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32000.0 | 2021-09-01 00:00:00 UTC | Notable ETF Inflow Detected - SPLG, BRK.B, VZ, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-splg-brk.b-vz-abt-2021-09-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $135.4 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 230,250,000 to 232,800,000). Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.2%, Verizon Communications Inc (Symbol: VZ) is trading flat, and Abbott Laboratories (Symbol: ABT) is higher by about 0.2%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $53.27 as the 52 week high point — that compares with a last trade of $53.18. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.2%, Verizon Communications Inc (Symbol: VZ) is trading flat, and Abbott Laboratories (Symbol: ABT) is higher by about 0.2%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $53.27 as the 52 week high point — that compares with a last trade of $53.18. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.2%, Verizon Communications Inc (Symbol: VZ) is trading flat, and Abbott Laboratories (Symbol: ABT) is higher by about 0.2%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $53.27 as the 52 week high point — that compares with a last trade of $53.18. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.2%, Verizon Communications Inc (Symbol: VZ) is trading flat, and Abbott Laboratories (Symbol: ABT) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $135.4 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 230,250,000 to 232,800,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $53.27 as the 52 week high point — that compares with a last trade of $53.18. | Among the largest underlying components of SPLG, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is down about 0.2%, Verizon Communications Inc (Symbol: VZ) is trading flat, and Abbott Laboratories (Symbol: ABT) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $135.4 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 230,250,000 to 232,800,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $53.27 as the 52 week high point — that compares with a last trade of $53.18. |
32001.0 | 2021-09-01 00:00:00 UTC | Here's Why United Therapeutics Stock May Continue To Trend Higher | ABT | https://www.nasdaq.com/articles/heres-why-united-therapeutics-stock-may-continue-to-trend-higher-2021-09-01 | nan | nan | The stock price of United Therapeutics (NASDAQ:UTHR), a biotechnology company, has seen a rise of over 15% over the last twenty-one trading days, and it is up a solid 97% over the last twelve-month period. The rally in UTHR stock over the last month or so has been propelled by its very strong and upbeat Q2 results, driven by revenue gains for all of its products, including Remodulin, Tyvaso, and Unituxin. The company beat the consensus earnings estimate by a wide 35% margin, and its management stated that the growth momentum is likely to continue in the near term. Recently, the company has announced that it will present data from a clinical trial studying Tyvaso DPI in patients with pulmonary arterial hypertension (PAH) at the European Respiratory Society (ERS) International Congress 2021 next week. It has also submitted a new drug application to the U.S. FDA for the approval of Tyvaso DPI to treat certain patients with PAH and pulmonary hypertension.
But now that UTHR stock has seen a large move in the recent past, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of more gains in UTHR stock over the next month. Out of 213 instances in the last ten years that UTHR stock saw a twenty-one day rise of 10% or more, 116 of them resulted in UTHR stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 116 out of 213, or about a 54% chance of a rise in UTHR stock over the coming month. See our analysis on United Therapeutics Stock Chances of Rise for more details. Furthermore, the U.S. FDA is likely to decide on the company’s new drug application for Tyvaso DPI in October, and if approved, it will likely drive UTHR stock to higher levels, given that its peak sales are estimated to be over $1 billion.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving 3.4% or more over a five-day period, the stock rose in the next five days on 54% of the occasions.
After moving 4.2% or more over a ten-day period, the stock rose in the next ten days on 59% of the occasions
After moving 15% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 54% of the occasions.
Predict average return on United Therapeutics (UTHR) Stock Return: AI Predicts UTHR Average and Excess Return After a Fall or Rise
United Therapeutics (UTHR) Stock Return (Recent) Comparison With Peers
Five-Day Return: UTHR highest at 3.4%; LLY lowest at -4.1%
Ten-Day Return: UTHR highest at 4.2%; AMGN lowest at -3%
Twenty-One Days Return: UTHR highest at 15%; AMGN lowest at -8.1%
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While UTHR stock may continue to 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The rally in UTHR stock over the last month or so has been propelled by its very strong and upbeat Q2 results, driven by revenue gains for all of its products, including Remodulin, Tyvaso, and Unituxin. Recently, the company has announced that it will present data from a clinical trial studying Tyvaso DPI in patients with pulmonary arterial hypertension (PAH) at the European Respiratory Society (ERS) International Congress 2021 next week. Furthermore, the U.S. FDA is likely to decide on the company’s new drug application for Tyvaso DPI in October, and if approved, it will likely drive UTHR stock to higher levels, given that its peak sales are estimated to be over $1 billion. | It has also submitted a new drug application to the U.S. FDA for the approval of Tyvaso DPI to treat certain patients with PAH and pulmonary hypertension. Predict average return on United Therapeutics (UTHR) Stock Return: AI Predicts UTHR Average and Excess Return After a Fall or Rise United Therapeutics (UTHR) Stock Return (Recent) Comparison With Peers Five-Day Return: UTHR highest at 3.4%; LLY lowest at -4.1% Ten-Day Return: UTHR highest at 4.2%; AMGN lowest at -3% Twenty-One Days Return: UTHR highest at 15%; AMGN lowest at -8.1% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While UTHR stock may continue to see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | Out of 213 instances in the last ten years that UTHR stock saw a twenty-one day rise of 10% or more, 116 of them resulted in UTHR stock rising over the subsequent one-month period (twenty-one trading days). After moving 4.2% or more over a ten-day period, the stock rose in the next ten days on 59% of the occasions After moving 15% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 54% of the occasions. Predict average return on United Therapeutics (UTHR) Stock Return: AI Predicts UTHR Average and Excess Return After a Fall or Rise United Therapeutics (UTHR) Stock Return (Recent) Comparison With Peers Five-Day Return: UTHR highest at 3.4%; LLY lowest at -4.1% Ten-Day Return: UTHR highest at 4.2%; AMGN lowest at -3% Twenty-One Days Return: UTHR highest at 15%; AMGN lowest at -8.1% may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of United Therapeutics (NASDAQ:UTHR), a biotechnology company, has seen a rise of over 15% over the last twenty-one trading days, and it is up a solid 97% over the last twelve-month period. It has also submitted a new drug application to the U.S. FDA for the approval of Tyvaso DPI to treat certain patients with PAH and pulmonary hypertension. See our analysis on United Therapeutics Stock Chances of Rise for more details. |
32002.0 | 2021-08-31 00:00:00 UTC | COVID 19 Stocks -- Vaccines, Diagnostics, or Treatments? | ABT | https://www.nasdaq.com/articles/covid-19-stocks-vaccines-diagnostics-or-treatments-2021-08-31 | nan | nan | You can divide COVID-19 healthcare stocks into three broad categories: vaccines, diagnostics, and treatments. Three Fool.com contributors have each picked one sector they believe will be strong going forward, as well as one stock in that sector.
Taylor Carmichael still likes the vaccine space, and Novavax (NASDAQ: NVAX) remains his favorite investment in that sector. Patrick Bafuma has his eye on the diagnostic side, and he believes CareDx (NASDAQ: CDNA) is the winner going forward. And George Budwell offers his top pick for COVID-19 therapeutics: Gilead Sciences (NASDAQ: GILD). Read more to see why this trio is bullish on these stocks.
Image source: Getty Images.
1. Novavax's CEO is about to smack one out of the park
Taylor Carmichael (Novavax): Some investors are frustrated with Novavax CEO Stan Erck. We've been waiting for the company to file its Emergency Use Authorization request for months and months. There has been delay after delay. Erck has overpromised and underdelivered. Despite all this disappointment, the stock is up 109%.
NVAX data by YCharts
You know you're doing a good job when people are complaining about the stock doubling. Yes, the delays are annoying. But as Novavax files for authorizations around the world, in Europe and Asia and in the U.S., too, contemplate the massive opportunity the company has in front of it.
Novavax's market cap is $17 billion. The high estimate for next year is $7.9 billion in revenue. The low is $2.8 billion. If you put a price-to-sales ratio of 10 on those numbers, the market cap should fall somewhere between $28 billion and $79 billion.
That's what I'm expecting. The stock might hit both of those numbers, maybe in the same week. I'm expecting Novavax stock to be volatile, to run up on the first EUA, and the next one, and the one after that. I'm expecting a massive crash in the stock price, too. It's going to be crazy. By the end of the year? Stan the Man has two more doubles.
2. This diagnostic company will thrive regardless
Patrick Bafuma (CareDx): When it comes to biotech investing, pure plays can be rather volatile. The diagnostic market is no different. It can be dizzying to wade through the details of PCR testing, antigen testing, and at-home kits, not to mention sensitivity against variants. Add in the potential of combination testing with seasonal flu and respiratory syncytial virus, and predicting the COVID-19 diagnostics arena becomes a minefield. That, and I suspect betting against industry heavyweights like Abbott Laboratories or Roche Holding is a losing proposition in the long term.
Therefore, I turned to a diagnostics company that has grown through the pandemic; one that aided a vulnerable patient population along the way. A company that offers testing that is mission-critical for determining the health of a transplanted organ and one that an entire segment of the population would suffer without. CareDx and its bevy of testing and management services for patients before and after they receive an organ transplant is my choice for diagnostics.
CareDx looked at the COVID-19 black swan event as an opportunity to better serve its patients and emerged stronger because of it. In fact, more than 9,000 patients have signed up for the company's mobile blood draw service, RemoTraC. This entire process was created and implemented on March 17, 2020. For perspective, COVID-19 was declared a national emergency in the U.S. on March 13, 2020, and California became the first state to enact a stay-at-home order on March 19, 2020. Patients clearly want to continue using the mobile service, as the company reported approximately 40% of RemoTraC patients were still utilizing the program in each of the last two quarters -- suggesting RemoTraC may have some staying power. For perspective, the company ran about 36,000 tests in the most recent quarter, so while the mobile phlebotomy segment represents a small portion of total tests run, it's not the test volume I'm impressed with -- it is management's ability to find innovative ways to meet patient and clinician needs.
Speaking of growth, the second quarter was the transplant biotech's fifth consecutive quarter of both double-digit revenue and volume growth sequentially. With Q2 total revenue increasing 77% compared to the year-ago quarter and adjusted gross margin for Q2 at 70%, plus raising guidance for the second consecutive quarter, this company is firing on all cylinders. With COVID-19 testing slowing faster than some companies were expecting, and cancer diagnostic growth companies like Guardant Health growing revenue at a lesser clip than CareDx (39% year over year in the most recent quarter) and being somewhat reliant on an in-person sales force, this transplant diagnostics company seems to be immune from the adverse effects of the coronavirus. Despite the pandemic, CareDx topped its initial 2020 full-year revenue estimates by 16%, and is projecting just over 50% increase in revenue in 2021 -- its fourth straight year of 50% or more revenue growth.
And the $4 billion company has plenty of room for growth. Its testing for lung transplant patients for rejection has recently been approved and it is in the research phase of screening liver and stem cell transplantations for rejection. CareDx has also just recently started reaching out beyond large academic centers to local dialysis clinics. The company aids in the management of kidney transplant waiting lists for the community setting and is helping to set up testing protocols to help transition post-transplant patients from the transplant center back into their community dialysis centers. In short, it has lots of levers for future growth.
How a company reacts to uncertainty and challenges is telling; long-term winners often emerge from black swan events stronger. When it came to COVID-19, CareDx was not in survival mode, it looked at the pandemic as an opportunity. It asked how it could best serve patients. By keeping this focus, CareDx looks like a winning diagnostic stock with or without a pandemic.
3. Veklury: A proven commodity
George Budwell (Gilead Sciences): Most healthcare companies focusing on cutting-edge COVID-19 diagnostics and/or vaccines have benefited tremendously from the ongoing pandemic. But therein lies the problem for potential investors. Namely, the bulk of COVID-19 diagnostic and/or vaccine stocks are presently trading at sky-high valuations. Biotech heavyweight Gilead Sciences and its COVID-19 therapeutic Veklury (remdesivir) offer a compelling alternative for biotech investors on the hunt for considerable growth opportunities in the space.
Isn't Veklury on the wrong side of its growth trajectory? While it is indeed true that Veklury's sales have dropped from a jaw-dropping $1.9 billion in the fourth quarter of 2020 to a far more modest $829 million in the second quarter of 2021, the drug is still the therapy of choice, in most cases, for patients hospitalized with COVID-19, according to Gilead's management team. So, with the delta variant causing another wave of cases across the world, Veklury should remain an important cash cow for Gilead over the course of the next six months. That being said, the most attractive feature of this blue chip biotech stock is its overall value proposition.
Aside from Veklury, Gilead is seeing a healthy level of sales growth across its cohort of newer therapeutics, such as the megablockbuster HIV medicine Biktarvy, CAR-T therapy Tecartus, and breast cancer drug Trodelvy. What's more, the biotech's stock is currently trading at a paltry 3.7 times 2022 projected sales. That definitely qualifies as a low-end valuation within the realm of large-cap biotech stocks, especially for one that comes with an annual dividend yield of nearly 4% at current levels. All told, Gilead's stock comes across as a solid growth, value, and dividend play, thanks in no small part to Veklury.
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Patrick Bafuma has no position in any of the stocks mentioned. Taylor Carmichael owns shares of Novavax. George Budwell has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Guardant Health. The Motley Fool recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Add in the potential of combination testing with seasonal flu and respiratory syncytial virus, and predicting the COVID-19 diagnostics arena becomes a minefield. Veklury: A proven commodity George Budwell (Gilead Sciences): Most healthcare companies focusing on cutting-edge COVID-19 diagnostics and/or vaccines have benefited tremendously from the ongoing pandemic. Aside from Veklury, Gilead is seeing a healthy level of sales growth across its cohort of newer therapeutics, such as the megablockbuster HIV medicine Biktarvy, CAR-T therapy Tecartus, and breast cancer drug Trodelvy. | And George Budwell offers his top pick for COVID-19 therapeutics: Gilead Sciences (NASDAQ: GILD). With COVID-19 testing slowing faster than some companies were expecting, and cancer diagnostic growth companies like Guardant Health growing revenue at a lesser clip than CareDx (39% year over year in the most recent quarter) and being somewhat reliant on an in-person sales force, this transplant diagnostics company seems to be immune from the adverse effects of the coronavirus. Veklury: A proven commodity George Budwell (Gilead Sciences): Most healthcare companies focusing on cutting-edge COVID-19 diagnostics and/or vaccines have benefited tremendously from the ongoing pandemic. | For perspective, the company ran about 36,000 tests in the most recent quarter, so while the mobile phlebotomy segment represents a small portion of total tests run, it's not the test volume I'm impressed with -- it is management's ability to find innovative ways to meet patient and clinician needs. With COVID-19 testing slowing faster than some companies were expecting, and cancer diagnostic growth companies like Guardant Health growing revenue at a lesser clip than CareDx (39% year over year in the most recent quarter) and being somewhat reliant on an in-person sales force, this transplant diagnostics company seems to be immune from the adverse effects of the coronavirus. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Patrick Bafuma has no position in any of the stocks mentioned. | Novavax's CEO is about to smack one out of the park Taylor Carmichael (Novavax): Some investors are frustrated with Novavax CEO Stan Erck. Speaking of growth, the second quarter was the transplant biotech's fifth consecutive quarter of both double-digit revenue and volume growth sequentially. With COVID-19 testing slowing faster than some companies were expecting, and cancer diagnostic growth companies like Guardant Health growing revenue at a lesser clip than CareDx (39% year over year in the most recent quarter) and being somewhat reliant on an in-person sales force, this transplant diagnostics company seems to be immune from the adverse effects of the coronavirus. |
32003.0 | 2021-08-30 00:00:00 UTC | 2 Little-Followed Stocks That Are Soaring Monday | ABT | https://www.nasdaq.com/articles/2-little-followed-stocks-that-are-soaring-monday-2021-08-30 | nan | nan | Investors continued to have confidence in the stock market on Monday morning, and that translated into more record highs for some of the most popular stock indexes in the U.S. market. As of before noon EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 24 points to 35,480. The S&P 500 (SNPINDEX: ^GSPC) picked up another 26 points to 4,535, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 138 points to 15,267, both looking to extend their record runs.
None of those moves for the major market benchmarks was more than 1%, but some stocks saw big jumps. In particular, Hill-Rom Holdings (NYSE: HRC) and Globalstar (NYSEMKT: GSAT) were up double-digit percentages on strong news for their respective businesses. You'll find the details below.
Hill-Rom looks for a better offer
Shares of Hill-Rom Holdings jumped almost 11% on Monday morning. The manufacturer of hospital beds and other medical equipment has reportedly become the target of a potential acquisition bid.
Image source: Getty Images.
Industry peer Baxter International (NYSE: BAX) has been discussing buyout plans for Hill-Rom, according to Dow Jones. According to the news service's sources, Baxter is now looking to bid $150 per share, valuing Hill-Rom at roughly $10 billion. That would be a sweetened deal from a previous bid that Hill-Rom reportedly rejected.
The move only continues the trend of consolidation throughout the stock market and particularly in the medical equipment space. Much larger companies such as Abbott Laboratories and Medtronic have made major acquisitions, and even though Baxter is far smaller than those two industry giants, it also feels the pressure to expand its scale through smart strategic moves.
Hill-Rom would offer a lot of complementary benefits to Baxter's business. It'll be interesting to see whether the company actually moves forward with a bid, and if so, whether Hill-Rom chooses once again to hold out for more.
Globalstar heads into orbit
Meanwhile, shares of Globalstar soared more than 45%. The provider of satellite communications services is potentially looking at a game-changing move that could dramatically increase the size of its business.
There's been a lot of speculation about what the latest version of Apple's (NASDAQ: AAPL) iPhone will bring to the table. With the last release of the iPhone 12 adding 5G capabilities, many had anticipated that the iPhone 13 would be a more incremental update rather than providing any big new features.
However, one report has indicated that the iPhone 13 could support satellite communications. That'd be potentially valuable for users in areas where no cellular service is available or reliable. It could also bring a flood of new business to Globalstar.
Globalstar's low share price also makes it attractive to certain individual investors. Even though a low share price in itself isn't an indicator of a cheap stock or above-average growth potential, that perception still persists among much of the investing community.
The latest move has sent Globalstar's stock to its best level in several years, but it's still far, far below where it traded in its heyday in the mid-2000s. Shareholders hope that Globalstar was simply ahead of its time, and a lot of investors will have their eyes glued on Cupertino for details about the iPhone 13 when the smartphone finally gets released.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Much larger companies such as Abbott Laboratories and Medtronic have made major acquisitions, and even though Baxter is far smaller than those two industry giants, it also feels the pressure to expand its scale through smart strategic moves. Even though a low share price in itself isn't an indicator of a cheap stock or above-average growth potential, that perception still persists among much of the investing community. Shareholders hope that Globalstar was simply ahead of its time, and a lot of investors will have their eyes glued on Cupertino for details about the iPhone 13 when the smartphone finally gets released. | Hill-Rom looks for a better offer Shares of Hill-Rom Holdings jumped almost 11% on Monday morning. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Hill-Rom Holdings and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | Investors continued to have confidence in the stock market on Monday morning, and that translated into more record highs for some of the most popular stock indexes in the U.S. market. 10 stocks we like better than Hill-Rom Holdings When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool recommends Hill-Rom Holdings and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | None of those moves for the major market benchmarks was more than 1%, but some stocks saw big jumps. Hill-Rom looks for a better offer Shares of Hill-Rom Holdings jumped almost 11% on Monday morning. According to the news service's sources, Baxter is now looking to bid $150 per share, valuing Hill-Rom at roughly $10 billion. |
32004.0 | 2021-08-27 00:00:00 UTC | 3 Reasons to Buy This Undervalued Dividend Stock | ABT | https://www.nasdaq.com/articles/3-reasons-to-buy-this-undervalued-dividend-stock-2021-08-27 | nan | nan | German industrial giant Siemens (OTC: SIEGY) stands out as a beacon of value in an increasingly expensive market. The stock offers investors a compelling mix of exposure to growth industries (automation, industrial software, smart infrastructure, electrification) balanced by earnings from its majority holding in a world-class healthcare company, Siemens Healthineers. Sporting a dividend that at current share prices yields 2.6% and trading at attractive valuations, Siemens would make a strong addition to many portfolios.
Image source: Getty Images.
How Siemens makes money
Here's a quick look at the key industrial businesses that provide the bulk of Siemens earnings. For reference, the total company numbers differ from the total industrial businesses numbers for a few reasons.
Siemens also owns a financial services business and a diverse collection of small businesses which provide customized products (mechanical drives, wind energy generators, logistics, etc.) lumped together in its financials as "portfolio companies."
Mobility (rail infrastructure, rolling stock, traffic systems) is probably the least exciting of Siemens' main industrial businesses, but even it has good growth prospects. The segment won nearly 10 billion euros worth of orders in the first three quarters of its fiscal 2021 -- 44% more than the prior-year period's revenue of 6.7 billion euros. These included orders of 2.8 billion euros from U.S. rail system Amtrak. Management expects its mobility revenue will grow in the mid-single-digit percentage range in fiscal 2021.
SIEMENS INDUSTRIAL BUSINESS
REVENUE (FIRST 3 QUARTERS, FISCAL 2021)
EARNINGS (FIRST 3 QUARTERS, FISCAL 2021)
FREE CASH FLOW (FIRST 3 QUARTERS, FISCAL 2021)
Digital Industries
11.972 billion euros
2.506 billion euros
2.694 billion euros
Smart Infrastructure
10.809 billion euros
1.238 billion euros
1.197 billion euros
Mobility
6.722 billion euros
630 billion euros
(347 million euros)
Siemens Healthineers*
12.833 billion euros
2.161 billion euros
2.488 billion euros
Total Industrial
42.336 billion euros
6.535 billion euros
6.032 billion euros
Total Company**
44.820 billion euros
5.656 billion euros
4.517 billion euros
Data source: Siemens presentations. *Siemens owns a near 75% stake in Siemens Healthineers.
Now it's time to turn to the more exciting parts of the portfolio.
Siemens is undervalued compared to its peers
Siemens digital industries and smart infrastructure segments cater to some fascinating end markets, and they command leading positions in them. Moreover, nearly all the companies that Siemens competes with are valued at significantly higher premiums.
Its digital industries unit competes with Emerson Electric, ABB, Schneider Electric, Rockwell Automation in factory automation, process automation, motion control, and PTC and Dassault Systemes in industrial software. So while it's unreasonable to expect a software company-type valuation for Siemens, it's worth noting that software provides 28% of the segment's revenue.
Image source: Getty Images.
Moreover, the segment actively invests in the software business -- it acquired five software companies recently. CEO Roland Busch stated that "a particular focus is on our software and digital service offerings" during the recent earnings call. In addition, Siemens trades at a discount to its automation-focused peers like Rockwell and Emerson Electric.
Siemens' digital industries peers are highly rated because industrial companies are increasingly adopting automation to boost productivity. In addition, productivity is significantly enhanced by an explosion of Internet of Things-based digital solutions, which help owners run their physical assets better.
Data by YCharts
It's a similar story with Siemens' smart infrastructure segment. The segment plays to the theme of growing electrification in the economy, the increasing use of building controls, and relatively low growth electrical products. Competitors include ABB, Johnson Controls, Schneider Electric, and Honeywell.
Many investors are excited by Johnson Controls' ability to profit from increasing demand for building controls that help reduce carbon emissions. Honeywell recently upgraded its full-year growth expectations for its Honeywell building technologies segment, so why does the market appear to be undervaluing Siemens?
Siemens Healthineers
Siemens' stake in the publicly listed medical technology company, Siemens Healthineers (OTC: SMMNY), provides it with valuable earnings and free cash flow even during economic downturns. Key competitors in imaging include GE Healthcare and Philips, while Roche and Abbott Labs provide competition in diagnostics. Meanwhile, Varian Medical Systems (a business recently acquired by Siemens Healthineers for $16.4 billion) competes with Elekta. While the comparisons are not exact, it's still notable that Siemens' overall valuation stands again at the bottom of the pile.
The key attraction of Siemens Healthineers to Siemens is that it gives the company very valuable earnings and cash flow to support the company in any economic downturn.
Data by YCharts
Siemens absolute valuation
Appreciating that these comparisons aren't exact, and that Siemens probably has a conglomerate discount baked into its valuation, the stock still looks undervalued.
That view strengthens when looking at its absolute valuation, too. Wall Street analysts forecast the company will generate 6.2 billion euros in FCF in 2021 and 6.9 billion euros in FCF in 2022. Those figures would have Siemens trading at a ratio of 18.1 times FCF in 2021 and 16.2 times FCF in 2022. Given that industrial conglomerates are often seen as a reasonable value when they trade at a ratio of 20 times FCF, the stock appears cheap.
Historically speaking, Siemens valuation isn't far off what the stock has traded at, but the jettisoning of the power and gas businesses and repositioning toward growth industries suggests the stock deserves a higher valuation and can grow its earnings and dividend at a higher rate than in the past.
Throw in its exciting growth opportunities in digital industries, smart infrastructure, and its stake in Siemens Healthineers, and the stock looks like one of the best investing options in the industrial sector.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sporting a dividend that at current share prices yields 2.6% and trading at attractive valuations, Siemens would make a strong addition to many portfolios. Mobility (rail infrastructure, rolling stock, traffic systems) is probably the least exciting of Siemens' main industrial businesses, but even it has good growth prospects. In addition, productivity is significantly enhanced by an explosion of Internet of Things-based digital solutions, which help owners run their physical assets better. | Digital Industries 11.972 billion euros 2.506 billion euros 2.694 billion euros Smart Infrastructure 10.809 billion euros 1.238 billion euros 1.197 billion euros Mobility 6.722 billion euros 630 billion euros (347 million euros) Siemens Healthineers* 12.833 billion euros 2.161 billion euros 2.488 billion euros Total Industrial 42.336 billion euros 6.535 billion euros 6.032 billion euros Total Company** 44.820 billion euros 5.656 billion euros 4.517 billion euros Data source: Siemens presentations. Its digital industries unit competes with Emerson Electric, ABB, Schneider Electric, Rockwell Automation in factory automation, process automation, motion control, and PTC and Dassault Systemes in industrial software. Siemens Healthineers Siemens' stake in the publicly listed medical technology company, Siemens Healthineers (OTC: SMMNY), provides it with valuable earnings and free cash flow even during economic downturns. | The stock offers investors a compelling mix of exposure to growth industries (automation, industrial software, smart infrastructure, electrification) balanced by earnings from its majority holding in a world-class healthcare company, Siemens Healthineers. Digital Industries 11.972 billion euros 2.506 billion euros 2.694 billion euros Smart Infrastructure 10.809 billion euros 1.238 billion euros 1.197 billion euros Mobility 6.722 billion euros 630 billion euros (347 million euros) Siemens Healthineers* 12.833 billion euros 2.161 billion euros 2.488 billion euros Total Industrial 42.336 billion euros 6.535 billion euros 6.032 billion euros Total Company** 44.820 billion euros 5.656 billion euros 4.517 billion euros Data source: Siemens presentations. Siemens Healthineers Siemens' stake in the publicly listed medical technology company, Siemens Healthineers (OTC: SMMNY), provides it with valuable earnings and free cash flow even during economic downturns. | The stock offers investors a compelling mix of exposure to growth industries (automation, industrial software, smart infrastructure, electrification) balanced by earnings from its majority holding in a world-class healthcare company, Siemens Healthineers. Meanwhile, Varian Medical Systems (a business recently acquired by Siemens Healthineers for $16.4 billion) competes with Elekta. Data by YCharts Siemens absolute valuation Appreciating that these comparisons aren't exact, and that Siemens probably has a conglomerate discount baked into its valuation, the stock still looks undervalued. |
32005.0 | 2021-08-27 00:00:00 UTC | FOCUS-U.S. COVID-19 tests again in short supply as infections soar, schools reopen | ABT | https://www.nasdaq.com/articles/focus-u.s.-covid-19-tests-again-in-short-supply-as-infections-soar-schools-reopen-2021-08 | nan | nan | By Carl O'Donnell
Aug 27 (Reuters) - U.S. companies are scrambling to boost production of coronavirus tests increasingly in short supply as COVID-19 cases soar and schools and employers revive surveillance programs that will require tens of millions of tests, according to industry executives and state health officials.
Test manufacturers including Abbott Laboratories ABT.N, Becton Dickinson and Co BDX.N, and Quidel Corp QDEL.O in recent months scaled back production of rapid COVID-19 tests, which can produce results on-site in minutes, as well as test kits that are sent to laboratories for analysis. The move followed a nearly 90% decline in testing and a similarly large drop in COVID-19 cases in the United States.
Abbott in June shut down two production lines in Maine and closed a manufacturing plant in Illinois. Around the same time, Quidel shifted production away from COVID-19 tests. Becton Dickinson had also scaled back production in recent months.
Now, with the Delta variant pushing U.S. COVID-19 cases well above 100,000 per day, test makers are working to quickly reverse course, industry executives and state officials told Reuters.
"We’re hiring people and turning on parts of our manufacturing network that were idled or slowed when guidance changed and demand plunged," Abbott said in a statement.
However, testmakers including Abbott and Becton Dickinson cautioned that there may be supply constraints in the near term.
“With the rise of cases from the Delta variant... there is currently some tightness in supply as manufacturers ramp back up," said Troy Kirkpatrick, a spokesperson for Becton Dickinson, adding that the company expects inventory levels "will normalize over the next couple of weeks."
Demand for COVID-19 tests has been largely driven by healthcare providers, employers and schools, he added.
Supplies could tighten even further as more state governments and private employers demand staff either get vaccinated or agree to regular testing. Pfizer Inc PFE.N and Goldman Sachs GS.N are among major employers requiring staff to be regularly tested.
Testing in schools is a top priority for federal and state officials as a minority of the roughly 70 million school-age U.S. children have been vaccinated. Those under 12 are not yet eligible for the shots.
Demand for diagnostic tests has surged nearly six-fold in the past two months, from around 250,000 per day in early July to nearly 1.5 million in mid-August, according to U.S. federal data. The data only tracks diagnostic tests that are run in laboratories.
That demand is only expected to grow.
More than half a dozen states, including California, Delaware, and South Carolina, have set up comprehensive surveillance testing programs for their public K-12 schools, while Pennsylvania and Arkansas are among at least a dozen other states developing similar plans. Even in states without such plans, many local school districts are rolling out surveillance programs.
Ysleta Independent School District in El Paso, Texas, expects to need around 40,000 Abbott rapid tests per month to monitor students for COVID-19, said Lynly Leeper, the district’s chief financial and operational officer.
Her school district had been planning to shut down its testing program until the Delta variant sent cases soaring in the state in recent weeks.
SUPPLY CHAIN CONCERNS
Delaware, which was among the first to roll out a comprehensive surveillance testing program in July, has already begun to see some test shortages, said Dr. Rick Pescatore, an associate medical director in the state’s public health agency.
The surge in test demand has sounded alarms among federal officials, who are “concerned that people are going to start shutting down our supply chain,” limiting the flexibility to respond to a spike in cases, said Quidel Chief Executive Douglas Bryant told Reuters.
The recent increase in surveillance testing "really stresses the supply chain,” said Dana Lerman, medical director at The COVID Consultants, a physicians group that provides COVID-19 testing and advisory services. Her organization has seen demand for rapid tests increase 200% since June.
Even if testmakers are able to keep up with rising demand from U.S. schools, states will still face challenges covering the expense of widespread testing, which experts say will cost the average school district at least $1 million each year.
Ysleta in El Paso said it expects it will cost around $3 million to safely test its students this school year, and is relying on Texas to provide it with funds.
The Biden administration granted $10 billion to help states developing COVID-19 testing programs. Experts said the sum is far short of what states will need to cover testing for the full school year.
“More federal funding will be necessary," said Dr. Antonia Sepulveda, president of the Association of Molecular Pathology that represents diagnostic testing laboratories, "for institutions to continue comprehensive testing programs."
(Reporting by Carl O'Donnell; Editing by Michele Gershberg, Caroline Humer and Bill Berkrot)
((Carl.ODonnell@thomsonreuters.com; 646-223-6629;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Test manufacturers including Abbott Laboratories ABT.N, Becton Dickinson and Co BDX.N, and Quidel Corp QDEL.O in recent months scaled back production of rapid COVID-19 tests, which can produce results on-site in minutes, as well as test kits that are sent to laboratories for analysis. Now, with the Delta variant pushing U.S. COVID-19 cases well above 100,000 per day, test makers are working to quickly reverse course, industry executives and state officials told Reuters. “With the rise of cases from the Delta variant... there is currently some tightness in supply as manufacturers ramp back up," said Troy Kirkpatrick, a spokesperson for Becton Dickinson, adding that the company expects inventory levels "will normalize over the next couple of weeks." | Test manufacturers including Abbott Laboratories ABT.N, Becton Dickinson and Co BDX.N, and Quidel Corp QDEL.O in recent months scaled back production of rapid COVID-19 tests, which can produce results on-site in minutes, as well as test kits that are sent to laboratories for analysis. By Carl O'Donnell Aug 27 (Reuters) - U.S. companies are scrambling to boost production of coronavirus tests increasingly in short supply as COVID-19 cases soar and schools and employers revive surveillance programs that will require tens of millions of tests, according to industry executives and state health officials. Ysleta Independent School District in El Paso, Texas, expects to need around 40,000 Abbott rapid tests per month to monitor students for COVID-19, said Lynly Leeper, the district’s chief financial and operational officer. | Test manufacturers including Abbott Laboratories ABT.N, Becton Dickinson and Co BDX.N, and Quidel Corp QDEL.O in recent months scaled back production of rapid COVID-19 tests, which can produce results on-site in minutes, as well as test kits that are sent to laboratories for analysis. By Carl O'Donnell Aug 27 (Reuters) - U.S. companies are scrambling to boost production of coronavirus tests increasingly in short supply as COVID-19 cases soar and schools and employers revive surveillance programs that will require tens of millions of tests, according to industry executives and state health officials. Delaware, which was among the first to roll out a comprehensive surveillance testing program in July, has already begun to see some test shortages, said Dr. Rick Pescatore, an associate medical director in the state’s public health agency. | Test manufacturers including Abbott Laboratories ABT.N, Becton Dickinson and Co BDX.N, and Quidel Corp QDEL.O in recent months scaled back production of rapid COVID-19 tests, which can produce results on-site in minutes, as well as test kits that are sent to laboratories for analysis. By Carl O'Donnell Aug 27 (Reuters) - U.S. companies are scrambling to boost production of coronavirus tests increasingly in short supply as COVID-19 cases soar and schools and employers revive surveillance programs that will require tens of millions of tests, according to industry executives and state health officials. Ysleta in El Paso said it expects it will cost around $3 million to safely test its students this school year, and is relying on Texas to provide it with funds. |
32006.0 | 2021-08-27 00:00:00 UTC | Is There More Room For Growth In Medtronic Stock? | ABT | https://www.nasdaq.com/articles/is-there-more-room-for-growth-in-medtronic-stock-2021-08-27 | nan | nan | [Updated: Aug 25, 2021] Medtronic Stock Update
Medtronic (NYSE:MDT) recently reported its fiscal Q1 2022 results, which were better than our estimates. The company reported revenues of $8.0 billion, slightly above ours and the consensus estimate of $7.9 billion. Similarly, the EPS of $1.41 was comfortably above the $1.35 per Trefis and $1.32 consensus estimates. The strong performance was led by an uptick in demand for medical devices, following a rise in volume of elective surgeries. This can be attributed to higher vaccination rates in the U.S. However, the spread of the delta variant did impact the overall procedure volume, and it may also impact the company’s Q2 performance. Looking forward, the company revised its earnings guidance slightly upward to $5.70 per share, at mid-point of its range, compared to $5.65 earlier. As such, after a good Q1, MDT stock rose over 3% following the earnings release on Aug 24.
We have updated our model following the Q1 release. We now forecast sales to be $33.2 billion for the full-fiscal 2022, up 10% y-o-y, compared to our previous estimate of around $33.0 billion. Looking at the bottom line, we now estimate adjusted EPS to be $5.75, at the higher end of the company’s provided guidance, and slightly above our earlier estimate of $5.71. Given that the changes to our revenues and earnings forecast are not material, our revised Medtronic Valuation is at $149 per share, slightly above our prior estimate of $148. Our valuation for Medtronic is based on $5.75 expected EPS and 26x P/E multiple for fiscal 2022. This reflects a 12% premium to the current market price of $133, implying that there is still some room for growth in MDT stock, in our view.
[Updated: Aug 20, 2021] Medtronic Q1 Fiscal 2021 Earnings Preview
Medtronic stock (NYSE: MDT) is scheduled to report its fiscal first-quarter results on Tuesday, Aug 24. 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. Furthermore, our forecast indicates that Medtronic’s valuation is around $148 per share, which is 15% above the current market price of around $129, implying that MDT stock has more room for growth from its current levels. Our interactive dashboard analysis on Medtronic Pre-Earnings: What To Expect in Q1? has more details.
(1) Revenues expected to be in-line with the consensus estimate
Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 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 Q4 fiscal 2021, the company reported a solid 36% y-o-y growth in revenue, led by a strong 64% surge in neuroscience and a 54% jump in cardiovascular segment sales. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be slightly above the consensus estimates
Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. Medtronic’s Non-GAAP net income of $2.0 billion in Q4 fiscal 2021, reflected a sharp 2.6x growth from its $777 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 29% y-o-y growth in EPS to $5.71, compared to $4.43 in fiscal 2021.
(3) Stock price estimate 15% above the current market price
Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. At its current levels of $129, MDT stock is trading at 23x its forward full-year earnings, and this compares with levels of nearly 30x seen as recently as late 2020.
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 more, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand with a rebound in volume of procedures likely helped the company navigate well during the quarter. In Q4 fiscal 2021, the company reported a solid 36% y-o-y growth in revenue, led by a strong 64% surge in neuroscience and a 54% jump in cardiovascular segment sales. Medtronic’s Non-GAAP net income of $2.0 billion in Q4 fiscal 2021, reflected a sharp 2.6x growth from its $777 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. | [Updated: Aug 25, 2021] Medtronic Stock Update Medtronic (NYSE:MDT) recently reported its fiscal Q1 2022 results, which were better than our estimates. [Updated: Aug 20, 2021] Medtronic Q1 Fiscal 2021 Earnings Preview Medtronic stock (NYSE: MDT) is scheduled to report its fiscal first-quarter results on Tuesday, Aug 24. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. | (1) Revenues expected to be in-line with the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 billion, in-line with the consensus estimates. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. (3) Stock price estimate 15% above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. | The company reported revenues of $8.0 billion, slightly above ours and the consensus estimate of $7.9 billion. (1) Revenues expected to be in-line with the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 billion, in-line with the consensus estimates. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. |
32007.0 | 2021-08-25 00:00:00 UTC | Senseonics Can Move Higher, but Competitive Concerns Abound | ABT | https://www.nasdaq.com/articles/senseonics-can-move-higher-but-competitive-concerns-abound-2021-08-25 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Generally speaking, I’m not the biggest fan of discussing publicly traded companies with a strong social media following. In many cases, you’re just dealing with the hype of the moment. However, Senseonics (NYSEAMERICAN:SENS) stock offers a sound basis for justification if you’re interested in gambling.
To provide some quick background, Senseonics gained fame for Eversense, its long-term continuous glucose monitor (CGM) product, offering diabetes patients greater flexibility in their day-to-day lives and improving overall outcomes.
Better yet, the company has positioned itself as one of the top innovators in the field, which theoretically offers much upside for SENS stock.
Primarily, demand for CGM solutions will likely grow significantly from here on out, particularly as society gradually moves past the novel coronavirus pandemic.
7 Mega-Cap Stocks to Buy That Have Stable Dividends
According to Grand View Research, the market value of the CGM device industry this year is approximately $5.28 billion. But by the end of 2028, it could almost double to $10.36 billion, representing a compound annual growth rate of 10.1% during the stated years.
Further, Senseonics’ CGM devices offer key advantages over the competition. As the company’s website states, one of the advantages of going with Eversense is its on-body vibration alerts.
According to Diatribe.org, Eversense “is the first CGM to provide on-body vibration alerts! In the event of highs and lows, the transmitter will vibrate to notify the user, even if the phone is out of range – a particularly useful feature for individuals who are visually impaired or have trouble hearing.”
Inherently, that feature gives Senseonics a leg up on the competition. As well, if you were a patient with compromised capabilities, having on-body vibration alerts is a major plus.
While this would seemingly tip the needle in favor of SENS stock, you should also consider what could go wrong.
After all, CGM is a very competitive market.
SENS Stock Is in for a Tough Battle
Although Senseonics’ product offerings are intriguing — especially because of their long-term use profile — the company isn’t the only CGM device manufacturer in town. With DexCom (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT) in the mix, Senseonics will be plying its trade in contested territory.
That’s not to say that investors should give up on SENS stock, but when you’re competing against established blue chips, you should be prepared for potential volatility.
Now on paper, Senseonics has more of a fighting chance because of its innovations such as the aforementioned on-body alerts. But it got me thinking, just how in-demand would this feature be?
To get a better idea, I looked up the prevalence of diabetes sufferers with visual problems (the key market for those who would want on-body alerts).
According to a research paper from BMJ Journals, an analysis on diabetes patients with visual impairments revealed the following statistics:
Of the patients assessed at the time of the diabetes diagnosis the prevalence of moderate to severe visual impairment and blindness was 5.4% (95% CI 4.1 to 6.7) and 0.9% (95% CI 0.4 to 1.4), respectively. Among the patients alive and with a valid determination of visual acuity 6 years after the diagnosis, the prevalence of moderate to severe visual impairment and blindness was 6.7% (95% CI 5.0 to 8.4) and 2.4% (95% CI 1.3 to 3.4), respectively.
While these are significant numbers, they pale in comparison to the number of those who don’t monitor their blood sugar levels.
“An American Diabetes Association survey found that 21 percent of adults with Type 1 diabetes never checked their blood glucose. Of those with insulin-treated Type 2 diabetes, 47 percent never monitored. And among those with Type 2 diabetes who were not using insulin, 76 percent never checked.”
Therefore, while the vibration alerts are innovative, they might not be the gamechanger for SENS stock that some proponents are hoping for.
Fingersticks Might Hurt the Cause
According to Diatribe.org, “Eversense is very accurate, but it does requires two fingerstick calibrations per day, unlike the no-calibration Dexcom G6 and Abbott FreeStyle Libre.” That could be an underappreciated problem for SENS stock.
As Diabetes Self-Management points out, many folks don’t like the discomfort associated with finger-sticking. Due to the sizable number of patients not checking their glucose levels, this could be a much bigger issue than the visual impairment issue that would support demand for on-body alerts.
Since Dexcom and Abbott CGM devices require no calibration, patients who are tired of constant fingersticks might opt for these two options based on their individual cost-benefit analysis.
Again, that’s not to say that SENS stock is completely irrelevant. However, if you’re interested in buying shares, you may want to do some investigating yourself before making a decision.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post Senseonics Can Move Higher, but Competitive Concerns Abound 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. | With DexCom (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT) in the mix, Senseonics will be plying its trade in contested territory. To provide some quick background, Senseonics gained fame for Eversense, its long-term continuous glucose monitor (CGM) product, offering diabetes patients greater flexibility in their day-to-day lives and improving overall outcomes. SENS Stock Is in for a Tough Battle Although Senseonics’ product offerings are intriguing — especially because of their long-term use profile — the company isn’t the only CGM device manufacturer in town. | With DexCom (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT) in the mix, Senseonics will be plying its trade in contested territory. To provide some quick background, Senseonics gained fame for Eversense, its long-term continuous glucose monitor (CGM) product, offering diabetes patients greater flexibility in their day-to-day lives and improving overall outcomes. According to a research paper from BMJ Journals, an analysis on diabetes patients with visual impairments revealed the following statistics: Of the patients assessed at the time of the diabetes diagnosis the prevalence of moderate to severe visual impairment and blindness was 5.4% (95% CI 4.1 to 6.7) and 0.9% (95% CI 0.4 to 1.4), respectively. | With DexCom (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT) in the mix, Senseonics will be plying its trade in contested territory. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Generally speaking, I’m not the biggest fan of discussing publicly traded companies with a strong social media following. According to a research paper from BMJ Journals, an analysis on diabetes patients with visual impairments revealed the following statistics: Of the patients assessed at the time of the diabetes diagnosis the prevalence of moderate to severe visual impairment and blindness was 5.4% (95% CI 4.1 to 6.7) and 0.9% (95% CI 0.4 to 1.4), respectively. | With DexCom (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT) in the mix, Senseonics will be plying its trade in contested territory. 7 Mega-Cap Stocks to Buy That Have Stable Dividends According to Grand View Research, the market value of the CGM device industry this year is approximately $5.28 billion. Further, Senseonics’ CGM devices offer key advantages over the competition. |
32008.0 | 2021-08-24 00:00:00 UTC | Will Illumina Stock Rebound After A 6% Fall Last Week? | ABT | https://www.nasdaq.com/articles/will-illumina-stock-rebound-after-a-6-fall-last-week-2021-08-25 | nan | nan | The stock price of Illumina (NASDAQ:ILMN), a gene sequencing company, reached an all-time high of $524 earlier this month before a recent sell-off drove the stock price down 6% to its current level of around $487. ILMN stock has fallen 6% over the last five days, after the company announced the completion of its acquisition of Grail – a cancer testing company – for $8 billion. The acquisition was first announced in September 2020. But the recent announcement of completion of the acquisition took many by surprise given that the European Commission is still reviewing the transaction over monopoly concerns. Although Illumina’s management has stated that the EU doesn’t have any jurisdiction to review this merger since Grail does not operate in the EU, the acquisition announcement didn’t sit well with the investors. But will ILMN stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?
According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ILMN stock average around 3% in the next one-month (twenty-one trading days) period after experiencing a 6% drop over the previous week (five trading days).
However, despite the historical trends suggesting otherwise, we believe that ILMN stock is best avoided in the near term. It has already rallied over 30% so far this year, and depending on the outcome of the EU review, it may not end well for Illumina. EU can impose a hefty fine for not securing the approval before the acquisition. Furthermore, the U.S. Federal Trade Commission has also raised concerns over this deal, and it is also reviewing the transaction. And to top it off, irrespective of the outcomes of the reviews, Illumina will see a major dilution in its equity with this acquisition.
But how would the returns fare if you are interested in holding Illumina stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Illumina stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF ILMN stock moved by -5% over five trading days, THEN over the next twenty-one trading days ILMN stock moves an average of 3%, with a 60.5% probability of a positive return over this period.
Some Fun Scenarios, FAQs & Making Sense of Illumina Stock Movements:
Question 1: Is the average return for Illumina stock higher after a drop?
Answer: Consider two situations,
Case 1: Illumina stock drops by -5% or more in a week
Case 2: Illumina stock rises by 5% or more in a week
Is the average return for Illumina stock higher over the subsequent month after Case 1 or Case 2?
ILMN stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 4.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Illumina stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Illumina stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For ILMN stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Illumina after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although ILMN stock appears to be an exception to this general observation.
It’s pretty powerful to test the trend for yourself for Illumina stock by changing the inputs in the charts above.
While ILMN stock may be best avoided for now, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ILMN stock average around 3% in the next one-month (twenty-one trading days) period after experiencing a 6% drop over the previous week (five trading days). Try the Trefis machine learning engine above to see for yourself how Illumina stock is likely to behave after any specific gain or loss over a period. Answer: If you buy and hold Illumina stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ILMN stock average around 3% in the next one-month (twenty-one trading days) period after experiencing a 6% drop over the previous week (five trading days). You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Illumina stock chances of a rise after a fall. MACHINE LEARNING ENGINE – try it yourself: IF ILMN stock moved by -5% over five trading days, THEN over the next twenty-one trading days ILMN stock moves an average of 3%, with a 60.5% probability of a positive return over this period. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ILMN stock average around 3% in the next one-month (twenty-one trading days) period after experiencing a 6% drop over the previous week (five trading days). Answer: Consider two situations, Case 1: Illumina stock drops by -5% or more in a week Case 2: Illumina stock rises by 5% or more in a week Is the average return for Illumina stock higher over the subsequent month after Case 1 or Case 2? ILMN stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 4.6% for Case 2. | But the recent announcement of completion of the acquisition took many by surprise given that the European Commission is still reviewing the transaction over monopoly concerns. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for ILMN stock average around 3% in the next one-month (twenty-one trading days) period after experiencing a 6% drop over the previous week (five trading days). You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Illumina stock chances of a rise after a fall. |
32009.0 | 2021-08-24 00:00:00 UTC | SPLG, ABT, TMO, COST: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/splg-abt-tmo-cost%3A-etf-inflow-alert-2021-08-24 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $262.9 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 225,250,000 to 230,250,000). Among the largest underlying components of SPLG, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.1%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $52.715 as the 52 week high point — that compares with a last trade of $52.72. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPLG, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.1%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $52.715 as the 52 week high point — that compares with a last trade of $52.72. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPLG, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.1%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $52.715 as the 52 week high point — that compares with a last trade of $52.72. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SPLG, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.1%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $262.9 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 225,250,000 to 230,250,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $52.715 as the 52 week high point — that compares with a last trade of $52.72. | Among the largest underlying components of SPLG, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 0.1%, and Costco Wholesale Corp (Symbol: COST) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— ETF (Symbol: SPLG) where we have detected an approximate $262.9 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 225,250,000 to 230,250,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $37.575 per share, with $52.715 as the 52 week high point — that compares with a last trade of $52.72. |
32010.0 | 2021-08-24 00:00:00 UTC | What To Expect From Medtronic's Q1? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-medtronics-q1-2021-08-24 | nan | nan | Medtronic stock (NYSE: MDT) is scheduled to report its fiscal first-quarter results on Tuesday, Aug 24. 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. Furthermore, our forecast indicates that Medtronic’s valuation is around $148 per share, which is 15% above the current market price of around $129, implying that MDT stock has more room for growth from its current levels. Our interactive dashboard analysis on Medtronic Pre-Earnings: What To Expect in Q1? has more details.
(1) Revenues expected to be in-line with the consensus estimate
Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 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 Q4 fiscal 2021, the company reported a solid 36% y-o-y growth in revenue, led by a strong 64% surge in neuroscience and a 54% jump in cardiovascular segment sales. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be slightly above the consensus estimates
Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. Medtronic’s Non-GAAP net income of $2.0 billion in Q4 fiscal 2021, reflected a sharp 2.6x growth from its $777 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 29% y-o-y growth in EPS to $5.71, compared to $4.43 in fiscal 2021.
(3) Stock price estimate 15% above the current market price
Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. At its current levels of $129, MDT stock is trading at 23x its forward full-year earnings, and this compares with levels of nearly 30x seen as recently as late 2020.
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 more, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand with a rebound in volume of procedures likely helped the company navigate well during the quarter. In Q4 fiscal 2021, the company reported a solid 36% y-o-y growth in revenue, led by a strong 64% surge in neuroscience and a 54% jump in cardiovascular segment sales. Medtronic’s Non-GAAP net income of $2.0 billion in Q4 fiscal 2021, reflected a sharp 2.6x growth from its $777 million profit in the prior year quarter, primarily due to growth in revenues as well as net margins expanding over 1000 bps, with operating expenses growing at a slower pace compared to the revenues. | (1) Revenues expected to be in-line with the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 billion, in-line with the consensus estimates. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. (3) Stock price estimate 15% above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. | (1) Revenues expected to be in-line with the consensus estimate Trefis estimates Medtronic’s Q1 fiscal 2022 total revenues to be around $7.9 billion, in-line with the consensus estimates. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. (3) Stock price estimate 15% above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. | Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup. 2) EPS likely to be slightly above the consensus estimates Medtronic’s Q1 fiscal 2022 earnings per share (EPS) is expected to be $1.35 per Trefis analysis, slightly above the consensus estimate of $1.32. (3) Stock price estimate 15% above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $5.71 and P/E multiple of 26x in fiscal 2022, this translates into a price of $148, which is 15% above the current market price of around $129. |
32011.0 | 2021-08-21 00:00:00 UTC | 3 Boring Healthcare Stocks Everyone Should Own | ABT | https://www.nasdaq.com/articles/3-boring-healthcare-stocks-everyone-should-own-2021-08-21 | nan | nan | Johnson & Johnson (NYSE: JNJ), Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are never going to be "under-the-radar" stocks, because they're too well known. No company with a market cap of $200 billion or more is going to come out of nowhere to take investors by surprise. Chances are that your uncle, the one who wears socks with his sandals, knows all about these three pharmaceutical giants and might already own stock in them.
In other words, these stocks may be boring. But they're boring for all the right reasons: consistent but sometimes surprising growth, solid and safe dividends, and little volatility.
Image source: Getty Images.
Johnson & Johnson: Still evolving at its advanced age
Johnson & Johnson hit a 52-week high on Tuesday ... but that was only 25.5% above its 52-week low. At a market cap of $466 billion, It's just too big a stock to have the kind of price volatility you will see with a smaller company.
It was founded in 1886, when "Tesla" meant the Tesla Electric Light and Manufacturing Company, not an electric vehicle. The company is a Dividend King that has raised its quarterly payout for 58 consecutive years. The quarterly dividend of $1.06 per share works out to a yield of 2.28%, well above the S&P 500 average of 1.32%. And it is well covered with a 47.72% cash dividend payout ratio.
The company has more than 136,000 employees and offers a range of diverse products, including baby wipes, bandages, medical devices, and drugs. It has 53 late-stage trials in its pipeline, more than most pharmaceutical companies have across every stage of development. Its cash flow is not dependent on a blockbuster drug or any one product, which allowed the company to spend $12.16 billion last year on research and development.
That R&D spending has paid off with surprising growth for such a mature company. In the second quarter, it reported sales of $23.3 billion, up 23% year over year, and earnings per share increased 72.8% to $2.35. The company's research and development also paid off with one of the COVID-19 vaccines, one that seems to be more effective against the delta variant. The company has said it will provide the vaccine on a not-for-profit basis as long as the pandemic rages, but it does stand to profit from the need for it that will likely still exist after the pandemic ebbs.
Pfizer: strong growth, thanks to a vaccine
Pfizer's stock is up 36.54% this year, much of that thanks to the company's successful COVID-19 vaccine. Through six months, revenue of $33.5 billion is up 68% year over year -- and that's after the spinoff last November of its Upjohn generic therapies to Viatris.
Pfizer, which was founded in 1849, 37 years before Johnson & Johnson, didn't just luck into the vaccine opportunity. It is a huge company with roughly 78,500 employees that was prepared for the moment. It spent $9.4 billion in research and development last year and has increased R&D spending by 52.5% over the past five years. The company has a market cap of $275 billion.
Its quarterly dividend of $0.39 represents a yield of 3.09%, and the company has raised it for 11 consecutive years. Pfizer had said earlier this year it would likely cut its dividend to make up for the loss of the Upjohn revenue once Viatris started offering a dividend of its own. Instead of doing that, however, its board decided to keep the dividend at its current rate (the cash dividend payout ratio is only 41.7%). That means that investors who obtained Viatris stock after the spinoff got a dividend raise, because Viatris' initial dividend is $0.11 a share.
The company focuses strictly on pharmaceuticals, so it is not as diverse as Johnson & Johnson, but it also has a huge pipeline with 98 drug candidates as of February.
ABBV research and development expense (annual) data by YCharts.
AbbVie: rolling in revenue after the Allergan deal
AbbVie's shares are up just 11.74% this year. Though the pharmaceutical company continues to knock out great quarters, the looming patent cliff for top-selling rheumatoid arthritis drug Humira concerns many investors.
In the meantime, this $210 billion company has the best dividend of these three stocks at $1.35 a share each quarter, offering a yield of 4.35%. AbbVie was part of Abbott Laboratories until being spun off in 2013, and its association with the 133-year-old company makes it a Dividend Aristocrat. Since the spinoff, Abbott has increased its dividend 225%, including a 10% raise this year, but the cash dividend payout ratio is only 45.13%.
Biosimilar competition has already begun to eat into Humira's revenue overseas, but there are plenty of reasons for AbbVie investors to relax, even though the drug will face biosimilars in the United States in two years.
In the second quarter, the company reported revenue of $13.9 billion, an increase of 33.9%. While Humira was still responsible for 30.4% of that revenue, the company has several up-and-coming drugs that already are bringing in $400 million or more per quarter. Blood cancer therapy Imbruvica posted revenue of $1.381 billion, up 7.2% year over year. Venclexta, another blood cancer drug, brought in $435 million, up 43.2% from the prior-year period. Plaque psoriasis therapy Skyrizi brought in $674 million, up more than 100% year over year.
The company's $63 billion purchase of Botox maker Allergan in 2020 is already paying off. Botox Therapeutic brought in $603 million in the quarter, and Botox Cosmetic delivered $584 million in revenue. Antipsychotic medication Vraylar brought in $432 million.
My only concern with AbbVie is that it spends less on R&D than the other two companies, both in total and as a percentage of revenue. It spent $6.5 billion last year on R&D, about 13.36% what it made in revenue.
OK, so you don't really have to choose
I like all three pharmaceutical stocks, but if I had to choose one, I'd pick AbbVie because it has the best dividend and has grown revenue 78.66% over the past five years. I think the concerns about Humira are overblown, but that has helped keep the stock from being overvalued.
Pfizer is a solid choice as well; it also has a strong dividend, and I believe its willingness to spend on R&D will help set it up for the future.
Johnson & Johnson has the least attractive dividend, but the company's diverse revenue streams make it the safest choice of the three.
