Unnamed: 0 stringlengths 3 8 | Date stringlengths 23 23 | Article_title stringlengths 1 250 | Stock_symbol stringlengths 1 5 | Url stringlengths 44 135 | Publisher stringclasses 1 value | Author stringclasses 1 value | Article stringlengths 1 343k | Lsa_summary stringlengths 3 53.9k | Luhn_summary stringlengths 1 53.9k | Textrank_summary stringlengths 1 53.9k | Lexrank_summary stringlengths 1 53.9k |
|---|---|---|---|---|---|---|---|---|---|---|---|
31800.0 | 2022-02-02 00:00:00 UTC | What To Expect From Boston Scientific Stock Following Q4 Earnings? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-boston-scientific-stock-following-q4-earnings | nan | nan | 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 Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BSX Return 1% 1% 98%
S&P 500 Return -7% -7% 98%
Trefis MS Portfolio Return -11% -11% 248%
[1] Month-to-date and year-to-date as of 1/31/2022
[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. | 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. 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. | 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. (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. 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. |
31801.0 | 2022-02-01 00:00:00 UTC | Medical Device Stocks Earnings on Feb 2: IDXX, ABC & ALGN | ABT | https://www.nasdaq.com/articles/medical-device-stocks-earnings-on-feb-2%3A-idxx-abc-algn | nan | nan | The Q4 reporting cycle has just begun for the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), and the quarterly performance has been stable so far. As per latest trends, the Medical sector’s earnings growth is expected to be one of the strongest among the seven top-performing sectors.
Per the latest Earnings Preview, 8.9% of the companies in the Medical sector, constituting nearly 29.2% of the sector’s market capitalization, reported earnings till Jan 26. Earnings increased 27% year over year on 12.2% higher revenues. A total of 40% of the companies’ earnings as well as revenues beat the Zacks Consensus Estimate.
Though the scorecard so far reflects stable market condition within the United States, earnings estimates for Q4 indicate a sequential decline. Overall, fourth-quarter earnings for the Medical sector are expected to rise 18.4% on 12.2% sales increase. This compares with third-quarter earnings growth of 29.7% on 15.7% reported revenue growth.
Medical Device Quarterly Synopsis
Integral to the broader Medical sector, Medical Device or Zacks-defined Medical Products companies’ collective business growth is likely to have improved from the last-reported quarter’s pandemic-induced challenges. Rising Omicron cases and the ongoing supply chain constraints, however, are raising apprehensions.
The dynamic nature of the COVID-19 crisis has been transforming the Medical Products industry’s landscape over the past few months. The companies within this space saw a steep sequential decline in terms of their legacy base businesses in the Q3 reporting cycle. However, a significant rise in vaccination drives has helped people gradually get back to pre-pandemic normalcy. This, in turn, has likely resulted in somewhat of a recovery with respect to hospital visits and hospital base businesses in the ongoing reporting cycle, which in turn is expected to boost non-COVID and elective legacy businesses of the Medical sector. Although, companies are witnessing sequential recovery in their base businesses, the overall trend improvement is still below the pre-COVID level.
Despite the recent resurgence in infections (weighing on the hospital settings) that might have impacted elective procedures to an extent, the Biden administration’s push for vaccination mandates and increasing availability of at-home test kits to contain the pandemic are likely to have boosted the diagnostic space.
More specifically, in the fourth quarter, Abbott Laboratories’ ABT underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms.
Further, Abbott’s rapid diagnostics and point of care diagnostics sales both rose organically.
On the other hand, Pacific Biosciences of California, Inc. PACB, popularly known as PacBio (not involved in diagnostics), recently announced preliminary financial results for fourth-quarter 2021, where it expects a solid year-over-year improvement in quarterly revenues.
Despite not being actively involved in COVID-19-related products, PACB launched a COVID-19 surveillance solution, HiFi Viral, which is the company’s first kitted sequencing solution. The company also made noteworthy progress in developing its short-read sequencing platform by applying a new clustering method to facilitate a more robust workflow.
Let’s take a look at four Medical Device players scheduled to announce results on Feb 2.
IDEXX Laboratories, Inc. IDXX: IDEXX’s Companion Animal Group (“CAG”) business is expected to have gained from consistent and healthy organic revenue growth in the fourth quarter, backed by strong performance in CAG Diagnostics recurring business in the United States and internationally. Robust growth in the U.S. clinical business is likely to have contributed to the U.S. CAG Diagnostic's recurring revenue gains. The ezyVet acquisition, completed in June 2021, expanded IDEXX’s cloud-based software capability, and is expected to have fueled growth in the CAG arm. This apart, the company’s veterinary software and diagnostic businesses are also expected to report strong growth for the fourth quarter on gains in PIMS placements and continued strong growth in related recurring service, similar to the prior quarter, with initial benefits coming from the recent ezyVet buyout. (Read more: IDEXX to Report Q4 Earnings: What's in the Cards?)
IDEXX Laboratories, Inc. Price and EPS Surprise
IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.67 per share. Revenues are expected to be $780.3 million.
IDEXX does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — which increases the odds of an earnings beat. IDXX has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AmerisourceBergen Corporation ABC: AmerisourceBergen’s sustained growth in specialty product sales (including COVID-19 treatments), along with overall market growth, at its U.S. Healthcare Solutions segment, may have benefited its fiscal first-quarter 2022 performance. Apart from this, the World Courier unit is likely to have exhibited solid performance in the soon-to-be-reported quarter. During the fiscal fourth quarter of 2021, the business continued to provide high-specialty logistics worldwide despite the challenging global logistics environment while boosting innovation with clinical trials in at-home settings. This trend is likely to have sustained in the fiscal first quarter as well. (Read more: AmerisourceBergen to Post Q1 Earnings: What's in Store?)
AmerisourceBergen Corporation Price and EPS Surprise
AmerisourceBergen Corporation price-eps-surprise | AmerisourceBergen Corporation Quote
The Zacks Consensus Estimate for AmerisourceBergen’s fiscal first-quarter earnings is pegged at $2.59 per share. Revenues are expected to be $59.42 billion.
ABC has an Earnings ESP of -0.91% and a Zacks Rank #3.
Align Technology, Inc. ALGN: Align Technology has been witnessing increased utilization of Invisalign Clear Aligners and continued uptake of iTero scanners since the past few quarters. This momentum is likely to have continued throughout the fourth quarter of 2021 on the heels of reopening practices and growing doctor acceptance of the Align Digital Platform. The company has been registering substantial growth in Invisalign volumes within the teen segment, driven by increased Invisalign utilization and case submissions from Invisalign doctors. We believe this to have full-quarter contribution to fourth-quarter revenues. The growing use of the My Invisalign application and Virtual Care feature is likely to have driven Invisalign adoption further, resulting in improved sales. (Read more: Align Technology to Post Q4 Earnings: What's in Store?)
Align Technology, Inc. Price and EPS Surprise
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
The Zacks Consensus Estimate for Align Technology’s fourth-quarter earnings is pegged at $2.67 per share. Revenues are expected to be $1.02 billion.
ALGN has an Earnings ESP of 0.00% and a Zacks Rank #4.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 +25.3% 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
Align Technology, Inc. (ALGN): Free Stock Analysis Report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
Pacific Biosciences of California, Inc. (PACB): 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. | More specifically, in the fourth quarter, Abbott Laboratories’ ABT underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott Laboratories (ABT): Free Stock Analysis Report | More specifically, in the fourth quarter, Abbott Laboratories’ ABT underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott Laboratories (ABT): Free Stock Analysis Report | More specifically, in the fourth quarter, Abbott Laboratories’ ABT underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott Laboratories (ABT): Free Stock Analysis Report | More specifically, in the fourth quarter, Abbott Laboratories’ ABT underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott Laboratories (ABT): Free Stock Analysis Report |
31802.0 | 2022-01-31 00:00:00 UTC | Top Analyst Reports for Apple, Tesla & Johnson & Johnson | ABT | https://www.nasdaq.com/articles/top-analyst-reports-for-apple-tesla-johnson-johnson | nan | nan | Monday, January 31, 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 Apple Inc. (AAPL), Tesla, Inc. (TSLA), and Johnson & Johnson (JNJ). 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 Apple have outperformed the S&P 500 over the past year (+27.8% vs. +19.3%), with the block-busted December-quarter results expected to help sustain the stock's momentum despite the ongoing market volatility. The Zacks analyst believes that Apple has been benefiting from momentum in the Services business, strong adoption of Apple Pay and growing Apple Music subscriber base.
Apple’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac also witnessed a strong quarter on the back of high demand for the newly redesigned MacBook Pro powered by M1 chip. Apple, however, did not provide revenue guidance for the second quarter due to pandemic-related uncertainties.
(You can read the full research report on Apple here >>>)
Tesla shares have gained +19.3% over the past six months against the Zacks Domestic Automotive industry’s gain of +5.9%. The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla's revenues.
Tesla hit record deliveries and an all-time high gross margin in Q4. Despite the global chip crunch, Tesla’s vehicle deliveries jumped 90% in 2021. TSLA is also poised to benefit from its Shanghai gigafactory. High R&D and SG&A costs along with massive capex plans are likely to hurt Tesla’s margins and cash flows in the quarters ahead.
(You can read the full research report on Tesla here >>>)
Shares of Johnson & Johnson have gained +6.1% in the last three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +4.1%. The Zacks analyst believes that J&J has been making rapid progress with its pipeline and line extensions, with several pivotal data readouts and regulatory milestones expected in the near term.
The Pharma unit has also been performing at above-market levels on the back of Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya as well as the COVID-19 vaccine. Sales in Consumer unit are improving, withstanding external supply constraints. Headwinds like generic competition and pricing pressure, however, continue to stress margins.
(You can read the full research report on Johnson & Johnson here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs
J&J's (JNJ) Three Segments Register Mixed Performance
Featured Reports
Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT)
The Zacks analyst is impressed with Abbott's strong recovery in the organic base business.
Intel (INTC) Rides on Solid Demand in the Data Center Group
Per the Zacks analyst, Intel is benefiting from the increasing demand in the Data Center Group, with strong server recovery in enterprise and government, which bodes well for long-term growth.
PetroChina (PTR) to Benefit from Natural Gas Business
The Zacks analyst believes that PetroChina's natural gas business offers lucrative growth prospects in the coming years as China moves from coal to cleaner fuels for environmental reasons.
Strong Demand to Aid Caterpillar (CAT) Amid Margin Pressures
Per the Zacks analyst, strong demand in its end markets will drive Caterpillar's top-line performance and help negate the impact of inflated input costs and supply chain issues on its margins.
ADP Rides on Strategic Buyouts Amid Technological Challenges
The Zacks analyst likes ADP's buyout strategy to boost its position in the human capital management market.
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Per the Zacks analyst, Dominion's planned investments through 2025 to enhance clean electricity generation will boost its profitability.
Strategic Acquisitions, Reduced Costs Aid Synchrony (SYF)
Per the Zacks analyst, the company's strategic buyouts have helped it enhance digital capabilities and diversify the business. A decline in expenses continues to aid margins.
New Upgrades
Nutrition Segment to Drive Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition unit on growth in human and animal nutrition businesses. The unit expects more than 15% operating profit growth in 2022.
Whirlpool's (WHR) Cost-based Pricing Efforts to Drive Margins
Per the Zacks analyst, Whirlpool is implementing cost-based price increases across every region to protect margins amid inflation.
Dividends, Buybacks & Logistics Unit Aid Knight-Swift (KNX)
The Zacks analyst is impressed with Knight-Swift's efforts to reward its shareholders. Upbeat revenues from the Logistics segment (up more than 100% in 2021) is an added positive.
New Downgrades
F5 (FFIV) Hurt By Elevated Expenses, Supply Chain Disruption
Per the Zacks analyst, while supply-chain disruptions might restrict F5's sales growth, increased investment toward enhancing sales & marketing capabilities are likely to hurt its profitability.
Puma Biotech's Overdependence on Nerlynx a Woe
Per the Zacks analyst, Puma Biotech is highly dependent on its sole marketed drug, Nerlynx, to drive sales. Other than Nerlynx, the company has no other candidates in its pipeline.
Supply Chain Issue Hurts MKS Instruments (MKSI) Prospects
Per the Zacks analyst, MKS Instruments is suffering from supply-chain constraints that will hurt its top-line growth in the near term. Stiff competition and customer concentration are headwinds.
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.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
PetroChina Company Limited (PTR): Free Stock Analysis Report
Tesla, Inc. (TSLA): 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs J&J's (JNJ) Three Segments Register Mixed Performance Featured Reports Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT) The Zacks analyst is impressed with Abbott's strong recovery in the organic base business. (You can read the full research report on Johnson & Johnson here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR). Abbott Laboratories (ABT): Free Stock Analysis Report | (You can read the full research report on Johnson & Johnson here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs J&J's (JNJ) Three Segments Register Mixed Performance Featured Reports Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT) The Zacks analyst is impressed with Abbott's strong recovery in the organic base business. Abbott Laboratories (ABT): Free Stock Analysis Report | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs J&J's (JNJ) Three Segments Register Mixed Performance Featured Reports Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT) The Zacks analyst is impressed with Abbott's strong recovery in the organic base business. (You can read the full research report on Johnson & Johnson here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR). Abbott Laboratories (ABT): Free Stock Analysis Report | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs J&J's (JNJ) Three Segments Register Mixed Performance Featured Reports Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT) The Zacks analyst is impressed with Abbott's strong recovery in the organic base business. (You can read the full research report on Johnson & Johnson here >>>) Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR). Abbott Laboratories (ABT): Free Stock Analysis Report |
31803.0 | 2022-01-31 00:00:00 UTC | EXCLUSIVE-U.S. diabetes deaths top 100,000 for second straight year, federal panel urges new strategy | ABT | https://www.nasdaq.com/articles/exclusive-u.s.-diabetes-deaths-top-100000-for-second-straight-year-federal-panel-urges-new | nan | nan | By Chad Terhune and Robin Respaut
Jan 31 (Reuters) - More than 100,000 Americans died from diabetes in 2021, marking the second consecutive year for that grim milestone and spurring a call for a federal mobilization similar to the fight against HIV/AIDS.
The new figures come as an expert panel urges Congress to overhaul diabetes care and prevention, including recommendations to move beyond a reliance on medical interventions alone. A report released earlier this month calls for far broader policy changes to stem the diabetes epidemic, such as promoting consumption of healthier foods, ensuring paid maternal leave from the workplace, levying taxes on sugary drinks and expanding access to affordable housing, among other areas.
In 2019, diabetes was the seventh-leading cause of death in America and claimed more than 87,000 lives, reflecting a long-running failure to address the illness and leaving many more vulnerable when the COVID-19 pandemic hit, creating new hurdles to accessing care.
Since then, the nation’s toll from diabetes has increased sharply, surpassing 100,000 deaths in each of the last two years and representing a new record-high level, according to a Reuters analysis of provisional death data compiled by the Centers for Disease Control and Prevention (CDC). Diabetes-related deaths surged 17% in 2020 and 15% in 2021 compared to the prepandemic level in 2019. That excluded deaths directly attributed to COVID-19. The CDC concurred with the Reuters analysis and said additional deaths from 2021 are still being tallied.
"The large number of diabetes deaths for a second year in a row is certainly a cause for alarm," said Dr. Paul Hsu, an epidemiologist at UCLA's Fielding School of Public Health. "Type 2 diabetes itself is relatively preventable, so it's even more tragic that so many deaths are occurring."
In a new report, the National Clinical Care Commission created by Congress said that the United States must adopt a more comprehensive approach to prevent more people from developing type 2 diabetes, the most common form, and to help people who are already diagnosed avoid life-threatening complications. About 37 million Americans, or 11% of the population, have diabetes, and one in three Americans will develop the chronic disease in their lifetime if current trends persist, according to the commission.
"Diabetes in the U.S. cannot simply be viewed as a medical or health care problem, but also must be addressed as a societal problem that cuts across many sectors, including food, housing, commerce, transportation and the environment," the commission wrote in its Jan. 5 report to Congress and the U.S. Department of Health and Human Services (HHS).
The federal panel recommended Congress create an Office of National Diabetes Policy that would coordinate efforts across the government and oversee changes outside health policy. It would be separate from HHS and could be similar to the White House Office of National AIDS Policy, according to Dr. William Herman, commission chairman and a professor of internal medicine and epidemiology at the University of Michigan.
"We aren’t going to cure the problem of diabetes in the United States with medical interventions," Herman told Reuters. "The idea is to pull something together across federal agencies, so they are systematically talking to one another."
U.S. Senator Patty Murray, a Democrat from Washington who chairs the Senate health committee, helped create the commission in 2017 and said she is studying the recommendations closely.
"People with diabetes and other chronic illnesses were already facing challenges well before the pandemic hit, and COVID has only made these problems worse," Murray said in a statement to Reuters. "It is absolutely crucial to research and find solutions to better support diabetes patients and get them the care they need."
MORE CASES, WORSE PROGNOSIS
As Reuters reported last year in a series, diabetes represents a major public health failure in the United States. The number of Americans with the disease has exploded in recent decades, and their prognosis has worsened, even though spending on new treatments has soared.
The pandemic has proven especially deadly for people with diabetes. People with poorly controlled diabetes have at least a two-fold greater risk of death from COVID-19, according to the report. And diabetes and its complications are more common in low-income Americans and people of color, longstanding disparities that were further exposed during the pandemic.
Dr. Shari Bolen, a commission member and an associate professor of medicine at Case Western Reserve University and the MetroHealth System in Cleveland, said the staggering number of diabetes deaths is "disheartening but also a call to action."
The federal panel's report marked the first such review on diabetes since 1975. During that time, the prevalence of diabetes among U.S. adults has increased from 5.3% in the late 1970s to 14.3% in 2018, it said. Direct medical costs related to diabetes were $237 billion in 2017, and there was an estimated $90 billion lost to lower productivity in the United States.
High costs for doctor's visits, medications and supplies force many diabetes patients to forgo or delay routine care. Many patients and U.S. lawmakers have expressed outrage at the rising price of insulin, which type 1 diabetes patients must take their entire lives and which is sometimes required to keep type 2 patients’ disease under control. The commission endorsed proposals such as capping insulin price increases to the rate of inflation and government negotiation of drug prices.
Murray and other lawmakers have pushed for a provision in the Biden administration's proposed Build Back Better legislation that would cap the cost of insulin at $35 for many patients.
To further ease financial barriers, the panel recommended that patients’ out-of-pocket costs be waived for other "high-value" treatments, including certain diabetes drugs, continuous glucose monitors, basic supplies and diabetes education.
The commission also highlighted the risks of overtreatment in older adults with type 2 diabetes. Reuters wrote about that risk in November and how a drug industry campaign for an aggressive treatment target led to an epidemic of potentially lethal incidents of low blood sugar, or hypoglycemia. The panel asked federal health officials to track overtreatment among Medicare patients to "reduce the incidence of severe hypoglycemia and improve patient safety."
The commission said the United States should better promote the purchase of fruits and vegetables in food assistance programs and ensure mothers have paid family leave to aid breastfeeding, which can help reduce the risk of diabetes in mothers and is associated with a reduced risk of obesity and diabetes in children. The panel also recommended imposing taxes on sugary drinks that would raise their shelf price by 10% to 20% and using the revenue to expand access to clean drinking water and fund similar programs.
HHS deferred comment to Herman. In a statement, the CDC said the report's recommendations offer a detailed roadmap to "addressing rising health-care costs attributed to diabetes, and reducing racial, ethnic, and income-related disparities in diabetes outcomes."
(Reporting by Chad Terhune and Robin Respaut; Editing by Daniel Wallis)
((Chad.Terhune@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Chad Terhune and Robin Respaut Jan 31 (Reuters) - More than 100,000 Americans died from diabetes in 2021, marking the second consecutive year for that grim milestone and spurring a call for a federal mobilization similar to the fight against HIV/AIDS. A report released earlier this month calls for far broader policy changes to stem the diabetes epidemic, such as promoting consumption of healthier foods, ensuring paid maternal leave from the workplace, levying taxes on sugary drinks and expanding access to affordable housing, among other areas. Dr. Shari Bolen, a commission member and an associate professor of medicine at Case Western Reserve University and the MetroHealth System in Cleveland, said the staggering number of diabetes deaths is "disheartening but also a call to action." | The federal panel recommended Congress create an Office of National Diabetes Policy that would coordinate efforts across the government and oversee changes outside health policy. As Reuters reported last year in a series, diabetes represents a major public health failure in the United States. Many patients and U.S. lawmakers have expressed outrage at the rising price of insulin, which type 1 diabetes patients must take their entire lives and which is sometimes required to keep type 2 patients’ disease under control. | "Diabetes in the U.S. cannot simply be viewed as a medical or health care problem, but also must be addressed as a societal problem that cuts across many sectors, including food, housing, commerce, transportation and the environment," the commission wrote in its Jan. 5 report to Congress and the U.S. Department of Health and Human Services (HHS). To further ease financial barriers, the panel recommended that patients’ out-of-pocket costs be waived for other "high-value" treatments, including certain diabetes drugs, continuous glucose monitors, basic supplies and diabetes education. The commission said the United States should better promote the purchase of fruits and vegetables in food assistance programs and ensure mothers have paid family leave to aid breastfeeding, which can help reduce the risk of diabetes in mothers and is associated with a reduced risk of obesity and diabetes in children. | Since then, the nation’s toll from diabetes has increased sharply, surpassing 100,000 deaths in each of the last two years and representing a new record-high level, according to a Reuters analysis of provisional death data compiled by the Centers for Disease Control and Prevention (CDC). "We aren’t going to cure the problem of diabetes in the United States with medical interventions," Herman told Reuters. Many patients and U.S. lawmakers have expressed outrage at the rising price of insulin, which type 1 diabetes patients must take their entire lives and which is sometimes required to keep type 2 patients’ disease under control. |
31804.0 | 2022-01-31 00:00:00 UTC | Intuitive Surgical Stock Looks Attractive After Its Recent Fall | ABT | https://www.nasdaq.com/articles/intuitive-surgical-stock-looks-attractive-after-its-recent-fall | nan | nan | [Updated: Jan 27, 2022] Intuitive Surgical Q4 Earnings Update
Intuitive Surgical (NASDAQ:ISRG) reported its Q4 results last week, with revenue above, but earnings falling short of our estimates. The company reported revenue of $1.55 billion (up 17% y-o-y), marginally above our forecast of $1.53 billion and the consensus estimate of $1.52 billion. Intuitive Surgical’s EPS of $1.30 was up 9% y-o-y, and it was lower than our forecast of $1.32. However, the company was able to beat the consensus estimate of $1.28. All three segments – Instruments & Accessories, Products, and Services saw revenue growth. Our dashboard on Intuitive Surgical Revenues offers more details on the company’s segments.
Despite an earnings beat (compared to the consensus estimates), ISRG stock has seen a large fall of 10% last week, underperforming the broader markets, with the S&P500 falling 4%. This can be attributed to the company’s guidance for 2022. The company’s management in its quarterlyearnings conference callstated that it expects significant adverse impact on procedures in Q1 2022, owing to the spread of Omicron. The trend may continue beyond Q1 as well. Furthermore, the company will increase its capital expenditures to build new facilities. This outlook did not sit well with the investors, evident from the price drop.
We have also updated our model following the company’s recently announced Q4 results. We have revised our Intuitive Surgical Valuation to be around $345 per share (vs. $362 earlier) which is 30% above the current market price of $264. This represents a P/E multiple of 69x for the company based on our EPS forecast of $5.00 for Intuitive Surgical in 2022. Overall, after the recent fall, ISRG stock looks attractive at its current levels, and investors can use the current dip to achieve long term gains, in our view.
[Updated: Jan 19, 2022] Intuitive Surgical Q4 Earnings Preview
Intuitive Surgical (NASDAQ:ISRG), a fast growing robotic surgical platform company, is scheduled to report its Q4 2021 results on Thursday, January 20. We expect Intuitive Surgical to likely report revenue and earnings slightly above the consensus estimates.
With the rise of the Omicron and Covid-19 cases in the U.S. since December, it is likely that Intuitive Surgical’s sales in certain geographies were adversely impacted. Just like the previous waves, a higher number of cases can overwhelm the healthcare services in certain geographies, resulting in postponement of elective surgeries, and obstruct the revenue growth seen over the recent quarters.
That said, our forecast indicates that Intuitive Surgical’s valuation is around $360 per share, which is 17% above the current market price of $307, implying that ISRG stock has some room for growth, in our view. Our interactive dashboard analysis on Intuitive Surgical Pre-Earnings has additional details.
(1) Revenues expected to be above the consensus estimate
Trefis estimates Intuitive Surgical’s Q4 2021 revenues to be around $1.53 billion, slightly above the $1.52 billion consensus estimate. The ongoing vaccination programs and gradual opening up of economies has resulted in an increase in procedures volume in 2021, and this should augur well for Intuitive Surgical’s top line growth, when compared to the prior year quarter.
However, the recent surge in Covid-19 cases due to the spread of more contagious variants may adversely impact the overall revenue growth for the company in the near term. da Vinci procedure volume grew 20% in Q3 2021, driving total sales 30% higher to $1.40 billion.
Intuitive Surgical expects $1.55 billion sales in Q4 and 19% growth in procedure volume, as per the preliminary results. Sales growth reflect higher instruments & accessories sales, as well as an increase in system placements. Intuitive Surgical placed 385 systems in Q4, compared to 326 systems in the prior year quarter. Our dashboard on Intuitive Surgical Revenues offers more details on the company’s segments.
2) EPS likely to be ahead of consensus estimates
Intuitive Surgical’s Q4 2021 adjusted earnings per share (EPS) is expected to be $1.32 per Trefis analysis, slightly above the consensus estimate of $1.28. Intuitive Surgical’s adjusted net income of $435 million in Q3 2021 reflected a good 30% rise from its $334 million figure in the prior-year quarter.
The rise in earnings was driven by higher revenues and margin expansion. We believe that margins will remain strong going forward, as the procedure volume increases. However, the inflationary pressure may impact the margins in the near term. For the full-year 2022, we expect the adjusted EPS to be higher at $5.70 compared to $3.38 in 2020 and an estimated $5.00 in 2021.
(3) Stock price estimate more than 15% above the current market price
We estimate Intuitive Surgical’s Valuation to be around $361 per share which is 17% above the current market price. This represents a P/E multiple of 72x and our EPS estimate of $5.00 for the company in 2021. Investors have assigned a high trading multiple for ISRG stock, given the strong revenue and earnings growth over the past years, and this trend is expected to continue going forward, as well.
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 Intuitive Surgical stock is likely to move higher in the near term, there are several peers in its sector that look like a better bet than Intuitive Surgical. Check out how Intuitive Surgical 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 Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ISRG Return -26% -26% 275%
S&P 500 Return -9% -9% 94%
Trefis MS Portfolio Return -14% -14% 243%
[1] Month-to-date and year-to-date as of 1/27/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Just like the previous waves, a higher number of cases can overwhelm the healthcare services in certain geographies, resulting in postponement of elective surgeries, and obstruct the revenue growth seen over the recent quarters. The ongoing vaccination programs and gradual opening up of economies has resulted in an increase in procedures volume in 2021, and this should augur well for Intuitive Surgical’s top line growth, when compared to the prior year quarter. Investors have assigned a high trading multiple for ISRG stock, given the strong revenue and earnings growth over the past years, and this trend is expected to continue going forward, as well. | [Updated: Jan 27, 2022] Intuitive Surgical Q4 Earnings Update Intuitive Surgical (NASDAQ:ISRG) reported its Q4 results last week, with revenue above, but earnings falling short of our estimates. [Updated: Jan 19, 2022] Intuitive Surgical Q4 Earnings Preview Intuitive Surgical (NASDAQ:ISRG), a fast growing robotic surgical platform company, is scheduled to report its Q4 2021 results on Thursday, January 20. 2) EPS likely to be ahead of consensus estimates Intuitive Surgical’s Q4 2021 adjusted earnings per share (EPS) is expected to be $1.32 per Trefis analysis, slightly above the consensus estimate of $1.28. | [Updated: Jan 27, 2022] Intuitive Surgical Q4 Earnings Update Intuitive Surgical (NASDAQ:ISRG) reported its Q4 results last week, with revenue above, but earnings falling short of our estimates. [Updated: Jan 19, 2022] Intuitive Surgical Q4 Earnings Preview Intuitive Surgical (NASDAQ:ISRG), a fast growing robotic surgical platform company, is scheduled to report its Q4 2021 results on Thursday, January 20. (1) Revenues expected to be above the consensus estimate Trefis estimates Intuitive Surgical’s Q4 2021 revenues to be around $1.53 billion, slightly above the $1.52 billion consensus estimate. | We expect Intuitive Surgical to likely report revenue and earnings slightly above the consensus estimates. (3) Stock price estimate more than 15% above the current market price We estimate Intuitive Surgical’s Valuation to be around $361 per share which is 17% above the current market price. 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 Intuitive Surgical stock is likely to move higher in the near term, there are several peers in its sector that look like a better bet than Intuitive Surgical. |
31805.0 | 2022-01-29 00:00:00 UTC | What Type Of Shareholders Make Up Abbott Laboratories' (NYSE:ABT) Share Registry? | ABT | https://www.nasdaq.com/articles/what-type-of-shareholders-make-up-abbott-laboratories-nyse%3Aabt-share-registry | nan | nan | The big shareholder groups in Abbott Laboratories (NYSE:ABT) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Abbott Laboratories has a market capitalization of US$215b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Abbott Laboratories.
NYSE:ABT Ownership Breakdown January 29th 2022
What Does The Institutional Ownership Tell Us About Abbott Laboratories?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Abbott Laboratories. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Abbott Laboratories' earnings history below. Of course, the future is what really matters.
NYSE:ABT Earnings and Revenue Growth January 29th 2022
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Abbott Laboratories. The Vanguard Group, Inc. is currently the largest shareholder, with 8.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.5% and 7.8% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Abbott Laboratories
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Abbott Laboratories insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$1.6b of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 22% stake in Abbott Laboratories. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Abbott Laboratories better, we need to consider many other factors. For instance, we've identified 1 warning sign for Abbott Laboratories that you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:ABT Earnings and Revenue Growth January 29th 2022 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. The big shareholder groups in Abbott Laboratories (NYSE:ABT) have power over the company. NYSE:ABT Ownership Breakdown January 29th 2022 What Does The Institutional Ownership Tell Us About Abbott Laboratories? | The big shareholder groups in Abbott Laboratories (NYSE:ABT) have power over the company. NYSE:ABT Ownership Breakdown January 29th 2022 What Does The Institutional Ownership Tell Us About Abbott Laboratories? NYSE:ABT Earnings and Revenue Growth January 29th 2022 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. | NYSE:ABT Ownership Breakdown January 29th 2022 What Does The Institutional Ownership Tell Us About Abbott Laboratories? The big shareholder groups in Abbott Laboratories (NYSE:ABT) have power over the company. NYSE:ABT Earnings and Revenue Growth January 29th 2022 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. | NYSE:ABT Ownership Breakdown January 29th 2022 What Does The Institutional Ownership Tell Us About Abbott Laboratories? The big shareholder groups in Abbott Laboratories (NYSE:ABT) have power over the company. NYSE:ABT Earnings and Revenue Growth January 29th 2022 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. |
31806.0 | 2022-01-28 00:00:00 UTC | Will Abbott Stock Rise After Its Q4 Results? | ABT | https://www.nasdaq.com/articles/will-abbott-stock-rise-after-its-q4-results | nan | nan | Abbott (NYSE:ABT) is scheduled to report its Q4 2021 results on Wednesday, January 26, and we expect it to be below the consensus estimates. A rise in Covid-19 cases in Q4 due to the spread of the Omicron variant likely aided Covid-19 testing demand for the company, bolstering its diagnostics business.
However, the rise in Covid-19 cases may also have adversely impacted the company’s medical devices revenue growth in Q4. Overall, demand for Covid tests is peaking as therapeutic options for Covid-19 improve and as the virus potentially gets milder. The omicron variant itself apparently has a lower rate of severe disease. As such, the company’s diagnostics revenue are expected to decline over the next few quarters.
While we estimate Abbott’s Q4 results to be slightly below the street estimates, our forecast indicates that Abbott’s valuation is $141 per share, which is 12% higher than the current market price of around $126, implying that there is some room for growth in ABT stock. Our interactive dashboard analysis on Abbott’s Pre-Earnings has additional details.
(1) Revenues expected to be slightly below the consensus estimates
Trefis estimates Abbott’s Q4 2021 revenues to be around $10.6 billion, slightly below the $10.7 billion consensus estimate.
The revenue growth will likely be visible for its medical devices, nutrition, and established pharmaceuticals businesses, while we expect a decline in diagnostics segment sales.
While the rise in Omicron cases may have resulted in higher demand for testing, the overall diagnostics sales are expected to be lower than the prior year quarter, which saw a large 111% y-o-y growth to $4.3 billion.
Looking at Q3, the company reported $10.9 billion sales, up 23% y-o-y, driven by strong growth across its segments. Diagnostics sales of $3.9 billion in Q3 reflected a large 48% rise y-o-y.
Our dashboard on Abbott Revenues offers more details on the company’s segments.
2) EPS likely to be below the consensus estimates
Abbott’s Q4 2021 adjusted earnings per share (EPS) is expected to be $1.19 per Trefis analysis, just two cents below the consensus estimate of $1.21.
Abbott’s adjusted net income of $2.5 billion in Q3 2021 reflected a large 43% growth from its $1.8 Bil figure in the prior-year quarter. This can be attributed to higher revenues as well as margin expansion.
The company’s operating expenses, including R&D and SG&A grew at a slower pace compared to the revenue growth.
However, inflationary headwinds and supply chain constraints likely weighed on the company’s net margin expansion in Q4.
For the full-year 2022, we expect the adjusted EPS to be lower at $4.97, compared to an estimated $5.08 in 2021, and $3.67 seen in 2020. This can be attributed to an expected decline in Covid-19 testing sales.
(3) Stock price estimate 12% higher than the current market price
Our Abbott’s Valuation of $141 is 12% above the current market price of around $126.
This represents a P/EBITDA multiple of under 24 for the company based on Abbott EBITDA for the last twelve months.
If Abbott results are below the street estimates, as we anticipate, it may result in a decline in its stock price in the near term, giving investors a better opportunity to enter ABT.
That said, there are near term macro risks. With the U.S. Federal Reserve monetary policy-setting meeting coming up on January 26, there are rising concerns of tighter financial conditions that may weigh on the overall markets at large.
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 ABT stock may be undervalued, 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 Pfizer 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 Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return -12% -12% 224%
S&P 500 Return -8% -8% 96%
Trefis MS Portfolio Return -11% -11% 248%
[1] Month-to-date and year-to-date as of 1/24/2022
[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. | Abbott (NYSE:ABT) is scheduled to report its Q4 2021 results on Wednesday, January 26, and we expect it to be below the consensus estimates. While we estimate Abbott’s Q4 results to be slightly below the street estimates, our forecast indicates that Abbott’s valuation is $141 per share, which is 12% higher than the current market price of around $126, implying that there is some room for growth in ABT stock. If Abbott results are below the street estimates, as we anticipate, it may result in a decline in its stock price in the near term, giving investors a better opportunity to enter ABT. | Abbott (NYSE:ABT) is scheduled to report its Q4 2021 results on Wednesday, January 26, and we expect it to be below the consensus estimates. While we estimate Abbott’s Q4 results to be slightly below the street estimates, our forecast indicates that Abbott’s valuation is $141 per share, which is 12% higher than the current market price of around $126, implying that there is some room for growth in ABT stock. If Abbott results are below the street estimates, as we anticipate, it may result in a decline in its stock price in the near term, giving investors a better opportunity to enter ABT. | While we estimate Abbott’s Q4 results to be slightly below the street estimates, our forecast indicates that Abbott’s valuation is $141 per share, which is 12% higher than the current market price of around $126, implying that there is some room for growth in ABT stock. Total [2] ABT Return -12% -12% 224% S&P 500 Return -8% -8% 96% Trefis MS Portfolio Return -11% -11% 248% [1] Month-to-date and year-to-date as of 1/24/2022 [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. Abbott (NYSE:ABT) is scheduled to report its Q4 2021 results on Wednesday, January 26, and we expect it to be below the consensus estimates. | If Abbott results are below the street estimates, as we anticipate, it may result in a decline in its stock price in the near term, giving investors a better opportunity to enter ABT. Abbott (NYSE:ABT) is scheduled to report its Q4 2021 results on Wednesday, January 26, and we expect it to be below the consensus estimates. While we estimate Abbott’s Q4 results to be slightly below the street estimates, our forecast indicates that Abbott’s valuation is $141 per share, which is 12% higher than the current market price of around $126, implying that there is some room for growth in ABT stock. |
31807.0 | 2022-01-27 00:00:00 UTC | 5 Top Health Care Stocks To Watch Before February 2022 | ABT | https://www.nasdaq.com/articles/5-top-health-care-stocks-to-watch-before-february-2022 | nan | nan | 5 Health Care Stocks For Your February 2022 Watchlist
Without question, the global pandemic brought health care stocks to the minds of many investors in the stock market. Nevertheless, investors should find comfort in knowing that the health care sector will remain relevant with or without the pandemic. After all, humanity continues to face a variety of diseases and health conditions. Thus, we will inevitably need health care services at some point in our lives. And companies that address these needs could stand to benefit.
For instance, companies that produce COVID-19 vaccines such as Johnson & Johnson (NYSE: JNJ) have been performing exceptionally well over the past two years. In its recent fourth-quarter earnings report, Johnson & Johnson saw its earnings per share skyrocket to $1.77, representing an increase of 172.3% year-over-year. The company is optimistic that its COVID-19 vaccine will continue to contribute to its success. So, it should not be surprising that investors are constantly on the lookout for top health care stocks. Here is a list of some of the top names in the stock market now.
Best Health Care Stocks To Watch Before February 2022
Anthem Inc (NYSE: ANTM)
Abbott Laboratories (NYSE: ABT)
Align Technology, Inc (NASDAQ: ALGN)
Thermo Fisher Scientific Inc (NYSE: TMO)
Davita Inc (NYSE: DVA)
Anthem
Anthem is a leading health care company dedicated to improving lives and making healthcare simpler. Through its affiliated companies, Anthem serves more than 117 million people, including more than 45 million within its family of health plans. The company offers a spectrum of network-based managed care plans to individuals, employers, Medicaid, and Medicare markets. ANTM stock has risen more than 45% over the past year.
Yesterday, Anthem announced its fourth-quarter and full-year 2021 earnings. It was yet another strong year for the company as it surpassed many analysts’ estimates on several important metrics. The company’s medical enrollment increased by 2.4 million members year-over-year and 303 thousand members in the fourth quarter to 45.4 million members.
Meanwhile, its adjusted net income was $5.14 per share for the quarter, as compared to $2.54 per share a year ago. Overall, Anthem is confident in its momentum across all its business heading into 2022. With that said, would you consider adding ANTM stock to your watchlist?
[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List
Abbott
Abbott is yet another health care company that reported its fourth-quarter financial update yesterday. For those unaware, this 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. In fact, Abbott recently received clearance from the U.S. Food and Drug Administration for a new cardiac mapping system to treat cardiac arrhythmias.
During its fourth quarter, the company reported sales of $11.5 billion, an increase of 7.2% year-over-year. Out of which, $2.3 billion were COVID-19 testing-related sales. Abbott has distributed more than 1.4 billion COVID-19 tests since the onset of the pandemic.
Many would deem 2021 as an outstanding year for the company as it achieved a full-year 2021 GAAP diluted EPS of $3.94, reflecting a growth of 42.7% compared to the prior year. Also, it warned that the Omicron variant would likely drive up treatment, vaccination, and testing costs in the first quarter. With that in mind, should ABT stock warrant more attention in the stock market right now?
Align
Unlike other entries today, Align Technology is a health care company that serves the dental market. In detail, the company designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners for dentistry. To complement its Invisalign clear aligners, it has an Imaging Systems and CAD/CAM services segment that provides computer-aided manufacturing software for dental laboratories and dental practitioners. In the world we live in today, the company’s products and services are highly relevant among consumers.
With the company reporting its fourth-quarter earnings soon, investors will be on the lookout if it could maintain its strong momentum from previous quarters. The company’s record third-quarter gained significant traction among investors. Its revenue increased by 38.4% year-over-year to a record $1.02 billion.
Meanwhile, its diluted earnings per share were $2.28 as compared to $1.76 in the previous year’s quarter. Also, the wide adoption of its iTero Scanner can be seen through the 50,000 units installed worldwide. Given these considerations, would you be investing in ALGN stock ahead of its earnings release?
[Read More] Stock Market Today: Dow Jones, S&P 500 Surges; Tesla Reports Solid Quarterly Figures
Thermo Fisher
Thermo Fisher develops, manufactures, and sells a range of health care products. It offers its products and services through various brands such as Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services. The company believes that it will make the world a healthier and safer place by equipping its customers and health care providers with the best-in-class health care solutions.
Thermo Fisher started the year by announcing the acquisition of PeproTech for a total cash purchase price of approximately $1.85 billion. Diving into the details, PeproTech is a provider of bioscience reagents that include cytokines and growth factors. These are mostly used in the development and manufacturing of cell and gene therapies.
Hence, it will likely complement Thermo Fisher’s cell culture media products and expand its product offerings and benefits. All things considered, would TMO stock be a top health care stock to watch?
[Read More] Best Artificial Intelligence Stocks To Buy Right Now? 5 To Watch
Davita
To sum up the list, we will be looking at the health care provider, DaVita. The company specializes in kidney care services such as dialysis and related lab services. Its U.S. dialysis business provides kidney dialysis services for patients suffering from chronic kidney failure. In addition, it has wide international dialysis operations that include over 300 outpatient dialysis centers located in ten countries outside of the U.S.
Last week, DaVita along with nearly 1,000 kidney health care providers announced the launch of 11 value-based care programs across the U.S. The goal of the programs is to help slow the progression of chronic kidney diseases and allow more patients with kidney failures to have access to kidney transplants and dialysis.
With the launch of these programs, DaVita expects to more than double the number of patients receiving integrated kidney care in the first performance year alone. So, could this be a boost for DVA stock long term?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Health Care Stocks To Watch Before February 2022 Anthem Inc (NYSE: ANTM) Abbott Laboratories (NYSE: ABT) Align Technology, Inc (NASDAQ: ALGN) Thermo Fisher Scientific Inc (NYSE: TMO) Davita Inc (NYSE: DVA) Anthem Anthem is a leading health care company dedicated to improving lives and making healthcare simpler. With that in mind, should ABT stock warrant more attention in the stock market right now? The company offers a spectrum of network-based managed care plans to individuals, employers, Medicaid, and Medicare markets. | Best Health Care Stocks To Watch Before February 2022 Anthem Inc (NYSE: ANTM) Abbott Laboratories (NYSE: ABT) Align Technology, Inc (NASDAQ: ALGN) Thermo Fisher Scientific Inc (NYSE: TMO) Davita Inc (NYSE: DVA) Anthem Anthem is a leading health care company dedicated to improving lives and making healthcare simpler. With that in mind, should ABT stock warrant more attention in the stock market right now? [Read More] Stock Market Today: Dow Jones, S&P 500 Surges; Tesla Reports Solid Quarterly Figures Thermo Fisher Thermo Fisher develops, manufactures, and sells a range of health care products. | Best Health Care Stocks To Watch Before February 2022 Anthem Inc (NYSE: ANTM) Abbott Laboratories (NYSE: ABT) Align Technology, Inc (NASDAQ: ALGN) Thermo Fisher Scientific Inc (NYSE: TMO) Davita Inc (NYSE: DVA) Anthem Anthem is a leading health care company dedicated to improving lives and making healthcare simpler. With that in mind, should ABT stock warrant more attention in the stock market right now? 5 Health Care Stocks For Your February 2022 Watchlist Without question, the global pandemic brought health care stocks to the minds of many investors in the stock market. | Best Health Care Stocks To Watch Before February 2022 Anthem Inc (NYSE: ANTM) Abbott Laboratories (NYSE: ABT) Align Technology, Inc (NASDAQ: ALGN) Thermo Fisher Scientific Inc (NYSE: TMO) Davita Inc (NYSE: DVA) Anthem Anthem is a leading health care company dedicated to improving lives and making healthcare simpler. With that in mind, should ABT stock warrant more attention in the stock market right now? 5 Health Care Stocks For Your February 2022 Watchlist Without question, the global pandemic brought health care stocks to the minds of many investors in the stock market. |
31808.0 | 2022-01-27 00:00:00 UTC | March 11th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/march-11th-options-now-available-for-abbott-laboratories-abt | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $121.00 strike price has a current bid of $3.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $121.00, but will also collect the premium, putting the cost basis of the shares at $117.40 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $121.92/share today.
Because the $121.00 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 2.98% return on the cash commitment, or 25.25% 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 $121.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $124.00 strike price has a current bid of $3.05. If an investor was to purchase shares of ABT stock at the current price level of $121.92/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $124.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.21% if the stock gets called away at the March 11th 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 $124.00 strike highlighted in red:
Considering the fact that the $124.00 strike represents an approximate 2% 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 2.50% boost of extra return to the investor, or 21.23% 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 $121.92) 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 $124.00 strike highlighted in red: Considering the fact that the $124.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 11th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $124.00 strike highlighted in red: Considering the fact that the $124.00 strike represents an approximate 2% 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 begin trading today, for the March 11th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $124.00 strike highlighted in red: Considering the fact that the $124.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 11th 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 $124.00 strike highlighted in red: Considering the fact that the $124.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 11th contracts and identified one put and one call contract of particular interest. |
31809.0 | 2022-01-26 00:00:00 UTC | Abbott Laboratories (ABT) Q4 2021 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q4-2021-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q4 2021 Earnings Call
Jan 26, 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 fourth quarter 2021earnings conference call All participants will be able to listen only until the question-and-answer portion of this call. [Operator instructions] With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott.
It cannot be recorded or rebroadcast without Abbott's expressed written permission. I would now like to introduce Mr. Scott Leinenweber, vice president, investor relations, licensing and acquisition.
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 1-A, Risk Factors, to our annual report on Form 10-K for the year ended December 31, 2020. 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.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
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. 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 another strong quarter and highly successful year for Abbott. For the year, we reported organic sales growth of 23% and ongoing earnings per share of $5.21, which reflects more than 40% growth compared to the prior year, and exceeded the original EPS guidance we set last January.
These last couple of years have truly been unique on many levels. The challenge throughout the pandemic has been the sheer breadth of its impacts, and for Abbott, it's reinforced the value of our diversified business model, which is uniquely balanced across multiple dimensions, including our business mix, customer, and peer types, innovation cycles across our businesses, and geographic footprint. We've always said that our business model allows us more opportunities to win during the good times, and makes us more resilient during the tough times. Never has this been put to the test more so than over the past couple of years.
It's been tested by a major global pandemic. It was proven to be highly resilient, delivering strong growth and returns for our shareholders. COVID testing has been a big part of this, of course. We delivered a billion test last year and approximately 300 million in the fourth quarter alone, and continue to play a significant role in the world's response to the pandemic.
But just as importantly, we demonstrated Abbott's strength across our company, delivering strong growth across our businesses while we continue to expand our portfolio with innovations that will fuel our success for years to come regardless of the pandemic situation. Turning to our outlook for 2022, as we announced this morning, we forecast ongoing earnings per share of at least $4.70 cents, which reflects nearly 50% growth compared to our pre-pandemic baseline in 2019. We forecast organic sales growth for our base business, excluding COVID tests, in the high single digits. And our guidance includes an initial COVID testing sales forecast of $2.5 billion.
We're seeing very strong demand for testing to start the year with the recent emergence of the omicron variant. And as you know, forecasting COVID testing demand for more than a few months at a time has been challenging. Therefore, our initial forecasts compromise a sales that we expect to occur in the early part of the year, and we'll update this forecast one quarter at a time over the remainder of the year. I'll now provide more details on our 2021 results before turning the call over to Bob.
And I'll start with nutrition, where sales grew nearly 6% in the fourth quarter and over 7.5% for the year. Adult nutrition delivered 9% growth for the quarter and double-digit growth for the year, led once again by Ensure, our market leading, complete and balanced nutrition brand, and Glucerna, our leading diabetes nutrition brand. In pediatric nutrition, U.S. sales growth of more than 10% for the year was led by strong growth of Pedialyte, our oral rehydration brand, and market share gains for Similac, our market-leading infant formula brand.
During the past year, we continue to expand our nutrition portfolio with several new product and line extensions, including the launch of Similac 360 Total Care in the U.S. and continued global expansion of our Pediasure, Glucerna and Ensure brands with line extensions such as plant-based, lower sugar, and high-protein products. Turning to medical devices. Our continued recovery from the impacts of the pandemic and strong growth in diabetes care drove sales growth of 16% in the quarter and nearly 20% for the year.
In diabetes care, sales growth of nearly 30% for both the fourth quarter and full year was led by FreeStyle Libre, our market-leading continuous glucose monitoring system. Libre's sales grew over 35%, which translates to year-over-year growth of $1 billion to a total of $3.7 billion in 2021. This past year, we continue to strengthen our medical device portfolio with several pipeline advancements and launches. In the U.S., expanded Medicare reimbursement coverage for MitraClip will make it possible for more people to benefit from this life-changing technology.
We launch new NeuroSphere Virtual Clinic, a first of its kind technology that lets patients communicate with physicians and receive new treatment settings remotely. We received U.S. FDA approval for our Amplatzer or amulet heart device, which treats people with atrial fibrillation, who are who are at risk of ischemic stroke. And we received U.S.
FDA approval of our [Inaudible] heart valve replacement system for people with severe aortic stenosis, and CE Mark for Navitor, our latest generation transcatheter aortic valve replacement system. Moving to established pharmaceuticals, or EPD, where sales increased nearly 6% in the fourth quarter and over 10% for the full year. Strong performance was broad based across several countries, led by India, Russia, and China. EPD has performed well throughout the pandemic, fueled by strong execution and a steady flow of new product introductions in our core therapeutic areas.
I'll wrap up with diagnostics, where COVID testing was a big part of the story, but far from all of it. COVID testing sales were $2.3 billion in the fourth quarter with rapid testing platforms, including BinaxNOW in the U.S., Panbio internationally, and ID NOW globally, compromising approximately 90% of those sales. Demand for testing continues to remain strong, and we remain committed to help ensure broad access. Since the start of the pandemic, we've invested significantly to build both U.S.
and international manufacturing supply chains, and we're working to expand our capacity further to meet global demand. Excluding COVID testing sales, worldwide diagnostic sales grew over 8% in the fourth quarter and 13% for the year. We continue to roll out Alinity, our innovative suite of diagnostic instruments and expand test menus across our platforms. During the year, we placed more than 3,000 Alinity instruments for immunoassay and clinical chemistry testing, with approximately two-thirds of those placements coming from share capture.
And in molecular diagnostics, excluding COVID testing, sales grew double digits in both U.S. and internationally as we continue the rollout of our Alinity instrument for molecular testing. So in summary, 2021 was another highly successful year for Abbott. We continue to play a vital role in combating COVID-19 as a result of our massive scale we built in rapid testing capacity.
All four of our major businesses delivered strong performance this past year and are well positioned for continued success going forward. And we continue to strengthen our overall strategic position with a steady cadence of important new products from our pipeline and 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 fourth quarter increased 7.7% on an organic basis, which was led by strong performance across all of our businesses, along with global COVID testing-related sales of $2.3 billion in the quarter.
Excluding COVID testing sales, organic sales growth was 10.3% versus the fourth quarter of 2020 and 10.8% compared to our pre-pandemic baseline in the fourth quarter of 2019. Foreign exchange had an unfavorable year-over-year impact of 0.5% on fourth quarter sales, resulting in total reported sales growth of 7.2% in the quarter. Regarding other aspects of the P&L for the quarter, the adjusted gross margin ratio was 57.7% of sales, adjusted R&D investment was 6.3% of sales and adjusted SG&A expense was 26.2% of sales. Our fourth quarter adjusted tax rate was 16.9%, which reflects an adjustment to align our tax rate for the first three quarters of last year with our revised full year effective tax rate of 15.5%, which is modestly higher than the estimate we provided in October due to a shift in the mix of our business and geographic income.
Turning to our outlook for the full year 2022. Today, we issued guidance for the full year adjusted earnings per share of at least $4.7. For the year, we forecast organic sales growth, excluding the impact of COVID testing-related sales, to be in the high single digits. We forecast 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.
We'll update our COVID testing sales forecast one quarter at a time throughout the year. Based on current rates, we would expect exchange to have an unfavorable impact of approximately 2% on our reported sales. We forecast an adjusted gross margin ratio of approximately 58.5% of sales for the year, which reflects our forecasted business mix, underlying gross margin improvement initiatives across our businesses, along with the impact of inflation on certain manufacturing and distribution cost. For the year, we forecast R&D investment of around $2.7 billion and SG&A expense of around $10.8 billion, which reflects investments to support several ongoing and upcoming new product launches and strategic growth initiatives.
We forecast net interest expense of around $500 million, non-operating income of around $375 million, and a full year adjusted tax rate of approximately 14.5% for the year. Turning to our outlook for the first quarter. We forecast adjusted earnings per share of at least $1.50 and organic sales growth, excluding the impact of COVID testing-related sales, to be in the high single digits. Lastly, at current rates, we would expect exchange to have an unfavorable impact of approximately 3% on our first quarter reported sales.
With that, we'll now open the call for questions.
Questions & Answers:
Operator
[Operator instructions] And our first question comes from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen -- Wells Fargo -- Analyst
Good morning. Thanks for taking the question and congratulations on a really strong finish to a strong year. Robert, can you talk about how you thought about the 2022 guidance? Why is $2.5 billion for COVID testing the right starting point? And how are you thinking about reinvesting the upside from COVID testing, implied in the 470 -- $4.70 EPS guidance? And I had one follow up. Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sure, Larry. I'd say the beginning of the year, you're coming into the year and you're trying to find the right balance, right, you're trying to find the right balance on your long-term growth opportunities that Abbott has, which I think are pretty unique, and balancing that with, I'd say, probably some uncertainty. And I'd say every year there's a little bit of uncertainty the beginning of of the year. But I'd say this year is probably a little bit more than usual.
So you're trying to find that balance and I'm pretty sure we'll talk about some of the long-term growth opportunities. But if you think about some of the challenges in forecasting right now, and there's a lot of dynamics that are existing from a macroeconomic standpoint that are out there that, quite frankly, aren't necessarily unique to Abbott, but that are out there, whether it's the pandemic and the duration of the current surge, potential new waves and how long they will last, staffing shortages that we've seen for the hospital-based kind of part of our business, quite frankly, patients willingness to go in, to do a procedure during the surges. So that's probably one kind of big bucket to look at. Another area, obviously, on the macro side is supply chain and inflation challenges that every company is facing and obviously kind of currency headwinds.
So I'd say those are all challenges that are facing a lot of medtech companies, companies and healthcare and quite frankly, a lot of companies outside of our sector. Probably what's a little bit different for us, another fact to consider in our forecast is just COVID testing and and how is that going to play out throughout the rest of the year, given the magnitude of what the testing could look like between it completely going away or it staying or increasing at this level. So factoring all those kind of elements over here, I think this was the right starting point for us just to start off like that. And I think this initial full year guidance is contemplating not only some of those challenges, but also contemplating on the flip side, a very strong underlying kind of Abbott-based business, as I said in my comments, high single digit growth.
