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31700.0 | 2022-04-23 00:00:00 UTC | 21 Bold Words from Abbott's CEO About the Future of Its COVID Tests | ABT | https://www.nasdaq.com/articles/21-bold-words-from-abbotts-ceo-about-the-future-of-its-covid-tests | nan | nan | Like many other companies that sell medical devices, Abbott Laboratories (NYSE: ABT) suffered at times during the pandemic as hospitals postponed non-essential procedures to focus their limited resources on treating coronavirus patients. But Abbott has one thing many other medical device makers don't -- an enormous COVID-19 testing business. That helped push its overall revenue up by more than 17% in 2022's first quarter.
Now, however, as we look ahead to a time when the pandemic phase of the COVID-19 crisis will end, and the virus will shift into being an endemic issue, Abbott's shareholders might be getting a little nervous about the future of its coronavirus testing revenue. With the perceived threat receding, they might expect that testing demand will drop drastically.
Abbott doesn't see things that way. In fact, 21 words that CEO Robert Ford said during the first-quarter earnings call on Wednesday offer reason for optimism.
Image source: Getty Images.
Cases and testing requirements
First, it's important to note that coronavirus testing revenue, from the start, hasn't climbed in a steady line. It has ebbed and flowed along with new case figures and shifts in testing requirements to access things like travel. So we should expect figures to keep fluctuating from quarter to quarter.
Here's what Ford said:
"Do we have confidence that even in an endemic state, does testing continue? And I would say, yes, it does continue."
Ford went on to say that Abbott is in the strongest position in the COVID-19 testing market, and should be able to lead it. He expects that by next year, the coronavirus testing market in some areas may resemble that for the flu. This implies there may be times when there are significantly more new cases -- and more of a need for testing. It's also key to keep in mind that Abbott sells its COVID tests worldwide, and new case diagnoses and trends will keep varying widely from place to place. In fact, 50% of Abbott's COVID testing sales last month came from international markets.
So how much revenue can investors expect from future COVID test sales? One of Abbott's weaker periods on this front was 2021's second quarter, when it reported $1.3 billion in coronavirus test sales. This was just after the company lowered its full-year outlook due to waning test demand. Recent quarters have been stronger as the delta and omicron variants spread rapidly, causing sharp surges in new cases. In 2022's first quarter, Abbott reported $3.3 billion in coronavirus test sales.
An endemic situation
In an endemic situation, Abbott still could generate blockbuster revenues from its COVID tests if various venues continue to require people to get tested prior to entry. For some, regular testing may be mandatory to go to school or work. And even if it is only recommended in certain situations, many people will want to get tested if they're high risk or if they are planning to be in contact with high-risk individuals. And of course, demand also could get a lift when cases increase in specific locales.
In short, it's likely that coronavirus test sales will remain a notable part of Abbott's revenue picture.
What does this mean for you as an investor? I wouldn't buy or sell Abbott stock specifically based on its position in this business. It's actually just one small part of Abbott. The company has four solid businesses: medical devices, established pharmaceuticals, diagnostics, and nutrition. It's better to look at the company as a whole, and from there, bet on its future prospects.
And here, there's reason to be positive. On theearnings call Ford said if you factored out the positive impact of coronavirus test sales and the negative impact of a recent baby formula recall, the company's Q1 growth was about 11%. And in the quarter, each business -- except for nutrition, due to the recall -- delivered double-digit percentage revenue growth. The growth of Abbott's medical devices business was particularly good news because it contributed the most to revenue in the pre-coronavirus days.
If Ford's right about how people will behave in a world where COVID-19 is an endemic problem, coronavirus testing might continue to generate more than $1 billion in annual revenues. But even if it doesn't reach that blockbuster level, Abbott remains a solid healthcare stock for any portfolio, because all four of its businesses are set to deliver growth over time.
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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. | Like many other companies that sell medical devices, Abbott Laboratories (NYSE: ABT) suffered at times during the pandemic as hospitals postponed non-essential procedures to focus their limited resources on treating coronavirus patients. Now, however, as we look ahead to a time when the pandemic phase of the COVID-19 crisis will end, and the virus will shift into being an endemic issue, Abbott's shareholders might be getting a little nervous about the future of its coronavirus testing revenue. But even if it doesn't reach that blockbuster level, Abbott remains a solid healthcare stock for any portfolio, because all four of its businesses are set to deliver growth over time. | Like many other companies that sell medical devices, Abbott Laboratories (NYSE: ABT) suffered at times during the pandemic as hospitals postponed non-essential procedures to focus their limited resources on treating coronavirus patients. So how much revenue can investors expect from future COVID test sales? In 2022's first quarter, Abbott reported $3.3 billion in coronavirus test sales. | Like many other companies that sell medical devices, Abbott Laboratories (NYSE: ABT) suffered at times during the pandemic as hospitals postponed non-essential procedures to focus their limited resources on treating coronavirus patients. Cases and testing requirements First, it's important to note that coronavirus testing revenue, from the start, hasn't climbed in a steady line. In 2022's first quarter, Abbott reported $3.3 billion in coronavirus test sales. | Like many other companies that sell medical devices, Abbott Laboratories (NYSE: ABT) suffered at times during the pandemic as hospitals postponed non-essential procedures to focus their limited resources on treating coronavirus patients. So we should expect figures to keep fluctuating from quarter to quarter. So how much revenue can investors expect from future COVID test sales? |
31701.0 | 2022-04-22 00:00:00 UTC | 7 Stocks to Buy If You Think Inflation Is Topping Out | ABT | https://www.nasdaq.com/articles/7-stocks-to-buy-if-you-think-inflation-is-topping-out | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
UnitedHealth Group (NYSE:UNH) – This managed care leader offers double-digit earnings and dividend growth
Abbott Laboratories (NYSE:ABT) – A dividend king with a forecast for continued revenue and earnings growth
Deere & Co. (NYSE:DE) – Well positioned for strong demand in the second quarter
Nucor (NYSE:NUE) – A savvy investment in clean energy adds another vertical
Lam Research Corp (NASDAQ:LRCX) – An undervalued semiconductor stock with strong free cash flow
Qualcomm (NASDAQ:QCOM) – A major move into the connected car sector supports an attractive valuation
Nike (NYSE:NKE) – Further proof that premium brands can support a premium valuation
Source: Sauko Andrei / Shutterstock
Inflation remains a top-of-mind concern for investors as they look for the best stocks to buy, and April’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings did nothing to change that.
However, for the first time in several months, there was a silver lining. The core CPI number (the one that excludes food and groceries) came in lower than expected at 0.3% versus an expected 0.5%.
That has some analysts believing that the market may have seen peak inflation, but that doesn’t mean consumers won’t continue to be feeling the effects of higher prices for some time.
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However, high but falling inflation can change the composition of investors’ portfolios. Rather than just looking for hedges against inflation, investors may begin to look for some growth stocks to buy, including in some areas that have been beaten down.
That’s the focus of this article. I’m looking at seven stocks to buy if inflation is at, or near, its peak.
UNH UnitedHealth Group $537.44
ABT Abbott Laboratories $123.37
DE Deere & Co $424.36
NUE Nucor $175.59
LRCX Lam Research Corp $469.51
QCOM Qualcomm $136.11
NKE Nike $135.46
Inflation Stocks to Buy: UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth Group is becoming a giant in the managed health care sector. Historically, healthcare stocks are among the first that investors look at when they suspect that inflation is at or near its peak.
One of the catalysts for UnitedHealth’s growth is found in its Medicare Advantage portfolio.
UnitedHealth Group was a big winner for investors in 2021 because it delivered double-digit growth in earnings and revenue. And if the company’s first-quarter earnings report is any indication, it may deliver more of the same in 2022.
UNH has also been showing double-digit dividend growth. It has increased its dividend in each of the last 13 years, and past history suggests that investors may be treated to another dividend increase prior to the company reporting earnings in July.
Abbott Laboratories (ABT)
Source: testing / Shutterstock.com
Whatever UNH Group can do, Abbott Laboratories can do better. Or at least longer.
Abbott Labs has increased its dividend payment in each of the last 50 years. This puts it in the exclusive Dividend Kings club. A dividend yield of 1.53% is above the sector average of 1.06%.
There are other reasons why ABT makes this list of stocks to buy. The company derives a significant amount of its revenue from two of its four business units: diagnostics and medical devices.
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It should please investors to know that both of these sectors are projected to show strong growth in the next few years. As a leader in each category, it’s likely that ABT stock will lean into that growth.
The company has increased revenue by an average of more than 15% for the last five years and some analysts expect to see continued double-digit earnings growth in the next five years as well.
Inflation Stocks to Buy: Deere & Co (DE)
Source: mark stephens photography / Shutterstock.com
Deere & Co. is known for its signature green and yellow equipment. It manufactures the tractors, backhoe loaders, excavators and other industrial equipment that will likely be in high demand as infrastructure funding is spent.
This is especially true as farmers look to capitalize on rising crop prices and demand for new home construction remains strong.
After recording a double beat in its last earnings report, DE stock plummeted. Its earnings per share were down sharply from the prior year. At the time, the sell-off seemed overdone. Sure enough, just two months later, Deere stock is on the rise again.
DE stock is approaching the top of its 52-week range but analysts still have it as a “buy.” The company is expected to post strong earnings per share when it reports in May. If it meets or exceeds that expectation and follows it up with strong guidance, the price target will likely rise.
Nucor (NUE)
Source: Shutterstock
Moving to the materials sector brings me to Nucor. It’s the largest steel manufacturer in the United States and steel demand is increasing at the nation rebuilds its infrastructure.
The company is also getting a lift because the Russian invasion of Ukraine is keeping larger steel exporters offline.
However, the company has another catalyst as Louis Navallier recently pointed out. Nucor company is making a $15 million investment in NuScale, a next-generation nuclear power company, which manufactures small, modular reactors (SMRs).
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As Navallier writes, “NUE is likely investing because NuScale will need a steelmaker for containment vessels and this would make the whole operations a U.S.-made venture.”
Nucor president and CEO Leon Topalian pointed to NuScale’s clean energy focus as being consistent with its own sustainability goals. Nucor is also a strong dividend stock, having increased its dividend in each of the last 49 years.
Inflation Stocks to Buy: Lam Research Corp (LRCX)
Lam Research makes up part of a duopoly with Allied Materials (NASDAQ:AMAT). Both companies provide components to chip manufacturers.
There is some concern that the chip market may be cooling off.
That concern is being reflected in LRCX stock which is down more than 35% since the beginning of the year.
The company has reported that it expects its deferred revenue will continue to grow, though, and that’s good news for earnings growth as well.
Plus, Lam Research already has strong fundamentals including strong and growing free cash flow. Analysts seem to agree. The stock has a consensus 12-month price target of $709.52, an upside of more than 47%.
It also appears that Lam Research has a valuation that potentially leaves room on the upside and may be eyeing a stock split sometime in 2022.
Qualcomm (QCOM)
Source: jejim / Shutterstock.com
Your decision to buy Qualcomm will largely depend on how you view its growth narrative.
On the one hand, much of the company’s current revenue comes from its relationship with smartphone manufacturers.
There’s a question about how long that growth can last. That’s one reason that two analysts have lowered their price targets for Qualcomm in April.
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However, in each case the analysts still rated Qualcomm stock as a “Buy.” That may have to do with Qualcomm becoming a major player in the connected car space. To that end, Qualcomm recently signed a multi-year contract to provide its chips to Stellantis (NYSE:STLA).
Qualcomm has a reasonable valuation and the forecast for earnings and revenue support the company’s $200.61 price target which is 42% higher than the stock’s price as of this writing.
Inflation Stocks to Buy: Nike (NKE)
Source: TY Lim / Shutterstock.com
For the second time this month, I find myself recommending Nike. The company delivered a strong earnings report in late March.
As I predicted then, the company has seen a slew of increased price targets which now leaves room for the stock to post continued growth in future quarters.
To recap, the company is managing to grow margins despite the fact that costs are rising and the company is still trying to navigate supply chain disruptions. One area that is showing particular strength is e-commerce. This is an area where Nike has not always been strong.
However, as I also pointed out in my previous recommendation, NKE stock does sport a premium valuation. For now, the company is justifying that valuation; premium brands frequently prove that. I believe investors should continue to pay attention to the interest of institutional investors. Although not strongly bullish, it is increasing in recent quarters.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Stocks to Buy If You Think Inflation Is Topping Out 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. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips UnitedHealth Group (NYSE:UNH) – This managed care leader offers double-digit earnings and dividend growth Abbott Laboratories (NYSE:ABT) – A dividend king with a forecast for continued revenue and earnings growth Deere & Co. (NYSE:DE) – Well positioned for strong demand in the second quarter Nucor (NYSE:NUE) – A savvy investment in clean energy adds another vertical Lam Research Corp (NASDAQ:LRCX) – An undervalued semiconductor stock with strong free cash flow Qualcomm (NASDAQ:QCOM) – A major move into the connected car sector supports an attractive valuation Nike (NYSE:NKE) – Further proof that premium brands can support a premium valuation Source: Sauko Andrei / Shutterstock Inflation remains a top-of-mind concern for investors as they look for the best stocks to buy, and April’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings did nothing to change that. UNH UnitedHealth Group $537.44 ABT Abbott Laboratories $123.37 DE Deere & Co $424.36 NUE Nucor $175.59 LRCX Lam Research Corp $469.51 QCOM Qualcomm $136.11 NKE Nike $135.46 Inflation Stocks to Buy: UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group is becoming a giant in the managed health care sector. Abbott Laboratories (ABT) Source: testing / Shutterstock.com Whatever UNH Group can do, Abbott Laboratories can do better. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips UnitedHealth Group (NYSE:UNH) – This managed care leader offers double-digit earnings and dividend growth Abbott Laboratories (NYSE:ABT) – A dividend king with a forecast for continued revenue and earnings growth Deere & Co. (NYSE:DE) – Well positioned for strong demand in the second quarter Nucor (NYSE:NUE) – A savvy investment in clean energy adds another vertical Lam Research Corp (NASDAQ:LRCX) – An undervalued semiconductor stock with strong free cash flow Qualcomm (NASDAQ:QCOM) – A major move into the connected car sector supports an attractive valuation Nike (NYSE:NKE) – Further proof that premium brands can support a premium valuation Source: Sauko Andrei / Shutterstock Inflation remains a top-of-mind concern for investors as they look for the best stocks to buy, and April’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings did nothing to change that. UNH UnitedHealth Group $537.44 ABT Abbott Laboratories $123.37 DE Deere & Co $424.36 NUE Nucor $175.59 LRCX Lam Research Corp $469.51 QCOM Qualcomm $136.11 NKE Nike $135.46 Inflation Stocks to Buy: UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group is becoming a giant in the managed health care sector. Abbott Laboratories (ABT) Source: testing / Shutterstock.com Whatever UNH Group can do, Abbott Laboratories can do better. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips UnitedHealth Group (NYSE:UNH) – This managed care leader offers double-digit earnings and dividend growth Abbott Laboratories (NYSE:ABT) – A dividend king with a forecast for continued revenue and earnings growth Deere & Co. (NYSE:DE) – Well positioned for strong demand in the second quarter Nucor (NYSE:NUE) – A savvy investment in clean energy adds another vertical Lam Research Corp (NASDAQ:LRCX) – An undervalued semiconductor stock with strong free cash flow Qualcomm (NASDAQ:QCOM) – A major move into the connected car sector supports an attractive valuation Nike (NYSE:NKE) – Further proof that premium brands can support a premium valuation Source: Sauko Andrei / Shutterstock Inflation remains a top-of-mind concern for investors as they look for the best stocks to buy, and April’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings did nothing to change that. UNH UnitedHealth Group $537.44 ABT Abbott Laboratories $123.37 DE Deere & Co $424.36 NUE Nucor $175.59 LRCX Lam Research Corp $469.51 QCOM Qualcomm $136.11 NKE Nike $135.46 Inflation Stocks to Buy: UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group is becoming a giant in the managed health care sector. Abbott Laboratories (ABT) Source: testing / Shutterstock.com Whatever UNH Group can do, Abbott Laboratories can do better. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips UnitedHealth Group (NYSE:UNH) – This managed care leader offers double-digit earnings and dividend growth Abbott Laboratories (NYSE:ABT) – A dividend king with a forecast for continued revenue and earnings growth Deere & Co. (NYSE:DE) – Well positioned for strong demand in the second quarter Nucor (NYSE:NUE) – A savvy investment in clean energy adds another vertical Lam Research Corp (NASDAQ:LRCX) – An undervalued semiconductor stock with strong free cash flow Qualcomm (NASDAQ:QCOM) – A major move into the connected car sector supports an attractive valuation Nike (NYSE:NKE) – Further proof that premium brands can support a premium valuation Source: Sauko Andrei / Shutterstock Inflation remains a top-of-mind concern for investors as they look for the best stocks to buy, and April’s Consumer Price Index (CPI) and Producer Price Index (PPI) readings did nothing to change that. UNH UnitedHealth Group $537.44 ABT Abbott Laboratories $123.37 DE Deere & Co $424.36 NUE Nucor $175.59 LRCX Lam Research Corp $469.51 QCOM Qualcomm $136.11 NKE Nike $135.46 Inflation Stocks to Buy: UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group is becoming a giant in the managed health care sector. Abbott Laboratories (ABT) Source: testing / Shutterstock.com Whatever UNH Group can do, Abbott Laboratories can do better. |
31702.0 | 2022-04-21 00:00:00 UTC | Got $5,000? This Dividend King Is Down More Than 15% This Year | ABT | https://www.nasdaq.com/articles/got-%245000-this-dividend-king-is-down-more-than-15-this-year | nan | nan | The S&P 500 is down 8% in 2022 and many quality investments have gone down along with it. Healthcare company Abbott Laboratories (NYSE: ABT) is one of those casualties, declining by a surprising 12%. It's a noteworthy development given that its business is versatile and generally pretty solid all around.
However, it has also benefited from COVID-19 testing. And now with concerns around the pandemic starting to subside and testing becoming less of a worry, investors may be preparing for some weaker results ahead when the company posts earnings later this month.
To me, it looks like a bit of an overreaction, and for dividend investors, now could be an excellent time to invest in the business.
Image source: Getty Images.
Should investors be worried about a drop in COVID-19 testing?
When Abbott Laboratories last reported its earnings in January, it was already anticipating a drop in testing for COVID-19. The company said that during the last three months of 2021, revenue related to its COVID-19 tests totaled $2.3 billion and $7.7 billion for the full year -- that's 18% of the $43.1 billion in total revenue that Abbott reported last year. The company has four main segments, including diagnostics (which is where its COVID-19 testing falls), medical devices, nutrition, and pharmaceuticals.
The company's guidance for all of 2022 forecasts just $2.5 billion from COVID-19 testing, with the company expecting to generate the bulk of that during the early part of the year. And this year, Abbott projects that its diluted per-share profit will be $3.43 or greater. That's 13% less than the $3.94 profit it posted last year.
Although it's a decline in earnings, there are three reasons income investors shouldn't worry about it. The first is that Abbott's dividend totals just $1.88 annually and even at that reduced profit, the payout is still not in any danger.
Secondly, with Abbott already providing that guidance, the share price already reflects that forecast. Unless Abbott grossly underestimated its COVID-19 revenue for the quarter, it's unlikely that there will be another steep drop in price after it reports earnings this month. The bar is already set low, and investors likely aren't expecting a resurgence in COVID-19 testing at this point.
And lastly, even with the drop in earnings, the forecast earnings per share (EPS) will still be 38% higher than the $2.49-per-share profit Abbott reported in 2020. And in 2019, EPS was even lower at just $2.06. Abbott is in a stronger position than where it was a few years ago, and that's the key takeaway for investors.
A declining share price can be an opportunity
If a company is fundamentally sound, as Abbott is, then investors shouldn't worry about a temporary drop in price. As the following chart illustrates, a decline in share price means you're collecting the same dividend for less of an investment, and thus, you are earning a higher yield:
ABT data by YCharts
At just under 1.6%, Abbott is now paying investors more than the S&P 500 average of around 1.4%. Plus, as a Dividend King, the company is in an exclusive club of dividend stocks that are among the safest in the world.
Even if you aren't thrilled with the current payout, just hang on to the stock. This year, the company increased its dividend payments by 4% to $0.47. And last year, after a strong performance due to the pandemic, it increased its payouts by 25%.
A no-brainer buy?
Abbott is a top healthcare stock to own for the long haul. There's little reason to worry that the company will suddenly turn unprofitable or that it won't keep increasing its dividend. The only argument I could make against owning Abbott would be that nearly 30 times earnings is a steep multiple to pay for the stock, especially since the average stock in the Health Care Select Sector SPDR Fund trades at only 23 times its profits.
There may still be a decline in the share price given that Abbott is facing some headwinds right now due to COVID-19 testing. And for that reason, it may be tempting to wait to see if there's more of a decline as the markets do appear to be shedding some excessive valuations of late.
However, the stock may not fall a whole lot further and it could even rise as hospitals resume their normal day-to-day operations, which COVID-19 previously interrupted. Investors looking for a solid dividend stock shouldn't hesitate to buy shares of Abbott Laboratories.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As the following chart illustrates, a decline in share price means you're collecting the same dividend for less of an investment, and thus, you are earning a higher yield: ABT data by YCharts At just under 1.6%, Abbott is now paying investors more than the S&P 500 average of around 1.4%. Healthcare company Abbott Laboratories (NYSE: ABT) is one of those casualties, declining by a surprising 12%. And now with concerns around the pandemic starting to subside and testing becoming less of a worry, investors may be preparing for some weaker results ahead when the company posts earnings later this month. | Healthcare company Abbott Laboratories (NYSE: ABT) is one of those casualties, declining by a surprising 12%. As the following chart illustrates, a decline in share price means you're collecting the same dividend for less of an investment, and thus, you are earning a higher yield: ABT data by YCharts At just under 1.6%, Abbott is now paying investors more than the S&P 500 average of around 1.4%. The company said that during the last three months of 2021, revenue related to its COVID-19 tests totaled $2.3 billion and $7.7 billion for the full year -- that's 18% of the $43.1 billion in total revenue that Abbott reported last year. | Healthcare company Abbott Laboratories (NYSE: ABT) is one of those casualties, declining by a surprising 12%. As the following chart illustrates, a decline in share price means you're collecting the same dividend for less of an investment, and thus, you are earning a higher yield: ABT data by YCharts At just under 1.6%, Abbott is now paying investors more than the S&P 500 average of around 1.4%. The company said that during the last three months of 2021, revenue related to its COVID-19 tests totaled $2.3 billion and $7.7 billion for the full year -- that's 18% of the $43.1 billion in total revenue that Abbott reported last year. | Healthcare company Abbott Laboratories (NYSE: ABT) is one of those casualties, declining by a surprising 12%. As the following chart illustrates, a decline in share price means you're collecting the same dividend for less of an investment, and thus, you are earning a higher yield: ABT data by YCharts At just under 1.6%, Abbott is now paying investors more than the S&P 500 average of around 1.4%. That's 13% less than the $3.94 profit it posted last year. |
31703.0 | 2022-04-21 00:00:00 UTC | Pre-Market Most Active for Apr 21, 2022 : AAL, CRXT, RDBX, TQQQ, SQQQ, AAPL, T, ABT, CCL, NIO, RELX, ELAN | ABT | https://www.nasdaq.com/articles/pre-market-most-active-for-apr-21-2022-%3A-aal-crxt-rdbx-tqqq-sqqq-aapl-t-abt-ccl-nio-relx | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 177.6 to 14,176.13. The total Pre-Market volume is currently 37,109,415 shares traded.
The following are the most active stocks for the pre-market session:
American Airlines Group, Inc. (AAL) is +1.82 at $21.30, with 6,724,605 shares traded. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats
Clarus Therapeutics Holdings, Inc. (CRXT) is +0.34 at $2.42, with 4,857,715 shares traded. As reported by Zacks, the current mean recommendation for CRXT is in the "buy range".
Redbox Entertainment Inc. (RDBX) is +0.38 at $2.92, with 2,511,534 shares traded. As reported by Zacks, the current mean recommendation for RDBX is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is +1.69 at $49.59, with 1,788,903 shares traded. This represents a 25.35% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -1.36 at $38.08, with 1,426,665 shares traded. This represents a 35.28% increase from its 52 Week Low.
Apple Inc. (AAPL) is +1.77 at $169.00, with 1,334,137 shares traded.AAPL is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago
AT&T Inc. (T) is +0.3188 at $19.75, with 1,189,738 shares traded. Smarter Analyst Reports: AT&T Posts Strong Q3 Results on Customer Growth
Abbott Laboratories (ABT) is +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range".
Carnival Corporation (CCL) is +0.65 at $20.27, with 655,401 shares traded. CCL's current last sale is 92.14% of the target price of $22.
NIO Inc. (NIO) is +0.35 at $18.50, with 635,814 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
RELX PLC (RELX) is +0.1 at $31.45, with 600,239 shares traded. As reported by Zacks, the current mean recommendation for RELX is in the "strong buy range".
Elanco Animal Health Incorporated (ELAN) is +0.07 at $26.35, with 480,672 shares traded. ELAN's current last sale is 71.22% of the target price of $37.
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 +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats | Abbott Laboratories (ABT) is +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats | Abbott Laboratories (ABT) is +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". The total Pre-Market volume is currently 37,109,415 shares traded. | Abbott Laboratories (ABT) is +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago |
31704.0 | 2022-04-21 00:00:00 UTC | Abbott Q1 EPS, Sales Rise, ANTM Hits All-time High, Healthcare Services' Q1 Results Trump Estimates | ABT | https://www.nasdaq.com/articles/abbott-q1-eps-sales-rise-antm-hits-all-time-high-healthcare-services-q1-results-trump | nan | nan | (RTTNews) - The following are some of the healthcare companies that reported quarterly financial results on Wednesday.
1. Abbott (ABT) has reported strong earnings and sales for the first quarter ended March 31, 2022.
For the first quarter of 2022, adjusted net earnings increased to $3.08 billion or $1.73 per share on net sales of $11.9 billion. This compares with adjusted earnings of $2.37 billion or $1.32 per share and net sales of $10.46 billion in the year-ago quarter.
Looking ahead to full-year 2022, the company continues to expect adjusted earnings per share of at least $4.70, while the consensus analysts' estimate is $4.84. Earnings per share on an adjusted basis in 2021 were $5.21.
Abbott's cash dividend of $0.47 per share is payable May 16, 2022 to shareholders of record at the close of business on April 15, 2022.
ABT closed Wednesday's trading at $122.64, up 2.22%.
2. Shares of health company Anthem Inc. (ANTM) touched an all-time high of $532.16 in intraday trading yesterday, thanks to the strong financial performance in the first quarter of 2022.
Shareholders' net income for the first quarter of 2022 was $1.81 billion or $7.39 per share on total revenue of $38.09 billion. This compares with shareholders' net income of $1.67 billion or $6.71 per share and total revenue of $32.4 billion in the year-earlier quarter.
On an adjusted basis, shareholders' net income was $2.01 billion or $8.25 per share in the first quarter of 2022 compared to $1.74 billion or $7.01 per share in the year-ago quarter.
The company has 4 reportable segments - Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); IngenioRx; and Other (comprised of the Diversified Business Group and corporate expenses not allocated to other reportable segments).
Based on the strong first quarter results, the company now expects full-year 2022 adjusted net income to be greater than $28.40 per share while the Wall Street analysts are expecting earnings of $28.49 per share. Adjusted net income was $25.98 per share in 2021.
The company's second-quarter 2022 dividend of $1.28 per share is payable to shareholders of record at the close of business on June 10, 2022.
ANTM closed Wednesday's trading at $529.84, up 2.48%.
Shares of Healthcare Services Group Inc. (HCSG) gained nearly 20% yesterday, following its first-quarter financial results.
For the first quarter of 2022, the net income declined to $11.3 million or $0.15 per share on revenue of $426.8 million. Analysts polled by Thomson Reuters were expecting earnings of $0.06 per share and revenue of $424.77 million for the quarter.
This compares with net income of $24.7 million or $0.33 per share and revenue of $407.8 million in the first quarter of 2021.
The company's quarterly cash dividend of $0.2125 per common share is payable on June 24, 2022 to shareholders of record at the close of business on May 20, 2022.
HCSG closed Wednesday's trading at $19.91, up 19.94%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) has reported strong earnings and sales for the first quarter ended March 31, 2022. ABT closed Wednesday's trading at $122.64, up 2.22%. Looking ahead to full-year 2022, the company continues to expect adjusted earnings per share of at least $4.70, while the consensus analysts' estimate is $4.84. | Abbott (ABT) has reported strong earnings and sales for the first quarter ended March 31, 2022. ABT closed Wednesday's trading at $122.64, up 2.22%. On an adjusted basis, shareholders' net income was $2.01 billion or $8.25 per share in the first quarter of 2022 compared to $1.74 billion or $7.01 per share in the year-ago quarter. | Abbott (ABT) has reported strong earnings and sales for the first quarter ended March 31, 2022. ABT closed Wednesday's trading at $122.64, up 2.22%. For the first quarter of 2022, adjusted net earnings increased to $3.08 billion or $1.73 per share on net sales of $11.9 billion. | Abbott (ABT) has reported strong earnings and sales for the first quarter ended March 31, 2022. ABT closed Wednesday's trading at $122.64, up 2.22%. (RTTNews) - The following are some of the healthcare companies that reported quarterly financial results on Wednesday. |
31705.0 | 2022-04-20 00:00:00 UTC | Abbott Laboratories (ABT) Q1 2022 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q1-2022-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q1 2022 Earnings Call
Apr 20, 2022, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to Abbott's first quarter 2022earnings conference call [Operator instructions] This call is being recorded by Abbott. With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott.
It cannot be recorded or rebroadcast without Abbot's expressed written permission. I would now like to introduce Mr. Scott Leinenweber, vice president, investor relations, licensing, and acquisitions.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Good morning and thank you for joining us. With me today are Robert Ford, chairman and chief executive officer; and Bob Funck, executive vice president, finance and chief financial officer. Robert and Bob will provide opening remarks. Following their comments, we will take your questions.
Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2022. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A Risk Factors to our annual report on Form 10-K for the year ended December 31, 2021. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis, because the company is unable to predict future changes in foreign exchange rates, which could impact reported sales growth. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which excludes the impact of foreign exchange.
With that, I will now turn the call over to Robert.
Robert Ford -- Chairman and Chief Executive Officer
Thanks, Scott. Good morning, everyone, and thank you for joining us. Today, we reported results of another strong quarter. Earnings per share were $1.73, reflecting more than 30% growth compared to the prior year.
Sales increased 17.5% on an organic basis in the quarter, led by double-digit growth in medical devices, established pharmaceuticals as well as diagnostics, both with and without COVID testing-related sales. In addition to these strong results during the quarter, we continue to strengthen our strategic position and long-term growth opportunities with regulatory approvals of new products and expanded indications of use along with continued market uptake of several recently launched products in attractive growth areas. I'll now summarize our first quarter results in more detail before turning the call over to Bob. And I'll start with established pharmaceuticals, or EPD, where sales increased 13.5% in the quarter.
EPD has now achieved double-digit organic sales growth in three of the last four quarters. Strong performance this quarter was led by double-digit growth across several countries and core therapeutic areas, including gastroenterology, respiratory and CNS pain management. Turning to nutrition, where our performance was mixed. Our adult nutrition business continues to perform at a high level with global organic sales growth of 11.5%, led by our Ensure and Glucerna brands.
And we also achieved double-digit growth globally in our combined toddler nutrition products, which includes our market leading PediaSure and Pedialyte brands. As you know, however, we initiated a voluntary recall in February of certain infant formula products manufactured at one of our US facilities. It's important to highlight as part of our quality system, we retain in-house samples of products that we ship to customers. Testing of retained samples related to this recall action by both Abbott and the FDA have all come back negative for the presence of the bacteria that cause the reported illnesses.
Importantly, the FDA and CDC found that there is no genetic match between the strains of the bacteria identified in non-product contact areas of our facility and available samples obtained from customer complaints, suggesting a different source of contamination. And lastly, no salmonella was found in our factory or product and, therefore, the FDA ruled out any link to our facility. We hope these findings get parents, caregivers and other stakeholders renewed confidence in our products. We know the situation has further exacerbated industrywide infant formula supply shortages.
That's why we're doing everything possible to mitigate supply constraints by bringing in product from our FDA-registered facility in Europe and ramping up production at our other US plants. And of course, we're working very closely with the FDA on proactive actions and enhancements so that we can restart operations at the facility. Moving to diagnostics, where sales grew 35%. COVID test sales were $3.3 billion in the quarter, more than 90% of which came from our rapid test, including BinaxNOW in the US, Panbio internationally and ID NOW globally.
Excluding COVID-related -- COVID testing-related sales, our global diagnostics sales grew 12% in the quarter, driven by the continued rollout of Alinity, our innovative suite of diagnostic instruments and expanding menus across our testing platforms. And I'll wrap up with medical devices, where sales grew 11.5% in the quarter. This strong performance was led by double-digit growth in diabetes care, structural heart, heart failure and electrophysiology. In diabetes care, sales of FreeStyle Libre grew more than 25% on an organic basis in the quarter and the user base has now reached approximately 4 million users globally.
In cardiovascular devices, while procedure volumes were negatively impacted by elevated COVID case rates early in the year, we saw a steady improvement in procedure trends as the case rates came down in the second half of the quarter, which has continued into April. In addition to improving market trends and our strong results, this was also another highly productive quarter for our pipeline. In the US, we received FDA approval for Aveir, our leadless pacemaker to treat patients with slow heart rhythms. In Japan, expanded reimbursement for Libre will now cover all people with diabetes who use insulin at least once a day.
CardioMEMS received an expanded indication in the US to treat more patients suffering from earlier stages of heart failure. And we received US FDA clearance for the latest generation of our EnSite X system, which provides a 360-degree view of the heart for improved cardiac mapping. So in summary, we're achieving strong growth overall and across several areas of our business. As the first quarter progressed and COVID levels decreased, we saw a steady improvement in the hospital-based procedure trends, which has continued into April.
And we continue to advance our pipeline with new products, indications and reimbursement coverage in several attractive growth areas. I'll now turn over the call to Bob. Bob?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Thanks, Robert. As Scott mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis, which excludes the impact of foreign exchange. Turning to our results. Sales for the first quarter increased 17.5% on an organic basis, which was led by double-digit growth in diagnostics, medical devices and established pharmaceuticals along with global COVID testing-related sales of $3.3 billion in the quarter.
Excluding COVID testing-related sales, organic sales growth was 7.7% versus the prior year. Foreign exchange had an unfavorable year-over-year impact of 3.7% on first quarter sales. During the quarter, we saw the US dollar continue to strengthen versus several currencies, which resulted in a more unfavorable impact on sales compared to exchange rates at the time of ourearnings callin January. Regarding other aspects of the P&L, the adjusted gross margin ratio was 59.1% of sales, which reflects higher than normal fall-through on COVID testing sales as a result of significant production volumes during the first quarter, partially offset by the impacts of the nutrition recall and somewhat higher-than-expected inflation on certain manufacturing and distribution costs in the quarter.
Adjusted research and development investment was 5.6% of sales and adjusted SG&A investment was 23.1% of sales in the first quarter. Lastly, our first quarter adjusted tax rate was 14.5%. Before discussing our outlook for the full year, I want to provide an update on our strategic capital deployment initiatives completed in the first quarter, which included approximately $2.3 billion of share repurchases, $800 million of dividends, scheduled debt repayment of $750 million and $300 million of capital expenditures, which support future organic growth opportunities. We continue to generate strong cash flow, which provides the flexibility required to execute a well-balanced capital allocation strategy.
Turning to our outlook for the full year 2022. Our adjusted earnings per share guidance of at least $4.70 remains unchanged. We now forecast total company organic sales growth, excluding the impact of COVID testing-related sales, to be in the mid- to high single digits, which is somewhat lower than our prior forecast of high single digits due to the recent recall event in nutrition. It is important to note, excluding sales impacted by the recall, we continue to forecast total organic sales growth in the high single digits for the remainder of our combined businesses, which includes medical devices, established pharmaceuticals, diagnostics, excluding the impact of testing-related sales and areas of nutrition, not impacted by the recall.
We forecast COVID testing-related sales of approximately $4.5 billion with a significant portion of these sales expected to occur in the first half of the year. We continue to -- we'll continue to update our COVID testing-related sales forecast one quarter at a time throughout the year as appropriate. Lastly, based on current rates, we would now expect exchange to have an unfavorable impact of a little more than 3% on our full year reported sales. With that, we'll now open the call for questions.
Questions & Answers:
Operator
[Operator instructions] And our first question comes from Robbie Marcus from J.P. Morgan. Your line is open.
Robbie Marcus -- J.P. Morgan -- Analyst
Hi, good morning. Thanks for taking the question. and congrats on a good quarter. Maybe to start for Robert or Bob, you guys put up a good first quarter being on COVID testing sales had double-digit growth in most of the businesses.
I was hoping maybe you can reconcile the strong 1Q and the reiterated guidance and walk us through some of the puts and takes and how to think about bridging the difference?
Robert Ford -- Chairman and Chief Executive Officer
Sure, Robbie. I think you've been on these calls for a while. We rarely raised in Q1, I would say. And despite that, I mean, we've had a great start to the year as pointed out.
And there's a lot of good things going on at the company. We talked a little bit about procedure recovery in the comments. We've seen good recovery in our device portfolio, especially in cardiovascular, seen routine diagnostic testing improving albeit a little bit slower than what we've seen in devices, but definitely the trend of recovery is there. . EPD execution is going very well, like I said in the comments, three out of four quarters, double digit, strong COVID sales, both in the US and internationally.
I think that's an important aspect here is our international presence, too. Talked a little bit about the pipeline and the approvals, not just the recent approvals, but the performance of some of the recently launched products. Bob talked about our cash flow generation and the deployment of that cash flow. We're able to kind of share part of that cash flow with our shareholders, but also to continue to invest in the business.
So there's a lot of good things going on here in the business, and -- but there are a couple of challenges that we're managing, and that's probably the piece there where the reconciliation that you're looking for is actually happening. First of all, obviously managing through the recall on the nutrition side, we're working with the FDA. And we've contemplated in that reiterated guidance, various scenarios here in terms of kind of restart dates and share recovery curves, etc. So it's simple to give an exact date right now as to when that restart starts.
We're working closely with the FDA, but I see this more as a shorter-term challenge in the sense that once we align with restarting with the FDA then we'll begin to execute our strategy here in terms of coming back to market, resupplying the market and regaining the share. Probably the second other part here, which is I think is a little bit not unique to Abbott. And I think you'll probably see this across a lot of companies is just the macro environment right now is -- has definitely changed versus where we were in January, and it's gotten a little bit more challenging. and we expect some of that macro environment, whether it's supply chain, etc., to kind of be a little bit more persistent throughout this year.
So that being said, I wanted to see how these -- probably these two points here play out over the next couple of months, and we'll be in a better position to be able to assess that and on our guidance going forward after Q2. But like I said, there's a lot of great momentum in the business. Devices performing very well. Diagnostics performing very well.
The parts of nutrition that weren't impacted by the recall continue to do very well. I'm not a big fan of the -- exclude this, but for that statement, but I think in the context of how the business is performing, I mean if you exclude the COVID piece, which was pretty significant for us and then just look at the business without the base business, without the impacted nutrition products, our growth rate was about 11%. And I think that reflects the strength of the portfolio, the investments that we've made and the execution. So in that guidance, that reiteration of $470 million, we've absorbed, as Bob said, more FX headwinds, absorbed some challenges in supply chain, absorbed portions of the nutrition recall.
So I think it's the right EPS guide right now in terms of where we are after Q1.
Robbie Marcus -- J.P. Morgan -- Analyst
Great. Really good color. And maybe as a follow-up, I think a lot of investors are focused on the go forward, realizing that January and February weren't the strongest months due to some of the elevated Omicron levels. So we heard Johnson & Johnson yesterday talk about reaching pre-COVID volume levels in April.
It sounds like you exited and continue to see strong growth coming out of the quarter and into second quarter. I was hoping maybe you could give us a little more color on just the volume trends you're seeing, particularly in devices and diabetes, which was one that missed the street a little bit in the quarter? And how you're seeing the geographic spread and any differences there? Thanks a lot.
Robert Ford -- Chairman and Chief Executive Officer
Sure. I mean, I think the storyline here was very similar, as I said in my comments. I mean, it started off a little bit slower than we had anticipated in January, obviously, given Omicron and the surges there and the pressure that that put-on staff at hospitals. But definitely sequential improvement from a dollar perspective every month as we moved along the quarter, March was very strong.
I've always talked about how we compare our businesses versus pre-pandemic levels to kind of avoid some of the comp issues that ultimately do exist. If you look at our Q1 '22 growth rate versus 2019, we were up about 7.3%. So well ahead of where we were in 2019. And that was pretty broad-based.
Geographically, the US was up 6%, again versus 2019. And international was up over 8% versus 2019, too. So I think our device business has performed very well, and we've seen that improvement as we went through the quarter. The cardiovascular side has done very well as I've kind of given those numbers, and March was really strong, too.
I think it's -- part of it is recovery, Robbie, that we're seeing. But also -- I would also put in those numbers, I made these comments about recently launched products that we started launching last year. It's always a challenge to launch these new technologies in that COVID environment, but it was the right decision to make, and we're seeing good momentum on whether it's Amulet, Navitor in Europe, CardioMEMS, the rollout of EnSite X that began in Q4 of last year, our TriClip product. So I think all of that, it's the combination, I would say, of both recovery as the COVID cases subside, but also the new product launches and the pipeline that we put, which is driving this performance where, I'd say, we're ahead of where we were in 2019, having good growth rate in our cardio portfolio.
Robbie Marcus -- J.P. Morgan -- Analyst
Appreciate the color. Thanks.
Operator
Thank you. Our next question comes from Vijay Kumar from Evercore ISI. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Hey, guys. Thanks for taking my question. Robert, maybe back on the guidance question, right. The testing guidance was raised by $2 billion, right? That's perhaps $0.40 of upside and reiteration of the EPS, like what is offsetting the incremental tailwind from COVID rate? Like how much of this is FX, was this macro-Russia versus the recall or inflationary pressures, I think, a little bit more granularity will be helpful.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, I mean, I think you hit on the key points there. I mean, inflation -- additional inflation pressures is impacting some of that. We've got a couple of hundred million dollars that we've contemplated throughout the rest of the year in terms of friction on supply chain costs, input costs, freight and distribution.
The recall -- well, let me take a step back, the FX is probably about another about $0.05 of friction that we're having as we've seen the dollar strengthen and the rest of it is really coming from nutrition, but it's very difficult right now to be able to kind of pinpoint exactly. We've got a couple of different scenarios, as I said in the first question in terms of the restart and the curve. So we are seeing more COVID tests and more COVID sales. And that, like I said, is absorbing some of these challenges.
Vijay Kumar -- Evercore ISI -- Analyst
Understood. And then, one on Libre. Sequentially, your revenue has declined. And I guess my question is you've been adding, I think, a couple of hundred thousand new patients starts.
Is that new patient starts changing at all? How should we think about the incremental reimbursement in Japan? And was the seasonality or what drove the sequential Libre revenue trends?
Robert Ford -- Chairman and Chief Executive Officer
Yes. I mean, I think we see some of that from time to time here, especially as you go from Q4 to Q1, Vijay. We've seen that a couple of times. I'd say internationally, the biggest driver of that is actually FX that created that.
We've seen good growth internationally from Libre getting close to 20% on a very large base. And in the US, you're going to see some timing patterns there in terms of wholesaler ordering. I like to look at scripts, both new-to-brand scripts and total Rx scripts here in the US and the sequential Q1 to Q4, there's definitely growth there. So I think we've done a really good job in the US We've grown our business in this quarter by 50%.
Users now well over 1 million users. We've made the investments in the US, whether it's Salesforce, DTC advertising. I think the team is beginning to hit its stride over there. They know that I'm not satisfied.
We always want to see more and believe that we can do more. But I think the US is starting to kind of really hit its stride with those investments as the sales force gets deployed and establishes the relationships with what is new physicians that are getting introduced to CGM. So I think that's worked out very well. If I take a step back, though, and move away a little bit from the RXs and the sequential, I think one of the key things here to really take a look at is the evolution of the CGM market.
And I'm starting to really see now what we had always envisioned this market to start to be, which is a market that is shifting from what traditionally was more of a type one, more of a pumper -- insulin pump kind of connectivity play, which is an important segment, but really start to move and expand beyond that. And we're starting to see signs of that. And I think Libre is a big driver. The value proposition of Libre is a big driver, whether it's physicians and payers, quite frankly, starting to see the value of the sensing technology across a much broader set of patients.
If you look at a US base of patients, and we get to see this because we get to see the Rx data in terms of what medications the patients are using. And over 40% of our user base, which is pretty large in the US, is already type two non-intensive. And that, as I said, is really kind of an opportunity to expand this market and become a really strong growth driver. The Japan reimbursement that you just referenced, again, this goes back to a comment I made about.
We see this as a mass market opportunity. So counter to maybe how we think about reimbursement in different segments of devices where you're thinking about price of reimbursement versus patient TAM, we're looking at patient TAM much more than we are on the pricing side. We've got great reimbursement in Japan, but to be able to have access to all insulin users in Japan with our product is a great opportunity for us. And then, you're seeing the value proposition, again, really strong.
There was a study that was published by UK NICE. And I think that, for me, is the ultimate validation of our strategy and the value proposition we offer where it was clearly shown to be extremely cost effective, whether you look at ICERs or Qualys in the UK by NICE and their view here of how this can benefit a lot of patients. So that for me is the real exciting part of Libre is we're really starting to see that evolution from the CGM market to become much more than kind of a niche play and much more mass-market play. And I think we're starting to see evidence of that, whether it's new studies or reimbursement access or even seeing physicians primary care docs start to really embrace the prescription of CGM for type twos, so.
Vijay Kumar -- Evercore ISI -- Analyst
That's helpful, Robert. Thank you.
Operator
Thank you. Our next question comes from Josh Jennings from Cowen. Your line is open.
Josh Jennings -- Cowen and Company -- Analyst
Hi. Good morning. Thanks for taking the questions and congratulations on a strong start to the year. Rob and Bob, I just wanted to start with just a question on gross margins.
The 1Q performance was the highest since 20 -- quarters in 2019. Just wanted to better understand the sustainability of this profile? 59.1% despite all the challenges in place in 1Q, and then -- and should investors be thinking that return to 2019 gross margin levels in that 59% range plus is achievable in the out years? And follow-up is on MitraClip. I just wanted to hear -- and Amulet, what have you learned in the early days, the Amulet launched as the No. 2 player in the US left atrial appendage closure market that you can apply to your defense strategy starting this year, maybe carrying into next year when you're defending your MitraClip turf as the No.
1 player, assuming the U.S past the launch occurs in 2023?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
OK. Josh, I'll take the kind of the gross margin question. In the first quarter, our gross margin certainly benefited from the very high COVID testing sales. As I mentioned in my remarks, that actually, the fall-through on that was higher than we've seen in the past because of the production volumes that we had going through our plant, we're basically running full out on that.
So our first quarter definitely benefited from that. As we look at the rest of the year, obviously, we're going to have the impact of the nutrition recall and the inflation, the increased inflation that Robert mentioned. Obviously, inflation is not unique to us. As we said back in January, we incorporated a sizable amount in our guidance at that point in time.
And what we've seen, and I think a lot of other companies have seen as kind of an increase in some of those headwinds. And so, we've captured that in our guidance for the rest of the year. When I think out beyond this year and where gross margin goes, I mean, gross margin is something we focus on in the company constantly. We've got dedicated teams within each business that are focused on driving gross margin improvements.
I mean, a lot's going to depend, I think, as we think out in the future, the evolution of inflation and supply chain dynamics and how those evolve over time, that will be a key component. And then, obviously, as we grow the top line in our medical device business, that's accretive to the overall profile of the company. And so, that's kind of where we see gross margin right now and potentially in the future.
Robert Ford -- Chairman and Chief Executive Officer
Yeah. On your question on MitraClip and Amulet, so I'll talk a little bit about MitraClip. I'd say the progression of MitraClip in the quarter was very similar to my commentary on our cardiovascular procedure, right? So we obviously had high COVID case kind of impacted but started to really accelerate growth toward the end of February and into March. So as those cases came down, we saw the improving growth rate.
But I'll tell you, I mean, while the growth rate has been strong and it's been strong for a while, Josh, I don't think we've really been able to benefit yet from the FMR indication, which we got kind of right in the middle of COVID. And as part of that, and I talked a little bit about this, to be able to benefit from this pretty significant kind of market expansion opportunity that we had with incredible robust data from COAPT, you have to really start to work those patient referrals and the referral networks. And we began doing that when COVID took its first break, and then that got put on hold again when Delta and Omicron served. So I'm really looking forward and the team is kind of already putting in place that strategy, again, to reengage the patient referral network so that we can really take advantage of this indication, which is unique to us and will be unique to us for a while.
Relating to competitive movements into the market, we just got to stay ahead. We've got to keep on investing in the product. So we've done that with MitraClip, staying ahead and iterating and improving on the performance of the product. We're investing in new trials.
I talked about our investment that we're making in moderate risk surgery patients. That will be a great opportunity for us. And we have a great team, and we have great relationships and a strong mitral position. So not discounting the fact that we'll have competition.
We've had competition in Europe for a couple of years already. Germany is probably the second largestglobal market and our position there remains at an 80% market share. So I acknowledge that we will have competition, but we do -- we have established this mitral leadership position, and we intend to defend it because of all the investments that we've made to create this market. So that's what I would talk about MitraClip.
I still think the best is still to come because I don't think we've been able to tap into the opportunity of the FMR indication. Regarding Amulet, listen, I think the team has done a really good job, again, reiterating the same kind of comments, a little bit challenged in the beginning of the quarter. And that was predominantly driven by the fact that we wanted to start the initial cases with every case being proctored. So difficult to move proctors throughout the US and travel international, etc.
So that slowed us down a little bit in the beginning of the year. But I'll tell you, the team has done -- we spent a lot of time and attention and focus with them in February and March. And the team has definitely had a really strong exit to Q1, caught up in terms of all the contract closes that we had established as part of our plan in Q1. So I think the commercial execution is doing really well, and that's supported really by the performance of the product.
And once physicians have had an opportunity to get a couple of these implants done, it's a little bit of a different technique, but they feel comfortable with it and then they get the benefits of what the data shows is superior closure. And that's really because of our unique dual ceiling mechanism. So there was some data that came out -- late-breaking data that came out of the AACC, which talked about the importance of leaks and leaks matter, whether they're big leaks or whether they're small leaks, they do matter. And even the small leaks were associated with an increase in thromboembolic events.
So I think we're in a good position now with Amulet. I'm pleased with the commercial team and what they're doing in the clinical team, and we've got opportunities here to grow. I think momentum is building with Amulet.
Josh Jennings -- Cowen and Company -- Analyst
Thanks so much for all that color. Appreciate it.
Operator
Thank you. Our next question comes from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Good morning. Thanks for taking my question. So Robert, two high-level questions for me. One, I'll push my luck a little bit and see if we can get any preliminary thoughts on 2023.
You're getting a meaningful testing benefit this year, which may not materialize next year. So how do you feel about your ability to grow margins and earnings next year as testing demand drops? And I have one follow-up.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, we had a really strong quarter regarding testing, Larry. And I think to answer your question, I think you have to kind of look at what's going on a little bit right now in the US and internationally. In the US, we saw cases decline pretty significantly in February.
But I think we all agree that some of those cases that are being reported aren't covering all cases because of the use of the at-home testing systems, right, that are currently available. So I think that's part of the process that we're seeing as testing -- as we're moving more into this kind of endemic state. And as we move to this endemic state, listen, vaccines have been incredibly powerful to be able to prevent serious illness to be able to protect the hospitals and the hospital system, but it's really testing that really allows us to kind of move to this endemic state and kind of live our day-to-day and it's more about surveillance and screening and checking. So -- and I think our product has done really well here.
It's maintained a kind of preferred status here in the US, even with a pretty significant increase in product coming into the country, whether it's ease of use, its shelf life, the reliability it has, its studies, etc. So I think that that's an important aspect as we go into 2023 is do we have confidence that even in an endemic state does testing continue? And I would say, yes, it does continue. One portion that doesn't get a lot of attention is our international testing business. 50% of our sales in March of COVID tests came from the international markets.
And I'd say, similar sense there of governments investing in testing and coming to Abbott as one of the preferred suppliers. So I think that to answer your question, obviously, there's a certain amount that you can't overcome, right? But I do think that as we go into next year, we'll have a portion of our testing business that will look more like a flu kind of respiratory kind of endemic state. And I think that's going to be important as we continue to grow earnings. And then, on top of that, like I said, the focus of our medical device business, the investments we've made in our diagnostic systems and increasing the test menus over there.
So I expect our base business to continue to grow very strongly. Yes, it's a little bit early regarding 2023, but we are planning. We are looking. We are looking at where we're going to be able to kind of grow and I'd say there will be some COVID business next year.
I think we're in probably the strongest position to be able to kind of capitalize and lead in that market. And then, our base business is going to do very strongly next year with all the investments we've made and new product pipeline that we've got.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
That's super helpful. And Robert, you're in a unique position with your strong balance sheet. I saw you mentioned on the call, you bought back, I think, $2.5 billion in stock this quarter. What are your updated thoughts on M&A? And if you can't find attractive assets, are you going to continue to return cash to shareholders like we saw this past quarter? Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sure. On the M&A side, yeah. I mean, I'll sound like a broken record here, Larry. I mean, we're always looking.
We're always studying. We're always looking at ways to be able to add to the company and add to our business, but it needs to be strategic. And from that perspective, I don't want to dilute our growth rate. I don't want to dilute our profiles.
We need to make sure that we're looking at assets that will be additive to our growth into our profile. So at least the top line. So that's always there, and we're always looking. Regarding the approach, listen, it's always a balanced approach, Larry.
We're generating strong cash flow. We got a lot of financial flexibility here. We'll return $3 billion when you -- in terms of dividend this year, Bob talked about what we've done regarding buybacks. And we're always going to look at this kind of balanced approach.
We've made investments in our organic opportunities for growth because I believe that those are great returns for our shareholders, whether it's Libre, MitraClip, expansion of our medical devices, diagnostics, those are all opportunities that deliver great returns for our shareholders, and we'll take that balanced approach. And if there is an opportunity for more, we'll do more.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Thanks so much, Robert.
Operator
Thank you. Our next question comes from Joanne Wuensch from Citibank. Your line is open.
Joanne Wuensch -- Citi -- Analyst
Good morning and thank you very much for taking the question. I'd like to circle back a little bit to the nutritional business. A lot of the feedback that I get from investors is some level of concern regarding brand name, brand damage, if you will. And I'm curious your thoughts on what it would take to sort of revamp this business up? Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sorry, you're referring to nutrition business?
Joanne Wuensch -- Citi -- Analyst
Yes.
Robert Ford -- Chairman and Chief Executive Officer
OK. Listen, we've got a very robust manufacturing network and a robust quality system. Obviously, there's a shortage of product in the market. I highlighted some of the things that we're doing to be able to kind of resupply the market.
A key aspect of that is going to be the restart, and we're in that process. We've got a strong brand with Similac. We've maintained a lot of contracts. We've been able to supply those contracts even with a little bit of this shortage.
So I feel confident in our team's ability here to look at once we get restarted to be able to resupply the market and build back our share. We had just launched a new product last year -- end of last year with a blend of five HMOs and that's a significant advancement. And we were expecting that based on everything that we had studied and seen was going to be a big growth driver for us and kind of brand enhancers. So I think that's going to be important.
And yes, we'll have to make some investments as we go back to the market. But I'd say historically, when some of these issues have happened in the past, whether it's Abbott or other manufacturers, share does recover. The question is just kind of the timing and the curve of that recovery, but share do come to recover, and you can look at past situations with other competitors and even with us.