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Jim Halley owns shares of AbbVie, Johnson & Johnson, Pfizer and Viatris. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company has more than 136,000 employees and offers a range of diverse products, including baby wipes, bandages, medical devices, and drugs. Its cash flow is not dependent on a blockbuster drug or any one product, which allowed the company to spend $12.16 billion last year on research and development. Though the pharmaceutical company continues to knock out great quarters, the looming patent cliff for top-selling rheumatoid arthritis drug Humira concerns many investors. | Johnson & Johnson (NYSE: JNJ), Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are never going to be "under-the-radar" stocks, because they're too well known. Since the spinoff, Abbott has increased its dividend 225%, including a 10% raise this year, but the cash dividend payout ratio is only 45.13%. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie, Johnson & Johnson, Pfizer and Viatris. | Pfizer: strong growth, thanks to a vaccine Pfizer's stock is up 36.54% this year, much of that thanks to the company's successful COVID-19 vaccine. In the meantime, this $210 billion company has the best dividend of these three stocks at $1.35 a share each quarter, offering a yield of 4.35%. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jim Halley owns shares of AbbVie, Johnson & Johnson, Pfizer and Viatris. | Pfizer: strong growth, thanks to a vaccine Pfizer's stock is up 36.54% this year, much of that thanks to the company's successful COVID-19 vaccine. It spent $9.4 billion in research and development last year and has increased R&D spending by 52.5% over the past five years. Since the spinoff, Abbott has increased its dividend 225%, including a 10% raise this year, but the cash dividend payout ratio is only 45.13%. |
32012.0 | 2021-08-18 00:00:00 UTC | Abbott Laboratories' (NYSE:ABT) investors will be pleased with their splendid 214% return over the last five years | ABT | https://www.nasdaq.com/articles/abbott-laboratories-nyse%3Aabt-investors-will-be-pleased-with-their-splendid-214-return-over | nan | nan | When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Abbott Laboratories (NYSE:ABT) shareholders would be well aware of this, since the stock is up 186% in five years. In the last week the share price is up 2.4%.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Over half a decade, Abbott Laboratories managed to grow its earnings per share at 22% a year. This EPS growth is remarkably close to the 23% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
NYSE:ABT Earnings Per Share Growth August 18th 2021
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Abbott Laboratories' earnings, revenue and cash flow.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Abbott Laboratories' TSR for the last 5 years was 214%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Abbott Laboratories shareholders are up 26% for the year (even including dividends). Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 26% over half a decade This suggests the company might be improving over time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Abbott Laboratories you should know about.
Abbott Laboratories is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Long term Abbott Laboratories (NYSE:ABT) shareholders would be well aware of this, since the stock is up 186% in five years. NYSE:ABT Earnings Per Share Growth August 18th 2021 We like that insiders have been buying shares in the last twelve months. On the bright side, that's still a gain, and it's actually better than the average return of 26% over half a decade This suggests the company might be improving over time. | Long term Abbott Laboratories (NYSE:ABT) shareholders would be well aware of this, since the stock is up 186% in five years. NYSE:ABT Earnings Per Share Growth August 18th 2021 We like that insiders have been buying shares in the last twelve months. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. | Long term Abbott Laboratories (NYSE:ABT) shareholders would be well aware of this, since the stock is up 186% in five years. NYSE:ABT Earnings Per Share Growth August 18th 2021 We like that insiders have been buying shares in the last twelve months. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). | Long term Abbott Laboratories (NYSE:ABT) shareholders would be well aware of this, since the stock is up 186% in five years. NYSE:ABT Earnings Per Share Growth August 18th 2021 We like that insiders have been buying shares in the last twelve months. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). |
32013.0 | 2021-08-17 00:00:00 UTC | Could AbbVie Stock Help You Retire a Millionaire? | ABT | https://www.nasdaq.com/articles/could-abbvie-stock-help-you-retire-a-millionaire-2021-08-17 | nan | nan | When it comes to planning for your financial future, it pays to pack your portfolio with stocks that can keep growing even if the market is falling. Though there's no shortcut to riches, with prudent investments, you can definitely get a lot closer than you might otherwise, provided that you have enough time to let your winners compound in value.
In this vein, drugmaker AbbVie (NYSE: ABBV) might be a strong contender for the part of your portfolio that's devoted to stable, stalwart stocks. Its roster of medicines is quite profitable, and it has a handful of other projects to pave the way for revenue growth in the future. Given the company's proven ability to develop drugs and get them approved, it has a lot to offer to shareholders -- but is it enough to make your net worth into millions of dollars over time?
Image source: Getty Images.
Owning this stock will probably make you richer
There are a few ways that buying and holding AbbVie's stock will bolster your portfolio's value in the long term.
First, it pays a quarterly dividend that currently yields about 4.54%. Provided that you reinvest the dividends, that means your holdings will grow each year even if the stock itself doesn't perform well. Between now and your retirement, the compounding of dividend reinvestment could make for a substantial amount of growth.
What's more, the company has raised its quarterly dividend payment each year for nearly 50 years in a row (counting its years spent as part of Abbott Laboratories, which it was spun off from in 2013). In 2019, the payout was raised by 10.3%, and in 2020 it was raised by 10.2%. Thus, investors who purchase the stock today can expect that management is devoted to making sure the dividend will continue to rise for the foreseeable future.
ABBV Dividend data by YCharts
Then there are the returns you could get from direct appreciation of AbbVie's stock price. While there are a lot of factors that can make a stock go up, in AbbVie's case you can look forward to catalysts like drugs advancing through the clinical trials process and getting regulatory approval for sale. Over the next few years, some of the most important catalysts will come from expanding the list of approved conditions for its drugs such as Rinvoq, which is currently approved to treat an inflammatory disease called ankylosing spondylitis.
The big test will be to see whether the company can keep its revenue growing even as sales of its moneymaker rheumatoid arthritis treatment Humira -- the world's top-selling drug -- start to ebb as biosimilars start to eat into its market share. Humira's patent protection in the E.U. lapsed in 2018, and its protections in the U.S. will end in 2023.
Biosimilars are already eroding Humira's market share in the E.U., but so far that has only caused revenue growth to start decelerating. As of the second quarter, revenue from Humira grew 7.1%, reaching $4.25 billion, so there's still a bit of time before the income will actually shrink.
It isn't about to make you millions on its own
As beneficial as buying AbbVie stock could be, don't expect it to make you rich.
As a mature pharmaceutical company with a market cap of more than $200 billion, it simply won't multiply your initial investment as rapidly as a smaller business that's growing quickly.
That doesn't mean it can't grow considerably over time, but there's no way for it to explode in value overnight in the way that young biotechs or software companies frequently do. Each of AbbVie's pipeline programs represents only a small slice of its potential future revenue, so each new milestone in clinical trials won't juice the stock very much.
And there's no guarantee that the stock will even beat the market's average. Over the past five years, the total return from shares of AbbVie lagged the market, though not by very much.
^SPX data by YCharts
Especially considering the headwinds it'll face as income from Humira starts to taper over the next few years, it might be awhile before the stock outperforms. In other words, AbbVie could help you retire as a millionaire, but its contribution to that goal might not be significantly beyond that of an index fund if you're relatively close to retiring.
Nonetheless, there's nothing stopping you from getting wealthier by including AbbVie as a relatively conservative part of your diversified portfolio. And if you have a couple of decades before you plan to retire, you'll get a lot more mileage out of the company's annual dividend increases, assuming they continue.
So, while AbbVie isn't exactly a lottery ticket, it could definitely play a stable role in your long-term wealth-building strategy.
10 stocks we like better than AbbVie
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Alex Carchidi owns shares of AbbVie and Abbott Laboratories. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While there are a lot of factors that can make a stock go up, in AbbVie's case you can look forward to catalysts like drugs advancing through the clinical trials process and getting regulatory approval for sale. As a mature pharmaceutical company with a market cap of more than $200 billion, it simply won't multiply your initial investment as rapidly as a smaller business that's growing quickly. Each of AbbVie's pipeline programs represents only a small slice of its potential future revenue, so each new milestone in clinical trials won't juice the stock very much. | It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Alex Carchidi owns shares of AbbVie and Abbott Laboratories. | Owning this stock will probably make you richer There are a few ways that buying and holding AbbVie's stock will bolster your portfolio's value in the long term. It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Alex Carchidi owns shares of AbbVie and Abbott Laboratories. | What's more, the company has raised its quarterly dividend payment each year for nearly 50 years in a row (counting its years spent as part of Abbott Laboratories, which it was spun off from in 2013). Biosimilars are already eroding Humira's market share in the E.U., but so far that has only caused revenue growth to start decelerating. It isn't about to make you millions on its own As beneficial as buying AbbVie stock could be, don't expect it to make you rich. |
32014.0 | 2021-08-16 00:00:00 UTC | FDA OKs Abbott's Amplatzer Amulet Device To Treat Atrial Fibrillation - Quick Facts | ABT | https://www.nasdaq.com/articles/fda-oks-abbotts-amplatzer-amulet-device-to-treat-atrial-fibrillation-quick-facts-2021-08 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) announced Monday that the U.S. Food and Drug Administration (FDA) approved the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke.
The device offers immediate closure of the left atrial appendage (LAA), an area where blood clots can form in people suffering from AFib, reducing their risk of stroke and immediately eliminating the need for blood-thinning medication.
The LAA is a small pouch connected to the upper left chamber of the heart. For people with AFib, the most common of the persistent arrhythmias or irregular heartbeats, the heart's ability to effectively pump blood can be disrupted, allowing blood to pool and collect in the LAA causing an increased risk for clotting.
If clots reach the blood stream, they can travel to the brain and cause a stroke. For patients with AFib who are unable to take blood-thinning medication long term, physicians may opt for occlusion (or closure) of the LAA through a minimally invasive procedure using devices like Abbott's Amulet to seal off the LAA entirely and reduce the risk of stroke.
Before this approval, the only minimally invasive option for LAA occlusion for U.S. physicians and their patients was a solution with a single component to seal the LAA that requires blood-thinning drugs to heal and additional patient monitoring to ensure closure.
In contrast, Abbott's Amulet uses dual-seal technology to completely and immediately seal the LAA and recipients do not need to use blood-thinning medication following the procedure.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that the U.S. Food and Drug Administration (FDA) approved the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke. For patients with AFib who are unable to take blood-thinning medication long term, physicians may opt for occlusion (or closure) of the LAA through a minimally invasive procedure using devices like Abbott's Amulet to seal off the LAA entirely and reduce the risk of stroke. In contrast, Abbott's Amulet uses dual-seal technology to completely and immediately seal the LAA and recipients do not need to use blood-thinning medication following the procedure. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that the U.S. Food and Drug Administration (FDA) approved the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke. The device offers immediate closure of the left atrial appendage (LAA), an area where blood clots can form in people suffering from AFib, reducing their risk of stroke and immediately eliminating the need for blood-thinning medication. For patients with AFib who are unable to take blood-thinning medication long term, physicians may opt for occlusion (or closure) of the LAA through a minimally invasive procedure using devices like Abbott's Amulet to seal off the LAA entirely and reduce the risk of stroke. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that the U.S. Food and Drug Administration (FDA) approved the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke. The device offers immediate closure of the left atrial appendage (LAA), an area where blood clots can form in people suffering from AFib, reducing their risk of stroke and immediately eliminating the need for blood-thinning medication. For patients with AFib who are unable to take blood-thinning medication long term, physicians may opt for occlusion (or closure) of the LAA through a minimally invasive procedure using devices like Abbott's Amulet to seal off the LAA entirely and reduce the risk of stroke. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that the U.S. Food and Drug Administration (FDA) approved the company's Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation (AFib) who are at risk of ischemic stroke. The device offers immediate closure of the left atrial appendage (LAA), an area where blood clots can form in people suffering from AFib, reducing their risk of stroke and immediately eliminating the need for blood-thinning medication. The LAA is a small pouch connected to the upper left chamber of the heart. |
32015.0 | 2021-08-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Martin Zweig - 8/15/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-martin-zweig-8-15-2021-2021-08-15 | 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.
INMODE LTD (INMD) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Martin Zweig is 92% 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: Inmode Ltd is an Israel-based company. It designs, develops, manufactures and commercializes energy-based, minimally-invasive surgical aesthetic and medical treatment solutions. The Company's proprietary technologies are used by physicians to remodel subdermal adipose, or fatty, tissue in a variety of procedures including fat reduction with simultaneous skin tightening, face and body contouring and ablative skin rejuvenation treatments. Its products target a wide array of procedures including simultaneous fat killing and skin tightening, permanent hair reduction, skin appearance and texture, among others. The Company's products may be used on a variety of body parts, including the face, neck, abdomen, upper arms, thighs and intimate feminine regions. It owns six product platforms: BodyTite, Optimas, Votiva, Contoura, Triton and EmbraceRF. All are market and sell traditionally to plastic and facial surgeons, aesthetic surgeons and dermatologists, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: 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: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of INMODE LTD
Full Guru Analysis for INMD>
Full Factor Report for INMD>
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 92% 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. produces, distributes and sells weight loss, weight management, and healthy living products, and other consumable health and nutritional products. The Company's product lines include weight loss, weight management, and healthy living meal replacements, snacks, hydration products, and vitamins. Its business units include Optavia, Medifast Direct, Franchise Medifast Weight Control Centers (MWCC) and Medifast Wholesale. Optavia is a personal coaching division of the Company that consists of Optavia Coaches, who provides coaching and support to clients utilizing the Optavia platform. Medifast Direct is its direct-to-consumer business unit that allows customers to order Medifast products directly through its Website or its in-house call center. The MWCC business unit sells product through franchise and reseller locations, which offers structured programs and a team of professionals to help customers achieve weight-loss and weight-management success at center locations.
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: 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>
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 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: 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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: 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: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ABBOTT LABORATORIES
Full Guru Analysis for ABT>
Full Factor Report for ABT>
AMEDISYS INC (AMED) is a mid-cap growth stock in the Healthcare Facilities 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: Amedisys, Inc. is a healthcare services company. The Company's segments are Home Health, Hospice, Personal Care and Other. The Company is a provider of home health, hospice and personal care services. The Company owns and operates approximately 524 centers in 39 states and the District of Columbia. The Company's Home Health segment provides compassionate healthcare to help its patients recover from surgery or illness, live with chronic diseases, and prevent avoidable hospital readmissions. The Hospice segment provides support for those who are dealing with a terminal illness, such as heart disease, pulmonary disease, Alzheimer's and Human Immunodeficiency Virus (HIV)/Acquired Immuno Deficiency Syndrome (AIDS). The Personal care segment provides patients with assistance with the essential activities of daily living.
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: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of AMEDISYS INC
Full Guru Analysis for AMED>
Full Factor Report for AMED>
MEDPACE HOLDINGS INC (MEDP) 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: Medpace Holdings, Inc. is a clinical contract research organization. The Company provides clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company's drug development services focus on full service Phase I-IV clinical development services and include development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support. The Company also provides bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company's operations are principally based in North America, Europe, and Asia.
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: FAIL
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of MEDPACE HOLDINGS INC
Full Guru Analysis for MEDP>
Full Factor Report for MEDP>
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 MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> 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> AMEDISYS INC (AMED) is a mid-cap growth 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. | Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> 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> AMEDISYS INC (AMED) is a mid-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of MEDPACE HOLDINGS INC Full Guru Analysis for MEDP> Full Factor Report for MEDP> 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. | Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> 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> AMEDISYS INC (AMED) is a mid-cap growth stock in the Healthcare Facilities industry. Company Description: Medifast, Inc. produces, distributes and sells weight loss, weight management, and healthy living products, and other consumable health and nutritional products. | Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> 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> AMEDISYS INC (AMED) is a mid-cap growth stock in the Healthcare Facilities industry. The following are the top rated Healthcare stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. |
32016.0 | 2021-08-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 8/15/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-8-15-2021-2021-08-15 | 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.
OWENS & MINOR, INC. (OMI) is a mid-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 81% 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: Owens & Minor, Inc. is a healthcare solutions company with integrated technologies, products and services. The Company operates through two segments: Global Solutions and Global Products. Global Solutions segment includes its United States distribution, outsourced logistics and value-added services business. Global Products manufactures and sources medical surgical products through its production and kitting operations. Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers. Its portfolio of medical and surgical supplies includes products purchased from manufacturers and its own proprietary products. Global Products segment provides medical supplies and solutions for the prevention of healthcare-associated infections across the acute and alternate site channels. Its manufacturing facilities are located in the United States, Thailand, Honduras, Mexico and Ireland.
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: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of OWENS & MINOR, INC.
Full Guru Analysis for OMI>
Full Factor Report for OMI>
SUPERNUS PHARMACEUTICALS INC (SUPN) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 79% 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: Supernus Pharmaceuticals, Inc. is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system diseases. The Company offers Oxtellar XR (extended-release oxcarbazepine) and Trokendi XR (extended-release topiramate), its two treatments for patients with epilepsy. In addition, it is developing multiple product candidates in psychiatry to address unmet medical needs and market opportunities for the treatment of impulsive aggression (IA) and for the treatment of attention deficit hyperactivity disorder (ADHD). It is developing SPN-810 (molindone hydrochloride) to treat IA in patients having ADHD. It is developing SPN-812 (viloxazine hydrochloride) as a candidate to treat patients having ADHD. The Company's neurology portfolio consists of Oxtellar XR and Trokendi XR, which are the first once-daily extended release oxcarbazepine and topiramate products, respectively, indicated for epilepsy in the United States market.
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: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
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ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories (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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
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DAVITA INC (DVA) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: 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
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THE 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: Ensign Group, Inc., through its operating subsidiaries, provides healthcare services. The Company's operating subsidiaries provide a spectrum of skilled nursing services, physical, occupational and speech therapies and other rehabilitative and healthcare services. The Company operates approximately 236 healthcare facilities, 24 of which also include assisted living operations across thirteen states. It operates the healthcare facilities across Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. Through its skilled nursing operations, the Company provides short stay patients and long stay patients with a range of medical, nursing, rehabilitative, pharmacy and routine services, including daily dietary, social and recreational services.
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 THE ENSIGN GROUP, INC.
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More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of SUPERNUS PHARMACEUTICALS INC Full Guru Analysis for SUPN> Full Factor Report for SUPN> 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 growth 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. | Detailed Analysis of SUPERNUS PHARMACEUTICALS INC Full Guru Analysis for SUPN> Full Factor Report for SUPN> 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 growth stock in the Healthcare Facilities industry. Detailed Analysis of THE ENSIGN GROUP, INC. Full Guru Analysis for ENSG> Full Factor Report for ENSG> 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. | Detailed Analysis of SUPERNUS PHARMACEUTICALS INC Full Guru Analysis for SUPN> Full Factor Report for SUPN> 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 growth stock in the Healthcare Facilities industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. | Detailed Analysis of SUPERNUS PHARMACEUTICALS INC Full Guru Analysis for SUPN> Full Factor Report for SUPN> 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 growth stock in the Healthcare Facilities industry. Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers. |
32017.0 | 2021-08-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Peter Lynch - 8/15/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-peter-lynch-8-15-2021-2021-08-15 | nan | nan | The following are the top rated Healthcare stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
QUEST DIAGNOSTICS INC (DGX) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs). Its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses, which offers solutions for healthcare providers. The Company's services are provided under the Quest Diagnostics brand, but it also provides services under other brands, including AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Quanum and Care360.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of QUEST DIAGNOSTICS INC
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EMERGENT BIOSOLUTIONS INC (EBS) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Emergent BioSolutions Inc. is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs). The PHTs operates through two categories: Chemical, Biological, Radiological and Nuclear, as well as explosive-related threats and emerging infectious diseases. It operates through four business units: Vaccines and Anti-infectives; Antibody Therapeutics; Devices, and Contract Manufacturing. Vaccines and Anti-infectives business unit consists of BioThrax, which is for the general use prophylaxis and post-exposure prophylaxis of anthrax disease. Devices business unit consists of marketed products, such as Reactive Skin Decontamination Lotion Kit (RSDL) and Trobigard (atropine sulfate, obidoxime chloride).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of EMERGENT BIOSOLUTIONS INC
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LABORATORY CORP. OF AMERICA HOLDINGS (LH) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Laboratory Corporation of America Holdings is a life sciences company that is integrated in guiding patient care, providing clinical laboratory and end-to-end drug development services. The Company operates as a healthcare diagnostics company. The Company operates through two segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CDD). The LCD segment is an independent clinical laboratory business, which offers menu of frequently requested and specialty testing through an integrated network of primary and specialty laboratories across the United States. The CDD segment offers drug development services, and provides a range of drug research and development (R&D) and market access services to biopharmaceutical companies and medical device companies across the world. It serves a range of customers, including managed care organizations (MCOs), biopharmaceutical companies, governmental agencies, physicians and other healthcare providers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of LABORATORY CORP. OF AMERICA HOLDINGS
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REGENERON PHARMACEUTICALS INC (REGN) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Regeneron Pharmaceuticals, Inc. is a biotechnology company that discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious diseases. The Company commercializes medicines and product candidates for eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, pain, infectious diseases, and rare diseases. The Company's marketed products include EYLEA (aflibercept) Injection, Dupixent (dupilumab) Injection, Libtayo (cemiplimab) Injection, Praluent (alirocumab) Injection, Kevzara (sarilumab) Solution for Subcutaneous Injection, Inmazeb (atoltivimab, maftivimab, and odesivimab-ebgn) Injection, ARCALYST (rilonacept) Injection for Subcutaneous Use and ZALTRAP (ziv-aflibercept) Injection for Intravenous Infusion.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of REGENERON PHARMACEUTICALS INC
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ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 91% 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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
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More details on Validea's Peter Lynch strategy
Peter Lynch Stock Ideas
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of REGENERON PHARMACEUTICALS INC Full Guru Analysis for REGN> Full Factor Report for REGN> 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> More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. | Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Detailed Analysis of REGENERON PHARMACEUTICALS INC Full Guru Analysis for REGN> Full Factor Report for REGN> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of EMERGENT BIOSOLUTIONS INC Full Guru Analysis for EBS> Full Factor Report for EBS> LABORATORY CORP. OF AMERICA HOLDINGS (LH) is a large-cap value stock in the Healthcare Facilities industry. | Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Detailed Analysis of REGENERON PHARMACEUTICALS INC Full Guru Analysis for REGN> Full Factor Report for REGN> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs). | Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> More details on Validea's Peter Lynch strategy Peter Lynch Stock Ideas About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Detailed Analysis of REGENERON PHARMACEUTICALS INC Full Guru Analysis for REGN> Full Factor Report for REGN> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The Company operates as a healthcare diagnostics company. |
32018.0 | 2021-08-11 00:00:00 UTC | Forget Robinhood, These 3 Healthcare Stocks Are Better Buys | ABT | https://www.nasdaq.com/articles/forget-robinhood-these-3-healthcare-stocks-are-better-buys-2021-08-11 | nan | nan | Mostfinancial newsisn't created with the purpose of producing good investment decisions. It is designed to provide information in an engaging way while creating a constant sense of needing to act. This year offers plenty of examples. The latest is the recent initial public offering of Robinhood Markets (NASDAQ: HOOD), the online brokerage that positions itself as the platform of the people. Is it a greedy company manipulating inexperienced investors or the future of finance for the internet generation? There are strong opinions on both sides of the argument.
But there is no penalty for skipping the debate. As investors, we can simply ignore the complicated stocks and focus on companies that are easier to understand. To that end, three Fool contributors were asked to highlight one healthcare company they think is a better buy than Robinhood. They chose Inari Medical (NASDAQ: NARI), AbbVie (NYSE: ABBV), and Illumina (NASDAQ: ILMN). Here's why.
Image source: Getty Images.
Cheaper and better for patients, doctors, and hospitals
Jason Hawthorne (Inari Medical): Inari Medical has a simple business. It develops disposable devices to treat venous diseases (e.g., clots) like deep vein thrombosis and pulmonary embolisms. Because these often fail to respond to drugs, and those drugs can be expensive and dangerous for patients, the $3.8 billion market was ripe for a simple alternative.
Inari has replaced multiple procedures and overnight stays in the intensive care unit with single, short sessions of less than an hour. Tack on fewer ICU admissions and a shorter overall length of hospital stay and you end up with lower costs, too. That's an obvious win for patients but it benefits doctors and health systems as well. Based on the national average of Medicare reimbursement rates, Inari's approach makes money-losing procedures profitable by significantly reducing the overall cost.
That's led to torrid growth since going public in May 2020. In the four quarterly earnings reports since, the company has posted year-over-year revenue growth of 152%, 172%, 144%, and 113%. It's been profitable in every quarter as a public company except its first. And that was at the height of the pandemic. The stock has climbed 122% since its initial public offering.
With growth like that, it's understandable that one of the company's primary goals is to expand its sales force. After all, transitioning physicians away from the costly, riskier approach requires specialized sales people to demonstrate the devices and train the potential users.
Any company doubling sales each year is likely to have a volatile stock, and Inari is no different. But ignoring the financial media -- along with its obsession over quarterly numbers and today's share price -- is the best way to stay focused on the long term. That's where the potential of a business like Inari will truly shine. The company has an easy to understand business with a lot of room for growth. Unlike Robinhood, I feel confident that Inari is good for customers and shareholders alike.
A superior dividend play
Rachel Warren (AbbVie): If you're searching for a stock that can yield consistent, generous returns for your portfolio, AbbVie is another no-brainer pick to add to your buy basket.
AbbVie, which was spun off from Abbott Laboratories in 2013, has a stable track record of annual revenue increases to its name. For example, in 2016, 2017, 2018, and 2019, the company reported respective net revenue growth of 12%, 10%, 16%, and 2%. And in 2020, AbbVie reported that its revenue surged by an eye-popping 38% compared to the previous year.
The company has delivered robust financial growth in both of the quarters it's reported so far for fiscal 2021. Its net revenue popped 51% in the first quarter and 34% in the second quarter from the year-ago periods.
AbbVie's mega-blockbuster drug Humira has remained the top-selling product in its portfolio year after year, amassing billions upon billions of dollars in annual revenue. In 2020 alone, Humira raked in net revenue of about $19.8 billion, and AbbVie's total net revenue for the year was just shy of $46 billion.
While Humira will relinquish its U.S. patent exclusivity in 2023, its authority as an established brand name and longstanding status as the best-selling drug in the world should continue to drive notable revenue growth for AbbVie. In addition, AbbVie is generating more and more of its revenue from other blockbuster drugs like Skyrizi, Rinvoq, and Imbruvica, as well as products that it acquired in its 2020 acquisition of Allergan, such as Botox Cosmetic and Botox Therapeutic.
Investors can certainly look to AbbVie for steady portfolio growth in the form of share price gains. Over the past five years, the stock has risen by around 70%. The pharmaceutical stock is also one of a special group of stocks called Dividend Aristocrats. With a premium yield of 4.6% at the time of this writing, AbbVie's dividend more than outpaces that of the average stock trading on the S&P 500, which typically yields around 2%.
From its healthy track record of balance sheet growth to its impressive portfolio of brands and medicines and its mouth-watering dividend, AbbVie is a healthcare stock you can truly buy and hold forever.
A dominant industry leader changing healthcare as we know it
Steve Ditto (Illumina): If you're looking for industries and companies that could outperform over the next 10 years, there are few better to consider than DNA sequencing company Illumina.
Illumina is the industry leader in using DNA sequencing for genetic research, testing, and medical treatment. With an installed base of more than 17,000 sequencing systems, Illumina holds more than 90% of theglobal market
This level of industry dominance has led to outstanding stock market performance. Over the last 10 years, Illumina had a total market return of 862% versus 348% for the S&P 500. Illumina could do even better over the next 10 years.
Illumina and the sequencing market have strong tailwinds. Technology advancements are dramatically improving the cost, accuracy, and turnaround time of DNA sequencing. These advancements have made their way from the research lab into hospitals where they have the potential to change the way healthcare is delivered.
About one in five "healthy" adults carry disease-related genetic mutations. It's now possible for someone to visit the doctor at the first sign of a potential issue, be tested, have their genome sequenced, arrive at a definitive diagnosis, receive a specific treatment, and have symptoms subside within days.
That scenario is one big catalyst for why sequencing volumes are projected to increase more than 10 times over the next three years. Some longtime industry observers say we are on the cusp of a genomic revolution.
These trends are showing up in Illumina's recent results. For the second quarter in a row, it generated more than $1 billion in revenue and exceeded top- and bottom-line expectations. On the Q2earnings call CEO Francis deSouza said the company is "firing on all cylinders."
Illumina has a market cap of $73 billion. If it performs as well over the next decade as it has for the past 10 years, that could grow to $250 billion. That seems feasible when you compare it to other dominant technology companies like the FAANG stocks. For long-term buy-and-hold investors looking to outperform Robinhood and the rest of the stock market, that would make shares of Illumina a good addition to any portfolio.
10 stocks we like better than AbbVie
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Jason Hawthorne owns shares of Illumina and Inari Medical, Inc. Rachel Warren has no position in any of the stocks mentioned. Steve Ditto has no position in any of the stocks mentioned. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Humira will relinquish its U.S. patent exclusivity in 2023, its authority as an established brand name and longstanding status as the best-selling drug in the world should continue to drive notable revenue growth for AbbVie. From its healthy track record of balance sheet growth to its impressive portfolio of brands and medicines and its mouth-watering dividend, AbbVie is a healthcare stock you can truly buy and hold forever. It's now possible for someone to visit the doctor at the first sign of a potential issue, be tested, have their genome sequenced, arrive at a definitive diagnosis, receive a specific treatment, and have symptoms subside within days. | Cheaper and better for patients, doctors, and hospitals Jason Hawthorne (Inari Medical): Inari Medical has a simple business. Illumina is the industry leader in using DNA sequencing for genetic research, testing, and medical treatment. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jason Hawthorne owns shares of Illumina and Inari Medical, Inc. Rachel Warren has no position in any of the stocks mentioned. | A dominant industry leader changing healthcare as we know it Steve Ditto (Illumina): If you're looking for industries and companies that could outperform over the next 10 years, there are few better to consider than DNA sequencing company Illumina. With an installed base of more than 17,000 sequencing systems, Illumina holds more than 90% of theglobal market This level of industry dominance has led to outstanding stock market performance. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Jason Hawthorne owns shares of Illumina and Inari Medical, Inc. Rachel Warren has no position in any of the stocks mentioned. | AbbVie's mega-blockbuster drug Humira has remained the top-selling product in its portfolio year after year, amassing billions upon billions of dollars in annual revenue. A dominant industry leader changing healthcare as we know it Steve Ditto (Illumina): If you're looking for industries and companies that could outperform over the next 10 years, there are few better to consider than DNA sequencing company Illumina. Illumina could do even better over the next 10 years. |
32019.0 | 2021-08-10 00:00:00 UTC | Will Intuitive Surgical Stock Continue To Make Fresh Highs? | ABT | https://www.nasdaq.com/articles/will-intuitive-surgical-stock-continue-to-make-fresh-highs-2021-08-10 | nan | nan | The stock price of Intuitive Surgical (NASDAQ:ISRG) has seen a rise of over 8% over the last twenty-one trading days, and it is also up a solid 51% over the last twelve month period. The recent rise can be attributed to the announcement of a 3-to-1 stock split. ISRG stock is now trading at its all-time high of around $1030. The stock appreciation is also backed by solid Q2 results it reported last month. The company’s sales grew a large 72%, driven by a 68% surge in procedure volume, while its earnings of $3.92 per share reflected a massive 3.5x y-o-y growth. While the Q2 2021 figures compare favorably with the prior year quarter, which saw fewer elective surgeries, amid the lockdowns, the company has guided for a solid 27-30% procedure volume growth for the full-year 2021.
But now that ISRG stock has moved to its all-time high levels past $1,000, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a good chance of a rise in ISRG stock over the next month. Out of 468 instances in the last ten years that ISRG stock saw a twenty-one day rise of 8% or more, 291 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 291 out of 568, or about 61% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of A Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving 3.9% or more over a five-day period, the stock rose in the next five days on 51% of the occasions.
After moving 5.5% or more over a ten-day period, the stock rose in the next ten days on 51% of the occasions
After moving 8.2% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 62% of the occasions.
Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise
Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers
Five-Day Return: ISRG highest at 3.9%; BDX lowest at -5.8%
Ten-Day Return: ISRG highest at 5.5%; BDX lowest at -4%
Twenty-One Days Return: ISRG highest at 8.2%; BDX lowest at -4%
While the historical performance suggests even higher levels are likely for ISRG stock, we continue to believe that it is richly valued. Our Intuitive Surgical Valuation of $953 is based on expected EPS of $13.91 and a 68x P/E multiple, reflecting a discount of around 7% to the current market price of $1030.
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}">Going by historical performance, 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 Pfizer vs Merck.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock price of Intuitive Surgical (NASDAQ:ISRG) has seen a rise of over 8% over the last twenty-one trading days, and it is also up a solid 51% over the last twelve month period. While the Q2 2021 figures compare favorably with the prior year quarter, which saw fewer elective surgeries, amid the lockdowns, the company has guided for a solid 27-30% procedure volume growth for the full-year 2021. Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data After moving 3.9% or more over a five-day period, the stock rose in the next five days on 51% of the occasions. | Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: ISRG highest at 3.9%; BDX lowest at -5.8% Ten-Day Return: ISRG highest at 5.5%; BDX lowest at -4% Twenty-One Days Return: ISRG highest at 8.2%; BDX lowest at -4% While the historical performance suggests even higher levels are likely for ISRG stock, we continue to believe that it is richly valued. 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}">Going by historical performance, while ISRG stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | Out of 468 instances in the last ten years that ISRG stock saw a twenty-one day rise of 8% or more, 291 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). After moving 5.5% or more over a ten-day period, the stock rose in the next ten days on 51% of the occasions After moving 8.2% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 62% of the occasions. Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: ISRG highest at 3.9%; BDX lowest at -5.8% Ten-Day Return: ISRG highest at 5.5%; BDX lowest at -4% Twenty-One Days Return: ISRG highest at 8.2%; BDX lowest at -4% While the historical performance suggests even higher levels are likely for ISRG stock, we continue to believe that it is richly valued. | The stock price of Intuitive Surgical (NASDAQ:ISRG) has seen a rise of over 8% over the last twenty-one trading days, and it is also up a solid 51% over the last twelve month period. Going by historical performance, there is a good chance of a rise in ISRG stock over the next month. Out of 468 instances in the last ten years that ISRG stock saw a twenty-one day rise of 8% or more, 291 of them resulted in ISRG stock rising over the subsequent one-month period (twenty-one trading days). |
32020.0 | 2021-08-10 00:00:00 UTC | 2 Stocks That Could Turn $200,000 Into $1,000,000 in 10 Years | ABT | https://www.nasdaq.com/articles/2-stocks-that-could-turn-%24200000-into-%241000000-in-10-years-2021-08-10 | nan | nan | A lot has changed in the past 10 years. In 2011, the U.S. was still recovering from the 2008 financial crisis, and no one had witnessed a deadly pandemic in several decades. Unless you have a crystal ball, it's hard to predict exactly how the next 10 years will develop. But for investors, one thing is for certain: Great businesses will keep beating the market.
If you're looking for excellent stocks to buy and hold through the next decade, here are two that could turn $200,000 into $1,000,000 (that's a compound annual growth rate of about 17.5%) in the next 10 years: Abbott Laboratories (NYSE: ABT) and Match Group (NASDAQ: MTCH). Let's see why both are worth adding to your portfolio.
1. Abbott Laboratories
Abbott Laboratories isn't just a medical devices specialist. The company's diversified operations, including its established pharmaceutical, nutritional products, and diagnostics segments, are a major strength that will help it continue beating the market. Within its established pharmaceuticals division, Abbott Laboratories offers a suite of branded generic pharmaceutical products. This business is particularly geared toward "emerging markets," including China, Brazil, and India.
Image source: Getty Images.
Abbott's nutritional products segment benefits from strong name recognition thanks to brands such as Ensure, Pediasure, and Similac. The perks of Abbott's diversified business were on full display last year, thanks to its diagnostics division. While the company's medical devices business hit a major snag due to the pandemic, Abbott developed and marketed several COVID-19 diagnostics test kits, which helped the company's revenue and earnings stay afloat -- and then some.
Still, Abbott's medical devices business is its most important, and it will likely remain the key growth driver moving forward. The company's "structural heart" segment, which deals with defects in heart valves or tissues, and its diabetes care segment are particularly worth noting. Abbott launched the Tricuspid Repair System, which repairs the tricuspid valve without open-heart surgery, last year, and it currently has an annual run rate of $100 million.
The company's MitraClip, which treats a heart condition called mitral regurgitation, continues to make headway. Sales for this device jumped by 88% year over year in the second quarter ending June 30. In the quarter, the MitraClip was used in its highest number of procedures ever. Then there is Abbott's continuous glucose monitoring (CGM) device, the FreeStyle Libre, sales of which soared by 52.5% year over year to $904 million during Q2.
The CGM market is projected to continue growing rapidly, and with an established base of 3.5 million users worldwide (and growing), Abbott's FreeStyle Libre is poised to benefit. With these opportunities at its disposal, Abbott is more than likely to continue beating the market for the next 10 years (and beyond), making this healthcare stock worth buying right now.
Image source: Getty Images.
2. Match Group
Match Group is the leader in online dating thanks to its namesake website, as well as Tinder, Plenty of Fish, OkCupid, Hinge, and more. As evidence of the company's dominance within this market, consider that roughly 60% of relationships in the U.S. that began on a dating website or app started on one of the company's products. Also, in Q4 2020, Tinder alone held a 53.8% market share in the online dating space.
Match Group's dominance is the first reason to seriously consider buying its shares, as the company has managed to build a competitive advantage in the form of the network effect. That is to say, the value of Match Group's portfolio of websites and apps increases as more people use it. Those turning to online dating will often want to maximize their chances of finding a mate. What better way to do that than to sign up for those apps with the greatest number of potential suitors?
And as more people sign up for each of Match Group's services, the more attractive those services become to those who will want to join in the future. With the online dating market set to continue growing, so will Match Group's network of users, including paying users. This bodes well for the company's future.
But Match Group is also looking to expand its offerings beyond dating. The tech company took a major step toward that goal earlier this year with its acquisition of Hyperconnect in a cash-and-stock transaction valued at $1.725 billion. The deal closed in June.
Hyperconnect offers two apps: Azar and Hakuna Live. The former allows users to connect with people via video chat. It comes equipped with a feature that can instantly translate voice and text messages from one language into another, allowing users to meet new friends from all over the world. Hakuna Live, meanwhile, is a social media live streaming platform, allowing users to connect through video broadcasts. According to management, the "social discovery market" in which Hyperconnect operates is an even larger and faster-growing market than dating.
This will help drive Match Group's stock in the right direction, and while this tech giant has comfortably beaten the market over the past five years, don't bet against it to continue doing just that for the next decade.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match 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. | If you're looking for excellent stocks to buy and hold through the next decade, here are two that could turn $200,000 into $1,000,000 (that's a compound annual growth rate of about 17.5%) in the next 10 years: Abbott Laboratories (NYSE: ABT) and Match Group (NASDAQ: MTCH). The company's diversified operations, including its established pharmaceutical, nutritional products, and diagnostics segments, are a major strength that will help it continue beating the market. This will help drive Match Group's stock in the right direction, and while this tech giant has comfortably beaten the market over the past five years, don't bet against it to continue doing just that for the next decade. | If you're looking for excellent stocks to buy and hold through the next decade, here are two that could turn $200,000 into $1,000,000 (that's a compound annual growth rate of about 17.5%) in the next 10 years: Abbott Laboratories (NYSE: ABT) and Match Group (NASDAQ: MTCH). The company's diversified operations, including its established pharmaceutical, nutritional products, and diagnostics segments, are a major strength that will help it continue beating the market. Within its established pharmaceuticals division, Abbott Laboratories offers a suite of branded generic pharmaceutical products. | If you're looking for excellent stocks to buy and hold through the next decade, here are two that could turn $200,000 into $1,000,000 (that's a compound annual growth rate of about 17.5%) in the next 10 years: Abbott Laboratories (NYSE: ABT) and Match Group (NASDAQ: MTCH). With the online dating market set to continue growing, so will Match Group's network of users, including paying users. This will help drive Match Group's stock in the right direction, and while this tech giant has comfortably beaten the market over the past five years, don't bet against it to continue doing just that for the next decade. | If you're looking for excellent stocks to buy and hold through the next decade, here are two that could turn $200,000 into $1,000,000 (that's a compound annual growth rate of about 17.5%) in the next 10 years: Abbott Laboratories (NYSE: ABT) and Match Group (NASDAQ: MTCH). The company's diversified operations, including its established pharmaceutical, nutritional products, and diagnostics segments, are a major strength that will help it continue beating the market. With these opportunities at its disposal, Abbott is more than likely to continue beating the market for the next 10 years (and beyond), making this healthcare stock worth buying right now. |
32021.0 | 2021-08-06 00:00:00 UTC | 1 Healthcare Dividend Giant to Bank On Right Now | ABT | https://www.nasdaq.com/articles/1-healthcare-dividend-giant-to-bank-on-right-now-2021-08-06 | nan | nan | When the stock market shows signs of volatility, it's never a bad thing to have trustworthy companies that you can count on to provide extra cash in your account -- regardless of whether their stocks' price is going up or down.
The companies that can do that for you are those that pay dividends. Dividend-paying companies come in all sizes, but they are often larger, established businesses with growing profits. A company that grows its annual dividend consistently for at least 25 years is in a unique group called Dividend Aristocrats. Abbott Laboratories (NYSE: ABT) is a distinguished member of this group, having raised its annual dividend for 49 consecutive years.
Image source: Getty Images
A Dividend Aristocrat
In December 2020, Abbott Labs announced a 25% increase in its dividend to $0.45 per quarter ($1.80 annually). This represents a 1.47% dividend yield at today's prices. By comparison, this number is slightly lower than the average for companies in the healthcare sector, which have an average 2.28% dividend yield, while the average of healthcare companies belonging to the S&P 500 -- including Abbott -- is 1.75%.
The trade-off is that not all of those companies have paid quarterly dividends consistently for 388 quarters -- dating back to 1924! -- like Abbott has, and not all of them are in the prestigious category for consecutive annual increases.
Royal challenges
A 49th year of dividends and a recent increase might make things look rosy for investors. However, the company does face some challenges in keeping its stock price trending upward. In a press release on June 1, management announced they were revising their 2021 outlook downward, due primarily to lowered projections for COVID-19 tests. The previously projected revenue of more than $6.5 billion for COVID-19 testing has been cut by one-third, to only $4.5 billion, leading the company to revise full-year earnings estimates downward to an average of $4.40 per share as compared to the previously stated $5 per share, a reduction of 23%.
Along with the downward revision in revenue and estimated full-year earnings, some analysts following the company have recently provided lowered price targets. Analysts from Morgan Stanley and Credit Suisse both provided new price targets at 10% below their previous targets of $140 and $133, respectively.
The good news
Although price targets have been cut, Abbott and its analysts remain positive on the company's potential, thanks in part to a solid pipeline of products in its foundational business. The COVID-19 pandemic brought an injection of revenue from testing, which is now starting to fade as much of the U.S. is getting back to a sense of normalcy. For Abbott, that normalcy brings with it a renewed focus on the baseline business and the positive impact coming from recently launched products. Analysts Cecilia Furlong of Morgan Stanley and Travis Steed of Barclays both agree that the underlying business is set for recovery, with Steed noting that the company has "one of the best pipelines in medical technology" support an overweight rating, unchanged from pre-price target cuts. Meanwhile, Matt Miksic at Credit Suisse expects an average of 8% sales growth and over 10% earnings-per-share growth for 2021.
The company's second-quarter earnings report, which was released July 22 , showed growth across all four key baseline businesses -- nutrition, diagnostics, pharmaceuticals, and medical devices -- resulting in 11% growth in non-COVID-19 related sales. Management also restated their recently lowered revision of full-year adjusted diluted earnings per share of $4.40, supported by double-digit growth year over year.
Now that the company has pulled back a bit on projections, it's focusing on the successes of its primary products. Leading the way for recent launches is its Libre diabetes care product family. Freestyle Libre is a sensor-based glucose monitoring system that, along with Libre Sense, brought in nearly $830 million in the first quarter. That was followed up with $904 million in Libre sales during the second quarter, representing 53% growth year over year and a 9% sequential increase.
BinaxNOW is Abbott's entry into the COVID-19 space for self-testing, and it will be useful as the pandemic fades. One example of how BinaxNOW can generate revenue going forward is through the return to normal schedules for schools and organized groups. The Department of Health and Human Services, along with the Department of Defense, will be delivering 150 million units of the self-test to schools and other strategic recipients. The state of Massachusetts will obtain over 2 million tests to use throughout the coming school year for students with symptoms, as follow-ups, or for at-home use. In the second quarter, the company experienced combined sales of $1 billion from its rapid testing platforms, including BinaxNOW, Panbio, and ID NOW.
Why buy?
The opportunity to purchase a Dividend Aristocrat at a discount to its expected price target is hard to ignore. History is also on Abbott's side, as earnings and revenue have both grown for the past three years.
Even the lowered price targets are above the current stock price; the average target is $128, providing investors today with a current discount of approximately 6% based on the current $121 share price. If the price hits the upper target of $136, you're looking at a gain of 12%.
An investor who puts $10,000 into Abbott should expect to gain an extra $150 per year in dividends, which will compound annually regardless of the direction of the share price. Combined with an upper price target ($136) that is double the stock price from just three years ago, plus a growing annual dividend and projected double-digit growth in revenue, it's easy to see how Abbott Labs could make for a sound investment in a volatile market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is a distinguished member of this group, having raised its annual dividend for 49 consecutive years. Along with the downward revision in revenue and estimated full-year earnings, some analysts following the company have recently provided lowered price targets. The good news Although price targets have been cut, Abbott and its analysts remain positive on the company's potential, thanks in part to a solid pipeline of products in its foundational business. | Abbott Laboratories (NYSE: ABT) is a distinguished member of this group, having raised its annual dividend for 49 consecutive years. Along with the downward revision in revenue and estimated full-year earnings, some analysts following the company have recently provided lowered price targets. Management also restated their recently lowered revision of full-year adjusted diluted earnings per share of $4.40, supported by double-digit growth year over year. | Abbott Laboratories (NYSE: ABT) is a distinguished member of this group, having raised its annual dividend for 49 consecutive years. By comparison, this number is slightly lower than the average for companies in the healthcare sector, which have an average 2.28% dividend yield, while the average of healthcare companies belonging to the S&P 500 -- including Abbott -- is 1.75%. Even the lowered price targets are above the current stock price; the average target is $128, providing investors today with a current discount of approximately 6% based on the current $121 share price. | Abbott Laboratories (NYSE: ABT) is a distinguished member of this group, having raised its annual dividend for 49 consecutive years. Along with the downward revision in revenue and estimated full-year earnings, some analysts following the company have recently provided lowered price targets. That was followed up with $904 million in Libre sales during the second quarter, representing 53% growth year over year and a 9% sequential increase. |
32022.0 | 2021-08-05 00:00:00 UTC | iShares Core S&P 500 ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-outflow-2021-08-05 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $683.4 million dollar outflow -- that's a 0.2% decrease week over week (from 671,300,000 to 669,750,000). Among the largest underlying components of IVV, in trading today Nike (Symbol: NKE) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is up by about 1.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $320.92 per share, with $443.7161 as the 52 week high point — that compares with a last trade of $442.37. 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 IVV, in trading today Nike (Symbol: NKE) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is up by about 1.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.92 per share, with $443.7161 as the 52 week high point — that compares with a last trade of $442.37. 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 IVV, in trading today Nike (Symbol: NKE) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is up by about 1.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.92 per share, with $443.7161 as the 52 week high point — that compares with a last trade of $442.37. 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 IVV, in trading today Nike (Symbol: NKE) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is up by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $683.4 million dollar outflow -- that's a 0.2% decrease week over week (from 671,300,000 to 669,750,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.92 per share, with $443.7161 as the 52 week high point — that compares with a last trade of $442.37. | Among the largest underlying components of IVV, in trading today Nike (Symbol: NKE) is up about 0.1%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is up by about 1.7%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.92 per share, with $443.7161 as the 52 week high point — that compares with a last trade of $442.37. 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). |
32023.0 | 2021-08-05 00:00:00 UTC | What's Next For Baxter Stock After A 4% Fall Last Week? | ABT | https://www.nasdaq.com/articles/whats-next-for-baxter-stock-after-a-4-fall-last-week-2021-08-05 | nan | nan | The stock price of medical supplies company Baxter (NYSE: BAX) has seen a fall of 4% over the last five trading days, while it is also down over 7% in the last year. The recent fall came after the company announced its Q2 results and reports of it planning to acquire another medical devices company – Hill-Rom.
Baxter’s total revenues of $3.1 billion in Q2 2021 were in-line, while its EPS of $0.80 was better than the $0.75 consensus estimate. The company’s top-line expanded 14% and the bottom-line 22% on a y-o-y basis. The company has guided for sales growth of 8%, compared to a range of 8% to 9% per the earlier guidance in Q1 2021. Looking at the bottom-line, Baxter now expects adjusted EPS to be $3.52 for the full-year 2021, compared to $3.51 per the earlier guidance, at the mid-point of the range.
Another factor that impacted BAX stock was a report of it planning to acquire Hill-Rom. As per the report, Hill-Rom rejected a $144-per-share bid from Baxter. Hill-Rom was trading at levels of around $128 before this news broke, and it has since rallied 14%. If Baxter wants a deal, it may have to bid at a higher price, and this has likely weighed on its stock.
Now, after a 4.4% fall in a week, will BAX stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BAX stock average 2.6% in the next one-month (twenty-one trading days) period after experiencing an 4.4% drop over the previous week (five trading days), implying that BAX stock may rebound in the near term. That said, the movement in BAX stock will also depend on any development around its Hill-Rom acquisition plans.
But how would these numbers change if you are interested in holding BAX stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Baxter stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF BAX stock moved by -5% over five trading days, THEN over the next twenty-one trading days BAX stock moves an average of 2.9%, with a good 72% probability of a positive return over this period.
Some Fun Scenarios, FAQs & Making Sense of Baxter International Stock Movements:
Question 1: Is the average return for Baxter International stock higher after a drop?
Answer: Consider two situations,
Case 1: Baxter International stock drops by -5% or more in a week
Case 2: Baxter International stock rises by 5% or more in a week
Is the average return for Baxter International stock higher over the subsequent month after Case 1 or Case 2?
BAX stock fares better after Case 1, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 0.4% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Baxter International stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Baxter International stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For BAX stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Baxter International after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for Baxter International stock by changing the inputs in the charts above.
While BAX stock may rise in the near term, 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 Freeport vs. Baxter.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock price of medical supplies company Baxter (NYSE: BAX) has seen a fall of 4% over the last five trading days, while it is also down over 7% in the last year. Try the Trefis machine learning engine above to see for yourself how Baxter International stock is likely to behave after any specific gain or loss over a period. Answer: If you buy and hold Baxter International stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BAX stock average 2.6% in the next one-month (twenty-one trading days) period after experiencing an 4.4% drop over the previous week (five trading days), implying that BAX stock may rebound in the near term. You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Baxter stock chances of a rise after a fall. Some Fun Scenarios, FAQs & Making Sense of Baxter International Stock Movements: Question 1: Is the average return for Baxter International stock higher after a drop? | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BAX stock average 2.6% in the next one-month (twenty-one trading days) period after experiencing an 4.4% drop over the previous week (five trading days), implying that BAX stock may rebound in the near term. Answer: Consider two situations, Case 1: Baxter International stock drops by -5% or more in a week Case 2: Baxter International stock rises by 5% or more in a week Is the average return for Baxter International stock higher over the subsequent month after Case 1 or Case 2? BAX stock fares better after Case 1, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 0.4% for Case 2. | Looking at the bottom-line, Baxter now expects adjusted EPS to be $3.52 for the full-year 2021, compared to $3.51 per the earlier guidance, at the mid-point of the range. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BAX stock average 2.6% in the next one-month (twenty-one trading days) period after experiencing an 4.4% drop over the previous week (five trading days), implying that BAX stock may rebound in the near term. Answer: Consider two situations, Case 1: Baxter International stock drops by -5% or more in a week Case 2: Baxter International stock rises by 5% or more in a week Is the average return for Baxter International stock higher over the subsequent month after Case 1 or Case 2? |
32024.0 | 2021-08-04 00:00:00 UTC | Got $5,000? Buy and Hold These 3 Market-Beating Stocks | ABT | https://www.nasdaq.com/articles/got-%245000-buy-and-hold-these-3-market-beating-stocks-2021-08-04 | nan | nan | If you have $5,000 that you can afford to invest in thestock market today there are plenty of good companies to choose. Although valuations may be elevated right now, timing the market can be costly and you could miss out on profits by waiting too long for a correction. Instead, you're better off focusing on companies that are likely to continue growing over the years -- so even if they dip in value over the short term, their long-term trajectory remains strong.
Three stocks that fall into that bucket and that have outperformed the market over the past five years are Abbott Laboratories (NYSE: ABT), Adobe (NASDAQ: ADBE), and Visa (NYSE: V). They remain some of the most promising growth stocks out there today, and here's why.
Image source: Getty Images.
1. Abbott Laboratories
One of the reasons to be bullish on Abbott Laboratories is the diversity of its business. Its major segments include medical devices, pharmaceuticals, diagnostics, and nutrition. While diagnostics and its COVID-19 tests have attracted many investors over the past year, this is far from just a testing company. Even though diagnostics revenue of $3.2 billion for the period ending June 30 grew 63% year over year, it still wasn't the company's top segment. Medical devices, which brought in $3.7 billion, took the lead. That number was also up an impressive 51%, largely thanks to a recovery from COVID-19 and a return to normal for hospitals and physicians.
Even if the pandemic does come to an end, the company could continue to see an increase in demand for its products and services; the long-term health effects of COVID-19 are still unknown and may be an ongoing drain on the healthcare industry. Beyond that, there's also the demand that comes from an increase in elderly populations around the world -- in 2019, prior to the pandemic, analysts were already projecting the global healthcare market would grow at a compound annual growth rate of 8.9% until 2022.
Abbott Laboratories is projecting some strong numbers as well. For 2021, the company anticipates that its diluted per-share earnings will come in between $2.75 and $2.95. The low end of that estimate would still represent a 10% improvement from the $2.50 earnings per share it reported for 2020.
Over the past five years, shares of Abbott Laboratories have risen 170% while the S&P 500 is up a little over 100%. And the stock still looks like a safe bet to continue beating the market.
2. Adobe
Adobe has soared more than 530% in value over five years, making it the best-performing stock on this list. The company is versatile and well-suited to the demand of the ever-changing workplace. Whether employees are working from home or in the office, they can use Adobe's software all the same -- via subscription. It has plans for photographers, students, small businesses, and enterprises. The company also provides analytics and can give companies valuable insights about their businesses.
For the period ending June 4, sales of $3.8 billion grew 23% year over year. Subscription-based revenue continues to make up the majority of Adobe's business, accounting for 91.8% of revenue this past quarter versus 90.5% a year ago. In turn, that helped boost the company's operating profit from $1 billion to $1.4 billion. And if not for a higher tax bill, its net income would have shown more than just a 1.5% increase from the prior-year period.
Although Adobe's stock isn't cheap, trading at more than 50 times its earnings (the average tech stock in the Technology Select Sector SPDR Fund trades at a multiple of 34), if it continues generating these types of numbers, that multiple won't matter much; the ratio will likely come down in the future. And that's why even at a high price tag, Adobe may still be an excellent buy if you plan to hold on to it for years.
3. Visa
Visa also trades at 50 times its profit -- although that's cheap compared to rival Mastercard, whose investors are paying a multiple of almost 60. Its five-year returns of 215% lag behind its rival (which is up by more than 300%), but its lower valuation might make Visa a bit of a better buy right now.
According to the company's "spending momentum index," 53% of consumers are spending more in July than last year. Although the pace has slowed down since May, the company's chief economist, Wayne Best, states that it "reflects a continued broadening of the spending recovery across regions of the country."
And that clearly looks to be the case; Visa's net revenue of $6.1 billion for the period ending June 30 was a year-over-year increase of 27%. Its pre-tax profit of $4.4 billion was also up an impressive 50% from the same period in 2020.
Management is also focusing on new opportunities, announcing in June that it will be acquiring fintech company Tink for $2.1 billion. Tink operates an open banking platform that allows companies to gain access (where authorized) to financial data from thousands of banks through just a single API connection. Open banking is still in its early stages, but this is just one example of a new opportunity for Visa to develop and grow over the long term.