So there are definitely acceleration in a lot of our portfolio versus where we were pre-pandemic. We've got investment in this guidance to be able to support not only all of our launches that we engaged in toward the end of last year. Beginning of this year, we've got launches and opportunities. And that's all been contemplated and fully funded.
And the initial COVID testing forecast of 2.5 -- I don't expect COVID to simply go to zero starting the second quarter. But the challenge of forecasting the magnitude, I felt, is the right way to -- and quite frankly, I talked about this in October. We will be updating it as we go along. We've got a lot -- we built a lot of capacity.
You've seen that over this, like, last year and a half, especially in rapid testing. So we have that capacity and we will be updating it. So if we had we had typically done our $0.10 range guide here, Larry, our consensus -- we would have been right in the middle of where you guys are at. But I didn't want to cap the upside, which is why we're at the least $4.70.
So if I kind of sum it up, I look at our guidance now and I say, OK, we've contemplated as much as we can of some of the challenges that a lot of companies are facing, whether it's supply chain, duration of pandemic, medical device procedures, etc. I've fully funded our growth platforms that we're very excited about. And there's potential for the upside of more COVID testing because I don't think it goes away, which would then fall through at a good click and provide that upside. So I think that's probably the best way to summarize.
It's de-risk, it's fully funded for long-term growth opportunities, and we've got potential upside as we go into the remainder of the year.
Larry Biegelsen -- Wells Fargo -- Analyst
That's super helpful. Robert, just for my follow up, Libre had another remarkable year. How are you thinking about Libre growth in 2022 and what are the drivers of that growth this year? Thanks for taking the questions.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, yeah, I mean, you saw it. It continues to grow at a very strong rate and a very large base, 35 -- over 35% this year, 4 million users now. We've initiated geographic expansion of Libre 3, and that'll start in the next couple of weeks, moving out of Germany into U.K.
and France. Those are probably kind of key markets that we're expanding over there for the next couple of weeks. And if I think about 2022, Larry, I mean, I'm looking at here strong double-digit growth. We've been growing about a billion dollars of incremental sales per year, and I expect I expect that growth to be at least in that range.
So that probably translates into 25% growth. I think the biggest driver for us is, quite frankly, not just this year, but as we look forward, it's still very under-penetrated range. And I'm talking about being a leader in terms of patients with 4 million users, where we've talked about numbers between 60 million, 70 million, 80 million people around the world that could be benefiting from continuous glucose monitoring and sensor-based monitoring. So I'd say biggest opportunities we've got continue to be international.
The CGM penetration internationally is still much lower than in the U.S. and then moving into -- more aggressively into patient segments that historically have been under penetrated, kind of look at the Type 2s on single-injection therapy. So we've got great opportunity there. U.S., I would say, is another good opportunity for us.
We have very good year this year, close to like 60% growth. I think that's the number. Now over a million users. We've made the investments that we need to make last year in terms of sales force and advertising, and that's paying dividends in terms of new users.
We continue to have a high share of new user growth. So as a combined what we're doing internationally, expansion of Libre 3, continued growth in the U.S., expanding into pretty under-penetrated population of Type 2s, and I think we've still got -- like I've kind of said, still in the early innings of the Libre story here.
Larry Biegelsen -- Wells Fargo -- Analyst
Thanks so much, Robert.
Operator
Thank you. Our next question comes from Robbie Marcus from JPMorgan. Your line is open.
Robbie Marcus -- J.P. Morgan -- Analyst
Oh, great. And I'll also add my congratulations on a nice quarter. Two for me. I'll ask them both up front.
First question, maybe you could spend a minute on cadence throughout the year. First quarter has a lot more COVID testing sales than we had thought, but also implies somewhat of a different cadence than we had been thinking. So just top and bottom line, what are the impacts there? How's inflation, FX hitting throughout? And then second question, it's probably tied into it. If you could just touch on what you're seeing in current device and procedure trends as we sit here today and how you're thinking about the evolution of that over the course of '22.
Thanks.
Robert Ford -- Chairman and Chief Executive Officer
Well, your first questions got multiple sub questions there. Robbie. So let me take the first one and then I'll go back -- so I'm going to take the second one and then I'll go back to your first one because it does contemplate some of the challenges on inflation that might be worthwhile spending some time. Just talk a little bit about also.
But in terms of demand dynamics, especially in the more hospital-based business here, Robbie, we saw a real nice trajectory recovery in the beginning of Q4. We were -- and I always like to compare versus 2019, at least for 2021, to avoid some of the comp pieces. So we were improving our growth rates in our probably more cardio-like businesses. Let's use that as a proxy to be in that kind of 3% to 4% range and improving as the quarter has progressed.
And Q4 was looking like, again, a continuation of that progression until probably December, where we saw a pretty big drop because of omicron in most of the device -- of our device businesses. Probably only two that we didn't see that drop was heart failure. That was probably up in the mid-20s in December versus 2019 and obviously Libre, which was up probably like in the 70s percent versus 2019. So we did have an impact in these parts of the business again, is probably driven by omicron impact of not only staffing, I'd say, but also even just patients basically postponing a little bit and not wanting to go to hospital.
And I think that's continued a little bit here into January. I'd say geographically seeing a little bit more of that impact in the U.S. compared to other geographies, at least for us. Europe and Asia, as have held up a little bit better than the U.S.
And then we've contemplated as best as we can what that recovery curve is going to look like. We'll see some pressure of that, I'd say, probably January, February going into March. We expect it to get better and then Q2 will be better. And if you look at the second half of this year, we expect to -- for these businesses to be more at their normal run rate.
So I think I'd say that's what we're seeing and that's kind of how we're forecasting the rest of the year. Actually I was pretty pleased that some of the new product launches that we had during the quarter, we were always cautious about OK do we launch the product during -- in this environment. And they did pretty well both in Europe and in the U.S., too. So I think that speaks well about still the need for the products and the technologies and the innovation.
So the consumer side of -- the consumer-facing part of our business, I mentioned Libre, but you saw it in nutrition and EPD. They've done pretty well. The pandemic, they did pretty well in Q4. So I didn't necessarily see the impact of omicron to those businesses, like we didn't see it in delta either.
So. So we would expect those businesses to be pretty resilient. And the key driver there, as I talk a little bit about Libre, is just kind of innovation. On your first question regarding cadence, I mean, part of it is this combination that I said recovering device and core testing procedures that we see going into Q2 and into Q3 and Q4.
And then, as we have more, let's say, call it, confidence and precision regarding our COVID testing, we'll see that kind of flow through and then we'll be able to update you. I think when we're here in April, we'll have a better sense of what Q2 is going to going to look like, not only for the U.S., but also internationally. And as I said, having that ability to then kind of update the forecast with that COVID number, we will -- we'll let it flow through. So I think you also had a question about inflation.
I mean, that is another area that we're working on and focused on and probably ask Bob to give you some color on that.
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
OK. Yeah, Robbie, you actually kind of asked about currency and inflation. I'll cover currency first. I mean, we saw U.S.
dollar kind of strengthen since the middle of last year, in particular over the last few months. And so as I said in my opening remarks, at the current rate, that's about 2% headwind on the top line for the year. We're going to see that a greater impact in the first quarter, around 3% in kind of -- and in the second quarter, and you don't get the impact would be a little bit less severe as we kind of go through the course of the year into the back half of the year. In terms of inflation, inflation of supply chain challenges are really kind of linked together as supply chains have not been able to catch up to the strong demand that's out there.
And so we're seeing some impacts here, certainly not unique to us or our industry. And we're seeing those impacts across transportation, cost, manufacturing inputs, commodities, etc. From a pricing standpoint, we have the flexibility to just price a bit in some areas of the business, and we're doing so. That's really more in the consumer-facing businesses like nutrition.
In other areas of the business, that flexibility doesn't exist. So I'd say in aggregate kind of across those headwinds, we're seeing impacts on gross margin of roughly half a billion dollars and that's contemplated in our guidance. And I think as supply chains start to normalize over time, we would expect to see improving cost in some areas. For example, in commodities for nutrition.
Those costs have kind of moved up and down historically over time. But currently our kind of outlook doesn't assume any significant changes kind of versus the current dynamics that we're seeing in the market.
Robbie Marcus -- J.P. Morgan -- Analyst
Great. Thanks for all the answers.
Operator
Thank you. Our next question comes from Vijay Kumar from Evercore ISI. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Thanks for taking my question. Good morning, Robert. I've got two questions. Maybe my first one was on the new product side.
Robert, you made some comments on perhaps a consumer kind of product [Inaudible]. I'm just curious, how do you see the opportunity here? It's slightly different, perhaps from our perspective. But for Abbott, I mean, you guys have played in consumer markets. How big is this opportunity? Perhaps some sense for when U.S.
launch, timing could be and should we expect more analysts, right? I thank you, guys. I had four analysts at CBS, but I'm curious, is there are there other products expected to come down the pipeline?
Robert Ford -- Chairman and Chief Executive Officer
Sure, Vijay. So we made a decision to put a stake in the ground here and start talking about what we've always believed to be another opportunity, a sizable opportunity for Abbott. And that was really using the Libre platform that we had developed to look into other analytes, other areas. I talked about this recently.
Quite frankly, we talked about it several years ago also. And you referenced some of the some of the analytes that we have been working on ketones, lactate, alcohol, glucose for not people with non-diabetes, and those are big opportunities. As I've said, the model is a little bit different. It is probably a much larger TAM in terms of people, but the usage of the sensors is probably more intermittent than you would kind of get on a person, for example, diabetes today, where we're very clear whether you're a Type I on a pump or a Type I injector or Type II.
Like we know through the data we've covered here in terms of the usage patterns. So the use is kind of a little bit different, but the sample size is significant. If you think about like a keto sensor and the opportunity to be able to provide real time feedback for somebody who's trying to manage their very keto diet, I think there's a large amount of people, large consumer pool that whether it's more disciplined keto diets or kind of more on an on/off basis, there's a very large amount of people. And we'll have to just think about how to market it a little bit differently.
And our go-to-market strategy will be a little bit differently. But I'd say we've always seen this as a big opportunity and we funded it. We have a separate team that is obviously leveraging the platform, but they're managed differently. They have a completely different organizational structure, and they're just focused on developing not only the technical side of the analytes, but obviously doing all the market development work.
So we're really, really in the early innings stages here. But I think the numbers can be pretty significant and pretty large and why not? Over a good period of time, maybe it's even bigger than diabetes once you lined these up. The first phase of analytes, we announced at CES that this was our intention that we were designing these. Timing, we expect to launch our first products outside of the United States toward the second half of this year.
In the United States, we'll obviously be having the conversations with the agency in terms of how that regulatory path is going to shape up. Probably a little bit too early right now to talk about that. But we're very excited about this opportunity because we've seen this opportunity many, many years back and made the moves. On your question about other analytes, yeah, I would say part one or Phase I, I would say is what I would call these more consumer-facing more consumer-driven opportunities.
But we are looking at other analytes that would probably have, I would say, more of a medical clinical application, whether it's in the hospital or for discharges, etc. So there is opportunity there that we're also working on. So I think it's very large and we're just in the beginning right now in terms of market creation.
Vijay Kumar -- Evercore ISI -- Analyst
That's helpful, Robert, and maybe my second question in the balance sheet, I think you guys probably have over $40 billion of capacity right now, conservatively. With valuations coming down, what kind of opportunities do you see? And one of the things that always strikes me is Abbott is very large and diagnostics, number one and number two in most of your end markets. If you look at diagnostics, liquid biopsy, cancer screening, diagnostics, that's a massive opportunity but I don't see Abbott having a stake in the ground in that area. Is that an area that would interest Abbott?
Robert Ford -- Chairman and Chief Executive Officer
Well, I answer that specifically, I'm not going to necessarily show all my cards here, but I guess what I will say regarding the M&A question here is, yeah, there's -- there seems to be some dislocation now, and I think this could make sense. If there's anything out there that looks strategic for us and that makes financial sense, then yeah, we'll be -- we've got plenty of capacity, as you said. We've generated a lot of strong cash flow and, quite frankly, it's been a meaningful step up in that cash flow over the last couple of year and a half or so. So, yeah, strategically financial fits, as I've always said, we're in a great position now to be able to look at that.
Device and diagnostics, I will say, are the areas that we're looking at more carefully. Scott's team is always looking at everything, but he's got a more special lens here in devices and diagnostics. The areas that you referenced are areas that are in the list of things that we would be interested in looking at. Tuck-in and medium-sized deals probably are more likely if, again, if those situations present themselves.
But again, we're always looking at everything. So I would say, yeah, nothing has changed regarding what I've said about M&A. If it's strategic and it makes financial sense and can, deliver value for our shareholders, we are now in a great position as a result of all the efforts that we've had, quite frankly, on cash flow conversion and now with kind of COVID cash, that also helps.
Vijay Kumar -- Evercore ISI -- Analyst
Understood. Thank you, guys.
Operator
Thank you. Our next question comes from Josh Jennings from Cowen. Your line is open.
Josh Jennings -- Cowen and Company -- Analyst
Hey, good morning, gentlemen, thanks for taking the questions. Rob, just first wanted to ask a question on 2022 guidance and understand you don't want to put a top end of the range there and cap the upside. Clearly, there's potential upside with the increased COVID testing outside of that $2.5 billion revenue stream that you're expecting the early part of the year. But just in a scenario where COVID testing does fall off and that guidance for the revenue from that franchise turns into reality, can you just refresh this on some of the other levers you have that you can pull to drive EPS growth? I think last year in June, when you -- when COVID testing fell off, your team talked about share repurchase, accretive M&A, some cost reductions.
But just wanted to get a refresh there and then see if you could help us think through those levers. And then second question is just on the diabetes franchise, and clearly, Libre has a long runway, you're looking over the years talked about one of your answers about the consumer opportunity. But how should we be thinking about the diabetes franchise and Abbott's desire to kind of leverage the positioning there with other products, either insulin delivery devices or other portfolio ads as we move into 2022 and beyond? Thanks for taking the questions.
Robert Ford -- Chairman and Chief Executive Officer
Sure. On your first one, I mean, like I said, we de-risk, we fully funded and we've got potential upside for the COVID testing. If COVID testing in that scenario, which I think is highly likely, kind of falls off, then we'll have to obviously look at kind of the investments we're making and kind of make the adjustments that we have to make, especially as we start to move into 2023. I don't think that is the case.
I think that COVID testing is going to be still around. I think omicron has catalyzed a pretty significant shift in global rapid testing and screening. And the question here is just going to be how does it evolve over the next couple of nine months, 12 months here. So but that being said, to your question on that scenario, you'd have to make adjustments, as I've said we would.
But right now, I'm managing. We're managing the enterprise as a whole and we're obviously got profits that are coming from COVID that we're reinvesting into the business. If that turns out to not be the case this year, then -- like I said, we're fully funded on our growth platforms. And then we'd have to kind of make adjustments or look at that investment level as we go into 2023.
Buybacks is another opportunity that we've got. We've got a lot of flexibility here also. Last year, we bought I think it was about $2 billion in 2021. And I anticipate being active in the market again this year since we do have that capacity.
So and your second question, I think, was on diabetes, right? And growth opportunities, is that -- could you just --"
Josh Jennings -- Cowen and Company -- Analyst
All right. Absolutely. Just thinking about any anything you can share just in terms of internal development programs outside of advancing Libre in diabetes and on the consumer channel on the sensing side, any other products within the diabetes device realm that you could add to the portfolio or we should be thinking about the diabetes franchise. Just sticking, sticking with the playbook that you have, it's been so successful the last number of years and has as a long runway.
Thanks.
Robert Ford -- Chairman and Chief Executive Officer
Got it. Got it. So listen, yeah, we're in the beginning here. There's still a lot of opportunity, still a lot of under penetration, whether it's internationally or Type IIs.
As I've said, the key aspect here is to ensure your pipeline is relevant and is advancing. We've launched Libre 3 in Europe and will be expanding that launch now globally. I expect it to be able to bring Libre 3 here into the U.S. I won't necessarily get into the specifics, but I figured you guys would eventually ask this.
We have filed Libre 3 here in the U.S. as [Inaudible] to the FDA last year. I won't get into specifics about timing there, but it's -- the review process happens in the same agency that reviews diagnostic tests. So as you can imagine, there's a lot of busy work going on with that area of the agency.
So we've obviously seen our data that we've submitted to the agency, we've obviously seen now data from a competitive system, and I'd say we're feeling pretty good about where we stand, so. So I think that's a key component there as they expand the portfolio. I've talked about Libre 4, not necessarily what exactly is that, but we do have that as an active program. Connecting to insulin delivery systems is also part of that strategy.
And we've got active programs with all pump suppliers and pen delivery systems also to be able to connect Libre on to that. So I think we'll stay focused on making the best sensor, sticking to our strategy of consumer friendly, showing outcomes, price for access and affordability and continue to innovate with our sensor platform and then look at opportunities to use those sensors to not only expand into other platforms, but also to connect to other devices.
Josh Jennings -- Cowen and Company -- Analyst
Great. Thanks a lot.
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 for taking the questions. I have a big picture one and a specific one. Big picture, one of the themes of your keynote address at CES was the marriage of tech and medtech. And I'm curious if you could highlight how you sort of take that lens in terms of your product pipeline.
And then my specific question has to do with your structural heart franchise. Portico is out in the market, amulet is out in the market, and I would love just a little bit of an update on how those products are doing. Thanks.
Robert Ford -- Chairman and Chief Executive Officer
Sure. So, yeah, I've talked about this convergence. And quite frankly, we've seen this convergence occurring probably when we are doing the St. Jude acquisition and integration.
And we started to set a lot of our portfolios to be able to connect to whether it's consumer electronics or clouds or other elements like that to ultimately be able to empower the consumer and just provide better solutions to ultimately improve outcomes. So I think you saw the device portfolio has been going down that path for quite some time now as very pleasantly -- very pleasant to see that start to look not only the cardiovascular side, also in the neuromodulation side. Like I said in my opening comments on our virtual clinic, I think that's got an opportunity to change the business model of that business and at the same time provide better outcomes for not only DBS, but also spinal cord stimulation, too. So, you've seen that in devices.
We then started to see diagnostics and you saw a little bit of that thinking as we develop Binax. We wanted to make sure that we were kind of integrating not just our expertise in developing an accurate test to be able to detect COVID, but also integrate it into an app where you can kind of have your pass in your phone, etc., and working with partners to be able to kind of do that, so. So I think you're seeing it across all of the portfolio. In our pharma business, we're using digital tools to be able to ensure that patients are taking their medications.
So that's pretty, I'd say, a strategic element going across all of our businesses and how we're thinking about it, so. I wouldn't say it's just one part of the portfolio, but I think it's a convergence that is happening and we want to be leaders in that convergence across all of our portfolio. Regarding your question on structural heart, so I think you mentioned portico and amulet. So listen amulets, we received approval in Q3 last year, moved quickly to launch.
I'd say initial feedback has been very strong, especially in the areas of superior closure rates, the need to be able to need to be able to leave the hospital without blood thinners. And also we've heard a lot of broader sizes to better fit more anatomies and give them more of that flexibility. So that's done very well. As part of the launch, we wanted to make sure that we had good proctor and good peer-to-peer proctoring.
So obviously that that became a little bit of a challenge in November and December after Thanksgiving and into December. But I think despite all of that, I think we've done pretty well and I think we did about 500 procedures last year, mostly happening -- mostly in Q4. And if you look at what we did in December, that would put us at about a 10% market share, which is I think is pretty good. Obviously, we're not satisfied with that, given what we know we can do what we've done in Europe, but I think it's very much aligned to where we want it to be regarding the end of the year and as we enter into 2022.
So I think that's going very well. Portico, we're -- as I've said, this is an important area for structural heart. We know that there are two entrenched competitors in there. We think we've got great technology also, and we're going about it very systematically, very methodically to build our position.
We launched our generation two product in Europe, our Navitor product, and again, that's received great feedback also. And there's pretty competitive clinical profile here for high risk surgery patients. So we're making the investments that we know we need to make. To be able to expand our position here, so I feel good about our structural heart portfolio.
I've talked about how this is a big opportunity for us. We've made the investments and I think we're in a great position as we go into 2022.
Joanne Wuensch -- Citi -- Analyst
Thank you.
Operator
Thank you. Our next question comes from Matt Taylor from UBS. Your line is open.
Matt Taylor -- UBS -- Analyst
Good morning, thanks for taking the question. So I just had two margin questions I wanted to ask. The first one, I guess I'll frame it as if we take the 150 from Q1, that implies about $1.6 to $1.7 for the remaining three quarters of the year. So is that how we should view your base business earnings power or are you still spending more through the year from some of the COVID testing profits or being conservative? Would love just any additional color on the base business earnings power ex testing?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Yeah, Matt, I'll take that. This is Bob. So we don't really think about earnings or at the bottom line base versus COVID. We manage the whole company.
Obviously the first quarter is benefiting from the majority of the global sales that we've got forecasted at this point in time, kind of our starting point. But we funded our growth throughout the rest of the quarter. So what you have is COVID testing, initial COVID testing sales in that for first quarter, but our investments throughout the entire year. And so as we update our COVID testing each quarter, kind of, as Robert Robert talked about, that will fall through certainly at a higher level than our overall margin profile.
Robert Ford -- Chairman and Chief Executive Officer
I'd just add on to that, Matt, we absolutely expect there to be COVID testing after the first quarter. The question is at what level? And as I said in the beginning, to be able to kind of forecast a full year out like that, given the magnitude of how this can shift, it's just prudent to do it a quarter at a time. So when we're here in April, we'll have a better sense of what Q2 is going to look like in terms of COVID testing, and we'll be able to kind of update you there.
Matt Taylor -- UBS -- Analyst
Can I just ask one follow up? So on gross margin, you mentioned that it was about $500 million headwind from inflation supply chain. And so I guess if we add that back in to getting to gross margins closer to 60%, ex that. I was just wondering if you could talk about expectations for gross margins going forward longer term, if things normalize and if you could kind of see those levels in 2023, if things improve or just pluses and minuses on gross margins longer term.
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Matt, I think the ad-back hits you a little bit below that. But the way we think about gross margin every year is looking for ways to expand that. Every one of our businesses has dedicated teams focused on gross margin initiatives, and you're seeing some of that benefit actually in our 2022 forecast, helping to offset the impact of the inflation that we're seeing. We continue those programs that are not a one year program.
We do them every year and we'll continue to those into next year. The other thing we're seeing is a benefit of kind of the business mix. So as medical devices and routine diagnostic testing recovers, that benefits our overall gross margin for the business. Obviously, Robert talked about a lot of the opportunity, some of the opportunities, even more that we have to drive growth in our medical device business as well as in diagnostics.
And as we grow those businesses that will have a positive impact overall on our gross margin profile.
Robert Ford -- Chairman and Chief Executive Officer
OK. Let me let me wrap up here then. Thanks, Bob. Listen, I'll finish by saying a little bit how I started.
Acknowledge that there's a lot of uncertainties in the macro environment right now and the challenges that creates in terms of, you know, in terms of forecasting for investors, at least in the short term, the pandemic, how long will it last, phases, transition to endemic, recovery curves of procedures. I get some of the challenges of that forecast. But if I look at the market here at the start of the year and look at healthcare sectors, specifically medtech and diagnostics, definitely been disproportionately hit by some of those uncertainties. And I think if you take a step back, I think it's important to remind ourselves the healthcare still remains a very, very important need and a great long-term growth area because I think none of the long-term market fundamentals have changed in the pandemic.
If anything, some of them have gotten even better and accelerated. So I think the demographic trends are are still very favorable and procedures and routine routine testing, they're going to come back, whether it's a month, two months, etc. It's just difficult to predict with perfect degree of precision, but they'll come back. And if you look at the innovation pipelines across the entire industry, they have never been stronger.
And within that context, I think Abbott's pretty uniquely positioned here. We're in great markets, leading positions in several large, fast-growing segments diabetes devices, diagnostics, including COVID testing, nutrition, emerging market pharma. We have strong positions, brands, franchises across all of these, so. And it's one of the questions I think we're leading in the digital transformation that's going to be more patient-centric care, whether it's with by wearables, whether it's connected devices, remote monitoring, etc.
And and then you layer that diversification that I talked about in my opening comments, which I think is very unique, it maximizes our growth opportunities, and it does provide a natural hedge to some of these macro environment impacts that we're going to see from time to time. And that diversity is not just on the business mix, but customers, payor types, obviously geographic footprint, and a very strong and resilient supply chain. So you translate all that into real strong, sustainable strategic financial health, whether it's growing revenues, cash flows, dividends, we've got a rock solid balance sheet. I talked about the opportunities that we have with it.
So I think we're in a really good position strategically, financially, and I'm excited about all the growth opportunities that lie ahead of us. So with that, I'll wrap it up and I'll thank everybody for joining us today.
Scott Leinenweber -- Vice President of Investor Relations, Licensing, and Acquisition
Thank you, operator, and thank you for all of your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11:00 a.m. Central Time today on Abbott's Investor Relations website at abbottinvestor.com.
Thank you for joining us!
Operator
[Operator signoff]
Duration: 58 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
Larry Biegelsen -- Wells Fargo -- Analyst
Robbie Marcus -- J.P. Morgan -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Josh Jennings -- Cowen and Company -- Analyst
Joanne Wuensch -- Citi -- Analyst
Matt Taylor -- UBS -- Analyst
More ABT analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) Q4 2021 Earnings Call Jan 26, 2022, 9:00 a.m. Operator [Operator signoff] Duration: 58 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 Larry Biegelsen -- Wells Fargo -- Analyst Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Joanne Wuensch -- Citi -- Analyst Matt Taylor -- UBS -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We delivered a billion test last year and approximately 300 million in the fourth quarter alone, and continue to play a significant role in the world's response to the pandemic. | Operator [Operator signoff] Duration: 58 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 Larry Biegelsen -- Wells Fargo -- Analyst Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Joanne Wuensch -- Citi -- Analyst Matt Taylor -- UBS -- 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) Q4 2021 Earnings Call Jan 26, 2022, 9:00 a.m. During the past year, we continue to expand our nutrition portfolio with several new product and line extensions, including the launch of Similac 360 Total Care in the U.S. and continued global expansion of our Pediasure, Glucerna and Ensure brands with line extensions such as plant-based, lower sugar, and high-protein products. | Operator [Operator signoff] Duration: 58 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 Larry Biegelsen -- Wells Fargo -- Analyst Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Joanne Wuensch -- Citi -- Analyst Matt Taylor -- UBS -- 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) Q4 2021 Earnings Call Jan 26, 2022, 9:00 a.m. We're going to see that a greater impact in the first quarter, around 3% in kind of -- and in the second quarter, and you don't get the impact would be a little bit less severe as we kind of go through the course of the year into the back half of the year. | Operator [Operator signoff] Duration: 58 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 Larry Biegelsen -- Wells Fargo -- Analyst Robbie Marcus -- J.P. Morgan -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Josh Jennings -- Cowen and Company -- Analyst Joanne Wuensch -- Citi -- Analyst Matt Taylor -- UBS -- 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) Q4 2021 Earnings Call Jan 26, 2022, 9:00 a.m. We're going to see that a greater impact in the first quarter, around 3% in kind of -- and in the second quarter, and you don't get the impact would be a little bit less severe as we kind of go through the course of the year into the back half of the year. |
31810.0 | 2022-01-26 00:00:00 UTC | Abbott's (ABT) Q4 Earnings and Revenues Beat Estimates | ABT | https://www.nasdaq.com/articles/abbotts-abt-q4-earnings-and-revenues-beat-estimates | nan | nan | Abbott Laboratories ABT 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.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
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.
Our Take
Abbott posted better-than-expected earnings and revenue numbers for the fourth quarter of 2021. Overall, year-over-year improvement in revenue looks encouraging. Barring Neuromodulation (where the company reported a 7.5% year-over-year decline on an organic basis), the company registered organic sales growth across all its operating segments. 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.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. AMN has an Earnings ESP of +10.29% and a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. HSIC has an Earnings ESP of +2.62% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC's earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Hologic, Inc. HOLX has an Earnings ESP of +1.56% and a Zacks Rank #2.
Hologic’s long-term earnings growth rate is estimated at 7.4%. HOLX's earnings yield of 5.3% compares favorably with the industry’s 4.8%.
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
Hologic, Inc. (HOLX): 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.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. Abbott Laboratories (ABT): Free Stock Analysis Report Quarter in Detail Abbott operates through four segments — Established Pharmaceuticals Division (EPD), Medical Devices, Nutrition, and Diagnostics. | Abbott Laboratories ABT reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. | Abbott Laboratories ABT reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. | Abbott Laboratories ABT reported fourth-quarter 2021 adjusted earnings from continuing operations of $1.32 per share, which exceeded the Zacks Consensus Estimate by 11.9%. Abbott Laboratories (ABT): Free Stock Analysis Report 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. |
31811.0 | 2022-01-26 00:00:00 UTC | Health Care Sector Update for 01/26/2022: IMCR, ABT, ANTM, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-01-26-2022%3A-imcr-abt-antm-xlv-ibb | nan | nan | Health care stocks were climbing premarket Wednesday. The Health Care SPDR (XLV) was up 0.27% and the iShares Biotechnology ETF (IBB) was recently advancing by more than 1%.
Immunocore Holdings (IMCR) was rallying nearly 12% after saying the US Food and Drug Administration has approved its Kimmtrak T cell receptor therapeutic for the treatment of a rare and aggressive form of skin cancer that affects the eye.
Abbott Laboratories (ABT) was down more than 3% as it reported Q4 adjusted diluted earnings of $1.32 per share, compared with $1.45 a year earlier. Analysts polled by Capital IQ expected $1.21.
Anthem (ANTM) reported a Q4 adjusted income of $5.14 per share, up from $2.54 a year earlier. Analysts polled by Capital IQ projected $5.12. Anthem was slightly gaining recently.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) was down more than 3% as it reported Q4 adjusted diluted earnings of $1.32 per share, compared with $1.45 a year earlier. The Health Care SPDR (XLV) was up 0.27% and the iShares Biotechnology ETF (IBB) was recently advancing by more than 1%. Immunocore Holdings (IMCR) was rallying nearly 12% after saying the US Food and Drug Administration has approved its Kimmtrak T cell receptor therapeutic for the treatment of a rare and aggressive form of skin cancer that affects the eye. | Abbott Laboratories (ABT) was down more than 3% as it reported Q4 adjusted diluted earnings of $1.32 per share, compared with $1.45 a year earlier. Analysts polled by Capital IQ expected $1.21. Anthem (ANTM) reported a Q4 adjusted income of $5.14 per share, up from $2.54 a year earlier. | Abbott Laboratories (ABT) was down more than 3% as it reported Q4 adjusted diluted earnings of $1.32 per share, compared with $1.45 a year earlier. The Health Care SPDR (XLV) was up 0.27% and the iShares Biotechnology ETF (IBB) was recently advancing by more than 1%. Anthem (ANTM) reported a Q4 adjusted income of $5.14 per share, up from $2.54 a year earlier. | Abbott Laboratories (ABT) was down more than 3% as it reported Q4 adjusted diluted earnings of $1.32 per share, compared with $1.45 a year earlier. The Health Care SPDR (XLV) was up 0.27% and the iShares Biotechnology ETF (IBB) was recently advancing by more than 1%. Immunocore Holdings (IMCR) was rallying nearly 12% after saying the US Food and Drug Administration has approved its Kimmtrak T cell receptor therapeutic for the treatment of a rare and aggressive form of skin cancer that affects the eye. |
31812.0 | 2022-01-26 00:00:00 UTC | Abbott (ABT) Q4 Earnings and Revenues Surpass Estimates | ABT | https://www.nasdaq.com/articles/abbott-abt-q4-earnings-and-revenues-surpass-estimates | nan | nan | Abbott (ABT) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 11.86%. A quarter ago, it was expected that this maker of infant formula, medical devices and drugs would post earnings of $0.92 per share when it actually produced earnings of $1.40, delivering a surprise of 52.17%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.47 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 8.52%. This compares to year-ago revenues of $10.7 billion. The company has topped consensus revenue estimates three 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 12.4% since the beginning of the year versus the S&P 500's decline of -8.6%.
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 $1.07 on $9.58 billion in revenues for the coming quarter and $4.71 on $39.84 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 25% 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.
One other stock from the same industry, Zimmer Biomet (ZBH), is yet to report results for the quarter ended December 2021. The results are expected to be released on February 7.
This orthopedic device maker is expected to post quarterly earnings of $1.96 per share in its upcoming report, which represents a year-over-year change of -7.1%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level.
Zimmer Biomet's revenues are expected to be $2.06 billion, down 1.4% 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.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
Zimmer Biomet Holdings, Inc. (ZBH): 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) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.18 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Abbott (ABT) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.18 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.47 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 8.52%. | Abbott (ABT) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.18 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott, which belongs to the Zacks Medical - Products industry, posted revenues of $11.47 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 8.52%. | Abbott (ABT) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.18 per share. Abbott Laboratories (ABT): Free Stock Analysis Report Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. |
31813.0 | 2022-01-26 00:00:00 UTC | Abbott Q4 Profit Tops Estimates; Net Sales Up 7.7% On Organic Basis | ABT | https://www.nasdaq.com/articles/abbott-q4-profit-tops-estimates-net-sales-up-7.7-on-organic-basis | nan | nan | (RTTNews) - Abbott (ABT) reported fourth quarter earnings per share from continuing operations, excluding items, of $1.32 compared to $1.45, prior year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.21, for the quarter. Analysts' estimates typically exclude special items.
Net profit from continuing operations was $1.99 billion or $1.11 per share compared to $2.16 billion or $1.20 per share.
Fourth-quarter sales were $11.5 billion, up 7.2 percent on a reported basis and 7.7 percent on an organic basis, which excludes the impact of foreign exchange. Analysts on average had estimated $10.71 billion in revenue. Excluding COVID-19 testing-related sales, fourth-quarter sales growth was 9.6 percent and organic sales growth was 10.3 percent.
The company projects full-year 2022 earnings per share from continuing operations under GAAP of at least $3.43. Excluding items, projected adjusted earnings per share from continuing operations would be at least $4.70. Analysts expect the company to report profit per share of $4.78.
Abbott projects first-quarter earnings per share from continuing operations under GAAP of at least $1.20. Excluding items, projected adjusted earnings per share from continuing operations would be at least $1.50. Analysts expect the company to report profit per share of $1.13.
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) reported fourth quarter earnings per share from continuing operations, excluding items, of $1.32 compared to $1.45, prior year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.21, for the quarter. Excluding items, projected adjusted earnings per share from continuing operations would be at least $4.70. | (RTTNews) - Abbott (ABT) reported fourth quarter earnings per share from continuing operations, excluding items, of $1.32 compared to $1.45, prior year. Excluding COVID-19 testing-related sales, fourth-quarter sales growth was 9.6 percent and organic sales growth was 10.3 percent. Excluding items, projected adjusted earnings per share from continuing operations would be at least $4.70. | (RTTNews) - Abbott (ABT) reported fourth quarter earnings per share from continuing operations, excluding items, of $1.32 compared to $1.45, prior year. Net profit from continuing operations was $1.99 billion or $1.11 per share compared to $2.16 billion or $1.20 per share. Excluding items, projected adjusted earnings per share from continuing operations would be at least $4.70. | (RTTNews) - Abbott (ABT) reported fourth quarter earnings per share from continuing operations, excluding items, of $1.32 compared to $1.45, prior year. Net profit from continuing operations was $1.99 billion or $1.11 per share compared to $2.16 billion or $1.20 per share. The company projects full-year 2022 earnings per share from continuing operations under GAAP of at least $3.43. |
31814.0 | 2022-01-26 00:00:00 UTC | Abbott sales rise 7.2% as COVID test demand surges | ABT | https://www.nasdaq.com/articles/abbott-sales-rise-7.2-as-covid-test-demand-surges | nan | nan | Adds details on results
Jan 26 (Reuters) - Abbott Laboratories ABT.N on Wednesday reported a 7.2% rise in quarterly sales on strong demand for diagnostics products, including its COVID-19 tests, led by a sharp surge in cases due to the Omicron variant.
The company's net earnings fell to $1.99 billion, or $1.11 per share, in the fourth quarter ended Dec. 31 from $2.16 billion, $1.20 per share, a year earlier.
Sales of the company were $11.5 billion, higher than the $10.7 billion reported in the year-ago period.
(Reporting by Leroy Leo; Editing by Maju Samuel)
((Leroy.Dsouza@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on results Jan 26 (Reuters) - Abbott Laboratories ABT.N on Wednesday reported a 7.2% rise in quarterly sales on strong demand for diagnostics products, including its COVID-19 tests, led by a sharp surge in cases due to the Omicron variant. The company's net earnings fell to $1.99 billion, or $1.11 per share, in the fourth quarter ended Dec. 31 from $2.16 billion, $1.20 per share, a year earlier. (Reporting by Leroy Leo; Editing by Maju Samuel) ((Leroy.Dsouza@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on results Jan 26 (Reuters) - Abbott Laboratories ABT.N on Wednesday reported a 7.2% rise in quarterly sales on strong demand for diagnostics products, including its COVID-19 tests, led by a sharp surge in cases due to the Omicron variant. The company's net earnings fell to $1.99 billion, or $1.11 per share, in the fourth quarter ended Dec. 31 from $2.16 billion, $1.20 per share, a year earlier. Sales of the company were $11.5 billion, higher than the $10.7 billion reported in the year-ago period. | Adds details on results Jan 26 (Reuters) - Abbott Laboratories ABT.N on Wednesday reported a 7.2% rise in quarterly sales on strong demand for diagnostics products, including its COVID-19 tests, led by a sharp surge in cases due to the Omicron variant. The company's net earnings fell to $1.99 billion, or $1.11 per share, in the fourth quarter ended Dec. 31 from $2.16 billion, $1.20 per share, a year earlier. (Reporting by Leroy Leo; Editing by Maju Samuel) ((Leroy.Dsouza@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on results Jan 26 (Reuters) - Abbott Laboratories ABT.N on Wednesday reported a 7.2% rise in quarterly sales on strong demand for diagnostics products, including its COVID-19 tests, led by a sharp surge in cases due to the Omicron variant. The company's net earnings fell to $1.99 billion, or $1.11 per share, in the fourth quarter ended Dec. 31 from $2.16 billion, $1.20 per share, a year earlier. Sales of the company were $11.5 billion, higher than the $10.7 billion reported in the year-ago period. |
31815.0 | 2022-01-26 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-0 | 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?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $336.24 million, this makes it one of the average sized ETFs in the Health Care ETFs. PJP is managed by Invesco. Before fees and expenses, PJP 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.87%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
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).
Its top 10 holdings account for approximately 57.16% of PJP's total assets under management.
Performance and Risk
So far this year, PJP has lost about -6.56%, and is down about -3.02% in the last one year (as of 01/26/2022). During this past 52-week period, the fund has traded between $75.59 and $83.17.
The fund has a beta of 0.82 and standard deviation of 21.25% for the trailing three-year period, which makes PJP a high risk choice in this particular 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 $381.23 million in assets, iShares U.S. Pharmaceuticals ETF has $382.22 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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
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. | 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 However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. | 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 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. | 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 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. | 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 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. |
31816.0 | 2022-01-26 00:00:00 UTC | Abbott Laboratories Q4 21 Earnings Conference Call At 9:00 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q4-21-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 Jan. 26, 2022, to discuss Q4 21 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 Jan. 26, 2022, to discuss Q4 21 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 Jan. 26, 2022, to discuss Q4 21 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 Jan. 26, 2022, to discuss Q4 21 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 Jan. 26, 2022, to discuss Q4 21 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. |
31817.0 | 2022-01-25 00:00:00 UTC | After Hours Most Active for Jan 25, 2022 : MSFT, AAPL, QQQ, TQQQ, ZNGA, BAC, BMY, ACWI, PFE, ABT, STT, T | ABT | https://www.nasdaq.com/articles/after-hours-most-active-for-jan-25-2022-%3A-msft-aapl-qqq-tqqq-znga-bac-bmy-acwi-pfe-abt-stt | nan | nan | The NASDAQ 100 After Hours Indicator is down -33.06 to 14,139.7. The total After hours volume is currently 192,645,746 shares traded.
The following are the most active stocks for the after hours session:
Microsoft Corporation (MSFT) is +3.51 at $292.00, with 13,364,271 shares traded. MSFT's current last sale is 80.77% of the target price of $361.5.
Apple Inc. (AAPL) is +0.25 at $160.03, with 12,737,792 shares traded.AAPL is scheduled to provide an earnings report on 1/27/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 1.89 per share, which represents a 168 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.4 at $344.71, with 9,350,070 shares traded. This represents a 15.89% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.05 at $53.20, with 6,216,625 shares traded. This represents a 41.81% increase from its 52 Week Low.
Zynga Inc. (ZNGA) is +0.01 at $8.78, with 5,013,564 shares traded. As reported by Zacks, the current mean recommendation for ZNGA is in the "buy range".
Bank of America Corporation (BAC) is +0.04 at $45.47, with 4,821,862 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Bristol-Myers Squibb Company (BMY) is +0.04 at $62.50, with 4,739,393 shares traded. BMY's current last sale is 87.41% of the target price of $71.5.
iShares MSCI ACWI Index Fund (ACWI) is -0.188 at $98.17, with 4,349,752 shares traded. This represents a 9.12% increase from its 52 Week Low.
Pfizer, Inc. (PFE) is +0.21 at $52.75, with 3,484,412 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Abbott Laboratories (ABT) is +0.42 at $123.69, with 2,537,296 shares traded.ABT is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 1.18 per share, which represents a 145 percent increase over the EPS one Year Ago
State Street Corporation (STT) is unchanged at $94.13, with 2,434,740 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $2.33. As reported by Zacks, the current mean recommendation for STT is in the "buy range".
AT&T Inc. (T) is -0.06 at $26.42, with 2,425,449 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.76. T is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 0.76 per share, which represents a 75 percent increase over the EPS one Year Ago
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 +0.42 at $123.69, with 2,537,296 shares traded.ABT is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. Apple Inc. (AAPL) is +0.25 at $160.03, with 12,737,792 shares traded.AAPL is scheduled to provide an earnings report on 1/27/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 0.76 per share, which represents a 75 percent increase over the EPS one Year Ago 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 +0.42 at $123.69, with 2,537,296 shares traded.ABT is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 1.89 per share, which represents a 168 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.18 per share, which represents a 145 percent increase over the EPS one Year Ago | Abbott Laboratories (ABT) is +0.42 at $123.69, with 2,537,296 shares traded.ABT is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. The consensus earnings per share forecast is 1.89 per share, which represents a 168 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.18 per share, which represents a 145 percent increase over the EPS one Year Ago | Abbott Laboratories (ABT) is +0.42 at $123.69, with 2,537,296 shares traded.ABT is scheduled to provide an earnings report on 1/26/2022, for the fiscal quarter ending Dec2021. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. |
31818.0 | 2022-01-25 00:00:00 UTC | Pre-Market Earnings Report for January 26, 2022 : ABT, T, BA, ANTM, ADP, NSC, PGR, FCX, GD, TEL, KMB, APH | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-january-26-2022-%3A-abt-t-ba-antm-adp-nsc-pgr-fcx-gd-tel-kmb | nan | nan | The following companies are expected to report earnings prior to market open on 01/26/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Abbott Laboratories (ABT)is reporting for the quarter ending December 31, 2021. The medical products company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.18. This value represents a 18.62% decrease 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 2021 Price to Earnings ratio for ABT is 24.42 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry.
AT&T Inc. (T)is reporting for the quarter ending December 31, 2021. The wireless (national) company's consensus earnings per share forecast from the 16 analysts that follow the stock is $0.76. This value represents a 1.33% increase compared to the same quarter last year. In the past year T has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 11.54%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for T is 7.82 vs. an industry ratio of 45.40.
Boeing Company (BA)is reporting for the quarter ending December 31, 2021. The aerospace and defense company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.09. This value represents a 99.41% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BA is -120.12 vs. an industry ratio of 1.00.
Anthem, Inc. (ANTM)is reporting for the quarter ending December 31, 2021. The hmo company's consensus earnings per share forecast from the 19 analysts that follow the stock is $5.11. This value represents a 101.18% increase compared to the same quarter last year. ANTM missed the consensus earnings per share in the 4th calendar quarter of 2020 by -1.17%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ANTM is 17.32 vs. an industry ratio of 24.70.
Automatic Data Processing, Inc. (ADP)is reporting for the quarter ending December 31, 2021. The outsourcing company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.63. This value represents a 7.24% increase compared to the same quarter last year. In the past year ADP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 10.74%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ADP is 32.24 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Norfolk Southern Corporation (NSC)is reporting for the quarter ending December 31, 2021. The transportation (rail) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.04. This value represents a 15.15% increase compared to the same quarter last year. In the past year NSC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 5.88%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for NSC is 23.03 vs. an industry ratio of 6.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Progressive Corporation (PGR)is reporting for the quarter ending December 31, 2021. The insurance (property & casualty) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.99. This value represents a 45.90% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PGR is 30.78 vs. an industry ratio of 3.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Freeport-McMoran, Inc. (FCX)is reporting for the quarter ending December 31, 2021. The mining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.96. This value represents a 152.63% increase compared to the same quarter last year. FCX missed the consensus earnings per share in the 4th calendar quarter of 2020 by -2.56%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FCX is 12.77 vs. an industry ratio of 8.20, implying that they will have a higher earnings growth than their competitors in the same industry.
General Dynamics Corporation (GD)is reporting for the quarter ending December 31, 2021. The aerospace and defense company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.37. This value represents a 3.44% decrease compared to the same quarter last year. GD missed the consensus earnings per share in the 4th calendar quarter of 2020 by -1.69%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for GD is 17.96 vs. an industry ratio of 1.00, implying that they will have a higher earnings growth than their competitors in the same industry.
TE Connectivity Ltd. (TEL)is reporting for the quarter ending December 31, 2021. The electrical instrument company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.62. This value represents a 10.20% increase compared to the same quarter last year. In the past year TEL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.42%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TEL is 21.66 vs. an industry ratio of 10.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Kimberly-Clark Corporation (KMB)is reporting for the quarter ending December 31, 2021. The consumer company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.28. This value represents a 24.26% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for KMB is 23.06 vs. an industry ratio of -17.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Amphenol Corporation (APH)is reporting for the quarter ending December 31, 2021. The electrical connectors company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.63. This value represents a 12.50% increase compared to the same quarter last year. In the past year APH has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.17%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for APH is 32.10 vs. an industry ratio of 23.70, 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 December 31, 2021. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.42 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.42 vs. an industry ratio of 9.50, 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 December 31, 2021. 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 December 31, 2021. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.42 vs. an industry ratio of 9.50, 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 December 31, 2021. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.42 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry. |
31819.0 | 2022-01-25 00:00:00 UTC | Notable Tuesday Option Activity: ATVI, ABT, BW | ABT | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-atvi-abt-bw | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Activision Blizzard, Inc. (Symbol: ATVI), where a total volume of 94,079 contracts has been traded thus far today, a contract volume which is representative of approximately 9.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.8% of ATVI's average daily trading volume over the past month, of 20.1 million shares. Particularly high volume was seen for the $79 strike put option expiring January 28, 2022, with 6,717 contracts trading so far today, representing approximately 671,700 underlying shares of ATVI. Below is a chart showing ATVI's trailing twelve month trading history, with the $79 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) saw options trading volume of 28,449 contracts, representing approximately 2.8 million underlying shares or approximately 46.3% of ABT's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $110 strike put option expiring June 17, 2022, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Babcock & Wilcox Enterprises Inc (Symbol: BW) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 46.2% of BW's average daily trading volume over the past month, of 509,995 shares. Especially high volume was seen for the $10 strike put option expiring February 18, 2022, with 1,036 contracts trading so far today, representing approximately 103,600 underlying shares of BW. Below is a chart showing BW's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for ATVI options, ABT options, or BW 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 $110 strike put option expiring June 17, 2022, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of ABT. Below is a chart showing ATVI's trailing twelve month trading history, with the $79 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 28,449 contracts, representing approximately 2.8 million underlying shares or approximately 46.3% of ABT's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange: And Babcock & Wilcox Enterprises Inc (Symbol: BW) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 46.2% of BW's average daily trading volume over the past month, of 509,995 shares. | Below is a chart showing ATVI's trailing twelve month trading history, with the $79 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 28,449 contracts, representing approximately 2.8 million underlying shares or approximately 46.3% of ABT's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange: And Babcock & Wilcox Enterprises Inc (Symbol: BW) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 46.2% of BW's average daily trading volume over the past month, of 509,995 shares. Particularly high volume was seen for the $110 strike put option expiring June 17, 2022, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of ABT. | Below is a chart showing ATVI's trailing twelve month trading history, with the $79 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 28,449 contracts, representing approximately 2.8 million underlying shares or approximately 46.3% of ABT's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange: And Babcock & Wilcox Enterprises Inc (Symbol: BW) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 46.2% of BW's average daily trading volume over the past month, of 509,995 shares. Particularly high volume was seen for the $110 strike put option expiring June 17, 2022, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of ABT. | Below is a chart showing ATVI's trailing twelve month trading history, with the $79 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 28,449 contracts, representing approximately 2.8 million underlying shares or approximately 46.3% of ABT's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange: And Babcock & Wilcox Enterprises Inc (Symbol: BW) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 46.2% of BW's average daily trading volume over the past month, of 509,995 shares. Particularly high volume was seen for the $110 strike put option expiring June 17, 2022, with 2,078 contracts trading so far today, representing approximately 207,800 underlying shares of ABT. |
31820.0 | 2022-01-25 00:00:00 UTC | S&P 500 Corrects Ahead Of Fed Meeting: Let's Check The Technicals | ABT | https://www.nasdaq.com/articles/sp-500-corrects-ahead-of-fed-meeting%3A-lets-check-the-technicals | nan | nan | It's been a crazy start to what is expected to be the most pivotal week of market action in the first quarter. The outlook divergence among investors has never been wider as bulls and bears duked it out in the highest volume sessions for US public equities since the pandemic capitulation (March 2020).
Money managers are de-risking their portfolios ahead of the Fed's first policy meeting of 2022 and taking profits in big tech before their quarterly results are unveiled this week. Fear of a monetary shock coupled with margin pinching inflation fears (specifically regarding wages) is compelling shareholders to reduce exposure to rate-sensitive mega-cap tech names following an incredible nearly 2-year market-buoying rally.
Nevertheless, S&P 500's break below the critical -10% correction marker (at excessively oversold RSI levels) has cash-heavy market participants putting money back to work. Fundamentals are taking back the stock market after months of euphoria-driven neglect, and this week's big-tech results could provide an excellent value-powered springboard for recently compressed growth equities.
The Fed's policy decision and subsequent Powell press conference Wednesday afternoon (1/26) will be the most important event of the week as it will tighten up interest rate expectations, which underpin the valuations of the entire public equity market. As long as nothing shocking transpires, I expect to see a relief rally with Jerome's market soothing words of a gradual monetary shift.
The Daily Action
High-beta technology stocks were naturally at the forefront of this week's daily price action, following last week's consequential selling pressure spilling over. The tech-heavy Nasdaq 100 retreated as much as -18% from its November highs in Monday's session, less than 2% away from bear market territory (-20% or more decline from recent highs). Still, the selling is beginning to look overdone, and this growth-focused index is poised to bounce out of the excessively oversold RSI levels it's trading at.
The US 10-Year Treasury yield dipped marginally after touching 1.9% last week, in the all too familiar flight-to-safety rotation, with surging demand for the safety of bonds marginally pressuring yields since last week (out of risk-on stocks and into riskless bonds).
WTI crude oil futures took off to the consensus analyst price target of $85/barrel in the first couple weeks of 2022 trading, which is the price WTI crude will conceivable oscillate around until the next catalyst (likely OPEC's February meeting next Wednesday).
The VIX, aka the market's fear gauge, has been on a tear since the year began, opening 2022 around 16 but spiked to nearly 40 in less than 3 weeks as market anxieties took flight in this week's action (remaining in the 30s).
A New Market
The democratization of individual investing (commission-free trading accessible to anyone with a smartphone) coupled with pandemic boredom has driven millions of eager freshmen traders & investors into the stock market.
Soaring market engagement from capital-infused institutional money managers and amateur traders has completely changed the market dynamics, with hyper-fast high volume momentum trading, highly technically driven daily action, and self-fulfilling prophecies (particularly with technical levels) becoming an industry standard.
For example, investors have been preparing for the S&P 500 to correct for months now (-10% or more pullback from recent high), and most analysts had projected this to occur in earlier 2022, which is precisely what transpired. After the predicted "Santa Rally" concluded on the third trading day of the year, the market began looking for reasons to correct, which isn't challenging when the pace of inflation is at a 40-year high.
Nevertheless, a self-fulfilling prophecy came to fruition in Monday afternoon's buying spree once the S&P 500 entered correction territory, which was the buy trigger many market participants had patiently prepped for.
Whether the 4222 low that the S&P 500 hit Monday marks the bottom for public equities will be dictated by the Fed's policy decisions coupled with mega-cap tech's Q4 margin results (inflation implications) and forward-looking guidance.
The Week Ahead
We've got a formative week of market-moving fundamentals ahead, and with the recent volatility, public equities are more susceptible than ever to any catalyzer (or fear of one).
We are coming to the crescendo of Q4 earnings season as big tech prepares its annual reports while the Federal Reserve determines how to approach these uncharted economic waters as material inflation persists.
The Fed Meeting
This will be new Vice-Chair Leal Brainard's first time taking her seat beside Fed Chair Jerome Powell. Following her declaration of her dedication to control recently outsized pricing pressures, the markets are looking for a more hawkish tone in this Wednesday's (1/26) post-FOMC meeting policy statement and subsequent press conference with Jerome.
Fed Chair Jerome and his band of market accommodating central bankers are expected to unveil their 2022 monetary strategy. Market participants are anticipating the Fed will announce a March liftoff, which would kick off a long-awaited period of monetary tightening, following a 40-year high in the pace of inflation.
With the latest Omicron-variant causing prolonged pricing pressures that are officially not "transitory" (Jerome publicly retired the term in the context of inflation), the Federal Reserve is now under the gun to make more aggressive monetary strides towards controlling consumer prices before it gets out of hand.
The credit markets have been franticly raising their 2022 rate hike projections as primarily COVID-related supply chain bottlenecks push back economic recoveries and pressure prices as the Omicron-variant spreads like wildfire. The market is currently pricing for a 60% probability of 4 or more rate hikes by the end of 2022 (each incremental increase represents 25 basis-points).
I believe that these expectations are on the aggressive side, considering how outstandingly market accommodating Powell has been. Powell has done nothing but ensure investors that he intends to ease the US economy into a normalized interest rate environment. I wouldn't be surprised if the Fed were to reduce the number of rate hikes over the next 12 months but accelerate its asset sheet roll-off for a smoother market transition towards the target sustainable monetary approach (as little interference as possible).
However, incoming Vice-Chair Brainard's hawkish comments about controlling inflation being her #1 priority in a Congressional hearing earlier this month has traders pricing for the possibility of a monetary shock (unexpected policy changes at the world's most influential central bank). A monetary shock is one of the few things that would almost certainly impede our currently flourishing economic revival.
The booming US economy has managed to shrug off most of the recent inflation, with customers' willingness to pay at an all-time high. Still, the potentially severe adverse impacts of rapidly rising prices only show up when this willingness abates.