Joanne Wuensch -- Citi -- Analyst
Thank you. And as a follow-up, forgive me for asking it this way. What's next? I mean, I don't think we're going to be talking about COVID testing in a year. I hope we're not going to be talking about it.
But how do you see the sort of forward momentum of the company, big picture? Thanks.
Robert Ford -- Chairman and Chief Executive Officer
Yeah. Well, yeah, I don't think we're going to be talking about COVID testing the way we're talking about it today or how we talked about it in the past year. But like I told Larry, I mean, I do think that there's going to be an opportunity for COVID testing to play a role in this kind of endemic state. And as I've said in the past also, what COVID has allowed us to do is to further accelerate what we believe was a key trend in diagnostics and point-of-care diagnostics, which is the expansion and the decentralization of that testing outside of the lab into pharmacies, into people's homes and it being connected.
So I think that -- COVID has accelerated that, I guess, I would say. And we're obviously building menus where we'll be able to add to the ID NOW instrument, more panels, more different tests. Remember, when we started the pandemic, we had about 20,000 kind of instruments that's now fivefold in terms of the opportunity that we have to be able to expand menu into basically an asset that's been capitalized and deployed into the market. So that's what we've been working on from that perspective on the, I guess, I would say, on the rapid testing side on the decentralized testing side.
I'd say going back to the device portfolio, I mean there's still a lot of what next in our pipeline of products that we've just launched that are still in the early innings here. One of them that we got approved this quarter, which I'm really excited about, is Aveir and our leadless pacemaker. I think this is going to be a great opportunity to kind of reignite growth back in our CRM business. I mean, we've seen an improvement already with the existing portfolio and had a 4% growth this quarter.
But I think Aveir is a real kind of game changer for our CRM portfolio. Obviously, the single chamber is a smaller part of the market. We know that it's about 15%. But I think when you're coming second to the market, you get to observe what needs to -- what could be addressed that maybe the first generation didn't do.
And I think that our product whether it's retrievability, its ability to be retrieved, it's longer-lasting battery. Right now, it's about two times product that's on the market. But I think what's really exciting about this is its ability to upgrade to a dual chamber device. So it's upgradability is what we're hearing extremely big interest from the physician community.
So I think that's a great opportunity for us that I think is really going to start to show as we evolve our trial for dual chamber and begin to collect data there. I think that's going to be a great opportunity for our CRM portfolio. I look at CardioMEMS as another great opportunity that we have just really just started. The expanded indication is going to really open up the market.
I've seen some of the implant trends that we've seen post-expansion indication, and that gives me a lot of excitement about what this product can be. We talked about Amulet. I think that the TAVR piece is one that, as I've said in the past, we're investing. I think Navitor is an extremely competitive product, and we're seeing that in Europe as we've launched it and been six months in the market now.
So there's great opportunities over there. Libre 3 is an opportunity for us, not only in the US, but in Europe to continue to expand the market. I think Lingo, as I said in the last call, is another great opportunity that is really in the early stages. But look at using our bio-wearable sensors outside of diabetes and looking at opportunities there.
So I think we have a lot of what next that are truly early in their early stages. And then, on top of all the products that we've been talking about right now also. So I'm excited about the what next.
Joanne Wuensch -- Citi -- Analyst
Thank you.
Operator
Thank you. Our next question comes from Travis Steed from Bank of America. Your line is open.
Travis Steed -- Bank of America Merrill Lynch -- Analyst
Good morning. Thanks for taking the questions. Curious on the inflation supply chain, sounds like it's gotten about $200 million worse than the $500 million you had built into the P&L, just to confirm that. I'm curious what you're seeing the biggest pain points? Is it wages, raw materials, shipping costs and expectations on when that could start to ease to some degree? Or how you're thinking for a potential offset with price?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Yes. Travis, I'll take the question. This is Bob. So as we said back in January, we did incorporate a sizable impact into our 2022 guidance, which was about $500 million on the gross margin line.
And as Robert mentioned, we've now incorporated an additional $200 million in gross margin impact in our current guidance. The biggest impact we're seeing is really on logistics and commodities and some other manufacturing inputs. It's not so much on the labor front. Labor is a smaller portion of our total product cost.
So it's really on the commodities. In terms of when this will ease and change, I mean, that's a very -- I think there's a lot of things that affect that and where the -- where inflation may go. We do know that historically, on commodities, we do see cycles. We do see commodity costs go up, but they also come down.
And we would expect at some point, and it's very difficult to kind of call exactly when that will be, we will see some of the inflationary pressures subside.
Travis Steed -- Bank of America Merrill Lynch -- Analyst
And then given your presence in China, I would just kind of love to hear your thoughts on both China from a procedure standpoint and also a supply chain standpoint, just given how much of the business you have there? And any thoughts on the progress you're making with Libre 3 and the FDA would be great too. Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sure. I think regarding China, I saw a little bit of an inverse in terms of what we saw in all the other geographies where it started off pretty well in the quarter. And then, as the lockdown started to occur, specifically in Shanghai toward the end of February and into March, started to kind of see the impact of that in our procedures. We look at our testing platforms as kind of an early indicator and a proxy.
So we saw those go down also during the month of April -- during the month of March. And I'd say, over the last two weeks in April, started to see a recovery of those diagnostic testing. So I think what we saw was a lot of the testing that was being done in the major kind of cities was shifted over to kind of PCR testing, together with rapid testing and that obviously impacted some of the routine hospital testing. But we're starting to see that now probably two solid weeks of kind of positive trend back in the right direction.
Still not at the level we were before the lockdowns, but definitely starting to move in the right direction there. So I would expect just based on patterns that we've seen in the past that we're starting to kind of move to sequential week-over-week improvements in the procedures. And not all procedures are the same. Some of them return faster.
Some of them have a different kind of recovery curve. But I do expect kind of the impact that we saw in March and a little bit in the beginning of April and devices start to kind of improve. Sorry, you had a question on Libre 3?
Travis Steed -- Bank of America Merrill Lynch -- Analyst
Yeah, Libre 3. Any update on how the progress is working with the FDA or what the label might look like? Just any additional color would be great. Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Like I mentioned in the call, we filed as an ICGM. I don't have much to kind of update you there regarding that. I will say that we have moved Libre 3 in Europe into -- from kind of more of a limited rollout in Germany a while back to kind of more of an accelerated conversion from Libre 2 to Libre 3.
And I think the process started really well in Germany. We got initial feedback from physicians, very positive feedback from the reimbursement system also. And that gave us the confidence here to kind of really begin to accelerate this market transition in Libre 3. We did that in Libre 2 also when we moved from Libre 1 to Libre 2 in Germany.
That took us about a year. I think it's going to be faster than that with Libre 3. And we've got over 90% reimbursement coverage for Libre 3 in Germany. So that's now moved into high gear, not only in Germany, but for the rest of the year.
So I'm focused a lot on what we can do with Libre in the countries that we do have it approved. And right now, everything that we're seeing is that it is a very, very compelling product.
Travis Steed -- Bank of America Merrill Lynch -- Analyst
Great. Thanks a lot.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
OK. Operator, we'll take one more question.
Operator
Thank you. Our last question will come from Matt Miksic from Credit Suisse. Your line is open.
Matt Miksic -- Credit Suisse -- Analyst
Hey. Thanks so much. Just in the context of some of these new products, I did want to maybe follow up with just a level set expectation, for example, the Avidity rollout and menu expansion, very strong growth in the quarter. Robert, if you could maybe talk about what's the duration of this rollout? I know it started into the pandemic.
And what does that look like through this year and potentially through next year? And then I know you touched this a few times here about Amulet. Just love to get your updated thoughts on where you think share could go in the next year, 18 months? You've made some comments in Q4. I know the pace is picking up here in the US? Any numbers you could put around your thoughts there would be super helpful.
Robert Ford -- Chairman and Chief Executive Officer
Sure. I mean, Alinity is a multiyear strategy and rollout here, Matt. We're doing it not only with immunoassay, we're doing with clinical chemistry, we're doing with hematology. We're doing it with transfusion.
This has never been done at this kind of scale to be able to really recycle all of our systems. So I think that if you look at the way the market is set up, the contracts are lasting between seven to 10 years. So on any given year, you've got 15% of the market that's coming up for an RFP. So regarding its legs like you're asking, I mean, I still think that we've got multiple, multiple years here.
The COVID pandemic definitely slowed that down in terms of the renewal cycles, a lot of hospitals focusing on just dealing with the COVID. But I guess what I would say is there's plenty more to come. The key here is the balance between -- in that 15% that comes up for RFP, what's renewable to an existing customer and what's kind of share gain. And I think the team has done a really good job at being able to look at having a real strong balance about not just defending the base, and we've done that pretty well.
So I'd say, nine out of 10 accounts, we've been able to maintain. And then, if you look at the business that's coming up for grabs, I'd say our win rate here is over 50%. So when you think about that math, retaining 90% and winning 50% of the new businesses, that's what ultimately drives our top line growth. And then, once you put those instruments in, then the key aspect here is to be able to expand the menu use of those instruments while they're in an account, right? You've got the capital deployed; you've got the service cost that's kind of been deployed there.
So everything we can do to be able to add new menus, new tests, etc., is accretive from both the top and the bottom line. So that's a big focus of the team on the R&D side is to be able to expand the menus concurrent to what I would say is kind of placement strategy that we have with the new systems. So Amulet -- on your question on Amulet, listen, I think we continue to capture share. We estimate that we're in double-digit share position here in the US Longer term, I would say, our aspiration is to build a significant share position.
The European market is much smaller than the US market. In that market, we have a 50 share. So I think the key thing here is for us is to -- every time you're a new player coming into the market, you have different technology. We believe ours is superior, but it's different in terms of how it gets used, how it gets implanted.
So you need to make sure that the physicians as you roll it out learn how to use our product, our implant, our system. And from there, you build off there. So I think we'll be looking at not only expansion into new accounts, but also utilization in existing accounts. And that's the piece that I'm actually getting very excited about it.
As we've looked at the accounts that we started back in September and October, we're starting to see nice share movement over there. So that's very exciting for us. So let me just close here. I think we've had a very strong start to the year, like I said in my prepared comments.
We've reaffirmed our guidance that we set back in January, absorbing, I would say, impact of the nutrition recall, which we're working hard on to restart. Other parts and attrition are doing very well, and I expect them to continue to do very well. We're absorbing, as Bob said, challenges with inflation in the supply chain that many companies I know are facing, and we're absorbing some headwinds on FX side. That being said, there's a lot of great things that are going on at Abbott in the company, a lot of positives.
I talked about them in the beginning of the call. And I expect all of that positive to continue and to that momentum to continue to build on that business. Like I said, excluding COVID, excluding some of the recall products, our base business grew 11% in the quarter and the team is focused on building off that and building off that momentum. So, thanks.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Very good. Thank you, operator. And thank you for all of your questions. This now concludes Abbott's conference call.
A webcast replay of this call will be available after 11:00 a.m. Central Time today on Abbott's investor relations website at abbottinvestor.com. Thank you for joining us today.
Operator
[Operator signoff]
Duration: 62 minutes
Call participants:
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Robert Ford -- Chairman and Chief Executive Officer
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Robbie Marcus -- J.P. Morgan -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Josh Jennings -- Cowen and Company -- Analyst
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Joanne Wuensch -- Citi -- Analyst
Travis Steed -- Bank of America Merrill Lynch -- Analyst
Matt Miksic -- Credit Suisse -- Analyst
More ABT analysis
All earnings call transcripts
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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) Q1 2022 Earnings Call Apr 20, 2022, 9:00 a.m. Operator [Operator signoff] Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst Matt Miksic -- Credit Suisse -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Importantly, the FDA and CDC found that there is no genetic match between the strains of the bacteria identified in non-product contact areas of our facility and available samples obtained from customer complaints, suggesting a different source of contamination. | Operator [Operator signoff] Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst Matt Miksic -- Credit Suisse -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2022 Earnings Call Apr 20, 2022, 9:00 a.m. With me today are Robert Ford, chairman and chief executive officer; and Bob Funck, executive vice president, finance and chief financial officer. | Operator [Operator signoff] Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst Matt Miksic -- Credit Suisse -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2022 Earnings Call Apr 20, 2022, 9:00 a.m. In addition to these strong results during the quarter, we continue to strengthen our strategic position and long-term growth opportunities with regulatory approvals of new products and expanded indications of use along with continued market uptake of several recently launched products in attractive growth areas. | Operator [Operator signoff] Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Joanne Wuensch -- Citi -- Analyst Travis Steed -- Bank of America Merrill Lynch -- Analyst Matt Miksic -- Credit Suisse -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2022 Earnings Call Apr 20, 2022, 9:00 a.m. Maybe to start for Robert or Bob, you guys put up a good first quarter being on COVID testing sales had double-digit growth in most of the businesses. |
31706.0 | 2022-04-20 00:00:00 UTC | Abbott's (ABT) Q1 Earnings and Revenues Exceed Estimates | ABT | https://www.nasdaq.com/articles/abbotts-abt-q1-earnings-and-revenues-exceed-estimates | nan | nan | Abbott Laboratories ABT 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.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
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 EPS 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.
Our Take
Abbott posted better-than-expected earnings and revenue numbers for the first quarter of 2022. Overall, the year-over-year improvement in revenues looks encouraging. 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 $3.3 billion in the quarter, led by the sales of rapid testing products.
Within the Diabetes Care business, 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. However, Pediatric Nutrition sales were negatively impacted by a voluntary recall of certain powder formulas manufactured at one of Abbott's U.S. plants.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Here are some medical stocks worth considering as these have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 to post an earnings beat this quarter.
Lucira Health LHDX has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x is significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. NSTG has an Earnings ESP of +15.62% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected to be 41.83%.
Meridian Bioscience VIVO has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. | Abbott Laboratories ABT reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote 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. | Abbott Laboratories ABT reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote 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. | Abbott Laboratories ABT reported first-quarter 2022 adjusted earnings of $1.73 per share, which exceeded the Zacks Consensus Estimate by 17.7%. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote 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. |
31707.0 | 2022-04-20 00:00:00 UTC | Health Care Sector Update for 04/20/2022: ALVR, ANTM, ABT, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-04-20-2022%3A-alvr-antm-abt-xlv-ibb | nan | nan | Health care stocks were mixed premarket Wednesday. The Health Care SPDR (XLV) was 0.27% higher and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive.
AlloVir (ALVR) was gaining over 23% in value after saying the US Food and Drug Administration has given regenerative medicine advanced therapy, or RMAT, designation to its T-cell therapy, dubbed posoleucel.
Anthem (ANTM) was climbing past 2% after it reported Q1 adjusted earnings of $8.25 per diluted share, up from $7.01 a year earlier. Analysts polled by Capital IQ expected EPS of $7.83.
Abbott Laboratories (ABT) reported Q1 adjusted earnings of $1.73 per diluted share, up from $1.32 a year earlier. Analysts polled by Capital IQ expected EPS of $1.46. Abbott Laboratories was recently down more than 2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) reported Q1 adjusted earnings of $1.73 per diluted share, up from $1.32 a year earlier. The Health Care SPDR (XLV) was 0.27% higher and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. Anthem (ANTM) was climbing past 2% after it reported Q1 adjusted earnings of $8.25 per diluted share, up from $7.01 a year earlier. | Abbott Laboratories (ABT) reported Q1 adjusted earnings of $1.73 per diluted share, up from $1.32 a year earlier. Analysts polled by Capital IQ expected EPS of $7.83. Analysts polled by Capital IQ expected EPS of $1.46. | Abbott Laboratories (ABT) reported Q1 adjusted earnings of $1.73 per diluted share, up from $1.32 a year earlier. The Health Care SPDR (XLV) was 0.27% higher and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. Anthem (ANTM) was climbing past 2% after it reported Q1 adjusted earnings of $8.25 per diluted share, up from $7.01 a year earlier. | Abbott Laboratories (ABT) reported Q1 adjusted earnings of $1.73 per diluted share, up from $1.32 a year earlier. The Health Care SPDR (XLV) was 0.27% higher and the iShares NASDAQ Biotechnology Index (IBB) was recently inactive. AlloVir (ALVR) was gaining over 23% in value after saying the US Food and Drug Administration has given regenerative medicine advanced therapy, or RMAT, designation to its T-cell therapy, dubbed posoleucel. |
31708.0 | 2022-04-20 00:00:00 UTC | Abbott (ABT) Surpasses Q1 Earnings and Revenue Estimates | ABT | https://www.nasdaq.com/articles/abbott-abt-surpasses-q1-earnings-and-revenue-estimates | nan | nan | Abbott (ABT) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 17.69%. A quarter ago, it was expected that this maker of infant formula, medical devices and drugs would post earnings of $1.18 per share when it actually produced earnings of $1.32, delivering a surprise of 11.86%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.17%. This compares to year-ago revenues of $10.46 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Abbott shares have lost about 14.8% since the beginning of the year versus the S&P 500's decline of -6.4%.
What's Next for Abbott?
While Abbott has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Abbott: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.09 on $9.88 billion in revenues for the coming quarter and $4.81 on $40.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
BellRing Brands (BRBR), another stock in the same industry, has yet to report results for the quarter ended March 2022. The results are expected to be released on May 5.
This nutritional supplements company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BellRing Brands' revenues are expected to be $309.59 million, up 9.7% from the year-ago 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.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.47 per share. Abbott Laboratories (ABT): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. | Abbott (ABT) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.47 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.17%. | Abbott (ABT) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.47 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.17%. | Abbott (ABT) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.47 per share. Abbott Laboratories (ABT): Free Stock Analysis Report The company has topped consensus revenue estimates four times over the last four quarters. |
31709.0 | 2022-04-20 00:00:00 UTC | Abbott: FY22 Adj. EPS Guidance Remains Unchanged | ABT | https://www.nasdaq.com/articles/abbott%3A-fy22-adj.-eps-guidance-remains-unchanged | nan | nan | (RTTNews) - While reporting first-quarter results on Wednesday, Abbott (ABT) said it continues to expect fiscal 2022 adjusted earnings per share of at least $4.70. The company noted that its 2022 guidance includes projected COVID-19 testing-related sales of approximately $4.5 billion, which Abbott expects to largely occur in the first half of the year and will update on a quarterly basis. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.83. Analysts' estimates typically exclude special items.
The company reported an adjusted earnings per share growth of 31.1 percent for its first quarter. Organic sales growth was 17.5 percent from prior year. Excluding COVID-19 testing-related sales, first-quarter organic sales growth was 7.7 percent.
First quarter earnings came in at $2.45 billion, or $1.37 per share compared with $1.79 billion, or $1.00 per share, a year ago. Excluding items, Abbott reported adjusted earnings of $3.08 billion or $1.73 per share for the period. Analysts on average had expected the company to earn $1.46 per share, according to figures compiled by Thomson Reuters.
The company's revenue for the quarter rose 13.8% to $11.90 billion from $10.46 billion last year. Analysts on average had estimated $10.99 billion in revenue.
On Feb. 18, 2022, the board of Abbott declared quarterly dividend of $0.47 per share. The cash dividend is payable May 16, 2022 to shareholders of record at the close of business on April 15, 2022.
Shares of Abbott were down 3% in pre-market trade on Wednesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting first-quarter results on Wednesday, Abbott (ABT) said it continues to expect fiscal 2022 adjusted earnings per share of at least $4.70. The company noted that its 2022 guidance includes projected COVID-19 testing-related sales of approximately $4.5 billion, which Abbott expects to largely occur in the first half of the year and will update on a quarterly basis. Analysts on average had expected the company to earn $1.46 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - While reporting first-quarter results on Wednesday, Abbott (ABT) said it continues to expect fiscal 2022 adjusted earnings per share of at least $4.70. The company reported an adjusted earnings per share growth of 31.1 percent for its first quarter. Excluding COVID-19 testing-related sales, first-quarter organic sales growth was 7.7 percent. | (RTTNews) - While reporting first-quarter results on Wednesday, Abbott (ABT) said it continues to expect fiscal 2022 adjusted earnings per share of at least $4.70. The company noted that its 2022 guidance includes projected COVID-19 testing-related sales of approximately $4.5 billion, which Abbott expects to largely occur in the first half of the year and will update on a quarterly basis. First quarter earnings came in at $2.45 billion, or $1.37 per share compared with $1.79 billion, or $1.00 per share, a year ago. | (RTTNews) - While reporting first-quarter results on Wednesday, Abbott (ABT) said it continues to expect fiscal 2022 adjusted earnings per share of at least $4.70. The company reported an adjusted earnings per share growth of 31.1 percent for its first quarter. Excluding items, Abbott reported adjusted earnings of $3.08 billion or $1.73 per share for the period. |
31710.0 | 2022-04-20 00:00:00 UTC | Abbott reports 36% rise in quarterly profit on Omicron-driven testing demand | ABT | https://www.nasdaq.com/articles/abbott-reports-36-rise-in-quarterly-profit-on-omicron-driven-testing-demand | nan | nan | April 20 (Reuters) - Abbott Laboratories ABT.N reported a 36% rise in quarterly profit on Wednesday, boosted by an Omicron-led demand for its COVID-19 test kits and a recovery in elective procedures, which boosted demand for its medical devices. The company's net earnings rose to $2.45 billion, or $1.37 per share, in the first quarter ended March 31, from $1.8 billion, or $1 per share, a year earlier.
(Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru; Editing by Amy Caren Daniel)
((mrinalika.roy@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | April 20 (Reuters) - Abbott Laboratories ABT.N reported a 36% rise in quarterly profit on Wednesday, boosted by an Omicron-led demand for its COVID-19 test kits and a recovery in elective procedures, which boosted demand for its medical devices. The company's net earnings rose to $2.45 billion, or $1.37 per share, in the first quarter ended March 31, from $1.8 billion, or $1 per share, a year earlier. (Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | April 20 (Reuters) - Abbott Laboratories ABT.N reported a 36% rise in quarterly profit on Wednesday, boosted by an Omicron-led demand for its COVID-19 test kits and a recovery in elective procedures, which boosted demand for its medical devices. The company's net earnings rose to $2.45 billion, or $1.37 per share, in the first quarter ended March 31, from $1.8 billion, or $1 per share, a year earlier. (Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | April 20 (Reuters) - Abbott Laboratories ABT.N reported a 36% rise in quarterly profit on Wednesday, boosted by an Omicron-led demand for its COVID-19 test kits and a recovery in elective procedures, which boosted demand for its medical devices. The company's net earnings rose to $2.45 billion, or $1.37 per share, in the first quarter ended March 31, from $1.8 billion, or $1 per share, a year earlier. (Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | April 20 (Reuters) - Abbott Laboratories ABT.N reported a 36% rise in quarterly profit on Wednesday, boosted by an Omicron-led demand for its COVID-19 test kits and a recovery in elective procedures, which boosted demand for its medical devices. The company's net earnings rose to $2.45 billion, or $1.37 per share, in the first quarter ended March 31, from $1.8 billion, or $1 per share, a year earlier. (Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru; Editing by Amy Caren Daniel) ((mrinalika.roy@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31711.0 | 2022-04-20 00:00:00 UTC | Abbott Laboratories Q1 Profit Increases, beats estimates | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q1-profit-increases-beats-estimates | nan | nan | (RTTNews) - Abbott Laboratories (ABT) revealed earnings for its first quarter that increased from last year and beat the Street estimates.
The company's earnings came in at $2.45 billion, or $1.37 per share. This compares with $1.79 billion, or $1.00 per share, in last year's first quarter.
Excluding items, Abbott Laboratories reported adjusted earnings of $3.08 billion or $1.73 per share for the period.
Analysts on average had expected the company to earn $1.46 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 13.8% to $11.90 billion from $10.46 billion last year.
Abbott Laboratories earnings at a glance (GAAP) :
-Earnings (Q1): $2.45 Bln. vs. $1.79 Bln. last year. -EPS (Q1): $1.37 vs. $1.00 last year. -Analyst Estimate: $1.46 -Revenue (Q1): $11.90 Bln vs. $10.46 Bln last year.
-Guidance: Full year EPS guidance: Adj; $4.70
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) revealed earnings for its first quarter that increased from last year and beat the Street estimates. Excluding items, Abbott Laboratories reported adjusted earnings of $3.08 billion or $1.73 per share for the period. Analysts on average had expected the company to earn $1.46 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - Abbott Laboratories (ABT) revealed earnings for its first quarter that increased from last year and beat the Street estimates. Excluding items, Abbott Laboratories reported adjusted earnings of $3.08 billion or $1.73 per share for the period. Abbott Laboratories earnings at a glance (GAAP) : -Earnings (Q1): $2.45 Bln. | (RTTNews) - Abbott Laboratories (ABT) revealed earnings for its first quarter that increased from last year and beat the Street estimates. The company's revenue for the quarter rose 13.8% to $11.90 billion from $10.46 billion last year. -Analyst Estimate: $1.46 -Revenue (Q1): $11.90 Bln vs. $10.46 Bln last year. | (RTTNews) - Abbott Laboratories (ABT) revealed earnings for its first quarter that increased from last year and beat the Street estimates. This compares with $1.79 billion, or $1.00 per share, in last year's first quarter. Excluding items, Abbott Laboratories reported adjusted earnings of $3.08 billion or $1.73 per share for the period. |
31712.0 | 2022-04-20 00:00:00 UTC | Abbott Laboratories Q1 22 Earnings Conference Call At 9:00 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q1-22-earnings-conference-call-at-9%3A00-am-et | nan | nan | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on April 20, 2022, to discuss Q1 22 earnings results.
To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on April 20, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on April 20, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on April 20, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on April 20, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://www.abbottinvestor.com/news-and-events?c=94004&p=irol-calall The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31713.0 | 2022-04-19 00:00:00 UTC | Pre-Market Earnings Report for April 20, 2022 : PG, ASML, ABT, ANTM, BKR, NDAQ, RCI, MTB, CMA, MKTX, LAD, GATX | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-april-20-2022-%3A-pg-asml-abt-antm-bkr-ndaq-rci-mtb-cma-mktx | nan | nan | The following companies are expected to report earnings prior to market open on 04/20/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company (PG)is reporting for the quarter ending March 31, 2022. The cleaning company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.29. This value represents a 2.38% increase compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.61%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PG is 26.76 vs. an industry ratio of 24.00, implying that they will have a higher earnings growth than their competitors in the same industry.
ASML Holding N.V. (ASML)is reporting for the quarter ending March 31, 2022. The capital goods company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.88. This value represents a 51.30% decrease compared to the same quarter last year. In the past year ASML has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 16.24%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ASML is 32.02 vs. an industry ratio of 19.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Abbott Laboratories (ABT)is reporting for the quarter ending March 31, 2022. The medical products company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.47. This value represents a 11.36% increase compared to the same quarter last year. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 24.33 vs. an industry ratio of -19.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Anthem, Inc. (ANTM)is reporting for the quarter ending March 31, 2022. The hmo company's consensus earnings per share forecast from the 19 analysts that follow the stock is $7.81. This value represents a 11.41% increase compared to the same quarter last year. In the past year ANTM has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 0.59%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ANTM is 18.00 vs. an industry ratio of 26.00.
Baker Hughes Company (BKR)is reporting for the quarter ending March 31, 2022. The oil (field services) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.19. This value represents a 58.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BKR is 29.47 vs. an industry ratio of -3.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Nasdaq, Inc. (NDAQ)is reporting for the quarter ending March 31, 2022. The securities exchange company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.93. This value represents a 1.53% decrease compared to the same quarter last year. In the past year NDAQ has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 8.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NDAQ is 22.52 vs. an industry ratio of 25.90.
Rogers Communication, Inc. (RCI)is reporting for the quarter ending March 31, 2022. The cable tv company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.63. This value represents a 3.28% increase compared to the same quarter last year. RCI missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -1.59%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for RCI is 18.80 vs. an industry ratio of 30.60.
M&T Bank Corporation (MTB)is reporting for the quarter ending March 31, 2022. The bank company's consensus earnings per share forecast from the 16 analysts that follow the stock is $2.26. This value represents a 33.72% decrease compared to the same quarter last year. MTB missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -6.76%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MTB is 13.13 vs. an industry ratio of 11.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Comerica Incorporated (CMA)is reporting for the quarter ending March 31, 2022. The bank company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.38. This value represents a 43.21% decrease compared to the same quarter last year. In the past year CMA has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 3.11%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CMA is 12.83 vs. an industry ratio of 11.30, implying that they will have a higher earnings growth than their competitors in the same industry.
MarketAxess Holdings, Inc. (MKTX)is reporting for the quarter ending March 31, 2022. The securities exchange company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.70. This value represents a 19.43% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MKTX is 35.71 vs. an industry ratio of 25.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Lithia Motors, Inc. (LAD)is reporting for the quarter ending March 31, 2022. The retail company's consensus earnings per share forecast from the 4 analysts that follow the stock is $9.63. This value represents a 63.50% increase compared to the same quarter last year. In the past year LAD has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 14.01%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LAD is 7.28 vs. an industry ratio of -6.10, implying that they will have a higher earnings growth than their competitors in the same industry.
GATX Corporation (GATX)is reporting for the quarter ending March 31, 2022. The transportation company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.37. This value represents a 34.31% increase compared to the same quarter last year. In the past year GATX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 47.66%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for GATX is 20.70 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT)is reporting for the quarter ending March 31, 2022. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 24.33 vs. an industry ratio of -19.40, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 24.33 vs. an industry ratio of -19.40, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT)is reporting for the quarter ending March 31, 2022. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. | Abbott Laboratories (ABT)is reporting for the quarter ending March 31, 2022. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 24.33 vs. an industry ratio of -19.40, implying that they will have a higher earnings growth than their competitors in the same industry. | Abbott Laboratories (ABT)is reporting for the quarter ending March 31, 2022. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ABT is 24.33 vs. an industry ratio of -19.40, implying that they will have a higher earnings growth than their competitors in the same industry. |
31714.0 | 2022-04-19 00:00:00 UTC | Why Abbott (ABT) Could Beat Earnings Estimates Again | ABT | https://www.nasdaq.com/articles/why-abbott-abt-could-beat-earnings-estimates-again-0 | nan | nan | Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Abbott (ABT), which belongs to the Zacks Medical - Products industry, could be a great candidate to consider.
This maker of infant formula, medical devices and drugs has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 32.02%.
For the last reported quarter, Abbott came out with earnings of $1.32 per share versus the Zacks Consensus Estimate of $1.18 per share, representing a surprise of 11.86%. For the previous quarter, the company was expected to post earnings of $0.92 per share and it actually produced earnings of $1.40 per share, delivering a surprise of 52.17%.
Price and EPS Surprise
For Abbott, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Abbott has an Earnings ESP of +0.08% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on April 20, 2022.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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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), which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. Abbott Laboratories (ABT): Free Stock Analysis Report This maker of infant formula, medical devices and drugs has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. | Abbott (ABT), which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. Abbott Laboratories (ABT): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. | Abbott (ABT), which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. Abbott Laboratories (ABT): Free Stock Analysis Report For the last reported quarter, Abbott came out with earnings of $1.32 per share versus the Zacks Consensus Estimate of $1.18 per share, representing a surprise of 11.86%. | Abbott (ABT), which belongs to the Zacks Medical - Products industry, could be a great candidate to consider. Abbott Laboratories (ABT): Free Stock Analysis Report Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? |
31715.0 | 2022-04-19 00:00:00 UTC | 3 Things About Abbott Laboratories That Smart Investors Know | ABT | https://www.nasdaq.com/articles/3-things-about-abbott-laboratories-that-smart-investors-know-0 | nan | nan | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. The fascinating part of her story was that she bought three $60 shares of the company's stock in 1935 (costing a bit over $1,200 in today's dollars) and held them until her death. After many decades of stock splits, dividends, and growth, her estate was worth more than $7 million at her passing.
Now, Abbott Labs is a much different company today than it was in 1935 or even 2010 -- but it still has a lot going for it. Here are three things smart investors know about Abbott.
1. Abbott is dividend royalty
Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. Today, the company focuses on nutrition, diagnostics, and medical devices with major shake-ups over the years, including more than $30 billion in acquisitions this past decade for St. Jude (medical devices) and Alere (diagnostics).
Image source: Getty Images.
At the same time, management has continually given cash to shareholders, regardless of assets that come and go. Abbott Labs has paid and raised its dividend for the past 50 consecutive years, making it a Dividend King, an elusive club of just 39 companies from the S&P 500.
Currently, the dividend yield is a solid 1.6%, and management has raised it an average of 10% annually over the past five years. That's a good pace but one I hesitate to call spectacular. And there are larger yields out there. However, consistency wins the war; getting steady increases for decades played a significant role in Grace Groner's success at amassing her fortune.
Perhaps most incredible is that Abbott Labs only spends about 37% of its cash flow each year on the dividend, leaving plenty of room for many future increases for long-term investors.
2. Diabetes care is an ample opportunity for growth
Abbott is innovating in large niches within healthcare to find growth. Its glucose monitoring system, FreeStyle Libre, lets diabetes patients monitor their blood sugar by wearing a small patch that transmits data to a smartphone app. The patch lasts for 10 days, which seems much more convenient than pricking your finger for every test.
The product is rapidly growing, and it's become a significant contributor to the company's total revenue growth. Sales for "diabetes care" in Abbott's Medical Devices segment (FreeStyle Libre) grew 28% year over year in 2020, and that accelerated to 32% year-over-year growth in 2021, hitting $4.3 billion.
Momentum is increasing for the product, and the U.S. market alone for diabetes care devices could grow to $49 billion by 2030, averaging 6% growth per year. The company's ability to innovate and pivot to provide great products in high-growth niches within healthcare help explain the company's long-term success.
3. An acquisition could be on the way
I've mentioned the blockbuster deals to acquire St. Jude and Alere for about $30 billion; these are reminders that Abbott's management is not afraid to make a deal. The company's track record of integrating these new assets into its broader business is a good sign that future deals are likely.
Of course, you need deep pockets to cut a big deal, and Abbott's balance sheet looks better than it has in years. The deals for St. Jude and Alere put debt on the books. You can see in this chart how Abbott Labs had about $28 billion in total debt four years ago, four times its EBITDA (earnings before interest, taxes, depreciation, and amortization).
ABT Total Long Term Debt (Quarterly) data by YCharts
But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Meanwhile, Abbott's cash and short-term investments have swollen to more than $10 billion. With less debt and more cash on hand, that money has to go somewhere. Among other options, the company could repurchase shares. I won't speculate further, but it wouldn't surprise me to see Abbott jump on another big acquisition if the right deal comes along.
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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. | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. ABT Total Long Term Debt (Quarterly) data by YCharts But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Perhaps most incredible is that Abbott Labs only spends about 37% of its cash flow each year on the dividend, leaving plenty of room for many future increases for long-term investors. | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. ABT Total Long Term Debt (Quarterly) data by YCharts But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Today, the company focuses on nutrition, diagnostics, and medical devices with major shake-ups over the years, including more than $30 billion in acquisitions this past decade for St. Jude (medical devices) and Alere (diagnostics). | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. ABT Total Long Term Debt (Quarterly) data by YCharts But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Abbott is dividend royalty Abbott's identity as a company has evolved over the years; it had an enormous pharmaceutical business until it spun off most of it as AbbVie in 2013. | Grace Groner spent 43 years as a secretary at healthcare conglomerate Abbott Laboratories (NYSE: ABT) before retiring and later passing away in 2010 at the age of 100. ABT Total Long Term Debt (Quarterly) data by YCharts But today, total debt has fallen to $18 billion, and its debt-to-EBITDA ratio has fallen by more than half to 1.6. Now, Abbott Labs is a much different company today than it was in 1935 or even 2010 -- but it still has a lot going for it. |
31716.0 | 2022-04-18 00:00:00 UTC | What's in Store for Abbott Laboratories (ABT) in Q1 Earnings? | ABT | https://www.nasdaq.com/articles/whats-in-store-for-abbott-laboratories-abt-in-q1-earnings | nan | nan | Abbott Laboratories ABT is slated to report first-quarter 2022 results on Apr 20, before market open.
In the last-reported quarter, the company delivered an earnings surprise of 11.86%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and missed on one, the average beat being 19.78%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Going by the pandemic scenario, the demand for testing is expected to have remained strong in Q1 2022. In the fourth quarter of 2021, COVID testing sales were $2.3 billion with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally compromising approximately 90% of the sales.
In the months of the first quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries with the emergence of the new COVID variants are expected to have accelerated COVID-19 testing globally, giving a boost to Abbott’s Diagnostics business revenues.
Excluding COVID testing sales, worldwide Diagnostic sales are expected to have demonstrated strong growth in Q1 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments.
Abbott Laboratories Price and Consensus
Abbott Laboratories price-consensus-chart | Abbott Laboratories Quote
Within Nutrition, from the beginning of the pandemic till the last reported quarter, Abbott gained consistently in terms of adult nutrition products sales. In the first quarter too, the company is anticipated to have registered stellar U.S. and international growth in Ensure (adult complete and balanced nutrition brand) and Glucerna (diabetes nutrition brand). According to the company, the two factors that have been driving the adult nutrition growth rate are new users entering the category in this period and existing customers increasing their usage.
Within pediatric nutrition, the company is expected to have registered strong growth in the United States from growing sales of Pedialyte, the company’s oral rehydration brand, and market share gains for Similac, its market-leading infant formula brand.
Abbott’s other consumer-facing businesses, which include diabetes care and established pharmaceuticals, have been catching up, backed by new product instructions. This uptrend is likely to have majorly contributed to the company's first-quarter performance.
Within Established Pharmaceuticals Division (EPD), the company has been witnessing visible signs of a rebound, reflecting sequential improvement based on its stable business model. New product launches across key emerging markets have been majorly boosting the EPD business in recent months. The first-quarter performance is likely to have been driven by growth in regions where COVID-19 cases have been shooting up. The business is anticipated to have grown in these regions where patients are seeking branded generic medicines
Revenues are likely to have improved in the company’s Diabetes Care business, as it has been on a substantially strong growth trajectory in recent times. Abbott has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, widely known as the FreeStyle Libre System.
Estimates
For first-quarter 2022, the Zacks Consensus Estimate for total revenues of $11.11 billion indicates a 6.2% rise from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at $1.47, suggesting an 11.4% rise year on year.
Earnings Whispers
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Lucira Health LHDX has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x trades significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. NSTG has an Earnings ESP of +15.62% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected at 41.83%.
Meridian Bioscience VIVO has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
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. | Abbott Laboratories ABT is slated to report first-quarter 2022 results on Apr 20, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report In the months of the first quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries with the emergence of the new COVID variants are expected to have accelerated COVID-19 testing globally, giving a boost to Abbott’s Diagnostics business revenues. | Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories ABT is slated to report first-quarter 2022 results on Apr 20, before market open. Meridian Bioscience Inc. (VIVO): Free Stock Analysis Report | Abbott Laboratories ABT is slated to report first-quarter 2022 results on Apr 20, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price and Consensus Abbott Laboratories price-consensus-chart | Abbott Laboratories Quote Within Nutrition, from the beginning of the pandemic till the last reported quarter, Abbott gained consistently in terms of adult nutrition products sales. | Abbott Laboratories ABT is slated to report first-quarter 2022 results on Apr 20, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report NSTG’s revenue growth rate for 2023 is expected at 41.83%. |
31717.0 | 2022-04-15 00:00:00 UTC | 3 Top Dividend Kings to Buy for the Long Haul | ABT | https://www.nasdaq.com/articles/3-top-dividend-kings-to-buy-for-the-long-haul-0 | nan | nan | When it comes to finding stocks that pay a dividend, it's important for investors to focus on companies with strong business fundamentals. This helps ensure the dividend will be around for years to come. A good place to look for dividend stocks is the list of Dividend Kings. This title is bestowed upon any company that has increased its dividend for at least 50 consecutive years.
As of early 2022, only 39 stocks qualified as Dividend Kings. Among those, there are three companies I think are great investments for the long haul. Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. However, their long-standing dividends are not the only reasons to add these stocks to your portfolio.
Image source: Getty Images.
1. Johnson & Johnson
Johnson & Johnson (J&J) is one of the oldest companies in the healthcare space, incorporated in 1887. While the company currently operates in three segments, it plans to spin off its consumer health business into its own publicly traded company, leaving the pharmaceutical and medical device segments with the original company. These remaining segments accounted for approximately 84% of total revenue in 2021, so the bulk of J&J's sales remain with the company.
In 2021, J&J grew its revenue by 14% and net income by 42% compared to 2020. The bulk of the revenue came from the pharmaceutical division, which has several drugs on the market that treat a variety of diseases. However, the medical devices segment had the highest year-over-year sales growth due to the uptick in medical procedures after elective surgeries were largely put on hold during the height of the pandemic.
Management sees continued growth for the pharmaceutical business over the next few years, targeting $60 billion in sales by 2025, which would be a 15% increase over 2021 revenue.
The company generated $20 billion in free cash flow in 2021, easily providing enough cash to cover its dividend and raise it again to remain a Dividend King. J&J is one of those stable, foundational stocks that can anchor any portfolio while its dividend yields a healthy 2.4%.
2. Abbott Labs
Not quite as old as Johnson & Johnson, Abbott Labs was incorporated in 1900. It develops, manufactures, and sells a broad range of pharmaceuticals, diagnostic products, nutritional products, and medical devices. Abbott was in the spotlight recently because it is a provider of rapid COVID-19 tests, but the company also produces many well-known consumer products such as Similac baby formula and Ensure protein drinks.
2021 saw strong results for Abbott, with revenue increasing 25% compared to 2020. This growth was driven significantly by the diagnostics segment, which grew 45% year over year and includes the COVID-testing revenue. While the company expects this COVID-related revenue to remain strong in the near future, it's important to note that excluding COVID-related sales, the diagnostics segment still grew revenue by 13% in 2021.
With a dividend yield of 1.5%, Abbott slightly outpaces the S&P 500's 1.4% yield. Perhaps more importantly for potential investors, Abbott currently trades at five times sales, near its mid-2020 multiple. This provides an attractive entry point for potential investors.
3. AbbVie
AbbVie gets to claim its Dividend King status because of its history as part of Abbott Labs. That said, the company has continued to raise its dividend annually since it was spun off from Abbott in 2013. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff.
In 2021, AbbVie increased revenue by 23% and adjusted earnings per share (EPS) by 20%. This was driven by AbbVie's blockbuster drug Humira which brought in over $20 billion in sales in 2021. Unfortunately, AbbVie will face competition for Humira as it loses its patent exclusivity in 2023. Luckily, the recent acquisition of Allergan brings Botox into the fold. Botox cosmetic revenue grew 98% in 2021, and Botox therapeutic revenue increased 75%.
AbbVie's price-to-sales ratio is 5, similar to the multiple for Johnson & Johnson and Abbott Labs. However, unlike those two, it's been trending upward and is now the highest it's been since mid-2018. On the other hand, over the past three years, AbbVie has been growing revenue at the fastest pace of the three, making the current valuation seem more like a steal than a concern.
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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. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. Abbott was in the spotlight recently because it is a provider of rapid COVID-19 tests, but the company also produces many well-known consumer products such as Similac baby formula and Ensure protein drinks. Focusing on immunology, hematologic oncology, neuroscience, aesthetics, and eye care, AbbVie has had a successful run as a public company, outpacing Abbott by approximately 67% since the spinoff. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. When it comes to finding stocks that pay a dividend, it's important for investors to focus on companies with strong business fundamentals. While the company currently operates in three segments, it plans to spin off its consumer health business into its own publicly traded company, leaving the pharmaceutical and medical device segments with the original company. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. Johnson & Johnson Johnson & Johnson (J&J) is one of the oldest companies in the healthcare space, incorporated in 1887. Abbott Labs Not quite as old as Johnson & Johnson, Abbott Labs was incorporated in 1900. | Johnson & Johnson (NYSE: JNJ) has increased its dividend for 59 consecutive years while Abbott Labs (NYSE: ABT) and AbbVie (NYSE: ABBV) have done so for 50. A good place to look for dividend stocks is the list of Dividend Kings. This growth was driven significantly by the diagnostics segment, which grew 45% year over year and includes the COVID-testing revenue. |
31718.0 | 2022-04-13 00:00:00 UTC | Abbott (ABT) Earnings Expected to Grow: What to Know Ahead of Next Week's Release | ABT | https://www.nasdaq.com/articles/abbott-abt-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release | nan | nan | Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended March 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 20, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This maker of infant formula, medical devices and drugs is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of +12.1%.
Revenues are expected to be $10.83 billion, up 3.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.87% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Abbott?
For Abbott, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Abbott will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Abbott would post earnings of $1.18 per share when it actually produced earnings of $1.32, delivering a surprise of +11.86%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Abbott doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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. | Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended March 2022. Abbott Laboratories (ABT): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. | Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended March 2022. Abbott Laboratories (ABT): Free Stock Analysis Report Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. | Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended March 2022. Abbott Laboratories (ABT): Free Stock Analysis Report Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. | Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended March 2022. Abbott Laboratories (ABT): Free Stock Analysis Report The earnings report, which is expected to be released on April 20, 2022, might help the stock move higher if these key numbers are better than expectations. |
31719.0 | 2022-04-13 00:00:00 UTC | OEF, PFE, DIS, ABT: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/oef-pfe-dis-abt%3A-etf-inflow-alert | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 100 ETF (Symbol: OEF) where we have detected an approximate $150.7 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 42,150,000 to 42,900,000). Among the largest underlying components of OEF, in trading today Pfizer Inc (Symbol: PFE) is down about 0.4%, Walt Disney Co. (Symbol: DIS) is up about 1%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average:
Looking at the chart above, OEF's low point in its 52 week range is $183.77 per share, with $222.35 as the 52 week high point — that compares with a last trade of $201.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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 OEF, in trading today Pfizer Inc (Symbol: PFE) is down about 0.4%, Walt Disney Co. (Symbol: DIS) is up about 1%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $183.77 per share, with $222.35 as the 52 week high point — that compares with a last trade of $201.24. 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 OEF, in trading today Pfizer Inc (Symbol: PFE) is down about 0.4%, Walt Disney Co. (Symbol: DIS) is up about 1%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.2%. For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $183.77 per share, with $222.35 as the 52 week high point — that compares with a last trade of $201.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of OEF, in trading today Pfizer Inc (Symbol: PFE) is down about 0.4%, Walt Disney Co. (Symbol: DIS) is up about 1%, 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 iShares S&P 100 ETF (Symbol: OEF) where we have detected an approximate $150.7 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 42,150,000 to 42,900,000). For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $183.77 per share, with $222.35 as the 52 week high point — that compares with a last trade of $201.24. | Among the largest underlying components of OEF, in trading today Pfizer Inc (Symbol: PFE) is down about 0.4%, Walt Disney Co. (Symbol: DIS) is up about 1%, 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 iShares S&P 100 ETF (Symbol: OEF) where we have detected an approximate $150.7 million dollar inflow -- that's a 1.8% increase week over week in outstanding units (from 42,150,000 to 42,900,000). For a complete list of holdings, visit the OEF Holdings page » The chart below shows the one year price performance of OEF, versus its 200 day moving average: Looking at the chart above, OEF's low point in its 52 week range is $183.77 per share, with $222.35 as the 52 week high point — that compares with a last trade of $201.24. |
31720.0 | 2022-04-12 00:00:00 UTC | Retailers Ration Baby Formula Sales Amid Widespread Shortage | ABT | https://www.nasdaq.com/articles/retailers-ration-baby-formula-sales-amid-widespread-shortage | nan | nan | (RTTNews) - Retailers in the U.S are rationing the sales of baby formula products as severe shortage continues to grapple the supply of one of the important food for majority of babies, according to reports. Higher prices for baby formula products also add to the woes.
CBS MoneyWatch reported that drugstore chain Walgreens is limiting customers to three infant and toddler formula products per transaction, citing increased demand and various supplier issues.
CVS Health said it is working with national brand baby formula vendors to address the issue.
Real-time product data provider Datasembly stated, after tracking baby formula stock at more than 11,000 stores, that 29% of the top-selling baby formula products were out of stock as of the week of March 13 at retailers across the country. That was higher than the 11% reported in November.
Along with the ongoing supply-chain issues related to COVID-19 including shortage of key ingredients, packaging hangups and labor shortages, a recent recall of drug major Abbott's baby formula have contributed to the severe shortage of formula products around the country.
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 states 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 has reported five cases of related - infant illness, in which 2 infants died.
Last week, the FDA 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.
Amid the crisis, manufacturers are scaling up their formula production. Reckitt, maker of baby formula brand Enfamil, is said to be taking steps to ramp up production and are currently shipping 50% more product, to address issues as fast as possible.
The Infant Nutrition Council of America recently urged new parents to keep a 10-day to two-week supply or formula at home, but to avoid stockpiling formula products.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CBS MoneyWatch reported that drugstore chain Walgreens is limiting customers to three infant and toddler formula products per transaction, citing increased demand and various supplier issues. 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) - Retailers in the U.S are rationing the sales of baby formula products as severe shortage continues to grapple the supply of one of the important food for majority of babies, according to reports. Along with the ongoing supply-chain issues related to COVID-19 including shortage of key ingredients, packaging hangups and labor shortages, a recent recall of drug major Abbott's baby formula have contributed to the severe shortage of formula products around the country. 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) - Retailers in the U.S are rationing the sales of baby formula products as severe shortage continues to grapple the supply of one of the important food for majority of babies, according to reports. Real-time product data provider Datasembly stated, after tracking baby formula stock at more than 11,000 stores, that 29% of the top-selling baby formula products were out of stock as of the week of March 13 at retailers across the country. Along with the ongoing supply-chain issues related to COVID-19 including shortage of key ingredients, packaging hangups and labor shortages, a recent recall of drug major Abbott's baby formula have contributed to the severe shortage of formula products around the country. | (RTTNews) - Retailers in the U.S are rationing the sales of baby formula products as severe shortage continues to grapple the supply of one of the important food for majority of babies, according to reports. 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 regulator warned the consumers about using the recalled products manufactured at the facility, after it found the plant to be unsanitary. |
31721.0 | 2022-04-12 00:00:00 UTC | This Medical Devices Company Is Likely To Offer Better Returns Over Medtronic Stock | ABT | https://www.nasdaq.com/articles/this-medical-devices-company-is-likely-to-offer-better-returns-over-medtronic-stock | nan | nan | We think that Stryker Corp. stock (NYSE: SYK) currently is a better pick compared to its industry peer, Medtronic stock (NYSE: MDT), despite it being the more expensive of the two, trading at 5.7x trailing revenues compared to 4.7x for Medtronic. Even if we were to look at the P/EBIT ratio, SYK stock appears to be more expensive, with a 38x P/EBIT ratio than 24x for MDT stock. Although both the companies saw a rise in revenue in the recent past, Stryker’s growth has been better.
If we look at stock returns, Stryker’s 8% growth is much better than Medtronic’s -6% change over the last twelve months. This compares with 10% growth in the broader S&P 500 index. While both the companies are likely to see continued top-line expansion, Stryker is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that SYK stock will offer better returns than MDT 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 Stryker vs. Medtronic: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Stryker’s Revenue Growth Has Been Stronger
Both companies posted sales growth over the last twelve months. Still, Stryker’s revenue growth of 19% is higher than 14% for Medtronic.
Looking at a longer time frame, Stryker’s sales grew at a CAGR of 8.4% to $17.1 billion in 2021, compared to $13.6 billion in 2018, while Medtronic’s sales grew at a CAGR of 0.3% to $30.1 billion in 2021, compared to around $30.0 billion in 2018.
Stryker’s revenue growth has been driven by new product launches, such as – Surgi-Count+ – a surgical sponge counting system. Last month, it launched Insignia Hip Stem and Power-PRO 2 ambulance cot. The new launches are likely to aid its revenue growth going forward.
Stryker’s revenue growth has also been buoyed by the acquisition of Wright Medical, a medical device company, in late 2020. Earlier this year, Stryker agreed to acquire Vocera Communications – a company focused on communications systems for the healthcare industry.
Medtronic’s sales were hurt during the pandemic due to the postponement of elective surgeries. The rise of new Covid-19 variants, including Delta and Omicron, impacted demand recovery.
There are high hopes for Medtronic’s most advanced insulin pump system – MiniMed 780G – to drive its diabetes products sales in the future. The product is yet to be approved in the U.S. The underperformance of MDT stock stated earlier in this article can be linked to the concerns over the delay in MiniMed 780G approval. Late last year, the U.S. FDA issued a warning to Medtronic’s diabetes business facility in California, citing inadequacies in quality system requirements.
Our Stryker Revenue and Medtronic Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Stryker’s revenue is expected to grow at a faster pace compared to Medtronic 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 7.4% for Stryker, compared to a 2.1% CAGR for Medtronic, 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. Medtronic Is More Profitable, And It Has A Better Cash Position
Medtronic’s operating margin of 19.6% over the last twelve-month period is better than 15.1% for Stryker.
This compares with 25.2% and 18.2% figures seen in 2019, before the pandemic, respectively.
Medtronic’s free cash flow margin of 22.1% is slightly better than 19.1% for Stryker.
Our Stryker Operating Income and Medtronic Operating Income dashboards have more details.
Looking at financial risk, Stryker’s 13% debt as a percentage of equity is lower than 17% for Medtronic, while the latter’s 12% cash as a percentage of assets is higher than the 9% for Stryker, implying that SYK has a better debt position, but MDT stock has more cash cushion.
3. The Net of It All
We see that Stryker has demonstrated better revenue growth, a better debt position, and is available at a comparatively lower valuation. However, Medtronic is more profitable, and it has more cash cushion.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Stryker is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Stryker and Medtronic over the next three years and points to an expected return of 18% for Stryker over this period vs. a 3% expected return for MDT stock, implying that investors are better off buying SYK over MDT, based on Trefis Machine Learning analysis – Stryker vs. Medtronic – which also provides more details on how we arrive at these numbers.