The credit card company is generating some strong growth numbers, and with still more opportunities on the horizon, it wouldn't be surprising for the stock to continue to outperform the S&P 500.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Mastercard and Visa. The Motley Fool recommends Adobe 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. | Three stocks that fall into that bucket and that have outperformed the market over the past five years are Abbott Laboratories (NYSE: ABT), Adobe (NASDAQ: ADBE), and Visa (NYSE: V). Even if the pandemic does come to an end, the company could continue to see an increase in demand for its products and services; the long-term health effects of COVID-19 are still unknown and may be an ongoing drain on the healthcare industry. Beyond that, there's also the demand that comes from an increase in elderly populations around the world -- in 2019, prior to the pandemic, analysts were already projecting the global healthcare market would grow at a compound annual growth rate of 8.9% until 2022. | Three stocks that fall into that bucket and that have outperformed the market over the past five years are Abbott Laboratories (NYSE: ABT), Adobe (NASDAQ: ADBE), and Visa (NYSE: V). Even though diagnostics revenue of $3.2 billion for the period ending June 30 grew 63% year over year, it still wasn't the company's top segment. Visa Visa also trades at 50 times its profit -- although that's cheap compared to rival Mastercard, whose investors are paying a multiple of almost 60. | Three stocks that fall into that bucket and that have outperformed the market over the past five years are Abbott Laboratories (NYSE: ABT), Adobe (NASDAQ: ADBE), and Visa (NYSE: V). Even though diagnostics revenue of $3.2 billion for the period ending June 30 grew 63% year over year, it still wasn't the company's top segment. Although Adobe's stock isn't cheap, trading at more than 50 times its earnings (the average tech stock in the Technology Select Sector SPDR Fund trades at a multiple of 34), if it continues generating these types of numbers, that multiple won't matter much; the ratio will likely come down in the future. | Three stocks that fall into that bucket and that have outperformed the market over the past five years are Abbott Laboratories (NYSE: ABT), Adobe (NASDAQ: ADBE), and Visa (NYSE: V). Abbott Laboratories is projecting some strong numbers as well. Over the past five years, shares of Abbott Laboratories have risen 170% while the S&P 500 is up a little over 100%. |
32025.0 | 2021-08-03 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABT | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-08-03 | 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
McDonald's Corp (Symbol: MCD) $240.10 $259.12 7.92%
Brown-Forman Corp (Symbol: BF.B) $70.79 $75.40 6.51%
Lancaster Colony Corp. (Symbol: LANC) $197.32 $210.00 6.43%
Abbott Laboratories (Symbol: ABT) $120.92 $128.64 6.39%
General Dynamics Corp (Symbol: GD) $195.83 $207.18 5.80%
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
McDonald's Corp (Symbol: MCD) 2.15% 7.92% 10.07%
Brown-Forman Corp (Symbol: BF.B) 1.01% 6.51% 7.52%
Lancaster Colony Corp. (Symbol: LANC) 1.52% 6.43% 7.95%
Abbott Laboratories (Symbol: ABT) 1.49% 6.39% 7.88%
General Dynamics Corp (Symbol: GD) 2.43% 5.80% 8.23%
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
McDonald's Corp (Symbol: MCD) $4.91 $5.12 4.28%
Brown-Forman Corp (Symbol: BF.B) $0.688 $0.714 3.78%
Lancaster Colony Corp. (Symbol: LANC) $2.75 $2.95 7.27%
Abbott Laboratories (Symbol: ABT) $1.4 $1.71 22.14%
General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABT — FREE Get the latest Zacks research report on GD — 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. McDonald's Corp (Symbol: MCD) $240.10 $259.12 7.92% Brown-Forman Corp (Symbol: BF.B) $70.79 $75.40 6.51% Lancaster Colony Corp. (Symbol: LANC) $197.32 $210.00 6.43% Abbott Laboratories (Symbol: ABT) $120.92 $128.64 6.39% General Dynamics Corp (Symbol: GD) $195.83 $207.18 5.80% 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. McDonald's Corp (Symbol: MCD) 2.15% 7.92% 10.07% Brown-Forman Corp (Symbol: BF.B) 1.01% 6.51% 7.52% Lancaster Colony Corp. (Symbol: LANC) 1.52% 6.43% 7.95% Abbott Laboratories (Symbol: ABT) 1.49% 6.39% 7.88% General Dynamics Corp (Symbol: GD) 2.43% 5.80% 8.23% Another consideration with dividend growth stocks is just how much the dividend is growing. | McDonald's Corp (Symbol: MCD) $240.10 $259.12 7.92% Brown-Forman Corp (Symbol: BF.B) $70.79 $75.40 6.51% Lancaster Colony Corp. (Symbol: LANC) $197.32 $210.00 6.43% Abbott Laboratories (Symbol: ABT) $120.92 $128.64 6.39% General Dynamics Corp (Symbol: GD) $195.83 $207.18 5.80% 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. McDonald's Corp (Symbol: MCD) 2.15% 7.92% 10.07% Brown-Forman Corp (Symbol: BF.B) 1.01% 6.51% 7.52% Lancaster Colony Corp. (Symbol: LANC) 1.52% 6.43% 7.95% Abbott Laboratories (Symbol: ABT) 1.49% 6.39% 7.88% General Dynamics Corp (Symbol: GD) 2.43% 5.80% 8.23% Another consideration with dividend growth stocks is just how much the dividend is growing. McDonald's Corp (Symbol: MCD) $4.91 $5.12 4.28% Brown-Forman Corp (Symbol: BF.B) $0.688 $0.714 3.78% Lancaster Colony Corp. (Symbol: LANC) $2.75 $2.95 7.27% Abbott Laboratories (Symbol: ABT) $1.4 $1.71 22.14% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. | McDonald's Corp (Symbol: MCD) $240.10 $259.12 7.92% Brown-Forman Corp (Symbol: BF.B) $70.79 $75.40 6.51% Lancaster Colony Corp. (Symbol: LANC) $197.32 $210.00 6.43% Abbott Laboratories (Symbol: ABT) $120.92 $128.64 6.39% General Dynamics Corp (Symbol: GD) $195.83 $207.18 5.80% 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. McDonald's Corp (Symbol: MCD) 2.15% 7.92% 10.07% Brown-Forman Corp (Symbol: BF.B) 1.01% 6.51% 7.52% Lancaster Colony Corp. (Symbol: LANC) 1.52% 6.43% 7.95% Abbott Laboratories (Symbol: ABT) 1.49% 6.39% 7.88% General Dynamics Corp (Symbol: GD) 2.43% 5.80% 8.23% Another consideration with dividend growth stocks is just how much the dividend is growing. McDonald's Corp (Symbol: MCD) $4.91 $5.12 4.28% Brown-Forman Corp (Symbol: BF.B) $0.688 $0.714 3.78% Lancaster Colony Corp. (Symbol: LANC) $2.75 $2.95 7.27% Abbott Laboratories (Symbol: ABT) $1.4 $1.71 22.14% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. | McDonald's Corp (Symbol: MCD) $240.10 $259.12 7.92% Brown-Forman Corp (Symbol: BF.B) $70.79 $75.40 6.51% Lancaster Colony Corp. (Symbol: LANC) $197.32 $210.00 6.43% Abbott Laboratories (Symbol: ABT) $120.92 $128.64 6.39% General Dynamics Corp (Symbol: GD) $195.83 $207.18 5.80% 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. McDonald's Corp (Symbol: MCD) 2.15% 7.92% 10.07% Brown-Forman Corp (Symbol: BF.B) 1.01% 6.51% 7.52% Lancaster Colony Corp. (Symbol: LANC) 1.52% 6.43% 7.95% Abbott Laboratories (Symbol: ABT) 1.49% 6.39% 7.88% General Dynamics Corp (Symbol: GD) 2.43% 5.80% 8.23% Another consideration with dividend growth stocks is just how much the dividend is growing. McDonald's Corp (Symbol: MCD) $4.91 $5.12 4.28% Brown-Forman Corp (Symbol: BF.B) $0.688 $0.714 3.78% Lancaster Colony Corp. (Symbol: LANC) $2.75 $2.95 7.27% Abbott Laboratories (Symbol: ABT) $1.4 $1.71 22.14% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. |
32026.0 | 2021-08-03 00:00:00 UTC | Senseonics Financials Don’t Support Its Billion-Dollar-Plus Market Cap | ABT | https://www.nasdaq.com/articles/senseonics-financials-dont-support-its-billion-dollar-plus-market-cap-2021-08-03 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Senseonics Holdings (NYSE:SENS) is a medical technology company. It’s core business involves the design and development of an advanced glucose monitoring system for people to help manage diabetes.
Source: Minerva Studio / Shutterstock.com
The company’s key product line is the Eversense system which, according to the company,
“…in addition to featuring the first long-term and first implantable CGM sensor, the system is also the first to feature a smart transmitter that provides wearers with discreet on-body vibratory alerts for high and low glucose and can be removed, recharged and re-attached to the skin without discarding the sensor.”
7 F-Rated Stocks to Avoid for the Rest of 2021
Diabetes is historically a very difficult condition to manage and approximately 34 million Americans have some form of the disease. More than 88 million US adults — over a third — have prediabetes, and more than 84% of them don’t know they have it. Diabetes is the seventh leading cause of death in the United States.
Challenge of Glucose Monitoring
SENS’s key product is a long-term glucose monitoring system that lasts for up to 90 days through an under-the-skin sensor, a removal and rechargeable smart transmitter, and an app for real-time monitoring and analysis. Eversense was approved by the FDA in 2018 for use and sale in the U.S. market and the European markets approved the product in 2017. With the approval and the availability of a new app in December 2019, the Eversense system can now be used as a therapeutic CGM in the U.S. This type of system would replace fingerstick blood glucose measurement to make diabetes related decisions, including insulin dosing.
Senseonics is not the only player in this space and faces competition from bigger companies. There are three other key CGM medical device plays in the US market:
Abbott Laboratories’ (NYSE:ABT) FreeStyle Libre
DexCom’s (NASDAQ:DXCM) G6
Medtronic’s (NYSE:MDT) Guardian Connect and Guardian Sensor 3
However, Senseonics’ Eversense is the FDA’s first long-term implantable continuous glucose monitor.
Deal Takes Eversense Global
In 2020 SENS initiated a new marketing strategy and collaboration to bring Eversense to market on a global scale. This agreement was with Ascensia Diabetes Care Holdings in which they granted Ascensia the exclusive right to distribute the 90-day Eversense GCM system worldwide. Ascensia is responsible for sales, marketing, market access, patient and provider onboarding and first level support. SENS is still responsible for research & development, manufacturing, regulatory approvals and second level customer support.
Having only achieved commercial development and regulatory approvals in the last few years, SENS is still in start-up mode. Although revenues were $21.3 million in 2019, they declined to only $5 million in 2020 due to Covid related issues. For 2021, the company expects revenues in the $12-$15 million range. Long-term revenue goals provided by the company are in the $150-$200 million range by 2025. Operating losses in 2020 were $79 million and the cash burn rate was approximately $68 million.
The good news is that the company was able to raise $152 million from a secondary offering in 2021 and cash at the end of Q1 2021 stood at $176.6 million. The bad news is the offering comes with massive shareholder with fully diluted shares increasing from an average of 228 million in 2020 to 428 million shares as of May 2021. However, management has said the company has adequate cash on the balance sheet to fund the operational needs until 2022 (which is next year by the way).
Bottom Line on SENS Stock
Based on lack of near-term profitability and the almost certain need for a capital raise in 2022 or 2023, SENS stock remains highly speculative. Based on the company’s own revenue projections of only $30 million-$40 million in 2022, a $1.4 billion market cap seems t0o high. Avoid SENS stock at these levels and wait for a better opportunity down the road after the stock retreats.
On the date of publication, Tom Kerr did not hold a position in any security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Kerr has worked in the financial services industry for over 25 years. Currently he is a Senior Portfolio Manager at Rocky Peak Capital Management. Prior to that he was Chief Investment Officer and Director of Research of SGL Investment Advisors, and has served in a number of positions at other investment related organizations. Mr. Kerr has also been a contributing writer to TheStreet.com, RagingBull.com and InvestorPlace.com. He’s a CFA charterholder and obtained a B.B.A in Finance from Texas Tech University.
The post Senseonics Financials Don’t Support Its Billion-Dollar-Plus Market Cap 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 are three other key CGM medical device plays in the US market: Abbott Laboratories’ (NYSE:ABT) FreeStyle Libre DexCom’s (NASDAQ:DXCM) G6 Medtronic’s (NYSE:MDT) Guardian Connect and Guardian Sensor 3 However, Senseonics’ Eversense is the FDA’s first long-term implantable continuous glucose monitor. Source: Minerva Studio / Shutterstock.com The company’s key product line is the Eversense system which, according to the company, “…in addition to featuring the first long-term and first implantable CGM sensor, the system is also the first to feature a smart transmitter that provides wearers with discreet on-body vibratory alerts for high and low glucose and can be removed, recharged and re-attached to the skin without discarding the sensor.” 7 F-Rated Stocks to Avoid for the Rest of 2021 Diabetes is historically a very difficult condition to manage and approximately 34 million Americans have some form of the disease. | There are three other key CGM medical device plays in the US market: Abbott Laboratories’ (NYSE:ABT) FreeStyle Libre DexCom’s (NASDAQ:DXCM) G6 Medtronic’s (NYSE:MDT) Guardian Connect and Guardian Sensor 3 However, Senseonics’ Eversense is the FDA’s first long-term implantable continuous glucose monitor. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Senseonics Holdings (NYSE:SENS) is a medical technology company. Challenge of Glucose Monitoring SENS’s key product is a long-term glucose monitoring system that lasts for up to 90 days through an under-the-skin sensor, a removal and rechargeable smart transmitter, and an app for real-time monitoring and analysis. | There are three other key CGM medical device plays in the US market: Abbott Laboratories’ (NYSE:ABT) FreeStyle Libre DexCom’s (NASDAQ:DXCM) G6 Medtronic’s (NYSE:MDT) Guardian Connect and Guardian Sensor 3 However, Senseonics’ Eversense is the FDA’s first long-term implantable continuous glucose monitor. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Senseonics Holdings (NYSE:SENS) is a medical technology company. Source: Minerva Studio / Shutterstock.com The company’s key product line is the Eversense system which, according to the company, “…in addition to featuring the first long-term and first implantable CGM sensor, the system is also the first to feature a smart transmitter that provides wearers with discreet on-body vibratory alerts for high and low glucose and can be removed, recharged and re-attached to the skin without discarding the sensor.” | There are three other key CGM medical device plays in the US market: Abbott Laboratories’ (NYSE:ABT) FreeStyle Libre DexCom’s (NASDAQ:DXCM) G6 Medtronic’s (NYSE:MDT) Guardian Connect and Guardian Sensor 3 However, Senseonics’ Eversense is the FDA’s first long-term implantable continuous glucose monitor. Eversense was approved by the FDA in 2018 for use and sale in the U.S. market and the European markets approved the product in 2017. Ascensia is responsible for sales, marketing, market access, patient and provider onboarding and first level support. |
32027.0 | 2021-08-02 00:00:00 UTC | China quietly sets new 'buy Chinese' targets for state companies - U.S. sources | ABT | https://www.nasdaq.com/articles/china-quietly-sets-new-buy-chinese-targets-for-state-companies-u.s.-sources-2021-08-02 | nan | nan | By Andrea Shalal
WASHINGTON, Aug 2 (Reuters) - China's government quietly issued new procurement guidelines in May that require up to 100% local content on hundreds of items including X-ray machines and magnetic resonance imaging equipment, erecting fresh barriers for foreign suppliers, three U.S.-based sources told Reuters.
Document 551 was issued on May 14 by the Chinese Ministry of Finance and the Ministry of Industry and Information Technology (MIIT), with the title, "Auditing guidelines for government procurement of imported products," said one former U.S. government official, who obtained a copy of the previously unreported 70-page catalog and read portions to Reuters, but requested anonymity.
The former official said that when China joined the World Trade Organization, it agreed not to issue such internal documents. The document also violated the spirit of the January 2020 Phase One trade deal with the United States, the former official said. "They need to reduce barriers, not create new ones."
Sent to Chinese hospitals, companies and other state-owned buyers, the document sets local content requirements of 25% to 100% for 315 items. They include medical equipment, ground-based radar equipment, testing machinery, optical instruments; items used for animal husbandry; seismic instruments, and marine, geological and geophysical equipment, the former official said.
The document has not been publicly released by Beijing.
China's Ministry of Finance and Ministry of Industry and Information Technology did not respond to queries about it.
Some U.S. lawmakers and industry officials are increasingly concerned about Beijing's transparency on trade issues.
The new guidelines affect a wide range of goods, including medical devices, which Beijing agreed to buy more of under the terms of the Phase 1 trade deal. For example, magnetic resonance imaging equipment - a key export for U.S. companies in the past - would face a 100% local content requirements under the new guidelines, the former official said.
U.S. trade experts said China's local content rules differed from planned increases in U.S. "Buy American" thresholds because they were not publicly released, and affect far greater volumes of medical equipment and other goods since China's state-owned enterprises include hospitals and other entities.
BILLIONS IN SALES AT STAKE
China imported some $124 billion in goods from the United States in 2020, much of which was purchased by vast state-owned and government-associated companies that control the education, health, transportation, agriculture and energy sectors.
U.S. medical device exports, made by companies including Johnson & Johnson, GE and Abbott totaled $47.5 billion in 2018, with exports to China valued at $4.5 billion, according to Fitch Solutions data. Chinese imports of such goods fell during the U.S.-China trade war in 2018 and 2019, but rose again after the Phase 1 trade accord was inked.
Doug Barry, spokesman for the U.S. China Business Council, said his group has heard about the document, but has not seen a copy. The group's members who operate in China are reporting new problems in competing for and winning bids there, including areas such as testing equipment and transportation, he said.
The council is urging President Joe Biden's administration to complete its review of U.S.-China trade policies and raise its concerns when Biden and Chinese President Xi Jinping meet in October.
Biden's predecessor Donald Trump, as part of his sometimes contentious China trade policy, was a strong advocate of "Buy American" and "America first."
Biden signed a "Buy American" executive order during his first week in office in January aimed at harnessing the vast buying power of the federal government to boost American manufacturing, and last week unveiled new rules about U.S. content levels in goods procured by the government.
The U.S. Trade Representative's office, which is reviewing U.S.-China trade policies, declined to comment on the Chinese document or whether it violates the U.S.-China trade deal.
USTR spokesman Adam Hodge also declined to give any timetable for when USTR will conclude its review.
One congressional staffer, who was briefed on the document by people who have seen it, said it raised many questions, including whether foreign-owned entities producing goods in China for the Chinese market would meet the new local content criteria.
The non-public nature of the guidelines also meant the Chinese government could play down their importance, the staffer said. "It isn’t posted; it’s not public. It’s being circulated through companies and associations and other groups,” the staffer said. “By not releasing it publicly, the PRC could deny it and say it’s just guidance."
New import restrictions could also make it difficult for China to make up lost ground in meeting its commitment to buy an additional $200 billion in U.S. goods and services under the U.S.-China trade deal, compared to 2017 levels.
With three-fourths of the deal now complete, China is on pace to buy just over 60% of the goods needed to reach its target, according to Chad Bown, a fellow at the Peterson Institute for International Economics.
China passes law to counter sanctions https://www.reuters.com/world/china/china-passes-law-counter-foreign-sanctions-2021-06-10/
(Reporting by Andrea Shalal; additional reporting by Tony Munroe in Beijing; editing by Heather Timmons and Grant McCool)
((andrea.shalal@tr.com; +1 202-815-7432;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | China imported some $124 billion in goods from the United States in 2020, much of which was purchased by vast state-owned and government-associated companies that control the education, health, transportation, agriculture and energy sectors. One congressional staffer, who was briefed on the document by people who have seen it, said it raised many questions, including whether foreign-owned entities producing goods in China for the Chinese market would meet the new local content criteria. With three-fourths of the deal now complete, China is on pace to buy just over 60% of the goods needed to reach its target, according to Chad Bown, a fellow at the Peterson Institute for International Economics. | By Andrea Shalal WASHINGTON, Aug 2 (Reuters) - China's government quietly issued new procurement guidelines in May that require up to 100% local content on hundreds of items including X-ray machines and magnetic resonance imaging equipment, erecting fresh barriers for foreign suppliers, three U.S.-based sources told Reuters. The new guidelines affect a wide range of goods, including medical devices, which Beijing agreed to buy more of under the terms of the Phase 1 trade deal. The council is urging President Joe Biden's administration to complete its review of U.S.-China trade policies and raise its concerns when Biden and Chinese President Xi Jinping meet in October. | By Andrea Shalal WASHINGTON, Aug 2 (Reuters) - China's government quietly issued new procurement guidelines in May that require up to 100% local content on hundreds of items including X-ray machines and magnetic resonance imaging equipment, erecting fresh barriers for foreign suppliers, three U.S.-based sources told Reuters. U.S. trade experts said China's local content rules differed from planned increases in U.S. "Buy American" thresholds because they were not publicly released, and affect far greater volumes of medical equipment and other goods since China's state-owned enterprises include hospitals and other entities. The U.S. Trade Representative's office, which is reviewing U.S.-China trade policies, declined to comment on the Chinese document or whether it violates the U.S.-China trade deal. | The new guidelines affect a wide range of goods, including medical devices, which Beijing agreed to buy more of under the terms of the Phase 1 trade deal. U.S. trade experts said China's local content rules differed from planned increases in U.S. "Buy American" thresholds because they were not publicly released, and affect far greater volumes of medical equipment and other goods since China's state-owned enterprises include hospitals and other entities. The U.S. Trade Representative's office, which is reviewing U.S.-China trade policies, declined to comment on the Chinese document or whether it violates the U.S.-China trade deal. |
32028.0 | 2021-08-02 00:00:00 UTC | Abbott Labs to pay $160 mln over kickbacks, false diabetes claims to Medicare | ABT | https://www.nasdaq.com/articles/abbott-labs-to-pay-%24160-mln-over-kickbacks-false-diabetes-claims-to-medicare-2021-08-02 | nan | nan | By Jonathan Stempel
Aug 2 (Reuters) - Abbott Laboratories ABT.N will pay $160 million to resolve claims that two of its units submitted false claims to Medicare by providing kickbacks to diabetes patients, including "free" or "no cost" glucose monitors, the U.S. Department of Justice said.
Monday's settlement resolves claims that Arriva Medical LLC - once the largest Medicare mail-order diabetes testing supplier - and its parent Alere Inc violated the federal False Claims Act from 2009 to 2016 by diverting Medicare funding from where it was needed.
The Justice Department said Arriva provided free glucose monitors, or glucometers, to induce patients to order more testing supplies, and routinely waived copayments.
Arriva was also accused of systematically charging Medicare, a U.S. government health plan, for glucometers given to ineligible patients, and submitting claims for 211 patients who had been dead at least two weeks.
Abbott, an Illinois-based medical device and nutritional products company, bought Alere for $4.5 billion in October 2017.
Arriva ceased operations two months later. Its founders, David Wallace and Timothy Stocksdale, agreed in April 2019 to pay $500,000 each to resolve Justice Department claims over the alleged kickbacks.
In a statement, Abbott did not comment on the settlement, but said Alere disclosed the matter in its financial filings. The defendants did not admit liability.
Gregory Goodman, a whistleblower and former $15-an-hour employee at an Arriva call center in Antioch, Tennessee, will receive $28.5 million from the settlement.
"Doing anything that defrauds the government or the Medicare program, it's fellow Americans who end up paying for it," Goodman, who turns 60 this week and recently retired from a career in sales, said in an interview. "The decision to move forward was quite simple."
Goodman's lawyer, Jerry Martin, a former U.S. attorney in Tennessee, said in an interview: "It shows you the power of the False Claims Act and how it can be harnessed to get big results."
The False Claims Act lets whistleblowers sue on behalf of the federal government, and share in recoveries.
(Reporting by Jonathan Stempel in New York; Editing by Paul Simao and Bill Berkrot)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Jonathan Stempel Aug 2 (Reuters) - Abbott Laboratories ABT.N will pay $160 million to resolve claims that two of its units submitted false claims to Medicare by providing kickbacks to diabetes patients, including "free" or "no cost" glucose monitors, the U.S. Department of Justice said. The Justice Department said Arriva provided free glucose monitors, or glucometers, to induce patients to order more testing supplies, and routinely waived copayments. "Doing anything that defrauds the government or the Medicare program, it's fellow Americans who end up paying for it," Goodman, who turns 60 this week and recently retired from a career in sales, said in an interview. | By Jonathan Stempel Aug 2 (Reuters) - Abbott Laboratories ABT.N will pay $160 million to resolve claims that two of its units submitted false claims to Medicare by providing kickbacks to diabetes patients, including "free" or "no cost" glucose monitors, the U.S. Department of Justice said. Monday's settlement resolves claims that Arriva Medical LLC - once the largest Medicare mail-order diabetes testing supplier - and its parent Alere Inc violated the federal False Claims Act from 2009 to 2016 by diverting Medicare funding from where it was needed. The Justice Department said Arriva provided free glucose monitors, or glucometers, to induce patients to order more testing supplies, and routinely waived copayments. | By Jonathan Stempel Aug 2 (Reuters) - Abbott Laboratories ABT.N will pay $160 million to resolve claims that two of its units submitted false claims to Medicare by providing kickbacks to diabetes patients, including "free" or "no cost" glucose monitors, the U.S. Department of Justice said. Monday's settlement resolves claims that Arriva Medical LLC - once the largest Medicare mail-order diabetes testing supplier - and its parent Alere Inc violated the federal False Claims Act from 2009 to 2016 by diverting Medicare funding from where it was needed. Arriva was also accused of systematically charging Medicare, a U.S. government health plan, for glucometers given to ineligible patients, and submitting claims for 211 patients who had been dead at least two weeks. | By Jonathan Stempel Aug 2 (Reuters) - Abbott Laboratories ABT.N will pay $160 million to resolve claims that two of its units submitted false claims to Medicare by providing kickbacks to diabetes patients, including "free" or "no cost" glucose monitors, the U.S. Department of Justice said. Arriva was also accused of systematically charging Medicare, a U.S. government health plan, for glucometers given to ineligible patients, and submitting claims for 211 patients who had been dead at least two weeks. Abbott, an Illinois-based medical device and nutritional products company, bought Alere for $4.5 billion in October 2017. |
32029.0 | 2021-08-02 00:00:00 UTC | U.S. says Abbott units to pay $160 mln to resolve alleged false Medicare claims | ABT | https://www.nasdaq.com/articles/u.s.-says-abbott-units-to-pay-%24160-mln-to-resolve-alleged-false-medicare-claims-2021-08-02 | nan | nan | Aug 2 (Reuters) - Two units of Abbott Laboratories ABT.N will pay $160 million to resolve claims they violated the federal False Claims Act by submitting false claims to Medicare, the U.S. Department of Justice said on Monday.
The Justice Department settled with Arriva Medical LLC, once the largest Medicare mail-order diabetic testing supplier, and its parent Alere Inc. Abbott bought both companies in 2017 after the alleged wrongful conduct took place, the department said.
(Reporting by Jonathan Stempel in New York Editing by Paul Simao)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aug 2 (Reuters) - Two units of Abbott Laboratories ABT.N will pay $160 million to resolve claims they violated the federal False Claims Act by submitting false claims to Medicare, the U.S. Department of Justice said on Monday. The Justice Department settled with Arriva Medical LLC, once the largest Medicare mail-order diabetic testing supplier, and its parent Alere Inc. Abbott bought both companies in 2017 after the alleged wrongful conduct took place, the department said. (Reporting by Jonathan Stempel in New York Editing by Paul Simao) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aug 2 (Reuters) - Two units of Abbott Laboratories ABT.N will pay $160 million to resolve claims they violated the federal False Claims Act by submitting false claims to Medicare, the U.S. Department of Justice said on Monday. The Justice Department settled with Arriva Medical LLC, once the largest Medicare mail-order diabetic testing supplier, and its parent Alere Inc. Abbott bought both companies in 2017 after the alleged wrongful conduct took place, the department said. (Reporting by Jonathan Stempel in New York Editing by Paul Simao) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aug 2 (Reuters) - Two units of Abbott Laboratories ABT.N will pay $160 million to resolve claims they violated the federal False Claims Act by submitting false claims to Medicare, the U.S. Department of Justice said on Monday. The Justice Department settled with Arriva Medical LLC, once the largest Medicare mail-order diabetic testing supplier, and its parent Alere Inc. Abbott bought both companies in 2017 after the alleged wrongful conduct took place, the department said. (Reporting by Jonathan Stempel in New York Editing by Paul Simao) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aug 2 (Reuters) - Two units of Abbott Laboratories ABT.N will pay $160 million to resolve claims they violated the federal False Claims Act by submitting false claims to Medicare, the U.S. Department of Justice said on Monday. The Justice Department settled with Arriva Medical LLC, once the largest Medicare mail-order diabetic testing supplier, and its parent Alere Inc. Abbott bought both companies in 2017 after the alleged wrongful conduct took place, the department said. (Reporting by Jonathan Stempel in New York Editing by Paul Simao) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32030.0 | 2021-08-02 00:00:00 UTC | FDA Clears Abbott's FreeStyle Libre 2 IOS App For Diabetes Management | ABT | https://www.nasdaq.com/articles/fda-clears-abbotts-freestyle-libre-2-ios-app-for-diabetes-management-2021-08-02 | nan | nan | (RTTNews) - Abbott said that the U.S. Food and Drug Administration has cleared the FreeStyle Libre 2 iOS application for use with compatible iPhones, providing a comprehensive digital offering for its FreeStyle Libre 2 integrated continuous glucose monitoring (iCGM) system.
FreeStyle Libre 2 iOS app is the sensor-based glucose monitoring app that allows users to check their glucose with a compatible iPhone every minute with optional real-time glucose alarms.
The FreeStyle Libre 2 app enables kids (ages 4 and older) and adults to easily share their glucose data with parents and other caregivers via the LibreLinkUp app.
Abbott has secured partial or full reimbursement for the FreeStyle Libre system in 38 countries, including Canada, France, Germany, Japan, the United Kingdom, and the U.S. The FreeStyle Libre 2 iOS app will be available soon in the U.S. to download on the App Store.
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 said that the U.S. Food and Drug Administration has cleared the FreeStyle Libre 2 iOS application for use with compatible iPhones, providing a comprehensive digital offering for its FreeStyle Libre 2 integrated continuous glucose monitoring (iCGM) system. The FreeStyle Libre 2 app enables kids (ages 4 and older) and adults to easily share their glucose data with parents and other caregivers via the LibreLinkUp app. Abbott has secured partial or full reimbursement for the FreeStyle Libre system in 38 countries, including Canada, France, Germany, Japan, the United Kingdom, and the U.S. | (RTTNews) - Abbott said that the U.S. Food and Drug Administration has cleared the FreeStyle Libre 2 iOS application for use with compatible iPhones, providing a comprehensive digital offering for its FreeStyle Libre 2 integrated continuous glucose monitoring (iCGM) system. FreeStyle Libre 2 iOS app is the sensor-based glucose monitoring app that allows users to check their glucose with a compatible iPhone every minute with optional real-time glucose alarms. The FreeStyle Libre 2 iOS app will be available soon in the U.S. to download on the App Store. | (RTTNews) - Abbott said that the U.S. Food and Drug Administration has cleared the FreeStyle Libre 2 iOS application for use with compatible iPhones, providing a comprehensive digital offering for its FreeStyle Libre 2 integrated continuous glucose monitoring (iCGM) system. FreeStyle Libre 2 iOS app is the sensor-based glucose monitoring app that allows users to check their glucose with a compatible iPhone every minute with optional real-time glucose alarms. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FreeStyle Libre 2 iOS app is the sensor-based glucose monitoring app that allows users to check their glucose with a compatible iPhone every minute with optional real-time glucose alarms. The FreeStyle Libre 2 app enables kids (ages 4 and older) and adults to easily share their glucose data with parents and other caregivers via the LibreLinkUp app. Abbott has secured partial or full reimbursement for the FreeStyle Libre system in 38 countries, including Canada, France, Germany, Japan, the United Kingdom, and the U.S. |
32031.0 | 2021-07-29 00:00:00 UTC | 3 Dividend Stocks Safe Enough to Bet the Farm On | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-safe-enough-to-bet-the-farm-on-2021-07-29 | nan | nan | Finding a safe dividend stock to buy for the long term is challenging for two reasons. First, companies can only pay dividends if they have ample cash flow. And second, established competitors with a steady business face the risk of getting disrupted by new upstarts, and that risk rises over time.
But there are still a few stocks with the ability to be lucrative and very low-risk. Generally, the companies in question have a ton of different products that will never go out of style. Let's examine three of the largest businesses in healthcare that fit this bill.
Image source: Getty Images.
1. Becton, Dickinson
Becton, Dickinson (NYSE: BDX) is a rock-solid stock because it's one of the most important suppliers in the healthcare sector. BD serves the market for everything from conical test tubes used for research to surgical supplies and nursing home hardware. No matter what's going on in the economy, there's no single event or trend that could threaten all of its highly diversified revenue sources at once.
Even the coronavirus bounced right off this business. Since the pandemic, the company is flourishing even more than usual, with quarterly earnings up 63.4% year over year as of Q2. Of course, a significant portion of those gains were driven by its white-hot sales of coronavirus diagnostics, not to mention its collaborations with vaccine manufacturers.
Still, BD would probably have rewarded its investors even without revenue from coronavirus products. Over the past five years, its annual free cash flows increased by 46.25%, and over the past decade, its cash holdings have increased by more than 217%. So BD's dividend is quite safe from disruption, though its current dividend yield of 1.35% (about equal to the S&P 500's current average payout) isn't particularly mouthwatering.
2. Abbott Laboratories
Like BD, Abbott Laboratories (NYSE: ABT) sells a huge number of different products that the healthcare system needs to keep working. Whether it's cardiac stents for heart surgery, liquid nutrition solutions, glucose monitors, or coronavirus diagnostic tests, Abbott's offerings are in demand. And they also have a knack for being timely and well-placed in the market.
According to Abbott's second-quarter earnings report, revenue from its medical device sales rose by 45.1% year over year. It also pocketed a cool $1.3 billion from sales of its coronavirus diagnostic tests in Q2, which (obviously) it developed on very short notice early last year. So don't assume that the company's size makes it less nimble when it comes to tackling emerging opportunities.
Nor is it a stranger to consistently strong performance over vast periods. In June, Abbott announced that it was paying out its 390th consecutive quarterly dividend. And for the past 49 years and running, management has opted to increase that dividend at the end of the year. When it comes to being all-in on maintaining and growing a dividend, few other businesses compare. Of course, you aren't going to get rich off of Abbott's dividend yield of 1.51%, but that's not the point. You'll be able to count on the company's payout for years to come, and you can probably rely on it slowly increasing over time, too.
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3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) makes everything from pharmaceuticals to medical devices and even consumer health products like shampoo. And this household name isn't a small-time provider -- in Q2 alone, it made $23.3 billion in sales. Between its many business units and consistent management over time, it has a reputation for being a safe investment.
Part of the reason why investors tend to have a lot of confidence in the company is its enduring financial strength over time. Over the past decade, its annual free cash flow has risen by more than 77%. That's a weighty piece of evidence in favor of its long-standing efficiency and prudent investment in the right areas for growth.
Rising cash flows are also how the company affords rewarding its investors. Johnson & Johnson's current dividend yield of 2.52% is a bit meatier than the payouts from BD and Abbott Labs. And the business is just as devoted to raising its dividend every year as Abbott has been, so holding on to the stock for decades is a smart move.
Investors should still be aware of some of the risks that come with investing in this consumer health company. Over the last few years, J&J has been served with a slew of ongoing lawsuits, with plaintiffs claiming wrongdoing regarding everything from its baby powder products (said to contain asbestos that causes cancer) to its role in allegedly worsening the opioid abuse epidemic in the U.S., not to mention the undisclosed side effects of its antipsychotic medication, Risperdal. Despite paying out billions in settlements related to these cases, the company still has plenty of cash, and it isn't significantly threatened. Investors shouldn't be too surprised if similar issues crop up in the future, causing the stock price to (briefly) tumble. But this powerhouse has shown it can weather such storms.
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Alex Carchidi owns shares of Abbott Laboratories. The Motley Fool recommends Becton, Dickinson and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Like BD, Abbott Laboratories (NYSE: ABT) sells a huge number of different products that the healthcare system needs to keep working. Whether it's cardiac stents for heart surgery, liquid nutrition solutions, glucose monitors, or coronavirus diagnostic tests, Abbott's offerings are in demand. Over the last few years, J&J has been served with a slew of ongoing lawsuits, with plaintiffs claiming wrongdoing regarding everything from its baby powder products (said to contain asbestos that causes cancer) to its role in allegedly worsening the opioid abuse epidemic in the U.S., not to mention the undisclosed side effects of its antipsychotic medication, Risperdal. | Abbott Laboratories Like BD, Abbott Laboratories (NYSE: ABT) sells a huge number of different products that the healthcare system needs to keep working. Over the past five years, its annual free cash flows increased by 46.25%, and over the past decade, its cash holdings have increased by more than 217%. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) makes everything from pharmaceuticals to medical devices and even consumer health products like shampoo. | Abbott Laboratories Like BD, Abbott Laboratories (NYSE: ABT) sells a huge number of different products that the healthcare system needs to keep working. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) makes everything from pharmaceuticals to medical devices and even consumer health products like shampoo. And the business is just as devoted to raising its dividend every year as Abbott has been, so holding on to the stock for decades is a smart move. | Abbott Laboratories Like BD, Abbott Laboratories (NYSE: ABT) sells a huge number of different products that the healthcare system needs to keep working. Even the coronavirus bounced right off this business. Still, BD would probably have rewarded its investors even without revenue from coronavirus products. |
32032.0 | 2021-07-29 00:00:00 UTC | Watch These Companies Closely This Earnings Season | ABT | https://www.nasdaq.com/articles/watch-these-companies-closely-this-earnings-season-2021-07-29 | nan | nan | We're in the thick of earnings season right now. Several big companies have already provided their latest quarterly updates, and more are on the way. In this Motley Fool Live video recorded on July 19, 2021, healthcare and cannabis bureau chief Corinne Cardina and Motley Fool contributor Keith Speights talk about several reports that investors should pay particular attention to this earnings season.
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Corinne Cardina: Earning season is back. What companies, trends, all that good stuff, what should we be watching this earning season?
Keith Speights: Well, obviously, if investors own stocks, watch the earnings for the stocks that you own. But I'll mention several companies that I'll personally be watching closely this earnings season. Intuitive Surgical (NASDAQ: ISRG) is one that really stands out to me. I see Intuitive Surgical as a great pandemic recovery play. But just how strong that recovery will be with COVID still a major concern, especially with the rise of the delta variant, that's a big question mark, so I'll really be watching to see what Intuitive Surgical has to say.
I'll also watch companies that generate significant revenue from COVID-19 -- for example, COVID-19 testing and vaccines. I would throw Abbott Labs (NYSE: ABT) in there, I would throw Pfizer (NYSE: PFE) in the mix, those are great examples. What these particular companies say -- and don't say -- about their outlook for the rest of the year could be telling in just how concerning the rise of the delta variant and other coronavirus variants might be.
Last but not least, I would pay attention to health insurers. UnitedHealth Group (NYSE: UNH) already beat expectations with its Q2 results. I'm interested to see how CVS Health (NYSE: CVS) looks with its Q2 earnings. The company is interesting in particular to me because it combines several healthcare businesses: It's a big health insurer with Aetna, it's a huge pharmacy retailer, and it's a leading pharmacy benefit manager.
The growth of Medicare Advantage, I think, has been driving the fortunes of health insurers in particular, and I expect that will continue into Q2 and beyond. With any earning season, always look for the big surprises, both positive and negative. They can help identify trends early on that could make a difference in how stocks will perform in the future. So watch out for the surprises and I'm sure there will be plenty this earning season.
Cardina: That's right, and we'll be here to talk about them as they come up.
Corinne Cardina has no position in any of the stocks mentioned. Keith Speights owns shares of Intuitive Surgical and Pfizer. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends CVS Health and UnitedHealth Group and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 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. | I would throw Abbott Labs (NYSE: ABT) in there, I would throw Pfizer (NYSE: PFE) in the mix, those are great examples. In this Motley Fool Live video recorded on July 19, 2021, healthcare and cannabis bureau chief Corinne Cardina and Motley Fool contributor Keith Speights talk about several reports that investors should pay particular attention to this earnings season. But just how strong that recovery will be with COVID still a major concern, especially with the rise of the delta variant, that's a big question mark, so I'll really be watching to see what Intuitive Surgical has to say. | I would throw Abbott Labs (NYSE: ABT) in there, I would throw Pfizer (NYSE: PFE) in the mix, those are great examples. In this Motley Fool Live video recorded on July 19, 2021, healthcare and cannabis bureau chief Corinne Cardina and Motley Fool contributor Keith Speights talk about several reports that investors should pay particular attention to this earnings season. Keith Speights owns shares of Intuitive Surgical and Pfizer. | I would throw Abbott Labs (NYSE: ABT) in there, I would throw Pfizer (NYSE: PFE) in the mix, those are great examples. In this Motley Fool Live video recorded on July 19, 2021, healthcare and cannabis bureau chief Corinne Cardina and Motley Fool contributor Keith Speights talk about several reports that investors should pay particular attention to this earnings season. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Corinne Cardina: Earning season is back. | I would throw Abbott Labs (NYSE: ABT) in there, I would throw Pfizer (NYSE: PFE) in the mix, those are great examples. In this Motley Fool Live video recorded on July 19, 2021, healthcare and cannabis bureau chief Corinne Cardina and Motley Fool contributor Keith Speights talk about several reports that investors should pay particular attention to this earnings season. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Corinne Cardina: Earning season is back. |
32033.0 | 2021-07-29 00:00:00 UTC | Returns Are Gaining Momentum At Abbott Laboratories (NYSE:ABT) | ABT | https://www.nasdaq.com/articles/returns-are-gaining-momentum-at-abbott-laboratories-nyse%3Aabt-2021-07-29 | nan | nan | To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital.
Return On Capital Employed (ROCE): What is it?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Abbott Laboratories is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.13 = US$8.1b ÷ (US$73b - US$12b) (Based on the trailing twelve months to June 2021).
Thus, Abbott Laboratories has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 8.4% generated by the Medical Equipment industry.
NYSE:ABT Return on Capital Employed July 29th 2021
Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
What Does the ROCE Trend For Abbott Laboratories Tell Us?
Investors would be pleased with what's happening at Abbott Laboratories. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 13%. Basically the business is earning more per dollar of capital invested and in addition to that, 93% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
What We Can Learn From Abbott Laboratories' ROCE
All in all, it's terrific to see that Abbott Laboratories is reaping the rewards from prior investments and is growing its capital base. And a remarkable 194% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue.
Like most companies, Abbott Laboratories does come with some risks, and we've found 3 warning signs that you should be aware of.
While Abbott Laboratories isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. NYSE:ABT Return on Capital Employed July 29th 2021 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. | So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. NYSE:ABT Return on Capital Employed July 29th 2021 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. | NYSE:ABT Return on Capital Employed July 29th 2021 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. | So on that note, Abbott Laboratories (NYSE:ABT) looks quite promising in regards to its trends of return on capital. NYSE:ABT Return on Capital Employed July 29th 2021 Above you can see how the current ROCE for Abbott Laboratories compares to its prior returns on capital, but there's only so much you can tell from the past. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. |
32034.0 | 2021-07-29 00:00:00 UTC | ANALYSIS-Biden's COVID-19 strategy thwarted by anti-vaxxers, Delta variant | ABT | https://www.nasdaq.com/articles/analysis-bidens-covid-19-strategy-thwarted-by-anti-vaxxers-delta-variant-2021-07-29 | nan | nan | By Jeff Mason and Julie Steenhuysen
WASHINGTON, July 29 (Reuters) - When President Joe Biden entered office, his administration made clear it intended to fight the COVID-19 pandemic by focusing on getting the country vaccinated. With the Delta variant of the coronavirus now raging and a large chunk of Americans rejecting vaccines, that strategy is under scrutiny.
When Biden, a Democrat, took over from Republican President Donald Trump on Jan. 20, roughly 400,000 people in the United States had died from COVID-19 and thousands more were dying every day. Inoculations had only just become available.
Biden's team pushed a major vaccine rollout and incentive campaign involving 42,000 pharmacies, dozens of mass vaccination sites, ride-share companies, a beer maker, and 5,100 active duty troops. Top officials fanned out across the country to preach a well-honed message: getting vaccinated means a return to normal.
In many parts of the United States, it worked. Millions lined up for shots and, as the vaccination rate increased nationwide, daily COVID-19 cases, hospitalizations and deaths dropped.
But the focus on vaccines accompanied a decline in COVID-19 testing, mixed messages on masking, and a failure to anticipate potent anti-vaccination sentiment, misinformation and the virus' own ability to mutate rapidly into more formidable variants, some critics said.
"To protect the country from COVID, you need to have multiple strategies," said Dr. Peter Chin-Hong, an infectious disease specialist and professor at the University of California, San Francisco. "We jumped on the vaccine bandwagon and excitement at the expense of other core strategies in the pandemic."
COVID-19 cases are rising in nearly 90 percent of jurisdictions in the United States, according to the Centers For Disease Control and Prevention (CDC), with outbreaks in areas with low vaccination rates.
The new spike in cases has clouded what had been a full-steam ahead economic recovery, and could be especially risky if consumers become more cautious and spending slows as pandemic-era unemployment benefits, rent moratoria and other supports begin to expire.
"Vaccination remains the most important thing we can do to prevent the spread of the virus, and so we need to be pulling all levers to support vaccination," said Carole Johnson, the White House's coordinator on COVID-19 testing.
White House officials said Biden's $1.9 trillion pandemic relief package, known as the American Rescue Plan, invested billions of dollars into COVID testing for schools and people who are uninsured.
UNDERESTIMATING ANTI-VAX MOVEMENT
Americans' refusal to take free, widely available vaccines that shield them from serious illness and death has confounded the Biden White House.
While vaccines largely protect people from contracting and transmitting the Delta variant, there are rare cases where fully vaccinated people get the virus and may be able to pass it on.
Biden has increasingly referred to the pandemic as one of the unvaccinated.
"It's the just unfortunate conflation of two things, and that is a virus that has evolved to be extraordinarily efficient in transmitting from person to person ... superimposed upon an almost inexplicable resistance to vaccinations," top U.S. infectious disease expert Anthony Fauci told Reuters.
Fauci said that the federal government would rely at least in part on vaccine mandates from schools and businesses for their students and employees to spur lagging vaccination rates.
"If you can't get people on their own volition ... to do what is important for their own health and for that of the country, then you talk about pressure. And pressure is local mandates," he said.
About 163.3 million people, or 49.2% of the total U.S. population, have been fully vaccinated, according to the CDC. The agency's data shows a slight uptick in the vaccination rate in recent weeks. Testing has increased as well.
Many experts had suggested that vaccinating 70% or more of the population could help curb COVID-19 transmission through so-called herd immunity, when combined with people who developed immunity following an infection.
But the ability of the coronavirus to mutate quickly into new, highly transmissible variants has cast doubt on whether herd immunity can be achieved.
As of July 27, the United States was on pace to vaccinate 70% of the entire population by Dec. 16, far later than many developed economies, Reuters analysis shows.
Politics is at least partly to blame.
Some Republican lawmakers have refused to say whether they have taken a vaccine and opposed Biden's efforts to get more people vaccinated.
The spread of misinformation sparked Senate Minority Leader Mitch McConnell, one of the Biden administration's toughest policy opponents, to plan pro-vaccination commercials funded with money from his re-election campaign in his home state of Kentucky, the 79-year-old lawmaker told Reuters.
Anti-vaccination sentiment did not come out of the blue. Reuters/Ipsos polling showed hesitancy was ripe through 2020 and early 2021.
The White House has repeatedly pushed back against misinformation, targeting social media platforms in particular.
Dr. Peter Hotez, a vaccinologist and dean of the National School of Tropical Medicine at Baylor College of Medicine, said the Biden administration's acknowledgement of the "terrible impact" of the anti-vaccine movement was important, but he said the government could do more.
"Anti-science is arguably one of the leading killers of the American people, and yet we don't ... treat it as such. We don't give it the same stature as global terrorism and nuclear proliferation and cyber attacks," he said.
The Kaiser Family Foundation said earlier this month its surveys showed Democrats were much more likely to say they have been vaccinated than Republicans.
Former Trump administration officials argue Biden should have given his predecessor some credit for pushing speedy development of the vaccines, to boost vaccination rates among his supporters.
Trump, who has continued to claim falsely that he won the 2020 election, is the only living president who has not participated in public service announcements to encourage people to take the vaccine.
The White House has rejected criticism that it did not engage Trump more.
MASKS OFF AS A REWARD
The Biden administration sought to create incentives for people of all political stripes by emphasizing, in line with CDC guidance updated in the spring, that those who received their shots could move around without covering their mouth and nose.
"If you are fully vaccinated, you no longer need to wear a mask," Biden said in a May 13 speech in the White House Rose Garden.
But critics say the guidance on mask-wearing has been confusing.
On Tuesday the CDC partially reversed course, encouraging vaccinated Americans to go back to wearing masks in indoor public places in regions where the Delta variant is rapidly spreading.
"I honestly think it's like trying to put toothpaste back in the tube," said Carlos del Rio, a professor of medicine and infectious disease epidemiology at Emory University in Atlanta, referring to getting people to mask up again.
Meanwhile, as the Delta variant spreads, a lack of testing makes it harder to track asymptomatic cases.
Eric Topol, a genomics expert and director of the Scripps Research Translational Institute in La Jolla, California, said rapid testing would help vaccinated people check themselves before traveling or dining in a restaurant.
"That's blatantly missing," he said.
Biden's American Rescue Plan invested $4.8 billion for testing of uninsured people and $10 billion for testing in schools, the White House said.
"Testing has tended to ebb and flow with cases," said Johnson, the testing coordinator. "Because ... we have worked so hard to get people vaccinated, there were not as many people seeking testing."
In 2020, U.S. regulators worked on overdrive to authorize dozens of COVID-19 tests, including low cost, rapid antigen tests, with the goal of boosting national testing capacity to some 200 million per month by the end of 2020.
But demand for tests declined as vaccination rates increased. Earlier this month, Abbott Laboratories said it laid off 400 workers at two of its test-making facilities in response to falling demand.
How the Delta variant upends assumptions about the coronavirus https://www.reuters.com/world/china/how-delta-variant-upends-assumptions-about-coronavirus-2021-07-26/
GRAPHIC-Vaccination burnout?https://graphics.thomsonreuters.com/testfiles/2021/TyyLg0F4Ed/en/
GRAPHIC-Tracking coronavirus vaccinations and outbreaks in the U.S.https://graphics.reuters.com/HEALTH-CORONAVIRUS/USA-TRENDS/dgkvlgkrkpb/index.html
(Additional reporting by Carl O'Donnell and Howard Schneider; Editing by Heather Timmons, Caroline Humer and Grant McCool)
((jeff.mason@thomsonreuters.com; +1 202 898 8300; On Twitter: @jeffmason1; Reuters Messaging: jeff.mason.thomsonreuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But the focus on vaccines accompanied a decline in COVID-19 testing, mixed messages on masking, and a failure to anticipate potent anti-vaccination sentiment, misinformation and the virus' own ability to mutate rapidly into more formidable variants, some critics said. The new spike in cases has clouded what had been a full-steam ahead economic recovery, and could be especially risky if consumers become more cautious and spending slows as pandemic-era unemployment benefits, rent moratoria and other supports begin to expire. The spread of misinformation sparked Senate Minority Leader Mitch McConnell, one of the Biden administration's toughest policy opponents, to plan pro-vaccination commercials funded with money from his re-election campaign in his home state of Kentucky, the 79-year-old lawmaker told Reuters. | While vaccines largely protect people from contracting and transmitting the Delta variant, there are rare cases where fully vaccinated people get the virus and may be able to pass it on. "It's the just unfortunate conflation of two things, and that is a virus that has evolved to be extraordinarily efficient in transmitting from person to person ... superimposed upon an almost inexplicable resistance to vaccinations," top U.S. infectious disease expert Anthony Fauci told Reuters. Biden's American Rescue Plan invested $4.8 billion for testing of uninsured people and $10 billion for testing in schools, the White House said. | "Vaccination remains the most important thing we can do to prevent the spread of the virus, and so we need to be pulling all levers to support vaccination," said Carole Johnson, the White House's coordinator on COVID-19 testing. While vaccines largely protect people from contracting and transmitting the Delta variant, there are rare cases where fully vaccinated people get the virus and may be able to pass it on. Some Republican lawmakers have refused to say whether they have taken a vaccine and opposed Biden's efforts to get more people vaccinated. | With the Delta variant of the coronavirus now raging and a large chunk of Americans rejecting vaccines, that strategy is under scrutiny. In many parts of the United States, it worked. The White House has rejected criticism that it did not engage Trump more. |
32035.0 | 2021-07-28 00:00:00 UTC | SPYG, TMO, INTU, ABT: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/spyg-tmo-intu-abt%3A-etf-inflow-alert-2021-07-28 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $104.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 204,000,000 to 205,600,000). Among the largest underlying components of SPYG, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.4%, Intuit Inc (Symbol: INTU) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 0.6%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $46.6596 per share, with $66.22 as the 52 week high point — that compares with a last trade of $65.87. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPYG, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.4%, Intuit Inc (Symbol: INTU) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 0.6%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $46.6596 per share, with $66.22 as the 52 week high point — that compares with a last trade of $65.87. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPYG, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.4%, Intuit Inc (Symbol: INTU) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 0.6%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $46.6596 per share, with $66.22 as the 52 week high point — that compares with a last trade of $65.87. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of SPYG, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.4%, Intuit Inc (Symbol: INTU) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $104.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 204,000,000 to 205,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $46.6596 per share, with $66.22 as the 52 week high point — that compares with a last trade of $65.87. | Among the largest underlying components of SPYG, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is off about 0.4%, Intuit Inc (Symbol: INTU) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $104.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 204,000,000 to 205,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $46.6596 per share, with $66.22 as the 52 week high point — that compares with a last trade of $65.87. |
32036.0 | 2021-07-28 00:00:00 UTC | Under 35? Here's Where to Put $10,000 Right Now for That Beach House in Retirement | ABT | https://www.nasdaq.com/articles/under-35-heres-where-to-put-%2410000-right-now-for-that-beach-house-in-retirement-2021-07-28 | nan | nan | Most of us have been told "you'd better put money away for retirement." But that doesn't only have to mean saving for the basic necessities -- perhaps you've set up your 401(k) plan to take care of that. There are other reasons to look forward to post-work life, including, say, having your own beach house. And if you're 35 years old or younger (and willing to be patient), you could be closer to that reality than you think.
A $10,000 investment could be worth $500,000 in 30 years with this one exchange-traded fund (ETF), which operates in a growing medical market that offers game-changing innovations in artificial intelligence, robotics, and analysis. BlackRock's iShares U.S. Medical Devices ETF (NYSEMKT: IHI) lists leading medical device companies such as Abbott Laboratories, Medtronic, and Intuitive Surgical among its top 10 holdings.
This ETF has just become a little easier for investors to afford on a per-share basis, and it has a track record for investors to love.
Image source: Getty Images.
A share split
On June 29, the ETF announced a 6-for-1 share split, meaning that for every one share previously held by investors, they will now hold six shares at a per-share price equal to one-sixth the previous share price. The effective date for the split distribution was July 19.
For those who may not be familiar with share splits, the value of your portfolio holdings doesn't change and neither does the total value of the ETF's shares -- but the price of each individual share does change. See the example below, showing the share price before and after the effective distribution date:
DATE NUMBER OF SHARES OWNED INDIVIDUAL SHARE PRICE TOTAL VALUE
July 18 10 $362.46 $3,624.60
July 19 60 $60.41 $3,624.60
Data source: Calculations by author.
The reasons for share splits can vary, but oftentimes are related to "price discovery." This occurs when the per-share price starts to escalate to a number that management thinks is a bit pricey for smaller investors. This rising price can also send a signal to the market that the shares are valuable and performing well, with a bright future. When a split is announced, smaller investors are provided with more of an opportunity to jump in.
Some companies see a share-price jump just before the split as shares are bought up by those who anticipate another price increase afterward. Such an increase can often occur thanks to purchases made by smaller investors now able to get in.
Past performance
The performance of the iShares U.S. Medical Devices ETF has been nothing short of spectacular over the life of the fund. Dating back to its inception in 2006, the average annual return is over 14%, and if you look at the average over the past 10 years, that rate jumps to 19%. By comparison, the S&P Composite 1500 Health Care benchmark is up 12% since 2006, while the market benchmark is 7.2% -- half that of the iShares U.S. Medical Devices ETF.
The ETF also pays out a dividend, albeit a small one; the current $0.05 per share works out to a yield of 0.26%. That said, with an initial investment of $10,000 today (netting you 165 shares), the fund could add another $5,000 to your wallet in 30 years just on dividends alone.
Why stop now?
The worldwide healthcare market is expected to grow by 8% per year through 2027, helped along by an aging population; the number of people over 65 years of age is expected to increase from 800,000 now to 1.5 billion by 2050. Leading the way in all this growth is the medtech sector, which is the primary focus of many of the ETF's holdings, including the aforementioned Medtronic and Intuitive Surgical.
With a performance history going back more than 15 years and a focus on a current market with an anticipated growth rate near 10%, there's little to doubt about this fund. Thirty years from now, if you're sitting in a beach house enjoying full retirement, you might be able to thank your investment in the one healthcare ETF proven to strengthen your portfolio.
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Jeff Little owns shares of iShares Dow Jones US Medical Dev. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 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. | A $10,000 investment could be worth $500,000 in 30 years with this one exchange-traded fund (ETF), which operates in a growing medical market that offers game-changing innovations in artificial intelligence, robotics, and analysis. Leading the way in all this growth is the medtech sector, which is the primary focus of many of the ETF's holdings, including the aforementioned Medtronic and Intuitive Surgical. Thirty years from now, if you're sitting in a beach house enjoying full retirement, you might be able to thank your investment in the one healthcare ETF proven to strengthen your portfolio. | BlackRock's iShares U.S. Medical Devices ETF (NYSEMKT: IHI) lists leading medical device companies such as Abbott Laboratories, Medtronic, and Intuitive Surgical among its top 10 holdings. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jeff Little owns shares of iShares Dow Jones US Medical Dev. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. | A share split On June 29, the ETF announced a 6-for-1 share split, meaning that for every one share previously held by investors, they will now hold six shares at a per-share price equal to one-sixth the previous share price. For those who may not be familiar with share splits, the value of your portfolio holdings doesn't change and neither does the total value of the ETF's shares -- but the price of each individual share does change. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jeff Little owns shares of iShares Dow Jones US Medical Dev. | A share split On June 29, the ETF announced a 6-for-1 share split, meaning that for every one share previously held by investors, they will now hold six shares at a per-share price equal to one-sixth the previous share price. With a performance history going back more than 15 years and a focus on a current market with an anticipated growth rate near 10%, there's little to doubt about this fund. The Motley Fool owns shares of and recommends Intuitive Surgical. |
32037.0 | 2021-07-28 00:00:00 UTC | Anxious About a Market Crash? Start Doing These 3 Things Right Now | ABT | https://www.nasdaq.com/articles/anxious-about-a-market-crash-start-doing-these-3-things-right-now-2021-07-28 | nan | nan | The market's recent shakiness might portend a crash in the near future. Or, it might not. There's no way to be certain, and sitting on the edge of your seat in the meantime is a surefire way to feel bad while also missing out on gains.
Rather than worrying and remaining passive about the prospect of a market crash, keen investors take action to control their portfolio's future. While there's no way to completely avoid the negative impact of a correction or collapse, using the three tactics I'll discuss today will ensure that you can treat these events as the opportunities that they are.
Image source: Getty Images.
1. Reframe your perceptions
Let's assume that you're an investor who is investing for the long term to prepare for retirement or to build wealth. You probably buy stocks somewhat regularly. And when you pick a stock to buy, you likely take a peek at its recent performance to get a feeling for its value.
If the above sounds something like you, there's a lot you could gain from a market crash. However, you'll need to think about crashes differently. It's impossible to find the silver lining amid a kerfuffle if you're too focused on the chaos.
When you consider a stock to buy, you're making a judgment about the prospect of its price increasing in the future, based on the characteristics of the business and the industry where it competes. If you believe that it'll grow, you then consider whether that future growth is worth the current price. If everything checks out, you might buy the stock.
So why wouldn't you want to buy a stock that you're confident in, if it's on sale as a result of a crash? Crashes are marketwide phenomena that are external to the value of any single company. Once you're confident about the future prospects of a company, getting a large discount for its stock on the day of the crash is practically a gift.
2. Make a watchlist that's a wish list
Now that you're ready to recognize a plummeting market as a chance to buy the stocks you want on the cheap, you'll need to make a shopping list for the day of the sale, should it come.
I divide my "buy after a crash" watch list into two categories: Timeless stocks, and growth stocks. The timeless stocks include companies like Abbott Laboratories (NYSE: ABT), which pay a dividend and are rarely available at a big discount. If the market collapses, the dividend yield of stocks like Abbott will rise, meaning that it's a juicier purchase than usual.