If the Fed raises rates too quickly, it risks halting demand and catalyzing an economic contraction, but letting prices run too hot for too long could cause much deeper and systemic economic harm.
Fed Chair Powell has done a tremendous job navigating the unchartered monetary waters that the pandemic's medically-induced economic coma forced upon the world. Jerome's progressive policy approach has been receiving a growing level of criticism from those worried that this slow and steady monetary tightening strategy will catalyze a period of irrevocable stagflation like that of the 1970s (high inflation, low economic growth).
Chair Powell remains the smartest man in the room. He remains steadfast on his outlook for the natural deceleration of inflation, which I presume will occur once the latest Omicron-driven supply chain tie-ups subside and demands can once again be met.
Mega-Cap Tech Reports
Big tech is finally up to bat as we enter the heart of Q4 earnings season, and these quarterly fundamentals can't seem to come soon enough, with sellers driving this cohort's year-to-date returns towards bear market territory (-20% or more off recent highs).
With their recent valuation slips, Netflix's NFLX stock capitulating report last week, and margin compressed results from Wall Street's leading financiers, investors are looking for these market-buoying beacons of boundless growth to drive fresh fundamental optimism back into this exhausted bull market.
Microsoft MSFT, which is trading nearly -20% off its November highs (toeing bear market territory), will be the first of the trillion-dollar club to reveal its year-ending results after the closing bell Tuesday afternoon (1/25). The market is looking for record results, and I see no reason they won't get them. MSFT has surpassed analysts' top and bottom line estimates every quarter for more than 5 years as its best-in-class cloud & AI services fuel this innovation-fueled legacy tech giant's continuous valuation advancement.
Tesla's TSLA incredible market-disrupting growth narrative has catalyzed a tidal wave of investor demand for this EV giant's shares. Nevertheless, the stock has sizable pulled back from the trillion-dollar valuation milestone it reached in October. TSLA is now trading over 30% below its recent highs but may be in for a bounce when it reports Wednesday after the closing bell (1/26) if Musk can deliver the growth figures he promised in the face of this global chip shortage.
Thursday afternoon (1/27), Apple's AAPL Q4 results will be the single most important December quarter release. The world's most valuable enterprise (making up 6.8% of the S&P 500 & over 12% of the Nasdaq 100) will give investors integral color on how systemic and material the recent Omicron-fueled inflation rally was/is.
The components of Apple's market-leading smartphone (and its most significant profit drive), the iPhone, are sourced worldwide, making it an excellent gauge for the real impact that rising prices have on corporate margins. There have been rumors that Apple's suppliers have had trouble fulfilling order obligations, but we will get the full story before the week concludes.
Abbott ABT, Intel INTC, AT&T T, and Boeing BA release their Q4 results on Wednesday (1/26). Visa V, Mastercard MA, Comcast CMCSA, and McDonald's MCD on Thursday (1/27). To conclude this pivotal earnings week, watch out for some of the largest US exporters, Chevron CVX and Caterpillar CAT.
There is nothing systematically disturbing about the recent market pullback, and I see this healthy correction as an opportunity.
If you still have cash on the sideline, I urge you to begin putting some of that money to work here. Don't try to call a bottom with any "all-in" trades but rather scale into your favorite stocks by dollar-cost averaging lower if the market continues to slip.
Good luck out there!
Dan
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott ABT, Intel INTC, AT&T T, and Boeing BA release their Q4 results on Wednesday (1/26). Abbott Laboratories (ABT): Free Stock Analysis Report However, incoming Vice-Chair Brainard's hawkish comments about controlling inflation being her #1 priority in a Congressional hearing earlier this month has traders pricing for the possibility of a monetary shock (unexpected policy changes at the world's most influential central bank). | Abbott ABT, Intel INTC, AT&T T, and Boeing BA release their Q4 results on Wednesday (1/26). Abbott Laboratories (ABT): Free Stock Analysis Report Nevertheless, S&P 500's break below the critical -10% correction marker (at excessively oversold RSI levels) has cash-heavy market participants putting money back to work. | Abbott ABT, Intel INTC, AT&T T, and Boeing BA release their Q4 results on Wednesday (1/26). Abbott Laboratories (ABT): Free Stock Analysis Report Fundamentals are taking back the stock market after months of euphoria-driven neglect, and this week's big-tech results could provide an excellent value-powered springboard for recently compressed growth equities. | Abbott ABT, Intel INTC, AT&T T, and Boeing BA release their Q4 results on Wednesday (1/26). Abbott Laboratories (ABT): Free Stock Analysis Report The tech-heavy Nasdaq 100 retreated as much as -18% from its November highs in Monday's session, less than 2% away from bear market territory (-20% or more decline from recent highs). |
31821.0 | 2022-01-25 00:00:00 UTC | PREVIEW-Abbott's COVID test sales in spotlight as Omicron fuels demand | ABT | https://www.nasdaq.com/articles/preview-abbotts-covid-test-sales-in-spotlight-as-omicron-fuels-demand | nan | nan | By Amruta Khandekar and Leroy Leo
Jan 25 (Reuters) - Abbott Laboratories ABT.N is likely to report a surge in fourth-quarter sales of COVID-19 test kits as makers of rapid tests benefited from supercharged demand due to the fast-spreading Omicron variant, even as they wrestled supply snarls.
Earlier this month, Abbott said it has the capacity to support the heightened demand, which is likely to stay strong in the near term. The company will report results on Wednesday before markets open.
Test makers have grappled with choppy demand in the past few quarters as COVID-19 infections have surged and plateaued in the United States, making it difficult to predict whether demand will hold up for the long term.
Despite the early gains, Abbott, which has been scaling up production capacity for rapid tests such as its BinaxNOW, may hold back on providing COVID-19 test sales estimates beyond the first quarter or the first half of 2022, analysts said.
"That may seem inadequate... but if you see the experience they (Abbott) had throughout 2020 and early 2021, it is very hard to predict demand for these tests. I mean, right now they're very strong but in six months, they could slow back down again," said Credit Suisse analyst Matt Miksic.
Abbott is also expected to benefit this year from a supply contract with the U.S. government, as the country makes free rapid tests available to its people in its battle against the crisis.
Click here for an interactive graphic : https://tmsnrt.rs/3HaAukQ
THE CONTEXT
** U.S. testing demand has shot up in recent months with Quest Diagnostics DGX.N, one of the largest U.S. commercial laboratory companies, performing nearly double the number of COVID-19 tests compared to the third quarter of last year.
** The Biden administration, which has come under criticism for not focusing on testing sooner, has pledged to procure 1 billion free rapid tests for Americans as a part of its effort to stem the Omicron spread.
Click here for an interactive graphic : https://tmsnrt.rs/3tZG4mI
THE FUNDAMENTALS
** Abbott is expected to report fourth-quarter revenue of $10.71 billion on Jan. 26, according to the mean estimate from 16 analysts based on Refinitiv data.
** Abbott reported total third-quarter sales of $10.9 billion. COVID-19 test sales brought in $1.9 billion in sales.
** Abbott has forecast fourth-quarter COVID-19 test sales between $1 billion and $1.4 billion.
WALL STREET SENTIMENT
** The current average analyst rating on Abbott shares is "buy", with six analysts rating it "strong buy", 13 "buy" four "hold" and one "sell".
** Wall Street's median 12-month price target is $145.50.
** The company's shares have risen about 29% in 2021.
QUARTER ENDING
EPS ESTIMATE ($)
ACTUAL EPS ($)
BEAT, MET, MISSED
Sept. 30. 2021
$0.95
$1.40
BEAT
June 30. 2021
$1.02
$1.17
BEAT
March 31. 2021
$1.27
$1.32
BEAT
Dec. 31. 2020
$1.35
$1.45
BEAT
Sept. 30. 2020
$0.91
$0.98
BEAT
June 30. 2020
$0.42
$0.57
BEAT
COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3HaAukQ
COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3fUW5lC
Abbott's rapid COVID-19 tests boost its diagnostics sales https://tmsnrt.rs/3rNdmCE
Americans grapple with prolonged testing woes amid Omicron surgehttps://www.reuters.com/world/us/americans-grapple-with-prolonged-testing-woes-amid-omicron-surge-2022-01-12/
Walmart, U.S. pharmacy chains cap COVID-19 test sales amid Omicron surge https://www.reuters.com/business/healthcare-pharmaceuticals/walgreens-limits-sales-at-home-covid-19-tests-four-per-customer-cnbc-2021-12-21/
US starts shipping free COVID tests amid Omicron -White Househttps://www.reuters.com/world/us/us-omicron-driven-covid-cases-dip-some-areas-may-still-see-rise-cdc-2022-01-21/
Abbott's rapid COVID-19 tests boost its diagnostics saleshttps://tmsnrt.rs/3tZG4mI
(Reporting by Amruta Khandekar and Leroy Leo; Editing by Sriraj Kalluvila)
((Leroy.Dsouza@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Amruta Khandekar and Leroy Leo Jan 25 (Reuters) - Abbott Laboratories ABT.N is likely to report a surge in fourth-quarter sales of COVID-19 test kits as makers of rapid tests benefited from supercharged demand due to the fast-spreading Omicron variant, even as they wrestled supply snarls. Abbott is also expected to benefit this year from a supply contract with the U.S. government, as the country makes free rapid tests available to its people in its battle against the crisis. ** Abbott is expected to report fourth-quarter revenue of $10.71 billion on Jan. 26, according to the mean estimate from 16 analysts based on Refinitiv data. | By Amruta Khandekar and Leroy Leo Jan 25 (Reuters) - Abbott Laboratories ABT.N is likely to report a surge in fourth-quarter sales of COVID-19 test kits as makers of rapid tests benefited from supercharged demand due to the fast-spreading Omicron variant, even as they wrestled supply snarls. ** The current average analyst rating on Abbott shares is "buy", with six analysts rating it "strong buy", 13 "buy" four "hold" and one "sell". COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3HaAukQ COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3fUW5lC Abbott's rapid COVID-19 tests boost its diagnostics sales https://tmsnrt.rs/3rNdmCE Americans grapple with prolonged testing woes amid Omicron surgehttps://www.reuters.com/world/us/americans-grapple-with-prolonged-testing-woes-amid-omicron-surge-2022-01-12/ Walmart, U.S. pharmacy chains cap COVID-19 test sales amid Omicron surge https://www.reuters.com/business/healthcare-pharmaceuticals/walgreens-limits-sales-at-home-covid-19-tests-four-per-customer-cnbc-2021-12-21/ US starts shipping free COVID tests amid Omicron -White Househttps://www.reuters.com/world/us/us-omicron-driven-covid-cases-dip-some-areas-may-still-see-rise-cdc-2022-01-21/ Abbott's rapid COVID-19 tests boost its diagnostics saleshttps://tmsnrt.rs/3tZG4mI (Reporting by Amruta Khandekar and Leroy Leo; Editing by Sriraj Kalluvila) ((Leroy.Dsouza@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Amruta Khandekar and Leroy Leo Jan 25 (Reuters) - Abbott Laboratories ABT.N is likely to report a surge in fourth-quarter sales of COVID-19 test kits as makers of rapid tests benefited from supercharged demand due to the fast-spreading Omicron variant, even as they wrestled supply snarls. Despite the early gains, Abbott, which has been scaling up production capacity for rapid tests such as its BinaxNOW, may hold back on providing COVID-19 test sales estimates beyond the first quarter or the first half of 2022, analysts said. COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3HaAukQ COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3fUW5lC Abbott's rapid COVID-19 tests boost its diagnostics sales https://tmsnrt.rs/3rNdmCE Americans grapple with prolonged testing woes amid Omicron surgehttps://www.reuters.com/world/us/americans-grapple-with-prolonged-testing-woes-amid-omicron-surge-2022-01-12/ Walmart, U.S. pharmacy chains cap COVID-19 test sales amid Omicron surge https://www.reuters.com/business/healthcare-pharmaceuticals/walgreens-limits-sales-at-home-covid-19-tests-four-per-customer-cnbc-2021-12-21/ US starts shipping free COVID tests amid Omicron -White Househttps://www.reuters.com/world/us/us-omicron-driven-covid-cases-dip-some-areas-may-still-see-rise-cdc-2022-01-21/ Abbott's rapid COVID-19 tests boost its diagnostics saleshttps://tmsnrt.rs/3tZG4mI (Reporting by Amruta Khandekar and Leroy Leo; Editing by Sriraj Kalluvila) ((Leroy.Dsouza@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Amruta Khandekar and Leroy Leo Jan 25 (Reuters) - Abbott Laboratories ABT.N is likely to report a surge in fourth-quarter sales of COVID-19 test kits as makers of rapid tests benefited from supercharged demand due to the fast-spreading Omicron variant, even as they wrestled supply snarls. Despite the early gains, Abbott, which has been scaling up production capacity for rapid tests such as its BinaxNOW, may hold back on providing COVID-19 test sales estimates beyond the first quarter or the first half of 2022, analysts said. COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3HaAukQ COVID-19 test makers have seen strong sales over the past several quartershttps://tmsnrt.rs/3fUW5lC Abbott's rapid COVID-19 tests boost its diagnostics sales https://tmsnrt.rs/3rNdmCE Americans grapple with prolonged testing woes amid Omicron surgehttps://www.reuters.com/world/us/americans-grapple-with-prolonged-testing-woes-amid-omicron-surge-2022-01-12/ Walmart, U.S. pharmacy chains cap COVID-19 test sales amid Omicron surge https://www.reuters.com/business/healthcare-pharmaceuticals/walgreens-limits-sales-at-home-covid-19-tests-four-per-customer-cnbc-2021-12-21/ US starts shipping free COVID tests amid Omicron -White Househttps://www.reuters.com/world/us/us-omicron-driven-covid-cases-dip-some-areas-may-still-see-rise-cdc-2022-01-21/ Abbott's rapid COVID-19 tests boost its diagnostics saleshttps://tmsnrt.rs/3tZG4mI (Reporting by Amruta Khandekar and Leroy Leo; Editing by Sriraj Kalluvila) ((Leroy.Dsouza@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. |
31822.0 | 2022-01-25 00:00:00 UTC | Where to Invest $5,000 for the Next 5 Years | ABT | https://www.nasdaq.com/articles/where-to-invest-%245000-for-the-next-5-years | nan | nan | The start of the year is the time for good resolutions -- and an investment plan. But I'm not talking about an investment plan for just this year. I'm talking about the long term. This means at least the next five years. That period of time allows you to more fully benefit from companies' growth. It also offers you the opportunity to generate passive income through dividend stocks.
If you have $5,000 to invest, you're off to a great start. But even if you have much less, you can set off on this path to making yourself richer. Many of the companies or sectors I'll talk about offer investment opportunities for less than $100. And there is also the possibility of buying fractional shares of the higher-priced names. So, let's get started. Here's where to invest your money for the next five years.
Image source: Getty Images.
Set for post-pandemic growth
My first idea is to look at consumer companies that managed the coronavirus crisis well. This shows their strength even through the worst of times. And it also means they don't have to spend a considerable amount of time trying to recover today. Instead, they're all set for growth in a post-pandemic world.
One example is Target (NYSE: TGT). The company has grown its digital sales during the pandemic -- and increased the number of shoppers who buy online and in-store. These multi-channel shoppers spend about 10 times more than a digital-only consumer over time.
Starbucks (NASDAQ: SBUX) is another consumer goods winner. The coffee chain giant revamped its store portfolio to focus on pickup and digital ordering -- priorities for today's customer. Starbucks is already benefiting. The company reported record revenue in the most recent quarter, and active members of its loyalty program reached nearly 25 million.
Target and Starbucks shares climbed 31% and 9% last year, respectively. So far this year, they've retreated -- offering an opportunity to get in on these great long-term players.
Recurring revenue and profit
Healthcare companies make another smart addition to a long-term portfolio. You can count on recurring revenue and profit from some of the bigger players. That's because their goods and services are often necessities for patients and doctors. Two strong companies here are Intuitive Surgical (NASDAQ: ISRG) and Abbott Laboratories (NYSE: ABT).
Intuitive is the leader in robotic surgery. It makes the da Vinci robot that's used in various minimally invasive procedures around the world. Intuitive generates revenue on sales and leasing of the da Vinci as well as on the sales of services and accessories. Intuitive saw a dip in profit and revenue during the earlier stages of the pandemic as surgeries were postponed. But generally, this company has grown earnings -- into the billions -- over time.
Abbott is also making billions of dollars in revenue and profit. Sales of the company's COVID-19 tests bumped earnings even higher since the early days of the health crisis. Even if testing sales wane, though, Abbott makes a solid investment. I like the company's diversification. Its businesses include diagnostics, medical devices, nutrition, and pharmaceuticals.
Now, the next decision depends on your risk tolerance. If you're an aggressive investor, you may want to consider a small position in cryptocurrency -- or in Coinbase Global (NASDAQ: COIN). Coinbase is a leading cryptocurrency exchange, so it gains in revenue when trading of these assets increases or remains at a strong level. As for cryptocurrencies themselves, have a look at one of the up-and-coming players such as Cardano or Avalanche. They may play a role in reshaping how business is done. When investing in cryptocurrencies, though, always remember this: Don't invest more than you can afford to lose. The industry is high-risk.
Dividend Kings
If you prefer to avoid high-risk investments and want some security, opt for dividend stocks. You may want to go for one of the Dividend Kings. These are stocks that have increased their dividends for 50 consecutive years. Here, we have Warren Buffett favorite Coca-Cola, as well as other mega-cap stocks like Johnson & Johnson. Both of these players have a dividend yield of more than 2.5%.
And if you want to truly balance the idea of risk and security, you may want to include both cryptocurrency and dividend players in your portfolio.
As for how much to invest in each area, that also depends on your risk tolerance. If you prefer safety, you should weigh healthcare and dividend players more heavily, for example.
Then, the next step is to sit back and relax. Long-term investing isn't about buying and selling the latest trend. Instead, invest in the companies and sectors you believe in and give them the time they need to flourish.
10 stocks we like better than Target
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Target wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns and recommends Coinbase Global, Inc., Intuitive Surgical, and Starbucks. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $193.33 calls on Intuitive Surgical, short January 2022 $115 calls on Starbucks, and short January 2022 $200 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two strong companies here are Intuitive Surgical (NASDAQ: ISRG) and Abbott Laboratories (NYSE: ABT). The coffee chain giant revamped its store portfolio to focus on pickup and digital ordering -- priorities for today's customer. The company reported record revenue in the most recent quarter, and active members of its loyalty program reached nearly 25 million. | Two strong companies here are Intuitive Surgical (NASDAQ: ISRG) and Abbott Laboratories (NYSE: ABT). Recurring revenue and profit Healthcare companies make another smart addition to a long-term portfolio. The Motley Fool owns and recommends Coinbase Global, Inc., Intuitive Surgical, and Starbucks. | Two strong companies here are Intuitive Surgical (NASDAQ: ISRG) and Abbott Laboratories (NYSE: ABT). The start of the year is the time for good resolutions -- and an investment plan. Dividend Kings If you prefer to avoid high-risk investments and want some security, opt for dividend stocks. | Two strong companies here are Intuitive Surgical (NASDAQ: ISRG) and Abbott Laboratories (NYSE: ABT). These are stocks that have increased their dividends for 50 consecutive years. And if you want to truly balance the idea of risk and security, you may want to include both cryptocurrency and dividend players in your portfolio. |
31823.0 | 2022-01-24 00:00:00 UTC | Abbott Laboratories is Oversold | ABT | https://www.nasdaq.com/articles/abbott-laboratories-is-oversold | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABT entered into oversold territory, changing hands as low as $121.29 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 25.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 37.5. 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 1.49% based upon the recent $125.83 share price.
A bullish investor could look at ABT's 25.9 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 25.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABT entered into oversold territory, changing hands as low as $121.29 per share. | Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.49% based upon the recent $125.83 share price. Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABT entered into oversold territory, changing hands as low as $121.29 per share. | Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABT entered into oversold territory, changing hands as low as $121.29 per share. Indeed, ABT's recent annualized dividend of 1.88/share (currently paid in quarterly installments) works out to an annual yield of 1.49% based upon the recent $125.83 share price. | Abbott Laboratories (Symbol: ABT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. 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 Monday, shares of ABT entered into oversold territory, changing hands as low as $121.29 per share. |
31824.0 | 2022-01-24 00:00:00 UTC | ABT Makes Notable Cross Below Critical Moving Average | ABT | https://www.nasdaq.com/articles/abt-makes-notable-cross-below-critical-moving-average | nan | nan | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $123.23, changing hands as low as $121.69 per share. Abbott Laboratories shares are currently trading down about 3.2% 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 $121.88. 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 $123.23, changing hands as low as $121.69 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 $121.88. 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 $123.23, changing hands as low as $121.69 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 $121.88. 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 $123.23, changing hands as low as $121.69 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 $121.88. 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 $123.23, changing hands as low as $121.69 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 $121.88. 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. |
31825.0 | 2022-01-24 00:00:00 UTC | Is a Surprise Coming for Abbott (ABT) This Earnings Season? | ABT | https://www.nasdaq.com/articles/is-a-surprise-coming-for-abbott-abt-this-earnings-season | nan | nan | Investors are always looking for stocks that are poised to beat at earnings season and Abbott Laboratories ABT may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Abbott is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABT in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.21 per share for ABT, compared to a broader Zacks Consensus Estimate of $1.18 per share. This suggests that analysts have very recently bumped up their estimates for ABT, giving the stock a Zacks Earnings ESP of +2.82% heading into earnings season.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ABT has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Abbott, and that a beat might be in the cards for the upcoming report.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABT in this report. Investors are always looking for stocks that are poised to beat at earnings season and Abbott Laboratories ABT may be one such company. In fact, the Most Accurate Estimate for the current quarter is currently at $1.21 per share for ABT, compared to a broader Zacks Consensus Estimate of $1.18 per share. | Abbott Laboratories (ABT): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and Abbott Laboratories ABT may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ABT in this report. | This suggests that analysts have very recently bumped up their estimates for ABT, giving the stock a Zacks Earnings ESP of +2.82% heading into earnings season. Given that ABT has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Abbott Laboratories ABT may be one such company. | Given that ABT has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Abbott Laboratories (ABT): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and Abbott Laboratories ABT may be one such company. |
31826.0 | 2022-01-24 00:00:00 UTC | 3 No-Brainer Healthcare Stocks to Buy Right Now for Less than $150 | ABT | https://www.nasdaq.com/articles/3-no-brainer-healthcare-stocks-to-buy-right-now-for-less-than-%24150 | nan | nan | Over the past few months, the stock market has been experiencing sell-offs which has created great buying opportunities for wise investors. There's nothing like getting a high-quality long-term investment at bargain prices. Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Each of the healthcare stocks offers an above-average dividend to go with plenty of growth potential.
While their shares have all risen recently, I still see possibilities for greater gains. All three land in the "Yes, but..." category for investors. Yes, AbbVie is doing great, but what about the Humira patent cliff? Yes, Merck has Keytruda, but what happens once the drug's revenue falls? Yes, CVS has thrived on COVID-19 shots and testing, but what about when the COVID demand declines?
In all three cases, the concerns are overblown and provide an opportunity for long-term investors.
Image source: Getty Images.
AbbVie has more going on than just Humira
Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. The company's large stable of cancer and immunological drugs has driven its strong financials. Over the past five years, its quarterly revenue has climbed 119.4% and its quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) has risen 134.6% over that period.
During that time, the company had the world's top-selling drug, Humira, used to treat numerous inflammatory conditions. The drug brought in a reported $15.3 billion in revenue through the first nine months of 2021, but it is scheduled to go off-patent in the United States in 2023. However, as Humira's sales ebb, AbbVie has begun to replace them with its other two top performers, Skyrizi and Rinvoq, both immunological drugs. The company said this month that it expects to have more than $15 billion in annual sales from the two drugs by 2025.
Through the first nine months, the company reported revenue of $41.3 billion, up 29.3% year over year, and diluted earnings per share of $4.19, up 51.3% over the same period last year.
AbbVie is a rarity among pharmaceuticals because it offers a rather generous dividend. It raised its quarterly dividend this year by 8.5% to $1.41 per share, giving it a yield of 3.91%. Counting its time as a subsidiary of Abbott Laboratories, it is raising its dividend for the 50th consecutive year this year, making it a Dividend King. Since it split off from Abbott in 2013, the company has raised its dividend by more than 250%. There's plenty of room for continued growth with a cash dividend payout ratio of 41.74.
Merck quietly keeps putting out strong numbers
After a sluggish 2021, Merck is up more than 5% so far this year. Over the past five years, the company has boosted quarterly revenue by 39.4% and quarterly diluted earnings per share (EPS) by 221.4%.
The pharmaceutical company is on track for its sixth consecutive year of rising revenue. In the third quarter, Merck reported year-to-date revenue of $35.2 billion, up 13% year over year, while non-GAAP EPS was $4.22, up 18% over the same period last year. The company said it expects full-year revenue to be between $47.4 billion and $47.9 billion, up 14% to 15% year over year, with EPS between $4.71 and $4.76, compared to 2020's total EPS of $2.33.
In some ways, Merck has a similar problem to AbbVie in that its biggest seller will be going off-patent in a few years. Merck's blockbuster oncology drug, Keytruda, brought in $4.5 billion in the third quarter, nearly 12.8% of the company's overall revenue. Unlike AbbVie's Humira, however, Keytruda has a lot longer, until 2028, before it loses exclusivity. In the meantime, Merck is examining coformulations and other ways to extend the drug's patent life.
The company also sees much promise for investigational pulmonary arterial hypertension (PAH) drug sotatercept, which Merck inherited by purchasing Acceleron Pharma for $11.5 billion, in a deal it completed in November. Merck said it sees sotatercept, which is still in late-stage trials, as a first-in-class therapy for PAH. It also said it expects as many as 90 new approvals from its pipeline by 2028.
Merck also has a dependable dividend, which it just raised by 6.2% to $0.69 per share, the 12th consecutive year it has increased its dividend. At its most recent share price, the yield was 3.2%. Over the past five years, the company has increased its dividend by 46.8%. Its cash dividend payout ratio is a little high at 79.79%, but the company's increased revenue has made that less of a concern going forward.
CVS Health keeps surprising the experts
CVS Health's shares have climbed more than 39% over the past year and are down nearly 2% so far this year, with the stock trading near its 52-week high of $107.26. Over the past five years, CVS has grown quarterly revenue by 65.8% and diluted quarterly EPS by 30.4%.
While the company's shares have gotten pricier, they're far from expensive. CVS has the lowest price-to-earnings ratio of the three companies here at 18.58. That's probably because people see the company benefiting greatly from the pandemic but wonder how its revenue numbers can hold up. The company said it gave more than 8 million COVID-19 tests and administered more than 11 million COVID-19 vaccines nationwide just in the third quarter.
The rise of COVID tests and shots has been a boost to CVS. Through nine months, the company reported revenue of $215.5 billion, up 8.2% over 2020. It also reported diluted EPS of $4.98, up 5.5% over the same period in 2020. The company just increased its guidance at the J.P. Morgan Healthcare Conference last week, saying it expected adjusted earnings to be in the range of $8.33 to $8.38 a share, up from the earlier outlook of at least $8 per share.
Looking deeper, it's easy to see it's more than just COVID-related revenue. In the third quarter, the company's retail/LTC segment, which benefited most from the administration of COVID shots and tests, rose 8% year over year, to a reported $72.9 billion over nine months.
Also, the company's healthcare benefits segment (insured and self-insured medical, pharmacy, dental, and behavioral health products and services) reported nine-month revenue of $61.4 billion, up 9% year over year, which the company attributed to a rise in business from government services. Its pharmacy services segment said it had $113.6 billion in revenue through nine months, up by 7% over the same period in 2020.
CVS raised its quarterly dividend by 10% to $0.55 per share, giving it a yield at current prices of 2.07%. While that's a lower yield than the other two stocks, it still is a good bit above the S&P 500 average dividend yield of 1.27%.
The best choice for now and down the road
All three healthcare stocks have great long-term potential. In the short term, I see the most growth for CVS, because its revenue from in-store tests and shots should continue to increase, at least for a while. AbbVie, with its huge stable of drugs, is likely the best long-term choice and it has the added bonus of having the most yield on its dividend and the longest track record of dividend increases. Merck is a solid choice, and because Keytruda's patent cliff is farther away than that of AbbVie's Humira, represents less risk, though its high dividend payout is something to watch.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Jim Halley owns AbbVie and CVS Health. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, as Humira's sales ebb, AbbVie has begun to replace them with its other two top performers, Skyrizi and Rinvoq, both immunological drugs. The company also sees much promise for investigational pulmonary arterial hypertension (PAH) drug sotatercept, which Merck inherited by purchasing Acceleron Pharma for $11.5 billion, in a deal it completed in November. Merck is a solid choice, and because Keytruda's patent cliff is farther away than that of AbbVie's Humira, represents less risk, though its high dividend payout is something to watch. | Shares of AbbVie (NYSE: ABBV), Merck (NYSE: MRK), and CVS Health (NYSE: CVS) all are below $150. Through the first nine months, the company reported revenue of $41.3 billion, up 29.3% year over year, and diluted earnings per share of $4.19, up 51.3% over the same period last year. Over the past five years, the company has boosted quarterly revenue by 39.4% and quarterly diluted earnings per share (EPS) by 221.4%. | Through the first nine months, the company reported revenue of $41.3 billion, up 29.3% year over year, and diluted earnings per share of $4.19, up 51.3% over the same period last year. In the third quarter, Merck reported year-to-date revenue of $35.2 billion, up 13% year over year, while non-GAAP EPS was $4.22, up 18% over the same period last year. Also, the company's healthcare benefits segment (insured and self-insured medical, pharmacy, dental, and behavioral health products and services) reported nine-month revenue of $61.4 billion, up 9% year over year, which the company attributed to a rise in business from government services. | AbbVie has more going on than just Humira Pharmaceutical company AbbVie is up more than 20% over the past year and down 2% so far this year. In the third quarter, Merck reported year-to-date revenue of $35.2 billion, up 13% year over year, while non-GAAP EPS was $4.22, up 18% over the same period last year. In the third quarter, the company's retail/LTC segment, which benefited most from the administration of COVID shots and tests, rose 8% year over year, to a reported $72.9 billion over nine months. |
31827.0 | 2022-01-23 00:00:00 UTC | Is AbbVie Stock a Top Pick for 2022? | ABT | https://www.nasdaq.com/articles/is-abbvie-stock-a-top-pick-for-2022 | nan | nan | Inflation is rampant. Treasury yields are rising, and the Federal Reserve is expected to raise interest rates multiple times in 2022. Many growth and technology stocks are getting hammered as a result, and investors are looking for a safe haven. In the case of AbbVie (NYSE: ABBV), look no further.
AbbVie is a global prescription drug developer, manufacturer, and distributor that was spun off from parent company Abbott Labs back in 2013. Its stock is trading near all-time highs as analysts and investors begin to see management's vision taking shape. Risks that were previously thought to be serious enough to hamper results are being managed well. The company is making record revenue, and the dividend is safe and growing. The stock has recently risen substantially from under $110 per share in October 2021 to over $131 now; however, there's still room for this stock to reward investors in 2022.
Image source: Getty Images.
Risks are being managed well
Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. And for good reason: In fiscal 2019, Humira sales accounted for 58% of the company's sales. This could be a precarious situation, as companies attempt to bring generic drugs and biosimilars to market. In fact, a biosimilar competitor to Humira was released in Europe in late 2018 resulting in a 31% drop in international sales of Humira in 2019. It is expected that the same results will be seen when biosimilar medications are released in the U.S. in 2023.
With this in mind, management must start replacing this revenue stream. To that end, AbbVie acquired Allergan in 2019 to bolster revenue and create a pharmaceutical powerhouse. Allergan is best known for its Botox franchise, although it also has several other revenue-generating products on the market. Next, AbbVie released Skyrizi and Rinvoq, two medications that are now expected to provide a combined $15 billion in sales by 2025. There was concern in December when the FDA added a warning to Rinvoq among other medications in the class of JAK inhibitors. This reaffirmation of guidance is a clear signal that the company is not concerned that the FDA safety label requirements will hurt sales in any meaningful way.
Another potential risk for AbbVie is that legislation will crimp results by limiting the company's pricing power, patent protections, or both. Congress is keen to talk about lowering drug prices though it struggles to agree on how to do this. Hearings were held in 2021 in which AbbVie's CEO Richard Gonzalez testified. Drugmakers spend billions of dollars on the research and development of new drugs, and many of them do not ever come to market. When a drug is successful, the company and its shareholders expect large returns. While the threat of legislation is still active, Congress is as polarized as ever, and the likelihood of action that would severely hamper AbbVie's results seems minimal.
Shareholders reap the rewards
Because of the aforementioned risks, AbbVie often trades at a discount to fair value. This allows savvy investors to snag a higher dividend yield. The current yield stands at over 4%. AbbVie has raised the dividend for eight straight years and this will likely continue. The current dividend payment is $1.41 per quarter. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements.
ABBV Total Return Level data by YCharts
In the long term, the stock price will likely rise as well. The stock is valued at a reasonable forward price-to-earnings ratio near 10. The company has posted record revenue for the first nine months of 2021, at $41.3 billion. This is 29% higher than over the same period in 2020. Even better, Humira accounted for only 39% of sales for the third quarter of 2021. This shows the tremendous progress that management has made in diversifying revenue streams. As Rinvoq and Skyrizi sales ramp up, this number will continue to decrease.
Despite the looming patent cliff, AbbVie looks safe
AbbVie's management is seemingly doing everything correctly. Revenue is growing significantly, while the percentage of revenue received from Humira sales is declining. The Allergan acquisition has provided additional products, and now Rinvoq and Skyrizi are expected to carry the torch, reaching $15 billion in combined sales in just a few years. Due to the nature of the business, there are always patent cliffs and potential legislation to contend with. However, AbbVie continues to be highly successful. Long-term investors can buy AbbVie for the 4% yield and hold for the rising dividend and share price.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Bradley Guichard owns AbbVie. 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. | Risks are being managed well Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements. The Allergan acquisition has provided additional products, and now Rinvoq and Skyrizi are expected to carry the torch, reaching $15 billion in combined sales in just a few years. | The company is making record revenue, and the dividend is safe and growing. Next, AbbVie released Skyrizi and Rinvoq, two medications that are now expected to provide a combined $15 billion in sales by 2025. Despite the looming patent cliff, AbbVie looks safe AbbVie's management is seemingly doing everything correctly. | Risks are being managed well Many people know AbbVie as the company that makes the blockbuster biologic drug Humira which treats a long list of health conditions. While the market adjusts to the macroeconomic conditions of 2022, investors can relax and bank dividends from AbbVie without worrying about short-term stock price movements. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Bradley Guichard owns AbbVie. | And for good reason: In fiscal 2019, Humira sales accounted for 58% of the company's sales. Revenue is growing significantly, while the percentage of revenue received from Humira sales is declining. Long-term investors can buy AbbVie for the 4% yield and hold for the rising dividend and share price. |
31828.0 | 2022-01-22 00:00:00 UTC | 2 Healthcare Stocks You Can Buy and Hold for the Next Decade | ABT | https://www.nasdaq.com/articles/2-healthcare-stocks-you-can-buy-and-hold-for-the-next-decade-0 | nan | nan | Investors have been stuck on a roller coaster of volatility in the overall market for nearly two months, leading some to eye dividend stocks to cushion the fall. But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade.
Image Source: Getty Images
Abbott Labs: a newly crowned king with double-digit revenue growth
Abbott is a major pharmaceutical company best known for its medical devices, diagnostics, and pediatric and adult nutritional products -- think Pedialyte or Similac. This year, it's being crowned as a dividend king -- meaning the company has increased its annual dividend for 50 consecutive years.
Third-quarter revenue grew 23% year over year. Excluding COVID-testing-related sales, Abbott still boasts a nearly 12% increase over pre-pandemic 2019 sales for the quarter. To put this number more in perspective of its strength, Abbott's top competitors -- Abbvie, Agilent Technologies, and Johnson & Johnson -- all grew revenue around 11% year over year in their latest quarters, including sales from Covid related items.
Although Abbott's dividend yield around 1.5% comes in just slightly above the S&P 500, it does fall short of the average healthcare stock dividend of 2.28%. So what will help Abbott be a strong play for the next 10 years? First, the company is bolstering its organic pipeline. During Q3 it announced FDA approval for its Amplatzer Amulet -- a device used in the heart for heading off blood clots before they can form.
The company also filed for a premarket approval to obtain FDA consideration for its CardioMEMS system, developed for remote monitoring of the heart. FDA approvals of these devices could make a significant positive impact for patients, and for company revenue -- 5 million people in the U.S. currently live with heart failure, with an additional 550,000 new cases diagnosed each year.
Second, the company is putting its $9.7 billion in cash toward acquisitions that further bolster its pipeline. The acquisition of Walk Vascular (for an undisclosed amount) in September expands its endovascular product solutions with Walk's system designed to break up and remove blood clots.
Going forward, the medical device market is projected to grow at a compound annual growth rate of 5.7% through 2027, accompanied by a 6.1% CAGR in the nutritional healthcare market through 2028, The increased presence of disease and illness, an aging population, and technological advancements offering alternative treatments and procedures will all help to fuel this market growth. Combined with Abbott's pipeline expansion and consistent dividends, that expanding opportunity should provide reason enough to make this newly minted dividend king an investment you can buy and hold for the next decade.
UnitedHealth Optum-izing services for a larger member base
Like Abbott, UnitedHealth is expected to benefit in the long term through a projected compound annual growth rate of 9.7% for the healthcare insurance market through 2028. That should allow for continued revenue growth and provide cash that the company can use to expand its portfolio of products and services to meet the needs of a growing customer base and an aging population going into the next decade.
UnitedHealth partners with over 1.3 million physicians and 6,500 hospitals and care facilities to provide healthcare insurance and medical products to over 100 million customers under two primary business units, Unitedhealthcare and Optum. Like Abbott, UnitedHealth has growing revenue, 200% share-price gains over the past five years, and a reasonable dividend of 1.24%. That lags yields from its peers and the S&P 500, but still equals a hefty $5.80 per share annually for investors, helping ease any anxiety that a volatile market might bring.
UnitedHealth's fourth-quarter earnings beat consensus estimates by 4.2%as revenue increased by 12.6% year over year, driven by double-digit growth across both business units. Consolidated operating margin also grew to 7.5% from 5.4% year over year, driven by top-line growth, compared to a 5.1% average margin for the healthcare services industry as of Sept. 2021.
Entering 2022, the company expects 500,000 new patients this year through Optum, an area in which per-consumer revenue grew by 30% in 2021. UnitedHealth expects another 800,000 new members through Unitedhealthcare. The success of Optum is helping lead the company into the future, as the company places more emphasis on offering patients expanded care through speciality clinics.
Meanwhile, the insurance side of the business is benefiting from programs that charge patients based on the success of their treatment, rather than the services rendered. By the end of 2022 the company expects to remain on course for double-digit revenue growth once again, topping $317 billion in total revenue for the year.
The COVID-19 pandemic's challenges have forced healthcare companies to adapt to a changing environment. So far, UnitedHealth has taken the appropriate measures to keep growing, giving investors with a long- term investment strategy reasons to stay on board. As the omicron surge eventually wanes, it will be exciting to see what UnitedHealth does next.
10 stocks we like better than UnitedHealth Group
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and UnitedHealth Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Jeff Little 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. | But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade. FDA approvals of these devices could make a significant positive impact for patients, and for company revenue -- 5 million people in the U.S. currently live with heart failure, with an additional 550,000 new cases diagnosed each year. That should allow for continued revenue growth and provide cash that the company can use to expand its portfolio of products and services to meet the needs of a growing customer base and an aging population going into the next decade. | But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade. Image Source: Getty Images Abbott Labs: a newly crowned king with double-digit revenue growth Abbott is a major pharmaceutical company best known for its medical devices, diagnostics, and pediatric and adult nutritional products -- think Pedialyte or Similac. UnitedHealth Optum-izing services for a larger member base Like Abbott, UnitedHealth is expected to benefit in the long term through a projected compound annual growth rate of 9.7% for the healthcare insurance market through 2028. | But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade. This year, it's being crowned as a dividend king -- meaning the company has increased its annual dividend for 50 consecutive years. UnitedHealth Optum-izing services for a larger member base Like Abbott, UnitedHealth is expected to benefit in the long term through a projected compound annual growth rate of 9.7% for the healthcare insurance market through 2028. | But Abbott Laboratories (NYSE: ABT) and UnitedHealth Group (NYSE: UNH) give investors more than that one reason to be comfortable with an investment in these dividend paying healthcare companies for the next decade. Third-quarter revenue grew 23% year over year. Like Abbott, UnitedHealth has growing revenue, 200% share-price gains over the past five years, and a reasonable dividend of 1.24%. |
31829.0 | 2022-01-21 00:00:00 UTC | Rise in COVID-19 Test Demand to Boost Abbott (ABT) Q4 Earnings | ABT | https://www.nasdaq.com/articles/rise-in-covid-19-test-demand-to-boost-abbott-abt-q4-earnings | nan | nan | Abbott Laboratories ABT is slated to report fourth-quarter and full-year 2021 results on Jan 26, before market open.
In the last-reported quarter, the company posted a negative earnings surprise of 52.17%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and missed on one, the average beat being 18.47%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Through the months of the fourth quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries are expected to have accelerated COVID-19 testing globally, giving a considerable boost to Abbott’s Diagnostics business revenues.
In October, in its third-quarter earnings release, Abbott raised its 2021 guidance in anticipation of this considerable rise in COVID-19 Diagnostic testing demand in Q4. The full-year adjusted EPS guidance currently reflects an expected 40% rise from the year-ago period. This is expected to get reflected in the fourth-quarter results. In the last-reported quarter, the company soldmore than 225 million COVID tests globally.Abbott has also established a global leadership position in rapid testing, with a supply capacity of more than 100 million tests per month. With the latest surge in cases, thanks to the more contagious Omicron variant, the company is expected to report sequentially stronger Diagnostics results for the fourth quarter.
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 fourth 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 are driving the adult nutrition growth rate are the new users entering the category in this period and the existing customers increasing their usage.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Within pediatric nutrition, the company is expected to have registered strong growth in the United States from continued share gains in its infant formula and toddler portfolio. Sales of Pedialyte, the company’s market-leading rehydration brand, grew strong double-digits in the third quarter driven by market uptake of several new products as well as Abbott’s investments in direct consumer promotion. These factors are likely to have continued boosting the company’s sales in the fourth quarter.
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 fourth-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 fourth-quarter performance is likely to have been driven by growth in Brazil, Russia and India, apart from the United States where COVID-19 cases have been shooting up on Omicron surge. 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.
Per the company’s October update, FreeStyle Libre sales were nearly $1 billion in Q3 with 200,000 new users added in this period. This has brought the total global user base for Libre to well over 3.5 million users. We expect this bullish trend to have continued in the fourth quarter, thanks to the COVID-induced focus on co-morbidities like diabetes.
Estimates
For fourth-quarter 2021, the Zacks Consensus Estimate for total revenues of $10.42 billion indicates a 2.6% decline from the prior-year quarter’s reported figure. The consensus mark for earnings is pegged at $1.17, suggesting a 19.3% decline year on year.
Earnings Whispers
Per our proven model, a stock with the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), has higher chances of beating estimates. That is exactly the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of +2.69%. 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.
Other Stocks Worth a Look
Here are some medical stocks also worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. AMN has an Earnings ESP of +10.29% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. HSIC has an Earnings ESP of +2.62% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
Laboratory Corporation of America Holdings LH has an Earnings ESP of +9.58% and a Zacks Rank of 1.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. LH’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Laboratory Corporation of America Holdings (LH): 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.
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 slated to report fourth-quarter and full-year 2021 results on Jan 26, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Factors at Play Through the months of the fourth quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries are expected to have accelerated COVID-19 testing globally, giving a considerable boost to Abbott’s Diagnostics business revenues. | Abbott Laboratories ABT is slated to report fourth-quarter and full-year 2021 results on Jan 26, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Factors at Play Through the months of the fourth quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries are expected to have accelerated COVID-19 testing globally, giving a considerable boost to Abbott’s Diagnostics business revenues. | Abbott Laboratories ABT is slated to report fourth-quarter and full-year 2021 results on Jan 26, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report Abbott Laboratories Price and EPS Surprise Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote Within pediatric nutrition, the company is expected to have registered strong growth in the United States from continued share gains in its infant formula and toddler portfolio. | Abbott Laboratories ABT is slated to report fourth-quarter and full-year 2021 results on Jan 26, before market open. Abbott Laboratories (ABT): Free Stock Analysis Report These factors are likely to have continued boosting the company’s sales in the fourth quarter. |
31830.0 | 2022-01-21 00:00:00 UTC | 3 Reasons to Buy Intuitive Surgical, and 1 Reason to Sell | ABT | https://www.nasdaq.com/articles/3-reasons-to-buy-intuitive-surgical-and-1-reason-to-sell | nan | nan | Robotic-assisted surgery represents the future of surgical procedures. The advantages are several. Such procedures are minimally invasive, patients have quicker recovery times, their hospital stays are shorter, and less aftercare is required.
Intuitive Surgical's (NASDAQ: ISRG) da Vinci surgical system is the dominant market leader, with thousands of systems installed worldwide. The question is, with COVID-19 crimping the company's results, is the stock a buy?
Image source: Getty Images.
Three reasons to buy
Anyone who has had surgery recently may have experienced the advantages of Intuitive's da Vinci surgical system firsthand. After all, the company has an 80% share of the surgical robotics market. That dominance will continue to pay dividends far into the future. Intuitive operates using a "razor and blade" business model -- it does make money from the initial sales of its da Vinci systems, but most of its revenue is recurring and comes from the sale of the disposable instruments and accessories those machines use, and services for the systems.
The more installed systems, the more its recurring revenue will grow. In 2021, Intuitive reported that recurring revenues accounted for 75% of its top line. The company has built a commanding lead over its limited competition, and robotic surgical systems have high switching costs, so its market dominance is likely to be lasting. This is truly a wide-moat business.
The second reason to invest in Intuitive Surgical is its incredible profitability. For the first three quarters of 2021, it reported $1.4 billion in operating income on $4.2 billion in revenues. That's a 33% operating margin. At 32%, its net margin is almost as good because its tax expense is partially offset by its interest income. It's also far better than many of its peers in the medical device category, as the chart below illustrates.
ISRG Operating Margin (TTM) data by YCharts
The third reason to consider buying Intuitive Surgical is its strong balance sheet. The company's high margins produce a tremendous amount of cash. This allows the company to operate long-term debt-free. As of the end of Q3 2021, it had $8.2 billion in cash and equivalents, short-term investments, and long-term investments on hand. That amounts to more than 7% of the company's current market cap.
This illustrates why it's important to consider a company's enterprise value (EV), which accounts for its balance sheet, rather than just its market cap. Enterprise value is calculated by taking a company's market cap and adding the net debt. A lower enterprise value, compared to the market cap, represents a better value for investors. And this is exactly the case with Intuitive Surgical.
One reason to sell
Intuitive's recurring revenue model is typically terrific. But, the pandemic has seriously crimped the company's business. Many of the most commonly performed surgical procedures that the da Vinci system is used for are non-emergency or elective procedures. When COVID-19 patients fill up hospitals, many of these procedures have to be postponed or canceled. The omicron variant surge, which has pushed daily new case figures to their highest ever levels, is therefore dealing yet another blow to Intuitive's business.
The company's growth from 2019 to 2021 was unimpressive. Intuitive forecasts that fourth-quarter 2021 revenue will be $1.6 billion, up 17% year over year. However, its 2020 results were also impaired by COVID-19. Its compound annual growth rate from Q4 2019 to Q4 2021 is expected to be only 10%. Procedures performed over this same period grew at a compound annual rate of just 14%.
An investor would typically expect to see higher growth for a company trading at a forward-EV-to-EBITDA ratio near 40. This valuation would be less concerning if COVID-19 was not as persistent of a headwind. For comparison, peers like Medtronic (NYSE: MDT), Abbot Laboratories (NYSE: ABT), and Stryker (NYSE: SYK) have forward EV-to-EBITDA ratios ranging from 16 to 20.
Is Intuitive still a buy?
The COVID-19 pandemic has hampered Intuitive's growth, and the stock has in the past few months slid by more than 18% from its 52-week high as a result. Although, while it sometimes seems like it will go on forever, the pandemic is temporary, as are the headwinds it's creating for Intuitive. The long-term trends, on the other hand, are tailwinds for its business.
The U.S. population is aging, robotic-assisted surgery is becoming more widely used, and the number of procedures performed with these machines will likely accelerate as a result. Intuitive's business model is top-notch, as evidenced by its incredible margins and fortress-like balance sheet. Long-term investors will likely see significant market outperformance from this stock.
10 stocks we like better than Intuitive Surgical
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Intuitive Surgical wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Bradley Guichard owns Intuitive Surgical. The Motley Fool owns and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $193.33 calls on Intuitive Surgical and short January 2022 $200 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For comparison, peers like Medtronic (NYSE: MDT), Abbot Laboratories (NYSE: ABT), and Stryker (NYSE: SYK) have forward EV-to-EBITDA ratios ranging from 16 to 20. The company has built a commanding lead over its limited competition, and robotic surgical systems have high switching costs, so its market dominance is likely to be lasting. ISRG Operating Margin (TTM) data by YCharts The third reason to consider buying Intuitive Surgical is its strong balance sheet. | For comparison, peers like Medtronic (NYSE: MDT), Abbot Laboratories (NYSE: ABT), and Stryker (NYSE: SYK) have forward EV-to-EBITDA ratios ranging from 16 to 20. Intuitive Surgical's (NASDAQ: ISRG) da Vinci surgical system is the dominant market leader, with thousands of systems installed worldwide. Three reasons to buy Anyone who has had surgery recently may have experienced the advantages of Intuitive's da Vinci surgical system firsthand. | For comparison, peers like Medtronic (NYSE: MDT), Abbot Laboratories (NYSE: ABT), and Stryker (NYSE: SYK) have forward EV-to-EBITDA ratios ranging from 16 to 20. Intuitive Surgical's (NASDAQ: ISRG) da Vinci surgical system is the dominant market leader, with thousands of systems installed worldwide. Three reasons to buy Anyone who has had surgery recently may have experienced the advantages of Intuitive's da Vinci surgical system firsthand. | For comparison, peers like Medtronic (NYSE: MDT), Abbot Laboratories (NYSE: ABT), and Stryker (NYSE: SYK) have forward EV-to-EBITDA ratios ranging from 16 to 20. Three reasons to buy Anyone who has had surgery recently may have experienced the advantages of Intuitive's da Vinci surgical system firsthand. This illustrates why it's important to consider a company's enterprise value (EV), which accounts for its balance sheet, rather than just its market cap. |
31831.0 | 2022-01-21 00:00:00 UTC | Will Quest Diagnostics Stock Rebound After A Large 19% Fall In A Month? | ABT | https://www.nasdaq.com/articles/will-quest-diagnostics-stock-rebound-after-a-large-19-fall-in-a-month | nan | nan | The stock price of Quest Diagnostics (NYSE: DGX), one of the largest U.S. diagnostics chains, has seen a fall of 15% over the last twenty-one trading days, while it is up 5% over the last week. The recent fall came despite the company’s preliminary results that were comfortably above the street estimates. The company estimates its top-line to be down 9% y-o-y to $2.74 billion in Q4 21, compared to the $2.6 billion consensus estimate. Similarly, Quest expects its adjusted earnings to be $3.33, comfortably above the $3.19 consensus estimate.
It appears that investors were hoping for even better numbers given the spread of Omicron in December, which should have triggered an increase in Covid-19 testing. Furthermore, the company’s guidance for 2022 appears to be lower than what investors were anticipating. The company has reaffirmed its earlier guidance of revenue to be north of $8.5 billion and EPS to exceed $8.00. However, both these figures are well below the consensus estimates of $9.2 billion in revenue and $8.75 EPS.
But now that DGX stock has seen a large 19% fall over the last month or so, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a very strong chance of a rise in DGX stock over the next month. A fall of 19% in a month is a rare event for DGX stock and it has occurred only 17 times in last ten years. Out of those 17 instances, all 17 of them resulted in DGX stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects a very strong chance of a rise in DGX stock over the coming month. See our analysis on Quest Diagnostics Stock Chance of Rise for more details.
While DGX stock may see higher levels over the next month, it is helpful to see how its peers stack up. Check out Quest Diagnostics Stock Comparison With Peers to see how DGX 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 -13.0% or more over a five-day period, the stock rose in the next five days on 38% of the occasions.
After moving -15.5% or more over a ten-day period, the stock rose in the next ten days on 40% of the occasions
After moving -19.2% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 100% of the occasions.
This pattern suggests that there is a very high chance of a rise in DGX stock over the next one month, but it may continue to see lower levels for the next five days and ten days.
Quest Diagnostics (DGX) Stock Return (Recent) Comparison With Peers
Five-Day Return: NEO highest at 20.7%; DGX lowest at -13.0%
Ten-Day Return: HCA highest at -2.1%; DGX lowest at -15.5%
Twenty-One Day Return: DVA highest at 6.1%; DGX lowest at -19.2%
We estimate Quest Diagnostics Valuation to be around $140 per share which is in-line with the current market price. This represents a P/EBITDA multiple of under 6x for the company based on our Quest Diagnostics EBITDA for the current fiscal year.
While DGX 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 Eli Lilly vs. Qorvo
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 Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DGX Return -20% -20% 51%
S&P 500 Return -4% -4% 105%
Trefis MS Portfolio Return -9% -9% 257%
[1] Month-to-date and year-to-date as of 1/19/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Out of those 17 instances, all 17 of them resulted in DGX stock rising over the subsequent one-month period (twenty-one trading days). Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data After moving -13.0% or more over a five-day period, the stock rose in the next five days on 38% of the occasions. While DGX stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. | Check out Quest Diagnostics Stock Comparison With Peers to see how DGX stock compares against peers on metrics that matter. Quest Diagnostics (DGX) Stock Return (Recent) Comparison With Peers Five-Day Return: NEO highest at 20.7%; DGX lowest at -13.0% Ten-Day Return: HCA highest at -2.1%; DGX lowest at -15.5% Twenty-One Day Return: DVA highest at 6.1%; DGX lowest at -19.2% We estimate Quest Diagnostics Valuation to be around $140 per share which is in-line with the current market price. Total [2] DGX Return -20% -20% 51% S&P 500 Return -4% -4% 105% Trefis MS Portfolio Return -9% -9% 257% [1] Month-to-date and year-to-date as of 1/19/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Check out Quest Diagnostics Stock Comparison With Peers to see how DGX stock compares against peers on metrics that matter. Quest Diagnostics (DGX) Stock Return (Recent) Comparison With Peers Five-Day Return: NEO highest at 20.7%; DGX lowest at -13.0% Ten-Day Return: HCA highest at -2.1%; DGX lowest at -15.5% Twenty-One Day Return: DVA highest at 6.1%; DGX lowest at -19.2% We estimate Quest Diagnostics Valuation to be around $140 per share which is in-line with the current market price. Total [2] DGX Return -20% -20% 51% S&P 500 Return -4% -4% 105% Trefis MS Portfolio Return -9% -9% 257% [1] Month-to-date and year-to-date as of 1/19/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See our analysis on Quest Diagnostics Stock Chance of Rise for more details. This pattern suggests that there is a very high chance of a rise in DGX stock over the next one month, but it may continue to see lower levels for the next five days and ten days. Quest Diagnostics (DGX) Stock Return (Recent) Comparison With Peers Five-Day Return: NEO highest at 20.7%; DGX lowest at -13.0% Ten-Day Return: HCA highest at -2.1%; DGX lowest at -15.5% Twenty-One Day Return: DVA highest at 6.1%; DGX lowest at -19.2% We estimate Quest Diagnostics Valuation to be around $140 per share which is in-line with the current market price. |
31832.0 | 2022-01-20 00:00:00 UTC | Abbott (ABT) Stock Moves -1.06%: What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-abt-stock-moves-1.06%3A-what-you-should-know | nan | nan | In the latest trading session, Abbott (ABT) closed at $124.71, marking a -1.06% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 9.31% over the past month. This has lagged the Medical sector's loss of 7.84% and the S&P 500's loss of 1.81% in that time.
