immunology. These two fields are also the biggest and the fastest-growing in the pharmaceutical industry.
Spending on oncology medicines is expected to expand at a compound annual growth rate (CAGR) of 9% through 2025; immunology is expected to record a 12% CAGR in the same period. No other drug category is forecast to rise at a CAGR of more than 5%. Johnson & Johnson has established leadership in these two fast-growing areas in the past thanks to cancer drugs such as Darzalex and Imbruvica, and immunosuppressants such as Stelara and Tremfya. Three of these medicines are still growing their sales.
Image source: Getty Images.
In the first quarter, Stelara's revenue increased by 6.5% year over year to $2.3 billion, while Tremfya's sales jumped by 41.3% to $590 million. Meanwhile, Darzalex's sales increased by 36% to $1.9 billion; however, Imbruvica's revenue came in at roughly $1 billion, 7.7% lower than the year-ago period as a result of heightened competition. For the period, Johnson & Johnson's total sales grew by 5% year over year to $23.4 billion.
The good news is that Johnson & Johnson has a rich pipeline. And of the company's 94 ongoing clinical trials, 58 are either in oncology or immunology. Beyond its pharmaceutical segment, Johnson & Johnson's medical devices unit also seems to have a bright future, thanks in part to its robotic-assisted surgery (RAS) product, Ottava. The RAS market remains severely underpenetrated. Only 3% of surgeries worldwide are performed using robot assistance.
Although there are strong competitors in this market, Johnson & Johnson could profit from its growth in the coming years. It is worth noting that J&J is shedding its consumer health business, which is home to famous over-the-counter brands such as Neutrogena, Tylenol, Benadryl, and more. The company will complete this transaction by the end of the year.
The move should help Johnson & Johnson's top-line growth rate increase (consumer health is the least impressive of its segments in this regard) and decrease exposure to lawsuits related to products in this unit. J&J's business will remain solid, and with 59 consecutive years of dividend increases under its belt, we can be sure that this healthcare giant will continue rewarding its shareholders for many years to come.
2. Abbott Laboratories
Abbott Laboratories is a medical devices specialist with dozens of products. It is also a veteran of the healthcare industry, having proven over the past few decades that it has what it takes to navigate the regulatory hoops required to be successful in this sector. Although Abbott is best-known for its medical devices business, it operates three other segments: Diagnostics, established pharmaceuticals, and nutrition.
Abbott was able to keep its revenue and earnings afloat amid the worst of the COVID-19 pandemic and as its medical devices unit was struggling. The company successfully developed and marketed several coronavirus diagnostic tests. That's one of the benefits of having a diversified business. Financial results continue to be good for Abbott Laboratories. In the first quarter, the company's sales jumped by 13.8% year over year to $11.9 billion.
Meanwhile, Abbott's adjusted earnings per share jumped by 31.1% year over year to $1.73.
One major area of growth for the company is diabetes care -- thanks to its continuous glucose monitoring (CGM) system, the FreeStyle Libre. CGM devices allow diabetes patients to keep track of their blood glucose levels continuously throughout the day. The adoption of this technology continues to propel sales of the FreeStyle Libre higher. In the first quarter, Abbott's revenue from this device came in at about $1 billion, 20.4% higher than the year-ago period.
The FreeStyle Libre has gained about one million new users in the past year and currently boasts roughly four million users worldwide. With a rising population of diabetes patients, the need for innovative devices like the FreeStyle Libre will only rise in the coming years. Abbott does have other growth avenues, too, including its MitraClip, a leading device for the treatment of mitral regurgitation.
Abbott Laboratories is new to the club of Dividend Kings; it has raised its dividends for 50 consecutive years. The company is well-positioned to continue growing its revenue, profits, and payouts 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. | Let's look at two Dividend Kings worth buying now and holding onto forever: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). It is worth noting that J&J is shedding its consumer health business, which is home to famous over-the-counter brands such as Neutrogena, Tylenol, Benadryl, and more. It is also a veteran of the healthcare industry, having proven over the past few decades that it has what it takes to navigate the regulatory hoops required to be successful in this sector. | Let's look at two Dividend Kings worth buying now and holding onto forever: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). The company markets drugs in different therapeutic areas, including oncology, immunology, neuroscience, and infectious diseases. In the first quarter, Stelara's revenue increased by 6.5% year over year to $2.3 billion, while Tremfya's sales jumped by 41.3% to $590 million. | Let's look at two Dividend Kings worth buying now and holding onto forever: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Johnson & Johnson Johnson & Johnson has been a leader in the pharmaceutical industry for several decades. For the period, Johnson & Johnson's total sales grew by 5% year over year to $23.4 billion. | Let's look at two Dividend Kings worth buying now and holding onto forever: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Johnson & Johnson Johnson & Johnson has been a leader in the pharmaceutical industry for several decades. For the period, Johnson & Johnson's total sales grew by 5% year over year to $23.4 billion. |
31605.0 | 2022-06-02 00:00:00 UTC | Federal investigators to review FDA response to baby formula recall | ABT | https://www.nasdaq.com/articles/federal-investigators-to-review-fda-response-to-baby-formula-recall | nan | nan | Adds data on baby formula shortage, background, related links
June 2 (Reuters) - Federal investigators have launched a review into whether the U.S. Food and Drug Administration properly inspected Abbott Laboratories' ABT.N Michigan plant and how the agency oversaw the baby formula recall that led to severe U.S. shortages.
The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General (OIG), according to a notice posted on its website on Thursday.
OIG will investigate the FDA's actions leading up to the recall in February.
"We will determine whether FDA followed the inspections and recall process for infant formula in accordance with federal requirements," OIG said.
Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant.
The FDA started its inspection of the plant in late January following reports of bacterial infections in babies potentially linked to Abbott's formula.
Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies.
U.S President Joe Biden has since invoked the Cold War-era Defense Production Act to shore up supplies, and manufacturers have been importing baby formula.
Roughly 73% of baby products are out of stock nationwide as of May 22, according to data firm Datasembly.
The FDA said on May 19 it expects the plant to reopen within one or two weeks.
EXPLAINER-What happened with Abbott baby formula that worsened a U.S. shortage?
TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies
FACTBOX-Global baby formula makers send products to restock U.S. shelves
(Reporting by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds data on baby formula shortage, background, related links June 2 (Reuters) - Federal investigators have launched a review into whether the U.S. Food and Drug Administration properly inspected Abbott Laboratories' ABT.N Michigan plant and how the agency oversaw the baby formula recall that led to severe U.S. shortages. The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General (OIG), according to a notice posted on its website on Thursday. Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant. | Adds data on baby formula shortage, background, related links June 2 (Reuters) - Federal investigators have launched a review into whether the U.S. Food and Drug Administration properly inspected Abbott Laboratories' ABT.N Michigan plant and how the agency oversaw the baby formula recall that led to severe U.S. shortages. Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies. TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies FACTBOX-Global baby formula makers send products to restock U.S. shelves (Reporting by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel) ((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds data on baby formula shortage, background, related links June 2 (Reuters) - Federal investigators have launched a review into whether the U.S. Food and Drug Administration properly inspected Abbott Laboratories' ABT.N Michigan plant and how the agency oversaw the baby formula recall that led to severe U.S. shortages. Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies. TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies FACTBOX-Global baby formula makers send products to restock U.S. shelves (Reporting by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel) ((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds data on baby formula shortage, background, related links June 2 (Reuters) - Federal investigators have launched a review into whether the U.S. Food and Drug Administration properly inspected Abbott Laboratories' ABT.N Michigan plant and how the agency oversaw the baby formula recall that led to severe U.S. shortages. The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General (OIG), according to a notice posted on its website on Thursday. "We will determine whether FDA followed the inspections and recall process for infant formula in accordance with federal requirements," OIG said. |
31606.0 | 2022-06-02 00:00:00 UTC | Federal agency to review FDA response to baby formula recall | ABT | https://www.nasdaq.com/articles/federal-agency-to-review-fda-response-to-baby-formula-recall | nan | nan | June 2 (Reuters) - A federal agency will start a review if the U.S. Food and Drug Administration (FDA) properly conducted its inspection of Abbott Laboratories' ABT.N Michigan plant and oversaw baby formula recalls that led to severe shortages in the United States.
The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General, according to a notice posted on its website on Thursday.
Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant.
The FDA started its inspection of the plant in late January following reports of bacterial infections in babies potentially linked to Abbott's formula.
Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies.
The FDA said on May 19 it expects the plant to re-open within one or two weeks.
EXPLAINER-What happened with Abbott baby formula that worsened a U.S. shortage?
TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies
(Reporting by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta)
((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manaswrites15))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | June 2 (Reuters) - A federal agency will start a review if the U.S. Food and Drug Administration (FDA) properly conducted its inspection of Abbott Laboratories' ABT.N Michigan plant and oversaw baby formula recalls that led to severe shortages in the United States. The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General, according to a notice posted on its website on Thursday. Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant. | June 2 (Reuters) - A federal agency will start a review if the U.S. Food and Drug Administration (FDA) properly conducted its inspection of Abbott Laboratories' ABT.N Michigan plant and oversaw baby formula recalls that led to severe shortages in the United States. Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant. Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies. | June 2 (Reuters) - A federal agency will start a review if the U.S. Food and Drug Administration (FDA) properly conducted its inspection of Abbott Laboratories' ABT.N Michigan plant and oversaw baby formula recalls that led to severe shortages in the United States. The FDA started its inspection of the plant in late January following reports of bacterial infections in babies potentially linked to Abbott's formula. Abbott subsequently closed the plant and recalled baby formula made there, deepening a nationwide shortage that has left parents scrambling to feed their babies. | June 2 (Reuters) - A federal agency will start a review if the U.S. Food and Drug Administration (FDA) properly conducted its inspection of Abbott Laboratories' ABT.N Michigan plant and oversaw baby formula recalls that led to severe shortages in the United States. The review, which is expected to be completed in 2023, will be conducted by the U.S. Department of Health and Human Services' Office of Inspector General, according to a notice posted on its website on Thursday. Lawmakers grilled FDA officials last week over what they saw as a lack of urgency in the agency's response to complaints about possible baby formula contamination at the Michigan plant. |
31607.0 | 2022-06-01 00:00:00 UTC | Abbott (ABT) Receives FDA Nod for FreeStyle Libre 3 System | ABT | https://www.nasdaq.com/articles/abbott-abt-receives-fda-nod-for-freestyle-libre-3-system | nan | nan | Abbott Laboratories’ ABT next-generation FreeStyle Libre 3 system was recently approved by the FDA for diabetes patients aged four years and older. The FreeStyle Libre 3 system will be priced similarly to prior generations, allowing more diabetes patients to benefit from the next-generation technology.
The next-generation continuous glucose monitor (CGM) has been cleared for use with the FreeStyle Libre 3 iOS and Android mobile apps. This will allow users to view their glucose levels in real-time, track their glucose history and trends, and set up optional alarms and notifications to be alerted in times of important medical occurrences such as hypoglycemia.
The latest approval is likely to fortify Abbott's diabetes care business.
Few Words on the FreeStyle Libre 3
Abbott’s FreeStyle Libre 3 system has demonstrated the greatest accuracy, with an overall mean absolute relative difference (MARD) of 7.9%. It is the most accurate 14-day CGM with readings sent directly to a smartphone every minute. It is also the first CGM to achieve a sub-8% MARD, the standard way to measure continuous glucose accuracy. Per management, with the world's smallest and thinnest sensor and most accurate 14-day continuous glucose monitoring system, the FreeStyle Libre 3 system will enable people living with diabetes to manage their health minute-by-minute.
Image Source: Zacks Investment Research
The FreeStyle Libre 3 system is known to have the smallest and thinnest CGM sensor globally. With a one-piece applicator, the sensor does not present any complications when applying. It offers the strongest Bluetooth integration, compared to other CGMs, with a range of up to 33 feet. The FreeStyle Libre 3 sensor is expected to be available at participating pharmacies later in 2022.
More on the News
The FreeStyle Libre portfolio is the most extensively used GGM system in the United States and worldwide. The company has gained partial or full reimbursement for the FreeStyle Libre system in more than 40 countries, including Canada, France, Germany, Japan, the U.K. and the United States.
The mobile application for the FreeStyle Libre 3 integrates with the FreeStyle Libre digital ecosystem, including LibreView and LibreLinkUp. This facilitates caregivers and healthcare professionals to remotely monitor loved ones and patients.
Industry Prospects
Per a report published in Allied Market research, the global continuous glucose monitoring systems’ market size is expected to see a CAGR of 22% by 2027. Factors, including a surge in the geriatric population and the increasing prevalence of diabetes, are expected to fuel market growth.
Given the market potential, the FDA approval for FreeStyle Libre 3 system comes at an opportune time.
Other Notable Developments
In May 2022, Abbott gained FDA authorizations for the Alinity m STI Assay which detects and differentiates between four common sexually transmitted infections (STI) at the same time. This multiplex test runs on the Alinity m system, Abbott’s most advanced high-volume laboratory molecular instrument. It will help address the rising STI rates and enable healthcare providers to save time, increase efficiency and better serve patients.
In April 2022, the company noted the U.S. availability of its Amplatzer Steerable Delivery Sheath, which is used in conjunction with the Amplatzer Amulet Left Atrial Appendage (LAA) Occluder to treat atrial fibrillation (AFib) patients at risk of ischemic stroke. The Amplatzer Steerable Delivery Sheath is the newest addition to Abbott's comprehensive structural heart portfolio. It illustrates the company's commitment to innovating across heart conditions, including LAA occlusion (closure).
Share Price Performance
The stock has outperformed its industry over the past year. It has gained 11% against the industry’s 22.4% fall.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Medpace Holdings, Inc. MEDP and Masimo Corporation MASI.
AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, 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 gained 4.4% against the industry’s 64.1% fall.
Medpace has a historical growth rate of 27.3%. Medpace’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%. It currently has a Zacks Rank #2 (Buy).
Medpace has outperformed its industry in the past year. MEDP has declined 15% compared with the industry’s 64.1% fall.
Masimo has a historical growth rate of 15.1%. Masimo’s earnings beat estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2.
Masimo has underperformed the industry in the past year. MASI has declined 34.1% compared with a 13.9% fall of the industry.
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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 next-generation FreeStyle Libre 3 system was recently approved by the FDA for diabetes patients aged four years and older. Abbott Laboratories (ABT): Free Stock Analysis Report The FreeStyle Libre 3 system will be priced similarly to prior generations, allowing more diabetes patients to benefit from the next-generation technology. | Abbott Laboratories’ ABT next-generation FreeStyle Libre 3 system was recently approved by the FDA for diabetes patients aged four years and older. Abbott Laboratories (ABT): Free Stock Analysis Report Per management, with the world's smallest and thinnest sensor and most accurate 14-day continuous glucose monitoring system, the FreeStyle Libre 3 system will enable people living with diabetes to manage their health minute-by-minute. | Abbott Laboratories’ ABT next-generation FreeStyle Libre 3 system was recently approved by the FDA for diabetes patients aged four years and older. Abbott Laboratories (ABT): Free Stock Analysis Report Few Words on the FreeStyle Libre 3 Abbott’s FreeStyle Libre 3 system has demonstrated the greatest accuracy, with an overall mean absolute relative difference (MARD) of 7.9%. | Abbott Laboratories’ ABT next-generation FreeStyle Libre 3 system was recently approved by the FDA for diabetes patients aged four years and older. Abbott Laboratories (ABT): Free Stock Analysis Report The mobile application for the FreeStyle Libre 3 integrates with the FreeStyle Libre digital ecosystem, including LibreView and LibreLinkUp. |
31608.0 | 2022-06-01 00:00:00 UTC | Biden, baby formula cos to meet on efforts to ease shortage | ABT | https://www.nasdaq.com/articles/biden-baby-formula-cos-to-meet-on-efforts-to-ease-shortage | nan | nan | By Jarrett Renshaw
June 1 (Reuters) - U.S. President Joe Biden will meet with major infant formula manufacturers on Wednesday as his administration presses ahead with efforts to boost imported supplies to help ease a nationwide shortage.
The meeting comes multiple global suppliers are seeking U.S. approval to ship in the critical infant food as Biden's administration seeks to accelerate what it has dubbed Operation Fly Formula to help fill store shelves.
U.S. parents have struggled to find baby formula in recent months as supplies suffered after a February recall of some formulas by one of the nation's main manufacturers, Abbott Laboratories ABT.N, coupled with other pandemic-related supply chain issues.
The Biden administration has relaxed its import policy and invoked the Defense Production Act to help increase available U.S. supplies, which is still expected to take weeks. It has also said it could use federal resources to help transport supplies to retailers.
Two million cans of formula have been sent from the UK, and Australian manufacturers are also preparing to send in more product.
The companies attending the 2:30 p.m. (1830 GMT) virtual meeting to provide an update include ByHeart, Bubs Australia BUB.AX, Reckitt Benckiser Group RKT.L, Perrigo Company PRGO.N and Nestle SA's NESN.S Gerber, the White House said.
Many U.S. parents rely on baby formula. Fewer than half the babies born in the United States were exclusively breast-fed through their first three months, according to the Centers for Disease Control and Prevention's 2020 Breastfeeding Report Card.
U.S. lawmakers have criticized the Food and Drug Administration for not acting promptly to address the problems at Abbott's Michigan plant, which is set to reopen June 4.
The agency has said the company, which has the largest U.S. market share for infant formula, did not have a contingency plan to produce its specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders.
FACTBOX-Global baby formula makers send products to restock U.S. shelves
(Reporting by Jarrett Renshaw; Additional writing by Susan Heavey; Editing by Leslie Adler and Chizu Nomiyama)
((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. parents have struggled to find baby formula in recent months as supplies suffered after a February recall of some formulas by one of the nation's main manufacturers, Abbott Laboratories ABT.N, coupled with other pandemic-related supply chain issues. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden will meet with major infant formula manufacturers on Wednesday as his administration presses ahead with efforts to boost imported supplies to help ease a nationwide shortage. Fewer than half the babies born in the United States were exclusively breast-fed through their first three months, according to the Centers for Disease Control and Prevention's 2020 Breastfeeding Report Card. | U.S. parents have struggled to find baby formula in recent months as supplies suffered after a February recall of some formulas by one of the nation's main manufacturers, Abbott Laboratories ABT.N, coupled with other pandemic-related supply chain issues. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden will meet with major infant formula manufacturers on Wednesday as his administration presses ahead with efforts to boost imported supplies to help ease a nationwide shortage. The meeting comes multiple global suppliers are seeking U.S. approval to ship in the critical infant food as Biden's administration seeks to accelerate what it has dubbed Operation Fly Formula to help fill store shelves. | U.S. parents have struggled to find baby formula in recent months as supplies suffered after a February recall of some formulas by one of the nation's main manufacturers, Abbott Laboratories ABT.N, coupled with other pandemic-related supply chain issues. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden will meet with major infant formula manufacturers on Wednesday as his administration presses ahead with efforts to boost imported supplies to help ease a nationwide shortage. FACTBOX-Global baby formula makers send products to restock U.S. shelves (Reporting by Jarrett Renshaw; Additional writing by Susan Heavey; Editing by Leslie Adler and Chizu Nomiyama) ((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. parents have struggled to find baby formula in recent months as supplies suffered after a February recall of some formulas by one of the nation's main manufacturers, Abbott Laboratories ABT.N, coupled with other pandemic-related supply chain issues. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden will meet with major infant formula manufacturers on Wednesday as his administration presses ahead with efforts to boost imported supplies to help ease a nationwide shortage. The meeting comes multiple global suppliers are seeking U.S. approval to ship in the critical infant food as Biden's administration seeks to accelerate what it has dubbed Operation Fly Formula to help fill store shelves. |
31609.0 | 2022-06-01 00:00:00 UTC | Biden to get supply update from infant formula producers | ABT | https://www.nasdaq.com/articles/biden-to-get-supply-update-from-infant-formula-producers | nan | nan | By Jarrett Renshaw
June 1 (Reuters) - U.S. President Joe Biden on Wednesday will convene a virtual roundtable with producers of infant formula to get updates on the industry's efforts to ramp up supplies to address a national shortage.
The U.S. has been dealing with a baby formula shortage due to a February recall at Abbott Laboratories ABT.N and pandemic-related supply-chain issues, prompting Biden to invoke the Defense Production Act to ensure manufacturers have the necessary supplies for baby formula production.
Global companies that make baby formula have delivered products to the U.S. after health regulators relaxed import policies to address the shortage.
The manufacturers at the roundtable include ByHeart, Bubs Australia BUB.AX, Reckitt Benckiser Group RKT.L, Perrigo Company PRGO.N and Nestle SA's NESN.S Gerber, according to the White House.
Many U.S. parents rely on baby formula. Fewer than half the babies born in the United States were exclusively breast-fed through their first three months, according to the Centers for Disease Control and Prevention's 2020 Breastfeeding Report Card.
(Reporting by Jarrett Renshaw; Editing by Leslie Adler)
((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The U.S. has been dealing with a baby formula shortage due to a February recall at Abbott Laboratories ABT.N and pandemic-related supply-chain issues, prompting Biden to invoke the Defense Production Act to ensure manufacturers have the necessary supplies for baby formula production. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden on Wednesday will convene a virtual roundtable with producers of infant formula to get updates on the industry's efforts to ramp up supplies to address a national shortage. The manufacturers at the roundtable include ByHeart, Bubs Australia BUB.AX, Reckitt Benckiser Group RKT.L, Perrigo Company PRGO.N and Nestle SA's NESN.S Gerber, according to the White House. | The U.S. has been dealing with a baby formula shortage due to a February recall at Abbott Laboratories ABT.N and pandemic-related supply-chain issues, prompting Biden to invoke the Defense Production Act to ensure manufacturers have the necessary supplies for baby formula production. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden on Wednesday will convene a virtual roundtable with producers of infant formula to get updates on the industry's efforts to ramp up supplies to address a national shortage. (Reporting by Jarrett Renshaw; Editing by Leslie Adler) ((jarrett.renshaw@thomsonreuters.com; (646) 223-6193;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The U.S. has been dealing with a baby formula shortage due to a February recall at Abbott Laboratories ABT.N and pandemic-related supply-chain issues, prompting Biden to invoke the Defense Production Act to ensure manufacturers have the necessary supplies for baby formula production. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden on Wednesday will convene a virtual roundtable with producers of infant formula to get updates on the industry's efforts to ramp up supplies to address a national shortage. Global companies that make baby formula have delivered products to the U.S. after health regulators relaxed import policies to address the shortage. | The U.S. has been dealing with a baby formula shortage due to a February recall at Abbott Laboratories ABT.N and pandemic-related supply-chain issues, prompting Biden to invoke the Defense Production Act to ensure manufacturers have the necessary supplies for baby formula production. By Jarrett Renshaw June 1 (Reuters) - U.S. President Joe Biden on Wednesday will convene a virtual roundtable with producers of infant formula to get updates on the industry's efforts to ramp up supplies to address a national shortage. Global companies that make baby formula have delivered products to the U.S. after health regulators relaxed import policies to address the shortage. |
31610.0 | 2022-06-01 00:00:00 UTC | Australia in talks with U.S. to supply infant formula | ABT | https://www.nasdaq.com/articles/australia-in-talks-with-u.s.-to-supply-infant-formula-0 | nan | nan | Adds background, New Zealand government spokesperson's quote
June 1 (Reuters) - Australia is in talks with the United States to supply baby food, an Australian government spokesperson said on Wednesday, after the apex U.S. health regulator relaxed its import policy to address a nationwide shortage.
Makers of baby food globally are exploring opportunities of supplying to the U.S. after the easing of import norms. Two million cans of formula from the UK are headed to American shores, while Bubs Australia BUB.AX struck a deal with the U.S. Food and Drug Administration (FDA) last week to supply 1.25 million cans.
Several dairy firms in Australia and New Zealand, including the world's biggest dairy exporter Fonterra FCG.NZ, were also in similar discussions with the FDA, Reuters reported on Monday.
"The Australian government will continue to work with the Biden Administration to confirm regulatory arrangements and facilitate exports of infant formula," a spokesperson for Australia's Department of Agriculture, Water and the Environment, said in an emailed statement.
"Australian Government agencies have been actively engaging with the Australian infant formula industry to help secure supply of infant formula to the U.S."
The agency didn't provide additional details on the extent of talks with the U.S. government.
Meanwhile, a spokesperson for New Zealand's Ministry of Primary Industry said the country was "in a good position" to supply to the U.S. market and help them tackle the shortage.
He added that the decision to ship baby food to the U.S. rested exclusively with the manufacturers.
(Reporting by Harish Sridharan and Rushil Dutta in Bengaluru; Editing by Christopher Cushing and Rashmi Aich)
((Harish.Sridharan@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background, New Zealand government spokesperson's quote June 1 (Reuters) - Australia is in talks with the United States to supply baby food, an Australian government spokesperson said on Wednesday, after the apex U.S. health regulator relaxed its import policy to address a nationwide shortage. "The Australian government will continue to work with the Biden Administration to confirm regulatory arrangements and facilitate exports of infant formula," a spokesperson for Australia's Department of Agriculture, Water and the Environment, said in an emailed statement. Meanwhile, a spokesperson for New Zealand's Ministry of Primary Industry said the country was "in a good position" to supply to the U.S. market and help them tackle the shortage. | Adds background, New Zealand government spokesperson's quote June 1 (Reuters) - Australia is in talks with the United States to supply baby food, an Australian government spokesperson said on Wednesday, after the apex U.S. health regulator relaxed its import policy to address a nationwide shortage. Two million cans of formula from the UK are headed to American shores, while Bubs Australia BUB.AX struck a deal with the U.S. Food and Drug Administration (FDA) last week to supply 1.25 million cans. "Australian Government agencies have been actively engaging with the Australian infant formula industry to help secure supply of infant formula to the U.S." The agency didn't provide additional details on the extent of talks with the U.S. government. | Adds background, New Zealand government spokesperson's quote June 1 (Reuters) - Australia is in talks with the United States to supply baby food, an Australian government spokesperson said on Wednesday, after the apex U.S. health regulator relaxed its import policy to address a nationwide shortage. Two million cans of formula from the UK are headed to American shores, while Bubs Australia BUB.AX struck a deal with the U.S. Food and Drug Administration (FDA) last week to supply 1.25 million cans. "Australian Government agencies have been actively engaging with the Australian infant formula industry to help secure supply of infant formula to the U.S." The agency didn't provide additional details on the extent of talks with the U.S. government. | Adds background, New Zealand government spokesperson's quote June 1 (Reuters) - Australia is in talks with the United States to supply baby food, an Australian government spokesperson said on Wednesday, after the apex U.S. health regulator relaxed its import policy to address a nationwide shortage. Makers of baby food globally are exploring opportunities of supplying to the U.S. after the easing of import norms. "Australian Government agencies have been actively engaging with the Australian infant formula industry to help secure supply of infant formula to the U.S." The agency didn't provide additional details on the extent of talks with the U.S. government. |
31611.0 | 2022-05-31 00:00:00 UTC | Here's A Better Pick Over Abbott Stock | ABT | https://www.nasdaq.com/articles/heres-a-better-pick-over-abbott-stock | nan | nan | We think that Teva stock (NYSE: TEVA) currently is a better pick compared to its industry peer, Abbott stock (NYSE: ABT), given its comparatively lower valuation and better prospects. TEVA stock is trading at 0.6x trailing revenues compared to 4.4x for Abbott. Even if we were to look at the P/EBIT ratio, ABT stock appears to be more expensive, with a 20.7x P/EBIT ratio, compared to 16.6x for TEVA stock. Although both the companies saw a rise in revenue in the recent past, Abbott’s growth has been better, primarily due to its Covid-19 testing.
If we look at stock returns, Abbott’s -1% return is better than Teva’s -13% change over the last twelve months. This compares with a -3% change in the broader S&P 500 index. While Teva’s stock has been weighed down due to concerns around the pricing environment and liabilities arising from opioid claims, Abbott has seen strong demand for its diagnostics business during the pandemic. While both the companies are likely to see continued top-line expansion, Teva is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that TEVA stock will offer better returns than ABT stock in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Abbott vs. Teva: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Abbott’s Revenue Growth Has Been Stronger
Abbott’s revenue growth of 21.2% over the last twelve months is higher than 3.7% for Teva.
Looking at a longer time frame, Abbott’s sales grew at an average growth rate of 12.4% to $43.1 billion in 2021, compared to $30.6 billion in 2018, while Teva saw its revenue decline at an average rate of 4.5% to $15.9 billion in 2021, compared to $18.3 billion in 2018.
Abbott’s sales over the recent years were 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 2022.
That said, the company’s medical devices and established pharmaceuticals sales will likely see steady growth over the coming years.
Teva’s sales have been impacted by increased competition, pricing pressure, and unfavorable foreign exchange. The company sees a rapid decline in Copaxone’s sales. Copaxone garnered only $577 million in 2021 sales, compared to $1.8 billion in 2018, primarily due to generic competition.
However, as we look forward, Teva is expected to benefit from its biosimilar for Bristol Myers Squibb’sRevlimid.
Our Abbott Revenue and Teva Revenue dashboards provide more insight into the companies’ sales.
Looking forward, both the companies will likely see similar revenue growth 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 4.3% for Abbott, compared to a 4.5% CAGR for Teva, 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.
2. Abbott Is More Profitable, And It Offers Lower Risk
Abbott’s operating margin of 21.2% over the last twelve-month period is better than 3.7% for Teva.
This compares with 16.1% and -2.6% figures seen in 2019, before the pandemic, respectively.
Abbott’s free cash flow margin of 21.7% is better than 7.4% for Teva.
Our Abbott Operating Income and Teva Operating Income dashboards have more details.
Looking at financial risk, Teva has a significant debt of $23 billion, resulting in debt as a percentage of equity of over 200%, much higher than just 8% for Abbott, while its 5% cash as a percentage of assets is lower than the 11% for Abbott, implying that Abbott has a better debt position and it has more cash cushion.
3. The Net of It All
We see that Abbott has demonstrated better revenue growth, is more profitable, and has better debt and cash positions. On the other hand, Teva is available at a comparatively lower valuation.
However, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Teva is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Abbott and Teva over the next three years and points to an expected return of 20% for Teva over this period vs. a 12% expected return for ABT stock, implying that investors are better off buying TEVA over ABT, based on Trefis Machine Learning analysis – Abbott vs. Teva – which also provides more details on how we arrive at these numbers.
While TEVA stock may outperform ABT, 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 Medtronic vs. Masco.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return 1% -18% 199%
TEVA Return 4% 13% -75%
S&P 500 Return -2% -15% 81%
Trefis Multi-Strategy Portfolio -3% -19% 218%
[1] Month-to-date and year-to-date as of 5/27/2022
[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 think that Teva stock (NYSE: TEVA) currently is a better pick compared to its industry peer, Abbott stock (NYSE: ABT), given its comparatively lower valuation and better prospects. Even if we were to look at the P/EBIT ratio, ABT stock appears to be more expensive, with a 20.7x P/EBIT ratio, compared to 16.6x for TEVA stock. There is more to the comparison, and in the sections below, we discuss why we believe that TEVA stock will offer better returns than ABT stock in the next three years. | The table below summarizes our revenue and return expectations for Abbott and Teva over the next three years and points to an expected return of 20% for Teva over this period vs. a 12% expected return for ABT stock, implying that investors are better off buying TEVA over ABT, based on Trefis Machine Learning analysis – Abbott vs. Teva – which also provides more details on how we arrive at these numbers. Total [2] ABT Return 1% -18% 199% TEVA Return 4% 13% -75% S&P 500 Return -2% -15% 81% Trefis Multi-Strategy Portfolio -3% -19% 218% [1] Month-to-date and year-to-date as of 5/27/2022 [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 that Teva stock (NYSE: TEVA) currently is a better pick compared to its industry peer, Abbott stock (NYSE: ABT), given its comparatively lower valuation and better prospects. | We think that Teva stock (NYSE: TEVA) currently is a better pick compared to its industry peer, Abbott stock (NYSE: ABT), given its comparatively lower valuation and better prospects. The table below summarizes our revenue and return expectations for Abbott and Teva over the next three years and points to an expected return of 20% for Teva over this period vs. a 12% expected return for ABT stock, implying that investors are better off buying TEVA over ABT, based on Trefis Machine Learning analysis – Abbott vs. Teva – which also provides more details on how we arrive at these numbers. Even if we were to look at the P/EBIT ratio, ABT stock appears to be more expensive, with a 20.7x P/EBIT ratio, compared to 16.6x for TEVA stock. | The table below summarizes our revenue and return expectations for Abbott and Teva over the next three years and points to an expected return of 20% for Teva over this period vs. a 12% expected return for ABT stock, implying that investors are better off buying TEVA over ABT, based on Trefis Machine Learning analysis – Abbott vs. Teva – which also provides more details on how we arrive at these numbers. We think that Teva stock (NYSE: TEVA) currently is a better pick compared to its industry peer, Abbott stock (NYSE: ABT), given its comparatively lower valuation and better prospects. Even if we were to look at the P/EBIT ratio, ABT stock appears to be more expensive, with a 20.7x P/EBIT ratio, compared to 16.6x for TEVA stock. |
31612.0 | 2022-05-31 00:00:00 UTC | Abbott Says FDA Oks FreeStyle Libre 3 System As Glucose Monitor For Diabetic Patients | ABT | https://www.nasdaq.com/articles/abbott-says-fda-oks-freestyle-libre-3-system-as-glucose-monitor-for-diabetic-patients | nan | nan | (RTTNews) - Abbott Laboratories (ABT) announced Tuesday that the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older living with diabetes.
The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor, with readings sent directly to a smartphone every minute. The system was cleared for use with the FreeStyle Libre 3 iOS and Android mobile apps.
Designed for access and affordability, the FreeStyle Libre 3 system will be available at the same price as previous versions, which is one-third the cost of other competing continuous glucose monitoring systems available today.
There is a vast and growing need for new innovations in diabetes care as there are now more than 133 million Americans living with diabetes or prediabetes (nearly half of the U.S. population), according to the American Diabetes Association.
The FreeStyle Libre 3 sensor will be available at participating pharmacies later this year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) announced Tuesday that the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older living with diabetes. The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor, with readings sent directly to a smartphone every minute. The system was cleared for use with the FreeStyle Libre 3 iOS and Android mobile apps. | (RTTNews) - Abbott Laboratories (ABT) announced Tuesday that the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older living with diabetes. The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor, with readings sent directly to a smartphone every minute. Designed for access and affordability, the FreeStyle Libre 3 system will be available at the same price as previous versions, which is one-third the cost of other competing continuous glucose monitoring systems available today. | (RTTNews) - Abbott Laboratories (ABT) announced Tuesday that the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older living with diabetes. Designed for access and affordability, the FreeStyle Libre 3 system will be available at the same price as previous versions, which is one-third the cost of other competing continuous glucose monitoring systems available today. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) announced Tuesday that the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older living with diabetes. The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor, with readings sent directly to a smartphone every minute. The system was cleared for use with the FreeStyle Libre 3 iOS and Android mobile apps. |
31613.0 | 2022-05-31 00:00:00 UTC | What Makes DexCom Stock A Better Pick Over This Insulin Pump Maker? | ABT | https://www.nasdaq.com/articles/what-makes-dexcom-stock-a-better-pick-over-this-insulin-pump-maker | nan | nan | We think that DexCom stock (NASDAQ: DXCM) is currently a better pick than Insulet stock (NASDAQ: PODD), given DexCom’s better prospects and comparatively lower valuation. DXCM stock trades at a P/S ratio of 11x, compared to 14x for PODD stock. We believe that this gap in the valuation of these two companies does not make sense, given that DexCom has demonstrated better revenue growth and profitability than Insulet. This doesn’t imply that Insulet isn’t a good pick. In fact, we find both stocks a good buying opportunity, as discussed below,
Looking at stock returns, Insulet’s -16% return is comparatively better than DexCom’s -21% change over the last twelve months. This compares with a -5% change in the broader S&P 500 index. Note that DexCom saw its stock fall 10% in the last five days after media reports of DexCom planning to acquire Insulet surfaced. While DexCom makes continuous glucose monitors, Insulet develops Insulin pumps that can be connected to CGMs. If the acquisition is successful, it will make DexCom a large player in overall diabetes management.
While both the companies are likely to see continued top-line expansion, DexCom is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe DXCM stock will offer better returns than PODD 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 DexCom vs. Insulet: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. DexCom’s Revenue Growth Has Been Stronger
Both companies posted sales growth over the last twelve months. Still, DexCom’s revenue growth of 26.9% is higher than 14.4% for Insulet.
Looking at a longer time frame, DexCom’s sales grew at an average growth rate of 33.6% to $2.4 billion in 2021, compared to $1.0 billion in 2018, while that of Insulet grew at 25.0% to $1.1 billion in 2021, compared to $0.6 billion in 2018.
Continued new customer additions are driving DexCom’s revenue growth over the recent quarters amid rising awareness of CGM devices.
DexCom is one of the few players, along with Abbott, which has secured the 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.
Market share gains for its Omnipod system have buoyed Insulet’s revenue growth. The aging population in the U.S. and its rising awareness about diabetes products have aided the demand for Insulet’s products.
Our DexCom Revenue and Insulet Revenue dashboards provide more insight into the companies’ sales.
Looking forward, both the companies are expected to see their revenue expand at a solid pace 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 20.8% for DexCom, compared to an 18.5% CAGR for Insulet, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies negatively impacted by Covid and for companies 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.
2. DexCom Is More Profitable, And It Has A Better Debt Position
DexCom’s operating margin of 13.7% over the last twelve-month period is much better than 4.4% for Insulet.
This compares with 13.4% and 1.8% figures seen in 2019, before the pandemic, respectively.
DexCom’s free cash flow margin of 18.9% is also better than -4.3% for Insulet.
Our DexCom Operating Income and Insulet Operating Income dashboards have more details.
Looking at financial risk, DexCom’s 7.0% debt as a percentage of equity is lower than 9.4% for Insulet, while its 14.2% cash as a percentage of assets is lower than 35.0% for the latter, implying that DexCom has a better debt position and Insulet has more cash cushion.
3. The Net of It All
We see that DexCom has demonstrated better revenue growth, is more profitable, and has a better debt position. On the other hand, Insulet is available at a comparatively lower valuation and has a higher cash cushion.
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.
The table below summarizes our revenue and return expectations for DexCom and Insulet over the next three years and points to an expected return of 98% for DexCom over this period vs. a 79% expected return for Insulet, based on Trefis Machine Learning analysis – DexCom vs. Insulet – which also provides more details on how we arrive at these numbers.
Although this implies that DXCM is a better pick over PODD, both appear to be very good investment opportunities at their current levels.
While both DXCM and PODD stock may see strong growth, 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 Medtronic vs. Masco.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DXCM Return -31% -48% 371%
PODD Return -7% -17% 488%
S&P 500 Return -4% -17% 78%
Trefis Multi-Strategy Portfolio -5% -21% 209%
[1] Month-to-date and year-to-date as of 5/26/2022
[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 DexCom vs. Insulet: Which Stock Is A Better Bet? Continued new customer additions are driving DexCom’s revenue growth over the recent quarters amid rising awareness of CGM devices. While both DXCM and PODD stock may see strong growth, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. | Note that we have different methodologies for companies negatively impacted by Covid and for companies not impacted or positively impacted by Covid while forecasting future revenues. The table below summarizes our revenue and return expectations for DexCom and Insulet over the next three years and points to an expected return of 98% for DexCom over this period vs. a 79% expected return for Insulet, based on Trefis Machine Learning analysis – DexCom vs. Insulet – which also provides more details on how we arrive at these numbers. Total [2] DXCM Return -31% -48% 371% PODD Return -7% -17% 488% S&P 500 Return -4% -17% 78% Trefis Multi-Strategy Portfolio -5% -21% 209% [1] Month-to-date and year-to-date as of 5/26/2022 [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 think that DexCom stock (NASDAQ: DXCM) is currently a better pick than Insulet stock (NASDAQ: PODD), given DexCom’s better prospects and comparatively lower valuation. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of DexCom vs. Insulet: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for DexCom and Insulet over the next three years and points to an expected return of 98% for DexCom over this period vs. a 79% expected return for Insulet, based on Trefis Machine Learning analysis – DexCom vs. Insulet – which also provides more details on how we arrive at these numbers. | We think that DexCom stock (NASDAQ: DXCM) is currently a better pick than Insulet stock (NASDAQ: PODD), given DexCom’s better prospects and comparatively lower valuation. In fact, we find both stocks a good buying opportunity, as discussed below, Looking at stock returns, Insulet’s -16% return is comparatively better than DexCom’s -21% change over the last twelve months. The table below summarizes our revenue and return expectations for DexCom and Insulet over the next three years and points to an expected return of 98% for DexCom over this period vs. a 79% expected return for Insulet, based on Trefis Machine Learning analysis – DexCom vs. Insulet – which also provides more details on how we arrive at these numbers. |
31614.0 | 2022-05-30 00:00:00 UTC | Peek Under The Hood: SDY Has 10% Upside | ABT | https://www.nasdaq.com/articles/peek-under-the-hood%3A-sdy-has-10-upside | 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 SPDR S&P Dividend ETF (Symbol: SDY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $140.62 per unit.
With SDY trading at a recent price near $127.96 per unit, that means that analysts see 9.90% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SDY's underlying holdings with notable upside to their analyst target prices are Badger Meter Inc (Symbol: BMI), Abbott Laboratories (Symbol: ABT), and American States Water Co (Symbol: AWR). Although BMI has traded at a recent price of $79.25/share, the average analyst target is 29.55% higher at $102.67/share. Similarly, ABT has 19.84% upside from the recent share price of $116.69 if the average analyst target price of $139.85/share is reached, and analysts on average are expecting AWR to reach a target price of $95.00/share, which is 19.21% above the recent price of $79.69. Below is a twelve month price history chart comparing the stock performance of BMI, ABT, and AWR:
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
SPDR S&P Dividend ETF SDY $127.96 $140.62 9.90%
Badger Meter Inc BMI $79.25 $102.67 29.55%
Abbott Laboratories ABT $116.69 $139.85 19.84%
American States Water Co AWR $79.69 $95.00 19.21%
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. | SPDR S&P Dividend ETF SDY $127.96 $140.62 9.90% Badger Meter Inc BMI $79.25 $102.67 29.55% Abbott Laboratories ABT $116.69 $139.85 19.84% American States Water Co AWR $79.69 $95.00 19.21% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Badger Meter Inc (Symbol: BMI), Abbott Laboratories (Symbol: ABT), and American States Water Co (Symbol: AWR). Similarly, ABT has 19.84% upside from the recent share price of $116.69 if the average analyst target price of $139.85/share is reached, and analysts on average are expecting AWR to reach a target price of $95.00/share, which is 19.21% above the recent price of $79.69. | Three of SDY's underlying holdings with notable upside to their analyst target prices are Badger Meter Inc (Symbol: BMI), Abbott Laboratories (Symbol: ABT), and American States Water Co (Symbol: AWR). Similarly, ABT has 19.84% upside from the recent share price of $116.69 if the average analyst target price of $139.85/share is reached, and analysts on average are expecting AWR to reach a target price of $95.00/share, which is 19.21% above the recent price of $79.69. SPDR S&P Dividend ETF SDY $127.96 $140.62 9.90% Badger Meter Inc BMI $79.25 $102.67 29.55% Abbott Laboratories ABT $116.69 $139.85 19.84% American States Water Co AWR $79.69 $95.00 19.21% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABT has 19.84% upside from the recent share price of $116.69 if the average analyst target price of $139.85/share is reached, and analysts on average are expecting AWR to reach a target price of $95.00/share, which is 19.21% above the recent price of $79.69. Three of SDY's underlying holdings with notable upside to their analyst target prices are Badger Meter Inc (Symbol: BMI), Abbott Laboratories (Symbol: ABT), and American States Water Co (Symbol: AWR). Below is a twelve month price history chart comparing the stock performance of BMI, ABT, and AWR: Below is a summary table of the current analyst target prices discussed above: | SPDR S&P Dividend ETF SDY $127.96 $140.62 9.90% Badger Meter Inc BMI $79.25 $102.67 29.55% Abbott Laboratories ABT $116.69 $139.85 19.84% American States Water Co AWR $79.69 $95.00 19.21% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Badger Meter Inc (Symbol: BMI), Abbott Laboratories (Symbol: ABT), and American States Water Co (Symbol: AWR). Similarly, ABT has 19.84% upside from the recent share price of $116.69 if the average analyst target price of $139.85/share is reached, and analysts on average are expecting AWR to reach a target price of $95.00/share, which is 19.21% above the recent price of $79.69. |
31615.0 | 2022-05-30 00:00:00 UTC | Antipodean dairy firms eye baby food supply to U.S. after Bubs Australia nod | ABT | https://www.nasdaq.com/articles/antipodean-dairy-firms-eye-baby-food-supply-to-u.s.-after-bubs-australia-nod | nan | nan | By Harish Sridharan and Rushil Dutta
May 30 (Reuters) - Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history.
New Zealand's dairy giants Fonterra FCG.NZ and a2 Milk ATM.NZ, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country.
This followed fellow Antipodean firm Bubs Australia BUB.AX inking a deal with the FDA to ship at least 1.25 million cans of its formula. Shares in a2 Milk ATM.NZ closed more than 10% higher, while Bubs Australia shot up 40%.