Plus, these stalwarts have the added bonus of an extremely broad base of revenue. In the case of Abbott Labs, that revenue is derived from products that are always going to be in demand, like diagnostic tests and surgical hardware. So, if the market's slide is being caused by some kind of economic or political event, the timeless stocks are still pretty safe in the long run.
My post-crash growth stocks watch list includes companies like Novavax (NASDAQ: NVAX), which tend to be somewhat overpriced in normal times as a result of overly optimistic estimations of their future revenue. Thanks to Novavax's soon-to-be-commercialized coronavirus vaccine, the company will still see a healthy level of demand even if economic conditions deteriorate -- but not reliably for many years, as with Abbott Labs.
The trick is that a market correction could bring outlandish guesses about Novavax's future revenue back into the realm of the possible. Therefore, keeping it on my watch list ensures that I'll get a chance to buy it at an appropriate price rather than a hype-driven high price. Of course, betting on Novavax after a crash is riskier than betting on Abbott Laboratories. Because Novavax is still working on getting its first product out the door and it doesn't pay a dividend, its stock might take longer to rebound to its prior level.
3. Build a stockpile of cash
Once you have your wish list ready, you'll need to have enough cash on hand to actually buy a significant amount of stock when it's still cheap. It's perfectly acceptable to spend several months stashing away whatever you can to prepare.
The amount you keep is up to you, but it probably shouldn't be a huge percentage of your portfolio's total value. Keeping cash on the sidelines in anticipation of a buying opportunity is a good practice, but if you reserve too much for too long, it'll eat into your portfolio's growth. I try not to keep more than 10% of my portfolio's value in cash at any given time, but if you're a more aggressive investor that might be too much.
After you've accumulated your dry powder, all that's left to do is live your life as normal. If a crash does occur, you'll be fully prepared to get the most out of it when the time is right.
On the other hand, if there isn't a crash, you can sleep soundly at night, knowing that you'll be ready if opportunity knocks.
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Alex Carchidi owns shares of 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. | The timeless stocks include companies like Abbott Laboratories (NYSE: ABT), which pay a dividend and are rarely available at a big discount. While there's no way to completely avoid the negative impact of a correction or collapse, using the three tactics I'll discuss today will ensure that you can treat these events as the opportunities that they are. My post-crash growth stocks watch list includes companies like Novavax (NASDAQ: NVAX), which tend to be somewhat overpriced in normal times as a result of overly optimistic estimations of their future revenue. | The timeless stocks include companies like Abbott Laboratories (NYSE: ABT), which pay a dividend and are rarely available at a big discount. I divide my "buy after a crash" watch list into two categories: Timeless stocks, and growth stocks. My post-crash growth stocks watch list includes companies like Novavax (NASDAQ: NVAX), which tend to be somewhat overpriced in normal times as a result of overly optimistic estimations of their future revenue. | The timeless stocks include companies like Abbott Laboratories (NYSE: ABT), which pay a dividend and are rarely available at a big discount. Make a watchlist that's a wish list Now that you're ready to recognize a plummeting market as a chance to buy the stocks you want on the cheap, you'll need to make a shopping list for the day of the sale, should it come. I divide my "buy after a crash" watch list into two categories: Timeless stocks, and growth stocks. | The timeless stocks include companies like Abbott Laboratories (NYSE: ABT), which pay a dividend and are rarely available at a big discount. I divide my "buy after a crash" watch list into two categories: Timeless stocks, and growth stocks. That's right -- they think these 10 stocks are even better buys. |
32038.0 | 2021-07-27 00:00:00 UTC | Dow Jones Falls Below 35,000 on Boeing and Tech Stock Sell-Offs, Delta Variant Worries | ABT | https://www.nasdaq.com/articles/dow-jones-falls-below-35000-on-boeing-and-tech-stock-sell-offs-delta-variant-worries-2021 | nan | nan | So much for another record. The Dow Jones Industrial Average (DJINDICES: ^DJI) was down 232 points as of 2:03 p.m. EDT on Tuesday, back below 35,000 just one trading session after hitting a record high. Shares of beleaguered semiconductor maker Intel (NASDAQ: INTC) were down almost 4%, with fellow tech giants Salesforce.com (NYSE: CRM) down almost 2%, and Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) off 1.5% or more ahead of earnings reports after market close this afternoon.
Shares of aerospace giant Boeing (NYSE: BA) were also off more than 2% today, joining broader stock market declines as investors once again weigh the implications of the delta coronavirus variant taking a bite out of what has been a very strong global economic resurgence.
Vaccination rates are slowing, while cases of COVID-19 from the highly transmissible delta variant surge. Image source: Getty Images.
Tech giants tumble ahead of anticipated earnings, coronavirus worries
Tech stocks are in a bit of a sell-off, with the Technology Select Sector SPDR ETF (NYSEMKT: XLK), which tracks all of the tech stocks in the S&P 500 Index, down 2% at this writing and the worst-performing sector in the index. Looking at the Dow Jones' tech components, they're all trading lower today.
Intel's post-earnings sell-off continues. Since it reported earnings after market close on July 22, shares are down more than 6%. Today's move lower for Intel is likely tied to this afternoon's earnings release from AMD (NASDAQ: AMD), which is expected to report continued market share gains from Intel.
For Apple and Microsoft, which will report after the market closes today, their declines are likely tied to today's broader market declines, with both companies expected to deliver record results. The NASDAQ Composite and Russell 2000 indexes are both down nearly 2% at this writing, as investors continue to weigh the risks of the ongoing surge in COVID cases due to the delta variant potentially upending a global economic recovery.
3M beats expectations, raises full-year outlook
3M (NYSE: MMM) reported second-quarter results before trading opened today, with revenue up 28% to $8.9 billion, and earnings up 15% to $2.25 per share. For the first six months of the fiscal year, earnings are up more than 19% to $5.36 per share.
Based on these strong results, and expectations that business will continue to be strong for the rest of the year, management boosted its full-year outlook. It expects full-year sales will grow 8.5% at the midpoint of guidance, with full-year EPS of $9.90 at the midpoint. At the end of the prior quarter, management was expecting sales to grow 6.5% for the full year, and EPS of $9.45.
Healthcare execs cautiously optimistic about the delta variant
The delta variant is a significant threat to the unvaccinated, as well as some higher-risk individuals who have been vaccinated, according to healthcare experts. However, executives of pharma and medical device companies Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG), and healthcare (and Dow Jones component) Johnson & Johnson (NYSE: JNJ) all had generally positive things to say about the limited risk the variant is likely to have for their prospects.
Two things are particularly compelling about the comments from these three companies' CEOs. First, they're all leaders of healthcare businesses with expertise that should make them better at measuring the delta variant's risk than leaders of other companies are. Second, none of these companies count on a coronavirus therapy or vaccine for a major portion of their business. (Johnson & Johnson's coronavirus vaccine is a tiny contributor to its overall business.)
Put it together, and that's helpful for investors more broadly. It's not the same as saying that we shouldn't expect a market crash, or that there will be a perfectly healthy and uninterrupted economic recovery, but it is helpful in factoring in the near-term risks of the delta variant.
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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 Intuitive Surgical. The Motley Fool owns shares of and recommends Advanced Micro Devices, Apple, Intuitive Surgical, Microsoft, and Salesforce.com. The Motley Fool recommends 3M, Intel, and Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical, long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2022 $600 calls on Intuitive Surgical, short January 2023 $57.50 puts on Intel, 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. | However, executives of pharma and medical device companies Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG), and healthcare (and Dow Jones component) Johnson & Johnson (NYSE: JNJ) all had generally positive things to say about the limited risk the variant is likely to have for their prospects. Shares of aerospace giant Boeing (NYSE: BA) were also off more than 2% today, joining broader stock market declines as investors once again weigh the implications of the delta coronavirus variant taking a bite out of what has been a very strong global economic resurgence. The NASDAQ Composite and Russell 2000 indexes are both down nearly 2% at this writing, as investors continue to weigh the risks of the ongoing surge in COVID cases due to the delta variant potentially upending a global economic recovery. | However, executives of pharma and medical device companies Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG), and healthcare (and Dow Jones component) Johnson & Johnson (NYSE: JNJ) all had generally positive things to say about the limited risk the variant is likely to have for their prospects. For Apple and Microsoft, which will report after the market closes today, their declines are likely tied to today's broader market declines, with both companies expected to deliver record results. The Motley Fool recommends 3M, Intel, and Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical, long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2022 $600 calls on Intuitive Surgical, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. | However, executives of pharma and medical device companies Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG), and healthcare (and Dow Jones component) Johnson & Johnson (NYSE: JNJ) all had generally positive things to say about the limited risk the variant is likely to have for their prospects. Shares of beleaguered semiconductor maker Intel (NASDAQ: INTC) were down almost 4%, with fellow tech giants Salesforce.com (NYSE: CRM) down almost 2%, and Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) off 1.5% or more ahead of earnings reports after market close this afternoon. Shares of aerospace giant Boeing (NYSE: BA) were also off more than 2% today, joining broader stock market declines as investors once again weigh the implications of the delta coronavirus variant taking a bite out of what has been a very strong global economic resurgence. | However, executives of pharma and medical device companies Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG), and healthcare (and Dow Jones component) Johnson & Johnson (NYSE: JNJ) all had generally positive things to say about the limited risk the variant is likely to have for their prospects. For Apple and Microsoft, which will report after the market closes today, their declines are likely tied to today's broader market declines, with both companies expected to deliver record results. The Motley Fool owns shares of and recommends Advanced Micro Devices, Apple, Intuitive Surgical, Microsoft, and Salesforce.com. |
32039.0 | 2021-07-27 00:00:00 UTC | Worries About the Delta Variant Could Be Overdone Based on Clues From These Healthcare Giants | ABT | https://www.nasdaq.com/articles/worries-about-the-delta-variant-could-be-overdone-based-on-clues-from-these-healthcare | nan | nan | Seemingly everywhere you turn these days there's bad news about the coronavirus delta variant. Centers for Disease Control and Prevention (CDC) director Rochelle Walensky recently said the delta variant is "one of the most infectious respiratory viruses we know of." The highly contagious strain is the culprit behind increasing COVID-19 cases across the U.S. and much of the world.
But is the news really not as bad as it seems? That could be the case based on the views of several executives who are plugged into what's going on with COVID-19 dynamics. Worries about the delta variant could be overdone based on clues from three healthcare giants.
Image source: Getty Images.
Optimism across the board
We're in the middle of corporate earnings season right now. The most important things to pay attention to often aren't the companies' quarterly results but instead what their management teams are saying about the future. So far in this earnings season, there seems to be a similar outlook when it comes to COVID-19 and the delta variant.
Johnson & Johnson (NYSE: JNJ) CFO Joe Wolk said in his company's second-quarter conference call that J&J's base business is expected to "remain strong" throughout this year and is poised for growth in 2022 and beyond. He noted, "We're in a much better position to handle [the] pandemic than we were in March of last year."
Wolk's optimism was shared by J&J worldwide chairman of medical devices Ashley McEvoy. She stated that the company is "encouraged by, quite frankly, several things, the ability that hospitals can manage through capacity and surges and labor, as well as, obviously, the vaccination efforts around the world."
Abbott (NYSE: ABT) CEO Robert Ford was asked about the potential impact of coronavirus variants in his company's Q2 call as well. He replied, "I don't think that you'll see the same -- at least we're not seeing the same kind of impact in terms of hospitals shutting procedures down, stopping testing, etc. I think it's a very different situation where we are this year versus where we are last year."
Like Johnson & Johnson, Intuitive Surgical (NASDAQ: ISRG) increased its full-year 2021 guidance. Senior vice president of finance Jamie Samath said in the robotic surgical systems leader's Q2 call that this improved outlook assumes that "the vaccines are effective against any new COVID-19 variants and the vaccine rollouts in OUS [outside the U.S.] markets continue as currently expected by governments around the world."
Common caveats
All three of these companies experienced significant negative impacts on parts of their businesses in 2020 due to the pandemic. You can bet that their executives are paying close attention to what's going on with the delta variant. And so far, they don't seem to be worried. However, there were some common caveats to that optimism.
Johnson & Johnson's McEvoy said that the company is "seeing the light at the end of the COVID-19 tunnel." However, she also quickly added that it remains "a very fluid situation."
Abbott CFO Robert Funck acknowledged that "forecasting COVID is quite challenging." He noted that the uncertainties related to variants and vaccination rates were contributing factors to why his company's guidance range for full-year 2021 was relatively wide.
Intuitive Surgical CFO Marshall Mohr echoed the cautious perspective. Mohr said, "To the extent that hospitalizations expand significantly due to COVID and its variants, like currently being experienced in parts of the world, it could negatively impact da Vinci procedures."
Impact for investors
All three of these healthcare stocks will benefit if the concerns about the delta variant are indeed overdone. That's especially the case for Intuitive Surgical. Any delays in surgical procedures involving its da Vinci robotic surgical systems would curtail the company's strong recovery from 2020.
Johnson & Johnson could see higher sales of its COVID-19 vaccine if there's a sustained surge in outbreaks caused by variants. Abbott would probably also generate more revenue from its COVID-19 tests. But both companies would experience headwinds in other areas of their businesses from a worsening pandemic.
If there were serious reasons to worry about how the delta variant might impact the economy, we probably would have heard more negativity from Abbott, Intuitive Surgical, and J&J. That wasn't the case, however. And that could provide a big hint that the stock market could plow forward without a huge impact from the highly contagious variant.
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Keith Speights owns shares of Intuitive Surgical. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 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. | Abbott (NYSE: ABT) CEO Robert Ford was asked about the potential impact of coronavirus variants in his company's Q2 call as well. Centers for Disease Control and Prevention (CDC) director Rochelle Walensky recently said the delta variant is "one of the most infectious respiratory viruses we know of." She stated that the company is "encouraged by, quite frankly, several things, the ability that hospitals can manage through capacity and surges and labor, as well as, obviously, the vaccination efforts around the world." | Abbott (NYSE: ABT) CEO Robert Ford was asked about the potential impact of coronavirus variants in his company's Q2 call as well. Johnson & Johnson (NYSE: JNJ) CFO Joe Wolk said in his company's second-quarter conference call that J&J's base business is expected to "remain strong" throughout this year and is poised for growth in 2022 and beyond. Like Johnson & Johnson, Intuitive Surgical (NASDAQ: ISRG) increased its full-year 2021 guidance. | Abbott (NYSE: ABT) CEO Robert Ford was asked about the potential impact of coronavirus variants in his company's Q2 call as well. Johnson & Johnson (NYSE: JNJ) CFO Joe Wolk said in his company's second-quarter conference call that J&J's base business is expected to "remain strong" throughout this year and is poised for growth in 2022 and beyond. If there were serious reasons to worry about how the delta variant might impact the economy, we probably would have heard more negativity from Abbott, Intuitive Surgical, and J&J. | Abbott (NYSE: ABT) CEO Robert Ford was asked about the potential impact of coronavirus variants in his company's Q2 call as well. That's especially the case for Intuitive Surgical. If there were serious reasons to worry about how the delta variant might impact the economy, we probably would have heard more negativity from Abbott, Intuitive Surgical, and J&J. |
32040.0 | 2021-07-26 00:00:00 UTC | Monday's ETF with Unusual Volume: IHI | ABT | https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-ihi-2021-07-26 | nan | nan | The iShares U.S. Medical Devices ETF is seeing unusually high volume in afternoon trading Monday, with over 338,000 shares traded versus three month average volume of about 78,000. Shares of IHI were down about 1% on the day.
Components of that ETF with the highest volume on Monday were Abbott Laboratories, trading off about 1.3% with over 1.9 million shares changing hands so far this session, and Boston Scientific, down about 0.5% on volume of over 1.8 million shares. Intersect is the component faring the best Monday, higher by about 5.8% on the day, while Inari Medical is lagging other components of the iShares U.S. Medical Devices ETF, trading lower by about 3.6%.
VIDEO: Monday's ETF with Unusual Volume: IHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iShares U.S. Medical Devices ETF is seeing unusually high volume in afternoon trading Monday, with over 338,000 shares traded versus three month average volume of about 78,000. Components of that ETF with the highest volume on Monday were Abbott Laboratories, trading off about 1.3% with over 1.9 million shares changing hands so far this session, and Boston Scientific, down about 0.5% on volume of over 1.8 million shares. Intersect is the component faring the best Monday, higher by about 5.8% on the day, while Inari Medical is lagging other components of the iShares U.S. Medical Devices ETF, trading lower by about 3.6%. | The iShares U.S. Medical Devices ETF is seeing unusually high volume in afternoon trading Monday, with over 338,000 shares traded versus three month average volume of about 78,000. Intersect is the component faring the best Monday, higher by about 5.8% on the day, while Inari Medical is lagging other components of the iShares U.S. Medical Devices ETF, trading lower by about 3.6%. VIDEO: Monday's ETF with Unusual Volume: IHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iShares U.S. Medical Devices ETF is seeing unusually high volume in afternoon trading Monday, with over 338,000 shares traded versus three month average volume of about 78,000. Components of that ETF with the highest volume on Monday were Abbott Laboratories, trading off about 1.3% with over 1.9 million shares changing hands so far this session, and Boston Scientific, down about 0.5% on volume of over 1.8 million shares. Intersect is the component faring the best Monday, higher by about 5.8% on the day, while Inari Medical is lagging other components of the iShares U.S. Medical Devices ETF, trading lower by about 3.6%. | Components of that ETF with the highest volume on Monday were Abbott Laboratories, trading off about 1.3% with over 1.9 million shares changing hands so far this session, and Boston Scientific, down about 0.5% on volume of over 1.8 million shares. Intersect is the component faring the best Monday, higher by about 5.8% on the day, while Inari Medical is lagging other components of the iShares U.S. Medical Devices ETF, trading lower by about 3.6%. VIDEO: Monday's ETF with Unusual Volume: IHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32041.0 | 2021-07-26 00:00:00 UTC | The Smartest Dividend Aristocrats to Buy With $500 Right Now | ABT | https://www.nasdaq.com/articles/the-smartest-dividend-aristocrats-to-buy-with-%24500-right-now-2021-07-26 | nan | nan | Aristocracy isn't all it's cracked up to be. You'd think that stocks that are Dividend Aristocrats -- members of the S&P 500 with at least 25 consecutive years of dividend increases -- would by default have really attractive dividends. Many of them don't. And quite a few of those with relatively puny dividend yields haven't delivered impressive growth, either.
However, there are stocks in this elite group that provide either a juicy dividend, solid growth prospects, or both. You don't even need a lot of upfront money to invest in these promising dividend stocks. Here are the three smartest Dividend Aristocrats to buy with $500 right now, in my opinion.
Image source: Getty Images.
AbbVie
You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). Its dividend yield currently stands at 4.42%. The drugmaker is only one dividend hike away from becoming a Dividend King -- the highest level of dividend royalty reserved for S&P 500 members with 50 or more consecutive years of dividend increases.
AbbVie is a spin-off from another Dividend Aristocrat, Abbott Labs. Since the two companies separated in 2013, AbbVie has increased its dividend by a whopping 225%.
There's one glaring issue with AbbVie, though. In 2023, sales for the company's best-selling drug, Humira, will inevitably begin to decline with the launches of biosimilar rivals in the U.S. market. AbbVie knows that this is going to pull down its overall revenue.
The good news is that the decline should only be temporary. AbbVie predicts that it will return to growth in 2024 after one down year. And over the rest of the decade, the company expects robust growth as sales for its other products increase.
Lowe's
Lowe's (NYSE: LOW) is one of those Dividend Aristocrats I mentioned earlier that doesn't provide a dividend that's going to fire up many investors. Its yield currently stands at 1.64% -- not horrible but not awe-inspiring, either.
However, Lowe's makes up for its modest dividend with not-so-modest growth. Last year, the home improvement retailer's shares trounced the market, soaring 34%. So far in 2021, Lowe's stock is again beating the market with a gain of 24%.
Look for this momentum to continue. The current housing boom isn't over. Even though interest rates will rise somewhat, they'll likely still be near historic lows. The work-from-home trend won't disappear. As people move from apartments in big cities to their own houses in less expensive locations, it should lead to more home improvement projects.
Wall Street analysts expect that Lowe's will deliver average annual earnings growth of more than 19% over the next five years. That's well above the earnings growth for the company over the last five years, a period when Lowe's stock jumped nearly 150%.
PepsiCo
Like AbbVie, PepsiCo (NASDAQ: PEP) is getting close to becoming a Dividend King. The company recently announced its 49th consecutive annual dividend increase. Pepsi's yield currently stands at 2.77%, which is a lot better than many of its fellow Dividend Aristocrats offer.
The consumer packaged goods giant also continues to deliver strong growth. Pepsi handily beat Wall Street analysts' estimates with its second-quarter results. Its overall organic revenue jumped 13% year over year with earnings per share soaring 27%.
Perhaps the most striking thing about Pepsi is the resilience of its business. The company has successfully navigated major changes in consumer preferences in the beverage and snacks markets in recent years as well as a global pandemic.
Analysts project around 9% average annual earnings growth for Pepsi over the next five years, much higher than the company's growth rate over the last few years. With an attractive dividend combined with solid growth prospects, I think that Pepsi stock could deliver market-beating total returns over the next decade.
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Keith Speights owns shares of AbbVie and PepsiCo. The Motley Fool recommends Lowes. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As people move from apartments in big cities to their own houses in less expensive locations, it should lead to more home improvement projects. The company has successfully navigated major changes in consumer preferences in the beverage and snacks markets in recent years as well as a global pandemic. With an attractive dividend combined with solid growth prospects, I think that Pepsi stock could deliver market-beating total returns over the next decade. | Wall Street analysts expect that Lowe's will deliver average annual earnings growth of more than 19% over the next five years. Its overall organic revenue jumped 13% year over year with earnings per share soaring 27%. Analysts project around 9% average annual earnings growth for Pepsi over the next five years, much higher than the company's growth rate over the last few years. | You'd think that stocks that are Dividend Aristocrats -- members of the S&P 500 with at least 25 consecutive years of dividend increases -- would by default have really attractive dividends. The drugmaker is only one dividend hike away from becoming a Dividend King -- the highest level of dividend royalty reserved for S&P 500 members with 50 or more consecutive years of dividend increases. Lowe's Lowe's (NYSE: LOW) is one of those Dividend Aristocrats I mentioned earlier that doesn't provide a dividend that's going to fire up many investors. | Many of them don't. AbbVie You won't find too many stocks that offer a more attractive dividend than AbbVie (NYSE: ABBV). Lowe's Lowe's (NYSE: LOW) is one of those Dividend Aristocrats I mentioned earlier that doesn't provide a dividend that's going to fire up many investors. |
32042.0 | 2021-07-23 00:00:00 UTC | 4 Medical Diagnostic Stocks To Watch Next Week | ABT | https://www.nasdaq.com/articles/4-medical-diagnostic-stocks-to-watch-next-week-2021-07-23 | nan | nan | Are These The Best Medical Diagnostic Stocks To Buy Right Now?
Medical diagnostic stocks are a branch of health care stocks in the stock market. As the name suggests, these are companies that specialize in diagnostic testing and equipment. The importance of a good diagnosis should not be understated. Accurate and efficient diagnostic procedures are essential for doctors to create a proper treatment plan that would fully benefit the patient. A fatal disease can be detected early with proper diagnostic testing and this could potentially save millions of lives.
We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. For instance, Quidel which specializes in rapid diagnostic testing solutions would run COVID-19 testing programs to support the reopening of schools. It would even be responsible for staffing test locations, coordinating sample collection, running the tests, and ultimately reporting results to the Public Health departments. Given the importance of this industry right now, some would argue that it is a good time to add medical diagnostic stocks to your portfolio. If you share the same sentiment, here are 4 names to watch in the stock market today.
Top Medical Diagnostic Stocks To Watch
Laboratory Corp. of America Holdings (NYSE: LH)
Co-Diagnostics Inc (NASDAQ: CODX)
Thermo Fisher Scientific Inc (NYSE: TMO)
Quest Diagnostics Inc (NYSE: DGX)
Laboratory Corp. of America Holdings
Firstly, we have the healthcare diagnostic company, Laboratory Corp. Put simply, it is a life sciences company that guides patient care, providing clinical laboratory and end-to-end drug development services. The company offers a variety of frequently requested testing through a network of primary and specialty laboratories across the United States. LH stock has been on a bullish run this year, showing gains of over 37%.
Earlier this month, Laboratory Corp announced the availability of therascreen KRAS PCR Mutation Analysis. This is a companion diagnostic to identify patients with non-small cell lung cancer who are eligible for treatment with LUMAKRAS™ (sotorasib), a new treatment option developed by Amgen (NASDAQ: AMGN). With this, physicians will have immediate access to ensure every patient who may benefit from sotarasib is appropriately identified and treated.
Besides that, the company is also helping to sequence thousands of complete coronavirus genomes each week from positive patient samples. It is utilizing Molecular Loop Biosciences, Inc’s SARS-CoV-2 Research Sequencing Panel to carry out the sequencing. This initiative is part of a U.S. Centers for Disease Control and Prevention (CDC) effort to track the spread of SARS-CoV-2 variants throughout the country. With so many recent developments, could we expect strong second-quarter financial results next week? If you think so, then LH stock could be worth adding to your watchlist right now.
Source: TD Ameritrade TOS
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Co-Diagnostics Inc
Following that, we have the molecular diagnostics company Co-Diagnostics. For starters, it is a company that specializes in diagnostic technology. Its reagents are used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules. Not to mention, it also sells diagnostics equipment from other manufacturers as self-contained lab systems (MDx device).
CODX stock soared by over 21% on Thursday. Let us see what could be the catalyst for this movement. Yesterday, the company announced that it has added to its suite of intellectual property protection. It was awarded a patent from the Republic of Korea’s Intellectual Property Office for the Company’s CoPrimer™ technology. Co-Diagnostics also stated that most of its tests sold have been to repeat customers which indicates that its customers have come to depend on the quality of its CoPrimer assays. All these further validate the uniqueness and versatility of the CoPrimer platform.
It is noteworthy that among the various diagnostic products using CoPrimer technology to have received regulatory clearance is the Logix Smart™ COVID-19 Test kit. In fact, the company has sold millions of the kits since the onset of the pandemic. It appears that it is effective in detecting all known strains which include the Delta variant of SARS-CoV-2. Now, it does seem like an exciting time for the company with its recent validation. So, would you bet on CODX stock to be the next big diagnostic stock?
Source: TD Ameritrade TOS
[Read More] Good Stocks To Invest In Today? 4 5G Stocks To Watch
Thermo Fisher Scientific Inc
Another top medical diagnostic company in thestock market todaywould be Thermo Fisher. It offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services. TMO stock has been trading sideways for most of the year. That said, we are starting to see a bullish price action over the past month.
Recently, Thermo Fisher announced an expansion of its collaboration with My Green Lab. Thermo has set a goal to obtain Accountability, Consistency, and Transparency (ACT) labeling for its entire cold temperature storage portfolio by the end of 2021. The company expects to ACT label more than 1,200 additional SKUs. This would enable research, pharmaceutical, and clinical laboratories to achieve their sustainability objectives. Certainly, this is a commendable commitment by the company as environmental issues have been gaining traction lately.
Furthermore, it has opened a new cGMP plasmid DNA manufacturing facility in Carlsbad. This would enable it to meet the rapidly growing demand for plasmid DNA-based therapies and vital mRNA-based vaccines. Also, it addresses the issue of demand outpacing supply for commercial plasmid DNA globally. All things considered, would you be watching TMO stock?
Source: TD Ameritrade TOS
[Read More] 4 Robotics Stocks To Watch Amid Rising Shifts To Automation
Quest Diagnostics Inc
To sum up the list, we have Quest Diagnostics. Essentially, it is a provider of diagnostic information services. Its Diagnostic Information Services business develops and delivers diagnostic testing information and services. Meanwhile, its Diagnostic Solutions group includes its risk assessment services business, which offers solutions for insurers, and its healthcare information technology businesses.
On Thursday, Quest announced its second-quarter earnings report. The company showed a faster than expected recovery of its core business. It reported revenue of $2.55 billion, up 39.5% year-over-year. Also, its diluted earnings per share came in at $4.96, representing an increase of a whopping 264.2%. This strong financial outlook puts the company in a strong position to continue its momentum for the remainder of 2021.
The company also went into collaboration with CLX Health to provide access to COVID-19 molecular diagnostic testing. This aims at people who are seeking to attend live events nationwide or travel from the U.S. to destinations around the world. Given these positive developments for the company, would DGX stock be a top diagnostic stock to watch now?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. Put simply, it is a life sciences company that guides patient care, providing clinical laboratory and end-to-end drug development services. Thermo has set a goal to obtain Accountability, Consistency, and Transparency (ACT) labeling for its entire cold temperature storage portfolio by the end of 2021. | We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. Top Medical Diagnostic Stocks To Watch Laboratory Corp. of America Holdings (NYSE: LH) Co-Diagnostics Inc (NASDAQ: CODX) Thermo Fisher Scientific Inc (NYSE: TMO) Quest Diagnostics Inc (NYSE: DGX) Laboratory Corp. of America Holdings Firstly, we have the healthcare diagnostic company, Laboratory Corp. 4 5G Stocks To Watch Thermo Fisher Scientific Inc Another top medical diagnostic company in thestock market todaywould be Thermo Fisher. | We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. Medical diagnostic stocks are a branch of health care stocks in the stock market. Top Medical Diagnostic Stocks To Watch Laboratory Corp. of America Holdings (NYSE: LH) Co-Diagnostics Inc (NASDAQ: CODX) Thermo Fisher Scientific Inc (NYSE: TMO) Quest Diagnostics Inc (NYSE: DGX) Laboratory Corp. of America Holdings Firstly, we have the healthcare diagnostic company, Laboratory Corp. | We can see companies such as Abbott Laboratories (NYSE: ABT) and Quidel Corporation (NASDAQ: QDEL) playing an important role in combating the global pandemic. Medical diagnostic stocks are a branch of health care stocks in the stock market. On Thursday, Quest announced its second-quarter earnings report. |
32043.0 | 2021-07-23 00:00:00 UTC | Validea Martin Zweig Strategy Daily Upgrade Report - 7/23/2021 | ABT | https://www.nasdaq.com/articles/validea-martin-zweig-strategy-daily-upgrade-report-7-23-2021-2021-07-23 | nan | nan | The following are today's upgrades for 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.
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 changed from 77% to 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: 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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: 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: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of ABBOTT LABORATORIES
Full Guru Analysis for ABT
Full Factor Report for ABT
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. | 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 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. 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 ABBOTT LABORATORIES Full Guru Analysis for ABT Full Factor Report for ABT 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. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig. | Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT Full Factor Report for ABT 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. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. | 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 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. The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig. |
32044.0 | 2021-07-23 00:00:00 UTC | Abbott’s Q2 Earnings Rise 105%, Beat Estimates | ABT | https://www.nasdaq.com/articles/abbotts-q2-earnings-rise-105-beat-estimates-2021-07-23 | nan | nan | Multinational medical devices and healthcare firm Abbott Labs (ABT) has reported solid second-quarter 2021 financial results. The Illinois-based company offers nutritional products, branded generic medicines, diagnostics and medical devices.
Adjusted earnings per share (EPS) increased 105.3% year-over-year to $1.17, surpassing the Street’s estimates of $1.02. Quarterly sales grew 39.5% year-over-year to $10.2 billion, beating analysts’ expectations of $9.7 billion.
Nutrition sales increased nearly 12% to $2.1 billion; Diagnostics sales rose 62.8% to $3.2 billion; Established Pharmaceuticals sales climbed 16.4% to $1.2 billion; and Medical Devices sales surged 51.3% to $3.7 billion.
The President and CEO of Abbott, Robert B. Ford, said, “We're achieving very strong growth across our portfolio.”
For full-year 2021, the company expects adjusted EPS to range from $4.30 to $4.50. (See Abbott stock chart on TipRanks)
On July 12, Wells Fargo analyst Larry Biegelsen reiterated a Buy rating on the stock and raised the price target from $125 to $135 (14.2% upside potential). The analyst expects Abbott’s base business to improve sequentially in each quarter of 2021, compared to the respective quarter in 2019.
Overall, the stock has a Strong Buy consensus based on 12 Buys, 1 Hold and 1 Sell. The average Abbott Labs price target of $126.92 implies 7.3% upside potential. The company’s shares have gained 17.3% over the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Multinational medical devices and healthcare firm Abbott Labs (ABT) has reported solid second-quarter 2021 financial results. The Illinois-based company offers nutritional products, branded generic medicines, diagnostics and medical devices. The President and CEO of Abbott, Robert B. Ford, said, “We're achieving very strong growth across our portfolio.” For full-year 2021, the company expects adjusted EPS to range from $4.30 to $4.50. | Multinational medical devices and healthcare firm Abbott Labs (ABT) has reported solid second-quarter 2021 financial results. Quarterly sales grew 39.5% year-over-year to $10.2 billion, beating analysts’ expectations of $9.7 billion. Nutrition sales increased nearly 12% to $2.1 billion; Diagnostics sales rose 62.8% to $3.2 billion; Established Pharmaceuticals sales climbed 16.4% to $1.2 billion; and Medical Devices sales surged 51.3% to $3.7 billion. | Multinational medical devices and healthcare firm Abbott Labs (ABT) has reported solid second-quarter 2021 financial results. Nutrition sales increased nearly 12% to $2.1 billion; Diagnostics sales rose 62.8% to $3.2 billion; Established Pharmaceuticals sales climbed 16.4% to $1.2 billion; and Medical Devices sales surged 51.3% to $3.7 billion. (See Abbott stock chart on TipRanks) On July 12, Wells Fargo analyst Larry Biegelsen reiterated a Buy rating on the stock and raised the price target from $125 to $135 (14.2% upside potential). | Multinational medical devices and healthcare firm Abbott Labs (ABT) has reported solid second-quarter 2021 financial results. Adjusted earnings per share (EPS) increased 105.3% year-over-year to $1.17, surpassing the Street’s estimates of $1.02. Quarterly sales grew 39.5% year-over-year to $10.2 billion, beating analysts’ expectations of $9.7 billion. |
32045.0 | 2021-07-22 00:00:00 UTC | The Next Nano-X, but With Less Risk? | ABT | https://www.nasdaq.com/articles/the-next-nano-x-but-with-less-risk-2021-07-22 | nan | nan | Hyperfine is looking to head to public markets with the lofty goal of disrupting the magnetic resonance imaging (MRI) market with the first portable MRI machine approved by the Food and Drug Administration. In this episode of Industry Focus: Wildcard, join Brian Feroldi and Emily Flippen as they break down Hyperfine's road show and unpack this recent target for a special purpose acquisition company (SPAC).
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on July 14, 2021.
Emily Flippen: Welcome to Industry Focus. Today is Wednesday, July 14, and I'm the host of this Wildcard episode, Emily Flippen. Today, I'm joined by The Motley Fool superior superstar sultan of specialty SPAC situations, Brian Feroldi. We're going to be talking about another interesting healthcare business that is SPAC-ing itself to public markets: That's Hyperfine. Hey, Brian.
Brian Feroldi: Hey, Emily, thanks for having me. I think this is going to be a really fun company to talk about. I learned about this company just a few weeks ago, pitched it to you, and I think you think it's interesting too.
Flippen: I definitely think it's interesting. And the name, Hyperfine, I feel like it does set the bar high. Is this really a hyper-fine business? I guess we'll find out. I think it is. It's an interesting business. It plays off of a lot of the conversations that not only you've been having, but we've been having on Industry Focus about small-cap disruptive healthcare businesses. Hyperfine and its combination, which I believe is HealthCor Catalio Acquisition Corp., which is the SPAC that's bringing it public, will be a really interesting business to talk about.
Feroldi: Yeah, the ticker symbol for this SPAC right now is HCAQ. Because it's a SPAC, we don't have all the information that we usually get about a company that hasn't been filed yet with the SEC. So basically, we're working off of a presentation at this point, but they did give us enough to pique our interest.
Flippen: Yes, definitely. I love that disclaimer because again, we don't have all the information. In fact, I jokingly said to you, Brian, when prepping for the show, I felt like I was just spewing out everything they said during their road show, which is really all the information we have. You will notice with SPACs or any company, even ones that file S-1s, so even ones that IPO a traditional route, if you just read what management releases, it often makes you really excited. It paints a really pretty picture, and it doesn't necessarily highlight the challenges of the industry. When we talk about the business today, it is always worth acknowledging that, hey, we don't have all the information here and there are probably unseen risks, challenges, or aspects of this business that we just don't know right now.
Feroldi: Yes, we don't have the full financial picture of the company, but the headline for me, which you rightfully pointed out, is this is a business that was co-founded by Dr. Jonathan Rothberg. If that name sounds familiar, he recently took another company that went through the SPAC process earlier this year, called Butterfly Network, that's BFLY. Butterfly, we highlighted on the show, and they were bringing a portable ultrasound to market. This company is very much in that vein.
Flippen: Yes, it's interesting. Rothberg, I went down this rabbit hole with him. I had spent very little time thinking about his involvement in other businesses until scrolling through this presentation, seeing that name, thinking to myself, man, that looks familiar. Why does that name look familiar? He's actually the founder of a start-up accelerator named 4Catalyzer who has a really big broad mission of helping disrupt the medical industry. They want to bring medical disruptors given the resources that they need to succeed and this is one of those businesses that has come through that start-up accelerator. I'm curious, Brian, you spend a lot of time thinking about the missions of businesses. I guess, let's start off with the mission of Hyperfine. It's also combining with another company called Liminal. We'll get to that in a minute. But what does this business do and what's its mission?
Feroldi: Well, to be honest, I found two different mission statements for the company and believe it or not, that is not all that uncommon. I've seen many, many cases where a company has one mission in its S-1, another mission on Glassdoor, and another mission on its About Us page. It always irks me, but I'll say the one that was in the documents that we found. "The mission is to provide affordable and accessible imaging, sensing, and guided robotic intervention to revolutionize healthcare for people around the world." My first thought is, that's a lot of words, just too many words. Cut that down. I really like what they're doing and they say what they're doing in the mission. They're a company that's focusing on imaging technology, sensing technology, and robotic technology to bring this technology to the rest of the world. It gives them plenty of opportunity if they can execute.
Flippen: I had the same reaction when seeing this mission statement. I'm going to give the business a pass on this one because I think what they are trying to do with that mission, I believe that was the one that was used in the road show to investors, is they are trying to split up their business into those three aspects: imaging, sensing, robotic intervention. It does paint a nice picture for what the business sees as its three core, I guess, aspects, where they're going to be investing their money. I will say the mission that they have, I believe you found this on their Investor Relations site, or website, if I remember correctly. I believe that mission, which is "To make MRIs accessible to every patient regardless of income or resources anytime, anywhere," sounds more like a successful mission to me.
Feroldi: Yeah, and to be fair, that is on the Hyperfine page and the SPAC we're talking about is going to be combining really three technologies so that could be the difference between the two, but yeah, I really like that. That's the business that exists today and excites me today. Yeah, it's to make MRIs accessible to every patient regardless of income or resources anytime, anywhere. It seems that they actually have a chance of doing just that. This is a company that has created the world's first FDA approved portable MRI machine. Portable is the key word here. If you go to this company's website, you can see a picture of the device. A really simple way of visualizing this is this basically is R2D2 fatter [laughs] in that kind of vein, it has wheels at the bottom and a clear chamber at the top. What this machine does is it can be wheeled around a healthcare facility, and if somebody needs an MRI, the MRI machine can come to them and a little latch opens up, the patient can be slid into the MRI machine and then you get the MRI reading right from the machine itself, that is then uploaded to the Cloud. Doing so really makes it easy and speeds up the time that a patient can get an MRI, because that is actually a big barrier right now.
On the company's Investor Relations website, it says that the average time to get an MRI to go through the entire process is over 24 hours on average. By using this technology in the facility, they can get that down to 90 minutes and getting that information sooner especially since they're going after the initial use case for this, to check out patients that have had strokes. Time is really of the essence. That could lead to some big-time cost-savings down the road and potentially lives being saved.
Flippen: It's funny you mentioned portable being the keyword there in the description of Hyperfine, and I definitely agree that it is. But where my mind went initially was FDA approved. That's something that we don't see a lot, especially with really small disruptive healthcare companies. Hyperfine's portable MRI machine. That's the imaging part of their business, that mission statement. It was FDA approved in 2020. The approval itself was for things like non-contrast brain MRIs. That again, to your point, being used for things like strokes, brain injury, among a handful of other uses. The machine itself is really focused on the head. Management does have plans to come out with the second version of their imaging machine, which is going to be less R2D2 shaped, or more like a horizontal R2D2. That's going to seek to expand the use cases to things like spines and extremities, post-op care. Right now, they are really focused on strokes, head area, but long-term opportunity here for the entire body.
Feroldi: I think that you just pointed that out. Not only is this device FDA approved and it was FDA approved in 2020, but there are already 46 of these devices that are operational in the United States. For that reason, that gives me confidence as an investor that one, it's already been de-risked because it has some stuff from the FDA; two, see the demand is already there from the bleeding edge of the medical facilities. Importantly, they say that the MRI process is fully reimbursable using the existing codes. That's really important because getting new technologies reimbursed can be a heck of a headache. If you can slide in under the codes that are already in place, that can really speed up commercialization.
Flippen: Yeah, as a consumer, having something that is easily built I think is so important, but even more important is just the cost savings for the hospital. We talk a lot about how disruptive technology needs to make a use case for itself. That compels people to, I'll say leave, I'll caveat that statement in the future, but leave traditional machines to go with the disruptor. But there has to be an economic use case and right now, a typical MRI machine costs more than $2 million, which limits their accessibility. The vast majority of patients -- or vast majority, 22 to 46% of patients -- experienced adverse events just trying to get transport to where the MRI machines are. The idea of the portability and the cheaper costs for the hospitals is a critical aspect in getting those use cases, getting more hospitals to install them. I love how you said there are already 46 of them in use in the United States. That feels small to me, but for something that only got FDA approval in 2020, give credit where credit is due.
Feroldi: Not only that, but when you're going from the product not being on the market to product being up in the market, especially one of this size, manufacturing is a challenge. The fact that they have 46 might not sound like that, but these are, again, fat R2-D2s. When you're just learning how to manage these factories at scale, I'm actually impressed that they've got 46 on the market to say nothing of the fact that selling in the last 18 months has been incredibly challenging for every company that does anything in the hospitals. I guess I'm more impressed by that 46 than you are.
Flippen: I do want to talk about Liminal, because Liminal while not being a big revenue driver for the business, not being any revenue [laughs] for the business right now is interesting. Before I get onto Liminal, I just want to highlight the workflow that exists with a portable MRI machine. I mentioned how many patients experienced those adverse events. Just getting from the point where they decide that they need an MRI to the actual MRI machine. In addition to that, it's also faster. The portable MRI machine reduces workflow time for the hospital itself by over 90%. That takes 26 hours of medical imaging needs to just 90 minutes again. This is going to increase the number of use cases for MRIs and it's not to displace existing MRIs but to add on top of the existing demand.
Feroldi: I think that's a really key point. While this is a disruptive technology, the company has said that we're not out there to displace MRI machines as they exist today. This is meant to augment them, just like you said, speed up that time and really give hospitals the ability to increase the number of patients that can get their MRIs and the speed at which they can do so. Traditional MRI machines will still exist, they'll still be there, but this is really going to help reduce the backlog over time. I could see newer hospital systems transitioning over to this if this technology can work and grow as we expect it to. But that's a really key point: that they won't necessarily be butting heads with the existing MRI machines, they're going to be augmenting it.
Flippen: Hyperfine, as part of this acquisition, is the only one that's coming in with an active FDA improved machine. Liminal is attempting to do some work in non-invasive brain monitoring. But while we talk about the business there, just full awareness that management does not project Liminal from contributing anything in the top line for the foreseeable future. They're much earlier stage than Hyperfine is right now. But with that being said, the Liminal brain-sensing system is a concept. It wants to be the heart monitor of the brain. I love hearing that because heart monitors are just so ubiquitous. The idea of using that for your brain, it sounds odd, but when you think about the fact that right now the only way to get things like pressure sensing in the brain is to drill a literal hole and somebody's head, and insure a pressure sensor bolt. If they succeed, that surely is a big market.
Feroldi: To your point, this is a little device that will be worn on the patient when they're in the hospital to monitor the way that the brain, the pressure inside the brain. Currently, there is no way to do that and it sounds crazy that in 2021 that the state of care is to drill a hole into the head or more likely, probably just not be able to monitor at all. This technology could come to market and it could be disruptive. To your point, while this is an interesting technology, management believes that this won't be generating any revenue for the company until 2023, and that's obviously a best-case scenario, assuming that FDA approval goes through. For me, as a potential investor in this company, I'm basically going to assume that that business goes to zero and doesn't happen at all and I'm just going to focus on the MRI business that exists today.
Flippen: Well, let's do that then. Let's talk about the MRI business, because the market opportunity here is massive. The MRI imaging market today is currently a $23 billion opportunity. I know Hyperfine doesn't see itself limited by that current market opportunity though, because as I mentioned, having a portable, cheaper, more accessible MRI machine expands the use cases beyond what exists today.
Feroldi: But even still, just the market for their imaging machine alone could be potentially worth $23 billion. They hope to get to about $250 million or so in revenue within the next five years. That's their optimistic forecast that they are putting out there. But even if they can do that and at that rate, the company thinks that will be self-funding. If it can get there, what's that? 1% of its current market opportunity. Even if it grows hyper-fast over the next five years, it still won't have kept its existing opportunity. Again, that's just in MRI. If the Liminal system does work out, the company believes that will add another $23 billion into its market potential and it also has a third business that it's developing: a guided robotic intervention to actually take essentially the imaging that is found from its first two products and use that to operate on the patient. The company believes that that is another $23 billion market opportunity. If this company does not work out for investors, it's not because the opportunity isn't huge. It's huge.
Flippen: When you think about how Hyperfine and this combined entity is thinking about monetization, I mentioned at the start of the show that it requires very little up-front investment from the hospital. It's cheaper than the millions of dollars that a typical MRI machine needs. How do they monetize this strategy?
Feroldi: I think that that's one of the most interesting things about this technology. They didn't give us any details about what this is going to cost them to create, so we don't know that yet. However, they did say that they're going to be selling this essentially using a software-as-a-service business model. They are going to charge the hospital just over $7,000 a month, about $7,250 per month, and that will put this device into the hospital. It turns a huge one-time upfront cost to install the MRI machine into a predictable recurring revenue charge for the hospital. But at that price point, given the potential usefulness of the technology, I could see a lot of hospitals saying, "Yes, we will add this to our current workflow, because it's not disrupting what we already have." I really like that. If I was a hospital I could say, "Hey, I can offer this technology, portable MRIs, and just pay about $7,000 per month." That sounds like a score.
Flippen: The downside of not charging this big up-front cost to hospitals is that it takes a while though, for Hyperfine's business to really become cash-flow positive. Management, even at their projections, which are aggressive, I won't say they're wrong. But management's projections will always be aggressive when they're trying to raise equity capital. Management believes that recurring revenue from Hyperfine's portable MRI machine could be around $250 million in 2025 and only then will they be cash-flow breakeven on that level of revenue. Even with management's projections, we're not looking at a business that will generate any free cash flow for the next four to five years.
Feroldi: That makes this a high-risk company for sure. The bet here is that the early adoption that we've seen so far is going to continue and accelerate from here. That's the bet you're making if you're buying this company today. However, on the flip side, while revenue growth is slower, given the nature of the business model, that is some very attractive revenue that they are projecting. They believe that long term, by 2025, if they can reach the scale that they're hoping to get to, they believe that they can produce a gross margin over 70%. Again, that is recurring revenue because the model again is a software-as-a-service company. If that's anywhere close to accurate, I could see this really working out for investors.
Flippen: Although that is basing off, I believe, an image install base of over 2,800 machines, a far cry from the 45 that they have today. But I do love a business that is seeking to do great things in the world. I don't mean that just in the sense of disrupting technology, but this is a product that if it succeeds, genuinely helps patients save money from lower stays, links in their hospital, less risk from transport, while also helping hospitals save money from existing MRI costs, increasing accessibility for MRIs for those who need it the most, and potentially driving shareholder returns. I genuinely think it's rare that we find businesses that look to do great things in the world, helping every stakeholder involved, while also doing that on a profitable basis. Again, to get to that profitability, we are talking about a huge number of machines. But I love seeing that mixture of disruption and conscious thought in my investments.
Feroldi: Yes, I'm still getting used to the whole SPAC thing where management teams could come out and say, "Here's our projections for the next five years." Because of course, they have a huge incentive to make these eye-popping numbers that just look fantastic. To your point, yeah, they think that they're going to have 2,848. How they came up with that precise number, I don't know. You would think that they would just say, "About 2,500." But no, 2,848 is what they are projecting, and that is a compound annual growth rate that's in the hundreds of percent from here. So yeah, to get from 45 today to that number would require a really strong execution, but they believe that they can do it. On another note, they do think that by 2023, that sensing business, that Liminal business, will be operational on the market and producing revenue. They believe that they will have 1,661 of those systems installed too. They believe that that business will start to take off. The revenue from that business, we don't know what the profile is going to look like, but it does seem that the revenue per unit is going to be much lower than it is for the MRI machine. That makes sense, given that the MRI machine is going to be generating $8,000 in product ramp, but make no mistake, this company believes that the next few years are going to see hypergrowth on the top line.
Flippen: I think it's worth mentioning that last aspect of the business, which is we talked about their mission statement being imaging, sensing, and guided robotic intervention. The MRI machine is the imaging; Liminal, with their brain monitoring, is the sensing. The last part of that piece is the guided robotic intervention, and for investors that might remind them of businesses like Globus Medical, Intuitive Surgical, these businesses that are focusing on minimally invasive surgery. When I listened to the business roadshow, and read through their presentation, I found very little information about what intervention could look like for this business. Probably because obviously they're focusing on imaging and sensing right now, they just know that long term, post probably 2025, this is an area of expansion for them. They could see themselves getting into guided robotic intervention, which could help treat the issues that are discovered through imaging and sensing. All management said about this, that I heard, was that they don't like the esoteric designs that work around magnets right now. It went a little above my head, but I like the fact that that is on their sites, because the way that the liminal system works with Hyperfine's MRI machines right now is that they can exchange information. The theory is that once Liminal is up and running, they'll be able to exchange information to make the process of treatment seamless. Intervention is the logical next step.
Feroldi: It really is, and the chart that they did put out there for that business, the robotics business, will start to produce revenue by 2025. But that means that investors essentially have four years of waiting to do before they realize if that business will amount to anything at all. I like that the company has three different business units that it's developing right now. That to me is clear signs of optionality, and they also mentioned that they're planning on developing software that allows all these products to work seamlessly together. So that could really make them even stickier and even stronger if they can develop it over time. But four years from now, the sensing business is at least two years away and the robotic business is at least four years away. But make no mistake, if this company succeeds, it's going to be based on the MRI business.
Flippen: Definitely. Before I move on to summarize our thoughts here, what do you think about the president and CEO of Hyperfine or this combined entity?
Feroldi: His name is Dave Scott. He seems to be exactly the kind of leader that you want in place. He's worked for a number of medical companies, including Verb Surgical, Abbott, Intuitive Surgical. He spent time at Apple and he's been in the business for 25 years. That is the kind of resume that you want to see for somebody that's going to have to take an innovative company and really grow it. I didn't get a lot of more information other than basically his resume. We don't know the inside ownership of this company yet. We don't really have much on Glassdoor, there were basically three reviews, that means that the data is essentially useless. All the things that I used to look at, we don't really have other than to say his resume seems good.
Flippen: Well, let's summarize our thoughts here because again, when I read through a road show, when I get such little information about a business, I have to say, after going through all of this, I'm excited. I'm really pumped.
Feroldi: That's great. Emily, you're not someone that gets pumped much when it comes to businesses like this. I'd expect you to be much more skeptical.
Flippen: I will get there.
Feroldi: Fair enough. When I see this business, I think that there's a lot to like. Again, we don't know everything about the valuation, but it seems like the company is going to be sub $1 billion. I like that. I like that the company is already through the FDA and that we have early signs that the technology is being accepted by the medical community. I really like the business model. That's counter-positioning. That's when you take an existing business model and you flip it on its head. Because if you can do that successfully, that really changes the dynamic of the industry, and that makes it hard for competing MRI companies to copy you because if they were to switch to this model too, they'd have to give up millions of dollars in up-front revenue and that's really hard for established companies to do. I like that reimbursement is in place. The management team seems to be perfectly fine. And post the SPAC process, they are expected to have $375 million in cash and zero debt. We don't know what their burn rate is, but they did hint that they think that is going to be enough to get them to cash-flow breakeven. We'll see, because launching a medical device company from scratch is really expensive. I also really liked that Dr. Jonathan Rothberg is involved with this company. That does give me some confidence.
On the other side, the other two businesses are still years away from FDA approval and it's really hard to know what the chances of this happening is definitely be unprofitable for many, many years, that's not all that common, and we don't know things like insider ownership, and I wouldn't invest in a company unless I knew that kind of thing. There's a lot to like here, there's a lot to be excited about, but I'm still a little bit skeptical at this point. What do you think, Emily?
Flippen: Well, the same way I wouldn't marry someone based on their Tinder profile. I'm not going to invest in a business based on their roadshow or their SPAC investor presentation, because I know they're presenting the best side of themselves and I think maybe there's potential there. Maybe that turns into a long-term relationship. Maybe I will end up buying shares of Hyperfine. But right now, I think I want to understand how management acts as a public company. I want more information. How does this team work when times are tough as opposed to easy right now? What happens if they don't make headway with the FDA, especially on the Liminal brand of products? These are all things that I want to consider more deeply before investing in any company. It just goes to show, I never really care how great a company's initial presentation is. I think what really shows tenacity in investments is how they perform over the long term. Good thing is that this business is so early in its life, that I can afford to wait quarters, years even, before I buy shares if I ever do buy shares. I'm excited by it. I love the fact that we got the opportunity to cover it. It's now on my radar and will continue to be on my radar, but I'm by no means looking to go out and get married to this business before I even understand the inside ownership structure, the financial picture, the costs, all of these details that are missing.
Feroldi: That's fair enough. But on the flip side, if you were the type of investor who likes to swing for the fences, I could see that there is enough here to say, "Hey, it's worth taking a flyer on." For me, right now, I'm going to be in the wait-and-see mode. Personally, I'm still not completely comfortable with investing in SPACs before the entire process has gone through. I like to see at least one quarterly earnings report for the company before I would get in. But like you, I think this company is definitely going to be on my radar.
Flippen: Yeah. Maybe if you're the type of person who got married in Vegas with Elvis and that worked out for you, this is your investment.
Feroldi: There you go. I love the dating analogies you bring to Industry Focus, Emily.
Flippen: It's the only analogy I have. It's becoming really annoying and outdated at this point, so I hear you, listeners, I'll do better in the future. Well, Brian, thank you so much as always to come on and share your valuable insights. I really appreciate it.
Feroldi: Thanks for having me.
Flippen: Listeners, that does it for this episode of Industry Focus. If you have any questions or want to reach out just to say "Hi," you can always shoot us an email at industryfocus@fool.com or tweet us @MFIndustryFocus. As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against any stocks mentioned, so don't buy or sell anything based solely on what you hear. Thanks to Tim Sparks for his work behind the screen today. For Brian Feroldi, I'm Emily Flippen, thanks for listening and Fool on.
Brian Feroldi owns shares of Intuitive Surgical. Emily Flippen owns shares of Globus Medical. The Motley Fool owns shares of and recommends Apple, Globus Medical, and Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical, long March 2023 $120 calls on Apple, short January 2022 $600 calls on Intuitive Surgical, 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. | In this episode of Industry Focus: Wildcard, join Brian Feroldi and Emily Flippen as they break down Hyperfine's road show and unpack this recent target for a special purpose acquisition company (SPAC). I know Hyperfine doesn't see itself limited by that current market opportunity though, because as I mentioned, having a portable, cheaper, more accessible MRI machine expands the use cases beyond what exists today. If the Liminal system does work out, the company believes that will add another $23 billion into its market potential and it also has a third business that it's developing: a guided robotic intervention to actually take essentially the imaging that is found from its first two products and use that to operate on the patient. | I don't mean that just in the sense of disrupting technology, but this is a product that if it succeeds, genuinely helps patients save money from lower stays, links in their hospital, less risk from transport, while also helping hospitals save money from existing MRI costs, increasing accessibility for MRIs for those who need it the most, and potentially driving shareholder returns. The Motley Fool owns shares of and recommends Apple, Globus Medical, and Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical, long March 2023 $120 calls on Apple, short January 2022 $600 calls on Intuitive Surgical, and short March 2023 $130 calls on Apple. | What this machine does is it can be wheeled around a healthcare facility, and if somebody needs an MRI, the MRI machine can come to them and a little latch opens up, the patient can be slid into the MRI machine and then you get the MRI reading right from the machine itself, that is then uploaded to the Cloud. For me, as a potential investor in this company, I'm basically going to assume that that business goes to zero and doesn't happen at all and I'm just going to focus on the MRI business that exists today. On the other side, the other two businesses are still years away from FDA approval and it's really hard to know what the chances of this happening is definitely be unprofitable for many, many years, that's not all that common, and we don't know things like insider ownership, and I wouldn't invest in a company unless I knew that kind of thing. | If this company does not work out for investors, it's not because the opportunity isn't huge. Feroldi: Yes, I'm still getting used to the whole SPAC thing where management teams could come out and say, "Here's our projections for the next five years." On the other side, the other two businesses are still years away from FDA approval and it's really hard to know what the chances of this happening is definitely be unprofitable for many, many years, that's not all that common, and we don't know things like insider ownership, and I wouldn't invest in a company unless I knew that kind of thing. |
32046.0 | 2021-07-22 00:00:00 UTC | US STOCKS-Wall Street set for muted open as jobless claims rise | ABT | https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-muted-open-as-jobless-claims-rise-2021-07-22 | nan | nan | By Devik Jain and Shreyashi Sanyal
July 22 (Reuters) - U.S. stock indexes were set for a subdued open on Thursday after data showed an unexpected rise in weekly jobless claims, while a steady flow of positive earnings reports offered markets some support.
The Labor Department's report showed the number of Americans filing new claims for unemployment benefits increased by 51,000 to a seasonally adjusted 419,000 for the week ended July 17. Still, the number likely does not suggest a material shift in labor market conditions, with another month of strong job growth expected in July.