Wall Street will be looking for positivity from Abbott as it approaches its next earnings report date. This is expected to be January 26, 2022. The company is expected to report EPS of $1.17, down 19.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.42 billion, down 2.59% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Abbott. These revisions help to show the ever-changing nature of near-term business trends. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. Abbott is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 26.85 right now. Its industry sports an average Forward P/E of 21.81, so we one might conclude that Abbott is trading at a premium comparatively.
Investors should also note that ABT has a PEG ratio of 2.44 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Products industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABT in the coming trading sessions, be sure to utilize Zacks.com.
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.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, Abbott (ABT) closed at $124.71, marking a -1.06% move from the previous day. Investors should also note that ABT has a PEG ratio of 2.44 right now. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $124.71, marking a -1.06% move from the previous day. Investors should also note that ABT has a PEG ratio of 2.44 right now. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $124.71, marking a -1.06% move from the previous day. Investors should also note that ABT has a PEG ratio of 2.44 right now. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. | In the latest trading session, Abbott (ABT) closed at $124.71, marking a -1.06% move from the previous day. Investors should also note that ABT has a PEG ratio of 2.44 right now. To follow ABT in the coming trading sessions, be sure to utilize Zacks.com. |
31833.0 | 2022-01-20 00:00:00 UTC | See Which Of The Latest 13F Filers Holds Abbott Laboratories | ABT | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbott-laboratories | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 12 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Chronos Wealth Management LLC Existing UNCH +$39
Arbor Trust Wealth Advisors LLC Existing +41 +$1,118
Claybrook Capital LLC NEW +1,600 +$225
Scharf Investments LLC Existing +64 +$137
CCG Wealth Management LLC Existing UNCH +$43
America First Investment Advisors LLC Existing +1,307 +$3,445
Patten Group Inc. Existing +967 +$338
Transcend Wealth Collective LLC Existing +2,702 +$446
Fortem Financial Group LLC Existing +239 +$275
Retirement Systems of Alabama Existing +152,720 +$49,051
Sound View Wealth Advisors Group LLC Existing +512 +$509
CRA Financial Services LLC Existing +1 +$63
Aggregate Change: +160,153 +$55,689
In terms of shares owned, we count 9 of the above funds having increased existing ABT positions from 09/30/2021 to 12/31/2021, with 1 new position. Worth noting is that Sciencast Management LP, included in this recent batch of 13F filers, exited ABT common stock as of 12/31/2021.
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 12/31/2021 reporting period (out of the 651 we looked at in total). We then compared that number to the sum total of ABT shares those same funds held back at the 09/30/2021 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 580,548 shares in the aggregate, from 13,542,426 down to 12,961,878 for a share count decline of approximately -4.29%. The overall top three funds holding ABT on 12/31/2021 were:
» FUND SHARES OF ABT HELD
1. Welch & Forbes LLC 646,250
2. Gateway Investment Advisers LLC 621,868
3. Royal London Asset Management Ltd. 588,454
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 20 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 12 of these funds. Worth noting is that Sciencast Management LP, included in this recent batch of 13F filers, exited ABT common stock as of 12/31/2021. 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). | At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 12 of these funds. Existing +967 +$338 Transcend Wealth Collective LLC Existing +2,702 +$446 Fortem Financial Group LLC Existing +239 +$275 Retirement Systems of Alabama Existing +152,720 +$49,051 Sound View Wealth Advisors Group LLC Existing +512 +$509 CRA Financial Services LLC Existing +1 +$63 Aggregate Change: +160,153 +$55,689 In terms of shares owned, we count 9 of the above funds having increased existing ABT positions from 09/30/2021 to 12/31/2021, with 1 new position. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: | Existing +967 +$338 Transcend Wealth Collective LLC Existing +2,702 +$446 Fortem Financial Group LLC Existing +239 +$275 Retirement Systems of Alabama Existing +152,720 +$49,051 Sound View Wealth Advisors Group LLC Existing +512 +$509 CRA Financial Services LLC Existing +1 +$63 Aggregate Change: +160,153 +$55,689 In terms of shares owned, we count 9 of the above funds having increased existing ABT positions from 09/30/2021 to 12/31/2021, with 1 new position. Royal London Asset Management Ltd. 588,454 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 20 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 12 of these funds. | At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 12 of these funds. Royal London Asset Management Ltd. 588,454 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: |
31834.0 | 2022-01-20 00:00:00 UTC | 3 Dividend Aristocrats Yielding Over 4% | ABT | https://www.nasdaq.com/articles/3-dividend-aristocrats-yielding-over-4 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to income investing, we prefer dividend stocks that have demonstrated long histories of being able to raise their dividends throughout all kinds of economic conditions. There are many ways to find stocks with great dividend longevity, but one of the easier ways is to simply start with the Dividend Aristocrats.
This is a group of just 65 stocks that are S&P 500 components, and have raised their dividends for at least 25 consecutive years.
That level of dividend longevity means all 65 of these companies have been able to raise their payouts through recessions, meaning the odds of them continuing to do so in future recessions is much higher.
7 Best Mutual Funds to Buy for the Coming Rate Hikes
Not all Dividend Aristocrats are created equal, as some are more geared towards earnings growth, dividend growth, or current yield. In this article, we’ll focus on the latter and highlight three Dividend Aristocrats that are currently yielding more than 4%. They are:
Leggett & Platt (NYSE:LEG)
AbbVie (NYSE:ABBV)
Chevron (NYSE:CVX)
Dividend Aristocrats: Leggett & Platt (LEG)
Source: Casimiro PT / Shutterstock.com
Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. The company operates a bedding business, a furniture and textile business and a miscellaneous segment. Through these segments, Leggett makes things like steel rods, chemicals and additives, foams, mattresses, springs, components for automotive seating, and much more.
The company was founded in 1883, generates about $5 billion in annual sales, employs just over 20,000 people, and trades with a market capitalization of $5.5 billion. Leggett has raised its dividend for the past 48 consecutive years, and it yields 4.1%.
Leggett’s earnings growth has been impressive at times, particularly coming out of the financial crisis. Indeed, between 2009 and 2019, the company boasted a 14% average annual earnings-per-share growth rate. That was based in part on a low base from the recession, and final earnings for 2021 – which haven’t yet been reported – are expected to be roughly equal to 2016.
We’re estimating 5% annual earnings-per-share growth looking forward, which we believe could accrue from a combination of organic sales growth, acquired sales growth and a modest level of share repurchases. Leggett is somewhat vulnerable to recessions, however, so our long-run estimate could have upside or downside depending upon when the next recession strikes.
The company’s competitive advantage is in its extremely long operating history, which has seen it grow its product catalog to a very wide and deep assortment of niche components, where competition is light. It also sports a highly diversified customer book so it isn’t beholden to one industry for revenue and earnings. Given this, we see the company’s ability to continue to grow its dividend in the years to come as quite good.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Our next stock is AbbVie, a diversified pharmaceutical company. AbbVie’s biggest revenue generator is Humira, the world’s best selling drug and one that AbbVie sells for several ailments. The company also offers a high number of various cancer treatments, thyroid treatments, anemia and much more.
AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). AbbVie now employs 50,000, generates $56 billion in annual revenue, and trades with a market capitalization of $240 billion. Including its time as part of Abbott, AbbVie has raised its dividend for 50 consecutive years, making it a Dividend King. In addition, its current yield is 4.1%.
We expect modest 3% annual earnings-per-share growth from AbbVie in the coming years, as the company is facing a revenue cliff for its best seller, Humira. That drug is rapidly approaching patent expiration in a variety of developed markets, including the U.S. AbbVie has a replacement for Humira, and it has acquired and built several other products to help offset this revenue cliff, but it is a concern nonetheless for near-term growth.
Even so, we see AbbVie’s ability to grow revenue organically, as well as buying back its own stock, as driving sustainable earnings-per-share growth over time.
AbbVie’s competitive advantages include its massive scale, and its world class pipeline of drugs. AbbVie’s focus on cancer treatments has positioned it quite well in a variety of small markets where it holds huge market share. And should Humira’s replacement prove to be successful, we believe it could see accelerated revenue growth into the middle of this decade.
7 Best Mutual Funds to Buy for the Coming Rate Hikes
Given that AbbVie sells non-discretionary treatments for serious ailments, it is quite recession resistant. And given the payout ratio is less than 50% of earnings, we believe it will generate dividend growth for many years to come.
Dividend Aristocrats: Chevron (CVX)
CVX) logo on blue sign in front of skyscraper building" width="300" height="169">
Source: Jeff Whyte / Shutterstock.com
Our final stock is Chevron, an integrated oil, gas, and chemical producer based in the U.S., but operating globally. Chevron operates upstream and downstream businesses, meaning it explores, develops, and produces crude and natural gas, in addition to refining crude into marketable end products.
Chevron was once part of Standard Oil, tracing its roots to 1879. Today, it employs 48,000 people, generates $160 billion in revenue, and trades with a market capitalization of $249 billion. Chevron has raised its dividend for 34 consecutive years, and has a current yield of 4.1%.
We see no growth in the coming years for Chevron, as it is seeing roughly flat total output. With rapidly fluctuating oil and gas prices, Chevron’s margins move around quite a bit as well, but on the plus side, Chevron only needs oil to be $40 per barrel for it to fund its dividend. Oil is at twice that level today, so there could be some upside to our forecast if that level of oil pricing is sustained.
Chevron’s major competitive advantages include its scale, which is one of the largest in the world. In addition, Chevron has a chemicals business that helps it diversify away from strictly oil and gas demand. It also helps smooth out price changes in the raw commodities themselves.
Still, at the end of the day, Chevron is a commodities business and is therefore beholden to the pricing of those commodities to an extent. With the dividend at ~60% of earnings, we believe it to be safe in all but the most bearish scenarios.
Final Thoughts
When looking for great dividend stocks, one of the best places to start is with the Dividend Aristocrats. These companies have stood the test of time and economic weakness, and in the case of Leggett & Platt, AbbVie and Chevron, they all have current yields that are more than triple that of the S&P 500.
Given this, we see all three as quite attractive for income investors today.
On the date of publication, Bob Ciura is long ABBV. 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 3 Dividend Aristocrats Yielding Over 4% 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. | AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). Through these segments, Leggett makes things like steel rods, chemicals and additives, foams, mattresses, springs, components for automotive seating, and much more. That drug is rapidly approaching patent expiration in a variety of developed markets, including the U.S. AbbVie has a replacement for Humira, and it has acquired and built several other products to help offset this revenue cliff, but it is a concern nonetheless for near-term growth. | AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). They are: Leggett & Platt (NYSE:LEG) AbbVie (NYSE:ABBV) Chevron (NYSE:CVX) Dividend Aristocrats: Leggett & Platt (LEG) Source: Casimiro PT / Shutterstock.com Our first Dividend Aristocrat is Leggett & Platt, a company that designs, manufactures and sells engineered components and other products globally. We’re estimating 5% annual earnings-per-share growth looking forward, which we believe could accrue from a combination of organic sales growth, acquired sales growth and a modest level of share repurchases. | AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to income investing, we prefer dividend stocks that have demonstrated long histories of being able to raise their dividends throughout all kinds of economic conditions. 7 Best Mutual Funds to Buy for the Coming Rate Hikes Not all Dividend Aristocrats are created equal, as some are more geared towards earnings growth, dividend growth, or current yield. | AbbVie was formed in 2012 but prior to that, was part of Abbott Laboratories (NYSE:ABT). 7 Best Mutual Funds to Buy for the Coming Rate Hikes Not all Dividend Aristocrats are created equal, as some are more geared towards earnings growth, dividend growth, or current yield. And given the payout ratio is less than 50% of earnings, we believe it will generate dividend growth for many years to come. |
31835.0 | 2022-01-19 00:00:00 UTC | Why Covid-19 Testing Stocks Are Selling Off Despite Surging Demand | ABT | https://www.nasdaq.com/articles/why-covid-19-testing-stocks-are-selling-off-despite-surging-demand | 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 13% year-to-date, compared to the S&P 500 which has declined about 2% over the same period. The sell-off comes despite a surge in demand for Covid-19 testing kits and services, driven by daily U.S. Covid-19 cases at highs of over 800,000 over the last week, as the highly infectious omicron variant spreads. The current surge is helping the companies in our theme. For example, Quest Diagnostics (DGX) recently raised its full-year guidance for 2021, signaling higher demand for testing through the end of December, while Abbott Laboratories (ABT) also sees testing demand holding strong in the near term. So why are testing stocks declining now?
It appears that the markets are now looking beyond the current phase of the pandemic into the longer term. There is a real possibility that demand for Covid tests is peaking as therapeutic options for Covid-19 improve and as the virus potentially gets milder (the omicron variant itself apparently has a lower rate of severe disease). Moreover, considering that testing stocks have provided solid returns over the last two years (about 47% in 2020 and around 22% in 2021), investors are likely reducing exposure to these stocks.
Within our theme, Abbott Laboratories has declined the least, year to date, falling by about 9%. On the other side, Quest Diagnostics stock has declined the most, falling by almost 18% year-to-date, given that the company is more dependent on Covid-19 tests compared to rivals.
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.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus about 50% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
ABT Return -9% -9% 234%
S&P 500 Return -2% -2% 108%
Trefis MS Portfolio Return -7% -7% 264%
[1] Month-to-date and year-to-date as of 1/16/2022
[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. | For example, Quest Diagnostics (DGX) recently raised its full-year guidance for 2021, signaling higher demand for testing through the end of December, while Abbott Laboratories (ABT) also sees testing demand holding strong in the near term. 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. Total [2] ABT Return -9% -9% 234% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/16/2022 [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. | Total [2] ABT Return -9% -9% 234% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/16/2022 [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. For example, Quest Diagnostics (DGX) recently raised its full-year guidance for 2021, signaling higher demand for testing through the end of December, while Abbott Laboratories (ABT) also sees testing demand holding strong in the near term. 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. | For example, Quest Diagnostics (DGX) recently raised its full-year guidance for 2021, signaling higher demand for testing through the end of December, while Abbott Laboratories (ABT) also sees testing demand holding strong in the near term. 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. Total [2] ABT Return -9% -9% 234% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/16/2022 [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. | For example, Quest Diagnostics (DGX) recently raised its full-year guidance for 2021, signaling higher demand for testing through the end of December, while Abbott Laboratories (ABT) also sees testing demand holding strong in the near term. 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. Total [2] ABT Return -9% -9% 234% S&P 500 Return -2% -2% 108% Trefis MS Portfolio Return -7% -7% 264% [1] Month-to-date and year-to-date as of 1/16/2022 [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. |
31836.0 | 2022-01-19 00:00:00 UTC | Abbott (ABT) Expected to Beat Earnings Estimates: Can the Stock Move Higher? | ABT | https://www.nasdaq.com/articles/abbott-abt-expected-to-beat-earnings-estimates%3A-can-the-stock-move-higher | nan | nan | Abbott (ABT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 26. 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 $1.17 per share in its upcoming report, which represents a year-over-year change of -19.3%.
Revenues are expected to be $10.42 billion, down 2.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.14% 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 the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
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 higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.69%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Abbott will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. 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 $0.92 per share when it actually produced earnings of $1.40, delivering a surprise of +52.17%.
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 appears 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.
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 +25.3% 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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2021. Abbott Laboratories (ABT): Free Stock Analysis Report This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. | Abbott (ABT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2021. 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. | Abbott (ABT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2021. 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. | Abbott (ABT) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2021. 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. |
31837.0 | 2022-01-19 00:00:00 UTC | March 18th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/march-18th-options-now-available-for-abbott-laboratories-abt | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the March 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $125.00 strike price has a current bid of $3.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $125.00, but will also collect the premium, putting the cost basis of the shares at $121.25 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $127.06/share today.
Because the $125.00 strike represents an approximate 2% 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 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.00% return on the cash commitment, or 18.89% 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 $125.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $130.00 strike price has a current bid of $3.45. If an investor was to purchase shares of ABT stock at the current price level of $127.06/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $130.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.03% if the stock gets called away at the March 18th 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 $130.00 strike highlighted in red:
Considering the fact that the $130.00 strike represents an approximate 2% 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 60%. 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 2.72% boost of extra return to the investor, or 17.10% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 26%, while the implied volatility in the call contract example is 25%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $127.06) to be 22%. 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 $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 2% 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 18th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 2% 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 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 18th 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 $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 2% 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 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 18th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 18th 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 $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 2% 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 18th expiration. |
31838.0 | 2022-01-19 00:00:00 UTC | Analysts Forecast 10% Gains Ahead For The Holdings of VTV | ABT | https://www.nasdaq.com/articles/analysts-forecast-10-gains-ahead-for-the-holdings-of-vtv | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Value ETF (Symbol: VTV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $161.95 per unit.
With VTV trading at a recent price near $147.78 per unit, that means that analysts see 9.59% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VTV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Crown Holdings Inc (Symbol: CCK), and Simon Property Group, Inc. (Symbol: SPG). Although ABT has traded at a recent price of $126.57/share, the average analyst target is 10.87% higher at $140.33/share. Similarly, CCK has 10.68% upside from the recent share price of $112.87 if the average analyst target price of $124.93/share is reached, and analysts on average are expecting SPG to reach a target price of $169.50/share, which is 10.14% above the recent price of $153.89. Below is a twelve month price history chart comparing the stock performance of ABT, CCK, and SPG:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard Value ETF VTV $147.78 $161.95 9.59%
Abbott Laboratories ABT $126.57 $140.33 10.87%
Crown Holdings Inc CCK $112.87 $124.93 10.68%
Simon Property Group, Inc. SPG $153.89 $169.50 10.14%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although ABT has traded at a recent price of $126.57/share, the average analyst target is 10.87% higher at $140.33/share. Vanguard Value ETF VTV $147.78 $161.95 9.59% Abbott Laboratories ABT $126.57 $140.33 10.87% Crown Holdings Inc CCK $112.87 $124.93 10.68% Simon Property Group, Inc. SPG $153.89 $169.50 10.14% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VTV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Crown Holdings Inc (Symbol: CCK), and Simon Property Group, Inc. (Symbol: SPG). | Three of VTV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Crown Holdings Inc (Symbol: CCK), and Simon Property Group, Inc. (Symbol: SPG). Vanguard Value ETF VTV $147.78 $161.95 9.59% Abbott Laboratories ABT $126.57 $140.33 10.87% Crown Holdings Inc CCK $112.87 $124.93 10.68% Simon Property Group, Inc. SPG $153.89 $169.50 10.14% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although ABT has traded at a recent price of $126.57/share, the average analyst target is 10.87% higher at $140.33/share. | Three of VTV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Crown Holdings Inc (Symbol: CCK), and Simon Property Group, Inc. (Symbol: SPG). Although ABT has traded at a recent price of $126.57/share, the average analyst target is 10.87% higher at $140.33/share. Below is a twelve month price history chart comparing the stock performance of ABT, CCK, and SPG: Below is a summary table of the current analyst target prices discussed above: | Vanguard Value ETF VTV $147.78 $161.95 9.59% Abbott Laboratories ABT $126.57 $140.33 10.87% Crown Holdings Inc CCK $112.87 $124.93 10.68% Simon Property Group, Inc. SPG $153.89 $169.50 10.14% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VTV's underlying holdings with notable upside to their analyst target prices are Abbott Laboratories (Symbol: ABT), Crown Holdings Inc (Symbol: CCK), and Simon Property Group, Inc. (Symbol: SPG). Although ABT has traded at a recent price of $126.57/share, the average analyst target is 10.87% higher at $140.33/share. |
31839.0 | 2022-01-19 00:00:00 UTC | 3 Dividend Stocks to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-and-hold-forever | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividends are an important factor for many investors. The quarterly and annual payouts to shareholders can have a big impact on a portfolio’s growth over time. Dividend stocks can also serve as an income stream to people in retirement.
For this reason, many investors seek out stocks that have high dividend yields.
Even some of the most successful and richest investors are focused on dividend payments. Warren Buffett, the Oracle of Omaha himself, is a notorious dividend collector. Consider that in 2021 Buffett collected $672 million in dividend payments from the 400 million shares of Coca-Cola (NYSE:KO) that he owns and you get an idea of the impact dividends can have and why certain investors appreciate and rely on them.
7 of the Top-Rated Pharmaceutical Stocks for Q1
Here are three dividend stocks for investors to buy and hold forever.
AbbVie (NYSE:ABBV)
Kroger (NYSE:KR)
Chevron (NYSE:CVX)
Dividend Stocks to Buy: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself.
However, AbbVie also pays a healthy 4.2% dividend yield and has grown its dividend at annualized rate of 18% over the past five years. That should put AbbVie on the radar of any investor looking for strong dividend payments in addition to share price appreciation. And, with it trading at about 10x its trailing 12 month free cash flow, AbbVie is a value investor’s dream.
If there’s one drawback to investing in ABBV stock it is that the company is going to lose the patent exclusivity on its blockbuster medication Humira that is used to treat inflammatory bowel conditions, namely Crohn’s disease. Sales of Humira accounted for a third of AbbVie’s $14.4 billion in revenue during the third quarter of 2021, so the patent expiration in 2023 is going to be a big blow to the company’s finances and valuation moving forward.
AbbVie has been working to increase sales of its other drugs, such as Rinvoq and Skyrizi, forecasting that they could combine for annual sales of $15 billion by 2025, which would help to offset any losses from Humira.
Kroger (KR)
KR) store" width="300" height="169">
Source: Jonathan Weiss / Shutterstock.com
Supermarket operator Kroger is another company that continues to deliver outsized gains to shareholders. In the past 12 months, KR stock has advanced 24% to just under $50 a share. The stock rallied nearly 10% in the last month after the company announced a new $1 billion share buyback program.
Additionally, the company maintains a decent 7% dividend yield that management is committed to and plans to grow in coming years. The combination of share growth, stock buybacks and dividend payments provides a lot of value to investors and makes Kroger a great option for any portfolio.
In terms of its operations, Kroger remains focused on growing its digital operations, which have accelerated 103% over the last two years, and which the company expects will double again by 2023. Additionally, Kroger is growing its advertising business that is contributing more to the company’s bottom line and beefing up its logistics capabilities by adding new grocery fulfillment centers and expanding its delivery network across the U.S.
Last fall, Kroger announced the opening of two new fulfillment centers in California and one in North Carolina, as well as a new “delivery spoke” situated in Indiana. Kroger is a company on the move.
Dividend Stocks to Buy: Chevron (CVX)
Source: LesPalenik / Shutterstock.com
Energy stocks are hot right now, and shares of Chevron have been marching higher as a result. CVX stock is up 31% over the past six months, including a 13% gain in the last 30 days.
While the gain in the stock’s price has been great, Chevron has the added bonus of providing shareholders with a hefty dividend yield of 4.1%, which equates to a quarterly dividend payout of $1.34 per share and an annual total of $5.36 per share. And the company has increased its dividend payment for 34 consecutive years. While investors love the dividend payout, they also like that Chevron is an integrated oil producer, meaning it explores, extracts and refines the commodity.
With oil price holding steady above $80 a barrel, now is a good time to take a position in Chevron. Other reasons to be bullish on the San Ramon, California-based company include that management recently raised their annual share repurchase target to $3 billion to $5 billion of stock from a previous target of $2 billion to $3 billion.
Chevron is also efficiently run and has managed to lower its operating costs in recent years despite challenges posed by the pandemic. If that weren’t enough, Chevron has also committed to spend $10 billion through 2028 to lower the carbon intensity of its worldwide operations.
On the date of publication, Joel Baglole 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 3 Dividend Stocks to Buy and Hold Forever 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. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. If there’s one drawback to investing in ABBV stock it is that the company is going to lose the patent exclusivity on its blockbuster medication Humira that is used to treat inflammatory bowel conditions, namely Crohn’s disease. Sales of Humira accounted for a third of AbbVie’s $14.4 billion in revenue during the third quarter of 2021, so the patent expiration in 2023 is going to be a big blow to the company’s finances and valuation moving forward. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. The combination of share growth, stock buybacks and dividend payments provides a lot of value to investors and makes Kroger a great option for any portfolio. Other reasons to be bullish on the San Ramon, California-based company include that management recently raised their annual share repurchase target to $3 billion to $5 billion of stock from a previous target of $2 billion to $3 billion. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. Dividend Stocks to Buy: Chevron (CVX) Source: LesPalenik / Shutterstock.com Energy stocks are hot right now, and shares of Chevron have been marching higher as a result. While the gain in the stock’s price has been great, Chevron has the added bonus of providing shareholders with a hefty dividend yield of 4.1%, which equates to a quarterly dividend payout of $1.34 per share and an annual total of $5.36 per share. | AbbVie (NYSE:ABBV) Kroger (NYSE:KR) Chevron (NYSE:CVX) Dividend Stocks to Buy: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharmaceutical manufacturer AbbVie has been a winner since it was spun off from Abbott Laboratories (NYSE:ABT) in 2013. 7 of the Top-Rated Pharmaceutical Stocks for Q1 Here are three dividend stocks for investors to buy and hold forever. In its nine years as a public company, ABBV stock has delivered a 300% return to shareholders, which is great in and of itself. |
31840.0 | 2022-01-18 00:00:00 UTC | Abbott's (ABT) Organic Base Sales Grow Amid COVID Case Surge | ABT | https://www.nasdaq.com/articles/abbotts-abt-organic-base-sales-grow-amid-covid-case-surge | 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). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has gained 21.5% against the industry’s 7.4% fall.
Abbott posted better-than-expected earnings and revenue numbers for the third quarter of 2021. Overall, year-over-year improvements were robust. Excluding COVID-19 testing-related sales, which totaled $1.9 billion in the quarter, organic sales increased 12% year over year. Even though COVID-19 case rates surged in the United States and other geographies during the third quarter, the company registered 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.
In the third 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. Sales of Pedialyte, the company’s market-leading rehydration brand, once again grew in strong double digits, driven by the solid market uptake of several recently launched new products as well as investments in direct consumer promotion. In Adult Nutrition, there was mid-teens growth internationally on strong demand for Ensure and Glucerna brands, including new users entering these categories and existing customers increasing their usage.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
Within Diagnostics, sales increased over 45%, led by growing demand for Abbott’s portfolio of COVID-19 tests as well as improvement in the base business. During the quarter, as the Delta variant spread and COVID cases surged, particularly in the United States, demand for testing, especially rapid tests increased significantly. Within EPD, third-quarter sales grew over 15% year over year, led by double-digit growth in China, Russia and India, which led to overall sales growth of 18% in key emerging markets.
Abbott has a consistent record of paying dividends with five-year annualized dividend growth being 12.72%.
On the flip side, with a spike in new COVID-19 case counts through the third quarter, Abbott noted modest impacts in its base business. More specifically, some softness was seen as the Delta variant spread and new cases increased in the United States, particularly more in August and throughout September. This led to a slowdown in the company’s hospital base business in certain areas.
Further, Abbott’s Neuromodulation arm reported an 8.3% year-over-year decline on an organic basis in the third quarter. Abbott noted that as the business is elective, it is having a hard time in terms of recovery amid coronavirus resurgence. The company currently is not much hopeful about a rebound in the fourth quarter within this business.
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 that investors can consider are AMN Healthcare Services, Inc. AMN, Apollo Endosurgery, Inc. APEN and Laboratory Corporation of America Holdings LH.
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 66.1% versus the 54.9% industry decline.
Apollo Endosurgery, carrying a Zacks Rank #1, has a long-term earnings growth rate of 7%. The company‘s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.
Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 125.6% compared with the industry’s 1.2% growth.
Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently sports a Zacks Rank #1.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks 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
Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Apollo Endosurgery, Inc. (APEN): 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 third 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 Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote Within Diagnostics, sales increased over 45%, led by growing demand for Abbott’s portfolio of COVID-19 tests as well as improvement in the base business. | 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 third 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 third quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. |
31841.0 | 2022-01-18 00:00:00 UTC | Will Abbott Laboratories Be a Trillion-Dollar Stock by 2035? | ABT | https://www.nasdaq.com/articles/will-abbott-laboratories-be-a-trillion-dollar-stock-by-2035 | nan | nan | In the unlikely event that someone's never heard of it, Abbott Laboratories (NYSE: ABT) is one of the world's largest and longest-operating healthcare companies, weighing in at a market cap of $237.6 billion. With its gargantuan portfolio of products ranging from diagnostic tests to medical nutrition, medical devices, and pharmaceuticals, it has plenty of avenues to pursue for future growth.
But does the company have what it takes to grow by more than 320% over the next 12 years to reach a market cap of $1 trillion by 2035? In my view, it's a long shot, though I believe that such an expansion is possible, in theory. Let's do some quick calculations to see how.
Image source: Getty Images.
Expect gains to continue accumulating
The biggest factor in Abbott's favor is its long history of plodding forward with its earnings despite varying economic and competitive environments. Global healthcare systems will need its products no matter what happens, and that isn't going to change anytime soon.
Abbott's trailing net income is $7.2 billion at the time of writing. Ten years ago, in 2011, its annual net income was $4.7 billion, meaning that its earnings grew by a compound annual growth rate (CAGR) of only 4.4% in each of the years between then and now. That's not too surprising, as massive healthcare companies tend to have a harder time growing over time than their smaller counterparts.
If we assume that the company will be able to sustain this slow growth rate through 2035, it'll end up with around $12.6 billion in net income. Right now, Abbott's trailing price-to-earnings (P/E) ratio stands at 33.34. Therefore, if we multiply the P/E multiple by the net income, we can calculate that Abbott Labs will have a market cap of $420.6 billion in 2035, which is nowhere close to our target of $1 trillion.
This estimate assumes that the stock's valuation won't change, however. Depending on the macroeconomic environment and the company's planned growth initiatives, it's entirely possible that the market will value Abbott Labs differently than it does today.
At the end of 2018, its P/E multiple was as high as 160.73, and in late 2016 it was around 58 -- that is quite a large range. If Abbott's P/E rises to 80 and stays there while its growth rate remains the same, its market cap will be just over $1 trillion in 2035. Though management would likely need to announce plans to expand into a new revenue vertical or something similar to make such a large impact on the business' valuation, the fact that its multiple has regularly been much higher than it is right now means that the door to reaching $1 trillion is still very much open.
Coronavirus testing revenue won't be around forever
The trouble with banking on Abbott's valuation to rise through the next decade and beyond is that its latest and greatest driver of new earnings, rapid coronavirus diagnostic tests, won't be as relevant moving forward as it has been since 2020.
In the third quarter of 2021, diagnostic test revenue grew by 48.2% on a reported basis, the vast majority of which was attributable to coronavirus tests. As the pandemic shifts toward endemicity and vaccine technology improves, demand for tests will likely fall off sharply. Aside from the prospect of actual shrinking earnings as that occurs, it'll mean that the company will have to push a significant number of new products to keep growing at the same steady rate as it has.
So, receding test revenue could potentially offset new growth initiatives that could drive Abbott's valuation higher. In a nutshell, investors shouldn't be banking on the company's market cap to hit $1 trillion before 2035, even if the stock will almost certainly be worth a lot more than it is now.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Alex Carchidi 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. | In the unlikely event that someone's never heard of it, Abbott Laboratories (NYSE: ABT) is one of the world's largest and longest-operating healthcare companies, weighing in at a market cap of $237.6 billion. Expect gains to continue accumulating The biggest factor in Abbott's favor is its long history of plodding forward with its earnings despite varying economic and competitive environments. Though management would likely need to announce plans to expand into a new revenue vertical or something similar to make such a large impact on the business' valuation, the fact that its multiple has regularly been much higher than it is right now means that the door to reaching $1 trillion is still very much open. | In the unlikely event that someone's never heard of it, Abbott Laboratories (NYSE: ABT) is one of the world's largest and longest-operating healthcare companies, weighing in at a market cap of $237.6 billion. Ten years ago, in 2011, its annual net income was $4.7 billion, meaning that its earnings grew by a compound annual growth rate (CAGR) of only 4.4% in each of the years between then and now. Therefore, if we multiply the P/E multiple by the net income, we can calculate that Abbott Labs will have a market cap of $420.6 billion in 2035, which is nowhere close to our target of $1 trillion. | In the unlikely event that someone's never heard of it, Abbott Laboratories (NYSE: ABT) is one of the world's largest and longest-operating healthcare companies, weighing in at a market cap of $237.6 billion. Therefore, if we multiply the P/E multiple by the net income, we can calculate that Abbott Labs will have a market cap of $420.6 billion in 2035, which is nowhere close to our target of $1 trillion. Coronavirus testing revenue won't be around forever The trouble with banking on Abbott's valuation to rise through the next decade and beyond is that its latest and greatest driver of new earnings, rapid coronavirus diagnostic tests, won't be as relevant moving forward as it has been since 2020. | In the unlikely event that someone's never heard of it, Abbott Laboratories (NYSE: ABT) is one of the world's largest and longest-operating healthcare companies, weighing in at a market cap of $237.6 billion. But does the company have what it takes to grow by more than 320% over the next 12 years to reach a market cap of $1 trillion by 2035? Therefore, if we multiply the P/E multiple by the net income, we can calculate that Abbott Labs will have a market cap of $420.6 billion in 2035, which is nowhere close to our target of $1 trillion. |
31842.0 | 2022-01-16 00:00:00 UTC | Will Demand for Rapid COVID-19 Tests Help Abbott Laboratories Beat the Market in 2022? | ABT | https://www.nasdaq.com/articles/will-demand-for-rapid-covid-19-tests-help-abbott-laboratories-beat-the-market-in-2022 | nan | nan | If you've walked around your local pharmacy recently, you know that at-home coronavirus testing kits are hard to come by. In particular, Abbott Laboratories (NYSE: ABT) makes BinaxNOW kits, which are the most popular rapid coronavirus antigen diagnostic test in the U.S.
But despite strong sales throughout the pandemic, rapid testing has been a somewhat fickle driver of growth for shareholders. Though Abbott's total return has grown by more than 54% since January of 2020 in comparison to the market's growth of around 49%, its performance in the last 12 months has lagged the market. Are things different this time as a result of the omicron variant wave, or is Abbott on track to disappoint?
Image source: Getty Images.
Recent testing surges haven't always been enough to outperform the market
Coronavirus rapid testing revenue has been all over the place, appearing to ebb and flow based on the public's perceptions about where the pandemic is headed.
In the third quarter of 2021, Abbott reported that its rapid coronavirus diagnostics segment yielded $1.6 billion in revenue, making it a significant portion of the company's $10.92 billion in total income. Still, in the spring and early summer of 2021, Abbott Labs started to scale down its test output in anticipation of newly released vaccines bringing a prompt end to the pandemic. It laid off workers in test manufacturing centers and trimmed some of its contracts with suppliers.
For the sake of comparison, in Q1 2021, it sold $1.8 billion worth of rapid tests, and in Q2, those same testing platforms only brought in $1 billion. So, it looks like even in the heyday of test revenue in 2021, sales of rapid test kits weren't enough to power outperformance.
^SPX data by YCharts
2022 might be a different ball game for rapid testing
With the rise of the omicron variant and increasing popularity of rapid antigen testing, this year seems like it might be decisively favorable for Abbott Labs' stock.
Earlier this month, the U.S. registered a new all-time high for the number of daily tests administered, smashing past the 3 million mark. While that number only accounts for tests reported via healthcare providers and not at-home rapid tests like BinaxNOW, it's clear that at-home rapid testing is also soaring like never before.
In the last three months, the run-up in at-home testing before the winter surge and the appearance of the omicron variant have helped the stock to expand at nearly double the total return of the S&P 500. Abbott has already committed to increasing its test manufacturing capacity once again. And there are a few reasons to believe that there's more good news to come.
Government programs are providing significant fuel for new at-home testing demand. As of Jan. 15, health insurance providers will be obligated to reimburse consumers for the purchase of up to eight rapid coronavirus diagnostic tests per month. That means Abbott is all but guaranteed to see an influx of purchases, as people will in theory be more likely to buy tests if they know that they'll get reimbursed down the line.
At the same time, the beneficial impact of reimbursable tests is dramatically limited by the unfortunate fact that Abbott's tests and similar products are flying off the shelves, leaving them hard to find. It's highly likely that distribution bottlenecks are crimping the amount of revenue that Abbott and other diagnostic test makers are able to realize, at least for the moment.
Shareholders can take heart that many communities have been purchasing millions of rapid test kits and distributing them for free at schools and libraries, independent of insurance and the supply offered by retail outlets. Likewise, the federal government plans to purchase and distribute at least 500 million rapid tests for free upon request, starting toward the end of January.
What does the future hold?
So distribution issues aside, Abbott can likely expect a few large orders to hit its books in the next few months. The definitive factor is whether rapid testing will continue to be as popular once the omicron wave subsides.
If people keep buying rapid tests on an ongoing basis like they have been, Abbott will continue to beat the market, perhaps for the rest of the year. On the other hand, if interest in testing plummets like it has with other waves, shareholders might be wishing they had invested in an index fund or other healthcare stocks once again by the time 2023 rolls around.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Alex Carchidi 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. | In particular, Abbott Laboratories (NYSE: ABT) makes BinaxNOW kits, which are the most popular rapid coronavirus antigen diagnostic test in the U.S. Still, in the spring and early summer of 2021, Abbott Labs started to scale down its test output in anticipation of newly released vaccines bringing a prompt end to the pandemic. In the last three months, the run-up in at-home testing before the winter surge and the appearance of the omicron variant have helped the stock to expand at nearly double the total return of the S&P 500. | In particular, Abbott Laboratories (NYSE: ABT) makes BinaxNOW kits, which are the most popular rapid coronavirus antigen diagnostic test in the U.S. ^SPX data by YCharts 2022 might be a different ball game for rapid testing With the rise of the omicron variant and increasing popularity of rapid antigen testing, this year seems like it might be decisively favorable for Abbott Labs' stock. While that number only accounts for tests reported via healthcare providers and not at-home rapid tests like BinaxNOW, it's clear that at-home rapid testing is also soaring like never before. | In particular, Abbott Laboratories (NYSE: ABT) makes BinaxNOW kits, which are the most popular rapid coronavirus antigen diagnostic test in the U.S. Recent testing surges haven't always been enough to outperform the market Coronavirus rapid testing revenue has been all over the place, appearing to ebb and flow based on the public's perceptions about where the pandemic is headed. ^SPX data by YCharts 2022 might be a different ball game for rapid testing With the rise of the omicron variant and increasing popularity of rapid antigen testing, this year seems like it might be decisively favorable for Abbott Labs' stock. | In particular, Abbott Laboratories (NYSE: ABT) makes BinaxNOW kits, which are the most popular rapid coronavirus antigen diagnostic test in the U.S. Likewise, the federal government plans to purchase and distribute at least 500 million rapid tests for free upon request, starting toward the end of January. That's right -- they think these 10 stocks are even better buys. |
31843.0 | 2022-01-14 00:00:00 UTC | iShares Russell 1000 Value ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/ishares-russell-1000-value-etf-experiences-big-outflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Value ETF (Symbol: IWD) where we have detected an approximate $628.4 million dollar outflow -- that's a 1.0% decrease week over week (from 354,900,000 to 351,200,000). Among the largest underlying components of IWD, in trading today AT&T Inc (Symbol: T) is off about 0.3%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and Boeing Co. (Symbol: BA) is lower by about 0.7%. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average:
Looking at the chart above, IWD's low point in its 52 week range is $134.90 per share, with $171.42 as the 52 week high point — that compares with a last trade of $168.88. 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 IWD, in trading today AT&T Inc (Symbol: T) is off about 0.3%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and Boeing Co. (Symbol: BA) is lower by about 0.7%. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $134.90 per share, with $171.42 as the 52 week high point — that compares with a last trade of $168.88. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWD, in trading today AT&T Inc (Symbol: T) is off about 0.3%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and Boeing Co. (Symbol: BA) is lower by about 0.7%. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $134.90 per share, with $171.42 as the 52 week high point — that compares with a last trade of $168.88. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IWD, in trading today AT&T Inc (Symbol: T) is off about 0.3%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and Boeing Co. (Symbol: BA) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Value ETF (Symbol: IWD) where we have detected an approximate $628.4 million dollar outflow -- that's a 1.0% decrease week over week (from 354,900,000 to 351,200,000). For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $134.90 per share, with $171.42 as the 52 week high point — that compares with a last trade of $168.88. | Among the largest underlying components of IWD, in trading today AT&T Inc (Symbol: T) is off about 0.3%, Abbott Laboratories (Symbol: ABT) is down about 1.1%, and Boeing Co. (Symbol: BA) is lower by about 0.7%. For a complete list of holdings, visit the IWD Holdings page » The chart below shows the one year price performance of IWD, versus its 200 day moving average: Looking at the chart above, IWD's low point in its 52 week range is $134.90 per share, with $171.42 as the 52 week high point — that compares with a last trade of $168.88. 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). |
31844.0 | 2022-01-14 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABT | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-4 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24%
Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08%
AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91%
McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69%
Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93%
AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13%
McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64%
Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86%
AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04%
McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on ABBV — FREE
Get the latest Zacks research report on MCD — FREE
Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. |
31845.0 | 2022-01-14 00:00:00 UTC | Abbott (ABT) Gets FDA Nod for New Cardiac Mapping System | ABT | https://www.nasdaq.com/articles/abbott-abt-gets-fda-nod-for-new-cardiac-mapping-system | nan | nan | Abbott Laboratories ABT recently announced the receipt of the 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.
More on EnSite X EP System
The EnSite X EP system creates highly detailed three-dimensional maps of the heart to aid physicians in identifying and treating areas of the heart where abnormal rhythms originate. Additionally, the system includes Abbott's proprietary EnSite OT, which utilizes the Advisor HD Grid Catheter to provide true electrograms (EGMs) regardless of how the catheter is oriented within the heart.
Further, the EnSite X EP System with EnSite OT can map 1 million points in the heart and offers a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise.
In designing the EnSite X System with EnSite OT, Abbott designed the platform to be upgradable via new software to ensure access to the latest technology without the need for entirely new systems. In addition, EnSite X EP System with EnSite OT is the first mapping system that enables physicians to select between two methods of cardiac visualization.
Significance of the System
It is worth mentioning that more patients than ever before are benefitting from ablation to treat abnormal heart rhythms and Abbott's new EnSite X System with EnSite OT, leveraging Advisor HD Grid catheter represents the newest innovation available to support the treatment of complex and challenging cardiac arrhythmias.
Interestingly, Abbott’s new system supports safe and effective treatment of cardiac arrhythmias and enhances the accuracy of maps, allowing for a clearer understanding of what is going on in the heart and what areas need to be targeted with ablation to treat arrhythmias.
Image Source: Zacks Investment Research
The EnSite X System with EnSite OT improves the utility of the unique Advisor HD Grid catheter. It enables doctors to quickly and accurately create real-time, stable, three-dimensional models of the heart. These models provide a way to accurately identify areas causing problems, enabling physicians to treat abnormal heart rhythms better and preserve healthy tissue.
Industry Prospects
Per a report by Grand View Research, the global arrhythmia monitoring devices market size is expected to reach $8.41 billion in 2025, with a CAGR of 6.8%. Continuous R&D activities in the field of cardiac monitoring are driving the market.
Recent Developments
In January 2022, Abbott received a new FDA approval with its Proclaim XR spinal cord stimulation system (SCS) for people with chronic pain. The regulatory body has approved an expanded magnetic resonance imaging (MRI) compatibility for the Proclaim XR platform with Octrode leads.
In November 2021, Abbott announced new, late-breaking data from the Leadless II IDE study assessing Abbott's investigational Aveir leadless pacemaker in patients with certain abnormal heart rhythms. The study findings were presented in a late-breaking session at the annual Scientific Sessions of the Asia Pacific Heart Rhythm Society (APHRS).
Price Performance
Shares of the company have gained 17.8% in a year against the industry's decline of 8.3%.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Apollo Endosurgery, Inc. APEN and Laboratory Corporation of America Holdings LH.
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 66.1% versus the 54.9% industry decline.
Apollo Endosurgery, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 7%. The company‘s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.
Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 125.6% compared with the industry’s 1.2% growth.
Laboratory Corp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently sports a Zacks Rank #1.
Laboratory Corp’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Apollo Endosurgery, Inc. (APEN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT recently announced the receipt of the FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology (OT). Abbott Laboratories (ABT): Free Stock Analysis Report These models provide a way to accurately identify areas causing problems, enabling physicians to treat abnormal heart rhythms better and preserve healthy tissue. | Abbott Laboratories ABT recently announced the receipt of the FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology (OT). Abbott Laboratories (ABT): Free Stock Analysis Report More on EnSite X EP System The EnSite X EP system creates highly detailed three-dimensional maps of the heart to aid physicians in identifying and treating areas of the heart where abnormal rhythms originate. | Abbott Laboratories ABT recently announced the receipt of the FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology (OT). Abbott Laboratories (ABT): Free Stock Analysis Report More on EnSite X EP System The EnSite X EP system creates highly detailed three-dimensional maps of the heart to aid physicians in identifying and treating areas of the heart where abnormal rhythms originate. | Abbott Laboratories ABT recently announced the receipt of the FDA clearance for the EnSite X EP System with EnSite Omnipolar Technology (OT). Abbott Laboratories (ABT): Free Stock Analysis Report More on EnSite X EP System The EnSite X EP system creates highly detailed three-dimensional maps of the heart to aid physicians in identifying and treating areas of the heart where abnormal rhythms originate. |
31846.0 | 2022-01-13 00:00:00 UTC | 3 Reasons to Buy This Newly Minted Dividend King | ABT | https://www.nasdaq.com/articles/3-reasons-to-buy-this-newly-minted-dividend-king | nan | nan | Last month, the diversified healthcare company Abbott Laboratories (NYSE: ABT) raised its quarterly dividend 4.4% from $0.45 to $0.47 per share. This marked the 50th consecutive year that the stock has increased its payout, which means that the stock will become a Dividend King in the likely event that it sticks with this dividend throughout the year.
But there are also other reasons to buy Abbott. Let's take a look at three factors that make the stock a buy.
Image source: Getty Images.
A booming business
Abbott is a well-balanced company that makes money from the following four segments:
Diagnostics (35.3% of year-to-date revenue).
Medical devices (33.6% of year-to-date sales).
Nutrition (19.8% of year-to-date revenue from products such as Ensure and Pedialyte).
Established pharmaceuticals (11.1% of year-to-date sales from branded generic drugs in international markets).
Since the introduction of its COVID-19 testing kit, Abbott's diagnostics segment has surpassed the medical devices segment as the largest contributor to the company's revenue. But what makes Abbott a particularly impressive company is that every segment recorded at least high-single-digit to upper-double-digit growth in revenue through the nine months ended 2021. This explains how Abbott was able to grow its sales 32.2% year over year against the year-ago period to $31.6 billion year to date.
Abbott was able to post $3.89 in year-to-date non-GAAP (adjusted) diluted earnings per share (EPS), representing a 76.8% surge over the year-ago period. This was due to Abbott's higher revenue base and a 570-basis point expansion in its non-GAAP net margin to 22.2%.
As a result of Abbott's solid business performance in the nine months of 2021 reported thus far, the company raised its guidance for the year from the previous midpoint of $4.40. Abbott now expects to produce $5.05 in midpoint adjusted diluted EPS in 2021, which is equivalent to a 38.4% growth rate over the 2020 adjusted diluted EPS base.
Considering Abbott is known for consistent innovation throughout its businesses, analysts expect that the company's annual earnings growth will accelerate from 8% over the last five years to 13% in the five years ahead.
The payout should keep growing
Abbott seems to be a thriving business based on its growing sales and profitability. The second reason the stock looks like it could be a good buy for dividend growth investors has to do with its sustainable dividend.
The company has paid out $1.80 in dividends per share in 2021, which works out to a 35.6% dividend payout ratio considering the $5.05 in non-GAAP diluted EPS midpoint forecasted for the year. For context, this is moderately lower than even Dividend King Johnson & Johnson's (NYSE: JNJ) payout ratio that is set to be 42.8% in 2021.
This payout ratio gives Abbott the flexibility to grow its dividend in line with earnings for the foreseeable future, which should translate into at least high-single-digit dividend growth. Pairing this kind of dividend growth with the stock's market-beating 1.4% yield is an attractive combo.
While I was expecting a bigger increase in Abbott's payout last month, it's important to keep in mind that the stock raised its dividend by 25% in 2020. The bottom line is that Abbott looks to be set for nice dividend growth in the years to come.
A reasonably priced Dividend King
Over the last five decades, Abbott has proven itself as one of the highest-quality businesses in the world. But even with the best stocks, it's critical to not grossly overpay to maximize your starting dividend yield and total return potential. Fortunately, Abbott appears to be a reasonable value, even after a 29% run-up in its stock price last year.
At the current $136 share price, Abbott is trading at 26 times its trailing 12 months free cash flow per share of $5.20. This is slightly lower than the stock's 13-year median price to free cash flow of 26.5. Given that Abbott's fundamentals are arguably better than ever since it rolled out its COVID-19 tests, I believe there is room for the valuation multiple to go higher without the stock being overvalued. This makes Abbott a great stock for dividend growth investors to consider buying in 2022.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Kody Kester owns Abbott Laboratories and Johnson & Johnson. 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. | Last month, the diversified healthcare company Abbott Laboratories (NYSE: ABT) raised its quarterly dividend 4.4% from $0.45 to $0.47 per share. Abbott was able to post $3.89 in year-to-date non-GAAP (adjusted) diluted earnings per share (EPS), representing a 76.8% surge over the year-ago period. As a result of Abbott's solid business performance in the nine months of 2021 reported thus far, the company raised its guidance for the year from the previous midpoint of $4.40. | Last month, the diversified healthcare company Abbott Laboratories (NYSE: ABT) raised its quarterly dividend 4.4% from $0.45 to $0.47 per share. Abbott was able to post $3.89 in year-to-date non-GAAP (adjusted) diluted earnings per share (EPS), representing a 76.8% surge over the year-ago period. The company has paid out $1.80 in dividends per share in 2021, which works out to a 35.6% dividend payout ratio considering the $5.05 in non-GAAP diluted EPS midpoint forecasted for the year. | Last month, the diversified healthcare company Abbott Laboratories (NYSE: ABT) raised its quarterly dividend 4.4% from $0.45 to $0.47 per share. This marked the 50th consecutive year that the stock has increased its payout, which means that the stock will become a Dividend King in the likely event that it sticks with this dividend throughout the year. This makes Abbott a great stock for dividend growth investors to consider buying in 2022. | Last month, the diversified healthcare company Abbott Laboratories (NYSE: ABT) raised its quarterly dividend 4.4% from $0.45 to $0.47 per share. Medical devices (33.6% of year-to-date sales). The company has paid out $1.80 in dividends per share in 2021, which works out to a 35.6% dividend payout ratio considering the $5.05 in non-GAAP diluted EPS midpoint forecasted for the year. |
31847.0 | 2022-01-13 00:00:00 UTC | Should You Buy Boston Scientific Stock Over Its Industry Peer? | ABT | https://www.nasdaq.com/articles/should-you-buy-boston-scientific-stock-over-its-industry-peer | nan | nan | We think that Boston Scientific stock (NYSE: BSX) 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 5.3x trailing revenues compared to 4.4x for Medtronic. Even if we were to look at the P/EBIT ratio, BSX stock appears to be more expensively priced with 123x P/EBIT ratio, compared to 82x for MDT stock. This gap in valuation can be attributed to Boston Scientific’s better revenue growth, a trend likely to continue going forward as well, as we discuss in the sections below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Boston Scientific vs Medtronic: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Boston Scientific’s Revenue Growth Is Stronger
Boston Scientific’s sales have jumped from $8.4 billion in 2016 to $11.5 billion over the last twelve months, while Medtronic’s revenues have risen from $29.7 billion in fiscal 2017 to $31.8 billion over the last twelve months.
Also, Boston Scientific’s revenue growth of 13.5% over the last twelve month period is comparable with 14.1% growth for Medtronic. Both the companies have seen a rebound in sales over the recent quarters, after seeing lower sales in 2020 due to the impact of the pandemic.
Looking at a slightly longer time frame, both the companies have seen slower sales growth. That said, Boston Scientific’s last three-year revenue CAGR of 3.4% is better than 0.3% CAGR for Medtronic.
Looking forward, with economies now opening up, the demand for medical devices is likely to remain high in the near term, boding well for revenue growth of both the companies. Also, the launch of new devices will bolster the revenue growth.
Boston Scientific’s Left Atrial Appendage Closure (LAAC) device – Watchman – continues to gain market share driven by higher physician utilization rate for now, but it is expected to face increased competition from the likes of Abbott going forward. For Medtronic, there are high hopes from its most advanced insulin pump system – MiniMed 780G – to drive its diabetes products sales going forward. The product is yet to be approved in the U.S. Our Boston Scientific Revenue and Medtronic Revenue dashboards provides more insight on the companies’ revenues and segments.
Boston Scientific’s revenue is expected to grow at a faster pace compared to Medtronic. The table below summarizes our revenue expectation for BSX and MDT over the next three years, and points to a CAGR of 6.5% for Boston Scientific, compared to a CAGR of 2.1% for Medtronic.
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 impacted by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to pre-Covid revenue run rate, and beyond the recovery point, we apply average annual growth observed in the three years prior to Covid to simulate return to normal conditions. For companies registering positive revenue growth during Covid, we consider average annual growth prior to Covid with 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 5.3% over the last twelve month period is slightly better than 4.3% for Boston Scientific.
Furthermore, if we were to look at the recent margin growth, both of the companies have seen negative growth, with last twelve month vs last three year margin change at -3.5% for Boston Scientific, compared to a -12% change for Medtronic.
Looking at financial risk, Boston Scientific’s 15% debt as a percentage of equity is lower than 18% for Medtronic, while the latter’s 12% cash as a percentage of assets is higher than the 6% for Boston Scientific, implying that BSX has a better debt position, but MDT stock has a better cash position.
3. The Net of It All
We see that the revenue growth over the recent quarters has been similar for both the companies, while it has been stronger for Boston Scientific over the longer period. However, Medtronic is more profitable, it has better cash position, and it is trading at a comparatively lower valuation.
Despite that, looking at future prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe BSX is the better choice of the two. The table below summarizes our revenue and return expectation for BSX and MDT over the next three years, and points to an expected return of 18% for BSX over this period vs. just 7% for MDT, implying that investors are better off buying BSX over MDT, based on our dashboard – Boston Scientific vs Medtronic – which also provides more details on how we arrive at these numbers.
Note that Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in many geographies, including the U.S. and Europe, are higher than what they were a few months back. The concerns around Omicron have spooked the markets at large. If this recent large spike in Covid-19 cases from the new variant that we are witnessing now, results in a disruption in healthcare services, it is likely to impact the sales growth of both, Boston Scientific and Medtronic.