"I've got more good news: 27.5 million bottles of safe infant formula manufactured by Bubs Australia are coming to the United States," President Joe Biden said in a Tweet on Friday.
"We're doing everything in our power to get more formula on shelves as soon as possible."
The U.S. baby food shortage was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants.
Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks, although FDA Commissioner Robert Califf told lawmakers a week later it would take until July before store shelves across the country were filled.
"In light of the current situation and revised FDA guidance, we have submitted an application to the FDA for approval to supply finished infant formula to parents in the U.S.," Fonterra, the world's biggest dairy producer, said in an emailed statement.
Emergency supplies from Europe arrived earlier last week after the Biden administration decided to urgently meet nationwide shortages by relaxing import rules.
(Reporting by Harish Sridharan and Rushil Dutta in Bengaluru; Editing by Shailesh Kuber and Rashmi Aich)
((Harish.Sridharan@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 U.S. baby food shortage was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. This followed fellow Antipodean firm Bubs Australia BUB.AX inking a deal with the FDA to ship at least 1.25 million cans of its formula. "I've got more good news: 27.5 million bottles of safe infant formula manufactured by Bubs Australia are coming to the United States," President Joe Biden said in a Tweet on Friday. | The U.S. baby food shortage was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. By Harish Sridharan and Rushil Dutta May 30 (Reuters) - Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history. New Zealand's dairy giants Fonterra FCG.NZ and a2 Milk ATM.NZ, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country. | The U.S. baby food shortage was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. By Harish Sridharan and Rushil Dutta May 30 (Reuters) - Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history. New Zealand's dairy giants Fonterra FCG.NZ and a2 Milk ATM.NZ, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country. | The U.S. baby food shortage was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. By Harish Sridharan and Rushil Dutta May 30 (Reuters) - Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history. New Zealand's dairy giants Fonterra FCG.NZ and a2 Milk ATM.NZ, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country. |
31616.0 | 2022-05-30 00:00:00 UTC | NZ's a2 Milk seeks to supply infant formula to U.S. after Bubs approval | ABT | https://www.nasdaq.com/articles/nzs-a2-milk-seeks-to-supply-infant-formula-to-u.s.-after-bubs-approval | nan | nan | May 30 (Reuters) - New Zealand's a2 Milk Company ATM.NZ said on Monday it had submitted an application to the U.S. Food and Drug Administration (FDA) to supply infant milk formula after Australian peer Bubs BUB.AX received the health agency's clearance last week.
The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history.
The crisis was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants.
"We are able to provide support... leveraging our existing U.S. presence and distribution capability," David Bortolussi, managing director and CEO of a2, said in a statement emailed to Reuters.
Bubs Australia BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States, the FDA said on Friday.
Shares in a2 Milk ATM.NZ soared as much as 13%, and were set for their best session since February, while Bubs Australia shot up 42.1% at A$0.0.69 in afternoon trade.
The FDA said on May 19 that Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks.
(Reporting by Harish Sridharan in Bengaluru; Editing by Shailesh Kuber)
((Harish.Sridharan@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 crisis was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history. "We are able to provide support... leveraging our existing U.S. presence and distribution capability," David Bortolussi, managing director and CEO of a2, said in a statement emailed to Reuters. | The crisis was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. May 30 (Reuters) - New Zealand's a2 Milk Company ATM.NZ said on Monday it had submitted an application to the U.S. Food and Drug Administration (FDA) to supply infant milk formula after Australian peer Bubs BUB.AX received the health agency's clearance last week. The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history. | The crisis was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. May 30 (Reuters) - New Zealand's a2 Milk Company ATM.NZ said on Monday it had submitted an application to the U.S. Food and Drug Administration (FDA) to supply infant milk formula after Australian peer Bubs BUB.AX received the health agency's clearance last week. The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history. | The crisis was triggered when Abbott Laboratories ABT.N, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants. May 30 (Reuters) - New Zealand's a2 Milk Company ATM.NZ said on Monday it had submitted an application to the U.S. Food and Drug Administration (FDA) to supply infant milk formula after Australian peer Bubs BUB.AX received the health agency's clearance last week. The Antipodean companies were looking to cash in on a relaxation of regulations around infant formula imports by the FDA earlier this month to mitigate one of the biggest baby food shortages in the United States in recent history. |
31617.0 | 2022-05-30 00:00:00 UTC | ANALYSIS-As shortage persists, Reckitt tightens grip on U.S. baby formula market | ABT | https://www.nasdaq.com/articles/analysis-as-shortage-persists-reckitt-tightens-grip-on-u.s.-baby-formula-market-0 | nan | nan | By Richa Naidu
LONDON, May 30 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. The challenge now will be to stay there.
With the business reportedly up for sale, there's even more at stake.
Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections.
The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis.
Parents tend not to switch brands their infants like. A Reckitt spokesperson said the company was hoping to hold on to customers it has gained while Abbott products, such as Similac, are off the shelves.
The company said this week it was feeding 211,000 more babies than before the recall.
The stakes are high. Reckitt has reportedly long been looking to sell the formula business to focus on its higher margin household and consumer brands that range from Dettol disinfectants to Durex condoms. The Wall Street Journal said on Friday it was making a renewed sale attempt, and could fetch around $7 billion.
But the boost from the U.S. crisis may not last long.
The U.S. Food and Drug Administration (FDA) said on May 19 Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks, although FDA Commissioner Robert Califf told lawmakers a week later it would take until July before store shelves across the country were filled.
While Abbott's recall has presented an opportunity for other firms, such as Gerber maker Nestle NESN.S and Neocate maker Danone DANO.PA, it is Reckitt that is benefitting most, as it was already No.2 to Abbott before the crisis.
On April 1, Barclays raised its 2022 organic sales forecast for Reckitt to 4.4% from 4.0%, including an uplift to 7.4% from 5.0% at its nutrition division, which includes baby formula.
Less than five weeks later, it hiked its forecasts again to 6.0% for the group and 12.4% for the nutrition division.
According to Refinitiv, analysts have on average raised their full-year earnings forecast for Reckitt by 4.35% in the past 30 days, to about 311 pence per share.
"Near term, the biggest financial impact is going to be on Reckitt," said Barclays analyst Iain Simpson. "The big question is how much of the recent market share gains Reckitt holds on to once Abbott is back on shelf."
WILL IT LAST?
On its own, the sales hike would result in increased profits. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt.
Companies normally bid for state contracts to be the sole provider of baby formula for low-income families under the Women, Infants and Children (WIC) programme. In their bids, they offer a "rebate", in the form of discounts, to the states.
The government's intervention, aimed at incentivising firms to boost supplies, effectively covers that rebate.
"Financially, it's great both for the top-line and profitability because they don't need to give a rebate to the state government for selling formula," Bernstein analyst Bruno Monteyne said. "It probably will add at least 20-30 basis points of higher margins for as long as this lasts."
Barclays' Simpson agreed not being bound by a WIC contract would be a boost, estimating they have a 5% EBIT (earnings before interest and tax) margin versus about 40-45% for non-WIC contracts.
But some analysts say this boost is likely to be temporary, and Reckitt may not be able to keep its new customers.
While Bernstein's Monteyne said there was "some truth" to the idea Reckitt could benefit longer-term from the damage to Abbott's reputation, he noted the U.S. firm overcame a similar backlash from a 2010 formula recall within just a year.
"There is decent precedent," he said.
Reckitt shareholder Waverton Investment Management also suspects the market share gain will prove short-term.
"The U.S. is looking for other sources already to fill demand," said Waverton fund manager Tineke Frikkee said. "Over time Abbott will get their formula back on the shelves and Reckitt will revert to normal market share."
Abbott has WIC contracts with 30 U.S. states https://tmsnrt.rs/3LFURI6
(Reporting by Richa Naidu Additional reporting by Leah Douglas Editing by Matt Scuffham and 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. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. By Richa Naidu LONDON, May 30 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. Reckitt has reportedly long been looking to sell the formula business to focus on its higher margin household and consumer brands that range from Dettol disinfectants to Durex condoms. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. By Richa Naidu LONDON, May 30 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. With the business reportedly up for sale, there's even more at stake. The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis. |
31618.0 | 2022-05-29 00:00:00 UTC | Shares in Bubs Australia jump on exports to United States, Biden tweet | ABT | https://www.nasdaq.com/articles/shares-in-bubs-australia-jump-on-exports-to-united-states-biden-tweet | nan | nan | May 30 (Reuters) - Shares in Bubs Australia BUB.AX surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted "the good news".
Bubs plans to ship at least 1.25 million cans of its baby formula and has 500,000 tins ready for immediate export.
It shares were up 40% or 19 cents at A$0.68 in early afternoon trade, valuing the company at A$417 million ($300 million).
The U.S. baby formula crisis was triggered when Abbott Laboratories ABT.N in February recalled dozens of products after customers complained of infants contracting bacterial infections.
The U.S. Food and Drug Administration said on May 19 Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks.
($1 = 1.3931 Australian dollars)
(Reporting by Riya Sharma in Bengaluru; Editing by Edwina Gibbs)
((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. | The U.S. baby formula crisis was triggered when Abbott Laboratories ABT.N in February recalled dozens of products after customers complained of infants contracting bacterial infections. May 30 (Reuters) - Shares in Bubs Australia BUB.AX surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted "the good news". The U.S. Food and Drug Administration said on May 19 Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks. | The U.S. baby formula crisis was triggered when Abbott Laboratories ABT.N in February recalled dozens of products after customers complained of infants contracting bacterial infections. May 30 (Reuters) - Shares in Bubs Australia BUB.AX surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted "the good news". It shares were up 40% or 19 cents at A$0.68 in early afternoon trade, valuing the company at A$417 million ($300 million). | The U.S. baby formula crisis was triggered when Abbott Laboratories ABT.N in February recalled dozens of products after customers complained of infants contracting bacterial infections. May 30 (Reuters) - Shares in Bubs Australia BUB.AX surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted "the good news". Bubs plans to ship at least 1.25 million cans of its baby formula and has 500,000 tins ready for immediate export. | The U.S. baby formula crisis was triggered when Abbott Laboratories ABT.N in February recalled dozens of products after customers complained of infants contracting bacterial infections. May 30 (Reuters) - Shares in Bubs Australia BUB.AX surged on Monday after U.S. health authorities approved imports of its infant formula to help address a severe shortage and U.S. President Joe Biden tweeted "the good news". Bubs plans to ship at least 1.25 million cans of its baby formula and has 500,000 tins ready for immediate export. |
31619.0 | 2022-05-27 00:00:00 UTC | Bubs Australia to ship at least 1.25 mln baby formula cans to United States | ABT | https://www.nasdaq.com/articles/bubs-australia-to-ship-at-least-1.25-mln-baby-formula-cans-to-united-states | nan | nan | Adds details from HHS statement on Cargill Inc
May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday.
Some of it is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA.
Meanwhile, the U.S. Department of Health and Human Services allowed global farm commodities trader Cargill Inc [RIC:RIC:CARG.UL] to provide raw materials needed to maximize the production of infant formula by invoking the Defence Production Act.
Cargill supplies dozens of products to infant formula makers and the move will allow the manufacturers to produce at full capacity to address the "urgent marketplace shortages", the department said in a statement.
The Biden administration had earlier decided to urgently meet the nationwide shortage by importing emergency supplies from Europe, the first of which arrived earlier this week.
Bubs' supply is another import allowed by the FDA as part of its regulatory flexibility started earlier this month to mitigate one of the biggest baby formula shortages in recent history.
The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February.
Abbott said on Tuesday it plans to restart production at the facility on June 4, adding it would prioritize making EleCare and supplying it on or about June 20.
(Reporting by Leroy Leo and Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)
((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. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. Adds details from HHS statement on Cargill Inc May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Cargill supplies dozens of products to infant formula makers and the move will allow the manufacturers to produce at full capacity to address the "urgent marketplace shortages", the department said in a statement. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. Cargill supplies dozens of products to infant formula makers and the move will allow the manufacturers to produce at full capacity to address the "urgent marketplace shortages", the department said in a statement. The Biden administration had earlier decided to urgently meet the nationwide shortage by importing emergency supplies from Europe, the first of which arrived earlier this week. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. Adds details from HHS statement on Cargill Inc May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Cargill supplies dozens of products to infant formula makers and the move will allow the manufacturers to produce at full capacity to address the "urgent marketplace shortages", the department said in a statement. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. Some of it is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA. Meanwhile, the U.S. Department of Health and Human Services allowed global farm commodities trader Cargill Inc [RIC:RIC:CARG.UL] to provide raw materials needed to maximize the production of infant formula by invoking the Defence Production Act. |
31620.0 | 2022-05-27 00:00:00 UTC | Bubs Australia plans to ship at least 1.25 mln baby formula cans to U.S., says FDA | ABT | https://www.nasdaq.com/articles/bubs-australia-plans-to-ship-at-least-1.25-mln-baby-formula-cans-to-u.s.-says-fda | nan | nan | May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday.
Some of the baby formula is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA.
Bubs' supply is another import allowed by the FDA as part of its regulatory flexibility started earlier this month in an attempt to mitigate one of the biggest baby formula shortages in recent history.
The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February.
Abbott said on Tuesday it plans to restart production at the facility on June 4, adding it would prioritize making EleCare and supplying it on or about June 20.
(Reporting by Leroy Leo in Bengaluru; Editing by Shounak Dasgupta)
((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. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Bubs' supply is another import allowed by the FDA as part of its regulatory flexibility started earlier this month in an attempt to mitigate one of the biggest baby formula shortages in recent history. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Some of the baby formula is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Bubs' supply is another import allowed by the FDA as part of its regulatory flexibility started earlier this month in an attempt to mitigate one of the biggest baby formula shortages in recent history. | The shortage is partly due to Abbott Laboratories' ABT.N manufacturing plant in Michigan recalling some products including Similac in February. May 27 (Reuters) - Bubs Australia Ltd BUB.AX plans to ship at least 1.25 million cans of its baby formula to the United States to help ease a nationwide shortage, the U.S. Food and Drug Administration (FDA) said on Friday. Some of the baby formula is currently in stock for transport and more will be produced by the Australian company in the coming weeks and months, according to the FDA. |
31621.0 | 2022-05-27 00:00:00 UTC | ESLOY vs. ABT: Which Stock Should Value Investors Buy Now? | ABT | https://www.nasdaq.com/articles/esloy-vs.-abt%3A-which-stock-should-value-investors-buy-now | nan | nan | Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
EssilorLuxottica Unsponsored ADR has a Zacks Rank of #2 (Buy), while Abbott has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ESLOY currently has a forward P/E ratio of 23.36, while ABT has a forward P/E of 23.84. We also note that ESLOY has a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABT currently has a PEG ratio of 3.04.
Another notable valuation metric for ESLOY is its P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABT has a P/B of 5.65.
These metrics, and several others, help ESLOY earn a Value grade of B, while ABT has been given a Value grade of C.
ESLOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ESLOY is likely the superior value option right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. ESLOY currently has a forward P/E ratio of 23.36, while ABT has a forward P/E of 23.84. | Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. | Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). These metrics, and several others, help ESLOY earn a Value grade of B, while ABT has been given a Value grade of C. ESLOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. | Abbott Laboratories (ABT): Free Stock Analysis Report Investors interested in Medical - Products stocks are likely familiar with EssilorLuxottica Unsponsored ADR (ESLOY) and Abbott (ABT). Investors should feel comfortable knowing that ESLOY likely has seen a stronger improvement to its earnings outlook than ABT has recently. |
31622.0 | 2022-05-27 00:00:00 UTC | ANALYSIS-As shortage persists, Reckitt tightens grip on U.S. baby formula market | ABT | https://www.nasdaq.com/articles/analysis-as-shortage-persists-reckitt-tightens-grip-on-u.s.-baby-formula-market | nan | nan | By Richa Naidu
LONDON, May 27 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. The challenge now will be to stay there.
With the business reportedly up for sale, there's even more at stake.
Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections.
The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis.
Parents tend not to switch brands their infants like. A Reckitt spokesperson said the company was hoping to hold on to customers it has gained while Abbott products, such as Similac, are off the shelves.
The company said this week it was feeding 211,000 more babies than before the recall.
The stakes are high. Reckitt has reportedly long been looking to sell the formula business to focus on its higher margin household and consumer brands that range from Dettol disinfectants to Durex condoms. The Wall Street Journal said on Friday it was making a renewed sale attempt, and could fetch around $7 billion.
But the boost from the U.S. crisis may not last long.
The U.S. Food and Drug Administration (FDA) said on May 19 Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks, although FDA Commissioner Robert Califf told lawmakers a week later it would take until July before store shelves across the country were filled.
While Abbott's recall has presented an opportunity for other firms, such as Gerber maker Nestle NESN.S and Neocate maker Danone DANO.PA, it is Reckitt that is benefitting most, as it was already No.2 to Abbott before the crisis.
On April 1, Barclays raised its 2022 organic sales forecast for Reckitt to 4.4% from 4.0%, including an uplift to 7.4% from 5.0% at its nutrition division, which includes baby formula.
Less than five weeks later, it hiked its forecasts again to 6.0% for the group and 12.4% for the nutrition division.
According to Refinitiv, analysts have on average raised their full-year earnings forecast for Reckitt by 4.35% in the past 30 days, to about 311 pence per share.
"Near term, the biggest financial impact is going to be on Reckitt," said Barclays analyst Iain Simpson. "The big question is how much of the recent market share gains Reckitt holds on to once Abbott is back on shelf."
WILL IT LAST?
On its own, the sales hike would result in increased profits. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt.
Companies normally bid for state contracts to be the sole provider of baby formula for low-income families under the Women, Infants and Children (WIC) programme. In their bids, they offer a "rebate", in the form of discounts, to the states.
The government's intervention, aimed at incentivising firms to boost supplies, effectively covers that rebate.
"Financially, it's great both for the top-line and profitability because they don't need to give a rebate to the state government for selling formula," Bernstein analyst Bruno Monteyne said. "It probably will add at least 20-30 basis points of higher margins for as long as this lasts."
Barclays' Simpson agreed not being bound by a WIC contract would be a boost, estimating they have a 5% EBIT (earnings before interest and tax) margin versus about 40-45% for non-WIC contracts.
But some analysts say this boost is likely to be temporary, and Reckitt may not be able to keep its new customers.
While Bernstein's Monteyne said there was "some truth" to the idea Reckitt could benefit longer-term from the damage to Abbott's reputation, he noted the U.S. firm overcame a similar backlash from a 2010 formula recall within just a year.
"There is decent precedent," he said.
Reckitt shareholder Waverton Investment Management also suspects the market share gain will prove short-term.
"The U.S. is looking for other sources already to fill demand," said Waverton fund manager Tineke Frikkee said. "Over time Abbott will get their formula back on the shelves and Reckitt will revert to normal market share."
Abbott has WIC contracts with 30 U.S. states https://tmsnrt.rs/3LFURI6
(Reporting by Richa Naidu Additional reporting by Leah Douglas Editing by Matt Scuffham and 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. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. By Richa Naidu LONDON, May 27 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. Reckitt has reportedly long been looking to sell the formula business to focus on its higher margin household and consumer brands that range from Dettol disinfectants to Durex condoms. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. By Richa Naidu LONDON, May 27 (Reuters) - The U.S. baby formula crisis has boosted profits at Britain's Reckitt Benckiser and helped it grab the top spot in a $5.8 billion-a-year market. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis. But margins have been further boosted by the United States saying it will temporarily cover the cost of baby formula for low-income families dependent on government discounts in states contracted with Nestle and Reckitt. | Reckitt RKT.L has ramped up production of its Enfamil formula since U.S. rival Abbott Laboratories ABT.N in February recalled dozens of products in the United States after customers complained of infants contracting bacterial infections. With the business reportedly up for sale, there's even more at stake. The British consumer goods company, which boosted formula production by 30%, told Reuters last week it now accounted for more than 50% of total baby formula supply in United States, up from around a third before the crisis. |
31623.0 | 2022-05-26 00:00:00 UTC | Abbott developing test for monkeypox | ABT | https://www.nasdaq.com/articles/abbott-developing-test-for-monkeypox | nan | nan | By Leroy Leo
May 26 (Reuters) - Abbott Laboratories ABT.N said on Thursday it is actively developing a test for monkeypox, as the disease spreads in various countries.
The company will provide the test kits to partners of its Pandemic Defense Coalition, a network of scientific and public health partnerships aimed at identifying future pandemic threats, an Abbott spokesperson told Reuters.
"As the situation evolves, we will take steps to address additional testing needs," the spokesperson said.
Abbott's announcement comes on a day when the Centers for Diseases Control and Prevention (CDC) confirmed it has identified nine monkeypox cases in seven U.S. states.
Globally, more than 200 confirmed or suspected infections have been recorded in around 20 countries where monkeypox is not endemic. Most of these cases have been found in Europe.
Abbott is the second company to announce its development of monkeypox tests following Roche's ROG.S announcement on Wednesday.
(Reporting by Leroy Leo in Bengaluru; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Leroy Leo May 26 (Reuters) - Abbott Laboratories ABT.N said on Thursday it is actively developing a test for monkeypox, as the disease spreads in various countries. The company will provide the test kits to partners of its Pandemic Defense Coalition, a network of scientific and public health partnerships aimed at identifying future pandemic threats, an Abbott spokesperson told Reuters. Abbott's announcement comes on a day when the Centers for Diseases Control and Prevention (CDC) confirmed it has identified nine monkeypox cases in seven U.S. states. | By Leroy Leo May 26 (Reuters) - Abbott Laboratories ABT.N said on Thursday it is actively developing a test for monkeypox, as the disease spreads in various countries. The company will provide the test kits to partners of its Pandemic Defense Coalition, a network of scientific and public health partnerships aimed at identifying future pandemic threats, an Abbott spokesperson told Reuters. Abbott is the second company to announce its development of monkeypox tests following Roche's ROG.S announcement on Wednesday. | By Leroy Leo May 26 (Reuters) - Abbott Laboratories ABT.N said on Thursday it is actively developing a test for monkeypox, as the disease spreads in various countries. The company will provide the test kits to partners of its Pandemic Defense Coalition, a network of scientific and public health partnerships aimed at identifying future pandemic threats, an Abbott spokesperson told Reuters. Abbott's announcement comes on a day when the Centers for Diseases Control and Prevention (CDC) confirmed it has identified nine monkeypox cases in seven U.S. states. | By Leroy Leo May 26 (Reuters) - Abbott Laboratories ABT.N said on Thursday it is actively developing a test for monkeypox, as the disease spreads in various countries. The company will provide the test kits to partners of its Pandemic Defense Coalition, a network of scientific and public health partnerships aimed at identifying future pandemic threats, an Abbott spokesperson told Reuters. Abbott's announcement comes on a day when the Centers for Diseases Control and Prevention (CDC) confirmed it has identified nine monkeypox cases in seven U.S. states. |
31624.0 | 2022-05-26 00:00:00 UTC | U.S. FDA expands collaboration with Danone to boost baby formula supply | ABT | https://www.nasdaq.com/articles/u.s.-fda-expands-collaboration-with-danone-to-boost-baby-formula-supply | nan | nan | May 26 (Reuters) - The U.S. Food and Drug Administration said on Thursday it has expanded its collaboration with Danone's Nutricia business to boost supplies of specialized medical baby formula bottles to address its shortage among infants with certain allergies or critical health conditions.
The health regulator said about 5 million additional cans manufactured by Danone would be sent to the United States.
Meanwhile, lawmakers grilled the agency officials on Wednesday over what they saw as a lack of urgency in their response to complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages.
Abbott controlled 40% of the market before the plant closed, Christopher Calamari, president of Abbott U.S. nutrition, told lawmakers, and the plant accounted for 40% of Abbott's product.
(Reporting by Nathan Gomes in Bengaluru; Editing by Arun Koyyur)
((Nathan.Gomes@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. | Meanwhile, lawmakers grilled the agency officials on Wednesday over what they saw as a lack of urgency in their response to complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. May 26 (Reuters) - The U.S. Food and Drug Administration said on Thursday it has expanded its collaboration with Danone's Nutricia business to boost supplies of specialized medical baby formula bottles to address its shortage among infants with certain allergies or critical health conditions. The health regulator said about 5 million additional cans manufactured by Danone would be sent to the United States. | Meanwhile, lawmakers grilled the agency officials on Wednesday over what they saw as a lack of urgency in their response to complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. May 26 (Reuters) - The U.S. Food and Drug Administration said on Thursday it has expanded its collaboration with Danone's Nutricia business to boost supplies of specialized medical baby formula bottles to address its shortage among infants with certain allergies or critical health conditions. Abbott controlled 40% of the market before the plant closed, Christopher Calamari, president of Abbott U.S. nutrition, told lawmakers, and the plant accounted for 40% of Abbott's product. | Meanwhile, lawmakers grilled the agency officials on Wednesday over what they saw as a lack of urgency in their response to complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. May 26 (Reuters) - The U.S. Food and Drug Administration said on Thursday it has expanded its collaboration with Danone's Nutricia business to boost supplies of specialized medical baby formula bottles to address its shortage among infants with certain allergies or critical health conditions. Abbott controlled 40% of the market before the plant closed, Christopher Calamari, president of Abbott U.S. nutrition, told lawmakers, and the plant accounted for 40% of Abbott's product. | Meanwhile, lawmakers grilled the agency officials on Wednesday over what they saw as a lack of urgency in their response to complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. May 26 (Reuters) - The U.S. Food and Drug Administration said on Thursday it has expanded its collaboration with Danone's Nutricia business to boost supplies of specialized medical baby formula bottles to address its shortage among infants with certain allergies or critical health conditions. The health regulator said about 5 million additional cans manufactured by Danone would be sent to the United States. |
31625.0 | 2022-05-26 00:00:00 UTC | Quant Ratings Updated on 75 Stocks | ABT | https://www.nasdaq.com/articles/quant-ratings-updated-on-75-stocks | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
First, I want to thank those who joined me for my special event on Tuesday, The Great American Wealth Shift. It was a great success, and I enjoyed discussing the importance of money flow. For those who were unable to make this event, a replay of The Great American Wealth Shift is available here for your viewing.
Not only did we cover money flow, but I shared the sector that is about to shed billions and the sector that’s seeing a surge in money flow. I also gave away a bonus pick and revealed the No. 1 stock to avoid. Click here to watch the replay of The Great American Wealth Shift event now.
************
Stocks are rebounding nicely over the past two days after last week’s plunge lower. As I write this, the S&P 500 and Dow Jones Industrial Average are up more than 1% and the NASDAQ Composite is up more than 2%.
There are two main catalysts behind the strength: a dovish Federal Reserve and positive earnings results.
In regard to the Fed, the Federal Open Market Committee (FOMC) minutes released yesterday proved to be quite dovish. The Fed plans to raise interest rates by 0.5% in June and again in July to help combat decades-high inflation. Wall Street already knows further rate increases are in the cards, but what is surprising is how dovish the Fed officials are.
You see, a lot of people expected the Fed to announce a higher interest rate increase, but instead they stayed the course. With unemployment low, the Fed doesn’t want to muddy the waters. And the competition in the housing market gives us indication that the Fed indeed pricked the bubble. We knew this was coming, which is partly why the broader indices rallied into the close. The S&P 500 climbed 0.95%, the Dow rose 0.6%, and the tech-heavy NASDAQ saw a 1.5% lift.
And then there are earnings…
We remain in an environment where companies who post strong results have their stock head higher… while earnings misses send shares tumbling. This is a perfect example of what I like to call “money flow.” Money flowing into a stock drives it higher, while money that flows out of a stock triggers a selloff.
Just take a look at Agilent Technologies (NYSE:A). This is a company that provides laboratories worldwide with instruments, services, consumables, applications and expertise for life sciences, diagnostics and applied chemical markets. On Tuesday, the company reports earnings for its second quarter in fiscal year 2022.
For Agilent Technologies’ second quarter, revenue grew 5% year-over-year and net income rose 16% year-over-year. I should add that Agilent increased its guidance for fiscal year 2022 earnings per share to a range of $4.86 per share to $4.93 per share. For the full year, company management continues to expect revenue between $6.67 billion and $6.73 billion. This represents revenue growth of 5.6% to 6.5%.
Leading into the earnings report, A shares began to see an increase in money flow, which boosted the stock from a C-rating to a B-rating in my Portfolio Grader over the weekend. In the wake of Agilent Technologies’ strong second-quarter earnings results, the money flow persisted, and the stock popped 2%. Those who follow my Portfolio Grader would’ve known that this stock was a “Buy” ahead of the company’s earnings report and had an opportunity to ride the stock’s wave.
Now, Agilent Technologies isn’t the only company whose ratings were revised this weekend. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 75 big blue chips — of those 75, 24 stocks were updated to a buy.
Below, I have listed the first 10 stocks that were upgraded to a buy over the weekend. For the full list of the 75 stocks and their Quantitative Grade and Fundamental Grade, click here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
UPGRADED: FROM HOLD TO BUY
SYMBOL COMPANY NAME TOTAL
GRADE
A Agilent Technologies, Inc. B
ABT Abbott Laboratories B
AMGN Amgen Inc. B
APO Apollo Global Management Inc. B
CE Celanese Corporation B
CNA CNA Financial Corporation B
CTLT Catalent Inc. B
DAL Delta Air Lines Inc. B
DHR Danaher Corporation B
FCX Freeport-McMoRan, Inc. B
The reality is money flow is ultimately what determines if a stock will go up or down — and this is exactly what my system tracks. I explained it all during The Great American Wealth Shift event on Tuesday. If you missed it, you can watch a replay here.
P.S. Yesterday afternoon, I put on my Great American Wealth Shift event and detailed a massive market move just over the horizon…
I even gave away one of my top recommendations to play this historic shift and my No. 1 stock to avoid.
I also showed folks how to access another stock — one that’s smaller and more illiquid than what I typically recommend.
For full details, click here now to watch a replay of the Great American Wealth Shift event.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Amgen Inc. (AMGN), Apollo Global Management Inc. (APO)
The post Quant Ratings Updated on 75 Stocks 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. | A Agilent Technologies, Inc. B ABT Abbott Laboratories B AMGN Amgen Inc. B APO Apollo Global Management Inc. B CE Celanese Corporation B CNA CNA Financial Corporation B CTLT Catalent Inc. B DAL Delta Air Lines Inc. B DHR Danaher Corporation B FCX Freeport-McMoRan, Inc. B The reality is money flow is ultimately what determines if a stock will go up or down — and this is exactly what my system tracks. And then there are earnings… We remain in an environment where companies who post strong results have their stock head higher… while earnings misses send shares tumbling. This is a company that provides laboratories worldwide with instruments, services, consumables, applications and expertise for life sciences, diagnostics and applied chemical markets. | A Agilent Technologies, Inc. B ABT Abbott Laboratories B AMGN Amgen Inc. B APO Apollo Global Management Inc. B CE Celanese Corporation B CNA CNA Financial Corporation B CTLT Catalent Inc. B DAL Delta Air Lines Inc. B DHR Danaher Corporation B FCX Freeport-McMoRan, Inc. B The reality is money flow is ultimately what determines if a stock will go up or down — and this is exactly what my system tracks. For full details, click here now to watch a replay of the Great American Wealth Shift event. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Amgen Inc. (AMGN), Apollo Global Management Inc. (APO) The post Quant Ratings Updated on 75 Stocks appeared first on InvestorPlace. | A Agilent Technologies, Inc. B ABT Abbott Laboratories B AMGN Amgen Inc. B APO Apollo Global Management Inc. B CE Celanese Corporation B CNA CNA Financial Corporation B CTLT Catalent Inc. B DAL Delta Air Lines Inc. B DHR Danaher Corporation B FCX Freeport-McMoRan, Inc. B The reality is money flow is ultimately what determines if a stock will go up or down — and this is exactly what my system tracks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips First, I want to thank those who joined me for my special event on Tuesday, The Great American Wealth Shift. This is a perfect example of what I like to call “money flow.” Money flowing into a stock drives it higher, while money that flows out of a stock triggers a selloff. | A Agilent Technologies, Inc. B ABT Abbott Laboratories B AMGN Amgen Inc. B APO Apollo Global Management Inc. B CE Celanese Corporation B CNA CNA Financial Corporation B CTLT Catalent Inc. B DAL Delta Air Lines Inc. B DHR Danaher Corporation B FCX Freeport-McMoRan, Inc. B The reality is money flow is ultimately what determines if a stock will go up or down — and this is exactly what my system tracks. For those who were unable to make this event, a replay of The Great American Wealth Shift is available here for your viewing. Leading into the earnings report, A shares began to see an increase in money flow, which boosted the stock from a C-rating to a B-rating in my Portfolio Grader over the weekend. |
31626.0 | 2022-05-26 00:00:00 UTC | Abbott (ABT) to Commence Limited Release of EleCare Soon | ABT | https://www.nasdaq.com/articles/abbott-abt-to-commence-limited-release-of-elecare-soon | nan | nan | Abbott Laboratories ABT recently announced that following the U.S. District Court for the Western District of Michigan’s amendment of a recent consent decree, the company would release limited quantities of its EleCare specialty amino acid-based formulas. EleCare was previously on hold following the Feb 17 recall of some powder infant formulas from its Sturgis, MI facility.
It is worth mentioning that the consent decree was amended at the request of Abbott and the FDA to enable the company to provide EleCare to children with urgent medical needs. These EleCare product batches were on hold pursuant to an agreement with the FDA.
However, it should be noted that Similac and Alimentum powder formulas, which were voluntarily recalled in February, are not included in this product release.
Abbott’s plans to restart production on Jun 4 at the Sturgis facility, where it will prioritize EleCare production, is expected to provide a significant boost to the company’s Nutritional Products segment on a global scale.
Significance of the Announcement
EleCare formulas are hypoallergenic (relatively unlikely to cause an allergic reaction) and are used by infants and children having severe food allergies or gastrointestinal disorders that require amino acid-based formulas. Following the commencement of production at the Sturgis facility, Abbott expects to provide an initial EleCare product release to consumers beginning on or about Jun 20.
Currently, Abbott has a limited inventory of these products, which should be sufficient to fulfill current patient needs until a new product is available. The products being released are EleCare (for infants 0-12 months) and EleCare Jr (for ages one year and up).
Abbott plans to start the distribution after all products are tested and they fulfill the product release requirements. The company also concluded additional enhanced testing to provide assurance that the product is safe to distribute.
Industry Prospects
Per a report by Fortune Business Insights, the global infant formula market was valued at $50.46 billion in 2019 and is anticipated to reach $109.10 billion by 2027 at a CAGR of 10.6%. Factors like the increasing relevance of nutritionally fortified infant formula and a rise in the number of women in the labor force are expected to drive the market.
Given the market potential, the limited release is likely to provide a significant boost to Abbott’s business globally.
Recent Developments
This month, Abbott received the FDA clearance for its Alinity m STI (sexually transmitted infections) Assay, which simultaneously detects and differentiates four common STIs.
In April, Abbott announced the U.S. availability of its Amplatzer Steerable Delivery Sheath, which is used with the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke.
Also in April, Abbott announced favorable results from the PERSIST-END study, which showed that the majority of the patients treated for persistent AFib with the company's TactiCath Contact Force Ablation Catheter, Sensor Enabled (TactiCath SE) remained symptom-free for up to 15 months following the procedure.
Price Performance
Shares of Abbott have lost 2.2% in the past year compared with the industry’s 25.1% fall and the S&P 500's 6.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Patterson Companies, Inc. PDCO, Veeva Systems Inc. VEEV and AMN Healthcare Services, Inc. AMN.
Patterson Companies, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.9%. PDCO’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 2.7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson Companies has lost 4.9% against the industry’s 1.5% gain in the past year.
Veeva Systems has an estimated long-term growth rate of 18.1%. VEEV’s earnings surpassed estimates in the trailing four quarters, the average beat being 9.6%. It currently carries a Zacks Rank #2.
Veeva Systems has lost 39% compared with the industry’s 60.4% fall over the past year.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average beat being 15.6%. It currently sports a Zacks Rank #1.
AMN Healthcare has gained 3.1% against the industry’s 64.2% fall over the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT recently announced that following the U.S. District Court for the Western District of Michigan’s amendment of a recent consent decree, the company would release limited quantities of its EleCare specialty amino acid-based formulas. Abbott Laboratories (ABT): Free Stock Analysis Report It is worth mentioning that the consent decree was amended at the request of Abbott and the FDA to enable the company to provide EleCare to children with urgent medical needs. | Abbott Laboratories ABT recently announced that following the U.S. District Court for the Western District of Michigan’s amendment of a recent consent decree, the company would release limited quantities of its EleCare specialty amino acid-based formulas. Abbott Laboratories (ABT): Free Stock Analysis Report Image Source: Zacks Investment Research Zacks Rank & Key Picks Currently, Abbott carries a Zacks Rank #3 (Hold). | Abbott Laboratories ABT recently announced that following the U.S. District Court for the Western District of Michigan’s amendment of a recent consent decree, the company would release limited quantities of its EleCare specialty amino acid-based formulas. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott’s plans to restart production on Jun 4 at the Sturgis facility, where it will prioritize EleCare production, is expected to provide a significant boost to the company’s Nutritional Products segment on a global scale. | Abbott Laboratories ABT recently announced that following the U.S. District Court for the Western District of Michigan’s amendment of a recent consent decree, the company would release limited quantities of its EleCare specialty amino acid-based formulas. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott’s plans to restart production on Jun 4 at the Sturgis facility, where it will prioritize EleCare production, is expected to provide a significant boost to the company’s Nutritional Products segment on a global scale. |
31627.0 | 2022-05-26 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-23 | 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) $157.82 $207.50 31.48%
Abbott Laboratories (Symbol: ABT) $113.19 $139.85 23.55%
Illinois Tool Works, Inc. (Symbol: ITW) $201.93 $222.78 10.32%
Expeditors International of Washington, Inc. (Symbol: EXPD) $106.13 $116.71 9.97%
Prosperity Bancshares Inc. (Symbol: PB) $70.80 $76.56 8.13%
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) 1.29% 31.48% 32.77%
Abbott Laboratories (Symbol: ABT) 1.66% 23.55% 25.21%
Illinois Tool Works, Inc. (Symbol: ITW) 2.42% 10.32% 12.74%
Expeditors International of Washington, Inc. (Symbol: EXPD) 1.26% 9.97% 11.23%
Prosperity Bancshares Inc. (Symbol: PB) 2.94% 8.13% 11.07%
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) $1.9 $1.98 4.21%
Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58%
Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90%
Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54%
Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32%
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) $157.82 $207.50 31.48% Abbott Laboratories (Symbol: ABT) $113.19 $139.85 23.55% Illinois Tool Works, Inc. (Symbol: ITW) $201.93 $222.78 10.32% Expeditors International of Washington, Inc. (Symbol: EXPD) $106.13 $116.71 9.97% Prosperity Bancshares Inc. (Symbol: PB) $70.80 $76.56 8.13% 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) 1.29% 31.48% 32.77% Abbott Laboratories (Symbol: ABT) 1.66% 23.55% 25.21% Illinois Tool Works, Inc. (Symbol: ITW) 2.42% 10.32% 12.74% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.26% 9.97% 11.23% Prosperity Bancshares Inc. (Symbol: PB) 2.94% 8.13% 11.07% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $157.82 $207.50 31.48% Abbott Laboratories (Symbol: ABT) $113.19 $139.85 23.55% Illinois Tool Works, Inc. (Symbol: ITW) $201.93 $222.78 10.32% Expeditors International of Washington, Inc. (Symbol: EXPD) $106.13 $116.71 9.97% Prosperity Bancshares Inc. (Symbol: PB) $70.80 $76.56 8.13% 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) 1.29% 31.48% 32.77% Abbott Laboratories (Symbol: ABT) 1.66% 23.55% 25.21% Illinois Tool Works, Inc. (Symbol: ITW) 2.42% 10.32% 12.74% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.26% 9.97% 11.23% Prosperity Bancshares Inc. (Symbol: PB) 2.94% 8.13% 11.07% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $157.82 $207.50 31.48% Abbott Laboratories (Symbol: ABT) $113.19 $139.85 23.55% Illinois Tool Works, Inc. (Symbol: ITW) $201.93 $222.78 10.32% Expeditors International of Washington, Inc. (Symbol: EXPD) $106.13 $116.71 9.97% Prosperity Bancshares Inc. (Symbol: PB) $70.80 $76.56 8.13% 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) 1.29% 31.48% 32.77% Abbott Laboratories (Symbol: ABT) 1.66% 23.55% 25.21% Illinois Tool Works, Inc. (Symbol: ITW) 2.42% 10.32% 12.74% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.26% 9.97% 11.23% Prosperity Bancshares Inc. (Symbol: PB) 2.94% 8.13% 11.07% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% These five stocks are part of our full Dividend Aristocrats List. | Ecolab Inc (Symbol: ECL) $157.82 $207.50 31.48% Abbott Laboratories (Symbol: ABT) $113.19 $139.85 23.55% Illinois Tool Works, Inc. (Symbol: ITW) $201.93 $222.78 10.32% Expeditors International of Washington, Inc. (Symbol: EXPD) $106.13 $116.71 9.97% Prosperity Bancshares Inc. (Symbol: PB) $70.80 $76.56 8.13% 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) 1.29% 31.48% 32.77% Abbott Laboratories (Symbol: ABT) 1.66% 23.55% 25.21% Illinois Tool Works, Inc. (Symbol: ITW) 2.42% 10.32% 12.74% Expeditors International of Washington, Inc. (Symbol: EXPD) 1.26% 9.97% 11.23% Prosperity Bancshares Inc. (Symbol: PB) 2.94% 8.13% 11.07% Another consideration with dividend growth stocks is just how much the dividend is growing. Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% These five stocks are part of our full Dividend Aristocrats List. |
31628.0 | 2022-05-26 00:00:00 UTC | SPY, ABBV, ABT, ACN: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/spy-abbv-abt-acn%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page »
The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. | Among the largest underlying components of SPY, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.3%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Accenture plc (Symbol: ACN) is up by about 2.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $1 inflow -- that's a 0.3% increase week over week in outstanding units (from 90,0,8,80,,000 to 90,3,9,80,,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $380.54 per share, with $479.98 as the 52 week high point — that compares with a last trade of $403.46. |
31629.0 | 2022-05-25 00:00:00 UTC | U.S. baby formula shortage: FDA defends response, cites safety problems at Abbott plant | ABT | https://www.nasdaq.com/articles/u.s.-baby-formula-shortage%3A-fda-defends-response-cites-safety-problems-at-abbott-plant | nan | nan | By Ahmed Aboulenein and Manas Mishra
WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended steps it took to address complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages.
FDA leaders appeared before a congressional panel to answer questions about the crisis after Abbott in February recalled some products and closed its manufacturing plant in Sturgis, Michigan.
The plant is one of three run by Abbott, which has the largest U.S. market share for infant formula, and the company did not have a contingency plan to produce its specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, the FDA said.
For the sake of expediency, FDA Commissioner Dr. Robert Califf said the best option was to enter into a consent decree agreement with Abbott, allowing the agency to oversee improvement and remediation of problems at the facility to get it back on line as soon as possible.
The consent decree was the only way for the FDA to have confidence in Abbott "where we literally have oversight of every single step," Califf told the U.S. House of Representatives Commerce and Energy Subcommittee on Oversight and Investigations.
Abbott said on Tuesday it planned to reopen the plant on June 4.
The FDA conducted an inspection of the plant following reports of bacterial infections in babies potentially linked to baby formula, and a whistleblower complaint from a former employee at the plant in late October.
A COVID outbreak at the Sturgis plant delayed an FDA inspection until Jan. 31. A second baby's death potentially linked to the plant was reported just after the factory was shuttered on Feb. 17.
"Frankly, the inspection results were shocking," Califf said, noting that inspectors found cracks in vital equipment, a lack of adequate hand washing, evidence of previous bacterial contamination, and water leaks in areas were formula is produced, a risk factor for bacteria.
Califf was questioned about the FDA's delay in interviewing the former employee who complained about issues at the plant.
"It was too slow and there were decisions that were suboptimal along the way," he acknowledged.
Top FDA leaders, including then-acting Commissioner Janet Woodcock, only received the complaint on Feb. 14 because of pandemic-related mail routing issues, they said in written testimony. Califf also blamed a lack of resources and overworked staff for problems at the agency.
"We have to figure out what we need to do to make these inspections robust," said Diana DeGette, the subcommittee chairwoman.
Califf said the agency's attempts to address shortages of infant formula through additional funding from Congress had failed in the past.
"We did a number of things at FDA to try to deal with it with the resources that we cobbled together," he said.