While SYK stock may outperform MDT, 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 Apr 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
SYK Return -3% -3% 116%
MDT Return 0% 8% 56%
S&P 500 Return 0% -5% 102%
Trefis Multi-Strategy Portfolio 0% -8% 262%
[1] Month-to-date and year-to-date as of 4/7/2022
[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 Stryker vs. Medtronic: Which Stock Is A Better Bet? There are high hopes for Medtronic’s most advanced insulin pump system – MiniMed 780G – to drive its diabetes products sales in the future. Late last year, the U.S. FDA issued a warning to Medtronic’s diabetes business facility in California, citing inadequacies in quality system requirements. | 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 Stryker and Medtronic over the next three years and points to an expected return of 18% for Stryker over this period vs. a 3% expected return for MDT stock, implying that investors are better off buying SYK over MDT, based on Trefis Machine Learning analysis – Stryker vs. Medtronic – which also provides more details on how we arrive at these numbers. Total [2] SYK Return -3% -3% 116% MDT Return 0% 8% 56% S&P 500 Return 0% -5% 102% Trefis Multi-Strategy Portfolio 0% -8% 262% [1] Month-to-date and year-to-date as of 4/7/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We think that Stryker Corp. stock (NYSE: SYK) currently is a better pick compared to its industry peer, Medtronic stock (NYSE: MDT), despite it being the more expensive of the two, trading at 5.7x trailing revenues compared to 4.7x for Medtronic. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Stryker vs. Medtronic: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for Stryker and Medtronic over the next three years and points to an expected return of 18% for Stryker over this period vs. a 3% expected return for MDT stock, implying that investors are better off buying SYK over MDT, based on Trefis Machine Learning analysis – Stryker vs. Medtronic – which also provides more details on how we arrive at these numbers. | There is more to the comparison, and in the sections below, we discuss why we believe that SYK stock will offer better returns than MDT stock in the next three years. Still, Stryker’s revenue growth of 19% is higher than 14% for Medtronic. The table below summarizes our revenue and return expectations for Stryker and Medtronic over the next three years and points to an expected return of 18% for Stryker over this period vs. a 3% expected return for MDT stock, implying that investors are better off buying SYK over MDT, based on Trefis Machine Learning analysis – Stryker vs. Medtronic – which also provides more details on how we arrive at these numbers. |
31722.0 | 2022-04-11 00:00:00 UTC | See Which Of The Latest 13F Filers Holds Abbott Laboratories | ABT | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbott-laboratories-0 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 16 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Bonness Enterprises Inc. Existing UNCH -$732
Contravisory Investment Management Inc. Existing -436 -$151
Norway Savings Bank Existing +696 -$520
Barber Financial Group Inc. Existing +901 +$26
Bridges Investment Management Inc. Existing +5,760 -$962
Corsicana & Co. Existing -180 -$48
Birch Hill Investment Advisors LLC Existing -2,325 -$1,008
Summit Financial Group Inc. Existing -30 -$141
Trust Co Existing -147 -$53
Clarius Group LLC Existing UNCH $UNCH
Lowe Wealth Advisors LLC Existing UNCH -$5
Israel Discount Bank of New York Existing +119 -$232
Nexus Investment Management ULC Existing UNCH -$63
Acropolis Investment Management LLC Existing UNCH -$92
Northwest Quadrant Wealth Management LLC Existing +6 -$56
Deltec Asset Management LLC Existing UNCH -$44
Aggregate Change: +4,364 -$4,081
In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 12/31/2021 to 03/31/2022, with 5 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABT share count in the aggregate among all of the funds which held ABT at the 03/31/2022 reporting period (out of the 141 we looked at in total). We then compared that number to the sum total of ABT shares those same funds held back at the 12/31/2021 period, to see how the aggregate share count held by hedge funds has moved for ABT. We found that between these two periods, funds reduced their holdings by 2,756 shares in the aggregate, from 3,440,459 down to 3,437,703 for a share count decline of approximately -0.08%. The overall top three funds holding ABT on 03/31/2022 were:
» FUND SHARES OF ABT HELD
1. DNB Asset Management AS 430,454
2. Park National Corp OH 382,010
3. Vigilant Capital Management LLC 324,484
4-10 Find out the full Top 10 Hedge Funds Holding ABT »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 16 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT). Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 16 of these funds. Existing -30 -$141 Trust Co Existing -147 -$53 Clarius Group LLC Existing UNCH $UNCH Lowe Wealth Advisors LLC Existing UNCH -$5 Israel Discount Bank of New York Existing +119 -$232 Nexus Investment Management ULC Existing UNCH -$63 Acropolis Investment Management LLC Existing UNCH -$92 Northwest Quadrant Wealth Management LLC Existing +6 -$56 Deltec Asset Management LLC Existing UNCH -$44 Aggregate Change: +4,364 -$4,081 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 12/31/2021 to 03/31/2022, with 5 having decreased their positions. Vigilant Capital Management LLC 324,484 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | Existing -30 -$141 Trust Co Existing -147 -$53 Clarius Group LLC Existing UNCH $UNCH Lowe Wealth Advisors LLC Existing UNCH -$5 Israel Discount Bank of New York Existing +119 -$232 Nexus Investment Management ULC Existing UNCH -$63 Acropolis Investment Management LLC Existing UNCH -$92 Northwest Quadrant Wealth Management LLC Existing +6 -$56 Deltec Asset Management LLC Existing UNCH -$44 Aggregate Change: +4,364 -$4,081 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 12/31/2021 to 03/31/2022, with 5 having decreased their positions. We then compared that number to the sum total of ABT shares those same funds held back at the 12/31/2021 period, to see how the aggregate share count held by hedge funds has moved for ABT. Vigilant Capital Management LLC 324,484 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 16 of these funds. Vigilant Capital Management LLC 324,484 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: |
31723.0 | 2022-04-08 00:00:00 UTC | Best Stocks for 2022: Up 20% This Year, AbbVie Is Doing Great | ABT | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-up-20-this-year-abbvie-is-doing-great | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: This column is part of InvestorPlace.com’s Best Stocks for 2021 contest. Bob Ciura’s pick for the contest is AbbVie (NYSE:ABBV) stock.
Heading into 2022, I recommended investors take a closer look at pharmaceutical giant AbbVie (NYSE:ABBV) because the stock possessed several key factors that could make for a good investment. First, AbbVie’s earnings growth was strong and poised to continue due to its high-quality product portfolio.
Source: InvestorPlace
Next, AbbVie stock was notably undervalued. Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings.
Fast forward to today, and AbbVie shareholders are sitting on a year-to-date total return of 20% as of the end of the quarter (March 31), compared with a 4.9% total loss for the broader S&P 500 index over the same period. AbbVie has trounced the market so far this year. And while AbbVie stock is not as cheap as it was entering the year, it can still offer satisfactory returns to investors.
ABBV Stock Quarterly Earnings
The company has continued to execute on its strategic priorities. To that end, AbbVie released another strong quarterly report on Feb. 2. The company reported quarterly revenue of $14.9 billion, up 7% year-over-year. Revenue growth was positively impacted by increases from Skyrizi and Rinvoq, two of its top growth products. Earnings per share came to $3.31 for the quarter, a 13% year-over-year increase.
7 Safe Stocks to Buy to Guard Against a Recession
AbbVie saw broad-based growth across its portfolio. Fourth-quarter global net revenues from the immunology portfolio rose 13% from the same quarter last year as global Humira sales increased 3.5%.
Meanwhile, global net revenues from the hematologic oncology portfolio increased 4.7% operationally, led by Venclexta which grew revenue by 34% for the quarter.
Elsewhere, AbbVie’s global neuroscience revenue increased 19%. Net Venclexta revenues were $488 million, an increase of 33%. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. The aesthetics portfolio was the foundation of AbbVie’s massive acquisition of Allergan in 2020.
2021 was an even stronger performance. For the full year, revenue of $56.2 billion rose 23%, while adjusted earnings-per-share of $12.70, increased 20% from 2020. The company expects 2022 to be another year of strong growth. For 2022, AbbVie expects adjusted earnings-per-share in a range of $14.00 – $14.20, which would represent 11% growth at the midpoint.
AbbVie Is Still Modestly Priced
To be sure, the recent rise in AbbVie share price means the stock is not as cheap as it once was. But ABBV stock is still modestly valued. Based on expected EPS of $14.10 for this year, shares ended the quarter at a 2022 P/E ratio of 11.5. This is still quite a low valuation multiple for a company with AbbVie’s leading position in the healthcare industry.
However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. We expect AbbVie to grow its earnings-per-share by 2%-3% per year. The stock also has a 3.5% current dividend yield, leading to total expected returns in the mid-single-digit range.
This is by no means an exceptional rate of return, but still qualifies AbbVie as a strong holding for dividend growth investors. On that point, the company continues to hike its dividend payout at a high rate. Last October, AbbVie increased its dividend by 9%. It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT).
And, with a dividend payout ratio projected to be just 40% for 2022, there is plenty of room for ABBV stock to continue growing its dividend.
On the date of publication, Bob Ciura was LONG ABBV stock. He did not have (either directly or indirectly) any positions in the other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post Best Stocks for 2022: Up 20% This Year, AbbVie Is Doing Great 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. | It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT). Heading into 2022, I recommended investors take a closer look at pharmaceutical giant AbbVie (NYSE:ABBV) because the stock possessed several key factors that could make for a good investment. However, even if AbbVie stock does not continue to see its valuation multiple increase, its earnings-per-share growth and dividends will provide satisfactory returns. | It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT). Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. | It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT). Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. Lastly, AbbVie’s global aesthetics portfolio grew revenue by 23% for the fourth quarter, due to 27% growth in global Botox revenue. | It has now increased its dividend for 50 consecutive years, going back to its days as a subsidiary of Abbott Laboratories (NYSE:ABT). Finally, AbbVie stock also provided a high dividend yield, with regular dividend increases — AbbVie is one of just 66 Dividend Aristocrats, and one of just 40 Dividend Kings. The company expects 2022 to be another year of strong growth. |
31724.0 | 2022-04-05 00:00:00 UTC | Abbott (ABT) Aveir VR Leadless Pacemaker Receives FDA Nod | ABT | https://www.nasdaq.com/articles/abbott-abt-aveir-vr-leadless-pacemaker-receives-fda-nod | nan | nan | Abbott Laboratories ABT recently announced the receipt of 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.
This approval is supported by data from the global LEADLESS II phase 2 investigational device exemption (IDE) study presented at the annual Scientific Sessions of the Asia Pacific Heart Rhythm Society (APHRS) in November 2021. The study demonstrated that the device met its pre-specified primary endpoints.
The recent development is likely to fortify Abbott’s Cardiac Rhythm Management business.
About Aveir VR
Abbott's Aveir single chamber (VR) pacing system is the world's only leadless pacemaker with a unique mapping capability designed to enable physicians to measure electrical signals within the heart and determine the correct placement of the device before final implantation. The system has an increased projected battery life that lasts up to two times longer than other currently commercially available leadless pacemakers when using International Organization for Standardization (ISO) standard settings.
Additionally, Aveir VR is mainly designed to be retrieved when therapy needs to evolve or the device needs to be replaced. It can be implanted directly inside the heart's right ventricle via a minimally-invasive procedure to treat slower-than-normal heart rates.
Benefits of the Aveir VR System
Per Abbott management, the Aveir VR leadless pacemaker was intended to make the implantation and retrieval processes as seamless as possible for physicians and provide enhancement over existing options.
Image Source: Zacks Investment Research
The Aveir leadless pacemaker offers an exciting option for treating people with cardiac arrhythmias. In addition, Abbott's leadless pacemaker addresses the need for a single-chamber device that accommodates any therapy path for a patient through Aveir's retrieval capability and extended battery longevity.
Industry Prospects
Per a report by Persistence Market Research, the global leadless pacing systems market size was $29.4million in 2017 and is projected to see a CAGR of 10.0% by 2025.
The rise in the number of eligible patients, preference for new technology, growing geriatric population and rising number of cardiovascular diseases are driving the market.
Recent Developments
In February 2022, Abbott gained FDA approval for an expanded indication of 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 to monitor signs of worsening heart failure.
In January 2022, Abbott announced the receipt of FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology (OT). The new system is available in the United States and across Europe and is intended to assist physicians in better treating abnormal heart rhythms, also known as cardiac arrhythmias.
Price Performance
Shares of the company have lost 0.9% in a year against the industry's fall of 15.3%.
Zacks Rank and Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are McKesson Corporation MCK, AMN Healthcare Services, Inc. AMN and Bio-Rad Laboratories, Inc. BIO.
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted earnings per share (EPS) of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 59.7% compared with the industry’s 9.7% growth in the past year.
AMN Healthcare, flaunting a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 39.3% versus the 54.3% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3% versus the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
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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 the receipt of FDA approval for Aveir single-chamber (VR) leadless pacemaker to treat patients with slow heart rhythms in the United States. Abbott Laboratories (ABT): Free Stock Analysis Report This approval is supported by data from the global LEADLESS II phase 2 investigational device exemption (IDE) study presented at the annual Scientific Sessions of the Asia Pacific Heart Rhythm Society (APHRS) in November 2021. | Abbott Laboratories ABT recently announced the receipt of FDA approval for Aveir single-chamber (VR) leadless pacemaker to treat patients with slow heart rhythms in the United States. Abbott Laboratories (ABT): Free Stock Analysis Report Benefits of the Aveir VR System Per Abbott management, the Aveir VR leadless pacemaker was intended to make the implantation and retrieval processes as seamless as possible for physicians and provide enhancement over existing options. | Abbott Laboratories ABT recently announced the receipt of FDA approval for Aveir single-chamber (VR) leadless pacemaker to treat patients with slow heart rhythms in the United States. Abbott Laboratories (ABT): Free Stock Analysis Report About Aveir VR Abbott's Aveir single chamber (VR) pacing system is the world's only leadless pacemaker with a unique mapping capability designed to enable physicians to measure electrical signals within the heart and determine the correct placement of the device before final implantation. | Abbott Laboratories ABT recently announced the receipt of FDA approval for Aveir single-chamber (VR) leadless pacemaker to treat patients with slow heart rhythms in the United States. Abbott Laboratories (ABT): Free Stock Analysis Report Recent Developments In February 2022, Abbott gained FDA approval for an expanded indication of its CardioMEMS HF System to support the care of heart failure patients. |
31725.0 | 2022-04-05 00:00:00 UTC | Should You Pick Intuitive Surgical Stock For Better Gains? | ABT | https://www.nasdaq.com/articles/should-you-pick-intuitive-surgical-stock-for-better-gains | nan | nan | We think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Ralph Lauren stock (NYSE: RL), despite ISRG being the more expensive of the two with its P/S ratio of 18.7x, compared to just 1.4x for RL stock. We compare these two companies due to their similar revenue base. Although the two companies are from different sectors, we believe that this gap in the valuation is justified, given Intuitive Surgical’s superior revenue growth, better profitability, lower financial risk, and better growth prospects.
If we look at stock returns, Intuitive Surgical’s 21% growth has been much better than the -5% change for Ralph Lauren over the last twelve months. This compares with 13% growth in the broader S&P 500 index. While both the companies are likely to see continued top-line expansion, Intuitive Surgical is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that ISRG stock will offer better returns than RL 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 Ralph Lauren vs. Intuitive Surgical: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuitive Surgical’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Ralph Lauren has witnessed comparatively faster revenue growth of 36.3% vs. 31.0% for Intuitive Surgical.
Looking at a longer time frame, Ralph Lauren’s sales declined to $6.0 billion over the last twelve months, compared to $6.3 billion in fiscal 2019, while Intuitive Surgical’s revenues grew at a CAGR of 6% to $5.7 billion currently, compared to $3.7 billion in 2018.
For Ralph Lauren, the revenue growth has been significantly impacted by the Covid-19 disruptions in fiscal 2021. The company saw a significant 29% y-o-y decline in sales in fiscal 2021. However, with the economies now opened up, the rebound in sales has also been strong. The digital transition and accelerating demand in key geographies, including the U.S. and China, have buoyed growth for the company in the recent past.
For Intuitive Surgical, revenue growth over the recent past has been driven by a rebound in procedure volume, which was adversely impacted in the initial phases of the pandemic due to the shelter-in-place restrictions. The company continues to expand its installed base, which results in the growth of recurring revenues, such as consumables.
Our Ralph Lauren Revenue and Intuitive Surgical Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Intuitive Surgical’s revenue is expected to grow at a faster pace compared to Ralph Lauren 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 14.0% for Intuitive Surgical, compared to a 4.0% CAGR for Ralph Lauren, 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. Intuitive Surgical Is More Profitable, And It Comes With Lower Risk
Intuitive Surgical’s operating margin of 31.9% over the last twelve months is far better than 13.2% for Ralph Lauren.
This compares with 30.7% and 8.9% figures seen in 2019, before the pandemic, respectively.
Our Ralph Lauren Operating Income and Intuitive Surgical Operating Income dashboards have more details.
Intuitive Surgical’s free cash flow margin of 37% is much higher than 14% for Ralph Lauren.
Looking at financial risk, Intuitive Surgical is much better placed than Ralph Lauren. Its <1% debt as a percentage of equity is much lower than 19% for Ralph Lauren, while its 64% cash as a percentage of assets is much higher than 37% for the latter, implying that Intuitive Surgical has a better debt position and a higher cash cushion.
3. The Net of It All
Intuitive Surgical has demonstrated better revenue growth and superior profitability, and it offers lower financial risk. However, Ralph Lauren is available at a relatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Intuitive Surgical is currently the better choice of the two.
The table below summarizes our revenue and return expectations for Ralph Lauren and Intuitive Surgical over the next three years and points to an expected return of 35% for ISRG over this period vs. a 7% expected return for RL stock, implying that investors are better off buying ISRG over RL, despite its high valuation, based on Trefis Machine Learning analysis – Ralph Lauren vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers.
While ISRG stock may outperform RL, 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? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Apr 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
RL Return 0% -5% 26%
ISRG Return 0% -16% 328%
S&P 500 Return 0% -5% 103%
Trefis MS Portfolio Return 3% -7% 264%
[1] Month-to-date and year-to-date as of 4/1/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Ralph Lauren vs. Intuitive Surgical: Which Stock Is A Better Bet? For Intuitive Surgical, revenue growth over the recent past has been driven by a rebound in procedure volume, which was adversely impacted in the initial phases of the pandemic due to the shelter-in-place restrictions. Beyond the recovery point, we apply the average annual growth observed in the three years before Covid to simulate a return to normal conditions. | Looking at a longer time frame, Ralph Lauren’s sales declined to $6.0 billion over the last twelve months, compared to $6.3 billion in fiscal 2019, while Intuitive Surgical’s revenues grew at a CAGR of 6% to $5.7 billion currently, compared to $3.7 billion in 2018. It points to a CAGR of 14.0% for Intuitive Surgical, compared to a 4.0% CAGR for Ralph Lauren, based on Trefis Machine Learning analysis. The table below summarizes our revenue and return expectations for Ralph Lauren and Intuitive Surgical over the next three years and points to an expected return of 35% for ISRG over this period vs. a 7% expected return for RL stock, implying that investors are better off buying ISRG over RL, despite its high valuation, based on Trefis Machine Learning analysis – Ralph Lauren vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Ralph Lauren vs. Intuitive Surgical: Which Stock Is A Better Bet? Looking at a longer time frame, Ralph Lauren’s sales declined to $6.0 billion over the last twelve months, compared to $6.3 billion in fiscal 2019, while Intuitive Surgical’s revenues grew at a CAGR of 6% to $5.7 billion currently, compared to $3.7 billion in 2018. The table below summarizes our revenue and return expectations for Ralph Lauren and Intuitive Surgical over the next three years and points to an expected return of 35% for ISRG over this period vs. a 7% expected return for RL stock, implying that investors are better off buying ISRG over RL, despite its high valuation, based on Trefis Machine Learning analysis – Ralph Lauren vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. | Still, Ralph Lauren has witnessed comparatively faster revenue growth of 36.3% vs. 31.0% for Intuitive Surgical. Our Ralph Lauren Revenue and Intuitive Surgical Revenue dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for Ralph Lauren and Intuitive Surgical over the next three years and points to an expected return of 35% for ISRG over this period vs. a 7% expected return for RL stock, implying that investors are better off buying ISRG over RL, despite its high valuation, based on Trefis Machine Learning analysis – Ralph Lauren vs. Intuitive Surgical – which also provides more details on how we arrive at these numbers. |
31726.0 | 2022-04-04 00:00:00 UTC | Abbott: FDA Approves Aveir Pacemaker For Treatment Of Patients With Slow Heart Rhythms | ABT | https://www.nasdaq.com/articles/abbott%3A-fda-approves-aveir-pacemaker-for-treatment-of-patients-with-slow-heart-rhythms | nan | nan | (RTTNews) - Abbott (ABT) announced the FDA has approved the Aveir single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms. The Aveir leadless pacemaker is implanted directly inside the heart's right ventricle via a minimally invasive procedure to treat slower-than-normal heart rates. The approval is supported by data from the global LEADLESS II phase 2 investigational device exemption study evaluating Aveir VR in patients with certain abnormal heart rhythms.
"The Aveir VR leadless pacemaker was designed to make the implantation and retrieval processes as seamless as possible for physicians and provide improvements over existing options," said Randel Woodgrift, senior vice president, Cardiac Rhythm Management, Abbott.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) announced the FDA has approved the Aveir single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms. The approval is supported by data from the global LEADLESS II phase 2 investigational device exemption study evaluating Aveir VR in patients with certain abnormal heart rhythms. "The Aveir VR leadless pacemaker was designed to make the implantation and retrieval processes as seamless as possible for physicians and provide improvements over existing options," said Randel Woodgrift, senior vice president, Cardiac Rhythm Management, Abbott. | (RTTNews) - Abbott (ABT) announced the FDA has approved the Aveir single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms. The Aveir leadless pacemaker is implanted directly inside the heart's right ventricle via a minimally invasive procedure to treat slower-than-normal heart rates. The approval is supported by data from the global LEADLESS II phase 2 investigational device exemption study evaluating Aveir VR in patients with certain abnormal heart rhythms. | (RTTNews) - Abbott (ABT) announced the FDA has approved the Aveir single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms. "The Aveir VR leadless pacemaker was designed to make the implantation and retrieval processes as seamless as possible for physicians and provide improvements over existing options," said Randel Woodgrift, senior vice president, Cardiac Rhythm Management, Abbott. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) announced the FDA has approved the Aveir single-chamber leadless pacemaker for the treatment of patients in the U.S. with slow heart rhythms. The Aveir leadless pacemaker is implanted directly inside the heart's right ventricle via a minimally invasive procedure to treat slower-than-normal heart rates. The approval is supported by data from the global LEADLESS II phase 2 investigational device exemption study evaluating Aveir VR in patients with certain abnormal heart rhythms. |
31727.0 | 2022-04-04 00:00:00 UTC | What Makes Insulet Stock A Good Bet? | ABT | https://www.nasdaq.com/articles/what-makes-insulet-stock-a-good-bet | nan | nan | We think that Insulet stock (NASDAQ: PODD), a company best known for selling the Omnipod continuous insulin delivery system that caters to people with diabetes, currently is a better pick compared to ConMed (NASDAQ: CNMD), a medical devices company that specializes in products for orthopedic and general surgery, despite PODD being the more expensive of the two with its P/S ratio of 16x, compared to just 4x for CNMD. We compare these two healthcare companies due to their similar revenue base. Although both the companies saw a rise in revenue over the last twelve months, the growth has been better for Insulet.
If we look at stock returns, ConMed’s 14% growth is better than the 1% returns for Insulet over the last twelve months. This compares with 16% growth in the broader S&P 500 index. While both the companies are likely to see continued top-line expansion, Insulet is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that PODD stock will offer better returns than CNMD 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 ConMed vs. Insulet: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Insulet’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Insulet has witnessed comparatively faster revenue growth of 21.5% vs. 17.2% for ConMed.
Looking at a longer time frame, Insulet’s sales grew at a CAGR of 25% to $1.1 billion over the last twelve months, compared to $0.6 billion in 2018, while ConMed’s revenues grew at a CAGR of 6% to $1.0 billion currently.
For Insulet, the revenue growth has been buoyed by market share gains for its Omnipod system. The aging population in the U.S. and rising awareness about the products have aided the demand for Insulet’s products.
For ConMed, the revenue growth over the recent years has been affected due to the impact of the Covid-19 pandemic on its business, as hospitals and other healthcare institutions deferred non-urgent surgeries. ConMed derives most of its revenues from single-use products, which are expected to be recurring. This is likely to result in stable top-line growth over the coming years.
Our ConMed Revenue and Insulet Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Insulet’s revenue is expected to grow at a faster pace compared to ConMed 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 18.3% for Insulet, compared to a 5.5% CAGR for ConMed, 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.
ConMed Is More Profitable, But It Comes With Higher Risk
ConMed’s operating margin of 14% over the last twelve months is much better than just 2% for Insulet.
This compares with 12% and 2% figures seen in 2019, before the pandemic, respectively.
Our ConMed Operating Income and Insulet Operating Income dashboards have more details.
ConMed’s free cash flow margin of 11% is much higher than -6% for Insulet.
Looking at financial risk, ConMed’s 17% debt as a percentage of equity is higher than 8% for Insulet, while its 1% cash as a percentage of assets is much lower than 39% for the latter, implying that Insulet has a better debt position and cash cushion.
3. The Net of It All
We see that Insulet has demonstrated better revenue growth, and it offers lower financial risk. However, ConMed is more profitable, and it is available at a relatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Insulet is currently the better choice of the two.
The table below summarizes our revenue and return expectation for ConMed and Insulet over the next three years and points to an expected return of 80% for PODD over this period vs. a 6% expected return for CNMD stock, implying that investors are better off buying PODD over CNMD, despite its high valuation, based on Trefis Machine Learning analysis – ConMed vs. Insulet – which also provides more details on how we arrive at these numbers.
While PODD stock may outperform CNMD, 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? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CNMD Return 2% 5% 238%
PODD Return 0% -1% 600%
S&P 500 Return 5% -3% 106%
Trefis MS Portfolio Return 3% -7% 266%
[1] Month-to-date and year-to-date as of 3/30/2022
[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 Insulet stock (NASDAQ: PODD), a company best known for selling the Omnipod continuous insulin delivery system that caters to people with diabetes, currently is a better pick compared to ConMed (NASDAQ: CNMD), a medical devices company that specializes in products for orthopedic and general surgery, despite PODD being the more expensive of the two with its P/S ratio of 16x, compared to just 4x for CNMD. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis ConMed vs. Insulet: Which Stock Is A Better Bet? For ConMed, the revenue growth over the recent years has been affected due to the impact of the Covid-19 pandemic on its business, as hospitals and other healthcare institutions deferred non-urgent surgeries. | Looking at a longer time frame, Insulet’s sales grew at a CAGR of 25% to $1.1 billion over the last twelve months, compared to $0.6 billion in 2018, while ConMed’s revenues grew at a CAGR of 6% to $1.0 billion currently. The table below summarizes our revenue and return expectation for ConMed and Insulet over the next three years and points to an expected return of 80% for PODD over this period vs. a 6% expected return for CNMD stock, implying that investors are better off buying PODD over CNMD, despite its high valuation, based on Trefis Machine Learning analysis – ConMed vs. Insulet – which also provides more details on how we arrive at these numbers. Total [2] CNMD Return 2% 5% 238% PODD Return 0% -1% 600% S&P 500 Return 5% -3% 106% Trefis MS Portfolio Return 3% -7% 266% [1] Month-to-date and year-to-date as of 3/30/2022 [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 Insulet stock (NASDAQ: PODD), a company best known for selling the Omnipod continuous insulin delivery system that caters to people with diabetes, currently is a better pick compared to ConMed (NASDAQ: CNMD), a medical devices company that specializes in products for orthopedic and general surgery, despite PODD being the more expensive of the two with its P/S ratio of 16x, compared to just 4x for CNMD. The table below summarizes our revenue and return expectation for ConMed and Insulet over the next three years and points to an expected return of 80% for PODD over this period vs. a 6% expected return for CNMD stock, implying that investors are better off buying PODD over CNMD, despite its high valuation, based on Trefis Machine Learning analysis – ConMed vs. Insulet – which also provides more details on how we arrive at these numbers. Total [2] CNMD Return 2% 5% 238% PODD Return 0% -1% 600% S&P 500 Return 5% -3% 106% Trefis MS Portfolio Return 3% -7% 266% [1] Month-to-date and year-to-date as of 3/30/2022 [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. | 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. ConMed Is More Profitable, But It Comes With Higher Risk ConMed’s operating margin of 14% over the last twelve months is much better than just 2% for Insulet. The table below summarizes our revenue and return expectation for ConMed and Insulet over the next three years and points to an expected return of 80% for PODD over this period vs. a 6% expected return for CNMD stock, implying that investors are better off buying PODD over CNMD, despite its high valuation, based on Trefis Machine Learning analysis – ConMed vs. Insulet – which also provides more details on how we arrive at these numbers. |
31728.0 | 2022-04-03 00:00:00 UTC | 5 Top Health Care Stocks To Watch In The Stock Market Today | ABT | https://www.nasdaq.com/articles/5-top-health-care-stocks-to-watch-in-the-stock-market-today | nan | nan | Should Investors Be Watching These Top Health Care Stocks This Week?
In the past 2 years, health care stocks have been among the more important sectors in the stock market thanks to the Covid-19 pandemic. Although new daily cases in the country have been relatively low compared to the start of the year, the health care industry still has many areas that could be of interest to investors. This is because of many other diseases that have high mortality rates and require extensive treatments. Health care companies have been working to develop treatments and therapies to treat these diseases. And these solutions, by extension, would mean profits for these health care companies.
Just yesterday, the FDA approved second booster shots of the Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) Covid-19 vaccines for Americans 50 years and older. While the approval was only for those 50 years and older, the approval could potentially expand to Americans 18 years and above in the months ahead. This may happen when health regulators find that the protection from the initial booster dose has waned. Ultimately, this would mean another round of tailwinds for the two companies thanks to additional sales. And with that, here are five health care stocks to check out in thestock market today
Health Care Stocks To Buy [Or Sell] This Week
BioNTech SE (NASDAQ: BNTX)
UnitedHealth Group Inc. (NYSE: UNH)
AstraZeneca Plc (NASDAQ: AZN)
Valneva SE ADR (NASDAQ: VALN)
Abbott Laboratories (NYSE: ABT)
BioNTech SE
Starting us off today, we have BioNTech, a biopharmaceutical company that has pioneered novel therapies for cancer and other serious diseases. Accordingly, the company exploits a wide array of computational discovery and therapeutic drug platforms for the rapid development of novel biopharmaceuticals. Based on its deep expertise in mRNA vaccine development and its in-house manufacturing capabilities, the company has created one of the first mRNA vaccines in the world to treat Covid-19.
Today, the company reported its fourth-quarter and full-year financials. Diving in, revenues for the quarter grew by over 1,000% year-over-year to $6.16 billion on strong vaccine sales. In fact, BioNTech has sold over 2.6 billion doses of its vaccine to more than 165 countries and regions worldwide in 2021. This also includes more than 1 billion doses to low- and middle-income countries. It also says that it has signed orders for 2022 delivery of up to 2.4 billion vaccine doses. Its net profit for the quarter also rose by over 700% to $3.53 billion. Also, BioNTech announced that its global Covid-19 supply chain and manufacturing network now includes 20 manufacturing facilities that span across four continents. Given the strong quarter, should investors be on the look-out for BNTX stock?
Source: TD Ameritrade TOS
[Read More] 3 Top Meme Stocks To Watch In The Stock Market Today
UnitedHealth Group
UnitedHealth Group (UNH) is a multinational health care and insurance company. The company is dedicated to helping people live healthier lives and making health care work for everyone. Moreover, it offers a full spectrum of health benefit programs for individuals, employers, and Medicare and Medicaid beneficiaries. UNH also contracts directly with more than 1.3 million physicians and care professionals. Furthermore, UnitedHealth provides health benefits and delivers care to people through its health care facilities in South America.
Yesterday, the health care company said that it will be taking over LHC Group (NASDAQ: LHCG) for approximately $5.4 billion in cash. LHC, for the most part, is a provider of health care services at home, mainly for older patients dealing with chronic illness and injuries. UNH, being the largest U.S. health insurer, will further expand its footprint into home health services through this deal. Evidently, the deal will combine LHC with UNH’s Optum unit, which manages drug benefits and offers health care data analytics services. With taking over in the works, should you buy UNH stock?
Source: TD Ameritrade TOS
AstraZeneca
Another top health care company to watch is AstraZeneca. The company primarily focuses on three main therapy areas, Oncology, Cardiovascular & Metabolic Disease, and Respiratory. It is also selectively active in the areas of autoimmunity, neuroscience, and infection. Similar to other vaccine companies, AstraZeneca plays a vital role in providing coronavirus vaccines around the globe. Over the past year, AZN stock has risen by over 30%. On Monday, AstraZeneca said that its Evusheld long-acting antibody combination has been approved by the European Union.
Specifically, it was approved for the prevention of Covid-19 in a broad population. It works by being taken pre-emptively and is administered in two injections. Additionally, its clinical trials showed that the drug reduces the risk of developing symptomatic Covid-19 by 77% compared to the placebo. Unlike other antibody treatments, which are used after contracting Covid-19, Evusheld would be used as an alternative vaccination for those who are immunocompromised or for whom vaccination is not recommended. Given the approval in the EU, would you invest in AZN stock?
Source: TD Ameritrade TOS
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Valneva
Valneva is a biotech company that develops prophylactic vaccines for infectious diseases. In fact, it currently has several vaccines in development, including unique vaccines against Lyme disease, coronavirus, and chikungunya. The company’s portfolio also includes two commercial vaccines for travelers. The company also has approximately 700 employees across six countries. On March 24, the biotech firm reported its full-year 2021 results and shared some of its highlights. Notably, Valneva brought in total revenues of $387 million in 2021, tripling from its revenue in 2020.
The company also shared its financial guidance for 2022. Namely, it expects to pull in between $478 to $656 million in revenue. Besides that, Valneva also made some notable strides in its clinical programs. For instance, its Lyme disease vaccine candidate VLA15 showed positive Phase 2 results. Next to that, its Covid-19 vaccine candidate VLA2001 has bagged purchase agreements from the European Commission and Bahrain. And last but not least, its Chikungunya vaccine candidate VLA1553 pre-submission process is expected to start in the second quarter this year. Considering all these, is VALN stock worth watching?
Source: TD Ameritrade TOS
[Read More] 4 Top Utility Stocks To Watch In April 2022
Abbott Laboratories
Abbott is a company that specializes in a diversified line of health care products. Its products include a line of rhythm management, electrophysiology, vascular and structural heart devices for the treatment of cardiovascular diseases, and diabetes care products. Last week, the U.S. Army awarded Abbott a $1 billion contract to provide rapid Covid-19 antigen tests to the federal government.
Evidently, this comes as part of the Biden administration’s efforts to purchase one billion at-home test kits to help meet future testing demand. The award to Abbott, for an undisclosed quantity of its BinaxNOW and ID NOW tests, is due by June. In fact, the company’s BinaxNOW, Panbio, and ID NOW tests brought in a massive $1.6 billion in revenue during the company’s third-quarter in 2021. And throughout the full year, the total revenue from Covid test sales came in at $7.7 billion, dwarfing the $3.9 billion in 2020. With Abbott ramping up production, would you add ABT stock to your portfolio?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And with that, here are five health care stocks to check out in thestock market today Health Care Stocks To Buy [Or Sell] This Week BioNTech SE (NASDAQ: BNTX) UnitedHealth Group Inc. (NYSE: UNH) AstraZeneca Plc (NASDAQ: AZN) Valneva SE ADR (NASDAQ: VALN) Abbott Laboratories (NYSE: ABT) BioNTech SE Starting us off today, we have BioNTech, a biopharmaceutical company that has pioneered novel therapies for cancer and other serious diseases. With Abbott ramping up production, would you add ABT stock to your portfolio? Just yesterday, the FDA approved second booster shots of the Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) Covid-19 vaccines for Americans 50 years and older. | And with that, here are five health care stocks to check out in thestock market today Health Care Stocks To Buy [Or Sell] This Week BioNTech SE (NASDAQ: BNTX) UnitedHealth Group Inc. (NYSE: UNH) AstraZeneca Plc (NASDAQ: AZN) Valneva SE ADR (NASDAQ: VALN) Abbott Laboratories (NYSE: ABT) BioNTech SE Starting us off today, we have BioNTech, a biopharmaceutical company that has pioneered novel therapies for cancer and other serious diseases. With Abbott ramping up production, would you add ABT stock to your portfolio? Source: TD Ameritrade TOS [Read More] 3 Top Meme Stocks To Watch In The Stock Market Today UnitedHealth Group UnitedHealth Group (UNH) is a multinational health care and insurance company. | And with that, here are five health care stocks to check out in thestock market today Health Care Stocks To Buy [Or Sell] This Week BioNTech SE (NASDAQ: BNTX) UnitedHealth Group Inc. (NYSE: UNH) AstraZeneca Plc (NASDAQ: AZN) Valneva SE ADR (NASDAQ: VALN) Abbott Laboratories (NYSE: ABT) BioNTech SE Starting us off today, we have BioNTech, a biopharmaceutical company that has pioneered novel therapies for cancer and other serious diseases. With Abbott ramping up production, would you add ABT stock to your portfolio? Source: TD Ameritrade TOS [Read More] 3 Top Meme Stocks To Watch In The Stock Market Today UnitedHealth Group UnitedHealth Group (UNH) is a multinational health care and insurance company. | And with that, here are five health care stocks to check out in thestock market today Health Care Stocks To Buy [Or Sell] This Week BioNTech SE (NASDAQ: BNTX) UnitedHealth Group Inc. (NYSE: UNH) AstraZeneca Plc (NASDAQ: AZN) Valneva SE ADR (NASDAQ: VALN) Abbott Laboratories (NYSE: ABT) BioNTech SE Starting us off today, we have BioNTech, a biopharmaceutical company that has pioneered novel therapies for cancer and other serious diseases. With Abbott ramping up production, would you add ABT stock to your portfolio? Health care companies have been working to develop treatments and therapies to treat these diseases. |
31729.0 | 2022-04-02 00:00:00 UTC | Here's Why Abbott's a Great Buy Even if COVID Testing Revenue Falls | ABT | https://www.nasdaq.com/articles/heres-why-abbotts-a-great-buy-even-if-covid-testing-revenue-falls | nan | nan | Abbott Laboratories (NYSE: ABT) is a leader in coronavirus testing. Its laboratory tests and rapid tests have brought in billions of dollars in revenue. In the fourth quarter of last year, for example, Abbott generated $2.3 billion from its COVID-19 tests. And the company said demand remained strong at the start of this year as the omicron variant gained ground.
But coronavirus testing revenue isn't sure to gain every quarter and every year. It's tapered off in the past. And it's likely to decline again in the future as the number of coronavirus cases falls. But that doesn't change my view of Abbott as a great buy. The following two charts show this healthcare company has other elements set to drive revenue higher.
Image source: Getty Images.
Four businesses to generate revenue
First, it's important to keep in mind that Abbott has four businesses: Nutrition, diagnostics, established pharmaceuticals, and medical devices. Medical devices historically have generated a big share of revenue. But that business suffered during the worst of the pandemic as many surgeries were postponed.
Now, let's get to the first chart. It shows Abbott is the second-biggest company in the cardiologic medical technology market. It holds 17% of the market as of 2017. By 2024, it may lose a bit of market share. Abbott's share is set to fall to 15.4%. But Abbott will still remain in the No. 2 spot.
Today, Abbott generates billions of dollars in revenue in the cardiology market. This past year, its cardiology medical device segments delivered more than $9 billion in revenue. And the company continues to launch new products into this market. They will be the revenue drivers down the road.
The diabetes market
The second chart refers to the diabetes market. Abbott already is a significant player here. The company sells the FreeStyle Libre continuous glucose monitoring system -- a top seller in the field. In the most recent quarter, FreeStyle Libre sales jumped more than 35% to $1 billion. And diabetes care generated more than $4.3 billion for Abbott in the full year. The following chart shows that, today, about 537 million people worldwide are living with diabetes. That number is set to rise to 783 million by 2045. This trend means more and more patients may look to Abbott for help in managing their condition.
Together, these two charts show two significant revenue drivers for Abbott today and in the coming years. I don't expect coronavirus testing revenue to disappear. Companies, schools, and organizations worldwide may continue to recommend testing at certain points once the pandemic is over. But even if Abbott eventually sells far fewer tests than it does today, I'm not worried. Abbott's medical device business is likely to ensure enormous revenue over time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is a leader in coronavirus testing. And the company said demand remained strong at the start of this year as the omicron variant gained ground. The company sells the FreeStyle Libre continuous glucose monitoring system -- a top seller in the field. | Abbott Laboratories (NYSE: ABT) is a leader in coronavirus testing. Today, Abbott generates billions of dollars in revenue in the cardiology market. Together, these two charts show two significant revenue drivers for Abbott today and in the coming years. | Abbott Laboratories (NYSE: ABT) is a leader in coronavirus testing. Four businesses to generate revenue First, it's important to keep in mind that Abbott has four businesses: Nutrition, diagnostics, established pharmaceuticals, and medical devices. Today, Abbott generates billions of dollars in revenue in the cardiology market. | Abbott Laboratories (NYSE: ABT) is a leader in coronavirus testing. But coronavirus testing revenue isn't sure to gain every quarter and every year. This past year, its cardiology medical device segments delivered more than $9 billion in revenue. |
31730.0 | 2022-03-31 00:00:00 UTC | 3 Top Healthcare ETFs to Buy Now and Hold for the Long Haul | ABT | https://www.nasdaq.com/articles/3-top-healthcare-etfs-to-buy-now-and-hold-for-the-long-haul | nan | nan | Investing in individual stocks can make some investors nervous due to the amount of necessary research and the risk associated with volatility in the market. One way to quiet those nerves is to place your money into exchange-traded funds that follow a market or sector index and are managed by a financial institution. Each ETF holds positions in a group of stocks and can be traded in real-time, just like stocks.
Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI).
Image source: Getty Images.
1. Vanguard goes heavy on pharma, and light on expenses
The average expense ratio for ETFs has trended downward since 2008, driven by an injection of new ETFs on the market, giving investors an opportunity to increase their gains. But even at an average rate of 0.18% for asset-weighted funds, Vanguard comes in lower at 0.10%. With no minimum investment and a low expense ratio, it removes potential front-end obstacles that might scare away some investors.
This healthcare ETF also provides investors with an expansive diversification of stocks within the sector, including companies that sell medical products, services, equipment, and technology. The aim is to track the performance of a benchmark index, but 25% of the holdings are weighted toward pharmaceuticals. Moreover, 44% of its total assets are in its top-10 holdings, including Abbott Laboratories, AbbVie, and UnitedHealth, strong companies to hold for the long term.
Because the fund aims to track the healthcare index as a whole, it should continue to benefit from two growth areas. First, the pharmaceutical market is projected to grow at a 5.7% compound annual rate through 2026. Second, the population of people reaching age 65 over the next 10 years is expected to increase, leading to more spending on Medicare and Medicaid services.
Topping off the benefits of this ETF is a 1.14% dividend yield, which amounted to a $3.05-per-share distribution in dividends for 2021, and leads the pack of these three ETFs. A 15% average annualized return over the past 10 years is impressive as well.
2. Blackrock's U.S. Healthcare Providers ETF has a strong record
When long-term investors look to build out a portfolio, it's a good practice to compile a few investments that serve with consistency to support a foundational base. This ETF has provided positive returns in 13 of the 14 years since its inception.
Comparing it to the Vanguard healthcare ETF, there are some similarities and some trade-offs. Similarities include UnitedHealth as a top holding, which has been a rocket ship of growth, and has the right stuff to keep it going. But the rest of the top holdings are led by healthcare providers, including pharmacy market leader CVS. At the same time, its average annualized return of 17.3% over the past 10 years exceeds that of the Vanguard ETF.
The minor trade-off to the higher returns is that this ETF carries an expense ratio of 0.42%, which more closely resembles the 0.47% average of a simple, non-asset-weighted ETF. This basically means you're paying more for your gains.
But when the returns average 2% higher per year than Vanguard's ETF, they can make up for that higher expense ratio -- assuming that this winning streak can continue. And the heavier reliance on healthcare providers, as opposed to pharmaceuticals, can provide balance when letting both ETFs work in tandem for your portfolio.
3. Blackrock's U.S. Medical Devices ETF is well worth a high expense ratio
A third healthcare ETF for a solid portfolio could be the Blackrock U.S. Medical Devices ETF. If it's higher returns you're looking for from your ETF, you'll find it here, at a 19% average annualized total return over the past 10 years compared to the S&P 500 Healthcare average of 15.9%.
But like Blackrock's healthcare provider ETF, this medical devices-focused ETF has a heavy 72% of its total assets in the top 10 holdings, making it riskier than an ETF that is more broadly spread out. Other trade-offs to its higher returns include a higher 0.42% expense ratio and a slightly lower consistency rate of years with positive returns. It also delivers a lower dividend compared to each of the other two ETFs highlighted, at only 0.33%.
Holdings like Abbott Labs, Intuitive Surgical, and Medtronic have helped pace this large-growth ETF. It should benefit from a projected compound annual growth rate of 5.4% for the medical devices market through 2028, driven by such advancements in technology as artificial intelligence and robotics.
How does the S&P average match up?
The chart below shows the 10-year annualized return for each of these three ETFs compared to that of the broader S&P 500 and S&P 500 Healthcare indices. As you can see, both S&P averages fall below all three of these healthcare-focused ETFs.
^SPX data by YCharts.
While all three could be good additions to your portfolio, each may serve its purpose depending on your investment stage. Younger investors may opt to go with a higher-risk approach for higher potential annual returns, whereas someone closing in on retirement may want to go with an ETF that can deliver more consistency with less risk. Meanwhile, a higher-dividend-paying ETF can help generate some quarterly income and benefit investors at all stages.
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Jeff Little owns iShares Dow Jones US Medical Dev. The Motley Fool owns and recommends Intuitive Surgical. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This healthcare ETF also provides investors with an expansive diversification of stocks within the sector, including companies that sell medical products, services, equipment, and technology. Blackrock's U.S. Healthcare Providers ETF has a strong record When long-term investors look to build out a portfolio, it's a good practice to compile a few investments that serve with consistency to support a foundational base. It should benefit from a projected compound annual growth rate of 5.4% for the medical devices market through 2028, driven by such advancements in technology as artificial intelligence and robotics. | Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). But like Blackrock's healthcare provider ETF, this medical devices-focused ETF has a heavy 72% of its total assets in the top 10 holdings, making it riskier than an ETF that is more broadly spread out. Other trade-offs to its higher returns include a higher 0.42% expense ratio and a slightly lower consistency rate of years with positive returns. | Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). Blackrock's U.S. Medical Devices ETF is well worth a high expense ratio A third healthcare ETF for a solid portfolio could be the Blackrock U.S. Medical Devices ETF. But like Blackrock's healthcare provider ETF, this medical devices-focused ETF has a heavy 72% of its total assets in the top 10 holdings, making it riskier than an ETF that is more broadly spread out. | Three healthcare ETFs that provide long-term investors with diversification, along with growth opportunities to outpace the S&P 500, include Vanguard Health Care ETF (NYSEMKT: VHT), Blackrock iShares U.S. Healthcare Providers ETF (NYSEMKT: IHF), and Blackrock iShares U.S. Medical Devices ETF (NYSEMKT: IHI). But even at an average rate of 0.18% for asset-weighted funds, Vanguard comes in lower at 0.10%. If it's higher returns you're looking for from your ETF, you'll find it here, at a 19% average annualized total return over the past 10 years compared to the S&P 500 Healthcare average of 15.9%. |
31731.0 | 2022-03-29 00:00:00 UTC | iShares Core S&P Total U.S. Stock Market ETF Experiences Big Inflow | ABT | https://www.nasdaq.com/articles/ishares-core-sp-total-u.s.-stock-market-etf-experiences-big-inflow-1 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $147.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 440,950,000 to 442,400,000). Among the largest underlying components of ITOT, in trading today Eli Lilly (Symbol: LLY) is off about 0.8%, Salesforce Inc (Symbol: CRM) is up about 1.3%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $90.54 per share, with $108.15 as the 52 week high point — that compares with a last trade of $102.61. 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 ITOT, in trading today Eli Lilly (Symbol: LLY) is off about 0.8%, Salesforce Inc (Symbol: CRM) is up about 1.3%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $90.54 per share, with $108.15 as the 52 week high point — that compares with a last trade of $102.61. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today Eli Lilly (Symbol: LLY) is off about 0.8%, Salesforce Inc (Symbol: CRM) is up about 1.3%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $90.54 per share, with $108.15 as the 52 week high point — that compares with a last trade of $102.61. 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 ». | Among the largest underlying components of ITOT, in trading today Eli Lilly (Symbol: LLY) is off about 0.8%, Salesforce Inc (Symbol: CRM) is up about 1.3%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $147.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 440,950,000 to 442,400,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $90.54 per share, with $108.15 as the 52 week high point — that compares with a last trade of $102.61. | Among the largest underlying components of ITOT, in trading today Eli Lilly (Symbol: LLY) is off about 0.8%, Salesforce Inc (Symbol: CRM) is up about 1.3%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $147.6 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 440,950,000 to 442,400,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $90.54 per share, with $108.15 as the 52 week high point — that compares with a last trade of $102.61. |
31732.0 | 2022-03-29 00:00:00 UTC | Is Invesco Dynamic Pharmaceuticals ETF (PJP) a Strong ETF Right Now? | ABT | https://www.nasdaq.com/articles/is-invesco-dynamic-pharmaceuticals-etf-pjp-a-strong-etf-right-now-1 | nan | nan | Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $338.61 million, making it one of the average sized ETFs in the Health Care ETFs. Before fees and expenses, this particular fund seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It has a 12-month trailing dividend yield of 0.89%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
PJP's heaviest allocation is in the Healthcare sector, which is about 100% of the portfolio.
Taking into account individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of the fund's total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY).
The top 10 holdings account for about 57.16% of total assets under management.
Performance and Risk
The ETF has lost about -1.07% so far this year and is up roughly 1.66% in the last one year (as of 03/29/2022). In the past 52-week period, it has traded between $74.31 and $83.17.
The ETF has a beta of 0.80 and standard deviation of 21.26% for the trailing three-year period, making it a high risk choice in the space. With about 23 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF is a reasonable option for investors seeking to outperform the Health Care ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. VanEck Pharmaceutical ETF has $360.61 million in assets, iShares U.S. Pharmaceuticals ETF has $409.96 million. PPH has an expense ratio of 0.35% and IHE charges 0.42%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Health Care ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
Abbott Laboratories (ABT): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
VanEck Pharmaceutical ETF (PPH): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of the fund's total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta. | Taking into account individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of the fund's total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market. | Taking into account individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of the fund's total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market. | Taking into account individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of the fund's total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Launched on 06/23/2005, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a smart beta exchange traded fund offering broad exposure to the Health Care ETFs category of the market. |
31733.0 | 2022-03-28 00:00:00 UTC | The Zacks Analyst Blog Highlights Alphabet, Abbott Laboratories, The Charles Schwab, Canadian National Railway Company and Air Products and Chemicals | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-alphabet-abbott-laboratories-the-charles-schwab-canadian | nan | nan | For Immediate Release
Chicago, IL – March 28, 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: Alphabet Inc. GOOGL, Abbott Laboratories ABT, The Charles Schwab Corp. SCHW, Canadian National Railway Company CNI and Air Products and Chemicals, Inc. APD.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Alphabet, Abbott and Charles Schwab
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc., Abbott Laboratories and The Charles Schwab Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Shares of Alphabet have outperformed the Zacks Internet - Services industry over the past year (+39.8% vs. +17.8%) on the back of solid momentum across search, advertising, cloud and YouTube businesses. Further, the growing proliferation of consumer online activities and rising advertiser spending remained tailwinds.
Alphabet's robust cloud division continues to be the key catalyst. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results. Moreover, Google's mobile search is constantly gaining solid traction. Also, strong focus on AI techniques and the home automation space should aid business growth in the long term. Yet, its growing litigation issues remain concerns.
(You can read the full research report on Alphabet here >>>)
Abbott shares have declined -2% over the past year against the Zacks Medical - Products industry's decline of -7.3%. However, Abbott did post better-than-expected earnings and revenue numbers for the fourth quarter of 2021. Barring Neuromodulation (a 7.5% year-over-year decline), the company registered organic sales growth across all its operating segments.
The Zacks analyst believes that COVID-19 testing-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Within the Diabetes Care business, 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.
However, the company's projection indicates a fall in COVID testing revenues through the later part of 2022. Year-over-year drop in Neuromodulation sales was concerning.
(You can read the full research report on Abbott here >>>)
Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past year (+39.3% vs. +7.6%). The Zacks analyst believes that strategic acquisitions have reinforced Schwab's position as a leading brokerage player. The same will likely be accretive to earnings. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues.
Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value. However, despite expectations of a few rate hikes, relatively lower interest rates will likely keep hurting margins in the near term. Elevated operating expenses might hamper the company's bottom-line growth to an extent.
(You can read the full research report on Charles Schwab here >>>)
Other noteworthy reports we are featuring today include Canadian National Railway Company and Air Products and Chemicals, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press relea
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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Canadian National Railway Company (CNI): Free Stock Analysis Report
The Charles Schwab Corporation (SCHW): 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: Alphabet Inc. GOOGL, Abbott Laboratories ABT, The Charles Schwab Corp. SCHW, Canadian National Railway Company CNI and Air Products and Chemicals, Inc. APD. Abbott Laboratories (ABT): Free Stock Analysis Report You can see all of today's research reports here >>> Shares of Alphabet have outperformed the Zacks Internet - Services industry over the past year (+39.8% vs. +17.8%) on the back of solid momentum across search, advertising, cloud and YouTube businesses. | Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Abbott Laboratories ABT, The Charles Schwab Corp. SCHW, Canadian National Railway Company CNI and Air Products and Chemicals, Inc. APD. Abbott Laboratories (ABT): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc., Abbott Laboratories and The Charles Schwab Corp. | Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Abbott Laboratories ABT, The Charles Schwab Corp. SCHW, Canadian National Railway Company CNI and Air Products and Chemicals, Inc. APD. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Friday’s Analyst Blog: Top Research Reports for Alphabet, Abbott and Charles Schwab The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Alphabet Inc. GOOGL, Abbott Laboratories ABT, The Charles Schwab Corp. SCHW, Canadian National Railway Company CNI and Air Products and Chemicals, Inc. APD. Abbott Laboratories (ABT): Free Stock Analysis Report Here are highlights from Friday’s Analyst Blog: Top Research Reports for Alphabet, Abbott and Charles Schwab The Zacks Research Daily presents the best research output of our analyst team. |
31734.0 | 2022-03-28 00:00:00 UTC | Abbott (ABT) Outpaces Stock Market Gains: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-outpaces-stock-market-gains%3A-what-you-should-know-0 | nan | nan | Abbott (ABT) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 2.83% over the past month. This has lagged the Medical sector's gain of 3.23% and the S&P 500's gain of 3.76% in that time.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. In that report, analysts expect Abbott to post earnings of $1.48 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.76 billion, up 2.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $40.56 billion. These totals would mark changes of -7.68% and -5.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% higher. Abbott is currently a Zacks Rank #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.75. This valuation marks a premium compared to its industry's average Forward P/E of 23.93.
Meanwhile, ABT's PEG ratio is currently 3.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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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. | Abbott (ABT) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.18. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.18. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.18. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed the most recent trading day at $119.99, moving +0.87% from the previous trading session. Meanwhile, ABT's PEG ratio is currently 3.18. Abbott Laboratories (ABT): Free Stock Analysis Report |
31735.0 | 2022-03-28 00:00:00 UTC | Abbott's (ABT) CGM Device Gets MHLW Nod for Expanded Coverage | ABT | https://www.nasdaq.com/articles/abbotts-abt-cgm-device-gets-mhlw-nod-for-expanded-coverage | nan | nan | Abbott Laboratories ABT has gained approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) to expand the reimbursement coverage for its FreeStyle Libre system to include all people with diabetes who require insulin at least once a day. The reimbursement expansion for the continuous glucose monitoring (CGM) system is anticipated to take effect on Apr 1, 2022.
The expanded reimbursement coverage was granted based on the overall value proposition of FreeStyle Libre, which considered ease-of-use and scientific evidence demonstrating the clinical benefits of utilizing the FreeStyle Libre system among patients taking self-injections of insulin. With the expanded coverage, more diabetes patients will get the glucose data required to manage their condition without using the routine fingersticks related to traditional blood glucose monitoring.
The latest MHLW approval of the expanded coverage for the FreeStyle Libre system is likely to bolster Abbott's diabetes care business.
More on the News
The expanded reimbursement coverage for the FreeStyle Libre system will provide healthcare professionals with CGM information and actionable insights for diabetes patients. Previously, these data and insights were available to only a limited number of patients requiring multiple daily insulin injections. This would help patients form a better understanding and control of their diabetes based on glucose fluctuation through continuous monitoring, leading to better management of their overall condition and lowering the risks of diabetes-related complications.
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Per management, the FreeStyle Libre system has been designed with access and affordability in mind. The FreeStyle Libre systems provide a complete and comprehensive glucose picture, eliminating the need for routine fingersticks. The technology helps facilitate behavior change, allowing people to live better and more fulfilling lives.
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 substantial market prospects, the expanded coverage for the FreeStyle Libre system comes at an opportune time.
Other Notable Developments
In February 2022, Abbott gained FDA approval for an expanded indication for its CardioMEMS HF System to support the care of heart failure patients. The CardioMEMS sensor acts as an early warning system for doctors, enabling them to treat worsening heart failure. It has been found to reduce hospitalizations for patients with later-stage heart disease when utilized in monitoring for signs of worsening heart failure.