Investors have been closely following the health of the jobs market on which the Federal Reserve's monetary policy hinges, especially after a series of higher inflation reading recently sparked fears about a sooner-than expected paring of policy support as the economy reopens.
A shift in attention to corporate earnings and the so-called value stocks have helped Wall Street recoup most of its declines from earlier in the week that were triggered by concerns about the fast-spreading Delta variant of the coronavirus.
"The market is realizing that it's very unlikely that this variant is going to have a similar outcome to the original pandemic," said Tom Mantione, managing director at UBS Private Wealth Management in Stamford, CT.
"We've got a lot of runway to the U.S. economy both in the labor market and earnings, and now is the time to be buying the dip. If you weren't buying on Monday, you were kind of missing the point."
Second-quarter earnings are expected to grow 75% for S&P 500 companies, according to Refinitiv IBES estimates, with 88% of the 73 reported companies in the benchmark index .SPX beating consensus expectations.
AT&T Inc T.N added 0.9% in premarket trading as the telecom operator beat estimates for monthly phone bill paying subscriber additions in the second quarter, while chemicals maker Dow Inc DOW.N rose 1.3%after it forecast better-than-expected sales for the current quarter. [nL4N2OY1QT]
Healthcare companies including, drugmaker Biogen Inc BIIB.O rose 0.9% on raising its full-year revenue expectations, while medical device maker Abbott Laboratories ABT.N added 0.2% after its quarterly profit more than doubled.
Airline stocks fell following a 2.2% drop in shares of Southwest Airlines Co LUV.N after it posted a bigger-than-expected quarterly loss.
American Airlines Group Inc AAL.O reported a quarterly profit, but its shares fell 2%.
At 8:42 a.m. ET, Dow e-minis 1YMcv1 were down 45 points, or 0.13%, S&P 500 e-minis EScv1 were down 2.5 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were up 7.25 points, or 0.05%.
Texas Instruments Inc TXN.O fell 4.8% after it forecast current-quarter revenue slightly below Wall Street estimates amid concerns about the chipmaker's ability to meet searing demand in the face of a global shortage.
Intel Corp INTC.O edged lower ahead of its quarterly results after markets close on Thursday.
CXS Corp CSX.Ogained 3.8% as brokerages raised their price targets on the U.S. railroad operator's shares after it posted upbeat second-quarter revenue.
Energy stocks Chevron Corp CVX.N, Exxon Mobil XOM.N, Schlumberger NV SLB.N, Occidental Petroleum OXY.N and Marathon Petroleum Corp MPC.N climbed between 0.2% and 0.4% tracking crude prices. O/R
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | [nL4N2OY1QT] Healthcare companies including, drugmaker Biogen Inc BIIB.O rose 0.9% on raising its full-year revenue expectations, while medical device maker Abbott Laboratories ABT.N added 0.2% after its quarterly profit more than doubled. By Devik Jain and Shreyashi Sanyal July 22 (Reuters) - U.S. stock indexes were set for a subdued open on Thursday after data showed an unexpected rise in weekly jobless claims, while a steady flow of positive earnings reports offered markets some support. A shift in attention to corporate earnings and the so-called value stocks have helped Wall Street recoup most of its declines from earlier in the week that were triggered by concerns about the fast-spreading Delta variant of the coronavirus. | [nL4N2OY1QT] Healthcare companies including, drugmaker Biogen Inc BIIB.O rose 0.9% on raising its full-year revenue expectations, while medical device maker Abbott Laboratories ABT.N added 0.2% after its quarterly profit more than doubled. American Airlines Group Inc AAL.O reported a quarterly profit, but its shares fell 2%. Texas Instruments Inc TXN.O fell 4.8% after it forecast current-quarter revenue slightly below Wall Street estimates amid concerns about the chipmaker's ability to meet searing demand in the face of a global shortage. | [nL4N2OY1QT] Healthcare companies including, drugmaker Biogen Inc BIIB.O rose 0.9% on raising its full-year revenue expectations, while medical device maker Abbott Laboratories ABT.N added 0.2% after its quarterly profit more than doubled. By Devik Jain and Shreyashi Sanyal July 22 (Reuters) - U.S. stock indexes were set for a subdued open on Thursday after data showed an unexpected rise in weekly jobless claims, while a steady flow of positive earnings reports offered markets some support. AT&T Inc T.N added 0.9% in premarket trading as the telecom operator beat estimates for monthly phone bill paying subscriber additions in the second quarter, while chemicals maker Dow Inc DOW.N rose 1.3%after it forecast better-than-expected sales for the current quarter. | [nL4N2OY1QT] Healthcare companies including, drugmaker Biogen Inc BIIB.O rose 0.9% on raising its full-year revenue expectations, while medical device maker Abbott Laboratories ABT.N added 0.2% after its quarterly profit more than doubled. The Labor Department's report showed the number of Americans filing new claims for unemployment benefits increased by 51,000 to a seasonally adjusted 419,000 for the week ended July 17. CXS Corp CSX.Ogained 3.8% as brokerages raised their price targets on the U.S. railroad operator's shares after it posted upbeat second-quarter revenue. |
32047.0 | 2021-07-22 00:00:00 UTC | Abbott profit more than doubles as medical device sales rebound | ABT | https://www.nasdaq.com/articles/abbott-profit-more-than-doubles-as-medical-device-sales-rebound-2021-07-22 | nan | nan | Adds background, segment sales, forecast
July 22 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales.
The medical device maker and its rivals, Quest Diagnostics DGX.N and Becton Dickinson and Co BDX.N, banked on soaring sales of COVID-19 tests last year to cushion a lockdown-driven hit to their mainstay businesses.
But with curbs lifted and vaccinations gathering pace, demand for medical devices is returning as more people opt for non-urgent procedures.
Second-quarter sales in Abbott's diagnostics business grew nearly 63% to $3.25 billion, with COVID-19 testing-related sales at $1.3 billion, down from the previous quarter.
The company recorded sales growth of more than 11%, excluding COVID testing, on an organic basis in the quarter compared to pre-pandemic levels.
It maintained its 2021 adjusted earnings forecast of $4.30 to $4.50 per share from continuing operations.
The company's net earnings rose to $1.19 billion, or 66 cents per share, in the quarter ended June 30, from $537 million, or 30 cents per share, a year earlier.
(Reporting by Amruta Khandekar and Manojna Maddipatla in Bengaluru; Editing by Shailesh Kuber)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background, segment sales, forecast July 22 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales. The medical device maker and its rivals, Quest Diagnostics DGX.N and Becton Dickinson and Co BDX.N, banked on soaring sales of COVID-19 tests last year to cushion a lockdown-driven hit to their mainstay businesses. But with curbs lifted and vaccinations gathering pace, demand for medical devices is returning as more people opt for non-urgent procedures. | Adds background, segment sales, forecast July 22 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales. Second-quarter sales in Abbott's diagnostics business grew nearly 63% to $3.25 billion, with COVID-19 testing-related sales at $1.3 billion, down from the previous quarter. The company's net earnings rose to $1.19 billion, or 66 cents per share, in the quarter ended June 30, from $537 million, or 30 cents per share, a year earlier. | Adds background, segment sales, forecast July 22 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales. Second-quarter sales in Abbott's diagnostics business grew nearly 63% to $3.25 billion, with COVID-19 testing-related sales at $1.3 billion, down from the previous quarter. The company's net earnings rose to $1.19 billion, or 66 cents per share, in the quarter ended June 30, from $537 million, or 30 cents per share, a year earlier. | Adds background, segment sales, forecast July 22 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Thursday, due to strength in its diagnostics business and a rebound in medical device sales. The medical device maker and its rivals, Quest Diagnostics DGX.N and Becton Dickinson and Co BDX.N, banked on soaring sales of COVID-19 tests last year to cushion a lockdown-driven hit to their mainstay businesses. Second-quarter sales in Abbott's diagnostics business grew nearly 63% to $3.25 billion, with COVID-19 testing-related sales at $1.3 billion, down from the previous quarter. |
32048.0 | 2021-07-22 00:00:00 UTC | U.S. stock futures edge higher ahead of jobless claims data, earnings reports | ABT | https://www.nasdaq.com/articles/u.s.-stock-futures-edge-higher-ahead-of-jobless-claims-data-earnings-reports-2021-07-22 | nan | nan | By Devik Jain
July 22 (Reuters) - U.S. stock index futures edged higher on Thursday, with energy and mega-cap technology stocks gaining ahead of a new batch of earnings reports and data that allow investors to gauge the pace of the labor market recovery.
The Labor Department's report, due at 8:30 a.m. ET, is expected to show the number of Americans filing new claims for unemployment benefits fell for the week ended July 17, amid rampant worker shortages.
Investors have been closely following the health of the jobs market on which the Federal Reserve's monetary policy hinges, especially after a series of higher inflation reading recently sparked fears about a sooner-than expected paring of policy support as the economy reopens.
A shift in attention to corporate earnings and the so-called value stocks have helped Wall Street recoup most of its declines from earlier in the week that were triggered by concerns about the fast-spreading Delta variant of the coronavirus.
Second-quarter earnings are expected to grow 75% for S&P 500 companies, according to Refinitiv IBES estimates, with 88% of the 73 reported companies in the benchmark index .SPX beating consensus expectations.
Abbott Laboratories ABT.N, Domino's Pizza Inc DPZ.N, Biogen Inc BIIB.O, Snap Inc SNAP.N and Intel Corp INTC.O are among the major companies reporting results later in the day.
AT&T Inc T.N added 0.9% as the telecom operator beat analysts' estimates for monthly phone bill paying subscriber additions in the second quarter, fueled by more Americans converting to 5G phones.
Dow Inc DOW.N rose 1.3% after its second-quarter profit doubled from the first, as prices for its chemicals used in plastics and packaging rose on the back of strong consumer and industrial demand as well as lower inventories.
Energy stocks Chevron Corp CVX.N, Exxon Mobil XOM.N, Schlumberger NV SLB.N, Occidental Petroleum OXY.N and Marathon Petroleum Corp MPC.N climbed between 0.1% and 1%, tracking crude prices. O/R
At 6:44 a.m. ET, Dow e-minis 1YMcv1 were up 85 points, or 0.25%, S&P 500 e-minis EScv1 were up 9 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 21.75 points, or 0.15%. Futures traded within 1% from their record highs on Thursday.
Texas Instruments Inc TXN.O fell 5.1% after it forecast current-quarter revenue slightly below Wall Street estimates amid concerns about the chipmaker's ability to meet searing demand in the face of a global shortage.
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT.N, Domino's Pizza Inc DPZ.N, Biogen Inc BIIB.O, Snap Inc SNAP.N and Intel Corp INTC.O are among the major companies reporting results later in the day. ET, is expected to show the number of Americans filing new claims for unemployment benefits fell for the week ended July 17, amid rampant worker shortages. A shift in attention to corporate earnings and the so-called value stocks have helped Wall Street recoup most of its declines from earlier in the week that were triggered by concerns about the fast-spreading Delta variant of the coronavirus. | Abbott Laboratories ABT.N, Domino's Pizza Inc DPZ.N, Biogen Inc BIIB.O, Snap Inc SNAP.N and Intel Corp INTC.O are among the major companies reporting results later in the day. By Devik Jain July 22 (Reuters) - U.S. stock index futures edged higher on Thursday, with energy and mega-cap technology stocks gaining ahead of a new batch of earnings reports and data that allow investors to gauge the pace of the labor market recovery. ET, Dow e-minis 1YMcv1 were up 85 points, or 0.25%, S&P 500 e-minis EScv1 were up 9 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 21.75 points, or 0.15%. | Abbott Laboratories ABT.N, Domino's Pizza Inc DPZ.N, Biogen Inc BIIB.O, Snap Inc SNAP.N and Intel Corp INTC.O are among the major companies reporting results later in the day. By Devik Jain July 22 (Reuters) - U.S. stock index futures edged higher on Thursday, with energy and mega-cap technology stocks gaining ahead of a new batch of earnings reports and data that allow investors to gauge the pace of the labor market recovery. Second-quarter earnings are expected to grow 75% for S&P 500 companies, according to Refinitiv IBES estimates, with 88% of the 73 reported companies in the benchmark index .SPX beating consensus expectations. | Abbott Laboratories ABT.N, Domino's Pizza Inc DPZ.N, Biogen Inc BIIB.O, Snap Inc SNAP.N and Intel Corp INTC.O are among the major companies reporting results later in the day. By Devik Jain July 22 (Reuters) - U.S. stock index futures edged higher on Thursday, with energy and mega-cap technology stocks gaining ahead of a new batch of earnings reports and data that allow investors to gauge the pace of the labor market recovery. Investors have been closely following the health of the jobs market on which the Federal Reserve's monetary policy hinges, especially after a series of higher inflation reading recently sparked fears about a sooner-than expected paring of policy support as the economy reopens. |
32049.0 | 2021-07-22 00:00:00 UTC | Quest Diagnostics beats profit estimates on rebound in non-COVID testing | ABT | https://www.nasdaq.com/articles/quest-diagnostics-beats-profit-estimates-on-rebound-in-non-covid-testing-2021-07-22 | nan | nan | Adds estimates, revenue details, background
July 22 (Reuters) - Quest Diagnostics Inc DGX.N topped second-quarter profit estimates on Thursday, driven by a rebound in its non-COVID-19-related businesses as more Americans get vaccinated and pandemic-related restrictions lift.
Quest and its rivals Abbott Laboratories ABT.N and Becton Dickinson BDX.N have recorded improvements in their non-COVID-19 businesses as vaccinations speed up and the economy reopens.
That recovery has helped reduce their dependence on COVID-19 testing, which had brought in billions of dollars in sales in 2020 but is expected to taper off this year.
Quest predicted in April its base business would fully recover by the end of this year.
Net income attributable to the company rose to $631 million, or $4.96 per share, in the second quarter ended June 30, from $185 million, or $1.36 per share, a year earlier.
Excluding items, Quest earned $3.18 per share, beating analysts' estimates of $2.87, according to Refinitiv IBES data.
Revenue increased to $2.55 billion from $1.83 billion a year ago.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Aditya Soni)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Quest and its rivals Abbott Laboratories ABT.N and Becton Dickinson BDX.N have recorded improvements in their non-COVID-19 businesses as vaccinations speed up and the economy reopens. That recovery has helped reduce their dependence on COVID-19 testing, which had brought in billions of dollars in sales in 2020 but is expected to taper off this year. Excluding items, Quest earned $3.18 per share, beating analysts' estimates of $2.87, according to Refinitiv IBES data. | Quest and its rivals Abbott Laboratories ABT.N and Becton Dickinson BDX.N have recorded improvements in their non-COVID-19 businesses as vaccinations speed up and the economy reopens. Adds estimates, revenue details, background July 22 (Reuters) - Quest Diagnostics Inc DGX.N topped second-quarter profit estimates on Thursday, driven by a rebound in its non-COVID-19-related businesses as more Americans get vaccinated and pandemic-related restrictions lift. Net income attributable to the company rose to $631 million, or $4.96 per share, in the second quarter ended June 30, from $185 million, or $1.36 per share, a year earlier. | Quest and its rivals Abbott Laboratories ABT.N and Becton Dickinson BDX.N have recorded improvements in their non-COVID-19 businesses as vaccinations speed up and the economy reopens. Adds estimates, revenue details, background July 22 (Reuters) - Quest Diagnostics Inc DGX.N topped second-quarter profit estimates on Thursday, driven by a rebound in its non-COVID-19-related businesses as more Americans get vaccinated and pandemic-related restrictions lift. Net income attributable to the company rose to $631 million, or $4.96 per share, in the second quarter ended June 30, from $185 million, or $1.36 per share, a year earlier. | Quest and its rivals Abbott Laboratories ABT.N and Becton Dickinson BDX.N have recorded improvements in their non-COVID-19 businesses as vaccinations speed up and the economy reopens. Adds estimates, revenue details, background July 22 (Reuters) - Quest Diagnostics Inc DGX.N topped second-quarter profit estimates on Thursday, driven by a rebound in its non-COVID-19-related businesses as more Americans get vaccinated and pandemic-related restrictions lift. That recovery has helped reduce their dependence on COVID-19 testing, which had brought in billions of dollars in sales in 2020 but is expected to taper off this year. |
32050.0 | 2021-07-22 00:00:00 UTC | Will Abbott Stock Rise Post Q2? | ABT | https://www.nasdaq.com/articles/will-abbott-stock-rise-post-q2-2021-07-22 | nan | nan | Abbott (NYSE:ABT) is scheduled to report its Q2 2021 results on Thursday, July 22. We expect Abbott to report revenues and earnings above the consensus estimates, driven by continued growth in diagnostics business, along with a rebound in demand for medical devices. We expect the company to navigate well based on these trends over the latest quarter, and ABT stock to rise in the near term. Trefis’ forecast indicates that Abbott’s valuation is $132 per share, which is 11% higher than the current market price of around $119. Our interactive dashboard analysis on Abbott’s Pre-Earnings has additional details.
(1) Revenues expected to be above the consensus estimates
Trefis estimates Abbott’s Q2 2021 revenues to be around $9.85 Bil, compared to the $9.69 Bil consensus estimate. Abbott in Q2 2020 saw a significant decline in medical devices revenue, due to deferment of elective surgeries given the spread of Covid-19. Now that nearly half of the U.S. population is fully vaccinated, and on the international front, most of the countries have undertaken large-scale vaccination programs, the healthcare institutions now have more resources to address the surgeries that were postponed earlier, and people are also more confident heading out, compared to the lockdowns in Q2 last year, implying a rebound for Abbott’s medical devices business. In fact, Abbott’s medical devices sales were also up 13% in Q1 this year.
Looking at the company’s diagnostics business, the sales are expected to continue to remain very high in Q2 as well, after seeing a massive 120% rise in Q1 of this year. This can be attributed to high demand for Covid-19 testing. However, now that the Covid-19 vaccination rate is on a rise, the overall demand for testing is expected to come down over the coming quarters, and it will impact the overall sales growth of the company’s diagnostics business in the quarters to come. This factor was also responsible for a 10% drop in ABT stock a couple of months back. Our dashboard on Abbott Revenues offers more details on the company’s segments.
2) EPS likely to top the consensus estimates
Abbott’s Q2 2021 adjusted earnings per share (EPS) is expected to be $1.07 per Trefis analysis, 5% above the consensus estimate of $1.02. Abbott’s adjusted net income of $2.4 Bil in Q1 2021 reflected a large 2x growth from its $1.2 Bil figure in the prior-year quarter. This can be attributed to higher revenues and over 750 bps rise in net margins. The company’s operating expenses, including R&D and SG&A grew at a slower pace compared to the revenue growth. This trend is expected to continue in Q2 as well, bolstering the overall earnings growth. For the full-year, we expect the adjusted EPS to be higher at $4.55 compared to $3.67 in 2020.
(3) Stock price estimate 11% higher than the current market price
Going by our Abbott’s Valuation, with an EPS estimate of around $4.55 and a P/E multiple of around 29x in 2021, this translates into a price of $132, which is 11% above the current market price of around $119. At current levels of $119, Abbott is trading at 26x its expected EPS of $4.55 in 2021, and the 26x figure compares with levels of 30x seen as recently as late 2020, and 27x seen in late 2019, implying there is more room for growth for ABT stock.
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
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, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
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 Q2 2021 results on Thursday, July 22. We expect the company to navigate well based on these trends over the latest quarter, and ABT stock to rise in the near term. This factor was also responsible for a 10% drop in ABT stock a couple of months back. | Abbott (NYSE:ABT) is scheduled to report its Q2 2021 results on Thursday, July 22. We expect the company to navigate well based on these trends over the latest quarter, and ABT stock to rise in the near term. This factor was also responsible for a 10% drop in ABT stock a couple of months back. | Abbott (NYSE:ABT) is scheduled to report its Q2 2021 results on Thursday, July 22. We expect the company to navigate well based on these trends over the latest quarter, and ABT stock to rise in the near term. This factor was also responsible for a 10% drop in ABT stock a couple of months back. | Abbott (NYSE:ABT) is scheduled to report its Q2 2021 results on Thursday, July 22. We expect the company to navigate well based on these trends over the latest quarter, and ABT stock to rise in the near term. This factor was also responsible for a 10% drop in ABT stock a couple of months back. |
32051.0 | 2021-07-22 00:00:00 UTC | Will Boston Scientific Stock Rise After A 5% Fall In A Week? | ABT | https://www.nasdaq.com/articles/will-boston-scientific-stock-rise-after-a-5-fall-in-a-week-2021-07-22 | nan | nan | The stock price of Boston Scientific (NYSE:BSX) reached its 52-week high of $44 in April this year before a recent sell-off in broader markets, which led to a 7% drop in BSX stock to levels of around $41 currently. The recent sell-off in the broader markets can be attributed to rising Covid-19 cases due to the new Delta variant, which may result in slower economic growth, compared to what was earlier anticipated. However, BSX stock, in particular, is being weighed down due to concerns of increasing competition for the company’s Left Atrial Appendage Closure (LAAC) device – Watchman. Boston Scientific’s peer, Abbott’s Amulet (LAAC device), is expected to receive the U.S. FDA approval later this year, and if approved, it will gain some of the market share from Watchman, which alone is expected to garner $1 billion in annual sales over the coming years. It is not just Abbott, even Johnson & Johnson is working on a LAAC device – WaveCrest – which may hit the market in 2023. These concerns, along with a downgrade from one of the Wall Street analysts, have weighed on BSX stock over the last week or so.
Now, after a 5% fall in a week, will BSX stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BSX stock average 3.2% in the next one-month (twenty-one trading days) period after experiencing a 5% drop over the previous week (five trading days).
But how would these numbers change if you are interested in holding BSX stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Boston Scientific stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF BSX stock moved by -5% over five trading days, THEN over the next twenty-one trading days BSX stock moves an average of 3.2%, with a 63% probability of a positive return over this period.
Some Fun Scenarios, FAQs & Making Sense of Boston Scientific Stock Movements:
Question 1: Is the average return for Boston Scientific stock higher after a drop?
Answer: Consider two situations,
Case 1: Boston Scientific stock drops by -5% or more in a week
Case 2: Boston Scientific stock rises by 5% or more in a week
Is the average return for Boston Scientific stock higher over the subsequent month after Case 1 or Case 2?
BSX stock fares better after Case 1, with an average return of 3.2% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.4% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Boston Scientific stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer: If you buy and hold Boston Scientific stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For BSX stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Boston Scientific after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
It’s pretty powerful to test the trend for yourself for Boston Scientific stock by changing the inputs in the charts above.
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 BSX stock may gain in the near term, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent sell-off in the broader markets can be attributed to rising Covid-19 cases due to the new Delta variant, which may result in slower economic growth, compared to what was earlier anticipated. However, BSX stock, in particular, is being weighed down due to concerns of increasing competition for the company’s Left Atrial Appendage Closure (LAAC) device – Watchman. Answer: If you buy and hold Boston Scientific stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BSX stock average 3.2% in the next one-month (twenty-one trading days) period after experiencing a 5% drop over the previous week (five trading days). You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Boston Scientific stock chances of a rise after a fall. Some Fun Scenarios, FAQs & Making Sense of Boston Scientific Stock Movements: Question 1: Is the average return for Boston Scientific stock higher after a drop? | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BSX stock average 3.2% in the next one-month (twenty-one trading days) period after experiencing a 5% drop over the previous week (five trading days). Answer: Consider two situations, Case 1: Boston Scientific stock drops by -5% or more in a week Case 2: Boston Scientific stock rises by 5% or more in a week Is the average return for Boston Scientific stock higher over the subsequent month after Case 1 or Case 2? BSX stock fares better after Case 1, with an average return of 3.2% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 1.4% for Case 2. | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for BSX stock average 3.2% in the next one-month (twenty-one trading days) period after experiencing a 5% drop over the previous week (five trading days). MACHINE LEARNING ENGINE – try it yourself: IF BSX stock moved by -5% over five trading days, THEN over the next twenty-one trading days BSX stock moves an average of 3.2%, with a 63% probability of a positive return over this period. Answer: Consider two situations, Case 1: Boston Scientific stock drops by -5% or more in a week Case 2: Boston Scientific stock rises by 5% or more in a week Is the average return for Boston Scientific stock higher over the subsequent month after Case 1 or Case 2? |
32052.0 | 2021-07-21 00:00:00 UTC | Pre-Market Earnings Report for July 22, 2021 : ABT, DHR, T, UNP, MMC, BIIB, NEM, FCX, DOW, AEP, DHI, LUV | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-july-22-2021-%3A-abt-dhr-t-unp-mmc-biib-nem-fcx-dow-aep-dhi | nan | nan | The following companies are expected to report earnings prior to market open on 07/22/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Abbott Laboratories (ABT)is reporting for the quarter ending June 30, 2021. The medical products company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.01. This value represents a 77.19% increase compared to the same quarter last year. ABT missed the consensus earnings per share in the 1st calendar quarter of 2021 by -0.75%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 27.29 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Danaher Corporation (DHR)is reporting for the quarter ending June 30, 2021. The diversified operations company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.04. This value represents a 41.67% increase compared to the same quarter last year. In the past year DHR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 50.9%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DHR is 31.76 vs. an industry ratio of 20.30, 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 June 30, 2021. The wireless (national) company's consensus earnings per share forecast from the 17 analysts that follow the stock is $0.78. This value represents a 6.02% decrease compared to the same quarter last year. T missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -1.3%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for T is 8.80 vs. an industry ratio of 15.80.
Union Pacific Corporation (UNP)is reporting for the quarter ending June 30, 2021. The transportation (rail) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.55. This value represents a 52.69% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for UNP is 22.12 vs. an industry ratio of 7.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Marsh & McLennan Companies, Inc. (MMC)is reporting for the quarter ending June 30, 2021. The insurance brokers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.42. This value represents a 7.58% increase compared to the same quarter last year. In the past year MMC has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 17.06%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MMC is 24.99 vs. an industry ratio of 23.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Biogen Inc. (BIIB)is reporting for the quarter ending June 30, 2021. The biomedical (gene) company's consensus earnings per share forecast from the 29 analysts that follow the stock is $4.57. This value represents a 55.46% decrease compared to the same quarter last year. BIIB missed the consensus earnings per share in the 4th calendar quarter of 2020 by -7.1%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BIIB is 17.33 vs. an industry ratio of -2.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Newmont Corporation (NEM)is reporting for the quarter ending June 30, 2021. The mining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.76. This value represents a 137.50% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for NEM is 17.62 vs. an industry ratio of -36.00, 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 June 30, 2021. The mining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.73. This value represents a 2333.33% 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 10.56 vs. an industry ratio of -1.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Dow Inc. (DOW)is reporting for the quarter ending June 30, 2021. The chemical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.48. This value represents a 1053.85% increase compared to the same quarter last year. In the past year DOW has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 23.64%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DOW is 7.68 vs. an industry ratio of 13.10.
American Electric Power Company, Inc. (AEP)is reporting for the quarter ending June 30, 2021. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.14. This value represents a 5.56% increase compared to the same quarter last year. AEP missed the consensus earnings per share in the 1st calendar quarter of 2021 by -6.5%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AEP is 18.32 vs. an industry ratio of 14.00, implying that they will have a higher earnings growth than their competitors in the same industry.
D.R. Horton, Inc. (DHI)is reporting for the quarter ending June 30, 2021. The building (residential/commercial) company's consensus earnings per share forecast from the 18 analysts that follow the stock is $2.83. This value represents a 64.53% increase compared to the same quarter last year. In the past year DHI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 15%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DHI is 8.51 vs. an industry ratio of 8.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Southwest Airlines Company (LUV)is reporting for the quarter ending June 30, 2021. The airline company's consensus earnings per share forecast from the 13 analysts that follow the stock is $-0.25. This value represents a 90.64% increase compared to the same quarter last year. LUV missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -5.53%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LUV is -44.34 vs. an industry ratio of -18.50.
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 June 30, 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 27.29 vs. an industry ratio of 12.00, 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 27.29 vs. an industry ratio of 12.00, 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 June 30, 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 June 30, 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 27.29 vs. an industry ratio of 12.00, 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 June 30, 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 27.29 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry. |
32053.0 | 2021-07-20 00:00:00 UTC | S&P 500 Analyst Moves: ABT | ABT | https://www.nasdaq.com/articles/sp-500-analyst-moves%3A-abt-2021-07-20 | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #60 analyst pick, moving up by 1 spot.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, Abbott Laboratories is showing a gain of 9.0%.
VIDEO: S&P 500 Analyst Moves: ABT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #60 analyst pick, moving up by 1 spot. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. Looking at the stock price movement year to date, Abbott Laboratories is showing a gain of 9.0%. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #60 analyst pick, moving up by 1 spot. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. | VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories is now the #60 analyst pick, moving up by 1 spot. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. |
32054.0 | 2021-07-20 00:00:00 UTC | iShares Core S&P 500 ETF Experiences Big Inflow | ABT | https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-2021-07-20 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $576.5 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 667,250,000 to 668,600,000). Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.2%, Nike (Symbol: NKE) is up about 0.3%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.9%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $320.55 per share, with $439.81 as the 52 week high point — that compares with a last trade of $430.93. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.2%, Nike (Symbol: NKE) is up about 0.3%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.9%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.55 per share, with $439.81 as the 52 week high point — that compares with a last trade of $430.93. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.2%, Nike (Symbol: NKE) is up about 0.3%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.9%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.55 per share, with $439.81 as the 52 week high point — that compares with a last trade of $430.93. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.2%, Nike (Symbol: NKE) is up about 0.3%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $576.5 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 667,250,000 to 668,600,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.55 per share, with $439.81 as the 52 week high point — that compares with a last trade of $430.93. | Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.2%, Nike (Symbol: NKE) is up about 0.3%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $576.5 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 667,250,000 to 668,600,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $320.55 per share, with $439.81 as the 52 week high point — that compares with a last trade of $430.93. |
32055.0 | 2021-07-19 00:00:00 UTC | 3 High-Yield Dividend Aristocrats To Buy Now | ABT | https://www.nasdaq.com/articles/3-high-yield-dividend-aristocrats-to-buy-now-2021-07-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Income investors are always searching for high yields, which are hard to find with today’s historically low interest rates and record-high stock prices. But investors should not sacrifice dividend safety in favor of higher yields. This is why high-quality dividend stocks like the Dividend Aristocrats are so valuable.
The Dividend Aristocrats are a select group of 65 stocks in the S&P 500 Index that have each raised their dividends for at least 25 consecutive years. We consider these to be some of the best dividend stocks in the entire market — and high-yield Dividend Aristocrats can bring an even stronger income.
7 A-Rated Retirement Stocks to Buy to for Your Golden Years
These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models:
Chevron Corporation (NYSE:CVX)
AbbVie Inc. (NYSE:ABBV)
Realty Income (NYSE:O)
Dividend Stocks: Chevron Corporation (CVX)
CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" />
Source: Sundry Photography / Shutterstock.com
Chevron is an integrated oil and gas company with a large upstream exploration and production business. It also has a downstream refining and marketing business. CVX stock has a market capitalization of nearly $200 billion.
The oil and gas industry is notorious for its “boom-and-bust” cycle. There is good reason for this — the profits of oil and gas companies can swing wildly depending on the underlying commodity price. This has been a huge negative for energy investors in the past few years. For example, the price of oil collapsed in 2020 due to the Covid-19 pandemic, and CVX stock fell rapidly in response.
However, fortunes are beginning to change in the energy industry. West Texas Intermediate (WTI) crude prices recently touched $75 per barrel, a level not seen in years. If oil prices continue to rise, the fundamental performance of oil majors like Chevron will vastly improve.
Indeed, Chevron has already notched significantly higher profits this year as the global economy has recovered from the pandemic. It posted adjusted earnings of $1.7 billion in the first quarter of 2021. That’s a significant increase from an adjusted loss of $11 million in Q4 2020.
As oil and gas prices recover, the company’s bottom line will follow suit. Earnings will also be improved by Chevron’s capital discipline — Q1 capital spending declined 43% from the same quarter last year. The company can continue raising its dividends each year as its financials improve.
Chevron has increased its dividend for more than 30 consecutive years. That’s a remarkable track record given the high level of volatility in its business model. The company increased its dividend by 4% in April and shares currently yield 5.3%.
AbbVie Inc. (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. The company split off to grow independently with its own dedicated leadership team and financial resources. Management believed two separate entities could unlock greater shareholder value than a single company.
Since then, the management team has been proven right. Between 2013 and 2020, AbbVie generated a 13.5% compound annual growth rate (CAGR) in revenue and a CAGR of more than 18% in annual adjusted EPS.
Humira, a multi-purpose medication, played a big role in AbbVie’s growth. It was the highest-selling drug in the U.S. in 2019. However, Humira’s patent expired in Europe, which has led to deep discounts to maintain market share. Making matters worse, AbbVie will lose exclusivity to Humira in the U.S. in 2023.
A steep patent cliff is one of the biggest risks a pharmaceutical company can face. Fortunately, AbbVie has prepared for this by investing heavily in new products, both organically and through mergers and acquisitions. For example, AbbVie has seen strong growth from Skyrizi, which grew sales by 89% last quarter. Meanwhile, Rinvoq revenue more than doubled year-over-year (YOY).
AbbVie also completed the $63 billion acquisition of Allergan to accelerate its future growth. Allergan’s flagship product is Botox, which gives AbbVie’s portfolio exposure to the global aesthetics market. This segment of their products generated $1.1 billion in Q1 revenue, up 35% YOY.
While AbbVie expects its full-year revenue to decline in 2023, the company anticipates a quick bounce back to revenue growth in 2024 and beyond. Looking further out, AbbVie expects a return to a high-single digit CAGR in 2025 and believes it will continue at that pace through the rest of the decade.
7 of the Best Contrarian Stocks to Buy as Others Get Greedy
In the meantime, AbbVie rewards shareholders with a 4.4% dividend yield and solid dividend growth, including a 10% raise in October 2020.
Dividend Stocks: Realty Income (O)
Source: Shutterstock
Lastly, Realty Income is a real estate investment trust (REIT) operating in the retail industry. The Covid-19 pandemic has been difficult for retailers with physical properties, and many stores across the country were forced to close. But even before the pandemic, brick-and-mortar retailers were struggling with the intensifying threat of online retail competition.
But despite these setbacks, Realty Income continues to generate steady growth and reward shareholders with rising dividends. The company’s consistency can be attributed to its operational excellence and management expertise.
Realty Income owns more than 6,600 properties in the U.S., the U.K. and Puerto Rico. It has a diverse array of tenants including grocery stores, convenience stores, drug stores and dollar stores. For the most part, Realty Income’s properties sell necessities, making them somewhat resistant to e-commerce competition.
Realty Income’s top tenants include Walgreens (MASDAQ:WBA), 7-Eleven, Dollar General (NYSE:DG) and FedEx (NYSE:FDX). A strong property portfolio has led to steady growth over the years. According to the company, Realty Income has generated compound annual shareholder returns above 15% per year since it went public in 1994.
Income investors have been rewarded as well. The company has increased its dividend by more than 4% per year since its initial public offering (IPO). Realty Income has delivered 110 dividend increases since the company went public. Even better, it pays its dividend each month, which provides investors with more frequent payouts. Currently, O stock provides a 4.1% dividend yield.
On the date of publication, Bob Ciura held a long position in 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 High-Yield Dividend Aristocrats To Buy Now 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 Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. There is good reason for this — the profits of oil and gas companies can swing wildly depending on the underlying commodity price. | AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. 7 of the Best Contrarian Stocks to Buy as Others Get Greedy In the meantime, AbbVie rewards shareholders with a 4.4% dividend yield and solid dividend growth, including a 10% raise in October 2020. Dividend Stocks: Realty Income (O) Source: Shutterstock Lastly, Realty Income is a real estate investment trust (REIT) operating in the retail industry. | AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. We consider these to be some of the best dividend stocks in the entire market — and high-yield Dividend Aristocrats can bring an even stronger income. 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. | AbbVie Inc. (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is a pharmaceutical giant that spun off from its former parent company Abbott Laboratories (NYSE:ABT) in 2013. 7 A-Rated Retirement Stocks to Buy to for Your Golden Years These three dividend stocks from the list have yields above 4% and can raise their dividends each year due to their strong business models: Chevron Corporation (NYSE:CVX) AbbVie Inc. (NYSE:ABBV) Realty Income (NYSE:O) Dividend Stocks: Chevron Corporation (CVX) CVX) logo on gas station sign with "diesel" and "food mart" written underneath" width="300" height="169" /> Source: Sundry Photography / Shutterstock.com Chevron is an integrated oil and gas company with a large upstream exploration and production business. The company can continue raising its dividends each year as its financials improve. |
32056.0 | 2021-07-18 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Martin Zweig - 7/18/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-martin-zweig-7-18-2021-2021-07-18 | 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.
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 92% 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. produces, distributes and sells weight loss, weight management, and healthy living products, and other consumable health and nutritional products. The Company's product lines include weight loss, weight management, and healthy living meal replacements, snacks, hydration products, and vitamins. Its business units include Optavia, Medifast Direct, Franchise Medifast Weight Control Centers (MWCC) and Medifast Wholesale. Optavia is a personal coaching division of the Company that consists of Optavia Coaches, who provides coaching and support to clients utilizing the Optavia platform. Medifast Direct is its direct-to-consumer business unit that allows customers to order Medifast products directly through its Website or its in-house call center. The MWCC business unit sells product through franchise and reseller locations, which offers structured programs and a team of professionals to help customers achieve weight-loss and weight-management success at center locations.
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: 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>
INMODE LTD (INMD) is a mid-cap growth stock in the Medical Equipment & Supplies 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: Inmode Ltd is an Israel-based company. It designs, develops, manufactures and commercializes energy-based, minimally-invasive surgical aesthetic and medical treatment solutions. The Company's proprietary technologies are used by physicians to remodel subdermal adipose, or fatty, tissue in a variety of procedures including fat reduction with simultaneous skin tightening, face and body contouring and ablative skin rejuvenation treatments. Its products target a wide array of procedures including simultaneous fat killing and skin tightening, permanent hair reduction, skin appearance and texture, among others. The Company's products may be used on a variety of body parts, including the face, neck, abdomen, upper arms, thighs and intimate feminine regions. It owns six product platforms: BodyTite, Optimas, Votiva, Contoura, Triton and EmbraceRF. All are market and sell traditionally to plastic and facial surgeons, aesthetic surgeons and dermatologists, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
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: PASS
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of INMODE LTD
Full Guru Analysis for INMD>
Full Factor Report for INMD>
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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: 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: 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: 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>
CATALENT INC (CTLT) 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: Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products. Its segments include Softgel Technologies, Drug Delivery Solutions and Clinical Supply Services. The Softgel Technologies segment is engaged in the formulation, development and manufacturing of prescription and consumer health soft capsules or softgels. The Drug Delivery Solutions segment is engaged in the formulation, development and manufacturing of prescription and consumer and animal health products; blow-fill seal unit dose manufacturing; biologic cell line development; analytical and bioanalytical development, and testing services. The Clinical Supply Services segment is engaged in manufacturing, packaging, labeling, storage, distribution and inventory management for clinical trials of drugs and biologics for patient kits; FastChain clinical supply service; clinical e-solutions and informatics, and global comparator sourcing services.
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: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of CATALENT INC
Full Guru Analysis for CTLT>
Full Factor Report for CTLT>
HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities 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: 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
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: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
INSIDER TRANSACTIONS: PASS
Detailed Analysis of HCA HEALTHCARE INC
Full Guru Analysis for HCA>
Full Factor Report for HCA>
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 INMODE LTD Full Guru Analysis for INMD> Full Factor Report for INMD> 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> CATALENT INC (CTLT) is a large-cap growth 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 INMODE LTD Full Guru Analysis for INMD> Full Factor Report for INMD> 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> CATALENT INC (CTLT) is a large-cap growth stock in the Biotechnology & Drugs industry. Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> INMODE LTD (INMD) is a mid-cap growth stock in the Medical Equipment & Supplies industry. | Detailed Analysis of INMODE LTD Full Guru Analysis for INMD> Full Factor Report for INMD> 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> CATALENT INC (CTLT) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: Medifast, Inc. produces, distributes and sells weight loss, weight management, and healthy living products, and other consumable health and nutritional products. | Detailed Analysis of INMODE LTD Full Guru Analysis for INMD> Full Factor Report for INMD> 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> CATALENT INC (CTLT) is a large-cap growth 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. |
32057.0 | 2021-07-18 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 7/18/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-7-18-2021-2021-07-18 | 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.
HCA HEALTHCARE INC (HCA) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 81% 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: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: FAIL
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of HCA HEALTHCARE INC
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SELECT MEDICAL HOLDINGS CORPORATION (SEM) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 81% 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: Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. The Company's segments include specialty hospitals, outpatient rehabilitation, Concentra and Other. The specialty hospitals segment consists of hospitals designed to serve the needs of long term acute patients and hospitals designed to serve patients that require intensive medical rehabilitation care. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. The Concentra segment consists of medical centers and contract services provided at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, physical therapy, veteran's healthcare, and consumer health services. As of December 31, 2016, the Company had operations in 46 states and the District of Columbia.
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: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of SELECT MEDICAL HOLDINGS CORPORATION
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ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Abbott Laboratories (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. The Company focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. It offers products, including FreeStyle, PediaSure, Pedialyte, Similac, EleCare, ZonePerfect, Juven, Ensure and Glucerna. 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. The cardiovascular's products include Portico, MitraClip, Dilatation Catheter, among others. The diagnostics products include IntelliFISH, Vysis ALK, STARLIMS, PathVysion, AlinIQ, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: FAIL
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of ABBOTT LABORATORIES
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CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Centene Corporation is a multi-national healthcare company. The Company provides services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. It also provides education and outreach programs to inform and assist members in accessing appropriate healthcare services. It operates through two segments: Managed Care and Specialty Services. The Managed Care segment provides health plan coverage to individuals through government subsidized and commercial programs. Its Specialty Services segment includes companies offering diversified healthcare services and products to its Managed Care segment and other external customers. It provides a range of healthcare products and services, primarily through Medicaid, Medicare and commercial products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Detailed Analysis of CENTENE CORP
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DAVITA INC (DVA) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: 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>
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More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of SELECT MEDICAL HOLDINGS CORPORATION Full Guru Analysis for SEM> Full Factor Report for SEM> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. Company Description: Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. | Detailed Analysis of SELECT MEDICAL HOLDINGS CORPORATION Full Guru Analysis for SEM> Full Factor Report for SEM> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of HCA HEALTHCARE INC Full Guru Analysis for HCA> Full Factor Report for HCA> SELECT MEDICAL HOLDINGS CORPORATION (SEM) is a mid-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of SELECT MEDICAL HOLDINGS CORPORATION Full Guru Analysis for SEM> Full Factor Report for SEM> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of HCA HEALTHCARE INC Full Guru Analysis for HCA> Full Factor Report for HCA> SELECT MEDICAL HOLDINGS CORPORATION (SEM) is a mid-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of SELECT MEDICAL HOLDINGS CORPORATION Full Guru Analysis for SEM> Full Factor Report for SEM> ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. Detailed Analysis of ABBOTT LABORATORIES Full Guru Analysis for ABT> Full Factor Report for ABT> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. Company Description: Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. |
32058.0 | 2021-07-18 00:00:00 UTC | Better Meme Stock: Clover Health or Senseonics Holdings? | ABT | https://www.nasdaq.com/articles/better-meme-stock%3A-clover-health-or-senseonics-holdings-2021-07-18 | nan | nan | Both Clover Health Investments (NASDAQ: CLOV) and Senseonics Holdings (NYSEMKT: SENS) have emerged as meme stocks over the last few months. Senseonics has been the much bigger winner so far, but that doesn't necessarily mean it will continue to outperform Clover Health going forward. In this Motley Fool Live video recorded on July 7, Motley Fool contributors Keith Speights and Brian Orelli discuss which of these two meme stocks is the better pick right now.
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Keith Speights: Meme stocks are just all the rage these days, so let's jump briefly on that bandwagon. Two super-hyped meme stocks in the healthcare sector right now are Clover Health -- ticker there is CLOV-- and Senseonics Holdings. Ticker there is SENS.
Brian, I know you recently had an interesting experience with options you have for Clover, but if you had to pick between these two meme stocks right now, which one would you go with and why?
Brian Orelli: I'm still technically a shareholder of Clover because I had an odd lot, so options cover 100 shares, and I had multiples of 100 plus 19 additional shares. So I have 19 shares that didn't get called away.
If people didn't remember the story, basically I sold a covered call on Clover and it rocketed higher, so I sold them. I was forced to sell them at a much higher price than I bought them at, but a much lower price than I would've liked to have sold them at because it had rocketed higher. Then I didn't have time to sell those 19 shares, although obviously 19 shares isn't a whole lot of money [laughs] because I was under restrictions.
Then at this point, I'm just holding onto them as a reminder not to sell covered calls and make some people hold onto their losers that are penny stocks just as a reminder that maybe you should think a little bit more about your purchases before you buy the stock while I'm holding onto my 19 shares to remind me not to sell covered calls on things that could eventually become meme stocks.
Clover's almost a double where last time I looked and where I bought it. Not much has changed with the company, so I'm not really all that interested in adding at this level. I'd like to see it drop a little more or maybe prove that it's able to lower costs for Medicare patients, that's the business they're in. If they can do that, then I'd be willing to buy even at a higher price if I felt like there was less risk.
Moving on to Senseonics, this company sells Eversense continuous glucose monitors. They stay on for 90 days, which is much longer than other glucose monitors, but it has to be inserted by a doctor. They're working with the FDA to get a version approved that can stay on for 180 days.
Obviously, you have to go in every three months versus every six months to your doctor, that would be a big improvement. But it hasn't really been a big seller, I think mostly because you have to go in to get your doctor to insert this.
In the first quarter, sales were less than $3 million. That was primarily in Europe. Revenue in the U.S. was $0.3 million. They have a new sales contractor, and so they're hoping that the contractor will be able to boost their sales. But it's still not expecting to ramp up revenue all that quickly in 2021. Revenue is only expected to be $12 to $15 million, that puts it at trading at 97 times sales at the top of that range.
This is a competitive space, Abbott is a powerhouse in the continuous glucose monitoring, so is Medtronic and then DexCom. It's a smaller company, but it has two billion in annual sales and trades at around 20 times trailing-12-month sales. Compare that to the valuation of Senseonics, which is like almost 100 times future sales.
I think that it's hard to see a value play here. Maybe the new contracts with the company that they're contracting to help boost sales will help.
But this is one where I'd rather wait and see. Maybe it ramps up sales to 100 million and you lose some upside as it ramps up, but you gain a lot of confidence if they can get to a 100 million in sales, and then that makes it less risky. I'd rather buy at a $100 million in sales and lose a heck a lot of upside from here, but buy it where it's a lot less risky.
Long story short, I'm not sure I really buy either of these at the current valuation. Clover is probably the better choice, but that's probably mostly because I'm more familiar with the company. I think it's probably closer to the valuation that I would be interested in rebuying the company.
Brian Orelli, PhD owns shares of Clover Health Investments and has the following options: short August 2021 $7.50 puts on Clover Health Investments. Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Both Clover Health Investments (NASDAQ: CLOV) and Senseonics Holdings (NYSEMKT: SENS) have emerged as meme stocks over the last few months. Senseonics has been the much bigger winner so far, but that doesn't necessarily mean it will continue to outperform Clover Health going forward. Two super-hyped meme stocks in the healthcare sector right now are Clover Health -- ticker there is CLOV-- and Senseonics Holdings. | Both Clover Health Investments (NASDAQ: CLOV) and Senseonics Holdings (NYSEMKT: SENS) have emerged as meme stocks over the last few months. In this Motley Fool Live video recorded on July 7, Motley Fool contributors Keith Speights and Brian Orelli discuss which of these two meme stocks is the better pick right now. If people didn't remember the story, basically I sold a covered call on Clover and it rocketed higher, so I sold them. | Both Clover Health Investments (NASDAQ: CLOV) and Senseonics Holdings (NYSEMKT: SENS) have emerged as meme stocks over the last few months. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: Meme stocks are just all the rage these days, so let's jump briefly on that bandwagon. Then at this point, I'm just holding onto them as a reminder not to sell covered calls and make some people hold onto their losers that are penny stocks just as a reminder that maybe you should think a little bit more about your purchases before you buy the stock while I'm holding onto my 19 shares to remind me not to sell covered calls on things that could eventually become meme stocks. | Both Clover Health Investments (NASDAQ: CLOV) and Senseonics Holdings (NYSEMKT: SENS) have emerged as meme stocks over the last few months. They stay on for 90 days, which is much longer than other glucose monitors, but it has to be inserted by a doctor. I'd rather buy at a $100 million in sales and lose a heck a lot of upside from here, but buy it where it's a lot less risky. |
32059.0 | 2021-07-14 00:00:00 UTC | 5 Stocks to Own for the Surge in Coronavirus Variants | ABT | https://www.nasdaq.com/articles/5-stocks-to-own-for-the-surge-in-coronavirus-variants-2021-07-14 | nan | nan | Although the pandemic has mostly faded from the front pages, mutations of the SARS-CoV-2 virus are increasing the odds that COVID will make a resurgence this winter. Add in many Americans' hesitancy over vaccines, and it appears the companies providing testing, treatments, and vaccine boosters could remain a part of our lives longer than it seemed only a few months ago.
That's why Fulgent Genetics (NASDAQ: FLGT), Lucira Health (NASDAQ: LHDX), Abbott Labs (NYSE: ABT), Roche Holdings (OTC: RHHBY), and BioNTech (NASDAQ: BNTX) are on my watch list as cases start climbing. Here's how each company could profit from the continuing efforts to end the pandemic.
Image source: Getty Images.
1. Fulgent Genetics
Even before the pandemic, Fulgent's market capitalization tripled in 2019 with 52% sales growth. Last year, COVID-19 pushed growth off the charts. Revenue rose 1,200% on the back of a 74-fold increase in testing volume. Beyond the numbers, the company established important relationships with state health departments, school systems, employers, and insurers.
The company has an opportunity on multiple fronts. First, it was awarded part of a CDC contract to track the virus using genomic sequencing. The surveillance will provide information about transmission and mutations to help all levels of government better respond to the crisis.
Also, daily case counts are starting to tick back up after a 95% drop from the peak in January. That includes areas where the company has testing agreements like California, New York City, and Utah. Management has already raised guidance once this year. The persistence of COVID could provide another boost when it reports earnings in early August.
2. Lucira Health
Lucira Health has only been a public company since February after launching an at-home COVID test in November 2020. The prescription-based product was the first at-home COVID test to receive emergency use authorization (EUA) in the U.S. It generated about $270,000 in the fourth quarter. That was followed by a 16-fold jump in the first quarter of 2021 to $4.5 million.
In April, the company's over-the-counter test received EUA. The molecular test accurately identifies 94% of people who have the virus and 98% of those who do not. Management isn't offering guidance yet, but it seemed hopeful after beating revenue estimates for the first quarter.
So far, Lucira has partnerships with a sports franchise, several prominent healthcare systems, and Amazon.com. As awareness increases, expect demand for the company's tests to grow. To take advantage, it will need to ramp up production quickly. Currently, the tests are sold out on the company's website and do not appear in searches on Amazon.com.
3. Abbott Laboratories
Similar to Lucira, Abbott's BinaxNOW COVID test will provide results in about half an hour. Unlike Lucira's test, Abbott's antigen test only detects about 85% of infections. It is just as accurate as Lucira in identifying those who are not infected.
Abbott has a clear advantage over other at-home tests in terms of distribution. It has relationships with CVS, Walgreens, and Walmart, among others and was shipping product a day after it received EUA.
In early June, the company lowered full-year guidance citing a sharp dropoff in demand for rapid COVID testing. That warning came when the delta variant was weeks away from American minds. Now that it is the dominant strain in the country, and cases are once again rising, a resurgence in testing could boost the company's outlook for the remainder of 2021.
4. Roche Holdings
Roche has two ways to gain if the SARS-CoV-2 virus continues to be a an issue. First, its nasal antigen test is a 15 minute, at-home diagnostic tool. It uses a swab from the lower part of the nostrils. That's a lot more comfortable than many tests while still providing between 86% and 91% accuracy in identifying true positives. The company has obtained EUA from the Food and Drug Administration, as well as a CE mark, allowing the test to be marketed in the European Union.
The second way Roche is helping to fight the pandemic is in treating COVID. The company -- with partner Regeneron -- has an antibody cocktail that management claims reduces hospitalizations and deaths of mild COVID cases by 70%. That drug has received EUA in the U.S. and Europe.
For severely ill COVID patients, it was granted EUA for its drug, tocilizumab. A recent study published in the New England Journal of Medicine did not demonstrate statistically different outcomes between pneumonia patients receiving the drug and those who got a placebo. Like Gilead's Remdesivir, that might not stand in the way of revenue as clinicians try whatever is available for the most severe cases.
5. BioNTech
Unlike testing and treatments, BioNTech's contribution to the fight against COVID -- along with partner Pfizer -- is in preventing the disease. Several studies across the globe have shown its vaccine remains highly effective against the variants. In preventing the worrisome delta strain, data from the U.K., Scotland, and Canada all showed the drug offered at least 79% protection.
Pfizer and BioNTech, as well as fellow vaccine producer Moderna have said boosters will be needed at some point to maintain the level of immunity. Although regulatory agencies in the U.S. have not agreed so far, they have left the door open to additional jabs as more data becomes available. If that happens, shares are likely to rise as Wall Street prices in a stream of revenue extending into the years ahead.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jason Hawthorne owns shares of BioNTech SE and Fulgent Genetics, Inc. The Motley Fool owns shares of and recommends Amazon and Fulgent Genetics, Inc. The Motley Fool recommends CVS Health and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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. | That's why Fulgent Genetics (NASDAQ: FLGT), Lucira Health (NASDAQ: LHDX), Abbott Labs (NYSE: ABT), Roche Holdings (OTC: RHHBY), and BioNTech (NASDAQ: BNTX) are on my watch list as cases start climbing. In early June, the company lowered full-year guidance citing a sharp dropoff in demand for rapid COVID testing. The company -- with partner Regeneron -- has an antibody cocktail that management claims reduces hospitalizations and deaths of mild COVID cases by 70%. | That's why Fulgent Genetics (NASDAQ: FLGT), Lucira Health (NASDAQ: LHDX), Abbott Labs (NYSE: ABT), Roche Holdings (OTC: RHHBY), and BioNTech (NASDAQ: BNTX) are on my watch list as cases start climbing. Add in many Americans' hesitancy over vaccines, and it appears the companies providing testing, treatments, and vaccine boosters could remain a part of our lives longer than it seemed only a few months ago. Unlike Lucira's test, Abbott's antigen test only detects about 85% of infections. | That's why Fulgent Genetics (NASDAQ: FLGT), Lucira Health (NASDAQ: LHDX), Abbott Labs (NYSE: ABT), Roche Holdings (OTC: RHHBY), and BioNTech (NASDAQ: BNTX) are on my watch list as cases start climbing. Lucira Health Lucira Health has only been a public company since February after launching an at-home COVID test in November 2020. Abbott Laboratories Similar to Lucira, Abbott's BinaxNOW COVID test will provide results in about half an hour. | That's why Fulgent Genetics (NASDAQ: FLGT), Lucira Health (NASDAQ: LHDX), Abbott Labs (NYSE: ABT), Roche Holdings (OTC: RHHBY), and BioNTech (NASDAQ: BNTX) are on my watch list as cases start climbing. Revenue rose 1,200% on the back of a 74-fold increase in testing volume. Lucira Health Lucira Health has only been a public company since February after launching an at-home COVID test in November 2020. |
32060.0 | 2021-07-13 00:00:00 UTC | Abbott Laboratories (ABT) Ex-Dividend Date Scheduled for July 14, 2021 | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-ex-dividend-date-scheduled-for-july-14-2021-2021-07-13 | nan | nan | Abbott Laboratories (ABT) will begin trading ex-dividend on July 14, 2021. A cash dividend payment of $0.45 per share is scheduled to be paid on August 16, 2021. Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that ABT has paid the same dividend. At the current stock price of $118.81, the dividend yield is 1.52%.
The previous trading day's last sale of ABT was $118.81, representing a -7.57% decrease from the 52 week high of $128.54 and a 29.55% increase over the 52 week low of $91.71.
ABT is a part of the Health Care sector, which includes companies such as 3M Company (MMM) and Intuitive Surgical, Inc. (ISRG). ABT's current earnings per share, an indicator of a company's profitability, is $3.19. Zacks Investment Research reports ABT's forecasted earnings growth in 2021 as 19.18%, compared to an industry average of 15.5%.
For more information on the declaration, record and payment dates, visit the ABT Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABT through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABT as a top-10 holding:
iShares U.S. ETF Trust (ABT)
Invesco Dynamic Pharmaceuticals ETF (ABT)
SPDR Select Sector Fund - Health Care (ABT)
iShares U.S. Healthcare ETF (ABT)
iShares U.S. Medical Devices ETF (ABT).
The top-performing ETF of this group is XLV with an increase of 10.66% over the last 100 days. IEHS has the highest percent weighting of ABT at 7.73%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABT's forecasted earnings growth in 2021 as 19.18%, compared to an industry average of 15.5%. For more information on the declaration, record and payment dates, visit the ABT Dividend History page. | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. ABT's current earnings per share, an indicator of a company's profitability, is $3.19. The following ETF(s) have ABT as a top-10 holding: iShares U.S. ETF Trust (ABT) Invesco Dynamic Pharmaceuticals ETF (ABT) SPDR Select Sector Fund - Health Care (ABT) iShares U.S. Healthcare ETF (ABT) iShares U.S. Medical Devices ETF (ABT). | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABT Dividend History page. The following ETF(s) have ABT as a top-10 holding: iShares U.S. ETF Trust (ABT) Invesco Dynamic Pharmaceuticals ETF (ABT) SPDR Select Sector Fund - Health Care (ABT) iShares U.S. Healthcare ETF (ABT) iShares U.S. Medical Devices ETF (ABT). | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ABT as a top-10 holding: iShares U.S. ETF Trust (ABT) Invesco Dynamic Pharmaceuticals ETF (ABT) SPDR Select Sector Fund - Health Care (ABT) iShares U.S. Healthcare ETF (ABT) iShares U.S. Medical Devices ETF (ABT). Abbott Laboratories (ABT) will begin trading ex-dividend on July 14, 2021. |
32061.0 | 2021-07-13 00:00:00 UTC | 5 “Strong Buy” Dividend Stocks for July 2021 | ABT | https://www.nasdaq.com/articles/5-strong-buy-dividend-stocks-for-july-2021-2021-07-13 | nan | nan | Dividend stocks are popular for providing investors with a steady income flow. Furthermore, as dividends are paid out of profits and retained earnings, a dividend-paying company is usually stable and has strong earnings growth potential. Thus, adding a dividend stock into one's portfolio enhances overall returns in the long run and adds a much-needed safety net amid wild market swings.