(Reporting by Ahmed Aboulenein in Washington and Manas Mishra in Bengaluru; Editing by Bill Berkrot)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein and Manas Mishra WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended steps it took to address complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. For the sake of expediency, FDA Commissioner Dr. Robert Califf said the best option was to enter into a consent decree agreement with Abbott, allowing the agency to oversee improvement and remediation of problems at the facility to get it back on line as soon as possible. "Frankly, the inspection results were shocking," Califf said, noting that inspectors found cracks in vital equipment, a lack of adequate hand washing, evidence of previous bacterial contamination, and water leaks in areas were formula is produced, a risk factor for bacteria. | By Ahmed Aboulenein and Manas Mishra WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended steps it took to address complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. The FDA conducted an inspection of the plant following reports of bacterial infections in babies potentially linked to baby formula, and a whistleblower complaint from a former employee at the plant in late October. A COVID outbreak at the Sturgis plant delayed an FDA inspection until Jan. 31. | By Ahmed Aboulenein and Manas Mishra WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended steps it took to address complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. The plant is one of three run by Abbott, which has the largest U.S. market share for infant formula, and the company did not have a contingency plan to produce its specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, the FDA said. The FDA conducted an inspection of the plant following reports of bacterial infections in babies potentially linked to baby formula, and a whistleblower complaint from a former employee at the plant in late October. | By Ahmed Aboulenein and Manas Mishra WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended steps it took to address complaints about possible baby formula contamination at a now shuttered Abbott Laboratories ABT.N plant that led to severe nationwide shortages. For the sake of expediency, FDA Commissioner Dr. Robert Califf said the best option was to enter into a consent decree agreement with Abbott, allowing the agency to oversee improvement and remediation of problems at the facility to get it back on line as soon as possible. The FDA conducted an inspection of the plant following reports of bacterial infections in babies potentially linked to baby formula, and a whistleblower complaint from a former employee at the plant in late October. |
31630.0 | 2022-05-25 00:00:00 UTC | U.S. FDA defends baby formula shortage response in Congress | ABT | https://www.nasdaq.com/articles/u.s.-fda-defends-baby-formula-shortage-response-in-congress | nan | nan | By Ahmed Aboulenein
WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended the steps it took to address complaints about possible baby formula contamination at an Abbott Laboratories ABT.N plant that has been closed since February.
FDA leaders are appearing before a congressional panel to answer questions about one of the biggest infant formula shortages in recent U.S. history after Abbott in February recalled some products and closed its manufacturing plant in Sturgis, Michigan.
It was critical to get the Sturgis plant online as soon as possible because it is one of three run by Abbott, which has the largest U.S. market share for infant formula, and because Abbott did not have a contingency plan to produce its lines of specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, they said.
For the sake of expediency, the agency said it had little choice but to enter into a consent decree agreement with Abbott. The mechanism allows the company to avoid litigation by pledging to undertake voluntary actions to make improvements and address deficiencies under the oversight of outside officials like those from the FDA.
After the FDA inspection of the Sturgis facility, the consent decree was the only way for the FDA to have confidence in Abbott "where we literally have oversight of every single step" FDA Commissioner Dr. Robert Califf said in testimony before the U.S. House of Representatives Commerce and Energy Subcommittee on Oversight and Investigations.
Abbott said on Tuesday that it planned to reopen the plant on June 4.
(Reporting by Ahmed Aboulenein Editing by Bill Berkrot)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended the steps it took to address complaints about possible baby formula contamination at an Abbott Laboratories ABT.N plant that has been closed since February. FDA leaders are appearing before a congressional panel to answer questions about one of the biggest infant formula shortages in recent U.S. history after Abbott in February recalled some products and closed its manufacturing plant in Sturgis, Michigan. The mechanism allows the company to avoid litigation by pledging to undertake voluntary actions to make improvements and address deficiencies under the oversight of outside officials like those from the FDA. | By Ahmed Aboulenein WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended the steps it took to address complaints about possible baby formula contamination at an Abbott Laboratories ABT.N plant that has been closed since February. FDA leaders are appearing before a congressional panel to answer questions about one of the biggest infant formula shortages in recent U.S. history after Abbott in February recalled some products and closed its manufacturing plant in Sturgis, Michigan. It was critical to get the Sturgis plant online as soon as possible because it is one of three run by Abbott, which has the largest U.S. market share for infant formula, and because Abbott did not have a contingency plan to produce its lines of specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, they said. | By Ahmed Aboulenein WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended the steps it took to address complaints about possible baby formula contamination at an Abbott Laboratories ABT.N plant that has been closed since February. It was critical to get the Sturgis plant online as soon as possible because it is one of three run by Abbott, which has the largest U.S. market share for infant formula, and because Abbott did not have a contingency plan to produce its lines of specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, they said. After the FDA inspection of the Sturgis facility, the consent decree was the only way for the FDA to have confidence in Abbott "where we literally have oversight of every single step" FDA Commissioner Dr. Robert Califf said in testimony before the U.S. House of Representatives Commerce and Energy Subcommittee on Oversight and Investigations. | By Ahmed Aboulenein WASHINGTON, May 25 (Reuters) - The U.S. Food and Drug Administration on Wednesday in testimony to lawmakers defended the steps it took to address complaints about possible baby formula contamination at an Abbott Laboratories ABT.N plant that has been closed since February. FDA leaders are appearing before a congressional panel to answer questions about one of the biggest infant formula shortages in recent U.S. history after Abbott in February recalled some products and closed its manufacturing plant in Sturgis, Michigan. It was critical to get the Sturgis plant online as soon as possible because it is one of three run by Abbott, which has the largest U.S. market share for infant formula, and because Abbott did not have a contingency plan to produce its lines of specialty formulas that serve as the only source of nutrition for thousands of babies with metabolic disorders, they said. |
31631.0 | 2022-05-25 00:00:00 UTC | 2 Dividend Kings That Are Soundly Beating the Market in 2022 | ABT | https://www.nasdaq.com/articles/2-dividend-kings-that-are-soundly-beating-the-market-in-2022 | nan | nan | Are you not sure about where to invest right now? Dividend stocks can be a great place to start looking. Their financials are generally sound, and they can enable you to collect some recurring cash flow while you hang on to your investment. And at a time when investors have been looking for safety, some of them have also been outperforming the markets in 2022 by a wide margin.
A couple of Dividend Kings that have been doing particularly well this year are AbbVie (NYSE: ABBV) and Altria Group (NYSE: MO). They are both up more than 9% since the first of January, and they look like rockstars compared to the S&P 500 and its 16% fall thus far. And those returns don't even factor in their respective yields.
Image source: Getty Images.
1. AbbVie
AbbVie is a top healthcare stock that yields 3.7% annually, which is more than double the S&P 500 average of less than 1.4%. The company's dividend-increasing streak goes back 50 years if you include when it was part of Abbott Laboratories; AbbVie spun off in 2013, and has been making its own regular rate hikes since then. This year the company raised its dividend payments by 8.5%, and shareholders will now collect $1.41 every quarter, up from $1.30 previously.
What risk-averse investors will love about this stock is how broad and diverse its business is. While top-selling inflammation drug Humira generated $4.7 billion for the company through the first three months of 2022, that represented a little more than one-third of AbbVie's total sales. Other drugs from oncology, neuroscience, eye care, and other areas help account for the rest. Psoriasis drug Skyrizi brought in revenue of $940 million during the period, growing at an impressive rate of 64%. And the company's Botox Cosmetic business reported revenue of $641 million, which was up 34%.
AbbVie's broad business can provide some solid stability at a time when other less-diversified companies struggle. The company also generates a ton of cash flow. Last quarter, operating cash flow was $4.9 billion, nearly unchanged from the same period last year. That's nearly double the $2.5 billion that the company paid out in dividends during the past three months.
AbbVie's solid financials make this an incredibly safe place to not just park your money right now, but to also hold it for the long haul and collect its payout. It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. And that income would likely rise in the future.
2. Altria
Tobacco giant Altria is a promising defensive stock that income investors will likely be drawn to right now. Not only can it provide stability, but its yield of 7% is among the highest payouts investors will find among large-cap stocks.
Net revenue of $5.9 billion for the period ended March 31 was down 2.4% year-over-year but the company's operating income was still up 7.2% as Altria kept its costs firm and reduced marketing, administration, and research costs by 18%. It's a positive sign that the business can generate positive earnings growth despite having a top line that isn't terribly strong, and that's what makes Altria an attractive defensive stock to hold -- its financials are fairly stable.
This year, the company projects that its adjusted diluted per-share earnings will come in between $4.79 and $4.93. At the lower end of that guidance, its payout ratio would still only be 75%. That suggests the dividend is in little danger. And it would probably take a lot for the company to break its streak of 50+ years of increasing dividends.
To collect $1,000 in dividends from Altria, you would need to invest around $14,200. And like with AbbVie, that dividend income will likely increase over the years. Both stocks could make for attractive investment options right now, especially if you're worried about the state of the stock market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's dividend-increasing streak goes back 50 years if you include when it was part of Abbott Laboratories; AbbVie spun off in 2013, and has been making its own regular rate hikes since then. While top-selling inflammation drug Humira generated $4.7 billion for the company through the first three months of 2022, that represented a little more than one-third of AbbVie's total sales. AbbVie's solid financials make this an incredibly safe place to not just park your money right now, but to also hold it for the long haul and collect its payout. | AbbVie's broad business can provide some solid stability at a time when other less-diversified companies struggle. Last quarter, operating cash flow was $4.9 billion, nearly unchanged from the same period last year. It's a positive sign that the business can generate positive earnings growth despite having a top line that isn't terribly strong, and that's what makes Altria an attractive defensive stock to hold -- its financials are fairly stable. | It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. Both stocks could make for attractive investment options right now, especially if you're worried about the state of the stock market. See the 10 stocks *Stock Advisor returns as of April 27, 2022 David Jagielski has no position in any of the stocks mentioned. | It would take a $26,800 investment in the stock to generate $1,000 in annual dividend income from AbbVie at its current rate. To collect $1,000 in dividends from Altria, you would need to invest around $14,200. And like with AbbVie, that dividend income will likely increase over the years. |
31632.0 | 2022-05-25 00:00:00 UTC | US To Get About 2 Mln Infant Formula Cans From UK's Kendal Nutricare: FDA | ABT | https://www.nasdaq.com/articles/us-to-get-about-2-mln-infant-formula-cans-from-uks-kendal-nutricare%3A-fda | nan | nan | (RTTNews) - The U.S. Food and Drug Administration said it has taken steps to make available millions of cans of additional infant and specialty formula to U.S. consumers in the coming months.
Under the agency's recent increased flexibilities, British nutrition products maker Kendal Nutricare will send about 2 million cans of infant formula under the Kendamil brand initially to U.S. beginning in June.
Further, Abbott will release about 300,000 cans of EleCare specialty formula on a case-by case basis.
The FDA has informed Kendal Nutricare that the agency is exercising enforcement discretion for the import of infant formula under the Kendamil brand. The company currently has over 40,000 cans in stock for immediate dispatch. Kendamil's website will help consumers locate product once it arrives in the U.S.
The U.S. Department of Health and Human Services has initiated talks to evaluate options for getting the products to the U.S. as quickly as possible.
The FDA said it has no concerns about the safety and adequate nutrition content about Kendamil.
Regarding Abbott, the FDA said it approved the release of about 300,000 cans of EleCare amino acid-based infant formula previously produced at Abbott Nutrition's Sturgis, Michigan, facility to individuals needing urgent, life-sustaining supplies of this specialty formula on a case-by-case basis. Before the release, these products will undergo enhanced microbiological testing.
According to the agency, these EleCare products are not part of Abbott's recent recall. They are in different lots, have never been released and have been maintained in storage under control by Abbott Nutrition.
Abbott has confirmed to the agency that EleCare will be the first formula produced at the Sturgis facility when it restarts production, and other specialty metabolic formulas will closely follow.
In order to address the nationwide shortage of infant formula caused by Abbott Nutrition recall, a US military plane carrying 78,000 pounds of baby formula arrived in Indianapolis earlier this week from Germany.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The U.S. Food and Drug Administration said it has taken steps to make available millions of cans of additional infant and specialty formula to U.S. consumers in the coming months. Under the agency's recent increased flexibilities, British nutrition products maker Kendal Nutricare will send about 2 million cans of infant formula under the Kendamil brand initially to U.S. beginning in June. The FDA has informed Kendal Nutricare that the agency is exercising enforcement discretion for the import of infant formula under the Kendamil brand. | Under the agency's recent increased flexibilities, British nutrition products maker Kendal Nutricare will send about 2 million cans of infant formula under the Kendamil brand initially to U.S. beginning in June. Further, Abbott will release about 300,000 cans of EleCare specialty formula on a case-by case basis. Regarding Abbott, the FDA said it approved the release of about 300,000 cans of EleCare amino acid-based infant formula previously produced at Abbott Nutrition's Sturgis, Michigan, facility to individuals needing urgent, life-sustaining supplies of this specialty formula on a case-by-case basis. | Under the agency's recent increased flexibilities, British nutrition products maker Kendal Nutricare will send about 2 million cans of infant formula under the Kendamil brand initially to U.S. beginning in June. Regarding Abbott, the FDA said it approved the release of about 300,000 cans of EleCare amino acid-based infant formula previously produced at Abbott Nutrition's Sturgis, Michigan, facility to individuals needing urgent, life-sustaining supplies of this specialty formula on a case-by-case basis. Abbott has confirmed to the agency that EleCare will be the first formula produced at the Sturgis facility when it restarts production, and other specialty metabolic formulas will closely follow. | Further, Abbott will release about 300,000 cans of EleCare specialty formula on a case-by case basis. The FDA has informed Kendal Nutricare that the agency is exercising enforcement discretion for the import of infant formula under the Kendamil brand. According to the agency, these EleCare products are not part of Abbott's recent recall. |
31633.0 | 2022-05-25 00:00:00 UTC | Danone doubles supply of some baby formula to U.S. | ABT | https://www.nasdaq.com/articles/danone-doubles-supply-of-some-baby-formula-to-u.s. | nan | nan | By Richa Naidu
LONDON, May 25 (Reuters) - Danone SA DANO.PA on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's milk.
The world's second-biggest baby formula maker told Reuters that it is in talks with U.S. authorities over what more it can do to ease the formula shortage following a recall by Abbott Laboratories ABT.N.
(Reporting by Richa Naidu Editing by Matt Scuffham and David Goodman )
((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. | The world's second-biggest baby formula maker told Reuters that it is in talks with U.S. authorities over what more it can do to ease the formula shortage following a recall by Abbott Laboratories ABT.N. By Richa Naidu LONDON, May 25 (Reuters) - Danone SA DANO.PA on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's milk. (Reporting by Richa Naidu Editing by Matt Scuffham and David Goodman ) ((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. | The world's second-biggest baby formula maker told Reuters that it is in talks with U.S. authorities over what more it can do to ease the formula shortage following a recall by Abbott Laboratories ABT.N. By Richa Naidu LONDON, May 25 (Reuters) - Danone SA DANO.PA on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's milk. (Reporting by Richa Naidu Editing by Matt Scuffham and David Goodman ) ((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. | The world's second-biggest baby formula maker told Reuters that it is in talks with U.S. authorities over what more it can do to ease the formula shortage following a recall by Abbott Laboratories ABT.N. By Richa Naidu LONDON, May 25 (Reuters) - Danone SA DANO.PA on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's milk. (Reporting by Richa Naidu Editing by Matt Scuffham and David Goodman ) ((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. | The world's second-biggest baby formula maker told Reuters that it is in talks with U.S. authorities over what more it can do to ease the formula shortage following a recall by Abbott Laboratories ABT.N. By Richa Naidu LONDON, May 25 (Reuters) - Danone SA DANO.PA on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's milk. (Reporting by Richa Naidu Editing by Matt Scuffham and David Goodman ) ((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. |
31634.0 | 2022-05-25 00:00:00 UTC | Will Medtronic Stock See Higher Levels Following Its Q4 Results? | ABT | https://www.nasdaq.com/articles/will-medtronic-stock-see-higher-levels-following-its-q4-results | nan | nan | Medtronic (NYSE: MDT) is scheduled to report its fiscal fourth-quarter results on Thursday, May 26. We expect Medtronic to post revenues and earnings slightly above the consensus estimate. The company should benefit from a continued uptick in procedure volume. However, supply chain disruptions may impact its overall performance. Furthermore, we find Medtronic stock to be undervalued currently, as discussed below. Our interactive dashboard analysis of Medtronic’s Earnings Preview has additional details.
(1) Revenues expected to be above the consensus estimate
Trefis estimates Medtronic’s Q4 fiscal 2022 total revenues to be around $8.5 billion, compared to the $8.4 billion consensus estimate.
A recovery in procedure volume post the Omicron spread likely aided the revenue growth for the company.
It likely saw market share gains for its cardiovascular and neuroscience devices led by new product launches. However, diabetes products may see continued market share loss in the U.S., with pending regulatory approvals for its new products.
Looking at the last quarter, Medtronic’s revenue of $7.8 billion was flat y-o-y as a low single-digit growth each in Cardiovascular and Neuroscience segments was offset by a low single-digit decline in Medical Surgical segment, and a 7% fall in Diabetes segment sales.
Our dashboard on Medtronic Revenues provides more details.
(2) EPS likely to be just above the consensus estimates
Medtronic’s Q4 fiscal 2022 earnings per share (EPS) is expected to be $1.57 per Trefis analysis, just a cent above the consensus estimate of $1.56.
Medtronic’s net income of $1.85 billion in Q3 reflected a 5% rise from its $1.75 billion profit in the prior-year quarter. This can primarily be attributed to over a 100 bps rise in net margins.
Looking at the full fiscal 2023, we expect EPS to be $6.10, compared to an estimated $5.67 in fiscal 2022.
(3) MDT stock looks undervalued
We estimate Medtronic’s Valuation to be $129 per share, reflecting a 24% upside from its current market price of $104.
This represents a forward P/EBITDA multiple of 20x based on our Medtronic’s EBITDA forecast.
That said, if the company reports upbeat Q4 results and FY2023 guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in even higher levels for MDT stock.
While MDT stock looks undervalued, 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 how counter-intuitive the stock valuation is for Medtronic vs. TeleTech.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return 0% 1% 46%
S&P 500 Return -4% -17% 78%
Trefis Multi-Strategy Portfolio -5% -21% 210%
[1] Month-to-date and year-to-date as of 5/24/2022
[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. | A recovery in procedure volume post the Omicron spread likely aided the revenue growth for the company. (3) MDT stock looks undervalued We estimate Medtronic’s Valuation to be $129 per share, reflecting a 24% upside from its current market price of $104. While MDT stock looks undervalued, it is helpful to see how Medtronic’s Peers fare on metrics that matter. | (1) Revenues expected to be above the consensus estimate Trefis estimates Medtronic’s Q4 fiscal 2022 total revenues to be around $8.5 billion, compared to the $8.4 billion consensus estimate. (2) EPS likely to be just above the consensus estimates Medtronic’s Q4 fiscal 2022 earnings per share (EPS) is expected to be $1.57 per Trefis analysis, just a cent above the consensus estimate of $1.56. Total [2] MDT Return 0% 1% 46% S&P 500 Return -4% -17% 78% Trefis Multi-Strategy Portfolio -5% -21% 210% [1] Month-to-date and year-to-date as of 5/24/2022 [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 expected to be above the consensus estimate Trefis estimates Medtronic’s Q4 fiscal 2022 total revenues to be around $8.5 billion, compared to the $8.4 billion consensus estimate. (2) EPS likely to be just above the consensus estimates Medtronic’s Q4 fiscal 2022 earnings per share (EPS) is expected to be $1.57 per Trefis analysis, just a cent above the consensus estimate of $1.56. Total [2] MDT Return 0% 1% 46% S&P 500 Return -4% -17% 78% Trefis Multi-Strategy Portfolio -5% -21% 210% [1] Month-to-date and year-to-date as of 5/24/2022 [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 expected to be above the consensus estimate Trefis estimates Medtronic’s Q4 fiscal 2022 total revenues to be around $8.5 billion, compared to the $8.4 billion consensus estimate. (3) MDT stock looks undervalued We estimate Medtronic’s Valuation to be $129 per share, reflecting a 24% upside from its current market price of $104. Total [2] MDT Return 0% 1% 46% S&P 500 Return -4% -17% 78% Trefis Multi-Strategy Portfolio -5% -21% 210% [1] Month-to-date and year-to-date as of 5/24/2022 [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. |
31635.0 | 2022-05-24 00:00:00 UTC | U.S. FDA allows importing of 2 mln baby formula cans from UK | ABT | https://www.nasdaq.com/articles/u.s.-fda-allows-importing-of-2-mln-baby-formula-cans-from-uk | nan | nan | By Ahmed Aboulenein and Ananya Mariam Rajesh
WASHINGTON, May 24 (Reuters) - The U.S. Food and Drug Administration is easing regulations to allow infant formula imports from Britain, a move it said on Tuesday would bring around 2 million cans onto empty shelves by June to ease a nationwide shortage.
The FDA said it was "exercising enforcement discretion" to allow Britain-based Kendal Nutricare to import certain infant formula products under the Kendamil brand that it has no safety or nutrition concerns over following an evaluation.
"Under the agency's recent increased flexibilities regarding importation of certain infant formula products, the company initially estimates that about 2 million cans of infant formula are expected to land on U.S. store shelves beginning in June," it said in a statement.
Kendal has 40,000 cans in stock for immediate dispatch that the Department of Health and Human Services is working on bringing into the United States as soon as possible, the FDA said.
"We continue to do everything in our power as part of the all-of-government efforts to ensure there's adequate infant formula available wherever and whenever parents and caregivers need it," said FDA Commissioner Robert Califf.
The United States is experiencing one of the biggest infant formula shortages in recent history after Abbott Laboratories ABT.N in February recalled some products including Similac and closed its manufacturing plant in Sturgis, Michigan.
Abbott, the biggest U.S. supplier of powder baby formula, shut its facility after reports of bacterial infections among four infants. It exacerbated a shortage among multiple manufacturers that began with supply-chain issues tied to the coronavirus pandemic.
The FDA said it would allow the release of about 300,000 cans of Abbott's EleCare amino acid-based formula for children who urgently need it to survive, on a case-by-case basis.
EleCare was previously produced at the Sturgis facility but were not part of the recall, the FDA said.
Abbott plans to restart production at the facility on June 4, it said in a statement, adding it would prioritize making EleCare and supplying it on or about June 20. Abbott said it would provide the formula to children in need for free.
U.S. President Joe Biden's administration has sought to relieve the shortage by importing emergency supplies from Europe, the first of which arrived earlier this week. Biden invoked the Cold War-era Defense Production Act to help boost supplies.
The FDA said on Tuesday it was in discussion with other manufacturers over additional supplies and that it would prioritize products that demonstrate safety, nutritional adequacy, and are available in large quantities.
(Reporting by Ahmed Aboulenein in Washington and Ananya Mariam Rajesh in Bengaluru; Additional reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Richard Chang)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The United States is experiencing one of the biggest infant formula shortages in recent history after Abbott Laboratories ABT.N in February recalled some products including Similac and closed its manufacturing plant in Sturgis, Michigan. The FDA said it was "exercising enforcement discretion" to allow Britain-based Kendal Nutricare to import certain infant formula products under the Kendamil brand that it has no safety or nutrition concerns over following an evaluation. "We continue to do everything in our power as part of the all-of-government efforts to ensure there's adequate infant formula available wherever and whenever parents and caregivers need it," said FDA Commissioner Robert Califf. | The United States is experiencing one of the biggest infant formula shortages in recent history after Abbott Laboratories ABT.N in February recalled some products including Similac and closed its manufacturing plant in Sturgis, Michigan. By Ahmed Aboulenein and Ananya Mariam Rajesh WASHINGTON, May 24 (Reuters) - The U.S. Food and Drug Administration is easing regulations to allow infant formula imports from Britain, a move it said on Tuesday would bring around 2 million cans onto empty shelves by June to ease a nationwide shortage. (Reporting by Ahmed Aboulenein in Washington and Ananya Mariam Rajesh in Bengaluru; Additional reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Richard Chang) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The United States is experiencing one of the biggest infant formula shortages in recent history after Abbott Laboratories ABT.N in February recalled some products including Similac and closed its manufacturing plant in Sturgis, Michigan. By Ahmed Aboulenein and Ananya Mariam Rajesh WASHINGTON, May 24 (Reuters) - The U.S. Food and Drug Administration is easing regulations to allow infant formula imports from Britain, a move it said on Tuesday would bring around 2 million cans onto empty shelves by June to ease a nationwide shortage. "Under the agency's recent increased flexibilities regarding importation of certain infant formula products, the company initially estimates that about 2 million cans of infant formula are expected to land on U.S. store shelves beginning in June," it said in a statement. | The United States is experiencing one of the biggest infant formula shortages in recent history after Abbott Laboratories ABT.N in February recalled some products including Similac and closed its manufacturing plant in Sturgis, Michigan. By Ahmed Aboulenein and Ananya Mariam Rajesh WASHINGTON, May 24 (Reuters) - The U.S. Food and Drug Administration is easing regulations to allow infant formula imports from Britain, a move it said on Tuesday would bring around 2 million cans onto empty shelves by June to ease a nationwide shortage. EleCare was previously produced at the Sturgis facility but were not part of the recall, the FDA said. |
31636.0 | 2022-05-24 00:00:00 UTC | U.S. FTC launches inquiry into infant formula shortage | ABT | https://www.nasdaq.com/articles/u.s.-ftc-launches-inquiry-into-infant-formula-shortage | nan | nan | Adds details on inquiry, quote from FTC chair
WASHINGTON, May 24 (Reuters) - The Federal Trade Commission said on Tuesday it had launched an inquiry into the ongoing shortage for infant formula in the United States and would examine the pattern of mergers and acquisitions in the formula market.
The inquiry comes after a Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan created one of the biggest baby formula shortages in recent history for U.S. families.
President Joe Biden's administration has sought to relieve the shortage by importing emergency supplies from Europe, the first of which arrived earlier this week. Biden invoked the Cold War-era Defense Production Act to help boost supplies.
In a statement, FTC Chair Lina Khan said the inquiry would "identify the factors that contributed to the shortage or hampered out ability to respond to it."
The inquiry will also examine mergers and acquisitions in the infant formula market "to better understand current concentration, how it came to be, and how that should inform future merger review," the FTC said.
The FTC will also seek public comment on whether the FTC itself or state or federal agencies may have taken steps that contributed to fragile supply chains for infant formula, it added.
(Reporting by Rami Ayyub; Editing by Leslie Adler, Bernard Orr)
((Rami.Ayyub@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 inquiry comes after a Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan created one of the biggest baby formula shortages in recent history for U.S. families. Adds details on inquiry, quote from FTC chair WASHINGTON, May 24 (Reuters) - The Federal Trade Commission said on Tuesday it had launched an inquiry into the ongoing shortage for infant formula in the United States and would examine the pattern of mergers and acquisitions in the formula market. President Joe Biden's administration has sought to relieve the shortage by importing emergency supplies from Europe, the first of which arrived earlier this week. | The inquiry comes after a Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan created one of the biggest baby formula shortages in recent history for U.S. families. Adds details on inquiry, quote from FTC chair WASHINGTON, May 24 (Reuters) - The Federal Trade Commission said on Tuesday it had launched an inquiry into the ongoing shortage for infant formula in the United States and would examine the pattern of mergers and acquisitions in the formula market. The inquiry will also examine mergers and acquisitions in the infant formula market "to better understand current concentration, how it came to be, and how that should inform future merger review," the FTC said. | The inquiry comes after a Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan created one of the biggest baby formula shortages in recent history for U.S. families. Adds details on inquiry, quote from FTC chair WASHINGTON, May 24 (Reuters) - The Federal Trade Commission said on Tuesday it had launched an inquiry into the ongoing shortage for infant formula in the United States and would examine the pattern of mergers and acquisitions in the formula market. The FTC will also seek public comment on whether the FTC itself or state or federal agencies may have taken steps that contributed to fragile supply chains for infant formula, it added. | The inquiry comes after a Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan created one of the biggest baby formula shortages in recent history for U.S. families. Adds details on inquiry, quote from FTC chair WASHINGTON, May 24 (Reuters) - The Federal Trade Commission said on Tuesday it had launched an inquiry into the ongoing shortage for infant formula in the United States and would examine the pattern of mergers and acquisitions in the formula market. President Joe Biden's administration has sought to relieve the shortage by importing emergency supplies from Europe, the first of which arrived earlier this week. |
31637.0 | 2022-05-24 00:00:00 UTC | U.S. FTC launches inquiry into infant formula crisis | ABT | https://www.nasdaq.com/articles/u.s.-ftc-launches-inquiry-into-infant-formula-crisis | nan | nan | May 24 (Reuters) - The Federal Trade Commission said on Tuesday it has launched an inquiry into the ongoing shortage for infant formula.
The inquiry comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan during a probe by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur)
((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The inquiry comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan during a probe by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. May 24 (Reuters) - The Federal Trade Commission said on Tuesday it has launched an inquiry into the ongoing shortage for infant formula. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur) ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The inquiry comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan during a probe by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. May 24 (Reuters) - The Federal Trade Commission said on Tuesday it has launched an inquiry into the ongoing shortage for infant formula. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur) ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The inquiry comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan during a probe by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. May 24 (Reuters) - The Federal Trade Commission said on Tuesday it has launched an inquiry into the ongoing shortage for infant formula. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur) ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The inquiry comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan during a probe by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. May 24 (Reuters) - The Federal Trade Commission said on Tuesday it has launched an inquiry into the ongoing shortage for infant formula. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur) ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31638.0 | 2022-05-24 00:00:00 UTC | U.S. states, manufacturers to decide if gov't benefits apply to imported baby formula | ABT | https://www.nasdaq.com/articles/u.s.-states-manufacturers-to-decide-if-govt-benefits-apply-to-imported-baby-formula | nan | nan | By Leah Douglas
May 24 (Reuters) - State officials and manufacuturers are working out whether baby formula imported from outside the United States to address severe supply shortages will be available to families who rely on government discounts to make it affordable, a U.S. Department of Agriculture (USDA) official said on Tuesday.
Infants enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program for low-income families consumed about 56% of all infant formula in the United States in 2018, according to available USDA data.
About 1.71 million infants were enrolled in the program in 2018 - less than half of all U.S. infants - according to USDA, which administers the program.
Whether the imported formula will be made available to WIC participants is “an emerging question,” said Brian Dittmeier, senior director of public policy at the National Women, Infants and Children Association.
WIC shoppers are typically limited to buying formula from the company that has a contract with their state, territory, or tribal organization, unless prescribed a specialty formula by a doctor. Those companies provide rebates to cut the cost of formula to WIC shoppers.
Abbott Laboratories ABT.N, the top formula maker whose Michigan plant closure due to possible bacterial contamination greatly exacerbated the current national shortage, holds about 55% of WIC contracts. Nestle SA NESN.S and Reckitt Benckiser Group's RB.L Mead Johnson unit share the rest. L2N2XB1H5
Abbott has said it will honor rebates even if shoppers buy competing formulas. Nestle and Reckitt did not immediately respond to requests for comment on whether they too would pay those rebates.
The first shipment from Europe on Sunday in Operation Fly Formula - the Biden administration's effort to offset the shortage with imports - was of specialty formulas that will be available to eligible WIC infants, a USDA official said.
Whether future imports of non-specialty formula are available to WIC infants will be decided by states and their contracted formula provider, the official said.
The United States ordinarily produces about 98% of the formula it consumes domestically, according to the White House.
(Reporting by Leah Douglas; additional reporting by Richa Naidu and Jessica DiNapoli; Editing by Bill Berkrot)
((Leah.Douglas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT.N, the top formula maker whose Michigan plant closure due to possible bacterial contamination greatly exacerbated the current national shortage, holds about 55% of WIC contracts. By Leah Douglas May 24 (Reuters) - State officials and manufacuturers are working out whether baby formula imported from outside the United States to address severe supply shortages will be available to families who rely on government discounts to make it affordable, a U.S. Department of Agriculture (USDA) official said on Tuesday. Whether the imported formula will be made available to WIC participants is “an emerging question,” said Brian Dittmeier, senior director of public policy at the National Women, Infants and Children Association. | Abbott Laboratories ABT.N, the top formula maker whose Michigan plant closure due to possible bacterial contamination greatly exacerbated the current national shortage, holds about 55% of WIC contracts. Infants enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program for low-income families consumed about 56% of all infant formula in the United States in 2018, according to available USDA data. Whether the imported formula will be made available to WIC participants is “an emerging question,” said Brian Dittmeier, senior director of public policy at the National Women, Infants and Children Association. | Abbott Laboratories ABT.N, the top formula maker whose Michigan plant closure due to possible bacterial contamination greatly exacerbated the current national shortage, holds about 55% of WIC contracts. Infants enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program for low-income families consumed about 56% of all infant formula in the United States in 2018, according to available USDA data. The first shipment from Europe on Sunday in Operation Fly Formula - the Biden administration's effort to offset the shortage with imports - was of specialty formulas that will be available to eligible WIC infants, a USDA official said. | Abbott Laboratories ABT.N, the top formula maker whose Michigan plant closure due to possible bacterial contamination greatly exacerbated the current national shortage, holds about 55% of WIC contracts. Infants enrolled in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program for low-income families consumed about 56% of all infant formula in the United States in 2018, according to available USDA data. WIC shoppers are typically limited to buying formula from the company that has a contract with their state, territory, or tribal organization, unless prescribed a specialty formula by a doctor. |
31639.0 | 2022-05-24 00:00:00 UTC | Abbott (ABT) Transcatheter Valve Devices' Study Data Favorable | ABT | https://www.nasdaq.com/articles/abbott-abt-transcatheter-valve-devices-study-data-favorable | nan | nan | Abbott Laboratories ABT presented two late-breaking study data evaluating the company’s TriClip — a first-of-its-kind minimally invasive tricuspid heart valve repair device, and Navitor — the company's newest-generation transcatheter aortic valve implantation (TAVI) system. The company also demonstrated new data for MitraClip and Amplatzer Amulet.
The data were presented at EuroPCR, the annual meeting of the European Association of Percutaneous Cardiovascular Interventions, organized in Paris between May 17 to May 20, 2022.
The recent developments are likely to fortify Abbott’s structural heart business.
Study Outcome Details
The first 30-day results from the TriClip bRIGHT study, highlighted in a late-breaking data presentation, demonstrated that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems considerably minimize tricuspid regurgitation and substantially enhance the quality of life across a wide range of anatomically diverse patients.
Next, the results from a multicenter, international, single-arm study of the Navitor TAVI system, with an active sealing cuff to minimize paravalvular leak, demonstrated improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk.
Other data presented at EuroPCR, including EXPAND study, demonstrated that MitraClip therapy in heart failure patients with mitral regurgitation experiences enhanced symptoms and quality of life.
Image Source: Zacks Investment Research
Moreover, results from the Amulet IDE trial found that women and men implanted with Abbott’s Amplatzer Amulet left atrial appendage (LAA) occluder experienced similar long-term benefits from the LAA closure, which distinguishes with the perceptive that women have higher rates of early complications with the LAA closure than men.
Significance of Positive Findings
The data presented at the EuroPCR 2022 meeting reinforce Abbott’s commitment to offering structural heart solutions, supported by clinical evidence that exceeds the existing standards of care.
The 30-day late-breaking data highlighted that transcatheter edge-to-edge repair using TriClip has a huge potential to improve patients' quality of life and has entered the clinical stage with extensive usage in Europe. Further, the one-year results from the study validated that a minimally invasive TAVI procedure with a Navitor valve offers a safe and effective treatment option for patients.
Industry Prospects
Per a report by Grand View Research, the global structural heart devices market size was $4.1 billion in 2016 and is projected to grow by 2025, witnessing a CAGR of 9.15%. A rise in structural heart diseases, the development of innovative repair devices and increased demand for minimally invasive techniques are driving the market.
Notable Developments
In April 2022, Abbott announced the receipt of an FDA approval for Aveir single-chamber (VR) leadless pacemaker to treat patients with slow heart rhythms in the United States. This represents a major advancement in patient care and brings new, never-before-seen features to patients and physicians.
In February 2022, Abbott gained the FDA approval for an expanded indication for its CardioMEMS HF System to support the care of heart failure patients. The CardioMEMS HF System has been found to reduce hospitalizations for patients with later-stage heart disease when utilized in monitoring for signs of worsening heart failure.
Price Performance
Shares of the company have lost 1.9% in a year compared with the industry's fall of 25.5%.
Zacks Rank and Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are UnitedHealth Group Incorporated UNH, Medpace Holdings, Inc. MEDP and Alkermes plc ALKS.
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
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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 presented two late-breaking study data evaluating the company’s TriClip — a first-of-its-kind minimally invasive tricuspid heart valve repair device, and Navitor — the company's newest-generation transcatheter aortic valve implantation (TAVI) system. Abbott Laboratories (ABT): Free Stock Analysis Report Next, the results from a multicenter, international, single-arm study of the Navitor TAVI system, with an active sealing cuff to minimize paravalvular leak, demonstrated improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk. | Abbott Laboratories ABT presented two late-breaking study data evaluating the company’s TriClip — a first-of-its-kind minimally invasive tricuspid heart valve repair device, and Navitor — the company's newest-generation transcatheter aortic valve implantation (TAVI) system. Abbott Laboratories (ABT): Free Stock Analysis Report Study Outcome Details The first 30-day results from the TriClip bRIGHT study, highlighted in a late-breaking data presentation, demonstrated that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems considerably minimize tricuspid regurgitation and substantially enhance the quality of life across a wide range of anatomically diverse patients. | Abbott Laboratories ABT presented two late-breaking study data evaluating the company’s TriClip — a first-of-its-kind minimally invasive tricuspid heart valve repair device, and Navitor — the company's newest-generation transcatheter aortic valve implantation (TAVI) system. Abbott Laboratories (ABT): Free Stock Analysis Report Study Outcome Details The first 30-day results from the TriClip bRIGHT study, highlighted in a late-breaking data presentation, demonstrated that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems considerably minimize tricuspid regurgitation and substantially enhance the quality of life across a wide range of anatomically diverse patients. | Abbott Laboratories ABT presented two late-breaking study data evaluating the company’s TriClip — a first-of-its-kind minimally invasive tricuspid heart valve repair device, and Navitor — the company's newest-generation transcatheter aortic valve implantation (TAVI) system. Abbott Laboratories (ABT): Free Stock Analysis Report Other data presented at EuroPCR, including EXPAND study, demonstrated that MitraClip therapy in heart failure patients with mitral regurgitation experiences enhanced symptoms and quality of life. |
31640.0 | 2022-05-23 00:00:00 UTC | U.S. agency issues order to speed baby formula ingredient deliveries | ABT | https://www.nasdaq.com/articles/u.s.-agency-issues-order-to-speed-baby-formula-ingredient-deliveries-0 | nan | nan | By David Shepardson
WASHINGTON, May 23 (Reuters) - The U.S. Federal Motor Carrier Safety Administration (FMCSA) said late Monday it was issuing a national emergency declaration to waive hours-of-service requirements for commercial vehicle drivers transporting baby formula ingredients and packaging.
The order comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N, and the closing of its manufacturing plant in Sturgis, Michigan during an investigation by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families.
The FMCSA order includes, but is not limited to, whey, casein, corn syrup and hydrolyzed protein, and containers and packaging for baby formula.
A separate declaration first issued in March 2020 covering COVID-19 pandemic transportation issues has been repeatedly extended and already covers baby formula. That order is currently set to expire May 31.
FMCSA told Reuters in a statement late Monday that the agency and the White House were asked by motor carriers and drivers on Friday about whether specific ingredients in baby formula were included in the waiver.
As a result, the agency moved to issue the declaration "that both finished formula and the products involved in the production of formula are included" in waivers.
President Joe Biden last week invoked the Cold War-era Defense Production Act to help increase supplies. On Sunday, a military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis.
(Reporting by David Shepardson; Editing by Kim Coghill and Kenneth Maxwell)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The order comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N, and the closing of its manufacturing plant in Sturgis, Michigan during an investigation by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. By David Shepardson WASHINGTON, May 23 (Reuters) - The U.S. Federal Motor Carrier Safety Administration (FMCSA) said late Monday it was issuing a national emergency declaration to waive hours-of-service requirements for commercial vehicle drivers transporting baby formula ingredients and packaging. FMCSA told Reuters in a statement late Monday that the agency and the White House were asked by motor carriers and drivers on Friday about whether specific ingredients in baby formula were included in the waiver. | The order comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N, and the closing of its manufacturing plant in Sturgis, Michigan during an investigation by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. By David Shepardson WASHINGTON, May 23 (Reuters) - The U.S. Federal Motor Carrier Safety Administration (FMCSA) said late Monday it was issuing a national emergency declaration to waive hours-of-service requirements for commercial vehicle drivers transporting baby formula ingredients and packaging. As a result, the agency moved to issue the declaration "that both finished formula and the products involved in the production of formula are included" in waivers. | The order comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N, and the closing of its manufacturing plant in Sturgis, Michigan during an investigation by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. By David Shepardson WASHINGTON, May 23 (Reuters) - The U.S. Federal Motor Carrier Safety Administration (FMCSA) said late Monday it was issuing a national emergency declaration to waive hours-of-service requirements for commercial vehicle drivers transporting baby formula ingredients and packaging. As a result, the agency moved to issue the declaration "that both finished formula and the products involved in the production of formula are included" in waivers. | The order comes in the wake of a product recall by top baby formula maker Abbott Laboratories ABT.N, and the closing of its manufacturing plant in Sturgis, Michigan during an investigation by the U.S. Food and Drug Administration that has created one of the biggest infant formula shortages in recent history for U.S. families. By David Shepardson WASHINGTON, May 23 (Reuters) - The U.S. Federal Motor Carrier Safety Administration (FMCSA) said late Monday it was issuing a national emergency declaration to waive hours-of-service requirements for commercial vehicle drivers transporting baby formula ingredients and packaging. The FMCSA order includes, but is not limited to, whey, casein, corn syrup and hydrolyzed protein, and containers and packaging for baby formula. |
31641.0 | 2022-05-22 00:00:00 UTC | First baby formula shipment, enough for thousands of U.S. infants, arrives from Europe | ABT | https://www.nasdaq.com/articles/first-baby-formula-shipment-enough-for-thousands-of-u.s.-infants-arrives-from-europe | nan | nan | By Ahmed Aboulenein and Chris Gallagher
WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis on Sunday, but a top government official noted that much more needs to be done.
A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families.
"This is an important step, but it is by no means the only step that must take place. We will continue to work as the president has instructed us to look for every opportunity to increase supply," said Agriculture Secretary Tom Vilsack, who greeted the plane on its arrival.
"This particular formula is for a very, very small percentage of children. Roughly 17,000 children in the country basically are the beneficiaries of this particular formula," he said.
President Joe Biden's administration is seeking to stock empty shelves with 1.5 million containers of Nestle NESN.S specialty infant formulas. Biden last week invoked the Cold War-era Defense Production Act to help increase supplies.
Nestle said more shipments would arrive in the coming days.
Troops used forklifts to unload boxes of the cargo from the plane, which the White House said carried 78,000 pounds (35,000 kg) of specialty infant formula - enough for 500,000 bottles - and onto trucks heading to distribution centers.
Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues.
Chief Executive Robert Ford apologized for the shortage on Sunday and promised to fix it, adding the plant would reopen in the first week of June, and it would take six-to-eight weeks for products to reach store shelves.
"We're sorry to every family we've let down since our voluntary recall exacerbated our nation’s baby formula shortage," he wrote in a Washington Post column.
New York City Mayor Eric Adams on Sunday declared a state of emergency to prevent price gouging.
"This emergency executive order will help us to crack down on any retailer looking to capitalize on this crisis by jacking up prices on this essential good," he said in a statement.
(Reporting by Ahmed Aboulenein and Chris Gallagher, additional reporting by Jessica DiNapoli in Davos, Switzerland and Barbara Goldberg in New York; Editing by Ross Colvin, Bill Berkrot and Chris Reese)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. By Ahmed Aboulenein and Chris Gallagher WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis on Sunday, but a top government official noted that much more needs to be done. President Joe Biden's administration is seeking to stock empty shelves with 1.5 million containers of Nestle NESN.S specialty infant formulas. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. By Ahmed Aboulenein and Chris Gallagher WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis on Sunday, but a top government official noted that much more needs to be done. Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. By Ahmed Aboulenein and Chris Gallagher WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis on Sunday, but a top government official noted that much more needs to be done. Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. By Ahmed Aboulenein and Chris Gallagher WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to help address a critical shortage in the United States landed in Indianapolis on Sunday, but a top government official noted that much more needs to be done. Biden last week invoked the Cold War-era Defense Production Act to help increase supplies. |
31642.0 | 2022-05-22 00:00:00 UTC | First baby formula shipment arrives from Europe on U.S. military plane | ABT | https://www.nasdaq.com/articles/first-baby-formula-shipment-arrives-from-europe-on-u.s.-military-plane | nan | nan | By Ahmed Aboulenein
WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to address a critical shortage in the United States landed in Indianapolis on Sunday.
A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families.
President Joe Biden's administration is seeking to stock empty shelves with 1.5 million containers of Nestle NESN.S specialty infant formulas. Biden last week invoked the Cold War-era Defense Production Act to help increase supplies.
The Sunday plane is carrying 78,000 pounds (35,380 kg) of specialty infant formula, the White House said.
"There's about enough formula on that plane, specialty medical grade formula, for about a half a million bottles. That's about 15% of the overall national volume this coming week," White House National Economic Council Director Brian Deese told Fox News Sunday.
Agriculture Secretary Tom Vilsack was there to greet the plane.
Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues.
Abbott Chief Executive Robert Ford apologized for the formula shortage on Sunday and promised to fix it, adding that the plant would be reopened in the first week of June, and it would take six-to-eight weeks for products to reach store shelves.
"We're sorry to every family we've let down since our voluntary recall exacerbated our nation’s baby formula shortage," Ford wrote in an opinion column published in the Washington Post.
Ford said the U.S. Food and Drug Administration investigation did not find links between the formula production area of Michigan facility and four cases of sick children but that it did find evidence of bacteria present.
(Reporting by Ahmed Aboulenein, additional reporting by Chris Gallagher, editing by Ross Colvin and Bill Berkrot)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. By Ahmed Aboulenein WASHINGTON, May 22 (Reuters) - A military cargo plane carrying the first shipment of infant formula from Europe to address a critical shortage in the United States landed in Indianapolis on Sunday. President Joe Biden's administration is seeking to stock empty shelves with 1.5 million containers of Nestle NESN.S specialty infant formulas. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. The Sunday plane is carrying 78,000 pounds (35,380 kg) of specialty infant formula, the White House said. Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. Abbott, the biggest U.S. supplier of powder infant formula, closed its Michigan plant following reports of bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply-chain issues. Abbott Chief Executive Robert Ford apologized for the formula shortage on Sunday and promised to fix it, adding that the plant would be reopened in the first week of June, and it would take six-to-eight weeks for products to reach store shelves. | A Feb. 17 recall by top baby formula maker Abbott Laboratories ABT.N and the closing of its manufacturing plant in Sturgis, Michigan has created one of the biggest infant formula shortages in recent history for U.S. families. The Sunday plane is carrying 78,000 pounds (35,380 kg) of specialty infant formula, the White House said. "There's about enough formula on that plane, specialty medical grade formula, for about a half a million bottles. |
31643.0 | 2022-05-21 00:00:00 UTC | What Could the Baby Formula Shortage Mean for Abbott Laboratories? | ABT | https://www.nasdaq.com/articles/what-could-the-baby-formula-shortage-mean-for-abbott-laboratories | nan | nan | With the nation's shelves looking a bit too thin on baby formula products, Abbott Laboratories (NYSE: ABT) is in the hot seat. After voluntarily starting a recall of several of its baby formulas due to dangerous contamination issues in February, a national shortage quickly developed, as the Michigan-based factory operated by the company was one of the country's major suppliers of formula.
Now, people are rightfully worried about where to find the specialty formulas their children need. A nonstop flurry of headlines implicates Abbott Labs in a quickly escalating scandal. Should shareholders think about looking for the door, or will the baby formula shortage matter less to the company's stock price than it seems?
Image source: Getty Images.
Financial impacts are limited so far
Though less than a quarter has elapsed since the formula shortage began, right now, the damage to Abbott's base of revenue isn't something to worry about. In the first quarter, nutritional products accounted for a mere $1.9 billion of its total sales of $11.9 billion. For reference, sales of the company's popular BinaxNOW coronavirus antigen test kits totaled $3.3 billion, so it's important to recognize that formula isn't one of its major product segments. Of the revenue from the nutrition segment, only $847 million came from sales of pediatric formula products. Compared to the same quarter last year when there wasn't a recall, sales shrunk by 18.8% on an organic basis, which is quite sharp, but it's far from catastrophic.
Given that the recall started in February and Abbott reported its Q1 earnings in April, by now, there should be some evidence of the negative impact of the baby formula situation on its share price. But, the total return of its shares dipped by over 4.6% in the last three months, which is no worse than the market's drop of more than 6.3%. That might change if the formula shortage becomes even more painful for the public and criticism of the company's activities intensifies further, though.
Could the controversy continue to spiral?
There's a bit of a fork in the road for Abbott Labs at the moment. In one direction lies the prospect of a rapid return to normal levels of baby formula production as a result of ongoing conversations with regulators at the Food and Drug Agency (FDA) and taking corrective action based on their comments to prevent another set of formula contamination incidents. Once regulators confirm that the company is in good standing, production could resume in as few as two weeks, which would help to alleviate the shortage (and revenue shortfall) over the following months. In this direction, the shortage is a blip that causes some temporary damage to the business' reputation but doesn't inflict direct financial harm to shareholders or prevent the stock's upward march over time.
The other possible direction is more pessimistic, and it entails significant harm to its reputation as well as a high probability of mild but enduring financial harm. Down that road lies an escalation of public criticism of the business, potentially culminating in facing new regulations, lawsuits, and fines. High-profile figures like Pete Buttigieg, secretary of the Department of Transportation, have faulted the company's practices as one of the causes of the shortage.
Elected officials like Representative Rosa DeLauro also weighed in with pointed criticisms, citing reports from a former Abbott employee-turned-whistleblower who alerted the FDA to certain baby formula contamination issues at the Abbott plant a few months before the recall. And internet commentators are focusing particular scrutiny on Abbott's share repurchasing program, which they claim prioritizes shareholder returns over critical investments in manufacturing safety infrastructure.
Right now, things look like they're tipping toward going down the first path, as much of the ongoing spat surrounding the shortage isn't focused on Abbott itself but rather on adjacent (and overtly political) issues. But, any delay in resolving the shortage is guaranteed to exacerbate the situation, even if the delay isn't the company's fault, so shareholders aren't out of the woods yet.
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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. | With the nation's shelves looking a bit too thin on baby formula products, Abbott Laboratories (NYSE: ABT) is in the hot seat. For reference, sales of the company's popular BinaxNOW coronavirus antigen test kits totaled $3.3 billion, so it's important to recognize that formula isn't one of its major product segments. Given that the recall started in February and Abbott reported its Q1 earnings in April, by now, there should be some evidence of the negative impact of the baby formula situation on its share price. | With the nation's shelves looking a bit too thin on baby formula products, Abbott Laboratories (NYSE: ABT) is in the hot seat. After voluntarily starting a recall of several of its baby formulas due to dangerous contamination issues in February, a national shortage quickly developed, as the Michigan-based factory operated by the company was one of the country's major suppliers of formula. In this direction, the shortage is a blip that causes some temporary damage to the business' reputation but doesn't inflict direct financial harm to shareholders or prevent the stock's upward march over time. | With the nation's shelves looking a bit too thin on baby formula products, Abbott Laboratories (NYSE: ABT) is in the hot seat. After voluntarily starting a recall of several of its baby formulas due to dangerous contamination issues in February, a national shortage quickly developed, as the Michigan-based factory operated by the company was one of the country's major suppliers of formula. In one direction lies the prospect of a rapid return to normal levels of baby formula production as a result of ongoing conversations with regulators at the Food and Drug Agency (FDA) and taking corrective action based on their comments to prevent another set of formula contamination incidents. | With the nation's shelves looking a bit too thin on baby formula products, Abbott Laboratories (NYSE: ABT) is in the hot seat. Should shareholders think about looking for the door, or will the baby formula shortage matter less to the company's stock price than it seems? Of the revenue from the nutrition segment, only $847 million came from sales of pediatric formula products. |
31644.0 | 2022-05-20 00:00:00 UTC | Abbott (ABT) Down 8.9% Since Last Earnings Report: Can It Rebound? | ABT | https://www.nasdaq.com/articles/abbott-abt-down-8.9-since-last-earnings-report%3A-can-it-rebound | nan | nan | A month has gone by since the last earnings report for Abbott (ABT). Shares have lost about 8.9% in that time frame, outperforming 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 Q1 Earnings and Revenues Beat Estimates
Abbott reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. The adjusted figure also improved 31.1% from the prior-year quarter.
The quarter’s adjustments include certain non-recurring intangible amortization expenses and other expenses primarily associated with restructuring actions, acquisitions and other expenses.
Reported earnings came in at $1.37, reflecting a 37% rise year on year.
First-quarter worldwide sales of $11.89 billion were up 13.8% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 7.1%. On an organic basis (adjusting for the impact of foreign exchange), sales improved 17.5% year over year in the reported quarter.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals Division (EPD), Medical Devices, Nutrition, and Diagnostics.
In the first quarter, EPD sales improved 7.1% on a reported basis (up 13.4% on an organic basis) to $1.15 billion. Organic sales in key emerging markets improved 17.1% year over year. According to Abbott, organic sales improvement was backed by double-digit growth in several geographies and therapeutic areas, including gastroenterology, respiratory and central nervous system/pain management.
Medical Devices business sales improved 7.4% on a reported basis (up 11.5% on an organic basis) to $3.57 billion. Barring Neuromodulation, all other sub-segments in the quarter reported organic revenue growth.
Diabetes Care reported organic growth of 20.4% year over year led by FreeStyle Libre, which represented 26.2% of organic sales growth in the reported quarter. Heart Failure sales improved 16.2% organically.
Compared with the pre-pandemic figures of 2019, Medical Devices sales improved 17% on a reported basis (up 15.8% on an organic basis) in the fourth quarter. Apart from these two businesses, the company also reported double-digit organic growth in Electrophysiology and Structural Heart wings.
Nutrition sales were down 7% year over year on a reported basis (down 4.4% on an organic basis) to $1.89 billion. Pediatric Nutrition sales registered an 18.8% slump on an organic basis, impacted by a voluntary recall of certain powder formulas manufactured at one of Abbott's U.S. plants.
Adult Nutrition sales however, improved 11.5% organically. According to 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 31.7% year over year on a reported basis (up 35.1% on an organic basis) to $5.29 billion. Core Laboratory Diagnostics sales were up 4.2% organically. However, Molecular Diagnostics declined 3% on an organic basis. Rapid Diagnostics sales improved 60.8% on an organic basis. Point of Care Diagnostics sales rose 0.4% organically.
2022 Guidance
Abbott has reiterated its 2022 Earnings Per Share guidance.
Full-year adjusted earnings from continuing operations (excluding specified items of $1.35 per share) are expected to be 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 upward during the past month.
VGM Scores
At this time, Abbott has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Abbott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A month has gone by 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. | A month has gone by since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q1 Earnings and Revenues Beat Estimates Abbott reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. | A month has gone by since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q1 Earnings and Revenues Beat Estimates Abbott reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. | A month has gone by since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q1 Earnings and Revenues Beat Estimates Abbott reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. |
31645.0 | 2022-05-20 00:00:00 UTC | Abbott completes India recall of baby formula products imported from U.S. | ABT | https://www.nasdaq.com/articles/abbott-completes-india-recall-of-baby-formula-products-imported-from-u.s. | nan | nan | By Leroy Leo
May 20 (Reuters) - Abbott Laboratories' ABT.N India unit has completed a recall of baby formula products that were manufactured at the company's troubled Michigan facility in the United States, a spokesperson for the company said on Friday.
"The voluntary recall in India impacted Alimentum and EleCare (brands). No other Abbott nutrition products, or Similac products, distributed in India were affected by the recall," the spokesperson told Reuters.
Abbott said earlier this week it had reached an agreement with the U.S. health regulator to resume production at the Michigan plant, which has been shut down over reports of bacterial infections in infants who had consumed products made at the facility.
The company recalled dozens of types of Similac, Alimentum and EleCare powdered formulas in the U.S. and internationally following the infections. Similac supplied in India is produced at Abbott's plant in the country's western state of Gujarat.
The Food Safety and Standards Authority of India has been informed about the recall, according to the spokesperson.
The recall in February by Abbott in the United States created one of the most urgent food shortages in recent history for U.S. families, with other baby formula makers stepping up shipments to the country.
EXPLAINER-What happened with Abbott baby formula that worsened a U.S. shortage?
TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies
(Reporting by Leroy Leo in Bengaluru; Editing by Shounak Dasgupta)
((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. | By Leroy Leo May 20 (Reuters) - Abbott Laboratories' ABT.N India unit has completed a recall of baby formula products that were manufactured at the company's troubled Michigan facility in the United States, a spokesperson for the company said on Friday. The company recalled dozens of types of Similac, Alimentum and EleCare powdered formulas in the U.S. and internationally following the infections. The recall in February by Abbott in the United States created one of the most urgent food shortages in recent history for U.S. families, with other baby formula makers stepping up shipments to the country. | By Leroy Leo May 20 (Reuters) - Abbott Laboratories' ABT.N India unit has completed a recall of baby formula products that were manufactured at the company's troubled Michigan facility in the United States, a spokesperson for the company said on Friday. Similac supplied in India is produced at Abbott's plant in the country's western state of Gujarat. TIMELINE-Baby formula crunch in U.S. forces scramble to boost supplies (Reporting by Leroy Leo in Bengaluru; Editing by Shounak Dasgupta) ((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. | By Leroy Leo May 20 (Reuters) - Abbott Laboratories' ABT.N India unit has completed a recall of baby formula products that were manufactured at the company's troubled Michigan facility in the United States, a spokesperson for the company said on Friday. No other Abbott nutrition products, or Similac products, distributed in India were affected by the recall," the spokesperson told Reuters. The recall in February by Abbott in the United States created one of the most urgent food shortages in recent history for U.S. families, with other baby formula makers stepping up shipments to the country. | By Leroy Leo May 20 (Reuters) - Abbott Laboratories' ABT.N India unit has completed a recall of baby formula products that were manufactured at the company's troubled Michigan facility in the United States, a spokesperson for the company said on Friday. The company recalled dozens of types of Similac, Alimentum and EleCare powdered formulas in the U.S. and internationally following the infections. The recall in February by Abbott in the United States created one of the most urgent food shortages in recent history for U.S. families, with other baby formula makers stepping up shipments to the country. |
31646.0 | 2022-05-20 00:00:00 UTC | EXCLUSIVE-Danone ramps up U.S. baby formula shipments to address shortage | ABT | https://www.nasdaq.com/articles/exclusive-danone-ramps-up-u.s.-baby-formula-shipments-to-address-shortage | nan | nan | By Richa Naidu and Lisa Baertlein
LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to address a shortage in the United States, analysis of ocean cargo data by U.S. customs data and shipping consultancy Ocean Audit for Reuters shows.
Danone, the world's second biggest baby milk formula maker but a relatively small player in the United States, shipped much of the product from Britain and the Netherlands by ocean freight through its Nutricia North America arm.
This followed a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families.
Between January and May, Danone's Nutricia division more than tripled its ocean imports to North America, and more than 90% was delivered to the United States, said Steve Ferreira, CEO of Ocean Audit, which analysed the data exclusively for Reuters.
"We understand how important it is for families to access these specialized formulas which is why our absolute priority has been to increase production and supply of these medical formulas to serve the most vulnerable babies since the shortages arose in February," a Danone spokesperson told Reuters.
On May 10, three days before U.S. President Joe Biden took to the airwaves with his plan for addressing the baby formula shortage, the Independent Quest sailed into the Port of Philadelphia to deliver 42,000 cans of Danone formula.
It was rapidly dispatched to Jeffersonville, Indiana to be distributed to retailers that for weeks had to limit how much infant formula mothers could buy.
"If it comes into the port on a Monday, I'm almost certain that they would have it out by Tuesday or Wednesday because the product's so hot," Ferreira said.
Ferreira said his data showed that from Jan. 1 to May 1 2021 Danone Nutricia sent nearly 770,000 cans of infant formula, filling roughly 100 cargo containers, to the North America. During the comparable period this year, the number skyrocketed to more than 2.4 million cans, he said.
Of that product, 93% went to East Coast U.S. ports, while 7% went to ocean gateways in Mexico, Ferreira said.
Separate U.S. customs data analyzed by Reuters shows that on Feb. 22, five days after the Abbott recall, nearly 38,000 kilograms (83,775.66 pounds) of Danone Nutricia cargo arrived in the United States from Britain and the Netherlands.
The customs data did not specify the exact nature of the cargo, but described some of it as "clinical nutrition powder" and "medical nutrition". On March 9, roughly 34,000 kilograms more arrived, followed by nearly 30,000 kilograms on March 30.
Reuters could not obtain records confirming Danone's airborne baby formula imports.
FORMULA SHAKE-UP
The deliveries show how the suspension of Abbott's factory and shortages are shaking up the market, giving some players an opportunity to get a share of the lucrative $4.8 billion U.S. baby formula industry.
"Abbott looks to have lost around 2000 basis points of share, going from 40% share to 20%," Barclays analyst Warren Ackerman estimated on Friday referring to the U.S. market.
Reckitt Benckiser RKT.L, the long-time No.2 player in the United States, told Reuters on Tuesday that it now accounts for more than 50% of total baby formula supply in the country.
The British company said it supplied just over a third of U.S. baby formula prior to Abbott's recall.
(Reporting by Richa Naidu in London and Lisa Baertlein in Los Angeles; Editing by Alexander Smith)
((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. | This followed a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families. Danone, the world's second biggest baby milk formula maker but a relatively small player in the United States, shipped much of the product from Britain and the Netherlands by ocean freight through its Nutricia North America arm. Separate U.S. customs data analyzed by Reuters shows that on Feb. 22, five days after the Abbott recall, nearly 38,000 kilograms (83,775.66 pounds) of Danone Nutricia cargo arrived in the United States from Britain and the Netherlands. | This followed a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to address a shortage in the United States, analysis of ocean cargo data by U.S. customs data and shipping consultancy Ocean Audit for Reuters shows. Danone, the world's second biggest baby milk formula maker but a relatively small player in the United States, shipped much of the product from Britain and the Netherlands by ocean freight through its Nutricia North America arm. | This followed a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to address a shortage in the United States, analysis of ocean cargo data by U.S. customs data and shipping consultancy Ocean Audit for Reuters shows. Danone, the world's second biggest baby milk formula maker but a relatively small player in the United States, shipped much of the product from Britain and the Netherlands by ocean freight through its Nutricia North America arm. | This followed a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for U.S. families. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to address a shortage in the United States, analysis of ocean cargo data by U.S. customs data and shipping consultancy Ocean Audit for Reuters shows. Between January and May, Danone's Nutricia division more than tripled its ocean imports to North America, and more than 90% was delivered to the United States, said Steve Ferreira, CEO of Ocean Audit, which analysed the data exclusively for Reuters. |
31647.0 | 2022-05-20 00:00:00 UTC | EXCLUSIVE-French baby formula maker Danone sharply ramps up U.S. shipments | ABT | https://www.nasdaq.com/articles/exclusive-french-baby-formula-maker-danone-sharply-ramps-up-u.s.-shipments | nan | nan | By Richa Naidu and Lisa Baertlein
LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to the United States, according to U.S. customs data and shipping consultancy Ocean Audit, which analyzed ocean cargo data exclusively for Reuters.
Danone, the world's second biggest baby formula maker but a relatively small player in the U.S. market, shipped much of the product from the United Kingdom and the Netherlands by ocean freight through its Nutricia North America arm after a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N touched off the U.S. shortage.
Between January and May, Danone's Nutricia division more than tripled its ocean imports to North America, and more than 90% was delivered to the United States, Ocean Audit CEO Steve Ferreira said.
Abbott recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for American families.
"We understand how important it is for families to access these specialized formulas which is why our absolute priority has been to increase production and supply of these medical formulas to serve the most vulnerable babies since the shortages arose in February," a Danone spokesperson said.
On May 10, three days before U.S. President Joe Biden took to the airwaveswith his plan for addressing the nation's baby formula shortage, the Independent Quest sailed into the Port of Philadelphia to deliver 42,000 cans of Danone formula.
It was rapidly dispatched to Jeffersonville, Indiana to be distributed to retailers that for weeks had to limit how much infant formula mothers could buy.
"If it comes into the port on a Monday, I'm almost certain that they would have it out by Tuesday or Wednesday because the product's so hot," Ferreira said.
Ferreira said his data showed that from Jan. 1 to May 1 2021 Danone Nutricia sent nearly 770,000 cans of infant formula, filling roughly 100 cargo containers, to the North America. During the comparable period this year, the number skyrocketed to more than 2.4 million cans, he said.
Of that product, 93% went to East Coast U.S. ports, while 7% went to ocean gateways in Mexico, Ferreira said.
Separate U.S. customs data analyzed by Reuters shows that on Feb. 22, five days after the Abbott recall, nearly 38,000 kilograms (83,775.66 pounds) of Danone Nutricia cargo arrived in the United States from the United Kingdom and the Netherlands. The customs data did not specify the exact nature of the cargo, but described some of it as "clinical nutrition powder" and "medical nutrition". On March 9, roughly 34,000 kilograms more cargo arrived, followed by nearly 30,000 kilograms on March 30.
Reuters could not obtain records confirming Danone's airborne baby formula imports.
(Reporting by Richa Naidu in London and Lisa Baertlein in Los Angeles.)
((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. | Danone, the world's second biggest baby formula maker but a relatively small player in the U.S. market, shipped much of the product from the United Kingdom and the Netherlands by ocean freight through its Nutricia North America arm after a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N touched off the U.S. shortage. Abbott recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for American families. Ferreira said his data showed that from Jan. 1 to May 1 2021 Danone Nutricia sent nearly 770,000 cans of infant formula, filling roughly 100 cargo containers, to the North America. | Danone, the world's second biggest baby formula maker but a relatively small player in the U.S. market, shipped much of the product from the United Kingdom and the Netherlands by ocean freight through its Nutricia North America arm after a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N touched off the U.S. shortage. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to the United States, according to U.S. customs data and shipping consultancy Ocean Audit, which analyzed ocean cargo data exclusively for Reuters. Ferreira said his data showed that from Jan. 1 to May 1 2021 Danone Nutricia sent nearly 770,000 cans of infant formula, filling roughly 100 cargo containers, to the North America. | Danone, the world's second biggest baby formula maker but a relatively small player in the U.S. market, shipped much of the product from the United Kingdom and the Netherlands by ocean freight through its Nutricia North America arm after a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N touched off the U.S. shortage. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to the United States, according to U.S. customs data and shipping consultancy Ocean Audit, which analyzed ocean cargo data exclusively for Reuters. Separate U.S. customs data analyzed by Reuters shows that on Feb. 22, five days after the Abbott recall, nearly 38,000 kilograms (83,775.66 pounds) of Danone Nutricia cargo arrived in the United States from the United Kingdom and the Netherlands. | Danone, the world's second biggest baby formula maker but a relatively small player in the U.S. market, shipped much of the product from the United Kingdom and the Netherlands by ocean freight through its Nutricia North America arm after a Feb. 17 recall by top manufacturer Abbott Laboratories ABT.N touched off the U.S. shortage. By Richa Naidu and Lisa Baertlein LONDON/LOS ANGELES, May 20 (Reuters) - Aptamil maker Danone SA DANO.PA has stepped up shipments of infant formula from Europe to the United States, according to U.S. customs data and shipping consultancy Ocean Audit, which analyzed ocean cargo data exclusively for Reuters. Between January and May, Danone's Nutricia division more than tripled its ocean imports to North America, and more than 90% was delivered to the United States, Ocean Audit CEO Steve Ferreira said. |
31648.0 | 2022-05-19 00:00:00 UTC | Abbott baby formula plant in Michigan on track to reopen in 1-2 weeks | ABT | https://www.nasdaq.com/articles/abbott-baby-formula-plant-in-michigan-on-track-to-reopen-in-1-2-weeks | nan | nan | By Ahmed Aboulenein and Susan Heavey
WASHINGTON, May 19 (Reuters) - Abbott Laboratories ABT.N and the U.S. Food and Drug Administration are on track to reopen the company's Sturgis, Michigan, baby formula manufacturing plant within one or two weeks, FDA Commissioner Robert Califf said on Thursday.
Abbott, the biggest U.S. supplier of powder infant formula including Similac, on Monday agreed with the FDA on steps needed to resume production at the manufacturing plant.
"I think we are on track to get it open within the next week to two weeks, most likely at the outer bound two weeks," Califf told lawmakers at a U.S. House of Representatives Appropriations Subcommittee hearing.
The company had initiated a recall of its infant formula products and closed the plant in February after reports of serious bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply chain issues.
The FDA cannot conclude whether cases of ill babies are directly related to the Abbott plant until its investigation is concluded, Califf said.
Abbott, FDA reach agreement to reopen baby formula facility in Michigan
(Reporting by Ahmed Aboulenein and Susan Heavey; Editing by Franklin Paul and Chizu Nomiyama)
((ahmed.aboulenein@tr.com; +1 202-519-3051;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein and Susan Heavey WASHINGTON, May 19 (Reuters) - Abbott Laboratories ABT.N and the U.S. Food and Drug Administration are on track to reopen the company's Sturgis, Michigan, baby formula manufacturing plant within one or two weeks, FDA Commissioner Robert Califf said on Thursday. Abbott, the biggest U.S. supplier of powder infant formula including Similac, on Monday agreed with the FDA on steps needed to resume production at the manufacturing plant. Abbott, FDA reach agreement to reopen baby formula facility in Michigan (Reporting by Ahmed Aboulenein and Susan Heavey; Editing by Franklin Paul and Chizu Nomiyama) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein and Susan Heavey WASHINGTON, May 19 (Reuters) - Abbott Laboratories ABT.N and the U.S. Food and Drug Administration are on track to reopen the company's Sturgis, Michigan, baby formula manufacturing plant within one or two weeks, FDA Commissioner Robert Califf said on Thursday. The company had initiated a recall of its infant formula products and closed the plant in February after reports of serious bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply chain issues. Abbott, FDA reach agreement to reopen baby formula facility in Michigan (Reporting by Ahmed Aboulenein and Susan Heavey; Editing by Franklin Paul and Chizu Nomiyama) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein and Susan Heavey WASHINGTON, May 19 (Reuters) - Abbott Laboratories ABT.N and the U.S. Food and Drug Administration are on track to reopen the company's Sturgis, Michigan, baby formula manufacturing plant within one or two weeks, FDA Commissioner Robert Califf said on Thursday. The company had initiated a recall of its infant formula products and closed the plant in February after reports of serious bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply chain issues. Abbott, FDA reach agreement to reopen baby formula facility in Michigan (Reporting by Ahmed Aboulenein and Susan Heavey; Editing by Franklin Paul and Chizu Nomiyama) ((ahmed.aboulenein@tr.com; +1 202-519-3051;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Ahmed Aboulenein and Susan Heavey WASHINGTON, May 19 (Reuters) - Abbott Laboratories ABT.N and the U.S. Food and Drug Administration are on track to reopen the company's Sturgis, Michigan, baby formula manufacturing plant within one or two weeks, FDA Commissioner Robert Califf said on Thursday. Abbott, the biggest U.S. supplier of powder infant formula including Similac, on Monday agreed with the FDA on steps needed to resume production at the manufacturing plant. The company had initiated a recall of its infant formula products and closed the plant in February after reports of serious bacterial infections in four infants, worsening a shortage among multiple manufacturers that began with pandemic supply chain issues. |
31649.0 | 2022-05-19 00:00:00 UTC | Abbott Presents Data Reinforcing Impact Of Its Minimally Invasive Heart Devices | ABT | https://www.nasdaq.com/articles/abbott-presents-data-reinforcing-impact-of-its-minimally-invasive-heart-devices | nan | nan | (RTTNews) - Abbott (ABT) said data highlighting both TriClip, a minimally invasive tricuspid heart valve repair device, and Navitor, the company's latest-generation transcatheter aortic valve implantation system reinforced the impact of the company's minimally invasive heart devices on patient outcomes and quality of life. The 30-day results from the TriClip bRIGHT study showed that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems significantly reduce tricuspid regurgitation and substantially improve quality of life across a wide range of anatomically diverse patients.
The data from the international, single arm study of the Navitor TAVI system with an active sealing cuff to minimize paravalvular leak showed improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk.
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 data highlighting both TriClip, a minimally invasive tricuspid heart valve repair device, and Navitor, the company's latest-generation transcatheter aortic valve implantation system reinforced the impact of the company's minimally invasive heart devices on patient outcomes and quality of life. The 30-day results from the TriClip bRIGHT study showed that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems significantly reduce tricuspid regurgitation and substantially improve quality of life across a wide range of anatomically diverse patients. The data from the international, single arm study of the Navitor TAVI system with an active sealing cuff to minimize paravalvular leak showed improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk. | (RTTNews) - Abbott (ABT) said data highlighting both TriClip, a minimally invasive tricuspid heart valve repair device, and Navitor, the company's latest-generation transcatheter aortic valve implantation system reinforced the impact of the company's minimally invasive heart devices on patient outcomes and quality of life. The 30-day results from the TriClip bRIGHT study showed that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems significantly reduce tricuspid regurgitation and substantially improve quality of life across a wide range of anatomically diverse patients. The data from the international, single arm study of the Navitor TAVI system with an active sealing cuff to minimize paravalvular leak showed improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk. | (RTTNews) - Abbott (ABT) said data highlighting both TriClip, a minimally invasive tricuspid heart valve repair device, and Navitor, the company's latest-generation transcatheter aortic valve implantation system reinforced the impact of the company's minimally invasive heart devices on patient outcomes and quality of life. The 30-day results from the TriClip bRIGHT study showed that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems significantly reduce tricuspid regurgitation and substantially improve quality of life across a wide range of anatomically diverse patients. 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 data highlighting both TriClip, a minimally invasive tricuspid heart valve repair device, and Navitor, the company's latest-generation transcatheter aortic valve implantation system reinforced the impact of the company's minimally invasive heart devices on patient outcomes and quality of life. The 30-day results from the TriClip bRIGHT study showed that the TriClip and TriClip G4 transcatheter edge-to-edge repair systems significantly reduce tricuspid regurgitation and substantially improve quality of life across a wide range of anatomically diverse patients. The data from the international, single arm study of the Navitor TAVI system with an active sealing cuff to minimize paravalvular leak showed improved one-year outcomes for patients with severe, symptomatic aortic stenosis who were at high or extreme surgical risk. |
31650.0 | 2022-05-19 00:00:00 UTC | The Zacks Analyst Blog Highlights Alibaba, McDonald, Advanced Micro Devices, Abbott Laboratories, and Vertex Pharmaceuticals | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-alibaba-mcdonald-advanced-micro-devices-abbott | nan | nan | For Immediate Release
Chicago, IL – May 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:Alibaba Group Holding Ltd. BABA, McDonald's Corp. MCD, Advanced Micro Devices, Inc. AMDAbbott Laboratories ABT, and Vertex Pharmaceuticals Inc. VRTX.
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Alibaba, McDonald's and AMD
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 Alibaba Group Holding Ltd., McDonald's Corp., and Advanced Micro Devices, Inc.. 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 >>>
Alibaba shares have declined -27.3% in the year-to-date period, inline with the Zacks Tech sector's performance and better than Amazon's -33.5% decline. The uncertain outlook for Alibaba's home market given China's zero-Covid policy is exacerbating sentiment shifts in the market against growth stocks in a rising interest rate environment. While these are reasonable worries and they could very well weigh on the stock some more, the company's competitive position in the Chinese market has never been stronger.
Further, its robust New Retail strategy which is gaining strong traction in the market remains a major positive. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores. Furthermore, well-performing Cainiao logistics services are contributing well. Additionally, the company's strengthening cloud business on the back of its expanding customer base continues to drive its performance.
(You can read the full research report on Alibaba here >>>)
Shares of McDonald's have outperformed the Zacks Retail - Restaurants industry over the past year (+4.4% vs. -16.8%) on the back of robust comps growth. The Zacks analyst believes that the strong drive-thru presence and its investments in delivery and digitization over the past few years have aided McDonald's in countering the pandemic. Robust digitalization will help the company in driving long-term growth and capturing market share.
The company is focusing on store expansion efforts. It is planning to open more than 1,800 restaurants globally in 2022. However, coronavirus-related woes persist. In first-quarter 2022, comps in the China market were hurt by the pandemic.
(You can read the full research report on McDonald's here >>>)
Shares of Advanced Micro Devices have outperformed the Zacks Electronics - Semiconductors industry over the past year (+34.5% vs. +25.2%). The Zacks analyst believes that the company is benefiting from the strong demand of its Ryzen and EPYC server processors, owing to the increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud, gaming and data center. The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst.
AMD provided strong 2022 guidance for revenues backed by robust growth across all businesses. Higher server and client processor revenues are likely to lead to a sequential increase. The Xilinx and Pensando acquisition will boost AMD's data center business. Alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. However, stiff competition from NVIDIA and Intel is a concern.
(You can read the full research report on Advanced Micro Devices here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories, and Vertex Pharmaceuticals Inc.
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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. | Stocks recently featured in the blog include:Alibaba Group Holding Ltd. BABA, McDonald's Corp. MCD, Advanced Micro Devices, Inc. AMDAbbott Laboratories ABT, and Vertex Pharmaceuticals Inc. VRTX. Abbott Laboratories (ABT): Free Stock Analysis Report (You can read the full research report on Alibaba here >>>) Shares of McDonald's have outperformed the Zacks Retail - Restaurants industry over the past year (+4.4% vs. -16.8%) on the back of robust comps growth. | Stocks recently featured in the blog include:Alibaba Group Holding Ltd. BABA, McDonald's Corp. MCD, Advanced Micro Devices, Inc. AMDAbbott Laboratories ABT, and Vertex Pharmaceuticals Inc. VRTX. Abbott Laboratories (ABT): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Alibaba Group Holding Ltd., McDonald's Corp., and Advanced Micro Devices, Inc.. | Stocks recently featured in the blog include:Alibaba Group Holding Ltd. BABA, McDonald's Corp. MCD, Advanced Micro Devices, Inc. AMDAbbott Laboratories ABT, and Vertex Pharmaceuticals Inc. VRTX. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for Alibaba, McDonald's and AMD The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include:Alibaba Group Holding Ltd. BABA, McDonald's Corp. MCD, Advanced Micro Devices, Inc. AMDAbbott Laboratories ABT, and Vertex Pharmaceuticals Inc. VRTX. Abbott Laboratories (ABT): Free Stock Analysis Report (You can read the full research report on Alibaba here >>>) Shares of McDonald's have outperformed the Zacks Retail - Restaurants industry over the past year (+4.4% vs. -16.8%) on the back of robust comps growth. |
31651.0 | 2022-05-19 00:00:00 UTC | These 3 Stocks Have Doubled Over the Past 3 Years. Can They Do It Again? | ABT | https://www.nasdaq.com/articles/these-3-stocks-have-doubled-over-the-past-3-years.-can-they-do-it-again | nan | nan | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. All three have the potential to double their shares again over the next three years because of their stability, consistent revenue growth, and attractive dividends.
On top of that, none of them are overvalued, all trading below three times earnings. So even though their stocks may take an occasional tumble, they won't likely fall too far.
Image source: Getty Images.
1. Carlisle Companies: quietly forging ahead
Carlisle Companies was trading at $105.07 a little more than two years ago. Now, its shares are about $245 a pop, and they are up more than 25% over the past year.
Carlisle has its own built-in diversity of sales, as it is four companies under one umbrella: Carlisle Construction Materials, Carlisle Waterproofing Technologies, Carlisle Interconnect Technologies, and Carlisle Fluid Technologies. These companies manufacture and supply engineered materials to be used by original manufacturers. Because Carlisle sells to businesses, it is lesser-known by average consumers, but it brought in $4.8 billion in revenue last year and it plans to grow annual revenue to $8 billion by 2025.
Carlisle is coming off a record $1.5 billion in revenue in the first quarter, up 59% year over year. Earnings per share (EPS) were $3.67, an increase of 209% over the prior year. It also improved its operating margin to 18.5% in the first quarter, up from 9% in the same quarter last year.
While all of its businesses did well, Carlisle Waterproofing Technologies was the biggest driver, with revenue of $359.1 million, up 120.4% over the same period in 2021, and operating income of $37.5 million, up 253.8% year over year. The company said the reason for that increase is the company's $1.6 billion acquisition last September of the Henry Company, which provides building systems that control the flow of water, vapor, and energy, serving construction and repair projects in residential, light commercial, and commercial end-markets.
Carlisle has increased its dividend every year for 45 years, including a 3% raise last year to $0.54 per share, which works out to a yield of 0.87%. That's not exactly splashy but perfectly safe, as the company's annual cash dividend payout ratio is 39.21%.
2. Innovative Industrial Properties continues to grow
Innovative Industrial Properties was below $60 a share in March 2020. As of earlier this week, it was trading at $133 a share, and that's after falling more than 49% this year. Innovative, as the first and most prominent real estate investment trust (REIT) to work exclusively on lease buybacks with cannabis companies, has taken a hit to its shares at the same time its tenants' shares have fallen, but the company's business model appears solid.
It's no stretch to say that the company's shares could trade for double what they are today because they were trading for just under $280 a share last November. In the interim, the company's financials remained strong, even though investor confidence in the stock fell.
In the first quarter, Innovative reported revenue of $64.5 million, up 50% year over year, while EPS was $1.32, compared with $1.05 in the same period in 2021. More importantly for a REIT, its funds from operations (FFO) were $48.9 million, with an FFO per share of $1.86, up from $34.4 million and $1.39 in the first quarter of 2021.
The company raised its dividend in the first quarter by 17% to $1.75 per share, representing a yield of 5.26%. The company has boosted its dividend by 68% over the past three years, but its adjusted FFO payout ratio of 79% is considered safe, particularly for a REIT.
IIPR has shown stronger growth than a typical REIT because it has been vigorous in adding new properties. As of May 16, it owned 110 properties comprising roughly 8.2 million rentable square feet. That's up from 19 properties comprising 1.3 million rentable square feet just three years ago.
The big concern among investors is what happens with the company's business model if federal laws are passed making it easier for cannabis companies to get regular financing. I think that concern is more than made up for by the continued growth of the industry, showing cannabis companies will continue to do leasebacks to free up cash for expansion. IIPR's size and first-to-market status should continue to make it the go-to REIT in the industry.
3. AbbVie's deep pipeline keeps paying off
AbbVie is trading for $155 a share. A little over two years ago, it was trading at just under $69 a share. Despite all the turmoil in the market this year, the giant pharmaceutical company remains a bright spot, with shares up more than 10% so far in 2022.
In the company's first quarter, it reported revenue of $13.5 billion, up 4.1% year over year, and EPS of $2.51, up 26% over the first quarter of 2021.
AbbVie isn't as reliant on blockbuster immunology drug Humira as some think. While its sales declined 2.7% (including a drop of 22.6% outside the United States because of biosimilar competition), the company's other immunology drugs, Skyrizi and Rinvoq, continue to grow in sales. Skyrizi had $940 million in revenue in the quarter, up 63.7%, year over, and Rinvoq had $465 million in revenue, up 53.6% from the same period last year. In addition, the company's aesthetics and neuroscience franchises were up 20.5% and 19.2%, respectively, year over year.
There's likely to be plenty of growth ahead as the company expands the label uses for Skyrizi and Rinvoq, along with cashing in on a strong oncology portfolio, led by blood cancer therapies Venclexta ($473 million in revenue in the quarter) and Imbruvica, which brought in $1.2 billion in revenue in the quarter.
Then there's AbbVie's dividend, which it raised this year by 8.5% to $1.41 per share, giving it a yield of roughly 3.71%, which dwarfs that of most pharmaceutical companies. Counting its time as part of Abbott Labs, AbbVie has raised its dividend each year for 50 consecutive years (making it a Dividend King) and by 250% since it broke off from Abbott in 2013. Its annual cash dividend payout yield is only 42%, so there's room for more dividend increases.
Doubling down on doubling your returns
Of the three, Innovative Industrial Properties might have an easier time doubling its share price over the next three years since it previously hit $280 a share last November. Any movement toward more states legalizing marijuana sales would likely push the stock back up, as long as the company's financials remain strong.
I could easily see AbbVie doubling its share price within the next three years, particularly if it continues to watch its other immunology drugs other than Humira grow revenue. Because of its higher price, Carlisle Companies would have the most difficult time doubling its share price in three years, but the company is probably the safest bet of the three companies to continue rising. If it reaches its goal of $8 billion in revenue by 2025, its shares could double from where they are now.
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Jim Halley has positions in AbbVie, Carlisle Companies, and Innovative Industrial Properties. The Motley Fool has positions in and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has boosted its dividend by 68% over the past three years, but its adjusted FFO payout ratio of 79% is considered safe, particularly for a REIT. Any movement toward more states legalizing marijuana sales would likely push the stock back up, as long as the company's financials remain strong. I could easily see AbbVie doubling its share price within the next three years, particularly if it continues to watch its other immunology drugs other than Humira grow revenue. | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. Carlisle has its own built-in diversity of sales, as it is four companies under one umbrella: Carlisle Construction Materials, Carlisle Waterproofing Technologies, Carlisle Interconnect Technologies, and Carlisle Fluid Technologies. As of May 16, it owned 110 properties comprising roughly 8.2 million rentable square feet. | Carlisle Companies (NYSE: CSL), Innovative Industrial Properties (NYSE: IIPR) and AbbVie (NYSE: ABBV) have all seen shares double over the past three years. Carlisle has increased its dividend every year for 45 years, including a 3% raise last year to $0.54 per share, which works out to a yield of 0.87%. Because of its higher price, Carlisle Companies would have the most difficult time doubling its share price in three years, but the company is probably the safest bet of the three companies to continue rising. | Carlisle has increased its dividend every year for 45 years, including a 3% raise last year to $0.54 per share, which works out to a yield of 0.87%. Innovative Industrial Properties continues to grow Innovative Industrial Properties was below $60 a share in March 2020. Skyrizi had $940 million in revenue in the quarter, up 63.7%, year over, and Rinvoq had $465 million in revenue, up 53.6% from the same period last year. |
31652.0 | 2022-05-18 00:00:00 UTC | Biden invokes Defense Production Act to increase infant formula supply | ABT | https://www.nasdaq.com/articles/biden-invokes-defense-production-act-to-increase-infant-formula-supply | nan | nan | Adds details
WASHINGTON, May 18 (Reuters) - President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said.
Biden also directed U.S. agencies to use Defense Department commercial aircraft to bring formula into the United States from overseas.
Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections.
On Monday, Abbott said it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, a major step toward resolving the nationwide shortage.
In a letter to Health and Human Services Secretary Xavier Becerra and Agriculture Secretary Tom Vilsack, Biden noted that the industry should be producing more formula in the coming weeks and months.
"Imports of baby formula will serve as a bridge to this ramped-up production. Therefore I am requesting you take all appropriate measures available to get additional safe formula into the country immediately," he said.
The White House said Biden was invoking the Defense Production Act to ensure manufacturers have the ingredients to make safe formula.
"The president is requiring suppliers to direct needed resources to infant formula manufacturers before any other customer who may have ordered that good," the White House said.
In addition, he launched "Operation Fly Formula" to hasten imports of infant formula and get more formula to stores quickly.
Biden has directed HHS and USDA to use military commercial aircraft to pick up overseas infant formula that meets U.S. health and safety standards.
"Bypassing regular air freighting routes will speed up the importation and distribution of formula and serve as an immediate support as manufacturers continue to ramp up production," the White House said.
(Reporting by Eric Beech and Steve Holland; Editing by Tim Ahmann and David Gregorio)
((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.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. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. Adds details WASHINGTON, May 18 (Reuters) - President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said. On Monday, Abbott said it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, a major step toward resolving the nationwide shortage. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. Adds details WASHINGTON, May 18 (Reuters) - President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said. Biden also directed U.S. agencies to use Defense Department commercial aircraft to bring formula into the United States from overseas. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. Adds details WASHINGTON, May 18 (Reuters) - President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said. The White House said Biden was invoking the Defense Production Act to ensure manufacturers have the ingredients to make safe formula. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. Adds details WASHINGTON, May 18 (Reuters) - President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said. The White House said Biden was invoking the Defense Production Act to ensure manufacturers have the ingredients to make safe formula. |
31653.0 | 2022-05-18 00:00:00 UTC | Top Stock Reports for Alibaba, McDonald's & Advanced Micro Devices | ABT | https://www.nasdaq.com/articles/top-stock-reports-for-alibaba-mcdonalds-advanced-micro-devices | nan | nan | Wednesday, May 18, 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 Alibaba Group Holding Limited (BABA), McDonald's Corporation (MCD), and Advanced Micro Devices, Inc. (AMD). 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 >>>
Alibaba shares have declined -27.3% in the year-to-date period, inline with the Zacks Tech sector's performance and better than Amazon's -33.5% decline. The uncertain outlook for Alibaba's home market given China's zero-Covid policy is exacerbating sentiment shift in the market against growth stocks in a rising interest rate environment. While these are reasonable worries and they could very well weigh on the stock some more, the company's competitive position in the Chinese market has never been stronger.
Further, its robust New Retail strategy which is gaining strong traction in the market remains a major positive. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores. Furthermore, well-performing Cainiao logistics services are contributing well. Additionally, the company’s strengthening cloud business on the back of its expanding customer base continues to drive its performance.
(You can read the full research report on Alibaba here >>>)
Shares of McDonald's have outperformed the Zacks Retail - Restaurants industry over the past year (+4.4% vs. -16.8%) on the back of robust comps growth. The Zacks analyst believes that the strong drive-thru presence and its investments in delivery and digitization over the past few years have aided McDonald’s in countering the pandemic. Robust digitalization will help the company in driving long-term growth and capturing market share.
The company is focusing on store expansion efforts. It is planning to open more than 1,800 restaurants globally in 2022. However, coronavirus-related woes persist. In first-quarter 2022, comps in the China market were hurt by pandemic.