In January 2022, the company announced the receipt of the FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology. The new system is available in the United States and across Europe, and is intended to assist physicians in better treating cardiac arrhythmias. It offers a highly detailed three-dimensional maps of the heart to aid physicians in detecting and treating areas of the heart where abnormal rhythms originate.
In the same month, the company received FDA approval with its Proclaim XR spinal cord stimulation system for people with chronic pain. This time, the regulatory body has approved an expanded magnetic resonance imaging compatibility for the Proclaim XR platform with Octrode leads. The approval will augment Abbott’s Neuromodulation arm.
Share Price Performance
The stock has outperformed its industry over the past year. It has declined 2.7% against the industry’s 16.8% 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 Henry Schein, Inc. HSIC, AMN Healthcare Services, Inc. AMN and McKesson Corporation MCK.
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has outperformed the industry over the past year. HSIC has gained 26% compared with the industry’s 7.6% rise over the past year.
AMN Healthcare has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. It currently flaunts a Zacks Rank #1.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 38.5% versus the 53.5% industry decline.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2 (Buy).
McKesson has outperformed the industry over the past year. MCK has gained 58.4% in the said period compared with 7.6% growth of the industry.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
McKesson Corporation (MCK): Free Stock Analysis Report
Henry Schein, Inc. (HSIC): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT has gained approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) to expand the reimbursement coverage for its FreeStyle Libre system to include all people with diabetes who require insulin at least once a day. Abbott Laboratories (ABT): Free Stock Analysis Report This would help patients form a better understanding and control of their diabetes based on glucose fluctuation through continuous monitoring, leading to better management of their overall condition and lowering the risks of diabetes-related complications. | Abbott Laboratories ABT has gained approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) to expand the reimbursement coverage for its FreeStyle Libre system to include all people with diabetes who require insulin at least once a day. Abbott Laboratories (ABT): Free Stock Analysis Report A few better-ranked stocks in the broader medical space are Henry Schein, Inc. HSIC, AMN Healthcare Services, Inc. AMN and McKesson Corporation MCK. | Abbott Laboratories ABT has gained approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) to expand the reimbursement coverage for its FreeStyle Libre system to include all people with diabetes who require insulin at least once a day. Abbott Laboratories (ABT): Free Stock Analysis Report The expanded reimbursement coverage was granted based on the overall value proposition of FreeStyle Libre, which considered ease-of-use and scientific evidence demonstrating the clinical benefits of utilizing the FreeStyle Libre system among patients taking self-injections of insulin. | Abbott Laboratories ABT has gained approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) to expand the reimbursement coverage for its FreeStyle Libre system to include all people with diabetes who require insulin at least once a day. Abbott Laboratories (ABT): Free Stock Analysis Report The latest MHLW approval of the expanded coverage for the FreeStyle Libre system is likely to bolster Abbott's diabetes care business. |
31736.0 | 2022-03-26 00:00:00 UTC | Have $1,000? 2 Warren Buffett Stocks to Buy | ABT | https://www.nasdaq.com/articles/have-%241000-2-warren-buffett-stocks-to-buy-0 | nan | nan | Whether you're an investor just starting out or one who might have a limited budget, it's a good practice to invest an amount that you're willing to be without in the short term so that you can build for the long term. If $1,000 is that mark for you, these two Warren Buffett-backed stocks could provide the foundation you want for your long-term investment strategy.
AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. They also carry a special characteristic that is shared by 63% of the stocks owned by Buffett in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
Image source: Getty Images.
AbbVie: Building a pipeline to keep revenue flowing
AbbVie is one of the smallest holdings in Buffett's Berkshire Hathaway portfolio, at only 0.1% of the portfolio's total holdings. But that's the only thing small about this leading innovator in biopharmaceuticals that has seen its stock price grow 53% over the past year -- crushing the S&P 500's 14.7% one-year return.
AbbVie has experienced strong growth of its best-selling drug, Humira, which helped the company realize a 22.7% increase in net revenue in 2021. That growth is expected to continue with an 8% increase in sales for Humira during 2022, but could come to a screeching slowdown in 2023. The company estimates a 45% erosion in sales as a result of biosimilar competition entering the U.S. market on the heels of an expiring patent, with a rebound not expected to happen until 2024.
To offset those losses, the company is depending on a spike in sales of two potential successors to Humira, Rinvoq and Skyrizi. Together these two medications brought in a combined $4.5 billion in 2021 and are expected to reach $15 billion in 2025. AbbVie is also seeing positive results from its Allergan acquisition in 2020, which netted the company Botox, contributing nearly $5 billion to total sales in 2021.
Going forward, the company has high expectations for a post-COVID rebound in sales of two leading cancer treatment drugs, as well as a pipeline of late-stage programs in cancer treatment. In total, the company has 13 drugs in phase 3 trials across immunology, neuroscience, eye care, oncology, and gastroenterology. Some of these drugs are already approved for certain indications, which could lead to a smoother path toward approval by the U.S. Food and Drug Administration.
AbbVie also offers a quarterly dividend that can help keep investors engaged during times of trouble. If you include the time before AbbVie was spun off from Abbott Laboratories, the company has been increasing its annual dividend for 50 years, placing it among the elite class of Dividend Kings. At the current share price, the stock's annual payout of $5.64 per share results in yield of 3.5%. Over the long term, this can be quite a hefty sum due to compounding gains.
A robust pipeline of drugs combined with a hefty dividend yield of 3.5% that leads most of its big-cap pharma peers makes AbbVie a Buffett-backed stock I'd see no problem investing $1,000 in.
Verizon: Checking off boxes to keep investors satisfied
Verizon ranks ninth in Buffett's Berkshire Hathaway portfolio of 47 stocks in terms of portfolio holding and total value. But the company's investors have not been exempt from the broader market volatility that has impacted tech stocks, as Verizon's stock price has seen a 15% decline since May of last year.
Fortunately, CEO Hans Vestberg, who came on board in 2018 after a stint as chief technology officer, has a clear plan in place that could trigger a rebound. It includes reducing the company's capital intensity to under 12%, growing dividends, paying down debt, and speeding up a timeline for share repurchases.
Boxes are already being checked off for that plan. Verizon's Q4 report highlighted a 6.5% year-over-year growth in wireless services revenue, driven by higher revenue per account, meaning existing customers are spending more. Growth is also coming from an increase in subscriptions for wireless and broadband. FiOS (its bundled service for internet, cable, and telephone) finished Q4 of last year with a 5.7% year-over-year spike in revenue, allowing the company to post its best full-year performance for FiOS since 2014.
The company expects to check off a few more boxes during 2022, starting with a continued quarterly dividend payout of $0.64 per share, to be paid on May 2 to investors of record on April 8. This represents a 5% dividend yield, topping the telecom sector average of 4.36%.
By year-end, the company is looking to complete an accelerated plan to bring 5G ultra wideband service to an additional 30 major markets serving over 175 million people -- a full year ahead of schedule. And while doing so, Vestberg has his eyes on reducing capital expenditures 9% to $16.5 billion.
If 2022 goes according to plan, the company is projecting full-year earnings per share that just slightly tops Wall Street estimates. Management is also looking for 9% to 10% growth in services revenue. Ultimately, Verizon's technological advancements should lead to new revenue, supported by acquisitions in the telecom space and collaborations with companies such as Meta Platforms (formerly Facebook) as the two work toward building out the immersive digital world referred to as the metaverse.
Verizon investors should stand to gain from continued dividends and a wireless market that is projected to grow at a 15.4% compound annual rate through 2027. The company's shares currently trade at a P/E ratio of 9.6, far below the wireless telecom industry average of 30. All in all, Verizon is an excellent opportunity for long-term investors who are looking for somewhere to invest $1,000.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeff Little has no position in any of the stocks mentioned. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Meta Platforms, Inc. The Motley Fool recommends Verizon Communications and 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. | A robust pipeline of drugs combined with a hefty dividend yield of 3.5% that leads most of its big-cap pharma peers makes AbbVie a Buffett-backed stock I'd see no problem investing $1,000 in. By year-end, the company is looking to complete an accelerated plan to bring 5G ultra wideband service to an additional 30 major markets serving over 175 million people -- a full year ahead of schedule. Ultimately, Verizon's technological advancements should lead to new revenue, supported by acquisitions in the telecom space and collaborations with companies such as Meta Platforms (formerly Facebook) as the two work toward building out the immersive digital world referred to as the metaverse. | AbbVie (NYSE: ABBV) and Verizon Communications (NYSE: VZ) offer innovative products in growing markets, combined with a strategy that withstands market volatility, to reward investors with long-term gains. Verizon: Checking off boxes to keep investors satisfied Verizon ranks ninth in Buffett's Berkshire Hathaway portfolio of 47 stocks in terms of portfolio holding and total value. The Motley Fool recommends Verizon Communications and 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). | Verizon: Checking off boxes to keep investors satisfied Verizon ranks ninth in Buffett's Berkshire Hathaway portfolio of 47 stocks in terms of portfolio holding and total value. But the company's investors have not been exempt from the broader market volatility that has impacted tech stocks, as Verizon's stock price has seen a 15% decline since May of last year. The Motley Fool recommends Verizon Communications and 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). | AbbVie is also seeing positive results from its Allergan acquisition in 2020, which netted the company Botox, contributing nearly $5 billion to total sales in 2021. And while doing so, Vestberg has his eyes on reducing capital expenditures 9% to $16.5 billion. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Meta Platforms, Inc. |
31737.0 | 2022-03-25 00:00:00 UTC | Top Research Reports for Alphabet, Abbott, & Charles Schwab | ABT | https://www.nasdaq.com/articles/top-research-reports-for-alphabet-abbott-charles-schwab | nan | nan | Friday, March 25, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Abbott Laboratories (ABT) and The Charles Schwab Corporation (SCHW). 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 Alphabet have outperformed the Zacks Internet - Services industry over the past year (+39.8% vs. +17.8%) on the back of solid momentum across search, advertising, cloud and YouTube businesses. Further, the growing proliferation of consumer online activities and rising advertiser spending remained tailwinds.
Alphabet's robust cloud division continues to be the key catalyst. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results. Moreover, Google’s mobile search is constantly gaining solid traction. Also, strong focus on AI techniques and the home automation space should aid business growth in the long term. Yet, its growing litigation issues remain concerns.
(You can read the full research report on Alphabet here >>>)
Abbott shares have declined -2% over the past year against the Zacks Medical - Products industry’s decline of -7.3%. However, Abbott did post better-than-expected earnings and revenue numbers for the fourth quarter of 2021. Barring Neuromodulation (a 7.5% year-over-year decline), the company registered organic sales growth across all its operating segments.
The Zacks analyst believes that COVID-19 testing-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Within the Diabetes Care business, 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.
However, the company’s projection indicates a fall in COVID testing revenues through the later part of 2022. Year-over-year drop in Neuromodulation sales was concerning.
(You can read the full research report on Abbott here >>>)
Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past year (+39.3% vs. +7.6%). The Zacks analyst believes that strategic acquisitions have reinforced Schwab's position as a leading brokerage player. The same will likely be accretive to earnings. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues.
Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value. However, despite expectations of a few rate hikes, relatively lower interest rates will likely keep hurting margins in the near term. Elevated operating expenses might hamper the company's bottom-line growth to an extent.
(You can read the full research report on Charles Schwab here >>>)
Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), Canadian National Railway Company (CNI) and Air Products and Chemicals, Inc. (APD).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Abbott Thrives on COVID-19 Testing Amid Forex Woes
Buyouts, Trading Focus Aid Schwab (SCHW), Higher Costs A Woe
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The Zacks analyst is impressed with Canadian National's low debt levels. However, rising fuel costs are hurting bottom-line growth.
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Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. Also, improving fees and commissions should drive organic revenue growth.
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The Zacks analyst believes that Sonoco will benefit from strong demand in many of its key end market as well as strong price and cost recovery across most of its businesses.
High Demand & Online Strength Aids Nordstrom's (JWN) Top Line
Per the Zacks analyst, Nordstrom has been gaining from solid demand for apparel and footwear as well as robust digital traffic in both Nordstrom and Nordstrom Rack. As a result, sales grew 23% in Q4.
New Downgrades
High Fuel Costs, Reduced Capacity Hurt Alaska Air (ALK)
The Zacks analyst is concerned about escalating fuel prices, which have the potential to hurt Alaska Air's bottom line. Additionally, reduced capacity is pushing up the company's unit costs.
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With no marketed drugs, Prothena is highly dependent on its pipeline candidates which are still several years from commercialization. The Zacks Analyst feels concerns for any development setback.
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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. | Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Abbott Laboratories (ABT) and The Charles Schwab Corporation (SCHW). Abbott Laboratories (ABT): Free Stock Analysis Report You can see all of today’s research reports here >>> Shares of Alphabet have outperformed the Zacks Internet - Services industry over the past year (+39.8% vs. +17.8%) on the back of solid momentum across search, advertising, cloud and YouTube businesses. | Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Abbott Laboratories (ABT) and The Charles Schwab Corporation (SCHW). Abbott Laboratories (ABT): Free Stock Analysis Report Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), Canadian National Railway Company (CNI) and Air Products and Chemicals, Inc. (APD). | Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Abbott Laboratories (ABT) and The Charles Schwab Corporation (SCHW). Abbott Laboratories (ABT): Free Stock Analysis Report You can see all of today’s research reports here >>> Shares of Alphabet have outperformed the Zacks Internet - Services industry over the past year (+39.8% vs. +17.8%) on the back of solid momentum across search, advertising, cloud and YouTube businesses. | Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Abbott Laboratories (ABT) and The Charles Schwab Corporation (SCHW). Abbott Laboratories (ABT): Free Stock Analysis Report Project Investments, Productivity to Aid Air Products (APD) While Air Products faces headwinds from higher power and fuel costs, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst. |
31738.0 | 2022-03-23 00:00:00 UTC | Is DexCom a Buy? | ABT | https://www.nasdaq.com/articles/is-dexcom-a-buy | nan | nan | Medical device companies can be excellent investments thanks to their unique mix of innovation-driven development, solid margins, and massive appreciation potential. Still, investors would do well to avoid businesses that feature some of the industry's bugbears like indebtedness, overly high valuations, and small addressable markets.
On that note, DexCom (NASDAQ: DXCM) has some of the trappings that can make for a winner. Its returns have crushed the market over the last five years, with its shares rising by more than 487% against the market's rise of nearly 106%. Could it repeat this feat in the future? In my view, it's possible, but that doesn't necessarily make it the right stock for everyone.
Image source: Getty Images.
Why this stock might be a good pick for your portfolio
To appreciate why this company is worth considering for purchase, it's key to understand its product: continuous glucose monitors (CGMs). DexCom's CGMs help people with type 2 diabetes to measure and therefore regulate their body's glucose levels. Using a CGM instead of a traditional pin-prick blood test is preferable for several reasons, starting with patient comfort.
People who wear the company's disposable CGMs don't need to repeatedly poke themselves to keep their blood glucose levels in their target range. Plus, CGMs take more measurements than someone with a finger prick test would be willing to do throughout the day, which means that patients get alerted to issues sooner than they would otherwise. And they might even be saving money on insulin by using one of the company's CGMs, too.
Obviously, those benefits are appealing enough to attract new customers in droves. Over the last five years, its annual sales have ballooned 241%, and in 2022 management expects to bring in as much as $2.9 billion.
There's no guarantee of an encore, but investors can take heart that the company is still operating with the same successful business model as before. In fact, there's a strong argument to be made that it's actually becoming more efficient with that business model over time, which is appealing.
Over the last three years, its annual cost of goods sold (COGS) and its selling, general, and administrative (SG&A) expenses have both fallen as a share of annual revenue, which drove its total expenses to also shrink as a proportion of sales. In the same period, its annual investments in research and development (R&D) grew significantly as a percentage of revenue, suggesting that management is judiciously using the cost savings to reinvest for future growth.
DXCM Cost of Goods Sold (% of Annual Revenues) data by YCharts
And all of the above are big green flags for investors.
Don't overlook competitors and valuation risks
The bear case against DexCom is that it's competing in an increasingly crowded industry that includes significantly more powerful competitors.
For example, healthcare giant Abbott Laboratories is making headway into the market for CGMs as are many others. Though it has the benefit of focusing entirely on CGMs rather than other medical devices like some of its adversaries, DexCom still faces a fight for market share once the market is saturated. Given that management is expecting its total addressable market (TAM) of eligible patients to triple by the second half of 2023, however, saturation probably isn't coming soon.
Nonetheless, with its narrow profit margin of 6.3%, there isn't much slack for management to work with to actually win the market share fight when it occurs. But there's always the hope of the margin improving in the next few years -- once the company concludes the manufacturing scale-up of its latest CGM.
The other trouble with this stock is that its valuation is currently in the stratosphere. Its price-to-earnings (P/E) ratio is above 293, putting it massively higher than the industry's average of about 42. In one sense, that's a plus because it means the market has high expectations for the company's growth.
For price-sensitive investors, such a high multiple is a dealbreaker. And even for those who prefer to chase growth stocks, multiples that high are a major red flag as they leave the stock vulnerable to a collapse in the event of a flight to value. At its current valuation, even a relatively minor earnings miss might leave a few serious dents in your investment.
Therefore, while I've taken more than one stance in favor of purchasing the stock in the past, it's valued too expensively for me at the moment.
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Alex Carchidi owns Abbott Laboratories. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Medical device companies can be excellent investments thanks to their unique mix of innovation-driven development, solid margins, and massive appreciation potential. Why this stock might be a good pick for your portfolio To appreciate why this company is worth considering for purchase, it's key to understand its product: continuous glucose monitors (CGMs). In the same period, its annual investments in research and development (R&D) grew significantly as a percentage of revenue, suggesting that management is judiciously using the cost savings to reinvest for future growth. | Over the last three years, its annual cost of goods sold (COGS) and its selling, general, and administrative (SG&A) expenses have both fallen as a share of annual revenue, which drove its total expenses to also shrink as a proportion of sales. DXCM Cost of Goods Sold (% of Annual Revenues) data by YCharts And all of the above are big green flags for investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Though it has the benefit of focusing entirely on CGMs rather than other medical devices like some of its adversaries, DexCom still faces a fight for market share once the market is saturated. And even for those who prefer to chase growth stocks, multiples that high are a major red flag as they leave the stock vulnerable to a collapse in the event of a flight to value. 10 stocks we like better than DexCom When our award-winning analyst team has a stock tip, it can pay to listen. | In the same period, its annual investments in research and development (R&D) grew significantly as a percentage of revenue, suggesting that management is judiciously using the cost savings to reinvest for future growth. Though it has the benefit of focusing entirely on CGMs rather than other medical devices like some of its adversaries, DexCom still faces a fight for market share once the market is saturated. That's right -- they think these 10 stocks are even better buys. |
31739.0 | 2022-03-23 00:00:00 UTC | FDA probe of Abbott facility finds quality control issues | ABT | https://www.nasdaq.com/articles/fda-probe-of-abbott-facility-finds-quality-control-issues-0 | nan | nan | Changes dateline, adds Abbott's response
March 23 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria called Cronobacter sakazakii on the surface of some areas producing its powdered baby formula, the U.S. health regulator said on Tuesday.
Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA).
The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula.
Personnel working with infant formula also did not wear necessary protective apparel, the FDA said.
"We're taking this very seriously and are working closely with the FDA to implement corrective actions," Abbott said in a statement.
No Cronobacter sakazakii was found during the company's testing of products that were distributed to consumers, Abbott added.
The company also said that the genetic makeup of the Cronobacter sakazakii found at the Michigan plant did not match that of the reported cases.
Cronobacter sakazakii bacteria can cause serious invasive infections and premature infant death.
(Reporting by Manojna Maddipatla and Mrinalika Roy in Bengaluru; Editing by Devika Syamnath and Amy Caren Daniel)
((manojna.kalyani@thomsonreuters.com; +91 8061822700;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Changes dateline, adds Abbott's response March 23 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria called Cronobacter sakazakii on the surface of some areas producing its powdered baby formula, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula. | Changes dateline, adds Abbott's response March 23 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria called Cronobacter sakazakii on the surface of some areas producing its powdered baby formula, the U.S. health regulator said on Tuesday. The company also said that the genetic makeup of the Cronobacter sakazakii found at the Michigan plant did not match that of the reported cases. Cronobacter sakazakii bacteria can cause serious invasive infections and premature infant death. | Changes dateline, adds Abbott's response March 23 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria called Cronobacter sakazakii on the surface of some areas producing its powdered baby formula, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). No Cronobacter sakazakii was found during the company's testing of products that were distributed to consumers, Abbott added. | Changes dateline, adds Abbott's response March 23 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria called Cronobacter sakazakii on the surface of some areas producing its powdered baby formula, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula. |
31740.0 | 2022-03-22 00:00:00 UTC | FDA probe of Abbott facility finds quality control issues | ABT | https://www.nasdaq.com/articles/fda-probe-of-abbott-facility-finds-quality-control-issues | nan | nan | March 22 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria on surfaces in some areas of its powdered baby formula production, the U.S. health regulator said on Tuesday.
The bacteria, Cronobacter sakazakii, can cause severe foodborne illness in mainly infants.
Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA).
The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula.
Personnel working with infant formula also did not wear necessary protective apparel, the FDA said.
The observations raised are not final and the company can take corrective measures to address the issues raised, according to the agency.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Devika Syamnath)
((manojna.kalyani@thomsonreuters.com; +91 8061822700;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 22 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria on surfaces in some areas of its powdered baby formula production, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula. | March 22 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria on surfaces in some areas of its powdered baby formula production, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula. | March 22 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria on surfaces in some areas of its powdered baby formula production, the U.S. health regulator said on Tuesday. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). The inspection from Jan. 31 to March 18 showed that Abbott did not have a control system covering all stages of processing to prevent microbe contamination of infant formula. | March 22 (Reuters) - An inspection at the Abbott Laboratories ABT.N facility in Sturgis, Michigan found a harmful bacteria on surfaces in some areas of its powdered baby formula production, the U.S. health regulator said on Tuesday. The bacteria, Cronobacter sakazakii, can cause severe foodborne illness in mainly infants. Complaints that the facility's products had caused bacterial infections forced Abbott to recall certain Alimentum, Similac and EleCare baby formulas last month, prompting a probe from the U.S. Food and Drug Administration (FDA). |
31741.0 | 2022-03-22 00:00:00 UTC | Want to Beat the Market? 2 Stocks to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/want-to-beat-the-market-2-stocks-to-buy-and-hold-forever | nan | nan | Equity markets attract a variety of people with very different investing approaches. One thing many of them do have in common, though, is their desire to outperform the broader market. Doing so isn't an easy task, but history suggests that the buy-and-hold strategy is one of the best ways to beat the market.
Keeping shares of great companies through thick and thin allows both time and compounding to work their magic. On that note, let's look at two excellent stocks that are worth holding onto for a long time: Abbott Laboratories (NYSE: ABT) and Airbnb (NASDAQ: ABNB).
1. Abbott Laboratories
Medical devices giant Abbott Laboratories has been a leader in its industry for decades. While past performance isn't a guarantee of future success, the company's expertise in the highly regulated healthcare sector shouldn't be overlooked. It takes jumping through various clinical and regulatory hoops before earning clearance for medical devices.
And that's not counting the fact that developing these machines is highly capital-intensive. These barriers to entry ensure that established leaders like Abbott are likely to remain at the top for a while. To that end, the company boasts several products that can keep driving top-line growth. Within its structural heart unit, Abbott Labs markets the MitraClip, a minimally invasive option for the treatment of mitral regurgitation (when the heart's mitral valve fails to close properly).
Let's look at one example. Last year, the U.S. Centers for Medicare & Medicaid Services (CMS) expanded coverage for the MitraClip, thereby significantly expanding the number of people who will benefit from it.
Image source: Getty Images.
There are about 4 million people in the country who suffer from mitral regurgitation. The MitraClip was first used in 2003 -- initially outside the U.S. and since 2013 in the U.S. -- and it has since helped treat approximately 100,000 patients through 2020. Yet, there remains a significant market opportunity for this leading device. Last year, sales by Abbott's structural heart division increased 29.1% year over year to $1.6 billion.
Another exciting product for the company is the FreeStyle Libre, a continuous glucose monitoring (CGM) device to help diabetes patients keep track of their blood glucose levels. Last year, sales of Abbott's diabetes care segment grew by 32.5% year over year to $4.3 billion. The FreeStyle Libre accounted for $3.7 billion of that amount.
CGM technology helps diabetes patients achieve better health outcomes, such as reduced hemoglobin A1C levels. That, coupled with the fact that the proportion of diabetes patients is projected to continue growing, should be a tailwind for Abbott Laboratories' FreeStyle Libre. The company's other segments, including diagnostics, nutrition, and established pharmaceuticals, are also performing well and help diversify its top line.
The company's total revenue for 2021 was $43.1 billion, 24.5% higher than 2020. The healthcare giant's adjusted earnings per share jumped by 42.7% to $5.21. Overall, Abbott's business looks healthy enough to continue performing well for many years to come.
2. Airbnb
There is no doubt that the COVID-19 pandemic initially harmed Airbnb's business. Home rentals weren't as popular at the peak of the outbreak when people were stuck in their houses, trying to avoid catching and spreading the disease. But there is one development that happened amid all this chaos that was arguably good for Airbnb: The rise of remote work.
More people than ever can work away from the office, allowing them to travel more often. While on the road, they need a home away from home, which is precisely what Airbnb offers. The company's rental options are often cheaper and more convenient than traditional hotels. And Airbnb is looking to ensure that its clients book longer stays. According to the company's CEO, Brian Chesky:
Every length of stay on Airbnb is going up, whether it's two nights, three nights, a week, a month, or a season, all lengths of stay except for single nights are up on Airbnb. And we want to design for this new world by making it even easier for guests to live on Airbnb.
In the fourth quarter of 2021, about half of the company's bookings were for a week or longer. About 20% were for a month or longer. These trends bode well for the company's future. Airbnb once estimated its total addressable market to be worth roughly $3.4 trillion. The company is merely scratching the surface of this opportunity, and even grabbing a small slice of it will help it increase its revenue and profits for many years to come.
In 2021, Airbnb's top line grew by 77% year over year to $6 billion. The company's revenue also increased by 25% compared to 2019, a year that was not impacted by the pandemic. Airbnb's net loss of $352 million for the year was better than the loss of $4.6 billion it reported in 2020 as well as the loss of $674 million recorded in 2019.
Once the pandemic subsides for good, expect bookings to continue growing for the company. The company had 300.6 million bookings last year, a 56% year-over-year increase but an 8% decrease compared to 2019. Once Airbnb's business fully recovers, revenue will soar even more, and the company will eventually turn green on the bottom line. Given Airbnb's long-term opportunity, it'd be wise to hold shares of this company for a long time.
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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. | On that note, let's look at two excellent stocks that are worth holding onto for a long time: Abbott Laboratories (NYSE: ABT) and Airbnb (NASDAQ: ABNB). That, coupled with the fact that the proportion of diabetes patients is projected to continue growing, should be a tailwind for Abbott Laboratories' FreeStyle Libre. Home rentals weren't as popular at the peak of the outbreak when people were stuck in their houses, trying to avoid catching and spreading the disease. | On that note, let's look at two excellent stocks that are worth holding onto for a long time: Abbott Laboratories (NYSE: ABT) and Airbnb (NASDAQ: ABNB). Abbott Laboratories Medical devices giant Abbott Laboratories has been a leader in its industry for decades. Last year, sales by Abbott's structural heart division increased 29.1% year over year to $1.6 billion. | On that note, let's look at two excellent stocks that are worth holding onto for a long time: Abbott Laboratories (NYSE: ABT) and Airbnb (NASDAQ: ABNB). Last year, sales by Abbott's structural heart division increased 29.1% year over year to $1.6 billion. Last year, sales of Abbott's diabetes care segment grew by 32.5% year over year to $4.3 billion. | On that note, let's look at two excellent stocks that are worth holding onto for a long time: Abbott Laboratories (NYSE: ABT) and Airbnb (NASDAQ: ABNB). While past performance isn't a guarantee of future success, the company's expertise in the highly regulated healthcare sector shouldn't be overlooked. That, coupled with the fact that the proportion of diabetes patients is projected to continue growing, should be a tailwind for Abbott Laboratories' FreeStyle Libre. |
31742.0 | 2022-03-22 00:00:00 UTC | Is There A Better Pick Over Owens & Minor Stock? | ABT | https://www.nasdaq.com/articles/is-there-a-better-pick-over-owens-minor-stock | nan | nan | We think that Intuit stock (NASDAQ: INTU), a company that specializes in financial and tax preparation software, currently is a better pick compared to medical devices maker Owens & Minor stock (NYSE: OMI), a global healthcare logistics company, despite INTU being more expensive of the two with its P/S ratio of 11.0x, compared to just 0.3x for OMI. We compare these two companies due to their similar revenue base. Although both the companies saw a rise in revenue over the last twelve months, the growth has been much better for Intuit.
If we look at stock returns, Owens & Minor’s 23% growth is slightly behind the 28% for Intuit over the last year. This compares with 13% growth in the broader S&P 500 index. While both the companies are likely to see continued top-line expansion, Intuit is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that INTU stock will offer better returns over OMI 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 Owens & Minor vs. Intuit: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuit’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Intuit has witnessed comparatively faster revenue growth of 48% vs. just 13% for Owens & Minor. The Credit Karma acquisition buoyed Intuit’s LTM revenue growth.
Looking at a longer time frame, Intuit’s sales grew at a CAGR of 17.1% to $11.4 billion over the last twelve months, compared to $6.8 billion in fiscal 2019, while Owens & Minor’s revenues have risen at a CAGR of 1.8% to $9.8 billion currently from $9.4 billion in 2018.
For Owens & Minor, the revenue growth has been buoyed by sales of its surgical and infection prevention products and better gloves pricing. With the rise in elective surgeries post-pandemic, the company can look forward to seeing an uptick in demand for its products, largely offsetting the expected decline from lower sales of PPE in the near term.
The company plans to acquire Apria Inc., a home healthcare equipment and services provider, in a deal valued at $1.6 billion. Once approved, this will further bolster Owens & Minor’s top-line growth. Apria generated revenue of $1.1 billion over the last twelve-month period, compared to nearly $10.0 billion in revenue for Owens & Minor.
For Intuit, the strong revenue growth over the recent past can be attributed to more people and small businesses opting to file tax returns on their own rather than visiting an accountant, especially since the beginning of the Covid-19 pandemic. Furthermore, in Q2FY21, the company acquired Credit Karma (now a separate reportable segment), which garnered $416 million revenue in Q1FY22. The segment offers personalized recommendations of credit card, home, auto, and personal loans, and insurance products, among others, to its customers. It generates revenue from cost-per-action transactions related to credit card issuances and private loan funding.
Our Owens & Minor Revenue and Intuit Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Intuit’s revenue is expected to grow at a faster pace compared to Owens & Minor 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 12.0% for Intuit, compared to a 1.6% CAGR for Owens & Minor, 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 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. Intuit Is More Profitable, And It Offers Lower Risk
Intuit’s operating margin of 22.5% over the last twelve months is much better than 3.0% for Owens & Minor.
Historically, Intuit’s operating margins have been superior to Owens & Minor’s. Its operating margin declined from 27.3% in fiscal 2017 to 22.5% currently, while Owens & Minor’s operating margin rose from -3.0% in 2018 to 3.3% now. Our Owens & Minor Operating Income and Intuit Operating Income dashboards have more details.
Intuit’s free cash flow margin of 27.7% is higher than 1.0% for Owens & Minor.
Looking at financial risk, Intuit is much better placed than Owens & Minor. Intuit’s 5.1% debt as a percentage of equity is much lower than 29.1% for Owens & Minor, while its 5.7% cash as a percentage of assets is higher than 1.6% for the latter, implying that Intuit has a better debt position and cash cushion.
3. The Net of It All
We see that Intuit has demonstrated better revenue growth and profitability over Owens & Minor over the last few years, and it comes at a lower financial risk. However, the latter is available at a relatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe INTU is currently the better choice of the two.
The table below summarizes our revenue and return expectation for Owens & Minor and Intuit over the next three years and points to an expected return of 33% for INTU over this period vs. -25% expected return for OMI stock, implying that investors are better off buying INTU over OMI, based on Trefis Machine Learning analysis – Owens & Minor vs. Intuit – which also provides more details on how we arrive at these numbers.
While INTU stock may outperform OMI, 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? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
OMI Return 2% 3% 27%
INTU Return -3% -29% 300%
S&P 500 Return 0% -9% 95%
Trefis MS Portfolio Return -1% -11% 249%
[1] Month-to-date and year-to-date as of 3/17/2022
[2] Cumulative total returns since the end of 2016
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See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Owens & Minor vs. Intuit: Which Stock Is A Better Bet? With the rise in elective surgeries post-pandemic, the company can look forward to seeing an uptick in demand for its products, largely offsetting the expected decline from lower sales of PPE in the near term. For Intuit, the strong revenue growth over the recent past can be attributed to more people and small businesses opting to file tax returns on their own rather than visiting an accountant, especially since the beginning of the Covid-19 pandemic. | It points to a CAGR of 12.0% for Intuit, compared to a 1.6% CAGR for Owens & Minor, based on Trefis Machine Learning analysis. Our Owens & Minor Operating Income and Intuit Operating Income dashboards have more details. The table below summarizes our revenue and return expectation for Owens & Minor and Intuit over the next three years and points to an expected return of 33% for INTU over this period vs. -25% expected return for OMI stock, implying that investors are better off buying INTU over OMI, based on Trefis Machine Learning analysis – Owens & Minor vs. Intuit – which also provides more details on how we arrive at these numbers. | We think that Intuit stock (NASDAQ: INTU), a company that specializes in financial and tax preparation software, currently is a better pick compared to medical devices maker Owens & Minor stock (NYSE: OMI), a global healthcare logistics company, despite INTU being more expensive of the two with its P/S ratio of 11.0x, compared to just 0.3x for OMI. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Owens & Minor vs. Intuit: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectation for Owens & Minor and Intuit over the next three years and points to an expected return of 33% for INTU over this period vs. -25% expected return for OMI stock, implying that investors are better off buying INTU over OMI, based on Trefis Machine Learning analysis – Owens & Minor vs. Intuit – which also provides more details on how we arrive at these numbers. | If we look at stock returns, Owens & Minor’s 23% growth is slightly behind the 28% for Intuit over the last year. Still, Intuit has witnessed comparatively faster revenue growth of 48% vs. just 13% for Owens & Minor. The table below summarizes our revenue and return expectation for Owens & Minor and Intuit over the next three years and points to an expected return of 33% for INTU over this period vs. -25% expected return for OMI stock, implying that investors are better off buying INTU over OMI, based on Trefis Machine Learning analysis – Owens & Minor vs. Intuit – which also provides more details on how we arrive at these numbers. |
31743.0 | 2022-03-21 00:00:00 UTC | Abbott (ABT) Dips More Than Broader Markets: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-dips-more-than-broader-markets%3A-what-you-should-know-0 | nan | nan | Abbott (ABT) closed at $121.76 in the latest trading session, marking a -0.56% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had gained 4.85% in the past month. In that same time, the Medical sector gained 6.41%, while the S&P 500 gained 2.67%.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. The company is expected to report EPS of $1.48, up 12.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.76 billion, up 2.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.81 per share and revenue of $40.56 billion, which would represent changes of -7.68% and -5.83%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Abbott. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.12% lower. Abbott is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 25.48. This valuation marks a premium compared to its industry's average Forward P/E of 23.27.
We can also see that ABT currently has a PEG ratio of 3.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $121.76 in the latest trading session, marking a -0.56% move from the prior day. We can also see that ABT currently has a PEG ratio of 3.28. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $121.76 in the latest trading session, marking a -0.56% move from the prior day. We can also see that ABT currently has a PEG ratio of 3.28. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $121.76 in the latest trading session, marking a -0.56% move from the prior day. We can also see that ABT currently has a PEG ratio of 3.28. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $121.76 in the latest trading session, marking a -0.56% move from the prior day. We can also see that ABT currently has a PEG ratio of 3.28. Abbott Laboratories (ABT): Free Stock Analysis Report |
31744.0 | 2022-03-21 00:00:00 UTC | Here's Why You Should Retain Abbott (ABT) Stock for Now | ABT | https://www.nasdaq.com/articles/heres-why-you-should-retain-abbott-abt-stock-for-now-1 | nan | nan | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its progress in the diabetes business. A solid fourth-quarter 2021 performance and high COVID-19 Testing demand are expected to contribute further. However, forex woes and tensions in China persist.
In the past year, this Zacks Rank #3 (Hold) stock has gained 0.8% against a 14.2% fall of the industry. The S&P 500 composite rose 13.5% in the same time frame.
The renowned provider of a diversified line of healthcare products has a market capitalization of $215.94 billion. The company projects 7.8% growth for the next five years compared with the industry’s growth of 16.8%.
Let’s delve deeper
Key Growth Catalysts
Progress With Diabetes Business: This business achieved organic sales growth of 28.3% in fourth-quarter 2021 led by strong growth in FreeStyle Libre, contributing 36% to organic sales growth in the quarter. FreeStyle Libre sales were $1 billion in the quarter.
In a relatively short span, Libre achieved global leadership among CGM systems for both Type 1 and Type 2 users. In 2020, the company received U.S. approval of Freestyle Libre 2 (an integrated continuous glucose monitoring or iCGM system for adults and children) and CE Mark for Libre 3(integrates Libre's accuracy and performance into the world's smallest fitness disposable sensor) and Libre Sense Glucose Sport.
Diagnostics Grow Strong Amid Pandemic: Diagnostics sales increased 2.9% (up 3.3% organically). With the spike in Omicron variant cases, particularly in the United States, demand for testing has increased significantly. In the fourth quarter, the company sold nearly 300 million COVID tests globally and delivered 1 billion tests in 2021. COVID testing sales were $2.3 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally, compromising approximately 90% of those sales.
Image Source: Zacks Investment Research
Strong Q4 Results: Abbott’s better-than-expected fourth-quarter 2021 results buoy optimism. The company recorded a year-over-year improvement in revenues. Abbott registered organic sales growth across all of its operating segments in the quarter. COVID-19 testing-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Within Adult Nutrition, the company gained from the strong performance of the Ensure and Glucerna brands.
Downsides
Tension in China Continues: Abbott, though trying to expand its nutrition business in emerging markets, is facing weaknesses in Greater China on challenging market dynamics. Especially in pediatric nutrition, the company is apprehensive about the new food safety regulations and a consequent oversupply of products in the market. Outside of China, the company is witnessing soft market conditions across a few international markets. This might continue hurting the top line in the upcoming quarter as well.
Foreign Exchange Translation Impacts Sales: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the Euro and some other developed market currencies have constantly been hampering the company’s performance in the international markets.
Estimate Trend
Abbott has been witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 3.2% north to $4.81.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $10.76 billion, suggesting a 2.9% uptick from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are McKesson Corporation MCK, AMN Healthcare Services, Inc. AMN and Bio-Rad Laboratories, Inc. BIO.
McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted EPS of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 55.4% compared with the industry’s 8.4% growth in the past year.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 38% versus the 54.9% industry decline.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
McKesson Corporation (MCK): Free Stock Analysis Report
BioRad Laboratories, Inc. (BIO): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its progress in the diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report Especially in pediatric nutrition, the company is apprehensive about the new food safety regulations and a consequent oversupply of products in the market. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its progress in the diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report Let’s delve deeper Key Growth Catalysts Progress With Diabetes Business: This business achieved organic sales growth of 28.3% in fourth-quarter 2021 led by strong growth in FreeStyle Libre, contributing 36% to organic sales growth in the quarter. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its progress in the diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report Let’s delve deeper Key Growth Catalysts Progress With Diabetes Business: This business achieved organic sales growth of 28.3% in fourth-quarter 2021 led by strong growth in FreeStyle Libre, contributing 36% to organic sales growth in the quarter. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its progress in the diabetes business. Abbott Laboratories (ABT): Free Stock Analysis Report FreeStyle Libre sales were $1 billion in the quarter. |
31745.0 | 2022-03-17 00:00:00 UTC | Want $1 Million in Retirement? Invest $150,000 in These 3 Stocks and Wait a Decade | ABT | https://www.nasdaq.com/articles/want-%241-million-in-retirement-invest-%24150000-in-these-3-stocks-and-wait-a-decade | nan | nan | The last decade before retirement is when many people put their wealth-building efforts into overdrive to get ready for their golden years. However, it's important to manage your risk carefully, as a catastrophic misstep could be hard to recover from when you're close to retirement.
Investing a large sum like $150,000 into each of these three healthcare names as part of a diversified portfolio could deliver enough growth to double or more over the coming decade, helping you secure the nest egg you need to retire comfortably. Remember, managing risk can be just as important as generating returns, especially as you approach retirement.
1. Pfizer
Pharmaceutical giant Pfizer (NYSE: PFE) has benefited from COVID-19 as one of the leading vaccine manufacturers. Its vaccine Comirnaty and oral COVID-19 pill Paxlovid are expected to contribute $32 billion and $22 billion, respectively, to management's 2022 revenue guidance of between $98 billion and $102 billion. This figure would represent a 26% increase over Pfizer's 2021 sales.
Image source: Getty Images.
However, the important part of this isn't the near-term windfall of cash but what it means for the company over the long term. Pharmaceutical companies live and die by their product pipelines, and Pfizer's nearly $30 billion in 2021 free cash flow gives the company a war chest of money for research and development that should buoy Pfizer's growth efforts, even after its revenues from COVID-19 treatments fade.
Analysts expect the company to grow its earnings-per-share (EPS) by more than 12% annually over the next three to five years, and Pfizer's large balance sheet should help the company fund its growth beyond that. Investors also get the benefit of a dividend that yields 3.2%, so the ingredients are there for total returns of 10% or higher per year, more than enough to double an investment over the next decade.
2. Abbott Labs
The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets.
Abbott is positioned to cater especially to the cardiology and diabetes fields, which are both fast-growing; heart disease and diabetes are among the most prevalent health conditions in the population. Abbott sells devices for them, including pacemakers, catheters, stents for cardiovascular applications, and a glucose monitoring system for diabetes patients. The company's revenue growth has picked up, growing more than 15% annually over the past five years.
This renewed growth could set the company to perform well over the next decade. Analysts believe Abbott will grow EPS an average of 10% annually over the next three to five years. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant.
3. UnitedHealth Group
Health insurance company UnitedHealth Group (NYSE: UNH) is one of the world's largest healthcare businesses, providing health insurance and other care services to more than 146 million people in the United States and around the world. Its insurance business is complemented by Optum, which provides healthcare products and services directly to consumers.
The company has done $285 billion in revenue over the past 12 months, and its $465 billion market cap makes it a core pillar of the healthcare industry as we know it. U.S. healthcare spending hit $4.1 trillion in 2020, increasing 9.7% over the previous year. It's likely that a lot of this growth was driven by COVID-19, but the prevalence of chronic conditions amid the population could drive growth for years to come. They account for more than $1 trillion in spending alone.
UnitedHealth Group just wrapped up its fiscal 2021 year, growing revenue 12% year over year, driven by double-digit growth in both of its insurance and Optum business segments. Analysts expect EPS to grow an average of nearly 15% annually over the next three to five years, giving investors all the ammunition they need to double their money over the next decade if this is accurate. The company's dividend offers a yield of 1.1% as an added bonus for shareholders.
10 stocks we like better than Pfizer
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*Stock Advisor returns as of March 3, 2022
Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets. Investing a large sum like $150,000 into each of these three healthcare names as part of a diversified portfolio could deliver enough growth to double or more over the coming decade, helping you secure the nest egg you need to retire comfortably. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant. | Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets. UnitedHealth Group Health insurance company UnitedHealth Group (NYSE: UNH) is one of the world's largest healthcare businesses, providing health insurance and other care services to more than 146 million people in the United States and around the world. UnitedHealth Group just wrapped up its fiscal 2021 year, growing revenue 12% year over year, driven by double-digit growth in both of its insurance and Optum business segments. | Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets. Pharmaceutical companies live and die by their product pipelines, and Pfizer's nearly $30 billion in 2021 free cash flow gives the company a war chest of money for research and development that should buoy Pfizer's growth efforts, even after its revenues from COVID-19 treatments fade. Analysts expect the company to grow its earnings-per-share (EPS) by more than 12% annually over the next three to five years, and Pfizer's large balance sheet should help the company fund its growth beyond that. | Today, Abbott Labs (NYSE: ABT) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets. Investors also get the benefit of a dividend that yields 3.2%, so the ingredients are there for total returns of 10% or higher per year, more than enough to double an investment over the next decade. The company's revenue growth has picked up, growing more than 15% annually over the past five years. |
31746.0 | 2022-03-17 00:00:00 UTC | This Software Company Is Likely To Offer Better Returns Over Boston Scientific Stock | ABT | https://www.nasdaq.com/articles/this-software-company-is-likely-to-offer-better-returns-over-boston-scientific-stock | nan | nan | We think that Intuit stock (NASDAQ: INTU), a company that specializes in financial and tax preparation software, currently is a better pick compared to medical devices maker Boston Scientific stock (NYSE: BSX), despite INTU being more expensive of the two with its P/S ratio of 11.2x, compared to 5.0x for BSX. We compare these two companies due to their similar revenue base. Although both the companies saw a rise in revenue over the last twelve months, the growth has been much better for Intuit.
If we look at stock returns, Intuit’s 11% growth is better than 6% for BSX over the last year. This compares with 6% growth in the broader S&P 500 index. While both the companies are likely to see continued top-line expansion, Intuit is expected to outperform. There is more to the comparison, and in the sections below, we discuss why we believe that INTU stock will offer better returns over BSX 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 Intuit vs. Boston Scientific: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Intuit’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Intuit has witnessed comparatively faster revenue growth of 48% vs. just 20% for Boston Scientific. The Credit Karma acquisition buoyed Intuit’s LTM revenue growth.
Looking at a longer time frame, Intuit’s sales grew at a CAGR of 17.1% to $11.4 billion over the last twelve months, compared to $6.8 billion in fiscal 2019, while Boston Scientific’s revenues have risen at a CAGR of 7.2% to $11.9 billion currently from $9.8 billion in 2018.
For Boston Scientific, the revenue growth has been buoyed by its Left Atrial Appendage Closure (LAAC) device – Watchman – which continues to gain market share driven by a higher physician utilization rate. However, it is expected to face increased competition from the likes of Abbott in the future.
For Intuit, the strong revenue growth over the recent past can be attributed to more people and small businesses opting to file tax returns on their own rather than visiting an accountant, especially since the beginning of the Covid-19 pandemic. Furthermore, in Q2FY21, the company acquired Credit Karma (now a separate reportable segment), which garnered $416 million revenue in Q1FY22. The segment offers personalized recommendations of credit card, home, auto, and personal loans, and insurance products, among others, to its customers. It generates revenue from cost-per-action transactions related to credit card issuances and private loan funding.
Our Boston Scientific Revenue and Intuit Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Intuit’s revenue is expected to grow at a faster pace compared to Boston Scientific 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 12.0% for Intuit, compared to a 6.5% CAGR for Boston Scientific, 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 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. Intuit Is More Profitable, And It Offers Lower Risk
Intuit’s operating margin of 22.5% over the last twelve months is much better than 10.9% for Boston Scientific.
Historically, Intuit’s operating margins have been superior compared to Boston Scientific. Its operating margin declined from 27.3% in fiscal 2017 to 22.5% currently, while Boston Scientific’s operating margin declined from 16.2% in 2018 to 10.9% now. Our Boston Scientific Operating Income and Intuit Operating Income dashboards have more details.
Intuit’s free cash flow margin of 27.7% is higher than 15.7% for Boston Scientific.
Looking at financial risk, Intuit is better placed than Boston Scientific. Intuit’s 5.4% debt as a percentage of equity is much lower than 13.6% for Boston Scientific, while its 5.7% cash as a percentage of assets is in-line with 6.0% for the latter, implying that Intuit has a better debt position and an equally good cash cushion.
3. The Net of It All
We see that Intuit has demonstrated better revenue growth and profitability over Boston Scientific over the last few years, and it comes at a lower financial risk. However, the latter is available at a relatively lower valuation.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe INTU is currently the better choice of the two.
The table below summarizes our revenue and return expectation for Boston Scientific and Intuit over the next three years and points to an expected return of 43% for INTU over this period vs. 9% expected return for BSX stock, implying that investors are better off buying INTU over BSX, based on Trefis Machine Learning analysis – Intuit vs. Boston Scientific – which also provides more details on how we arrive at these numbers.
While INTU stock may outperform BSX, 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? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
INTU Return -7% -32% 283%
BSX Return -6% -2% 93%
S&P 500 Return -4% -12% 88%
Trefis MS Portfolio Return -4% -14% 238%
[1] Month-to-date and year-to-date as of 3/14/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuit vs. Boston Scientific: Which Stock Is A Better Bet? For Boston Scientific, the revenue growth has been buoyed by its Left Atrial Appendage Closure (LAAC) device – Watchman – which continues to gain market share driven by a higher physician utilization rate. For Intuit, the strong revenue growth over the recent past can be attributed to more people and small businesses opting to file tax returns on their own rather than visiting an accountant, especially since the beginning of the Covid-19 pandemic. | It points to a CAGR of 12.0% for Intuit, compared to a 6.5% CAGR for Boston Scientific, 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. The table below summarizes our revenue and return expectation for Boston Scientific and Intuit over the next three years and points to an expected return of 43% for INTU over this period vs. 9% expected return for BSX stock, implying that investors are better off buying INTU over BSX, based on Trefis Machine Learning analysis – Intuit vs. Boston Scientific – which also provides more details on how we arrive at these numbers. | We think that Intuit stock (NASDAQ: INTU), a company that specializes in financial and tax preparation software, currently is a better pick compared to medical devices maker Boston Scientific stock (NYSE: BSX), despite INTU being more expensive of the two with its P/S ratio of 11.2x, compared to 5.0x for BSX. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Intuit vs. Boston Scientific: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectation for Boston Scientific and Intuit over the next three years and points to an expected return of 43% for INTU over this period vs. 9% expected return for BSX stock, implying that investors are better off buying INTU over BSX, based on Trefis Machine Learning analysis – Intuit vs. Boston Scientific – which also provides more details on how we arrive at these numbers. | If we look at stock returns, Intuit’s 11% growth is better than 6% for BSX over the last year. Still, Intuit has witnessed comparatively faster revenue growth of 48% vs. just 20% for Boston Scientific. The table below summarizes our revenue and return expectation for Boston Scientific and Intuit over the next three years and points to an expected return of 43% for INTU over this period vs. 9% expected return for BSX stock, implying that investors are better off buying INTU over BSX, based on Trefis Machine Learning analysis – Intuit vs. Boston Scientific – which also provides more details on how we arrive at these numbers. |
31747.0 | 2022-03-16 00:00:00 UTC | VTI, ABT, CRM, WFC: Large Inflows Detected at ETF | ABT | https://www.nasdaq.com/articles/vti-abt-crm-wfc%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 Total Stock Market ETF (Symbol: VTI) where we have detected an approximate $1.3 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 1,255,178,019 to 1,261,233,950). Among the largest underlying components of VTI, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Salesforce.com Inc (Symbol: CRM) is up about 4.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 3.8%. For a complete list of holdings, visit the VTI Holdings page » The chart below shows the one year price performance of VTI, versus its 200 day moving average:
Looking at the chart above, VTI's low point in its 52 week range is $199.50 per share, with $244.06 as the 52 week high point — that compares with a last trade of $218.62. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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 VTI, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Salesforce.com Inc (Symbol: CRM) is up about 4.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 3.8%. For a complete list of holdings, visit the VTI Holdings page » The chart below shows the one year price performance of VTI, versus its 200 day moving average: Looking at the chart above, VTI's low point in its 52 week range is $199.50 per share, with $244.06 as the 52 week high point — that compares with a last trade of $218.62. 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 VTI, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Salesforce.com Inc (Symbol: CRM) is up about 4.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 3.8%. For a complete list of holdings, visit the VTI Holdings page » The chart below shows the one year price performance of VTI, versus its 200 day moving average: Looking at the chart above, VTI's low point in its 52 week range is $199.50 per share, with $244.06 as the 52 week high point — that compares with a last trade of $218.62. 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 VTI, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Salesforce.com Inc (Symbol: CRM) is up about 4.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 3.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total Stock Market ETF (Symbol: VTI) where we have detected an approximate $1.3 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 1,255,178,019 to 1,261,233,950). For a complete list of holdings, visit the VTI Holdings page » The chart below shows the one year price performance of VTI, versus its 200 day moving average: Looking at the chart above, VTI's low point in its 52 week range is $199.50 per share, with $244.06 as the 52 week high point — that compares with a last trade of $218.62. | Among the largest underlying components of VTI, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Salesforce.com Inc (Symbol: CRM) is up about 4.7%, and Wells Fargo & Co (Symbol: WFC) is higher by about 3.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total Stock Market ETF (Symbol: VTI) where we have detected an approximate $1.3 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 1,255,178,019 to 1,261,233,950). For a complete list of holdings, visit the VTI Holdings page » The chart below shows the one year price performance of VTI, versus its 200 day moving average: Looking at the chart above, VTI's low point in its 52 week range is $199.50 per share, with $244.06 as the 52 week high point — that compares with a last trade of $218.62. |
31748.0 | 2022-03-15 00:00:00 UTC | Abbott (ABT) Gains But Lags Market: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-gains-but-lags-market%3A-what-you-should-know-4 | nan | nan | Abbott (ABT) closed at $117.48 in the latest trading session, marking a +1.7% move from the prior day. The stock lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 5.91% in the past month. In that same time, the Medical sector lost 1.34%, while the S&P 500 lost 5.01%.
Abbott will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.48, up 12.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.76 billion, up 2.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $40.56 billion. These totals would mark changes of -7.68% and -5.83%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Abbott. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.74% lower within the past month. Abbott is currently a Zacks Rank #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24. This valuation marks a premium compared to its industry's average Forward P/E of 21.46.
Investors should also note that ABT has a PEG ratio of 2.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) closed at $117.48 in the latest trading session, marking a +1.7% move from the prior day. Investors should also note that ABT has a PEG ratio of 2.32 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $117.48 in the latest trading session, marking a +1.7% move from the prior day. Investors should also note that ABT has a PEG ratio of 2.32 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $117.48 in the latest trading session, marking a +1.7% move from the prior day. Investors should also note that ABT has a PEG ratio of 2.32 right now. Abbott Laboratories (ABT): Free Stock Analysis Report | Abbott (ABT) closed at $117.48 in the latest trading session, marking a +1.7% move from the prior day. Investors should also note that ABT has a PEG ratio of 2.32 right now. Abbott Laboratories (ABT): Free Stock Analysis Report |
31749.0 | 2022-03-14 00:00:00 UTC | Is There A Better Pick Over West Pharmaceutical Services Stock? | ABT | https://www.nasdaq.com/articles/is-there-a-better-pick-over-west-pharmaceutical-services-stock | nan | nan | We believe that Catalent stock (NYSE: CTLT), a global solutions provider for drugs, biologics, gene therapies, and consumer healthcare products, currently is an attractive pick over West Pharmaceutical Services (NYSE: WST), best known for injectable pharmaceutical packaging and delivery systems, given its comparatively lower valuation and better prospects. CTLT stock trades at 3.8x trailing revenues, compared to 9.6x for WST stock. We believe that this valuation gap is justified to some extent, given West Pharmaceutical’s superior revenue growth and better profitability. While both companies have seen a substantial rise in revenues since the lockdowns started being lifted, West has fared better marginally over recent quarters, led by a high demand for its Covid-19 related products.
Looking at stock returns, WST, with -19% returns over the last six months, has fared better than CTLT, which is down 28%. This compares with a 4% fall in the broader S&P500 index. However, there is more to the comparison, and we believe Catalent stands out with higher expected returns than West Pharmaceutical Services, as discussed in the sections below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Catalent vs. West Pharmaceutical Services: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. West Pharmaceutical Services’ Revenue Growth Over The Recent Years Has Been Stronger
Both companies managed to see sales growth over the recent quarters. Still, West Pharmaceutical Services has witnessed comparatively faster revenue growth of 32% over the last twelve months versus 29% for Catalent.