While BSX 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? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
BSX Return 0% 0% 96%
MDT Return 2% 2% 48%
S&P 500 Return -2% -2% 109%
Trefis MS Portfolio Return -5% -5% 273%
[1] Month-to-date and year-to-date as of 1/11/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Boston Scientific vs Medtronic: Which Stock Is A Better Bet? Boston Scientific’s Left Atrial Appendage Closure (LAAC) device – Watchman – continues to gain market share driven by higher physician utilization rate for now, but it is expected to face increased competition from the likes of Abbott going forward. Note that Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in many geographies, including the U.S. and Europe, are higher than what they were a few months back. | Boston Scientific’s Revenue Growth Is Stronger Boston Scientific’s sales have jumped from $8.4 billion in 2016 to $11.5 billion over the last twelve months, while Medtronic’s revenues have risen from $29.7 billion in fiscal 2017 to $31.8 billion over the last twelve months. For companies negatively impacted by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to pre-Covid revenue run rate, and beyond the recovery point, we apply average annual growth observed in the three years prior to Covid to simulate return to normal conditions. Furthermore, if we were to look at the recent margin growth, both of the companies have seen negative growth, with last twelve month vs last three year margin change at -3.5% for Boston Scientific, compared to a -12% change for Medtronic. | We think that Boston Scientific stock (NYSE: BSX) 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 5.3x trailing revenues compared to 4.4x for Medtronic. Boston Scientific’s Revenue Growth Is Stronger Boston Scientific’s sales have jumped from $8.4 billion in 2016 to $11.5 billion over the last twelve months, while Medtronic’s revenues have risen from $29.7 billion in fiscal 2017 to $31.8 billion over the last twelve months. The table below summarizes our revenue and return expectation for BSX and MDT over the next three years, and points to an expected return of 18% for BSX over this period vs. just 7% for MDT, implying that investors are better off buying BSX over MDT, based on our dashboard – Boston Scientific vs Medtronic – 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 Boston Scientific vs Medtronic: Which Stock Is A Better Bet? Also, Boston Scientific’s revenue growth of 13.5% over the last twelve month period is comparable with 14.1% growth for Medtronic. The table below summarizes our revenue and return expectation for BSX and MDT over the next three years, and points to an expected return of 18% for BSX over this period vs. just 7% for MDT, implying that investors are better off buying BSX over MDT, based on our dashboard – Boston Scientific vs Medtronic – which also provides more details on how we arrive at these numbers. |
31848.0 | 2022-01-12 00:00:00 UTC | Does Johnson & Johnson's Split Make Sense? | ABT | https://www.nasdaq.com/articles/does-johnson-johnsons-split-make-sense | nan | nan | Johnson & Johnson (NYSE: JNJ) has been in business for well over a century. Many were blindsided when the company announced late last year that it would be splitting its medical device and pharmaceutical businesses from its consumer health business. The split is set to close sometime in the next two years. In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss.
10 stocks we like better than Johnson & Johnson
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Rachel Warren: The next deal we're talking about is Johnson & Johnson. This isn't an acquisition. We talked about this on the show a few weeks back. But last month, the 135-year-old pharmaceutical giant Johnson & Johnson, announced that it would be splitting its business in two. This came as a huge surprise to I think just about everyone.
The company's current business contains three segments. It has a pharmaceutical business which has been its fastest growing, a medical device business, and a consumer health business.
Once the split goes into effect, Johnson & Johnson will be two publicly traded dividend paying entities. One of these entities will contain the pharmaceutical and medical devices businesses that will retain the Johnson & Johnson name. The second publicly traded business will be the consumer health business. We don't know yet what the name of that will be and the management structure and names for that new company.
Jason Hall: Has got to be better than Block. We know that.
Rachel Warren: It have to be. I mean, that's a low bar to start with but [laughs] I have faith that it's going to go up from there. The split is expected to take anywhere from 18-24 months to complete. The consumer health business, I find it interesting that this is the business that's not going to retain the name of Johnson & Johnson because I think that this is the one that most people think of when they think of Johnson & Johnson. Those brands like Tylenol, Motrin, Neutrogena that everyone uses. The pharmaceutical business features drugs across the range of medical concerns.
Everything from ones that treat cardiovascular ailments to vaccines and then of course, it's medical devices are used in a range of procedures. The idea here the company said is to fuel business growth in the words of management to enhance operational performance and strategic flexibility, unlock more value for stakeholders, the traditional explanation you would expect them to give. I think the thing here is that these businesses, they don't really rely on each other for growth.
The direction the consumer health business is going is really very different than where its pharmaceutical and medical devices are. I think it makes sense that maybe there would come a point where they would split it off.
There was some speculation that it was related to the ongoing litigation that Johnson & Johnson is facing regarding its talc cancer claims, which it essentially created a subsidiary, moved all the claims into that subsidiary and then filed that subsidiary for bankruptcy, but they have denied that.
We can only speculate there. Just as a final few points here, the pharmaceutical and medical devices segments are expected to generate revenue of about $77 billion this year alone. The consumer health segment is expected to generate revenue of about $15 billion. It's clear where that high area of growth lies and I think this split will enable both of the companies to grow at their own pace and succeed.
If you're currently invested in the company like I am and you stay invested through the split, the understanding we have now is you'll remain invested in both of those public companies.
The company had already announced the CEO change to replace its current CEO, Alex Gorsky, who's headed up the companies since 2012. The new CEO will be a man named Joaquin Duato. He takes over on January 3rd and he will head up the Johnson & Johnson company. As I mentioned before, we don't know yet who is going to head up the new consumer health business. I think this is a positive deal.
I think that it will enable both of those businesses to grow and to tap into different consumer bases. I think you have a lot of different customers for each. There's some overlap, but it's clear that these businesses have been going in different directions. I think the stock is a great dividend payer.
It has lagged the S&P 500's performance this year, it's up about 20% compared to the S&P 500's total return of about 30%. One to watch, it sounds like it's going to be a bit before it goes through, but I don't see any reason why it won't.
Jason Hall: To me Rachel, this reminds me of when Abbott split up back and it was 2013. It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. I guess they have some little bit of consumer stuff. But I was looking before the show and I saw that's gone swimmingly for investors.
Rachel Warren: Quite well, yes. [laughs]
Jason Hall: Yeah. Because it's allowed a little bit more focused on different segments by management. I think that's important because the resource allocation and focus is a little better.
Rachel Warren: Absolutely, yeah.
Travis Hoium: Well, this is a theme across the market, GE splitting up, I think these conglomerates and this is just only split into two, but this has been a theme in the last quarter and I think could be for the next year as companies like Jason said, start to focus on something that they do well and not trying to do a million things halfheartedly.
Toby Bordelon: It's certainly going to be interesting. I wonder about that, is 2022 going to be more acquisitions or more split-ups?
Lou Whiteman: Are there any left?
Toby Bordelon: There's a few--
Lou Whiteman: Oh there are?
Toby Bordelon: There's a few that on the tech side that I think would prefer not to split out. Maybe there will be some force split ups we'll see.
Jason Hall: Maybe shown the door as they say.
Lou Whiteman: Real quick on this, I think actually Toby and Travis, I think we talked about it on the show, but I think an under-appreciated part of this is the tech is making this possible.
A lot of the old-school argument for conglomerate or building was the back-office. The back-office is becoming so much cheaper with cloud software. HR as a function can be spread thinner now, and that old argument that you just need all of this back-office functions under one roof to save money.
It just doesn't hold as true anymore because that whole back-office has been automated and it is allowing for smaller, more nimble companies to be just as cost-competitive as the conglomerates on that HR finance, accounting, just the non-customer-facing side of it. I think that is a huge trend that's really under-appreciated in looking at all the splits.
Travis Hoium: To that point, I think that maybe the answer to Toby's question that I could see more tech acquisitions or mergers next year as we've talked about on a number of these already.
You try to put more software under one bundle as opposed to the hard goods in consumer products. Those maybe don't make as much sense together today as they did 20 or 30 years ago.
We may be seeing these old guard companies splitting up and these newer companies merging as they're trying to have a land grab in whatever space there in.
Jason Hall owns Block, Inc. Lou Whiteman has no position in any of the stocks mentioned. Rachel Warren owns AbbVie and Johnson & Johnson. Toby Bordelon owns Block, Inc. Travis Hoium owns Block, Inc. The Motley Fool owns and recommends Block, Inc. 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. | In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. The idea here the company said is to fuel business growth in the words of management to enhance operational performance and strategic flexibility, unlock more value for stakeholders, the traditional explanation you would expect them to give. It just doesn't hold as true anymore because that whole back-office has been automated and it is allowing for smaller, more nimble companies to be just as cost-competitive as the conglomerates on that HR finance, accounting, just the non-customer-facing side of it. | In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Rachel Warren: The next deal we're talking about is Johnson & Johnson. Toby Bordelon owns Block, Inc. Travis Hoium owns Block, Inc. | Many were blindsided when the company announced late last year that it would be splitting its medical device and pharmaceutical businesses from its consumer health business. But last month, the 135-year-old pharmaceutical giant Johnson & Johnson, announced that it would be splitting its business in two. The consumer health business, I find it interesting that this is the business that's not going to retain the name of Johnson & Johnson because I think that this is the one that most people think of when they think of Johnson & Johnson. | In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Rachel Warren: The next deal we're talking about is Johnson & Johnson. Lou Whiteman: Real quick on this, I think actually Toby and Travis, I think we talked about it on the show, but I think an under-appreciated part of this is the tech is making this possible. |
31849.0 | 2022-01-12 00:00:00 UTC | 2 No-Brainer Stocks to Invest $1,000 in Right Now | ABT | https://www.nasdaq.com/articles/2-no-brainer-stocks-to-invest-%241000-in-right-now | nan | nan | There are hundreds of publicly-traded companies on the market, and sometimes, it's hard to know which ones are worth your hard-earned money. Thankfully, there are clues that can help you make sound investment decisions. Here's one thing you can bet on: Investing in companies at the forefront of growing industries and that possess a competitive edge will pay rich dividends down the road.
Let's look at two companies that closely fit this description: Abbott Laboratories (NYSE: ABT) and Adyen N.V. (OTC: ADYE.Y). Here's why both of these stocks are excellent choices for investors.
Data by YCharts.
1. Abbott Laboratories
Abbott Laboratories is best known as a medical devices specialist -- and it is one of the most established leaders in this field. The company boasts a vast portfolio of products that are protected by patents. Abbott Laboratories' patents combined with its industry know-how in a highly regulated industry -- not to mention the name recognition it has earned throughout the years -- confer it a solid competitive edge.
But there is more to the story. Abbott Laboratories' business is highly diversified. It has three other operational segments: Nutritional products, diagnostics products, and established pharmaceuticals (which sells generic pharmaceuticals in emerging markets). In 2020, the company showed how much of an asset its diversified business is.
Even as its medical devices unit took a hit due to the coronavirus outbreak, Abbott Laboratories developed and marketed several COVID-19 diagnostic tests, which helped the healthcare giant smooth out the losses it experienced from decreased medical devices revenue. A recent surge in COVID-19 cases also led to increased sales of Abbott Laboratories' coronavirus diagnostics test.
In the third quarter, Abbott Laboratories' diagnostics segment's sales soared by 48.2% year over year to $3.9 billion, largely thanks to its coronavirus-related products. If the recent rise in COVID-19 cases continues, Abbott Laboratories will manage the storm just fine, as it did in 2020.
Image source: Getty Images.
The medical devices industry hasn't peaked. According to some estimates, the sector will expand at a compound annual growth rate (CAGR) of 5.2% through 2027. And there are several exciting opportunities Abbott Laboratories is looking to tap into.
Within its diabetes care segment, Abbott Laboratories' continuous glucose monitoring (CGM) device, the FreeStyle Libre, continues to make headway. During the third quarter, sales of the company's diabetes unit soared by 33% year over year to $1.1 billion. Sales of the FreeStyle Libre clocked in at almost $1 billion, and the company added 200,000 users during the period, bringing its total to over 3.5 million consumers worldwide.
The company's structural heart unit -- where it sells minimally invasive devices to treat various structural heart conditions -- is also growing. This segment's sales increased by 11% year over year to $392 million in the third quarter, led by such products as the MitraClip, the leading device for the treatment of mitral regurgitation, and others. For the third quarter, Abbott Laboratories' total sales came in at $10.9 billion, 23.4% higher than the year-ago period. The company's adjusted earnings per share grew by 43% year over year to $1.40.
Abbott Laboratories' ability to consistently deliver solid financial results thanks to its strong standing in the medical devices space is what makes it a no-brainer stock.
2. Adyen
Adyen is a fintech company based in the Netherlands that helps simplify the way merchants process payments. How useful are Adyen's services in a crowded playing field? When a customer wants to pay for goods or services using a credit card, be it online or in a traditional brick-and-mortar store, the transaction goes through several intermediaries -- a payment processor, a credit card network, and a risk management system -- before eventually making its way to the card issuer, typically a bank.
This multi-level system is complex enough. But for companies that do business and accept payments worldwide, it can become a clunky, fragmented mess that costs more than it should, since they have to work with multiple third parties depending on geographical area and the type of payments processed.
Adyen provides payment gateways, payment processing, risk management, and other services within a single platform. The company charges processing and settlement fees -- two segments that make up the bulk of the company's revenue.
Adyen's business benefits from high switching costs. For large multinational corporations, jumping ship from one payment platform to another can be very costly and result in severe business disruptions. This powerful competitive advantage helps explain why Adyen consistently keeps most of its customers.
Image source: Getty Images.
Financial results are booming for the company as well. In the first half of 2021, its revenue soared by 46% year over year to 445 million euros ($505.6 million), while its processed volume -- the total value of transactions processed through its platform -- jumped by 67% year over year to 216 billion euros ($245.4 billion).
Furthermore, Adyen's net income of 204.8 million euros ($232.7 million) slightly more than doubled compared to the year-ago period.
What's next for Adyen? The fintech industry's growth will be a powerful tailwind for the company. This market will clock in a CAGR of 13.7% through 2026. Adyen itself sees expansion into new geographical areas (it currently generates most of its revenue from Europe, followed by North America) as a potential avenue for growth.
Adding new customers to its portfolio while expanding the range of the services it offers existing clients, combined with the increase in online payment transactions, will all help Adyen solidify its spot as a fintech leader for many years to come.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool owns and recommends Adyen N.V. The Motley Fool recommends Adyen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at two companies that closely fit this description: Abbott Laboratories (NYSE: ABT) and Adyen N.V. (OTC: ADYE.Y). Here's one thing you can bet on: Investing in companies at the forefront of growing industries and that possess a competitive edge will pay rich dividends down the road. Abbott Laboratories' ability to consistently deliver solid financial results thanks to its strong standing in the medical devices space is what makes it a no-brainer stock. | Let's look at two companies that closely fit this description: Abbott Laboratories (NYSE: ABT) and Adyen N.V. (OTC: ADYE.Y). A recent surge in COVID-19 cases also led to increased sales of Abbott Laboratories' coronavirus diagnostics test. In the third quarter, Abbott Laboratories' diagnostics segment's sales soared by 48.2% year over year to $3.9 billion, largely thanks to its coronavirus-related products. | Let's look at two companies that closely fit this description: Abbott Laboratories (NYSE: ABT) and Adyen N.V. (OTC: ADYE.Y). Abbott Laboratories Abbott Laboratories is best known as a medical devices specialist -- and it is one of the most established leaders in this field. In the third quarter, Abbott Laboratories' diagnostics segment's sales soared by 48.2% year over year to $3.9 billion, largely thanks to its coronavirus-related products. | Let's look at two companies that closely fit this description: Abbott Laboratories (NYSE: ABT) and Adyen N.V. (OTC: ADYE.Y). Abbott Laboratories Abbott Laboratories is best known as a medical devices specialist -- and it is one of the most established leaders in this field. In the first half of 2021, its revenue soared by 46% year over year to 445 million euros ($505.6 million), while its processed volume -- the total value of transactions processed through its platform -- jumped by 67% year over year to 216 billion euros ($245.4 billion). |
31850.0 | 2022-01-12 00:00:00 UTC | Abbott Receives FDA Clearance For Cardiac Mapping System | ABT | https://www.nasdaq.com/articles/abbott-receives-fda-clearance-for-cardiac-mapping-system | nan | nan | (RTTNews) - Abbott (ABT) said that it has received clearance from the U.S. Food and Drug Administration for the EnSite X EP System with EnSite Omnipolar Technology, a new cardiac mapping platform available in the U.S. and across Europe that is designed to help physicians better treat abnormal heart rhythms, also known as cardiac arrhythmias.
The company noted that the system creates three-dimensional maps of the heart to help physicians identify and then treat areas of the heart where abnormal rhythms originate.
EnSite X EP System with EnSite Omnipolar Technology provides a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise.
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 it has received clearance from the U.S. Food and Drug Administration for the EnSite X EP System with EnSite Omnipolar Technology, a new cardiac mapping platform available in the U.S. and across Europe that is designed to help physicians better treat abnormal heart rhythms, also known as cardiac arrhythmias. The company noted that the system creates three-dimensional maps of the heart to help physicians identify and then treat areas of the heart where abnormal rhythms originate. EnSite X EP System with EnSite Omnipolar Technology provides a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise. | (RTTNews) - Abbott (ABT) said that it has received clearance from the U.S. Food and Drug Administration for the EnSite X EP System with EnSite Omnipolar Technology, a new cardiac mapping platform available in the U.S. and across Europe that is designed to help physicians better treat abnormal heart rhythms, also known as cardiac arrhythmias. The company noted that the system creates three-dimensional maps of the heart to help physicians identify and then treat areas of the heart where abnormal rhythms originate. EnSite X EP System with EnSite Omnipolar Technology provides a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise. | (RTTNews) - Abbott (ABT) said that it has received clearance from the U.S. Food and Drug Administration for the EnSite X EP System with EnSite Omnipolar Technology, a new cardiac mapping platform available in the U.S. and across Europe that is designed to help physicians better treat abnormal heart rhythms, also known as cardiac arrhythmias. The company noted that the system creates three-dimensional maps of the heart to help physicians identify and then treat areas of the heart where abnormal rhythms originate. EnSite X EP System with EnSite Omnipolar Technology provides a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise. | (RTTNews) - Abbott (ABT) said that it has received clearance from the U.S. Food and Drug Administration for the EnSite X EP System with EnSite Omnipolar Technology, a new cardiac mapping platform available in the U.S. and across Europe that is designed to help physicians better treat abnormal heart rhythms, also known as cardiac arrhythmias. The company noted that the system creates three-dimensional maps of the heart to help physicians identify and then treat areas of the heart where abnormal rhythms originate. EnSite X EP System with EnSite Omnipolar Technology provides a 360-degree view of the heart, regardless of catheter orientation, for cardiac mapping without compromise. |
31851.0 | 2022-01-11 00:00:00 UTC | 5 Best Stocks to Buy in January and Hold Forever | ABT | https://www.nasdaq.com/articles/5-best-stocks-to-buy-in-january-and-hold-forever | nan | nan | It's January and you're looking for stocks you can count on for the long haul. I suggest looking at the consumer healthcare industry, a market that is estimated to double from its $3.3 trillion value in 2020 to $6.6 trillion by 2028.
Healthcare is complex with many players, but identifying the blue-chip stocks that have evolved with the industry over time can lead to peace of mind and stellar returns. Here are five to consider.
Image source: Getty Images.
Pfizer
Pharmaceutical giant Pfizer (NYSE: PFE) is one of the largest drug companies in the world and a leader in mRNA technology for producing vaccines. Of course, its best-known one is currently combating the COVID-19 variants, which added an estimated $36 billion to its 2021 revenue. For perspective, Pfizer's whole business did $42 billion in 2020 -- before the COVID-19 vaccine.
The company has grown earnings per share at an average rate of 5% over the past decade, driven by a steady drug pipeline that produces enough profits to buy back stock and pay investors a dividend (currently yielding 2.9%). The COVID-19 vaccine could be a multi-year tailwind that helps set up Pfizer's pipeline for years of future growth.
Abbott Labs
Healthcare conglomerate Abbott Laboratories (NYSE: ABT) concentrates on consumer health products like baby formula and nutrition shakes, medical devices, established pharmaceuticals, and diagnostics systems, including a COVID-19 testing device. It has a long dividend-paying history -- and at its current price, the stock offers a dividend yield of 1.4%.
The company dramatically shook its business up by spinning off most of its pharmaceutical business as AbbVie in 2013 and then buying medical device company St. Jude for $25 billion in 2017. As a result, revenue has grown at an average rate of 8% over the past five years. The company has accelerated growth in recent years by focusing on high-demand applications in cardiovascular health and diabetes.
Beckton, Dickinson
Medical technology company Beckton, Dickinson & Company (NYSE: BDX) creates and sells various medical products, including supplies, devices, diagnostic and analyzer equipment, and much more. You can find its products in virtually all areas of healthcare. The company is about to become a Dividend King after raising its dividend for 49 consecutive years.
Beckton, Dickinson has expanded at an impressive rate for a blue-chip stock; revenue growth has averaged 10% annually over the past decade. The company doesn't get much attention from the retail investor crowd, but it should. Because healthcare professionals use many of its products repeatedly (think needles, catheters, etc.), the company likely will keep on performing for years to come.
UnitedHealth
As one of the largest healthcare companies in the world, UnitedHealth Group (NYSE: UNH) is a conglomerate that operates multiple businesses, including health insurance and care networks, software and IT products, analytics, and pharmacy care. The company operates in 130 countries, making it a global business that can give investors broad exposure to the healthcare industry.
Despite its massive $435 billion market cap, the company has grown at a solid clip. Revenue has increased at an average rate of 10% over the past decade while earnings per share have grown at an average of 14%. Investors also get a dividend that yields 1.3% at the current share price. UnitedHealth's massive size could make it harder to maintain that growth rate over the long term, but the stock could anchor any conservative portfolio.
Johnson & Johnson
As one of the best-known healthcare companies among consumers, Johnson & Johnson (NYSE: JNJ), makes a range of consumer products, including Tylenol, Band-Aids, Motrin, Benadryl, and more. Ironically, its pharmaceutical and medical device segments overshadow the consumer products, contributing more than 80% of its total revenue.
Johnson & Johnson has the longest dividend growth streak on this list; this Dividend King's payout has increased 59 years in a row. The company's business has been very steady, growing both revenue and earnings per share at a low-single-digit rate over the past decade. Investors could see some further upside in the years ahead after J&J spins off its consumer products brands, leaving shareholders with its two strongest assets -- pharmaceuticals and medical devices -- which could perform better on their own.
10 stocks we like better than Pfizer
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends Becton, Dickinson, Johnson & Johnson, 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. | Abbott Labs Healthcare conglomerate Abbott Laboratories (NYSE: ABT) concentrates on consumer health products like baby formula and nutrition shakes, medical devices, established pharmaceuticals, and diagnostics systems, including a COVID-19 testing device. The company has grown earnings per share at an average rate of 5% over the past decade, driven by a steady drug pipeline that produces enough profits to buy back stock and pay investors a dividend (currently yielding 2.9%). UnitedHealth's massive size could make it harder to maintain that growth rate over the long term, but the stock could anchor any conservative portfolio. | Abbott Labs Healthcare conglomerate Abbott Laboratories (NYSE: ABT) concentrates on consumer health products like baby formula and nutrition shakes, medical devices, established pharmaceuticals, and diagnostics systems, including a COVID-19 testing device. The company has grown earnings per share at an average rate of 5% over the past decade, driven by a steady drug pipeline that produces enough profits to buy back stock and pay investors a dividend (currently yielding 2.9%). Beckton, Dickinson Medical technology company Beckton, Dickinson & Company (NYSE: BDX) creates and sells various medical products, including supplies, devices, diagnostic and analyzer equipment, and much more. | Abbott Labs Healthcare conglomerate Abbott Laboratories (NYSE: ABT) concentrates on consumer health products like baby formula and nutrition shakes, medical devices, established pharmaceuticals, and diagnostics systems, including a COVID-19 testing device. The company has grown earnings per share at an average rate of 5% over the past decade, driven by a steady drug pipeline that produces enough profits to buy back stock and pay investors a dividend (currently yielding 2.9%). Beckton, Dickinson Medical technology company Beckton, Dickinson & Company (NYSE: BDX) creates and sells various medical products, including supplies, devices, diagnostic and analyzer equipment, and much more. | Abbott Labs Healthcare conglomerate Abbott Laboratories (NYSE: ABT) concentrates on consumer health products like baby formula and nutrition shakes, medical devices, established pharmaceuticals, and diagnostics systems, including a COVID-19 testing device. The company has grown earnings per share at an average rate of 5% over the past decade, driven by a steady drug pipeline that produces enough profits to buy back stock and pay investors a dividend (currently yielding 2.9%). The company dramatically shook its business up by spinning off most of its pharmaceutical business as AbbVie in 2013 and then buying medical device company St. Jude for $25 billion in 2017. |
31852.0 | 2022-01-11 00:00:00 UTC | Ex-Dividend Reminder: DTE Energy, AbbVie and Abbott Laboratories | ABT | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-dte-energy-abbvie-and-abbott-laboratories | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/13/22, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co will pay its quarterly dividend of $0.7812 on 2/1/22, AbbVie Inc will pay its quarterly dividend of $1.41 on 2/15/22, and Abbott Laboratories will pay its quarterly dividend of $0.47 on 2/15/22. As a percentage of DTP's recent stock price of $51.45, this dividend works out to approximately 1.52%, so look for shares of DTE Energy Co to trade 1.52% lower — all else being equal — when DTP shares open for trading on 1/13/22. Similarly, investors should look for ABBV to open 1.04% lower in price and for ABT to open 0.35% lower, all else being equal.
Below are dividend history charts for DTP, ABBV, and ABT, showing historical dividends prior to the most recent ones declared.
DTE Energy Co (Symbol: DTP):
AbbVie Inc (Symbol: ABBV):
Abbott Laboratories (Symbol: ABT):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 6.07% for DTE Energy Co, 4.16% for AbbVie Inc, and 1.39% for Abbott Laboratories.
In Tuesday trading, DTE Energy Co shares are currently off about 0.2%, AbbVie Inc shares are off about 0.5%, and Abbott Laboratories shares are up about 0.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, on 1/13/22, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABBV to open 1.04% lower in price and for ABT to open 0.35% lower, all else being equal. Below are dividend history charts for DTP, ABBV, and ABT, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 1/13/22, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABBV to open 1.04% lower in price and for ABT to open 0.35% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 1/13/22, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. DTE Energy Co (Symbol: DTP): AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABBV to open 1.04% lower in price and for ABT to open 0.35% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 1/13/22, DTE Energy Co (Symbol: DTP), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABBV to open 1.04% lower in price and for ABT to open 0.35% lower, all else being equal. Below are dividend history charts for DTP, ABBV, and ABT, showing historical dividends prior to the most recent ones declared. |
31853.0 | 2022-01-11 00:00:00 UTC | Abbott Laboratories To Present At J.P. Morgan Healthcare Conference; Webcast At 9:00 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-to-present-at-j.p.-morgan-healthcare-conference-webcast-at-9%3A00-am-et | nan | nan | (RTTNews) - Abbott Laboratories (ABT) will present virtually at the 40th Annual J.P. Morgan Healthcare Conference.
The event is scheduled to begin at 9:00 AM ET on Jan. 11, 2021.
To access the live webcast, log on to www.abbottinvestor.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will present virtually at the 40th Annual J.P. Morgan Healthcare Conference. The event is scheduled to begin at 9:00 AM ET on Jan. 11, 2021. To access the live webcast, log on to www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will present virtually at the 40th Annual J.P. Morgan Healthcare Conference. The event is scheduled to begin at 9:00 AM ET on Jan. 11, 2021. To access the live webcast, log on to www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will present virtually at the 40th Annual J.P. Morgan Healthcare Conference. The event is scheduled to begin at 9:00 AM ET on Jan. 11, 2021. To access the live webcast, log on to www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will present virtually at the 40th Annual J.P. Morgan Healthcare Conference. The event is scheduled to begin at 9:00 AM ET on Jan. 11, 2021. To access the live webcast, log on to www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
31854.0 | 2022-01-10 00:00:00 UTC | 3 Top Stock Trades for the Week of Jan. 10, 2022 | ABT | https://www.nasdaq.com/articles/3-top-stock-trades-for-the-week-of-jan.-10-2022 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today, the raid on risk assets is extending to the fifth session in a row. Growth stocks continue to poison portfolios, and rising rates remain the apparent enemy. If you tire of the bloodbath and seek shelter, I suggest taking a good look at defensive sectors. I scanned the space for this week’s top stock trades and found many quality candidates holding firm.
For the unaware, so-called defensive sectors are named such for multiple reasons.
First, they have lower volatility. Second, they include industries that are less sensitive to the business cycle. Third (and related to the second), they thus have cash flow streams that are more consistent and reliable. Health care, consumer staples, and utilities fall under the defensive umbrella.
7 Safe Stocks for Your Retirement
Here are three of my favorite setups. Some of their peers have already run too far from low-risk entry points. These have not.
Comcast (NASDAQ:CMCSA)
Bristol-Myers Squibb (NYSE:BMY)
Abbot Laboratories (NYSE:ABT)
Let’s take a closer look at each and map out a trade to profit.
Top Stock Trades for the Week: Comcast (CMCSA)
Source: The thinkorswim® platform from TD Ameritrade
Comcast has been in a downtrend since September. A string of failed bounces litters its history, with many falling at the doorstep of the declining 50-day moving average. Now is the time if the current rally wants to succeed where its predecessors did not. For the past two weeks, we’ve been basing sideways.
The relative strength has been impressive given the selling frenzy striking everything else. The longer we stay up here, the more likely an upside breakout becomes. Each day we chew through more supply. Eventually, it will dry up, and prices should leap higher. I suggest using $51.30 as your line in the sand. Pushing above it will confirm the trend is reversing.
I don’t mind a long stock trade here, but if you also want to use options to juice your returns, then consider the following call spread.
The Trade: Buy the March $50/$55 bull call for around $2.
You’re risking $2 to make $3 if CMCSA climbs above $55 by expiration.
Bristol-Myers Squibb (BMY)
Source: The thinkorswim® platform from TD Ameritrade
Bristol-Myers Squibb is topping my watch list in early-trading Monday. The 2.5% gain stands in stark contrast to the sea of red everywhere else. But, importantly, it’s not just this single feat of strength that speaks to me. Instead, it’s the consistent outperformance that began when BMY stock bottomed last November.
7 Safe Stocks for Your Retirement
Prices are up 21% since then. Every retracement has been extremely shallow, revealing how quickly buyers have accumulated shares. BMY broke above horizontal resistance and the 200-day moving average with this morning’s jump. That clears the way for a return to the old high near $70. Given the trend strength, it could take a while, but I wouldn’t bet against it.
The Trade: Buy the March $65/$70 bull call spread for $1.55.
The max loss is $1.55, and the max gain is $3.45.
Top Stock Trades for the Week: Abbot Laboratories (ABT)
Source: The thinkorswim® platform from TD Ameritrade
We’re returning to the healthcare sector for the final top stock trades idea. Abbot Laboratories boasts one of the best long-term uptrends I’ve seen. It ended 2021 at a record high which makes the current bout of weakness attractive. We’ve cracked the rising 20-day moving average, but I count that we’re above the 50-day as more critical.
The correlation between ABT and its sector has been high during the pullback, and now both are offering clean buy-the-dip patterns. The key is to wait for evidence that buyers return before pulling the trigger. I suggest using Friday’s high ($136.18) as the signal.
The higher implied volatility does make selling put spreads more interesting on this pick versus the others.
The Trade: Sell the February $125/$120 bull put spread for 70 cents credit.
You’re risking $4.30 to make 70 cents if ABT stock sits above $125 at expiration.
Tyler Craig 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.
For a free trial to the best trading community on the planet and Tyler’s current home, click here!
The post 3 Top Stock Trades for the Week of Jan. 10, 2022 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. | Comcast (NASDAQ:CMCSA) Bristol-Myers Squibb (NYSE:BMY) Abbot Laboratories (NYSE:ABT) Let’s take a closer look at each and map out a trade to profit. Top Stock Trades for the Week: Abbot Laboratories (ABT) Source: The thinkorswim® platform from TD Ameritrade We’re returning to the healthcare sector for the final top stock trades idea. The correlation between ABT and its sector has been high during the pullback, and now both are offering clean buy-the-dip patterns. | Comcast (NASDAQ:CMCSA) Bristol-Myers Squibb (NYSE:BMY) Abbot Laboratories (NYSE:ABT) Let’s take a closer look at each and map out a trade to profit. Top Stock Trades for the Week: Abbot Laboratories (ABT) Source: The thinkorswim® platform from TD Ameritrade We’re returning to the healthcare sector for the final top stock trades idea. The correlation between ABT and its sector has been high during the pullback, and now both are offering clean buy-the-dip patterns. | Top Stock Trades for the Week: Abbot Laboratories (ABT) Source: The thinkorswim® platform from TD Ameritrade We’re returning to the healthcare sector for the final top stock trades idea. Comcast (NASDAQ:CMCSA) Bristol-Myers Squibb (NYSE:BMY) Abbot Laboratories (NYSE:ABT) Let’s take a closer look at each and map out a trade to profit. The correlation between ABT and its sector has been high during the pullback, and now both are offering clean buy-the-dip patterns. | Top Stock Trades for the Week: Abbot Laboratories (ABT) Source: The thinkorswim® platform from TD Ameritrade We’re returning to the healthcare sector for the final top stock trades idea. Comcast (NASDAQ:CMCSA) Bristol-Myers Squibb (NYSE:BMY) Abbot Laboratories (NYSE:ABT) Let’s take a closer look at each and map out a trade to profit. The correlation between ABT and its sector has been high during the pullback, and now both are offering clean buy-the-dip patterns. |
31855.0 | 2022-01-10 00:00:00 UTC | What's Happening With Medtronic Stock? | ABT | https://www.nasdaq.com/articles/whats-happening-with-medtronic-stock | nan | nan | [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%
Below you’ll find our previous coverage of MDT stock where you can track our view over time.
[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 Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MDT Return 2% 2% 49%
S&P 500 Return -1% -1% 110%
Trefis MS Portfolio Return -5% -5% 273%
[1] Month-to-date and year-to-date as of 1/6/2022
[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. | 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). 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. | 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% Below you’ll find our previous coverage of MDT stock where you can track our view over time. [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. | 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. 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% Below you’ll find our previous coverage of MDT stock where you can track our view over time. 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: 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. Looking at the bottom-line, the company reported adjusted earnings of $1.32 per share, compared to $1.02 in the prior year 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. |
31856.0 | 2022-01-08 00:00:00 UTC | Abbott Laboratories (NYSE:ABT) Looks Interesting, And It's About To Pay A Dividend | ABT | https://www.nasdaq.com/articles/abbott-laboratories-nyse%3Aabt-looks-interesting-and-its-about-to-pay-a-dividend | nan | nan | Abbott Laboratories (NYSE:ABT) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. In other words, investors can purchase Abbott Laboratories' shares before the 13th of January in order to be eligible for the dividend, which will be paid on the 15th of February.
The company's next dividend payment will be US$0.47 per share. Last year, in total, the company distributed US$1.80 to shareholders. Last year's total dividend payments show that Abbott Laboratories has a trailing yield of 1.4% on the current share price of $135.56. If you buy this business for its dividend, you should have an idea of whether Abbott Laboratories's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Abbott Laboratories's payout ratio is modest, at just 44% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It distributed 33% of its free cash flow as dividends, a comfortable payout level for most companies.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABT Historic Dividend January 8th 2022
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Abbott Laboratories's earnings per share have risen 19% per annum over the last five years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Abbott Laboratories dividends are largely the same as they were 10 years ago.
To Sum It Up
Is Abbott Laboratories an attractive dividend stock, or better left on the shelf? Abbott Laboratories has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. There's a lot to like about Abbott Laboratories, and we would prioritise taking a closer look at it.
In light of that, while Abbott Laboratories has an appealing dividend, it's worth knowing the risks involved with this stock. In terms of investment risks, we've identified 1 warning sign with Abbott Laboratories and understanding them should be part of your investment process.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE:ABT) stock is about to trade ex-dividend in 4 days. NYSE:ABT Historic Dividend January 8th 2022 Have Earnings And Dividends Been Growing? In other words, investors can purchase Abbott Laboratories' shares before the 13th of January in order to be eligible for the dividend, which will be paid on the 15th of February. | Abbott Laboratories (NYSE:ABT) stock is about to trade ex-dividend in 4 days. NYSE:ABT Historic Dividend January 8th 2022 Have Earnings And Dividends Been Growing? Last year's total dividend payments show that Abbott Laboratories has a trailing yield of 1.4% on the current share price of $135.56. | Abbott Laboratories (NYSE:ABT) stock is about to trade ex-dividend in 4 days. NYSE:ABT Historic Dividend January 8th 2022 Have Earnings And Dividends Been Growing? If you buy this business for its dividend, you should have an idea of whether Abbott Laboratories's dividend is reliable and sustainable. | Abbott Laboratories (NYSE:ABT) stock is about to trade ex-dividend in 4 days. NYSE:ABT Historic Dividend January 8th 2022 Have Earnings And Dividends Been Growing? The company's next dividend payment will be US$0.47 per share. |
31857.0 | 2022-01-06 00:00:00 UTC | 2 Safe Growth Stocks to Buy for 2022 | ABT | https://www.nasdaq.com/articles/2-safe-growth-stocks-to-buy-for-2022 | nan | nan | This new year could be a volatile one. Between inflation, rising interest rates, and a new coronavirus variant to worry about, the path ahead is about as clear as mud. Trying to predict which stocks will be good buys for 2022 is no easy task.
However, there are two growth stocks that look to be fairly safe bets to do well this year: Abbott Laboratories (NYSE: ABT) and Meta Platforms (NASDAQ: FB). These industry giants don't lack growth opportunities and they can also offer investors plenty of security along with some strong long-term returns.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories has benefited from a boost in sales due to COVID-19 testing since the start of the pandemic. Its rapid point-of-care test, BinaxNOW, has made it easy for health officials to stay on top of rising case numbers and for people to test themselves at home. And Abbott says that even for the new omicron variant, its tests "performed at equivalent sensitivity as other variants."
For an investor concerned about omicron, Abbott can be a great way to hedge against that risk. And even if someone is more optimistic that COVID-19 will go away and that the economy will return to normal this year, then Abbott can still prove to be a solid investment in 2022. The company's business did get a $1.9 billion boost in revenue for the third quarter (ended Sept. 30, 2021), bringing its top line up to $10.9 billion. However, even without the testing sales, Abbott still would have performed well as it generated growth across all of its reporting segments.
When excluding COVID-19 testing sales, its diagnostics segment still generated revenue growth of over 14.1%. Other areas of its business, including pharmaceuticals, medical devices, and nutrition, grew at rates of 15.1%, 14.6%, and 9.6%, respectively. And those are all areas that could rise in a return to normal where doctor's offices and hospitals are back to their normal operations.
Over the past decade, Abbott has proven to be a safe healthcare stock to hold, rising more than 416% during that time while the S&P 500 has increased by a more modest 281%. Even though Abbott has already outperformed the S&P 500 over the past 10 years it still has even more potential to continue outpacing it in the future.
2. Meta Platforms
Meta Platforms may be trying to bank on the emergence of the metaverse, but that's not why the stock is on this list. For now, the tech stock remains a great buy for its social media platforms that continue to drive significant traffic.
Proof of the company's resilience and stability is evident through the growth in its daily active users (DAUs). The company reported 1.9 billion DAUs for the period ended Sept. 30, 2021, a 19% increase from 1.6 billion just two years ago, before the pandemic. And during each one of those periods in between, DAUs steadily grew. Those numbers do not include Instagram or WhatsApp, demonstrating that even amid the Cambridge Analytica scandal and problems with preventing the spread of fake news, users have continued to flock to Facebook in recent years.
Meta Platforms can be a good stock to buy for investors who are worried about COVID-19 and people being stuck at home. But even if the economy is fully reopened the stock could continue to fare well as Facebook users would be able to post selfies of all the places they can travel to again. Also, there's no real competition out there that Facebook faces, which is why it's such a safe investment for the foreseeable future.
Plus, the business makes tons of money. Its gross margin has been more than 80% of revenue in each of the past five years, and the company's net profit margin is regularly north of 30%. Meta Platforms has also generated $35.8 billion in free cash flow over the trailing 12 months. With that kind of money rolling in, the company is in an excellent position to acquire more businesses or pursue any growth opportunities that may come up in the future.
It's almost been 10 years since this growth stock first went public, and since then, its shares have soared more than 785%. Investors can likely expect even more growth in the years to come.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
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. David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns and recommends Meta Platforms, 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. | However, there are two growth stocks that look to be fairly safe bets to do well this year: Abbott Laboratories (NYSE: ABT) and Meta Platforms (NASDAQ: FB). These industry giants don't lack growth opportunities and they can also offer investors plenty of security along with some strong long-term returns. Those numbers do not include Instagram or WhatsApp, demonstrating that even amid the Cambridge Analytica scandal and problems with preventing the spread of fake news, users have continued to flock to Facebook in recent years. | However, there are two growth stocks that look to be fairly safe bets to do well this year: Abbott Laboratories (NYSE: ABT) and Meta Platforms (NASDAQ: FB). Abbott Laboratories Abbott Laboratories has benefited from a boost in sales due to COVID-19 testing since the start of the pandemic. The company reported 1.9 billion DAUs for the period ended Sept. 30, 2021, a 19% increase from 1.6 billion just two years ago, before the pandemic. | However, there are two growth stocks that look to be fairly safe bets to do well this year: Abbott Laboratories (NYSE: ABT) and Meta Platforms (NASDAQ: FB). 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 16, 2021 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. | However, there are two growth stocks that look to be fairly safe bets to do well this year: Abbott Laboratories (NYSE: ABT) and Meta Platforms (NASDAQ: FB). Meta Platforms can be a good stock to buy for investors who are worried about COVID-19 and people being stuck at home. * 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! |
31858.0 | 2022-01-03 00:00:00 UTC | 3 COVID Stocks That Could Double in 2022 | ABT | https://www.nasdaq.com/articles/3-covid-stocks-that-could-double-in-2022 | nan | nan | The market's a forward-looking mechanism, and some people might feel that the COVID-19 pandemic is "over." That's probably an exaggeration. While vaccinations will hopefully reduce the danger, the virus will continue to mutate, and healthcare companies will continue to fight it. Read more to see why three Fool.com contributors think COVID stocks Fulgent Genetics (NASDAQ: FLGT), NRx Pharmaceuticals (NASDAQ: NRXP), and Adaptive Biotechnologies (NASDAQ: ADPT) could double your money this year.
Testing. Testing. Will this stock turn on?
Patrick Bafuma (Fulgent Genetics): Entering the last wave of 2021, you may have heard that there was a run on COVID tests. In fact, just this week, the local CVS told me that there was not an over-the-counter test available within 20 miles. Yet many countries, ports, and employers want the results of a PCR test within three days prior to entry. While this may put a strain on resources, it's great news for RT-PCR test maker Fulgent Genetics.
Image source: Getty Images.
This medical diagnostics company has focused on contracting with school systems, nursing homes, athletic organizations, health clinics, and the government to commercialize highly specific PCR testing for the SARS-CoV-2 virus. Having booked $95.5 million in revenue in the third quarter, it is likely safe to assume this will continue with the omicron variant well into the new year. Adjusted gross margin was a juicy 81.3% in Q3 2021, too. Over the last year, margin has floated between 77.1% and 82.6%, so aside from inflationary issues, I have little reason to think the margin will not remain enviable. And while it's clear that currently, the company's future remains tethered to COVID-19, it has also been clear that the virus refuses to go away. As such, I'm not convinced that COVID diagnostic numbers will melt away for the company. And with short interest now at just under 13%, positive results for the company could take shareholders on an enjoyable trip up and to the right.
With a price-to-earnings (P/E) ratio of just over 5, this stock looks insanely cheap. When compared to classic lab vendors like Laboratory Corporation of America Holdings and Quest Diagnostics, with P/E ratios of 10.9 and 10.2 respectively, or Abbott Laboratories and its Binax test at a P/E of about 35, Fulgent looks significantly undervalued. With a P/E in the mid-single digits and what seems like a never-ending need for its product, Fulgent Genetics could be an easy double in 2022.
A healthy rebound could be taking shape
George Budwell (NRx Pharmaceuticals): NRx Pharmaceuticals' stock shed an eye-popping 80.4% of its value over 2021. Although the drugmaker's shares initially popped during the first few months of 2021, Wall Street's enthusiasm for this speculative coronavirus stock steadily waned as the year progressed thanks to the U.S. Food and Drug Administration (FDA) declining to grant Emergency Use Authorization (EUA) for the company's severe COVID-19 treatment, Zyesami (aviptadil). The long and short of it is that Zyesami probably would have racked up several hundred million dollars in sales with an EUA for severe COVID-19 cases. That's a tremendous commercial opportunity for a company with market cap under $300 million at the time of this writing.
The good news is that NRx Pharmaceuticals recently filed a new Breakthrough Therapy Designation (BTD) request for Zyesami with the FDA. This revised BTD request centers around COVID-19 respiratory failure in patients who progress despite treatment with remdesivir and other approved therapies. If granted, this regulatory designation might open the door for an EUA in this patient population. While this revised target market is certainly smaller in scope, it would still amount to a healthy commercial opportunity for a company of NRx Pharmaceuticals' current size. In fact, NRx Pharmaceuticals ought to be able to bank at least $100 million in sales this year if the FDA gives the green light this time around.
The big picture is that this beaten-down coronavirus stock might be gearing up for a monstrous run higher in 2022.
Adaptive Biotechnologies will bounce back
Taylor Carmichael (Adaptive Biotechnologies): Adaptive Biotechnologies is focused on the immune system. The company is mapping 30 billion immune receptors in the human body and is using supercomputers from Microsoft to run the data as it maps our adaptive immune system. Later this decade, Adaptive says it could have a universal blood test on the market: A doctor will take a blood sample and be able to "hack" your immune system and see what diseases it is fighting. This blood test could reveal if you have infectious diseases, autoimmune disorders, or cancer.
In the meantime, Adaptive already has several diagnostic tests on the market. The FDA has cleared three of the company's clonoSEQ tests for minimal residual disease in blood cancers (multiple myeloma, acute lymphoblastic leukemia, and chronic lymphocytic leukemia). And the company has an EUA for its COVID-19 test.
Adaptive's COVID test is the first on the market that uses T cells in the blood to check for the disease. Just recently the Molecular Diagnostic Services Program agreed to pay $770 per test for certain groups of individuals, including immunocompromised patients.
Adaptive's not profitable yet, and its revenue is still meager: $146 million over the trailing 12 months. The stock is down 50% as impatient investors head for the exits. But that's a mistake. The company estimates there are 7 million immunocompromised patients just in the U.S. That's a $5 billion market opportunity in the near term. With the government paying for the tests, we should see a spike in Adaptive's COVID-related revenue in 2022, and the stock should jump along with it.
10 stocks we like better than Fulgent Genetics, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Fulgent Genetics, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Patrick Bafuma owns Fulgent Genetics. George Budwell has no position in any of the stocks mentioned. Taylor Carmichael owns Adaptive Biotechnologies Corporation. The Motley Fool owns and recommends Fulgent Genetics, Inc. and Microsoft. 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 medical diagnostics company has focused on contracting with school systems, nursing homes, athletic organizations, health clinics, and the government to commercialize highly specific PCR testing for the SARS-CoV-2 virus. Although the drugmaker's shares initially popped during the first few months of 2021, Wall Street's enthusiasm for this speculative coronavirus stock steadily waned as the year progressed thanks to the U.S. Food and Drug Administration (FDA) declining to grant Emergency Use Authorization (EUA) for the company's severe COVID-19 treatment, Zyesami (aviptadil). While this revised target market is certainly smaller in scope, it would still amount to a healthy commercial opportunity for a company of NRx Pharmaceuticals' current size. | Read more to see why three Fool.com contributors think COVID stocks Fulgent Genetics (NASDAQ: FLGT), NRx Pharmaceuticals (NASDAQ: NRXP), and Adaptive Biotechnologies (NASDAQ: ADPT) could double your money this year. A healthy rebound could be taking shape George Budwell (NRx Pharmaceuticals): NRx Pharmaceuticals' stock shed an eye-popping 80.4% of its value over 2021. Adaptive Biotechnologies will bounce back Taylor Carmichael (Adaptive Biotechnologies): Adaptive Biotechnologies is focused on the immune system. | Read more to see why three Fool.com contributors think COVID stocks Fulgent Genetics (NASDAQ: FLGT), NRx Pharmaceuticals (NASDAQ: NRXP), and Adaptive Biotechnologies (NASDAQ: ADPT) could double your money this year. Although the drugmaker's shares initially popped during the first few months of 2021, Wall Street's enthusiasm for this speculative coronavirus stock steadily waned as the year progressed thanks to the U.S. Food and Drug Administration (FDA) declining to grant Emergency Use Authorization (EUA) for the company's severe COVID-19 treatment, Zyesami (aviptadil). Later this decade, Adaptive says it could have a universal blood test on the market: A doctor will take a blood sample and be able to "hack" your immune system and see what diseases it is fighting. | Testing. In fact, NRx Pharmaceuticals ought to be able to bank at least $100 million in sales this year if the FDA gives the green light this time around. |
31859.0 | 2022-01-03 00:00:00 UTC | My Top 5 Dividend Stocks to Buy for 2022 | ABT | https://www.nasdaq.com/articles/my-top-5-dividend-stocks-to-buy-for-2022 | nan | nan | A strong dividend portfolio can be a powerful wealth-building tool, delivering gains from rising share prices and passive income. Many stocks pay dividends, but I would argue that blue chip companies are the winning strategy for long-term investors. In other words, let high-quality stocks do all the heavy lifting for you.
Don't know where to start or simply looking for some new dividend ideas? No worries, I've identified my top five dividend stocks for 2022.
Image source: Getty Images.
AbbVie
Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. Its dividend legacy goes back to its days as a part of Abbott Labs but it has continued putting money into shareholder pockets since spinning off as its own company in 2013.
ABBV Cash Dividend Payout Ratio data by YCharts
Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie is a rare combination of both. The company's dividend yields 4.1% and has grown at an average of 18% annually over the past five years. Its 41% dividend payout ratio should give you confidence in AbbVie's ability to keep paying you to hold shares.
Philip Morris International
Tobacco's addictive nature gives tobacco stocks a reputation as fine dividend stocks. Philip Morris International (NYSE: PM) is arguably the king of the tobacco mountain, formed when parent company Altria Group spun off its international business as its own company, leaving Philip Morris International to sell the Marlboro brand of cigarettes worldwide.
PM Cash Dividend Payout Ratio data by YCharts
Philip Morris International is the highest-yielding dividend stock on this list, offering up a 5.3% dividend yield. But its growth has been somewhat tame; the average annual raise has been 3.3% over the past five years. It's common for tobacco stocks to carry a higher payout ratio, so investors shouldn't rush to judgment on the 71% dividend payout ratio. The company's IQOS product is its future and could ensure Philip Morris International's payout for years to come.
Sherwin-Williams
Most homeowners have probably used Sherwin-Williams' (NYSE: SHW) products, as the company is one of the world's largest paint and coatings makers. Its products include its namesake network of stores across North America and a wide range of brands sold worldwide, like Valspar, Minwax, Purdy, Krylon, and Thompson's WaterSeal.
SHW Cash Dividend Payout Ratio data by YCharts
Paint is a great business because the material fades, chips, or simply becomes boring, requiring customers to keep buying more. The company has raised its dividend for 43 consecutive years. The dividend yield is small at 0.6%, but the dividend has averaged 14.6% growth annually over the past five years. The dividend's 22% payout ratio should leave plenty of room for that growth to continue.
Home Depot
Paint isn't the only business that homeowners support. Home Depot (NYSE: HD) is a leading home improvement retail chain that operates in the U.S., Canada, and Mexico. E-commerce has disrupted many retail categories, but Home Depot's strong network of stores and success in integrating its digital storefront has helped it continue growing and paying dividends.
HD Cash Dividend Payout Ratio data by YCharts
Home Depot's dividend yields 1.6%, and the payout has grown at an average of 19.7% annually over the past five years. The dividend payout ratio is still manageable at 56%, so investors should continue seeing their dividend checks grow. Consumers gladly spend money to improve and maintain their homes, so Home Depot is among the "bluest" blue chips in the retail sector.
Realty Income
Real estate is one of humanity's oldest businesses, but many people cannot afford to own rental properties. Real estate investment trusts (REITs) are a workaround; these businesses acquire and rent out properties and pay out dividends to their shareholders. Realty Income (NYSE: O) is among the best known, specializing in retail properties. It's the landlord for customers like Walgreens, Dollar General, FedEx, AMC, and more.
O Cash Dividend Payout Ratio data by YCharts
REITs are excellent dividend stocks because their business structure requires paying at least 90% of their taxable income out as dividends to investors. Realty Income's dividend yield is currently 4.1%, and the company has raised its dividend for 28 years and running. Over the past five years, the dividend has grown at an average of 3.79%. Realty Income won't make you a millionaire overnight, but its steady business model makes it a reliable way to generate passive income from real estate.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends FedEx and Home Depot. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its products include its namesake network of stores across North America and a wide range of brands sold worldwide, like Valspar, Minwax, Purdy, Krylon, and Thompson's WaterSeal. SHW Cash Dividend Payout Ratio data by YCharts Paint is a great business because the material fades, chips, or simply becomes boring, requiring customers to keep buying more. E-commerce has disrupted many retail categories, but Home Depot's strong network of stores and success in integrating its digital storefront has helped it continue growing and paying dividends. | ABBV Cash Dividend Payout Ratio data by YCharts Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. PM Cash Dividend Payout Ratio data by YCharts Philip Morris International is the highest-yielding dividend stock on this list, offering up a 5.3% dividend yield. HD Cash Dividend Payout Ratio data by YCharts Home Depot's dividend yields 1.6%, and the payout has grown at an average of 19.7% annually over the past five years. | PM Cash Dividend Payout Ratio data by YCharts Philip Morris International is the highest-yielding dividend stock on this list, offering up a 5.3% dividend yield. HD Cash Dividend Payout Ratio data by YCharts Home Depot's dividend yields 1.6%, and the payout has grown at an average of 19.7% annually over the past five years. O Cash Dividend Payout Ratio data by YCharts REITs are excellent dividend stocks because their business structure requires paying at least 90% of their taxable income out as dividends to investors. | HD Cash Dividend Payout Ratio data by YCharts Home Depot's dividend yields 1.6%, and the payout has grown at an average of 19.7% annually over the past five years. Realty Income's dividend yield is currently 4.1%, and the company has raised its dividend for 28 years and running. The Motley Fool owns and recommends FedEx and Home Depot. |
31860.0 | 2022-01-02 00:00:00 UTC | 22 Top Dividend Stocks to Buy and Hold in 2022 | ABT | https://www.nasdaq.com/articles/22-top-dividend-stocks-to-buy-and-hold-in-2022 | nan | nan | I don't know how the stock market will perform in the new year. Wall Street analysts don't know, either. Any predictions are really only guesses.
There's no guesswork required, though, to expect that many stocks will continue to pay solid dividends regardless of what happens with the overall market. These are the kinds of stocks that income investors can own without losing any sleep.