(You can read the full research report on McDonald’s here >>>)
Shares of Advanced Micro Devices have outperformed the Zacks Electronics - Semiconductors industry over the past year (+34.5% vs. +25.2%). The Zacks analyst believes that the company is benefiting from the strong demand of its Ryzen and EPYC server processors, owing to the increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud, gaming and data center. The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst.
AMD provided strong 2022 guidance for revenues backed by robust growth across all businesses. Higher server and client processor revenues are likely to lead to a sequential increase. The Xilinx and Pensando acquisition will boost AMD's data center business. Alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. However, stiff competition from NVIDIA and Intel is a concern.
(You can read the full research report on Advanced Micro Devices here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Medtronic plc (MDT), and Vertex Pharmaceuticals Incorporated (VRTX).
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
Retail & Cloud Businesses Momentum Benefits Alibaba (BABA)
Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay
Robust Product Portfolio & Partnerships Aid AMD's Prospects
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Abbott's (ABT) Diagnostics Arm Grows Amid Forex Headwinds
The Zacks analyst is upbeat about the strong revenue growth within Abbott's (ABT) Diagnostics segment. However, unfavorable foreign exchange movements continued to impact sales performance.
Diabetes Arm View Bright for Medtronic (MDT) Amid Forex Woes
The Zacks analyst is optimistic about Medtronic's growth opportunities within diabetes arm banking on strong adoption of Insulin pumps. Yet, foreign exchange woes remain a concern.
Vertex (VRTX) Cystic Fibrosis Sales Up, Non-CF Pipeline Solid
Vertex's cystic franchise (CF) sales are rising driven by Trikafta. The Zacks analyst is encouraged by the rapid progress of its non-CF pipeline with data from multiple programs presented in 2022.
Solid Medicaid Business Drives Humana (HUM) Amid High Costs
Per the Zacks Analyst, robust Medicaid business backed by several contract wins has helped the company to drive top-line growth. However, escalating expenses continue to weigh on margins.
Amid Competition, Multi Basin Assets Aids Devon Energy (DVN)
Per the Zacks analyst Devon Energy (DVN) high-margin multi basin assets provides support to its performance amid the highly competitive oil and gas industry.
Solid Investments Aid DTE Energy (DTE), Weak Solvency Woes
Per the Zacks analyst, DTE Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
Gartner (IT) Benefits From CEB Acquisition, Advisory Strength
Per the Zacks analyst, the blend of its analyst-driven advisory services with CEBs best practice and talent management insights helps Gartner provide differentiated suite of services portfolio.
New Upgrades
Service Corporation (SCI) Gains on Strong Funeral Segment
Per the Zacks analyst, Service Corporation is gaining on solid Funeral unit sales, as the percentage of families choosing funeral services is increasing. Funeral revenues rose 4.8% in first quarter.
Higher Prices, Big River Investment Drive U.S. Steel (X)
Per the Zacks analyst, the Big River investment has strengthened U.S. Steel's position in high-margin steel-end markets. Higher steel prices should also drive its profitability.
Sunoco (SUN) to Gain From Rising Motor Fuel Sale Volume
Per the Zacks analyst, Sunoco is cashing in on higher motor fuel sale volume, which is being distributed to convenient stores. This will get translated to increased distributable cash flows.
New Downgrades
High Commodity Costs to Take a Toll on Toyota's (TM) Margins
A sharp rise in raw material costs is likely to slash Toyota's fiscal 2023 profits by 20%. The Zacks analyst is also worried of high R&D expenses and capex, which may limit cash flows.
Supply Chain Troubles & Higher Costs to Hurt Ubiquiti (UI)
Per the Zacks analyst, pandemic induced global supply chain troubles and component shortages is a major concern for Ubiquiti. Higher operating costs is another headwind.
Supply Chain Disruptions to Hit Grocery Outlet's (GO) Margin
Per the Zacks analyst, supply chain bottlenecks, increased labor and transportation expenses, and higher commodity costs may hit Grocery Outlet's margin. Gross margin shrunk 60 bps in first quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Abbott Laboratories (ABT): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Medtronic PLC (MDT): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): 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 Retail & Cloud Businesses Momentum Benefits Alibaba (BABA) Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Robust Product Portfolio & Partnerships Aid AMD's Prospects Featured Reports Abbott's (ABT) Diagnostics Arm Grows Amid Forex Headwinds The Zacks analyst is upbeat about the strong revenue growth within Abbott's (ABT) Diagnostics segment. (You can read the full research report on Advanced Micro Devices here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Medtronic plc (MDT), and Vertex Pharmaceuticals Incorporated (VRTX). 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 Retail & Cloud Businesses Momentum Benefits Alibaba (BABA) Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Robust Product Portfolio & Partnerships Aid AMD's Prospects Featured Reports Abbott's (ABT) Diagnostics Arm Grows Amid Forex Headwinds The Zacks analyst is upbeat about the strong revenue growth within Abbott's (ABT) Diagnostics segment. (You can read the full research report on Advanced Micro Devices here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Medtronic plc (MDT), and Vertex Pharmaceuticals Incorporated (VRTX). 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 Retail & Cloud Businesses Momentum Benefits Alibaba (BABA) Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Robust Product Portfolio & Partnerships Aid AMD's Prospects Featured Reports Abbott's (ABT) Diagnostics Arm Grows Amid Forex Headwinds The Zacks analyst is upbeat about the strong revenue growth within Abbott's (ABT) Diagnostics segment. (You can read the full research report on Advanced Micro Devices here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Medtronic plc (MDT), and Vertex Pharmaceuticals Incorporated (VRTX). Abbott Laboratories (ABT): Free Stock Analysis Report | (You can read the full research report on Advanced Micro Devices here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Medtronic plc (MDT), and Vertex Pharmaceuticals Incorporated (VRTX). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Retail & Cloud Businesses Momentum Benefits Alibaba (BABA) Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Robust Product Portfolio & Partnerships Aid AMD's Prospects Featured Reports Abbott's (ABT) Diagnostics Arm Grows Amid Forex Headwinds The Zacks analyst is upbeat about the strong revenue growth within Abbott's (ABT) Diagnostics segment. Abbott Laboratories (ABT): Free Stock Analysis Report |
31654.0 | 2022-05-17 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABT | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-0 | nan | nan | Pharma giant AbbVie (NYSE: ABBV) has rewarded shareholders in the past decade with market-beating performance. That is especially noteworthy considering many pharma companies struggled through much of the 2010s as evidenced by the fact that the SPDR S&P Pharmaceutical ETF -- an industry benchmark -- substantially lagged the market in this period. AbbVie's strong showing was primarily a result of its top-selling drug, Humira.
However, Humira lost patent exclusivity in Europe in 2018, and it will start facing generics in the U.S. next year. How will AbbVie fare post-Humira? If the company manages to replace the medicine, it could deliver many more years of solid performances. Let's look closer at whether it is still worth it to purchase shares of AbbVie today.
ABBV Total Return Level data by YCharts
Recent financial results
AbbVie's shares dropped about 10% after it released its first-quarter results. The company's update wasn't that bad; revenue increased by a modest 4.1% year over year to $13.5 billion. Sales of Humira declined by 2.7% year over year to $4.7 billion. That's hardly surprising, considering that the rheumatoid arthritis medicine continues to face generic competition in various international markets. AbbVie's adjusted earnings per share increased by 9.3% to $3.16.
So why did AbbVie's shares drop on the heels of its earnings release? The sell-off likely happened due to a drop in sales of various products, especially cancer drug Imbruvica. Revenue from the medicine declined by 7.4% year over year to $1.2 billion as a result of competition from other cancer drugs.
Image source: Getty Images.
While it's never a good thing when sales of one of a pharmaceutical company's products decline, Imbruvica was already facing issues before this quarter. Last year, AbbVie's global revenue from Imbruvica increased by a meager 1.8% to $5.4 billion. This unimpressive result was also due in part to stiffer competition on the market. The good news for AbbVie is that some of its most important products that will replace Humira are still performing well.
These include immunosuppressants Skyrizi and Rinvoq, which will soon have earned approvals across all of Humira's major indications. In the first quarter, sales of Skyrizi increased by 63.7% year over year to $940 million while Rinvoq's sales grew by 53.6% year over year to $465 million. AbbVie expects these two products to generate more than $15 billion in revenue in 2025.
Note that Humira hit its peak sales last year at $20.7 billion. Once generics enter the U.S. market, Humira's revenue won't immediately drop to zero. The therapy will continue contributing to AbbVie's top line for a while longer.
Meanwhile, some of the company's other segments are performing well, too. Sales of AbbVie's aesthetics unit -- spearheaded by Botox Cosmetics -- grew by 20.5% year over year to $1.4 billion. With Botox Therapeutics at the helm, the company's neuroscience division reported revenue of $1.5 billion, 19.2% higher than the year-ago period. AbbVie's lineup looks increasingly ready for a post-Humira world.
Still worth buying
Despite Humira's impending loss of exclusivity in the U.S., AbbVie remains an excellent stock. First, as we have already seen, the company's lineup is strong enough to handle the inevitable sales drop that Humira will experience once it starts facing generic competition in the U.S. With the potential for label expansions and brand new drugs, AbbVie's pipeline will also be instrumental in helping the company keep its revenue afloat. The drugmaker is currently running dozens of clinical trials.
Second, AbbVie looks attractively valued at the moment with a forward price-to-earnings (P/E) ratio of 10.9, compared to an average of 12.8 for the pharmaceutical industry. Third, AbbVie is an excellent stock for dividend-seeking investors. The company offers a juicy yield of 3.67%-- which is much higher than the S&P 500's yield of 1.37%. AbbVie is a Dividend King, having raised its payouts for 50 consecutive years (including its time under the wing of medical-devices specialist Abbott Laboratories).
AbbVie will continue to provide growth and income to patient investors. It's far too early to jump off this boat.
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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. | That is especially noteworthy considering many pharma companies struggled through much of the 2010s as evidenced by the fact that the SPDR S&P Pharmaceutical ETF -- an industry benchmark -- substantially lagged the market in this period. With Botox Therapeutics at the helm, the company's neuroscience division reported revenue of $1.5 billion, 19.2% higher than the year-ago period. AbbVie is a Dividend King, having raised its payouts for 50 consecutive years (including its time under the wing of medical-devices specialist Abbott Laboratories). | Revenue from the medicine declined by 7.4% year over year to $1.2 billion as a result of competition from other cancer drugs. While it's never a good thing when sales of one of a pharmaceutical company's products decline, Imbruvica was already facing issues before this quarter. In the first quarter, sales of Skyrizi increased by 63.7% year over year to $940 million while Rinvoq's sales grew by 53.6% year over year to $465 million. | In the first quarter, sales of Skyrizi increased by 63.7% year over year to $940 million while Rinvoq's sales grew by 53.6% year over year to $465 million. Sales of AbbVie's aesthetics unit -- spearheaded by Botox Cosmetics -- grew by 20.5% year over year to $1.4 billion. First, as we have already seen, the company's lineup is strong enough to handle the inevitable sales drop that Humira will experience once it starts facing generic competition in the U.S. With the potential for label expansions and brand new drugs, AbbVie's pipeline will also be instrumental in helping the company keep its revenue afloat. | The company's update wasn't that bad; revenue increased by a modest 4.1% year over year to $13.5 billion. Revenue from the medicine declined by 7.4% year over year to $1.2 billion as a result of competition from other cancer drugs. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
31655.0 | 2022-05-17 00:00:00 UTC | 2 No-Brainer Stocks to Buy Right Now for Less than $55 | ABT | https://www.nasdaq.com/articles/2-no-brainer-stocks-to-buy-right-now-for-less-than-%2455-0 | nan | nan | Investing in the healthcare space can be tricky. Many companies are new -- promising exciting technologies and therapies -- but they have yet to prove themselves as long-term successes. As a result, some stocks can look cheap due to lower share prices.
That said, there are healthcare companies that are quality businesses and also happen to have low share prices. These businesses are not without their risks, but they have shown enough promise that they're worth buying at today's prices.
Let's dive into two of these companies to see what makes them no-brainer stocks to buy right now.
Image source: Getty Images.
1. Fulgent Genetics
Fulgent Genetics (NASDAQ: FLGT) offers inexpensive, customizable genetic tests with quick turnaround times that allow physicians to get information they can use to treat patients. When the pandemic began, Fulgent was able to pivot to providing COVID-19 tests, which resulted in incredible revenue growth that has allowed the company to pour resources back into the business as well as make some key acquisitions.
In its recent Q1 2022 earnings release, Fulgent reported revenue of $320 million. While this was a year-over-year decrease of 11%, this quarter's revenue was being compared to Q1 2021, when revenue grew 4,500%. Compared to the previous quarter, revenue in Q1 grew 27% and was the fourth consecutive quarter of sequential growth.
More important to the future of Fulgent's success is its core revenue, excluding COVID-19 NGS testing. Put simply, Fulgent's business is built around its Net Generation Sequencing (NGS) genetic testing, and once revenue related to COVID-19 fades away, this core business will be what investors should keep an eye on. This metric grew 59% in Q1, showing that although the headlines often tie Fulgent's success to pandemic-related sales, the business is strong beyond that revenue source.
Fulgent has also made some key acquisitions and partnerships over the past year that have increased its exposure to the cancer diagnostic space and increased its presence in China. Even after these moves, the company ended Q1 with $1.1 billion in cash, cash equivalents and marketable securities on its balance sheet, giving it plenty of dry powder to seek out more acquisitions or make investments in the existing business.
Despite these strong results, the stock is only trading for 1.7 times its trailing sales. This is nearly the lowest that multiple has ever been, and is well below the price-to-sales (P/S) ratio of 4.3 for competitor Abbott Laboratories. Considering its upside, this valuation makes Fulgent a no-brainer in my eyes.
2. Outset Medical
Another exciting company in this space is Outset Medical (NASDAQ: OM). Outset sells what it calls a dialysis clinic on wheels, which allows patients to complete dialysis treatments in more convenient, less expensive settings, including their homes. Outset generates most of its revenue from the sales of these Tablo machines as well as the consumable materials associated with treatments.
In Q1 2022, Outset grew revenue 33% year over year and 8.5% sequentially. Much like Fulgent, this quarter's increase was on top of strong year-ago revenue growth, making these results more impressive. Outset also took a major step forward with its gross margin, which increased to 14.5% as compared to 1.3% in Q1 2021.
Unfortunately, this gross margin expansion didn't translate to the bottom line since operating expenses increased 36% year over year, slightly outpacing revenue growth. This resulted in a net loss of $36 million compared to a loss of $30 million in Q1 2021. This isn't necessarily unexpected for a company at this stage in its growth, but investors will want to see steps toward profitability as the business scales.
One positive sign from the recent earnings report was an increase to its full-year 2022 guidance. The company now expects revenue growth of between 40% and 46% compared to the previous guidance of 38% to 46%.
Outset's Tablo dialysis machine has the potential to drastically improve how patients with advanced kidney disease get treatment. The company believes that the total addressable market for its Tablo device is approximately $2.5 billion in the healthcare setting and an additional $8.9 billion in the home setting. Even taken with a grain of salt, these projections suggest there's a lot of room for this business to grow from its full-year 2021 revenue of $103 million.
The company's P/S ratio is currently 10.5, an all-time low. While investors should keep an eye on the business to ensure it's continuing to grow, the large market opportunity and track record of success make this stock a very attractive buy at this valuation. If it can capture even a fraction of its total addressable market, picking up shares at this price will make investors very happy down the road.
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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. | When the pandemic began, Fulgent was able to pivot to providing COVID-19 tests, which resulted in incredible revenue growth that has allowed the company to pour resources back into the business as well as make some key acquisitions. This metric grew 59% in Q1, showing that although the headlines often tie Fulgent's success to pandemic-related sales, the business is strong beyond that revenue source. While investors should keep an eye on the business to ensure it's continuing to grow, the large market opportunity and track record of success make this stock a very attractive buy at this valuation. | Fulgent Genetics Fulgent Genetics (NASDAQ: FLGT) offers inexpensive, customizable genetic tests with quick turnaround times that allow physicians to get information they can use to treat patients. Outset Medical Another exciting company in this space is Outset Medical (NASDAQ: OM). The company believes that the total addressable market for its Tablo device is approximately $2.5 billion in the healthcare setting and an additional $8.9 billion in the home setting. | When the pandemic began, Fulgent was able to pivot to providing COVID-19 tests, which resulted in incredible revenue growth that has allowed the company to pour resources back into the business as well as make some key acquisitions. Put simply, Fulgent's business is built around its Net Generation Sequencing (NGS) genetic testing, and once revenue related to COVID-19 fades away, this core business will be what investors should keep an eye on. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Jeff Santoro has positions in Fulgent Genetics, Inc. and Outset Medical, Inc. | This metric grew 59% in Q1, showing that although the headlines often tie Fulgent's success to pandemic-related sales, the business is strong beyond that revenue source. Much like Fulgent, this quarter's increase was on top of strong year-ago revenue growth, making these results more impressive. That's right -- they think these 10 stocks are even better buys. |
31656.0 | 2022-05-17 00:00:00 UTC | VHT, TMO, ABT, DHR: Large Inflows Detected at ETF | ABT | https://www.nasdaq.com/articles/vht-tmo-abt-dhr%3A-large-inflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $615.8 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 66,888,677 to 69,491,925). Among the largest underlying components of VHT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 2.2%, Abbott Laboratories (Symbol: ABT) is up about 4.7%, and Danaher Corp (Symbol: DHR) is up by about 0.7%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average:
Looking at the chart above, VHT's low point in its 52 week range is $228 per share, with $268.72 as the 52 week high point — that compares with a last trade of $238.69. 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 VHT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 2.2%, Abbott Laboratories (Symbol: ABT) is up about 4.7%, and Danaher Corp (Symbol: DHR) is up by about 0.7%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $228 per share, with $268.72 as the 52 week high point — that compares with a last trade of $238.69. 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 VHT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 2.2%, Abbott Laboratories (Symbol: ABT) is up about 4.7%, and Danaher Corp (Symbol: DHR) is up by about 0.7%. For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $228 per share, with $268.72 as the 52 week high point — that compares with a last trade of $238.69. 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 VHT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 2.2%, Abbott Laboratories (Symbol: ABT) is up about 4.7%, and Danaher Corp (Symbol: DHR) is up 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 Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $615.8 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 66,888,677 to 69,491,925). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $228 per share, with $268.72 as the 52 week high point — that compares with a last trade of $238.69. | Among the largest underlying components of VHT, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 2.2%, Abbott Laboratories (Symbol: ABT) is up about 4.7%, and Danaher Corp (Symbol: DHR) is up 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 Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $615.8 million dollar inflow -- that's a 3.9% increase week over week in outstanding units (from 66,888,677 to 69,491,925). For a complete list of holdings, visit the VHT Holdings page » The chart below shows the one year price performance of VHT, versus its 200 day moving average: Looking at the chart above, VHT's low point in its 52 week range is $228 per share, with $268.72 as the 52 week high point — that compares with a last trade of $238.69. |
31657.0 | 2022-05-17 00:00:00 UTC | U.S. Democrats unveil bill to address baby formula shortage | ABT | https://www.nasdaq.com/articles/u.s.-democrats-unveil-bill-to-address-baby-formula-shortage | nan | nan | Adds detail of bill, background
WASHINGTON, May 17 (Reuters) - U.S. House Democrats on Tuesday unveiled a bill to provide $28 million to the Food and Drug Administration to help respond to a nationwide shortage of infant formula.
House of Representatives Speaker Nancy Pelosi said on Friday week the chamber would consider the emergency funding bill this week. The legislation was posted on the House Appropriations Committee's website.
The supplementary funds for "salaries and expenses" would be available until the end of September 2023 "to address the current shortage of FDA-regulated infant formula and certain medical foods in the United States and to prevent future shortages," according to the legislation.
The FDA said on Monday the United States would allow baby formula imports from foreign makers that do not usually sell their products here, in a bid to ease the shortage that has left parents scrambling to feed their babies.
The temporary move could help put more formula in U.S. stores in a few weeks, an FDA official said told a news conference on Monday. Overseas makers will need to satisfy safety and nutritional standards set by the FDA.
(Reporting by Chris Gallagher; Editing by Tim Ahmann and Chizu Nomiyama)
((chris.gallagher@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds detail of bill, background WASHINGTON, May 17 (Reuters) - U.S. House Democrats on Tuesday unveiled a bill to provide $28 million to the Food and Drug Administration to help respond to a nationwide shortage of infant formula. The supplementary funds for "salaries and expenses" would be available until the end of September 2023 "to address the current shortage of FDA-regulated infant formula and certain medical foods in the United States and to prevent future shortages," according to the legislation. The temporary move could help put more formula in U.S. stores in a few weeks, an FDA official said told a news conference on Monday. | Adds detail of bill, background WASHINGTON, May 17 (Reuters) - U.S. House Democrats on Tuesday unveiled a bill to provide $28 million to the Food and Drug Administration to help respond to a nationwide shortage of infant formula. The supplementary funds for "salaries and expenses" would be available until the end of September 2023 "to address the current shortage of FDA-regulated infant formula and certain medical foods in the United States and to prevent future shortages," according to the legislation. The FDA said on Monday the United States would allow baby formula imports from foreign makers that do not usually sell their products here, in a bid to ease the shortage that has left parents scrambling to feed their babies. | Adds detail of bill, background WASHINGTON, May 17 (Reuters) - U.S. House Democrats on Tuesday unveiled a bill to provide $28 million to the Food and Drug Administration to help respond to a nationwide shortage of infant formula. The supplementary funds for "salaries and expenses" would be available until the end of September 2023 "to address the current shortage of FDA-regulated infant formula and certain medical foods in the United States and to prevent future shortages," according to the legislation. The FDA said on Monday the United States would allow baby formula imports from foreign makers that do not usually sell their products here, in a bid to ease the shortage that has left parents scrambling to feed their babies. | Adds detail of bill, background WASHINGTON, May 17 (Reuters) - U.S. House Democrats on Tuesday unveiled a bill to provide $28 million to the Food and Drug Administration to help respond to a nationwide shortage of infant formula. House of Representatives Speaker Nancy Pelosi said on Friday week the chamber would consider the emergency funding bill this week. The legislation was posted on the House Appropriations Committee's website. |
31658.0 | 2022-05-17 00:00:00 UTC | Morning Brief: Top Financial Stories Dominating on Tuesday, May 17 | ABT | https://www.nasdaq.com/articles/morning-brief%3A-top-financial-stories-dominating-on-tuesday-may-17 | nan | nan | Reuters
KKR To Scoop This Power Company At 36% Premium
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Wall Street Journal
FDA Gives Nod To First Nonprescription COVID-19 Test That Also Detects Flu, RSV
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Troubled EV Maker Lordstown Motors’ Survival Hopes Rests On Fresh Funds, Valuation
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Bloomberg
Alibaba, Tencent To Post Lack-Luster Quarterly Results As Domestic Regulatory Crackdown Takes A Toll
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Rivian In Dispute With Supplier Commercial Vehicle Group
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Financial Times
Warren Buffett Exits Wells Fargo And Buys Stake In Its Rival Bank
Berkshire Hathaway Inc (NYSE: BRK-B) bought $3 billion worth of shares in Citigroup Inc (NYSE: C) in Q1, giving the group a stake of about 2.8%, according to filings with regulators. The investment came as Berkshire sold the remainder of its position in Wells Fargo & Co (NYSE: WFC), a rival bank that had been a staple in Buffett’s portfolio for more than three decades.
New York Times
FDA May Authorize Pfizer-BioNTech’s COVID-19 Booster For 5-11 Year Kids Soon
The FDA is expected to authorize a booster shot of Pfizer Inc (NYSE: PFE)/ BioNTech SE’s (NASDAQ: BNTX) COVID-19 vaccine for children aged 5 to 11 probably by today, the New York Times reported, citing people familiar with the matter. The companies submitted an application to the FDA for authorization last month. They have cited data from a mid-to-late-stage study showing the third dose of their shot increased protection against the original coronavirus version and the omicron variant among children aged 5-11 years.
Benzinga
Why United Airlines Shares Are Trading Higher Today
United Airlines Holdings, Inc. (NASDAQ: UAL) updated its financial outlook for second-quarter 2022. The company stated that the demand environment has continued to improve following the previous guidance, resulting in a higher unit revenue outlook for Q2. Meanwhile, UAL noted that oil price has also increased, resulting in a higher expected fuel price for the quarter.
Shareholders Rejected Intel’s Top Executive Compensation Just A Month After It Painted Dismal Q2 Outlook
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Elon Musk Getting’ Cold Feet’ On Twitter Deal? Analyst Says Bots Issue An Excuse To Lower Price Or Walk Away
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Coming Soon: Order A Tesla Or Polestar For Your Uber Ride Across The World In These Cities
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US Baby Formula Crisis Could See Some Relief As FDA, Abbott Agree On Deal
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Key Boeing China Customer Said To Have Scrapped Over 100 Jets From Delivery Plans
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Tiger Global Exits Rivian, Netflix Stakes In Q1 — Doubles Down On These Chinese EV Makers Instead
Hedge fund Tiger Global dissolved its stake in Rivian Automotive Inc (NASDAQ: RIVN) and Netflix Inc (NASDAQ: NFLX) in the first quarter and significantly lowered its exposure to Uber Technologies Inc (NYSE: UBER). It more than doubled its positions in Chinese EV makers Xpeng Inc (NYSE: XPEV) and Li Auto Inc (NASDAQ: LI), according to regulatory filings. The Chase Coleman-founded hedge fund, popular for its mega bets on technology firms, completely exited its position in Rivian, the high-profile EV maker that went public last year and has been under pressure after missing some key production and delivery targets. Tiger Global sold all of the 751,000 shares in Rivian it held at the beginning of the year. Rivian shares slumped 55% in the first quarter to $46.44. The stock is down 76% year-to-date.
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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. | US Baby Formula Crisis Could See Some Relief As FDA, Abbott Agree On Deal The baby formula shortage that has morphed into a crisis in the U.S. could soon see some relief following an agreement between market leader Abbott Laboratories (NYSE: ABT) and the Food and Drug Administration. “A changing stock market/risk environment the last month, and a number of other financing factors have caused Musk to get “cold feet” on the Twitter deal, with the bot issue not a new [one] and likely more of a scapegoat to push for a lower price,” Ives wrote in a note. The Tim Cook-led company issued an update on Monday saying that “uncer certain specific conditions” and “with advance notice” developers will be able to offer an auto renewable subscription price increase without the user needing to take any action. | US Baby Formula Crisis Could See Some Relief As FDA, Abbott Agree On Deal The baby formula shortage that has morphed into a crisis in the U.S. could soon see some relief following an agreement between market leader Abbott Laboratories (NYSE: ABT) and the Food and Drug Administration. Rivian In Dispute With Supplier Commercial Vehicle Group Rivian Automotive Inc (NASDAQ: RIVN) shares fell about 6% on Monday on word the EV startup is in dispute with Commercial Vehicle Group Inc (NASDAQ: CVGI), a key seat supplier. Benzinga Why United Airlines Shares Are Trading Higher Today United Airlines Holdings, Inc. (NASDAQ: UAL) updated its financial outlook for second-quarter 2022. | US Baby Formula Crisis Could See Some Relief As FDA, Abbott Agree On Deal The baby formula shortage that has morphed into a crisis in the U.S. could soon see some relief following an agreement between market leader Abbott Laboratories (NYSE: ABT) and the Food and Drug Administration. Analyst Says Bots Issue An Excuse To Lower Price Or Walk Away Tesla Inc (NASDAQ: TSLA) CEO Elon Musk is likely using the bots issue as a scapegoat to walk away from his $44 billion deal to buy Twitter Inc (NYSE: TWTR) or negotiate a lower price, according to Wedbush Securities analyst Dan Ives. “The elephant in the room for the Twitter board is Musk can walk away for a $1 billion as a small breakup fee ... and likely cite the bot/fake account issue as the reason, even though this likely would be contested by Twitter in the courts.” Coming Soon: Order A Tesla Or Polestar For Your Uber Ride Across The World In These Cities Uber Technologies Inc (NYSE: UBER) will soon let users in select cities across the world book a Tesla Inc (NASDAQ: TSLA) or a Polestar electric vehicle for their rides, as it seeks to accelerate its 2030 electrification ambitions. | US Baby Formula Crisis Could See Some Relief As FDA, Abbott Agree On Deal The baby formula shortage that has morphed into a crisis in the U.S. could soon see some relief following an agreement between market leader Abbott Laboratories (NYSE: ABT) and the Food and Drug Administration. Benzinga Why United Airlines Shares Are Trading Higher Today United Airlines Holdings, Inc. (NASDAQ: UAL) updated its financial outlook for second-quarter 2022. “The elephant in the room for the Twitter board is Musk can walk away for a $1 billion as a small breakup fee ... and likely cite the bot/fake account issue as the reason, even though this likely would be contested by Twitter in the courts.” Coming Soon: Order A Tesla Or Polestar For Your Uber Ride Across The World In These Cities Uber Technologies Inc (NYSE: UBER) will soon let users in select cities across the world book a Tesla Inc (NASDAQ: TSLA) or a Polestar electric vehicle for their rides, as it seeks to accelerate its 2030 electrification ambitions. |
31659.0 | 2022-05-17 00:00:00 UTC | How the Infant Formula Recall Will Impact Abbott's Revenue | ABT | https://www.nasdaq.com/articles/how-the-infant-formula-recall-will-impact-abbotts-revenue | nan | nan | Baby formula is in short supply around the U.S., raising concerns about nutrition for the three out of four infants who rely on it for some portion of their nourishment. Supply chain issues have created problems since the start of the pandemic, but healthcare equipment provider Abbott Laboratories' (NYSE: ABT) division Abbott Nutrition in particular has drawn the heat for the current severe shortage. Despite Abbott's mounting losses, the company's recovery is in sight.
Image source: Getty Images.
Shortages triggered by recall and plant shutdown
In mid-February, Abbott voluntarily recalled all powdered infant formula produced by its Sturgis, Michigan plant after four infants who consumed formula from the plant were hospitalized with infections caused by the common environmental bacteria Cronobacter sakazakii.
Abbott's internal investigation did not turn up any link between the ill infants and its baby formula. While the bacteria was found in non-product-contact areas of the plant, none of the strains matched those of the sick infants. Open containers from the homes of the children were tested in three of the cases, and only one was contaminated with the bacteria that caused the illness. No bacterial contamination was found in unopened containers. Still, Abbott closed its plant to allow the U.S. Food and Drug Administration to investigate and to improve testing procedures.
The closure worsened preexisting shortages in infant formula since Abbott is one of the four main providers to the U.S. market. Abbott has increased production in its four other plants to compensate for loss of output from the Michigan facility. In mid-April, Abbott announced that it had doubled its supply of Similac Advanced powdered formula being shipped from its FDA-registered facility in Ireland, and tripled the amount of Similac Ready-to-Feed liquid formula coming from its Ohio headquarters plant.
Impact on revenue
Abbott's pediatric nutritional sales took a big hit from the product recall. Q1 earnings showed U.S. pediatric nutritional sales of $308 million, which is a $170 million drop from the same period of the previous year.
As of the first quarter, the recall on infant formula did not appear to spill over into other areas. Sales for Pedialyte and Pediasure, Abbott's other primary products in the pediatric nutritional segment, remained strong. U.S. adult nutritionals also showed a 3.3% sales gain year over year, to $339 million. Abbott may post declining sales in other nutritional segments in future quarters, however, because it's borrowing plant capacity from other products to meet demands for infant formula.
Abbott's role in the ongoing baby formula shortage has drawn a great deal of public attention. Understandably, safety concerns and lack of product may encourage parents to switch to alternative brands wherever possible. Still, widespread shortages are likely to limit those shoppers' options for the next several months.
As a silver lining, improved testing protocols and plant upgrades are likely to make Abbott's future product even safer. Abbott claims that it has responded to the concerns from the FDA's inspection, and its corrective measures include autosampling throughout the process, and more stringent product and environmental testing. On Monday, Abbott and the FDA reached an agreement about resuming production.
Covid diagnostic tests compensate for losses
Abbott easily recouped its lost revenue from the nutritionals segment in other business areas. Overall company quarterly revenue was $11.9 billion, a 13.8% increase from Q1 2021.
The company's large diagnostics segment has been its main growth driver. Its $3.3 billion in quarterly sales from Covid-related rapid diagnostics tests dwarfed pediatric nutritionals sales. While Abbott's Covid-related sales are difficult to predict, they are expected to slow as the year progresses. This slowdown will have a much greater impact on the company's top line than the infant formula.
Overall, some analysts expect the debacle to cost around $325 million, although this could certainly run higher as long as the plant remains closed. Abbott expects it will take two weeks after FDA clearance to start producing infant formula, and six to eight weeks after that for the product to hit retail shelves. In the best case, normal sales will resume in August. The pediatric nutritionals segment will see significant losses over the first half of the year, but sales should resume in the third quarter when the plant goes back online. In the meantime, healthcare investors should keep their eye on the FDA investigation -- but not worry too much about Abbott's long-term prospects.
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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. | Supply chain issues have created problems since the start of the pandemic, but healthcare equipment provider Abbott Laboratories' (NYSE: ABT) division Abbott Nutrition in particular has drawn the heat for the current severe shortage. Abbott may post declining sales in other nutritional segments in future quarters, however, because it's borrowing plant capacity from other products to meet demands for infant formula. Abbott claims that it has responded to the concerns from the FDA's inspection, and its corrective measures include autosampling throughout the process, and more stringent product and environmental testing. | Supply chain issues have created problems since the start of the pandemic, but healthcare equipment provider Abbott Laboratories' (NYSE: ABT) division Abbott Nutrition in particular has drawn the heat for the current severe shortage. Shortages triggered by recall and plant shutdown In mid-February, Abbott voluntarily recalled all powdered infant formula produced by its Sturgis, Michigan plant after four infants who consumed formula from the plant were hospitalized with infections caused by the common environmental bacteria Cronobacter sakazakii. Impact on revenue Abbott's pediatric nutritional sales took a big hit from the product recall. | Supply chain issues have created problems since the start of the pandemic, but healthcare equipment provider Abbott Laboratories' (NYSE: ABT) division Abbott Nutrition in particular has drawn the heat for the current severe shortage. Shortages triggered by recall and plant shutdown In mid-February, Abbott voluntarily recalled all powdered infant formula produced by its Sturgis, Michigan plant after four infants who consumed formula from the plant were hospitalized with infections caused by the common environmental bacteria Cronobacter sakazakii. Abbott may post declining sales in other nutritional segments in future quarters, however, because it's borrowing plant capacity from other products to meet demands for infant formula. | Supply chain issues have created problems since the start of the pandemic, but healthcare equipment provider Abbott Laboratories' (NYSE: ABT) division Abbott Nutrition in particular has drawn the heat for the current severe shortage. Shortages triggered by recall and plant shutdown In mid-February, Abbott voluntarily recalled all powdered infant formula produced by its Sturgis, Michigan plant after four infants who consumed formula from the plant were hospitalized with infections caused by the common environmental bacteria Cronobacter sakazakii. Abbott's internal investigation did not turn up any link between the ill infants and its baby formula. |
31660.0 | 2022-05-17 00:00:00 UTC | EXCLUSIVE-Nestle flies baby formula supplies to U.S. from Europe | ABT | https://www.nasdaq.com/articles/exclusive-nestle-flies-baby-formula-supplies-to-u.s.-from-europe | nan | nan | By Richa Naidu
LONDON, May 17 (Reuters) - Nestle SA NESN.S is flying baby formula supplies to the United States from the Netherlands and Switzerland to alleviate tha shortage in U.S. supermarkets, the company said in an emailed statement to Reuters on Tuesday.
"Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs," Nestle said.
(Editing by Matt Scuffham and Jason Neely)
((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. | By Richa Naidu LONDON, May 17 (Reuters) - Nestle SA NESN.S is flying baby formula supplies to the United States from the Netherlands and Switzerland to alleviate tha shortage in U.S. supermarkets, the company said in an emailed statement to Reuters on Tuesday. "Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs," Nestle said. (Editing by Matt Scuffham and Jason Neely) ((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. | By Richa Naidu LONDON, May 17 (Reuters) - Nestle SA NESN.S is flying baby formula supplies to the United States from the Netherlands and Switzerland to alleviate tha shortage in U.S. supermarkets, the company said in an emailed statement to Reuters on Tuesday. "Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs," Nestle said. (Editing by Matt Scuffham and Jason Neely) ((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. | By Richa Naidu LONDON, May 17 (Reuters) - Nestle SA NESN.S is flying baby formula supplies to the United States from the Netherlands and Switzerland to alleviate tha shortage in U.S. supermarkets, the company said in an emailed statement to Reuters on Tuesday. "Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs," Nestle said. (Editing by Matt Scuffham and Jason Neely) ((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. | By Richa Naidu LONDON, May 17 (Reuters) - Nestle SA NESN.S is flying baby formula supplies to the United States from the Netherlands and Switzerland to alleviate tha shortage in U.S. supermarkets, the company said in an emailed statement to Reuters on Tuesday. "Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs," Nestle said. (Editing by Matt Scuffham and Jason Neely) ((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. |
31661.0 | 2022-05-17 00:00:00 UTC | Baby formula makers ramp up U.S. supplies to tackle shortage | ABT | https://www.nasdaq.com/articles/baby-formula-makers-ramp-up-u.s.-supplies-to-tackle-shortage | nan | nan | By Richa Naidu
LONDON, May 17 (Reuters) - Top baby formula makers Reckitt Benckiser RKT.L and Nestle NESN.N have ramped up supplies to the United States to resolve a shortage that has emptied shelves and caused panic among parents.
Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections.
Abbott said on Monday it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, marking a major step towards resolving the nationwide shortage.
In the meantime, other baby formula makers have stepped up production and shipped extra supplies to the United States.
Reckitt Benckiser is boosting baby formula production by about 30% and making more frequent deliveries to U.S. stores, an executive told Reuters on Tuesday.
The company, which makes its U.S. formula in three facilities in Michigan, Indiana and Minnesota, has granted plants "unlimited overtime" to put in extra shifts, Robert Cleveland, senior vice president, North America and Europe Nutrition at Reckitt, told Reuters in an interview.
Prior to the Abbott recall, Reckitt supplied just over a third of the U.S. infant formula market compared with Abbott's roughly 44%. Britain-based Reckitt told Reuters it now accounts for more than 50% of total baby formula supply in the country.
"We normally might pack an entire truck before we ship it. For timeliness, we're not doing that. We're packing it with as much product as we have and then we're just getting it out the door," Cleveland said.
The United States will allow baby formula imports from foreign makers that do not usually sell their products there, the Food and Drug Administration said on Monday.
Nestle is flying baby formula supplies to the United States from the Netherlands and Switzerland, the company said in an emailed statement to Reuters on Tuesday. L2N2X90E1
The world's largest packaged food group is moving Gerber baby food formula to the United States from the Netherlands and Alfamino baby formula there from Switzerland, it said.
"We prioritized these products because they serve a critical medical purpose as they are for babies with cow's milk protein allergies," the company said. "Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs."
(Editing by Matt Scuffham and Mark Potter)
((matthew.scuffham@thomsonreuters.com; Reuters Messaging: matthew.scuffham.reuters.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. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. By Richa Naidu LONDON, May 17 (Reuters) - Top baby formula makers Reckitt Benckiser RKT.L and Nestle NESN.N have ramped up supplies to the United States to resolve a shortage that has emptied shelves and caused panic among parents. Abbott said on Monday it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, marking a major step towards resolving the nationwide shortage. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. By Richa Naidu LONDON, May 17 (Reuters) - Top baby formula makers Reckitt Benckiser RKT.L and Nestle NESN.N have ramped up supplies to the United States to resolve a shortage that has emptied shelves and caused panic among parents. In the meantime, other baby formula makers have stepped up production and shipped extra supplies to the United States. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. By Richa Naidu LONDON, May 17 (Reuters) - Top baby formula makers Reckitt Benckiser RKT.L and Nestle NESN.N have ramped up supplies to the United States to resolve a shortage that has emptied shelves and caused panic among parents. In the meantime, other baby formula makers have stepped up production and shipped extra supplies to the United States. | Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled formulas after complaints of bacterial infections. In the meantime, other baby formula makers have stepped up production and shipped extra supplies to the United States. Reckitt Benckiser is boosting baby formula production by about 30% and making more frequent deliveries to U.S. stores, an executive told Reuters on Tuesday. |
31662.0 | 2022-05-16 00:00:00 UTC | Abbott Reaches Agreement With FDA To Restart Baby Formula Production Amid U.S. Shortage | ABT | https://www.nasdaq.com/articles/abbott-reaches-agreement-with-fda-to-restart-baby-formula-production-amid-u.s.-shortage | nan | nan | (RTTNews) - Abbott has reached an agreement with the U.S. Food and Drug Administration to restart production of baby formula at the company's plant in Sturgis, Michigan amid a nationwide formula shortage.
The baby formula maker closed the plant in February after bacterial infections were reported in four babies who consumed formula made at the plant; two of the babies died.
As part of the agreement, which is subject to court approval, Abbott will be required to retain an independent expert to review the Sturgis facility's operations to ensure compliance with the law. It also includes requirements for testing products, as well as ceasing production, and promptly notifying the FDA should contamination be detected. The proposed agreement also requires the implementation of a sanitation plan, environmental monitoring plan and employee training programs.
Abbott said it could restart the plant within two weeks, once the FDA confirms the initial requirements for start-up have been met.
The company noted that it would begin production of EleCare, Alimentum and metabolic formulas first and then begin production of Similac and other formulas. From the time of restart it will take six to eight weeks before product is available on shelves.
The company confirmed its full-year 2022 guidance for adjusted earnings per share from continuing operations of at least $4.70. It will incur one-time specified charges for expenses related to the agreement which have not yet been quantified. However, it does not expect that those expenses will have a material impact on its consolidated financial statements.
Abbott in February had recalled various lots of its most popular powder formulas, including Similac, Alimentum, and EleCare, produced in its manufacturing facility in Sturgis, Michigan after four infants were diagnosed with Cronobacter sakazakii or Salmonella Newport, a rare bacterial infection.
The Centers for Disease Control and Prevention or CDC stated that Cronobacter can cause severe sepsis or meningitis in infants which often becomes life-threatening.
Later, in March, the U.S. Food and Drug Administration added some lots of Similac PM 60/40 Powdered Instant Formula to Abbott recall after another death of an infant was reported. The FDA altogether had reported five cases of related - infant illness, in which 2 infants died.
In April, the FDA had released its investigation report about the Abbott plant, noting that its Sturgis, Michigan, facility failed to maintain sanitary conditions and procedures. The regulator warned the consumers about using the recalled products manufactured at the facility, after it found the plant to be unsanitary.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As part of the agreement, which is subject to court approval, Abbott will be required to retain an independent expert to review the Sturgis facility's operations to ensure compliance with the law. Abbott in February had recalled various lots of its most popular powder formulas, including Similac, Alimentum, and EleCare, produced in its manufacturing facility in Sturgis, Michigan after four infants were diagnosed with Cronobacter sakazakii or Salmonella Newport, a rare bacterial infection. Later, in March, the U.S. Food and Drug Administration added some lots of Similac PM 60/40 Powdered Instant Formula to Abbott recall after another death of an infant was reported. | (RTTNews) - Abbott has reached an agreement with the U.S. Food and Drug Administration to restart production of baby formula at the company's plant in Sturgis, Michigan amid a nationwide formula shortage. The baby formula maker closed the plant in February after bacterial infections were reported in four babies who consumed formula made at the plant; two of the babies died. Abbott in February had recalled various lots of its most popular powder formulas, including Similac, Alimentum, and EleCare, produced in its manufacturing facility in Sturgis, Michigan after four infants were diagnosed with Cronobacter sakazakii or Salmonella Newport, a rare bacterial infection. | (RTTNews) - Abbott has reached an agreement with the U.S. Food and Drug Administration to restart production of baby formula at the company's plant in Sturgis, Michigan amid a nationwide formula shortage. The baby formula maker closed the plant in February after bacterial infections were reported in four babies who consumed formula made at the plant; two of the babies died. Abbott in February had recalled various lots of its most popular powder formulas, including Similac, Alimentum, and EleCare, produced in its manufacturing facility in Sturgis, Michigan after four infants were diagnosed with Cronobacter sakazakii or Salmonella Newport, a rare bacterial infection. | (RTTNews) - Abbott has reached an agreement with the U.S. Food and Drug Administration to restart production of baby formula at the company's plant in Sturgis, Michigan amid a nationwide formula shortage. It will incur one-time specified charges for expenses related to the agreement which have not yet been quantified. Abbott in February had recalled various lots of its most popular powder formulas, including Similac, Alimentum, and EleCare, produced in its manufacturing facility in Sturgis, Michigan after four infants were diagnosed with Cronobacter sakazakii or Salmonella Newport, a rare bacterial infection. |
31663.0 | 2022-05-16 00:00:00 UTC | Abbott, FDA enter agreement over reopening of baby formula facility in Michigan | ABT | https://www.nasdaq.com/articles/abbott-fda-enter-agreement-over-reopening-of-baby-formula-facility-in-michigan | nan | nan | May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it has entered into an agreement with the U.S. Food and Drug Administration on the steps necessary to resume production and maintain its baby formula facility at Sturgis, Michigan.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it has entered into an agreement with the U.S. Food and Drug Administration on the steps necessary to resume production and maintain its baby formula facility at Sturgis, Michigan. (Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it has entered into an agreement with the U.S. Food and Drug Administration on the steps necessary to resume production and maintain its baby formula facility at Sturgis, Michigan. (Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it has entered into an agreement with the U.S. Food and Drug Administration on the steps necessary to resume production and maintain its baby formula facility at Sturgis, Michigan. (Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it has entered into an agreement with the U.S. Food and Drug Administration on the steps necessary to resume production and maintain its baby formula facility at Sturgis, Michigan. (Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31664.0 | 2022-05-16 00:00:00 UTC | Here's Why Investors Should Retain Abbott (ABT) Stock Now | ABT | https://www.nasdaq.com/articles/heres-why-investors-should-retain-abbott-abt-stock-now | nan | nan | Abbott Laboratories ABT is gaining from strength in the Established Pharmaceuticals Division (EPD) business. Robust demand for the company’s continuous glucose monitoring (CGM) devices instills optimism. The company ended the first quarter of 2022 with better-than-expected results. However, declining Nutrition sales and foreign exchange headwinds raise apprehensions.