Looking at a longer time frame, Catalent’s sales grew at a CAGR of 18.1% to $4.5 billion over the last twelve-month period, compared to $2.5 billion in 2018, while West Pharmaceutical Services’ sales rose at a CAGR of 18.6% to $2.8 billion from $1.7 billion over the same period.
For Catalent, the revenue growth was primarily driven by robust demand for its Biologics offerings, including drug product and drug substance offerings related to Covid-19. The acquisitions of Skeletal in November 2020 and Delphi and Acorda in February 2021 have buoyed the revenue growth over the recent quarters.
West Pharmaceuticals Services saw its sales expand for its proprietary products, including Westar and NovaPure, along with solid demand for its products related to the Covid-19 vaccine and treatments.
Our Catalent Revenue and West Pharmaceuticals Services Revenue dashboards provide more details on the companies’ revenues.
Looking forward, we believe Catalent will see superior revenue growth, led by its Biologics business. The table below summarizes our revenue expectation for both the companies over the next three years and points to a CAGR of 10.2% for Catalent, compared to a CAGR of 7.0% for West Pharmaceutical Services.
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 predict 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 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. West Pharmaceutical Services Is More Profitable, And It Comes With Lower Risk
West Pharmaceutical Services’ operating margin of 26% over the last twelve-month period is better than 18% for Catalent.
This compares with 17% and 6% figures seen in 2019, before the pandemic, respectively.
Our Catalent Operating Income and West Pharmaceutical Services Operating Income dashboards have more details.
Looking at financial risk, West Pharmaceutical Services beats Catalent. Its <1% debt as a percentage of equity is much lower than 24% for Catalent. Also, its 23% cash as a percentage of assets is higher than 9% for Catalent, implying that WST has a better debt position and better cash cushion.
3. The Net of It All
We see that the revenue growth and profitability have been better for West Pharmaceuticals Services, and it also offers comparatively a lower financial risk. However, Catalent is trading at a much lower valuation than WST stock.
Looking at prospects, using P/S as a base due to high fluctuations in P/E and P/EBIT, we find CTLT stock to be a better bet of the two.
The table below summarizes our revenue and return expectation for CTLT and WST over the next three years and points to an expected return of 29% for CTLT over this period vs. just a 5% expected return for WST stock, implying that investors are better off buying CTLT over WST, based on Trefis Machine Learning analysis – Catalent vs. West Pharmaceutical Services – which also provides more details on how we arrive at these numbers.
While CTLT stock may see higher levels, the Covid 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 West pharmaceutical Services vs. Applied Materials.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CTLT Return -3% -23% 266%
WST Return -4% -21% 339%
S&P 500 Return -2% -10% 91%
Trefis MS Portfolio Return -3% -13% 244%
[1] Month-to-date and year-to-date as of 3/10/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While both companies have seen a substantial rise in revenues since the lockdowns started being lifted, West has fared better marginally over recent quarters, led by a high demand for its Covid-19 related products. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Catalent vs. West Pharmaceutical Services: Which Stock Is A Better Bet? While CTLT stock may see higher levels, the Covid crisis has created many pricing discontinuities, which can offer attractive trading opportunities. | Our Catalent Revenue and West Pharmaceuticals Services Revenue dashboards provide more details on the companies’ revenues. West Pharmaceutical Services Is More Profitable, And It Comes With Lower Risk West Pharmaceutical Services’ operating margin of 26% over the last twelve-month period is better than 18% for Catalent. Our Catalent Operating Income and West Pharmaceutical Services Operating Income dashboards have more details. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Catalent vs. West Pharmaceutical Services: Which Stock Is A Better Bet? Our Catalent Revenue and West Pharmaceuticals Services Revenue dashboards provide more details on the companies’ revenues. The table below summarizes our revenue and return expectation for CTLT and WST over the next three years and points to an expected return of 29% for CTLT over this period vs. just a 5% expected return for WST stock, implying that investors are better off buying CTLT over WST, based on Trefis Machine Learning analysis – Catalent vs. West Pharmaceutical Services – which also provides more details on how we arrive at these numbers. | Our Catalent Revenue and West Pharmaceuticals Services Revenue dashboards provide more details on the companies’ revenues. West Pharmaceutical Services Is More Profitable, And It Comes With Lower Risk West Pharmaceutical Services’ operating margin of 26% over the last twelve-month period is better than 18% for Catalent. The table below summarizes our revenue and return expectation for CTLT and WST over the next three years and points to an expected return of 29% for CTLT over this period vs. just a 5% expected return for WST stock, implying that investors are better off buying CTLT over WST, based on Trefis Machine Learning analysis – Catalent vs. West Pharmaceutical Services – which also provides more details on how we arrive at these numbers. |
31750.0 | 2022-03-11 00:00:00 UTC | Want to Get Richer? 3 Top Stocks to Buy Now and Hold Forever | ABT | https://www.nasdaq.com/articles/want-to-get-richer-3-top-stocks-to-buy-now-and-hold-forever-0 | nan | nan | Building wealth in the long term means you'll need to make investments that can stand the test of time. Evergreen companies that are proven to succeed in a variety of different market conditions are hard to come by, but the good news is that I'll be sharing three such stocks with you today.
All three of these companies are profitable and growing. Likewise, they're remarkably consistent over time, and there's next to zero chance of their going away anytime soon. Let's investigate each in detail.
Image source: Getty Images.
1. STAAR Surgical
STAAR Surgical (NASDAQ: STAA) is worth holding forever because it's creating a solution to a problem that will only become more prevalent with time: myopia.
With the help of STAAR's implantable collamer lenses (ICLs), nearsighted people like myself can be freed from squinting to read distant signs, assuming they're willing to undergo an outpatient procedure to insert the lens into their eyes. In contrast to more common fixes like glasses or contact lenses, ICLs are more convenient because they don't require cleaning or regular replacement. That's why it holds 9% of theglobal marketfor myopia correction, which is worth $230.4 million in trailing 12-month revenue.
STAAR is making more money from sales of its lenses over time. In the last 10 years, its annual revenue rose by 261%, whereas its annual free cash flow (FCF) grew by a stupefying 3,100%. Moving forward, the company will continue to prioritize expanding its penetration of the Chinese market, where its market share has grown from 2% in 2015 to a whopping 20% as of 2020.
With rapid progress like that, it's clear that there isn't much standing in its way.
2. Becton, Dickinson
Whereas STAAR Surgical is a tightly focused growth stock bent on advancing with its lone class of products, Becton, Dickinson (NYSE: BDX) is a mature healthcare supply company that's broadly diversified. Its customers include biomedical research laboratories and hospitals, both of which have an ongoing need for BD's scientific reagents, analyzer machines, test tubes, and sample collection equipment. Without key products like anesthesia sets, certain customers couldn't perform core functions like surgery, so its base of revenue is quite reliable.
In 2021, it brought in $20.2 billion, and its galaxy of products is set to continue expanding, with more than 100 new launches planned through 2025. Its yearly revenue has grown by 163% since 2012 , which isn't half bad for a giant with a $74 billion market cap. Part of its recipe for success is being able to rapidly innovate in response to emerging issues, which it most recently did when it developed a coronavirus diagnostic test in 2020.
In short, BD is worth holding forever because it'll be an essential company in healthcare for the foreseeable future. It pays a dividend that currently has a forward yield of 1.2%, and it's also (slowly) hiking its dividend over time, with its payment rising by 93% in the past 10 years. The stock might not beat the market every year, and its growth probably won't make you rich on its own, but its stability is a major appeal that is likely to pay off for long-term holders.
3. Abbott Laboratories
Much like BD, Abbott Laboratories (NYSE: ABT) is a healthcare supplier and medical device maker with a long history of steady growth. It's also living proof that massive businesses can continue to expand quickly as long as they consistently keep innovating. In 2021, its sales topped $43.1 billion, an increase of about 23% compared to 2020's sum.
Medical devices like Abbott's continuous glucose monitors (CGMs) for diabetes management are one of its primary growth drivers, with sales of its new FreeStyle Libre monitors rising by 36% in the fourth quarter of 2021 alone. Of course, sales of its BinaxNOW at-home coronavirus diagnostic tests and its adult nutrition products contributed too -- not to mention its ever-growing collection of surgical tools.
With such a wide set of offerings, Abbott is highly diversified. Its expansion over time makes this stock a great dividend hiker -- Abbott has increased its dividend for the last 50 years running, thereby earning it a membership in the highly exclusive Dividend King club. In the last five years alone, its payment has increased by 77% -- bringing its current yield to 1.5% -- and continuing its pace of increases is a priority for management.
With performance as consistent as Abbott's, there's much to like about this stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) is a healthcare supplier and medical device maker with a long history of steady growth. With the help of STAAR's implantable collamer lenses (ICLs), nearsighted people like myself can be freed from squinting to read distant signs, assuming they're willing to undergo an outpatient procedure to insert the lens into their eyes. Its customers include biomedical research laboratories and hospitals, both of which have an ongoing need for BD's scientific reagents, analyzer machines, test tubes, and sample collection equipment. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) is a healthcare supplier and medical device maker with a long history of steady growth. STAAR Surgical STAAR Surgical (NASDAQ: STAA) is worth holding forever because it's creating a solution to a problem that will only become more prevalent with time: myopia. Its expansion over time makes this stock a great dividend hiker -- Abbott has increased its dividend for the last 50 years running, thereby earning it a membership in the highly exclusive Dividend King club. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) is a healthcare supplier and medical device maker with a long history of steady growth. STAAR Surgical STAAR Surgical (NASDAQ: STAA) is worth holding forever because it's creating a solution to a problem that will only become more prevalent with time: myopia. Becton, Dickinson Whereas STAAR Surgical is a tightly focused growth stock bent on advancing with its lone class of products, Becton, Dickinson (NYSE: BDX) is a mature healthcare supply company that's broadly diversified. | Abbott Laboratories Much like BD, Abbott Laboratories (NYSE: ABT) is a healthcare supplier and medical device maker with a long history of steady growth. STAAR is making more money from sales of its lenses over time. With performance as consistent as Abbott's, there's much to like about this stock. |
31751.0 | 2022-03-11 00:00:00 UTC | 3 Supercharged Dividend Stocks to Buy if There's a Stock Market Sell-Off | ABT | https://www.nasdaq.com/articles/3-supercharged-dividend-stocks-to-buy-if-theres-a-stock-market-sell-off-0 | nan | nan | As stomach-churning as sell-offs may be, they're often stellar opportunities to load up on shares of stocks that'd be too pricey to buy otherwise, and that goes double for shares of dividend payers. Today, I'll be examining a trio of dividend stocks that are highly stable and have already stood the test of time.
All three of these stocks have dividend yields that are a bit on the low side compared to the market's average of 1.2%, and that's one of the many reasons why they're ripe for purchase if there's a sell-off, correction, or crash in the market. If external factors cause these stocks to drop, it'll drive up the yield and make them even more attractive for investment.
So, without further ado, let's examine these three supercharged dividend stocks to see whether they might be the right choice for your portfolio in the aftermath of a price drop.
Image source: Getty Images.
1. Abbott Laboratories
What do BinaxNOW antigen tests, continuous glucose monitors, and Pedialyte have in common? If you guessed that they're just a few of the products made by Abbott Laboratories (NYSE: ABT), you'd be correct.
With an intro like that, it shouldn't be surprising for anyone to hear that Abbott's $43.1 billion in 2021 revenue comes from an astoundingly diverse set of sources. Between medical nutrition products, surgical tool sets, diagnostics, and medical devices, its quarterly revenue has expanded by more than 81% in the last five years. And so has its dividend, rising by 77% in the same period.
Furthermore, Abbott's dividend has been increased for the last 50 years consecutively, making it a Dividend King. That means it's probably pretty safe to expect that its payment will keep rising over time, thereby rewarding longterm investors more and more.
If there's a market sell-off, it won't change anything about Abbott's ability to do business or the reasonable expectation that its dividend will keep growing. But it will drive the stock's dividend yield -- currently 1.5% -- upward, meaning that it'll take you less time to recoup your cost basis.
2. Thermo Fisher Scientific
Thermo Fisher Scientific (NYSE: TMO) makes a smorgasbord of different products for biomedical research. And with a market cap of $209 billion, it's also one of the largest companies in the world and the healthcare sector.
Last year, it made $39.2 billion from sales of its analytical instruments, scientific analyzer devices, laboratory services, and specialty diagnostics. Of its income, 46% comes from sales to pharma and biotech companies, and 58% of its revenue comes from sales of consumable products that customers will need to buy repeatedly.
Thermo's strong relationship with the life sciences has been quite lucrative over time; in the past 10 years, its quarterly revenue rose by 250%, and its quarterly net income popped by 498%. Plus, its dividend ratcheted up by over 130% in the same period.
It's hard to imagine a future in which its products aren't ubiquitous in nearly every biomedical laboratory on Earth. The biggest issue with Thermo's stock is that its forward dividend yield is a scant 0.2%. That makes it especially ripe for a pickup if the market dips.
3. Costco Wholesale
If you're not familiar, Costco Wholesale (NASDAQ: COST) is a massive discount retailer and it's also a great dividend stock. The wholesaler's business is derived from bulk sales of groceries, consumer health goods, clothing, and its annual membership fees, not to mention a bevy of other products, all of which are distributed from its 828 warehouses worldwide.
And thanks to its focus on selling at a low cost and providing superior service, its loyal customers aren't likely to go elsewhere, even if there's turbulence in the economy. Of Costco's 114.8 million members, 92% opt to renew their membership each year, yielding the company $4 billion since the second quarter of 2021.
In the past 12 months, it sold $206.2 billion in goods. Over the last 10 years, its dividend rose by 187%, powered by 170% growth of the company's quarterly free cash flow (FCF) and a 126% rise in quarterly revenue in the same period. So it's safe to say that the management team is effective in executing the business model.
Its forward dividend yield is currently 0.6%, but that isn't the whole picture. Once every few years, Costco tends to hand out a special dividend, which sends its yield soaring temporarily. Therefore, buying the stock during a sharp downturn is a great way to build exposure to these massive special payments whenever they may happen down the line.
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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 guessed that they're just a few of the products made by Abbott Laboratories (NYSE: ABT), you'd be correct. Last year, it made $39.2 billion from sales of its analytical instruments, scientific analyzer devices, laboratory services, and specialty diagnostics. The wholesaler's business is derived from bulk sales of groceries, consumer health goods, clothing, and its annual membership fees, not to mention a bevy of other products, all of which are distributed from its 828 warehouses worldwide. | If you guessed that they're just a few of the products made by Abbott Laboratories (NYSE: ABT), you'd be correct. Between medical nutrition products, surgical tool sets, diagnostics, and medical devices, its quarterly revenue has expanded by more than 81% in the last five years. Thermo Fisher Scientific Thermo Fisher Scientific (NYSE: TMO) makes a smorgasbord of different products for biomedical research. | If you guessed that they're just a few of the products made by Abbott Laboratories (NYSE: ABT), you'd be correct. All three of these stocks have dividend yields that are a bit on the low side compared to the market's average of 1.2%, and that's one of the many reasons why they're ripe for purchase if there's a sell-off, correction, or crash in the market. Costco Wholesale If you're not familiar, Costco Wholesale (NASDAQ: COST) is a massive discount retailer and it's also a great dividend stock. | If you guessed that they're just a few of the products made by Abbott Laboratories (NYSE: ABT), you'd be correct. But it will drive the stock's dividend yield -- currently 1.5% -- upward, meaning that it'll take you less time to recoup your cost basis. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! |
31752.0 | 2022-03-09 00:00:00 UTC | 2 Cheap Dividend Stocks Near Their 52-Week Lows | ABT | https://www.nasdaq.com/articles/2-cheap-dividend-stocks-near-their-52-week-lows | nan | nan | Dividend stocks can be particularly attractive investments to own during periods of economic uncertainty. Their regular payouts can both provide recurring cash flow and help offset the impact of share price declines that hit your portfolio during a bear market.
For a couple of income-generating stocks that are not only paying better yields than the S&P 500's 1.3% average, but are also on sale at cheap valuations, consider Medtronic (NYSE: MDT) and Anheuser-Busch InBev (NYSE: BUD).
Image source: Getty Images.
1. Medtronic
At its current share price, medical device company Medtronic pays a dividend that yields 2.3% annually. But investors have been down on the stock lately because the company needs hospitals to be operating normally for demand for its products to be strong. When it released its fiscal third-quarter 2022 earnings on Feb. 22, its sales for the period (which ended Jan. 28) totaled $7.8 billion -- flat from the prior-year period. (It did report organic growth of 2%, but that was offset by negative impacts from changes in foreign currency exchange rates.) More than half of the company's revenue (51%) comes from the U.S. market, and so what happens domestically has a significant impact on its financials.
Management put the blame for the disappointing fiscal Q3 numbers on the steep omicron variant surge. But CEO Geoff Martha was also optimistic, saying, "we expect healthcare procedures to reaccelerate post-omicron, and our commitment to durable and higher growth remains steadfast." For the fiscal fourth quarter, Medtronic anticipates its organic growth will rise to 5.5%.
The company has a broad portfolio of products that address needs in indications that include diabetes, neuroscience, surgical, and cardiovascular. That diversity should give it many opportunities to generate growth this year if hospitals largely get back to operating normally this year, which at this point looks likely to happen as COVID-19 cases -- and hospitalizations for the coronavirus -- decline.
However, investors remain bearish on the stock, which isn't much above its 52-week low of $98.38. In the past six months, its shares have fallen 20% while the S&P 500 has declined by 6%. At a forward price-to-earnings (P/E) ratio of 19, Medtronic is cheap compared to many other healthcare stocks; shares of Abbott Laboratories and Eli Lilly are trading at 24 and 30 times their future earnings, respectively.
2. Anheuser-Busch InBev
Another good recovery stock to own is Anheuser-Busch InBev. The world's biggest beer brewer dipped to a new 52-week low this week. Its recent declines haven't been as steep as Medtronic's -- the stock is only down 10% over the past six months. However, the stock also hasn't traded at a lower level since November 2020.
On Feb. 24, the company released its fourth-quarter earnings. Revenue was up 12.1% year over year, volumes rose by 3.6%. and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 5%.
In 2021, it sold 582 million hectoliters of adult beverages (about 15.4 billion gallons), a record high for AB-InBev. The company has more than recovered from the drop in sales that accompanied the onset of the pandemic. And given that social events will likely be on the rise this year, there's plenty of reason to remain bullish about AB-InBev's prospects.
Its forward P/E ratio is less than 17 -- low compared with smaller rival Boston Beer, which trades at more than 25 times its future earnings. And AB-InBev stock also pays an above-average dividend that at current share prices yields 2.1%. Between the discounted share price and the better-than-average payout, investors have multiple ways to profit from this stellar business, which over the past five years has consistently reported profits.
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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. | Their regular payouts can both provide recurring cash flow and help offset the impact of share price declines that hit your portfolio during a bear market. But CEO Geoff Martha was also optimistic, saying, "we expect healthcare procedures to reaccelerate post-omicron, and our commitment to durable and higher growth remains steadfast." At a forward price-to-earnings (P/E) ratio of 19, Medtronic is cheap compared to many other healthcare stocks; shares of Abbott Laboratories and Eli Lilly are trading at 24 and 30 times their future earnings, respectively. | Medtronic At its current share price, medical device company Medtronic pays a dividend that yields 2.3% annually. Its forward P/E ratio is less than 17 -- low compared with smaller rival Boston Beer, which trades at more than 25 times its future earnings. And AB-InBev stock also pays an above-average dividend that at current share prices yields 2.1%. | At a forward price-to-earnings (P/E) ratio of 19, Medtronic is cheap compared to many other healthcare stocks; shares of Abbott Laboratories and Eli Lilly are trading at 24 and 30 times their future earnings, respectively. 10 stocks we like better than Medtronic When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 3, 2022 David Jagielski has no position in any of the stocks mentioned. | Their regular payouts can both provide recurring cash flow and help offset the impact of share price declines that hit your portfolio during a bear market. However, investors remain bearish on the stock, which isn't much above its 52-week low of $98.38. Revenue was up 12.1% year over year, volumes rose by 3.6%. |
31753.0 | 2022-03-09 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 | 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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $7.56 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.29%.
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 14.07% of total assets, followed by Abbott Laboratories (ABT) and Danaher Corp (DHR).
The top 10 holdings account for about 63.18% of total assets under management.
Performance and Risk
The ETF has lost about -13.81% so far this year and is up roughly 6.75% in the last one year (as of 03/09/2022). In that past 52-week period, it has traded between $53.60 and $67.15.
The ETF has a beta of 0.87 and standard deviation of 23.26% for the trailing three-year period, making it a medium risk choice in the space. With about 71 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 an excellent 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 $2.10 million in assets, SPDR S&P Health Care Equipment ETF has $512.13 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
Danaher Corporation (DHR): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports
First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 14.07% of total assets, followed by Abbott Laboratories (ABT) and Danaher Corp (DHR). Abbott Laboratories (ABT): Free Stock Analysis Report It has amassed assets over $7.56 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 14.07% of total assets, followed by Abbott Laboratories (ABT) and Danaher Corp (DHR). 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 14.07% of total assets, followed by Abbott Laboratories (ABT) and Danaher Corp (DHR). 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 14.07% of total assets, followed by Abbott Laboratories (ABT) and Danaher Corp (DHR). Abbott Laboratories (ABT): Free Stock Analysis Report Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. |
31754.0 | 2022-03-08 00:00:00 UTC | iShares Core S&P Total U.S. Stock Market ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/ishares-core-sp-total-u.s.-stock-market-etf-experiences-big-outflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $271.7 million dollar outflow -- that's a 0.7% decrease week over week (from 442,700,000 to 439,800,000). Among the largest underlying components of ITOT, in trading today Comcast Corp (Symbol: CMCSA) is up about 0.5%, Abbott Laboratories (Symbol: ABT) is off about 2.4%, and Wells Fargo & Co (Symbol: WFC) is higher by about 2.9%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $88.45 per share, with $108.15 as the 52 week high point — that compares with a last trade of $93.05. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today Comcast Corp (Symbol: CMCSA) is up about 0.5%, Abbott Laboratories (Symbol: ABT) is off about 2.4%, and Wells Fargo & Co (Symbol: WFC) is higher by about 2.9%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $88.45 per share, with $108.15 as the 52 week high point — that compares with a last trade of $93.05. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today Comcast Corp (Symbol: CMCSA) is up about 0.5%, Abbott Laboratories (Symbol: ABT) is off about 2.4%, and Wells Fargo & Co (Symbol: WFC) is higher by about 2.9%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $88.45 per share, with $108.15 as the 52 week high point — that compares with a last trade of $93.05. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of ITOT, in trading today Comcast Corp (Symbol: CMCSA) is up about 0.5%, Abbott Laboratories (Symbol: ABT) is off about 2.4%, and Wells Fargo & Co (Symbol: WFC) is higher by about 2.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $271.7 million dollar outflow -- that's a 0.7% decrease week over week (from 442,700,000 to 439,800,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $88.45 per share, with $108.15 as the 52 week high point — that compares with a last trade of $93.05. | Among the largest underlying components of ITOT, in trading today Comcast Corp (Symbol: CMCSA) is up about 0.5%, Abbott Laboratories (Symbol: ABT) is off about 2.4%, and Wells Fargo & Co (Symbol: WFC) is higher by about 2.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $271.7 million dollar outflow -- that's a 0.7% decrease week over week (from 442,700,000 to 439,800,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $88.45 per share, with $108.15 as the 52 week high point — that compares with a last trade of $93.05. |
31755.0 | 2022-03-08 00:00:00 UTC | Should You Invest in the Invesco Dynamic Pharmaceuticals ETF (PJP)? | ABT | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dynamic-pharmaceuticals-etf-pjp-0 | nan | nan | Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Pharma is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $330.39 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Pharma segment of the equity market. PJP seeks to match the performance of the Dynamic Pharmaceutical Intellidex Index before fees and expenses.
The Dynamic Pharmaceutical Intellidex Index is comprised of stocks of U.S. pharmaceutical companies. It is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.86%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY).
The top 10 holdings account for about 57.16% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Pharmaceuticals ETF has lost about -5.54% so far, and is down about -0.73% over the last 12 months (as of 03/08/2022). PJP has traded between $74.31 and $83.17 in this past 52-week period.
The ETF has a beta of 0.80 and standard deviation of 21.26% for the trailing three-year period, making it a high risk choice in the space. With about 23 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PJP is a reasonable option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.
VanEck Pharmaceutical ETF (PPH) tracks MVIS US Listed Pharmaceutical 25 Index and the iShares U.S. Pharmaceuticals ETF (IHE) tracks Dow Jones U.S. Select Pharmaceuticals Index. VanEck Pharmaceutical ETF has $293.41 million in assets, iShares U.S. Pharmaceuticals ETF has $379.48 million. PPH has an expense ratio of 0.35% and IHE charges 0.42%.
Bottom Line
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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, Merck & Co Inc (MRK) accounts for about 6.99% of total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. | Looking at individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. | Looking at individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Alternatives Invesco Dynamic Pharmaceuticals ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Merck & Co Inc (MRK) accounts for about 6.99% of total assets, followed by Abbott Laboratories (ABT) and Eli Lilly & Co (LLY). Abbott Laboratories (ABT): Free Stock Analysis Report Designed to provide broad exposure to the Healthcare - Pharma segment of the equity market, the Invesco Dynamic Pharmaceuticals ETF (PJP) is a passively managed exchange traded fund launched on 06/23/2005. |
31756.0 | 2022-03-07 00:00:00 UTC | This Healthcare Company Is A Better Pick Over Abbott Stock | ABT | https://www.nasdaq.com/articles/this-healthcare-company-is-a-better-pick-over-abbott-stock | nan | nan | We think that Thermo Fisher Scientific stock (NYSE: TMO) currently is a better pick compared to Abbott Labs stock (NYSE: ABT), with a similar market capitalization in the healthcare sector, despite its comparatively expensive valuation. ABT stock trades at 4.9x trailing revenues, compared to 5.6x for Thermo Fisher Scientific. Both the companies saw a rise in revenue over the last year, with Covid-19 testing driving their sales. Thermo Fisher Scientific manufactures analytical laboratory instruments used in various tests, and the pandemic has led to a surge in demand for these instruments.
Looking at stock returns over the last six months, both the companies have seen a fall along with the broader markets, and TMO has fared slightly better than ABT. While TMO stock has been down 2% over the last six months, ABT has seen a fall of 7%. This compares with a 3% fall for the broader S&P500 index. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth and operating margin growth. Our dashboard Abbott vs. Thermo Fisher Scientific: Similar Market Cap; Which Stock Is A Better Bet? has more details. Parts of the analysis are summarized below.
1. Thermo Fisher Scientific Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the last twelve months. Still, Abbott has witnessed comparatively faster revenue growth of 24.5% vs. 21.7% for Thermo Fisher Scientific.
Looking at a longer time frame, Abbott’s sales grew at a CAGR of 12.4% to $43.1 billion over the last twelve months, compared to $30.6 billion in 2018, while Thermo Fisher Scientific’s revenues have risen at a CAGR of 17.4% to $39.2 billion from $24.4 billion over the same period.
The companies’ revenue growth has been driven by a very high demand for Covid-19 testing over the recent past. However, as the Covid-19 cases decline, the demand for testing is also expected to fall, weighing on Abbott’s diagnostics business in 2022. Thermo Fisher Scientific’s sales growth is buoyed by continued market share gains for its instruments. Note that once the devices are installed, it also generates recurring revenue in the form of after-sales service, and it also results in demand for consumables.
Our Abbott Revenue and Thermo Fisher Scientific Revenue dashboard provides more insight into the company’s revenues compared to that of its peers.
Looking forward, Thermo Fisher Scientific’s revenue is expected to grow faster compared to Abbott’s. The table below summarizes our revenue expectation for both the companies over the next three years and points to a CAGR of 4.5% for Abbott, compared to a CAGR of 10.7% for Thermo Fisher Scientific.
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 pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed in the three years before Covid to simulate 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 Has Seen Better Margin Growth, And It Offers Lower Risk
Looking at profitability, similar to the trend seen in revenue growth, Thermo Fisher Scientific’s operating margin of 27% over the last twelve-month period is better than the 21% figure for Abbott.
This compares with 16% and 21% operating margin seen in 2019, before the pandemic, respectively.
Abbott’s free cash flow margin of 24% is in-line with that for Thermo Fisher Scientific.
Our Abbott Operating Income and Thermo Fisher Scientific Operating Income dashboards provide more details on the companies’ operating income and operating margins.
Looking at financial risk, Abbott trumps Thermo Fisher Scientific. Its 8% debt as a percentage of equity is much lower than 16% for Thermo Fisher Scientific. Similarly, Abbott’s 14% cash as a percentage of assets is much higher than 5% for the latter, implying that Abbott has better debt and cash position.
3. The Net of It All
We see that the revenue growth has been better for Thermo Fisher Scientific over recent years and its current operating margins are also better than Abbott’s. Now, Abbott’s margin growth has been better over the recent years, and it is trading at a relatively lower valuation. Furthermore, Abbott offers lower financial risk compared to Thermo Fisher Scientific, suggesting that Abbott may be the better pick among the two.
However, we don’t think ABT is the better pick over TMO. Looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Thermo Fisher Scientific is currently the better choice of the two.
The table below summarizes our revenue and return expectation for Abbott and Thermo Fisher Scientific over the next three years and points to an expected return of 9% for ABT stock over this period vs. 26% expected returns for TMO stock, implying that investors are better off buying TMO over ABT, based on our dashboard – Abbott vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers.
While TMO 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 Xylem vs. Merck.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Mar 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return 0% -14% 213%
TMO Return 2% -17% 294%
S&P 500 Return 2% -6% 100%
Trefis MS Portfolio Return 1% -9% 257%
[1] Month-to-date and year-to-date as of 3/3/2022
[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 Thermo Fisher Scientific stock (NYSE: TMO) currently is a better pick compared to Abbott Labs stock (NYSE: ABT), with a similar market capitalization in the healthcare sector, despite its comparatively expensive valuation. ABT stock trades at 4.9x trailing revenues, compared to 5.6x for Thermo Fisher Scientific. Looking at stock returns over the last six months, both the companies have seen a fall along with the broader markets, and TMO has fared slightly better than ABT. | The table below summarizes our revenue and return expectation for Abbott and Thermo Fisher Scientific over the next three years and points to an expected return of 9% for ABT stock over this period vs. 26% expected returns for TMO stock, implying that investors are better off buying TMO over ABT, based on our dashboard – Abbott vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers. We think that Thermo Fisher Scientific stock (NYSE: TMO) currently is a better pick compared to Abbott Labs stock (NYSE: ABT), with a similar market capitalization in the healthcare sector, despite its comparatively expensive valuation. ABT stock trades at 4.9x trailing revenues, compared to 5.6x for Thermo Fisher Scientific. | The table below summarizes our revenue and return expectation for Abbott and Thermo Fisher Scientific over the next three years and points to an expected return of 9% for ABT stock over this period vs. 26% expected returns for TMO stock, implying that investors are better off buying TMO over ABT, based on our dashboard – Abbott vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers. We think that Thermo Fisher Scientific stock (NYSE: TMO) currently is a better pick compared to Abbott Labs stock (NYSE: ABT), with a similar market capitalization in the healthcare sector, despite its comparatively expensive valuation. ABT stock trades at 4.9x trailing revenues, compared to 5.6x for Thermo Fisher Scientific. | The table below summarizes our revenue and return expectation for Abbott and Thermo Fisher Scientific over the next three years and points to an expected return of 9% for ABT stock over this period vs. 26% expected returns for TMO stock, implying that investors are better off buying TMO over ABT, based on our dashboard – Abbott vs. Thermo Fisher Scientific – which also provides more details on how we arrive at these numbers. We think that Thermo Fisher Scientific stock (NYSE: TMO) currently is a better pick compared to Abbott Labs stock (NYSE: ABT), with a similar market capitalization in the healthcare sector, despite its comparatively expensive valuation. ABT stock trades at 4.9x trailing revenues, compared to 5.6x for Thermo Fisher Scientific. |
31757.0 | 2022-03-04 00:00:00 UTC | 1 Stock Warren Buffett Is Selling That Income Investors Should Consider Buying | ABT | https://www.nasdaq.com/articles/1-stock-warren-buffett-is-selling-that-income-investors-should-consider-buying | nan | nan | Warren Buffett appears to be selling more stocks than he's buying these days. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) recently revealed its equity holdings for the fourth quarter of 2021 in a regulatory filing. Buffett and his investment managers sold 10 stocks while buying seven stocks.
The legendary investor undoubtedly had good reasons for all of Berkshire's transactions. But that doesn't mean that every investor should blindly follow his lead. Here's one stock that Buffett is selling that income investors should instead consider buying.
Image source: Getty Images.
A lot to like
Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. The sell-off accelerated in the fourth quarter of 2021 with a 79% reduction in shares owned, compared to the previous quarter.
However, there's a lot to like about AbbVie for income investors. The company offers a dividend that currently yields nearly 3.8%. By comparison, the average dividend yield of the S&P 500 is only 1.3%.
AbbVie's dividend is also pretty much as dependable as they come. The company is a Dividend King, with 50 consecutive years of dividend increases (including its time as part of Abbott Labs). Since spinning off from Abbott in 2013, AbbVie has raised its dividend by more than 250%.
The stock has blossomed into a big winner, as well. Over the past 12 months, AbbVie's shares soared nearly 40%. During the same period, the S&P 500 rose roughly 14%.
Despite this impressive gain, AbbVie remains attractively valued. Its shares trade at only 10.6 times expected earnings. The stock looks like a downright bargain, compared to the S&P 500's forward earnings multiple of 18.6.
One fly in the ointment
With so much to like about AbbVie, you might wonder why Buffett isn't buying the stock hand over fist. We don't know exactly what the Oracle of Omaha thinks about AbbVie. However, there's one fly in the ointment with the stock that could be on his mind.
AbbVie's autoimmune disease drug Humira faces the loss of exclusivity in the U.S. beginning in 2023. To call Humira a blockbuster doesn't go far enough. The drug generated a whopping $20.7 billion in sales last year, accounting for nearly 37% of the company's total revenue.
Is gloom and despair on the way for the big drugmaker? Not at all. Humira's sales will no doubt drop significantly after biosimilar rivals enter the U.S. market. However, the drug could still generate billions of dollars annually for years to come.
More importantly, AbbVie's broader product lineup should enable the company to quickly return to solid growth. In particular, the company has a couple of newer autoimmune disease drugs, Rinvoq and Skyrizi, and it expects them to deliver at least $15 billion of combined sales in 2025.
Different strokes
The old adage "different strokes for different folks" definitely applies to investing. All investors don't share the same goals.
Warren Buffett clearly isn't an income investor, either on a personal level or in his role managing Berkshire Hathaway. Neither he nor Berkshire need to rely on dividend income. But many investors do.
AbbVie obviously isn't a stock that's high on Buffett's list right now, based on the steep reduction in Berkshire's stake. However, with its juicy dividend and strong dividend track record, AbbVie should be high on the list of income investors.
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Keith Speights owns AbbVie and Berkshire Hathaway (B shares). The Motley Fool owns 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. | A lot to like Buffett has steadily trimmed Berkshire's stake in big-drugmaker AbbVie (NYSE: ABBV) for several quarters. More importantly, AbbVie's broader product lineup should enable the company to quickly return to solid growth. In particular, the company has a couple of newer autoimmune disease drugs, Rinvoq and Skyrizi, and it expects them to deliver at least $15 billion of combined sales in 2025. | See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie and Berkshire Hathaway (B shares). The Motley Fool owns 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). | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie and 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). | All investors don't share the same goals. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keith Speights owns AbbVie and Berkshire Hathaway (B shares). |
31758.0 | 2022-03-02 00:00:00 UTC | Consumer Spending, E-Commerce, and the Business of Lodging | ABT | https://www.nasdaq.com/articles/consumer-spending-e-commerce-and-the-business-of-lodging | nan | nan | In this week's episode of Motley Fool Money, Motley Fool analyst Olivia Zitkus and Motley Fool contributor Keith Speights, along with host Chris Hill, discuss a new wave of biosimilar drugs and the challenges (and opportunities for investors) that they present. Also, Motley Fool analyst Bill Mann discusses:
Retail sales growing nearly 4% in January.
Shopify's (NYSE: SHOP) strong growth in 2021 being followed by an expectation for slightly less growth in 2022.
Why shares of Shopify will never look cheap. The company's new partnership with JD.com (NASDAQ: JD).
Airbnb's (NASDAQ: ABNB) record revenue last year.
Hotel stocks hitting new all-time highs.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Find out why Shopify is one of the 10 best stocks to buy now
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This video was recorded on Feb. 16, 2022.
Chris Hill: If you're looking for one more light at the end of the pandemic tunnel, this is the show for you. But before money starts now. I'm Chris Hill, joined by Motley Fool Senior Analyst Bill Mann. Thanks for being here.
Bill Mann: Hey Chris, how're you today?
Chris Hill: I'm doing all right. I want to get to Shopify, I want to get to Airbnb. But, let's start with the big macro. Retail sales grew nearly four percent in January. So I guess for all the hand-wringing over inflation, people appear to still be buying stuff.
Bill Mann: Yeah. When you take out cars, which is a big thing to take out, it was a 3.3 percent gain in retail. Those cash registers are really, really wringing. Now, it's important to keep in mind that this number is not inflation-adjusted. We're buying maybe less stuff, but we're spending more for it. Home furnishings were up a lot. Motor vehicles, and parts were up a lot. The only thing that was really down, which makes some sense to me, was food and beverage, like going out to restaurants. I don't know if you've heard, but where I am, Omicron was a big thing in December and January.
Chris Hill: Yes.
Bill Mann: Yes, it was hot here. [LAUGHTER] Not that surprising, but a really surprising overall spending number from fellow retailers.
Chris Hill: You have to assume that the food, and beverage number is going to go up as mandates for masks get lifted in major cities as they're starting to. Do the home furnishing numbers surprise you? It surprised me only because I feel like there was a lot of spending on home furnishings in the first year of the pandemic. So the fact that we got this popping January, I don't know. I guess it speaks to maybe more people moving, and more people just saying, I'm ready for a new sofa.
Bill Mann: Yes, I can try and sound smart about the number that I wouldn't have predicted. But, at least partially that has to do with the fact that there is pent-up demand in the space. I mean, if we recall, we've had all sorts of supply chain issues and one area that's been hit really hard is both the home builders, things like PVC and Truck Ross's and things like that have been unavailable. But then, also the home furnishing segment as well has seen a huge amount of push-back, and delays. When I saw that number, I thought, of course, that actually makes sense to me. That, that would still be well above what it was a year ago because there is a coiled spring still that comes in the form of the delays, and the supply chain issues that have impacted so many parts of our economy.
Chris Hill: Shopify wrapped up its fiscal year with 57 percent growth, which is impressive. Then Shopify said growth for this year is going to be slower, and investors did not like that at all.
Bill Mann: No, they were not pleased about that. I mean, as evidenced by the pretty rapid drop in the stock, it was down 17 percent when I checked earlier today. Look, it was a good quarter for Shopify. Shopify has a beautiful slide. Shopify now accounts for more than 10 percent of all e-commerce in the United States of America, 10 percent. So it's going to be really hard for them to keep growing at 50 percent plus, given that they are such a large component of the market. Again, this is a company that is now up about 170 percent over where it was from the depths of the pandemic, from a share price perspective. Shopify is one of these companies that we have to remember. The market is really struggling trying to figure out how much this company is worth. How good is what Shopify is doing in terms of bringing money down the road? It's still trading at 30 and 40 times sales, which is a historically enormous number. It was a great number for Shopify. It has to keep continue growing. I really don't think that people should have been surprised that they're prognostication for 2022 is lower. The thing that I believe to be true about Shopify is that it has a long growth ramp, and that's going to pay off over time.
Chris Hill: Is this one of those stocks that is absolutely no matter what the price is, never going to look cheap? Because on a valuation basis, it seems like one of those businesses that is just always going to look expensive.
Bill Mann: Yeah, I think that's the case. I mean, when you've got 41 percent on a massive number, 41 percent revenue growth, that's a company that I think that you could extrapolate out 41 percent growth for a really long period of time, but it will break whatever spreadsheets that you have. It's hard to put a value on what these top-flight gross companies are. Unfortunately, part of the game of holding a company like Shopify is just being used to the fact that, occasionally, some of the moves in the stock are not going to make sense at all.
Chris Hill: I'm wondering if because it's never going to look cheap. If you think about investors as being an addressable market, I guess you could say that's about a lot of different businesses. Like there's some businesses just because of what they do, there are people who would say, I don't support gambling, so I'm never going to own a casino, stocks, or something like that. But, I'm wondering if the addressable market for Shopify as a stock is constrained because there are always going to be people who want to see a cheaper stock. There are always going to be financial advisors telling people you don't want to buy that, it's such an expensive stock.
Bill Mann: That's a beautiful Amazon in 2003. I mean, that's exactly what was being talked about. It's always a little disingenuous, Chris, to pull Amazon out of your back pocket because Amazon was a special situation, and it will probably never happen exactly like that again. But, that is exactly the conversations that were happening around Amazon about 10,000 percent ago in terms of growth. Shopify has a $100 billion-plus market cap company, does not have the growth ramp in front of it in terms of share price that Amazon had at the time. But, that doesn't mean that a company that will continue to grow. I mean, 41 percent growth on the base that they had, that's astounding and they've just opened up a deal with JD.com. Shopify now has access to 550 million Chinese consumers.
Chris Hill: You say that like it's a big number.
Bill Mann: Yeah.
Bill Mann: True. Whenever you talked about China, all those numbers, they sound like cheat codes. You put this in, and just suddenly you've got 63 extra lives or whatever. Five-hundred-and-fifty million people I'm told is a lot and it's a market that they've barely tapped until now. There's plenty of growth for Shopify, but I can just simply guarantee as a stock, that is now down by 60 percent over the last three months, this share price is going to continue to visit a lot of different places over time. It's just part of the game you're signing up for when you own a company like Shopify.
Chris Hill: Last thing and then we'll move on, because I think that there are always going to be people who will lump JD.com, and Shopify in the same big bucket of, "Well, these are e-commerce companies." What is Shopify do that JD doesn't do that makes JD.com say we want to partner up with you?
Bill Mann: I think it's the access. They don't do that different, but Shopify has a massive stable of merchants that are already on their platform. Now, for JD.com, they could say, should we try and set up our own platform and trying to track them? Or can we just simply take what we have, which is an unbelievable infrastructure in China, and offer to split the rewards with the Shopify? What they don't have is simply that critical mass, and they're getting there quick, and it makes perfect sense. I expect huge things from that partnership going forward.
Chris Hill: Airbnb wrapped up the fourth quarter by reporting record revenue for all of 2021 and they said they expect bookings in the first quarter, to exceed pre-pandemic levels for the first time. I get that this is overall a down day in the market so maybe what we're seeing in terms of Airbnb's rise in this share price today, be a little bit muted. This wasn't a perfect quarter, but holy cow, this is a really good quarter.
Bill Mann: It was a holy cow quarter. Exactly. What do you suppose the opposite of pouring one out is? Remember back in March of 2020, we were pouring one out for Airbnb. It was the company that was maybe most impacted by the immediate shutdown at the beginning of the pandemic. Now they've had their best Q4 in history in terms of revenues in income and they've done so really without the benefit of Asia. Asia is still basically locked tight. It's the area that still most affected by Omicron, but then also by the policies in place that are much more restrictive than we see here in the US and in Europe. Super low cancellation rates, they had longer stays. I think you're seeing really for Airbnb, and this is a company that I have wrongly been skeptical of, but the fact that they are now getting much more, 50 percent longer stays than they had a year ago. The way in which these properties are being used is very different than before the pandemic. I think that's a trend that you have to assume is going to continue.
Chris Hill: When you go even further in terms of their longer stays, stays of four weeks or longer, made up almost a quarter of their bookings in this most recent report. It's amazing to me. You made the point about where they were in March of 2020. There were a lot of companies, pretty much every company had to figure out on the fly, what are we going to do? In the case of Airbnb, part of what they decided to do involved laying off some staff, really pulling back on their marketing. As they look to grow from here, I do wonder if in particular, the marketing spend is a leverage they're going to be, not necessarily reluctant to pull. They just put up these results. I guess I would hate to be trying to make the case that, they really need to spend a lot more on marketing. It's one of those adjustments that the business made because they had to make it. Now that they've made it, and seen what they can achieve without spending that money. I bet that they're going to be, maybe a little rightfully stingy with that in the future.
Bill Mann: Perhaps one of the things that I'm not sure that many people have really talked about that much was that one of the things that has grown really quickly for them, which is their nights and experiences segment. They basically took the fact that they have the knowledge of where people were going, and they knew from the types of establishments that they were staying in, what types of experiences that they could serve them and in so doing, they have crushed Tripadvisor, for example. Without even thinking about it, they've taken the data that they had in place, where you going, what type of property you are you staying in? How long are you going to stay there? They're matching that up with experiences. That's not even marketing. That's basic processing of artificial intelligence, of being able to make guesses based on really unbelievably deep set of features of data, that they already have.
Chris Hill: It's concierge service, as we used to think about it back in the day. But as you said, it's powered by AI and it's probably one of the more underrated parts of their business. Do you make anything of the fact that Marriott, Hilton, and Hyatt shares of all three are hitting all-time heights today. I don't own shares of any of those companies, but I look at that, I look at what Airbnb is doing. It seems like every day we're getting another announcement of an opening up. Disney coming out and saying, I think it's in their Orlando property, that masks are going to be optional now.
Bill Mann: As we stay down south, "Y'all come" [laughs].
Chris Hill: Again, I don't own shares of those three. But, I look at that and I feel more optimistic about how the world can be opening up again.
Bill Mann: Okay. Chris, if you had to guess, and you'd probably guessed the answer based on the premise of the question. Which stock has outperformed from March first 2020 Marriott or Zoom?
Chris Hill: Marriott?
Bill Mann: Marriott has outperformed.
Chris Hill: I remember talking with Ron Gross at some point in March of 2020. Marriott was one of the companies that we talked about. I can't remember if Ron said this on the show or if this was just in our discussion afterwards. But basically he said, "This company, when I look at it from top to bottom, when I think about the strength of the brand, their rewards for all that sort of thing. This seems like an unbelievable screaming value, at where it is trading right now, and because I'm an idiot, I did not buy shares".
Bill Mann: [laughs] All goes to show that, when Ron Gross speaks, you should definitely pay attention.
Chris Hill: Bill Mann, great talking to you. Thanks for bringing me here.
Bill Mann: Thanks Chris.
Chris Hill: Competition comes in different forms. A business like Airbnb has competitors like hotel chains. But for a pharmaceutical business, competition isn't just other pharmaceutical companies, it's also generic drug makers who are ready to move once a drug's patent protection ends. For more on a new wave of biosimilar drugs entering the market. Here's Olivia Zitkus.
Olivia Zitkus: Hi, Fools. I'm on with Keith Speights, the healthcare analyst here at the Motley Fool. Keith, thanks for coming on with me.
Keith Speights: Great to meet with you again, Olivia.
Olivia Zitkus: Today I want to talk about an important, and another radar component of the competitive landscape in pharma and biotech, biosimilars. The easiest way to start exploring the current pertinence of biosimes, as they're known, is with the story of an impending patent cliff. AbbVie's biologic Humira, a medicine approved to treat symptoms of various inflammatory conditions is the top drug in the industry by sales. Its 2021 revenue reached $20.7 billion. In 2023, the drug faces an important patent cliff in the United States, where the vast majority of its sales come from. Now under a patent settlement, pharma company Amgen must wait until January 31st, 2023 to launch its biosimilar AMDVITA in the US. It's already been released abroad. Now Pfizer's definition of a biosimilar product is a biologic product that is approved based on demonstrating that it is highly similar to an already FDA approved biologic known as a reference product. Biosimilars have no clinically meaningful differences in terms of safety and effectiveness from the reference product. They have different regulatory pathways than normal drugs that we talked about. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. Now, Keith, if I am an AbbVie investor, I am panicking, the best-selling drug in the world is about to lose its patent protection and other biosimilars are coming onto the market in less than a year. Is Humira going to be completely swallowed up by these competitors, and how much does the on-slot of these biosimes really matter to AbbVie?
Keith Speights: Well, first, I can understand the temptation to panic, but I'll say that I'm personally an AbbVie shareholder and I'm not panicking at all. I don't think other investors need to either. But for one thing, AbbVie's valuation already reflects the coming sales decline for Humira and sales for Humira will decline for sure. The stock currently trades at around 10 times expected earnings. That's cheaper than most other pharma stocks. It looks like an absolute bargain compared to the S&P 500 which trades at a forward earnings multiple of over 20 right now. The other thing, Olivia, is that AbbVie has been preparing for this for years even before its spinoff from Abbott Labs back in 2013, Abbott and AbbVie knew that the day would come when Humira would face biosimilar competition, the company has been getting ready for this day.
It's made strategic acquisitions along the way, notably, including the buyout of Allergan in 2020, and that help make it less dependent on Humira. Also the company has built up a really strong pipeline. Abbvie successors to Humira are two drugs, Rinvoq and Skyrizi. These two drugs are expected to together make $15 billion in sales in 2025. That will go a long way toward offsetting the declining sales for Humira. Also, don't expect Humira sales to just evaporate overnight. For example, the drug made $6.3 billion in international sales in 2018, and it began to face biosimilars in Europe at the end of that year. But in 2021, Humira's international sales totaled $3.4 billion. That's still a lot of money. Sure, sales fell nearly 50 percent, but if Humira experiences a similar result in the US, they can still make more than $8 billion per year in the US market. That's a lot of money. The bottom line is that AbbVie will definitely feel some pain from biosimilar competition in the US market for Humira, but the company should be in good shape to weather this storm.
Olivia Zitkus: If you're an investor, that might call me for a brief moment before thinking to yourself, biosimilars clearly post some risk to drugs already on the market. Should I also be worried about generics? Let's take a step back, Keith. Can you briefly explain the difference between generics and biosimilars and talk about the problems that generics might create for our reference product?
Keith Speights: Sure. Biosimilars and generics are alike. They're intended to offer less expensive versions, I'll put versions in quotes, of brand drugs. Biosimilars are similar to biologic drugs or those drugs that are made from living organisms, for example, antibodies. Generics are chemically identical to their original reference products. Biosimilars and generics can only enter the market when the patents for their reference products expire or the makers of the original products reach an agreement with makers of biosimilars or generics for an alternative launch day. But now to your question about whether investors shouldn't worry about generics, the answer is a definite maybe. Generic competition can present a big problem for a company that hasn't adequately prepared for steep loss in revenue. In the past, we've seen companies such as Pfizer go through what are called patent cliffs where multiple blockbuster drugs lose patent exclusivity over a short period of time. When drug makers don't have other new products in position to offset the revenue declines from these losses of exclusivity, their stocks can fall quite a bit.
Olivia Zitkus: It sounds like pipeline preparation is definitely key to surviving the loss of a patent or a patent cliff. Now, Amgen, Boehringer Ingelheim, Viatris, et cetera, are all coming for AbbVie in 2023 with their biosimilars to Humira. It seems to me like producing biosimilars could be a really lucrative business. Are there any companies focusing closely on biosimilars that you think could be worthwhile Foolish investments?
Keith Speights: Yeah, Olivia, I think that one of the companies you mentioned is worthy of consideration by Foolish investors and that company is Viatris. Viatris was formed in 2020 by the merger of Pfizer's Upjohn unit with Mylan. The company focuses on marketing biosimilars, generics, and also older brand drugs such as Lipitor, Lyrica, and Viagra. I recently wrote that Viatris is my favorite value stock right now. I wrote that for several reasons. This stock trades at only four times expected earnings and one times trailing 12-months sales. That is dirt cheap. But Viatris has performed well so far this year, even as the overall market has declined. The company called 2021 a trough year, but it expects to deliver stronger growth going forward. As you mentioned, the launch of its biosimilar to Humira in 2023 is on the way. That should help quite a bit. Viatris also expects to soon launch a biosimilar to another blockbuster drug, an eye disease drug called Eylea pending regulatory approval and that should help boost its sales as well. Then finally, income investors should really like Viatris. The company has a dividend yield of around 3.1 percent. This is a combination of value and dividend that I think a lot of Foolish investors would like.
Keith Speights: I think that's a great pick as well, Keith. Thanks so much for talking Humira, generics, biosimes with me and sorting all of that out for our Fools. This has been a lot of fun.
Chris Hill: That's all for today, we'll be coming up tomorrow. Jason Moser and Matt Frankel have a deep dive on one of the most disruptive financial companies of this century. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourself stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bill Mann owns JD.com, Shopify, Walt Disney, and Zoom Video Communications. Chris Hill owns Airbnb, Inc., Amazon, Shopify, and Walt Disney. Keith Speights owns AbbVie, Amazon, Pfizer, Viatris Inc., and Walt Disney. Olivia Zitkus owns Airbnb, Inc., Pfizer, and Walt Disney. The Motley Fool owns and recommends Airbnb, Inc., Amazon, JD.com, Shopify, TripAdvisor, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Hyatt Hotels, Marriott International, and Viatris Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, short January 2023 $1,160 calls on Shopify, and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | There's plenty of growth for Shopify, but I can just simply guarantee as a stock, that is now down by 60 percent over the last three months, this share price is going to continue to visit a lot of different places over time. In addition to its agreement with Amgen, AbbVie has at least eight other Humira biosimilar settlements with companies like Boehringer Ingelheim, Viatris, Samsung Bioepis, Mylan, and Novartis. The bottom line is that AbbVie will definitely feel some pain from biosimilar competition in the US market for Humira, but the company should be in good shape to weather this storm. | In this week's episode of Motley Fool Money, Motley Fool analyst Olivia Zitkus and Motley Fool contributor Keith Speights, along with host Chris Hill, discuss a new wave of biosimilar drugs and the challenges (and opportunities for investors) that they present. The Motley Fool owns and recommends Airbnb, Inc., Amazon, JD.com, Shopify, TripAdvisor, Walt Disney, and Zoom Video Communications. The Motley Fool recommends Hyatt Hotels, Marriott International, and Viatris Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, short January 2023 $1,160 calls on Shopify, and short January 2024 $155 calls on Walt Disney. | In this week's episode of Motley Fool Money, Motley Fool analyst Olivia Zitkus and Motley Fool contributor Keith Speights, along with host Chris Hill, discuss a new wave of biosimilar drugs and the challenges (and opportunities for investors) that they present. Chris Hill: Last thing and then we'll move on, because I think that there are always going to be people who will lump JD.com, and Shopify in the same big bucket of, "Well, these are e-commerce companies." The Motley Fool recommends Hyatt Hotels, Marriott International, and Viatris Inc. and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $115 calls on Marriott International, long January 2024 $145 calls on Walt Disney, short January 2023 $1,160 calls on Shopify, and short January 2024 $155 calls on Walt Disney. | Also, Motley Fool analyst Bill Mann discusses: Retail sales growing nearly 4% in January. I want to get to Shopify, I want to get to Airbnb. I don't own shares of any of those companies, but I look at that, I look at what Airbnb is doing. |
31759.0 | 2022-03-02 00:00:00 UTC | 2 Fantastic Dividend Stocks for Retirees | ABT | https://www.nasdaq.com/articles/2-fantastic-dividend-stocks-for-retirees | nan | nan | Many retirees face the challenge of how to bring in regular income beyond their Social Security benefits. One way to make sure the bill are paid (or in some cases, the beach house mortgage is covered) is to invest in companies that pay dividends.
AbbVie (NYSE: ABBV) and Kimberly-Clark (NYSE: KMB) are two income stocks that investors nearing retirement may want to consider buying in the pursuit of stress-free Golden Years. AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. Let's take a look at both.