Take Coca-Cola or Procter & Gamble stock as an example. Both of these companies have consistently paid dividends for a very long period and uninterruptedly increased it for more than 50 years. That means their shareholders were paid even during the down years.
Like Coca-Cola and Procter & Gamble, several stocks have consistently hiked their dividends. This is important, as a growing dividend reduces the payback period of the initial investment.
Top Dividend Stocks
Using the TipRanks Dividend Calendar, this article zeroes in on five Strong Buy stocks with an ex-dividend date in July 2021. An ex-dividend date implies that investors must own the stock by that date to be eligible for receiving the next dividend payout. The article also focuses on stocks that have consistently grown dividends for a considerable amount of time and have a sustainable payout ratio.
IDEX Corporation (IEX)
Dividend yield: 0.93%
Ex-dividend date: July 14, 2021
Payout ratio: 40.01%
Payout date: July 30, 2021
IDEX Corporation is a diversified engineering product manufacturer. IDEX has paid a regular dividend for 106 consecutive quarters and raised its dividend from $1.07 a share in 2014 to $2.0 per share in 2020. Moreover, it recently announced an 8% hike in annual dividends to $2.16 per share. IDEX stock has a Strong Buy analyst rating consensus, and the average price target indicates about 9% upside potential to current levels. Furthermore, the stock has positive indicators from financial bloggers. Moreover, hedge funds increased their holdings by 93.7K shares in the last quarter. However, insiders have been reducing their exposure to IEX. The stock has a ‘Neutral’ Smart Score of 7.
Abbott Labs (ABT)
Dividend yield: 1.43%
Ex-dividend date: July 14, 2021
Payout ratio: 50.66%
Payout date: Aug. 16, 2021
Medical devices and healthcare leader Abbott Labs has paid dividends since 1924. Furthermore, it raised its dividend for 49 years in a row and is a part of the S&P 500 Dividend Aristocrats Index. In Dec. 2020, Abbott announced a 25% hike to its annual dividend, reflecting the strength of its “diversified business” and its “ability to invest in future growth while returning immediate value to shareholders.” Abbott stock has a Strong Buy analyst rating consensus. Furthermore, the stock has positive indicators from financial bloggers and individual investors. Moreover, hedge fund managers increased their holdings by 484.5K shares in the last quarter. While insiders sold the stock, Abbott has an ‘Outperform’ Smart Score of 8.
EOG Resources (EOG)
Dividend yield: 3.12%
Ex-dividend date: July 15, 2021
Payout ratio: NA
Payout date: July 30, 2021
EOG Resources is involved in the exploration and production of crude oil and natural gas. It has been paying and growing its dividend since 1999. Earlier this year, EOG hiked its annual dividend by 10%. The average analyst price target of $98.84 indicates approximately 19% upside potential. While financial bloggers and investors have positive outlooks on EOG stock, hedge fund managers reduced their holdings by 88.3K shares in the last three months. Nevertheless, the stock has Strong Buy analyst rating consensus and an ‘Outperform’ Smart Score of a "Perfect 10."
Lowe’s Companies (LOW)
Dividend yield: 1.33%
Ex-dividend date: July 20, 2021
Payout ratio: 25.57%
Payout date: Aug. 4, 2021
Home improvement company Lowe’s Companies has paid a regular dividend since 1961 and raised it for 25 consecutive years. Thanks to its strong cash flow generation, Lowe's recently announced a 33% hike in its dividend. Lowe’s stock has a Strong Buy analyst rating consensus, and the average price target of $231.38 indicates over 18% upside potential to current levels. Furthermore, the stock has positive indicators from individual investors and financial bloggers. However, hedge fund managers lowered their holdings by 674.2K shares in the last quarter. Lowe’s stock has an ‘Outperform’ Smart Score of 9.
NiSource Inc (NI)
Dividend yield: 3.44%
Ex-dividend date: July 29, 2021
Payout ratio: NA
Payout date: Aug. 20, 2021
NiSource operates a rate-regulated utility business. Earlier this year, the company announced a 5% increase in its annual dividends to $0.88 a share. NiSource’s CEO, Joe Hamrock, said, “An increasing dividend is a key part of our overall value proposition. At the same time, we’re balancing this increase with our need to fund significant near-term investment opportunities while continuing to target a 60 to 70 percent payout ratio.” NiSource stock has a Strong Buy analyst rating consensus, and the average price target indicates over 13% upside potential to current levels. Furthermore, the stock has positive indicators from individual investors, financial bloggers, and hedge fund managers. NiSource stock has an ‘Outperform’ Smart Score of 9.
Besides these top five Strong Buy stocks, see which other stocks have an ex-dividend date in July 2021.
Disclaimer: The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs (ABT) Dividend yield: 1.43% Ex-dividend date: July 14, 2021 Payout ratio: 50.66% Payout date: Aug. 16, 2021 Medical devices and healthcare leader Abbott Labs has paid dividends since 1924. Thus, adding a dividend stock into one's portfolio enhances overall returns in the long run and adds a much-needed safety net amid wild market swings. IDEX stock has a Strong Buy analyst rating consensus, and the average price target indicates about 9% upside potential to current levels. | Abbott Labs (ABT) Dividend yield: 1.43% Ex-dividend date: July 14, 2021 Payout ratio: 50.66% Payout date: Aug. 16, 2021 Medical devices and healthcare leader Abbott Labs has paid dividends since 1924. IDEX Corporation (IEX) Dividend yield: 0.93% Ex-dividend date: July 14, 2021 Payout ratio: 40.01% Payout date: July 30, 2021 IDEX Corporation is a diversified engineering product manufacturer. EOG Resources (EOG) Dividend yield: 3.12% Ex-dividend date: July 15, 2021 Payout ratio: NA Payout date: July 30, 2021 EOG Resources is involved in the exploration and production of crude oil and natural gas. | Abbott Labs (ABT) Dividend yield: 1.43% Ex-dividend date: July 14, 2021 Payout ratio: 50.66% Payout date: Aug. 16, 2021 Medical devices and healthcare leader Abbott Labs has paid dividends since 1924. Top Dividend Stocks Using the TipRanks Dividend Calendar, this article zeroes in on five Strong Buy stocks with an ex-dividend date in July 2021. Lowe’s Companies (LOW) Dividend yield: 1.33% Ex-dividend date: July 20, 2021 Payout ratio: 25.57% Payout date: Aug. 4, 2021 Home improvement company Lowe’s Companies has paid a regular dividend since 1961 and raised it for 25 consecutive years. | Abbott Labs (ABT) Dividend yield: 1.43% Ex-dividend date: July 14, 2021 Payout ratio: 50.66% Payout date: Aug. 16, 2021 Medical devices and healthcare leader Abbott Labs has paid dividends since 1924. Both of these companies have consistently paid dividends for a very long period and uninterruptedly increased it for more than 50 years. While financial bloggers and investors have positive outlooks on EOG stock, hedge fund managers reduced their holdings by 88.3K shares in the last three months. |
32062.0 | 2021-07-12 00:00:00 UTC | IVW, V, TMO, ABT: Large Inflows Detected at ETF | ABT | https://www.nasdaq.com/articles/ivw-v-tmo-abt%3A-large-inflows-detected-at-etf-2021-07-12 | 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 $89.5 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 470,650,000 to 471,850,000). Among the largest underlying components of IVW, in trading today Visa Inc (Symbol: V) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. 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 $52.585 per share, with $74.9138 as the 52 week high point — that compares with a last trade of $74.77. 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 IVW, in trading today Visa Inc (Symbol: V) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. 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 $52.585 per share, with $74.9138 as the 52 week high point — that compares with a last trade of $74.77. 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 Visa Inc (Symbol: V) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. 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 $52.585 per share, with $74.9138 as the 52 week high point — that compares with a last trade of $74.77. 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 Visa Inc (Symbol: V) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $89.5 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 470,650,000 to 471,850,000). 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 $52.585 per share, with $74.9138 as the 52 week high point — that compares with a last trade of $74.77. | Among the largest underlying components of IVW, in trading today Visa Inc (Symbol: V) is down about 0.1%, Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, and Abbott Laboratories (Symbol: ABT) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $89.5 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 470,650,000 to 471,850,000). 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 $52.585 per share, with $74.9138 as the 52 week high point — that compares with a last trade of $74.77. |
32063.0 | 2021-07-12 00:00:00 UTC | Ex-Dividend Reminder: Abbott Laboratories, AbbVie and BankUnited | ABT | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbott-laboratories-abbvie-and-bankunited-2021-07-12 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 8/16/21, AbbVie Inc will pay its quarterly dividend of $1.30 on 8/16/21, and BankUnited Inc. will pay its quarterly dividend of $0.23 on 7/30/21. As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. Similarly, investors should look for ABBV to open 1.11% lower in price and for BKU to open 0.55% lower, all else being equal.
Below are dividend history charts for ABT, ABBV, and BKU, showing historical dividends prior to the most recent ones declared.
Abbott Laboratories (Symbol: ABT):
AbbVie Inc (Symbol: ABBV):
BankUnited Inc. (Symbol: BKU):
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 1.51% for Abbott Laboratories, 4.43% for AbbVie Inc, and 2.20% for BankUnited Inc..
In Monday trading, Abbott Laboratories shares are currently down about 0.3%, AbbVie Inc shares are up about 0.8%, and BankUnited Inc. shares are down about 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. | As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ABT, ABBV, and BKU, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): BankUnited Inc. (Symbol: BKU): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. | Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): BankUnited Inc. (Symbol: BKU): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. | As a percentage of ABT's recent stock price of $119.38, this dividend works out to approximately 0.38%, so look for shares of Abbott Laboratories to trade 0.38% lower — all else being equal — when ABT shares open for trading on 7/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 7/14/21, Abbott Laboratories (Symbol: ABT), AbbVie Inc (Symbol: ABBV), and BankUnited Inc. (Symbol: BKU) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ABT, ABBV, and BKU, showing historical dividends prior to the most recent ones declared. |
32064.0 | 2021-07-12 00:00:00 UTC | Will Intuitive Surgical Stock Continue Its Rally After A 15% Rise In A Month? | ABT | https://www.nasdaq.com/articles/will-intuitive-surgical-stock-continue-its-rally-after-a-15-rise-in-a-month-2021-07-12 | nan | nan | [Updated: 7/8/2021] ISRG Stock Rise
The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 15% rise over the last twenty-one trading days, while it is up a solid 64% over the last year. ISRG stock has benefited from a rebound in volume of procedures and strong Q1 results. Total procedures grew 16%, while the company placed 298 new da Vinci systems in Q1, as compared to 10% growth in procedures and 237 system placements in the prior year quarter. This trend is expected to continue with an increased Covid-19 vaccination rate, as people feel more confident in heading out of their homes and attend to elective surgeries that were postponed during the pandemic.
However, now that ISRG stock has seen a rise of 15% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a rise in ISRG stock over the next month. Out of 43 instances in the last two years that ISRG stock saw a twenty-one day rise of 15% or more, 24 of them resulted in ISRG stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 24 out of 43, or about 56% chance of a rise in ISRG stock over the coming month. See our analysis on Intuitive Surgical Stock Chances of A Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last two years data
After moving 3.4% or more over a five-day period, the stock rose in the next five days on 51% of the occasions.
After moving 5.6% or more over a ten-day period, the stock rose in the next ten days only on 46% of the occasions
After moving 15.0% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 56% of the occasions.
Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise
Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers
Five-Day Return: EW highest at 4%; BSX lowest at 1.3%
Ten-Day Return: ISRG highest at 5.6%; BSX lowest at -0.09%
Twenty-One Days Return: ISRG highest at 15%; MDT lowest at 2.7%
Although with momentum on its side and going by historical performance, it appears that ISRG stock may see even higher levels, we continue to believe that it is richly valued at the current levels, and investors may be better off to wait for any dip to buy the stock. Our update below has more details.
While ISRG stock may see higher prices, 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.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
[Updated: 6/28/2021] ISRG Stock Richly Valued
We believe that the stock price of Intuitive Surgical (NASDAQ: ISRG) appears fully valued at the current levels of around $900, and it is vulnerable to downside risk. ISRG stock is up 2.5x from the levels of around $367 it was at on March 23, 2020, when broader markets made a bottom. This marks a significant outperformance compared to the S&P 500, which is up 91% over the same period. The outperformance of ISRG stock can partly be attributed to upbeat results over the recent quarters, led by a rebound in procedures volume.
Looking at a longer time period, ISRG stock is up 90% from the levels of around $480 seen toward the end of 2018 (vs. an S&P 500 rise of around 70%). Much of the 90% rise in ISRG stock over the last two years or so can be attributed to favorable changes in the company’s P/E multiple. Looking at the fundamentals, the company’s total revenue grew 24% to $4.6 billion over the last twelve month period, compared to $3.7 billion in 2018. The revenue rise can largely be attributed to a higher number of system placements, which, in turn, generated higher recurring revenue from consumables and services for the company. However, the company’s net margins declined 590 bps to 24.4% over the last twelve months, compared to 30.3% in 2018. This can be attributed to lower sales and increased operating costs in 2020, due to the impact of the pandemic. The company saw a 4% rise in total shares outstanding due to share issuances.
As such, on a per share basis, Intuitive Surgical’s earnings grew less than 1% to $9.98 for the last twelve month period, compared to $9.92 in 2018. Despite only a modest rise in EPS over the recent years, Intuitive Surgical’s P/E multiple has expanded a large 108% to 100x currently, compared to levels of around 50x seen in 2018. Our dashboard, ‘What Factors Drove 90% Change In Intuitive Surgical Stock between 2018 and now?‘, has the underlying numbers.
Outlook
While the Covid-19 pandemic weighed on the company’s performance over the past few quarters, the opening up of economies would mean a rebound in volume of procedures performed, boding well for ISRG stock. The company reported an 18% y-o-y growth in its top-line to $1.3 billion in Q1 2021. This can be attributed to higher demand for consumables as well as higher services revenue. Intuitive Surgical’s earnings grew 31% y-o-y to $3.52 on an adjusted basis, led by growth in revenues as well as margin expansion, a trend expected to continue in the near term.
That said, ISRG stock does appear to be richly valued now. At the current levels of over $900, ISRG stock is trading at 67x its forward estimated adjusted EPS of $13.50 in 2021, compared to levels of around 60x seen in 2019 and 2020, and levels of under 40x seen prior to 2019. This means that the P/E multiple for ISRG stock is much higher than its historical levels, and the stock is vulnerable to some downside risk, in our view.
Furthermore, another medical devices company – Medtronic – launched its robotic assisted surgical system, Hugo, last year. Hugo allows the surgeon to control up to four independent robotic arms during the procedure from one console, and it can easily be moved within a hospital, unlike Intuitive Surgical’s da Vinci systems, which are immovable once fixed. We know that Medtronic has a long road ahead to catch up to Intuitive Surgical, given that the latter already has over 6,000 robotic surgical systems placed globally. However, Hugo is also likely to see some demand, implying an increased competition for Intuitive Surgical, and a likely decline in the high multiple that Intuitive Surgical has enjoyed thus far.
Although ISRG is a high-quality stock to invest in, given the company’s business model, which ensures recurring revenues from consumables on each installed device, and that the robotic-assisted surgery market will be large enough over the coming years for multiple players to thrive, based on the current valuation, we believe that it will be prudent for investors to wait for a better entry point in ISRG stock to buy for higher gains.
While ISRG stock may see lower 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 ICU Medical vs Abbott.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This trend is expected to continue with an increased Covid-19 vaccination rate, as people feel more confident in heading out of their homes and attend to elective surgeries that were postponed during the pandemic. Intuitive Surgical’s earnings grew 31% y-o-y to $3.52 on an adjusted basis, led by growth in revenues as well as margin expansion, a trend expected to continue in the near term. Hugo allows the surgeon to control up to four independent robotic arms during the procedure from one console, and it can easily be moved within a hospital, unlike Intuitive Surgical’s da Vinci systems, which are immovable once fixed. | [Updated: 7/8/2021] ISRG Stock Rise The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 15% rise over the last twenty-one trading days, while it is up a solid 64% over the last year. Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4%; BSX lowest at 1.3% Ten-Day Return: ISRG highest at 5.6%; BSX lowest at -0.09% Twenty-One Days Return: ISRG highest at 15%; MDT lowest at 2.7% Although with momentum on its side and going by historical performance, it appears that ISRG stock may see even higher levels, we continue to believe that it is richly valued at the current levels, and investors may be better off to wait for any dip to buy the stock. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams [Updated: 6/28/2021] ISRG Stock Richly Valued We believe that the stock price of Intuitive Surgical (NASDAQ: ISRG) appears fully valued at the current levels of around $900, and it is vulnerable to downside risk. | [Updated: 7/8/2021] ISRG Stock Rise The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 15% rise over the last twenty-one trading days, while it is up a solid 64% over the last year. Out of 43 instances in the last two years that ISRG stock saw a twenty-one day rise of 15% or more, 24 of them resulted in ISRG stock rising over the subsequent one month period (twenty-one trading days). Predict average return on Intuitive Surgical (ISRG) Stock Return: AI Predicts ISRG Average and Excess Return After a Fall or Rise Intuitive Surgical (ISRG) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4%; BSX lowest at 1.3% Ten-Day Return: ISRG highest at 5.6%; BSX lowest at -0.09% Twenty-One Days Return: ISRG highest at 15%; MDT lowest at 2.7% Although with momentum on its side and going by historical performance, it appears that ISRG stock may see even higher levels, we continue to believe that it is richly valued at the current levels, and investors may be better off to wait for any dip to buy the stock. | [Updated: 7/8/2021] ISRG Stock Rise The stock price of Intuitive Surgical (NASDAQ: ISRG) has seen a 15% rise over the last twenty-one trading days, while it is up a solid 64% over the last year. Total procedures grew 16%, while the company placed 298 new da Vinci systems in Q1, as compared to 10% growth in procedures and 237 system placements in the prior year quarter. Out of 43 instances in the last two years that ISRG stock saw a twenty-one day rise of 15% or more, 24 of them resulted in ISRG stock rising over the subsequent one month period (twenty-one trading days). |
32065.0 | 2021-07-09 00:00:00 UTC | Why Lucira Health Is Rocketing Higher Today | ABT | https://www.nasdaq.com/articles/why-lucira-health-is-rocketing-higher-today-2021-07-09 | nan | nan | What happened
Shares of Lucira Health (NASDAQ: LHDX) -- a maker of consumer-friendly at-home COVID-19 tests -- climbed as much as 40% higher Friday afternoon. The move prompted a temporary halt in trading of shares.
There was no news from the company. Shares remain up more than 20% as of 3:30 p.m. EDT on almost five times the average daily volume.
Image source: Getty Images.
So what
Lucira only has a $300 million market capitalization, so traders piling into the stock based on momentum could be having a significant impact on the price. Despite the lack of news, the stock was a popular topic of discussion on Twitter. Most of the chatter centered on previous highs or trading patterns -- two factors that bear no relationship to the underlying value of the company.
Now what
Lucira went public in early February and more than doubled in its first two weeks of trading. Until the move today, the stock had lost more than 80% of its value since that mid-February peak.
Both the company's prescription test kit and over-the-counter offering are sold out online.
Other tests -- like Binax from Abbott Laboratories -- were available. That might indicate high demand for Lucira or constrained manufacturing. Traders still holding shares should find out in mid-July when the company will likely report second-quarter earnings.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Lucira Health (NASDAQ: LHDX) -- a maker of consumer-friendly at-home COVID-19 tests -- climbed as much as 40% higher Friday afternoon. So what Lucira only has a $300 million market capitalization, so traders piling into the stock based on momentum could be having a significant impact on the price. Most of the chatter centered on previous highs or trading patterns -- two factors that bear no relationship to the underlying value of the company. | What happened Shares of Lucira Health (NASDAQ: LHDX) -- a maker of consumer-friendly at-home COVID-19 tests -- climbed as much as 40% higher Friday afternoon. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jason Hawthorne has no position in any of the stocks mentioned. | What happened Shares of Lucira Health (NASDAQ: LHDX) -- a maker of consumer-friendly at-home COVID-19 tests -- climbed as much as 40% higher Friday afternoon. 10 stocks we like better than Lucira Health, Inc. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jason Hawthorne has no position in any of the stocks mentioned. | There was no news from the company. 10 stocks we like better than Lucira Health, Inc. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
32066.0 | 2021-07-09 00:00:00 UTC | 7 Super-Safe Dividend Stock Performers to Buy | ABT | https://www.nasdaq.com/articles/7-super-safe-dividend-stock-performers-to-buy-2021-07-09 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In most cases, taking longshot bets in the market don’t pan out. However, for those brave contrarians that bought publicly traded securities during the initial onslaught of the novel coronavirus pandemic, they managed to accrue incredible profitability. Many onlookers quickly followed with their own money, making the case for buying super-safe dividend stocks less appealing than they already were.
Admittedly, with the very strong showing for the June jobs report, the case for being defensive has taken a hit. If boring dividend stocks lacked an incentive during the mad rush for growth in 2020, you wouldn’t expect them to gain one right now. With employers adding 850,000 workers in the first month of summer — the largest monthly gain since August — this report provided evidence of a significant recovery.
Still, you don’t want to dismiss the potential for dividend stocks based on the encouraging jobs report. For one thing, the labor force participation rate remains unchanged between May to June at 61.6%. That’s an oddity, suggesting that the millions of people who dropped out of the workforce due to Covid-19 have yet to return. Second, you don’t want to make too many assumptions based on a single monthly reading.
It’s also important to note that the equities market isn’t the same thing as the underlying economy. While one can definitely affect the other, individual components of each concept can operate relatively independently. And that sets up a risky circumstance since many securities are stretched due to overspeculation. Therefore, reliable dividend stocks are much more palatable than your fast-charging growth names.
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In addition, dividend stocks provide you with two main avenues for profitability. First, if shares rise in valuation, you can always sell some and pocket those gains. Second, you can wait out a potential storm while collecting passive income. For that reason, investors should look into these comparatively safe investments.
Costco (NASDAQ:COST)
Apple (NASDAQ:AAPL)
Abbott Laboratories (NYSE:ABT)
Procter & Gamble (NYSE:PG)
Coca-Cola (NYSE:KO)
AbbVie (NYSE:ABBV)
Prudential Financial (NYSE:PRU)
Before we move forward, I want to make clear one thing: this isn’t about pivoting all your investments toward dividend stocks. Rather, these are just ideas to consider as the risk posture of the market potentially rises.
Safe Dividend Stocks: Costco (COST)
COST) logo on a sign on a Costco store." width="300" height="169">
Source: ARTYOORAN / Shutterstock.com
While you can pretty much find anything under the sun at Costco — and at incredible volumes — what you won’t get with COST stock is a generous payout. With a last-12-month yield of only 0.71%, Costco isn’t exactly giving you the dividend equivalent of an 800-pound jar of mayonnaise. But if you’re focused on safe and reliable, you won’t find too many shares with a better look.
For one thing, COST has delivered 16 years of consecutive dividend increases. While this is a few years shy of aristocrat status, it’s getting up there. Moreover, Costco has a very attractive business during these uncertain times. Of course, during the initial onslaught of the coronavirus pandemic, Costco was the place to go for a five years’ supply of rice, beans and toilet paper.
Today, the situation has calmed down substantially. And while the Black Friday everyday catalyst is gone, the company still levers an affluent membership base. According to several sources, the average Costco member has a household income of $100,000. Should circumstances go south, this is one of the dividend stocks that will have its lights on.
Apple (AAPL)
AAPL) logo on glass with people in background" width="300" height="169">
Source: ZorroGabriel / Shutterstock.com
For quite a while, I’ve questioned Apple’s ability to stay relevant amid a very competitive smart device marketplace. Yes, its iPhone is ubiquitous and iconic but I figured that the intensity of its brand would fade somewhat with competitors offering just-as-adequate technology but for a lower price. But I’ve been wrong to doubt AAPL stock. It just keeps on charging higher.
If you’re at least somewhat worried about the true health of the economy, Apple frankly might not appear a smart investment. Why bother with companies that make premium consumer electronics when a cheaper device will get the core essentials done? But the situation is consumers are willing to do whatever they can to grab the latest iPhone or iWhatever. You really can’t put a price tag on that kind of organic enthusiasm.
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On the less-than-pleasant side, because of Apple’s strong business, it’s hardly the most generous among dividend stocks. Its last-12-month yield of 0.63% is utterly paltry. Still, if you want to look at this from the bright side, this is one of the discretionary names you can depend on through thick and thin.
Safe Dividend Stocks: Abbott Laboratories (ABT)
Source: Sundry Photography/Shutterstock.com
Traditionally, analysts regard Abbott Laboratories as one of the safer dividend stocks to buy. A multinational medical devices and healthcare firm specializing in testing platforms, Abbott has always been relevant, albeit lacking in much excitement. Of course, that all changed during the coronavirus onslaught when investors couldn’t get enough of ABT stock.
Sure, most of the attention was paid toward the development of antibody treatments and later vaccines. But chasing these avenues presumably would leave few outright winners. Rather, Abbott was organically positioned to play a higher-probability game: affordable and accessible Covid-19 testing kits. Naturally, this led to ABT being one of the dividend stocks that generated both passive income and capital gains.
Moving forward, I still like the relevancy of its business, particularly regarding FreeStyle Libre, its continuous glucose monitoring (CGM) solution for diabetes patients. As I mentioned in my write-up for Senseonics (NYSEAMERICAN:SENS), another rival in the CGM space, FreeStyle doesn’t require fingerstick calibrations. Therefore, Abbott provides a viable alternative, even with strong competition in the arena.
Procter & Gamble (PG)
PG) on a store shelf." width="300" height="169">
Source: rblfmr/ShutterStock.com
Whenever I’m asked to discuss safe dividend stocks, my mind automatically goes to Procter & Gamble. How can it not? It’s just one of those kneejerk reactions that you give that have zero controversy involved and 100% upside. PG stock is the political equivalent of the three answers you provide when asked why you want to run for president: freedom, America and freedom.
Now, every once in a blue moon, Procter & Gamble and similar consumer staples get their day in the sun. That happened back in February through April of last year, when a then-extremely mysterious virus began infiltrating American society. Suddenly, consumers rushed to their local grocery stores and big-box retailers and bought everything consumer goods related, including of course toilet paper.
For full disclosure, I personally found that Procter’s Charmin Ultra Strong Super Mega Rolls provide excellent value for your money, both on a financial cost basis and durability — I’ll spare you the details about the latter.
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But will PG still hold up as one of the stable dividend stocks moving forward? Absolutely. While the yield isn’t anything to get worked up over, the underlying business specializes in core essentials. No recession can stop that demand stream.
Safe Dividend Stocks: Coca-Cola (KO)
Source: Tetiana Shumbasova / Shutterstock.com
At first glance, Coca-Cola doesn’t come off as one of the dividend stocks to consider, especially if you’re worried about what might come next for the economy. As multiple reports indicated, millennials have gradually eschewed sugary soft drinks for zero-calorie alternatives. That’s not exactly helpful when your corporate brand is about addictive sugary beverages.
Still, Coca-Cola’s management team has known about this problem and over recent years have started to address it. Through thinner packaging and more appealing, relevant designs, Coca-Cola can win back younger consumers with its “healthier” alternatives.
In addition, it’s not entirely clear that millennials are really as health conscious as they say they are. If that were true, the military wouldn’t have trouble recruiting people based on health standards. Also, several soda brands are making a comeback based on the nostalgia effect for older millennials.
Finally, it’s important to note that KO stock has long been considered one of the safe dividend stocks to buy during periods of economic turmoil, let alone uncertainty. As a form of cheap indulgence, Coca-Cola-branded products aren’t worth cutting from the budget (unless things get really desperate).
AbbVie (ABBV)
Despite not having an overtly strong role to address the Covid-19 crisis — that is to say, it wasn’t butting heads with Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) in the vaccine race — AbbVie nevertheless enjoyed a robust performance since the March doldrums. Yes, ABBV stock did take a momentary turn for the worse when the crisis first hit. But since then, it has enjoyed relatively consistent success.
Notably, though, AbbVie started looking intriguing in the middle of the fourth quarter of 2020. Primarily, many analysts anticipated that the crisis will significantly fade sometime in 2021. And if that turned out to be the case, then “regular” healthcare needs — whether that be acute or chronic conditions not related to the pandemic — would take their rightful seats.
For AbbVie, its Botox business that it acquired through the Allergan takeover — should prove lucrative in the post-Covid environment. That’s because for roughly one year, millions of Americans stayed home over concerns about coronavirus infections. Now that this negative catalyst is becoming less of a worry due to myriad factors, people will start to care about their physical appearance.
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Cynically, that’s a tailwind for ABBV, making it an interesting play among safe dividend stocks.
Safe Dividend Stocks: Prudential Financial (PRU)
Source: JHVEPhoto / Shutterstock.com
Usually, the idea of investing in insurance companies brings out nothing but sheer boredom. But if you’re looking for super-safe dividend stocks to buy, boring is an attribute. Not only that, insurance firms like Prudential Financial provide an intriguing outlook, especially after the coronavirus pandemic.
For decades, Americans have largely been insulated from the terrible events that occur in other parts of the world, particularly developing regions. Yes, we’ve had our fair share of natural disasters along with terror attacks. But the coronavirus pandemic was arguably the first crisis in modern U.S. history where everybody had to do their part for the betterment of the nation. During this period of collective sacrifice, I believe many have become quite aware of their mortality.
Therefore, I don’t think it’s unreasonable to assume that financial products such as life insurance coverage will go up. If the pandemic taught us anything, it’s that life is precious and it can be taken away in an instant from threats both visible and invisible. That’s a huge wakeup call, one that cynically benefits PRU stock.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Super-Safe Dividend Stock Performers to Buy 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. | Costco (NASDAQ:COST) Apple (NASDAQ:AAPL) Abbott Laboratories (NYSE:ABT) Procter & Gamble (NYSE:PG) Coca-Cola (NYSE:KO) AbbVie (NYSE:ABBV) Prudential Financial (NYSE:PRU) Before we move forward, I want to make clear one thing: this isn’t about pivoting all your investments toward dividend stocks. Safe Dividend Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Traditionally, analysts regard Abbott Laboratories as one of the safer dividend stocks to buy. Of course, that all changed during the coronavirus onslaught when investors couldn’t get enough of ABT stock. | Costco (NASDAQ:COST) Apple (NASDAQ:AAPL) Abbott Laboratories (NYSE:ABT) Procter & Gamble (NYSE:PG) Coca-Cola (NYSE:KO) AbbVie (NYSE:ABBV) Prudential Financial (NYSE:PRU) Before we move forward, I want to make clear one thing: this isn’t about pivoting all your investments toward dividend stocks. Safe Dividend Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Traditionally, analysts regard Abbott Laboratories as one of the safer dividend stocks to buy. Of course, that all changed during the coronavirus onslaught when investors couldn’t get enough of ABT stock. | Costco (NASDAQ:COST) Apple (NASDAQ:AAPL) Abbott Laboratories (NYSE:ABT) Procter & Gamble (NYSE:PG) Coca-Cola (NYSE:KO) AbbVie (NYSE:ABBV) Prudential Financial (NYSE:PRU) Before we move forward, I want to make clear one thing: this isn’t about pivoting all your investments toward dividend stocks. Safe Dividend Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Traditionally, analysts regard Abbott Laboratories as one of the safer dividend stocks to buy. Of course, that all changed during the coronavirus onslaught when investors couldn’t get enough of ABT stock. | Safe Dividend Stocks: Abbott Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Traditionally, analysts regard Abbott Laboratories as one of the safer dividend stocks to buy. Costco (NASDAQ:COST) Apple (NASDAQ:AAPL) Abbott Laboratories (NYSE:ABT) Procter & Gamble (NYSE:PG) Coca-Cola (NYSE:KO) AbbVie (NYSE:ABBV) Prudential Financial (NYSE:PRU) Before we move forward, I want to make clear one thing: this isn’t about pivoting all your investments toward dividend stocks. Of course, that all changed during the coronavirus onslaught when investors couldn’t get enough of ABT stock. |
32067.0 | 2021-07-08 00:00:00 UTC | Abbott's St. Jude Medical To Pay $27 Mln To Settle Allegations Over Heart Devices | ABT | https://www.nasdaq.com/articles/abbotts-st.-jude-medical-to-pay-%2427-mln-to-settle-allegations-over-heart-devices-2021-07 | nan | nan | (RTTNews) - St. Jude Medical Inc. agreed to pay $27 million to settle allegations that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal health care programs, the U.S. Department of Justice said in a statement.
St. Jude was acquired by Abbott Laboratories in January 2017.
The U.S. alleged that St. Jude failed to disclose serious adverse health events in connection with the premature depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra and Unify devices, which are implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat.
The devices are surgically implanted into patients' chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to "shock" it back to its normal rhythm.
The U.S. alleged that, by 2013, St. Jude knew that lithium clusters formed on the batteries of the devices, causing some of the batteries to short and, in turn, suffer a premature power drain.
The U.S. alleged that, in late 2014, St. Jude submitted a request to the FDA to approve a change to prevent lithium clusters from draining the battery and told the FDA, "no serious injury, permanent harm or deaths have been reported associated with this" issue.
However, according to the government's allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion induced by lithium clusters.
St. Jude continued to distribute devices that had been manufactured without the new design.
In August 2016, St. Jude contacted the FDA and informed it that the number of premature battery depletion events had increased to 729, including two deaths and 29 events associated with loss of pacing.
In October 2016, St. Jude issued a medical advisory regarding the PBD caused by lithium cluster shorts, which FDA classified as a Class I recall. After the recall, St. Jude no longer sold the older devices, but thousands of them had been implanted into patients between November 20, 2014, and October 10, 2016.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - St. Jude Medical Inc. agreed to pay $27 million to settle allegations that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal health care programs, the U.S. Department of Justice said in a statement. However, according to the government's allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion induced by lithium clusters. In October 2016, St. Jude issued a medical advisory regarding the PBD caused by lithium cluster shorts, which FDA classified as a Class I recall. | (RTTNews) - St. Jude Medical Inc. agreed to pay $27 million to settle allegations that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal health care programs, the U.S. Department of Justice said in a statement. The U.S. alleged that, by 2013, St. Jude knew that lithium clusters formed on the batteries of the devices, causing some of the batteries to short and, in turn, suffer a premature power drain. However, according to the government's allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion induced by lithium clusters. | (RTTNews) - St. Jude Medical Inc. agreed to pay $27 million to settle allegations that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal health care programs, the U.S. Department of Justice said in a statement. The U.S. alleged that St. Jude failed to disclose serious adverse health events in connection with the premature depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra and Unify devices, which are implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat. The U.S. alleged that, by 2013, St. Jude knew that lithium clusters formed on the batteries of the devices, causing some of the batteries to short and, in turn, suffer a premature power drain. | The U.S. alleged that St. Jude failed to disclose serious adverse health events in connection with the premature depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra and Unify devices, which are implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat. However, according to the government's allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion induced by lithium clusters. In October 2016, St. Jude issued a medical advisory regarding the PBD caused by lithium cluster shorts, which FDA classified as a Class I recall. |
32068.0 | 2021-07-08 00:00:00 UTC | St. Jude Medical to pay $27 mln to settle allegations over heart devices | ABT | https://www.nasdaq.com/articles/st.-jude-medical-to-pay-%2427-mln-to-settle-allegations-over-heart-devices-2021-07-08 | nan | nan | Adds background
WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday.
It said St. Jude allegedly failed to disclose serious adverse health events in connection with premature battery depletion in certain models of its implantable defibrillators that were sold between November 2014 and October 2016.
Abbott Laboratories did not immediately respond to a request for comment.
(Reporting by Eric Beech in Washington Editing by Mohammad Zargham and Matthew Lewis)
((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. It said St. Jude allegedly failed to disclose serious adverse health events in connection with premature battery depletion in certain models of its implantable defibrillators that were sold between November 2014 and October 2016. (Reporting by Eric Beech in Washington Editing by Mohammad Zargham and Matthew Lewis) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. It said St. Jude allegedly failed to disclose serious adverse health events in connection with premature battery depletion in certain models of its implantable defibrillators that were sold between November 2014 and October 2016. Abbott Laboratories did not immediately respond to a request for comment. | Adds background WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. It said St. Jude allegedly failed to disclose serious adverse health events in connection with premature battery depletion in certain models of its implantable defibrillators that were sold between November 2014 and October 2016. (Reporting by Eric Beech in Washington Editing by Mohammad Zargham and Matthew Lewis) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. It said St. Jude allegedly failed to disclose serious adverse health events in connection with premature battery depletion in certain models of its implantable defibrillators that were sold between November 2014 and October 2016. Abbott Laboratories did not immediately respond to a request for comment. |
32069.0 | 2021-07-08 00:00:00 UTC | St. Jude Medical to pay $27 mln to settle allegations over heart devices -DOJ | ABT | https://www.nasdaq.com/articles/st.-jude-medical-to-pay-%2427-mln-to-settle-allegations-over-heart-devices-doj-2021-07-08 | nan | nan | WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday.
(Reporting by Eric Beech; Editing by Mohammad Zargham)
((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. (Reporting by Eric Beech; Editing by Mohammad Zargham) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. (Reporting by Eric Beech; Editing by Mohammad Zargham) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. (Reporting by Eric Beech; Editing by Mohammad Zargham) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WASHINGTON, July 8 (Reuters) - St. Jude Medical, which was acquired by Abbott Laboratories ABT.N in 2017, has agreed to pay $27 million to settle allegations it knowingly sold defective heart devices, the U.S. Justice Department said on Thursday. (Reporting by Eric Beech; Editing by Mohammad Zargham) ((eric.beech@thomsonreuters.com; 202-898-8322; Reuters Messaging: eric.beech.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32070.0 | 2021-07-08 00:00:00 UTC | Here's What Abbott Laboratories' (NYSE:ABT) Shareholder Ownership Structure Looks Like | ABT | https://www.nasdaq.com/articles/heres-what-abbott-laboratories-nyse%3Aabt-shareholder-ownership-structure-looks-like-2021-07 | nan | nan | Every investor in Abbott Laboratories (NYSE:ABT) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
Abbott Laboratories has a market capitalization of US$211b, 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. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Abbott Laboratories.
NYSE:ABT Ownership Breakdown July 8th 2021
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 suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Abbott Laboratories' historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:ABT Earnings and Revenue Growth July 8th 2021
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Abbott Laboratories is not owned by hedge funds. The Vanguard Group, Inc. is currently the company's largest shareholder with 8.2% of shares outstanding. For context, the second largest shareholder holds about 8.2% of the shares outstanding, followed by an ownership of 7.5% by the third-largest shareholder.
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.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of Abbott Laboratories in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$1.5b worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public holds a 24% 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Abbott Laboratories is showing 3 warning signs in our investment analysis , you should know about...
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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 July 8th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Every investor in Abbott Laboratories (NYSE:ABT) should be aware of the most powerful shareholder groups. NYSE:ABT Ownership Breakdown July 8th 2021 What Does The Institutional Ownership Tell Us About Abbott Laboratories? | NYSE:ABT Earnings and Revenue Growth July 8th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Every investor in Abbott Laboratories (NYSE:ABT) should be aware of the most powerful shareholder groups. NYSE:ABT Ownership Breakdown July 8th 2021 What Does The Institutional Ownership Tell Us About Abbott Laboratories? | NYSE:ABT Ownership Breakdown July 8th 2021 What Does The Institutional Ownership Tell Us About Abbott Laboratories? Every investor in Abbott Laboratories (NYSE:ABT) should be aware of the most powerful shareholder groups. NYSE:ABT Earnings and Revenue Growth July 8th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. | Every investor in Abbott Laboratories (NYSE:ABT) should be aware of the most powerful shareholder groups. NYSE:ABT Ownership Breakdown July 8th 2021 What Does The Institutional Ownership Tell Us About Abbott Laboratories? NYSE:ABT Earnings and Revenue Growth July 8th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. |
32071.0 | 2021-07-06 00:00:00 UTC | Wait For a Pullback Before Taking a Position In Senseonics | ABT | https://www.nasdaq.com/articles/wait-for-a-pullback-before-taking-a-position-in-senseonics-2021-07-06 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of medical device maker Senseonics (NYSE:SENS) have been rallying in the past month. SENS stock has generated over 90% return since mid-May. Positive study results from its glucose monitoring system and an elevated short interest propelled the stock to new highs.
Source: Minerva Studio / Shutterstock.com
There’s no denying the potential of its glucose monitoring systems, but it’s best to wait for a pullback before investing in SENS stock.
Senseonics specializes in the development of implantable glucose monitoring diabetic patients. It recently released results from an internal study, which showed that its Eversense system showed a hypoglycemic alert detection rate of over 90% for both its primary and secondary sensors.
According to estimates, the market for Contour Glucose Management (CGM) is likely to surpass $12 billion by 2026. Hence, despite the competition in the sector, there is enough depth in the market for Senseonics to generate a massive amount of revenue.
Let’s look at Senseonics in a little more detail to assess its prospects.
Ascensia Partnership
Ascensia Diabetes Care is a major name in the global diabetic care market. With its agreement with Senseonics, it will handle the distribution of the company’s Eversense XL device in Europe and sales support. Moreover, Eversense is currently the only CGM product that the Food and Drug Administration has approved for use in the U.S.
The opportunity for Senseonics is incredible if it comes to fruition. Ascensia has the expertise and experience that will enable the company to establish its presence in Europe.
The Swiss company was established back in 2016, and it has been fixated on improving the lives of diabetic patients. It has several noteworthy alliances with major health care companies, including Medtronic (NYSE:MDT). For example, it is working with Medtronic in developing and supplying CGMs that connect to MiniMed Paradigm and 6 Series Pump systems for insulin dosing.
Competition and Financial Positioning
Few CGM devices are currently prevalent in the U.S. market from Abbott (NYSE:ABT), Medtronic, and DexCom (NASDAQ:DXCM). Senseonics has the edge over its competition by being the first long-term implantable glucose monitor.
The Eversense device sensors can remain in place in place for close to three months, which comfortably exceeds the typical wear time of three to 14 days. Additionally, with stronger product and expansion marketing efforts in the European market and the growing U.S. market, Senseonics could witness double-digit growth in the long run.
From a financial standpoint, the company appears to be moving in the right direction. It generated revenues of $2.85 million, which grew over 7,000% on a year-over-year basis. Moreover, its cash and cash equivalents are at a healthy $178.6 million, with outstanding indebtedness at $110.6 million.
Looking ahead, Senseonics expects revenues to fall in the range of $12 million to $15 million. Therefore, the company has a fantastic growth runway ahead in the fast-growing diabetes market.
Final Word On SENS Stock
SENS stock has been moving in the right direction in the past year, generating healthy shareholder returns. Senseonic’s Eversense CGM system is a robust product that could be a novelty in the diabetic care market. It has some unique features which give it the edge over its competition.
Moreover, the market’s sheer size is such that it has ample room for Senseonics to establish its position. Additionally, its efforts to grow its presence in Europe will also solidify its positioning in the market.
However, I feel it’s best to wait for a pullback before scooping up SENS stock.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Muslim Farooque 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 Wait For a Pullback Before Taking a Position In Senseonics 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. | Competition and Financial Positioning Few CGM devices are currently prevalent in the U.S. market from Abbott (NYSE:ABT), Medtronic, and DexCom (NASDAQ:DXCM). Source: Minerva Studio / Shutterstock.com There’s no denying the potential of its glucose monitoring systems, but it’s best to wait for a pullback before investing in SENS stock. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. | Competition and Financial Positioning Few CGM devices are currently prevalent in the U.S. market from Abbott (NYSE:ABT), Medtronic, and DexCom (NASDAQ:DXCM). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of medical device maker Senseonics (NYSE:SENS) have been rallying in the past month. Positive study results from its glucose monitoring system and an elevated short interest propelled the stock to new highs. | Competition and Financial Positioning Few CGM devices are currently prevalent in the U.S. market from Abbott (NYSE:ABT), Medtronic, and DexCom (NASDAQ:DXCM). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of medical device maker Senseonics (NYSE:SENS) have been rallying in the past month. Additionally, with stronger product and expansion marketing efforts in the European market and the growing U.S. market, Senseonics could witness double-digit growth in the long run. | Competition and Financial Positioning Few CGM devices are currently prevalent in the U.S. market from Abbott (NYSE:ABT), Medtronic, and DexCom (NASDAQ:DXCM). Senseonics specializes in the development of implantable glucose monitoring diabetic patients. Ascensia has the expertise and experience that will enable the company to establish its presence in Europe. |
32072.0 | 2021-07-02 00:00:00 UTC | The 7 Best Dividend Stocks to Buy for Income Investors In July 2021 | ABT | https://www.nasdaq.com/articles/the-7-best-dividend-stocks-to-buy-for-income-investors-in-july-2021-2021-07-02 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Increased concern over inflation and valuations have brought choppiness back to equity markets. As the stock market recovers from a volatile month of trading, investors have turned their attention towards more defensive stocks. For many market participants, dividend shares seem to be the most reasonable plays.
High-yield dividend stocks are prized among income investors, as they offer recurring income. While these stocks may not achieve the breathtaking capital gains of riskier growth stocks, they could provide a safe haven in volatile times.
Recent research led by Greg Filbeck of the Black School of Business at Penn State Behrend highlights how, “Dividend-yield strategies generate investor interest because they have historically offered better risk-adjusted performance.”
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With that said, it may be the perfect time to add these best dividend stocks to your portfolio.
Abbott Laboratories (NYSE:ABT)
Becton Dickinson (NYSE:BDX)
Clorox (NYSE:CLX)
Ecolab (NYSE:ECL)
Iron Mountain (NYSE:IRM)
Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD)
iShares International Select Dividend ETF (BATS:IDV)
Investors tend to prefer stocks that provide higher dividend yields. Over the long-run, dividends typically accumulate and grow by leaps and bounds, thanks to the magic of compounding. Some others might also choose to bet on high-growth companies that also distribute dividends, even though at lower rates.
Best Dividend Stocks to Buy: Abbott Laboratories (ABT)
Source: testing / Shutterstock.com
52-week range: $86.16 – $128.54
Dividend yield: 1.65%
Abbott Park, Illinois-based Abbott manufactures diversified line of health care products that include medical devices, diagnostic equipment, nutritional products, testing kits, and branded generic drugs.
The company reported first-quarter results in mid-April. First-quarter sales increased 35% year-over-year (YOY) to $10.5 billion. Global Covid-19 testing-related sales accounted for $2.2 billion in the first quarter. Net earnings skyrocketed to $1.79 billion, representing a whopping 218% increase from the prior-year period. Adjusted diluted earnings per share (EPS) was $1.32, reflecting a 103% YOY increase.
“We’re particularly pleased with the growing momentum of several recently launched products and continue to forecast more than 35 percent EPS growth for the year,” said CEO Robert B. Ford.
Abbott has recently focused on producing cheap Covid-19 self-tests. The company decreased its annual forecast due to declining demand for coronavirus testing. But even with the slowdown in coronavirus-testing sales, Abbott is poised to deliver double-digit growth this year. Market analysts are delighted to see revenue surging in its medical device business, as it used to account for a significant portion of total revenue before the pandemic.
The pharma stock is highly regarded as the group has increased dividends for almost five decades. ABT stock currently hovers around $113 per share, up 3% year-to-date (YTD). Forward P/E and P/S ratios stand at 25.58 and 5.31, respectively.
Becton Dickinson (BDX)
BDX) office in Ontario, Canada." width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
52-week range: $219.50 – $284.97
Dividend yield: 1.38%
New Jersey-headquartered Becton Dickinson is the world’s largest manufacturer and distributor of medical and surgical products such as needles, syringes, and sharps-disposal units. The company also manufactures diagnostic instruments and reagents, flow cytometry, and cell imaging systems.
Becton, Dickinson reported second-quarter results in early May. Quarterly revenue was $4.91 billion, representing an increase of 15.4% over the prior-year period. Topline growth was mainly driven by Covid-19 diagnostic revenue. Net income grew 63% YOY to $299 million. Adjusted EPS increased 25.1% YOY to $3.19.
“We delivered strong revenue, earnings per share, and cash flow growth in the quarter and achieved several important milestones,” said CEO Tom Polen.
Analysts are forecasting more robust results in 2021 as hospitals gradually resume their regular day-to-day procedures. In addition, the company has a market presence in 50 countries and increasingly sees its long-term growth potential in markets outside the U.S.
BDX is expected to become a “dividend king” stock this year after raising its dividend payments for the 49th consecutive year. Its 1.4% dividend may not look that enticing to investors at first glance. However, given the company’s prospects to raise its payouts, investors should earn more on their initial investment the longer they keep BDX shares.
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BDX stock hovers around $240 territory, down 4% YTD. It is currently trading within 10% of its 52-week low. Forward P/E and P/S ratios stand at 18.45 and 3.71, respectively. On a valuation basis, the shares don’t look too frothy, especially given the hefty P/E multiples its peers trade on average today. If you’re a long-term investor, potential dips would offer a good entry point into BDX shares.
Clorox (CLX)
CLX) bleach bottles lined up on a store shelf." width="300" height="169">
Source: TY Lim / Shutterstock.com
52-week range: $170.50 – $239.87
Dividend yield: 2.66%
Oakland, California-based Clorox manufactures consumer products, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, and food dressings. InvestorPlace.com readers are likely to remember how demand for its cleaning products skyrocketed at the start of the pandemic over a year ago.
Clorox reported third-quarter results at the end of April. Sales stayed flat at $1.78 billion. Net loss was $59 million, compared to net income of $241 million in the prior-year quarter. On an adjusted basis, Clorox delivered net EPS of $1.62, representing a 14% YOY decline. Net cash provided by operations increased 11% YOY to $893 million.
“Looking ahead, our portfolio continues to play a meaningful role in addressing consumer megatrends that have accelerated in the last 12 months, positioning us well to fulfill our ambition to accelerate long-term, profitable growth,” remarked CEO Linda Rendle.
As consumers initially focused on sanitation more than ever, the pandemic led to a significant boost in the company’s revenue in previous quarters. But as life slowly gets back to ‘normal,’ investors have left CLX stock out of the recent market rally. Nonetheless, the company has a long track record of thriving through a wide range of economic environments.
CLX stock currently hovers at $175 territory, down almost 14% YTD. The dividend aristocrat stock has raised its payout every year since 1977, recently announcing another quarterly dividend increase of 5%. Forward P/E and P/S ratios stand at 22.68 and 2.94, respectively. A potential decline toward $165 would improve the margin of safety.
Ecolab (ECL)
ECL) logo on its corporate headquarters building." width="300" height="169">
Source: Ken Wolter / Shutterstock.com
52-week range: $181.25 – $230.00
Dividend yield: 0.92%
Saint Paul, Minnesota-based Ecolab is a leading provider of water, hygiene, and energy technologies and services. The company produces cleaning and sanitation products for the hospitality, healthcare, and industrial markets. It also provides water treatment and other industrial-scale maintenance services for several industries, including food, healthcare, and oil and gas.
Ecolab reported first-quarter results in late April. Total revenue decreased 4% to $2.89 billion. Adjusted net income fell 19% YOY to $234 million. Adjusted diluted earnings per share declined by 18% to 81 cents, compared to the prior-year period.
Regarding the results, CEO Christophe Beck said, “With rising hygiene standards, increased demand for our sustainable solutions and our unique digital capabilities, we remain confident in our long-term outlook and believe we are well-positioned for continued superior future growth.”
Ecolab has a robust product portfolio that is poised to contribute to its long-term growth. However over the past year it has suffered from adverse effects of the pandemic as many workplaces and industrial locations stayed shut. Segmental weakness has been a concern for investors.
ECL stock has increased its dividend for 29 consecutive years. The company recently raised its quarterly payout to 48 cents a share, scheduled to be paid on July 15.
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The shares currently hover at the $208 territory, down 4% YTD. They have gained around 6% over the past 12 months, while the S&P 500 Index has rallied almost 39% during the same period. Forward P/E and P/S ratios stand at 40.82 and 5.15, respectively. Interested investors might consider waiting for a pullback toward the $195 level.
Iron Mountain (IRM)
IRM) logo on truck" width="300" height="169">
Source: Shutterstock
52-week range: $24.36 – $47.34
Dividend yield: 5.73%
Boston, Massachusetts-based Iron Mountain is a record management services provider serving over 225,000 clients. The company stores records, primarily physical records and data backup media, and provides information management services worldwide.
Iron Mountain reported first-quarter results in early May. Total revenues were flat, increasing 1% YOY to $1.08 billion. Net income decreased 28% YOY to $47 million. While GAAP EPS declined 27% YOY to 16 cents, adjusted EPS increased 14% YOY to 32 cents. The board declared a quarterly cash dividend of 61.85 cents per share for the second quarter.
CEO William L. Meaney said, “We are confident that our delivery of overall revenue growth, together with the expansion of margins due to Project Summit, will enable us to continue our acceleration in cash generation, which will allow us to continue to invest in our future.”
The company aims to push its widely recognized brand name for physical document security into the digital age by focusing on digital storage and data centers. Since data center construction and acquisitions require a significant upfront investment, Iron Mountain has incurred substantial debt in the process. Project Summit seeks to minimize costs across the company during this transition.
As a real estate investment trust (REIT), this company is required to pay out at least 90% of its income as dividends. Subsequently, IRM stock has a fat dividend that yields 5.73%.
IRM stock is currently up around 46% YTD, trading at $43 territory, and has gained 75% over the past 12 months. IRM stock’s forward P/E and P/S ratios stand at 31.85 and 3.00, respectively. A potential decline toward $40 would make the shares more enticing.
Invesco Dow Jones Industrial Average Dividend ETF (DJD)
Source: Shutterstock
52-Week Range: $32.52 – $45.81
Dividend Yield: 3.02%
Expense Ratio: 0.08%
Our next choice is an exchange-traded fund (ETF). The Invesco Dow Jones Industrial Average Dividend ETF gives exposure to dividend-paying firms of the Dow Jones Industrial Average, ranking them by their 12-month dividend yield over the past year. The fund is rebalanced twice a year.
DJD was first listed in December 2015, and assets under management are close to $165 million. More than 55% of the fund is allocated to the top 10 names. Currently, the top stocks include International Business Machines (NYSE:IBM), Chevron (NYSE:CVX), Dow (NYSE:DOW), Verizon Communications (NYSE:VZ), and Walgreens Boots Alliance (NASDAQ:WBA).
7 Internet of Things Stocks to Buy to Profit From the Exploding IoT Trend
Since the start of the year, DJD is up about 15%. The trailing P/E ratio and P/B ratios are 18.85 and 3.84, respectively. In the case of short-term profit taking, interested readers would find better value around $40.
iShares International Select Dividend ETF (IDV)
Source: Shutterstock
52 Week Range: 23.90-34.15
Dividend Yield: 5.17%
Expense Ratio: 0.49%
My final pick for today is a fund focused on businesses headquartered outside the U.S. The iShares International Select Dividend ETF provides exposure to relatively high dividend-paying firms in developed markets other than the U.S.
IDV, which currently has 92 holdings, has been trading since 2007. Financials (30.32%) top the list of sectors, followed by Utilities (19.90%), Materials (12.97%), Communication (7.64%), Industrials (6.13%), Energy (6.72%), and Consumer Staples (5.13%). The top 10 holdings comprise around a third of assets of $4.5 billion.
Several of the companies most readers are likely to be familiar with include Rio Tinto (NYSE:RIO), British American Tobacco (NYSE:BTI), Canadian Imperial Bank of Commerce (NYSE:CM), ACS Actividades De Construccion Y Servicios (OTCMKTS:ACSAY), Hang Seng Bank (OTCMKTS:HSNGY) and SwissCom (OTCMKTS:SCMWY).
Since the start of 2021, IDV is up about 11% and saw a multi-year high in May. Its trailing P/E and P/B ratios stand at 11.48 and 1.20, respectively. Interested investors could find value around these levels.
On the date of publication, Tezcan Gecgil 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.
Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post The 7 Best Dividend Stocks to Buy for Income Investors In July 2021 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. | Abbott Laboratories (NYSE:ABT) Becton Dickinson (NYSE:BDX) Clorox (NYSE:CLX) Ecolab (NYSE:ECL) Iron Mountain (NYSE:IRM) Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) iShares International Select Dividend ETF (BATS:IDV) Investors tend to prefer stocks that provide higher dividend yields. Best Dividend Stocks to Buy: Abbott Laboratories (ABT) Source: testing / Shutterstock.com 52-week range: $86.16 – $128.54 Dividend yield: 1.65% Abbott Park, Illinois-based Abbott manufactures diversified line of health care products that include medical devices, diagnostic equipment, nutritional products, testing kits, and branded generic drugs. ABT stock currently hovers around $113 per share, up 3% year-to-date (YTD). | Abbott Laboratories (NYSE:ABT) Becton Dickinson (NYSE:BDX) Clorox (NYSE:CLX) Ecolab (NYSE:ECL) Iron Mountain (NYSE:IRM) Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) iShares International Select Dividend ETF (BATS:IDV) Investors tend to prefer stocks that provide higher dividend yields. Best Dividend Stocks to Buy: Abbott Laboratories (ABT) Source: testing / Shutterstock.com 52-week range: $86.16 – $128.54 Dividend yield: 1.65% Abbott Park, Illinois-based Abbott manufactures diversified line of health care products that include medical devices, diagnostic equipment, nutritional products, testing kits, and branded generic drugs. ABT stock currently hovers around $113 per share, up 3% year-to-date (YTD). | Abbott Laboratories (NYSE:ABT) Becton Dickinson (NYSE:BDX) Clorox (NYSE:CLX) Ecolab (NYSE:ECL) Iron Mountain (NYSE:IRM) Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) iShares International Select Dividend ETF (BATS:IDV) Investors tend to prefer stocks that provide higher dividend yields. Best Dividend Stocks to Buy: Abbott Laboratories (ABT) Source: testing / Shutterstock.com 52-week range: $86.16 – $128.54 Dividend yield: 1.65% Abbott Park, Illinois-based Abbott manufactures diversified line of health care products that include medical devices, diagnostic equipment, nutritional products, testing kits, and branded generic drugs. ABT stock currently hovers around $113 per share, up 3% year-to-date (YTD). | Abbott Laboratories (NYSE:ABT) Becton Dickinson (NYSE:BDX) Clorox (NYSE:CLX) Ecolab (NYSE:ECL) Iron Mountain (NYSE:IRM) Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) iShares International Select Dividend ETF (BATS:IDV) Investors tend to prefer stocks that provide higher dividend yields. Best Dividend Stocks to Buy: Abbott Laboratories (ABT) Source: testing / Shutterstock.com 52-week range: $86.16 – $128.54 Dividend yield: 1.65% Abbott Park, Illinois-based Abbott manufactures diversified line of health care products that include medical devices, diagnostic equipment, nutritional products, testing kits, and branded generic drugs. ABT stock currently hovers around $113 per share, up 3% year-to-date (YTD). |
32073.0 | 2021-07-02 00:00:00 UTC | Got $400? 3 Fantastic Dividend Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/got-%24400-3-fantastic-dividend-stocks-to-buy-right-now-2021-07-02 | nan | nan | "Money is no object." You've likely heard the expression. The reality, though, is that money usually is an object -- namely because it's in relatively scarce quantity for most people.