Which specific stocks make the list? Here are 22 top dividend stocks to buy and hold in 2022.
Image source: Getty Images.
22 top dividend stocks for 2022
Below are 22 top dividend stocks to buy and hold in 2022, listed in alphabetical order:
COMPANY
MARKET CAP
DIVIDEND YIELD
Abbott Labs (NYSE: ABT) $248 billion 1.33%
AbbVie (NYSE: ABBV) $238 billion 4.20%
Air Products & Chemicals (NYSE: APD) $68 billion 1.97%
Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47%
Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97%
Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40%
Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31%
Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43%
CVS Health (NYSE: CVS) $136 billion 2.15%
Devon Energy (NYSE: DVN) $30 billion >9%*
Duke Energy (NYSE: DUK) $81 billion 3.81%
Easterly Government Properties (NYSE: DEA) $2 billion 4.66%
Enterprise Products Partners (NYSE: EPD) $47 billion 8.33%
Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29%
Intel (NASDAQ: INTC) $212 billion 2.69%
Johnson & Johnson (NYSE: JNJ) $450 billion 2.50%
Eli Lilly & Company (NYSE: LLY) $266 billion 1.42%
Medical Properties Trust (NYSE: MPW) $14 billion 4.86%
Pepsico (NASDAQ: PEP) $239 billion 2.51%
Pfizer (NYSE: PFE) $323 billion 2.70%
Verizon Communications (NYSE: VZ) $222 billion 4.86%
Viatris (NASDAQ: VTRS) $16 billion 3.23%
Data sources: Yahoo! Finance and company investor presentations. *Includes fixed+variable dividend.
Healthcare
You might have noticed there are more stocks from healthcare than any other sector. That's primarily because many healthcare stocks offer steady dividends and often provide solid growth prospects as well.
Three healthcare stocks boast especially impressive dividend track records. Abbott Labs and Johnson & Johnson are Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. AbbVie is likely to join the club in 2022.
Eli Lilly and Pfizer could be attractive to growth investors. Lilly has multiple catalysts on the way in the new year. Pfizer handily outperformed the broader market in 2021 and could do so again in 2022 with strong sales of its COVID-19 vaccine and pill.
Value investors might like the other healthcare picks. CVS Health's shares trade at only 12 times expected earnings. Bristol Myers Squibb is even cheaper with a forward earnings multiple of a little over seven. And Viatris is dirt cheap, with its shares trading at less than 3.4 times expected earnings.
Energy
Companies in the energy sector are also often known for their dividends. Devon Energy certainly stands out with its fixed-plus-variable dividend of more than 9%. That's more than seven times higher than the S&P 500 average dividend yield.
Midstream energy leader Enterprise Products Partners isn't too far behind Devon, though, with a dividend yield of 8.33%. While the shift away from fossil fuels could impact these companies' businesses over the long term, their prospects over the next several years look bright.
That shift will work to the benefit of Brookfield Renewable. The company has two stocks on our list. It was originally formed as a limited partnership (LP), Brookfield Renewable Partners (BEP). In 2020, the company created Brookfield Renewable Corporation (BEPC) for investors who wanted to avoid the tax hassles associated with LPs.
Duke Energy isn't likely to deliver sizzling growth. However, income investors should be able to depend on the utility company's steady dividend. Duke has paid a dividend uninterrupted for 95 consecutive years.
REITs
Three of the top dividend stocks for 2022 are real estate investment trusts (REITs). They're required to return at least 90% of taxable income to shareholders in the form of dividends.
Medical Properties Trust is a REIT that focuses, as its name indicates, on medical properties -- primarily acute care hospitals. Its dividend yield of 4.86% is especially attractive. The company has increased its dividend payout for eight consecutive years.
Easterly Government Properties arguably ranks as one of the safest dividend stocks on the market. It specializes in leasing properties to the U.S. government.
Meanwhile, Innovative Industrial Properties is one of the fastest-growing REIT stocks. The company leases properties to regulated cannabis operators in the U.S. Its shares have skyrocketed nearly 1,300% over the past five years. IIP's dividend payout increased by 10 times during this period.
Technology and telecommunications
Intel underperformed the overall market in 2021. However, investors should focus more on where the chipmaker will be in 10 years or more than how its stock fared in one 12-month period. Intel's future should be better than its immediate past. More importantly for income investors, the company's dividend should be safe.
Likewise, Verizon was one of the worst-performing Dow Jones stocks in 2021. However, investors should love the telecom giant's juicy dividend. With the increased adoption of 5G networks, Verizon should have solid prospects over the coming years.
Other
Rounding out the list of top dividend stocks for 2022 are Air Products & Chemicals, Brookfield Infrastructure, and PepsiCo. As was the case with Brookfield Renewable, Brookfield Infrastructure has two stocks -- one an LP (BIP) and the other a corporation (BIPC). There's only one underlying business, though. And that business is rock-solid thanks to steady cash flow from a wide variety of infrastructure assets.
Like some of the other stocks in the top 22, Air Products & Chemicals probably won't deliver jaw-dropping gains. However, it's a Dividend Aristocrat with 39 consecutive years of dividend hikes. You should be able to count on those dividends continuing to flow and grow in 2022.
PepsiCo is also a Dividend Aristocrat and will likely become a Dividend King in the new year. With its strong product lineup and dividend, PepsiCo is arguably one of the best consumer staples stocks to buy right now.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. The Motley Fool owns and recommends Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Innovative Industrial Properties, and Intel. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, CVS Health, Duke Energy, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, Verizon Communications, and Viatris Inc. and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. 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 Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! In 2020, the company created Brookfield Renewable Corporation (BEPC) for investors who wanted to avoid the tax hassles associated with LPs. Other Rounding out the list of top dividend stocks for 2022 are Air Products & Chemicals, Brookfield Infrastructure, and PepsiCo. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, CVS Health, Duke Energy, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, Verizon Communications, and Viatris Inc. and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! 22 top dividend stocks for 2022 Below are 22 top dividend stocks to buy and hold in 2022, listed in alphabetical order: See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! I don't know how the stock market will perform in the new year. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. |
31861.0 | 2021-12-31 00:00:00 UTC | Abbott Laboratories Shares Close in on 52-Week High - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-close-in-on-52-week-high-market-mover-2 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.1% below its 52 week high of $142.60, giving the company a market cap of $249B. The stock is currently up 30.9% year-to-date, up 32.3% over the past 12 months, and up 302.7% over the past five years. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%.
Trading Activity
Trading volume this week was 49.1% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 73.0%
The company's stock price performance over the past 12 months beats the peer average by 72.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.7% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) shares closed today at 1.1% below its 52 week high of $142.60, giving the company a market cap of $249B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.0% The company's stock price performance over the past 12 months beats the peer average by 72.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.7% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.1% below its 52 week high of $142.60, giving the company a market cap of $249B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbott Laboratories (ABT) shares closed today at 1.1% below its 52 week high of $142.60, giving the company a market cap of $249B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 73.0% The company's stock price performance over the past 12 months beats the peer average by 72.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.7% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.1% below its 52 week high of $142.60, giving the company a market cap of $249B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
31862.0 | 2021-12-30 00:00:00 UTC | 5 Dividend Stocks To Watch In 2022 | ABT | https://www.nasdaq.com/articles/5-dividend-stocks-to-watch-in-2022 | nan | nan | Are These The Best Dividend Stocks To Buy In 2022?
Despite the recent volatility in the stock market, 2021 is ending the year with strong gains. The S&P 500 is up 29%, which is significantly higher than its historical average. With the rising threats of the Omicron variant and inflation fears, it’s not difficult to imagine that a market crash could be underway. While it’s impossible to predict when that will happen, some are expecting it to happen in the near term.
As such, it would not surprise me to see high dividend stocks being among the most active stocks around now. For the most part, this would be thanks to the more defensive nature of this group of stocks. Now, when it comes to picking dividend stocks, investors would ideally want to look at firms whose businesses are rock solid. Because, said companies are often the ones that can afford to pay and increase their dividends consistently.
All in all, if investors are looking for more defensive plays in the market, dividend stocks could be their go-to’s. That’s considering these stocks’ generally stable growth and consistent payouts. Nevertheless, dividend stocks remain a viable play for those looking to diversify their portfolios. With that said, could one of these top dividend stocks be worth watching in the stock market today?
Top Dividend Stocks To Watch In 2022
Pfizer Inc. (NYSE: PFE)
Brookfield Renewable Partners LP (NYSE: BEP)
Caterpillar Inc. (NYSE: CAT)
Abbott Laboratories (NYSE: ABT)
Abbvie Inc. (NYSE: ABBV)
Pfizer
Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Following the successful rollout of the vaccine, the company’s revenue soared 130% year over year to $24.1 billion in the third quarter.
Yet, despite its enormous drug development success and massive profit generation, the company is not resting on its laurels. Pfizer continues to help the world battle COVID-19 with its new oral antiviral treatment, Paxlovid. The pill has been shown to reduce the risk of hospitalization or death by nearly 90% in clinical trials.
Furthermore, the pill can be taken at home and this would change the way we could treat the viral infection. Thus, it would hopefully help reduce the burden on health care centers and hospital systems. Well, the company claims that it is now ready to begin delivery in the U.S. immediately into the hands of appropriate patients as quickly as possible. Pfizer has a dividend yield of over 2.7%. Considering the rising threat of the Omicron variant, do you have PFE stock on your watchlist right now?
[Read More] Top Stocks To Buy For 2022? 4 Work-From-Home Stocks In Focus
Brookfield Renewable Partners
Brookfield Renewable Partners (BEP) is a renewable energy company that owns and operates renewable power assets. In brief, it operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of wind, solar, and hydroelectric facilities all over the world. This adds up to approximately 21 gigawatts of installed capacity. What’s more, BEP has a massive development pipeline of 36 gigawatts of renewable-energy assets.
From its latest third quarter results, Brookfield Renewable generated $210 million of funds from operations. That’s up 32% year-over-year. This shows that the company has strong growth prospects, which many other dividend stocks are lacking.
Moreover, the company is also generating plenty of cash to support its dividend yield, which currently stands around 3.4%. And if you’re looking for a renewable energy company with strong growth, BEP stock seems like an obvious choice for many.
Caterpillar
Heavy machinery giant Caterpillar is one of the stocks that will benefit from the infrastructure bill. The funding package combined with strong construction demand, is setting the stage for more growth in 2022 and beyond. For the uninitiated, the infrastructure package includes a 35% increase in spending on highways over the current authorized allocation of $46 billion.
For these reasons, some would argue that this presents a buying opportunity for investors looking to jump on any post-pandemic tailwinds for Caterpillar. The company currently has a dividend yield of 2.1%.
What’s more, the company seems to be kicking into high gear across the board. Caterpillar posted stellar figures in its latest quarterly earnings report. Notably, Caterpillar saw its net income surge by over 113% year-over-year. Secondly, Caterpillar is also working to diversify its portfolio. This is evident from its ongoing partnership with Chevron (NYSE: CVX) with hydrogen fuel cell-powered locomotives. Having read all of this, would you consider CAT stock a top dividend stock to buy now?
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Abbott Laboratories
Health care company Abbott Laboratories is one of the most reliable dividend stocks in the stock market today. Earlier this month, the company announced that its board of directors has yet again increased its quarterly common dividend. This marks the company’s 50th consecutive year of dividend growth. It has now increased to $0.47 per share, a 4.4% increase that follows a 25% increase to the company’s quarterly dividend in 2021. This also marks the company’s 392nd dividend increase in a row, dating back to 1924. Abbott currently has a dividend yield of 1.3%.
On top of that, the company also launched Similac 360 Total Care last month. This represents its next generation of infant formula with human milk oligosaccharides (HMOs).
Besides that, it is also the first and only infant formula in the U.S. with a blend of five different HMOs, previously only found in breast milk. Thus, the formula aims to provide nutrition to support the whole baby’s health and development. Safe to say, Abbott does not appear to be resting on its laurels. All things considered, would you add ABT stock to your portfolio?
Abbvie
Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. The drugmaker currently pays out just over 4% dividend yield.
More notably, the company has boosted its dividends by a whopping 225% since 2013. All of this is possible with the company’s strong pipeline of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
Financially, the company’s business remains healthy with a total revenue of $14.34 billion in its latest quarter. The company also maintains strong profit margins, coming in at 22.2% in the latest quarter. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. AbbVie has radically transformed its product portfolio ahead of the patent expiration of the anti-inflammatory medicine Humira. That aside, the company still boasts a solid lineup of drugs that could continue to drive top and bottom line growth. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. All things considered, would you add ABT stock to your portfolio? For the uninitiated, the infrastructure package includes a 35% increase in spending on highways over the current authorized allocation of $46 billion. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. All things considered, would you add ABT stock to your portfolio? 4 Work-From-Home Stocks In Focus Brookfield Renewable Partners Brookfield Renewable Partners (BEP) is a renewable energy company that owns and operates renewable power assets. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. All things considered, would you add ABT stock to your portfolio? Having read all of this, would you consider CAT stock a top dividend stock to buy now? | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. All things considered, would you add ABT stock to your portfolio? Are These The Best Dividend Stocks To Buy In 2022? |
31863.0 | 2021-12-30 00:00:00 UTC | Best Stocks for 2022: Why AbbVie Looks Like High Dividend Growth Stock | ABT | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-why-abbvie-looks-like-high-dividend-growth-stock | 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 Inc. (NYSE:ABBV) stock.
Source: InvestorPlace
The stock market has something to offer every investor. There are stocks with high dividend yields, although these usually offer less growth through capital appreciation. There are growth stocks that could generate superior share price gains, but growth stocks typically have elevated valuations and low dividend yields. One such company that comes to mind that offers this type of opportunity is AbbVie Inc. (NYSE:ABBV) and ABBV stock.
Every now and then, investors will come across a unique stock that offers dividends and growth. These rare finds have the potential for outsized returns, through their high dividend yields and their potential for share price appreciation. With that in mind, AbbVie has all the makings of a high-dividend stock that also offers growth at a reasonable valuation — which is why it’s my top pick for 2022.
What makes ABBV stock this way? Let’s dive in and take a closer look.
Business Overview
AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. AbbVie was spun off so that it could operate independently, with its own dedicated management team. According to AbbVie, it generated annual revenue and adjusted earnings per share (EPS) growth of 13.5% and 18.8%, respectively, from 2013-2020.
The impressive growth over the past several years was due primarily to its flagship multi-purpose drug Humira. However, Humira’s patent expired in the international markets, which has led to a deep slowdown in growth abroad. Humira faces patent expiration in the U.S. in 2023.
Patent expirations are a leading risk factor for pharmaceutical companies. The entrance of generic and biosimilar products often causes branded pharmaceuticals to lose their pricing power. However, the good news is that AbbVie has prepared for this by investing heavily in new products and acquisitions.
Growth Catalysts for ABBV Stock
Overall, AbbVie has invested significant resources in its research and development (R&D) platform to restock its pipeline. In fact, AbbVie’s R&D expense totaled $6.56 billion in 2020. The result of this investment is that AbbVie has multiple growth opportunities to replace Humira, particularly in the therapeutic areas of immunology, hematology and neuroscience.
Next, AbbVie has pursued growth through acquisitions. Its biggest acquisition was the $63 billion takeover of Allergan. Allergan’s flagship product is Botox, which diversified AbbVie’s portfolio with exposure to global aesthetics, a high-growth market. For example, in the third quarter, global net revenues from AbbVie’s aesthetics portfolio increased 29% operationally to $1.25 billion.
7 Stocks to Buy if Covid-19 Becomes Endemic
Additionally, AbbVie raised its guidance and now expects adjusted EPS in a range of $12.63 to $12.67 for 2021. At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock.
Attractive Stock For Income And Total Returns
Moreover, shareholders benefit from this growth with a high dividend payout and regular dividend increases.
Not only is AbbVie generating strong growth, but the company also pays a hefty dividend with strong dividend raises each year. AbbVie announced a 2022 dividend increase of 8.5%. The company’s forward annualized dividend payout of $5.64 per share represents a current yield of 4.3%. This is a very strong yield, considering the average yield of the S&P 500 index is around 1.4%.
Furthermore, AbbVie is a dividend growth company. Going back to its days as a subsidiary of Abbott, AbbVie has increased its dividend for over 40-consecutive years. As a result, it is a member of the Dividend Aristocrats index, a group of stocks in the S&P 500 with more than 25-consecutive years of dividend growth.
Lastly, despite shares of ABBV stock rising 21% year-to-date (YTD), the stock still has a reasonable valuation. Based on expected EPS of $12.65 for 2021, AbbVie stock trades for a P/E of about 9. With such a low P/E ratio, AbbVie has lots of appeal for value investors. There is plenty of room for AbbVie’s P/E multiple to expand, which would further boost shareholder returns in the form of a rising stock price.
Final Thoughts on ABBV Stock
Putting it all together, AbbVie is a rare example of a growth company with a reasonable valuation and a high dividend yield. This is a unique find in the stock market, and it means AbbVie could generate superior returns through dividends and capital gains.
Furthermore, AbbVie has a positive outlook for 2022, as the company continues to diversify its portfolio and invest for growth. As a result, AbbVie is my top pick for the best stocks for 2022.
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: Why AbbVie Looks Like High Dividend Growth Stock 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. | Business Overview AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. Growth Catalysts for ABBV Stock Overall, AbbVie has invested significant resources in its research and development (R&D) platform to restock its pipeline. The result of this investment is that AbbVie has multiple growth opportunities to replace Humira, particularly in the therapeutic areas of immunology, hematology and neuroscience. | Business Overview AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. There are growth stocks that could generate superior share price gains, but growth stocks typically have elevated valuations and low dividend yields. At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock. | Business Overview AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. There are growth stocks that could generate superior share price gains, but growth stocks typically have elevated valuations and low dividend yields. Final Thoughts on ABBV Stock Putting it all together, AbbVie is a rare example of a growth company with a reasonable valuation and a high dividend yield. | Business Overview AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. One such company that comes to mind that offers this type of opportunity is AbbVie Inc. (NYSE:ABBV) and ABBV stock. At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock. |
31864.0 | 2021-12-30 00:00:00 UTC | Abbott Laboratories (NYSE:ABT) Is Increasing Its Dividend To US$0.47 | ABT | https://www.nasdaq.com/articles/abbott-laboratories-nyse%3Aabt-is-increasing-its-dividend-to-us%240.47-0 | nan | nan | The board of Abbott Laboratories (NYSE:ABT) has announced that it will be increasing its dividend on the 15th of February to US$0.47. The announced payment will take the dividend yield to 1.3%, which is in line with the average for the industry.
Abbott Laboratories' Dividend Is Well Covered By Earnings
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Based on the last payment, Abbott Laboratories was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.
EPS is set to fall by 10.1% over the next 12 months. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 53%, which is comfortable for the company to continue in the future.
NYSE:ABT Historic Dividend December 30th 2021
Dividend Volatility
The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from US$1.92 in 2011 to the most recent annual payment of US$1.88. Dividend payments have shrunk at a rate of less than 1% per annum over this time frame. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.
The Dividend Looks Likely To Grow
With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Abbott Laboratories has seen EPS rising for the last five years, at 44% per annum. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have.
We Really Like Abbott Laboratories' Dividend
Overall, a dividend increase is always good, and we think that Abbott Laboratories is a strong income stock thanks to its track record and growing earnings. The earnings easily cover the company's distributions, and the company is generating plenty of cash. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Abbott Laboratories that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The board of Abbott Laboratories (NYSE:ABT) has announced that it will be increasing its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 30th 2021 Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. | The board of Abbott Laboratories (NYSE:ABT) has announced that it will be increasing its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 30th 2021 Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. We Really Like Abbott Laboratories' Dividend Overall, a dividend increase is always good, and we think that Abbott Laboratories is a strong income stock thanks to its track record and growing earnings. | NYSE:ABT Historic Dividend December 30th 2021 Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The board of Abbott Laboratories (NYSE:ABT) has announced that it will be increasing its dividend on the 15th of February to US$0.47. Abbott Laboratories' Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. | The board of Abbott Laboratories (NYSE:ABT) has announced that it will be increasing its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 30th 2021 Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Abbott Laboratories' Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. |
31865.0 | 2021-12-28 00:00:00 UTC | Abbott Laboratories Shares Close in on 52-Week High - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-close-in-on-52-week-high-market-mover-1 | nan | nan | Abbott Laboratories (ABT) shares closed today at 1.5% below its 52 week high of $142.60, giving the company a market cap of $250B. The stock is currently up 31.2% year-to-date, up 32.6% over the past 12 months, and up 300.4% over the past five years. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%.
Trading Activity
Trading volume this week was 36.0% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 71.4%
The company's stock price performance over the past 12 months beats the peer average by 58.9%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 10.3% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) shares closed today at 1.5% below its 52 week high of $142.60, giving the company a market cap of $250B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 71.4% The company's stock price performance over the past 12 months beats the peer average by 58.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 10.3% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 1.5% below its 52 week high of $142.60, giving the company a market cap of $250B. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbott Laboratories (ABT) shares closed today at 1.5% below its 52 week high of $142.60, giving the company a market cap of $250B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 71.4% The company's stock price performance over the past 12 months beats the peer average by 58.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 10.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 1.5% below its 52 week high of $142.60, giving the company a market cap of $250B. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
31866.0 | 2021-12-28 00:00:00 UTC | 3 Healthcare Stocks to Buy and Hold for the Next 10 Years | ABT | https://www.nasdaq.com/articles/3-healthcare-stocks-to-buy-and-hold-for-the-next-10-years | nan | nan | When it comes to stability, large-cap healthcare stocks have a lot to offer. People will always need medical care, and to get it, they'll need major healthcare companies to keep doing what they do best.
Investors who are willing to play the long game stand to benefit the most from buying shares of healthcare giants. And for those who are happy to wait for their returns to accrue over time, there's more than a few stocks to choose from. Let's examine three of the leading candidates.
Image source: Getty Images
1. Pfizer
With its coronavirus vaccine called Comirnaty making more than $13 billion in the third quarter alone, Pfizer (NYSE: PFE) is a company that needs no introduction. Thanks to sales of its medicines, over the last 10 years its quarterly revenue has grown by more than 102%, and its quarterly free cash flow (FCF) by 129.8%. And now that the company will likely have some of its revenue from Comirnaty on a recurring basis, the proposition for investors is a bit sweeter than before.
Churning out successful medicines time and time again is at the crux of Pfizer's value proposition to shareholders, and there's no reason to expect things to change now that its income is skyrocketing. And with strong growth in its cash flows, it's no surprise that Pfizer has consistently increased its dividend for 12 years and running. Right now, its forward annual dividend yield is 2.71%, which isn't half bad. Though there aren't any share repurchases scheduled for the rest of this year, it does have $5.3 billion authorized for repurchasing from a previous run.
Still, Pfizer hasn't always outperformed the market, and it might not do so moving forward either. So, it's probably a better stock to consider using as a defensive or conservative holding rather than one for growth, even if its recent performance keeps sizzling.
2. Viatris
As a generic drugmaker, Viatris (NASDAQ: VTRS) is a stock that you shouldn't even consider holding unless you're willing to do so for the long term. Just over a year after its split from Pfizer as Upjohn and merger with Mylan, things are still in transition, and that means it's selling at a bargain. Whereas the generics industry as a whole has an average trailing price-to-sales (P/S) ratio of 4.95, Viatris' P/S is a mere 0.83.
As Viatris finishes consolidating its operations from the spinoff, it'll be focusing on realizing cost synergies and repaying debt through 2023. Then, it'll pivot into its long-term growth strategy by pushing hard to expand its portfolio of complex generics and biosimilar drugs. After that pivot is when returns for investors are likely to take off.
Each new medicine in its roster could yield revenue for years and years, especially for core mass-market branded generics like Lipitor, which has already brought in more than $1.27 billion in sales this year so far. Management has signaled that everything from stock buybacks to dividend hikes are on the table once the company has de-leveraged and returned to focus on growth. Once Viatris is raking in even more recurring revenue from persistent sales of its drugs, early investors will be the biggest beneficiaries.
3. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is another slow-burning healthcare stock that's a worthy contributor to most portfolios, but it's also the company on this list that's grown the most in the last decade. With a 10-year total return of almost 550%, Abbott Labs crushed the market's return of 356% in the same period, and it might even do the same through 2031.
Part of the appeal of Abbott is that the company makes most of the goods that healthcare systems cannot do without, including branded generic drugs, medical nutrition drinks, glucose monitors, surgical tools, diagnostic tests, and more. Such a broad collection of products means that it's effectively impossible for any single competitor to gobble up a significant portion of its revenue base. And regular investment in research and development means that its top line is always growing, even if it isn't doing so very rapidly at any given point.
The long-hold appeal of Abbott stems from its never-ending annual dividend hikes, which have occurred like clockwork for each of the last 50 years. While its forward dividend yield is only 1.39% right now, consistent increases in the payout are a given, and they add up significantly over time.
10 stocks we like better than Pfizer
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Alex Carchidi owns Abbott Laboratories. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another slow-burning healthcare stock that's a worthy contributor to most portfolios, but it's also the company on this list that's grown the most in the last decade. Management has signaled that everything from stock buybacks to dividend hikes are on the table once the company has de-leveraged and returned to focus on growth. Part of the appeal of Abbott is that the company makes most of the goods that healthcare systems cannot do without, including branded generic drugs, medical nutrition drinks, glucose monitors, surgical tools, diagnostic tests, and more. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another slow-burning healthcare stock that's a worthy contributor to most portfolios, but it's also the company on this list that's grown the most in the last decade. Part of the appeal of Abbott is that the company makes most of the goods that healthcare systems cannot do without, including branded generic drugs, medical nutrition drinks, glucose monitors, surgical tools, diagnostic tests, and more. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Alex Carchidi owns Abbott Laboratories. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another slow-burning healthcare stock that's a worthy contributor to most portfolios, but it's also the company on this list that's grown the most in the last decade. Viatris As a generic drugmaker, Viatris (NASDAQ: VTRS) is a stock that you shouldn't even consider holding unless you're willing to do so for the long term. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Alex Carchidi owns Abbott Laboratories. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another slow-burning healthcare stock that's a worthy contributor to most portfolios, but it's also the company on this list that's grown the most in the last decade. Viatris As a generic drugmaker, Viatris (NASDAQ: VTRS) is a stock that you shouldn't even consider holding unless you're willing to do so for the long term. After that pivot is when returns for investors are likely to take off. |
31867.0 | 2021-12-26 00:00:00 UTC | Abbott Labs is Set to Outperform the Market. Here’s Why. | ABT | https://www.nasdaq.com/articles/abbott-labs-is-set-to-outperform-the-market.-heres-why. | nan | nan | Abbott Laboratories (ABT), the maker of medical diagnostic test kits, enteral nutrition products, and generic medicines, is a 133-year-old company started in 1888 by Dr. Wallace Abbott. In 1929 the company went public, and since then, has increased in value by approximately 10,000 times.
Today, the company is considered a large-cap value stock that operates in more than 160 countries. It is also one of only a few stocks traded anywhere that has increased its dividend every year for the past 50 years.
Abbott Labs has two unique traits that make it a great stock to own during inflationary periods.
The first is its ability to pass along its increased costs of goods sold to its customers. Abbott can do this because it sells products vital to patient health that either cannot be purchased anywhere else, or cannot be purchased less expensively. Because of this pricing power, the company can raise its prices to offset the inflationary pressures it feels from purchasing raw materials, etc.
The second thing is that Abbott continues to increase its dividend at a rate that is higher than inflation and is, therefore, returning more income over time than is eroded by inflation. This is a unique type of dividend payer that is especially prized by income investors. The real earning power of this dividend is increasing with time, whereas most savings and investments are losing real earnings power with time.
I believe this stock is not only a great value investment but is also undervalued by the market. As such, I am very bullish on this stock.
Recent Results
Abbott’s stock price has ranged from $105.81 to $139.16 over the last 12 months. I calculate that the intrinsic value of this stock is $157.06. While it is trading very close to its 52-week high, I believe, due to its intrinsic value, that this stock has some room left to reach new highs.
Abbott’s revenues and profits have been buoyed by its Binox COVID-19 rapid test in 2020 and 2021. Abbott released its Q3 earnings data on October 19, 2021. It reported $1.40 earnings per share on $10.93 billion in sales. Analyst estimates had been $0.94 earnings per share on $9.56 billion.
Based on the company’s performance during the first nine months of the year and current market fundamentals, the company should be able to deliver the current earnings estimated by analysts of $4.68 per share over the next year.
After reviewing the company’s current assets, liabilities, and discounted free cash flow, I find that it should have no problem being able to continue to increase its quarterly dividend for years to come. Specifically, the company’s current ratio is 1.83, which means that the company has almost twice as much cash and other current assets on hand to cover its bills over the next year. This, along with great free cash flow from operations, shows that the company will be able to produce increasing dividends for many years into the future.
Dividend
Abbott offers a current annual dividend of $1.88 per share. The company has increased its dividend every year for the past 50 years. Management has committed to continue this increased capital return in the future. In fact, Abbott has increased its dividend by an astounding 23.4% since October 2020. When management backs up their statements of returning shareholder value by amounts as high as that, it shows they not only talk the talk but walk the walk.
Wall Street’s Take
Based on the 13 Wall Street analysts currently offering 12-month price targets, 11 consider this stock to be a Strong Buy. The high estimate for the price of Abbott’s stock is $154 in 12 months while the average estimate is $144. The $154 is very close to the intrinsic value that I calculate, and I feel this stock price estimate is appropriate.
This can be seen on the Abbott Stock Analysis & Rating page.
Source: Abbot Labs TipRank Stock Analysis
Abbott also received a "Perfect 10" Smart Score.
This means that the stock is very heavily favored to outperform the market over the next 12 months.
Conclusion
I am bullish on this stock. I feel that at the current price of around $139, it is a good acquisition for any value investor who is looking for exposure to the
pharmaceutical industry. I also find that the company’s ability to pass
along price increases in raw materials, and its outstanding dividend growth rate, make this an outstanding stock to own during inflationary periods.
Disclosure: At the time of publication, Tim O’Rourke did not own shares of any stocks mentioned above.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
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), the maker of medical diagnostic test kits, enteral nutrition products, and generic medicines, is a 133-year-old company started in 1888 by Dr. Wallace Abbott. After reviewing the company’s current assets, liabilities, and discounted free cash flow, I find that it should have no problem being able to continue to increase its quarterly dividend for years to come. This, along with great free cash flow from operations, shows that the company will be able to produce increasing dividends for many years into the future. | Abbott Laboratories (ABT), the maker of medical diagnostic test kits, enteral nutrition products, and generic medicines, is a 133-year-old company started in 1888 by Dr. Wallace Abbott. Wall Street’s Take Based on the 13 Wall Street analysts currently offering 12-month price targets, 11 consider this stock to be a Strong Buy. Source: Abbot Labs TipRank Stock Analysis Abbott also received a "Perfect 10" Smart Score. | Abbott Laboratories (ABT), the maker of medical diagnostic test kits, enteral nutrition products, and generic medicines, is a 133-year-old company started in 1888 by Dr. Wallace Abbott. It is also one of only a few stocks traded anywhere that has increased its dividend every year for the past 50 years. Based on the company’s performance during the first nine months of the year and current market fundamentals, the company should be able to deliver the current earnings estimated by analysts of $4.68 per share over the next year. | Abbott Laboratories (ABT), the maker of medical diagnostic test kits, enteral nutrition products, and generic medicines, is a 133-year-old company started in 1888 by Dr. Wallace Abbott. The real earning power of this dividend is increasing with time, whereas most savings and investments are losing real earnings power with time. Based on the company’s performance during the first nine months of the year and current market fundamentals, the company should be able to deliver the current earnings estimated by analysts of $4.68 per share over the next year. |
31868.0 | 2021-12-26 00:00:00 UTC | 3 Dividend Stocks to Buy If the Market Crashes in 2022 | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-if-the-market-crashes-in-2022 | nan | nan | Market crashes happen, and they tend to drag down the best stocks along with the rest of the market. It's impossible to predict the timing and severity of the next downturn, but it's easy to imagine one occurring in the near term.
The omicron variant keeps threatening to pinch the global economy. If the latest variant of concern quickly fizzles out, rising inflation could prompt the Federal Reserve to raise interest rates.
These three companies make reliable dividend payments in good times and bad. Their stocks are up near 52-week highs at the moment, but an overall market downturn could push them down to highly attractive prices. Here's why you want to add them to your watchlist.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. At recent prices, the stock offers an anemic 1.4% dividend yield.
Patient investors who've held shares of this Dividend Aristocrat have seen their quarterly payments rise 77% over the past five years. Despite the big payout bumps, Abbott only needed around 33% of the free cash flow its operations generated over the past year to make dividend payments. That means the company shouldn't have any trouble raising the payout in line with earnings growth in the foreseeable future.
Abbott is a healthcare conglomerate that makes most of its money selling medical devices and diagnostics. Its medical-device segment is under some pressure due to COVID-19 because it takes a lot of doctor visits before patients can receive a new pacemaker or a replacement heart valve. Despite pandemic pressure, medical-device segment sales during the first nine months of 2021 rose 24.5% year over year to $10.6 billion.
Diagnostics sales in the first nine months of 2021 soared a whopping 73% year over year to $11.2 billion. Soaring demand for COVID-19 tests isn't good news for the medical-device segment, but improved diagnostics sales more than make up the difference.
It's been over 50 years since Abbott went a whole year without raising its dividend payout. Considering the company's well-diversified operation, investors can reasonably expect their payouts to keep rising for another decade or two.
Image source: Getty Images.
2. AbbVie
The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). Shares of the pharmaceutical giant are up more than 22% this year. Since spinning off from Abbott Laboratories in 2013, the stock has risen around 271%, but that's not the whole story. Once you factor in steadily rising dividend payments, investors who held on to their shares have already received a 438% total return since the beginning of 2013.
Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. Despite the rapid raises, the company needed just 42% of free cash flow generated over the past year to meet its rapidly rising dividend obligation.
AbbVie has offered an above-average dividend since its inception because investors are rightfully nervous about the company's ability to keep raising it in the long run. This company's largest source of revenue, Humira, is also the world's top-selling drug, with sales that rose 5.6% year over year in the third quarter up to an annualized $21.7 billion.
Humira lost market exclusivity in the EU in 2018, and now 85% of its sales come from the U.S. market. In about a year, biosimilar versions of Humira that are already approved by the Food and Drug Administration (FDA) are expected to finally begin hammering Humira sales into the dirt.
A few years ago, Humira's demise would have been disastrous for AbbVie, but the company's done an outstanding job at using Humira cash flows to license, acquire, and develop new blockbuster drugs that will more than offset the losses. Third-quarter sales of Rinvoq, a once-daily pill for the treatment of rheumatoid arthritis that AbbVie launched in 2019, more than doubled year over year to an annualized $1.8 billion. Sales of Skyrizi, a psoriasis drug also launched in 2019, soared 83.3% year over year to an annualized $3.2 billion.
The Botox brand of injectable botulinum toxin is far more resilient to the loss of exclusivity issues facing Humira because it isn't exactly exclusive in the first place. Cosmetic Botox is more popular than ever, with third-quarter sales that soared 39% year over year to an annualized $2.2 billion. Therapeutic Botox sales rose 23% year over year to an annualized $2.6 billion.
Image source: Getty Images.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) shares haven't performed as well as Abbott's or AbbVie's this year. Slow-growing sales of consumer-health products like Q-tips and Band-Aids have finally pushed the company to spin off its consumer-health segment into a new company.
You probably want to wait for the dips with Johnson & Johnson because at recent prices, the stock offers an uninspiring 2.5% yield. Once the company splits in two, shareholders will receive two quarterly payouts that should add up to the same amount they were receiving before the spin-off, or even more.
Johnson & Johnson has raised its dividend every year for 60 straight years. Over the past five years, the payout has risen by 32.5%, which isn't amazing but more than enough to outpace inflation.
While I'm not expecting a great deal of growth from the new consumer-health business, Johnson & Johnson's pharmaceutical division is firing on all cylinders. While the company's COVID-19 vaccine gets the most attention, it's not a very important part of the company's overall pharmaceutical business.
Johnson & Johnson's total pharmaceutical sales in the third quarter rose 13.8% year over year. A new psoriasis drug called Tremfya and a cancer therapy called Darzalex provided most of the growth. With the company's new products leading the way, investors can look forward to a steadily growing dividend payout for many years to come.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. Despite the big payout bumps, Abbott only needed around 33% of the free cash flow its operations generated over the past year to make dividend payments. Its medical-device segment is under some pressure due to COVID-19 because it takes a lot of doctor visits before patients can receive a new pacemaker or a replacement heart valve. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. Despite the big payout bumps, Abbott only needed around 33% of the free cash flow its operations generated over the past year to make dividend payments. Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. This company's largest source of revenue, Humira, is also the world's top-selling drug, with sales that rose 5.6% year over year in the third quarter up to an annualized $21.7 billion. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) shares haven't performed as well as Abbott's or AbbVie's this year. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. It's been over 50 years since Abbott went a whole year without raising its dividend payout. Sales of Skyrizi, a psoriasis drug also launched in 2019, soared 83.3% year over year to an annualized $3.2 billion. |
31869.0 | 2021-12-24 00:00:00 UTC | Abbott Laboratories Shares Close in on 52-Week High - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-close-in-on-52-week-high-market-mover-0 | nan | nan | Abbott Laboratories (ABT) shares closed today at 0.1% below its 52 week high of $139.27, giving the company a market cap of $245B. The stock is currently up 28.9% year-to-date, up 30.3% over the past 12 months, and up 296.6% over the past five years. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%.
Trading Activity
Trading volume this week was 13.1% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 68.0%
The company's stock price performance over the past 12 months beats the peer average by 55.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.6% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) shares closed today at 0.1% below its 52 week high of $139.27, giving the company a market cap of $245B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 68.0% The company's stock price performance over the past 12 months beats the peer average by 55.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.6% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 0.1% below its 52 week high of $139.27, giving the company a market cap of $245B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Trading Activity Trading volume this week was 13.1% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 0.1% below its 52 week high of $139.27, giving the company a market cap of $245B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 68.0% The company's stock price performance over the past 12 months beats the peer average by 55.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 9.6% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 0.1% below its 52 week high of $139.27, giving the company a market cap of $245B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
31870.0 | 2021-12-23 00:00:00 UTC | Notable Thursday Option Activity: H, ABT, JPM | ABT | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-h-abt-jpm | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Hyatt Hotels Corp (Symbol: H), where a total volume of 4,935 contracts has been traded thus far today, a contract volume which is representative of approximately 493,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.9% of H's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $95 strike call option expiring March 18, 2022, with 2,403 contracts trading so far today, representing approximately 240,300 underlying shares of H. Below is a chart showing H's trailing twelve month trading history, with the $95 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) saw options trading volume of 26,620 contracts, representing approximately 2.7 million underlying shares or approximately 44.4% of ABT's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $146 strike call option expiring January 21, 2022, with 3,672 contracts trading so far today, representing approximately 367,200 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $146 strike highlighted in orange:
And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 58,280 contracts, representing approximately 5.8 million underlying shares or approximately 43.7% of JPM's average daily trading volume over the past month, of 13.3 million shares. Especially high volume was seen for the $160 strike call option expiring December 23, 2021, with 5,802 contracts trading so far today, representing approximately 580,200 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for H options, ABT options, or JPM 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 $146 strike call option expiring January 21, 2022, with 3,672 contracts trading so far today, representing approximately 367,200 underlying shares of ABT. Especially high volume was seen for the $95 strike call option expiring March 18, 2022, with 2,403 contracts trading so far today, representing approximately 240,300 underlying shares of H. Below is a chart showing H's trailing twelve month trading history, with the $95 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 26,620 contracts, representing approximately 2.7 million underlying shares or approximately 44.4% of ABT's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $146 strike highlighted in orange: And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 58,280 contracts, representing approximately 5.8 million underlying shares or approximately 43.7% of JPM's average daily trading volume over the past month, of 13.3 million shares. | Especially high volume was seen for the $95 strike call option expiring March 18, 2022, with 2,403 contracts trading so far today, representing approximately 240,300 underlying shares of H. Below is a chart showing H's trailing twelve month trading history, with the $95 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 26,620 contracts, representing approximately 2.7 million underlying shares or approximately 44.4% of ABT's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $146 strike highlighted in orange: And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 58,280 contracts, representing approximately 5.8 million underlying shares or approximately 43.7% of JPM's average daily trading volume over the past month, of 13.3 million shares. Below is a chart showing JPM's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for H options, ABT options, or JPM options, visit StockOptionsChannel.com. | Especially high volume was seen for the $95 strike call option expiring March 18, 2022, with 2,403 contracts trading so far today, representing approximately 240,300 underlying shares of H. Below is a chart showing H's trailing twelve month trading history, with the $95 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 26,620 contracts, representing approximately 2.7 million underlying shares or approximately 44.4% of ABT's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $146 strike highlighted in orange: And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 58,280 contracts, representing approximately 5.8 million underlying shares or approximately 43.7% of JPM's average daily trading volume over the past month, of 13.3 million shares. Particularly high volume was seen for the $146 strike call option expiring January 21, 2022, with 3,672 contracts trading so far today, representing approximately 367,200 underlying shares of ABT. | Especially high volume was seen for the $95 strike call option expiring March 18, 2022, with 2,403 contracts trading so far today, representing approximately 240,300 underlying shares of H. Below is a chart showing H's trailing twelve month trading history, with the $95 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) saw options trading volume of 26,620 contracts, representing approximately 2.7 million underlying shares or approximately 44.4% of ABT's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $146 strike call option expiring January 21, 2022, with 3,672 contracts trading so far today, representing approximately 367,200 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $146 strike highlighted in orange: And JPMorgan Chase & Co (Symbol: JPM) saw options trading volume of 58,280 contracts, representing approximately 5.8 million underlying shares or approximately 43.7% of JPM's average daily trading volume over the past month, of 13.3 million shares. |
31871.0 | 2021-12-22 00:00:00 UTC | Abbott Laboratories Shares Close in on 52-Week High - Market Mover | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-close-in-on-52-week-high-market-mover | nan | nan | Abbott Laboratories (ABT) shares closed today at 0.2% below its 52 week high of $139.27, giving the company a market cap of $239B. The stock is currently up 25.5% year-to-date, up 27.1% over the past 12 months, and up 286.5% over the past five years. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 rose 0.3%.
Trading Activity
Trading volume this week was 21.2% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.5.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 59.6%
The company's stock price performance over the past 12 months beats the peer average by 56.2%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 8.1% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) shares closed today at 0.2% below its 52 week high of $139.27, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 rose 0.3%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 59.6% The company's stock price performance over the past 12 months beats the peer average by 56.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 8.1% higher than the average peer. | Abbott Laboratories (ABT) shares closed today at 0.2% below its 52 week high of $139.27, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 rose 0.3%. Trading Activity Trading volume this week was 21.2% higher than the 20-day average. | Abbott Laboratories (ABT) shares closed today at 0.2% below its 52 week high of $139.27, giving the company a market cap of $239B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 59.6% The company's stock price performance over the past 12 months beats the peer average by 56.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 8.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbott Laboratories (ABT) shares closed today at 0.2% below its 52 week high of $139.27, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 rose 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70. |
31872.0 | 2021-12-21 00:00:00 UTC | Best Long Term Stocks To Buy? 4 Health Care Stocks For Your Watchlist | ABT | https://www.nasdaq.com/articles/best-long-term-stocks-to-buy-4-health-care-stocks-for-your-watchlist | nan | nan | Top Health Care Stocks To Check Out This Week
In a world plagued by the coronavirus that is constantly mutating, health care stocks are yet again trending in the stock market. In this climate, with the Omicron variant wreaking havoc, investors could see themselves turning to the likes of vaccines stocks and other health care stocks. After all, many companies were brought into the limelight due to the pandemic as everyone is up to the race to contribute against the virus. There is evidence to suggest that the new variant is spreading at a frightening pace and countries around the globe are starting to take precautions. It has now been detected in dozens of countries, prompting many countries to reimpose travel restrictions and other measures.
Fortunately, health care companies have been working around the clock to create countermeasures against the virus. Recent reports showed that the third dose of Moderna’s (NASDAQ: MRNA) coronavirus vaccine would increase antibody levels against the omicron variant. A 50 microgram dose would incur a 37-fold increase in neutralizing antibodies according to the company. Besides that, Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) also claim that the third dose of their vaccine would restore protection to a level similar to the initial two-dose regimen against the original virus. Well, these are all encouraging developments that warrant excitement among investors and the general public alike. Therefore, do you have this list of top health care stocks to watch in the stock market today?
Best Health Care Stocks To Buy [Or Sell] This Week
Cerner Corporation (NASDAQ: CERN)
Veracyte Inc (NASDAQ: VCYT)
Novavax, Inc. (NASDAQ: NVAX)
Abbott Laboratories (NYSE: ABT)
Cerner
First, we have Cerner, a health care company that is a supplier of health information technology services, devices, and hardware. This includes a range of intelligent solutions and technology-enabled services that support the clinical, financial, and operational needs of organizations. CERN stock soared by more than 10% last week.
This came amid reports of Oracle (NYSE: ORCL) being in talks to acquire Cerner, which has been confirmed today. Oracle will be acquiring Cerner for $95.00 per share, or approximately $28.3 billion in equity value. This would further support the notion of Cerner’s move toward a strategy based on big data, population health management, and consumerism. Hence, moving away from the legacy health record business.
Financially, Cerner has been going from strength to strength. During the third quarter, it reported a revenue of $1.47 billion, up 7% year-over-year. Meanwhile, its adjusted diluted EPS increased by nearly 20% to $0.86. The company’s focus on cash generation is also having a positive impact as shown by a 32% increase in Non-GAAP Free Cash Flow. This is significant as it allowed the company to repurchase $375 million worth of shares for the quarter. With these developments, would you be keeping a close eye on CERN stock right now?
Source: TD Ameritrade TOS
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Veracyte
Following that, we will be looking at the genomic diagnostics company, Veracyte. Put simply, the company utilizes ribonucleic acid (RNA), whole transcriptome sequencing combined with machine learning to produce genomic tests. Over the past week, VCYT stock has been picking up steam. So, let us see what is piquing the interest of investors.
Veracyte announced last week the publication of clinical utility data confirming the ability of the Envisia Genomic Classifier to improve idiopathic pulmonary fibrosis (IPF) diagnosis. The findings suggest that the use of the test would increase diagnostic accuracy, physician confidence in diagnosis, and patient referral to appropriate therapy. IPF has historically been a challenging disease to diagnose, so development in this space would be a huge boost.
The company estimates that approximately 200,000 patients each year have unclear results despite following evaluation for suspected interstitial lung diseases in Europe and the U.S. Therefore, the Envisia Genomic Classifier would likely help physicians to make more timely and accurate diagnoses and treatment recommendations. Ultimately, this could be a breakthrough that would improve patient care. With that in mind, would you consider investing in VCYT stock?
Source: TD Ameritrade TOS
Novavax
Novavax is a clinical-stage vaccine company. In detail, it specializes in recombinant nanoparticle vaccines and adjuvants. By leveraging its recombinant nanoparticle vaccine technology, it produces vaccine candidates to respond to both known and newly emerging diseases. NVAX stock has risen more than 25% just within the past week.
For starters, the company and its partner, Serum Institute of India Pvt. Ltd (SII), announced last week that the WHO has granted Emergency Use Listing (EUL) for its COVID-19 vaccine with Matrix-M™ adjuvant. This pertains to vaccines manufactured and marketed by SII as COVOVAX™ in India and licensed territories. It appears that an additional EUL filing is under review by the WHO for vaccines to be marketed by Novavax under the brand name Nuvaxovid™.
Furthermore, there are even more positive developments coming from the European Union (EU) according to Reuters. Novavax could start delivering its vaccine shots to the EU as early as Q1 2022. This would be the fifth coronavirus vaccine to be brought to the EU market and would arrive at a time when the Omicron variant continues to spread. Given these considerations, would you buy NVAX stock ahead of time?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Renewable Energy Stocks For Your Watchlist
Abbott Laboratories
Last but not least, Abbott is a company that primarily focuses on a diversified line of health care products. Abbott has put science and innovation to work for more than 130 years to create more possibilities for people through the power of health. So, it is not surprising that investors continue to follow the company stock closely. ABT stock has risen by over 20% this year.
Earlier this month, the company announced that its board of directors has yet again increased its quarterly common dividend. This marks the company’s 50th consecutive year of dividend growth. It has now increased to 47 cents per share, a 4.4% increase that follows a 25% increase to the company’s quarterly dividend in 2021.
On top of that, the company also launched Similac 360 Total Care last month. This represents its next generation of infant formula with human milk oligosaccharides (HMOs). Besides that, it is also the first and only infant formula in the U.S. with a blend of five different HMOs, previously only found in breast milk. Thus, the formula aims to provide nutrition to support the whole baby’s health and development. Safe to say, Abbott does not appear to be resting on its laurels. All things considered, would you add ABT stock to your portfolio?
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Health Care Stocks To Buy [Or Sell] This Week Cerner Corporation (NASDAQ: CERN) Veracyte Inc (NASDAQ: VCYT) Novavax, Inc. (NASDAQ: NVAX) Abbott Laboratories (NYSE: ABT) Cerner First, we have Cerner, a health care company that is a supplier of health information technology services, devices, and hardware. ABT stock has risen by over 20% this year. All things considered, would you add ABT stock to your portfolio? | Best Health Care Stocks To Buy [Or Sell] This Week Cerner Corporation (NASDAQ: CERN) Veracyte Inc (NASDAQ: VCYT) Novavax, Inc. (NASDAQ: NVAX) Abbott Laboratories (NYSE: ABT) Cerner First, we have Cerner, a health care company that is a supplier of health information technology services, devices, and hardware. ABT stock has risen by over 20% this year. All things considered, would you add ABT stock to your portfolio? | Best Health Care Stocks To Buy [Or Sell] This Week Cerner Corporation (NASDAQ: CERN) Veracyte Inc (NASDAQ: VCYT) Novavax, Inc. (NASDAQ: NVAX) Abbott Laboratories (NYSE: ABT) Cerner First, we have Cerner, a health care company that is a supplier of health information technology services, devices, and hardware. ABT stock has risen by over 20% this year. All things considered, would you add ABT stock to your portfolio? | Best Health Care Stocks To Buy [Or Sell] This Week Cerner Corporation (NASDAQ: CERN) Veracyte Inc (NASDAQ: VCYT) Novavax, Inc. (NASDAQ: NVAX) Abbott Laboratories (NYSE: ABT) Cerner First, we have Cerner, a health care company that is a supplier of health information technology services, devices, and hardware. ABT stock has risen by over 20% this year. All things considered, would you add ABT stock to your portfolio? |
31873.0 | 2021-12-21 00:00:00 UTC | SPHQ, ABT, UPS, SPGI: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/sphq-abt-ups-spgi%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 Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $584.4 million dollar inflow -- that's a 17.3% increase week over week in outstanding units (from 66,260,000 to 77,690,000). Among the largest underlying components of SPHQ, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.7%, United Parcel Service Inc (Symbol: UPS) is up about 1.5%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 1.3%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average:
Looking at the chart above, SPHQ's low point in its 52 week range is $41.18 per share, with $53.25 as the 52 week high point — that compares with a last trade of $51.29. 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 SPHQ, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.7%, United Parcel Service Inc (Symbol: UPS) is up about 1.5%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 1.3%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $41.18 per share, with $53.25 as the 52 week high point — that compares with a last trade of $51.29. 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 SPHQ, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.7%, United Parcel Service Inc (Symbol: UPS) is up about 1.5%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 1.3%. For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $41.18 per share, with $53.25 as the 52 week high point — that compares with a last trade of $51.29. 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 SPHQ, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.7%, United Parcel Service Inc (Symbol: UPS) is up about 1.5%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $584.4 million dollar inflow -- that's a 17.3% increase week over week in outstanding units (from 66,260,000 to 77,690,000). For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $41.18 per share, with $53.25 as the 52 week high point — that compares with a last trade of $51.29. | Among the largest underlying components of SPHQ, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.7%, United Parcel Service Inc (Symbol: UPS) is up about 1.5%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500— Quality ETF (Symbol: SPHQ) where we have detected an approximate $584.4 million dollar inflow -- that's a 17.3% increase week over week in outstanding units (from 66,260,000 to 77,690,000). For a complete list of holdings, visit the SPHQ Holdings page » The chart below shows the one year price performance of SPHQ, versus its 200 day moving average: Looking at the chart above, SPHQ's low point in its 52 week range is $41.18 per share, with $53.25 as the 52 week high point — that compares with a last trade of $51.29. |
31874.0 | 2021-12-21 00:00:00 UTC | 3 Great Stocks to Buy With the Omicron Variant Spreading Like Wildfire | ABT | https://www.nasdaq.com/articles/3-great-stocks-to-buy-with-the-omicron-variant-spreading-like-wildfire | nan | nan | Broadway's lights have dimmed with several shows canceled. The famous Rockettes won't perform any more this year. The National Hockey League has delayed games between U.S. and Canadian teams.
Blame it all on the coronavirus omicron variant. The latest viral strain is so highly contagious that the number of infected people doubles within two or three days. U.S. government healthcare officials are warning that COVID-19 cases could skyrocket this winter.
We've seen in the past that increased COVID-19 concerns can lead to greater opportunities for some companies. Here are three great stocks to buy with the omicron variant spreading like wildfire.
Image source: Getty Images.
1. Abbott
Abbott (NYSE: ABT) made $1.9 billion in the third quarter from sales of its COVID-19 testing products. The company expects to generate between $1 billion and $1.4 billion from its COVID-19 tests in the fourth quarter. It's a pretty safe bet that sales total will increase as the omicron variant spreads over the coming months.
There is a potential downside for Abbott, though. The company's medical device sales fell quite a bit in 2020 with many healthcare providers bracing for a COVID-19 surge. It's possible that Abbott could experience some pain with the rise of the omicron variant.
However, the omicron variant didn't appear to be as severe in South Africa compared to earlier coronavirus variants. If this is also the case in the U.S. and other major markets for Abbott, the company might have only minimal negative repercussions but plenty of positive upside potential for its COVID-19 tests.
Investors have other reasons to really like Abbott as well. The company has several growth drivers, notably including its FreeStyle Libre continuous glucose monitoring devices. Abbott also recently increased its dividend for the 50th consecutive year, joining the elite group of stocks known as Dividend Kings.
2. Pfizer
You probably expected that vaccine makers would benefit from the spread of the omicron variant. But Pfizer (NYSE: PFE) could be a winner on two different fronts.
The European Union recently exercised its option to buy another 200 million doses of Comirnaty, the COVID-19 vaccine developed by Pfizer and its partner, BioNTech. The additional order will allow the EU to purchase doses of the omicron-specific vaccine Pfizer and BioNTech are developing.
It remains to be seen if the omicron variant will result in higher sales of Comirnaty in the U.S. The federal government has already committed to buying 500 million doses of the vaccine plus another 500 million to donate to other countries. But Pfizer will likely profit from the omicron variant with its COVID-19 pill, Paxlovid.
Pfizer already has a $5.29 billion deal with the U.S. to provide 10 million doses of Paxlovid pending authorization. Although the drug hasn't won authorizations anywhere yet, they're likely on the way soon. An intense surge in COVID-19 cases could lead to even more sales for Paxlovid.