Image source: Getty Images.
1. AbbVie: A 134% stock price gain adds to its benefit
AbbVie was spun off from Abbott Laboratories in 2013 and evolved into the research-based pharmaceutical business it is today. Its stock has risen 326% dating back to January 2013. That's an average of 32.6% per year for 10 years, which towers over the S&P 500's average return of 13.9% over that same time period.
The stock carries a current dividend yield of 3.94%, which is at the high end and above the average dividend yield for healthcare companies of 2.28%.
AbbVie pays out its dividends quarterly, resulting in a current total annual dividend of $5.64 per share. To elucidate that number, a $10,000 investment in AbbVie in 2013 would have bought you 293 shares. Today, that position would be worth almost $42,000, and the dividends paid in 2021 alone would have been $1,520 -- roughly $127 per month before taxes. On average, AbbVie has increased its dividend by 11% per year going back to 2015.
The company's guidance for the midpoint (GAAP diluted) EPS in fiscal 2022 is $9.36 -- reflecting a 45% increase over 2021, driven by anticipated sales growth across its product pipeline. But its leading drug Humira -- which treats arthritis, Crohn's disease, and other diseases -- faces growing competition and is projected to decline by $8.4 billion in sales in 2022, and by nearly 45% in 2023 from its 2021 totals due to patent expirations.
Helping offset the anticipated decline in Humira sales is a projected $15 billion in combined 2025 sales for its Rinvoq and Skyrizi, which would be a huge leap over the 2021 combined sales of $4.6 billion.
Assets from the 2020 Allergan acquisition are also cushioning the erosion of Humira, including Botox, Vraylar, Ubrelvy, and Juvederm. These performed well in 2021 and should keep growing in 2022 with each reaching sales of over $1 billion. 2022 guidance is pushing nearly $6 billion for aesthetics, driven by Botox Cosmetic and Juvederm which are expected to make up 73% of business unit sales.
Efficiencies from the deal should also help, to the tune of an anticipated $2.5 billion cost synergy. Expenses attributed to SG&A and R&D are both expected to rise by 9% this year but that's compared to an otherwise 24% increase that would have happened without Allergan.
Thanks to a strong pipeline, a strategic acquisition, healthy dividends, and a management team optimizing operating margin, AbbVie could provide retirees with an investment opportunity to pull in the additional income they seek throughout their golden years.
2. Kimberly-Clark: A buy-the-dip opportunity
Kimberly-Clark is being crowned a Dividend King as of this year. The company boasts the top one or two personal care brands in over 80 countries including Cottonelle, Depend, Huggies, Kleenex, and Scott. Although inflation and supply disruption can lead to higher pricing, these products can withstand market downturns.
The stock price has been volatile, but it has grown by 59% since 2013 -- the year of AbbVie's spin off. But over the past five years, the company's share price has fluctuated and is currently $131 per share -- the same level as five years ago.
Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P.
The company also keeps pace with AbbVie in payout ratio, paying out over 85% of total earnings to shareholders in dividends. To put that number in perspective, only 12 other companies in the top 100 high-dividend stocks list offer a payout ratio that high.
In January, Kimberly-Clark's fourth-quarter earnings beat estimates, and sales were up year over year. But the updated outlook calls for a 2022 net sales increase of 1% to 2%, while consensus estimates are looking for over 3%.
The company approved a 1.8% dividend increase for this year which will take effect in April based on investors of record on March 4. For investors looking for faster dividend payout, now might be a good time to jump in. But if you're looking for the same long-term dividend at a potentially less expensive price, there's a good chance the stock will dip if Q1 results in April fail to meet expectations.
Should you invest in both now?
If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. But both of these Dividend Kings make a strong case for long-term investors looking to generate consistent income during retirement to fund their lifestyle, healthcare costs or even for dividend reinvestment.
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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 guidance for the midpoint (GAAP diluted) EPS in fiscal 2022 is $9.36 -- reflecting a 45% increase over 2021, driven by anticipated sales growth across its product pipeline. 2022 guidance is pushing nearly $6 billion for aesthetics, driven by Botox Cosmetic and Juvederm which are expected to make up 73% of business unit sales. Thanks to a strong pipeline, a strategic acquisition, healthy dividends, and a management team optimizing operating margin, AbbVie could provide retirees with an investment opportunity to pull in the additional income they seek throughout their golden years. | Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P. If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. But both of these Dividend Kings make a strong case for long-term investors looking to generate consistent income during retirement to fund their lifestyle, healthcare costs or even for dividend reinvestment. | AbbVie and Kimberly Clark have been increasing dividends for 50 consecutive years, earning them the status of Dividend Kings. Though price appreciation trails AbbVie, Kimberly-Clark pays an annual dividend of $4.64 at a yield of 3.52%, compared to a 2.25% average for consumer goods stocks in the S&P. If I had to choose between one or the other right now, I'd go with AbbVie, based on its growth trajectory, stock price history, and higher annual dividend payout -- considering the per-share stock price of AbbVie is only 10% higher than Kimberly-Clark. | On average, AbbVie has increased its dividend by 11% per year going back to 2015. Helping offset the anticipated decline in Humira sales is a projected $15 billion in combined 2025 sales for its Rinvoq and Skyrizi, which would be a huge leap over the 2021 combined sales of $4.6 billion. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Jeff Little has no position in any of the stocks mentioned. |
31760.0 | 2022-03-01 00:00:00 UTC | Abbott Recalls Another Lot Of Simila After A Second Infant-fatality | ABT | https://www.nasdaq.com/articles/abbott-recalls-another-lot-of-simila-after-a-second-infant-fatality | nan | nan | (RTTNews) - The United States Food and Drug Administration has added another Abbott Nutrition baby solution to the list of recalls after another unfortunate death of an infant was reported, taking the toll to two. The FDA has reported five cases of infant illness due to the solution.
The original real included the brand's Similac, Alimentum, and EleCare while the FDA has added another Similac formula to the list.
The investigation opened on February 17 after the FDA announced that the customers have lodged complaints of Cronobacter infection among the infants. The variants of the bacteria, Cronobacter sakazakii and Salmonella Newport were reportedly found in the products that were manufactured in the Sturgis, Michigan, facility of the company.
The recent case of the death of the infant shows that the patient had consumed Similac PM 60/40 and when the company was informed about the development, it issued a voluntary recall of the product with the lot code 27032K80 (can) and 27032K800 (case).
"The most recent patient was reported to have consumed Abbott Nutrition's Similac PM 60/40 product with the lot code 27032K800 prior to Cronobacter sakazakii infection," said the FDA. The recent lot was also produced in the Michigan facility and was then distributed across the US and Israel.
Abbott posted on its website, "This case is under investigation, and at this time the cause of the infant's Cronobacter sakazakii infection has not been determined. We want to extend our heartfelt sympathies to the family." The company has also said that no other product was tested positive with the bacteria.
According to the CDC, Cronobacter can cause severe sepsis or meningitis in infants which often becomes life-threatening. The FDA has issued a method of identification for the products in question, The first two digits of the code are 22 through 37 The code has K8, SH, or Z2 The expiration date is 4-1-2022 or later The lot number can also be searched on the company website.
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 United States Food and Drug Administration has added another Abbott Nutrition baby solution to the list of recalls after another unfortunate death of an infant was reported, taking the toll to two. The variants of the bacteria, Cronobacter sakazakii and Salmonella Newport were reportedly found in the products that were manufactured in the Sturgis, Michigan, facility of the company. "The most recent patient was reported to have consumed Abbott Nutrition's Similac PM 60/40 product with the lot code 27032K800 prior to Cronobacter sakazakii infection," said the FDA. | (RTTNews) - The United States Food and Drug Administration has added another Abbott Nutrition baby solution to the list of recalls after another unfortunate death of an infant was reported, taking the toll to two. The recent case of the death of the infant shows that the patient had consumed Similac PM 60/40 and when the company was informed about the development, it issued a voluntary recall of the product with the lot code 27032K80 (can) and 27032K800 (case). "The most recent patient was reported to have consumed Abbott Nutrition's Similac PM 60/40 product with the lot code 27032K800 prior to Cronobacter sakazakii infection," said the FDA. | The recent case of the death of the infant shows that the patient had consumed Similac PM 60/40 and when the company was informed about the development, it issued a voluntary recall of the product with the lot code 27032K80 (can) and 27032K800 (case). "The most recent patient was reported to have consumed Abbott Nutrition's Similac PM 60/40 product with the lot code 27032K800 prior to Cronobacter sakazakii infection," said the FDA. The FDA has issued a method of identification for the products in question, The first two digits of the code are 22 through 37 The code has K8, SH, or Z2 The expiration date is 4-1-2022 or later The lot number can also be searched on the company website. | The variants of the bacteria, Cronobacter sakazakii and Salmonella Newport were reportedly found in the products that were manufactured in the Sturgis, Michigan, facility of the company. The recent case of the death of the infant shows that the patient had consumed Similac PM 60/40 and when the company was informed about the development, it issued a voluntary recall of the product with the lot code 27032K80 (can) and 27032K800 (case). "The most recent patient was reported to have consumed Abbott Nutrition's Similac PM 60/40 product with the lot code 27032K800 prior to Cronobacter sakazakii infection," said the FDA. |
31761.0 | 2022-03-01 00:00:00 UTC | Up 9% In A Month, Will Intuitive Surgical Stock Continue To See Higher Levels? | ABT | https://www.nasdaq.com/articles/up-9-in-a-month-will-intuitive-surgical-stock-continue-to-see-higher-levels | nan | nan | The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 9% rise in a month, outperforming the broader indices, with the S&P500 down around 2%. Last month the company reported an upbeat Q4, but ISRG stock saw a 10% fall in a week following its earnings release, primarily due to its Q1 outlook. The company expects a significant adverse impact on procedures in Q1 2022, owing to the spread of Omicron.
In our previous update on Intuitive Surgical, we maintained our view that ISRG stock is undervalued, and the dip following its Q4 release can be used as a buying opportunity. ISRG stock has risen 10% since then, and it has still more room for growth, in our view. Omicron is a milder variant of Covid-19, compared to its predecessors. Over the last few weeks, the average number of active cases (7-day average) has plummeted to around 78K currently, compared to its recent peak of 800K cases seen in mid-January. This means that healthcare institutions will have more room to attend to elective procedures, boding well for Intuitive Surgical, and the impact of Omicron may not be as profound on its Q1 and beyond, as anticipated by the company. We estimate Intuitive Surgical Valuation to be around $345 per share, reflecting a 20% upside from its current levels of $288.
But what about the near term? Given that ISRG stock has seen a rise of 9% in a month, will it continue its upward trajectory, or is a fall imminent? Going by its historical performance, there is a higher chance of a rise in ISRG stock over the next month. Out of 350 instances in the last ten years that ISRG stock saw a twenty-one-day increase of 9% or more, 211 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 211 out of 350, or about a 60% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of Rise for more details.
While ISRG stock may see higher levels over the next month, it is helpful to see how its peers stack up. Check out Intuitive Surgical Peers to see how ISRG stock compares against peers on metrics that matter. You can find more useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years’ data
After moving -0.9% or more over five days, the stock rose on 58% of the occasions in the next five days.
After moving -1.3% or more over ten days, the stock rose in the next ten days on 61% of the occasions
After moving 9.2% or more over a twenty-one-day period, the stock rose on 60% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in ISRG stock over the next five days, ten days, and one month.
Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers
Five-Day Return: MDT highest at 0.2%; BDX lowest at -1.8%
Ten-Day Return: SYK highest at 1.0%; BDX lowest at -3.9%
Twenty-One Days Return: ISRG highest at 9.2%; MDT lowest at -0.8%
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ISRG stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Medtronic vs. IDEXX Laboratories.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return 1% -20% 309%
S&P 500 Return -5% -10% 92%
Trefis MS Portfolio Return -3% -12% 246%
[1] Month-to-date and year-to-date as of 2/24/2022
[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. | Last month the company reported an upbeat Q4, but ISRG stock saw a 10% fall in a week following its earnings release, primarily due to its Q1 outlook. In our previous update on Intuitive Surgical, we maintained our view that ISRG stock is undervalued, and the dip following its Q4 release can be used as a buying opportunity. This means that healthcare institutions will have more room to attend to elective procedures, boding well for Intuitive Surgical, and the impact of Omicron may not be as profound on its Q1 and beyond, as anticipated by the company. | Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 0.2%; BDX lowest at -1.8% Ten-Day Return: SYK highest at 1.0%; BDX lowest at -3.9% Twenty-One Days Return: ISRG highest at 9.2%; MDT lowest at -0.8% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ISRG stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] ISRG Return 1% -20% 309% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/24/2022 [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. | Out of 350 instances in the last ten years that ISRG stock saw a twenty-one-day increase of 9% or more, 211 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 0.2%; BDX lowest at -1.8% Ten-Day Return: SYK highest at 1.0%; BDX lowest at -3.9% Twenty-One Days Return: ISRG highest at 9.2%; MDT lowest at -0.8% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] ISRG Return 1% -20% 309% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/24/2022 [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. | Check out Intuitive Surgical Peers to see how ISRG stock compares against peers on metrics that matter. This pattern suggests a higher chance of a rise in ISRG stock over the next five days, ten days, and one month. Total [2] ISRG Return 1% -20% 309% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/24/2022 [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. |
31762.0 | 2022-02-28 00:00:00 UTC | Abbott recalls more Similac-branded baby formula | ABT | https://www.nasdaq.com/articles/abbott-recalls-more-similac-branded-baby-formula | nan | nan | Feb 28 (Reuters) - Abbott Laboratories ABT.N recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. Food and Drug Administration (FDA) said on Monday.
A few days earlier, Abbott recalled certain Alimentum, Similac and EleCare baby formulas made at the facility in Sturgis city following complaints about bacterial infections in infants who consumed the products.
The FDA had then said it was investigating the consumer complaints.
The investigation included four reports of Cronobacter sakazakii infections in infants and one complaint of a Salmonella Newport infection in an infant, the federal agency said on Monday, adding that Cronobacter might have contributed to death in two patients.
Cronobacter sakazakii bacteria can cause serious invasive infections and premature infant death. The most recent U.S. outbreak spanned four states in 2011.
The recalled Similac PM 60/40 products were distributed to the United States and Israel, the federal agency said. It is working with Abbott on safely resuming production at the Michigan facility.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)
((Praveen.Paramasivam@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 28 (Reuters) - Abbott Laboratories ABT.N recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. Food and Drug Administration (FDA) said on Monday. A few days earlier, Abbott recalled certain Alimentum, Similac and EleCare baby formulas made at the facility in Sturgis city following complaints about bacterial infections in infants who consumed the products. The recalled Similac PM 60/40 products were distributed to the United States and Israel, the federal agency said. | Feb 28 (Reuters) - Abbott Laboratories ABT.N recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. Food and Drug Administration (FDA) said on Monday. A few days earlier, Abbott recalled certain Alimentum, Similac and EleCare baby formulas made at the facility in Sturgis city following complaints about bacterial infections in infants who consumed the products. The investigation included four reports of Cronobacter sakazakii infections in infants and one complaint of a Salmonella Newport infection in an infant, the federal agency said on Monday, adding that Cronobacter might have contributed to death in two patients. | Feb 28 (Reuters) - Abbott Laboratories ABT.N recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. Food and Drug Administration (FDA) said on Monday. A few days earlier, Abbott recalled certain Alimentum, Similac and EleCare baby formulas made at the facility in Sturgis city following complaints about bacterial infections in infants who consumed the products. The investigation included four reports of Cronobacter sakazakii infections in infants and one complaint of a Salmonella Newport infection in an infant, the federal agency said on Monday, adding that Cronobacter might have contributed to death in two patients. | Feb 28 (Reuters) - Abbott Laboratories ABT.N recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. Food and Drug Administration (FDA) said on Monday. A few days earlier, Abbott recalled certain Alimentum, Similac and EleCare baby formulas made at the facility in Sturgis city following complaints about bacterial infections in infants who consumed the products. The investigation included four reports of Cronobacter sakazakii infections in infants and one complaint of a Salmonella Newport infection in an infant, the federal agency said on Monday, adding that Cronobacter might have contributed to death in two patients. |
31763.0 | 2022-02-27 00:00:00 UTC | Up 700%, DexCom Stock Still Has Tons of Room To Run | ABT | https://www.nasdaq.com/articles/up-700-dexcom-stock-still-has-tons-of-room-to-run | nan | nan | Even with significant success over the past four years, DexCom (NASDAQ: DXCM) appears set to continue its growth in 2022 and beyond. In this segment of "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Taylor Carmichael and Brian Withers discuss the medical device company's encouraging outlook.
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Taylor Carmichael: I decided to pull up the chart for DexCom from when they last released their device, the G6, that was four years ago. You can see what they did their stock has gone up 700% in four years. Nice eight-bagger that anybody would like that and it just absolutely killed the S&P 500. Ten times better than the S&P 500 and they're coming out with a new device this year.
The stock you will see has been hit pretty hard the last quarter or so. It's down fairly significantly from its highs. A good buying opportunity I think for somebody who's got a long time horizon, DexCom is looking really strong over the next few years.
Let's go over the results a little bit. In Q4, they had about $700 million in revenues, a 23% gain, that's a slight beat. Earnings, they had a major miss with their earnings. It was 21% off and then they didn't actually explain why, I did some digging. Part of it is they're building up for their launch, G7. And they are expecting to get the clearance in Europe really soon. They have already submitted for both the FDA and for the EU. They are expecting European clearance really soon and FDA clearance, I think sometime this quarter so they're really prepping for the launch and maybe they spent more money than they thought they would.
There's also a payment they had to make from a contract. I forget who was with, five years ago and they might not have expected that hit, or I don't know how they missed so much, but they did most for the quarter. They kept our outlook steady for the year $2.82 billion for 2022, and that's the low to 2.94 so basically almost $3 billion in revenues in 2022.
They launched the DexCom ONE product. This is a software solution and basically works with the G6 and it's a European thing. They launched in some Eastern European countries, Latvia, Estonia. Not major news, some small news, but it's just they are expanding their total addressable markets.
The big thing though is submitting the application to the FDA for the G7 and for the CE Mark in Europe. There are 500 million adults in the world with diabetes and the cost of treatment is almost $1 trillion. Diabetes is just a huge market. DexCom is a one-hit-wonder, that's what they do. They're continuing the glucose monitoring system.
The traditional standard-of-care was you do a little pinprick with a needle and check intermittently what's your blood sugar levels are and with DexCom it's continuous, it's a little under the skin device. It's real high-tech, really cool. They have 1.2 million patients now and they say their TAM will expand to 19 million by next year. Thus through expanding their available markets to where they're going to do their thing. DexCom is just a monster stock. Do you own this one, Brian?
Brian Withers: I actually don't. My sister does. I've talked to one of the folks who wears one of these continuous glucose monitors, and he just loves it. It's way better than the classic solution of testing on your own. It's got a neat app that interfaces with your iPhone or Android device. It just really ups the standard of care for folks who have diabetes.
Carmichael: Yeah. They basically have one competitor which is Abbott Labs (NYSE: ABT). Well, their existing competition is the traditional standard of care with the needles. But they have another continuing glucose monitoring competitor in Abbott Labs and that's a serious competition. DexCom is generally considered to be the high-end. It is more expensive, I believe device. It's considered by many to be a little stronger device on the technical side.
But Abbott's doing really well with their device too, and it's a huge market. Basically a duopoly right now in this section of the healthcare universe, $42 billion market cap. Their TAM is ten times bigger than where they are now. This company can seriously grow over the next five to ten years. It's not going to be a super-fast grower. But I think this is a very strong stock for more conservative investors.
Brian Withers has no position in any of the stocks mentioned. Taylor Carmichael has no position in any of the stocks mentioned. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They basically have one competitor which is Abbott Labs (NYSE: ABT). Even with significant success over the past four years, DexCom (NASDAQ: DXCM) appears set to continue its growth in 2022 and beyond. A good buying opportunity I think for somebody who's got a long time horizon, DexCom is looking really strong over the next few years. | They basically have one competitor which is Abbott Labs (NYSE: ABT). In this segment of "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Taylor Carmichael and Brian Withers discuss the medical device company's encouraging outlook. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | They basically have one competitor which is Abbott Labs (NYSE: ABT). In this segment of "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Taylor Carmichael and Brian Withers discuss the medical device company's encouraging outlook. * They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them! | They basically have one competitor which is Abbott Labs (NYSE: ABT). In this segment of "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Taylor Carmichael and Brian Withers discuss the medical device company's encouraging outlook. * They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them! |
31764.0 | 2022-02-27 00:00:00 UTC | If You Invested $25,000 in AbbVie In 2013, This Is How Much You Would Have Today | ABT | https://www.nasdaq.com/articles/if-you-invested-%2425000-in-abbvie-in-2013-this-is-how-much-you-would-have-today | nan | nan | AbbVie (NYSE: ABBV) is one of the top healthcare companies in the world, with a market cap of $256 billion. That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013.
The stock has been a major performer for shareholders. But just how much would you have made if you'd invested $25,000 in AbbVie when it first began trading?
Image source: Getty Images.
Today, your shares would be worth more than $100,000
The stock debuted on Jan. 2, 2013, as a spin-off from Abbott Labs, and it was priced at $35. If you'd invested $25,000 into the company then, that would have secured you about 714 shares of the healthcare business.
Currently, the stock trades at around $145, putting the value of those shares at roughly $103,530, a return of 314% -- not including the dividends the company paid over that time.
AbbVie's dividend payout is 3.8%, which is well above the S&P 500 average of 1.3%. And the company has also been increasing its dividends, growing them from $0.40 in 2013 to $1.41 today, for an increase of 253%. For income investors, that gives them an extra incentive to hold on to the stock for the long haul, getting more for their original investment.
When including the dividend payments, AbbVie's stock, since trading publicly, has soundly outperformed not just the S&P 500 but Abbott Laboratories.
ABBV Total Return Level data by YCharts
Why has the stock done so well?
Beyond being attractive for its dividend, AbbVie has also been a growth machine. In just four years, its revenue of $28.2 billion in 2017 has soared to $56.2 billion this past year. And its net income has increased by 117% during that time, from $5.3 billion to $11.5 billion. The business is consistently profitable, earning a 20% profit margin over the past 12 months.
Back in 2017, the company had 11 key drugs contributing to its revenue, with rheumatoid arthritis medication Humira leading the way at $18.4 billion, accounting for 65% of all net sales. Today, AbbVie has more than 20 drugs itemized on its earnings report as being key contributors. Humira's sales of $20.7 billion will likely decline in the future as it faces losses in exclusivity, but the business isn't as dependent on it -- just 37% of its revenue comes from that drug. AbbVie closed on a $63 billion acquisition of Botox-maker Allergan in 2020 that has given it a whole new segment focused on aesthetics, and that makes the company even more diversified.
Is it still a buy today?
Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively.
There's considerable value here from an investor's standpoint, as AbbVie can be a great source of recurring income with its juicy dividend yield and the business is well-positioned as doctors and hospitals resume their usual operations.
Although there are concerns about the loss of revenue from Humira as it begins to lose exclusivity next year, AbbVie's business looks to be in solid shape and a diverse portfolio of drugs will help it keep growing for many years to come, continuing to reward investors who hold on.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Back in 2017, the company had 11 key drugs contributing to its revenue, with rheumatoid arthritis medication Humira leading the way at $18.4 billion, accounting for 65% of all net sales. Humira's sales of $20.7 billion will likely decline in the future as it faces losses in exclusivity, but the business isn't as dependent on it -- just 37% of its revenue comes from that drug. There's considerable value here from an investor's standpoint, as AbbVie can be a great source of recurring income with its juicy dividend yield and the business is well-positioned as doctors and hospitals resume their usual operations. | That's a higher valuation than Abbott Laboratories' $209 billion which AbbVie spun off from in 2013. Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively. See the 10 stocks *Stock Advisor returns as of January 20, 2022 David Jagielski has no position in any of the stocks mentioned. | Today, AbbVie's stock trades at a forward price-to-earnings multiple of 10, which is still relatively modest when compared to other notable healthcare companies, including Abbott Laboratories and Eli Lilly, which trade at 24 and 28 times their future earnings, respectively. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of January 20, 2022 David Jagielski has no position in any of the stocks mentioned. | Currently, the stock trades at around $145, putting the value of those shares at roughly $103,530, a return of 314% -- not including the dividends the company paid over that time. And its net income has increased by 117% during that time, from $5.3 billion to $11.5 billion. Is it still a buy today? |
31765.0 | 2022-02-26 00:00:00 UTC | 3 Pharma Stocks That Retired Investors Should Love | ABT | https://www.nasdaq.com/articles/3-pharma-stocks-that-retired-investors-should-love | nan | nan | I loathe broccoli. But my family loves it. Different people have different preferences when it comes to food. It's a similar story with investing. Some stocks that appeal to younger investors won't appeal to retired investors -- and vice versa.
We asked three Motley Fool contributors to weigh in on pharmaceutical stocks that they think retired investors should love. Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK).
Image source: Getty Images.
Checking off all the boxes
Keith Speights (AbbVie): What do retired investors want from a stock? Attractive dividends are high on the list for most people. Retirees also don't want the stock to lose a lot of its valuation. Therefore, the underlying business must be strong. And the valuation shouldn't be exorbitant. I think that AbbVie checks off all these boxes.
The company's dividend currently yields close to 3.9%. You can expect the dividend to grow in the future. AbbVie is a Dividend Aristocrat that has increased its dividend by over 250% since its spin-off from Abbott Labs in 2013.
Some might wonder how strong AbbVie's business is now, though. Humira, the company's top-selling product, loses U.S. exclusivity next year. Anticipated sales declines for the autoimmune disease drug will certainly hurt AbbVie.
However, the company expects to quickly return to growth after a temporary lull. AbbVie especially looks for tremendous momentum from Humira's two successors, Rinvoq and Skyrizi.
As for valuation, AbbVie is one of the cheapest pharma stocks around. Its shares trade at only a little over 10 times expected earnings. The effect of Humira's coming U.S. loss of exclusivity is already baked into AbbVie's share price.
Slow and steady wins the race
Prosper Junior Bakiny (Gilead Sciences): Retired investors often look for undervalued blue-chip companies with stable business and high dividend yields. Biotech giant Gilead Sciences fits that description pretty well. Although the company has faced headwinds in the past couple of years, lifesaving medicines will always be in high demand. Gilead Sciences has a long and impressive history of developing novel drugs.
The company is one of the leaders in the market for HIV medicines. Gilead Sciences' Biktarvy remains the top prescribed HIV drug in the U.S., with a 42% share of the market. Biktarvy's market share grew by 5% in 2021. Descovy controls a 45% share of the HIV pre-exposure prophylaxis (PrEP) market in the U.S.
Gilead's HIV portfolio has struggled with patient starts because of the COVID-19 pandemic, but it has helped keep the biotech's revenue and earnings afloat. What's more, the company is hoping to add new products to this lineup soon. Most notably, Gilead awaits regulatory approval for a potential six-month, long-acting HIV regimen called lenacapavir. This treatment could easily reach blockbuster status.
If approved later this year, lenacapavir will become the first HIV therapy administered every six months. Investors can expect it to pull serious market share away from competitors. The drug should help Gilead Sciences decrease its exposure to Veklury, a leading COVID-19 therapy that has been highly successful since the early days of the pandemic. It isn't clear how much longer Veklury will significantly contribute to Gilead's top line.
Gilead Sciences should be just fine over the long run thanks to lenacapavir and its loaded pipeline. The company currently offers a dividend yield of 4.7%, well above the S&P 500's average of 1.3%. And with a forward price-to-earnings ratio of just 9.2, compared to the industry's average of 10.9, Gilead Sciences looks attractively valued.
A dividend stock you can buy and forget
David Jagielski (GlaxoSmithKline): Retirees probably don't want to be taking on too much risk in their latter years. After all, it can take a long time for the markets to recover from a crash. And that's why if you're retired, you might love a stable healthcare stock like GlaxoSmithKline.
The drugmaker is an attractive option for a couple of reasons. The first is its dividend yield of more than 5%. An initial investment of $25,000 could provide $1,250 in dividend income each year.
Another reason to like GlaxoSmithKline is its consistency. The company's profit margin is normally above 10%. Glaxo continues to look for ways to grow, with its pipeline featuring more than 60 vaccines and medicines.
Although the company plans to spin off its consumer health business this year, it still projects that core biopharma operations will grow at a rate between 5% and 7%. GlaxoSmithKline's focus on a variety of therapeutic areas, including infectious diseases, HIV, oncology, and immunology, make this a stable business to invest in that has plenty of opportunities for long-term growth on the horizon.
GlaxoSmithKline stock's performance has lagged well behind the S&P 500 over the past five years. However, it offers relatively low volatility. The stock is also cheap, with a forward price-to-earnings multiple of 13.
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David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie. Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Gilead Sciences and GlaxoSmithKline. 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. | Slow and steady wins the race Prosper Junior Bakiny (Gilead Sciences): Retired investors often look for undervalued blue-chip companies with stable business and high dividend yields. The drug should help Gilead Sciences decrease its exposure to Veklury, a leading COVID-19 therapy that has been highly successful since the early days of the pandemic. GlaxoSmithKline's focus on a variety of therapeutic areas, including infectious diseases, HIV, oncology, and immunology, make this a stable business to invest in that has plenty of opportunities for long-term growth on the horizon. | Here's why they picked AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and GlaxoSmithKline (NYSE: GSK). Slow and steady wins the race Prosper Junior Bakiny (Gilead Sciences): Retired investors often look for undervalued blue-chip companies with stable business and high dividend yields. A dividend stock you can buy and forget David Jagielski (GlaxoSmithKline): Retirees probably don't want to be taking on too much risk in their latter years. | Slow and steady wins the race Prosper Junior Bakiny (Gilead Sciences): Retired investors often look for undervalued blue-chip companies with stable business and high dividend yields. A dividend stock you can buy and forget David Jagielski (GlaxoSmithKline): Retirees probably don't want to be taking on too much risk in their latter years. See the 10 stocks *Stock Advisor returns as of January 20, 2022 David Jagielski has no position in any of the stocks mentioned. | Some might wonder how strong AbbVie's business is now, though. And that's why if you're retired, you might love a stable healthcare stock like GlaxoSmithKline. The Motley Fool recommends Gilead Sciences and GlaxoSmithKline. |
31766.0 | 2022-02-25 00:00:00 UTC | What To Expect From Medtronic's Q3? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-medtronics-q3 | nan | nan | [Updated: Feb 17, 2022] Medtronic Q3FY22 Earnings Preview
Medtronic stock (NYSE: MDT) is scheduled to report its fiscal third-quarter results on Tuesday, Feb 22. We expect Medtronic to post revenues and earnings above the consensus estimates. The company is likely to benefit from improved demand for medical devices with a rebound in the volume of elective surgeries. However, the wide spread of Omicron, and its impact on overall healthcare services in some geographies, is likely to impact the company’s overall performance in Q3. Furthermore, Trefis’ forecast indicates that Medtronic stock is currently undervalued, 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 Q3 fiscal 2022 total revenues to be around $8.0 billion, slightly above the $7.9 billion consensus estimate.
While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand, with a rebound in the volume of procedures, likely helped the company navigate well during the quarter.
That said, the Omicron spread is likely to impact the top-line growth due to postponement of elective surgeries in some geographies.
In Q2 fiscal 2022, the company reported a 3% y-o-y revenue growth, led by a low single-digit growth across the four segments – Cardiovascular, Medical-Surgical, Neuroscience, and Diabetes.
Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
(2) EPS is expected to be above the consensus estimates
Medtronic’s Q3 fiscal 2022 adjusted earnings per share (EPS) is expected to be $1.40 per Trefis analysis, marginally above the $1.37 figure per the consensus estimate.
Medtronic’s Non-GAAP net income of $1.8 billion in Q2 fiscal 2022 reflected a good 30% growth from its $1.4 billion profit in the prior-year quarter, primarily due to increase in revenues as well as net margins expanding 480 bps, with operating expenses growing at a slower pace compared to the revenues.
Looking at the full fiscal 2022, we expect a 29% y-o-y growth in EPS to $5.71, compared to $4.43 in fiscal 2021.
(3) MDT Stocks Looks Undervalued
We estimate Medtronic’s Valuation to be $144, reflecting a significant 40% upside potential from its current levels of $103.
This represents a P/EBITDA of 41x based on Medtronic’s EBITDA for the last twelve months.
The 41x P/EBITDA compares with an average of around 33x between 2018 and 2021, and levels of around 30x MDT stock is trading at currently.
If the company reports upbeat results, as we anticipate, and provided an optimistic outlook for full fiscal 2022, MDT stock will likely see higher levels, resulting in a higher P/EBITDA multiple compared to 30x currently.
Below you’ll find our previous coverage of MDT stock, where you can track our view over time.
[Updated: Jan 6, 2022] Medtronic Stock Update
The stock price of Medtronic has seen a fall of 4% over the last month, underperforming the broader indices, with the S&P 500 rising 2% over the same period. This underperformance can largely be attributed to the U.S. FDA’s warning letter to Medtronic for its Northridge facility in California citing inadequacy of medical devices quality system requirements. The agency is not pleased with how Medtronic handled its faulty MiniMed 600 insulin pumps, which were recalled in 2019, after more than thousands of complaints were reported over the span of three years. MDT stock fell over 6% in a single trading session on Dec 15, when the company made the FDA’s letter public. The reason for the fall was mounting concerns over the approval of Medtronic’s most advanced insulin pump system – MiniMed 780G, which is already available in 38 countries and under review by the U.S. FDA. If approved, it will likely result in a strong growth for the company’s diabetes business, which garnered $2.4 billion in sales last fiscal year, reflecting 8% of the company’s total sales.
MDT stock has also been weighed down due to multiple downgrades from the Wall Street analysts over the last month or so. However, we find MDT stock to be attractively valued at its current levels. Going by our Medtronic Valuation of $144 per share, based on $5.71 expected adjusted EPS and a 25x P/E multiple for fiscal 2022, there is around 36% upside from its current levels of $106, implying that MDT stock is currently undervalued and it will likely see higher levels going forward, in our view. Even if were to look at the average price estimate of $132 per the analysts forecasts, it reflects a large 25% upside for MDT stock.
Looking at the near term, it appears that MDT stock is likely to see higher levels. Going by historical performance, there is a higher chance of a rise in MDT stock over the next month. Out of 333 instances in the last ten years that MDT stock saw a twenty-one day fall of 4% or more, 192 of them resulted in MDT stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 192 out of 333, or about 58% chance of a rise in MDT stock over the coming month, implying that MDT stock may see higher levels in the near term. See our analysis on Medtronic Stock Chance of A Rise for more details.
While MDT stock may see higher levels going forward, it is helpful to see how its peers stack up. Check out Medtronic Stock Comparison With Peers to see how MDT stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving 2.0% or more over a five-day period, the stock rose in the next five days on 50% of the occasions.
After moving 4.3% or more over a ten-day period, the stock rose in the next ten days on 58% of the occasions
After moving -3.8% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 58% of the occasions.
This pattern suggests that there are higher chances of a rise in MDT stock over the next ten days and one month, while there is an equal chance of a rise or a fall over the next five days.
Medtronic (MDT) Stock Return (Recent) Comparison With Peers
Five-Day Return: MDT highest at 2.0%; ISRG lowest at -6.4%
Ten-Day Return: BAX highest at 4.8%; ISRG lowest at -1.8%
Twenty-One Days Return: BAX highest at 10.9%; MDT lowest at -3.8%
[Updated: Nov 26, 2021] Medtronic Earnings Update
Medtronic (NYSE:MDT) recently reported its Q2 FY22 results, which were mixed with revenue slightly below, and earnings above our estimates. The company reported sales of around $7.8 billion (up 3% y-o-y), compared to our estimate of $8.0 billion. While cardiovascular and neuroscience segments revenue grew over 3% each, medical surgical segment sales were up under 1%. The company’s management stated that the impact of Covid-19 was greater than earlier anticipated. Our dashboard on Medtronic’s Revenues offers more details on the company’s segments.
Looking at the bottom-line, the company reported adjusted earnings of $1.32 per share, compared to $1.02 in the prior year quarter. The earnings were slightly above our forecast of $1.30 per share and the $1.29 per share consensus estimate. The company saw 470 bps operating margin expansion, bolstering the overall earnings growth.
Following a mixed performance in Q2FY22, Medtronic lowered its full-fiscal outlook, with revenue now estimated to grow between 7% and 8%, compared to its prior guidance of 9% growth. However, the company affirmed its earnings outlook of $5.65 to $5.75.
We have also updated our model following the Q2 release. We are maintaining our sales forecast to be around $33 billion in fiscal 2022, with Medtronic to see a strong uptake in 780G insulin pumps and its continuous glucose monitoring system – Guardian 4 (currently awaiting regulatory approvals). We also expect EPS to be at $5.71, compared to $4.43 in fiscal 2021, and near to the mid-point of the company’s provided range. Given these changes to our forecasts, we have revised our Medtronic Valuation to $144 per share, based on $5.71 expected adjusted EPS and a 25x P/E multiple for fiscal 2022, reflecting a 26% upside from its current levels of $114, implying that MDT stock is currently undervalued and it will likely see higher levels in the near term, in our view.
[Updated: Nov 19, 2021] Medtronic Q2 FY22 Earnings Preview
Medtronic stock (NYSE: MDT) is scheduled to report its fiscal second-quarter results on Tuesday, Nov 23. We expect Medtronic to likely post revenues and earnings largely in-line with the consensus estimates. The company is likely to benefit from an improved demand for medical devices with a rebound in the volume of elective surgeries, a trend seen with other medical device companies, as well. However, the rise of the delta variant, and its impact on overall healthcare services in some geographies, may impact the overall earnings growth.
Medtronic in its Q1earnings conference callstated that it is seeing a slowdown in total volume of procedures entering into Q2. That said, we expect the company to navigate well over the latest quarter led by economic recovery and rising demand for medical devices. Furthermore, Trefis’ forecast indicates that Medtronic’s valuation is $149 per share, which is 27% higher than the current market price of around $118, implying that the stock is undervalued, in our view. Our interactive dashboard analysis on Medtronic’s Pre-Earnings has additional details.
(1) Revenues expected to be in-line with the consensus estimate
Trefis estimates Medtronic’s Q2 fiscal 2022 total revenues to be around $8.0 billion, in-line with the consensus estimates. While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand, with a rebound in volume of procedures, likely helped the company navigate well during the quarter. In Q1 fiscal 2022, the company reported a solid 23% y-o-y growth in revenue, led by a 29% growth in neuroscience as well as in medical surgical business, while cardiovascular segment sales were up 19%, and this trend could continue, albeit revenues growing at a slower pace given the impact of the delta variant on overall procedures volume. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be in-line with the consensus estimates
Medtronic’s Q2 fiscal 2022 earnings per share (EPS) is expected to be $1.30 per Trefis analysis, in-line with the consensus estimate of $1.29. Medtronic’s Non-GAAP net income of $1.9 billion in Q1 fiscal 2022, reflected a sharp 2.3x growth from its $836 million profit in the prior year quarter, primarily due to growth in revenues as well as net margins expanding over 1000 bps, with operating expenses growing at a slower pace compared to the revenues. Looking at the full fiscal 2022, we expect a 30% y-o-y growth in EPS to $5.75, compared to $4.43 in fiscal 2021.
(3) Stock price estimate 27% above the current market price
Going by our Medtronic Valuation, with an EPS estimate of around $5.75 and P/E multiple of 26x in fiscal 2022, this translates into a price of $149, which is 27% above the current market price of around $118. In fact, at its current levels of $118, MDT stock is trading at 20x its forward full-year earnings, and this compares with levels of nearly 30x seen as recently as late 2020, implying that the stock has more room for growth.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While MDT stock looks like can gain, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Mettler vs Abbott.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return 0% 0% 45%
S&P 500 Return -1% -6% 100%
Trefis MS Portfolio Return 2% -8% 264%
[1] Month-to-date and year-to-date as of 2/17/2022
[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. | While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand, with a rebound in the volume of procedures, likely helped the company navigate well during the quarter. This underperformance can largely be attributed to the U.S. FDA’s warning letter to Medtronic for its Northridge facility in California citing inadequacy of medical devices quality system requirements. We are maintaining our sales forecast to be around $33 billion in fiscal 2022, with Medtronic to see a strong uptake in 780G insulin pumps and its continuous glucose monitoring system – Guardian 4 (currently awaiting regulatory approvals). | Medtronic’s Non-GAAP net income of $1.8 billion in Q2 fiscal 2022 reflected a good 30% growth from its $1.4 billion profit in the prior-year quarter, primarily due to increase in revenues as well as net margins expanding 480 bps, with operating expenses growing at a slower pace compared to the revenues. Medtronic (MDT) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 2.0%; ISRG lowest at -6.4% Ten-Day Return: BAX highest at 4.8%; ISRG lowest at -1.8% Twenty-One Days Return: BAX highest at 10.9%; MDT lowest at -3.8% [Updated: Nov 26, 2021] Medtronic Earnings Update Medtronic (NYSE:MDT) recently reported its Q2 FY22 results, which were mixed with revenue slightly below, and earnings above our estimates. Medtronic’s Non-GAAP net income of $1.9 billion in Q1 fiscal 2022, reflected a sharp 2.3x growth from its $836 million profit in the prior year quarter, primarily due to growth in revenues as well as net margins expanding over 1000 bps, with operating expenses growing at a slower pace compared to the revenues. | (1) Revenues expected to be above the consensus estimate Trefis estimates Medtronic’s Q3 fiscal 2022 total revenues to be around $8.0 billion, slightly above the $7.9 billion consensus estimate. Medtronic (MDT) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 2.0%; ISRG lowest at -6.4% Ten-Day Return: BAX highest at 4.8%; ISRG lowest at -1.8% Twenty-One Days Return: BAX highest at 10.9%; MDT lowest at -3.8% [Updated: Nov 26, 2021] Medtronic Earnings Update Medtronic (NYSE:MDT) recently reported its Q2 FY22 results, which were mixed with revenue slightly below, and earnings above our estimates. Given these changes to our forecasts, we have revised our Medtronic Valuation to $144 per share, based on $5.71 expected adjusted EPS and a 25x P/E multiple for fiscal 2022, reflecting a 26% upside from its current levels of $114, implying that MDT stock is currently undervalued and it will likely see higher levels in the near term, in our view. | If the company reports upbeat results, as we anticipate, and provided an optimistic outlook for full fiscal 2022, MDT stock will likely see higher levels, resulting in a higher P/EBITDA multiple compared to 30x currently. Going by our Medtronic Valuation of $144 per share, based on $5.71 expected adjusted EPS and a 25x P/E multiple for fiscal 2022, there is around 36% upside from its current levels of $106, implying that MDT stock is currently undervalued and it will likely see higher levels going forward, in our view. In Q1 fiscal 2022, the company reported a solid 23% y-o-y growth in revenue, led by a 29% growth in neuroscience as well as in medical surgical business, while cardiovascular segment sales were up 19%, and this trend could continue, albeit revenues growing at a slower pace given the impact of the delta variant on overall procedures volume. |
31767.0 | 2022-02-25 00:00:00 UTC | Should You Buy Abbott Stock After Its Recent Fall? | ABT | https://www.nasdaq.com/articles/should-you-buy-abbott-stock-after-its-recent-fall | nan | nan | The stock price of Abbott (NYSE: ABT) has seen a fall of 7% in a month, while it declined 4% in a week. This can largely be attributed to its recent voluntary recall of three types of baby formula – Similac, Alimentum, and EleCare – all manufactured in its Sturgis plant and with an expiration of April 1 or later. The recall came after four consumer complaints of bacteria contamination. The U.S. FDA is currently investigating complaints of four infant illnesses in Minnesota, Ohio, and Texas related to bacteria contamination. It has warned consumers not to use certain baby formula products made by Abbott.
The broader markets haven’t been supportive either, given the geopolitical tensions around Russia and Ukraine. The S&P500 index has also slipped 3% in a week. However, now that ABT stock has seen a fall of 7% in a month will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a rise in ABT stock over the next month. Out of 167 instances in the last ten years that ABT stock saw a twenty-one-day fall of 7% or more, 105 of them resulted in ABT stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 105 out of 167, or about 63%, the chance of a rise in ABT stock over the coming month, implying that investors can use the current dip in ABT stock as a buying opportunity. See our analysis on Abbott Stock Chance of A Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years’ data
After moving -4.3% or more over five days, the stock rose on 55% of the occasions in the next five days.
After moving -8.2% or more over ten days, the stock rose on 51% of the occasions in the next ten days.
After moving -6.6% or more over a twenty-one-day period, the stock rose on 63% of the occasions in the next twenty-one days.
This pattern suggests that ABT stock has a higher chance of rising in the next five days, ten days, and one month.
Abbott (ABT) Stock Return (Recent) Comparison With Peers
Five-Day Return: MDT highest at 1.4%; ABT lowest at -4.3%
Ten-Day Return: MDT highest at 1.7%; ABT lowest at -8.2%
Twenty-One Day Return: BSX highest at 0.0%; DXCM lowest at -7.4%
Looking at the long term view, we estimate Abbott’s Valuation to be $152 per share, reflecting a 29% upside from its current levels of $118. This represents a forward P/EBITDA of 33x based on Abbott’s EBITDA.
While ABT stock looks undervalued, our analysis on Abbott vs. Merck finds MRK, with a similar operating income base, to be an even better bet. Check out how Abbott’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return -8% -17% 206%
S&P 500 Return -5% -10% 92%
Trefis MS Portfolio Return -3% -12% 246%
[1] Month-to-date and year-to-date as of 2/23/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While ABT stock looks undervalued, our analysis on Abbott vs. Merck finds MRK, with a similar operating income base, to be an even better bet. The stock price of Abbott (NYSE: ABT) has seen a fall of 7% in a month, while it declined 4% in a week. However, now that ABT stock has seen a fall of 7% in a month will it continue its downward trajectory, or is a rise imminent? | Out of 167 instances in the last ten years that ABT stock saw a twenty-one-day fall of 7% or more, 105 of them resulted in ABT stock rising over the subsequent one-month period (twenty-one trading days). Abbott (ABT) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 1.4%; ABT lowest at -4.3% Ten-Day Return: MDT highest at 1.7%; ABT lowest at -8.2% Twenty-One Day Return: BSX highest at 0.0%; DXCM lowest at -7.4% Looking at the long term view, we estimate Abbott’s Valuation to be $152 per share, reflecting a 29% upside from its current levels of $118. Total [2] ABT Return -8% -17% 206% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/23/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Out of 167 instances in the last ten years that ABT stock saw a twenty-one-day fall of 7% or more, 105 of them resulted in ABT stock rising over the subsequent one-month period (twenty-one trading days). Abbott (ABT) Stock Return (Recent) Comparison With Peers Five-Day Return: MDT highest at 1.4%; ABT lowest at -4.3% Ten-Day Return: MDT highest at 1.7%; ABT lowest at -8.2% Twenty-One Day Return: BSX highest at 0.0%; DXCM lowest at -7.4% Looking at the long term view, we estimate Abbott’s Valuation to be $152 per share, reflecting a 29% upside from its current levels of $118. Total [2] ABT Return -8% -17% 206% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/23/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock price of Abbott (NYSE: ABT) has seen a fall of 7% in a month, while it declined 4% in a week. This pattern suggests that ABT stock has a higher chance of rising in the next five days, ten days, and one month. Total [2] ABT Return -8% -17% 206% S&P 500 Return -5% -10% 92% Trefis MS Portfolio Return -3% -12% 246% [1] Month-to-date and year-to-date as of 2/23/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31768.0 | 2022-02-25 00:00:00 UTC | Abbott (ABT) Down 1.4% Since Last Earnings Report: Can It Rebound? | ABT | https://www.nasdaq.com/articles/abbott-abt-down-1.4-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 1.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Abbott due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Abbott's Q4 Earnings and Revenues Beat Estimates
Abbott reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. However, the adjusted figure declined 8.9% 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 from continuing operations came in at $1.11, reflecting a 7.5% decline year on year.
Full-year adjusted earnings per share (EPS) was $5.21, a 42.7% improvement from the year-ago period. This exceeded the Zacks Consensus Estimate by 2.8%.
Fourth-quarter worldwide sales of $11.47 billion were up 7.2% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 8.5%.On an organic basis (adjusting for the impact of foreign exchange), sales improved 7.7% year over year in the reported quarter.
For 2021, worldwide revenues were $43.08 billion, up 24.5% on a reported basis and up 22.9% organically from the year-ago period. The metric exceeded the Zacks Consensus Estimate of $42.21 billion.
Quarter in Detail
Abbott operates through four segments — Established Pharmaceuticals Division (EPD), Medical Devices, Nutrition, and Diagnostics.
In the fourth quarter, EPD sales improved 4.9% on a reported basis (up 5.8% on an organic basis) to $1.20 billion. Organic sales in key emerging markets improved 5.2% year over year. According to Abbott, organic sales improvement was backed by strong growth across several geographies, including China, Russia and India.
Medical Devices business sales improved 15.1% on a reported basis (up 15.9% on an organic basis) to $3.75 billion. Barring Neuromodulation, all other sub-segments in the quarter reported organic revenue growth.
Diabetes Care reported organic growth of 28.3% year over year led by FreeStyle Libre, which represented 36% of organic sales growth in the reported quarter. Heart Failure sales improved 27.6% 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.
Nutrition sales were up 5.5% year over year on a reported basis (up 5.9% on an organic basis) to $2.04 billion. Pediatric Nutrition sales registered an improvement of 3.1% on an organic basis, banking on strong sales of oral hydration brand Pedialyte and continued share growth in the infant nutrition space.
Adult Nutrition sales improved 9% 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 2.9% year over year on a reported basis (up 3.3% on an organic basis) to $4.47 billion. Core Laboratory Diagnostics sales were up 2.7% organically. However, Molecular Diagnostics plunged 28.4% on an organic basis. Rapid Diagnostics sales improved 9.8% on an organic basis. Point of Care Diagnostics sales rose 4.9% organically.
Excluding COVID-19 testing-related sales, worldwide diagnostics sales improved 8.7% organically in the reported quarter.
2022 Guidance
Abbott has initiated 2022 EPS guidance.
Full-year adjusted earnings from continuing operations (excluding specified items of $1.27 per share) are expected to be at least $4.70. The current Zacks Consensus Estimate is pegged at $4.71.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 39.25% due to these changes.
VGM Scores
Currently, Abbott has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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, Abbott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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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 Q4 Earnings and Revenues Beat Estimates Abbott reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. | A month has gone by since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q4 Earnings and Revenues Beat Estimates Abbott reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. | A month has gone by since the last earnings report for Abbott (ABT). Abbott Laboratories (ABT): Free Stock Analysis Report Abbott's Q4 Earnings and Revenues Beat Estimates Abbott reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. |
31769.0 | 2022-02-24 00:00:00 UTC | Got $5,000? These 2 Dividend Kings Are On Sale | ABT | https://www.nasdaq.com/articles/got-%245000-these-2-dividend-kings-are-on-sale | nan | nan | Want a safe dividend stock that you can own for not just years but decades -- or even forever? A good place to start is by looking at stocks with long track records for not just paying but also increasing their dividend payments.
Dividend Kings have raised their payouts for 50 years or more in a row. They are the cream of the crop when it comes to income stocks and are great options for investing $5,000 into today. And two of them, Abbott Laboratories (NYSE: ABT) and Stanley Black & Decker (NYSE: SWK), are currently on sale and yielding more than the S&P 500 average of 1.3%.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories stock has fallen more than 17% year to date (that's deeper than the S&P 500's decline of less than 9%). While there's nothing wrong with the business, the company may be too closely associated with COVID-19 stocks since it has gotten a boost from its rapid testing products.
But to reduce Abbott to a COVID-19 stock would be a mistake for investors. The healthcare company's business is bigger than just this specialty. It includes nutrition, pharmaceutical, and medical device segments, in addition to its diagnostics unit. Although COVID-19 testing products added $2.3 billion in sales for the period ended Dec. 31, the company's revenue still rose by 9.6% when excluding them. During that period, its fastest-growing segment was medical devices, which generated $3.7 billion and rose by more than 15% year over year. By comparison, diagnostics (including COVID-19 testing products) brought in $4.5 billion in revenue but increased at a more modest rate of 2.9%.
As there's a return to normal in the economy and hospitals resume regular activities, demand for medical devices will likely continue to strengthen. In 2022, the company expects its diluted earnings per share to come in at $3.43 or better. While that's below the profit of $3.94 per share it reported this past year, it's still well above the $1.88 that the company pays per share in annual dividends.
Although Abbott's dividend yield of 1.6% is not a huge payout, if you hang on to it over time, you can be earning much more on your initial investment. In five years, Abbott has increased its dividend payments by 77%.
Buying and holding Abbott could be a solid investment move, as you can profit not only from its growing dividend but the possible capital gains you can make from owning the stock. At a price-to-earnings (P/E) ratio of 29, the stock is relatively cheap compared to where it has traded in the past.
ABT PE Ratio data by YCharts
2. Stanley Black & Decker
Stanley Black & Decker, which owns popular brands such as DeWalt and Craftsman (and, of course, Stanley and Black+Decker), boasts the longest dividend streak of any industrial company on the NYSE -- 506 quarters of uninterrupted dividend payments. It's hard to see a scenario where the company might break that streak in the foreseeable future.
Its shares are down 14% year to date (with no obvious reason for the decline besides just general weakness in the stock market), making it a pretty cheap buy. Its P/E ratio is just below 16, and outside of the 2020 March market crash, it's been rare to see the stock trading at that low of a premium.
Now, amid such an uncertain year in 2022, with interest rates on the rise and inflation making it difficult for businesses to turn a profit, the company is an even better buy. Even though it faced logistical challenges last quarter, for the period ended Dec. 31, its net sales of $4.1 billion were still up 2% from the prior-year period. The company's volumes were down 8%, but it was able to offset that through price increases and a positive impact from acquisitions.
Stanley Black & Decker's products are staples in many industries, with its tools and storage products well-known all over the world. That strong brand recognition enables the company to make price increases without having their sales tank as a result of those actions. That's why the stock is an attractive one to hold if you're worried about inflation.
In 2022, the company anticipates its diluted earnings per share will be between $10.10 and $10.70. Even at the low end of that forecast, the company's payout ratio would still be incredibly small at just over 31%. There's minimal risk around the stock's dividend, which yields 1.9%, and the company has increased it by 36% in the past five years.
Stanley Black & Decker is a safe buy-and-forget stock to hold, and with its shares on sale, this may be an optimal time to add them to your portfolio.
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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. | And two of them, Abbott Laboratories (NYSE: ABT) and Stanley Black & Decker (NYSE: SWK), are currently on sale and yielding more than the S&P 500 average of 1.3%. ABT PE Ratio data by YCharts 2. Buying and holding Abbott could be a solid investment move, as you can profit not only from its growing dividend but the possible capital gains you can make from owning the stock. | And two of them, Abbott Laboratories (NYSE: ABT) and Stanley Black & Decker (NYSE: SWK), are currently on sale and yielding more than the S&P 500 average of 1.3%. ABT PE Ratio data by YCharts 2. Although COVID-19 testing products added $2.3 billion in sales for the period ended Dec. 31, the company's revenue still rose by 9.6% when excluding them. | And two of them, Abbott Laboratories (NYSE: ABT) and Stanley Black & Decker (NYSE: SWK), are currently on sale and yielding more than the S&P 500 average of 1.3%. ABT PE Ratio data by YCharts 2. Stanley Black & Decker Stanley Black & Decker, which owns popular brands such as DeWalt and Craftsman (and, of course, Stanley and Black+Decker), boasts the longest dividend streak of any industrial company on the NYSE -- 506 quarters of uninterrupted dividend payments. | And two of them, Abbott Laboratories (NYSE: ABT) and Stanley Black & Decker (NYSE: SWK), are currently on sale and yielding more than the S&P 500 average of 1.3%. ABT PE Ratio data by YCharts 2. During that period, its fastest-growing segment was medical devices, which generated $3.7 billion and rose by more than 15% year over year. |
31770.0 | 2022-02-23 00:00:00 UTC | Abbott (ABT) Stock Moves -0.22%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-0.22%3A-what-you-should-know | nan | nan | Abbott (ABT) closed the most recent trading day at $117.25, moving -0.22% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.84%. Elsewhere, the Dow lost 1.38%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the maker of infant formula, medical devices and drugs had lost 4.67% in the past month. In that same time, the Medical sector lost 1.28%, while the S&P 500 lost 1.96%.