In the past year, the Zacks Rank #3 (Hold) stock lost 5.9% against a 26% fall of the industry and a 3.6% drop of the S&P 500.
The renowned medical device company has a market capitalization of $192.39 billion. Its earnings for first-quarter 2022 surpassed the Zacks Consensus Estimate by 17.7%.
In the past five years, the company registered earnings growth of 17.7%, which is way ahead of the 9.1% rise and the S&P 500’s 13.4% increase. The company’s long-term expected growth rate of 7.8% compared with the industry’s growth projection of 16.4% and the S&P 500’s projected 10.8% increase.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Drivers
Q1 Upsides: Abbott posted better-than-expected earnings and revenue numbers for the first quarter of 2022. Overall, year-over-year improvements were robust. Barring Nutrition, the company registered organic sales growth across all core operating segments. Organic sales increased 17.5% in the quarter, led by double-digit growth in medical devices, EPD and diagnostics, both with and without COVID testing-related sales.
Within Nutrition, while the pediatric nutrition business witnessed a drag, the adult nutrition business continues to perform well with global organic sales growth of 11.5%, led by the company’s Ensure and Glucerna brands.
EPD Business Gains Momentum: Abbott’s EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest-growing pharmaceutical markets for branded generics in the world. Per the company, its unique branded generics model was built to focus specifically on key emerging countries where long-term growth in medicines is guaranteed by the aging population and the related rise in chronic diseases.
For the first quarter, EPD sales increased 13.5% year over year. The company reported double-digit organic sales growth in three of the last four quarters. Strong growth is primarily led by strong execution and a steady cadence of new product introductions.
Progress With Diabetes Business: The Diabetes Care business achieved organic sales growth of 20.4% on the strength in FreeStyle Libre, which recorded $1 billion in sales during the first quarter. In a relatively short span, the Libre achieved global leadership among CGM systems for both Type 1 and Type 2 users, raising optimism. Recently, the company received expanded reimbursement for Libre in Japan, which covers all diabetes patients requiring insulin at least once a day.
Downsides
Dull Sales Scenario: During the first quarter, within Abbott’s Nutrition business, worldwide Nutrition sales dropped 7% on a reported basis and fell 4.4% on an organic basis. Sales were affected by a voluntary recall of certain powder formulas manufactured at one of Abbott's U.S. plants.
Forex Woes: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues from outside the United States. The company reported a 3.7% unfavorable year-over-year impact of foreign exchange in the first quarter.
Tension in China Continues: In the first quarter, Abbott’s procedure volume was significantly down in China, as the COVID-led lockdown started to hamper business, specifically in Shanghai. While expanding its nutrition business in emerging markets, the company is facing weaknesses in Greater China on challenging market dynamics.
Estimate Trend
In the past 60 days, the Zacks Consensus Estimate for Abbott’s 2022 earnings has moved north to $4.82.
The Zacks Consensus Estimate for its 2022 revenues is pegged at $41.59 billion, suggesting a 3.5% decline from the 2021 comparable figure.
Zacks Rank and Key Picks
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Medpace Holdings, Inc. MEDP and UnitedHealth Group Incorporated UNH.
AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, 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 declined 4.6% versus the industry’s 62.4% fall.
Medpace has a historical growth rate of 27.3%. Medpace’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%. It currently has a Zacks Rank #2 (Buy).
Medpace has outperformed its industry in the past year. MEDP has declined 14% against the industry’s 62.4% fall.
UnitedHealth has an estimated long-term growth rate of 14.8%. UnitedHealth’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%. It currently carries a Zacks Rank #2.
UnitedHealth has outperformed the industry over the past year. UNH has gained 18.8% compared with 16.2% industry growth in the said period.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT is gaining from strength in the Established Pharmaceuticals Division (EPD) business. Abbott Laboratories (ABT): Free Stock Analysis Report Per the company, its unique branded generics model was built to focus specifically on key emerging countries where long-term growth in medicines is guaranteed by the aging population and the related rise in chronic diseases. | Abbott Laboratories ABT is gaining from strength in the Established Pharmaceuticals Division (EPD) business. Abbott Laboratories (ABT): Free Stock Analysis Report Organic sales increased 17.5% in the quarter, led by double-digit growth in medical devices, EPD and diagnostics, both with and without COVID testing-related sales. | Abbott Laboratories ABT is gaining from strength in the Established Pharmaceuticals Division (EPD) business. Abbott Laboratories (ABT): Free Stock Analysis Report Within Nutrition, while the pediatric nutrition business witnessed a drag, the adult nutrition business continues to perform well with global organic sales growth of 11.5%, led by the company’s Ensure and Glucerna brands. | Abbott Laboratories ABT is gaining from strength in the Established Pharmaceuticals Division (EPD) business. Abbott Laboratories (ABT): Free Stock Analysis Report The company reported double-digit organic sales growth in three of the last four quarters. |
31665.0 | 2022-05-16 00:00:00 UTC | FDA to address baby formula imports as soon as Monday -chief | ABT | https://www.nasdaq.com/articles/fda-to-address-baby-formula-imports-as-soon-as-monday-chief | nan | nan | Adds Califf comments
WASHINGTON, May 16 (Reuters) - The U.S. Food and Drug Administration will make an announcement regarding imported infant formula as soon as later on Monday, the agency's chief told NBC News in an interview as regulators and lawmakers seek to address ongoing supply shortages.
FDA Commissioner Robert Califf added he does not expect the shortage of the critical baby product to last until the end of year, adding it was "quite likely" there could be movement to reopen Abbott Laboratories' ABT.N Sturgis, Michigan, manufacturing facility in about two weeks.
"I expect by the end of the day today that we're likely to have an announcement about that path forward," he told NBC's "Today" program regarding efforts to import formula from other countries for U.S. consumers.
Asked about Abbott's plan to get its plant operational in two weeks, Califf said: "That's entirely within the realm of possibility and frankly, I think, quite likely," adding it was up to the company to follow the timeline and that the FDA was obligated to ensure problems with the facility were fixed before approving its reopening.
"Very soon, you should hear an announcement about moving forward," he told NBC.
(Reporting by Susan Heavey; editing by Philippa Fletcher)
((sheavey@thomsonreuters.com; +1-202-898-8300;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FDA Commissioner Robert Califf added he does not expect the shortage of the critical baby product to last until the end of year, adding it was "quite likely" there could be movement to reopen Abbott Laboratories' ABT.N Sturgis, Michigan, manufacturing facility in about two weeks. Adds Califf comments WASHINGTON, May 16 (Reuters) - The U.S. Food and Drug Administration will make an announcement regarding imported infant formula as soon as later on Monday, the agency's chief told NBC News in an interview as regulators and lawmakers seek to address ongoing supply shortages. Asked about Abbott's plan to get its plant operational in two weeks, Califf said: "That's entirely within the realm of possibility and frankly, I think, quite likely," adding it was up to the company to follow the timeline and that the FDA was obligated to ensure problems with the facility were fixed before approving its reopening. | FDA Commissioner Robert Califf added he does not expect the shortage of the critical baby product to last until the end of year, adding it was "quite likely" there could be movement to reopen Abbott Laboratories' ABT.N Sturgis, Michigan, manufacturing facility in about two weeks. "I expect by the end of the day today that we're likely to have an announcement about that path forward," he told NBC's "Today" program regarding efforts to import formula from other countries for U.S. consumers. "Very soon, you should hear an announcement about moving forward," he told NBC. | FDA Commissioner Robert Califf added he does not expect the shortage of the critical baby product to last until the end of year, adding it was "quite likely" there could be movement to reopen Abbott Laboratories' ABT.N Sturgis, Michigan, manufacturing facility in about two weeks. Adds Califf comments WASHINGTON, May 16 (Reuters) - The U.S. Food and Drug Administration will make an announcement regarding imported infant formula as soon as later on Monday, the agency's chief told NBC News in an interview as regulators and lawmakers seek to address ongoing supply shortages. "I expect by the end of the day today that we're likely to have an announcement about that path forward," he told NBC's "Today" program regarding efforts to import formula from other countries for U.S. consumers. | FDA Commissioner Robert Califf added he does not expect the shortage of the critical baby product to last until the end of year, adding it was "quite likely" there could be movement to reopen Abbott Laboratories' ABT.N Sturgis, Michigan, manufacturing facility in about two weeks. Adds Califf comments WASHINGTON, May 16 (Reuters) - The U.S. Food and Drug Administration will make an announcement regarding imported infant formula as soon as later on Monday, the agency's chief told NBC News in an interview as regulators and lawmakers seek to address ongoing supply shortages. "I expect by the end of the day today that we're likely to have an announcement about that path forward," he told NBC's "Today" program regarding efforts to import formula from other countries for U.S. consumers. |
31666.0 | 2022-05-16 00:00:00 UTC | Enfamil maker Reckitt cranks up operations to put baby formula on U.S shelves | ABT | https://www.nasdaq.com/articles/enfamil-maker-reckitt-cranks-up-operations-to-put-baby-formula-on-u.s-shelves | nan | nan | By Richa Naidu
LONDON, May 17 (Reuters) - Reckitt Benckiser RKT.L is boosting baby formula production by about 30% and making more frequent deliveries to stores as it looks to counter a nationwide shortage in U.S. supermarkets, an executive told Reuters.
Reckitt, which makes its U.S. formula in three facilities in Michigan, Indiana and Minnesota, has also granted plants "unlimited overtime" to put in extra shifts, Robert Cleveland, senior vice president, North America and Europe Nutrition at Reckitt, told Reuters in an interview.
Along with cutting back on some items that take longer to produce, this has allowed the company to make about 30% more baby formula, he said. Reckitt has reduced the time it takes to get product to shelves by nearly half.
Baby formula aisles at supermarkets have been emptied by panicked parents since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas.
The products, which were made at a plant in Michigan, were recalled after complaints of bacterial infections.
The recall, which exacerbated a shortage of formula that started late last year, has forced supermarkets like Target Corp TGT.N and Walgreens Boots Alliance WBA.O to limit sales of formula, putting pressure on the Biden administration to address the crisis.
Prior to the Abbott recall, Reckitt supplied just over a third of the U.S. infant formula market compared with Abbott's roughly 44%. Britain-based Reckitt told Reuters it now accounts for more than 50% of total baby formula supply in the United States.
"We normally might pack an entire truck before we ship it. For timeliness, we're not doing that. We're packing it with as much product as we have and then we're just getting it out the door," Cleveland said.
About 40% of baby formula products are out of stock nationwide, data firm Datasembly said last week.
Reckitt is prioritizing states that have higher populations of babies who need its products, and low-income mothers who buy formula that is part of the Women, Infants, and Children Nutrition Program (WIC), he added.
It is also making more refill boxes.
Perrigo Co Plc PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O, told Reuters last week it expects shortages and heightened demand to last for the "balance of the year."
The U.S. Food & Drug Administration (FDA) on Monday outlined a process by which the agency would not object to the importation of certain infant formula products intended for a foreign market.
U.S. President Joe Biden last week met with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access amid a nationwide shortage.
"The White House started asking us if they could work on some of the inputs to our manufacturing process," Cleveland said. Reckitt was at one time struggling to source a plastic mould that helps makes packaging, for instance.
They've been "calling some of these input suppliers to emphasize the urgency and the need to resolve this," he said.
(Reporting by Richa Naidu; editing by Richard Pullin)
((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. | Baby formula aisles at supermarkets have been emptied by panicked parents since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. Reckitt is prioritizing states that have higher populations of babies who need its products, and low-income mothers who buy formula that is part of the Women, Infants, and Children Nutrition Program (WIC), he added. Perrigo Co Plc PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O, told Reuters last week it expects shortages and heightened demand to last for the "balance of the year." | Baby formula aisles at supermarkets have been emptied by panicked parents since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, May 17 (Reuters) - Reckitt Benckiser RKT.L is boosting baby formula production by about 30% and making more frequent deliveries to stores as it looks to counter a nationwide shortage in U.S. supermarkets, an executive told Reuters. Prior to the Abbott recall, Reckitt supplied just over a third of the U.S. infant formula market compared with Abbott's roughly 44%. | Baby formula aisles at supermarkets have been emptied by panicked parents since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, May 17 (Reuters) - Reckitt Benckiser RKT.L is boosting baby formula production by about 30% and making more frequent deliveries to stores as it looks to counter a nationwide shortage in U.S. supermarkets, an executive told Reuters. Reckitt, which makes its U.S. formula in three facilities in Michigan, Indiana and Minnesota, has also granted plants "unlimited overtime" to put in extra shifts, Robert Cleveland, senior vice president, North America and Europe Nutrition at Reckitt, told Reuters in an interview. | Baby formula aisles at supermarkets have been emptied by panicked parents since top U.S. manufacturer Abbott Laboratories ABT.N in February recalled dozens of types of its Similac, Alimentum and EleCare formulas. By Richa Naidu LONDON, May 17 (Reuters) - Reckitt Benckiser RKT.L is boosting baby formula production by about 30% and making more frequent deliveries to stores as it looks to counter a nationwide shortage in U.S. supermarkets, an executive told Reuters. Prior to the Abbott recall, Reckitt supplied just over a third of the U.S. infant formula market compared with Abbott's roughly 44%. |
31667.0 | 2022-05-16 00:00:00 UTC | Abbott, FDA enter deal over reopening of baby formula facility in Michigan | ABT | https://www.nasdaq.com/articles/abbott-fda-enter-deal-over-reopening-of-baby-formula-facility-in-michigan | nan | nan | Adds details on agreement, background on formula recall
May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it had struck a deal with the U.S. health regulator under which it would resume production of baby formula at its troubled Michigan plant in two weeks, following certain clearances.
The U.S. Food and Drug Administration began looking into the facility after complaints about bacterial infections in infants who had consumed the products.
Abbott, the biggest U.S. supplier of milk formula, in February recalled Similac and other baby formula made at the Michigan facility.
The company, which shutdown production at the plant in February, said last week it could restart production of infant formula at its Michigan facility within two weeks, subject to approval from the FDA.
"This is a major step toward re-opening our Sturgis facility so we can ease the nationwide formula shortage. We look forward to working with the FDA to quickly and safely re-open the facility," Chief Executive Officer Robert Ford said on Monday.
Abbott said it has been working on corrective actions since the FDA inspection and submitted a response and corrective action plan to the regulator on April 8.
The company reiterated that once the FDA confirms the initial requirements for start-up have been met, the site could be restarted within two weeks.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Amy Caren Daniel)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on agreement, background on formula recall May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it had struck a deal with the U.S. health regulator under which it would resume production of baby formula at its troubled Michigan plant in two weeks, following certain clearances. The U.S. Food and Drug Administration began looking into the facility after complaints about bacterial infections in infants who had consumed the products. We look forward to working with the FDA to quickly and safely re-open the facility," Chief Executive Officer Robert Ford said on Monday. | Adds details on agreement, background on formula recall May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it had struck a deal with the U.S. health regulator under which it would resume production of baby formula at its troubled Michigan plant in two weeks, following certain clearances. Abbott, the biggest U.S. supplier of milk formula, in February recalled Similac and other baby formula made at the Michigan facility. The company, which shutdown production at the plant in February, said last week it could restart production of infant formula at its Michigan facility within two weeks, subject to approval from the FDA. | Adds details on agreement, background on formula recall May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it had struck a deal with the U.S. health regulator under which it would resume production of baby formula at its troubled Michigan plant in two weeks, following certain clearances. Abbott, the biggest U.S. supplier of milk formula, in February recalled Similac and other baby formula made at the Michigan facility. The company, which shutdown production at the plant in February, said last week it could restart production of infant formula at its Michigan facility within two weeks, subject to approval from the FDA. | Adds details on agreement, background on formula recall May 16 (Reuters) - Abbott Laboratories ABT.N said on Monday it had struck a deal with the U.S. health regulator under which it would resume production of baby formula at its troubled Michigan plant in two weeks, following certain clearances. The company, which shutdown production at the plant in February, said last week it could restart production of infant formula at its Michigan facility within two weeks, subject to approval from the FDA. "This is a major step toward re-opening our Sturgis facility so we can ease the nationwide formula shortage. |
31668.0 | 2022-05-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 5/15/2022 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-5-15-2022 | 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.
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
Full Guru Analysis for ABT>
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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.
Full Guru Analysis for ABC>
Full Factor Report for ABC>
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
Full Guru Analysis for ENSG>
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HCA HEALTHCARE INC (HCA) is a large-cap value 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: HCA Healthcare, Inc. is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. It owns and operates approximately 182 hospitals, comprised of 175 general, acute care hospitals; five psychiatric hospitals; and two rehabilitation hospitals. The Company also operates around 125 freestanding surgery centers and over 21 freestanding endoscopy centers. The Company operates in two geographically organized groups: The National and American Groups. The National Group includes 96 hospitals located in Alaska, California, Florida, Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, North Carolina, South Carolina, Utah and Virginia. The American Group includes approximately 79 hospitals located in Colorado, Kansas, southern Kentucky, Louisiana, Missouri, Tennessee and Texas. The Company also operates seven hospitals in England. Its facilities are located in over 20 states and England.
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 HCA HEALTHCARE INC
Full Guru Analysis for HCA>
Full Factor Report for HCA>
NOVO NORDISK A/S (ADR) (NVO) 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: Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
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 NOVO NORDISK A/S (ADR)
Full Guru Analysis for NVO>
Full Factor Report for NVO>
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. | 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> AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs 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 ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> AMERISOURCEBERGEN CORP. (ABC) 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 HCA HEALTHCARE INC Full Guru Analysis for HCA> Full Factor Report for HCA> NOVO NORDISK A/S (ADR) (NVO) 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 ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs industry. 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. | 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> AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. |
31669.0 | 2022-05-14 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy in the Stock Market Sell-Off | ABT | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-in-the-stock-market-sell-off | nan | nan | Stock market crashes and corrections happen. Since the beginning of the year, the S&P 500 has been down over 17%. In fact, since the end of World War II, the benchmark index has tumbled more than 10% around 30 separate times.
A bear market of at least a 20% decline will also eventually happen again, maybe even this month. Soaring inflation, stubborn supply-chain problems, and a Federal Reserve determined to raise interest rates to combat runaway price increases make the likelihood all the greater.
Image source: Getty Images.
St. Louis Fed president James Bullard said it's a "fantasy" to believe the worst inflation the U.S. has experienced in 40 years could be tamed by tiptoeing around it. He indicated a need for aggressive interest rate hikes to the point where economic growth stops, and perhaps even contracts.
But even if a bear market did happen, it's important to keep such downturns in perspective. The Schwab Center for Financial Research says the average bear market has lasted only about 17 months.
That suggests investors should not cower in the face of a decline, but rather be ready to spring into action. The following three supercharged dividend stocks are good bets to carry you through the low points of any correction and beyond.
Image source: Getty Images.
AbbVie
Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll.
Internationally, Humira revenue tumbled 22% in the quarter to $743 million because of the new competition, and they'll begin showing up in the U.S. next year when Humira goes off-patent. But the cliff isn't nearly as steep as once thought. Humira has multiple indications it's approved for in the U.S. and abroad, so it will still be a massively growing therapy for years to come despite the presence of biosimilars.
And AbbVie has other big drugs that are growing too. Skyrizi revenue was almost $1 billion in the first quarter, a 66% increase , and it accounts for 23% of the total prescription share in the U.S. biologic market. Meanwhile, rheumatoid arthritis therapy Rinvoq saw revenue jump 57% to almost $500 million. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%).
AbbVie is a solid growth business and pays a dividend yielding 3.7% annually. From its beginning in 2013 as a spinoff from Abbott Labs, AbbVie has increased its dividend by more than 250% and raised it every year. Inheriting the dividend history of Abbott, it's also considered a Dividend Aristocrat.
Image source: Getty Images.
Pfizer
Pfizer (NYSE: PFE) is another pharmaceutical giant that, after the start of the pandemic, became all about its COVID-19 vaccines. Comirnaty, the vaccine it developed with BioNTech, generated $13.2 billion in first-quarter sales as global uptake in pediatric and booster shots rose. This represents 89% of Pfizer's vaccine portfolio as well as 51% of total revenue. With the pharma company now seeking approval for booster shots for 5- to 11-year-olds, this niche still has plenty of legs for more growth.
Paxlovid, Pfizer's oral COVID treatment, also gained considerable ground, growing 72% year over year, despite unfavorable currency exchange rates. It brought in almost $1.5 billion in sales, and it is expected to contribute $22 billion for the full year based on signed supply contracts signed so far this year.
With Comirnaty forecast to bring in $32 billion in full-year sales, the two treatments will represent between 53% and 55% of full-year revenue. The rest of its Covid-related portfolio boosts that to about 60% of the total, which does raise the specter of Pfizer being too dependent on COVID-19 products.
That's certainly the case at the moment. But with more than two-dozen phase 3 trials ongoing, Pfizer has a better-than-average chance of finding more than a few winning treatments to bolster its business once the immediacy of the COVID-19 threat fades.
The shares are also trading at a significant discount of 11 times trailing earnings and 9 times next year's estimates -- as well as just 13 times free cash flow. With a dividend yielding 3.2% annually, it has made the payout since 1980 and has increased the dividend every year since 2009 (it had cut its dividend in half earlier that year when it was going to buy Wyeth).
Image source: Getty Images.
Walgreens Boots Alliance
Healthcare retailer Walgreens Boots Alliance (NASDAQ: WBA) is down 17% so far in 2022, but the coming recession shouldn't be a major factor in whether the pharmacy's stock goes up and down. Regardless of the economy, people get sick, maybe even more so in bad times.
But Walgreens has been on a cost-cutting program that has wiped out $2 billion in expenses ahead of schedule, while its transformation plan is reportedly on track to deliver $3.3 billion in annual cost savings by fiscal 2024 (which starts in September of next year).
Although its second-quarter earnings hiccup caused investors to dump its stock, sales were still growing, operating income was rising, and its retail footprint saw record comparable sales with a nearly 15% gain. It's also a solid dividend stock, with 46 consecutive years of increasing the payout, which puts it on track to be a Dividend King in a few years. And because its financial condition is solid and can easily cover its payout, that should not be a problem.
With the dividend yielding a generous 4.4% and its stock even cheaper than Pfizer at just six times trailing earnings and eight times estimates (its free cash flow multiple is slightly more elevated at almost 19), it's a good pick for a growing dividend stock to settle into safely during market turmoil.
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Rich Duprey has positions in Walgreens Boots Alliance. 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. | Soaring inflation, stubborn supply-chain problems, and a Federal Reserve determined to raise interest rates to combat runaway price increases make the likelihood all the greater. Comirnaty, the vaccine it developed with BioNTech, generated $13.2 billion in first-quarter sales as global uptake in pediatric and booster shots rose. But with more than two-dozen phase 3 trials ongoing, Pfizer has a better-than-average chance of finding more than a few winning treatments to bolster its business once the immediacy of the COVID-19 threat fades. | AbbVie is a solid growth business and pays a dividend yielding 3.7% annually. Walgreens Boots Alliance Healthcare retailer Walgreens Boots Alliance (NASDAQ: WBA) is down 17% so far in 2022, but the coming recession shouldn't be a major factor in whether the pharmacy's stock goes up and down. With the dividend yielding a generous 4.4% and its stock even cheaper than Pfizer at just six times trailing earnings and eight times estimates (its free cash flow multiple is slightly more elevated at almost 19), it's a good pick for a growing dividend stock to settle into safely during market turmoil. | With a dividend yielding 3.2% annually, it has made the payout since 1980 and has increased the dividend every year since 2009 (it had cut its dividend in half earlier that year when it was going to buy Wyeth). It's also a solid dividend stock, with 46 consecutive years of increasing the payout, which puts it on track to be a Dividend King in a few years. With the dividend yielding a generous 4.4% and its stock even cheaper than Pfizer at just six times trailing earnings and eight times estimates (its free cash flow multiple is slightly more elevated at almost 19), it's a good pick for a growing dividend stock to settle into safely during market turmoil. | AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) still relies upon blockbuster anti-inflammatory drug Humira for the bulk of its revenue -- $4.7 billion in the first quarter, or 35% of the total $13.5 billion generated -- but the rise of biosimilars will eventually take its toll. AbbVie's neuroscience portfolio also contributed some $1.5 billion in revenue (up 20%) and its aesthetics portfolio brought in another $1.4 billion (up 22.5%). * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
31670.0 | 2022-05-13 00:00:00 UTC | EXCLUSIVE-Maker of Walmart, Amazon store-brand infant formulas expects shortages through rest of 2022 | ABT | https://www.nasdaq.com/articles/exclusive-maker-of-walmart-amazon-store-brand-infant-formulas-expects-shortages-through-0 | nan | nan | By Jessica DiNapoli
NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters.
Perrigo's formula manufacturing facilities in Ohio and Vermont are now running at 115% of capacity, Kessler said. At the request of the U.S. Food and Drug Administration, the company is making only four items, the store-brand versions of Similac Pro Sensitive and Pro Advance and Enfamil Gentle Ease and Infant, Kessler said. Perrigo also has a smaller business making some national formula brands including Bobbie.
The closure of Abbott Laboratories' ABT.Ninfant-formula plant in Sturgis, Michigan, exacerbated national pandemic-related shortages, leading to empty shelves in big box stores and supermarkets and panicked parents. Abbott's brands include Similac formulas.
Perrigo is working with retailers including Walmart and Target Corp TGT.N so they "get something each week," Kessler said. Retailers' allocations are based on an average of what the retailers received prior to "this crisis," he said.
"We have stepped up and are killing ourselves to do everything we can," Kessler said.
Some retailers including CVS Health Corp CVS.N and Target are rationing baby formula.
The White House on Thursday announced steps taking to alleviate the shortage, including permitting more imports.
French food and beverage company Danone SADANO.PA, which also makes infant formulas,said the "unexpected Abbott Nutrition recall in February has led to a surge in demand in the U.S. market.
"We are in discussions with the U.S. authorities to see how we can support them in addressing their shortages.”
Of the total U.S. baby formula market, Perrigo makes up roughly 8%, Kessler said, adding that it has gained share as it has worked to satisfy the soaring demand.
Due to "massive inflation," Perrigo raised prices by about 3% in the first quarter, Kessler said.
The company has ordered materials to meet the heightened level of demand throughout the year, he said.
Bobbie, a European-style infant formula new to the market, saw its customer count double the first week after the recall of Abbott formulas, and it has continued to climb, CEO Laura Modi told Reuters. Perrigo manufacturers Bobbie's formula, but can only meet about 50% of the company's demand, Modi said, leading it to stop taking new customers. Perrigo can meet 100% of Bobbie's current customer needs, she said.
Bobbie has about 70,000 customers.
Abbott closed its manufacturing facility in Michigan after complaints of bacterial contamination.
The FDA later cited five bacterial infections reported in babies given the company's formula, including two deaths. Abbott has said its plants are "not likely the source of infection" and is planning on re-opening the facility in the next two weeks.
(Reporting by Jessica DiNapoli in New York and Richa Naidu in London Editing by Nick Zieminski)
((Jessica.DiNapoli@thomsonreuters.com; 845-591-4428; Twitter: @jessicadinapoli))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The closure of Abbott Laboratories' ABT.Ninfant-formula plant in Sturgis, Michigan, exacerbated national pandemic-related shortages, leading to empty shelves in big box stores and supermarkets and panicked parents. French food and beverage company Danone SADANO.PA, which also makes infant formulas,said the "unexpected Abbott Nutrition recall in February has led to a surge in demand in the U.S. market. "We are in discussions with the U.S. authorities to see how we can support them in addressing their shortages.” Of the total U.S. baby formula market, Perrigo makes up roughly 8%, Kessler said, adding that it has gained share as it has worked to satisfy the soaring demand. | The closure of Abbott Laboratories' ABT.Ninfant-formula plant in Sturgis, Michigan, exacerbated national pandemic-related shortages, leading to empty shelves in big box stores and supermarkets and panicked parents. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. Perrigo also has a smaller business making some national formula brands including Bobbie. | The closure of Abbott Laboratories' ABT.Ninfant-formula plant in Sturgis, Michigan, exacerbated national pandemic-related shortages, leading to empty shelves in big box stores and supermarkets and panicked parents. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. Bobbie, a European-style infant formula new to the market, saw its customer count double the first week after the recall of Abbott formulas, and it has continued to climb, CEO Laura Modi told Reuters. | The closure of Abbott Laboratories' ABT.Ninfant-formula plant in Sturgis, Michigan, exacerbated national pandemic-related shortages, leading to empty shelves in big box stores and supermarkets and panicked parents. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. Perrigo is working with retailers including Walmart and Target Corp TGT.N so they "get something each week," Kessler said. |
31671.0 | 2022-05-13 00:00:00 UTC | EXCLUSIVE-Maker of Walmart, Amazon store-brand infant formulas expects shortages through rest of 2022 | ABT | https://www.nasdaq.com/articles/exclusive-maker-of-walmart-amazon-store-brand-infant-formulas-expects-shortages-through | nan | nan | By Jessica DiNapoli
NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters.
Perrigo's formula manufacturing facilities in Ohio and Vermont are now running at 115% of full capacity, Kessler said. At the request of the U.S. Food and Drug Administration, the company is making only four items, the store-brand versions of Similac Pro Sensitive and Pro Advance and Enfamil Gentle Ease and Infant, Kessler said.
The infant formula maker is also working with retailers including Walmart and Target Corp TGT.N so they "get something each week," Kessler said. Retailers' allocations are based on an average of what the retailers' received prior to "this crisis," he said.
The closure of an Abbott Laboratories ABT.N infant-formula plant in Michigan exacerbated pandemic-related shortages, leading to empty shelves in big box stores and supermarkets.
(Reporting by Jessica DiNapoli in New York Editing by Nick Zieminski)
((Jessica.DiNapoli@thomsonreuters.com; 845-591-4428; Twitter: @jessicadinapoli))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The closure of an Abbott Laboratories ABT.N infant-formula plant in Michigan exacerbated pandemic-related shortages, leading to empty shelves in big box stores and supermarkets. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. The infant formula maker is also working with retailers including Walmart and Target Corp TGT.N so they "get something each week," Kessler said. | The closure of an Abbott Laboratories ABT.N infant-formula plant in Michigan exacerbated pandemic-related shortages, leading to empty shelves in big box stores and supermarkets. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. Perrigo's formula manufacturing facilities in Ohio and Vermont are now running at 115% of full capacity, Kessler said. | The closure of an Abbott Laboratories ABT.N infant-formula plant in Michigan exacerbated pandemic-related shortages, leading to empty shelves in big box stores and supermarkets. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. At the request of the U.S. Food and Drug Administration, the company is making only four items, the store-brand versions of Similac Pro Sensitive and Pro Advance and Enfamil Gentle Ease and Infant, Kessler said. | The closure of an Abbott Laboratories ABT.N infant-formula plant in Michigan exacerbated pandemic-related shortages, leading to empty shelves in big box stores and supermarkets. By Jessica DiNapoli NEW YORK, May 13 (Reuters) - Perrigo Company PLC PRGO.N, which makes store-brand baby formulas for retailers including Walmart Inc WMT.N and Amazon.com Inc AMZN.O expects shortages and heightened demand to last for the "balance of the year," said CEO Murray Kessler in an interview with Reuters. Perrigo's formula manufacturing facilities in Ohio and Vermont are now running at 115% of full capacity, Kessler said. |
31672.0 | 2022-05-13 00:00:00 UTC | Abbott says shipped millions of cans of infant formula from Ireland | ABT | https://www.nasdaq.com/articles/abbott-says-shipped-millions-of-cans-of-infant-formula-from-ireland | nan | nan | Rewrites throughout, adds background
May 13 (Reuters) - Abbott Laboratories ABT.N said on Friday it has air shipped millions of cans of infant formula powder into the United States from its facility in Ireland to address shortages here as it tries to reopen its Michigan manufacturing plant.
The company said in a blog it was shipping infant formula produced at its Cootehill, Ireland facility to be used by consumers eligible for the U.S. government's Women, Infants and Children (WIC) nutrition assistance program for low-income families.
Abbott in February recalled some baby formulas, including certain Similac products, made at the Sturgis plant after complaints about bacterial infections in infants who had consumed the products. It is working with the U.S. Food and Drug Administration to reopen the plant.
The company said it has also been working with the U.S. Department of Agriculture (USDA) and WIC agencies. In states where Abbott has the WIC contract, it will pay rebates on competing products if Similac is not available through August.
In a May 13 letter to Abbott Chairman Robert Ford, USDA Secretary Thomas Vilsack asked for the policy to be put in place through August instead of month-by-month.
The company also said it has prioritized infant formula production at its facility at Columbus, Ohio, converting other liquid manufacturing lines into making Similac liquid ready-to-feed.
Lack of supply from Abbott has exacerbated a broad shortage of baby formula, which was been hit by supply chain snags and historic inflation rates.
U.S. President Joe Biden met on Thursday with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access.
Separately, the U.S. Centers for Disease Control and Prevention (CDC) closed its investigation on Abbott's infant formula, with no additional cases of infections, according to a notice on the FDA website.
(Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)
((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. | Rewrites throughout, adds background May 13 (Reuters) - Abbott Laboratories ABT.N said on Friday it has air shipped millions of cans of infant formula powder into the United States from its facility in Ireland to address shortages here as it tries to reopen its Michigan manufacturing plant. In a May 13 letter to Abbott Chairman Robert Ford, USDA Secretary Thomas Vilsack asked for the policy to be put in place through August instead of month-by-month. Separately, the U.S. Centers for Disease Control and Prevention (CDC) closed its investigation on Abbott's infant formula, with no additional cases of infections, according to a notice on the FDA website. | Rewrites throughout, adds background May 13 (Reuters) - Abbott Laboratories ABT.N said on Friday it has air shipped millions of cans of infant formula powder into the United States from its facility in Ireland to address shortages here as it tries to reopen its Michigan manufacturing plant. The company said in a blog it was shipping infant formula produced at its Cootehill, Ireland facility to be used by consumers eligible for the U.S. government's Women, Infants and Children (WIC) nutrition assistance program for low-income families. U.S. President Joe Biden met on Thursday with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access. | Rewrites throughout, adds background May 13 (Reuters) - Abbott Laboratories ABT.N said on Friday it has air shipped millions of cans of infant formula powder into the United States from its facility in Ireland to address shortages here as it tries to reopen its Michigan manufacturing plant. The company said in a blog it was shipping infant formula produced at its Cootehill, Ireland facility to be used by consumers eligible for the U.S. government's Women, Infants and Children (WIC) nutrition assistance program for low-income families. Abbott in February recalled some baby formulas, including certain Similac products, made at the Sturgis plant after complaints about bacterial infections in infants who had consumed the products. | Rewrites throughout, adds background May 13 (Reuters) - Abbott Laboratories ABT.N said on Friday it has air shipped millions of cans of infant formula powder into the United States from its facility in Ireland to address shortages here as it tries to reopen its Michigan manufacturing plant. Abbott in February recalled some baby formulas, including certain Similac products, made at the Sturgis plant after complaints about bacterial infections in infants who had consumed the products. It is working with the U.S. Food and Drug Administration to reopen the plant. |
31673.0 | 2022-05-13 00:00:00 UTC | Here's Why This Dividend King Is a Buy for Income Investors | ABT | https://www.nasdaq.com/articles/heres-why-this-dividend-king-is-a-buy-for-income-investors | nan | nan | During a market correction, sometimes even the highest quality blue-chip stocks can be hit hard. With its stock falling 23% so far this year, Abbott Laboratories (NYSE: ABT) is a fitting recent example. Compared to the S&P 500 index's 20% year-to-date decline, Abbott Laboratories' drop has been a little more pronounced.
But this sell-off appears to have created a buying opportunity for yield-hungry investors. Let's dive into Abbott Laboratories' fundamentals and valuation to find out why.
Image source: Getty Images.
Another quarter, another revenue and earnings beat
Abbott Laboratories was able to easily surpass analysts' expectations for both revenue and non-GAAP earnings per share (EPS) when it reported first-quarter results on April 20.
The company recorded $11.9 billion in revenue for the quarter, which works out to a 13.8% year-over-year growth rate. This topped the analyst consensus of $11 billion in revenue for the quarter. So, how did Abbott Laboratories exceed the average analyst revenue estimate for the ninth quarter out of the past 10?
The company's only segment to not report revenue growth in the first quarter was nutrition. The segment posted $1.9 billion in sales for the quarter, which was down 7% over the year-ago period. And that's only because the company voluntarily recalled baby formula manufactured at one of its U.S. plants.
Abbott Laboratories' diagnostics, medical devices, and established pharmaceutical segments each produced high-single-digit to low-double-digit year-over-year revenue growth in the first quarter. Due to the high demand for its rapid COVID-19 testing products, Abbott Laboratories' diagnostics segment recorded $5.3 billion in revenue for the quarter. This is equivalent to a 31.7% revenue growth rate over the year-ago period.
For the context of just how important the diagnostics segment has been to Abbott Laboratories' recent success, it contributed to 44.4% of the company's first-quarter sales. Yet it accounted for 88.4% of Abbott Laboratories' total revenue growth in the quarter.
Abbott Laboratories generated $1.73 in adjusted diluted EPS for the first quarter, which equates to a 31.1% growth rate over the prior year. And this came in well ahead of the $1.47 average analyst EPS prediction, which was the 10th quarter out of the last 10 that Abbott Laboratories matched or beat the average analyst EPS forecast.
This impressive earnings growth was due to two factors besides the company's higher sales base. Abbott Laboratories' increased operating efficiency helped propel its non-GAAP net margin 320-basis points higher year-over-year to 25.9% in the first quarter. And a 0.9% reduction in its share count to 1.78 billion translated into a bigger piece of the profit pie for shareholders.
Due to Abbott Laboratories' strong product portfolio and innovative track record, analysts anticipate that the company will deliver 11.5% annual earnings growth over the next five years.
Dividend growth should continue in the future
Aside from Abbott Laboratories' bright growth outlook, the Dividend King also has the flexibility to keep growing its payout to shareholders at a high-single-digit annual rate.
That's because the stock's dividend payout ratio will be around 40% in 2022. This gives Abbott Laboratories plenty of capital for acquisitions, debt repayment, and share buyback programs to keep adjusted diluted EPS moving upward.
The company also offers investors a market-topping 1.8% dividend yield. So, the stock looks like it can provide decent immediate income with the potential for even better future income as well.
A discounted medical devices stock
Abbott Laboratories' forward price-to-earnings ratio of 22 is slightly below the medical devices industry average of 23. This more than compensates for the fact that the stock's 11.5% annual earnings growth outlook is just below the industry average of 12.8%. With Abbott Laboratories' quality and reputation as a Dividend King, the stock should arguably be trading in line with its industry. Thus, the recent weakness in Abbott Laboratories' stock seems to have made it a great buy.
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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. | With its stock falling 23% so far this year, Abbott Laboratories (NYSE: ABT) is a fitting recent example. Abbott Laboratories' diagnostics, medical devices, and established pharmaceutical segments each produced high-single-digit to low-double-digit year-over-year revenue growth in the first quarter. Due to Abbott Laboratories' strong product portfolio and innovative track record, analysts anticipate that the company will deliver 11.5% annual earnings growth over the next five years. | With its stock falling 23% so far this year, Abbott Laboratories (NYSE: ABT) is a fitting recent example. Abbott Laboratories' diagnostics, medical devices, and established pharmaceutical segments each produced high-single-digit to low-double-digit year-over-year revenue growth in the first quarter. Due to the high demand for its rapid COVID-19 testing products, Abbott Laboratories' diagnostics segment recorded $5.3 billion in revenue for the quarter. | With its stock falling 23% so far this year, Abbott Laboratories (NYSE: ABT) is a fitting recent example. Another quarter, another revenue and earnings beat Abbott Laboratories was able to easily surpass analysts' expectations for both revenue and non-GAAP earnings per share (EPS) when it reported first-quarter results on April 20. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. | With its stock falling 23% so far this year, Abbott Laboratories (NYSE: ABT) is a fitting recent example. The company recorded $11.9 billion in revenue for the quarter, which works out to a 13.8% year-over-year growth rate. Abbott Laboratories generated $1.73 in adjusted diluted EPS for the first quarter, which equates to a 31.1% growth rate over the prior year. |
31674.0 | 2022-05-13 00:00:00 UTC | U.S. House panel to investigate infant milk formula shortage -ABC | ABT | https://www.nasdaq.com/articles/u.s.-house-panel-to-investigate-infant-milk-formula-shortage-abc | nan | nan | Adds quotes from letter to companies, background
WASHINGTON, May 13 (Reuters) - The U.S. House Oversight Committee plans to investigate a nationwide baby formula shortage and will seek records from the four largest manufacturers, ABC News reported on Friday, citing letters from the committee chairwoman.
"The national formula shortage poses a threat to the health and economic security of infants and families in communities across the country - particularly those with less income who have historically experienced health inequities, including food insecurity," U.S. Representative Carolyn Maloney, who leads the committee, wrote in letters to Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo, ABC reported.
Maloney told ABC the committee is asking the companies for a briefing by the end of the month and wants to know: Do they have enough supply to meet demand? Is there a supply chain problem that can be fixed and how can they make sure this will not happen again?
The investigation, which the report said will look at potential price gouging among other issues, is the latest move in Washington to address the shortage.
U.S. President Joe Biden met on Thursday with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access.
Two other House of Representatives committees have announced hearings on the shortage.
The U.S. Food & Drug Administration (FDA) will announce new steps in the coming days on importing certain infant formula products, the White House said, and Biden has asked the Federal Trade Commission (FTC) to probe reports of predatory conduct such as price gouging.
Formula shortages because of a factory being taken offline have been compounded by supply chain snags and historic inflation, leaving about 40% of baby formula products out of stock nationwide, according to data firm Datasembly.
Less than half of babies born in the United States were exclusively breastfed through their first three months, the Centers for Disease Control and Prevention 2020 Breastfeeding Report Card showed.
(Reporting by Doina Chiacu; editing by John Stonestreet and Chizu Nomiyama)
((doina.chiacu@thomsonreuters.com; 202-898-8322;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "The national formula shortage poses a threat to the health and economic security of infants and families in communities across the country - particularly those with less income who have historically experienced health inequities, including food insecurity," U.S. Representative Carolyn Maloney, who leads the committee, wrote in letters to Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo, ABC reported. The U.S. Food & Drug Administration (FDA) will announce new steps in the coming days on importing certain infant formula products, the White House said, and Biden has asked the Federal Trade Commission (FTC) to probe reports of predatory conduct such as price gouging. Less than half of babies born in the United States were exclusively breastfed through their first three months, the Centers for Disease Control and Prevention 2020 Breastfeeding Report Card showed. | Adds quotes from letter to companies, background WASHINGTON, May 13 (Reuters) - The U.S. House Oversight Committee plans to investigate a nationwide baby formula shortage and will seek records from the four largest manufacturers, ABC News reported on Friday, citing letters from the committee chairwoman. "The national formula shortage poses a threat to the health and economic security of infants and families in communities across the country - particularly those with less income who have historically experienced health inequities, including food insecurity," U.S. Representative Carolyn Maloney, who leads the committee, wrote in letters to Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo, ABC reported. U.S. President Joe Biden met on Thursday with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access. | Adds quotes from letter to companies, background WASHINGTON, May 13 (Reuters) - The U.S. House Oversight Committee plans to investigate a nationwide baby formula shortage and will seek records from the four largest manufacturers, ABC News reported on Friday, citing letters from the committee chairwoman. "The national formula shortage poses a threat to the health and economic security of infants and families in communities across the country - particularly those with less income who have historically experienced health inequities, including food insecurity," U.S. Representative Carolyn Maloney, who leads the committee, wrote in letters to Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo, ABC reported. Formula shortages because of a factory being taken offline have been compounded by supply chain snags and historic inflation, leaving about 40% of baby formula products out of stock nationwide, according to data firm Datasembly. | Adds quotes from letter to companies, background WASHINGTON, May 13 (Reuters) - The U.S. House Oversight Committee plans to investigate a nationwide baby formula shortage and will seek records from the four largest manufacturers, ABC News reported on Friday, citing letters from the committee chairwoman. "The national formula shortage poses a threat to the health and economic security of infants and families in communities across the country - particularly those with less income who have historically experienced health inequities, including food insecurity," U.S. Representative Carolyn Maloney, who leads the committee, wrote in letters to Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo, ABC reported. Two other House of Representatives committees have announced hearings on the shortage. |
31675.0 | 2022-05-12 00:00:00 UTC | Biden to get update on U.S. infant formula supplies on Thursday | ABT | https://www.nasdaq.com/articles/biden-to-get-update-on-u.s.-infant-formula-supplies-on-thursday | nan | nan | Adds quote, background
WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden will speak with infant formula retailers and manufacturers about supply issues on Thursday before the White House announces additional actions to address shortages, a White House official said.