Many investors don't have tens of thousands of dollars to invest each month. And many are jittery about putting the hard-earned money they do have into speculative stocks that could flame out.
If you're in these groups, you've come to the right place. You can invest in the stocks of well-run companies that pay solid dividends without having a fortune to start out with. If you've got $400, here are three fantastic dividend stocks to buy right now.
Image source: Getty Images.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) ranks as the most expensive of the three dividend stocks on the list, with its share price a little over $190. But I think you'll like what your money buys for you with IIP.
The company is organized as a real estate investment trust (REIT). That means it must return at least 90% of taxable income to shareholders in the form of dividends. IIP's dividend payout has quadrupled over the last three years. Its dividend yield stands at 2.9%.
While IIP's dividend is great, that's not why I think this is a stock to buy hand over fist right now. You see, IIP is a unique kind of REIT in that it focuses on the sizzling-hot medical cannabis industry.
IIP's share price has more than quintupled over the last three years. I expect its great momentum will continue as the company buys more properties and leases them to cannabis operators. IIP currently only owns 72 properties in 18 states. My view is that it's only the tip of the iceberg for this fast-growing REIT.
AbbVie
Calvin Coolidge was the U.S. president when AbbVie (NYSE: ABBV) first began paying dividends in 1924. The big drugmaker has paid a dividend every quarter since then (as part of Abbott and as a stand-alone entity since 2013). It's only one dividend hike away from joining the elite group known as Dividend Kings -- S&P 500 members that have increased their dividends for at least 50 consecutive years.
You can currently buy one share of AbbVie for less than $115. For that amount, you'll get one of the juiciest dividends around. AbbVie's dividend yield stands at 4.6%. You'll also pick up a big pharma stock with pretty good growth prospects.
It's important to know that AbbVie's top-selling drug, Humira, faces biosimilar competition in the U.S. beginning in 2023. The company expects declining sales for the drug will weigh on it heavily in the first year that Humira loses exclusivity. However, AbbVie's dividend shouldn't be jeopardized at all.
Even better, the company expects to quickly return to growth. AbbVie's product lineup includes several other drugs with solid momentum, including blood cancer drugs Imbruvica and Venclexta, as well as the heirs apparent to Humira -- Rinvoq and Skyrizi.
Easterly Government Properties
Innovative Industrial Properties offers tremendous growth with its dividend. AbbVie provides an impressive track record. If you're looking for rock-solid safety, though, you're probably going to really like Easterly Government Properties (NYSE: DEA). And with Easterly's share price of around $21, you'll be able to scoop up several shares with your remaining cash after buying IIP and AbbVie.
Unsurprisingly, Easterly Government Properties owns and leases out... government properties. Like IIP, it's organized as a REIT. Easterly's main tenant is none other than Uncle Sam. As of March 31, 2021, the company owned 82 properties with all but two of them leased to U.S. federal government agencies.
Easterly's dividend currently yields 4.8%. The company also has solid growth prospects. The REIT even recently raised its full-year earnings guidance because of its increased opportunities to acquire new properties.
CEO William Trimble characterized the company's strength in nautical terms with Easterly's Q1 update, stating: "The longevity and stability of future cash flows backed by the full faith and credit of the U.S. Government serves as a strong anchor to windward while still achieving meaningful results for our shareholders." He's likely right that Easterly's strong relationship with the federal government should translate to smooth sailing over the long term.
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Keith Speights owns shares of AbbVie and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company expects declining sales for the drug will weigh on it heavily in the first year that Humira loses exclusivity. The REIT even recently raised its full-year earnings guidance because of its increased opportunities to acquire new properties. CEO William Trimble characterized the company's strength in nautical terms with Easterly's Q1 update, stating: "The longevity and stability of future cash flows backed by the full faith and credit of the U.S. Government serves as a strong anchor to windward while still achieving meaningful results for our shareholders." | Innovative Industrial Properties Innovative Industrial Properties (NYSE: IIPR) ranks as the most expensive of the three dividend stocks on the list, with its share price a little over $190. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool recommends Easterly Government Properties. | Innovative Industrial Properties Innovative Industrial Properties (NYSE: IIPR) ranks as the most expensive of the three dividend stocks on the list, with its share price a little over $190. Easterly Government Properties Innovative Industrial Properties offers tremendous growth with its dividend. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie and Innovative Industrial Properties. | But I think you'll like what your money buys for you with IIP. You can currently buy one share of AbbVie for less than $115. Like IIP, it's organized as a REIT. |
32074.0 | 2021-07-01 00:00:00 UTC | August 13th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/august-13th-options-now-available-for-abbott-laboratories-abt-2021-07-01 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 13th contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of 81 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $109.19 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $116.49/share today.
Because the $110.00 strike represents an approximate 6% 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 100%. 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 0.74% return on the cash commitment, or 6.25% 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 $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $118.00 strike price has a current bid of $1.08. If an investor was to purchase shares of ABT stock at the current price level of $116.49/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $118.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.22% if the stock gets called away at the August 13th 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 $118.00 strike highlighted in red:
Considering the fact that the $118.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.93% boost of extra return to the investor, or 7.87% 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 $116.49) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $118.00 strike highlighted in red: Considering the fact that the $118.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 13th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $118.00 strike highlighted in red: Considering the fact that the $118.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 13th 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 $118.00 strike highlighted in red: Considering the fact that the $118.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 13th 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 13th 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 $118.00 strike highlighted in red: Considering the fact that the $118.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 13th expiration. |
32075.0 | 2021-07-01 00:00:00 UTC | IVV, ABT, T, TMO: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/ivv-abt-t-tmo%3A-etf-inflow-alert-2021-07-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $129.0 million dollar inflow -- that's a 0.05% increase week over week in outstanding units (from 666,350,000 to 666,650,000). Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, AT&T Inc (Symbol: T) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.4%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $311.89 per share, with $431.51 as the 52 week high point — that compares with a last trade of $431.18. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, AT&T Inc (Symbol: T) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.4%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $311.89 per share, with $431.51 as the 52 week high point — that compares with a last trade of $431.18. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, AT&T Inc (Symbol: T) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.4%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $311.89 per share, with $431.51 as the 52 week high point — that compares with a last trade of $431.18. 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 IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, AT&T Inc (Symbol: T) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $129.0 million dollar inflow -- that's a 0.05% increase week over week in outstanding units (from 666,350,000 to 666,650,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $311.89 per share, with $431.51 as the 52 week high point — that compares with a last trade of $431.18. | Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, AT&T Inc (Symbol: T) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $129.0 million dollar inflow -- that's a 0.05% increase week over week in outstanding units (from 666,350,000 to 666,650,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $311.89 per share, with $431.51 as the 52 week high point — that compares with a last trade of $431.18. |
32076.0 | 2021-06-30 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-2021-06-30 | 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
New Jersey Resources Corp (Symbol: NJR) $39.56 $42.60 7.68%
General Dynamics Corp (Symbol: GD) $186.70 $198.42 6.28%
Abbott Laboratories (Symbol: ABT) $117.21 $124.50 6.22%
National Retail Properties Inc (Symbol: NNN) $47.20 $49.68 5.26%
Emerson Electric Co. (Symbol: EMR) $94.69 $99.45 5.03%
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
New Jersey Resources Corp (Symbol: NJR) 3.36% 7.68% 11.04%
General Dynamics Corp (Symbol: GD) 2.55% 6.28% 8.83%
Abbott Laboratories (Symbol: ABT) 1.54% 6.22% 7.76%
National Retail Properties Inc (Symbol: NNN) 4.41% 5.26% 9.67%
Emerson Electric Co. (Symbol: EMR) 2.13% 5.03% 7.16%
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
New Jersey Resources Corp (Symbol: NJR) $1.252 $1.332 6.39%
General Dynamics Corp (Symbol: GD) $4.16 $4.49 7.93%
Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12%
National Retail Properties Inc (Symbol: NNN) $2.06 $2.08 0.97%
Emerson Electric Co. (Symbol: EMR) $1.99 $2.015 1.26%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | New Jersey Resources Corp (Symbol: NJR) $39.56 $42.60 7.68% General Dynamics Corp (Symbol: GD) $186.70 $198.42 6.28% Abbott Laboratories (Symbol: ABT) $117.21 $124.50 6.22% National Retail Properties Inc (Symbol: NNN) $47.20 $49.68 5.26% Emerson Electric Co. (Symbol: EMR) $94.69 $99.45 5.03% 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. New Jersey Resources Corp (Symbol: NJR) 3.36% 7.68% 11.04% General Dynamics Corp (Symbol: GD) 2.55% 6.28% 8.83% Abbott Laboratories (Symbol: ABT) 1.54% 6.22% 7.76% National Retail Properties Inc (Symbol: NNN) 4.41% 5.26% 9.67% Emerson Electric Co. (Symbol: EMR) 2.13% 5.03% 7.16% Another consideration with dividend growth stocks is just how much the dividend is growing. New Jersey Resources Corp (Symbol: NJR) $1.252 $1.332 6.39% General Dynamics Corp (Symbol: GD) $4.16 $4.49 7.93% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% National Retail Properties Inc (Symbol: NNN) $2.06 $2.08 0.97% Emerson Electric Co. (Symbol: EMR) $1.99 $2.015 1.26% These five stocks are part of our full Dividend Aristocrats List. | New Jersey Resources Corp (Symbol: NJR) $39.56 $42.60 7.68% General Dynamics Corp (Symbol: GD) $186.70 $198.42 6.28% Abbott Laboratories (Symbol: ABT) $117.21 $124.50 6.22% National Retail Properties Inc (Symbol: NNN) $47.20 $49.68 5.26% Emerson Electric Co. (Symbol: EMR) $94.69 $99.45 5.03% 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. New Jersey Resources Corp (Symbol: NJR) 3.36% 7.68% 11.04% General Dynamics Corp (Symbol: GD) 2.55% 6.28% 8.83% Abbott Laboratories (Symbol: ABT) 1.54% 6.22% 7.76% National Retail Properties Inc (Symbol: NNN) 4.41% 5.26% 9.67% Emerson Electric Co. (Symbol: EMR) 2.13% 5.03% 7.16% Another consideration with dividend growth stocks is just how much the dividend is growing. New Jersey Resources Corp (Symbol: NJR) $1.252 $1.332 6.39% General Dynamics Corp (Symbol: GD) $4.16 $4.49 7.93% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% National Retail Properties Inc (Symbol: NNN) $2.06 $2.08 0.97% Emerson Electric Co. (Symbol: EMR) $1.99 $2.015 1.26% These five stocks are part of our full Dividend Aristocrats List. | New Jersey Resources Corp (Symbol: NJR) $39.56 $42.60 7.68% General Dynamics Corp (Symbol: GD) $186.70 $198.42 6.28% Abbott Laboratories (Symbol: ABT) $117.21 $124.50 6.22% National Retail Properties Inc (Symbol: NNN) $47.20 $49.68 5.26% Emerson Electric Co. (Symbol: EMR) $94.69 $99.45 5.03% 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. New Jersey Resources Corp (Symbol: NJR) 3.36% 7.68% 11.04% General Dynamics Corp (Symbol: GD) 2.55% 6.28% 8.83% Abbott Laboratories (Symbol: ABT) 1.54% 6.22% 7.76% National Retail Properties Inc (Symbol: NNN) 4.41% 5.26% 9.67% Emerson Electric Co. (Symbol: EMR) 2.13% 5.03% 7.16% Another consideration with dividend growth stocks is just how much the dividend is growing. New Jersey Resources Corp (Symbol: NJR) $1.252 $1.332 6.39% General Dynamics Corp (Symbol: GD) $4.16 $4.49 7.93% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% National Retail Properties Inc (Symbol: NNN) $2.06 $2.08 0.97% Emerson Electric Co. (Symbol: EMR) $1.99 $2.015 1.26% These five stocks are part of our full Dividend Aristocrats List. | New Jersey Resources Corp (Symbol: NJR) $39.56 $42.60 7.68% General Dynamics Corp (Symbol: GD) $186.70 $198.42 6.28% Abbott Laboratories (Symbol: ABT) $117.21 $124.50 6.22% National Retail Properties Inc (Symbol: NNN) $47.20 $49.68 5.26% Emerson Electric Co. (Symbol: EMR) $94.69 $99.45 5.03% 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. New Jersey Resources Corp (Symbol: NJR) 3.36% 7.68% 11.04% General Dynamics Corp (Symbol: GD) 2.55% 6.28% 8.83% Abbott Laboratories (Symbol: ABT) 1.54% 6.22% 7.76% National Retail Properties Inc (Symbol: NNN) 4.41% 5.26% 9.67% Emerson Electric Co. (Symbol: EMR) 2.13% 5.03% 7.16% Another consideration with dividend growth stocks is just how much the dividend is growing. New Jersey Resources Corp (Symbol: NJR) $1.252 $1.332 6.39% General Dynamics Corp (Symbol: GD) $4.16 $4.49 7.93% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% National Retail Properties Inc (Symbol: NNN) $2.06 $2.08 0.97% Emerson Electric Co. (Symbol: EMR) $1.99 $2.015 1.26% These five stocks are part of our full Dividend Aristocrats List. |
32077.0 | 2021-06-30 00:00:00 UTC | SPY, HIPR: Big ETF Inflows | ABT | https://www.nasdaq.com/articles/spy-hipr%3A-big-etf-inflows-2021-06-30 | nan | nan | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is lower by about 0.3%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the Direxion High Growth ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of HIPR, in morning trading today AT&T is up about 0.3%, and Abbott Laboratories is lower by about 1.6%.
VIDEO: SPY, HIPR: Big ETF 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 SPY, in morning trading today Apple is up about 0.3%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the Direxion High Growth ETF, which added 50,000 units, for a 40.0% increase in outstanding units. Among the largest underlying components of HIPR, in morning trading today AT&T is up about 0.3%, and Abbott Laboratories is lower by about 1.6%. | Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is lower by about 0.3%. Among the largest underlying components of HIPR, in morning trading today AT&T is up about 0.3%, and Abbott Laboratories is lower by about 1.6%. VIDEO: SPY, HIPR: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the Direxion High Growth ETF, which added 50,000 units, for a 40.0% increase in outstanding units. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is lower by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the Direxion High Growth ETF, which added 50,000 units, for a 40.0% increase in outstanding units. |
32078.0 | 2021-06-30 00:00:00 UTC | Forget AMC: Here Are 2 Better Post-Pandemic Stocks | ABT | https://www.nasdaq.com/articles/forget-amc%3A-here-are-2-better-post-pandemic-stocks-2021-06-30 | nan | nan | AMC Entertainment Holdings (NYSE: AMC) closed its theaters during the pandemic and lost billions. But that didn't stop it from becoming one of the best-performing stocks year to date. A group of investors on Reddit flocked to the shares, helping to drive them up more than 2,000%. At the same time, AMC issued more shares to raise much-needed cash.
But the situation remains grim. Investors aren't thrilled about the share dilution. AMC's debt stands at more than $5 billion -- its highest ever. The company reported a $4.5 billion loss last year. Looking ahead, a post-pandemic world should help AMC.
But the company's fortunes won't improve overnight. AMC faces the challenges of drawing movie-goers back to theaters and paying hundreds of millions in deferred rent payments. The shares look extremely expensive considering all of this. That's why I would forget about AMC and instead opt for the following two companies. They'll give you growth -- and won't keep you up at night.
Image source: Getty Images.
Nike
Nike (NYSE: NKE) shares soared 14% in one trading session last week after reporting double-digit quarterly and fiscal year revenue gains and predicting "significant" opportunity ahead. The pandemic weighed on the maker of athletic wear in two ways: It temporarily closed stores, and it put a halt on professional sporting events.
Still, Nike's growing digital business, its connection with fans, and its brand strength buoyed revenue and profit during the tough times. In 2017, Nike decided to focus on its digital platform and direct sales to consumers. So, the major elements for success were already in place by the time the pandemic emerged. As a result, Nike reported a 19% increase in revenue to more than $44 billion for the 2021 fiscal year ended May 31. And earnings per share soared 123% to $3.56.
But here's the even better news: This is just the beginning. Nike won't face the headwinds of closed stores and canceled sporting events in a post-pandemic world. And the company will also see growth from the connections it built with fans. For instance, during the crisis, it encouraged fans to use its training apps for workouts and tips -- and that often translated into sales.
"Today, we are better positioned to drive sustainable long-term growth than we were before the pandemic," CEO John J. Donahoe said during the earnings call. Nike predicts high single-digit to low double-digit revenue growth through fiscal 2025.
Nike has a solid long-term track record. The company generally has increased profit and revenue over time.
NKE Net Income (Annual) data by YCharts
And the latest earnings report and comments from management indicate this is likely to continue.
Abbott Laboratories
Abbott Laboratories' (NYSE: ABT) strength in coronavirus testing made it a stock to watch -- and buy -- during the worst of the pandemic. The stock climbed 26% last year as Abbott sold billions of dollars' worth of COVID-19 tests. At the same time, some of Abbott's other businesses -- in particular medical devices -- suffered. That's because hospitals postponed nonessential surgeries in order to focus on coronavirus patients.
The issue for Abbott investors now is that demand for COVID tests is on the decline. In fact, Abbott even lowered its earnings per share forecast to the range of $4.30 to $4.50 from earlier expectations of $5. This is adjusted diluted EPS from continuing operations.
We've got a different scenario: A slowdown in COVID testing, but recovery and growth in other areas. And that scenario is a great reason to buy Abbott shares. Here's why: Medical devices generally make up the largest part of Abbott's annual revenue. In 2019, this business accounted for 38% of overall revenue. So, a return to normal for medical device sales is excellent news.
The company's other segments -- nutrition, diagnostics, and established pharmaceuticals -- also should see positive trends in a post-pandemic world. For example, at certain moments during the pandemic, some laboratories reduced operations and didn't conduct non-essential tests. Those areas have already started to rebound.
Another good sign: Abbott's revised forecast still represents solid year-over-year growth. Adjusted diluted earnings per share from continuing operations in 2020 was $3.65. Abbott could post at least 18% earnings growth this year compared to 2020 if it meets the lower end of its forecast range.
Abbott is trading at about 36 times trailing 12-month earnings.
ABT PE Ratio data by YCharts. PE = price-to-earnings.
That's close to its lowest by this measure in a little over a year. And it represents an opportunity to get in on this stock that you'll want to hold onto for the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories' (NYSE: ABT) strength in coronavirus testing made it a stock to watch -- and buy -- during the worst of the pandemic. ABT PE Ratio data by YCharts. AMC faces the challenges of drawing movie-goers back to theaters and paying hundreds of millions in deferred rent payments. | Abbott Laboratories Abbott Laboratories' (NYSE: ABT) strength in coronavirus testing made it a stock to watch -- and buy -- during the worst of the pandemic. ABT PE Ratio data by YCharts. Nike Nike (NYSE: NKE) shares soared 14% in one trading session last week after reporting double-digit quarterly and fiscal year revenue gains and predicting "significant" opportunity ahead. | Abbott Laboratories Abbott Laboratories' (NYSE: ABT) strength in coronavirus testing made it a stock to watch -- and buy -- during the worst of the pandemic. ABT PE Ratio data by YCharts. Nike Nike (NYSE: NKE) shares soared 14% in one trading session last week after reporting double-digit quarterly and fiscal year revenue gains and predicting "significant" opportunity ahead. | Abbott Laboratories Abbott Laboratories' (NYSE: ABT) strength in coronavirus testing made it a stock to watch -- and buy -- during the worst of the pandemic. ABT PE Ratio data by YCharts. AMC Entertainment Holdings (NYSE: AMC) closed its theaters during the pandemic and lost billions. |
32079.0 | 2021-06-30 00:00:00 UTC | Intuitive Surgical Stock Is Richly Valued At $900 Levels | ABT | https://www.nasdaq.com/articles/intuitive-surgical-stock-is-richly-valued-at-%24900-levels-2021-06-30 | nan | nan | We believe that the stock price of Intuitive Surgical (NASDAQ: ISRG) appears fully valued at the current levels of around $900, and it is vulnerable to downside risk. ISRG stock is up 2.5x from the levels of around $367 it was at on March 23, 2020, when broader markets made a bottom. This marks a significant outperformance compared to the S&P 500, which is up 91% over the same period. The outperformance of ISRG stock can partly be attributed to upbeat results over the recent quarters, led by a rebound in procedures volume.
Looking at a longer time period, ISRG stock is up 90% from the levels of around $480 seen toward the end of 2018 (vs. an S&P 500 rise of around 70%). Much of the 90% rise in ISRG stock over the last two years or so can be attributed to favorable changes in the company’s P/E multiple. Looking at the fundamentals, the company’s total revenue grew 24% to $4.6 billion over the last twelve month period, compared to $3.7 billion in 2018. The revenue rise can largely be attributed to a higher number of system placements, which, in turn, generated higher recurring revenue from consumables and services for the company. However, the company’s net margins declined 590 bps to 24.4% over the last twelve months, compared to 30.3% in 2018. This can be attributed to lower sales and increased operating costs in 2020, due to the impact of the pandemic. The company saw a 4% rise in total shares outstanding due to share issuances.
As such, on a per share basis, Intuitive Surgical’s earnings grew less than 1% to $9.98 for the last twelve month period, compared to $9.92 in 2018. Despite only a modest rise in EPS over the recent years, Intuitive Surgical’s P/E multiple has expanded a large 108% to 100x currently, compared to levels of around 50x seen in 2018. Our dashboard, ‘What Factors Drove 90% Change In Intuitive Surgical Stock between 2018 and now?‘, has the underlying numbers.
Outlook
While the Covid-19 pandemic weighed on the company’s performance over the past few quarters, the opening up of economies would mean a rebound in volume of procedures performed, boding well for ISRG stock. The company reported an 18% y-o-y growth in its top-line to $1.3 billion in Q1 2021. This can be attributed to higher demand for consumables as well as higher services revenue. Intuitive Surgical’s earnings grew 31% y-o-y to $3.52 on an adjusted basis, led by growth in revenues as well as margin expansion, a trend expected to continue in the near term.
That said, ISRG stock does appear to be richly valued now. At the current levels of over $900, ISRG stock is trading at 67x its forward estimated adjusted EPS of $13.50 in 2021, compared to levels of around 60x seen in 2019 and 2020, and levels of under 40x seen prior to 2019. This means that the P/E multiple for ISRG stock is much higher than its historical levels, and the stock is vulnerable to some downside risk, in our view.
Furthermore, another medical devices company – Medtronic – launched its robotic assisted surgical system, Hugo, last year. Hugo allows the surgeon to control up to four independent robotic arms during the procedure from one console, and it can easily be moved within a hospital, unlike Intuitive Surgical’s da Vinci systems, which are immovable once fixed. We know that Medtronic has a long road ahead to catch up to Intuitive Surgical, given that the latter already has over 6,000 robotic surgical systems placed globally. However, Hugo is also likely to see some demand, implying an increased competition for Intuitive Surgical, and a likely decline in the high multiple that Intuitive Surgical has enjoyed thus far.
Although ISRG is a high-quality stock to invest in, given the company’s business model, which ensures recurring revenues from consumables on each installed device, and that the robotic-assisted surgery market will be large enough over the coming years for multiple players to thrive, based on the current valuation, we believe that it will be prudent for investors to wait for a better entry point in ISRG stock to buy for higher gains.
While ISRG stock may see lower 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 ICU Medical vs Abbott.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Intuitive Surgical’s earnings grew 31% y-o-y to $3.52 on an adjusted basis, led by growth in revenues as well as margin expansion, a trend expected to continue in the near term. Hugo allows the surgeon to control up to four independent robotic arms during the procedure from one console, and it can easily be moved within a hospital, unlike Intuitive Surgical’s da Vinci systems, which are immovable once fixed. Although ISRG is a high-quality stock to invest in, given the company’s business model, which ensures recurring revenues from consumables on each installed device, and that the robotic-assisted surgery market will be large enough over the coming years for multiple players to thrive, based on the current valuation, we believe that it will be prudent for investors to wait for a better entry point in ISRG stock to buy for higher gains. | Looking at the fundamentals, the company’s total revenue grew 24% to $4.6 billion over the last twelve month period, compared to $3.7 billion in 2018. Despite only a modest rise in EPS over the recent years, Intuitive Surgical’s P/E multiple has expanded a large 108% to 100x currently, compared to levels of around 50x seen in 2018. Furthermore, another medical devices company – Medtronic – launched its robotic assisted surgical system, Hugo, last year. | At the current levels of over $900, ISRG stock is trading at 67x its forward estimated adjusted EPS of $13.50 in 2021, compared to levels of around 60x seen in 2019 and 2020, and levels of under 40x seen prior to 2019. This means that the P/E multiple for ISRG stock is much higher than its historical levels, and the stock is vulnerable to some downside risk, in our view. Although ISRG is a high-quality stock to invest in, given the company’s business model, which ensures recurring revenues from consumables on each installed device, and that the robotic-assisted surgery market will be large enough over the coming years for multiple players to thrive, based on the current valuation, we believe that it will be prudent for investors to wait for a better entry point in ISRG stock to buy for higher gains. | At the current levels of over $900, ISRG stock is trading at 67x its forward estimated adjusted EPS of $13.50 in 2021, compared to levels of around 60x seen in 2019 and 2020, and levels of under 40x seen prior to 2019. This means that the P/E multiple for ISRG stock is much higher than its historical levels, and the stock is vulnerable to some downside risk, in our view. Furthermore, another medical devices company – Medtronic – launched its robotic assisted surgical system, Hugo, last year. |
32080.0 | 2021-06-29 00:00:00 UTC | Edwards Lifesciences May Continue To Rise After Positive Clinical Trial Data | ABT | https://www.nasdaq.com/articles/edwards-lifesciences-may-continue-to-rise-after-positive-clinical-trial-data-2021-06-29 | nan | nan | The stock price of Edward Lifesciences (NYSE:EW), a company specializing in artificial heart valves and hemodynamic monitoring, has seen a rise of 10% in the last twenty-one trading days. This can be attributed to the positive outcome from a clinical trial for Evoque tricuspid and Pascal system for patients impacted by mitral or tricuspid heart valve disease. Furthermore, the company has seen strong adoption of its Resilia tissue valves in the recent past, a trend expected to continue going forward. Earlier this month, the company announced the U.S. FDA approval for its Acumen Hypotension Prediction Index software with the Acumen IQ finger cuff, which provides access to various hemodynamic parameters. The software uses machine learning to send alerts if a patient is having a low blood pressure.
While there have been some positive developments for the company of late, now that EW stock has seen a rise of 10% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a rise in EW stock over the next month. Out of 387 instances in the last ten years that Edwards Lifesciences stock saw a twenty-one day rise of 10% or more, 228 of them resulted in EW stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 228 out of 387, or about 59% chance of a rise in EW stock over the coming month. See our analysis on Edwards Lifesciences Stock Chances of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten year data
After moving 4.6% or more over a five-day period, the stock rose in the next 5 days on 51% of the occasions.
After moving 7.9% or more over a ten-day period, the stock rose in the next 10 days on 54% of the occasions
After moving 9.8% or more over a twenty-one-day period, the stock rose in the next 21 days on 59% of the occasions
Predict average return on Edwards Lifesciences (EW) Stock Return: AI Predicts EW Average and Excess Return After a Fall or Rise
Edwards Lifesciences (EW) Stock Return (Recent) Comparison With Peers
Five-Day Return: EW highest at 4.6%; BAX lowest at -1%
Ten-Day Return: EW highest at 7.9%; BAX lowest at 1.7%
Twenty-One Day Return: EW highest at 9.8%; ABT lowest at -5.5%
While EW 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 Merck vs. Regeneron
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After moving 7.9% or more over a ten-day period, the stock rose in the next 10 days on 54% of the occasions After moving 9.8% or more over a twenty-one-day period, the stock rose in the next 21 days on 59% of the occasions Predict average return on Edwards Lifesciences (EW) Stock Return: AI Predicts EW Average and Excess Return After a Fall or Rise Edwards Lifesciences (EW) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4.6%; BAX lowest at -1% Ten-Day Return: EW highest at 7.9%; BAX lowest at 1.7% Twenty-One Day Return: EW highest at 9.8%; ABT lowest at -5.5% While EW stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. The stock price of Edward Lifesciences (NYSE:EW), a company specializing in artificial heart valves and hemodynamic monitoring, has seen a rise of 10% in the last twenty-one trading days. While there have been some positive developments for the company of late, now that EW stock has seen a rise of 10% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? | After moving 7.9% or more over a ten-day period, the stock rose in the next 10 days on 54% of the occasions After moving 9.8% or more over a twenty-one-day period, the stock rose in the next 21 days on 59% of the occasions Predict average return on Edwards Lifesciences (EW) Stock Return: AI Predicts EW Average and Excess Return After a Fall or Rise Edwards Lifesciences (EW) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4.6%; BAX lowest at -1% Ten-Day Return: EW highest at 7.9%; BAX lowest at 1.7% Twenty-One Day Return: EW highest at 9.8%; ABT lowest at -5.5% While EW stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. The stock price of Edward Lifesciences (NYSE:EW), a company specializing in artificial heart valves and hemodynamic monitoring, has seen a rise of 10% in the last twenty-one trading days. Out of 387 instances in the last ten years that Edwards Lifesciences stock saw a twenty-one day rise of 10% or more, 228 of them resulted in EW stock rising over the subsequent one month period (twenty-one trading days). | After moving 7.9% or more over a ten-day period, the stock rose in the next 10 days on 54% of the occasions After moving 9.8% or more over a twenty-one-day period, the stock rose in the next 21 days on 59% of the occasions Predict average return on Edwards Lifesciences (EW) Stock Return: AI Predicts EW Average and Excess Return After a Fall or Rise Edwards Lifesciences (EW) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4.6%; BAX lowest at -1% Ten-Day Return: EW highest at 7.9%; BAX lowest at 1.7% Twenty-One Day Return: EW highest at 9.8%; ABT lowest at -5.5% While EW stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. The stock price of Edward Lifesciences (NYSE:EW), a company specializing in artificial heart valves and hemodynamic monitoring, has seen a rise of 10% in the last twenty-one trading days. Out of 387 instances in the last ten years that Edwards Lifesciences stock saw a twenty-one day rise of 10% or more, 228 of them resulted in EW stock rising over the subsequent one month period (twenty-one trading days). | After moving 7.9% or more over a ten-day period, the stock rose in the next 10 days on 54% of the occasions After moving 9.8% or more over a twenty-one-day period, the stock rose in the next 21 days on 59% of the occasions Predict average return on Edwards Lifesciences (EW) Stock Return: AI Predicts EW Average and Excess Return After a Fall or Rise Edwards Lifesciences (EW) Stock Return (Recent) Comparison With Peers Five-Day Return: EW highest at 4.6%; BAX lowest at -1% Ten-Day Return: EW highest at 7.9%; BAX lowest at 1.7% Twenty-One Day Return: EW highest at 9.8%; ABT lowest at -5.5% While EW stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. While there have been some positive developments for the company of late, now that EW stock has seen a rise of 10% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Out of 387 instances in the last ten years that Edwards Lifesciences stock saw a twenty-one day rise of 10% or more, 228 of them resulted in EW stock rising over the subsequent one month period (twenty-one trading days). |
32081.0 | 2021-06-28 00:00:00 UTC | ABT Makes Bullish Cross Above Critical Moving Average | ABT | https://www.nasdaq.com/articles/abt-makes-bullish-cross-above-critical-moving-average-2021-06-28 | nan | nan | In trading on Monday, shares of Abbott Laboratories (Symbol: ABT) crossed above their 200 day moving average of $113.78, changing hands as high as $116.36 per share. Abbott Laboratories shares are currently trading up about 2.7% 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 $88.09 per share, with $128.54 as the 52 week high point — that compares with a last trade of $115.69. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $113.78, changing hands as high as $116.36 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 $88.09 per share, with $128.54 as the 52 week high point — that compares with a last trade of $115.69. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $113.78, changing hands as high as $116.36 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 $88.09 per share, with $128.54 as the 52 week high point — that compares with a last trade of $115.69. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $113.78, changing hands as high as $116.36 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 $88.09 per share, with $128.54 as the 52 week high point — that compares with a last trade of $115.69. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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 above their 200 day moving average of $113.78, changing hands as high as $116.36 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 $88.09 per share, with $128.54 as the 52 week high point — that compares with a last trade of $115.69. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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. |
32082.0 | 2021-06-28 00:00:00 UTC | These 3 High-Dividend Stocks Have Cathie Wood's Seal of Approval | ABT | https://www.nasdaq.com/articles/these-3-high-dividend-stocks-have-cathie-woods-seal-of-approval-2021-06-28 | nan | nan | Cathie Wood has become an investing sensation in recent years. As the founder of the ARK Invest family of exchange-traded funds , amazing returns in 2020 gave her a reputation for finding little-followed high-growth companies early in their existence and riding them to big long-term gains. Investors in her ARK Innovation ETF (NYSEMKT: ARKK) and other funds have reaped the rewards.
Given Wood's emphasis on high-growth sectors of the market, you might be surprised to learn that some of her choices for fund holdings actually carry impressive dividend yields. For most growing companies, returning capital to shareholders through dividend payments takes a backseat to reinvesting available money back into the business to grow it further. Nevertheless, below, we'll take a closer look at some of ARK Invest's high-dividend holdings to see why they're appealing both to growth and income investors.
Image source: Getty Images.
AbbVie
AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. Abbott itself maintained a long track record that goes back roughly half a century.
AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. That's roughly 0.66% of the fund's total assets.
With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. Those include long-read genomic sequencing, multi-cancer screening, and cell and gene therapies. AbbVie has already done considerable research and development on experimental cancer drugs using genomic analysis, and promising results suggest the company will make even more of an effort to move in that direction. Meanwhile, investors benefit from a dividend yield topping 4.5%.
Novartis
Novartis (NYSE: NVS) is also appealing to growth and income investors alike. The stock currently pays a dividend yield of 3.5%, but like AbbVie, the pharmaceutical company is looking into promising therapies that it hopes to use to come up with generations of future treatments to keep sales climbing over the long run.
Novartis is also a higher-conviction pick for Wood. You'll find its shares both in the Genomics ETF and in the flagship Innovation ETF, with total holdings combining to a nearly $380 million investment in the Swiss drugmaker. It's a top-10 holding in the Genomics ETF, making up more than 3% of total assets.
Novartis has done considerable work in the drug discovery realm, with efforts to use technology to build a digital data science platform. That makes the company somewhat of a pick-and-shovel play for Wood, as innovations that Novartis develops might end up proving useful to the other genomics-focused companies in which her ETFs invest.
Takeda Pharmaceuticals
Lastly, Takeda Pharmaceuticals (NYSE: TAK) plays a significant role in Wood's genomics-related positions. She's invested more than $250 million in the Japanese company, giving it a nearly 3% position in the Genomics ETF. It also boasts a dividend yield of nearly 5%, putting it in the upper echelon even among income investor-friendly pharma companies.
Takeda isn't a household name for many U.S. investors, but the company has concentrated its efforts lately on strategic acquisitions to bolster its R&D and drug pipeline capabilities. The Asian pharma giant has worked with major COVID-19 vaccine makers like Moderna (NASDAQ: MRNA) and Novavax (NASDAQ: NVAX) on the manufacturing and commercialization front, and it has also built up a stable of candidate treatments for cancer, liver disease, and other illnesses.
Of particular importance to Wood might be Takeda's leukemia drug Iclusig, as it fits well with her overall themes in the space. Takeda stock has lost significant value in recent years, and that makes Wood look a bit out of character as a buyer on attractive valuations as well as growth prospects.
Get paid with growth stocks
Most of the stocks you'll find in Cathie Wood's ARK Invest funds are plowing every penny of cash flow they get back into their respective companies. However, even dividend investors can find some attractive picks among Wood's favorites. Those seeking income would do well to take a closer look at Takeda, Novartis, and AbbVie.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. As the founder of the ARK Invest family of exchange-traded funds , amazing returns in 2020 gave her a reputation for finding little-followed high-growth companies early in their existence and riding them to big long-term gains. With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. | The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. With a market capitalization of $200 billion, AbbVie is big enough to make strategic acquisitions of significant companies in key areas that Wood sees as having high growth prospects. | The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. AbbVie isn't a huge holding for Wood, but her ARK Genomic Revolution ETF (NYSEMKT: ARKG) has about $60 million invested in the pharma company. | The pharmaceutical company qualifies as a Dividend Aristocrat, as it has consistently boosted its annual payouts to shareholders since its spinoff from Abbott Laboratories (NYSE: ABT) in the early 2010s. AbbVie AbbVie (NYSE: ABBV) is perhaps the best-known dividend stock among the holdings of Cathie Wood's ETFs. Takeda Pharmaceuticals Lastly, Takeda Pharmaceuticals (NYSE: TAK) plays a significant role in Wood's genomics-related positions. |
32083.0 | 2021-06-25 00:00:00 UTC | What's Next For Masimo Stock After A 14% Rise In 10 Days? | ABT | https://www.nasdaq.com/articles/whats-next-for-masimo-stock-after-a-14-rise-in-10-days-2021-06-25 | nan | nan | The stock price of Masimo Corporation (NASDAQ:MASI), a medical devices company best known for its remote patient monitoring systems, has seen a rise of 9.4% in last twenty-one trading days, while it is up 14% over the last ten days. The company yesterday announced the U.S. FDA approval for its Radius T wearable wireless thermometer for continuous monitoring of body temperature. The thermometer is cleared for both prescription and over-the-counter (OTC) use. But what led the growth in the stock over the recent days was positive findings from a study aimed at assessing the benefits of Oxygen Reserve Index (ORi). The data indicated that ORi-guided thoracic anesthesia may reduce length of stay at hospital and it also increases the safety of patients. ORi has so far not been cleared by the U.S. FDA and the recent positive findings bode well for Masimo, which provides patient monitoring solutions.
However, now that MASI stock has seen a rise of 9.4% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a solid chance of a rise in MASI stock over the next month. Out of 432 instances in the last ten years that Masimo stock saw a twenty-one day rise of 9.4% or more, 293 of them resulted in MASI stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 293 out of 432, or about 68% chance of a rise in MASI stock over the coming month. Also, despite the recent rally, MASI stock is up only 4% from the levels it was trading at a year ago. See our analysis on Masimo Stock Chances of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten year data
After moving 6.2% or more over a five-day period, the stock rose in the next 5 days on 60% of the occasions.
After moving 14% or more over a ten-day period, the stock rose in the next 10 days on 69% of the occasions
After moving 9.4% or more over a twenty-one-day period, the stock rose in the next 21 days on 68% of the occasions
Predict average return on Masimo (MASI) Stock Return: AI Predicts MASI Average and Excess Return After a Fall or Rise
Masimo (MASI) Stock Return (Recent) Comparison With Peers
Five-Day Return: MASI highest at 6.2%; SPY lowest at -0.3%
Ten-Day Return: MASI highest at 14%; SPY lowest at 0.2%
Twenty-One Day Return: DXCM highest at 25%; MDT lowest at -0.4%
While MASI 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 Merck vs. Regeneron
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company yesterday announced the U.S. FDA approval for its Radius T wearable wireless thermometer for continuous monitoring of body temperature. But what led the growth in the stock over the recent days was positive findings from a study aimed at assessing the benefits of Oxygen Reserve Index (ORi). Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten year data After moving 6.2% or more over a five-day period, the stock rose in the next 5 days on 60% of the occasions. | ORi has so far not been cleared by the U.S. FDA and the recent positive findings bode well for Masimo, which provides patient monitoring solutions. Out of 432 instances in the last ten years that Masimo stock saw a twenty-one day rise of 9.4% or more, 293 of them resulted in MASI stock rising over the subsequent one month period (twenty-one trading days). After moving 14% or more over a ten-day period, the stock rose in the next 10 days on 69% of the occasions After moving 9.4% or more over a twenty-one-day period, the stock rose in the next 21 days on 68% of the occasions Predict average return on Masimo (MASI) Stock Return: AI Predicts MASI Average and Excess Return After a Fall or Rise Masimo (MASI) Stock Return (Recent) Comparison With Peers Five-Day Return: MASI highest at 6.2%; SPY lowest at -0.3% Ten-Day Return: MASI highest at 14%; SPY lowest at 0.2% Twenty-One Day Return: DXCM highest at 25%; MDT lowest at -0.4% While MASI stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of Masimo Corporation (NASDAQ:MASI), a medical devices company best known for its remote patient monitoring systems, has seen a rise of 9.4% in last twenty-one trading days, while it is up 14% over the last ten days. Out of 432 instances in the last ten years that Masimo stock saw a twenty-one day rise of 9.4% or more, 293 of them resulted in MASI stock rising over the subsequent one month period (twenty-one trading days). After moving 14% or more over a ten-day period, the stock rose in the next 10 days on 69% of the occasions After moving 9.4% or more over a twenty-one-day period, the stock rose in the next 21 days on 68% of the occasions Predict average return on Masimo (MASI) Stock Return: AI Predicts MASI Average and Excess Return After a Fall or Rise Masimo (MASI) Stock Return (Recent) Comparison With Peers Five-Day Return: MASI highest at 6.2%; SPY lowest at -0.3% Ten-Day Return: MASI highest at 14%; SPY lowest at 0.2% Twenty-One Day Return: DXCM highest at 25%; MDT lowest at -0.4% While MASI stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of Masimo Corporation (NASDAQ:MASI), a medical devices company best known for its remote patient monitoring systems, has seen a rise of 9.4% in last twenty-one trading days, while it is up 14% over the last ten days. ORi has so far not been cleared by the U.S. FDA and the recent positive findings bode well for Masimo, which provides patient monitoring solutions. Out of 432 instances in the last ten years that Masimo stock saw a twenty-one day rise of 9.4% or more, 293 of them resulted in MASI stock rising over the subsequent one month period (twenty-one trading days). |
32084.0 | 2021-06-24 00:00:00 UTC | Interesting ABT Put And Call Options For August 6th | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-august-6th-2021-06-24 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 6th contracts and identified one put and one call contract of particular interest.
The put contract at the $111.00 strike price has a current bid of $1.72. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $111.00, but will also collect the premium, putting the cost basis of the shares at $109.28 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $113.14/share today.
Because the $111.00 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 100%. 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 1.55% return on the cash commitment, or 13.15% 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 $111.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $115.00 strike price has a current bid of 52 cents. If an investor was to purchase shares of ABT stock at the current price level of $113.14/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $115.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.10% if the stock gets called away at the August 6th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red:
Considering the fact that the $115.00 strike represents an approximate 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 0.46% boost of extra return to the investor, or 3.90% 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 $113.14) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 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 August 6th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 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 August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 6th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 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 August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 6th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $115.00 strike highlighted in red: Considering the fact that the $115.00 strike represents an approximate 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 August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new August 6th contracts and identified one put and one call contract of particular interest. |
32085.0 | 2021-06-24 00:00:00 UTC | Despite A 23% Rise In A Month Dexcom Stock Will Likely See Higher Levels | ABT | https://www.nasdaq.com/articles/despite-a-23-rise-in-a-month-dexcom-stock-will-likely-see-higher-levels-2021-06-24 | nan | nan | [Updated: 6/22/2021] DXCM Stock Rise
Last month, we discussed why the sell-off in Dexcom Stock (NASDAQ: DXCM) was unwarranted, and we expected it to see higher levels. Since then, DXCM stock has rallied 18%, while it is up 23% over the last twenty-one trading days. There were some positive developments for the company as well. The Centers For Medicare & Medicaid Services (CMS) recently announced that there is no longer a requirement for a minimum of four self-monitoring blood glucose tests per day to have the continuous glucose monitoring (CGM) devices covered. This step will result in better patient access, and bode well for companies such as Dexcom and Abbott that develop CGM devices with no requirement of finger-pricking.
Furthermore, Dexcom expects to launch its newest CGM device – G7 – later this year, and given that the new device will use a new and improved application, while it will also be 60% smaller in size compared to the current G6, making it the smallest CGM device available in the market. It has several other benefits over the current version, such as, its transmitter and sensor will be combined, making it a single fully disposable unit. It is also expected to have a longer wear time. As such, the G7 CGM will likely be more attractive to customers, and bolster Dexcom’s sales growth after its launch.
However, now that DXCM stock has seen a rise of 23% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a rise in DXCM stock over the next month. Out of 184 instances in the last ten years that Dexcom stock saw a twenty-one day rise of 23% or more, 99 of them resulted in DXCM stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 99 out of 184, or about 54% chance of a rise in DXCM stock over the coming month. Also, despite the recent rally, DXCM stock is up only 4% from the levels it was trading at a year ago. See our analysis on Dexcom Stock Chances of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last 10 year data
3.4% or higher return during five-day period in 794 times out of 2517; Stock rose in the next 5 days in 448 of these 794 instances
9.3% or higher return during ten-day period in 463 times out of 2517; Stock rose in the next 10 days in 260 of these 463 instances
23% or higher return during twenty-one day period in 184 times out of 2516; Stock rose in the next 21 days in 99 of these 184 instances
Predict average return on DexCom (DXCM) Stock Return: AI Predicts DXCM Average and Excess Return After a Fall or Rise
DexCom (DXCM) Stock Return (Recent) Comparison With Peers
Five-Day Return: DXCM highest at 3.4%; SPY lowest at -1%
Ten-Day Return: DXCM highest at 9.3%; SPY lowest at -0.3%
Twenty-One Days Return: DXCM highest at 23%; ABT lowest at -5.4%
[Updated: 5/6/2021] DXCM Stock Decline
The stock price of Dexcom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has seen an 11% drop over the last five trading days, and we believe the stock is likely to rebound in the near term. The recent drop is surprising, given that the company last week reported its Q1 numbers, which were actually above the street estimates. Dexcom’s Q1 sales of $505 million was higher than the $482 million consensus estimate. Similarly, its adjusted EPS of $0.33 was ahead of the $0.31 consensus estimate. Looking at the company’s guidance for revenue to be between $2.26 billion and $2.36 billion in 2021 is also in-line with the $2.33 billion consensus estimates. It’s not that the stock had seen a large rally. DXCM stock is up just 1% year-to-date, and it is at the same levels it was at a year back.
While there have been rumors of Apple (NASDAQ:AAPL) coming up with a CGM feature in its Apple Watch, the company hasn’t confirmed it yet. That said, if Apple does come up with this feature, it will surely take a toll on companies such as Dexcom and Abbott, that sell the wearable CGM devices, especially if the data collected by Apple Watch is fully reliable. However, it’s not easy to secure the U.S. FDA regulatory approval for a wearable CGM device given that it expects the data to be comparable to the regular CGM devices. It seems unlikely at this stage that Apple may come up with a CGM feature to match the level of accuracy on other CGM devices, such as that of Dexcom and Abbott.
Looking at the recent decline, the 11% drop for DXCM stock over the last five days compares with just a 0.7% decline seen in the broader S&P 500 index. Now, is DXCM stock poised to drop further? It doesn’t appears so. Given the large underperformance over the recent past, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a 64% chance of a rise in DXCM stock over the next month (twenty-one trading days).
Out of 75 instances in the last ten years that Dexcom (DXCM) stock saw a five-day decline of 11% or more, 48 of them resulted in DXCM stock rising over the subsequent one month period (21 trading days). This historical pattern reflects 48 out of 75, or about a 64% chance of gain in DXCM stock over the coming month. See our analysis on Dexcom Stock Chances of Rise for more details.
Five Days: DXCM -11%, vs. S&P500 -0.7%; Underperformed market
(3% likelihood event)
Dexcom stock declined 11% over a five-day trading period ending 5/5/2021, compared to the broader market (S&P500) decline of 0.7%
A change of -11% or more over five trading days is a 3% likelihood event, which has occurred 76 times out of 2516 in the last ten years.
Ten Days: DXCM -8.5%, vs. S&P500 0.4%; Underperformed market
(11% likelihood event)
Dexcom stock declined 8.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 0.4%
A change of -8.5% or more over ten trading days is a 11% likelihood event, which has occurred 268 times out of 2511 in the last ten years.
Twenty-One Days: DXCM 5.4%, vs. S&P500 4.3%; Outperformed market
(44% likelihood event)
Dexcom stock rose 5.4% the last twenty-one trading days (1 month), compared to the broader market (S&P500) rise of 4.3%
A change of 5.4% or more over twenty-one trading days is a 44% likelihood event, which has occurred 1107 times out of 2500 in the last ten years.
While DXCM stock can see a rebound, it is helpful to see how its peers stack up. Check out Dexcom Stock Comparison With Peers to see how DXCM stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last 10 year data 3.4% or higher return during five-day period in 794 times out of 2517; Stock rose in the next 5 days in 448 of these 794 instances 9.3% or higher return during ten-day period in 463 times out of 2517; Stock rose in the next 10 days in 260 of these 463 instances 23% or higher return during twenty-one day period in 184 times out of 2516; Stock rose in the next 21 days in 99 of these 184 instances Predict average return on DexCom (DXCM) Stock Return: AI Predicts DXCM Average and Excess Return After a Fall or Rise DexCom (DXCM) Stock Return (Recent) Comparison With Peers Five-Day Return: DXCM highest at 3.4%; SPY lowest at -1% Ten-Day Return: DXCM highest at 9.3%; SPY lowest at -0.3% Twenty-One Days Return: DXCM highest at 23%; ABT lowest at -5.4% [Updated: 5/6/2021] DXCM Stock Decline The stock price of Dexcom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has seen an 11% drop over the last five trading days, and we believe the stock is likely to rebound in the near term. This step will result in better patient access, and bode well for companies such as Dexcom and Abbott that develop CGM devices with no requirement of finger-pricking. However, now that DXCM stock has seen a rise of 23% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? | Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last 10 year data 3.4% or higher return during five-day period in 794 times out of 2517; Stock rose in the next 5 days in 448 of these 794 instances 9.3% or higher return during ten-day period in 463 times out of 2517; Stock rose in the next 10 days in 260 of these 463 instances 23% or higher return during twenty-one day period in 184 times out of 2516; Stock rose in the next 21 days in 99 of these 184 instances Predict average return on DexCom (DXCM) Stock Return: AI Predicts DXCM Average and Excess Return After a Fall or Rise DexCom (DXCM) Stock Return (Recent) Comparison With Peers Five-Day Return: DXCM highest at 3.4%; SPY lowest at -1% Ten-Day Return: DXCM highest at 9.3%; SPY lowest at -0.3% Twenty-One Days Return: DXCM highest at 23%; ABT lowest at -5.4% [Updated: 5/6/2021] DXCM Stock Decline The stock price of Dexcom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has seen an 11% drop over the last five trading days, and we believe the stock is likely to rebound in the near term. Ten Days: DXCM -8.5%, vs. S&P500 0.4%; Underperformed market (11% likelihood event) Dexcom stock declined 8.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 0.4% A change of -8.5% or more over ten trading days is a 11% likelihood event, which has occurred 268 times out of 2511 in the last ten years. Twenty-One Days: DXCM 5.4%, vs. S&P500 4.3%; Outperformed market (44% likelihood event) Dexcom stock rose 5.4% the last twenty-one trading days (1 month), compared to the broader market (S&P500) rise of 4.3% A change of 5.4% or more over twenty-one trading days is a 44% likelihood event, which has occurred 1107 times out of 2500 in the last ten years. | Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last 10 year data 3.4% or higher return during five-day period in 794 times out of 2517; Stock rose in the next 5 days in 448 of these 794 instances 9.3% or higher return during ten-day period in 463 times out of 2517; Stock rose in the next 10 days in 260 of these 463 instances 23% or higher return during twenty-one day period in 184 times out of 2516; Stock rose in the next 21 days in 99 of these 184 instances Predict average return on DexCom (DXCM) Stock Return: AI Predicts DXCM Average and Excess Return After a Fall or Rise DexCom (DXCM) Stock Return (Recent) Comparison With Peers Five-Day Return: DXCM highest at 3.4%; SPY lowest at -1% Ten-Day Return: DXCM highest at 9.3%; SPY lowest at -0.3% Twenty-One Days Return: DXCM highest at 23%; ABT lowest at -5.4% [Updated: 5/6/2021] DXCM Stock Decline The stock price of Dexcom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has seen an 11% drop over the last five trading days, and we believe the stock is likely to rebound in the near term. Ten Days: DXCM -8.5%, vs. S&P500 0.4%; Underperformed market (11% likelihood event) Dexcom stock declined 8.5% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 0.4% A change of -8.5% or more over ten trading days is a 11% likelihood event, which has occurred 268 times out of 2511 in the last ten years. Twenty-One Days: DXCM 5.4%, vs. S&P500 4.3%; Outperformed market (44% likelihood event) Dexcom stock rose 5.4% the last twenty-one trading days (1 month), compared to the broader market (S&P500) rise of 4.3% A change of 5.4% or more over twenty-one trading days is a 44% likelihood event, which has occurred 1107 times out of 2500 in the last ten years. | Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last 10 year data 3.4% or higher return during five-day period in 794 times out of 2517; Stock rose in the next 5 days in 448 of these 794 instances 9.3% or higher return during ten-day period in 463 times out of 2517; Stock rose in the next 10 days in 260 of these 463 instances 23% or higher return during twenty-one day period in 184 times out of 2516; Stock rose in the next 21 days in 99 of these 184 instances Predict average return on DexCom (DXCM) Stock Return: AI Predicts DXCM Average and Excess Return After a Fall or Rise DexCom (DXCM) Stock Return (Recent) Comparison With Peers Five-Day Return: DXCM highest at 3.4%; SPY lowest at -1% Ten-Day Return: DXCM highest at 9.3%; SPY lowest at -0.3% Twenty-One Days Return: DXCM highest at 23%; ABT lowest at -5.4% [Updated: 5/6/2021] DXCM Stock Decline The stock price of Dexcom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has seen an 11% drop over the last five trading days, and we believe the stock is likely to rebound in the near term. This step will result in better patient access, and bode well for companies such as Dexcom and Abbott that develop CGM devices with no requirement of finger-pricking. Furthermore, Dexcom expects to launch its newest CGM device – G7 – later this year, and given that the new device will use a new and improved application, while it will also be 60% smaller in size compared to the current G6, making it the smallest CGM device available in the market. |
32086.0 | 2021-06-22 00:00:00 UTC | IVE, MDT, MDLZ, ABT: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/ive-mdt-mdlz-abt%3A-etf-outflow-alert-2021-06-22 | 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 Value ETF (Symbol: IVE) where we have detected an approximate $248.9 million dollar outflow -- that's a 1.1% decrease week over week (from 154,250,000 to 152,550,000). Among the largest underlying components of IVE, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, Mondelez International Inc (Symbol: MDLZ) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average:
Looking at the chart above, IVE's low point in its 52 week range is $104.70 per share, with $152.22 as the 52 week high point — that compares with a last trade of $146.21. 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 IVE, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, Mondelez International Inc (Symbol: MDLZ) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $104.70 per share, with $152.22 as the 52 week high point — that compares with a last trade of $146.21. 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 IVE, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, Mondelez International Inc (Symbol: MDLZ) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $104.70 per share, with $152.22 as the 52 week high point — that compares with a last trade of $146.21. 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 IVE, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, Mondelez International Inc (Symbol: MDLZ) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. 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 Value ETF (Symbol: IVE) where we have detected an approximate $248.9 million dollar outflow -- that's a 1.1% decrease week over week (from 154,250,000 to 152,550,000). For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $104.70 per share, with $152.22 as the 52 week high point — that compares with a last trade of $146.21. | Among the largest underlying components of IVE, in trading today Medtronic PLC (Symbol: MDT) is up about 0.6%, Mondelez International Inc (Symbol: MDLZ) is up about 0.3%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. 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 Value ETF (Symbol: IVE) where we have detected an approximate $248.9 million dollar outflow -- that's a 1.1% decrease week over week (from 154,250,000 to 152,550,000). For a complete list of holdings, visit the IVE Holdings page » The chart below shows the one year price performance of IVE, versus its 200 day moving average: Looking at the chart above, IVE's low point in its 52 week range is $104.70 per share, with $152.22 as the 52 week high point — that compares with a last trade of $146.21. |
32087.0 | 2021-06-21 00:00:00 UTC | These Stocks Are Better Priced Compared To Abbott | ABT | https://www.nasdaq.com/articles/these-stocks-are-better-priced-compared-to-abbott-2021-06-22 | nan | nan | We believe that there are other stocks in the healthcare sector that are currently better valued than Aboott Laboratories (NYSE: ABT). Abbott’s current price-to-operating income ratio (P/EBIT) of 30x is much higher than levels of under 12x for PerkinElmer (PKI), and 4x for Quidel (QDEL). Both of these stocks have a lower valuation (P/EBIT) compared to Abbott, while both of them have seen higher revenue and operating income growth. This disconnect between valuation and performance could mean that you are better off buying PKI and QDEL vs. ABT. More specifically, we arrive at our conclusion by looking at historical trends in revenues, operating income, and P/EBIT for these companies. Our dashboard Better Bet Than Abbott Stock: Pay Less To Get More From Sector Peers PKI, QDEL has more details – parts of which are summarized below.
1. Revenue Growth
Abbott’s revenue grew at an average rate of 8.2% over the last three years, as compared to revenue growth of 19.0% for PerkinElmer, and a large 100% for Quidel. Even if we look at the revenue growth over the last twelve month period, Abbott’s top-line growth of 16% is much lower than 54% for PerkinElmer and a whopping 211% for Quidel.