3. Teladoc Health
We saw a spike in the use of telehealth services during the initial COVID-19 waves in 2020. The trend lit a fire beneath Teladoc Health's (NYSE: TDOC) shares. Omicron could get the fire burning yet again.
The highly transmissible nature of the omicron variant could make Americans more reluctant to visit physicians in person -- even if they're already fully vaccinated. For many illnesses, telehealth is a great alternative. And Teladoc offers virtual care visits 24 hours a day, seven days a week.
The telehealth stock is also poised for a comeback. Teladoc's shares are down more than 50% year to date, mainly on concerns that growth is slowing due to the pandemic waning. If those concerns rebound, it's likely that Teladoc stock will too.
But Teladoc's long-term prospects appear to be bright regardless of what happens with COVID-19. Its virtual care solutions are cost-effective for payers and convenient for patients. Even as others jump into the telehealth market, Teladoc remains the clear leader.
10 stocks we like better than Abbott Laboratories
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Keith Speights owns Pfizer and Teladoc Health. The Motley Fool owns and recommends Teladoc Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Abbott (NYSE: ABT) made $1.9 billion in the third quarter from sales of its COVID-19 testing products. If this is also the case in the U.S. and other major markets for Abbott, the company might have only minimal negative repercussions but plenty of positive upside potential for its COVID-19 tests. The European Union recently exercised its option to buy another 200 million doses of Comirnaty, the COVID-19 vaccine developed by Pfizer and its partner, BioNTech. | Abbott Abbott (NYSE: ABT) made $1.9 billion in the third quarter from sales of its COVID-19 testing products. Here are three great stocks to buy with the omicron variant spreading like wildfire. The European Union recently exercised its option to buy another 200 million doses of Comirnaty, the COVID-19 vaccine developed by Pfizer and its partner, BioNTech. | Abbott Abbott (NYSE: ABT) made $1.9 billion in the third quarter from sales of its COVID-19 testing products. Here are three great stocks to buy with the omicron variant spreading like wildfire. 10 stocks we like better than Abbott Laboratories When our award-winning analyst team has a stock tip, it can pay to listen. | Abbott Abbott (NYSE: ABT) made $1.9 billion in the third quarter from sales of its COVID-19 testing products. Blame it all on the coronavirus omicron variant. Pfizer You probably expected that vaccine makers would benefit from the spread of the omicron variant. |
31875.0 | 2021-12-19 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 12/19/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-12-19-2021 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories (Abbott) is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its products include a line of rhythm management, electrophysiology, heart failure, vascular and structural heart devices for the treatment of cardiovascular diseases, and diabetes care products for people with diabetes, as well as neuromodulation devices for the management of chronic pain and movement disorders. The Company's products are sold directly to wholesalers, distributors, government agencies, health care facilities, pharmacies, and independent retailers from Abbott-owned distribution centers and public warehouses. It offers cardiovascular and metabolic products, including Lipanthyl, TriCor, Teveten, Teveten Plus, Physiotens, and Synthroid.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABBOTT LABORATORIES
Full Guru Analysis for ABT>
Full Factor Report for ABT>
DAVITA INC (DVA) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DaVita Inc., formerly DaVita HealthCare Partners Inc., operates one division: DaVita Kidney Care (Kidney Care). The Kidney Care division consists of the Company's United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. The Company's segments include U.S. dialysis and related lab services and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as an end-stage renal disease (ESRD). In addition, as of March 31, 2019, the Company operated or provided administrative services to 243 outpatient dialysis centers located in nine countries outside of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of DAVITA INC
Full Guru Analysis for DVA>
Full Factor Report for DVA>
ENCOMPASS HEALTH CORP (EHC) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Encompass Health Corporation is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in approximately 42 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company manages its operations through two segments, including inpatient rehabilitation and home health and hospice. It is an owner and operator of inpatient rehabilitation hospitals. It provides specialized rehabilitative treatment on an inpatient basis. The Company operates home health and hospice business through EHHI Holdings, Inc. (EHHI). Its home health agencies provide a range of skilled home health services. These services include skilled nursing, physical, occupational and speech therapy, medical social work, and home health aide services, among others. It also offers specialty programs related to post-operative care, fall prevention, chronic disease management and transitional care.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: FAIL
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ENCOMPASS HEALTH CORP
Full Guru Analysis for EHC>
Full Factor Report for EHC>
ENSIGN GROUP INC (ENSG) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Ensign Group, Inc., through its operating subsidiaries, provides healthcare services. The Company is principally engaged in providing a range of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services. The Company operates approximately 245 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. The Company has two reportable segments: skilled services and real estate. skilled services includes the operation of skilled nursing facilities and rehabilitation therapy services. The real estate segment is comprised of properties owned by the Company and leased to skilled nursing and assisted living operations where the properties are subject to triple-net long-term leases, including operations that are owned and operated by the Company.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ENSIGN GROUP INC
Full Guru Analysis for ENSG>
Full Factor Report for ENSG>
HCA HEALTHCARE INC (HCA) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: HCA Healthcare, Inc. is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. It owns and operates approximately 186 hospitals, comprised of 179 general, acute care hospitals; five psychiatric hospitals; and two rehabilitation hospitals. The Company also operates around 121 freestanding surgery centers and approximately 21 freestanding endoscopy centers. The Company operates in two geographically organized groups: The National and American Groups. The National Group includes around 97 hospitals located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, North Carolina, South Carolina, Utah and Virginia. The American Group includes approximately 82 hospitals located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Tennessee and Texas. The Company also operates seven hospitals in England.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of HCA HEALTHCARE INC
Full Guru Analysis for HCA>
Full Factor Report for HCA>
More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DAVITA INC (DVA) is a large-cap value stock in the Healthcare Facilities industry. The Company's products are sold directly to wholesalers, distributors, government agencies, health care facilities, pharmacies, and independent retailers from Abbott-owned distribution centers and public warehouses. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DAVITA INC (DVA) is a large-cap value stock in the Healthcare Facilities industry. Detailed Analysis of DAVITA INC Full Guru Analysis for DVA> Full Factor Report for DVA> ENCOMPASS HEALTH CORP (EHC) is a mid-cap growth stock in the Healthcare Facilities industry. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DAVITA INC (DVA) is a large-cap value stock in the Healthcare Facilities industry. Company Description: Encompass Health Corporation is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in approximately 42 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. | ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> DAVITA INC (DVA) is a large-cap value stock in the Healthcare Facilities industry. The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. |
31876.0 | 2021-12-19 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Martin Zweig - 12/19/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-martin-zweig-12-19-2021 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
CORCEPT THERAPEUTICS INCORPORATED (CORT) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Corcept Therapeutics Incorporated is a commercial-stage company engaged in the discovery and development of drugs to treat severe metabolic, oncologic and psychiatric disorders by modulating the effects of the steroid hormone cortisol. The Company has marketed the cortisol modulator Korlym in the United States for the treatment of patients with a form of hypercortisolism known as endogenous Cushing's syndrome. Cortisol activity can be modulated effectively by a drug that competes with cortisol as it attempts to bind to the glucocorticoid receptor (GR). The Company's active ingredient, mifepristone, reduces the binding of excess cortisol to GR. Its portfolio of selective cortisol modulators consists of four structurally distinct series, including relacorilant, exicorilant and miricorilant. These compounds bind to GR but not the progesterone, estrogen or androgen receptors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED
Full Guru Analysis for CORT>
Full Factor Report for CORT>
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories (Abbott) is engaged in the discovery, development, manufacture, and sale of a diversified line of health care products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its products include a line of rhythm management, electrophysiology, heart failure, vascular and structural heart devices for the treatment of cardiovascular diseases, and diabetes care products for people with diabetes, as well as neuromodulation devices for the management of chronic pain and movement disorders. The Company's products are sold directly to wholesalers, distributors, government agencies, health care facilities, pharmacies, and independent retailers from Abbott-owned distribution centers and public warehouses. It offers cardiovascular and metabolic products, including Lipanthyl, TriCor, Teveten, Teveten Plus, Physiotens, and Synthroid.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: FAIL
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ABBOTT LABORATORIES
Full Guru Analysis for ABT>
Full Factor Report for ABT>
INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Innoviva, Inc. is a company with a portfolio of royalties and other healthcare assets. Its royalty portfolio contains respiratory assets partnered with Glaxo Group Limited (GSK), including, RELVAR/BREO ELLIPTA (fluticasone furoate/ vilanterol, FF/VI), ANORO ELLIPTA (umeclidinium bromide/ vilanterol, UMEC/VI) and TRELEGY ELLIPTA (the combination FF/UMEC/VI). Under the Long-Acting Beta2 Agonist (LABA) Collaboration Agreement, Innoviva is entitled to receive royalties from GSK on sales of RELVAR/BREO ELLIPTA and royalties from the sales of ANORO and ELLIPTA. RELVAR/BREO is a once-daily combination medicine consisting of a LABA, vilanterol (VI), and an inhaled corticosteroid (ICS) and fluticasone furoate (FF). ANORO ELLIPTA a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, VI. TRELEGY ELLIPTA a once-daily combination medicine consisting of an ICS, LAMA and LABA.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: FAIL
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of INNOVIVA INC
Full Guru Analysis for INVA>
Full Factor Report for INVA>
MEDIFAST INC (MED) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Medifast, Inc. (Medifast) is a sellers of weight loss, weight management and healthy living products all based on its formulas under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by Take Shape for Life, and Flavors of Home brands. The Company's operations are conducted through its subsidiaries Jason Pharmaceuticals, Inc., OPTAVIA, LLC, Jason Enterprises, Inc., Jason Properties, LLC, Medifast Franchise Systems, Inc., Seven Crondall Associates, LLC, Corporate Events, Inc., OPTAVIA (Hong Kong) Limited, OPTAVIA (Singapore) PTE. LTD and OPTAVIA Health Consultation (Shanghai) Co., Ltd. The Company's product line includes approximately 137 consumable options, including, bars, bites, pretzels, puffs, cereal crunch, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: FAIL
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: FAIL
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of MEDIFAST INC
Full Guru Analysis for MED>
Full Factor Report for MED>
NOVO NORDISK A/S (ADR) (NVO) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of NOVO NORDISK A/S (ADR)
Full Guru Analysis for NVO>
Full Factor Report for NVO>
More details on Validea's Martin Zweig strategy
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED Full Guru Analysis for CORT> Full Factor Report for CORT> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. The Company's products are sold directly to wholesalers, distributors, government agencies, health care facilities, pharmacies, and independent retailers from Abbott-owned distribution centers and public warehouses. | Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED Full Guru Analysis for CORT> Full Factor Report for CORT> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> NOVO NORDISK A/S (ADR) (NVO) is a large-cap growth stock in the Biotechnology & Drugs industry. | Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED Full Guru Analysis for CORT> Full Factor Report for CORT> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. | Detailed Analysis of CORCEPT THERAPEUTICS INCORPORATED Full Guru Analysis for CORT> Full Factor Report for CORT> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> INNOVIVA INC (INVA) is a small-cap value stock in the Biotechnology & Drugs industry. The following are the top rated Healthcare stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. |
31877.0 | 2021-12-18 00:00:00 UTC | 3 Reasons Why This Healthcare Stock Is a Long-Term Buy | ABT | https://www.nasdaq.com/articles/3-reasons-why-this-healthcare-stock-is-a-long-term-buy | nan | nan | If you think about it, discovering new treatments in healthcare can be similar to building a sound investment portfolio. A great deal of time is spent on research and monitoring, finding the right mix, and then waiting for that magical day. For pharmaceutical companies, that day might come when a product is approved or hits the market for commercial sales. For investors, that day might come when you cash in on your portfolio's gains that were the result of your hard work and due diligence.
Research-based pharmaceutical company AbbVie (NYSE: ABBV) is experiencing the excitement of U.S. Food and Drug Administration (FDA) approvals while also carrying an honored distinction of being a Dividend Aristocrat, combining to give investors three good reasons to consider it part of their long-term investment strategy.
Image source: Getty Images.
1. FDA-approved eye drops are a first-of-their-kind
On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). An inability to focus clearly on near objects typically affects adults over 40, which makes up nearly one half of the U.S. population -- 128 million people. Age-related blurry vision is usually remedied through the use of reading glasses or by zooming in on mobile device content while also holding it further away from the face, which can be quite annoying -- trust me on this one.
AbbVie's Vuity provides a treatment that could offer an alternative to surgery, reading glasses, or the minor annoyances experienced by those using the zoom-and-hold-at-a-distance method. It offers a once-daily prescription that lasts from six to 10 hours, aimed at improving near and intermediate sight without altering distance vision.
Many of us have been to an eye doctor. A routine exam sometimes consists of receiving eye drops. Afterwards they tell you that while your eyes are dilated, you may be sensitive to light and possibly have blurry vision for a short period of time. Vuity basically does the opposite, leaning on the eye's own ability to reduce pupil size, which results in the improved vision.
According to the World Health Organization, the number of people worldwide with age-related blurry vision is at 1.8 billion. That number is expected to increase to 2.1 billion by 2030. At an average cost of $79 per patient for a 30-day supply for even a fraction of the 2 billion people with age-related blurry vision, the potential for strong revenue growth is clear.
2. Expanded usage of Rinvoq could propel annual sales to increase eightfold
The announcement of Vuity came on the heels of another announcement by the company during the same week. AbbVie proudly announced that phase 3 clinical studies were performing well for the safety and efficacy of Rinvoq, as a treatment for moderate to severe Crohn's disease in adults who previously had inadequate response to biologic therapy.
The results of the studies showed that the oral therapy met its primary endpoints of clinical remission and endoscopic response. Compared to placebo treatment, clinical remission jumped from 21% to 39% at week 12, while endoscopic response jumped from 4% to 35% over the same time period, meaning patients reported that stool frequency and abdominal pain were significantly reduced.
The success of the studies will go a long way toward the ultimate goals of achieving FDA approval for Rinvoq as a treatment for Crohn's disease. It will not be the first approval for Rinvoq, which is currently FDA-approved for treating rheumatoid arthritis. But with sales success of Rinvoq comes ongoing concern related to the side effects caused by JAK inhibitors such as Rinvoq, leading the FDA to require mandatory label updates on the product warning of the potential for serious heart-related risks or the risk of cancer.
For now, the product continues to sell, and is expected to see an increase in sales over the next three to four years. Rinvoq brought in $425 million for the third quarter, and $1.1 billion through the first nine months of the year. The company expects that number to increase to $8 billion by 2025.
3. This Aristocrat's yield crushes other healthcare companies in the S&P 500
In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. This comes in at nearly twice the average healthcare company yield of 2.28% and above that of healthcare companies in the S&P 500, which average 1.75%. The overall S&P 500 dividend yield was at 2% for November, which also pales in comparison to AbbVie.
With these dividend payouts, investors could choose to receive the funds as cash in their brokerage account or reinvest dividends toward the purchase of additional shares of the company stock. To give you an idea of how much that might be, the quarterly dividend in 2021 was $1.30, resulting in an annualized payment of $5.20 per share. For 2022 the dividend has been raised to $1.41, which should equate to $5.64 annually if the remainder of the year stays consistent. This represents an 8.5% dividend increase for investors, and will begin paying out in February.
If you invested $5,000 in AbbVie stock at the current price of $126, it would get you 40 shares. Those 40 shares would gain you an extra $225 of annual dividends. That's an additional $225 in your pocket before taxes, or an extra 1.8 shares of stock if reinvested. And it's worth pointing out that in cases of stock price appreciation, an extra 1.8 shares can result in even more gains down the road.
As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. It gets this distinction through its spin-off from Abbott Laboratories in 2013.
It should also be noted that Abbott is one year shy of becoming a Dividend King, meaning it has increased dividends for 49 consecutive years -- next year being the magic 50. This should bode well for investors looking at AbbVie, because it provides support and confidence that AbbVie will continue its run of consecutive dividend increases well into the future.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Jeff Little 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. | Research-based pharmaceutical company AbbVie (NYSE: ABBV) is experiencing the excitement of U.S. Food and Drug Administration (FDA) approvals while also carrying an honored distinction of being a Dividend Aristocrat, combining to give investors three good reasons to consider it part of their long-term investment strategy. At an average cost of $79 per patient for a 30-day supply for even a fraction of the 2 billion people with age-related blurry vision, the potential for strong revenue growth is clear. AbbVie proudly announced that phase 3 clinical studies were performing well for the safety and efficacy of Rinvoq, as a treatment for moderate to severe Crohn's disease in adults who previously had inadequate response to biologic therapy. | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. |
31878.0 | 2021-12-16 00:00:00 UTC | Here's Why Investors Should Consider DexCom Stock | ABT | https://www.nasdaq.com/articles/heres-why-investors-should-consider-dexcom-stock | nan | nan | Healthcare stock DexCom (NASDAQ: DXCM) has a track record of tremendous business growth and share price appreciation that has remained consistent and robust during the pandemic. In fact, shares are up 50% over the trailing 12 months.
In this segment of Backstage Pass, recorded on Dec. 1, Fool contributors Rachel Warren and Brian Feroldi discuss the stock's recent earnings, its high valuation, and its long-term growth prospects.
10 stocks we like better than DexCom
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Rachel Warren: This is another company I talk about fairly frequently and it's a healthcare stock I really like. For anyone who's not familiar, DexCom develops and manufactures continuous glucose monitoring systems used by type 1 and type 2 diabetics around the world. DexCom's customer base includes both individual patients as well as providers. The company remains one of the top players in the multi-billion-dollar CGM market even though it has faced increased competition in recent years.
The current model that it sells is its G6 continuous glucose monitoring device. This features a sensor with a 10-day wear time that users insert beneath the skin with a one-touch applicator. It only releases one generation of its system at a time. The next one the G7 is expected to be launched as soon as this quarter.
Shares of DexCom. This has been a high-flying stock. It's gained about 780% over the trailing-five-year period, more than 50% over the past six months alone. This is a stock that I think a lot of investors including myself are very excited about. Just a quick highlight of the third-quarter performance revenue was up 30% year over year for a total of $650 million, U.S. revenue growth was up 23% year over year while its international revenue in the third quarter were up 57% year over year. Its gross profits on a GAAP basis totaled almost 69% of its revenue for the third-quarter.
Net income was down slightly although operating income grew to $118 million compared to $94 million in the third-quarter of last year. The company has a really strong cash position. It closed the most recent quarter with about $2.7 billion in cash, cash equivalents, and marketable securities compared to $735 million in total current liabilities. This is a great company with a really strong growth trajectory in a very lucrative industry. I think its next-generation CGM system, which is about to release is also going to be very key for it to remain competitive.
One of the company's top competitors at Abbott with its FreeStyle Libre, which notably has a longer wear time. Wear time translates to expense for the consumer. So that also translates to more customers, or less customers for Dexcom so I'm very excited to see where this company is headed in the next few years.
Brian Feroldi: Brian just mentioned selling Apple in 2010. I sold DexCom in 2006 for about $7 per share. It's currently $560 so oops. [laughs] But DexCom has done really well. It's been one of the best-performing stocks in the market over the last 10 plus years. Today, this stock trades at 151 times forward earnings. In your opinion, is the price-to-earnings ratio a good metric to look at to judge this company's value?
Warren: I think it's a great metric to look at. I don't think it tells the entire story for this company. I think DexCom is one of those healthcare stocks that's had an astronomical track record of share price growth.
It trades at a very high valuation. There's definitely no doubt about that, particularly for a healthcare stock. I think this comes down to a few things. I think there's a lot of robust investor sentiment around the stock and I think the fact that this is a company that essentially dominates the space that it's in. This is a company that grew its revenue 43% in 2019, 31% in 2020.
It operates in an industry and leads an industry that generates consistent demand and has plenty of untapped growth potential left. There was a study done in 2020 by a company called Bigfoot Biomedical and it reported that only one in four potential CGM users actually use this device, which means that DexCom has a lot of runway left to tap into users it hasn't yet reached, potential customers within the CGM industry. I think if you weigh all of these factors as well as DexCom's leadership in this industry, it's P/E ratio makes more sense. It's high, but to me it's worth it for this company.
Brian Feroldi: OK. Thank you.
Brian Feroldi has no position in any of the stocks mentioned. Rachel Warren owns Apple and DexCom. The Motley Fool owns and recommends Apple. The Motley Fool recommends DexCom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Healthcare stock DexCom (NASDAQ: DXCM) has a track record of tremendous business growth and share price appreciation that has remained consistent and robust during the pandemic. In this segment of Backstage Pass, recorded on Dec. 1, Fool contributors Rachel Warren and Brian Feroldi discuss the stock's recent earnings, its high valuation, and its long-term growth prospects. The company remains one of the top players in the multi-billion-dollar CGM market even though it has faced increased competition in recent years. | Healthcare stock DexCom (NASDAQ: DXCM) has a track record of tremendous business growth and share price appreciation that has remained consistent and robust during the pandemic. In this segment of Backstage Pass, recorded on Dec. 1, Fool contributors Rachel Warren and Brian Feroldi discuss the stock's recent earnings, its high valuation, and its long-term growth prospects. Just a quick highlight of the third-quarter performance revenue was up 30% year over year for a total of $650 million, U.S. revenue growth was up 23% year over year while its international revenue in the third quarter were up 57% year over year. | See the 10 stocks *Stock Advisor returns as of November 10, 2021 Rachel Warren: This is another company I talk about fairly frequently and it's a healthcare stock I really like. Just a quick highlight of the third-quarter performance revenue was up 30% year over year for a total of $650 million, U.S. revenue growth was up 23% year over year while its international revenue in the third quarter were up 57% year over year. There was a study done in 2020 by a company called Bigfoot Biomedical and it reported that only one in four potential CGM users actually use this device, which means that DexCom has a lot of runway left to tap into users it hasn't yet reached, potential customers within the CGM industry. | In this segment of Backstage Pass, recorded on Dec. 1, Fool contributors Rachel Warren and Brian Feroldi discuss the stock's recent earnings, its high valuation, and its long-term growth prospects. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Rachel Warren: This is another company I talk about fairly frequently and it's a healthcare stock I really like. Brian Feroldi: Brian just mentioned selling Apple in 2010. |
31879.0 | 2021-12-16 00:00:00 UTC | Unstoppable Dividend King for 2022: AbbVie or Johnson & Johnson? | ABT | https://www.nasdaq.com/articles/unstoppable-dividend-king-for-2022%3A-abbvie-or-johnson-johnson | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. They're both large-cap stocks in the healthcare space that are also Dividend Kings. Both appear to be undervalued based on their current and expected future earnings. They're the type of steady, long-term investments that retirees and other investors could love. Yet one of these two, in my view, is a better bet as an unstoppable stock in 2022. Let's take a closer look.
Image source: Getty Images.
The case for Johnson & Johnson
Johnson & Johnson had revenue of $82.5 billion last year, more than the gross domestic product of many countries. And the company keeps growing. Over the past five years, J&J has increased revenue each year -- or some 27% in total during that period.
J&J's greatest strengths are its size and diversity of revenue streams. The company operates three segments led by pharmaceuticals which had $13 billion in sales during the latest quarter, followed by medical devices which brought in $6.6 billion, and consumer health which achieved $3.7 billion. Combined, the company reported $23.3 billion in revenue, up 10.7% over the year-ago period.
Of note, the company actually plans to split off into two separate entities over the next two years. Pharmaceuticals and medical devices will form one company and consumer health will form the other. With most of the company's growth in its pharmaceutical segment, investors may want to stick with that part of the company when the split occurs.
In the latest quarter, pharmaceutical sales rose 13.8% over the year-ago period, led by strength in the company's growing stable of oncology drugs. Expect strong growth too in medical devices, helped by the Carto Vizigo and Carto 3 V7. These systems, which aid in stabilizing heart rhythms, could be in greater demand now that more non-COVID procedures are being performed again.
J&J has faced some notable challenges regarding opioid and baby-powder products in recent years. Just this week, the Supreme Court rejected the company's request to halt a talcum powder lawsuit by the state of Mississippi.
But many investors have remained loyal to the company, at least in part because it has raised its dividend for 59 consecutive years, including a 5% raise in 2021 to $1.06 per share. At present, this provides a yield of about 2.5%, and the dividend is well-covered with a payout ratio of 47.7%, leaving plenty of room for continued raises.
Moreover, the company remains well in the black with a net profit margin of 15.7% in the latest quarter, slightly above the pharmaceutical industry average of 14.1%. Earnings per share were $1.37, up 3% over the same period in 2020.
The case for AbbVie
Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. This year is looking good too. Through the first nine months, the company reported revenue of $41.3 billion, putting it on track to easily surpass the $45.8 billion it posted last year.
AbbVie is best-known for the world's biggest-selling drug, Humira, an immunology medication with several uses. However, it goes off patent in 2023, and that has investors concerned. In the third quarter, Humira's worldwide sales were $4.5 billion, up 5% over the year-ago period, but its international sales were $812 million, down 14.6% year over year, due to biosimilar competition. The drug already went off patent in Europe in 2018.
However, AbbVie has other products poised to pick up the slack as Humira's revenue declines. The company's two new immunology drugs, Rinvoq and Skyrizi, posted revenue of $796 million and $453 million, respectively, in the third quarter. While those numbers pale in comparison to Humira's current sales, it's a start. Remember that in 2003, Humira's first full year on the market, it produced only $280 million in sales. And AbbVie expects to expand labeling for the two newer drugs, so those numbers will likely grow.
What's more, Humira's sales won't necessarily crater after it loses patent exclusivity in the U.S. A good comparison is Botox, which already has plenty of competition, yet it continues to produce strong numbers for AbbVie. Botox Therapeutic brought in $645 million in the quarter, up 23.4% year over year, and Botox Cosmetic brought in $545 million, up 38.5% over the same period in 2020.
Meanwhile, income-oriented investors should be pleased to know that AbbVie will raise its dividend 8.5% in 2022 to $1.41 a share, beginning with the first quarter. That gives it a current yield of 4.14%, comfortably higher than Johnson & Johnson's dividend. Counting its time as part of Abbott, AbbVie has raised its dividend for 50 consecutive years. And since becoming a separate company in 2013, AbbVie has raised its dividend 250% while still managing to keep its payout ratio at a conservative 41%.
The company also maintains strong profit margins, coming in at 22.2% in the latest quarter. And its price-to-earnings ratio of 29.9, while higher than J&J's 24.7, is still well below the pharmaceutical average of 34.5.
ABBV data by YCharts.
The choice is clear
There are plenty of reasons to like both healthcare stocks: healthy margins, deep revenue streams, and of course, dependable dividend raises. AbbVie has a huge stable of drugs; Johnson & Johnson has its own large pharmaceutical portfolio plus two other segments with consumer care and medical instruments -- at least, for now.
However, AbbVie seems to have more momentum. It has seen greater growth in its share price, revenue, and dividends over the past five years than has Johnson & Johnson -- and I expect that to continue. Given a choice between the two, I prefer AbbVie.
10 stocks we like better than Johnson & Johnson
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Jim Halley owns AbbVie and Johnson & Johnson. 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. | In the latest quarter, pharmaceutical sales rose 13.8% over the year-ago period, led by strength in the company's growing stable of oncology drugs. What's more, Humira's sales won't necessarily crater after it loses patent exclusivity in the U.S. A good comparison is Botox, which already has plenty of competition, yet it continues to produce strong numbers for AbbVie. The choice is clear There are plenty of reasons to like both healthcare stocks: healthy margins, deep revenue streams, and of course, dependable dividend raises. | The case for Johnson & Johnson Johnson & Johnson had revenue of $82.5 billion last year, more than the gross domestic product of many countries. The company operates three segments led by pharmaceuticals which had $13 billion in sales during the latest quarter, followed by medical devices which brought in $6.6 billion, and consumer health which achieved $3.7 billion. In the latest quarter, pharmaceutical sales rose 13.8% over the year-ago period, led by strength in the company's growing stable of oncology drugs. | The case for Johnson & Johnson Johnson & Johnson had revenue of $82.5 billion last year, more than the gross domestic product of many countries. The case for AbbVie Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. It has seen greater growth in its share price, revenue, and dividends over the past five years than has Johnson & Johnson -- and I expect that to continue. | The case for Johnson & Johnson Johnson & Johnson had revenue of $82.5 billion last year, more than the gross domestic product of many countries. The company operates three segments led by pharmaceuticals which had $13 billion in sales during the latest quarter, followed by medical devices which brought in $6.6 billion, and consumer health which achieved $3.7 billion. In the latest quarter, pharmaceutical sales rose 13.8% over the year-ago period, led by strength in the company's growing stable of oncology drugs. |
31880.0 | 2021-12-16 00:00:00 UTC | Interesting ABT Put And Call Options For August 2022 | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-august-2022 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $10.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $124.25 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $136.13/share today.
Because the $135.00 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 7.96% return on the cash commitment, or 11.82% 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 $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $6.95. If an investor was to purchase shares of ABT stock at the current price level of $136.13/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.62% if the stock gets called away at the August 2022 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 $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 7% 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 5.11% boost of extra return to the investor, or 7.58% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $136.13) 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 $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 2022 expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 7% 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 begin trading today, for the August 2022 expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 2022 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 2022 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 $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 2022 expiration. |
31881.0 | 2021-12-16 00:00:00 UTC | 3 Stocks That Just Declared Dividend Raises | ABT | https://www.nasdaq.com/articles/3-stocks-that-just-declared-dividend-raises | nan | nan | For all of its attractions, the healthcare sector isn't always a hotbed of dividend stocks. Drugs are expensive to develop and sell while big pharmacy chains need lots of real estate and personnel. So costs are often high, which can limit shareholder payouts.
But as ever in the stock market, there are some notable exceptions. In the very recent past, three prominent names in the healthcare industry have declared dividend raises: Pfizer (NYSE: PFE), Abbott Laboratories (NYSE: ABT), and CVS Health (NYSE: CVS). Let's take a closer look at this increasingly generous trio.
Image source: Getty Images.
1. Pfizer
Of our three stocks, Pfizer is arguably the healthcare sector's rock star at the moment. That status has been enhanced, if modestly, by the company's recent dividend raise. Earlier this month, the company declared its new quarterly payout of $0.40 per share. While that's only up a penny, it is the 333rd quarterly dividend in a row that the company has paid, a dizzying number by any standard.
Pfizer has been going gangbusters since its Comirnaty coronavirus vaccine, co-developed with Germany's BioNTech, was approved in most major countries starting last year. While that's putting some serious zip into Pfizer's top and bottom lines, it's not the company's only catalyst.
Aside from vaccines, all but one of Pfizer's six product categories saw revenue increases in the third quarter. This included oncology (up 12% to $3.1 billion), hospital products (up 32% to almost $2.4 billion), and internal medicine (up just 1% to $2.1 billion). Its much smaller rare-diseases area saw a 16% increase to $869 million while the inflammation and immunology segment fell 7% to $1.1 billion.
The pharmaceutical industry giant is in an enviable position right now with Comirnaty -- still a go-to coronavirus vaccine in a world facing new variants -- buttressed by Pfizer's array of other popular products.
The latest dividend will be dispensed March 4 to stockholders of record as of Jan. 28. At the most recent closing share price, it would yield 2.9%.
2. Abbott
Elsewhere in the pharmaceutical sphere is Abbott Laboratories, one of the most reliable dividend payers and raisers in the sector. In fact, the company is about to graduate to Dividend King status with its 50th consecutive annual dividend raise. The company will boost its quarterly payout 4% to $0.47 per share. This will be the company's 392nd dividend increase in a row, dating back to 1924 and surpassing Pfizer's impressive streak.
In the latest quarter, Abbott managed to increase sales in all four of its product categories. Most notable was its diagnostics unit, which enjoyed a nearly 50% year-over-year rise in sales thanks to COVID-19 tests. Meanwhile, the company's big, established pharmaceuticals business and its medical devices unit also saw healthy increases of around 15% apiece. The smallest division, nutrition, recorded a nearly 10% gain.
For my money, Abbott has one of the best mixes of newer medications with growth potential on the one hand complemented by more established, income-earning lines. This is a potent blend that not only produces solid fundamentals but also keeps investors encouraged to hold on to their shares.
And then there's the company's ever-growing dividend, yielding 1.4% at the current stock price. It is to be paid next Feb. 15 to investors of record as of Jan. 14.
3. CVS
One of the top venues helping to fuel the success of Pfizer and Abbott is your local CVS. The sprawling pharmacy chain declared its own dividend increase in mid-December, hiking its quarterly payout 10% to $0.55 per share.
If pharmaceutical makers like Pfizer and Abbott are doing well, it's nearly a lock that good pharmacy operators won't be far behind. Sure enough, CVS managed to crank revenue 10% higher in its most recently reported quarter and improve non-GAAP (adjusted) net profit at double that rate.
Customers need to get those coronavirus vaccine shots somewhere, and CVS has been a leader in providing access to the jabs they need during this highly persistent pandemic. But the company is also adept at growing its other businesses. The healthcare benefits and retail/long-term care segments -- both significant revenue generators in their own right -- also grew sales at healthy rates during the quarter.
CVS should continue to do well. The company raised its guidance for both adjusted per-share earnings and cash flow from operations -- and that bodes well for more dividend raises to come. Meanwhile, CVS's latest dividend is to be distributed Feb. 1 to shareholders of record as of the Jan. 21. The $0.55-per-share payout would yield 2.2% at the latest closing stock price.
10 stocks we like better than Pfizer
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Pfizer wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the very recent past, three prominent names in the healthcare industry have declared dividend raises: Pfizer (NYSE: PFE), Abbott Laboratories (NYSE: ABT), and CVS Health (NYSE: CVS). Pfizer has been going gangbusters since its Comirnaty coronavirus vaccine, co-developed with Germany's BioNTech, was approved in most major countries starting last year. The pharmaceutical industry giant is in an enviable position right now with Comirnaty -- still a go-to coronavirus vaccine in a world facing new variants -- buttressed by Pfizer's array of other popular products. | In the very recent past, three prominent names in the healthcare industry have declared dividend raises: Pfizer (NYSE: PFE), Abbott Laboratories (NYSE: ABT), and CVS Health (NYSE: CVS). In the latest quarter, Abbott managed to increase sales in all four of its product categories. Meanwhile, the company's big, established pharmaceuticals business and its medical devices unit also saw healthy increases of around 15% apiece. | In the very recent past, three prominent names in the healthcare industry have declared dividend raises: Pfizer (NYSE: PFE), Abbott Laboratories (NYSE: ABT), and CVS Health (NYSE: CVS). And then there's the company's ever-growing dividend, yielding 1.4% at the current stock price. The sprawling pharmacy chain declared its own dividend increase in mid-December, hiking its quarterly payout 10% to $0.55 per share. | In the very recent past, three prominent names in the healthcare industry have declared dividend raises: Pfizer (NYSE: PFE), Abbott Laboratories (NYSE: ABT), and CVS Health (NYSE: CVS). Aside from vaccines, all but one of Pfizer's six product categories saw revenue increases in the third quarter. In the latest quarter, Abbott managed to increase sales in all four of its product categories. |
31882.0 | 2021-12-16 00:00:00 UTC | Abbott Laboratories (NYSE:ABT) Is Increasing Its Dividend To US$0.47 | ABT | https://www.nasdaq.com/articles/abbott-laboratories-nyse%3Aabt-is-increasing-its-dividend-to-us%240.47 | nan | nan | Abbott Laboratories (NYSE:ABT) will increase its dividend on the 15th of February to US$0.47. The announced payment will take the dividend yield to 1.3%, which is in line with the average for the industry.
Abbott Laboratories' Dividend Is Well Covered By Earnings
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Based on the last payment, Abbott Laboratories was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.
EPS is set to fall by 10.4% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio could be 54%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.
NYSE:ABT Historic Dividend December 16th 2021
Dividend Volatility
Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2011, the first annual payment was US$1.92, compared to the most recent full-year payment of US$1.88. Dividend payments have shrunk at a rate of less than 1% per annum over this time frame. A company that decreases its dividend over time generally isn't what we are looking for.
The Dividend Looks Likely To Grow
With a relatively unstable dividend, it's even more important to see if earnings per share is growing. We are encouraged to see that Abbott Laboratories has grown earnings per share at 44% per year over the past five years. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have.
Abbott Laboratories Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. Taking this all into consideration, this looks like it could be a good dividend opportunity.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 2 warning signs for Abbott Laboratories that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high performing dividend stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE:ABT) will increase its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 16th 2021 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. If the dividend continues along recent trends, we estimate the payout ratio could be 54%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future. | Abbott Laboratories (NYSE:ABT) will increase its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 16th 2021 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Based on the last payment, Abbott Laboratories was quite comfortably earning enough to cover the dividend. | NYSE:ABT Historic Dividend December 16th 2021 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Abbott Laboratories (NYSE:ABT) will increase its dividend on the 15th of February to US$0.47. Abbott Laboratories' Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. | Abbott Laboratories (NYSE:ABT) will increase its dividend on the 15th of February to US$0.47. NYSE:ABT Historic Dividend December 16th 2021 Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Abbott Laboratories' Dividend Is Well Covered By Earnings We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. |
31883.0 | 2021-12-15 00:00:00 UTC | Intuitive Surgical Stock Appears To Have A Limited Upside | ABT | https://www.nasdaq.com/articles/intuitive-surgical-stock-appears-to-have-a-limited-upside | nan | nan | [Updated: Dec 9, 2021] ISRG Stock Update
The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a rise of over 6% over the last five trading days. However, despite the recent rise it is still down 7% over the last one month period. The fall earlier was led by concerns over the new Covid-19 variant – Omicron – and its impact on the overall economic growth, and the healthcare sector. However, over the recent days, some reports have emerged stating that the impact of Omicron on the overall economic growth may not be as profound as earlier anticipated. This resulted in a rebound in the broader markets, including ISRG stock. In fact, in our previous update (below) we stated that the stock has a higher chance of a rise in the near term, based on ISRG’s own historical performance.
Looking forward, there is only a little room left for growth in ISRG stock, in our view. Going by our Intuitive Surgical Valuation of $361 per share, based on expected earnings of $5.00 on a per share and adjusted basis and a P/E ratio of 72x (compares with 81x earnings multiple for ISRG seen as recently as late 2020), there is only a 6% upside potential from its current levels of $341. In fact, the $357 estimate as per average of analyst forecasts, reflects an even lower <5% upside from the current levels, pointing out that ISRG stock is nearly fully valued currently, and investors may be better off waiting for another dip for better gains in the long term.
But what about the near term, given that ISRG stock has seen a fall of 7% in a month? Going by its historical performance, there is still a good chance of a rise in ISRG stock over the next month. Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 161 out of 248, or about a 65% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of Rise for more details.
[Updated: Nov 29, 2021] ISRG Stock Decline
The stock price of Intuitive Surgical (NASDAQ: ISRG), a fast growing robotic surgical devices company, has seen a 7% fall in a month, while it was down nearly 6% just last week. This can largely be attributed to a broader sell-off in the markets with the S&P500 falling over 2% following the reports of a new variant of the Covid-19 – Omicron – which has 32 mutations in the spike protein – the part of the virus that Covid-19 vaccines target. WHO declared Omicron to be a variant of concern. Overall, the markets were looking forward to the ramp up in demand and opening up of economies, but now, there are looming concerns of more restrictions. In fact, many countries in Europe are now looking at increased restrictions, and Austria is going with a partial lockdown since last week, and moving forward with a vaccine mandate.
Looking at Intuitive Surgical, a rise in the number of Covid-19 cases means more pressure on healthcare institutions, especially in certain geographies with limited resources. This will likely impact the total procedure volume, a trend seen in the recent past as well, with the spread of the Delta variant.
But now that ISRG stock has fallen 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 ISRG stock over the next month. Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 161 out of 248, or about a 65% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of Rise for more details.
So, if this follows the historical pattern, ISRG stock is likely to see higher levels. That said, the move in ISRG stock will also depend on the trend in U.S. Covid-19 cases. If the Omicron results in another large spike in total number of Covid-19 cases, it is likely that ISRG stock will actually see even lower levels, along with some of the other medical devices companies, as well.
Wondering how Intuitive Surgical’s peers stack up? Check out Intuitive Surgical Stock Comparison With Peers to see how ISRG 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 -5.6% or more over a five-day period, the stock rose in the next five days on 55% of the occasions.
After moving -7.2% or more over a ten-day period, the stock rose in the next ten days on 56% of the occasions
After moving -7.4% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 65% of the occasions.
Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers
Five-Day Return: BDX highest at -1.4%; EW lowest at -6.4%
Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3%
Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7%
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, 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 United Therapeutics vs Quest Diagnostics.
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 Dec 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
ISRG Return -7% 25% 384%
S&P 500 Return 0% 25% 110%
Trefis MS Portfolio Return 2% 47% 295%
[1] Month-to-date and year-to-date as of 12/9/2021
[2] Cumulative total returns since 2017
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. | This can largely be attributed to a broader sell-off in the markets with the S&P500 falling over 2% following the reports of a new variant of the Covid-19 – Omicron – which has 32 mutations in the spike protein – the part of the virus that Covid-19 vaccines target. If the Omicron results in another large spike in total number of Covid-19 cases, it is likely that ISRG stock will actually see even lower levels, along with some of the other medical devices companies, as well. Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data After moving -5.6% or more over a five-day period, the stock rose in the next five days on 55% of the occasions. | [Updated: Dec 9, 2021] ISRG Stock Update The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a rise of over 6% over the last five trading days. Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 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: BDX highest at -1.4%; EW lowest at -6.4% Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3% Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). [Updated: Dec 9, 2021] ISRG Stock Update The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a rise of over 6% over the last five trading days. | However, despite the recent rise it is still down 7% over the last one month period. But what about the near term, given that ISRG stock has seen a fall of 7% in a month? Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: BDX highest at -1.4%; EW lowest at -6.4% Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3% Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. |
31884.0 | 2021-12-14 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABT | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock | nan | nan | Past performance isn't a guarantee of future success, and that's as true in life as it is in the stock market. But past performance isn't meaningless either; investing in a company capable of replicating a winning strategy is a pretty good bet. With that in mind, let's look at pharma giant AbbVie (NYSE: ABBV).
Unlike most of its peers in the pharmaceutical industry, this drugmaker has outperformed the broader market in the past nine years. The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it.
Yet there is much more to the story than that. Let's consider whether it's still worth purchasing AbbVie's shares today.
ABBV data by YCharts
Results remain strong
On the financial front, AbbVie's business seems pretty healthy. In the third quarter, the company generated $14.3 billion in revenue -- 11.2% higher than the year-ago period -- and most business segments saw strong sales increases.
The company's immunology business, which is home to Humira and other key growth drivers, posted total sales of $6.8 billion, 15.3% higher than a year ago. Meanwhile, sales within AbbVie's oncology segment rose 8.4% year over year to $1.9 billion. On the bottom line, AbbVie's earnings soared 38% to $1.78 per share.
AbbVie also continues to generate loads of cash. In the third quarter, free cash flow totaled $21.7 billion, a 282% increase from last year. AbbVie boasts a price-to-free cash flow ratio of 10.3, which is on the low end of its historical range .
Image source: Getty Images.
AbbVie's growth days aren't over
Now, let's take a look at the business itself. One way pharmaceutical companies maintain their edge is through patents that protect their drugs from competition and grant them some degree of pricing power. But once these patents expire, cheaper versions from other companies -- known as biosimilars -- are bound to eat up a medicine's market share.
That's what's going on with Humira, which lost patent exclusivity in Europe in 2018. As a result, the drug's international sales dropped by 14.6% to $812 million in the third quarter and its total sales only grew by 5.6% to $5.4 billion. Humira's patent protection in the U.S. expires in 2023.
But AbbVie is replenishing its lineup. Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. For example, Botox saw sales of $645 million in the third quarter, 23% higher than the year-ago period. And sales of Rinvoq more than doubled to $453 million.
It is worth noting that Rinvoq has been under regulatory scrutiny recently. It belongs to a group of drugs known as JAK inhibitors. After studies revealed that these drugs carry risks of cardiovascular events and cancer, the U.S. Food and Drug Administration announced in September that JAK inhibitors would now come with a label warning patients of these risks.
Still, management remains confident that Rinvoq can continue to perform well and, along with Skyrizi, team up to replace Humira. As CEO Rick Gonzalez said in the company's third-quarter earnings conference call:
Skyrizi and Rinvoq have established very strong launch trajectories. These two assets are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth.
So far, things are going according to plan on that front, and that's excellent news for AbbVie's future.
Multiple reasons to get in on the action
So do AbbVie shares make a good investment? Well, the company still boasts a solid lineup of drugs that can drive top- and bottom-line growth, cash generation, and eventually fill in the gaping hole that Humira will leave once it starts facing biosimilar competition in the U.S. in 2023.
The drugmaker is also an excellent option for dividend-seeking investors, offering a yield of 4.14% -- far higher than the S&P 500's yield of 1.30%. AbbVie is also a Dividend Aristocrat, having raised its dividends 49 years in a row, and it will likely join the exclusive rank of Dividend Kings next year.
Finally, the shares are attractively priced, trading at a forward price-to-earnings ratio of 9.9 vs. a pharma industry average of 13.5. In a market where rich valuation metrics tend to be the norm, investors shouldn't ignore a company like AbbVie that trades at reasonable levels.
In short, no, it isn't too late to get in on this excellent pharma stock.
10 stocks we like better than AbbVie
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Prosper Junior Bakiny 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. | Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. These two assets are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth. Well, the company still boasts a solid lineup of drugs that can drive top- and bottom-line growth, cash generation, and eventually fill in the gaping hole that Humira will leave once it starts facing biosimilar competition in the U.S. in 2023. | ABBV data by YCharts Results remain strong On the financial front, AbbVie's business seems pretty healthy. In the third quarter, the company generated $14.3 billion in revenue -- 11.2% higher than the year-ago period -- and most business segments saw strong sales increases. In the third quarter, free cash flow totaled $21.7 billion, a 282% increase from last year. | The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it. Meanwhile, sales within AbbVie's oncology segment rose 8.4% year over year to $1.9 billion. Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. | Past performance isn't a guarantee of future success, and that's as true in life as it is in the stock market. Still, management remains confident that Rinvoq can continue to perform well and, along with Skyrizi, team up to replace Humira. In short, no, it isn't too late to get in on this excellent pharma stock. |
31885.0 | 2021-12-13 00:00:00 UTC | BKLN, MDEV: Big ETF Outflows | ABT | https://www.nasdaq.com/articles/bkln-mdev%3A-big-etf-outflows | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Senior Loan ETF, where 21,300,000 units were destroyed, or a 7.0% decrease week over week.
And on a percentage change basis, the ETF with the biggest outflow was the First Trust Indxx Medical Devices ETF, which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of MDEV, in morning trading today Mettler-toledo International is down about 0.3%, and Abbott Laboratories is up by about 0.5%.
VIDEO: BKLN, MDEV: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And on a percentage change basis, the ETF with the biggest outflow was the First Trust Indxx Medical Devices ETF, which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of MDEV, in morning trading today Mettler-toledo International is down about 0.3%, and Abbott Laboratories is up by about 0.5%. VIDEO: BKLN, MDEV: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Senior Loan ETF, where 21,300,000 units were destroyed, or a 7.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Indxx Medical Devices ETF, which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: BKLN, MDEV: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Senior Loan ETF, where 21,300,000 units were destroyed, or a 7.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Indxx Medical Devices ETF, which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: BKLN, MDEV: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Senior Loan ETF, where 21,300,000 units were destroyed, or a 7.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Indxx Medical Devices ETF, which lost 50,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of MDEV, in morning trading today Mettler-toledo International is down about 0.3%, and Abbott Laboratories is up by about 0.5%. |
31886.0 | 2021-12-13 00:00:00 UTC | Noteworthy ETF Inflows: URTH, ABT, UPS, PM | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-urth-abt-ups-pm | 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 MSCI World ETF (Symbol: URTH) where we have detected an approximate $121.1 million dollar inflow -- that's a 6.7% increase week over week in outstanding units (from 13,400,000 to 14,300,000). Among the largest underlying components of URTH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.5%, United Parcel Service Inc (Symbol: UPS) is down about 0.8%, and Philip Morris International Inc (Symbol: PM) is up by about 0.8%. For a complete list of holdings, visit the URTH Holdings page » The chart below shows the one year price performance of URTH, versus its 200 day moving average:
Looking at the chart above, URTH's low point in its 52 week range is $109.152 per share, with $136.75 as the 52 week high point — that compares with a last trade of $132.71. 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 URTH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.5%, United Parcel Service Inc (Symbol: UPS) is down about 0.8%, and Philip Morris International Inc (Symbol: PM) is up by about 0.8%. For a complete list of holdings, visit the URTH Holdings page » The chart below shows the one year price performance of URTH, versus its 200 day moving average: Looking at the chart above, URTH's low point in its 52 week range is $109.152 per share, with $136.75 as the 52 week high point — that compares with a last trade of $132.71. 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 URTH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.5%, United Parcel Service Inc (Symbol: UPS) is down about 0.8%, and Philip Morris International Inc (Symbol: PM) is up by about 0.8%. For a complete list of holdings, visit the URTH Holdings page » The chart below shows the one year price performance of URTH, versus its 200 day moving average: Looking at the chart above, URTH's low point in its 52 week range is $109.152 per share, with $136.75 as the 52 week high point — that compares with a last trade of $132.71. 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 URTH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.5%, United Parcel Service Inc (Symbol: UPS) is down about 0.8%, and Philip Morris International Inc (Symbol: PM) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI World ETF (Symbol: URTH) where we have detected an approximate $121.1 million dollar inflow -- that's a 6.7% increase week over week in outstanding units (from 13,400,000 to 14,300,000). For a complete list of holdings, visit the URTH Holdings page » The chart below shows the one year price performance of URTH, versus its 200 day moving average: Looking at the chart above, URTH's low point in its 52 week range is $109.152 per share, with $136.75 as the 52 week high point — that compares with a last trade of $132.71. | Among the largest underlying components of URTH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.5%, United Parcel Service Inc (Symbol: UPS) is down about 0.8%, and Philip Morris International Inc (Symbol: PM) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI World ETF (Symbol: URTH) where we have detected an approximate $121.1 million dollar inflow -- that's a 6.7% increase week over week in outstanding units (from 13,400,000 to 14,300,000). For a complete list of holdings, visit the URTH Holdings page » The chart below shows the one year price performance of URTH, versus its 200 day moving average: Looking at the chart above, URTH's low point in its 52 week range is $109.152 per share, with $136.75 as the 52 week high point — that compares with a last trade of $132.71. |
31887.0 | 2021-12-13 00:00:00 UTC | 3 Investors Pick Their Top Wealth-Building Stocks | ABT | https://www.nasdaq.com/articles/3-investors-pick-their-top-wealth-building-stocks | nan | nan | Even in a historically volatile market, excellent long-term investment opportunities are still ripe for the picking. In this segment of Backstage Pass, recorded on Nov. 15, Fool.com contributors Jason Hall, Rachel Warren, and Toby Bordelon discuss several such stocks.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Jason Hall: We've got some more topics and I liked this question from Richard. I'm not sure if you guys saw it, the "Stay Wealthy Basket." Did you guys see that one? I love it. He started it off here with some stocks, Berkshire Hathaway, Verizon Communications -- ABT, is that Abbott Labs? I'm not sure, ABT.
Rachel Warren: I believe so.
Hall: Then AMT is American Tower, ENB Enbridge, Microsoft, and Alphabet. Those are his stocks. Here's my request for you guys. They stay wealthy, a company with a high floor.
Maybe not going to super gain value, but it's going to help you protect your money. What do you guys think? What's a stock each? It's not one of those that you can think of to be the one, go ahead. I was going to say Apple (NASDAQ: AAPL). I mean, I think Apple, you have to start with Apple I think.
Warren: I've been thinking that's a great basket of stocks Richard O. If I can't pick one from that, I was going to say Alphabet since I'm invested in Alphabet. I think another one is Teladoc (NYSE: TDOC). I love that company. I'm a shareholder, it's a great healthcare stock. I plug it a lot on this show.
Hall: That's a "Get Wealthy" one too. It's priced right now. There's a lot of low expectations priced in Rachel, so I think you make a really good point there, Toby.
Toby Bordelon: I'm trying to think what I would do beyond the ones mentioned. I'm honestly not sure I'd do Verizon, because it's a solid company that pays a nice dividend that management has this deal about destroying value every now and then, with ill-fated acquisitions.
Hall: It's one of those businesses, the saying, buy a business that any idiot can run because eventually an idiot will run it.
Bordelon: Yeah.
Hall: That's all I'm going to say.
Bordelon: We'll stop there in case. [laughs]
Hall: Yes. I'm going to throw one in here, I'm going to throw one more Toby, while you're thinking here. Retail Opportunity Investments Corporation (NASDAQ: ROIC), ticker, ROIC. It's an easily overload strip mall owner. They own strip malls on the West Coast, and they are really good at buying great properties in high traffic, high value areas and below market value, improving them and making them. It's actually the stock that I've owned the longest, which surprised me when I realized that a couple of days ago.
Bordelon: I want to put Mastercard (NYSE: MA)in there.
Hall: Oh yeah. Well done. I'm going to throw a piece of trivia about Mastercard a lot of people don't realize. It's putting a ton of focus on person-to-person transactions.
Person-to-government, government-to-governments, business-to-business, and other types of cross border transactions. That market is four times larger than its existing merchant services business. Four times larger.
Bordelon: Wow. [laughs]
Hall: That's incredible. It's like $170, $160 trillion, $180 trillion some just ridiculously sized market. This is so much bigger than its current business.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Jason Hall owns shares of Alphabet (C shares), Mastercard, Retail Opportunity Investments, and Teladoc Health. Rachel Warren owns shares of Alphabet (A shares), Apple, and Teladoc Health. Toby Bordelon owns shares of Alphabet (A shares), Apple, Berkshire Hathaway (B shares), Mastercard, and Microsoft. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), American Tower, Apple, Berkshire Hathaway (B shares), Enbridge, Mastercard, Microsoft, Retail Opportunity Investments, and Teladoc Health. The Motley Fool recommends Verizon Communications 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. | He started it off here with some stocks, Berkshire Hathaway, Verizon Communications -- ABT, is that Abbott Labs? I'm not sure, ABT. In this segment of Backstage Pass, recorded on Nov. 15, Fool.com contributors Jason Hall, Rachel Warren, and Toby Bordelon discuss several such stocks. | He started it off here with some stocks, Berkshire Hathaway, Verizon Communications -- ABT, is that Abbott Labs? I'm not sure, ABT. Jason Hall owns shares of Alphabet (C shares), Mastercard, Retail Opportunity Investments, and Teladoc Health. | He started it off here with some stocks, Berkshire Hathaway, Verizon Communications -- ABT, is that Abbott Labs? I'm not sure, ABT. Toby Bordelon owns shares of Alphabet (A shares), Apple, Berkshire Hathaway (B shares), Mastercard, and Microsoft. | He started it off here with some stocks, Berkshire Hathaway, Verizon Communications -- ABT, is that Abbott Labs? I'm not sure, ABT. There's a lot of low expectations priced in Rachel, so I think you make a really good point there, Toby. |
31888.0 | 2021-12-13 00:00:00 UTC | Abbott Rewards Shareholders; Shares Record New All-Time High | ABT | https://www.nasdaq.com/articles/abbott-rewards-shareholders-shares-record-new-all-time-high | nan | nan | Multinational medical devices and healthcare company, Abbott Laboratories (ABT) announced an increase in its quarterly cash common dividend for the 50th consecutive year. Moreover, the Board also declared a new share buyback program.
Following the news, shares reached a new all-time high of $134.50 and closed the day up 1.4% at $134.37 on December 10.