Shortages developed after Abbott Laboratories ABT.N in February recalled Similac and other baby formula made at its Michigan plant following complaints of bacterial infections in infants who consumed the products.
Abbott, the biggest supplier of milk formula in the United States, said on Wednesdasy it could restart production within two weeks of infant formula at the Michigan plant that has been tied to the shortages.
Biden will "receive an update on efforts to make infant formula supply more available to American families," the White House official said.
The official did not identify which company representatives would be at the meeting.
The U.S. Food and Drug Administration has said it is working with manufacturers to alleviate supply issues and that several companies are at or over capacity.
A number of U.S. retailers, including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O, have limited in-store and online formula purchases.
(Reporting by Jeff Mason, Doina Chiacu and Susan Heavey; Editing by Bill Berkrot)
((sheavey@thomsonreuters.com; +1-202-898-8300;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shortages developed after Abbott Laboratories ABT.N in February recalled Similac and other baby formula made at its Michigan plant following complaints of bacterial infections in infants who consumed the products. Adds quote, background WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden will speak with infant formula retailers and manufacturers about supply issues on Thursday before the White House announces additional actions to address shortages, a White House official said. Biden will "receive an update on efforts to make infant formula supply more available to American families," the White House official said. | Shortages developed after Abbott Laboratories ABT.N in February recalled Similac and other baby formula made at its Michigan plant following complaints of bacterial infections in infants who consumed the products. Adds quote, background WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden will speak with infant formula retailers and manufacturers about supply issues on Thursday before the White House announces additional actions to address shortages, a White House official said. Abbott, the biggest supplier of milk formula in the United States, said on Wednesdasy it could restart production within two weeks of infant formula at the Michigan plant that has been tied to the shortages. | Shortages developed after Abbott Laboratories ABT.N in February recalled Similac and other baby formula made at its Michigan plant following complaints of bacterial infections in infants who consumed the products. Adds quote, background WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden will speak with infant formula retailers and manufacturers about supply issues on Thursday before the White House announces additional actions to address shortages, a White House official said. Abbott, the biggest supplier of milk formula in the United States, said on Wednesdasy it could restart production within two weeks of infant formula at the Michigan plant that has been tied to the shortages. | Shortages developed after Abbott Laboratories ABT.N in February recalled Similac and other baby formula made at its Michigan plant following complaints of bacterial infections in infants who consumed the products. Adds quote, background WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden will speak with infant formula retailers and manufacturers about supply issues on Thursday before the White House announces additional actions to address shortages, a White House official said. Abbott, the biggest supplier of milk formula in the United States, said on Wednesdasy it could restart production within two weeks of infant formula at the Michigan plant that has been tied to the shortages. |
31676.0 | 2022-05-12 00:00:00 UTC | Biden presses companies on infant formula, FDA to announce import steps | ABT | https://www.nasdaq.com/articles/biden-presses-companies-on-infant-formula-fda-to-announce-import-steps | nan | nan | WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden met with executives from infant formula manufactures and retailers including Target, Walmart and Nestle's Gerber on Thursday to discuss doing everything they could to get families access to formula, an administration official said.
The U.S. Food & Drug Administration will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission to use all its tools to probe reports of predatory conduct such as price gouging related to infant formula.
(Reporting by Jeff Mason and Christopher Gallagher)
((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden met with executives from infant formula manufactures and retailers including Target, Walmart and Nestle's Gerber on Thursday to discuss doing everything they could to get families access to formula, an administration official said. The U.S. Food & Drug Administration will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission to use all its tools to probe reports of predatory conduct such as price gouging related to infant formula. (Reporting by Jeff Mason and Christopher Gallagher) ((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden met with executives from infant formula manufactures and retailers including Target, Walmart and Nestle's Gerber on Thursday to discuss doing everything they could to get families access to formula, an administration official said. The U.S. Food & Drug Administration will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission to use all its tools to probe reports of predatory conduct such as price gouging related to infant formula. (Reporting by Jeff Mason and Christopher Gallagher) ((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden met with executives from infant formula manufactures and retailers including Target, Walmart and Nestle's Gerber on Thursday to discuss doing everything they could to get families access to formula, an administration official said. The U.S. Food & Drug Administration will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission to use all its tools to probe reports of predatory conduct such as price gouging related to infant formula. (Reporting by Jeff Mason and Christopher Gallagher) ((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, May 12 (Reuters) - U.S. President Joe Biden met with executives from infant formula manufactures and retailers including Target, Walmart and Nestle's Gerber on Thursday to discuss doing everything they could to get families access to formula, an administration official said. The U.S. Food & Drug Administration will announce new steps in the coming days regarding importing certain infant formula products from abroad, the White House said, and Biden has asked the Federal Trade Commission to use all its tools to probe reports of predatory conduct such as price gouging related to infant formula. (Reporting by Jeff Mason and Christopher Gallagher) ((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31677.0 | 2022-05-12 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-0 | nan | nan | Launched on 05/01/2006, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Medical Devices segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.79 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 0.41%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.32%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many 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 15.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT).
The top 10 holdings account for about 72.60% of total assets under management.
Performance and Risk
So far this year, IHI has lost about -22.36%, and is down about -10.66% in the last one year (as of 05/12/2022). During this past 52-week period, the fund has traded between $50.78 and $67.15.
The ETF has a beta of 0.89 and standard deviation of 24.10% 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 holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IHI is a great option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. First Trust Indxx Medical Devices ETF has $1.84 million in assets, SPDR S&P Health Care Equipment ETF has $399.39 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
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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 15.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report It has amassed assets over $6.79 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 15.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report Launched on 05/01/2006, the iShares U.S. Medical Devices ETF (IHI) is a passively managed exchange traded fund designed to provide a broad exposure to the Healthcare - Medical Devices segment of the equity market. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 15.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report Alternatives IShares U.S. Medical Devices ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 15.42% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Abbott Laboratories (ABT): Free Stock Analysis Report Alternatives IShares U.S. Medical Devices ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. |
31678.0 | 2022-05-12 00:00:00 UTC | How Will Baby Formula Shortage Affect Abbott? | ABT | https://www.nasdaq.com/articles/how-will-baby-formula-shortage-affect-abbott | nan | nan | Citing the voluntary recall of its certain infant formula products, medical devices and healthcare company, Abbott Laboratories (NYSE: ABT) lowered its full-year organic sales growth guidance during the Q1 conference call.
For context, Abbott voluntarily recalled some of its infant formula products (including Similac, Alimentum, and EleCare) earlier this year manufactured at its facility in Sturgis, Michigan.
The action came after the U.S. FDA (Food and Drug Administration) warned consumers not to use specific infant products from Abbott following cases of Cronobacter in four infants who consumed the products produced at the Sturgis plant.
The product recall and shuttering of Abbott’s Sturgis facility added to the worsening of the ongoing nationwide infant formula shortage.
To address the shortage concerns, the FDA has allowed Abbott to release supplies of certain specialty and metabolic formulas that were on hold at its Sturgis facility.
Further, Abbott unveiled the findings of the investigation at its Sturgis facility. The report stated that there was no link between infant illnesses and Abbott’s formulas. The report further highlighted that the finished product testing by Abbott and the FDA came negative for Cronobacter and/or Salmonella.
Abbott stated that it would take six to eight weeks to bring products to the store shelves after it restarts production, which is subject to FDA approval.
BTIG analyst Marie Thibault stated, “We think it could take some time to restart production, work through quality checks, and get product back on the shelf.” She added that “despite the shortage of baby formula, we think ABT may also need to make added investments to win back brand loyalty from parents.”
The analyst projects “a gradual recovery beginning in Q3.”
Thibault has a Buy recommendation on ABT stock with a price target of $140.
Bottom Line
While the recall would impact Abbott’s nutrition business sales, management is upbeat about other businesses. It forecasts high-single-digit organic sales growth in the rest of its businesses, including medical devices, diagnostics, and pharmaceuticals.
Furthermore, nutrition products that are not impacted by the recall are also growing well. New product launches and expansion into high-growth areas bode well for growth.
Wall Street analysts are bullish about ABT stock. Its Strong Buy consensus rating reflects seven Buy and one Hold recommendations. Further, ABT’s average price target of $142.63 indicates 34.8% upside potential to current levels.
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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. | Citing the voluntary recall of its certain infant formula products, medical devices and healthcare company, Abbott Laboratories (NYSE: ABT) lowered its full-year organic sales growth guidance during the Q1 conference call. BTIG analyst Marie Thibault stated, “We think it could take some time to restart production, work through quality checks, and get product back on the shelf.” She added that “despite the shortage of baby formula, we think ABT may also need to make added investments to win back brand loyalty from parents.” The analyst projects “a gradual recovery beginning in Q3.” Thibault has a Buy recommendation on ABT stock with a price target of $140. Wall Street analysts are bullish about ABT stock. | Citing the voluntary recall of its certain infant formula products, medical devices and healthcare company, Abbott Laboratories (NYSE: ABT) lowered its full-year organic sales growth guidance during the Q1 conference call. BTIG analyst Marie Thibault stated, “We think it could take some time to restart production, work through quality checks, and get product back on the shelf.” She added that “despite the shortage of baby formula, we think ABT may also need to make added investments to win back brand loyalty from parents.” The analyst projects “a gradual recovery beginning in Q3.” Thibault has a Buy recommendation on ABT stock with a price target of $140. Wall Street analysts are bullish about ABT stock. | Citing the voluntary recall of its certain infant formula products, medical devices and healthcare company, Abbott Laboratories (NYSE: ABT) lowered its full-year organic sales growth guidance during the Q1 conference call. BTIG analyst Marie Thibault stated, “We think it could take some time to restart production, work through quality checks, and get product back on the shelf.” She added that “despite the shortage of baby formula, we think ABT may also need to make added investments to win back brand loyalty from parents.” The analyst projects “a gradual recovery beginning in Q3.” Thibault has a Buy recommendation on ABT stock with a price target of $140. Wall Street analysts are bullish about ABT stock. | BTIG analyst Marie Thibault stated, “We think it could take some time to restart production, work through quality checks, and get product back on the shelf.” She added that “despite the shortage of baby formula, we think ABT may also need to make added investments to win back brand loyalty from parents.” The analyst projects “a gradual recovery beginning in Q3.” Thibault has a Buy recommendation on ABT stock with a price target of $140. Citing the voluntary recall of its certain infant formula products, medical devices and healthcare company, Abbott Laboratories (NYSE: ABT) lowered its full-year organic sales growth guidance during the Q1 conference call. Wall Street analysts are bullish about ABT stock. |
31679.0 | 2022-05-11 00:00:00 UTC | Abbott could restart infant formula production at Michigan plant in two weeks | ABT | https://www.nasdaq.com/articles/abbott-could-restart-infant-formula-production-at-michigan-plant-in-two-weeks | nan | nan | Adds details on production restart, background on formula shortage
May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks.
The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products.
Abbott will restart production of EleCare, Alimentum and metabolic formulas first, followed by Similac and other brands, after receiving the go-ahead from the U.S. Food & Drug Administration (FDA).
Once production is resumed, it will take six to eight weeks before the product returns to shelves.
Abbott is the leading supplier of milk formula in the United States and the recall has driven a shortage across the country, forcing many leading retailers to limit purchases.
The FDA has said it is working with manufacturers to alleviate supply issues and that several companies are at or over capacity.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on production restart, background on formula shortage May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. Abbott will restart production of EleCare, Alimentum and metabolic formulas first, followed by Similac and other brands, after receiving the go-ahead from the U.S. Food & Drug Administration (FDA). The FDA has said it is working with manufacturers to alleviate supply issues and that several companies are at or over capacity. | Adds details on production restart, background on formula shortage May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. Abbott will restart production of EleCare, Alimentum and metabolic formulas first, followed by Similac and other brands, after receiving the go-ahead from the U.S. Food & Drug Administration (FDA). | Adds details on production restart, background on formula shortage May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. Abbott will restart production of EleCare, Alimentum and metabolic formulas first, followed by Similac and other brands, after receiving the go-ahead from the U.S. Food & Drug Administration (FDA). | Adds details on production restart, background on formula shortage May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. Abbott is the leading supplier of milk formula in the United States and the recall has driven a shortage across the country, forcing many leading retailers to limit purchases. |
31680.0 | 2022-05-11 00:00:00 UTC | Abbott could restart infant formula production at Michigan plant | ABT | https://www.nasdaq.com/articles/abbott-could-restart-infant-formula-production-at-michigan-plant | nan | nan | May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks.
The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products.
It said the resumption was subject to FDA's approval.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. It said the resumption was subject to FDA's approval. | May 11 (Reuters) - Abbott Laboratories ABT.N said on Wednesday it could restart production of infant formula at its troubled Michigan facility within two weeks. The company in February recalled some baby formulas, including certain Similac products, made at the plant in Sturgis after complaints about bacterial infections in infants who had consumed the products. It said the resumption was subject to FDA's approval. |
31681.0 | 2022-05-11 00:00:00 UTC | U.S. lawmakers to examine infant formula shortage | ABT | https://www.nasdaq.com/articles/u.s.-lawmakers-to-examine-infant-formula-shortage | nan | nan | Adds details from statement, White House comment
WASHINGTON, May 11 (Reuters) - U.S. lawmakers plan to hold a hearing this month on shortages of infant formula, the House Energy and Commerce Committee said on Wednesday, calling the situation "increasingly alarming."
The House of Representatives panel, which is scheduled to meet May 25, did not name any company executives or other witnesses, but said it would release more details before the meeting.
The hearing will focus on the shortage's causes, efforts to increase production, and what action is needed "to ensure access to safe formula across the nation," the committee chair, Representative Frank Pallone, a Democrat, said in a statement.
White House spokesperson Karine Jean-Pierre on Wednesday also said it was a top priority to ensure that baby formula is available amid the shortage.
Pallone said lawmakers stood ready to work with President Joe Biden's administration to resolve the shortage, although it is unclear what specific steps Congress or the White House can take to boost supplies near-term.
The U.S. Food and Drug Administration has said it is working with manufacturers to alleviate supply issues and that several companies are at or over capacity.
Current constraints come after top supplier Abbott Laboratories ABT.N recalled Similac and other baby formula in February made at its plant in Michigan following complaints of bacterial infections in infants who consumed the products.
A number of U.S. retailers -- including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O -- have limited in-store and online formula purchases.
Supply chain snags and historic inflation have compounded the shortage, analysts have said, leaving about 40% of baby formula products out of stock nationwide.
Other infant formula makers in the U.S. market include British consumer goods firm Reckitt Benckiser RKT.L and Nestle SA NESN.S and Perrigo Company PLC PRGO.N.
Major U.S. retailers limit infant formula purchases on shortage
(Reporting by Susan Heavey; additional reporting by trevor Hunnicutt; editing by Katharine Jackson and Leslie Adler)
((sheavey@thomsonreuters.com; +1-202-898-8300;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Current constraints come after top supplier Abbott Laboratories ABT.N recalled Similac and other baby formula in February made at its plant in Michigan following complaints of bacterial infections in infants who consumed the products. The hearing will focus on the shortage's causes, efforts to increase production, and what action is needed "to ensure access to safe formula across the nation," the committee chair, Representative Frank Pallone, a Democrat, said in a statement. Pallone said lawmakers stood ready to work with President Joe Biden's administration to resolve the shortage, although it is unclear what specific steps Congress or the White House can take to boost supplies near-term. | Current constraints come after top supplier Abbott Laboratories ABT.N recalled Similac and other baby formula in February made at its plant in Michigan following complaints of bacterial infections in infants who consumed the products. Adds details from statement, White House comment WASHINGTON, May 11 (Reuters) - U.S. lawmakers plan to hold a hearing this month on shortages of infant formula, the House Energy and Commerce Committee said on Wednesday, calling the situation "increasingly alarming." Supply chain snags and historic inflation have compounded the shortage, analysts have said, leaving about 40% of baby formula products out of stock nationwide. | Current constraints come after top supplier Abbott Laboratories ABT.N recalled Similac and other baby formula in February made at its plant in Michigan following complaints of bacterial infections in infants who consumed the products. Adds details from statement, White House comment WASHINGTON, May 11 (Reuters) - U.S. lawmakers plan to hold a hearing this month on shortages of infant formula, the House Energy and Commerce Committee said on Wednesday, calling the situation "increasingly alarming." The hearing will focus on the shortage's causes, efforts to increase production, and what action is needed "to ensure access to safe formula across the nation," the committee chair, Representative Frank Pallone, a Democrat, said in a statement. | Current constraints come after top supplier Abbott Laboratories ABT.N recalled Similac and other baby formula in February made at its plant in Michigan following complaints of bacterial infections in infants who consumed the products. Adds details from statement, White House comment WASHINGTON, May 11 (Reuters) - U.S. lawmakers plan to hold a hearing this month on shortages of infant formula, the House Energy and Commerce Committee said on Wednesday, calling the situation "increasingly alarming." The House of Representatives panel, which is scheduled to meet May 25, did not name any company executives or other witnesses, but said it would release more details before the meeting. |
31682.0 | 2022-05-10 00:00:00 UTC | Major U.S. retailers limit infant formula purchases on shortage | ABT | https://www.nasdaq.com/articles/major-u.s.-retailers-limit-infant-formula-purchases-on-shortage | nan | nan | Repeats to change keyword used by media clients to SUPPLY-CHAIN/BABY FORUMLA from CVS HEALTH-INFANT FORMULA/; no change to text or headline
May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of infant formula due to a supply shortage.
The limits come after top supplier Abbott Laboratories ABT.N in February recalled some baby formula including Similac made at its plant in Michigan over complaints of bacterial infections in infants who consumed the products.
CVS said it last month limited in-store and online purchases of the products to three per order, while Walgreens issued a similar cap in March. Kroger KR.N has a limit of four products per customer and Target has had restrictions on online sales for weeks.
Abbott said on Tuesday it was "doing everything" it can to address the shortage, including prioritizing production of the products and air shipping them from its U.S. drug regulator-approved facility in Ireland.
The company is also working closely with the Food and Drug Administration to restart operations at its Michigan facility, a spokesperson said. No formula that has been distributed has tested positive for bacteria, according to the company.
The Similac maker is the leading supplier of milk formula in the United States with a market share of about 42% in 2021, followed by British consumer goods firm Reckitt Benckiser RKT.L with a nearly 38% share, according to Euromonitor data.
About 40% of baby formula products were out of stock across the United States last month, said Ben Reich, the chief executive of data firm Datasembly.
Supply chain snags, product recalls and historic inflation have compounded the shortage, he added.
(Reporting by Deborah Sophia, Manas Mishra and Leroy Leo in Bengaluru; Additional reporting by Richa Naidu in London; Editing by Aditya Soni)
((DeborahMary.Sophia@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 limits come after top supplier Abbott Laboratories ABT.N in February recalled some baby formula including Similac made at its plant in Michigan over complaints of bacterial infections in infants who consumed the products. CVS said it last month limited in-store and online purchases of the products to three per order, while Walgreens issued a similar cap in March. About 40% of baby formula products were out of stock across the United States last month, said Ben Reich, the chief executive of data firm Datasembly. | The limits come after top supplier Abbott Laboratories ABT.N in February recalled some baby formula including Similac made at its plant in Michigan over complaints of bacterial infections in infants who consumed the products. Repeats to change keyword used by media clients to SUPPLY-CHAIN/BABY FORUMLA from CVS HEALTH-INFANT FORMULA/; no change to text or headline May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of infant formula due to a supply shortage. About 40% of baby formula products were out of stock across the United States last month, said Ben Reich, the chief executive of data firm Datasembly. | The limits come after top supplier Abbott Laboratories ABT.N in February recalled some baby formula including Similac made at its plant in Michigan over complaints of bacterial infections in infants who consumed the products. Repeats to change keyword used by media clients to SUPPLY-CHAIN/BABY FORUMLA from CVS HEALTH-INFANT FORMULA/; no change to text or headline May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of infant formula due to a supply shortage. Abbott said on Tuesday it was "doing everything" it can to address the shortage, including prioritizing production of the products and air shipping them from its U.S. drug regulator-approved facility in Ireland. | The limits come after top supplier Abbott Laboratories ABT.N in February recalled some baby formula including Similac made at its plant in Michigan over complaints of bacterial infections in infants who consumed the products. CVS said it last month limited in-store and online purchases of the products to three per order, while Walgreens issued a similar cap in March. Abbott said on Tuesday it was "doing everything" it can to address the shortage, including prioritizing production of the products and air shipping them from its U.S. drug regulator-approved facility in Ireland. |
31683.0 | 2022-05-10 00:00:00 UTC | Major U.S. retailers limit baby formula purchases on shortage | ABT | https://www.nasdaq.com/articles/major-u.s.-retailers-limit-baby-formula-purchases-on-shortage | nan | nan | Adds details from Kroger, Target and Walgreens statements
May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of baby formula due to a supply shortfall.
The limits come after major supplier Abbott Laboratories ABT.N recalled some baby formula including Similac in February following complaints of bacterial infections in infants who consumed the products.
CVS said in an emailed statement it restricted in-store and online purchases to three per order last month, while Walgreens issued a similar cap early in March.
Grocer Kroger KR.N has a limit of four products per customer, while Target has had restrictions on online purchases for weeks.
Abbott announced last month it would release limited quantities of nutrition products that had been put on hold following the recall. It has said no formula that has been distributed tested positive for bacteria.
The company did not immediately respond to a request for comment on Tuesday.
(Reporting by Deborah Sophia and Manas Mishra in Bengaluru; Editing by Aditya Soni)
((DeborahMary.Sophia@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 limits come after major supplier Abbott Laboratories ABT.N recalled some baby formula including Similac in February following complaints of bacterial infections in infants who consumed the products. CVS said in an emailed statement it restricted in-store and online purchases to three per order last month, while Walgreens issued a similar cap early in March. Abbott announced last month it would release limited quantities of nutrition products that had been put on hold following the recall. | The limits come after major supplier Abbott Laboratories ABT.N recalled some baby formula including Similac in February following complaints of bacterial infections in infants who consumed the products. Adds details from Kroger, Target and Walgreens statements May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of baby formula due to a supply shortfall. Grocer Kroger KR.N has a limit of four products per customer, while Target has had restrictions on online purchases for weeks. | The limits come after major supplier Abbott Laboratories ABT.N recalled some baby formula including Similac in February following complaints of bacterial infections in infants who consumed the products. Adds details from Kroger, Target and Walgreens statements May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of baby formula due to a supply shortfall. (Reporting by Deborah Sophia and Manas Mishra in Bengaluru; Editing by Aditya Soni) ((DeborahMary.Sophia@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 limits come after major supplier Abbott Laboratories ABT.N recalled some baby formula including Similac in February following complaints of bacterial infections in infants who consumed the products. Adds details from Kroger, Target and Walgreens statements May 10 (Reuters) - U.S. retailers including Target Corp TGT.N, CVS Health Corp CVS.N and Walgreens Boots Alliance WBA.O said on Tuesday they have limited purchases of baby formula due to a supply shortfall. CVS said in an emailed statement it restricted in-store and online purchases to three per order last month, while Walgreens issued a similar cap early in March. |
31684.0 | 2022-05-09 00:00:00 UTC | 3 Medical Product Stocks Set to Beat on Earnings This Season | ABT | https://www.nasdaq.com/articles/3-medical-product-stocks-set-to-beat-on-earnings-this-season | nan | nan | The quarterly performance of the Medical Product companies belonging to the broader Medical sector has witnessed improvement on a year-over-year basis so far. Accelerated base business growth during the January-March quarter was reflected in the results of the majority of the stocks, courtesy of the waning of the COVID-19 impact despite the emergence of new virus variants.
However, the quarterly performance of the majority of the companies witnessed a decline on a sequential basis. A number of MedTech players encountered severe staffing shortages and supply-chain hazards in the January-March quarter, thanks to the emergence of the new COVID variants.
However, companies belonging to Medical Products industry have adapted well to changing consumer preferences and are experiencing a sustained uptrend in their stock price.
In the second half of the January-March quarter, industry players saw a strong rebound in base sales volumes with the companies reaching their pre-pandemic legacy business level on the back of a substantial reduction in COVID-led fatality throughout the United States and other developed markets. Gradual lifting of restrictions and people getting back to pre-pandemic normalcy have led to a noticeable rebound in non-COVID and elective legacy businesses of the companies.
In fact, Abbott ABT and Intuitive Surgical ISRG are a few companies that have registered strong recovery rate in base-business performance.
According to the latest Earnings Preview, this sector’s first-quarter earnings are expected to improve 16.3% on 14.8% revenue growth.
Here we talk about three stocks, Canopy Growth Corporation CGC, Haemonetics Corporation HAE and Alcon Inc. ALC that are expected to beat earnings estimates in the ongoing reporting cycle.
Stocks Likely to Outshine Earnings Estimates
Given the high degree of diversity in the Medical Products 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, chances of a positive 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 stocks that are expected to beat earnings estimates in this reporting cycle.
Canopy Growth Corporation: Canopy Growth’s BioSteel and Storz & Bickel ("S&B") businesses generated record revenues during the third quarter of fiscal 2022 on the back of expanded distribution of BioSteel and new products launches for S&B. This trend is likely to have continued in the fiscal fourth quarter as well. Also, solid growth in consumer products revenue is likely to have favored the company’s performance in the to-be-reported quarter.
Canopy Growth’s Earnings ESP of +36.62% and a Zacks Rank #2 raise the possibility of an earnings surprise in the to-be-reported quarter.
CGC is expected to release results for the fiscal fourth quarter on Jun 7.
Canopy Growth Corporation Price and EPS Surprise
Canopy Growth Corporation price-eps-surprise | Canopy Growth Corporation Quote
Haemonetics Corporation: Haemonetics’ plasma collections saw improvement in the third quarter of fiscal 2022, while its Hospital business delivered double-digit growth in the same period. This momentum is likely to have continued in the fourth quarter of fiscal 2022, thereby favoring the company’s performance.
HAE is scheduled to release results for the fiscal fourth quarter on May 10.
Haemonetics has an Earnings ESP of +0.84% and a Zacks Rank #3.
Haemonetics Corporation Price and EPS Surprise
Haemonetics Corporation price-eps-surprise | Haemonetics Corporation Quote
Alcon: Alcon’s net sales are expected to have witnessed strong gains in the first quarter on growth across all sales categories in Surgical and Vision Care, which was driven primarily by growing demand for new products, solid commercial execution and strong market recovery in the United States. Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market.
Alcon is scheduled to release results for the first quarter of 2022 on May 10.
It has an Earnings ESP of +10.04% and a Zacks Rank #3.
Alcon Price and EPS Surprise
Alcon price-eps-surprise | Alcon Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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 fact, Abbott ABT and Intuitive Surgical ISRG are a few companies that have registered strong recovery rate in base-business performance. Abbott Laboratories (ABT): Free Stock Analysis Report Accelerated base business growth during the January-March quarter was reflected in the results of the majority of the stocks, courtesy of the waning of the COVID-19 impact despite the emergence of new virus variants. | In fact, Abbott ABT and Intuitive Surgical ISRG are a few companies that have registered strong recovery rate in base-business performance. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, Canopy Growth Corporation CGC, Haemonetics Corporation HAE and Alcon Inc. ALC that are expected to beat earnings estimates in the ongoing reporting cycle. | In fact, Abbott ABT and Intuitive Surgical ISRG are a few companies that have registered strong recovery rate in base-business performance. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, Canopy Growth Corporation CGC, Haemonetics Corporation HAE and Alcon Inc. ALC that are expected to beat earnings estimates in the ongoing reporting cycle. | In fact, Abbott ABT and Intuitive Surgical ISRG are a few companies that have registered strong recovery rate in base-business performance. Abbott Laboratories (ABT): Free Stock Analysis Report Here we talk about three stocks, Canopy Growth Corporation CGC, Haemonetics Corporation HAE and Alcon Inc. ALC that are expected to beat earnings estimates in the ongoing reporting cycle. |
31685.0 | 2022-05-07 00:00:00 UTC | What's Next for Abbott Laboratories' Stock? | ABT | https://www.nasdaq.com/articles/whats-next-for-abbott-laboratories-stock | nan | nan | With a 10-year return of 378% handily beating the market's gain of 282%, Abbott Laboratories (NYSE: ABT) is a stock that many investors dream about. Between its steadily rising dividend payout, a constant flow of new consumer health products, and the power of being one of the biggest healthcare companies in the world, it's easy to see why -- and all those pluses could make shareholders richer over time.
But can it continue to stay innovative and lucrative as an investment in the face of competitors encroaching and economic winds changing? Yes, probably, and here's why.
Image source: Getty Images.
This is an evergreen stock
Abbott's appeal to investors hasn't changed much over time, and it isn't likely to change anytime soon. Its business is broadly diversified, producing everything from coronavirus diagnostics to medical nutrition products, surgical tools, and medical devices for diabetes.
With more than $43 billion in trailing-12-month revenue, its portfolio of products is so numerous and well-purchased throughout the healthcare sector that it's hard to envision a future in which failures in any single market segment end up seriously endangering its share price. And it's a significantly safer stock than many of its healthcare peers as a result.
As shown below, the last 12 months have seen the company perform strongly, complete with a higher profit margin and significant earnings growth.
ABT Revenue (Quarterly) data by YCharts
Though quarterly revenue isn't expanding very quickly, that hasn't been a cause for concern because it's effectively the company's norm. After all, once a business has a market cap of more than $211.6 billion, it's hard to keep making more money at the same rate as when it was smaller.
Though management predicted total sales of COVID-19 diagnostics to be $4.5 billion for the year, Abbott reported $3.3 billion in revenue from the segment in the first quarter. So investors should expect sales to fall sharply in the next couple of quarters -- which is management's view. Yet, actual sales could top that estimate by the end of the year. For what it's worth, the low end of the company's guidance for its 2022 earnings is a diluted earnings per share (EPS) of at least $3.35, which is a bit lower than its trailing EPS of $3.94.
That means shareholders should buckle up for some potential headwinds and downward price movement. Given that this company is ripe for long-term holding as a result of its steady growth and dividend hikes over time, the risk of an earnings contraction isn't a reason to sell. Still, it's now undeniable that Abbott will need to look more aggressively beyond its coronavirus diagnostics for growth.
Finding new growth might get harder
As its fastest-growing product segment, diabetes care devices and consumables will likely be Abbott Labs' focus area for the next few quarters at a minimum. Sales of its latest continuous glucose monitor (CGM), the FreeStyle Libre, topped $1 billion for the first time in Q1, growing by 26.2% year over year on an organic basis.
Though there's no reason to believe that Abbott Labs is anywhere close to fully penetrating the market for CGMs, it does have a few competitors like DexCom that could contest its share under the right conditions. Therefore, it's highly likely that Abbott will soon be pioneering additional growth initiatives to shore up its top and bottom lines as coronavirus diagnostic revenue recedes.
Moving forward, investors can count on the company to keep posting robust growth in its free cash flow (FCF) and its dividend. See below:
ABT Free Cash Flow (Annual) data by YCharts
That's right -- over the last five years Abbott's dividend has grown by more than 77%. And with its free cash flow rising at an even faster pace, its ability to keep paying out the dividend is excellent. Management is particularly proud about its impeccable record of dividend hikes, which have occurred without fail once per year for the last five decades and counting.
Though there are some near-term headwinds regarding contracting diagnostic revenues to watch out for, Abbott's trajectory isn't very different from before. Its pitch to investors is that they'll get paid out gradually over many years, and in relative safety -- and in terms of the company's ability to fulfill that promise, things are much the same as ever.
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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. | With a 10-year return of 378% handily beating the market's gain of 282%, Abbott Laboratories (NYSE: ABT) is a stock that many investors dream about. ABT Revenue (Quarterly) data by YCharts Though quarterly revenue isn't expanding very quickly, that hasn't been a cause for concern because it's effectively the company's norm. See below: ABT Free Cash Flow (Annual) data by YCharts That's right -- over the last five years Abbott's dividend has grown by more than 77%. | ABT Revenue (Quarterly) data by YCharts Though quarterly revenue isn't expanding very quickly, that hasn't been a cause for concern because it's effectively the company's norm. See below: ABT Free Cash Flow (Annual) data by YCharts That's right -- over the last five years Abbott's dividend has grown by more than 77%. With a 10-year return of 378% handily beating the market's gain of 282%, Abbott Laboratories (NYSE: ABT) is a stock that many investors dream about. | ABT Revenue (Quarterly) data by YCharts Though quarterly revenue isn't expanding very quickly, that hasn't been a cause for concern because it's effectively the company's norm. With a 10-year return of 378% handily beating the market's gain of 282%, Abbott Laboratories (NYSE: ABT) is a stock that many investors dream about. See below: ABT Free Cash Flow (Annual) data by YCharts That's right -- over the last five years Abbott's dividend has grown by more than 77%. | With a 10-year return of 378% handily beating the market's gain of 282%, Abbott Laboratories (NYSE: ABT) is a stock that many investors dream about. ABT Revenue (Quarterly) data by YCharts Though quarterly revenue isn't expanding very quickly, that hasn't been a cause for concern because it's effectively the company's norm. See below: ABT Free Cash Flow (Annual) data by YCharts That's right -- over the last five years Abbott's dividend has grown by more than 77%. |
31686.0 | 2022-05-07 00:00:00 UTC | 2 Healthcare Stocks That Could Make You Richer | ABT | https://www.nasdaq.com/articles/2-healthcare-stocks-that-could-make-you-richer-0 | nan | nan | Get-rich-quick schemes are often nothing more than scams, or at the very least, they are highly unlikely to deliver. That's why many turn to the stock market to accumulate capital. Becoming richer by investing in stocks won't happen overnight, but with a patient approach -- and investments in the right companies -- it remains one of the best ways to generate wealth over time.
Which stocks are worth investing in? Let's consider two top healthcare companies that could deliver excellent returns from here on out: Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE). | Let's consider two top healthcare companies that could deliver excellent returns from here on out: Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE). That's why many turn to the stock market to accumulate capital. Becoming richer by investing in stocks won't happen overnight, but with a patient approach -- and investments in the right companies -- it remains one of the best ways to generate wealth over time. | Let's consider two top healthcare companies that could deliver excellent returns from here on out: Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE). Becoming richer by investing in stocks won't happen overnight, but with a patient approach -- and investments in the right companies -- it remains one of the best ways to generate wealth over time. Which stocks are worth investing in? | Let's consider two top healthcare companies that could deliver excellent returns from here on out: Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE). Becoming richer by investing in stocks won't happen overnight, but with a patient approach -- and investments in the right companies -- it remains one of the best ways to generate wealth over time. Which stocks are worth investing in? | Let's consider two top healthcare companies that could deliver excellent returns from here on out: Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE). Get-rich-quick schemes are often nothing more than scams, or at the very least, they are highly unlikely to deliver. That's why many turn to the stock market to accumulate capital. |
31687.0 | 2022-05-05 00:00:00 UTC | Here's How Abbott Laboratories Increased Its Profits by 37% in Q1 | ABT | https://www.nasdaq.com/articles/heres-how-abbott-laboratories-increased-its-profits-by-37-in-q1 | nan | nan | Healthcare giant Abbott Laboratories (NYSE: ABT) reported quarterly earnings numbers last month, and the results were impressive with net earnings rising by 37% year over year. While investors may be tempted to dismiss the results as being largely due to strong COVID-19 testing volumes, the company's other businesses also generated positive growth.
What was really impressive was the company's ability to keep its costs under control and bank a significant chunk of that extra revenue as profit. Here's a closer look at what was behind the strong quarter.
Image source: Getty Images.
Sales grew nearly 4% when factoring out COVID-19 testing
During the first three months of 2022, Abbott reported $11.9 billion in sales (up 13.8% year over year) with $3.3 billion of that coming from COVID-19 testing. However, other areas of its business also posted strong numbers.
Source: Company filings. Chart by author.
Diagnostics sales (which include COVID testing) led the way with 32% growth during the period, but both Abbott's established pharmaceuticals and medical-device segments also grew by more than 7% this past quarter. The only area of business that wasn't up from last year was the company's nutritional segment, where revenue fell by 7% due to a recall of products as well as adverse conditions in the Chinese market.
Company remained disciplined with expenses
Growth in the top line is great but can be negated if a company is spending recklessly. That isn't the case with Abbott, though, as keeping costs in check played a key role in its improved bottom line this past quarter. Its $1.4 billion increase in revenue, combined with strong gross margins of 58%, meant that gross profit rose by $853 million in the first quarter.
Meanwhile, its other operating expenses only rose by a total of 1.3%, allowing the bulk of the addition in gross profit to flow through to operating income. The only item to significantly chip away at the bump-up in gross profit was a higher tax bill.
Source: Company filings. Chart by author.
Although the summary of the company's earnings looks boring, that's exactly what value-oriented and even growth investors want to see. The discipline in the company's management is evident through its ability to keep costs stable, even while sales are rising.
The benefit for investors is that the company is now earning a greater profit margin. A year go, Abbott banked just under $1.8 billion in net income on revenue of $10.5 billion, or 17.1%. This past quarter, the profit margin jumped to 20.6%.
Is Abbott an underrated buy?
Year to date, shares of Abbott Laboratories are down 20%. That's a deeper decline than the S&P 500, which has fallen by 13% over the same period. At 26 times trailing earnings, the healthcare stock still isn't a cheap buy. The average holding in the Health Care Select Sector SPDR Fund trades at a multiple of 23 times profits.
Although there's a bit of a premium for Abbott stock, it may be justifiable, given the safety that it offers investors in the long term with its great margins. Plus, the Dividend King offers a yield of 1.7%, which is slightly better than the S&P 500's 1.4% payout. Abbott's business also generates billions in free cash flow every year and is likely to keep growing over time, so a modest premium today may look immaterial in 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. | Healthcare giant Abbott Laboratories (NYSE: ABT) reported quarterly earnings numbers last month, and the results were impressive with net earnings rising by 37% year over year. Diagnostics sales (which include COVID testing) led the way with 32% growth during the period, but both Abbott's established pharmaceuticals and medical-device segments also grew by more than 7% this past quarter. The only area of business that wasn't up from last year was the company's nutritional segment, where revenue fell by 7% due to a recall of products as well as adverse conditions in the Chinese market. | Healthcare giant Abbott Laboratories (NYSE: ABT) reported quarterly earnings numbers last month, and the results were impressive with net earnings rising by 37% year over year. While investors may be tempted to dismiss the results as being largely due to strong COVID-19 testing volumes, the company's other businesses also generated positive growth. Sales grew nearly 4% when factoring out COVID-19 testing During the first three months of 2022, Abbott reported $11.9 billion in sales (up 13.8% year over year) with $3.3 billion of that coming from COVID-19 testing. | Healthcare giant Abbott Laboratories (NYSE: ABT) reported quarterly earnings numbers last month, and the results were impressive with net earnings rising by 37% year over year. Sales grew nearly 4% when factoring out COVID-19 testing During the first three months of 2022, Abbott reported $11.9 billion in sales (up 13.8% year over year) with $3.3 billion of that coming from COVID-19 testing. See the 10 stocks *Stock Advisor returns as of April 7, 2022 David Jagielski has no position in any of the stocks mentioned. | Healthcare giant Abbott Laboratories (NYSE: ABT) reported quarterly earnings numbers last month, and the results were impressive with net earnings rising by 37% year over year. While investors may be tempted to dismiss the results as being largely due to strong COVID-19 testing volumes, the company's other businesses also generated positive growth. Its $1.4 billion increase in revenue, combined with strong gross margins of 58%, meant that gross profit rose by $853 million in the first quarter. |
31688.0 | 2022-05-05 00:00:00 UTC | Better Dividend King: Johnson & Johnson vs. Abbott Laboratories | ABT | https://www.nasdaq.com/articles/better-dividend-king%3A-johnson-johnson-vs.-abbott-laboratories | nan | nan | Dividend Kings are stocks that have increased their payouts for 50 years or longer. They are among the best and safest income stocks to hold in your portfolio. Although they don't always provide investors with the highest yields, you're likely to see your dividend income rise from holding these types of investments over the years.
That's why you shouldn't scoff at dividend growth stocks with low yields because those payouts can be deceptively low. A couple of Dividend Kings you won't have to worry about paying low payouts today are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Both pay more than the S&P 500 average of 1.4%, but which one is the better dividend stock to hold?
Image source: Getty Images.
Johnson & Johnson has typically paid a higher yield
If you were to buy based on yield alone, you might be tempted to go with Johnson & Johnson as the healthcare giant has for the past five years generally provided investors with the higher payout:
Data by YCharts.
But if you're a long-term investor, you know that the yield only tells part of the story and that it's also important to consider how generous these companies normally are with respect to making rate hikes.
Abbott's high rate of dividend growth comes with an asterisk
Despite paying a lower yield, Abbott has been the more generous company with respect to dividend hikes in recent years:
Data by YCharts.
Over a five-year period, Johnson & Johnson's dividend has increased by an average of 6.1% per year. Abbott's increases average a much higher rate of 12.1%. Should that dividend-hiking pattern continue and the share prices of these two stocks don't change, it would take seven more increases for Abbott's dividend to surpass Johnson & Johnson's.
But that's based on a lot of assumptions. The obvious challenge in predicting future dividends is that the rate of increase can fluctuate greatly. In 2022, for example, Abbott raised its dividend by 4.4%, and a year earlier, it hiked it by 25%. Meanwhile, Johnson & Johnson recently raised its dividend by 6.6% -- a higher rate than Abbott's most recent increase.
What may be a better predictor of future hikes is the free cash flow each business generates.
Free cash flow versus dividends paid
Although there are generally fluctuations in the timing of when cash comes in and flows out, Johnson & Johnson's free cash usually has been much higher than the dividends it has paid out every quarter.
Data by YCharts.
In Abbott's case, the fluctuations have occasionally fallen into the red, with free cash flow not being strong enough to cover dividend payments on its own. And the strong year that the company had in 2020 during the pandemic explains why there was such a generous dividend hike of 25% the following year: Free cash was much higher than normal.
Data by YCharts.
Unless there's a sudden surge in demand for COVID-19 testing, it's not likely that Abbott is going to repeat the strong performance it had in 2020 anytime soon. And that means huge rate hikes will be less probable in the near future.
Dividend investors are better off going with Johnson & Johnson
The only area where Abbott looks to be the better dividend stock is in its dividend growth rate, but that comes with an asterisk as the company made a large increase to the payout one year that inflated that percentage. So it's not reflective of a pattern that looks sustainable over the long term, and that's why the safer income stock is Johnson & Johnson, as it's likely to generate more dividend income for your portfolio over the long term than Abbott.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A couple of Dividend Kings you won't have to worry about paying low payouts today are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Although they don't always provide investors with the highest yields, you're likely to see your dividend income rise from holding these types of investments over the years. But if you're a long-term investor, you know that the yield only tells part of the story and that it's also important to consider how generous these companies normally are with respect to making rate hikes. | A couple of Dividend Kings you won't have to worry about paying low payouts today are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Abbott's high rate of dividend growth comes with an asterisk Despite paying a lower yield, Abbott has been the more generous company with respect to dividend hikes in recent years: Meanwhile, Johnson & Johnson recently raised its dividend by 6.6% -- a higher rate than Abbott's most recent increase. | A couple of Dividend Kings you won't have to worry about paying low payouts today are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Johnson & Johnson has typically paid a higher yield If you were to buy based on yield alone, you might be tempted to go with Johnson & Johnson as the healthcare giant has for the past five years generally provided investors with the higher payout: Free cash flow versus dividends paid Although there are generally fluctuations in the timing of when cash comes in and flows out, Johnson & Johnson's free cash usually has been much higher than the dividends it has paid out every quarter. | A couple of Dividend Kings you won't have to worry about paying low payouts today are Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). Johnson & Johnson has typically paid a higher yield If you were to buy based on yield alone, you might be tempted to go with Johnson & Johnson as the healthcare giant has for the past five years generally provided investors with the higher payout: And the strong year that the company had in 2020 during the pandemic explains why there was such a generous dividend hike of 25% the following year: Free cash was much higher than normal. |
31689.0 | 2022-04-30 00:00:00 UTC | Want $2,000 in Passive Income? Invest $10,000 in This Cathie Wood Dividend Stock and Wait 5 Years | ABT | https://www.nasdaq.com/articles/want-%242000-in-passive-income-invest-%2410000-in-this-cathie-wood-dividend-stock-and-wait-5 | nan | nan | Cathie Wood and Warren Buffett could be thought of as representing different ends of the investing spectrum. Wood has made her name betting on hyper-growth companies with an eye to the future. Meanwhile, Buffett is best known as a value-investing guru.
As such, it shouldn't come as much of a surprise that Wood's Ark Invest and Buffett's Berkshire Hathaway don't share too many holdings in common. There are some rare exceptions, however. Read on for a look at a healthcare-sector leader backed by Buffett and Wood that pays a substantial dividend and stands out as a worthwhile buy for investors seeking passive income.