Investors will be hoping for strength from Abbott as it approaches its next earnings release. On that day, Abbott is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 12.88%. Meanwhile, our latest consensus estimate is calling for revenue of $10.76 billion, up 2.92% from the prior-year quarter.
ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $40.56 billion. These results would represent year-over-year changes of -7.49% and -5.83%, respectively.
Investors should also note any recent changes to analyst estimates for Abbott. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. Abbott is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Abbott is currently trading at a Forward P/E ratio of 24.39. This valuation marks a premium compared to its industry's average Forward P/E of 23.13.
Investors should also note that ABT has a PEG ratio of 2.32 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products industry currently had an average PEG ratio of 1.89 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
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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. | ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $40.56 billion. Abbott (ABT) closed the most recent trading day at $117.25, moving -0.22% from the previous trading session. Investors should also note that ABT has a PEG ratio of 2.32 right now. | Abbott (ABT) closed the most recent trading day at $117.25, moving -0.22% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $40.56 billion. Investors should also note that ABT has a PEG ratio of 2.32 right now. | Abbott (ABT) closed the most recent trading day at $117.25, moving -0.22% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $40.56 billion. Investors should also note that ABT has a PEG ratio of 2.32 right now. | Investors should also note that ABT has a PEG ratio of 2.32 right now. Abbott (ABT) closed the most recent trading day at $117.25, moving -0.22% from the previous trading session. ABT's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $40.56 billion. |
31771.0 | 2022-02-23 00:00:00 UTC | Abbott (ABT) COVID Testing Sales Surge, FX Headwind Stays | ABT | https://www.nasdaq.com/articles/abbott-abt-covid-testing-sales-surge-fx-headwind-stays | nan | nan | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. However, the soft neuromodulation business is a challenge. The stock currently carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has lost 3.3% compared with the industry’s 18.6% decline. The company posted better-than-expected earnings and revenue numbers for the fourth quarter of 2021. Overall, year-over-year improvements were robust. Barring Neuromodulation, the company registered organic sales growth across all its operating segments. COVID testing-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms.
Excluding COVID-testing sales, worldwide diagnostic sales grew over 8% in the quarter on the successful rollout of the Alinity suite of diagnostic instruments and expanded test menu across Abbott’s platforms.
Even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. This mitigated the modest impact of the pandemic that Abbott witnessed from the surge in cases in certain areas of its hospital base businesses.
In the fourth quarter, within Nutrition, strong growth was led by U.S. pediatric and international adult nutrition. In Pediatric Nutrition, the company registered strong growth in the United States from continued share gains in infant formula and toddler portfolio. Abbott registered strong growth of Pedialyte, its oral rehydration brand, and market share gains for Similac, the company’s market-leading infant formula brand. In Adult Nutrition, there was 9% year-over-year growth in the fourth quarter on strong demand for Ensure and Glucerna brands, including new users entering these categories and existing customers increasing their usage.
Within EPD, fourth-quarter sales grew 6% year over year led by broad-based growth across several countries including India, Russia, and China that led to overall organic sales growth of 5.2% in key emerging markets.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
Within Medical Device, organic sales grew nearly 15.9%, led by strong growth in Structural Heart, Heart Failure, Electrophysiology and Diabetes Care. The Diabetes Care business particularly has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Within Medical Device, in the United States, Abbott expanded Medicare reimbursement coverage for MitraClip for more people to get the benefit of it.
The company also launched NeuroSphere Virtual Clinic, a new technology for patients to communicate with physicians and receive new treatment settings remotely. Further, the company received the U.S. FDA approval for its Amplatzer or amulet heart device, which treats people with atrial fibrillation, who are at risk of ischemic stroke. Added to this, Abbott gained CE Mark for Navitor, the company’s latest generation transcatheter aortic valve replacement system.
Abbott has a consistent record of paying dividends with the five-year annualized dividend growth being 12.72%.
On the flip side, with a spike in new COVID-19 case counts through the fourth quarter, Abbott noted a significant rise in COVID-testing sales, a trend that it expects to continue through the first quarter of 2022. For 2022, the company forecasts COVID testing-related sales of approximately $2.5 billion, with a significant portion of these sales expected to occur in the early part of the year. Going by the company’s projections for the full year, it seems that the company apprehends a decline in COVID testing revenues over the latter part of 2022.
Further, based on the current rates, Abbott expects foreign exchange to have an unfavorable impact of approximately 2% on reported sales. Adjusted gross margin is expected to be 58.5% for the year, which considers the projected impact of inflation on certain manufacturing and distribution costs.
Further, Abbott’s Neuromodulation arm reported a 7.5% year-over-year decline on an organic basis in the fourth quarter. Being extremely elective, this business is having a hard time in terms of post-COVID recovery.
Added to this, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has constantly been hampering the company’s performance in the international markets.
Key Picks
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. AMN, Henry Schein, Inc. HSIC and West Pharmaceutical Services, Inc. WST.
AMN Healthcare, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #1.
Henry Schein has gained 6.1% compared with the industry’s 1.7% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
Henry Schein, Inc. (HSIC): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report Even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report In Pediatric Nutrition, the company registered strong growth in the United States from continued share gains in infant formula and toddler portfolio. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report Even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report Even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. |
31772.0 | 2022-02-22 00:00:00 UTC | Want to Get Richer? 5 Best Stocks to Buy Now and Hold Forever | ABT | https://www.nasdaq.com/articles/want-to-get-richer-5-best-stocks-to-buy-now-and-hold-forever | nan | nan | Creating wealth in the stock market can be as simple as owning pieces of the world's most powerful corporations and letting them compound for decades. But you can't pick just any stock; most won't cut it over the long-term.
Sometimes if it's broken, don't fix it. Some companies have been compounding for decades, and are still going strong today. If you're looking to put your hard-earned money into stocks that you can sleep well at night owning and that will still keep growing your wealth, listen up. Here are five winners to consider.
Image Source: Getty Images.
1. Berkshire Hathaway
Investing in holding company Berkshire Hathaway (NYSE: BRK.B) means trusting your money with investing legends like Charlie Munger and Warren Buffett, who still run the ship there to this day. The company's built an extensive portfolio of private businesses, including Geico, Duracell, and Fruit of the Loom, and has stakes in public companies like Apple, Coca-Cola, and American Express.
BRK.B Book Value (Quarterly) data by YCharts
Berkshire has for decades steadily grown its book value (which is the total value of the company's assets minus its obligations such as debt) and the price of its shares has followed. Over time, the stock has generated immense wealth for investors, returning more than 20% returns per year from 1964 to 2018. With more than $144 billion in cash and short-term investments on the company's balance sheet, Warren Buffett will be ready for Berkshire's next Apple-like opportunity.
2. Sherwin-Williams
Paint and coatings manufacturer Sherwin-Williams (NYSE: SHW) sells more than one-in-four cans of paint in North America. Its products sell under various brand names in retail stores and its name-brand store network. Whether you're a homeowner remodeling or slapping an annual coat of stain on a deck, or a contractor with commercial projects, you're buying Sherwin-Williams' products over and over again.
Sherwin-Williams makes nearly $0.17 of free cash flow on every dollar in revenue and sends a lot of it back to shareholders through dividends. Moreover, the company is a Dividend Aristocrat with 43 consecutive annual payout increases, and the stock's returned more than 85,000% over its lifetime. The business has grown revenue an average of 9% yearly over the past decade, so there seems to be growth left in this proven compounder.
3. Home Depot
Homeowners are undoubtedly familiar with Home Depot (NYSE: HD), where they've probably spent weekends buying appliances, tools, or garden plants for countless home projects. The company's brand power, large store footprint, and product selection have helped it grow in the face of competition from e-commerce companies like Amazon. Revenue's increased an average of 7% over the past decade.
The stock's been a longtime winner, minting millionaires who made even small investments in its IPO and held over the decades. But Home Depot's success story might not be over yet. The company's trailing 12-month revenue is $147 billion, and Bank of America estimates the home improvement market's total value at $767 billion with room to grow to more than $1 trillion in time. Home Depot should have growth opportunities to take market share and benefit from increased home-improvement spending moving forward.
4. Abbott Laboratories
Healthcare is an evergreen industry; there's a constant need to keep people healthy and cure the world's many diseases. Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. The company retooled itself over the past decade after spinning off most of its pharmaceutical business as AbbVie in 2013.
Its 2016 acquisitions of St. Jude Medical for $25 billion and Alere for $5.8 billion positioned Abbott to focus on medical devices for cardiovascular applications, diabetes, and diagnostics. The company's revenue has been flat over the past decade, but has grown 11% annually on average over the past five years, so it looks like Abbott's moves to generate growth are working. Abbott also has a storied dividend history -- it's a Dividend King, offering a 1.6% dividend yield for those looking for some income from their investments.
5. Microsoft
Technology conglomerate Microsoft (NASDAQ: MSFT) touches virtually every corner of the tech world, including PC operating systems, enterprise software, gaming hardware, and software, and is one of the three major public cloud platforms. It's grown into one of the world's largest companies over the years as well -- as of today, its market cap is $2.1 trillion.
Microsoft continues to thrive despite its size; revenue growth has averaged 14.5% annually over the past five years. Azure, the company's cloud platform, could drive growth for Microsoft moving forward. It grew 46% in Microsoft's most recent quarter, which ended December 31. According to Research & Markets, there's a secular shift from on-premise servers to public cloud platforms, and the global cloud industry could approach $1 trillion in value by 2027.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends Amazon, Apple, Berkshire Hathaway (B shares), Home Depot, and Microsoft. The Motley Fool recommends Sherwin-Williams and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. Creating wealth in the stock market can be as simple as owning pieces of the world's most powerful corporations and letting them compound for decades. Whether you're a homeowner remodeling or slapping an annual coat of stain on a deck, or a contractor with commercial projects, you're buying Sherwin-Williams' products over and over again. | Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. The Motley Fool owns and recommends Amazon, Apple, Berkshire Hathaway (B shares), Home Depot, and Microsoft. The Motley Fool recommends Sherwin-Williams and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. Berkshire Hathaway Investing in holding company Berkshire Hathaway (NYSE: BRK.B) means trusting your money with investing legends like Charlie Munger and Warren Buffett, who still run the ship there to this day. The company's revenue has been flat over the past decade, but has grown 11% annually on average over the past five years, so it looks like Abbott's moves to generate growth are working. | Abbott Laboratories (NYSE: ABT) is a healthcare conglomerate that sells consumer products, medical devices, and generic pharmaceutical drugs. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. |
31773.0 | 2022-02-21 00:00:00 UTC | Is Now the Time to Buy This Blue-Chip Healthcare Stock? | ABT | https://www.nasdaq.com/articles/is-now-the-time-to-buy-this-blue-chip-healthcare-stock | nan | nan | Consistently meeting or beating analysts' revenue and earnings expectations is the sign of a quality stock. It demonstrates that its products and/or services have strong demand, which is indicative of a company with competitive advantages.
Diversified healthcare stock Abbott Laboratories (NYSE: ABT) has a track record of matching or exceeding analysts' revenue and earnings forecasts. But is the stock a buy for dividend growth investors? Let's dig into Abbott's fundamentals and valuation to address the question.
Image source: Getty Images.
The business is thriving
When it reported fourth-quarter earnings results for the period ended Dec. 31, Abbott Laboratories topped analysts' revenue consensus for the eighth quarter out of the past 10. Revenue totaled $11.47 billion, which represented 7.2% growth over the year-ago period. This managed to comfortably surpass analysts' average estimate of $10.71 billion.
All four of Abbott's reportable segments -- diagnostics, medical devices, nutrition, and established pharmaceuticals -- were able to produce sales growth ranging from the low single digits to the mid-teens in the fourth quarter. Most significant was medical devices. Despite only accounting for about one-third (32.7%) of Abbott's fourth-quarter revenue, the medical devices segment was responsible for nearly two-thirds (64.1%) of the company's overall sales growth.
The medical devices segment was able to grow its revenue 15.1% year over year to $3.75 billion for two reasons. For one, there were two U.S. Food and Drug Administration approvals earlier in the year. One was a medical device for atrial fibrillation patients at risk of stroke and the other was for patients with symptomatic, severe aortic stenosis who are at high risk for open-heart surgery. The other reason that contributed to the tremendous growth of the medical devices segment was the continued recovery from the COVID-19 pandemic's impact on elective procedures, which is how the segment generates its revenue and earnings.
Abbott Laboratories' higher-than-expected revenue base led to $1.32 in non-GAAP (adjusted) diluted earnings per share (EPS) in the fourth quarter, which was a 9% drop over the year-ago period. This easily bested the analysts' consensus of $1.21 for the quarter.
A $491 million uptick in selling, general, and administrative expenses due to supply-chain inflation was behind the 380-basis point drop in net margin to 20.6% during the fourth quarter. But as Abbott Laboratories passes these costs on to consumers (specifically in the consumer-facing nutrition business) and inflation begins to decelerate later this year, this should be less of an issue for the company.
With Abbott expecting to slightly up its research and development investment to $2.7 billion this year, the company's reputation of steady product launches should continue. Along with major tailwinds like an aging global population, this is expected to result in 13.2% annual earnings growth over the next five years.
A reliable dividend grower
Abbott Laboratories looks positioned to continue growing in the years ahead. But can it build on its newly minted status as a Dividend King? The answer is yes, based on an estimate of what its dividend payout ratio will be this year.
Abbott expects at least $4.70 in adjusted diluted EPS this year against a dividend per share obligation of $1.88, which works out to a payout ratio of 40%. This should leave the company with adequate capital to repay debt, execute share repurchases, and finance bolt-on acquisitions.
Abbott Laboratories provides a safe, market-beating 1.6% dividend yield for investors. And based on the company's potential, the dividend should grow in the high single digits annually for the foreseeable future.
The company is financially sound
Abbott Laboratories' strong financial condition is another reason to like the stock.
Its interest coverage ratio improved significantly from 10.9 in 2020 ($5.47 billion in earnings before interest and taxes/$500 million in interest expenses) to 17.8 in 2021 ($8.70 billion in EBIT/$490 million in interest costs). Given the quality of Abbott's finances and the degree to which it's currently able to cover its interest expenses, the company will almost certainly be in business for many years to come.
Abbott's stock is sensibly valued
Abbott Laboratories seems like a fundamentally healthy business, which leads us back to the original question: Is the stock a buy?
It appears to be a buy for dividend growth investors at this time. The stock trades at a forward price-to-earnings ratio of 23.4, which is a bit below the medical devices industry average of 25.3. Since the stock's 13.2% annual earnings growth prospects are just below the industry average of 15.2%, it looks to be fairly priced.
10 stocks we like better than Abbott Laboratories
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Kody Kester owns Abbott Laboratories. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Diversified healthcare stock Abbott Laboratories (NYSE: ABT) has a track record of matching or exceeding analysts' revenue and earnings forecasts. The business is thriving When it reported fourth-quarter earnings results for the period ended Dec. 31, Abbott Laboratories topped analysts' revenue consensus for the eighth quarter out of the past 10. All four of Abbott's reportable segments -- diagnostics, medical devices, nutrition, and established pharmaceuticals -- were able to produce sales growth ranging from the low single digits to the mid-teens in the fourth quarter. | Diversified healthcare stock Abbott Laboratories (NYSE: ABT) has a track record of matching or exceeding analysts' revenue and earnings forecasts. The business is thriving When it reported fourth-quarter earnings results for the period ended Dec. 31, Abbott Laboratories topped analysts' revenue consensus for the eighth quarter out of the past 10. Abbott Laboratories' higher-than-expected revenue base led to $1.32 in non-GAAP (adjusted) diluted earnings per share (EPS) in the fourth quarter, which was a 9% drop over the year-ago period. | Diversified healthcare stock Abbott Laboratories (NYSE: ABT) has a track record of matching or exceeding analysts' revenue and earnings forecasts. Abbott's stock is sensibly valued Abbott Laboratories seems like a fundamentally healthy business, which leads us back to the original question: Is the stock a buy? 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. | Diversified healthcare stock Abbott Laboratories (NYSE: ABT) has a track record of matching or exceeding analysts' revenue and earnings forecasts. The business is thriving When it reported fourth-quarter earnings results for the period ended Dec. 31, Abbott Laboratories topped analysts' revenue consensus for the eighth quarter out of the past 10. Most significant was medical devices. |
31774.0 | 2022-02-21 00:00:00 UTC | China warns consumers not to use Abbott baby formula affected by recall | ABT | https://www.nasdaq.com/articles/china-warns-consumers-not-to-use-abbott-baby-formula-affected-by-recall | nan | nan | Adds background, share movement
BEIJING, Feb 21 (Reuters) - China Customs has warned consumers against buying and eating certain infant and baby products of Abbott Laboratories ABT.Nthat were affected in a recent recall linked to a U.S. factory.
The General Administration of Customs, in a post published on Sunday on its website, referred to a Feb. 18 notice issued by the U.S. Food and Drug Administration (FDA) that cautioned consumers against buying or eating certain batches of baby formula products made by Abbott.
The day before, Abbott said it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed them.
China Customs said while the affected formula products were not directly sold in China, some consumers who may have bought them from abroad via cross-border e-commerce should stop using them.
One item, however, a Similac human milk fortifier which was affected by the issue, had been sold in China and Abbott had issued a voluntary recall of the affected batch, it added.
Abbott, whose shares fell about 3.1% on Monday, said in a statement it had issued a recall for a batch from the Michigan factory and that other items it sold in China were not affected.
Following the post by China Customs, other countries have called on consumers to stop using some Abbott formula products.
The Omani Ministry of Health on Monday warned against using two Abbott baby milk powder formulas due to potential bacterial contamination. Oman's statement followed a similar warning from the Saudi Food and Drug Authority concerning three baby milk powders made by Abbott, according to Saudi state news.
(Reporting by Sophie Yu, Brenda Goh; additional reporting by Roxanne Liu and Richa Naidu; editing by Jason Neely and Tomasz Janowski)
((Sophie.Yu@thomsonreuters.com; 861056692136;))
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, share movement BEIJING, Feb 21 (Reuters) - China Customs has warned consumers against buying and eating certain infant and baby products of Abbott Laboratories ABT.Nthat were affected in a recent recall linked to a U.S. factory. Abbott, whose shares fell about 3.1% on Monday, said in a statement it had issued a recall for a batch from the Michigan factory and that other items it sold in China were not affected. The Omani Ministry of Health on Monday warned against using two Abbott baby milk powder formulas due to potential bacterial contamination. | Adds background, share movement BEIJING, Feb 21 (Reuters) - China Customs has warned consumers against buying and eating certain infant and baby products of Abbott Laboratories ABT.Nthat were affected in a recent recall linked to a U.S. factory. The General Administration of Customs, in a post published on Sunday on its website, referred to a Feb. 18 notice issued by the U.S. Food and Drug Administration (FDA) that cautioned consumers against buying or eating certain batches of baby formula products made by Abbott. Oman's statement followed a similar warning from the Saudi Food and Drug Authority concerning three baby milk powders made by Abbott, according to Saudi state news. | Adds background, share movement BEIJING, Feb 21 (Reuters) - China Customs has warned consumers against buying and eating certain infant and baby products of Abbott Laboratories ABT.Nthat were affected in a recent recall linked to a U.S. factory. The General Administration of Customs, in a post published on Sunday on its website, referred to a Feb. 18 notice issued by the U.S. Food and Drug Administration (FDA) that cautioned consumers against buying or eating certain batches of baby formula products made by Abbott. One item, however, a Similac human milk fortifier which was affected by the issue, had been sold in China and Abbott had issued a voluntary recall of the affected batch, it added. | Adds background, share movement BEIJING, Feb 21 (Reuters) - China Customs has warned consumers against buying and eating certain infant and baby products of Abbott Laboratories ABT.Nthat were affected in a recent recall linked to a U.S. factory. The General Administration of Customs, in a post published on Sunday on its website, referred to a Feb. 18 notice issued by the U.S. Food and Drug Administration (FDA) that cautioned consumers against buying or eating certain batches of baby formula products made by Abbott. China Customs said while the affected formula products were not directly sold in China, some consumers who may have bought them from abroad via cross-border e-commerce should stop using them. |
31775.0 | 2022-02-21 00:00:00 UTC | FDA Approves Expanded Indication For Abbott's CardioMEMS HF System | ABT | https://www.nasdaq.com/articles/fda-approves-expanded-indication-for-abbotts-cardiomems-hf-system | nan | nan | (RTTNews) - Abbott (ABT) said that the U.S. Food and Drug Administration has approved an expanded indication for the company's CardioMEMS HF System to support the care of more people living with heart failure.
The new expanded indication provides patients suffering from earlier stages of heart failure access to the CardioMEMS HF System, a small implantable sensor that can flag early warning signs of worsening heart failure.
The FDA approval was supported by data from the GUIDE-HF trial, which suggested that the CardioMEMS sensor can reduce hospitalizations and improve care for more types of patients living with heart failure.
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 that the U.S. Food and Drug Administration has approved an expanded indication for the company's CardioMEMS HF System to support the care of more people living with heart failure. The new expanded indication provides patients suffering from earlier stages of heart failure access to the CardioMEMS HF System, a small implantable sensor that can flag early warning signs of worsening heart failure. The FDA approval was supported by data from the GUIDE-HF trial, which suggested that the CardioMEMS sensor can reduce hospitalizations and improve care for more types of patients living with heart failure. | (RTTNews) - Abbott (ABT) said that the U.S. Food and Drug Administration has approved an expanded indication for the company's CardioMEMS HF System to support the care of more people living with heart failure. The new expanded indication provides patients suffering from earlier stages of heart failure access to the CardioMEMS HF System, a small implantable sensor that can flag early warning signs of worsening heart failure. The FDA approval was supported by data from the GUIDE-HF trial, which suggested that the CardioMEMS sensor can reduce hospitalizations and improve care for more types of patients living with heart failure. | (RTTNews) - Abbott (ABT) said that the U.S. Food and Drug Administration has approved an expanded indication for the company's CardioMEMS HF System to support the care of more people living with heart failure. The new expanded indication provides patients suffering from earlier stages of heart failure access to the CardioMEMS HF System, a small implantable sensor that can flag early warning signs of worsening heart failure. 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 that the U.S. Food and Drug Administration has approved an expanded indication for the company's CardioMEMS HF System to support the care of more people living with heart failure. The new expanded indication provides patients suffering from earlier stages of heart failure access to the CardioMEMS HF System, a small implantable sensor that can flag early warning signs of worsening heart failure. The FDA approval was supported by data from the GUIDE-HF trial, which suggested that the CardioMEMS sensor can reduce hospitalizations and improve care for more types of patients living with heart failure. |
31776.0 | 2022-02-21 00:00:00 UTC | China warns consumers not to use Abbott formula products | ABT | https://www.nasdaq.com/articles/china-warns-consumers-not-to-use-abbott-formula-products-0 | nan | nan | Adds Abbott China response to local media, paragraph 5
BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website.
The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott.
China Customs said the products have not entered China through general trade, but added that those consumers who purchased them via cross-border e-commerce should stop using them.
Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility.
Excluding Similac HMFortifi, products that Abbott China sells in mainland China were not affected by the issue, state-backed news outlet The Paper reported on Monday citing a company response.
(Reporting by Sophie Yu, Brenda Goh; additional reporting by Roxanne Liu; editing by Jason Neely)
((Sophie.Yu@thomsonreuters.com; 861056692136;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds Abbott China response to local media, paragraph 5 BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility. (Reporting by Sophie Yu, Brenda Goh; additional reporting by Roxanne Liu; editing by Jason Neely) ((Sophie.Yu@thomsonreuters.com; 861056692136;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds Abbott China response to local media, paragraph 5 BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility. | Adds Abbott China response to local media, paragraph 5 BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. Excluding Similac HMFortifi, products that Abbott China sells in mainland China were not affected by the issue, state-backed news outlet The Paper reported on Monday citing a company response. | Adds Abbott China response to local media, paragraph 5 BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. China Customs said the products have not entered China through general trade, but added that those consumers who purchased them via cross-border e-commerce should stop using them. |
31777.0 | 2022-02-21 00:00:00 UTC | China warns consumers not to use Abbott formula products | ABT | https://www.nasdaq.com/articles/china-warns-consumers-not-to-use-abbott-formula-products | nan | nan | BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website.
The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott.
China Customs said the products have not entered China through trade, but consumers should stop eating them if they have purchased them via cross-border e-commerce.
Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility.
(Reporting by Sophie Yu, Brenda Goh; editing by Jason Neely)
((Sophie.Yu@thomsonreuters.com; 861056692136;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility. | BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. China Customs said the products have not entered China through trade, but consumers should stop eating them if they have purchased them via cross-border e-commerce. | BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. The General Administration of Customs said in a post issued on Sunday on its website that the U.S. Food and Drug Administration (FDA) on Feb. 18 had suggested consumers not buy or eat certain baby formula products made by Abbott. (Reporting by Sophie Yu, Brenda Goh; editing by Jason Neely) ((Sophie.Yu@thomsonreuters.com; 861056692136;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BEIJING, Feb 21 (Reuters) - China Customs has warned consumers from buying and eating infant and baby products of Abbott Laboratories ABT.N, according to said in a post issued on Sunday on its website. Abbott said on Feb 17 it was recalling powdered baby formulas, including Similac, made at a Michigan facility. (Reporting by Sophie Yu, Brenda Goh; editing by Jason Neely) ((Sophie.Yu@thomsonreuters.com; 861056692136;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31778.0 | 2022-02-20 00:00:00 UTC | Bull vs. Bear: DexCom Stock | ABT | https://www.nasdaq.com/articles/bull-vs.-bear%3A-dexcom-stock | nan | nan | In this clip from "The Rank" on Motley Fool Live, recorded on Feb. 7, Motley Fool contributors Taylor Carmichael and Jason Hall discuss their thoughts on DexCom (NASDAQ:DXCM) and share the reasons why it makes for a strong stock pick despite challenges.
{% sfr %}
Taylor Carmichael: DexCom is continuous glucose monitoring for people that have diabetes and maybe pre-diabetes, but definitely diabetes. It replaces the needle pricks so you no longer have to stab yourself with a needle to check your blood sugar levels. It goes underneath the skin, very simple application, and it continually checks how you're doing. It's basically a duopoly. The last time I checked it was with Abbott Labs (NYSE: ABT). Abbott Labs has come out several years ago with their competing product. And Abbott Labs, they are a bigger company, they might actually have passed them in sales now. But DexCom has just been a huge, amazing stock. They have their recurring revenues. They have the subscribers that come over and over. They are at the high end of the continuing glucose monitoring segment. They have the best technology. Not to make the Abbott guys mad, but I think that DexCom has the high-end and the most specific. If your health insurance provider will pay for DexCom, that's probably where most people are going to go I think. It has been just a wonderful stock. It is a one-trick pony, so if we ever discover a cure for diabetes or a drug that takes it away then the stock will just be hammered. But they have been a wonderful stock for many years and I think it'll be a wonderful stock for the next 10 years. I remain very bullish on DexCom.
Jason Hall: Yeah, it's a great business and a wonderful product. Nick Sciple's another Fool who's been a big fan of this company in the past. To me, it comes back to the valuation argument. I think it's gotten very expensive. Even though it does have some serious competitive moats, it definitely does, and I think that the larger trend is that diabetes is going to be a bigger problem before it's going to be less of a problem over the next decade. But, I rated it lower because I think there are going to be challenges and threats. It does have a strong IP portfolio. It's got that patent protection that's going to be around for a while, but I'm not as big of a believer that it can continue. I think it's going to be a winning business, I just don't think the returns are going to be quite as good.
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Jason Hall has no position in any of the stocks mentioned. Taylor Carmichael has no position in any of the stocks mentioned. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The last time I checked it was with Abbott Labs (NYSE: ABT). In this clip from "The Rank" on Motley Fool Live, recorded on Feb. 7, Motley Fool contributors Taylor Carmichael and Jason Hall discuss their thoughts on DexCom (NASDAQ:DXCM) and share the reasons why it makes for a strong stock pick despite challenges. It is a one-trick pony, so if we ever discover a cure for diabetes or a drug that takes it away then the stock will just be hammered. | The last time I checked it was with Abbott Labs (NYSE: ABT). In this clip from "The Rank" on Motley Fool Live, recorded on Feb. 7, Motley Fool contributors Taylor Carmichael and Jason Hall discuss their thoughts on DexCom (NASDAQ:DXCM) and share the reasons why it makes for a strong stock pick despite challenges. {% sfr %} Taylor Carmichael: DexCom is continuous glucose monitoring for people that have diabetes and maybe pre-diabetes, but definitely diabetes. | The last time I checked it was with Abbott Labs (NYSE: ABT). In this clip from "The Rank" on Motley Fool Live, recorded on Feb. 7, Motley Fool contributors Taylor Carmichael and Jason Hall discuss their thoughts on DexCom (NASDAQ:DXCM) and share the reasons why it makes for a strong stock pick despite challenges. But they have been a wonderful stock for many years and I think it'll be a wonderful stock for the next 10 years. | The last time I checked it was with Abbott Labs (NYSE: ABT). In this clip from "The Rank" on Motley Fool Live, recorded on Feb. 7, Motley Fool contributors Taylor Carmichael and Jason Hall discuss their thoughts on DexCom (NASDAQ:DXCM) and share the reasons why it makes for a strong stock pick despite challenges. {% sfr %} Taylor Carmichael: DexCom is continuous glucose monitoring for people that have diabetes and maybe pre-diabetes, but definitely diabetes. |
31779.0 | 2022-02-18 00:00:00 UTC | Noteworthy Friday Option Activity: ABT, GS, NFLX | ABT | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-abt-gs-nflx | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Abbott Laboratories (Symbol: ABT), where a total of 45,722 contracts have traded so far, representing approximately 4.6 million underlying shares. That amounts to about 67.3% of ABT's average daily trading volume over the past month of 6.8 million shares. Particularly high volume was seen for the $114 strike put option expiring February 18, 2022, with 8,131 contracts trading so far today, representing approximately 813,100 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $114 strike highlighted in orange:
Goldman Sachs Group Inc (Symbol: GS) saw options trading volume of 20,557 contracts, representing approximately 2.1 million underlying shares or approximately 63.7% of GS's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $350 strike put option expiring February 18, 2022, with 796 contracts trading so far today, representing approximately 79,600 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $350 strike highlighted in orange:
And Netflix Inc (Symbol: NFLX) saw options trading volume of 89,052 contracts, representing approximately 8.9 million underlying shares or approximately 61.1% of NFLX's average daily trading volume over the past month, of 14.6 million shares. Particularly high volume was seen for the $400 strike call option expiring February 18, 2022, with 7,104 contracts trading so far today, representing approximately 710,400 underlying shares of NFLX. Below is a chart showing NFLX's trailing twelve month trading history, with the $400 strike highlighted in orange:
For the various different available expirations for ABT options, GS options, or NFLX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $114 strike put option expiring February 18, 2022, with 8,131 contracts trading so far today, representing approximately 813,100 underlying shares of ABT. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Abbott Laboratories (Symbol: ABT), where a total of 45,722 contracts have traded so far, representing approximately 4.6 million underlying shares. That amounts to about 67.3% of ABT's average daily trading volume over the past month of 6.8 million shares. | Particularly high volume was seen for the $114 strike put option expiring February 18, 2022, with 8,131 contracts trading so far today, representing approximately 813,100 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $114 strike highlighted in orange: Goldman Sachs Group Inc (Symbol: GS) saw options trading volume of 20,557 contracts, representing approximately 2.1 million underlying shares or approximately 63.7% of GS's average daily trading volume over the past month, of 3.2 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Abbott Laboratories (Symbol: ABT), where a total of 45,722 contracts have traded so far, representing approximately 4.6 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Abbott Laboratories (Symbol: ABT), where a total of 45,722 contracts have traded so far, representing approximately 4.6 million underlying shares. Below is a chart showing ABT's trailing twelve month trading history, with the $114 strike highlighted in orange: Goldman Sachs Group Inc (Symbol: GS) saw options trading volume of 20,557 contracts, representing approximately 2.1 million underlying shares or approximately 63.7% of GS's average daily trading volume over the past month, of 3.2 million shares. That amounts to about 67.3% of ABT's average daily trading volume over the past month of 6.8 million shares. | Below is a chart showing ABT's trailing twelve month trading history, with the $114 strike highlighted in orange: Goldman Sachs Group Inc (Symbol: GS) saw options trading volume of 20,557 contracts, representing approximately 2.1 million underlying shares or approximately 63.7% of GS's average daily trading volume over the past month, of 3.2 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Abbott Laboratories (Symbol: ABT), where a total of 45,722 contracts have traded so far, representing approximately 4.6 million underlying shares. That amounts to about 67.3% of ABT's average daily trading volume over the past month of 6.8 million shares. |
31780.0 | 2022-02-18 00:00:00 UTC | Relative Strength Alert For Abbott Laboratories | ABT | https://www.nasdaq.com/articles/relative-strength-alert-for-abbott-laboratories | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABT entered into oversold territory, changing hands as low as $116.22 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Abbott Laboratories, the RSI reading has hit 26.2 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 45.5. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.56% based upon the recent $120.58 share price.
A bullish investor could look at ABT's 26.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABT's 26.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABT entered into oversold territory, changing hands as low as $116.22 per share. | Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.56% based upon the recent $120.58 share price. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABT entered into oversold territory, changing hands as low as $116.22 per share. | Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABT entered into oversold territory, changing hands as low as $116.22 per share. Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.56% based upon the recent $120.58 share price. | Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of ABT entered into oversold territory, changing hands as low as $116.22 per share. |
31781.0 | 2022-02-18 00:00:00 UTC | Notable ETF Inflow Detected - VHT, ABT, DHR, MDT | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-vht-abt-dhr-mdt | 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 $259.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 66,278,321 to 67,359,926). Among the largest underlying components of VHT, in trading today Abbott Laboratories (Symbol: ABT) is off about 2.4%, Danaher Corp (Symbol: DHR) is off about 0.2%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. 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 $216.25 per share, with $268.72 as the 52 week high point — that compares with a last trade of $240.32. 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 Abbott Laboratories (Symbol: ABT) is off about 2.4%, Danaher Corp (Symbol: DHR) is off about 0.2%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. 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 $216.25 per share, with $268.72 as the 52 week high point — that compares with a last trade of $240.32. 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 Abbott Laboratories (Symbol: ABT) is off about 2.4%, Danaher Corp (Symbol: DHR) is off about 0.2%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. 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 $216.25 per share, with $268.72 as the 52 week high point — that compares with a last trade of $240.32. 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 Abbott Laboratories (Symbol: ABT) is off about 2.4%, Danaher Corp (Symbol: DHR) is off about 0.2%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $259.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 66,278,321 to 67,359,926). 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 $216.25 per share, with $268.72 as the 52 week high point — that compares with a last trade of $240.32. | Among the largest underlying components of VHT, in trading today Abbott Laboratories (Symbol: ABT) is off about 2.4%, Danaher Corp (Symbol: DHR) is off about 0.2%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Health Care ETF (Symbol: VHT) where we have detected an approximate $259.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 66,278,321 to 67,359,926). 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 $216.25 per share, with $268.72 as the 52 week high point — that compares with a last trade of $240.32. |
31782.0 | 2022-02-18 00:00:00 UTC | Here's Why Intuitive Surgical Stock Is A Better Pick Over This Software Company | ABT | https://www.nasdaq.com/articles/heres-why-intuitive-surgical-stock-is-a-better-pick-over-this-software-company | nan | nan | We think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Roper Technologies stock (NYSE: ROP), a software, engineered products, and solutions provider, with a similar revenue base as Intuitive Surgical, despite Intuitive Surgical’s comparatively higher valuation. ISRG stock trades at about 18x trailing revenues, compared to 8x for ROP stock. We believe that this gap in the valuation of the two companies is justified, given Intuitive Surgical’s better revenue growth and profitability, along with its better growth prospects.
Looking at stock returns, ROP stock, with -9% returns over the last six months, has outperformed ISRG stock, which saw a -15% change. Both the stocks have underperformed the broader indices, with a 0% change in the S&P500 over the same period. ISRG stock, in particular, has been weighed down due to its tepid 2022 outlook, given the expected adverse impact of Omicron on the total volume of procedures in Q122.
However, there is more to the comparison, and we believe Intuitive Surgical stands out with higher expected returns than Roper Technologies, as discussed in the sections below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Intuitive Surgical vs. Roper Technologies: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
While ISRG stock looks poised for better gains in the future, it is helpful to see how its peers stack up. Check out how Intuitive Surgical’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
1. Intuitive Surgical’s Revenue Growth Has Been Stronger
Both companies managed to see sales growth over the recent years, but Intuitive Surgical has witnessed a comparatively faster revenue growth. Intuitive Surgical’s sales have jumped from $3.1 billion in 2017 to $5.7 billion over the last twelve months, while Roper Technologies’ revenue has risen from $4.6 billion to $6.1 billion over the same period.
For Intuitive Surgical, revenue growth over the recent quarters was driven by a rebound in procedure volume, which was adversely impacted in the initial phases of the pandemic, due to the shelter-in-place restrictions. Our Intuitive Surgical Revenues dashboard provides more details on the company’s top-line.
For Roper Technologies, the revenue growth is being driven by the increased contribution of Application Software over the recent past. Under this segment, the company offers software solutions for government contracting, professional services, and acute healthcare markets. The segment revenue grew 32% y-o-y in 2021, and it accounted for 41% of the company’s total revenue in 2021, compared to a 37% contribution in 2020.
Intuitive Surgical’s last three-year revenue CAGR of 16% is better than 6% CAGR for Roper Technologies.
Looking forward, Intuitive Surgical’s revenue is expected to grow faster than Roper Technologies over the next three years. The table below summarizes our revenue expectation for the two companies over the next three years and points to a CAGR of 14% for Intuitive Surgical, compared to a CAGR of 3% for Roper Technologies, 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 return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Intuitive Surgical Is More Profitable, And It Comes With Lower Risk
Intuitive Surgical’s operating margin of 31% over the last twelve-month period is much higher than 14% for Roper Technologies. However, the recently released full-year 2021 results for Roper Technologies points toward a 26% operating margin in 2021.
Our Intuitive Surgical Operating Income and Roper Technologies Operating Income dashboards have more details.
Intuitive Surgical’s free cash flow margin of 37% is also better than 33% for Roper Technologies.
Looking at financial risk, Intuitive Surgical beats Roper Technologies with its better debt and cash position. Intuitive Surgical’s <1% debt as a percentage of equity is much lower than 18% for Roper Technologies, while its 64% cash as a percentage of assets is much higher than 2% for the latter, implying that ISRG stock, with its better debt and cash position, offers lower financial risk compared to ROP stock.
3. The Net of It All
We see that Intuitive Surgical has demonstrated better revenue growth, and it is more profitable than Roper. It also offers lower financial risk, justifying the valuation gap.
However, looking at a valuation based on P/EBITDA, both the stocks are comparable. At its current levels, ISRG stock represents a P/EBITDA multiple of a little over 41x based on Intuitive Surgical EBITDA for the last twelve months, while ROP stock represents a P/EBITDA of a little under 47x based on Roper Technologies EBITDA over the same period.
We believe Intuitive Surgical is currently the better choice of the two, based on prospects, using P/S as a base due to high fluctuations in P/E and P/EBIT. The table below summarizes our revenue and return expectation for ISRG and ROP over the next three years and points to an expected return of 41% for ISRG over this period vs. 7% expected return for ROP stock, implying that investors are better off buying ISRG over ROP, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Roper Technologies – which also provides more details on how we arrive at these numbers.
While ISRG stock may outperform ROP, the Covid-19 crisis has created many pricing discontinuities that offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Roper Technologies vs. Installed Building Products.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return 2% -19% 311%
ROP Return 1% -10% 141%
S&P 500 Return -1% -6% 100%
Trefis MS Portfolio Return 3% -7% 265%
[1] Month-to-date and year-to-date as of 2/16/2022
[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. | ISRG stock, in particular, has been weighed down due to its tepid 2022 outlook, given the expected adverse impact of Omicron on the total volume of procedures in Q122. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Intuitive Surgical vs. Roper Technologies: Which Stock Is A Better Bet? For Intuitive Surgical, revenue growth over the recent quarters was driven by a rebound in procedure volume, which was adversely impacted in the initial phases of the pandemic, due to the shelter-in-place restrictions. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis – Intuitive Surgical vs. Roper Technologies: Which Stock Is A Better Bet? Intuitive Surgical’s <1% debt as a percentage of equity is much lower than 18% for Roper Technologies, while its 64% cash as a percentage of assets is much higher than 2% for the latter, implying that ISRG stock, with its better debt and cash position, offers lower financial risk compared to ROP stock. The table below summarizes our revenue and return expectation for ISRG and ROP over the next three years and points to an expected return of 41% for ISRG over this period vs. 7% expected return for ROP stock, implying that investors are better off buying ISRG over ROP, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Roper Technologies – which also provides more details on how we arrive at these numbers. | We think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Roper Technologies stock (NYSE: ROP), a software, engineered products, and solutions provider, with a similar revenue base as Intuitive Surgical, despite Intuitive Surgical’s comparatively higher valuation. Intuitive Surgical’s Revenue Growth Has Been Stronger Both companies managed to see sales growth over the recent years, but Intuitive Surgical has witnessed a comparatively faster revenue growth. The table below summarizes our revenue and return expectation for ISRG and ROP over the next three years and points to an expected return of 41% for ISRG over this period vs. 7% expected return for ROP stock, implying that investors are better off buying ISRG over ROP, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Roper Technologies – which also provides more details on how we arrive at these numbers. | We think Intuitive Surgical stock (NASDAQ: ISRG) is currently a better pick than Roper Technologies stock (NYSE: ROP), a software, engineered products, and solutions provider, with a similar revenue base as Intuitive Surgical, despite Intuitive Surgical’s comparatively higher valuation. Looking at stock returns, ROP stock, with -9% returns over the last six months, has outperformed ISRG stock, which saw a -15% change. The table below summarizes our revenue and return expectation for ISRG and ROP over the next three years and points to an expected return of 41% for ISRG over this period vs. 7% expected return for ROP stock, implying that investors are better off buying ISRG over ROP, based on Trefis Machine Learning analysis – Intuitive Surgical vs. Roper Technologies – which also provides more details on how we arrive at these numbers. |
31783.0 | 2022-02-17 00:00:00 UTC | Abbott recalls certain Similac baby formula made at Michigan facility | ABT | https://www.nasdaq.com/articles/abbott-recalls-certain-similac-baby-formula-made-at-michigan-facility | nan | nan | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Thursday it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed the products.
The complaints were related to Cronobacter sakazakii bacteria or Salmonella Newport and Abbott will also recall its Alimentum and EleCare baby formulas manufactured at the plant in Sturgis.
The U.S. Food and Drug Administration said in a statement that it was investigating consumer complaints of the infections. [https://bit.ly/3oWYQHV]
"All four cases related to these complaints were hospitalized and Cronobacter may have contributed to a death in one case," the health agency said.
Cronobacter sakazakii bacteria can cause serious invasive infections and premature infant death. The most recent U.S. outbreak spanned four states in 2011.
The FDA also said that a review of Abbott's internal records indicated environmental contamination with Cronobacter sakazakii.
(Reporting by Dania Nadeem in Bengaluru; Editing by Aditya Soni)
((Dania.Nadeem@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Thursday it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed the products. The complaints were related to Cronobacter sakazakii bacteria or Salmonella Newport and Abbott will also recall its Alimentum and EleCare baby formulas manufactured at the plant in Sturgis. The FDA also said that a review of Abbott's internal records indicated environmental contamination with Cronobacter sakazakii. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Thursday it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed the products. The complaints were related to Cronobacter sakazakii bacteria or Salmonella Newport and Abbott will also recall its Alimentum and EleCare baby formulas manufactured at the plant in Sturgis. Cronobacter sakazakii bacteria can cause serious invasive infections and premature infant death. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Thursday it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed the products. The complaints were related to Cronobacter sakazakii bacteria or Salmonella Newport and Abbott will also recall its Alimentum and EleCare baby formulas manufactured at the plant in Sturgis. (Reporting by Dania Nadeem in Bengaluru; Editing by Aditya Soni) ((Dania.Nadeem@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Feb 17 (Reuters) - Abbott Laboratories ABT.N said on Thursday it was recalling powdered baby formulas, including Similac, made at a Michigan facility after four consumers complained about bacterial infections in infants who consumed the products. The complaints were related to Cronobacter sakazakii bacteria or Salmonella Newport and Abbott will also recall its Alimentum and EleCare baby formulas manufactured at the plant in Sturgis. [https://bit.ly/3oWYQHV] "All four cases related to these complaints were hospitalized and Cronobacter may have contributed to a death in one case," the health agency said. |
31784.0 | 2022-02-17 00:00:00 UTC | 2 Green Flags for Abbott Laboratories' Future | ABT | https://www.nasdaq.com/articles/2-green-flags-for-abbott-laboratories-future | nan | nan | The past year hasn't been the best for Abbott Laboratories (NYSE: ABT) and its shareholders, as the medical devices giant has lagged the broader market. But zooming out helps give some perspective: The company has soundly outperformed the broader market over the last five, 10, and 20 years.
There are excellent reasons to think Abbott will produce more market-beating returns in the years to come for investors willing to be patient. Here are just two reasons the future is bright for this medical devices company.
ABT data by YCharts.
1. Diversification is key
A diversified business makes a company less reliant on a single segment, which can help during tough times. Even if one of its units faces headwinds, it can rely on other segments to pick up the slack. Abbott is an excellent example.
The company operates four segments: nutrition, diagnostics, established pharmaceuticals (in which it sells generic pharmaceuticals in emerging markets), and medical devices. The company's sales for 2021 were divided among these four business units as follows:
SEGMENT
2021 SALES
YOY GROWTH (ORGANIC)
PERCENTAGE OF TOTAL SALES
Nutrition
$8.29 billion
7.7%
19.3%
Diagnostics
$15.64 billion
42.7%
36.3%
Established pharmaceuticals
$4.72 billion
10.4%
11%
Medical devices
$14.37 billion
19.4%
33.4%
Data source: Abbott. Chart by author. YOY = year over year.
Abbott's diversity has been crucial in maintaining its revenue and earnings in the past couple of years. The medical devices business suffered as elective surgery decreased during the pandemic, leading to lower sales for some products in this segment.
However, Abbott developed and marketed several COVID-19 diagnostic tests, the sales of which substantially contributed to its top and bottom lines. Without its diagnostics business, the company would have had much worse financial performance in the past two years.
But in addition to its range of business segments, Abbott benefits from geographical diversity with a presence in more than 160 countries. Many of those countries are emerging markets where spending on healthcare products is outpacing the growth of the gross domestic product.
Investors shouldn't overlook the importance of these diverse business operations.
Image source: Getty Images.
2. Major tailwinds
The healthcare industry is on what looks like an unstoppable upward trend. While there will always be a relatively high demand for various health-related products, the world's aging population will only increase this demand in the coming decades. According to some estimates, those 65 and older will represent nearly 25% of the U.S. population by 2060, up from 16% in 2019.
The role that well-established healthcare innovators like Abbott play will only become more prevalent since people need more care as they get older. Besides global aging trends, there is one specific growth area the company is looking to tap into: the market for continuous glucose monitoring (CGM) systems.
CGM devices help diabetes patients automatically track their blood glucose levels and achieve better health outcomes. Abbott's CGM device, the FreeStyle Libre, has been immensely successful. In the fourth quarter, sales of this product came in at $1 billion, 36% higher than the year-ago period.
During the 2021 fiscal year, the number of FreeStyle Libre's users increased by more than 35% and exceeded 4 million. The number of diabetes patients will grow considerably in the coming years, and while that's not great news, it also means there will be more of a need for devices like the FreeStyle Libre.
As one of the market leaders in CGM with a long history of innovation, expect Abbott to be at the forefront of this space for many years to come.
Think long term
There are other reasons to consider purchasing shares of Abbott. The company's product portfolio has scores of patents that help keep competitors at bay, and it has a well-established reputation and deep connections in the industry.
Last but not least, it is a Dividend King, which makes it an excellent option for income-seeking investors. At its current share price, the stock yields 1.53%, slightly better than what the S&P 500 offers. These factors -- added to Abbott's diversified business and long-term growth prospects -- make the company an outstanding stock to consider buying and holding on to for a long time.
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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 past year hasn't been the best for Abbott Laboratories (NYSE: ABT) and its shareholders, as the medical devices giant has lagged the broader market. ABT data by YCharts. Besides global aging trends, there is one specific growth area the company is looking to tap into: the market for continuous glucose monitoring (CGM) systems. | The past year hasn't been the best for Abbott Laboratories (NYSE: ABT) and its shareholders, as the medical devices giant has lagged the broader market. ABT data by YCharts. The company operates four segments: nutrition, diagnostics, established pharmaceuticals (in which it sells generic pharmaceuticals in emerging markets), and medical devices. | The past year hasn't been the best for Abbott Laboratories (NYSE: ABT) and its shareholders, as the medical devices giant has lagged the broader market. ABT data by YCharts. Nutrition $8.29 billion 7.7% 19.3% Diagnostics $15.64 billion 42.7% 36.3% Established pharmaceuticals $4.72 billion 10.4% 11% Medical devices $14.37 billion 19.4% 33.4% Data source: Abbott. | The past year hasn't been the best for Abbott Laboratories (NYSE: ABT) and its shareholders, as the medical devices giant has lagged the broader market. ABT data by YCharts. There are excellent reasons to think Abbott will produce more market-beating returns in the years to come for investors willing to be patient. |
31785.0 | 2022-02-17 00:00:00 UTC | AbbVie Is a Better Stock Than You Might Think -- Here's Why | ABT | https://www.nasdaq.com/articles/abbvie-is-a-better-stock-than-you-might-think-heres-why | nan | nan | AbbVie's (NYSE: ABBV) fortunes have hinged primarily on autoimmune-disease drug Humira for years. That's understandable, considering that Humira has ranked as the world's bestselling drug for nearly a decade.
However, Humira faces biosimilar rivals in the U.S. beginning in 2023. Many investors could be concerned about AbbVie's future as sales for its top blockbuster inevitably decline. But AbbVie is a better stock than you might think.
Image source: Getty Images.
Humira's death has been greatly exaggerated
Yes, AbbVie will soon face a challenge from Humira biosimilars in the U.S. market. But no, Humira's sales won't evaporate next year. Actually, the drug is likely to remain a megablockbuster for quite a while.
We can look to AbbVie's experience with Humira biosimilars in international markets as a guide for what to expect going forward. International sales for the autoimmune-disease drug peaked in 2018 at nearly $6.3 billion, with biosimilars hitting the European market near the end of the year.
What happened in 2019? International sales for Humira plunged 31%. However, the drug still raked in $4.3 billion outside of the U.S. And last year, Humira generated nearly $3.4 billion internationally -- around 54% of peak ex-U.S. sales.
Let's assume that Humira's U.S. sales drop by 50% in 2023. Even in this much worse scenario than what happened with international biosimilar competition, the drug would still make close to $8.7 billion in U.S. sales.
Look out for "Humira 2.0"
The prospects of AbbVie losing a huge chunk of revenue won't give investors a warm-and-fuzzy feeling. However, the company probably won't suffer nearly as much as you might expect.
One big reason why is that AbbVie has a "Humira 2.0" of sorts with its two successors to Humira -- Rinvoq and Skyrizi. Sales of the two drugs combined totaled nearly $4.6 billion in 2021. AbbVie projects combined global sales of $15 billion in 2025. The net increase could be enough to offset sales declines for Humira without any additional help.
It's important to note that AbbVie's estimate is risk adjusted. The company isn't betting that everything goes right with clinical testing and regulatory approvals.
The future beyond 2025 looks even brighter. AbbVie CEO Rick Gonzalez said in the company's recent fourth-quarter conference call, "We expect combined peak sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira."
Don't underestimate the power of a juicy dividend
AbbVie's dividend has been a big plus for the stock throughout the years. The company ranks as a Dividend Aristocrat. Its dividend yield currently stands at a little under 4%.
Don't underestimate the power of a juicy dividend. For example, take a look at just how much AbbVie's dividend has helped boost its total return since the company was spun off from Abbott in 2013.
ABBV data by YCharts.
The numbers don't lie. Nearly 40% of AbbVie's total return has stemmed from its dividend. And while AbbVie's stock performance outperformed the S&P 500 during this period, its total return including dividends beat the major index.
Expect AbbVie's dividend to continue playing a key role in total returns in the future. CFO Rob Michael noted in the company's Q4 call that its "cash flow will fully support a strong and growing dividend."
Room to run
Perhaps the most important thing for investors to understand is that the anticipated sales declines for Humira are fully priced into AbbVie's share price. The big-pharma stock trades at a little over 10x expected earnings. That's roughly half of the S&P 500's forward earnings multiple. Keep in mind that AbbVie's valuation remains attractive after soaring 38% over the past 12 months.
Wall Street doesn't seem to think that AbbVie will continue this momentum. The consensus price target reflects an upside of only around 2%. I think that the analysts -- and many investors -- aren't giving AbbVie enough credit.
The company is well prepared for the long-anticipated sunset years for Humira. In addition to Rinvoq and Skyrizi, AbbVie's current lineup includes several other growth drivers such as blood cancer drug Venclexta and antipsychotic drug Vraylar. The company also has a broad pipeline.
AbbVie expects to quickly return to growth in 2024 after a temporary trough year in 2023 due to Humira's loss of exclusivity. The company looks for strong revenue growth throughout the rest of the decade. This stock should have plenty of room to run, especially considering its bargain valuation and top-tier dividend.
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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. | International sales for the autoimmune-disease drug peaked in 2018 at nearly $6.3 billion, with biosimilars hitting the European market near the end of the year. Look out for "Humira 2.0" The prospects of AbbVie losing a huge chunk of revenue won't give investors a warm-and-fuzzy feeling. CFO Rob Michael noted in the company's Q4 call that its "cash flow will fully support a strong and growing dividend." | Look out for "Humira 2.0" The prospects of AbbVie losing a huge chunk of revenue won't give investors a warm-and-fuzzy feeling. AbbVie CEO Rick Gonzalez said in the company's recent fourth-quarter conference call, "We expect combined peak sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira." Don't underestimate the power of a juicy dividend AbbVie's dividend has been a big plus for the stock throughout the years. | AbbVie CEO Rick Gonzalez said in the company's recent fourth-quarter conference call, "We expect combined peak sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira." Don't underestimate the power of a juicy dividend AbbVie's dividend has been a big plus for the stock throughout the years. Room to run Perhaps the most important thing for investors to understand is that the anticipated sales declines for Humira are fully priced into AbbVie's share price. | But no, Humira's sales won't evaporate next year. However, the company probably won't suffer nearly as much as you might expect. Don't underestimate the power of a juicy dividend AbbVie's dividend has been a big plus for the stock throughout the years. |
31786.0 | 2022-02-17 00:00:00 UTC | Is Boston Scientific Stock A Good Buy At $43? | ABT | https://www.nasdaq.com/articles/is-boston-scientific-stock-a-good-buy-at-%2443 | nan | nan | [Updated: Feb 15, 2022] BSX Stock Trades Sideways
We believe that Boston Scientific stock (NYSE: BSX) is a good buying opportunity at the current levels. Earlier this month the company released its Q4 earnings, which were better than our estimates. Boston Scientific’s revenue of $3.1 billion (up 15% y-o-y), was in-line with our estimate, as well as the consensus. The sales growth was driven by a good 25% sales growth for the company’s Cardiovascular segment, while MedSurg and Rhythm & Neuro both saw 12% growth. Looking at the bottom line, Boston Scientific reported adjusted earnings of $0.45 on a per share and adjusted basis, compared to $0.23 in the prior-year quarter. The earnings were better than our estimate of $0.43 and the consensus estimate of $0.44 per share.