Abbott’s revenue growth over the recent past has been driven by higher diagnostics sales, primarily from its Covid-19 tests, which more than offset the decline seen in other segments, primarily medical devices, due to postponement of elective surgeries due to the impact of the pandemic, in the first half of 2020. PerkinElmer sales were also higher due to massive demand for Covid-19 tests, offsetting the decline in other businesses. In fact, the same is the case for Quidel, which saw its sales surge due to higher demand for testing.
2. Operating Income Growth
The three-year average operating income growth for Abbott stands at 57%, lower than 68% for PerkinLemer, and a large 409% for Quidel. Better revenue growth as well as margin expansion for the latter two led to higher operating income for these companies. Looking at the last twelve month period, Abbott’s 49% growth in operating income is much lower than the 297% for PerkinElmer and over 1000% for Quidel. The operating margins for Quidel surged to 64.4% in 2020, compared to just 9.8% in 2017. Much of this growth came over the last twelve-month period, when demand for Covid-19 testing was very high across the globe.
The Net of It All
Although Abbott’s revenue base is much larger than PerkinElmer and Quidel, both of these companies have seen higher growth in revenues and operating income than Abbott in the last twelve months as well as the last three years. Yet, they appear to be valued significantly lower than Abbott. Why is that? To some extent, the gap in valuation does make sense, given that there are valid concerns of future sales growth, especially for Quidel. Abbott is far more diversified compared to PerkinElmer and Quidel, and when Covid-19 testing declines, Abbott’s other business segments, primarily medical devices, will drive the revenue growth. For PerkinElmer, there will likely be a rebound in the demand for life science research, food, environmental and industrial testing.
While there is no denying that Quidel will see a decline in sales, as the Covid-19 crisis winds down, some of the demand for testing will likely remain over the next few years, boding well for all three companies, but more meaningful for Quidel, given its high reliance on tests. Overall, we think that this gap in valuation will eventually narrow over time to favor the group of comparatively less expensive names. As such, we believe that PKI and QDEL are currently better buying opportunities compared to ABT stock.
While QDEL and PKI stocks may outperform ABT in the near term, 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 Johnson & Johnson vs Quest Diagnostics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While QDEL and PKI stocks may outperform ABT in the near term, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. We believe that there are other stocks in the healthcare sector that are currently better valued than Aboott Laboratories (NYSE: ABT). This disconnect between valuation and performance could mean that you are better off buying PKI and QDEL vs. ABT. | We believe that there are other stocks in the healthcare sector that are currently better valued than Aboott Laboratories (NYSE: ABT). This disconnect between valuation and performance could mean that you are better off buying PKI and QDEL vs. ABT. As such, we believe that PKI and QDEL are currently better buying opportunities compared to ABT stock. | We believe that there are other stocks in the healthcare sector that are currently better valued than Aboott Laboratories (NYSE: ABT). This disconnect between valuation and performance could mean that you are better off buying PKI and QDEL vs. ABT. As such, we believe that PKI and QDEL are currently better buying opportunities compared to ABT stock. | As such, we believe that PKI and QDEL are currently better buying opportunities compared to ABT stock. We believe that there are other stocks in the healthcare sector that are currently better valued than Aboott Laboratories (NYSE: ABT). This disconnect between valuation and performance could mean that you are better off buying PKI and QDEL vs. ABT. |
32088.0 | 2021-06-18 00:00:00 UTC | This Safe 5-Stock Healthcare Portfolio Yields 5.5% | ABT | https://www.nasdaq.com/articles/this-safe-5-stock-healthcare-portfolio-yields-5.5-2021-06-18 | nan | nan | Healthcare--along with consumer staples ("buying stuff") and utilities ("keeping the lights on")--provide portfolio stability. Plus, they usually pay dividends, too!
Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:
National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
Between 2019 and 2028, healthcare's share of the economy will rise from 17.7% to 19.7%.
Price growth for medical goods and services (as measured by the personal health care deflator) is projected to accelerate, averaging 2.4% per year for 2019-28.
This isn't new. We all feel that growing pinch year after year. But like it or loathe it, that pain in our pockets has translated into big profits for the healthcare sector, which has not only performed exceedingly well over the long term, but has kept volatility down for shareholders, too.
Healthcare Stocks: Respectable Performance, Cool Composure
Source: Morningstar. Return ranks based on best performance; 1 = best. Beta ranks based on lowest beta; 1 = lowest beta.
Better still, healthcare is responsible for some of the most reliable dividends on the planet, with several sector names boasting Dividend Aristocracy, but it's also not difficult to find fat yielders too, throwing off payouts north of 5%.
Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come:
AbbVie (ABBV)
Dividend Yield: 4.5%
AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. The original Dividend Aristocrat maintained its lines of med-tech devices and other healthcare products, while the latter would hold biopharmaceutical products such as Humira, AndroGel and Tricor.
And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT.
AbbVie Has Been Yielding 4%-Plus Since 2019
You can't discuss AbbVie without discussing Humira--its blockbuster drug that treats Crohn's disease, rheumatoid arthritis, psoriasis and other diseases, and that brings in more than a third of total revenues.
What's worth talking about nowadays, however, is that the slice of revenues it generates is thinning. During the final quarter of 2019, Humira sales made up nearly 60% of the total pie. But patent expirations, as they do, are eating into its areas of opportunity not just in the U.S., but overseas.
Fortunately, AbbVie is offsetting that with immunology treatments Skyrizi and Rinvoq, as well as oncology treatments such as Imbruvica and Venclexta. It's also trying to grow through acquisitions; last year, it completed a $63 billion buyout of Botox maker Allergan.
Unlike many companies, AbbVie didn't really miss a beat in 2020. Revenues jumped 37.7% to $45.8 billion, while adjusted earnings were up 18.1% to $10.56 per share. The pros are expecting another strong year in 2021, with revenues up 22% and profits 19% better than in 2020.
Meanwhile, the dividend, in normal years, is backed by roughly twice the cash flow necessary to cover it. That makes ABBV one of the few traditional 4%+ yielding blue chips you don't need to lose sleep over.
National Health Investors (NHI)
Dividend Yield: 5.4%
While many healthcare stocks provide better dividends than the market average, to get truly substantial income, you need to veer into the real estate space.
National Health Investors (NHI) is a real estate investment trust (REIT) that manages 242 properties across 34 states--primarily senior housing and skilled nursing facilities, with a sprinkling of medical office buildings and other healthcare properties.
Senior care once seemed like a can't-miss business. The aging of the Baby Boomers was sure to eventually pack these facilities, leading to literally decades of higher cash flows. NHI seemed to be reflecting that track, with dividends growing every year since 2001.
But things have changed.
Several of NHI's tenants are feeling the stress of the COVID downturn, which has shaken the general thesis around senior-care facilities. Recently, National Health Investors made a lease-deferral agreement with independent living facility operator Holiday Retirement, forcing the pros to downgrade their estimates for FFO (funds from operations, which are a vital measure of a REIT's profitability).
More immediately, the Holiday deferment, as well as uncertainty among other tenants, forced NHI to cut its quarterly payout by 18.4% to 90 cents per share. While the yield is still more than 5% regardless, investors should avoid this particular REIT until the smoke clears.
As the Dividend Goes, So Goes NHI Shares
Sabra Health Care REIT (SBRA)
Dividend Yield: 6.7%
Sabra Health Care REIT (SBRA) is a similar play that took its dividend lumps last year.
Sabra boasts 426 properties nationwide, two-thirds of which are skilled nursing and transitional care. Another 25% is either leased or managed senior housing facilities, and the remainder are spread amongst specialty hospitals and other healthcare buildings.
Like many other firms that cut their payouts in 2020, Sabra announced its dividend cut in the spring, long before the actual damage from COVID was known. SBRA announced in March 2020 that it would pull back its payout by 33% to 30 cents per share--a move expected to save the firm $30 million in cash quarterly.
"It is impossible to predict the ultimate impact on our operators. We believe that reducing the quarterly dividend is an appropriate response to enhance the company's management of this pandemic," CEO Rick Matros said at the time.
Sabra Faced the Music Early
Sabra is far from pretty right now, and shares still haven't recovered to pre-pandemic levels. However, its early dividend cut did, in fact, help pad the balance sheet, putting the REIT on firmer ground as its tenants' operations recover. In fact, you could argue that this nearly 7% yield is going on the cheap, with SBRA trading at a hair less than 11 times 2021 estimates for FFO.
Global Medical REIT (GMRE)
Dividend Yield: 5.3%
Lest you think every healthcare REIT is cutting dividends, let's take a look at Global Medical REIT (GMRE), which improved its payout earlier this year.
The "Global Medical" moniker is a bit of a tease, as this healthcare REIT is entirely U.S.-centric. GMRE leases out 145 buildings to 117 tenants across 29 states, with an occupancy rate slightly above 99%. More than 60% of the firm's properties are medical office buildings, inpatient rehab facilities make up another 20%, 7% are surgical hospitals and the remainder is scattered among other types of healthcare buildings.
GMRE has been a serial acquirer since its 2016 initial public offering, with the portfolio growing by 74% annually to its current $1.1 billion in gross investments. But it also grows its profits organically, building in annual rent escalations of roughly 2% on average.
Global Medical REIT experienced a smaller COVID slide than many in its industry due to its particular building mix, and it has rebounded more quickly. Indeed, the company's financial situation allowed it to finally improve its payout for the first time since its IPO, albeit by a mere 2.5% to 20.5 cents per share.
The Start of a More Generous GMRE?
What I like more is the fact that GMRE managed to reduce its leverage at the same time, paying off debt with most of the proceeds of a public share offering in Q1. Existing shareholders might not have liked the dilution, but buyers clearly aren't being deterred.
LTC Properties (LTC)
Dividend Yield: 5.8%
We can get juicy monthly dividends out of healthcare too, if we know where to look.
LTC Properties (LTC) is a senior housing and healthcare REIT that invests in such properties through mortgage financing, sale-leaseback and other methods. It currently boasts 177 investments across 30 partners in 27 states.
LTC's tenant mix is roughly 50-50 senior housing and skilled nursing, putting it smack-dab in the eye of the COVID storm. Last March, the company was forced to nix a share buyback plan it had announced just a couple of weeks earlier (though it managed to maintain its monthly dividend), and the bear-market turn pulled LTC shares by as much as 40% lower at the depths.
LTC Remains in Recovery Mode
Like with NHI, LTC continues to feel COVID's effects. The company's most recent quarterly results missed the mark (64 cents per share of FFO versus expectations for 68 cents) thanks to a nonpayment by tenant Senior Lifestyle Corporation (SLC), as well as lowered rent escalations to troubled operators. In fact, SLC hasn't paid rent for seven months, and NHI has recently transitioned nearly a dozen SLC properties to other senior living operators.
The "A" Squad: Monthly Payers Doling Out 7% Yields
The yield is nice, at nearly 6%, and it's especially nice to have that cash paid out monthly. But LTC's future still looks hazy, and a valuation of 15 times FFO estimates is hardly enticing enough.
If you're looking for a long-term income solution that will pay you each and every month, you can do better--in fact, right now, you can get roughly 7% on average on investments that are swimming with the current, not against it.
My "7% Monthly Payer Portfolio" is an elite set of high-income, high-frequency dividend payers that, at current prices, are smack-dab in the middle of our ideal "buy zone." And as the name suggests, these 7% dividends are paid out to investors each and every month.
Many of the picks in my "7% Monthly Payer Portfolio" leverage the power of steady-Eddie holdings to generate not just massive yields, but shockingly aggressive price performance. That allows us to do the unthinkable from an income strategy: double our money much more quickly than traditional blue-chips-and-mutual-funds portfolios.
These dividends aren't just good.
They're not just great, either.
They're downright life-changing.
If you drop $500K--less than half what most financial gurus suggest you need to retire--into this powerful portfolio now, you'd kick-start a $36,000 annual income stream. That's more than $3,000 a month in regular income checks!
The time to get in is now, while you can still buy these names at bargain prices. Click here to get everything you need--names, tickers, complete dividend histories and more--instantly!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. Consider these stats from the Centers for Medicare & Medicaid Services: National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028. | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. National Health Investors (NHI) Dividend Yield: 5.4% While many healthcare stocks provide better dividends than the market average, to get truly substantial income, you need to veer into the real estate space. | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. Sabra Health Care REIT (SBRA) Dividend Yield: 6.7% Sabra Health Care REIT (SBRA) is a similar play that took its dividend lumps last year. | Here, we'll examine five healthcare names that should keep your income portfolio in peak condition for years to come: AbbVie (ABBV) Dividend Yield: 4.5% AbbVie (ABBV) was famously spun off from Abbott Laboratories (ABT) at the start of 2013. And keeping in line with the pharmaceutical industry, ABBV has offered the superior dividend ever since parting with ABT. National Health Investors (NHI) is a real estate investment trust (REIT) that manages 242 properties across 34 states--primarily senior housing and skilled nursing facilities, with a sprinkling of medical office buildings and other healthcare properties. |
32089.0 | 2021-06-18 00:00:00 UTC | Next Market Crash 101: 2 Top Growth Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/next-market-crash-101%3A-2-top-growth-stocks-to-buy-right-now-2021-06-18 | nan | nan | The state of the stock market in recent weeks hasn't been for the faint of heart. Whether the volatility investors are currently seeing actually foreshadows another market crash is anyone's guess, and trying to time the market to predict the best windows for buying stocks can be a recipe for disaster.
No matter how worried you may be about a crash, it's always a great time to invest in high-quality stocks that generate wealth-building portfolio returns. To that end, let's take a look at two top stocks that can help your portfolio navigate the next market storm and provide meaningful sources of growth for years to come.
Image source: Getty Images.
1. Facebook
Facebook (NASDAQ: FB) is hardly a new choice for long-term investors, but it's the type of stock you can add more of to your portfolio time and time again. The popular FAANG stock has gained approximately 25% since the beginning of 2021, and is up an eye-popping 41% compared to the same time last year.
Facebook continues to control a massive share of the social media industry. According to Statista, "Facebook accounted for nearly 71.8% of all social media site visits in the United States in May 2021." The company's ever-increasing market share is also driving exponential balance sheet growth.
2020 was just another strong year in the books for Facebook, during which its total revenues increased 22% and its net income rose 58%. But Facebook's financial performance in the first quarter of 2021 left these figures in the dust. The company reported that its revenues surged 48% year over year during the three-month period.
Facebook's net income grew by an even higher percentage -- a whopping 94% from the year-ago stretch. In addition, Facebook reported that its "daily active users" (what it calls daily Facebook users) and "daily active people" (what it calls daily users of any of Facebook's suite of products) surged by respective rates of 8% and 15% in the month of March alone.
If you're wondering whether it's too late to buy Facebook on account of its upside potential, the answer is a resounding no. Facebook has plenty of juice left in it for long-term investors. And analysts currently estimate that the company can consistently deliver more than 20% average annual earnings growth for at least the next five years.
After nearly two decades in business, Facebook continues to expand its market share and reassert its dominance of the social media sphere. This is a premium stock you can hold onto through both market highs and lows, one that can generate consistent growth and maximize your portfolio returns.
2. AbbVie
Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats.
Stocks that snag the title of Dividend Aristocrats must raise their dividend for 25 consecutive years, and Abbott has done so for nearly 50. As a spinoff of Abbott, AbbVie is also considered a member of the Dividend Aristocrat club. It yields a robust 4.5% for investors at the time of this writing.
The biggest concern some investors have about AbbVie is the looming loss of U.S. patent protection for its blockbuster drug Humira in 2023. Humira is an immunosuppressive drug used to treat a range of conditions from arthritis to Crohn's disease. It raked in more sales than any other drug in the entire world in 2020 -- amassing total net revenues just shy of $20 billion during the 12-month period.
There's no doubt that AbbVie's balance sheet will reflect the loss of Humira's patent exclusivity in the U.S. in a few years. We need only look to AbbVie's loss of patent exclusivity in Europe -- which largely took effect in October 2018 -- as an example of this.
Case in point: International sales of Humira were down 14% in 2020, but still totaled nearly $4 billion. In short, heightened competition in the U.S. will certainly detract from Humira's sales come 2023, but that doesn't mean that sales of the drug can't still inject healthy growth into AbbVie's balance sheet over the long term.
It's also important to note that AbbVie has a rock-star portfolio of top-selling drugs besides Humira. These include plaque psoriasis drug Skyrizi, cancer drugs Imbruvica and Venclexta, and rheumatoid arthritis drug Rinvoq. Moreover, AbbVie's acquisition of Allergan last year ushered well-known product names like Botox into its portfolio of lucrative products.
AbbVie's first-quarter 2021 revenues of $13 billion represented a huge 51% increase from the year-ago period. Breaking AbbVie's first-quarter performance down by its top business segments -- immunology, hematologic oncology, aesthetics (which includes Botox Cosmetic), and neuroscience (which includes Botox Therapeutic) -- these four divisions marked respective year-over-year revenue growth of 13%, 8%, 35%, and 100%.
If you're looking for steady portfolio growth and attractive dividend income to anchor your portfolio in the next market storm, AbbVie offers shareholders the unbeatable combination of both.
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Rachel Warren has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Facebook. 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. | No matter how worried you may be about a crash, it's always a great time to invest in high-quality stocks that generate wealth-building portfolio returns. This is a premium stock you can hold onto through both market highs and lows, one that can generate consistent growth and maximize your portfolio returns. AbbVie spun off from Abbott Laboratories in 2013, and its former parent company is a veteran member of the elite stock club known as Dividend Aristocrats. | In addition, Facebook reported that its "daily active users" (what it calls daily Facebook users) and "daily active people" (what it calls daily users of any of Facebook's suite of products) surged by respective rates of 8% and 15% in the month of March alone. There's no doubt that AbbVie's balance sheet will reflect the loss of Humira's patent exclusivity in the U.S. in a few years. If you're looking for steady portfolio growth and attractive dividend income to anchor your portfolio in the next market storm, AbbVie offers shareholders the unbeatable combination of both. | Facebook Facebook (NASDAQ: FB) is hardly a new choice for long-term investors, but it's the type of stock you can add more of to your portfolio time and time again. In addition, Facebook reported that its "daily active users" (what it calls daily Facebook users) and "daily active people" (what it calls daily users of any of Facebook's suite of products) surged by respective rates of 8% and 15% in the month of March alone. AbbVie Healthcare stock AbbVie (NYSE: ABBV) is another golden egg to have in your basket before the next market crash rolls around. | Whether the volatility investors are currently seeing actually foreshadows another market crash is anyone's guess, and trying to time the market to predict the best windows for buying stocks can be a recipe for disaster. Facebook Facebook (NASDAQ: FB) is hardly a new choice for long-term investors, but it's the type of stock you can add more of to your portfolio time and time again. AbbVie's first-quarter 2021 revenues of $13 billion represented a huge 51% increase from the year-ago period. |
32090.0 | 2021-06-17 00:00:00 UTC | February 2022 Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/february-2022-options-now-available-for-abbott-laboratories-abt-2021-06-17 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the February 2022 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly available 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 February 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $7.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $102.95 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $111.63/share today.
Because the $110.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. 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 6.41% return on the cash commitment, or 9.51% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Abbott Laboratories, and highlighting in green where the $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of $2.49. If an investor was to purchase shares of ABT stock at the current price level of $111.63/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $120.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.73% if the stock gets called away at the February 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 $120.00 strike highlighted in red:
Considering the fact that the $120.00 strike represents an approximate 8% 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 2.23% boost of extra return to the investor, or 3.31% 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 $111.63) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 8% 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 February 2022 expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 8% 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 February 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new February 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 8% 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 February 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new February 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 February 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 8% 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 February 2022 expiration. |
32091.0 | 2021-06-15 00:00:00 UTC | What Abbott Laboratories' (NYSE:ABT) P/E Is Not Telling You | ABT | https://www.nasdaq.com/articles/what-abbott-laboratories-nyse%3Aabt-p-e-is-not-telling-you-2021-06-15 | nan | nan | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Abbott Laboratories (NYSE:ABT) as a stock to avoid entirely with its 34.4x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Abbott Laboratories certainly has been doing a good job lately as it's been growing earnings more than most other companies. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing shareholders might be a little nervous about the viability of the share price.
NYSE:ABT Price Based on Past Earnings June 15th 2021
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Abbott Laboratories.
How Is Abbott Laboratories' Growth Trending?
There's an inherent assumption that a company should far outperform the market for P/E ratios like Abbott Laboratories' to be considered reasonable.
Taking a look back first, we see that the company grew earnings per share by an impressive 60% last year. The strong recent performance means it was also able to grow EPS by 1,435% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Shifting to the future, estimates from the analysts covering the company suggest earnings should grow by 9.4% per annum over the next three years. With the market predicted to deliver 14% growth per year, the company is positioned for a weaker earnings result.
In light of this, it's alarming that Abbott Laboratories' P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price. There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.
What We Can Learn From Abbott Laboratories' P/E?
Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our examination of Abbott Laboratories' analyst forecasts revealed that its inferior earnings outlook isn't impacting its high P/E anywhere near as much as we would have predicted. When we see a weak earnings outlook with slower than market growth, we suspect the share price is at risk of declining, sending the high P/E lower. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
It is also worth noting that we have found 3 warning signs for Abbott Laboratories that you need to take into consideration.
It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a P/E ratio below 20x).
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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 Price Based on Past Earnings June 15th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Abbott Laboratories. When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Abbott Laboratories (NYSE:ABT) as a stock to avoid entirely with its 34.4x P/E ratio. Our examination of Abbott Laboratories' analyst forecasts revealed that its inferior earnings outlook isn't impacting its high P/E anywhere near as much as we would have predicted. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Abbott Laboratories (NYSE:ABT) as a stock to avoid entirely with its 34.4x P/E ratio. NYSE:ABT Price Based on Past Earnings June 15th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Abbott Laboratories. Our examination of Abbott Laboratories' analyst forecasts revealed that its inferior earnings outlook isn't impacting its high P/E anywhere near as much as we would have predicted. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Abbott Laboratories (NYSE:ABT) as a stock to avoid entirely with its 34.4x P/E ratio. NYSE:ABT Price Based on Past Earnings June 15th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Abbott Laboratories. Abbott Laboratories certainly has been doing a good job lately as it's been growing earnings more than most other companies. | When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 19x, you may consider Abbott Laboratories (NYSE:ABT) as a stock to avoid entirely with its 34.4x P/E ratio. NYSE:ABT Price Based on Past Earnings June 15th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Abbott Laboratories. Abbott Laboratories certainly has been doing a good job lately as it's been growing earnings more than most other companies. |
32092.0 | 2021-06-15 00:00:00 UTC | This Underappreciated Healthcare Stock Is on Sale: Should You Buy? | ABT | https://www.nasdaq.com/articles/this-underappreciated-healthcare-stock-is-on-sale%3A-should-you-buy-2021-06-15 | nan | nan | Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. Abbott Laboratories sold several hundred million coronavirus test kits last year, which helped keep the company's revenue and earnings afloat. In the fiscal year 2020, ending Dec. 31, Abbott Laboratories recorded sales of $34.6 billion -- an 8.5% year over year increase.
However, the healthcare giant's coronavirus testing tailwinds seem to be coming to an end. The company recently lowered its guidance because it anticipates a decline in demand for COVID-19 tests. This new development sent Abbott Laboratories' stock tumbling by more than 7%. And for the year, the company's shares are up by a measly 0.48%, compared with gains of 12.86% for the S&P 500. Should you buy Abbott Laboratories' stock on the dip?
ABT data by YCharts
A closer look at Abbott Laboratories' new guidance
The worldwide efforts to vaccinate as many people as possible against COVID-19 continue. And while that's great news for the public -- which is anxious to put this pandemic in the rearview mirror once and for all -- it also means less need for diagnostic tests for the disease. This will obviously affect Abbott Laboratories' testing revenue, and it explains why the company decided to update its guidance for the full fiscal year 2021.
The company now expects earnings per share (EPS) based on generally accepted accounting principles (GAAP) between $2.75 and $2.95, which compares unfavorably to its previous guidance of at least $3.74. The company also expects non-GAAP (adjusted) EPS between $4.30 and $4.50, lower than its previous projection of non-GAAP EPS of at least $5 for the year.
Image source: Getty Images.
Should investors worry?
A lower guidance than previously announced is never good news -- for any company. However, it's important to look at things in perspective. First, note that the company's non-GAAP EPS would represent a 20.5% increase at the midpoint compared to the previous fiscal year. Abbott Laboratories' adjusted EPS increased by a lower 12.7% year over year in 2020.
Second, Abbott Laboratories' medical devices business will also benefit from the reopening of the economy. During the first quarter ending March 31, the company's medical devices sales grew by 13.1% to $3.3 billion. Meanwhile, in 2020, revenue from this same segment decreased by 3.7% to $11.8 billion. Lastly, and perhaps most importantly, Abbott Laboratories boasts several exciting growth opportunities.
One of these is its market-leading MitraClip System -- a device for the treatment of mitral regurgitation. In the first quarter, sales of this product jumped by more than 15%. The company also expanded Medicare reimbursement coverage for the MitraClip back in January, which broadened the potential client base for this product. The MitraClip will continue to provide a boost to Abbott Laboratories' financial results.
The company is also betting big on its diabetes care segment, which has been one of its best performing to date. In the first quarter, the medical devices giant reported sales of $980 million from this business, representing an increase of 30.2% compared to the first quarter of 2020. Abbott Laboratories' greatest weapon in this segment is its Continuous Glucose Monitoring (CGM) device, the FreeStyle Libre, which brought in nearly $830 million in sales during the quarter.
With companies such as DexCom and others, the CGM market is competitive. But in my view, there is more than enough space for multiple big players. And what's more, this market is poised to continue growing. According to Grand View Research, the CGM market will expand at a compound annual growth rate (CAGR) of 12.7% through 2027.
In short, Abbott Laboratories's prospects do not rely exclusively -- or even primarily -- on the market for COVID-19 diagnostic test kits. It isn't too surprising that investors chose to send its stock tumbling after it reported its updated guidance; the company's shares had benefited a great deal from its coronavirus efforts before that. Still, Abbott Laboratories' future remains bright, and given its recent dip, now is a great time to open a position in this healthcare stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. ABT data by YCharts A closer look at Abbott Laboratories' new guidance The worldwide efforts to vaccinate as many people as possible against COVID-19 continue. Abbott Laboratories' greatest weapon in this segment is its Continuous Glucose Monitoring (CGM) device, the FreeStyle Libre, which brought in nearly $830 million in sales during the quarter. | Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. ABT data by YCharts A closer look at Abbott Laboratories' new guidance The worldwide efforts to vaccinate as many people as possible against COVID-19 continue. In the fiscal year 2020, ending Dec. 31, Abbott Laboratories recorded sales of $34.6 billion -- an 8.5% year over year increase. | Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. ABT data by YCharts A closer look at Abbott Laboratories' new guidance The worldwide efforts to vaccinate as many people as possible against COVID-19 continue. In the fiscal year 2020, ending Dec. 31, Abbott Laboratories recorded sales of $34.6 billion -- an 8.5% year over year increase. | Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. ABT data by YCharts A closer look at Abbott Laboratories' new guidance The worldwide efforts to vaccinate as many people as possible against COVID-19 continue. In the fiscal year 2020, ending Dec. 31, Abbott Laboratories recorded sales of $34.6 billion -- an 8.5% year over year increase. |
32093.0 | 2021-06-14 00:00:00 UTC | Invesco Dynamic Large Cap Growth ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/invesco-dynamic-large-cap-growth-etf-experiences-big-outflow-2021-06-14 | 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 Dynamic Large Cap Growth ETF (Symbol: PWB) where we have detected an approximate $228.8 million dollar outflow -- that's a 23.4% decrease week over week (from 13,660,000 to 10,460,000). Among the largest underlying components of PWB, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, Danaher Corp (Symbol: DHR) is off about 1.1%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the PWB Holdings page » The chart below shows the one year price performance of PWB, versus its 200 day moving average:
Looking at the chart above, PWB's low point in its 52 week range is $51.32 per share, with $73.48 as the 52 week high point — that compares with a last trade of $71.61. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 PWB, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, Danaher Corp (Symbol: DHR) is off about 1.1%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the PWB Holdings page » The chart below shows the one year price performance of PWB, versus its 200 day moving average: Looking at the chart above, PWB's low point in its 52 week range is $51.32 per share, with $73.48 as the 52 week high point — that compares with a last trade of $71.61. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of PWB, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, Danaher Corp (Symbol: DHR) is off about 1.1%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. For a complete list of holdings, visit the PWB Holdings page » The chart below shows the one year price performance of PWB, versus its 200 day moving average: Looking at the chart above, PWB's low point in its 52 week range is $51.32 per share, with $73.48 as the 52 week high point — that compares with a last trade of $71.61. 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 PWB, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, Danaher Corp (Symbol: DHR) is off about 1.1%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco Dynamic Large Cap Growth ETF (Symbol: PWB) where we have detected an approximate $228.8 million dollar outflow -- that's a 23.4% decrease week over week (from 13,660,000 to 10,460,000). For a complete list of holdings, visit the PWB Holdings page » The chart below shows the one year price performance of PWB, versus its 200 day moving average: Looking at the chart above, PWB's low point in its 52 week range is $51.32 per share, with $73.48 as the 52 week high point — that compares with a last trade of $71.61. | Among the largest underlying components of PWB, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is trading flat, Danaher Corp (Symbol: DHR) is off about 1.1%, and Abbott Laboratories (Symbol: ABT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco Dynamic Large Cap Growth ETF (Symbol: PWB) where we have detected an approximate $228.8 million dollar outflow -- that's a 23.4% decrease week over week (from 13,660,000 to 10,460,000). For a complete list of holdings, visit the PWB Holdings page » The chart below shows the one year price performance of PWB, versus its 200 day moving average: Looking at the chart above, PWB's low point in its 52 week range is $51.32 per share, with $73.48 as the 52 week high point — that compares with a last trade of $71.61. |
32094.0 | 2021-06-13 00:00:00 UTC | 3 Health Care Stocks To Watch Right Now | ABT | https://www.nasdaq.com/articles/3-health-care-stocks-to-watch-right-now-2021-06-13 | nan | nan | Are These The Best Health Care Stocks To Buy This Week?
As the world continues to deal with the global coronavirus pandemic, investors could still be eyeing health care stocks. While they may not be the most active stocks in the stock market today, health care stocks would be a safe haven for some. After all, investors are likely dealing with the market volatility caused by meme stocks to some extent now. For those looking to make more defensive plays, some would argue that the health care industry is a viable bet.
Regardless, the industry remains one of, if not the most important sectors of business and research globally today. Notably, health care companies are in the business of improving our general quality of life. Given the plethora of diseases and conditions we face today, there remains plenty of room for health care players to innovate and serve. Accordingly, investors prioritizing long-term growth potential may be looking at the top health care stocks in the stock market now.
Evidently, it appears that even tech companies are well aware of the health care industry’s merits. Earlier this week, tech giant Amazon (NASDAQ: AMZN) provided another update on its telehealth service, Amazon Care. Namely, Amazon Care is currently working to enlist several companies to supplement its virtual health care services now. Elsewhere, Johnson & Johnson (NYSE: JNJ) CEO Alex Gorsky recently set the stage for coronavirus vaccines moving forward. According to Gorsky, we may have to receive coronavirus booster shots together with flu shots for the next few years. In theory, this would mean that the top coronavirus stocks could still have room to run moving forward as well. Given all of this, here are three top health care stocks making headlines now.
Top Health Care Stocks To Watch In June
AbbVie Inc. (NYSE: ABBV)
Moderna Inc. (NASDAQ: MRNA)
Clover Health Investments Corporation (NASDAQ: CLOV)
AbbVie Inc.
Right off the bat, we will be looking at AbbVie Inc. For the uninitiated, the Illinois-based company is a major player in the biopharmaceutical industry now. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. Now, the company’s developmental pipeline consists of potential treatments across numerous key therapeutic areas. These include but are not limited to immunology, oncology, virology, and eye care. For a sense of scale, AbbVie is currently evaluating over 20 investigational cancer medicines in over 300 clinical trials globally.
Now, ABBV stock would be in investors’ sights as the company continues to make tremendous breakthroughs. Just this month, AbbVie continues to see significant results in its cancer and arthritis portfolios. For starters, the company’s Chronic Lymphocytic Leukemia (CLL) treatment, VENCLEXTA, continues to perform. Earlier today, AbbVie announced that a four-year analysis of the drug showed longer progression-free survival (PFS) and higher rates of undetectable minimal residual disease. Overall, the company saw that a majority of CLL patients treated with its drug have and continue to remain without relapse three years after.
If that wasn’t enough, AbbVie also provided another positive update in its other CLL drug candidate, ibrutinib, on June 4. According to the company, the drug exhibits the potential to achieve extended PFS and overall survival “when used as a first-line therapy”. Danelle James, the development lead on the drug said, “These latest data from the RESONATE-2 study further reinforce IMBRUVICA as a standard of care that can help patients live longer without chemotherapy.” Because of all this, would you say that all this mark exciting times ahead for ABBV stock now?
Source: TD Ameritrade TOS
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Moderna Inc.
Next up, we have coronavirus vaccine superstar Moderna Inc. Indeed, this biotech company would be a household name now given its role in fighting the current pandemic. The company’s products serve to boost the human immune system using modified messenger RNAs. Given Moderna’s lead in the vaccine market, investors looking to bet on coronavirus stocks would turn to MRNA stock now. As it stands, the company’s shares are currently sitting on massive gains of over 250% in the past year. While it remains a key player in the fight to vaccinate the world, could it have more room to grow?
If anything, Moderna is not resting on its laurels in the least bit. To begin with, the company is now seeking FDA approval for its COVID-19 vaccine to be administered to teens. Yesterday, Moderna cited the significantly positive results from its previous study which included over 3,700 adolescents aged 12 to 17. According to the company, zero positive cases were detected from the treatment group that received two doses of its vaccine.
In theory, this would suggest a 100% efficacy rate for the current target age group. Now, Moderna appears confident of its current findings. So much so that it is also currently filing for authorization with Health Canada and the European Medicines Agency. While the U.S. may be a frontrunner in terms of vaccination rates, many parts of the globe are still behind. Seeing as the potential applications for Moderna’s vaccine continues to grow, the company could be looking at busy times ahead. By extension, some would argue that MRNA stock could be in the same position. All in all, would you consider adding it to your portfolio now?
Source: TD Ameritrade TOS
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Clover Health Investments Corporation
Another health care company that is in the spotlight now would be Clover Health Investments Corporation (CLOV). Now, for those keeping up with the recentstock market news CLOV stock was a meme stock. At one point, the company’s shares doubled in value during intraday trading on Tuesday this week. Since then, however, the stock has dipped by 35%. Before dismissing the company, investors may want to take a closer look at its operations. In brief, CLOV operates as a Medicare Advantage insurer. It does so via its proprietary software platform, the Clover Assistant. With the current emphasis on health, especially amongst the elderly, Clover’s services would be in demand.
On one hand, the company provides America’s seniors with affordable health care plans. On the other hand, CLOV also aids physicians on the big-data front. The company can do so via its data-driven personalized insights, courtesy of its platform as well. With its current offerings, the company is looking to improve clinical decision-making and outcomes. As such, investors looking to bet on the health care industry, in general, would be turning to CLOV stock now.
While CLOV stock may be winding down from its meme stock frenzy, the company is not sitting idly by. At the moment, CLOV is planning to scale its in-home primary care program, Clover Home Care (CHC). Specifically, it will be doing so via the U.S. Centers for Medicare and Medicaid Services’ new Direct Contracting model. According to CLOV, this would serve to make the Medicare program more financially sustainable for clients while enhancing care and outcomes. With the company seemingly firing on all cylinders now, will you be investing in CLOV stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. Given the plethora of diseases and conditions we face today, there remains plenty of room for health care players to innovate and serve. Earlier today, AbbVie announced that a four-year analysis of the drug showed longer progression-free survival (PFS) and higher rates of undetectable minimal residual disease. | Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. As the world continues to deal with the global coronavirus pandemic, investors could still be eyeing health care stocks. Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. | Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. While they may not be the most active stocks in the stock market today, health care stocks would be a safe haven for some. Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. | Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. While they may not be the most active stocks in the stock market today, health care stocks would be a safe haven for some. Top Health Care Stocks To Watch In June AbbVie Inc. (NYSE: ABBV) Moderna Inc. (NASDAQ: MRNA) Clover Health Investments Corporation (NASDAQ: CLOV) AbbVie Inc. |
32095.0 | 2021-06-13 00:00:00 UTC | Lower Testing Shouldn’t Lower Quidel | ABT | https://www.nasdaq.com/articles/lower-testing-shouldnt-lower-quidel-2021-06-13 | nan | nan | When determining winners and losers in the 2020-2021 stock market, it is important not to overlook the companies that supply testing kits for COVID-19. The Quidel Corporation (QDEL) manufactures rapid healthcare diagnostic solutions, and received an FDA emergency use authorization for its antigen tests in early May 2020. (See QDEL stock analysis on TipRanks)
Andrew Cooper of Raymond James Financial reported on the stock, stating that although COVID-19 is waning, the company can still stand to profit and see increased investor interest. Cooper reiterated a Buy rating and assigned a price target of $160. This reflects a potential upside of 39.41% from the stock’s Friday closing price.
Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. Additionally, he hypothesized that even before Abbott’s announcement, the information was already baked into Quidel’s share price.
Due to Quidel’s lower base reach, Cooper expects to see quarter-over-quarter growth for Quidel’s Quickvue antigen test, and is anticipating news on a large employer contract which could impact his model. Securing contracts for school testing could also be a boon for the company, and multiyear deals will provide consistent customers and less overall uncertainty.
Cooper opined that QDEL is currently trading “below the value of the base business alone,” and that the company should be worth more.
On TipRanks, Quidel is a Moderate Buy, based on 3 Buy and 1 Sell ratings. The average analyst QDEL price target is $126.67, representing a potential 12-month upside of 10.37%.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. When determining winners and losers in the 2020-2021 stock market, it is important not to overlook the companies that supply testing kits for COVID-19. The Quidel Corporation (QDEL) manufactures rapid healthcare diagnostic solutions, and received an FDA emergency use authorization for its antigen tests in early May 2020. | Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. (See QDEL stock analysis on TipRanks) Andrew Cooper of Raymond James Financial reported on the stock, stating that although COVID-19 is waning, the company can still stand to profit and see increased investor interest. Due to Quidel’s lower base reach, Cooper expects to see quarter-over-quarter growth for Quidel’s Quickvue antigen test, and is anticipating news on a large employer contract which could impact his model. | Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. (See QDEL stock analysis on TipRanks) Andrew Cooper of Raymond James Financial reported on the stock, stating that although COVID-19 is waning, the company can still stand to profit and see increased investor interest. Due to Quidel’s lower base reach, Cooper expects to see quarter-over-quarter growth for Quidel’s Quickvue antigen test, and is anticipating news on a large employer contract which could impact his model. | Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. When determining winners and losers in the 2020-2021 stock market, it is important not to overlook the companies that supply testing kits for COVID-19. The average analyst QDEL price target is $126.67, representing a potential 12-month upside of 10.37%. |
32096.0 | 2021-06-12 00:00:00 UTC | What Should Investors Make of Abbott's Reduced Full-Year Guidance? | ABT | https://www.nasdaq.com/articles/what-should-investors-make-of-abbotts-reduced-full-year-guidance-2021-06-12 | nan | nan | COVID-19 testing ain't what it used to be. That's abundantly clear after healthcare giant Abbott Laboratories (NYSE: ABT) lowered its full-year guidance because COVID-19 testing volumes won't be as strong as initially expected. In this Motley Fool Live video recorded on June 2, Motley Fool contributors Keith Speights and Brian Orelli talk about what investors should make of Abbott's reduced guidance.
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Keith Speights: Abbott, ticker there is ABT, had some other news that wasn't so good. Abbott is a big medical device company, big diagnostic test maker. The company recently came out and predicted that its revenue from COVID-19 testing will be significantly less than what it had previously thought, and Abbott lowered its guidance. Brian, what are your thoughts on this move from Abbott?
Brian Orelli: Yeah, there were pretty substantial moves down from just its prediction at the end of the first quarter to just a couple of months ago. That they were looking for GAAP earnings of at least $3.74 per share, and now they are looking for $2.75 to $2.95 per share, so down substantially. On the adjusted side, they were looking for earnings of at least $5 per share, and now they're down to $4.30 to $4.50 a share. That's still a double-digit growth over 2020. But I do know that's for the adjusted earnings where sold double-digit growth, but I did know that they increased the extra items.
They were expecting $1.26 per share in extra items and that's increased to $1.55 per share. The GAAP earnings dropped substantially more than the adjusted earnings, and that was because they increased the amount of the total that they're expecting in extra items and they didn't break out the individual components of the extra--. They listed them all but they didn't break them out individually to say how much where the extra that's coming from so it's a little hard to tell there. I think this is a double edged sword with the large diversified company like Abbott.
They're not completely dependent on their new COVID-19 testing. I don't know who said that, but that was the reason why the earnings dropped so much. It was because they're now not expecting as much COVID-19 testing as they were expecting before. That's a good part, is that they're not completely dependent on the COVID-19 testing and they are still able to get a double-digit growth over 2020. But the bad news is that it's really hard for investors to know how much is tied up in the guidance. Because there's so many different moving parts, you can't really tell whether their guidance is super accurate.
It's surprising that so many other companies have come out and said that they see lower testing for COVID-19, so it's surprising that Abbott was so bullish at the end of the first quarter when they did the first-quarter earnings, and now we're seeing the writing on the walls.
Speights: Brian, that's exactly what I was going to say, is that I was actually more surprised that Abbott initially had the pretty bullish outlook for COVID-19 testing. I was more surprised by that than I was that they ended up coming out and lowering their guidance.
Orelli: I think the peak of testing was in January. That means that gave them four months before they gave their first-quarter guidance to see the general declining sales. Maybe it's hard for them to tell because maybe the inventory was going down, and so maybe they couldn't actually tell that it was their tests that were having the problems. But they could see that the general trend in the amount of testing overall, they should have seen that as declining.
Speights: Maybe Abbott was counting on more growth from its BinaxNow product, which is now distributed in pharmacies. You can take it home and test yourself basically. Maybe they were counting on that to bolster their sales. But you and I have talked probably two months ago, you and I were talking about the huge downturn and number of COVID-19 tests in the U.S.
Orelli: Yeah. Quidel, I think came out and said that they were expecting lower guidance. What's the other big one, the other big test maker that came out? They had pretty good first-quarter results, but their guidance for the rest of the year wasn't nearly as good.
Speights: Yeah. But again, Abbott has a lot of other things going for it. Like you said, Brian, it absolutely isn't solely dependent on COVID-19 testing. The company has been around for a long time and it still has plenty of other growth drivers.
Orelli: If we do have a strong flu season that we talked about in the last segment, I think that could definitely help Abbott substantially because what will happen is people get tested for both the flu and COVID-19 because symptoms are so similar, and so that'll boost revenue there.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Quidel. 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. | That's abundantly clear after healthcare giant Abbott Laboratories (NYSE: ABT) lowered its full-year guidance because COVID-19 testing volumes won't be as strong as initially expected. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: Abbott, ticker there is ABT, had some other news that wasn't so good. The company recently came out and predicted that its revenue from COVID-19 testing will be significantly less than what it had previously thought, and Abbott lowered its guidance. | That's abundantly clear after healthcare giant Abbott Laboratories (NYSE: ABT) lowered its full-year guidance because COVID-19 testing volumes won't be as strong as initially expected. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: Abbott, ticker there is ABT, had some other news that wasn't so good. In this Motley Fool Live video recorded on June 2, Motley Fool contributors Keith Speights and Brian Orelli talk about what investors should make of Abbott's reduced guidance. | That's abundantly clear after healthcare giant Abbott Laboratories (NYSE: ABT) lowered its full-year guidance because COVID-19 testing volumes won't be as strong as initially expected. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: Abbott, ticker there is ABT, had some other news that wasn't so good. In this Motley Fool Live video recorded on June 2, Motley Fool contributors Keith Speights and Brian Orelli talk about what investors should make of Abbott's reduced guidance. | See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights: Abbott, ticker there is ABT, had some other news that wasn't so good. That's abundantly clear after healthcare giant Abbott Laboratories (NYSE: ABT) lowered its full-year guidance because COVID-19 testing volumes won't be as strong as initially expected. The GAAP earnings dropped substantially more than the adjusted earnings, and that was because they increased the amount of the total that they're expecting in extra items and they didn't break out the individual components of the extra--. |
32097.0 | 2021-06-11 00:00:00 UTC | Daily Dividend Report: ABT,AMAT,PM,CL,ODC | ABT | https://www.nasdaq.com/articles/daily-dividend-report%3A-abtamatpmclodc-2021-06-11 | nan | nan | The board of directors of Abbott today declared a quarterly common dividend of 45 cents per share. This marks the 390th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Aug. 16, 2021, to shareholders of record at the close of business on July 15, 2021. Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
Applied Materials today announced that its Board of Directors has approved a quarterly cash dividend of $0.24 per share payable on the company's common stock. The dividend is payable on Sept. 16, 2021 to shareholders of record as of Aug. 26, 2021.
The Board of Directors of Philip Morris International today authorized a new share repurchase program of up to $7 billion, with target spending of $5 to $7 billion over a three-year period expected to commence after the company's second-quarter 2021 earnings call. The Board of Directors also declared a regular quarterly dividend of $1.20 per common share, payable on July 12, 2021, to shareholders of record as of June 25, 2021. The ex-dividend date is June 24, 2021.
The Board of Directors of Colgate-Palmolive today declared a quarterly cash dividend of $0.45 per common share, payable on August 16, 2021 to shareholders of record as of July 21, 2021. The Company has paid uninterrupted dividends on its common stock since 1895.
Oil-Dri's Board of Directors declared quarterly cash dividends of $0.27 per share of the Company's Common Stock and $0.2025 per share of the Company's Class B Stock, an approximate 4% increase for both classes of stock. The dividends declared on June 9, 2021 will be payable on August 27, 2021 to stockholders of record at the close of business on August 13, 2021. The Company has paid cash dividends continuously since 1974. This declaration marks the eighteenth consecutive year Oil-Dri has increased dividends.
VIDEO: Daily Dividend Report: ABT,AMAT,PM,CL,ODC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: ABT,AMAT,PM,CL,ODC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Applied Materials today announced that its Board of Directors has approved a quarterly cash dividend of $0.24 per share payable on the company's common stock. The Board of Directors also declared a regular quarterly dividend of $1.20 per common share, payable on July 12, 2021, to shareholders of record as of June 25, 2021. | VIDEO: Daily Dividend Report: ABT,AMAT,PM,CL,ODC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors also declared a regular quarterly dividend of $1.20 per common share, payable on July 12, 2021, to shareholders of record as of June 25, 2021. The Board of Directors of Colgate-Palmolive today declared a quarterly cash dividend of $0.45 per common share, payable on August 16, 2021 to shareholders of record as of July 21, 2021. | VIDEO: Daily Dividend Report: ABT,AMAT,PM,CL,ODC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years. The Board of Directors of Colgate-Palmolive today declared a quarterly cash dividend of $0.45 per common share, payable on August 16, 2021 to shareholders of record as of July 21, 2021. | VIDEO: Daily Dividend Report: ABT,AMAT,PM,CL,ODC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The board of directors of Abbott today declared a quarterly common dividend of 45 cents per share. The Board of Directors also declared a regular quarterly dividend of $1.20 per common share, payable on July 12, 2021, to shareholders of record as of June 25, 2021. |
32098.0 | 2021-06-09 00:00:00 UTC | 2 High-Yield Dividend Stocks for 2021 | ABT | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-for-2021-2021-06-09 | nan | nan | John D. Rockefeller once said, "Do you know the only thing that gives me pleasure? It's to see my dividends coming in." But not all dividends are created equal. High-yielding dividend stocks may not always be a safe investment, as an unusually high yield might signal a company in trouble or an impending dividend cut.
Still, there are a few safe and attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). These stocks are capable of returning significant income to shareholders while offering reliable payouts, so you don't have to worry about whether you'll receive a check every quarter.
Here's why you might consider picking these high-quality, high-yield dividend stocks to add to your portfolio.
Image source: Getty Images.
1. AbbVie
AbbVie arrived on the scene back in 2013 after being spun off from Abbott Laboratories. The company brought in lots of profits very early, mainly from its blockbuster immunosuppressant, Humira. Humira did more than $19 billion in 2020 revenue and was able to bring in $3.9 billion in the first quarter of 2021. But all good things come to an end, and so is Humira's patent protection; it has already gone off-patent in Europe and, just recently, Canada. Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe.
The short answer is yes. Beyond Humira, AbbVie has a whole host of products in its portfolio that will keep revenue steady: Skyrizi (for plaque psoriasis), Rinvoq (for rheumatoid arthritis), Imbruvica (for lymphoma), and Venclexta (for leukemia). The company sees lots of potential in Skyrizi and Rinvoq, whose 2020 sales were up by 91% and 600%, respectively, from the year before. Imbruvica and Venclexta sales rose by 9.8% and 46%, respectively, as well. CEO Rick Gonzalez informed investors during the fourth-quarter conference call that revenue from both Skyrizi and Rinvoq should double in 2021, saying that by 2025, they expect the drugs to pull in a combined $15 billion in annual revenue. Imbruvica and Venclexta are expected to bring in $5.7 billion and $1.8 billion in 2021, respectively, with management expecting future growth in the double digits, driven by more illnesses that these drugs will be able to treat.
Skyrizi and Rinvoq combined to bring in about $2.3 billion in sales for 2020, only 14% of the $16 billion Humira notched for the year. Imbruvica and Venxeleta were able to bring in $5.1 billion for the year, meaning that these four drugs combined were able to make 46% of Humira's 2020 revenue. Given management's predictions, that number could increase to $22 billion by 2025. This will more than make up for the $16 billion Humira brought in during 2020, helping the company financially as one of the best-selling drugs in history goes off-patent.
With a plan in place to cover the revenue gap that is going to be left by Humira, AbbVie's dividend should look a lot safer to investors. AbbVie currently offers a 4.6% yield, which has been growing at a spectacular rate. Over the past five years, AbbVie's dividend is up 18.09%, tremendously outperforming the 5.84% seen by the sector overall. Even though it's only been around for eight years, AbbVie is a Dividend Aristocrat -- its time as part of Abbott Labs counts toward its consistently increasing payouts for more than 25 years. Investors interested in a fantastically high yield and a long and reliable history of dividend payments should consider a place for AbbVie in their portfolio.
2. Pfizer
While much older than AbbVie, Pfizer has not lost its step. The 172-year-old business is hard at work, most recently completing a successful COVID-19 vaccine as a joint venture with German partner BioNTech.
The company has been thriving financially, as sales from the vaccine and its key drugs are both doing well. Just in the first quarter of 2021, Pfizer made $3.46 billion from its COVID-19 vaccine. In the Q1 earnings report, management noted that revenues from the COVID-19 vaccine could be about $26 billion for the entire 2021 fiscal year.
As mentioned, the vaccine isn't the only bright spot for Pfizer; growth from its key drugs is very encouraging, too. Certain of those -- including Eliquis (an anticoagulant), Vyndamax (for heart issues) , and Xeljanz (for rheumatoid arthritis) -- saw sales rise by 25%, 88%, and 18% year-over-year respectively in Q1. These three drugs combined brought in more than $2.5 billion for Pfizer in just the first quarter. The company expects to make $70 billion in 2021, a 73% increase from the $41 billion brought in during 2020.
Despite all the success Pfizer has experienced over the past few months, the stock remains one of the better deals for investors looking for income in this market. Currently offering a 4% dividend yield, the company recently gave investors a small raise for 2021, lifting its dividend by 3% in December 2020. Pfizer is currently paying out 42% of its earnings. This is a safe payout ratio, offering investors reliable dividend payments as well as a high yield. With the U.S Treasury offering 1.56% to invest in 10-year treasury bonds, Pfizer's yield of 4% is more than double that, making the stock attractive for investors looking to investments to provide more current income.
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Anirudh Shankar owns shares of AbbVie and Pfizer. 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. | These stocks are capable of returning significant income to shareholders while offering reliable payouts, so you don't have to worry about whether you'll receive a check every quarter. Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe. Beyond Humira, AbbVie has a whole host of products in its portfolio that will keep revenue steady: Skyrizi (for plaque psoriasis), Rinvoq (for rheumatoid arthritis), Imbruvica (for lymphoma), and Venclexta (for leukemia). | Imbruvica and Venclexta are expected to bring in $5.7 billion and $1.8 billion in 2021, respectively, with management expecting future growth in the double digits, driven by more illnesses that these drugs will be able to treat. The company expects to make $70 billion in 2021, a 73% increase from the $41 billion brought in during 2020. This is a safe payout ratio, offering investors reliable dividend payments as well as a high yield. | High-yielding dividend stocks may not always be a safe investment, as an unusually high yield might signal a company in trouble or an impending dividend cut. Humira will lose patent protection here in the U.S in 2023, and given the drug's superstar status, investors might be concerned about whether AbbVie can sustain revenues and if the dividend is safe. Skyrizi and Rinvoq combined to bring in about $2.3 billion in sales for 2020, only 14% of the $16 billion Humira notched for the year. | High-yielding dividend stocks may not always be a safe investment, as an unusually high yield might signal a company in trouble or an impending dividend cut. Humira did more than $19 billion in 2020 revenue and was able to bring in $3.9 billion in the first quarter of 2021. Even though it's only been around for eight years, AbbVie is a Dividend Aristocrat -- its time as part of Abbott Labs counts toward its consistently increasing payouts for more than 25 years. |
32099.0 | 2021-06-09 00:00:00 UTC | Is Abbott Laboratories a Buy on the Dip? | ABT | https://www.nasdaq.com/articles/is-abbott-laboratories-a-buy-on-the-dip-2021-06-09 | nan | nan | Shares of top healthcare stock Abbott Laboratories (NYSE: ABT) are down 8% over the past month while the S&P 500 has been relatively steady, up by less than 1% during that period. That's because the company recently lowered its guidance for the year, which led to investors selling off the stock in early June.
However, the business still has strong fundamentals and pays a decent dividend. Should investors considering adding Abbott's stock to their portfolios now that it is trading at a lower price, or is it likely headed for more of a decline? Let's take a look at its updated valuation and determine whether it is still a good buy today.
Image source: Getty Images.
Why did Abbott reduce its earnings forecast?
On June 1, the healthcare company announced it was updating its projections for the current year as it was seeing a steep decline in demand for COVID-19 testing. A big part of the reason is that more than half of Americans have received at least one dose of a vaccine thus far, and in 12 states the percentage is as high as 70%. With fewer concerns surrounding COVID-19, it's not surprising to see the demand for testing hasn't been as strong. Abbott anticipates this trend will continue throughout the year.
The company's CEO Robert B. Ford notes that business outside of COVID-19 "is accelerating." However, that wasn't enough for Abbott to avoid lowering its diluted earnings per share (EPS) forecast to a range between $2.75 and $2.95 -- previously it was expecting that number to be $3.74 or better.
What does this do to its valuation?
With a reduction in earnings, investors adjust how much they are willing to pay for the stock, which is why shares of Abbott tanked on the news. The stock fell to $105.79 on June 1 (down 9.3%). The last time it closed lower than that was on Oct. 30, 2020 when it finished trading at $105.11. Today, with its share price around $109, Abbott's stock is trading at a future price-to-earnings (P/E) ratio of 38 with the updated guidance. Under the previous forecast, that multiple would be just 29.
Even the lower multiple would still look steep compared to some other top healthcare stocks.
LLY PE Ratio (Forward) data by YCharts
Typically, for healthcare stocks to trade at hefty earnings multiples (in the neighborhood of 30 or better), investors expect them to generate strong growth numbers. And while Abbott has been performing well, if you take out the impact of COVID-19 testing, they aren't all that amazing. In its first-quarter results for the period ending March 31, outside of its diagnostics business (which grew at a rate of 120%), the only segment that generated more than 10% sales growth was medical devices (13%). Its nutrition and pharmaceutical-related sales were up by just 6.9% and 2.5%, respectively.
Should you buy shares of Abbott today?
Abbott is a good long-term investment to hang on to. It yields 1.49%, which is better than the S&P 500 average of less than 1.4%. And the business is still performing well. Even at the low end of its earnings forecast, EPS of $2.75 is still better than what it posted in 2020 -- 2.50.
But investors are right to be worried about what a full year might look like without COVID-19 testing giving Abbott's numbers a boost. And with the stock trading at such a high multiple of earnings, I wouldn't be surprised to see Abbott's stock fall further down as the year goes on and investors shift to stocks that will benefit as a result of the economy opening back up. Although it remains a good long-term buy, there are better options out there for investors which have much better growth prospects than Abbott. But if you are inclined to buy the stock, it may be a good option to simply wait for more of a drop in price.
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*Stock Advisor returns as of May 11, 2021
David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of top healthcare stock Abbott Laboratories (NYSE: ABT) are down 8% over the past month while the S&P 500 has been relatively steady, up by less than 1% during that period. However, that wasn't enough for Abbott to avoid lowering its diluted earnings per share (EPS) forecast to a range between $2.75 and $2.95 -- previously it was expecting that number to be $3.74 or better. LLY PE Ratio (Forward) data by YCharts Typically, for healthcare stocks to trade at hefty earnings multiples (in the neighborhood of 30 or better), investors expect them to generate strong growth numbers. | Shares of top healthcare stock Abbott Laboratories (NYSE: ABT) are down 8% over the past month while the S&P 500 has been relatively steady, up by less than 1% during that period. LLY PE Ratio (Forward) data by YCharts Typically, for healthcare stocks to trade at hefty earnings multiples (in the neighborhood of 30 or better), investors expect them to generate strong growth numbers. And with the stock trading at such a high multiple of earnings, I wouldn't be surprised to see Abbott's stock fall further down as the year goes on and investors shift to stocks that will benefit as a result of the economy opening back up. | Shares of top healthcare stock Abbott Laboratories (NYSE: ABT) are down 8% over the past month while the S&P 500 has been relatively steady, up by less than 1% during that period. And with the stock trading at such a high multiple of earnings, I wouldn't be surprised to see Abbott's stock fall further down as the year goes on and investors shift to stocks that will benefit as a result of the economy opening back up. 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Shares of top healthcare stock Abbott Laboratories (NYSE: ABT) are down 8% over the past month while the S&P 500 has been relatively steady, up by less than 1% during that period. Let's take a look at its updated valuation and determine whether it is still a good buy today. And the business is still performing well. |
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