Image source: Getty Images.
This pharma giant is broadening its horizon
AbbVie (NYSE: ABBV) is a pharmaceutical company with a current market capitalization of roughly $254 billion. The business is best-known for its Humira drug, which is a monoclonal antibody used to treat rheumatoid arthritis, ulcerative colitis, Crohn's disease, and a variety of other conditions. Humira has been the best-selling drug in the world for most of the last decade; it recorded roughly $17.3 billion in sales for AbbVie last year, and it's helped fuel stellar growth for the company.
Image source: AbbVie.
While Humira accounted for roughly 31% of the company's sales last year, AbbVie has been diversifying its portfolio in preparation for the rising competition from biosimilars and the eventual expiration of most of the patents on the drug in 2034.
Outside of Humira, the company's immunology segment is poised to benefit from ramping sales for its Skyrizi and Rinvoq drugs with expectations that combined sales will grow roughly 226% from 2021 to reach more than $15 billion in 2025. In addition to its core immunology business, the company has products in the hematologic oncology, neurology, and aesthetics categories.
The company also has a leading position in the eye-care segment, and it's aiming to continue building on its portfolio for the treatment of glaucoma and dry eye. In addition to these initiatives, the company is gearing up to launch its Vuity drug for the treatment of presbyopia, establish a strong position in the treatment of retinal diseases, and build a pipeline of novel new products to address other needs that are significantly unmet in the eye-care market.
Great for investors seeking passive income
Thanks to strong business performance, AbbVie has been able to boost its dividend at an impressive clip.
ABBV Dividend data by YCharts.
AbbVie has increased its dividend payout each year since its spinoff from Abbott Laboratories was completed in 2013, and the company has raised its payout more than 250% across that stretch. The stock already sports a chunky 4% dividend yield, but based on the pharma giant's payout growth history, there's a good chance investors will actually generate substantially more than the roughly $2,000 in passive income across a five-year stretch with a $10,000 initial investment at today's prices.
Based on the current yield, reinvesting your dividends would net you an extra 2.8 shares of AbbVie by next year if you bought $10,000 in stock today -- even if the company opted to break its payout growth streak. From there, those new shares added would also generate dividend payments, setting up a compounding effect. Combined with the potential for capital appreciation, rolling the dividend payments over to reinvest in the stock presents another way investors could wind up generating significantly more than $2,000 from AbbVie's dividend over the next five years.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). 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. | While Humira accounted for roughly 31% of the company's sales last year, AbbVie has been diversifying its portfolio in preparation for the rising competition from biosimilars and the eventual expiration of most of the patents on the drug in 2034. The stock already sports a chunky 4% dividend yield, but based on the pharma giant's payout growth history, there's a good chance investors will actually generate substantially more than the roughly $2,000 in passive income across a five-year stretch with a $10,000 initial investment at today's prices. Based on the current yield, reinvesting your dividends would net you an extra 2.8 shares of AbbVie by next year if you bought $10,000 in stock today -- even if the company opted to break its payout growth streak. | As such, it shouldn't come as much of a surprise that Wood's Ark Invest and Buffett's Berkshire Hathaway don't share too many holdings in common. Great for investors seeking passive income Thanks to strong business performance, AbbVie has been able to boost its dividend at an impressive clip. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). | Based on the current yield, reinvesting your dividends would net you an extra 2.8 shares of AbbVie by next year if you bought $10,000 in stock today -- even if the company opted to break its payout growth streak. Combined with the potential for capital appreciation, rolling the dividend payments over to reinvest in the stock presents another way investors could wind up generating significantly more than $2,000 from AbbVie's dividend over the next five years. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). | Humira has been the best-selling drug in the world for most of the last decade; it recorded roughly $17.3 billion in sales for AbbVie last year, and it's helped fuel stellar growth for the company. The stock already sports a chunky 4% dividend yield, but based on the pharma giant's payout growth history, there's a good chance investors will actually generate substantially more than the roughly $2,000 in passive income across a five-year stretch with a $10,000 initial investment at today's prices. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! |
31690.0 | 2022-04-29 00:00:00 UTC | Abbott to release some nutrition products halted after baby formula recall | ABT | https://www.nasdaq.com/articles/abbott-to-release-some-nutrition-products-halted-after-baby-formula-recall | nan | nan | Adds background, details on products, FDA comment
April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of nutrition products that had been put on hold following a recall of some powdered infant formulas from its Michigan facility.
The company had in February recalled some baby formulas, including certain Similac products, made at its plant in Sturgis after complaints about bacterial infections in infants who consumed the products.
That weighed on sales at its nutrition unit in the latest reported quarter and led the company to lower its sales growth view for the full-year.
The U.S. Food and Drug Administration (FDA) had said it was investigating the complaints, which included four reports of Cronobacter sakazakii infections and one complaint of a Salmonella Newport infection. An inspection of the Michigan facility found quality control issues in March.
Abbott maintains no formula that has been distributed has tested positive for either bacteria.
The FDA said on Friday the company had conducted standard product testing and committed to completing further testing of the product batches prior to release. However, as enhanced testing would take more time, the health agency has allowed for the products to be released for individuals needing urgent, life-sustaining supplies.
The nutrition formulas Abbott is releasing include Calcilo XD, Cyclinex®-1 and 2 and ProViMin, as well as Similac PM 60/40. The product lots being released were not included in the recall, Abbott said.
(Reporting by Amruta Khandekar; Editing by Aditya Soni)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background, details on products, FDA comment April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of nutrition products that had been put on hold following a recall of some powdered infant formulas from its Michigan facility. However, as enhanced testing would take more time, the health agency has allowed for the products to be released for individuals needing urgent, life-sustaining supplies. The nutrition formulas Abbott is releasing include Calcilo XD, Cyclinex®-1 and 2 and ProViMin, as well as Similac PM 60/40. | Adds background, details on products, FDA comment April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of nutrition products that had been put on hold following a recall of some powdered infant formulas from its Michigan facility. The company had in February recalled some baby formulas, including certain Similac products, made at its plant in Sturgis after complaints about bacterial infections in infants who consumed the products. The nutrition formulas Abbott is releasing include Calcilo XD, Cyclinex®-1 and 2 and ProViMin, as well as Similac PM 60/40. | Adds background, details on products, FDA comment April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of nutrition products that had been put on hold following a recall of some powdered infant formulas from its Michigan facility. The company had in February recalled some baby formulas, including certain Similac products, made at its plant in Sturgis after complaints about bacterial infections in infants who consumed the products. The FDA said on Friday the company had conducted standard product testing and committed to completing further testing of the product batches prior to release. | Adds background, details on products, FDA comment April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of nutrition products that had been put on hold following a recall of some powdered infant formulas from its Michigan facility. The company had in February recalled some baby formulas, including certain Similac products, made at its plant in Sturgis after complaints about bacterial infections in infants who consumed the products. The FDA said on Friday the company had conducted standard product testing and committed to completing further testing of the product batches prior to release. |
31691.0 | 2022-04-29 00:00:00 UTC | Abbott to release limited quantities of some nutrition formulas | ABT | https://www.nasdaq.com/articles/abbott-to-release-limited-quantities-of-some-nutrition-formulas | nan | nan | April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of some nutrition products that had been on hold after the company recalled certain powder infant formulas produced at its Michigan facility.
Abbott had recalled some baby formulas earlier in the year following complaints about bacterial infections in infants who consumed the products.
The products being released were not included in the recall, Abbott said.
(Reporting by Amruta Khandekar; Editing by Aditya Soni)
((Amruta.Khandekar@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. | April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of some nutrition products that had been on hold after the company recalled certain powder infant formulas produced at its Michigan facility. Abbott had recalled some baby formulas earlier in the year following complaints about bacterial infections in infants who consumed the products. (Reporting by Amruta Khandekar; Editing by Aditya Soni) ((Amruta.Khandekar@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. | April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of some nutrition products that had been on hold after the company recalled certain powder infant formulas produced at its Michigan facility. Abbott had recalled some baby formulas earlier in the year following complaints about bacterial infections in infants who consumed the products. The products being released were not included in the recall, Abbott said. | April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of some nutrition products that had been on hold after the company recalled certain powder infant formulas produced at its Michigan facility. Abbott had recalled some baby formulas earlier in the year following complaints about bacterial infections in infants who consumed the products. (Reporting by Amruta Khandekar; Editing by Aditya Soni) ((Amruta.Khandekar@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. | April 29 (Reuters) - Abbott Laboratories ABT.N said on Friday it would release limited quantities of some nutrition products that had been on hold after the company recalled certain powder infant formulas produced at its Michigan facility. Abbott had recalled some baby formulas earlier in the year following complaints about bacterial infections in infants who consumed the products. The products being released were not included in the recall, Abbott said. |
31692.0 | 2022-04-29 00:00:00 UTC | The Zacks Analyst Blog Highlights Visa, Walt Disney, Abbott Laboratories, Nike and United Parcel Service | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-visa-walt-disney-abbott-laboratories-nike-and-united | nan | nan | For Immediate Release
Chicago, IL – April 29, 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: Visa Inc. V, The Walt Disney Co. DIS, Abbott Laboratories ABT, Nike, Inc. NKE and United Parcel Service, Inc. UPS.
Here are highlights from Thursday’s Analyst Blog:
Top Analyst Reports for Visa, Walt Disney and Abbott
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 Visa Inc., The Walt Disney Co., 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 >>>
Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the year-to-date basis (+1.8% vs. -3.5%). The company's second-quarter fiscal 2022 earnings beat estimates on strong payments volume. Numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues.
Its investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon. The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn.
Backed by its strong cash position, the company remains committed to boost its shareholder value. However, high operating expenses stress the margins. Ramped-up client incentives will dent the top line. Its declining cash volume from the Asia Pacific bothers. Its volumes will likely suffer due to the Russia-Ukraine situation.
(You can read the full research report on Visa here >>>)
Walt Disney shares have declined -38.7% over the past year against the Zacks Media Conglomerates industry's decline of -40.8%. The company's profitability is expected to be negatively impacted by rising programming and production costs. Disney expects continued investments in its owned and produced content for direct-to-consumer services to hurt operating income.
Closure of its Shanghai theme park due to COVID-19 doesn't bode well for the Parks, Experiences, and Products revenues in the near term. Disney's leveraged balance sheet also remains a concern.
However, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories should help expand the user base. Revival in Parks, Experiences and Products businesses also hold promise.
(You can read the full research report on Walt Disney here >>>)
Abbott shares have declined -1.2% over the past year against the Zacks Medical - Products industry's decline of -23.9%. The company's pediatric nutrition sales were negatively impacted by a voluntary recall of certain powder formulas manufactured at one of Abbott's U.S. plants. Barring Nutrition (where the company reported a 4.4% year-over-year decline on an organic basis), the company registered organic sales growth across all its core operating segments. Global COVID-19 testing-related sales were led by the sales of rapid testing products.
Within the Diabetes Care, the company has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Within Adult Nutrition, the company gained from the strong performance of Ensure and Glucerna brands.
(You can read the full research report on Abbott here >>>)
Other noteworthy reports we are featuring today include Nike, Inc. and United Parcel Service, Inc.
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Abbott Laboratories (ABT): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Visa Inc. V, The Walt Disney Co. DIS, Abbott Laboratories ABT, Nike, Inc. NKE and United Parcel Service, Inc. UPS. Abbott Laboratories (ABT): Free Stock Analysis Report Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. | Stocks recently featured in the blog include: Visa Inc. V, The Walt Disney Co. DIS, Abbott Laboratories ABT, Nike, Inc. NKE and United Parcel Service, Inc. UPS. Abbott Laboratories (ABT): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Visa Inc., The Walt Disney Co., and Abbott Laboratories. | Stocks recently featured in the blog include: Visa Inc. V, The Walt Disney Co. DIS, Abbott Laboratories ABT, Nike, Inc. NKE and United Parcel Service, Inc. UPS. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Thursday’s Analyst Blog: Top Analyst Reports for Visa, Walt Disney and Abbott The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Visa Inc. V, The Walt Disney Co. DIS, Abbott Laboratories ABT, Nike, Inc. NKE and United Parcel Service, Inc. UPS. Abbott Laboratories (ABT): Free Stock Analysis Report (You can read the full research report on Visa here >>>) Walt Disney shares have declined -38.7% over the past year against the Zacks Media Conglomerates industry's decline of -40.8%. |
31693.0 | 2022-04-28 00:00:00 UTC | Top Analyst Reports for Visa, Walt Disney & Abbott | ABT | https://www.nasdaq.com/articles/top-analyst-reports-for-visa-walt-disney-abbott | nan | nan | Thursday, April 28, 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 Visa Inc. (V), The Walt Disney Co. (DIS), 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 >>>
Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the year-to-date basis (+1.8% vs. -3.5%). The company’s second-quarter fiscal 2022 earnings beat estimates on strong payments volume. Numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues.
Its investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon. The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn.
Backed by its strong cash position, the company remains committed to boost its shareholder value. However, high operating expenses stress the margins. Ramped-up client incentives will dent the top line. Its declining cash volume from the Asia Pacific bothers. Its volumes will likely suffer due to the Russia-Ukraine situation.
(You can read the full research report on Visa here >>>)
Walt Disney shares have declined -38.7% over the past year against the Zacks Media Conglomerates industry’s decline of -40.8%. The company’s profitability is expected to be negatively impacted by rising programming and production costs. Disney expects continued investments in its owned and produced content for direct-to-consumer services to hurt operating income.
Closure of its Shanghai theme park due to COVID-19 doesn’t bode well for the Parks, Experiences, and Products revenues in the near term. Disney’s leveraged balance sheet also remains a concern.
However, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories should help expand the user base. Revival in Parks, Experiences and Products businesses also hold promise.
(You can read the full research report on Walt Disney here >>>)
Abbott shares have declined -1.2% over the past year against the Zacks Medical - Products industry’s decline of -23.9%. The company’s pediatric nutrition sales were negatively impacted by a voluntary recall of certain powder formulas manufactured at one of Abbott's U.S. plants. Barring Nutrition (where the company reported a 4.4% year-over-year decline on an organic basis), the company registered organic sales growth across all its core operating segments. Global COVID-19 testing-related sales were led by the sales of rapid testing products.
Within the Diabetes Care, the company has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Within Adult Nutrition, the company gained from the strong performance of Ensure and Glucerna brands.
(You can read the full research report on Abbott here >>>)
Other noteworthy reports we are featuring today include Nike, Inc. (NKE) and United Parcel Service, Inc. (UPS).
Mark Vickery
Senior Editor
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
Visa (V) Rides on Improving Top Line & Solid Balance Sheet
Disney (DIS) Banks on Disney+ Growth & Reopening of Parks
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Growth Projects Aid Newmont (NEM) Amid Higher Costs
While the company faces headwinds from higher production costs, it will gain from its investment in growth projects including Tanami Expansion and Yanacocha Sulfides, per the Zacks analyst.
Cadence (CDNS) Benefits from Diversified Product Portfolio
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New Upgrades
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The Zacks analyst is impressed by ExxonMobil's three discoveries in the Stabroek Block, which will increase its recoverable resources estimates in the block to 11 billion oil-equivalent barrels.
Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.
Yelp (YELP) Benefits from Increasing Advertising Revenues
Per the Zacks analyst, increase in the number of paying advertising locations and improved productivity from advertising sales force are bolstering Yelp's ad revenues.
New Downgrades
3D Systems' (DDD) Gross Margin Hurt by Unfavorable Sales Mix
Per the Zacks analyst, unfavorable sales mix and increased investment in services, and on-demand manufacturing are likely to hurt 3D Systems' gross margin in the near-term.
Post Holdings' (POST) Performance Hurt by Cost Inflation
Per the Zacks analyst, Post Holdings is grappling with escalated costs. Raw material and freight inflation along with other supply-chain disruptions hurt its fiscal first-quarter performance.
Supply-Chain Woes Play Spoilsport for Leggett's (LEG) Volume
Per the Zacks analyst, Leggett has been witnessing supply chain disruptions, especially in chemicals, semiconductors, labor and transportation, which are constraining volume growth.
5 Stocks Set to Double
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Abbott Laboratories (ABT): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
The Walt Disney Company (DIS): 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Visa (V) Rides on Improving Top Line & Solid Balance Sheet Disney (DIS) Banks on Disney+ Growth & Reopening of Parks Abbott's (ABT) Diabetes Business Grows Amid Forex Headwinds Featured Reports Improved Traffic & Digital Trends Aid NIKE (NKE) Direct Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), The Walt Disney Co. (DIS), and Abbott Laboratories (ABT). 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 Visa (V) Rides on Improving Top Line & Solid Balance Sheet Disney (DIS) Banks on Disney+ Growth & Reopening of Parks Abbott's (ABT) Diabetes Business Grows Amid Forex Headwinds Featured Reports Improved Traffic & Digital Trends Aid NIKE (NKE) Direct Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), The Walt Disney Co. (DIS), and Abbott Laboratories (ABT). 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 Visa (V) Rides on Improving Top Line & Solid Balance Sheet Disney (DIS) Banks on Disney+ Growth & Reopening of Parks Abbott's (ABT) Diabetes Business Grows Amid Forex Headwinds Featured Reports Improved Traffic & Digital Trends Aid NIKE (NKE) Direct Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), The Walt Disney Co. (DIS), and Abbott Laboratories (ABT). 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 Visa (V) Rides on Improving Top Line & Solid Balance Sheet Disney (DIS) Banks on Disney+ Growth & Reopening of Parks Abbott's (ABT) Diabetes Business Grows Amid Forex Headwinds Featured Reports Improved Traffic & Digital Trends Aid NIKE (NKE) Direct Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Today's Research Daily features new research reports on 16 major stocks, including Visa Inc. (V), The Walt Disney Co. (DIS), and Abbott Laboratories (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report |
31694.0 | 2022-04-27 00:00:00 UTC | Noteworthy ETF Inflows: XLV, UNH, TMO, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-xlv-unh-tmo-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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $674.2 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 276,670,000 to 281,770,000). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $120.61 per share, with $143.42 as the 52 week high point — that compares with a last trade of $131.61. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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 UnitedHealth Group Inc (Symbol: UNH) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $674.2 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 276,670,000 to 281,770,000). 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 UnitedHealth Group Inc (Symbol: UNH) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $120.61 per share, with $143.42 as the 52 week high point — that compares with a last trade of $131.61. 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 UnitedHealth Group Inc (Symbol: UNH) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $674.2 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 276,670,000 to 281,770,000). 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 $120.61 per share, with $143.42 as the 52 week high point — that compares with a last trade of $131.61. | Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $674.2 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 276,670,000 to 281,770,000). 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 $120.61 per share, with $143.42 as the 52 week high point — that compares with a last trade of $131.61. |
31695.0 | 2022-04-27 00:00:00 UTC | We Did The Math XRLV Can Go To $55 | ABT | https://www.nasdaq.com/articles/we-did-the-math-xrlv-can-go-to-%2455 | 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 Invesco S&P 500— ex-Rate Sensitive Low Volatility ETF (Symbol: XRLV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $54.88 per unit.
With XRLV trading at a recent price near $49.54 per unit, that means that analysts see 10.78% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XRLV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Linde plc (Symbol: LIN), and CSX Corp (Symbol: CSX). Although ABT has traded at a recent price of $116.97/share, the average analyst target is 19.56% higher at $139.85/share. Similarly, LIN has 19.13% upside from the recent share price of $303.53 if the average analyst target price of $361.58/share is reached, and analysts on average are expecting CSX to reach a target price of $39.33/share, which is 15.31% above the recent price of $34.11. Below is a twelve month price history chart comparing the stock performance of ABT, LIN, and CSX:
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
Invesco S&P 500— ex-Rate Sensitive Low Volatility ETF XRLV $49.54 $54.88 10.78%
Abbott Laboratories ABT $116.97 $139.85 19.56%
Linde plc LIN $303.53 $361.58 19.13%
CSX Corp CSX $34.11 $39.33 15.31%
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. | Although ABT has traded at a recent price of $116.97/share, the average analyst target is 19.56% higher at $139.85/share. Invesco S&P 500— ex-Rate Sensitive Low Volatility ETF XRLV $49.54 $54.88 10.78% Abbott Laboratories ABT $116.97 $139.85 19.56% Linde plc LIN $303.53 $361.58 19.13% CSX Corp CSX $34.11 $39.33 15.31% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XRLV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Linde plc (Symbol: LIN), and CSX Corp (Symbol: CSX). | Three of XRLV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Linde plc (Symbol: LIN), and CSX Corp (Symbol: CSX). Invesco S&P 500— ex-Rate Sensitive Low Volatility ETF XRLV $49.54 $54.88 10.78% Abbott Laboratories ABT $116.97 $139.85 19.56% Linde plc LIN $303.53 $361.58 19.13% CSX Corp CSX $34.11 $39.33 15.31% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although ABT has traded at a recent price of $116.97/share, the average analyst target is 19.56% higher at $139.85/share. | Three of XRLV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Linde plc (Symbol: LIN), and CSX Corp (Symbol: CSX). Although ABT has traded at a recent price of $116.97/share, the average analyst target is 19.56% higher at $139.85/share. Below is a twelve month price history chart comparing the stock performance of ABT, LIN, and CSX: Below is a summary table of the current analyst target prices discussed above: | Invesco S&P 500— ex-Rate Sensitive Low Volatility ETF XRLV $49.54 $54.88 10.78% Abbott Laboratories ABT $116.97 $139.85 19.56% Linde plc LIN $303.53 $361.58 19.13% CSX Corp CSX $34.11 $39.33 15.31% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XRLV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Linde plc (Symbol: LIN), and CSX Corp (Symbol: CSX). Although ABT has traded at a recent price of $116.97/share, the average analyst target is 19.56% higher at $139.85/share. |
31696.0 | 2022-04-26 00:00:00 UTC | Here's the Worst News for Abbott Right Now (and Why Investors Shouldn't Worry) | ABT | https://www.nasdaq.com/articles/heres-the-worst-news-for-abbott-right-now-and-why-investors-shouldnt-worry | nan | nan | Abbott Laboratories (NYSE: ABT) investors have plenty to be happy about when they look at the company's recent earnings report. Revenue is climbing in the double digits in three of the company's four businesses. Its coronavirus testing sales soared to $3.3 billion in the quarter. And product approvals are set to drive future revenue.
But there's one dark cloud amid all of this sunshine. And that has to do with a recent product recall in Abbott's nutrition business. In fact, this recall is the reason Abbott lowered its annual revenue growth guidance to the mid-to-high single digits from the high single digits. This is the worst news to hit Abbott in the first quarter. Now, let's talk about why you shouldn't worry too much about Abbott's future.
Image source: Getty Images.
A product recall
First, a bit of background on what happened. Early in the quarter, Abbott launched a voluntary recall of certain infant formula products produced at a plant in the United States. This followed cases of bacteria cronobacter sakazakii and salmonella in some infants who had taken the formula.
Abbott found traces of certain bacteria in non-product contact areas of its factory. But they didn't match the samples that came from the customers who had complained. No salmonella was found in any part of Abbott's facility -- and the U.S. Food and Drug Administration (FDA) cleared the company of any link to the salmonella cases. Abbott also holds onto samples of products shipped -- and all of these tested negative for the bacteria involved in the infants' illnesses.
Today, Abbott is working with the FDA and hopes to reopen its facility as soon as possible. Meanwhile, Abbott is shipping product to the U.S. from its FDA-registered factory in Europe. That's to help relieve an infant formula shortage that was worsened by the recall.
It's clear the news is upsetting for everyone because babies have been sickened or died.
Now, let's look at the situation from a financial standpoint. The news is negative because the recall is weighing on Abbott's earnings right now. But here is why, as an investor, you shouldn't worry about Abbott down the road. First, it's reassuring to know that testing so far hasn't detected a link between the cases of illness and Abbott's facility and product. Any link to such a contamination could be catastrophic for future sales. But Abbott's thorough investigation and the results of its tests should ease parents' worries. And that means Abbott's future formula sales shouldn't suffer.
Abbott's future prospects
Second, the recall is a temporary situation. It will weigh on Abbott's earnings this year. But it doesn't damage Abbott's future earnings prospects. In fact, Abbott said that if we remove the positive impact of its coronavirus test sales and the negative impact of the product recall, the company is seeing 11% growth. And as I mentioned earlier -- excluding the nutrition business due to the recall -- all of Abbott's other businesses posted strong revenue growth in the first quarter.
So, let's imagine what the future may look like for Abbott. Coronavirus testing revenue may weaken in a post-pandemic world. But it still could remain significant. And Abbott's medical device business -- after suffering during part of the pandemic -- is already growing again. This is key because this unit was the biggest contributor to revenue in pre-COVID days. Once the pandemic is over, medical devices may once again become the biggest revenue engine for Abbott. And by this time, the recall woes likely will be over. The nutrition business might be on the road to recovery.
All of this means Abbott shareholders should sit tight and focus on the company's future. Abbott is handling the recall well. The situation is costly for the company today -- but the good news is if Abbott isn't linked to the illnesses, the recall won't tarnish Abbott's reputation. And that's why you shouldn't worry about Abbott over the long 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 Laboratories (NYSE: ABT) investors have plenty to be happy about when they look at the company's recent earnings report. Early in the quarter, Abbott launched a voluntary recall of certain infant formula products produced at a plant in the United States. Abbott also holds onto samples of products shipped -- and all of these tested negative for the bacteria involved in the infants' illnesses. | Abbott Laboratories (NYSE: ABT) investors have plenty to be happy about when they look at the company's recent earnings report. And that has to do with a recent product recall in Abbott's nutrition business. And that means Abbott's future formula sales shouldn't suffer. | Abbott Laboratories (NYSE: ABT) investors have plenty to be happy about when they look at the company's recent earnings report. In fact, Abbott said that if we remove the positive impact of its coronavirus test sales and the negative impact of the product recall, the company is seeing 11% growth. And as I mentioned earlier -- excluding the nutrition business due to the recall -- all of Abbott's other businesses posted strong revenue growth in the first quarter. | Abbott Laboratories (NYSE: ABT) investors have plenty to be happy about when they look at the company's recent earnings report. And that has to do with a recent product recall in Abbott's nutrition business. Abbott also holds onto samples of products shipped -- and all of these tested negative for the bacteria involved in the infants' illnesses. |
31697.0 | 2022-04-26 00:00:00 UTC | The Zacks Analyst Blog Highlights Alcon, Zimmer Biomet, Cardiovascular Systems, Abbott and Intuitive Surgical | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-alcon-zimmer-biomet-cardiovascular-systems-abbott-and | nan | nan | For Immediate Release
Chicago, IL – April 26, 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: Alcon ALC, Zimmer Biomet ZBH, Cardiovascular Systems CSII, Abbott ABT and Intuitive Surgical, Inc. ISRG.
Here are highlights from Monday’s Analyst Blog:
3 Medical Product Stocks Poised to Beat This Earnings Season
So far, this reporting cycle has displayed a year-over-year improvement for the medical product companies within the broader Medical sector. Overall, the results of the majority of medical device stocks so far have shown accelerated base business growth through the months of the first quarter compared with 2020 given the reduction of severity of COVID-19 despite the emergence of new virus variants.
However, if we consider the performance on a sequential basis, the Q1 results of the majority of the companies significantly declined. A number of MedTech players witnessed severe staffing shortages and supply-chain hazards in the Q1 months, thanks to the emergence of the new COVID variants.
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 Q1 was very sharp.
Here we talk about three stocks, Alcon, Zimmer Biomet and Cardiovascular Systems that are expected to beat earnings estimates in the ongoing reporting cycle.
Two Major Q1 Trends
The second half of the Q1 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 gradual lifting of restrictions and people getting back to pre-pandemic normalcy, there has been a significant rebound in non-COVID and elective legacy businesses of the medical product companies.
However, a contrasting trend is also evident. Considering the deteriorating trade situation on continuing emergence of more contagious COVID-19 variants like Delta, Omicron and XE, the IMF came up with its January 2022 World Economic Outlook Update. The update noted that global growth is expected to moderate from 5.9% in 2021 to 4.4% in 2022—half a percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely reflecting forecast cuts in the two largest economies—the USA and China.
This deteriorating economic outlook is evident in the medical products sector's sequential business slowdown in Q1. The industry players who had witnessed a strong rebound in product demand across core business segments during the majority of 2021 have collectively faced a setback so far in the 2022 in terms of disrupted procedure volumes and staffing shortages in major international geographies and the United States. Also, a significant drop in COVID testing demand during the second half of Q1 on declining cases has deterred business growth for many companies.
Q1 Scorecard Thus Far
Per the latest Earnings Preview, 7% of the companies in the broader Medical sector, constituting nearly 27.6% of the sector's market capitalization, have already reported earnings. Of these, 100% beat in terms of earnings and 75% exceeded the revenue estimates. Earnings increased 8.4% year over year on 13.5% higher revenues. Overall, first-quarter earnings for the Medical sector are expected to rise 10.3% on a 13.3% sales increase.
Abbott and Intuitive Surgical, Inc. are a few companies whose base-business performance registered a strong recovery rate.
In Q1, Abbott continued to experience solid organic growth in most of its key global markets. According to Abbott, organic sales improvement was backed by double-digit growth in several geographies and therapeutic areas, including gastroenterology, respiratory and central nervous system/pain management.
Intuitive Surgical too ended the first quarter on a strong note. The company displayed strong segmental performance and robust growth in da Vinci procedure volume in the first quarter. Overall international sales improved in the first quarter.
On the other hand, Quest Diagnostics reported a year-over-year decline in revenues and adjusted earnings due to lower COVID-19 testing demand during the first quarter. According to the company, COVID-19 volumes remained strong early in the first quarter and decreased in February and March, in line with the market.
Zacks Methodology
Given the high degree of diversity in the Medical Products 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 medical product stocks that are expected to beat earnings estimates in this reporting cycle.
Alcon: Alcon's net sales are expected to have witnessed strong gains in Q1, driven by growth across all sales categories in Surgical and Vision Care, which was driven primarily by growing demand for new products, solid commercial execution and strong market recovery in the United States. Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company's newest contact lenses for the mainstream market.
Alcon's Earnings ESP of +10.04% and a Zacks Rank #2 raise the possibility of an earnings surprise in the to-be-reported quarter.
Alcon is slated to release results for the first quarter of 2022 on May 3.
Alcon price-eps-surprise | Alcon Quote
Zimmer Biomet: Zimmer Biomet is expected to have witnessed a strong sales gain in Q1 on growing demand and momentum for ROSA robotics line globally. The team recently delivered a successful limited launch of the world's first and only smart knee, the Persona iQ. Per the last update, the customer feedback was good. This is expected to have a positive contribution to Zimmer Biomet's Q1 results.
Zimmer Biomet is scheduled to release first-quarter 2022 results on May 3.
ZBH has an Earnings ESP of +0.36% and a Zacks Rank #3.
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Cardiovascular Systems: Cardiovascular Systems is expected to have gained in its third quarter of fiscal 2022 from continued strength in Japan coupled with the launch of the coronary Orbital Atherectomy System (OAS) in Europe. We also expect to see a rebound in the coronary business as cath labs have resumed the use of atherectomy to treat lesions with intimal and medial calcium, heavy stenosis and multivessel disease.
Cardiovascular Systems is expected to release third-quarter fiscal 2022 results soon.
Cardiovascular Systems has an Earnings ESP of +13.77% and a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Cardiovascular Systems, Inc. price-eps-surprise | Cardiovascular Systems, 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
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Alcon ALC, Zimmer Biomet ZBH, Cardiovascular Systems CSII, Abbott ABT and Intuitive Surgical, Inc. ISRG. Abbott Laboratories (ABT): Free Stock Analysis Report Overall, the results of the majority of medical device stocks so far have shown accelerated base business growth through the months of the first quarter compared with 2020 given the reduction of severity of COVID-19 despite the emergence of new virus variants. | Stocks recently featured in the blog include: Alcon ALC, Zimmer Biomet ZBH, Cardiovascular Systems CSII, Abbott ABT and Intuitive Surgical, Inc. ISRG. Abbott Laboratories (ABT): Free Stock Analysis Report ZBH has an Earnings ESP of +0.36% and a Zacks Rank #3. Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote Cardiovascular Systems: Cardiovascular Systems is expected to have gained in its third quarter of fiscal 2022 from continued strength in Japan coupled with the launch of the coronary Orbital Atherectomy System (OAS) in Europe. | Stocks recently featured in the blog include: Alcon ALC, Zimmer Biomet ZBH, Cardiovascular Systems CSII, Abbott ABT and Intuitive Surgical, Inc. ISRG. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: 3 Medical Product Stocks Poised to Beat This Earnings Season So far, this reporting cycle has displayed a year-over-year improvement for the medical product companies within the broader Medical sector. | Stocks recently featured in the blog include: Alcon ALC, Zimmer Biomet ZBH, Cardiovascular Systems CSII, Abbott ABT and Intuitive Surgical, Inc. ISRG. Abbott Laboratories (ABT): Free Stock Analysis Report The industry players who had witnessed a strong rebound in product demand across core business segments during the majority of 2021 have collectively faced a setback so far in the 2022 in terms of disrupted procedure volumes and staffing shortages in major international geographies and the United States. |
31698.0 | 2022-04-25 00:00:00 UTC | 3 Medical Product Stocks Poised to Beat This Earnings Season | ABT | https://www.nasdaq.com/articles/3-medical-product-stocks-poised-to-beat-this-earnings-season | nan | nan | So far, this reporting cycle has displayed a year-over-year improvement for the medical product companies within the broader Medical sector. Overall, the results of the majority of medical device stocks so far have shown accelerated base business growth through the months of the first quarter compared with 2020 given the reduction of severity of COVID-19 despite the emergence of new virus variants.
However, if we consider the performance on a sequential basis, the Q1 results of the majority of the companies significantly declined. A number of MedTech players witnessed severe staffing shortages and supply-chain hazards in the Q1 months, thanks to the emergence of the new COVID variants.
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 Q1 was very sharp.
Here we talk about three stocks, Alcon ALC, Zimmer Biomet ZBH and Cardiovascular Systems CSII that are expected to beat earnings estimates in the ongoing reporting cycle.
Two Major Q1 Trends
The second half of the Q1 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 gradual lifting of restrictions and people getting back to pre-pandemic normalcy, there has been a significant rebound in non-COVID and elective legacy businesses of the medical product companies.
However, a contrasting trend is also evident. Considering the deteriorating trade situation on continuing emergence of more contagious COVID-19 variants like Delta, Omicron and XE, the IMF came up with its January 2022 World Economic Outlook Update. The update noted that global growth is expected to moderate from 5.9% in 2021 to 4.4% in 2022—half a percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely reflecting forecast cuts in the two largest economies—the USA and China.
This deteriorating economic outlook is evident in the medical products sector’s sequential business slowdown in Q1. The industry players who had witnessed a strong rebound in product demand across core business segments during the majority of 2021 have collectively faced a setback so far in the 2022 in terms of disrupted procedure volumes and staffing shortages in major international geographies and the United States. Also, a significant drop in COVID testing demand during the second half of Q1 on declining cases has deterred business growth for many companies.
Q1 Scorecard Thus Far
Per the latest Earnings Preview, 7% of the companies in the broader Medical sector, constituting nearly 27.6% of the sector’s market capitalization, have already reported earnings. Of these, 100% beat in terms of earnings and 75% exceeded the revenue estimates. Earnings increased 8.4% year over year on 13.5% higher revenues. Overall, first-quarter earnings for the Medical sector are expected to rise 10.3% on a 13.3% sales increase.
Abbott ABT and Intuitive Surgical, Inc. ISRG are a few companies whose base-business performance registered a strong recovery rate.
In Q1, Abbott continued to experience solid organic growth in most of its key global markets. According to Abbott, organic sales improvement was backed by double-digit growth in several geographies and therapeutic areas, including gastroenterology, respiratory and central nervous system/pain management.
Intuitive Surgical too ended the first quarter on a strong note. The company displayed strong segmental performance and robust growth in da Vinci procedure volume in the first quarter. Overall international sales improved in the first quarter.
On the other hand, Quest Diagnostics reported a year-over-year decline in revenues and adjusted earnings due to lower COVID-19 testing demand during the first quarter. According to the company, COVID-19 volumes remained strong early in the first quarter and decreased in February and March, in line with the market.
Zacks Methodology
Given the high degree of diversity in the Medical Products 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 medical product stocks that are expected to beat earnings estimates in this reporting cycle.
Alcon: Alcon’s net sales are expected to have witnessed strong gains in Q1, driven by growth across all sales categories in Surgical and Vision Care, which was driven primarily by growing demand for new products, solid commercial execution and strong market recovery in the United States. Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market.
Alcon’s Earnings ESP of +10.04% and a Zacks Rank #2 raise the possibility of an earnings surprise in the to-be-reported quarter.
Alcon is slated to release results for the first quarter of 2022 on May 3.
Alcon Price and EPS Surprise
Alcon price-eps-surprise | Alcon Quote
Zimmer Biomet: Zimmer Biomet is expected to have witnessed a strong sales gain in Q1 on growing demand and momentum for ROSA robotics line globally. The team recently delivered a successful limited launch of the world's first and only smart knee, the Persona iQ. Per the last update, the customer feedback was good. This is expected to have a positive contribution to Zimmer Biomet’s Q1 results.
Zimmer Biomet is scheduled to release first-quarter 2022 results on May 3.
ZBH has an Earnings ESP of +0.36% and a Zacks Rank #3.
Zimmer Biomet Holdings, Inc. Price and EPS Surprise
Zimmer Biomet Holdings, Inc. price-eps-surprise | Zimmer Biomet Holdings, Inc. Quote
Cardiovascular Systems: Cardiovascular Systems is expected to have gained in its third quarter of fiscal 2022 from continued strength in Japan coupled with the launch of the coronary Orbital Atherectomy System (OAS) in Europe. We also expect to see a rebound in the coronary business as cath labs have resumed the use of atherectomy to treat lesions with intimal and medial calcium, heavy stenosis and multivessel disease.
Cardiovascular Systems is expected to release third-quarter fiscal 2022 results soon.
Cardiovascular Systems has an Earnings ESP of +13.77% and a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Cardiovascular Systems, Inc. Price and EPS Surprise
Cardiovascular Systems, Inc. price-eps-surprise | Cardiovascular Systems, Inc. Quote
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Abbott Laboratories (ABT): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Alcon (ALC): Free Stock Analysis Report
Cardiovascular Systems, Inc. (CSII): Free Stock Analysis Report
Zimmer Biomet Holdings, Inc. (ZBH): 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 and Intuitive Surgical, Inc. ISRG are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report Overall, the results of the majority of medical device stocks so far have shown accelerated base business growth through the months of the first quarter compared with 2020 given the reduction of severity of COVID-19 despite the emergence of new virus variants. | Abbott ABT and Intuitive Surgical, Inc. ISRG are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report Alcon Price and EPS Surprise Alcon price-eps-surprise | Alcon Quote Zimmer Biomet: Zimmer Biomet is expected to have witnessed a strong sales gain in Q1 on growing demand and momentum for ROSA robotics line globally. | Abbott ABT and Intuitive Surgical, Inc. ISRG 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, Alcon ALC, Zimmer Biomet ZBH and Cardiovascular Systems CSII that are expected to beat earnings estimates in the ongoing reporting cycle. | Abbott ABT and Intuitive Surgical, Inc. ISRG are a few companies whose base-business performance registered a strong recovery rate. Abbott Laboratories (ABT): Free Stock Analysis Report The industry players who had witnessed a strong rebound in product demand across core business segments during the majority of 2021 have collectively faced a setback so far in the 2022 in terms of disrupted procedure volumes and staffing shortages in major international geographies and the United States. |
31699.0 | 2022-04-25 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-20 | 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
Expeditors International of Washington, Inc. (Symbol: EXPD) $96.69 $116.75 20.75%
Prosperity Bancshares Inc. (Symbol: PB) $66.74 $79.72 19.45%
Abbott Laboratories (Symbol: ABT) $117.69 $140.46 19.35%
Illinois Tool Works, Inc. (Symbol: ITW) $196.27 $232.10 18.26%
Ecolab Inc (Symbol: ECL) $176.60 $205.42 16.32%
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
Expeditors International of Washington, Inc. (Symbol: EXPD) 1.17% 20.75% 21.92%
Prosperity Bancshares Inc. (Symbol: PB) 3.15% 19.45% 22.6%
Abbott Laboratories (Symbol: ABT) 1.57% 19.35% 20.92%
Illinois Tool Works, Inc. (Symbol: ITW) 2.40% 18.26% 20.66%
Ecolab Inc (Symbol: ECL) 1.16% 16.32% 17.48%
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
Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54%
Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32%
Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58%
Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90%
Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21%
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. | Expeditors International of Washington, Inc. (Symbol: EXPD) $96.69 $116.75 20.75% Prosperity Bancshares Inc. (Symbol: PB) $66.74 $79.72 19.45% Abbott Laboratories (Symbol: ABT) $117.69 $140.46 19.35% Illinois Tool Works, Inc. (Symbol: ITW) $196.27 $232.10 18.26% Ecolab Inc (Symbol: ECL) $176.60 $205.42 16.32% 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. Expeditors International of Washington, Inc. (Symbol: EXPD) 1.17% 20.75% 21.92% Prosperity Bancshares Inc. (Symbol: PB) 3.15% 19.45% 22.6% Abbott Laboratories (Symbol: ABT) 1.57% 19.35% 20.92% Illinois Tool Works, Inc. (Symbol: ITW) 2.40% 18.26% 20.66% Ecolab Inc (Symbol: ECL) 1.16% 16.32% 17.48% Another consideration with dividend growth stocks is just how much the dividend is growing. Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% These five stocks are part of our full Dividend Aristocrats List. | Expeditors International of Washington, Inc. (Symbol: EXPD) $96.69 $116.75 20.75% Prosperity Bancshares Inc. (Symbol: PB) $66.74 $79.72 19.45% Abbott Laboratories (Symbol: ABT) $117.69 $140.46 19.35% Illinois Tool Works, Inc. (Symbol: ITW) $196.27 $232.10 18.26% Ecolab Inc (Symbol: ECL) $176.60 $205.42 16.32% 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. Expeditors International of Washington, Inc. (Symbol: EXPD) 1.17% 20.75% 21.92% Prosperity Bancshares Inc. (Symbol: PB) 3.15% 19.45% 22.6% Abbott Laboratories (Symbol: ABT) 1.57% 19.35% 20.92% Illinois Tool Works, Inc. (Symbol: ITW) 2.40% 18.26% 20.66% Ecolab Inc (Symbol: ECL) 1.16% 16.32% 17.48% Another consideration with dividend growth stocks is just how much the dividend is growing. Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% These five stocks are part of our full Dividend Aristocrats List. | Expeditors International of Washington, Inc. (Symbol: EXPD) $96.69 $116.75 20.75% Prosperity Bancshares Inc. (Symbol: PB) $66.74 $79.72 19.45% Abbott Laboratories (Symbol: ABT) $117.69 $140.46 19.35% Illinois Tool Works, Inc. (Symbol: ITW) $196.27 $232.10 18.26% Ecolab Inc (Symbol: ECL) $176.60 $205.42 16.32% 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. Expeditors International of Washington, Inc. (Symbol: EXPD) 1.17% 20.75% 21.92% Prosperity Bancshares Inc. (Symbol: PB) 3.15% 19.45% 22.6% Abbott Laboratories (Symbol: ABT) 1.57% 19.35% 20.92% Illinois Tool Works, Inc. (Symbol: ITW) 2.40% 18.26% 20.66% Ecolab Inc (Symbol: ECL) 1.16% 16.32% 17.48% Another consideration with dividend growth stocks is just how much the dividend is growing. Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% These five stocks are part of our full Dividend Aristocrats List. | Expeditors International of Washington, Inc. (Symbol: EXPD) $96.69 $116.75 20.75% Prosperity Bancshares Inc. (Symbol: PB) $66.74 $79.72 19.45% Abbott Laboratories (Symbol: ABT) $117.69 $140.46 19.35% Illinois Tool Works, Inc. (Symbol: ITW) $196.27 $232.10 18.26% Ecolab Inc (Symbol: ECL) $176.60 $205.42 16.32% 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. Expeditors International of Washington, Inc. (Symbol: EXPD) 1.17% 20.75% 21.92% Prosperity Bancshares Inc. (Symbol: PB) 3.15% 19.45% 22.6% Abbott Laboratories (Symbol: ABT) 1.57% 19.35% 20.92% Illinois Tool Works, Inc. (Symbol: ITW) 2.40% 18.26% 20.66% Ecolab Inc (Symbol: ECL) 1.16% 16.32% 17.48% Another consideration with dividend growth stocks is just how much the dividend is growing. Expeditors International of Washington, Inc. (Symbol: EXPD) $1.04 $1.16 11.54% Prosperity Bancshares Inc. (Symbol: PB) $1.9 $2.02 6.32% Abbott Laboratories (Symbol: ABT) $1.62 $1.84 13.58% Illinois Tool Works, Inc. (Symbol: ITW) $4.49 $4.8 6.90% Ecolab Inc (Symbol: ECL) $1.9 $1.98 4.21% These five stocks are part of our full Dividend Aristocrats List. |
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