Rewarding Shareholders
Abbott, which is a part of The Dividend Aristocrat Index, increased its quarterly common dividend by 4.4% to $0.47 per share, following a 25% increase in its common dividend in 2021. This marks the 392nd consecutive quarterly dividend paid by Abbott since 1924. The dividend is payable on February 15, 2022, to shareholders on record as of January 14, 2022.
Additionally, the company’s Board also approved a new share buyback program of up to $5 billion, in addition to the unused portion of the earlier program approved by the Board in 2019.
Management Comments
President, and CEO of Abbott, Robert B. Ford, said, “Fifty years of dividend growth reflects the consistently strong performance of our diversified business model… It exemplifies our longstanding commitment to delivering sustainable growth that fuels innovation as well as shareholder returns.”
See Analysts’ Top Stocks on TipRanks >>
Wall Street View
With 11 Buys and 2 Holds, the ABT stock commands a Strong Buy consensus rating. The average Abbott price target of $141.58 implies 5.37% upside potential to current levels. Shares have gained 25.8% over the past year.
Smart Score
According to TipRanks’ Smart Score rating system, Abbott scores a “Perfect 10”, which indicates that the stock has strong potential to outperform market expectations.
Related News:
CVS Impresses at Investor Day; Shares Reach New All-Time High
Roku Ends Battle with YouTube; Shares Surge 18%
Citi Halts Share Buyback Amid New Regulation
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Multinational medical devices and healthcare company, Abbott Laboratories (ABT) announced an increase in its quarterly cash common dividend for the 50th consecutive year. Management Comments President, and CEO of Abbott, Robert B. Ford, said, “Fifty years of dividend growth reflects the consistently strong performance of our diversified business model… It exemplifies our longstanding commitment to delivering sustainable growth that fuels innovation as well as shareholder returns.” See Analysts’ Top Stocks on TipRanks >> Wall Street View With 11 Buys and 2 Holds, the ABT stock commands a Strong Buy consensus rating. The average Abbott price target of $141.58 implies 5.37% upside potential to current levels. | Multinational medical devices and healthcare company, Abbott Laboratories (ABT) announced an increase in its quarterly cash common dividend for the 50th consecutive year. Management Comments President, and CEO of Abbott, Robert B. Ford, said, “Fifty years of dividend growth reflects the consistently strong performance of our diversified business model… It exemplifies our longstanding commitment to delivering sustainable growth that fuels innovation as well as shareholder returns.” See Analysts’ Top Stocks on TipRanks >> Wall Street View With 11 Buys and 2 Holds, the ABT stock commands a Strong Buy consensus rating. Smart Score According to TipRanks’ Smart Score rating system, Abbott scores a “Perfect 10”, which indicates that the stock has strong potential to outperform market expectations. | Management Comments President, and CEO of Abbott, Robert B. Ford, said, “Fifty years of dividend growth reflects the consistently strong performance of our diversified business model… It exemplifies our longstanding commitment to delivering sustainable growth that fuels innovation as well as shareholder returns.” See Analysts’ Top Stocks on TipRanks >> Wall Street View With 11 Buys and 2 Holds, the ABT stock commands a Strong Buy consensus rating. Multinational medical devices and healthcare company, Abbott Laboratories (ABT) announced an increase in its quarterly cash common dividend for the 50th consecutive year. Rewarding Shareholders Abbott, which is a part of The Dividend Aristocrat Index, increased its quarterly common dividend by 4.4% to $0.47 per share, following a 25% increase in its common dividend in 2021. | Multinational medical devices and healthcare company, Abbott Laboratories (ABT) announced an increase in its quarterly cash common dividend for the 50th consecutive year. Management Comments President, and CEO of Abbott, Robert B. Ford, said, “Fifty years of dividend growth reflects the consistently strong performance of our diversified business model… It exemplifies our longstanding commitment to delivering sustainable growth that fuels innovation as well as shareholder returns.” See Analysts’ Top Stocks on TipRanks >> Wall Street View With 11 Buys and 2 Holds, the ABT stock commands a Strong Buy consensus rating. Moreover, the Board also declared a new share buyback program. |
31889.0 | 2021-12-10 00:00:00 UTC | 3 Healthcare Stocks for Long-Term Dividend Growth | ABT | https://www.nasdaq.com/articles/3-healthcare-stocks-for-long-term-dividend-growth | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Healthcare stocks offer investors a wide variety of stocks. There are healthcare stocks that lean more toward growth versus value, high dividend yields versus dividend growth, and so on.
Healthcare also tends to perform quite well during recessionary periods. Their recession-resistant businesses and steady dividends can help reduce the severity of market downturns during recessions.
7 Christmas Stocks to Buy for a Jolly Ending to 2021
In this article, we’ll take a look at three healthcare stocks that have strong dividend track records, and that we think are great picks for those investors looking to compound wealth over the long term. The companies are:
Johnson & Johnson (NYSE:JNJ)
Medtronic (NYSE:MDT)
Abbott Labs (NYSE:ABT)
Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
First on our list of healthcare stocks is Johnson & Johnson, a highly diversified company that develops, manufactures and distributes a huge range of products in various markets in healthcare globally. The company offers products through its consumer health, pharmaceutical, and medical devices segments.
Through these segments, Johnson & Johnson markets a wide variety of consumer brands such as Aveeno, Listerine, Neutrogena, Tylenol, Benadryl and many more brands that treat everyday ailments. It also has a pharmaceutical portfolio that has a suite of treatments for various immunology, cardiovascular, infectious disease, neuroscience and other applications.
Finally, its medical device business produces products for orthopedics, general surgery, contact lenses and more.
Johnson & Johnson was founded in 1886, employs more than 130,000 people worldwide, generates about $94 billion in annual revenue, and trades with a market capitalization of $433 billion.
Johnson & Johnson has one of the longest dividend increase streaks of any stock in the world, boasting a 59-year history of continuously raising its payout. This makes the stock a Dividend King and it also means that it has been a reliable dividend growth stock for generations. This, in part, is what makes the stock so attractive for income investors.
Looking forward, we see many more years of dividend increases on the horizon, as the company’s current payout is extremely safe, and because we see moderate levels of earnings growth in the coming years.
Johnson & Johnson’s payout ratio is under 45% for this year, which means the company could absorb a sizable downturn in earnings and still be able to not only afford its current dividend, but continue to raise it. When selecting dividend stocks to hold for the long term, this is a critical characteristic, and few companies have done this better than Johnson & Johnson over the years.
In addition, we see 6% earnings growth on an annualized basis in the coming years for Johnson & Johnson, meaning that over time, the pool from which it can pay rising dividends should rise as well, making it that much easier for the company to fund years of additional dividend increases.
Johnson & Johnson has the ideal mix of a very long history of dividend increases, a low payout ratio and strong earnings growth potential for investors looking for a robust healthcare dividend stock.
Johnson & Johnson has increased its dividend for over 50 consecutive years, placing it on the exclusive Dividend Kings list.
Medtronic (MDT)
MDT) sign outside office building representing healthcare stocks" width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
Our next stock is Medtronic, a company that develops, manufactures and distributes medical therapy devices to hospitals, doctors and patients globally. The company operates four segments: cardiovascular, neuroscience, Medical surgical and diabetes.
Through these segments, Medtronic offers customers a huge variety of devices used in surgeries, monitoring of health conditions, insulin pumps, and more. Medtronic is heavily leveraged to various kinds of surgical procedures, but it is well diversified within that market.
Medtronic was founded in 1949, and today it employs about 90,000 people worldwide, generating ~$32 billion in annual revenue, and trading with a market capitalization of $152 billion.
Medtronic’s attractive traits as a dividend stock have a lot of similarity to that of Johnson & Johnson. Medtronic has a 44-year streak of consecutive dividend increases, its payout ratio is just 44% for this year, and we expect it to grow at 6% annually in the years to come.
That means that Medtronic is also resilient when recessions strike, given it has been able to boost its dividend for more than four decades, but it also means that the payout is very safe. And with earnings growth expected to move the needle in a big way over time, we think Medtronic likely has decades more dividend increases on the horizon.
7 Christmas Stocks to Buy for a Jolly Ending to 2021
Medtronic stock yields 2.2%, which is well above the market average. And, Medtronic has increased its dividend for over 40 years, which makes it a Dividend Aristocrat.
Abbott Labs (ABT)
ABT) sign with lighting behind letters" width="300" height="169">
Source: testing / Shutterstock.com
Our finalist among healthcare stocks is Abbott, a fully integrated pharmaceutical, medical device, and nutrition company that operates globally. Abbott is known for its wide and deep pharmaceutical portfolio, which treats a huge variety of ailments. The company also has a sizable pediatric and adult nutrition business, as well as a suite of medical device for various applications. Abbott has also been a big player in Covid-19 testing since the pandemic began nearly two years ago.
Abbott was founded in 1888, employs 109,000 people across the globe, generates ~$42 billion in annual revenue, and trades with a market capitalization of $234 billion.
Like the other two stocks on our list, Abbott has an exceptional dividend increase history, which stands at 49 years. Assuming Abbott boosts its payout next year, it will join Johnson & Johnson in the ultra-exclusive Dividend Kings.
But that’s not all Abbott has to offer investors, as it also sports a very low payout ratio of just 36% for this year, and has proven to be recession resilient over time. That makes Abbott’s dividend safety outstanding, and when we combine that with the projected earnings growth rate of 4% annually, we also believe Abbott has decades of potential dividend increases in front of it.
Abbott stock does not have the highest yield around at 1.3%, but the company raises its dividend at a high rate, including a 25% dividend hike in December 2020.
Final Thoughts
When selecting dividend stocks to buy, investors are faced with a variety of choices. However, we like healthcare stocks for many reasons, particularly given inherent recession resilience and long-term earnings growth.
Johnson & Johnson, Medtronic, and Abbott Labs all offer exemplary dividend histories, low payout ratios, and moderate projected earnings growth in the years to come. For these reasons, we think all three offer investors the chance to enjoy income and growth in the years to come.
On the date of publication, Bob Ciura did not have (either directly or indirectly) positions in any of the 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 3 Healthcare Stocks for Long-Term Dividend Growth 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. | The companies are: Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) Abbott Labs (NYSE:ABT) Johnson & Johnson (JNJ) Source: Sundry Photography / Shutterstock.com First on our list of healthcare stocks is Johnson & Johnson, a highly diversified company that develops, manufactures and distributes a huge range of products in various markets in healthcare globally. Abbott Labs (ABT) ABT) sign with lighting behind letters" width="300" height="169"> Source: testing / Shutterstock.com Our finalist among healthcare stocks is Abbott, a fully integrated pharmaceutical, medical device, and nutrition company that operates globally. Through these segments, Medtronic offers customers a huge variety of devices used in surgeries, monitoring of health conditions, insulin pumps, and more. | The companies are: Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) Abbott Labs (NYSE:ABT) Johnson & Johnson (JNJ) Source: Sundry Photography / Shutterstock.com First on our list of healthcare stocks is Johnson & Johnson, a highly diversified company that develops, manufactures and distributes a huge range of products in various markets in healthcare globally. Abbott Labs (ABT) ABT) sign with lighting behind letters" width="300" height="169"> Source: testing / Shutterstock.com Our finalist among healthcare stocks is Abbott, a fully integrated pharmaceutical, medical device, and nutrition company that operates globally. Johnson & Johnson has the ideal mix of a very long history of dividend increases, a low payout ratio and strong earnings growth potential for investors looking for a robust healthcare dividend stock. | The companies are: Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) Abbott Labs (NYSE:ABT) Johnson & Johnson (JNJ) Source: Sundry Photography / Shutterstock.com First on our list of healthcare stocks is Johnson & Johnson, a highly diversified company that develops, manufactures and distributes a huge range of products in various markets in healthcare globally. Abbott Labs (ABT) ABT) sign with lighting behind letters" width="300" height="169"> Source: testing / Shutterstock.com Our finalist among healthcare stocks is Abbott, a fully integrated pharmaceutical, medical device, and nutrition company that operates globally. In addition, we see 6% earnings growth on an annualized basis in the coming years for Johnson & Johnson, meaning that over time, the pool from which it can pay rising dividends should rise as well, making it that much easier for the company to fund years of additional dividend increases. | The companies are: Johnson & Johnson (NYSE:JNJ) Medtronic (NYSE:MDT) Abbott Labs (NYSE:ABT) Johnson & Johnson (JNJ) Source: Sundry Photography / Shutterstock.com First on our list of healthcare stocks is Johnson & Johnson, a highly diversified company that develops, manufactures and distributes a huge range of products in various markets in healthcare globally. Abbott Labs (ABT) ABT) sign with lighting behind letters" width="300" height="169"> Source: testing / Shutterstock.com Our finalist among healthcare stocks is Abbott, a fully integrated pharmaceutical, medical device, and nutrition company that operates globally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Healthcare stocks offer investors a wide variety of stocks. |
31890.0 | 2021-12-10 00:00:00 UTC | My Take: 4 Strong Growth Stocks To Buy This Week | ABT | https://www.nasdaq.com/articles/my-take%3A-4-strong-growth-stocks-to-buy-this-week | nan | nan | Has the omicron-fueled sell-off already run its course? Maybe or maybe not. Given Tuesday's sharp rebound, at the very least it's clear that investors aren't willing to simply throw in the towel at the first sign of trouble. The market is open for business as usual -- even if the current volatility is a bit unusual.
Yet not all stocks have fully recovered. Here are four great growth companies that were beaten down a bit by the recent market sell-off, making them relative bargains to new investors.
Palantir Technologies
It's not a household name, but Palantir Technologies (NYSE: PLTR) plays a crucial role in helping organizations handle the deluge of digital data they've been collecting for years now. A bunch of competitors operate in this arena, but Palantir's solutions are more than a means of turning information into insights. They go further, melding digital data with front-line activities like product deliveries, resource allocation, and even medical care.
Palantir's target market isn't just companies. It actually offers the sort of solutions that governments and their agencies need to be fully effective. For instance, the UK's National Health Service tapped Palantir to help manage its response to the COVID-19 pandemic, including the execution of its mass-vaccination effort.
This sort of higher-level capability can be utilized by a wide array of organizations, and they're increasingly doing so. Analysts see sales growing nearly 30% next year following this year's 40% increase. While the company is not profitable yet, progress is being made on that front -- making the shares' 26% slide this past month an even more compelling reason to consider jumping in.
Fortinet
Palantir may not be turning a profit yet, but cybersecurity specialist Fortinet (NASDAQ: FTNT) certainly is. The company has produced $435 million worth of operating income through the first three fiscal quarters of 2021, up 20% year over year, and is en route to what analysts expect will be a 17% gain in full-year earnings. Next year could be even better with forecasts of 19% revenue growth. At the same time, earnings per share are projected to reach $3.91 this year and $4.61 in 2022.
Image source: Getty Images.
With cybersecurity concerns abounding, there's little reason to think demand for these products will stop growing anytime soon. In fact, it could accelerate as the scope of the true risk continues to come into view. Cybersecurity Ventures estimates that cybercrime will cost the world around $6 trillion this year alone and -- assuming nothing is done to mitigate it -- that cost will grow at an annual pace of 15% to $10.5 trillion by 2025.
In other words, nobody can afford to simply do nothing; the world will have to invest in cyberdefense. So organizations will increasingly need solutions like Fortinet's zero trust network, which ensures that remote employees are connecting to a network securely, or its network firewall, which has earned the Gartner consultancy's top accolades for 12 years in a row. And that's just a sampling of how Fortinet has managed to grow its sales and profits so well.
While the shares have rebounded somewhat, they are still down 10% from their high last month.
Enphase Energy
Speaking of technologies the world is going to need for many years to come, add Enphase Energy (NASDAQ: ENPH) to your list. The solar power outfit is in the right place at the right time -- namely, on the cusp of explosive demand for renewable energy with solar at the forefront. The Solar Energy Industries Association predicts that in the United States alone solar-power production capacity will more than triple over the next 10 years, making it the country's fastest-growing source of electricity over that time frame.
That said, it's important to note that Enphase Energy's value isn't as a solar panel manufacturer; for better or worse, that area has evolved into a commodity-type business. Rather, Enphase's edge within the fast-growing solar power market is its technology. The company's combination of power inverters, system management apps, and power-storage solutions solves many of the biggest problems that corporations and consumers will face as they transition to solar power.
Plus, Enphase has over 400 patents or pending patents to help keep it (and its hardware) ahead of the competition. So with the stock down some 20% from its high, investors would do well to take a closer look.
DexCom
Finally, investors on the hunt for growth stocks may want to consider DexCom (NASDAQ: DXCM), a maker of continuous glucose monitoring systems (GMS) used by diabetics. The stock is anything but cheap, trading at nearly 200 times this year's expected per-share profits. But this is a company that deserves premium pricing.
That's because of its technology. While it's not the market leader -- that honor still belongs to Abbott Laboratories -- never say never. DexCom's G6 system is the world's "first real-time, integrated CGM that is authorized to work interoperably with a range of connected insulin pen and closed loop system partners." Translation: It's a very flexible device that allows users to integrate other tech and help diabetics better manage their condition.
With its leading-edge G6 system, DexCom should be able to grow at a healthy pace in the highly fragmented and fast-growing glucose monitoring field. Global Market Insights estimates this segment will grow at a 10% annual clip through at least 2027 as more and more diabetics graduate from using the much less convenient finger pricks and paper test strips.
Analysts expect DexCom's revenue will grow 27% this year and 22% next year. That, together with a stock that is still 15% off the highs it reached in mid-November, makes for an investment well worth investors' attention.
10 stocks we like better than DexCom
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and DexCom wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Palantir Technologies Inc. The Motley Fool recommends DexCom and Fortinet. 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. | For instance, the UK's National Health Service tapped Palantir to help manage its response to the COVID-19 pandemic, including the execution of its mass-vaccination effort. The Solar Energy Industries Association predicts that in the United States alone solar-power production capacity will more than triple over the next 10 years, making it the country's fastest-growing source of electricity over that time frame. Global Market Insights estimates this segment will grow at a 10% annual clip through at least 2027 as more and more diabetics graduate from using the much less convenient finger pricks and paper test strips. | Analysts expect DexCom's revenue will grow 27% this year and 22% next year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends DexCom and Fortinet. | Palantir Technologies It's not a household name, but Palantir Technologies (NYSE: PLTR) plays a crucial role in helping organizations handle the deluge of digital data they've been collecting for years now. DexCom Finally, investors on the hunt for growth stocks may want to consider DexCom (NASDAQ: DXCM), a maker of continuous glucose monitoring systems (GMS) used by diabetics. Analysts expect DexCom's revenue will grow 27% this year and 22% next year. | Analysts see sales growing nearly 30% next year following this year's 40% increase. Enphase Energy Speaking of technologies the world is going to need for many years to come, add Enphase Energy (NASDAQ: ENPH) to your list. Rather, Enphase's edge within the fast-growing solar power market is its technology. |
31891.0 | 2021-12-08 00:00:00 UTC | These 4 Measures Indicate That Abbott Laboratories (NYSE:ABT) Is Using Debt Safely | ABT | https://www.nasdaq.com/articles/these-4-measures-indicate-that-abbott-laboratories-nyse%3Aabt-is-using-debt-safely | nan | nan | Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. But the more important question is: how much risk is that debt creating?
Why Does Debt Bring Risk?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
What Is Abbott Laboratories's Net Debt?
As you can see below, Abbott Laboratories had US$18.4b of debt, at September 2021, which is about the same as the year before. You can click the chart for greater detail. On the flip side, it has US$9.69b in cash leading to net debt of about US$8.71b.
NYSE:ABT Debt to Equity History December 8th 2021
A Look At Abbott Laboratories' Liabilities
Zooming in on the latest balance sheet data, we can see that Abbott Laboratories had liabilities of US$12.9b due within 12 months and liabilities of US$26.3b due beyond that. Offsetting these obligations, it had cash of US$9.69b as well as receivables valued at US$6.41b due within 12 months. So it has liabilities totalling US$23.1b more than its cash and near-term receivables, combined.
Given Abbott Laboratories has a humongous market capitalization of US$234.2b, it's hard to believe these liabilities pose much threat. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
Abbott Laboratories's net debt is only 0.70 times its EBITDA. And its EBIT covers its interest expense a whopping 17.8 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. On top of that, Abbott Laboratories grew its EBIT by 97% over the last twelve months, and that growth will make it easier to handle its debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Abbott Laboratories can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the last three years, Abbott Laboratories recorded free cash flow worth a fulsome 99% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
Our View
Abbott Laboratories's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And that's just the beginning of the good news since its conversion of EBIT to free cash flow is also very heartening. We would also note that Medical Equipment industry companies like Abbott Laboratories commonly do use debt without problems. It looks Abbott Laboratories has no trouble standing on its own two feet, and it has no reason to fear its lenders. For investing nerds like us its balance sheet is almost charming. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 2 warning signs for Abbott Laboratories that you should be aware of before investing here.
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. NYSE:ABT Debt to Equity History December 8th 2021 A Look At Abbott Laboratories' Liabilities Zooming in on the latest balance sheet data, we can see that Abbott Laboratories had liabilities of US$12.9b due within 12 months and liabilities of US$26.3b due beyond that. Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' | As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. NYSE:ABT Debt to Equity History December 8th 2021 A Look At Abbott Laboratories' Liabilities Zooming in on the latest balance sheet data, we can see that Abbott Laboratories had liabilities of US$12.9b due within 12 months and liabilities of US$26.3b due beyond that. We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). | NYSE:ABT Debt to Equity History December 8th 2021 A Look At Abbott Laboratories' Liabilities Zooming in on the latest balance sheet data, we can see that Abbott Laboratories had liabilities of US$12.9b due within 12 months and liabilities of US$26.3b due beyond that. As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. The first thing to do when considering how much debt a business uses is to look at its cash and debt together. | As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. NYSE:ABT Debt to Equity History December 8th 2021 A Look At Abbott Laboratories' Liabilities Zooming in on the latest balance sheet data, we can see that Abbott Laboratories had liabilities of US$12.9b due within 12 months and liabilities of US$26.3b due beyond that. What Is Abbott Laboratories's Net Debt? |
31892.0 | 2021-12-05 00:00:00 UTC | This Cloud Computing Company Is A Better Pick Over Boston Scientific Stock | ABT | https://www.nasdaq.com/articles/this-cloud-computing-company-is-a-better-pick-over-boston-scientific-stock | nan | nan | We think that Veeva Systems stock (NYSE: VEEV), a cloud-computing company focused on pharmaceutical and life sciences industry applications, currently is a better pick compared to Boston Scientific stock (NYSE:BSX), despite Veeva being the more expensive of the two. Veeva trades at about 23x trailing revenues, compared to just 5x for Boston Scientific. We are comparing these two companies given their similar operating income levels.
Both the stocks have underperformed with mid-single-digit growth year-to-date, compared to 22% growth for the broader S&P 500. While Boston Scientific saw a fall in demand for medical devices and supplies during the pandemic, due to fewer surgical procedures, Veeva’s business expanded with increased adoption of digital communication channels. In fact, Boston Scientific’s revenue declined 8% during the pandemic, while Veeva’s revenue expanded a solid 28%. 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 as well as operating margin growth. Our dashboard Boston Scientific vs Veeva: Similar Operating Income; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below.
1. Veeva’s Revenue Growth Has Been Better
Veeva’s revenue growth of 26% over the last quarter was much higher than 9% for Boston Scientific, led by strong 29% growth in subscription revenues. Boston Scientific’s revenue growth was driven by a rebound in procedure volume. Now, if we were to look at the last twelve-month revenue growth, Veeva’s 30% figure is much better than 13% growth for Boston Scientific. Looking at an even longer time frame, Veeva’s last three-year revenue CAGR of 28% is also far better than just 3% CAGR for Boston Scientific.
Looking forward, Veeva is expected to see strong 22% average annual revenue growth compared to just 5% for Boston Scientific. For Boston Scientific, its popular Left Atrial Appendage Closure (LAAC) device – Watchman – will now face competition from Abbott’s Amulet (LAAC device), which received the U.S. FDA approval in August this year. For perspective Watchman sales alone were expected to be $1 billion over the next couple of years, but the growth may slow as Amulet will also gain some market share. With economies now opening up, the demand for medical devices is likely to remain high in the near term, but it will normalize after the backlog of procedures is cleared. Our Boston Scientific Revenues dashboard provides more insight on the company’s revenues.
For Veeva, its subscription business has been the key growth driver in the recent past. The company reported its Q3 fiscal 2022 results yesterday (Dec 1), with sales of $476 million, and EPS of $0.97, both comfortably above the consensus estimates of $466 million and $0.88, respectively. The company’s Q4 guidance for revenue of $479 million and EPS of $0.88 was also largely in-line with the average of analysts forecasts ($480 million and $0.86, respectively). However, VEEV stock tumbled nearly 4% in yesterday’s trading session, and it is also down another 4% in after hours. This can be attributed to two factors. One, the company provided fiscal 2023 revenue guidance of around $2.16 billion, falling short of analysts expectations of $2.19 billion, and two, the broader markets declined after the first Omicron case was confirmed in the U.S. Our dashboard on Veeva Revenues offers more details on the company’s revenues and provides comparison to its peers.
2. Veeva Is More Profitable
Similar to the pattern seen in revenue growth, Veeva’s operating margin of 27% over the last twelve month period (does not take into account the Q3 numbers reported yesterday) is 7x better than just 4% for Boston Scientific, and it compares with 26% and 14% figures in 2019, before the pandemic, respectively. Even if we were to look at the last three-year change in operating margin, Veeva’s 140 bps rise is better than a 350 bps decline for Boston Scientific.
Overall, Veeva’s operating margin has historically been better than Boston Scientific, and it is on an uptrend, while the margin has contracted for Boston Scientific, partly due to the impact of the pandemic on its business. Looking forward, although the operating margin for both companies is likely to pick up, it is expected to remain below the 2019 levels for Boston Scientific, but higher than 2019 levels for Veeva, in our view. Our Veeva Operating Income Comparison and Boston Scientific Operating Income Comparison provides more details on the margins.
The Net of It All
Now that nearly 60% of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for medical devices and supplies is likely to rise going forward, boding well for Boston Scientific. For Veeva, a broader shift to digital communication is likely to pave way for continued growth for the company.
That said, Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in some of the geographies, including Europe, are higher than what they were a few months back. The concerns around Omicron have spooked the markets at large with one confirmed case in the U.S. as well. If there is another large spike in Covid-19 cases from the new variant, it will disrupt economic recovery and impact sales as well as earnings growth of many companies. This may result in pressure on margins in the near term, especially for Boston Scientific.
While Boston Scientific’s current valuation is surely more attractive than that of Veeva, with BSX stock trading at about 5x trailing revenues, versus 23x for Veeva, the latter has demonstrated better revenue growth and it is more profitable. Not only that, even if we were to look at financial risk, Veeva is debt free, while for Boston Scientific debt as a percentage of its equity is around 16%. Veeva’s 67% cash as percentage of assets is far better than the 6% figure for Boston Scientific, implying that Veeva has much lower financial risk compared to Boston Scientific.
Overall, Veeva trumps Boston Scientific in most of the metrics that matter for investors and we think this gap in valuation between VEEV and BSX is largely justified. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Veeva may continue to outperform with its better growth prospects and lower risk. We believe that investors can use the current dip in VEEV stock following its Q3 release yesterday as a buying opportunity for higher gains in the long run.
The table below summarizes our revenue and return expectation for BSX and VEEV over the next three years, and points to an expected return of 25% for BSX over this period vs. 58% for VEEV. Our dashboard Boston Scientific vs Veeva has more details on how we arrive at these numbers.
While VEEV stock may see higher levels, 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 Veeva vs. Etsy.
Wondering how Boston Scientific peers stack up? Check out Boston Scientific Stock Comparison With Peers to see how BSX stock compares against peers on metrics that matter. You can find more such useful comparisons on 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 Dec 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
BSX Return -9% 8% 80%
VEEV Return -12% 2% 582%
S&P 500 Return 0% 23% 106%
Trefis MS Portfolio Return 0% 44% 292%
[1] Month-to-date and year-to-date as of 12/2/2021
[2] Cumulative total returns since 2017
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 Boston Scientific saw a fall in demand for medical devices and supplies during the pandemic, due to fewer surgical procedures, Veeva’s business expanded with increased adoption of digital communication channels. The Net of It All Now that nearly 60% of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for medical devices and supplies is likely to rise going forward, boding well for Boston Scientific. That said, Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in some of the geographies, including Europe, are higher than what they were a few months back. | One, the company provided fiscal 2023 revenue guidance of around $2.16 billion, falling short of analysts expectations of $2.19 billion, and two, the broader markets declined after the first Omicron case was confirmed in the U.S. Our dashboard on Veeva Revenues offers more details on the company’s revenues and provides comparison to its peers. Our Veeva Operating Income Comparison and Boston Scientific Operating Income Comparison provides more details on the margins. Total [2] BSX Return -9% 8% 80% VEEV Return -12% 2% 582% S&P 500 Return 0% 23% 106% Trefis MS Portfolio Return 0% 44% 292% [1] Month-to-date and year-to-date as of 12/2/2021 [2] Cumulative total returns since 2017 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. | Veeva’s Revenue Growth Has Been Better Veeva’s revenue growth of 26% over the last quarter was much higher than 9% for Boston Scientific, led by strong 29% growth in subscription revenues. Veeva Is More Profitable Similar to the pattern seen in revenue growth, Veeva’s operating margin of 27% over the last twelve month period (does not take into account the Q3 numbers reported yesterday) is 7x better than just 4% for Boston Scientific, and it compares with 26% and 14% figures in 2019, before the pandemic, respectively. While Boston Scientific’s current valuation is surely more attractive than that of Veeva, with BSX stock trading at about 5x trailing revenues, versus 23x for Veeva, the latter has demonstrated better revenue growth and it is more profitable. | One, the company provided fiscal 2023 revenue guidance of around $2.16 billion, falling short of analysts expectations of $2.19 billion, and two, the broader markets declined after the first Omicron case was confirmed in the U.S. Our dashboard on Veeva Revenues offers more details on the company’s revenues and provides comparison to its peers. Overall, Veeva’s operating margin has historically been better than Boston Scientific, and it is on an uptrend, while the margin has contracted for Boston Scientific, partly due to the impact of the pandemic on its business. While Boston Scientific’s current valuation is surely more attractive than that of Veeva, with BSX stock trading at about 5x trailing revenues, versus 23x for Veeva, the latter has demonstrated better revenue growth and it is more profitable. |
31893.0 | 2021-12-03 00:00:00 UTC | Even Good Penny Stocks Like Senseonics Aren’t Always Profitable | ABT | https://www.nasdaq.com/articles/even-good-penny-stocks-like-senseonics-arent-always-profitable | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
To call Senseonics Holdings (NYSEAMERICAN:SENS) a penny stock isn’t to say it sells for a penny. The phrase refers to any stock with a low price and low market capitalization, and SENS stock currently goes for about $2.70 per share. Such stocks are always speculative, and the low market cap makes them easy for investors to manipulate.
Source: Andrew_Popov / Shutterstock.com
Senseonics makes Eversense, an implanted glucose monitor for diabetics. The latest version can take measurements for six months. The version on the market today runs for just three months, but that’s still longer than its competitors.
Senseonics went public over five years ago in March 2016. It priced its 15.8 million shares at $2.85 each. As of the morning of Dec. 2, the stock was at the same price. This doesn’t mean SENS stock has gone nowhere. There are now almost 446 million shares outstanding.
The SENS Stock Story
The Senseonics story is one of great promise, but not great results. The Dec. 2 market cap of $1.27 billion supports sales of $13.6 million over the last four quarters.
7 Energy Stocks to Heat Up Your Portfolio This Winter
If you have severe diabetes, however, Eversense is cool. The sensor, implanted in an arm, is not much bigger than a thick grain of rice. The transmitter sits outside the arm. It is removable, rechargeable and water resistant.
It’s also pretty accurate. The data runs through a service provider called Ascensia, which was created from former units of Panasonic (OTCMKTS:PCRFY) and Bayer (OTCMKTS:BAYRY). You can see the results on a mobile app or a smart watch.
The product has gone through multiple rounds of hype and disappointment. When the hype was high, Senseonics sold stock. When disappointment came in, the price fell.
In September, Senseonics had a premarket approval supplement application before the Food and Drug Administration. The hope was that if the application was approved, sales could jump to $150 million to 200 million in a few years. As things currently stand, you’re paying $6,400 per year for the product and service.
Hopes also ran high when SENS stock was picked up by traders on Reddit. At one point in February, the shares traded at $5.56. Our Chris Markoch recently wrote about Senseonics having the potential for 10x gains in 2022.
The Penny Stock Story
I have a basic prejudice against penny stocks. That is, if these ideas are so great, why haven’t venture capitalists jumped on it? Why does management need your money to reach the market?
In the case of Senseonics, the argument is one of time. It may take a decade for the company’s approach to prove itself. Meanwhile, it faces competition from Dexcom (NASDAQ:DXCM). This rival company has endorsements from singers Nick Jonas and Patti LaBelle and costs $300 per month for a sensor that lasts 10 days. There’s also Abbott Laboratories (NYSE:ABT), which offers a system called MyFreeStyle with a sensor that lasts 14 days.
Then there’s Apple (NASDAQ:AAPL), which is rumored to have plans for a glucose monitoring system inside Version 8 of the Apple Watch, using short-wavelength infrared sensors.
Senseonics has a long-running, accurate sensor, and if insurers pick it up so the price to patients drop, sales could jump. But it’s not alone in the market.
The Bottom Line on SENS Stock
Senseonics is what I call a “good” penny stock. It’s working on a real product with serious potential. The company has been developing and refining its offering for many years, and the latest version shows promise.
But a small company can only run so fast. A surgical implant that lasts six months won’t win against a service using radio waves inside an Apple Watch.
Even if Senseonics achieves $150 million in sales, you’re still paying 10 times revenue for SENS stock. You don’t know its profitability compared to Abbott and Dexcom. Plus, Apple could blow it out of the water on costs.
The great future Senseonics promises might not arrive.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Dana Blankenhorn held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial journalist since 1978. His latest book is Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn.
The post Even Good Penny Stocks Like Senseonics Aren’t Always Profitable 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. | There’s also Abbott Laboratories (NYSE:ABT), which offers a system called MyFreeStyle with a sensor that lasts 14 days. This rival company has endorsements from singers Nick Jonas and Patti LaBelle and costs $300 per month for a sensor that lasts 10 days. A surgical implant that lasts six months won’t win against a service using radio waves inside an Apple Watch. | There’s also Abbott Laboratories (NYSE:ABT), which offers a system called MyFreeStyle with a sensor that lasts 14 days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips To call Senseonics Holdings (NYSEAMERICAN:SENS) a penny stock isn’t to say it sells for a penny. Source: Andrew_Popov / Shutterstock.com Senseonics makes Eversense, an implanted glucose monitor for diabetics. | There’s also Abbott Laboratories (NYSE:ABT), which offers a system called MyFreeStyle with a sensor that lasts 14 days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips To call Senseonics Holdings (NYSEAMERICAN:SENS) a penny stock isn’t to say it sells for a penny. The Bottom Line on SENS Stock Senseonics is what I call a “good” penny stock. | There’s also Abbott Laboratories (NYSE:ABT), which offers a system called MyFreeStyle with a sensor that lasts 14 days. The hope was that if the application was approved, sales could jump to $150 million to 200 million in a few years. Even if Senseonics achieves $150 million in sales, you’re still paying 10 times revenue for SENS stock. |
31894.0 | 2021-12-03 00:00:00 UTC | iShares S&P 500 Growth ETF Experiences Big Inflow | ABT | https://www.nasdaq.com/articles/ishares-sp-500-growth-etf-experiences-big-inflow | 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 500 Growth ETF (Symbol: IVW) where we have detected an approximate $93.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 480,650,000 to 481,800,000). Among the largest underlying components of IVW, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Standard and Poors Global Inc (Symbol: SPGI) is off about 0.6%, and United Parcel Service Inc (Symbol: UPS) is up by about 0.8%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $60.70 per share, with $84.88 as the 52 week high point — that compares with a last trade of $80.60. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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 IVW, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Standard and Poors Global Inc (Symbol: SPGI) is off about 0.6%, and United Parcel Service Inc (Symbol: UPS) is up by about 0.8%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $60.70 per share, with $84.88 as the 52 week high point — that compares with a last trade of $80.60. 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 IVW, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Standard and Poors Global Inc (Symbol: SPGI) is off about 0.6%, and United Parcel Service Inc (Symbol: UPS) is up by about 0.8%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $60.70 per share, with $84.88 as the 52 week high point — that compares with a last trade of $80.60. 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 IVW, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Standard and Poors Global Inc (Symbol: SPGI) is off about 0.6%, and United Parcel Service Inc (Symbol: UPS) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $93.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 480,650,000 to 481,800,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $60.70 per share, with $84.88 as the 52 week high point — that compares with a last trade of $80.60. | Among the largest underlying components of IVW, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Standard and Poors Global Inc (Symbol: SPGI) is off about 0.6%, and United Parcel Service Inc (Symbol: UPS) is up by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $93.3 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 480,650,000 to 481,800,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $60.70 per share, with $84.88 as the 52 week high point — that compares with a last trade of $80.60. |
31895.0 | 2021-12-01 00:00:00 UTC | Will Intuitive Surgical Stock Rebound After Its Recent Fall? | ABT | https://www.nasdaq.com/articles/will-intuitive-surgical-stock-rebound-after-its-recent-fall | nan | nan | The stock price of Intuitive Surgical (NASDAQ: ISRG), a fast growing robotic surgical devices company, has seen a 7% fall in a month, while it was down nearly 6% just last week. This can largely be attributed to a broader sell-off in the markets with the S&P500 falling over 2% following the reports of a new variant of the Covid-19 – Omicron – which has 32 mutations in the spike protein – the part of the virus that Covid-19 vaccines target. WHO declared Omicron to be a variant of concern. Overall, the markets were looking forward to the ramp up in demand and opening up of economies, but now, there are looming concerns of more restrictions. In fact, many countries in Europe are now looking at increased restrictions, and Austria is going with a partial lockdown since last week, and moving forward with a vaccine mandate.
Looking at Intuitive Surgical, a rise in the number of Covid-19 cases means more pressure on healthcare institutions, especially in certain geographies with limited resources. This will likely impact the total procedure volume, a trend seen in the recent past as well, with the spread of the Delta variant.
But now that ISRG stock has fallen 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 ISRG stock over the next month. Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 161 out of 248, or about a 65% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of Rise for more details.
So, if this follows the historical pattern, ISRG stock is likely to see higher levels. That said, the move in ISRG stock will also depend on the trend in U.S. Covid-19 cases. If the Omicron results in another large spike in total number of Covid-19 cases, it is likely that ISRG stock will actually see even lower levels, along with some of the other medical devices companies, as well. Wondering how Intuitive Surgical’s peers stack up? Check out Intuitive Surgical Stock Comparison With Peers to see how ISRG 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 -5.6% or more over a five-day period, the stock rose in the next five days on 55% of the occasions.
After moving -7.2% or more over a ten-day period, the stock rose in the next ten days on 56% of the occasions
After moving -7.4% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 65% of the occasions.
Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers
Five-Day Return: BDX highest at -1.4%; EW lowest at -6.4%
Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3%
Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7%
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, 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 United Therapeutics vs Quest Diagnostics.
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 Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
ISRG Return -6% 21% 367%
S&P 500 Return 1% 22% 105%
Trefis MS Portfolio Return -3% 46% 297%
[1] Month-to-date and year-to-date as of 11/29/2021
[2] Cumulative total returns since 2017
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. | This can largely be attributed to a broader sell-off in the markets with the S&P500 falling over 2% following the reports of a new variant of the Covid-19 – Omicron – which has 32 mutations in the spike protein – the part of the virus that Covid-19 vaccines target. If the Omicron results in another large spike in total number of Covid-19 cases, it is likely that ISRG stock will actually see even lower levels, along with some of the other medical devices companies, as well. Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data After moving -5.6% or more over a five-day period, the stock rose in the next five days on 55% of the occasions. | The stock price of Intuitive Surgical (NASDAQ: ISRG), a fast growing robotic surgical devices company, has seen a 7% fall in a month, while it was down nearly 6% just last week. Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: BDX highest at -1.4%; EW lowest at -6.4% Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3% Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7% 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, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | Out of 248 instances in the last ten years that ISRG stock saw a twenty-one day fall of 7% or more, 161 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: BDX highest at -1.4%; EW lowest at -6.4% Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3% Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Total [2] ISRG Return -6% 21% 367% S&P 500 Return 1% 22% 105% Trefis MS Portfolio Return -3% 46% 297% [1] Month-to-date and year-to-date as of 11/29/2021 [2] Cumulative total returns since 2017 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. | WHO declared Omicron to be a variant of concern. If the Omicron results in another large spike in total number of Covid-19 cases, it is likely that ISRG stock will actually see even lower levels, along with some of the other medical devices companies, as well. Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: BDX highest at -1.4%; EW lowest at -6.4% Ten-Day Return: BDX highest at 0.4%; BSX lowest at -8.3% Twenty-One Days Return: BDX highest at 2.7%; BSX lowest at -10.7% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. |
31896.0 | 2021-11-30 00:00:00 UTC | What's Next For Medtronic Stock After A Mixed Q2? | ABT | https://www.nasdaq.com/articles/whats-next-for-medtronic-stock-after-a-mixed-q2 | nan | nan | [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 Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
MDT Return -9% -5% 57%
S&P 500 Return 1% 22% 105%
Trefis MS Portfolio Return -2% 49% 304%
[1] Month-to-date and year-to-date as of 11/26/2021
[2] Cumulative total returns since 2017
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. | 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. 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). 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. | [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. (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. 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. | [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. (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. (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. | [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. 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. 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. |
31897.0 | 2021-11-30 00:00:00 UTC | Intuitive Surgical Stock Appears To Be A Better Bet Over This Medical Technology Company | ABT | https://www.nasdaq.com/articles/intuitive-surgical-stock-appears-to-be-a-better-bet-over-this-medical-technology-company | nan | nan | We think that Intuitive Surgical stock (NASDAQ: ISRG) is currently is a better pick compared to Edwards Lifesciences (NYSE: EW), a medical technology company specializing in artificial heart valves and hemodynamic monitoring, despite Intuitive Surgical being the more expensive of the two. ISRG trades at about 22x trailing revenues, compared to just 14x for Edwards Lifesciences. Although both the companies have benefited from the rise in total procedure volume post-pandemic, Intuitive Surgical’s financial performance has been better over the recent years. 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 as well as operating margin growth. Our dashboard Intuitive Surgical vs Edwards Lifesciences: Industry Peers; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below.
1. Intuitive Surgical Revenue Growth Has Been Stronger
Now, Intuitive Surgical’s revenue growth over the last twelve month period was better than Edwards Lifesciences (27% vs. 17%), given a sharp rebound in total procedure volume, resulting in more da Vinci system placements. Even if we were to look at a longer duration, Intuitive Surgical’s last three fiscal year CAGR of 11.6% is higher than that of 8.5% CAGR for Edwards Lifesciences.
Looking forward, Intuitive Surgical is expected to see strong revenue growth with rising demand for robotic surgical systems. For Edwards LIfesciences as well, a rebound in total procedure volume is likely to drive its revenue growth. For full-year 2021, Intuitive Surgical revenues are estimated to be north of $5.7 billion, reflecting a 30% y-o-y growth, while the growth rate is expected to slow to low teens next year. For Edwards Lifesciences, total estimated sales of $5.3 billion in 2021, reflect 20% y-o-y growth, and the growth rate is expected to slow to low double-digits in 2022. Our Intuitive Surgical Revenues dashboard provides more insight on the company’s revenues.
2. Intuitive Surgical Is More Profitable
Similar to the pattern seen in revenue growth, Intuitive Surgical’s last three year average operating margin of 29% is higher than 22% for Edwards Lifesciences. Both the companies have seen a rebound in operating margins over the recent quarters, and the last twelve-month operating margin is over 32% for both the companies. This compares with the 31% figure for Intuitive Surgical and the 26% figure for Edwards Lifesciences in 2019, before the pandemic. Overall, Intuitive Surgical’s margins have been better than Edwards Lifesciences. That said, the margins for both companies are likely to be adversely impacted in the near term due to inflationary pressure, and supply chain headwinds, but rise in the long run.
The Net of It All
Now that nearly 60% of the U.S. population is fully vaccinated against Covid-19, with overall economic activity seeing strong growth, the demand for medical devices is likely to rise going forward, boding well for both the companies. As the Covid-19 crisis winds down, the demand for medical devices sales will also normalize after the backlog of procedures is cleared. However, for Intuitive Surgical, its growth outlook is dependent on new placements for its da Vinci systems and it is likely to remain high over the coming years, given the limited competition, and rising procedure volume.
Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in the U.S. are higher than what they were a few months back, despite them falling m-o-m in October. This may directly impact the procedure volume in some of the geographies in the near term. That said, both the companies have seen a strong rebound in demand since the pandemic. While Edwards Lifesciences current valuation is surely more attractive than that of Intuitive Surgical, with EW stock trading at about 14x trailing revenues, versus 22x for Intuitive Surgical, the latter has demonstrated better revenue growth and better profitability over the last few years.
Not only that, even if we were to look at financial risk, Intuitive Surgical doesn’t have any significant debt, while its 63% cash as percentage of assets is also better than the 22% figure for Edwards Lifesciences. Overall, Intuitive Surgical trumps Edwards Lifesciences in most of the metrics that matter for investors and we think this gap in valuation between Intuitive Surgical and Edwards Lifesciences is largely justified. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Intuitive Surgical may continue to outperform with its better growth prospects and lower risk.
While ISRG stock may see higher levels, 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 Abbott vs. Corcept.
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 Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
ISRG Return -3% 24% 382%
EW Return -2% 25% 267%
S&P 500 Return 3% 25% 110%
Trefis MS Portfolio Return -2% 49% 304%
[1] Month-to-date and year-to-date as of 11/25/2021
[2] Cumulative total returns since 2017
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. | However, for Intuitive Surgical, its growth outlook is dependent on new placements for its da Vinci systems and it is likely to remain high over the coming years, given the limited competition, and rising procedure volume. Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in the U.S. are higher than what they were a few months back, despite them falling m-o-m in October. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Intuitive Surgical may continue to outperform with its better growth prospects and lower risk. | Looking forward, Intuitive Surgical is expected to see strong revenue growth with rising demand for robotic surgical systems. For Edwards Lifesciences, total estimated sales of $5.3 billion in 2021, reflect 20% y-o-y growth, and the growth rate is expected to slow to low double-digits in 2022. While Edwards Lifesciences current valuation is surely more attractive than that of Intuitive Surgical, with EW stock trading at about 14x trailing revenues, versus 22x for Intuitive Surgical, the latter has demonstrated better revenue growth and better profitability over the last few years. | Intuitive Surgical Revenue Growth Has Been Stronger Now, Intuitive Surgical’s revenue growth over the last twelve month period was better than Edwards Lifesciences (27% vs. 17%), given a sharp rebound in total procedure volume, resulting in more da Vinci system placements. Intuitive Surgical Is More Profitable Similar to the pattern seen in revenue growth, Intuitive Surgical’s last three year average operating margin of 29% is higher than 22% for Edwards Lifesciences. While Edwards Lifesciences current valuation is surely more attractive than that of Intuitive Surgical, with EW stock trading at about 14x trailing revenues, versus 22x for Intuitive Surgical, the latter has demonstrated better revenue growth and better profitability over the last few years. | Looking forward, Intuitive Surgical is expected to see strong revenue growth with rising demand for robotic surgical systems. Overall, Intuitive Surgical’s margins have been better than Edwards Lifesciences. While Edwards Lifesciences current valuation is surely more attractive than that of Intuitive Surgical, with EW stock trading at about 14x trailing revenues, versus 22x for Intuitive Surgical, the latter has demonstrated better revenue growth and better profitability over the last few years. |
31898.0 | 2021-11-29 00:00:00 UTC | Thermo Fisher says its COVID-19 tests accurately detects Omicron variant | ABT | https://www.nasdaq.com/articles/thermo-fisher-says-its-covid-19-tests-accurately-detects-omicron-variant-0 | nan | nan | By Radhika Anilkumar and Carl O'Donnell
Nov 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N said on Monday its COVID-19 diagnostic tests can accurately detect the new coronavirus variant Omicron that has prompted several countries to shut their borders.
The World Health Organisation (WHO) last week classified the Omicron variant as a SARS-CoV-2 "variant of concern," saying it may spread more quickly than other forms.
Thermo Fisher's TaqPath COVID-19 assays can report accurate results even in the case where one of the gene targets is impacted by a mutation, the company said in a statement.
"This assay can be used not only to successfully detect COVID-19 but… it can also be used as a proxy for the [Omicron] variant," Mark Stevenson, chief operating officer at Thermo Fisher Scientific, said in an interview.
Stevenson said this is the only COVID-19 diagnostic test that is both authorized by the U.S. Food and Drug Administration and can be used to indicate if a case is caused by the Omicron variant.
He added that Thermo is prepared to increase its production of tests to meet demand from countries in Africa and elsewhere as they work to track the spread of the new variant.
Other COVID-19 tests, including from Roche Holding AG ROG.S and Abbott Laboratories ABT.N, can also be used to diagnose positive cases of COVID-19 caused by the variant, though only Thermo Fisher has so far confirmed that its test can be used to help identify the variant.
"We have conducted an assessment of the Omicron variant and we’re confident our antigen and PCR tests can" identify positive cases of COVID-19 caused by Omicron, a spokeswoman for Abbott said.
Test samples must still be sent to a lab for sequencing to confirm that the case was caused by Omicron and not another variant with similar features, such as the Alpha variant, Stevenson said.
Omicron, which was first detected in Southern Africa, has now been confirmed in Australia, Belgium, Botswana, Britain, Denmark, Germany, Hong Kong, Israel, Italy, the Netherlands, France, South Africa, and the United States' neighbor to the north, Canada.
The WHO said it was working with technical experts to understand the potential impact of the variant on existing countermeasures against COVID-19, including vaccines.
(Reporting by Radhika Anilkumar in Bengaluru and Carl O'Donnell in New York; Editing by Arun Koyyur and Andrea Ricci)
((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other COVID-19 tests, including from Roche Holding AG ROG.S and Abbott Laboratories ABT.N, can also be used to diagnose positive cases of COVID-19 caused by the variant, though only Thermo Fisher has so far confirmed that its test can be used to help identify the variant. By Radhika Anilkumar and Carl O'Donnell Nov 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N said on Monday its COVID-19 diagnostic tests can accurately detect the new coronavirus variant Omicron that has prompted several countries to shut their borders. Thermo Fisher's TaqPath COVID-19 assays can report accurate results even in the case where one of the gene targets is impacted by a mutation, the company said in a statement. | Other COVID-19 tests, including from Roche Holding AG ROG.S and Abbott Laboratories ABT.N, can also be used to diagnose positive cases of COVID-19 caused by the variant, though only Thermo Fisher has so far confirmed that its test can be used to help identify the variant. By Radhika Anilkumar and Carl O'Donnell Nov 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N said on Monday its COVID-19 diagnostic tests can accurately detect the new coronavirus variant Omicron that has prompted several countries to shut their borders. Thermo Fisher's TaqPath COVID-19 assays can report accurate results even in the case where one of the gene targets is impacted by a mutation, the company said in a statement. | Other COVID-19 tests, including from Roche Holding AG ROG.S and Abbott Laboratories ABT.N, can also be used to diagnose positive cases of COVID-19 caused by the variant, though only Thermo Fisher has so far confirmed that its test can be used to help identify the variant. By Radhika Anilkumar and Carl O'Donnell Nov 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N said on Monday its COVID-19 diagnostic tests can accurately detect the new coronavirus variant Omicron that has prompted several countries to shut their borders. Test samples must still be sent to a lab for sequencing to confirm that the case was caused by Omicron and not another variant with similar features, such as the Alpha variant, Stevenson said. | Other COVID-19 tests, including from Roche Holding AG ROG.S and Abbott Laboratories ABT.N, can also be used to diagnose positive cases of COVID-19 caused by the variant, though only Thermo Fisher has so far confirmed that its test can be used to help identify the variant. By Radhika Anilkumar and Carl O'Donnell Nov 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N said on Monday its COVID-19 diagnostic tests can accurately detect the new coronavirus variant Omicron that has prompted several countries to shut their borders. "This assay can be used not only to successfully detect COVID-19 but… it can also be used as a proxy for the [Omicron] variant," Mark Stevenson, chief operating officer at Thermo Fisher Scientific, said in an interview. |
31899.0 | 2021-11-24 00:00:00 UTC | Pre-Market Most Active for Nov 24, 2021 : SQQQ, WISH, GPS, JWN, PROG, ABT, OIS, MNOV, FUTU, VNE, CAH, LCID | ABT | https://www.nasdaq.com/articles/pre-market-most-active-for-nov-24-2021-%3A-sqqq-wish-gps-jwn-prog-abt-ois-mnov-futu-vne-cah | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -77.87 to 16,228.85. The total Pre-Market volume is currently 20,007,072 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.07 at $6.26, with 2,136,253 shares traded. This represents a 10.02% increase from its 52 Week Low.
ContextLogic Inc. (WISH) is -0.18 at $3.79, with 1,457,122 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $-0.1. WISH's current last sale is 75.8% of the target price of $5.
Gap, Inc. (The) (GPS) is -5.01 at $18.50, with 1,211,296 shares traded. GPS's current last sale is 57.81% of the target price of $32.
Nordstrom, Inc. (JWN) is -8.23 at $23.70, with 768,701 shares traded. JWN's current last sale is 67.71% of the target price of $35.
Progenity, Inc. (PROG) is -0.26 at $3.73, with 761,456 shares traded. PROG's current last sale is 186.5% of the target price of $2.
Abbott Laboratories (ABT) is -0.48 at $124.00, with 712,331 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range".
Oil States International, Inc. (OIS) is -0.05 at $5.43, with 626,525 shares traded. OIS's current last sale is 77.57% of the target price of $7.
MediciNova, Inc. (MNOV) is -0.55 at $3.87, with 566,299 shares traded. As reported in the last short interest update the days to cover for MNOV is 21.814865; this calculation is based on the average trading volume of the stock.
Futu Holdings Limited (FUTU) is +1.69 at $56.00, with 558,687 shares traded. As reported by Zacks, the current mean recommendation for FUTU is in the "buy range".
Veoneer, Inc. (VNE) is -0.32 at $35.19, with 544,360 shares traded. VNE's current last sale is 112.43% of the target price of $31.3.
Cardinal Health, Inc. (CAH) is -0.19 at $48.95, with 531,169 shares traded. CAH's current last sale is 82.97% of the target price of $59.
Lucid Group, Inc. (LCID) is +0.06 at $52.50, with 531,010 shares traded. As reported by Zacks, the current mean recommendation for LCID is in the "strong buy range".
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 -0.48 at $124.00, with 712,331 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. | As reported by Zacks, the current mean recommendation for ABT is in the "buy range". Abbott Laboratories (ABT) is -0.48 at $124.00, with 712,331 shares traded. The total Pre-Market volume is currently 20,007,072 shares traded. | Abbott Laboratories (ABT) is -0.48 at $124.00, with 712,331 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". The total Pre-Market volume is currently 20,007,072 shares traded. | Abbott Laboratories (ABT) is -0.48 at $124.00, with 712,331 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range". PROG's current last sale is 186.5% of the target price of $2. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.