BSX stock moved marginally higher from levels of $43 on Feb 1 to levels of around $45 on Feb 9 before cooling off back to levels of $43 currently. A tepid stock price performance post Q4 announcement can be attributed to the company’s outlook for 2022. Boston Scientific expects the 2022 sales to grow between 6% and 8%, compared to 9% per the consensus estimate. Similarly, the company expects its adjusted EPS to be between $1.73 and $1.79, compared to the consensus estimate of $1.87. This outlook did not bode well with the investors.
Now, we have updated our model to reflect the latest quarterly numbers for Boston Scientific. We estimate Boston Scientific’s Valuation to be $51 per share, reflecting an upside of around 18% from its current levels of $43. This represents a P/E multiple of 28x based on our $1.80 expected EPS for 2022. Our forecast is marginally above the higher end of the company’s provided range. We believe that the company’s outlook for 2022 is conservative. The slower growth outlook can largely be attributed to the spread of Omicron and its impact on elective surgeries, primarily in Q1’22, but as the year progresses, sales are likely to pick up the pace. Looking at the valuation, the 28x P/E multiple is in-line with the average seen between 2018 and 2021. Given the upside potential, we believe that investors can use the current dip in BSX stock to buy for long-term gains.
But what about the near-term outlook for Boston Scientific stock?
Given that BSX stock has seen a decline of 4% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of an increase in BSX stock over the next month. Out of 423 instances in the last ten years that BSX stock saw a twenty-one-day fall of 4% or more, 255 of them resulted in BSX stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 255 out of 423, or a 60% chance of a rise in BSX stock over the coming month, implying that BSX stock is a reasonable bet at its current levels, even for the short term, in our view. See our Boston Scientific Stock Chance of A Rise analysis for more details.
[Updated: Jan 31, 2022] Boston Scientific’s Q4 Earnings Preview
Boston Scientific (NYSE:BSX) is scheduled to report its Q4 2021 results on Wednesday, Feb 2. We expect the company to report revenues in-line but earnings marginally below the consensus estimates, as the rise of Covid-19 cases with the spread of Omicron, likely weighed on the overall procedures volume, while the rise of material cost and wages may adversely impact the company’s operating margin growth. While we don’t expect any earnings surprise from Boston Scientific, its stock has some more room for growth, in our view, as we discuss in the sections below. Our interactive dashboard analysis on Boston Scientific’s Earnings Preview has additional details.
(1) Revenues expected to be in-line with the consensus estimates
Trefis estimates Boston Scientific’s Q4 2021 revenues to be around $3.1 billion, in-line with the consensus estimate.
While the revenue estimate reflects a y-o-y growth in early teens percentage, the sales are likely to have faced headwinds from the spread of Omicron variant starting December.
Hospital staffing shortage due to the spread of Omicron is expected to result in fewer procedures performed in Q4 as well as Q1.
Looking back at Q3, the company reported a 10% y-o-y rise in sales to $2.9 billion, led by a healthy 19% growth for its Cardiovascular segment, an 11% growth for MedSurg, and 8% rise in Rhythm & Neuro sales.
Our dashboard on Boston Scientific Revenues offers more details on the company’s segments.
The sales growth over the recent quarters has partly been driven by the company’s Left Atrial Appendage Closure (LAAC) device – Watchman – which continues to gain market share driven by higher physician utilization rate, and this trend is expected to continue in the near term.
(2) EPS likely to be marginally below the consensus estimates
Boston Scientific’s Q4 2021 adjusted earnings per share (EPS) is expected to be $0.43 per Trefis analysis, just a cent below the consensus estimate of $0.44.
Boston Scientific’s adjusted net income of $581 million in Q3 2021 reflected a 10% growth from its $531 million figure in the prior-year quarter.
With inflationary pressure and near-term impact on sales from the Omicron spread may weigh on the company’s operating margin expansion in Q4.
With the economic recovery and a robust demand outlook, Boston Scientific’s operating margins are expected to improve over the next few quarters. For the full-year 2022, we expect the adjusted EPS to be higher at $1.86 compared to $0.97 in 2020, and an estimated $1.61 in 2021.
(3) BSX stock appears to have some more room for growth
We estimate Boston Scientific’s Valuation to be $49 per share, which is 15% above the current market price of $43.
This represents a forward P/EBITDA of 39x based on Boston Scientific’s EBITDA for the last twelve months.
That said, if the company reports upbeat results, with sales and earnings growth as well as 2022 guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in even higher levels for BSX stock.
While BSX stock is likely to see little movement in the near term, based on our Q4FY21 expectations, there are several peers in its sector that look like a better bet than Boston Scientific. Check out how Boston Scientific Peers fare on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BSX Return 0% 1% 98%
S&P 500 Return -2% -7% 97%
Trefis MS Portfolio Return 1% -9% 258%
[1] Month-to-date and year-to-date as of 2/15/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating PortfoliosSee all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The slower growth outlook can largely be attributed to the spread of Omicron and its impact on elective surgeries, primarily in Q1’22, but as the year progresses, sales are likely to pick up the pace. While the revenue estimate reflects a y-o-y growth in early teens percentage, the sales are likely to have faced headwinds from the spread of Omicron variant starting December. (3) BSX stock appears to have some more room for growth We estimate Boston Scientific’s Valuation to be $49 per share, which is 15% above the current market price of $43. | The sales growth was driven by a good 25% sales growth for the company’s Cardiovascular segment, while MedSurg and Rhythm & Neuro both saw 12% growth. [Updated: Jan 31, 2022] Boston Scientific’s Q4 Earnings Preview Boston Scientific (NYSE:BSX) is scheduled to report its Q4 2021 results on Wednesday, Feb 2. (1) Revenues expected to be in-line with the consensus estimates Trefis estimates Boston Scientific’s Q4 2021 revenues to be around $3.1 billion, in-line with the consensus estimate. | We expect the company to report revenues in-line but earnings marginally below the consensus estimates, as the rise of Covid-19 cases with the spread of Omicron, likely weighed on the overall procedures volume, while the rise of material cost and wages may adversely impact the company’s operating margin growth. (1) Revenues expected to be in-line with the consensus estimates Trefis estimates Boston Scientific’s Q4 2021 revenues to be around $3.1 billion, in-line with the consensus estimate. (2) EPS likely to be marginally below the consensus estimates Boston Scientific’s Q4 2021 adjusted earnings per share (EPS) is expected to be $0.43 per Trefis analysis, just a cent below the consensus estimate of $0.44. | We expect the company to report revenues in-line but earnings marginally below the consensus estimates, as the rise of Covid-19 cases with the spread of Omicron, likely weighed on the overall procedures volume, while the rise of material cost and wages may adversely impact the company’s operating margin growth. (2) EPS likely to be marginally below the consensus estimates Boston Scientific’s Q4 2021 adjusted earnings per share (EPS) is expected to be $0.43 per Trefis analysis, just a cent below the consensus estimate of $0.44. (3) BSX stock appears to have some more room for growth We estimate Boston Scientific’s Valuation to be $49 per share, which is 15% above the current market price of $43. |
31787.0 | 2022-02-14 00:00:00 UTC | Abbott Laboratories Breaks Below 200-Day Moving Average - Notable for ABT | ABT | https://www.nasdaq.com/articles/abbott-laboratories-breaks-below-200-day-moving-average-notable-for-abt | nan | nan | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.54, changing hands as low as $121.98 per share. Abbott Laboratories shares are currently trading down about 2% on the day. The chart below shows the one year performance of ABT shares, versus its 200 day moving average:
Looking at the chart above, ABT's low point in its 52 week range is $105.36 per share, with $142.60 as the 52 week high point — that compares with a last trade of $122.86. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.54, changing hands as low as $121.98 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $105.36 per share, with $142.60 as the 52 week high point — that compares with a last trade of $122.86. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.54, changing hands as low as $121.98 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $105.36 per share, with $142.60 as the 52 week high point — that compares with a last trade of $122.86. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.54, changing hands as low as $121.98 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $105.36 per share, with $142.60 as the 52 week high point — that compares with a last trade of $122.86. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.54, changing hands as low as $121.98 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $105.36 per share, with $142.60 as the 52 week high point — that compares with a last trade of $122.86. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31788.0 | 2022-02-11 00:00:00 UTC | Why This Healthcare Giant Expects Decreased Covid Profits in 2022 | ABT | https://www.nasdaq.com/articles/why-this-healthcare-giant-expects-decreased-covid-profits-in-2022 | nan | nan | Abbott (NYSE: ABT) is projecting $2.5 billion in COVID-19 testing revenue for all of 2022, a low estimate considering the company made nearly that much in the fourth quarter alone. In this segment of "This Week in Healthcare," recorded on Jan. 31, Motley Fool contributor Keith Speights talks about Abbott's future as the coronavirus pandemic starts to ease.
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Brian Orelli: With Abbott, they reported earnings last week, and what did you think of the fourth quarter? I was a little surprised that COVID-19 testing was down year over year, but sales for the rest of the company looked pretty good.
Keith Speights: Yeah, I thought overall that Abbott again delivered a solid performance in Q4, total revenue jumped 7.2 percent year over year to $11.5 billion. Adjusted earnings were a little down. They came in at a $1.32 per share. That's lower than the $1.45 per share in the prior-year period. But it was still ahead of Wall Street expectations. Still just a solid quarter for Abbott overall.
You are right though Brian, COVID testing revenue fell from $2.4 billion in the fourth quarter of 2020, to $2.3 billion in the latest quarter. It fell just a little bit. I think it is surprising that it fell at all. But most of that decline, though, was because there was a big drop in molecular diagnostics, COVID testing. But Abbott's rapid COVID testing revenue increased a lot year-over-year due to a surge in US sales. I think what's happening here is that Abbott's rapid COVID test that those include BinaxNOW and ID NOW. I think that cannibalized is molecular diagnostics tests. In the latest quarter, the fourth quarter of 2021, rapid tests accounted for 90 percent of total COVID-19 testing revenue. I think we're just seeing this cannibalization, and the company doesn't make as much revenue off these rapid tests as it does the molecular tests. I think that's what's going on here.
To me, the biggest news in Abbott's Q4 update was that the company projects only $2.5 billion in COVID-19 testing revenue for all of 2022. Most of that amount would come early in the year. Granted, the company doesn't really have a good feel for exactly how the dynamics of the market are going to shake out this year, but that's still a really low estimate considering that Abbott made nearly that much in Q4 alone. I think we're going to see Abbott return to more of what it was pre-pandemic, which was a well-run healthcare giant with solid growth stemming primarily from its medical devices. Now, COVID-19 testing is still going to be important, but Abbott's clearly thinking that the gravy train is slowing to a halt here, not a halt, but slowing down considerably.
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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 (NYSE: ABT) is projecting $2.5 billion in COVID-19 testing revenue for all of 2022, a low estimate considering the company made nearly that much in the fourth quarter alone. In this segment of "This Week in Healthcare," recorded on Jan. 31, Motley Fool contributor Keith Speights talks about Abbott's future as the coronavirus pandemic starts to ease. Granted, the company doesn't really have a good feel for exactly how the dynamics of the market are going to shake out this year, but that's still a really low estimate considering that Abbott made nearly that much in Q4 alone. | Abbott (NYSE: ABT) is projecting $2.5 billion in COVID-19 testing revenue for all of 2022, a low estimate considering the company made nearly that much in the fourth quarter alone. You are right though Brian, COVID testing revenue fell from $2.4 billion in the fourth quarter of 2020, to $2.3 billion in the latest quarter. But Abbott's rapid COVID testing revenue increased a lot year-over-year due to a surge in US sales. | Abbott (NYSE: ABT) is projecting $2.5 billion in COVID-19 testing revenue for all of 2022, a low estimate considering the company made nearly that much in the fourth quarter alone. You are right though Brian, COVID testing revenue fell from $2.4 billion in the fourth quarter of 2020, to $2.3 billion in the latest quarter. In the latest quarter, the fourth quarter of 2021, rapid tests accounted for 90 percent of total COVID-19 testing revenue. | Abbott (NYSE: ABT) is projecting $2.5 billion in COVID-19 testing revenue for all of 2022, a low estimate considering the company made nearly that much in the fourth quarter alone. Keith Speights: Yeah, I thought overall that Abbott again delivered a solid performance in Q4, total revenue jumped 7.2 percent year over year to $11.5 billion. You are right though Brian, COVID testing revenue fell from $2.4 billion in the fourth quarter of 2020, to $2.3 billion in the latest quarter. |
31789.0 | 2022-02-10 00:00:00 UTC | SPLG, WFC, ABT, ACN: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/splg-wfc-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— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $755.9 million dollar inflow -- that's a 5.6% increase week over week in outstanding units (from 251,700,000 to 265,750,000). Among the largest underlying components of SPLG, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.6%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Accenture plc (Symbol: ACN) is lower by about 1.7%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $43.735 per share, with $56.44 as the 52 week high point — that compares with a last trade of $53.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPLG, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.6%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Accenture plc (Symbol: ACN) is lower by about 1.7%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $43.735 per share, with $56.44 as the 52 week high point — that compares with a last trade of $53.64. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPLG, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.6%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Accenture plc (Symbol: ACN) is lower by about 1.7%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $43.735 per share, with $56.44 as the 52 week high point — that compares with a last trade of $53.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SPLG, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.6%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Accenture plc (Symbol: ACN) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $755.9 million dollar inflow -- that's a 5.6% increase week over week in outstanding units (from 251,700,000 to 265,750,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $43.735 per share, with $56.44 as the 52 week high point — that compares with a last trade of $53.64. | Among the largest underlying components of SPLG, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.6%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Accenture plc (Symbol: ACN) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $755.9 million dollar inflow -- that's a 5.6% increase week over week in outstanding units (from 251,700,000 to 265,750,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $43.735 per share, with $56.44 as the 52 week high point — that compares with a last trade of $53.64. |
31790.0 | 2022-02-10 00:00:00 UTC | Here's Why You Should Retain Abbott (ABT) Stock For Now | ABT | https://www.nasdaq.com/articles/heres-why-you-should-retain-abbott-abt-stock-for-now-0 | nan | nan | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its solid diagnostics business. A solid fourth-quarter 2021 performance, along with its progress with the diabetes business, is expected to contribute further. However, forex woes and tensions in China persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 2.9% against 17.9% fall of the industry. The S&P 500 composite rose 15.5% in the same time frame.
The renowned provider of a diversified line of healthcare products has a market capitalization of $230.74 billion. The company projects 10.5% growth for the next five years and expects to maintain its strong performance. Abbott’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other one, the average surprise being 19.8%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Solid Diagnostics Portfolio: We are upbeat about Abbott’s continued strength in its Diagnostics business. With the spike in Omicron variant cases, particularly in the United States, demand for testing has increased significantly. In the fourth quarter of 2021, the company sold nearly 300 million COVID tests globally and delivered one billion tests in 2021. COVID testing sales in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally, comprised approximately 90% of those sales. Excluding COVID testing sales, worldwide diagnostic sales improved both in the fourth quarter and for the year. In 2021, the company placed more than 3,000 Alinity instruments for immunoassay and clinical chemistry testing, with approximately two-thirds of those placements coming from share capture.
Progress With Diabetes Business: We are optimistic about Abbott’s diabetes business. This business achieved organic sales growth in the fourth quarter of 2021 led by strong growth in FreeStyle Libre. In a relatively short time span, Libre has achieved global leadership among continuous glucose monitoring (“CGM”) systems for both Type 1 and Type 2 users. In 2020, the company received U.S. approval of Freestyle Libre 2 (an integrated CGM or iCGM system for adults and children) and CE Mark for Libre 3 and Libre Sense Glucose Sport.
Strong Q4 Results: Abbott’s better-than-expected fourth-quarter 2021 results buoy optimism. The company recorded year-over-year improvement in revenues. Abbott registered organic sales growth across all of its operating segments in the quarter. COVID-19 testing-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Within Adult Nutrition, the company gained from the strong performance of the Ensure and Glucerna brands.
Downsides
Tension in China Continues: Abbott, which is trying to expand its nutrition business in emerging markets, is facing weaknesses in Greater China on challenging market dynamics. Especially in pediatric nutrition, the company is apprehensive about the new food safety regulations and a consequent oversupply of products in the market. Outside of China, the company is witnessing soft market conditions across a few international markets. This may continue hurting the top line in the upcoming quarter as well.
Forex Woes: Foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the Euro and some other developed markets’ currencies has been constantly hampering the company’s performance in the international markets.
Estimate Trend
Abbott has been witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 2.9% north to $4.82.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $10.76 billion, suggesting a 2.9% uptick from the year-ago quarter’s reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Allscripts Healthcare Solutions, Inc. MDRX and Henry Schein, Inc. HSIC.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.5%. It currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 36.1% against the industry’s 59.9% fall over the past year.
Allscripts, carrying a Zacks Rank #2, has an estimated long-term growth rate of 11.1%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 34.1%.
Allscripts has gained 25.2% against the industry’s 55.7% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.9%. It currently carries a Zacks Rank #2.
Henry Schein has gained 9.9% compared with the industry’s 7% rise over the past year.
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Abbott Laboratories (ABT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its solid diagnostics business. Abbott Laboratories (ABT): Free Stock Analysis Report In 2021, the company placed more than 3,000 Alinity instruments for immunoassay and clinical chemistry testing, with approximately two-thirds of those placements coming from share capture. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its solid diagnostics business. Abbott Laboratories (ABT): Free Stock Analysis Report COVID testing sales in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally, comprised approximately 90% of those sales. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its solid diagnostics business. Abbott Laboratories (ABT): Free Stock Analysis Report COVID testing sales in the fourth quarter with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally, comprised approximately 90% of those sales. | Abbott Laboratories ABT is well poised for growth in the coming quarters, backed by its solid diagnostics business. Abbott Laboratories (ABT): Free Stock Analysis Report This business achieved organic sales growth in the fourth quarter of 2021 led by strong growth in FreeStyle Libre. |
31791.0 | 2022-02-09 00:00:00 UTC | What's The Outlook For Covid-19 Testing Stocks As Omicron Wave Fades | ABT | https://www.nasdaq.com/articles/whats-the-outlook-for-covid-19-testing-stocks-as-omicron-wave-fades | nan | nan | Our indicative theme on Covid-19 Testing Stocks – which includes companies that produce or carry out tests for Covid-19 infections – has underperformed considerably thus far in 2022, declining by about 14% year-to-date, compared to the S&P 500 which has declined about 6% over the same period. While testing demand surged through the holidays and in early January, as daily U.S. Covid-19 cases peaked at over 1 million, they have shown a declining trend recently, falling to an average of 322k as of last week. This could lead to more muted demand for testing. Moreover, there are concerns about long-term testing demand for a couple of reasons. For one, therapeutic options for Covid-19 are getting better and this could make people less inclined to get tested as soon as they develop symptoms. Secondly, the virus could also get milder, with the now dominant omicron strain itself apparently having a lower rate of severe disease. Separately, considering that testing stocks have provided solid returns over the last two years (about 47% over 2020 and 22% in 2021), investors are likely reducing exposure to the theme.
Within our theme, Quidel (NASDAQ: QDEL), maker of at-home Covid tests has been the worst performer, with its stock down by about 26% year-to-date, given the company’s revenues are significantly levered to Covid-19 tests. On the other side, Hologic (NASDAQ: HOLX), a medical technology company primarily focused on women’s health, has been the strongest performer, with its stock up by about 2% year-to-date.
Below you’ll find our previous coverage of the Covid-19 testing theme where you can track our view over time.
[12/20/2021] Omicron Brings Covid Testing Stocks Back In Focus
Our indicative theme on Covid-19 Testing Stocks – which includes companies that produce or carry out tests for Covid-19 infections – is up by 24% year-to-date, roughly in line with the S&P 500. While we were somewhat cautious about the long-term prospects for Covid-19 testing stocks in 2020, considering the progress made on the vaccine front, it’s now quite clear that Covid-19 testing demand will be here to stay in the near to medium term, as the pandemic proves difficult to contain given the diminishing immunity provided by vaccines and the constant mutation of the virus.
In fact, Covid-19 cases are soaring to the highest levels seen since the pandemic began in highly-vaccinated regions including the U.K and New York. The surge in new cases is likely driven by the highly contagious, but apparently less severe, new virus variant called omicron. Considering this, testing will remain key to containing the spread of Covid-19 and keeping the broader economy open. That being said, we probably wouldn’t look for outsize gains in testing stocks either, as Covid-19 treatments are getting better, with updated booster vaccines also looking like a real possibility in the coming months. Investors are also mindful of the relatively volatile nature of testing demand and revenue, which varies with Covid-19 infection numbers.
Within our theme, Laboratory Corp. of America (LH)has been the strongest performer gaining about 53% year-to-date, driven by strong demand for Covid-19 tests and a recovery in demand for testing and diagnostics outside of Covid. On the other side, Quidel (QDEL), down about 11%, was the weakest performer, given the company’s mixed quarterly earnings through 2021 and its sizable dependence on Covid tests.
Below you’ll find our previous coverage of the Covid-19 testing theme where you can track our view over time.
[10/13/2021] Covid Testing Stocks To Watch As The Holidays Near
Our indicative theme of Covid-19 Testing Stocks, which includes medical devices and diagnostic companies that are involved in Covid-19 testing – is up by about 69% year-to-date, significantly outperforming the S&P 500 which is up by about 8% over the same period. Testing is viewed as key to containing the spread of the Coronavirus pandemic and re-opening the economy until a safe and effective vaccine is developed. It’s likely that the demand for testing products and services is likely to rise with the coming holiday season. For example, as travel picks up, testing is likely to be key to improving confidence for passengers while potentially helping to reduce quarantine restrictions. Within our theme, Quidel (NASDAQ: QDEL) has been the strongest performer gaining about 260% year-to-date, while Quest Diagnostics (NYSE:DGX), up about 11%, was the weakest performer. Below is a bit more about these companies.
Quidel (QDEL) is a company that sells diagnostic healthcare products including rapid diagnostic testing solutions, cellular-based virology assays, and molecular diagnostic systems. The company doubled down on the Covid-19 testing over the last two quarters, and its stock is up a solid 261% this year.
QDEL
Hologic (HOLX) sells medical devices for diagnostics, surgery, and medical imaging. The company currently has two molecular diagnostic tests for Covid-19 including the Panther Fusion and Aptima tests. The stock is up by about 31% year-to-date.
Abbott Laboratories (ABT) has a diverse range of solutions including a test called BinaxNOW that provides test results in 5 minutes and works without relying on lab equipment. The stock is up by about 29% year-to-date.
Laboratory of America (LH) operates one of the largest clinical laboratory networks in the world. While the company’s general diagnostic business proved a mixed bag over the last two quarters as doctors’ visits declined due to the pandemic, it has scaled up the capacity and accessibility for Covid-19 tests. The stock is up by 14% year-to-date.
Quest Diagnostics (DGX) is one of the largest U.S. diagnostics chains that has been impacted by the pandemic, the company’s large-scale Covid-19 testing has compensated for this to an extent. The stock is up by 11% year-to-date.
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Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
HOLX Return 6% -2% 86%
S&P 500 Return -1% -6% 100%
Trefis MS Portfolio Return -1% -10% 254%
[1] Month-to-date and year-to-date as of 2/6/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) has a diverse range of solutions including a test called BinaxNOW that provides test results in 5 minutes and works without relying on lab equipment. While testing demand surged through the holidays and in early January, as daily U.S. Covid-19 cases peaked at over 1 million, they have shown a declining trend recently, falling to an average of 322k as of last week. On the other side, Hologic (NASDAQ: HOLX), a medical technology company primarily focused on women’s health, has been the strongest performer, with its stock up by about 2% year-to-date. | Abbott Laboratories (ABT) has a diverse range of solutions including a test called BinaxNOW that provides test results in 5 minutes and works without relying on lab equipment. [12/20/2021] Omicron Brings Covid Testing Stocks Back In Focus Our indicative theme on Covid-19 Testing Stocks – which includes companies that produce or carry out tests for Covid-19 infections – is up by 24% year-to-date, roughly in line with the S&P 500. Within our theme, Laboratory Corp. of America (LH)has been the strongest performer gaining about 53% year-to-date, driven by strong demand for Covid-19 tests and a recovery in demand for testing and diagnostics outside of Covid. | Abbott Laboratories (ABT) has a diverse range of solutions including a test called BinaxNOW that provides test results in 5 minutes and works without relying on lab equipment. [12/20/2021] Omicron Brings Covid Testing Stocks Back In Focus Our indicative theme on Covid-19 Testing Stocks – which includes companies that produce or carry out tests for Covid-19 infections – is up by 24% year-to-date, roughly in line with the S&P 500. Within our theme, Laboratory Corp. of America (LH)has been the strongest performer gaining about 53% year-to-date, driven by strong demand for Covid-19 tests and a recovery in demand for testing and diagnostics outside of Covid. | Abbott Laboratories (ABT) has a diverse range of solutions including a test called BinaxNOW that provides test results in 5 minutes and works without relying on lab equipment. Separately, considering that testing stocks have provided solid returns over the last two years (about 47% over 2020 and 22% in 2021), investors are likely reducing exposure to the theme. Within our theme, Laboratory Corp. of America (LH)has been the strongest performer gaining about 53% year-to-date, driven by strong demand for Covid-19 tests and a recovery in demand for testing and diagnostics outside of Covid. |
31792.0 | 2022-02-08 00:00:00 UTC | Qiagen sales rise on COVID-19 testing demand | ABT | https://www.nasdaq.com/articles/qiagen-sales-rise-on-covid-19-testing-demand | nan | nan | Adds background, 2022 forecast
Feb 8 (Reuters) - Qiagen QIA.DE reported a small rise in quarterly sales on Tuesday as the rapid spread of the Omicron coronavirus variant lifted demand for its COVID-19 tests.
The company's ultra-rapid, portable and PCR coronavirus tests have brought in millions of dollars in sales during the pandemic. Qiagen has also benefited from strong demand for its enzymes and other products used in third-party COVID-19 testing.
Rival Abbott Labs ABT.N and clinical laboratory Quest Diagnostics DGX.N also said earlier this year that the Omicron variant had pushed up demand for their tests.
Qiagen posted fourth-quarter net sales of $582 million, compared with $571 million a year earlier.
The U.S.-German genetic testing specialist forecast 2022 net sales of at least $2.07 billion and adjusted earnings per share of at least $2.05 at constant exchange rates.
(Reporting by Amruta Khandekar in Bengaluru; 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. | Rival Abbott Labs ABT.N and clinical laboratory Quest Diagnostics DGX.N also said earlier this year that the Omicron variant had pushed up demand for their tests. Adds background, 2022 forecast Feb 8 (Reuters) - Qiagen QIA.DE reported a small rise in quarterly sales on Tuesday as the rapid spread of the Omicron coronavirus variant lifted demand for its COVID-19 tests. The U.S.-German genetic testing specialist forecast 2022 net sales of at least $2.07 billion and adjusted earnings per share of at least $2.05 at constant exchange rates. | Rival Abbott Labs ABT.N and clinical laboratory Quest Diagnostics DGX.N also said earlier this year that the Omicron variant had pushed up demand for their tests. Adds background, 2022 forecast Feb 8 (Reuters) - Qiagen QIA.DE reported a small rise in quarterly sales on Tuesday as the rapid spread of the Omicron coronavirus variant lifted demand for its COVID-19 tests. Qiagen posted fourth-quarter net sales of $582 million, compared with $571 million a year earlier. | Rival Abbott Labs ABT.N and clinical laboratory Quest Diagnostics DGX.N also said earlier this year that the Omicron variant had pushed up demand for their tests. Adds background, 2022 forecast Feb 8 (Reuters) - Qiagen QIA.DE reported a small rise in quarterly sales on Tuesday as the rapid spread of the Omicron coronavirus variant lifted demand for its COVID-19 tests. Qiagen posted fourth-quarter net sales of $582 million, compared with $571 million a year earlier. | Rival Abbott Labs ABT.N and clinical laboratory Quest Diagnostics DGX.N also said earlier this year that the Omicron variant had pushed up demand for their tests. Adds background, 2022 forecast Feb 8 (Reuters) - Qiagen QIA.DE reported a small rise in quarterly sales on Tuesday as the rapid spread of the Omicron coronavirus variant lifted demand for its COVID-19 tests. Qiagen has also benefited from strong demand for its enzymes and other products used in third-party COVID-19 testing. |
31793.0 | 2022-02-08 00:00:00 UTC | 3 Top Healthcare Stocks to Buy for February | ABT | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-for-february | nan | nan | According to Verified Market Research, the global healthcare industry is worth $3.3 trillion today and could grow to $6.6 trillion by 2028. So you might want to consider having healthcare stocks in your portfolio, especially if you're a long-term investor.
The good news is that these companies come in all sorts of flavors, whether you're craving rapid growth or a big, fat dividend check. There seem to be a lot of good deals in the market these days. Here are three different types of healthcare stocks that stand out from the rest.
Growth stock: InMode
InMode (NASDAQ: INMD) builds medical equipment for minimally invasive, aesthetic medical procedures. The devices use a proprietary radio frequency (RF) technology to dissolve body fat under the face and skin. InMode's technology prevents many patients from undergoing plastic surgery, which is typically more expensive and can involve scarring or lengthy recovery.
Image Source: Getty Images
The company sells worldwide and has an installed device base of 10,350 units. InMode makes about 90% of its revenue from selling the equipment itself and another 10% in consumable products and machine servicing. Recurring revenue could become a more significant contributor over time as InMode's installment base grows.
InMode is also growing while maintaining profitability. In Q3 2021, the company expanded revenue 58% year over year (YOY) to $94 million and had a net income of $44.7 million. That's an impressive 47% net profit margin. Meanwhile, the stock's price-to-earnings ratio looks pretty reasonable at 27 for a profitable business growing this quickly. In the recent market correction, the stock has pulled back roughly 50% from its highs, giving investors a solid shot to acquire shares.
Dividend growth stock: Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a healthcare conglomerate that offers investors a "little bit of everything" in the industry. It sells pharmaceutical drugs, medical devices, and consumer products. Revenue has grown at an average of 3% annually over the past decade; it's not a rapidly growing business, but it does enough to keep increasing its dividend.
Investors can take comfort in that dividend, which is one of the most reliable of any public company. Johnson & Johnson is a Dividend King, a stock that's paid and increased its dividend for 59 consecutive years. The company's balance sheet is rated AAA from the major credit bureaus, one of only two with that rating higher than even the U.S. government!
While there are no guarantees in life, Johnson & Johnson's 2.5% dividend yield comes pretty close. At the same time, investors should be aware that J&J is still dealing with lawsuits surrounding its role in the opioid epidemic as well as cancer claims in relation to its talcum powder.
The stock itself trades at a P/E ratio of 22, which might not be cheap considering InMode trades at a modest premium to that while growing far more rapidly. However, investors have often placed a more expensive valuation on Johnson & Johnson for its blue-chip quality and strong financials. The company is also planning to spin-off its consumer products business, which could unlock more value for shareholders as an independent company.
High dividend yield stock: AbbVie
AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). AbbVie's nearly $250 billion market cap makes it one of the pharmaceutical industry's biggest companies. Having size and deep pockets on its side can be an advantage in pharmaceuticals, where drugs cost many millions to develop and could fizzle out in the FDA approval process. AbbVie has an extensive pipeline that gives it many shots at finding that next "blockbuster" like Humira that brings in billions in revenue.
The company also has a long dividend history, going back to the days when it was a part of Abbott Labs before it was spun off in 2012. AbbVie's dividend yield is 4%, beating most bonds and savings account rates, and has also been raised aggressively by management, growing an average of 18% annually over the past five years. This combination of yield and growth makes AbbVie a dividend investor's potential dream stock.
Humira contributed 35% of the revenue in AbbVie's Q4 2021 and loses patent protection in 2023, allowing copycat generic drugs to enter the market. AbbVie's been working to make up for what will be an eventual drop in Humira sales, but the market has still discounted the stock ahead of this challenge. The shares trade at a P/E ratio of just 11, which seems cheap considering that AbbVie's 2021 earnings per share grew 20% over the prior year. If AbbVie's emerging drug products can eventually make up most of Humira's losses, the current valuation could be a great entry point for a long-term position.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends InMode Ltd. 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. | At the same time, investors should be aware that J&J is still dealing with lawsuits surrounding its role in the opioid epidemic as well as cancer claims in relation to its talcum powder. AbbVie's dividend yield is 4%, beating most bonds and savings account rates, and has also been raised aggressively by management, growing an average of 18% annually over the past five years. If AbbVie's emerging drug products can eventually make up most of Humira's losses, the current valuation could be a great entry point for a long-term position. | Dividend growth stock: Johnson & Johnson Johnson & Johnson (NYSE: JNJ) is a healthcare conglomerate that offers investors a "little bit of everything" in the industry. It sells pharmaceutical drugs, medical devices, and consumer products. High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). | Dividend growth stock: Johnson & Johnson Johnson & Johnson (NYSE: JNJ) is a healthcare conglomerate that offers investors a "little bit of everything" in the industry. Johnson & Johnson is a Dividend King, a stock that's paid and increased its dividend for 59 consecutive years. High dividend yield stock: AbbVie AbbVie (NYSE: ABBV) is a pharmaceutical company that makes prescription products, including Botox and Humira (the world's top-selling drug). | It sells pharmaceutical drugs, medical devices, and consumer products. This combination of yield and growth makes AbbVie a dividend investor's potential dream stock. 10 stocks we like better than InMode Ltd. |
31794.0 | 2022-02-07 00:00:00 UTC | AbbVie Wins Yet Another Approval for This Drug | ABT | https://www.nasdaq.com/articles/abbvie-wins-yet-another-approval-for-this-drug | nan | nan | On Jan. 14, AbbVie's (NYSE: ABBV) Rinvoq received approval from the U.S. Food and Drug Administration (FDA) to treat adults and children at least 12 years old with moderate-to-severe atopic dermatitis (eczema) whose condition didn't respond to other medicines.
What led the FDA to approve Rinvoq for its third indication? And how much of a boost could this be for AbbVie's sales? Let's dig into the phase 3 clinical trial results and U.S. moderate-to-severe eczema market to find the answers to these two questions.
Image source: Getty Images.
Another solid treatment in the arsenal of healthcare professionals
According to Healthline, eczema is a chronic skin condition often expressed by patches of dry, inflamed, and itchy skin. It's thought that the disease is caused by excessive production of immune system cells that lead to inflammation. Eczema typically begins in early childhood and flares up from time to time.
Common first-line treatments for the condition include antihistamines and topical corticosteroids (TCS). Unfortunately, a majority of patients with moderate-to-severe eczema (55%) cannot control their eczema with their current treatment regimen. This can result in sleep issues and weigh on a patient's quality of life, which is why there's demand for more treatments for the disease.
Fortunately, more treatment options are making their way to the market. One of those treatments is Rinvoq, which was approved last August in the European Union to treat moderate-to-severe eczema. What data is there to support the approval in the EU and most recently in the U.S.?
Rinvoq funded a randomized clinical trial of 901 moderate-to-severe eczema patients. These patients were blindly assigned to either receive 15 milligrams of Rinvoq once daily with TCS, 30 milligrams of Rinvoq each day combined with TCS, or a placebo pill and TCS. The patients were followed over the course of a 16-week period. The more pronounced the reduction in the Eczema Area and Severity Index (EASI), the more effective a treatment was for eczema patients. The EASI is a clinical scale that measures eczema's severity and surface area. A 75% or greater improvement in the EASI is called EASI75, which is the best indication of whether a treatment is effective enough to be approved by regulatory agencies.
Patients taking TCS and the lower dose of Rinvoq were found to have reached at least 75% clearer skin, or EASI75, at a 65% rate at week 16, which was much higher than the 26% rate for the TCS and placebo group at week 16. Even more striking, 77% of patients receiving the higher dose of Rinvoq achieved EASI75 at week 16.
This news is huge for AbbVie's immunology segment
Rinvoq could be a powerful treatment for many patients with eczema. So, what could this mean for pharma stock AbbVie?
First, it's estimated that there are 6.6 million adults in the U.S. with moderate-to-severe eczema. For the sake of conservatism and sparse data being available, I won't include the population of U.S. adolescents with the disease.
Second, although 55% of moderate-to-severe eczema patients aren't satisfied with their treatment plan, I'll assume that approximately 20% of the patient pool could start Cibinqo. This works out to 1.3 million potential patients.
Third, Cibinqo has the benefit of being a pill, which helps patients avoid having to go into clinics and hospitals for injections to treat their condition. On the other hand, the convenience of Cibinqo could be at least partially offset by the fact that the drug is a Janus kinase inhibitor. Due to the increased risk of serious adverse events like blood clots, cancer, and major heart-related issues, the FDA could end up restricting patients to just the lower dose of Cibinqo for safety reasons.
Considering all of these factors, I believe that the drug could capture 6% of the market, or 79,000 patients.
Rinvoq has an annual list price of $68,000. Adjusting for patient assistance programs and negotiations from health insurers, I'll use $20,000 as the net annual price per patient. This equates to just under $1.6 billion in annual revenue potential.
Against the $59.8 billion in revenue that analysts are forecasting for AbbVie this year, this would be a nearly 3% boost to the company's overall revenue. An additional $1.6 billion in annual revenue for AbbVie would represent a 30%+ increase in the company's non-Humira immunology segment revenue over the nearly $4.6 billion in combined Skyrizi and Rinvoq revenue for last year.
A Dividend King to buy confidently
AbbVie's 8.5% increase in the dividends per share that it will pay out to shareholders in 2022 brings its dividend increase streak to 50 consecutive years -- including its time as part of Abbott Laboratories. This makes the stock a Dividend King.
AbbVie is trading at a forward price-to-earnings (P/E) ratio of 9.8, which is an appealing valuation considering that the stock's earnings are expected to grow 5% annually in the next five years. Investors can scoop up shares of AbbVie and its market-trouncing, steady 4.1% dividend yield on the cheap. That's what makes the stock an attractive option for income investors at the current $140 share price.
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Kody Kester owns AbbVie and Abbott Laboratories. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Jan. 14, AbbVie's (NYSE: ABBV) Rinvoq received approval from the U.S. Food and Drug Administration (FDA) to treat adults and children at least 12 years old with moderate-to-severe atopic dermatitis (eczema) whose condition didn't respond to other medicines. Due to the increased risk of serious adverse events like blood clots, cancer, and major heart-related issues, the FDA could end up restricting patients to just the lower dose of Cibinqo for safety reasons. AbbVie is trading at a forward price-to-earnings (P/E) ratio of 9.8, which is an appealing valuation considering that the stock's earnings are expected to grow 5% annually in the next five years. | Let's dig into the phase 3 clinical trial results and U.S. moderate-to-severe eczema market to find the answers to these two questions. These patients were blindly assigned to either receive 15 milligrams of Rinvoq once daily with TCS, 30 milligrams of Rinvoq each day combined with TCS, or a placebo pill and TCS. An additional $1.6 billion in annual revenue for AbbVie would represent a 30%+ increase in the company's non-Humira immunology segment revenue over the nearly $4.6 billion in combined Skyrizi and Rinvoq revenue for last year. | On Jan. 14, AbbVie's (NYSE: ABBV) Rinvoq received approval from the U.S. Food and Drug Administration (FDA) to treat adults and children at least 12 years old with moderate-to-severe atopic dermatitis (eczema) whose condition didn't respond to other medicines. This news is huge for AbbVie's immunology segment Rinvoq could be a powerful treatment for many patients with eczema. Second, although 55% of moderate-to-severe eczema patients aren't satisfied with their treatment plan, I'll assume that approximately 20% of the patient pool could start Cibinqo. | One of those treatments is Rinvoq, which was approved last August in the European Union to treat moderate-to-severe eczema. Rinvoq funded a randomized clinical trial of 901 moderate-to-severe eczema patients. So, what could this mean for pharma stock AbbVie? |
31795.0 | 2022-02-04 00:00:00 UTC | Should Investors Sell the Rumor With ShockWave Medical? | ABT | https://www.nasdaq.com/articles/should-investors-sell-the-rumor-with-shockwave-medical | nan | nan | There are rumors going around that ShockWave Medical (NASDAQ: SWAV) could be acquired by a big healthcare company. In this Motley Fool Live video, recorded on Jan. 26, Fool contributors Keith Speights and Brian Orelli discuss whether or not investors should sell the rumor with ShockWave.
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Keith Speights: Then let's get to another question. Mabel asks, she says, "They're more rumors about ShockWave Medical [ticker there is SWAV] being acquired by Medtronic (NYSE: MDT), Abbott (NYSE: ABT), etc. Should shareholders sell?"
Brian Orelli: Yeah. I mean, buy the rumor, sell the news, I guess, but I don't know. I think I haven't looked at the valuation recently, so I can't really tell you whether it's overvalued at this point. Do you have any thoughts on ShockWave?
Speights: I like ShockWave. I do not own the stock, but I think its long-term potential is tremendous. And if I did own shares right now, I would not be selling because of rumors by any means. I haven't looked at its valuation lately either, but I do like the potential of this company's products.
Orelli: I'd almost say if you're on the fence and you're going to feel bad if the rumors don't turn out to be true and it goes down, then maybe that's a sign that you shouldn't own it in the first place and maybe take the bump on the rumor and go sell it. But if you're less on the fence and you're willing to hold it for the long term, then it's not really going to matter if it goes down and then goes back up on actually being able to sell its products.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns and recommends ShockWave Medical. 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. | Mabel asks, she says, "They're more rumors about ShockWave Medical [ticker there is SWAV] being acquired by Medtronic (NYSE: MDT), Abbott (NYSE: ABT), etc. There are rumors going around that ShockWave Medical (NASDAQ: SWAV) could be acquired by a big healthcare company. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Mabel asks, she says, "They're more rumors about ShockWave Medical [ticker there is SWAV] being acquired by Medtronic (NYSE: MDT), Abbott (NYSE: ABT), etc. There are rumors going around that ShockWave Medical (NASDAQ: SWAV) could be acquired by a big healthcare company. In this Motley Fool Live video, recorded on Jan. 26, Fool contributors Keith Speights and Brian Orelli discuss whether or not investors should sell the rumor with ShockWave. | Mabel asks, she says, "They're more rumors about ShockWave Medical [ticker there is SWAV] being acquired by Medtronic (NYSE: MDT), Abbott (NYSE: ABT), etc. In this Motley Fool Live video, recorded on Jan. 26, Fool contributors Keith Speights and Brian Orelli discuss whether or not investors should sell the rumor with ShockWave. * They just revealed what they believe are the ten best stocks for investors to buy right now... and ShockWave Medical wasn't one of them! | Mabel asks, she says, "They're more rumors about ShockWave Medical [ticker there is SWAV] being acquired by Medtronic (NYSE: MDT), Abbott (NYSE: ABT), etc. In this Motley Fool Live video, recorded on Jan. 26, Fool contributors Keith Speights and Brian Orelli discuss whether or not investors should sell the rumor with ShockWave. That's right -- they think these 10 stocks are even better buys. |
31796.0 | 2022-02-04 00:00:00 UTC | 6 Stocks That Could Soar If New Coronavirus Variants Emerge | ABT | https://www.nasdaq.com/articles/6-stocks-that-could-soar-if-new-coronavirus-variants-emerge | nan | nan | Don't expect omicron to be the last coronavirus variant. That's the warning from the head of the World Health Organization. It would be great for the world if this prediction doesn't come true. In this Motley Fool Live video, recorded on Jan. 26, though, Fool contributors Keith Speights and Brian Orelli discuss six stocks that could soar if new coronavirus variants emerge.
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Keith Speights: Moving to the next topic... World Health Organization head and I'm going to butcher his name here, I apologize, Tedros Adhanom Ghebreyesus, recently warned that current conditions across the world could mean that more coronavirus variants will emerge.
Brian, first of all, do you agree with this take and second, if he's right, what are some stocks you think can move significantly higher if there's an emergence of more coronavirus variance?
Brian Orelli: I think it's completely right. As [Dr. Anthony] Fauci is fond of saying, "if it can't replicate, it can't mutate." That's because the replication process isn't 100% accurate and so some of the mutations that are caused during the replication process will end up being deleterious.
But some of them will actually be beneficial to the virus and the beneficial ones will be selected for. They might replicate faster or they might be more infectious going from one host to the next host or they might have mutations that help them evade the immune system. Those mutations will end up outcompeting the parent variant.
Then we have the potential for new variants. We have billions of people that are unvaccinated right now. That's what the WHO head was talking about, that are ripe to be hosts for these potential new variants.
His argument -- and I think it's completely valid -- is that we need to get those people vaccinated as quickly as possible. If we don't give them vaccinated, we're risking the Western world where we are vaccinated, having a new variant that our vaccines no longer work for.
Then what companies might benefit. Well, obviously vaccine makers, Pfizer (NYSE: PFE), BioNTech (NASDAQ: BNTX), Moderna (NASDAQ: MRNA) will benefit because they can potentially come up with new versions that are specific for this potential new variant. But even laggards like Novavax (NASDAQ: NVAX) could benefit because the need to protect against the new variant resets to the clinical time frame and Novavax can go into the clinic basically at the same time as Pfizer and BioNTech and Moderna.
The other obvious beneficiaries is test makers. I think Abbott (NYSE: ABT) is big in the at-home market. Fulgent Genetics (NASDAQ: FLGT) is a big player in the laboratory test market. I think those would both benefit.
Then potentially companies developing treatments, assuming the mutations of the new variants don't inactivate the treatment, don't make the variant resistant to the treatment. Those would obviously benefit.
Then we've seen that happen with antibodies treatments for omicron that they haven't worked. It depends on where the mutations are. The mutations on the outside of the protein are going to affect the antibodies where mutations on the enzymes that help the virus replicate are going to potentially be hurt. The drugs like Pfizer's drug that inhibits an enzyme that helps the virus replicate.
Speights: Brian, you and I have been saying for weeks now, as vaccine stocks fell, investors were looking beyond the omicron surge and thinking, "Hey, everything's going to be better soon." Maybe, and we hope so, but don't discount the possibility that coronavirus is going to be with us for a long time to come.
Brian Orelli, PhD owns Novavax. Keith Speights owns Pfizer. The Motley Fool owns and recommends Fulgent Genetics, Inc. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I think Abbott (NYSE: ABT) is big in the at-home market. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Keith Speights: Moving to the next topic... World Health Organization head and I'm going to butcher his name here, I apologize, Tedros Adhanom Ghebreyesus, recently warned that current conditions across the world could mean that more coronavirus variants will emerge. Brian, first of all, do you agree with this take and second, if he's right, what are some stocks you think can move significantly higher if there's an emergence of more coronavirus variance? | I think Abbott (NYSE: ABT) is big in the at-home market. As [Dr. Anthony] Fauci is fond of saying, "if it can't replicate, it can't mutate." Well, obviously vaccine makers, Pfizer (NYSE: PFE), BioNTech (NASDAQ: BNTX), Moderna (NASDAQ: MRNA) will benefit because they can potentially come up with new versions that are specific for this potential new variant. | I think Abbott (NYSE: ABT) is big in the at-home market. In this Motley Fool Live video, recorded on Jan. 26, though, Fool contributors Keith Speights and Brian Orelli discuss six stocks that could soar if new coronavirus variants emerge. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Keith Speights: Moving to the next topic... World Health Organization head and I'm going to butcher his name here, I apologize, Tedros Adhanom Ghebreyesus, recently warned that current conditions across the world could mean that more coronavirus variants will emerge. | I think Abbott (NYSE: ABT) is big in the at-home market. In this Motley Fool Live video, recorded on Jan. 26, though, Fool contributors Keith Speights and Brian Orelli discuss six stocks that could soar if new coronavirus variants emerge. Well, obviously vaccine makers, Pfizer (NYSE: PFE), BioNTech (NASDAQ: BNTX), Moderna (NASDAQ: MRNA) will benefit because they can potentially come up with new versions that are specific for this potential new variant. |
31797.0 | 2022-02-03 00:00:00 UTC | March 25th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/march-25th-options-now-available-for-abbott-laboratories-abt | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $129.00 strike price has a current bid of $3.50. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $129.00, but will also collect the premium, putting the cost basis of the shares at $125.50 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $130.09/share today.
Because the $129.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.71% return on the cash commitment, or 19.82% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Abbott Laboratories, and highlighting in green where the $129.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $132.00 strike price has a current bid of $3.10. If an investor was to purchase shares of ABT stock at the current price level of $130.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $132.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.85% if the stock gets called away at the March 25th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $132.00 strike highlighted in red:
Considering the fact that the $132.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.38% boost of extra return to the investor, or 17.41% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $130.09) to be 21%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $132.00 strike highlighted in red: Considering the fact that the $132.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 25th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $132.00 strike highlighted in red: Considering the fact that the $132.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 25th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $132.00 strike highlighted in red: Considering the fact that the $132.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 25th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $132.00 strike highlighted in red: Considering the fact that the $132.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 25th contracts and identified one put and one call contract of particular interest. |
31798.0 | 2022-02-02 00:00:00 UTC | Abbott's (ABT) Diabetes Arm Booms, Neuromodulation Sales Soft | ABT | https://www.nasdaq.com/articles/abbotts-abt-diabetes-arm-booms-neuromodulation-sales-soft | nan | nan | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. However, the soft neuromodulation business is a challenge. The stock currently carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has gained 1.4% against the industry’s 15.1% decline.
The company posted better-than-expected earnings and revenue numbers for the fourth quarter of 2021. Overall, year-over-year improvements were robust. Barring Neuromodulation, the company registered organic sales growth across all its operating segments. COVID-related sales were driven by demand for BinaxNOW, Panbio and ID NOW rapid testing platforms.
Excluding COVID testing sales, worldwide diagnostic sales grew over 8% in the quarter on the successful rollout of the Alinity suite of diagnostic instruments and expanded test menus across Abbott’s platforms.
A major point of encouragement, even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter was the strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. This mitigated the modest impacts of the pandemic that Abbott witnessed from the surge in cases in certain areas of its hospital base businesses.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
In the fourth quarter, within Nutrition, strong growth was led by U.S. pediatric and international adult nutrition. In Pediatric Nutrition, the company registered strong growth in the United States from continued share gains in infant formula and toddler portfolio. Abbott registered strong growth of Pedialyte, its oral rehydration brand, and market share gains for Similac, the company’s market-leading infant formula brand. In Adult Nutrition, there was 9% year-over-year growth in the fourth quarter on strong demand for Ensure and Glucerna brands, including new users entering these categories and existing customers increasing their usage.
Within EPD, fourth-quarter sales grew 6% year over year led by broad-based growth across several countries including India, Russia, and China., which led to overall organic sales growth of 5.2% in key emerging markets.
Within Medical Device, organic sales grew nearly 15.9%, led by strong-digit growth in Structural Heart, Heart Failure, Electrophysiology and Diabetes Care. The Diabetes Care business particularly has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Within Medical Device, in the United States, Abbott expanded Medicare reimbursement coverage for MitraClip for more people to get the benefit of it.
The company also launched its new NeuroSphere Virtual Clinic, a new technology for patients to communicate with physicians and receive new treatment settings remotely. Further, it has received the U.S. FDA approval for its Amplatzer or amulet heart device, which treats people with atrial fibrillation, who are at risk of ischemic stroke. Added to this, Abbott gained CE Mark for Navitor, the company’s latest generation transcatheter aortic valve replacement system.
On the flip side, with a spike in new COVID-19 case count through the fourth quarter, Abbott noted a significant rise in COVID-testing sales, a trend which it expects to continue through the first quarter of 2022. For 2022, the company forecasts COVID testing-related sales of approximately $2.5 billion, with a significant portion of these sales expected to occur in the early part of the year. Going by the company’s projections for the full year, it seems that the company apprehends a decline in COVID testing revenues over the latter part of 2022.
Further, based on current rates, Abbott expects foreign exchange to have an unfavorable impact of approximately 2% on reported sales. Adjusted gross margin is expected to be 58.5% for the year, which considers the projected impact of inflation on certain manufacturing and distribution cost.
Further, Abbott’s Neuromodulation arm reported a 7.5% year-over-year decline on an organic basis in the fourth quarter. Being extremely elective, this business is having a hard time in terms of post-COVID recovery.
Added to this, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has constantly been hampering the company’s performance in the international markets.
Key Picks
A few better-ranked stocks in the broader medical space are Owens & Minor, Inc. OMI, Charles River Laboratories International, Inc. CRL and Molina Healthcare, Inc. MOH, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Owens & Minor has a long-term earnings growth rate of 23.6%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 32.4%, on average.
Owens & Minor has outperformed the industry over the past year. OMI has gained 42.1% against a 15.6% industry decline in the said period.
Charles River has a long-term earnings growth rate of 14%. Charles River surpassed earnings estimates in the trailing four quarters, delivering a surprise of 10.6%, on average.
Charles River has gained 24% versus the industry’s 60% drop over the past year.
Molina Healthcare has a long-term earnings growth rate of 21.1%. Molina Healthcare’s earnings surpassed estimates in two of the trailing four quarters and missed estimates twice, delivering an average surprise of 4%.
Molina Healthcare has gained 35.7% compared with the industry’s 17.7% rise 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 has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report A major point of encouragement, even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter was the strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote In the fourth quarter, within Nutrition, strong growth was led by U.S. pediatric and international adult nutrition. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote In the fourth quarter, within Nutrition, strong growth was led by U.S. pediatric and international adult nutrition. | Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. Abbott Laboratories (ABT): Free Stock Analysis Report A major point of encouragement, even though COVID-19 case rates surged in the United States and other geographies during the fourth quarter was the strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. |
31799.0 | 2022-02-02 00:00:00 UTC | Notable ETF Inflow Detected - IOO, ABT, RTX, CAT | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-ioo-abt-rtx-cat | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global 100 ETF (Symbol: IOO) where we have detected an approximate $164.4 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 50,350,000 to 52,500,000). Among the largest underlying components of IOO, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Raytheon Technologies Corp (Symbol: RTX) is up about 0.1%, and Caterpillar Inc. (Symbol: CAT) is lower by about 1.4%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average:
Looking at the chart above, IOO's low point in its 52 week range is $63.11 per share, with $79.0761 as the 52 week high point — that compares with a last trade of $77.05. 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 IOO, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Raytheon Technologies Corp (Symbol: RTX) is up about 0.1%, and Caterpillar Inc. (Symbol: CAT) is lower by about 1.4%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $63.11 per share, with $79.0761 as the 52 week high point — that compares with a last trade of $77.05. 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 IOO, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Raytheon Technologies Corp (Symbol: RTX) is up about 0.1%, and Caterpillar Inc. (Symbol: CAT) is lower by about 1.4%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $63.11 per share, with $79.0761 as the 52 week high point — that compares with a last trade of $77.05. 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 IOO, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Raytheon Technologies Corp (Symbol: RTX) is up about 0.1%, and Caterpillar Inc. (Symbol: CAT) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global 100 ETF (Symbol: IOO) where we have detected an approximate $164.4 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 50,350,000 to 52,500,000). For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $63.11 per share, with $79.0761 as the 52 week high point — that compares with a last trade of $77.05. | Among the largest underlying components of IOO, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.3%, Raytheon Technologies Corp (Symbol: RTX) is up about 0.1%, and Caterpillar Inc. (Symbol: CAT) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global 100 ETF (Symbol: IOO) where we have detected an approximate $164.4 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 50,350,000 to 52,500,000). For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $63.11 per share, with $79.0761 as the 52 week high point — that compares with a last trade of $77.05. |
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