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32100.0 | 2021-06-08 00:00:00 UTC | Here's Why We Believe Quidel Stock Is Undervalued | ABT | https://www.nasdaq.com/articles/heres-why-we-believe-quidel-stock-is-undervalued-2021-06-08 | nan | nan | We believe that the stock price of Quidel (NASDAQ:QDEL), a clinical genetic testing company, looks undervalued at current levels near $108. QDEL stock is actually up just 22% from levels of around $88 it was at on March 23, 2020, when broader markets made a bottom. This compares to the S&P which has risen 87% over the same period. The underperformance can be attributed to the mounting concerns of a decline in Covid-19 testing demand, given the large scale vaccination programs undertaken by several governments. But now that the stock has seen a large drop (down 33% in the last one year) despite revenue growing 232% y-o-y over the last four quarters, we believe QDEL stock is oversold, and it will likely see a rebound in the near term. Our dashboard ‘Buy Or Fear Quidel Stock‘ provides the key numbers behind our thinking.
Looking at a longer time period, QDEL stock is up 122% from levels of under $50 seen toward the end of 2018. The rise in the stock price over the last two years or so can be attributed to favorable changes in the company’s EPS. The company’s revenues surged 218% to $1.7 billion in 2020, compared to $0.5 billion in 2018. Much of the growth came in 2020, driven by Covid-19 tests. Quidel’s net margins also expanded 243% to 49% in 2020, compared to 14% in 2018, given the company’s operating expenses grew at a much slower pace, compared to its revenues. The company’s shares outstanding increased 11% over the same period due to share issuances. This means that on a per share basis, the company’s earnings grew a whopping 9x to $19.24 in 2020, compared to $1.95 in 2018.
Despite a stellar growth in EPS, the company’s P/E multiple contracted from levels of over 25x in 2018 to 9x in 2020. Furthermore, given the sharp decline in QDEL stock over the recent months following the increased vaccination rate, the P/E multiple has now plunged to 6x, and we believe that the P/E multiple will likely rise going forward.
Outlook
Quidel has seen strong growth in 2020, primarily due to a very high demand for Covid-19 testing. The company’s Sofia and QuickVue antigen tests have already secured the emergency use authorization by the U.S. FDA, while its Lyra test is still pending for the regulatory approval. These tests have helped Quidel’s sales skyrocket in 2020, and this trend continued in Q1 2021, as well. Quidel reported a 2x jump in revenues in Q1, while its EPS surged 4x to $4.09, compared to $0.93 in the prior year quarter.
Given the kind of numbers the company has reported, the stock should have been skyrocketing, but that is not what is really happening. QDEL stock did surge from levels of under $90 to levels of around $250 as recently as end of January 2021. However, the stock plummeted 57% to levels of around $108 now. Why? Because Covid-19 testing led the company’s sales higher and now with several countries working fast on vaccination, the demand for testing is bound to decline. More than 40% of the U.S. population is fully vaccinated, and the numbers will keep getting higher. This essentially means the demand for testing will decline. That said, the keyword being “decline,” as we believe the demand is not going to fade away anytime soon.
There may be negative test report requirement for in-person activities, possibly schools, and for air travel. Quidel’s QuickVue, an at-home Covid-19 test, has already secured the emergency use authorization from the U.S. FDA, and it can address this demand. The company also has QuickVue SARS antigen test to meet the requirement of testing for asymptomatic people. It’s not just 2021, the demand is likely to stay for the next few years. There is no denying that Qudiel’s sales will see a decline as the Covid-19 crisis winds down, and impact its earnings. But is the impact on earnings as big as it has been on its stock? We don’t think so.
The consensus estimates for Quidel EPS indicate an 8% drop in 2021, and roughly a 42% drop (y-o-y) in 2022. Since the stock is being sold based on the decline in future earnings, it is best to look at 2022 figures for QDEL stock. So, at the current levels of $108, QDEL stock is trading at 10x its expected EPS of around $10.55 in 2022. This compares with levels of 16x seen in 2018.
In terms of Covid-19 testing, Quidel can be compared with Abbott, which is trading at 22x its 2022 expected EPS of $4.86. Although Abbott is far more diversified and it has multiple businesses to support its earnings, that does not justify such a large valuation gap in the two companies. Furthermore, Quidel is sitting on a cash balance of close to $1.0 billion, and it does not have any debt. It won’t be surprising if the company were to explore other companies to boost its long-term revenue growth.
Lastly, the average analyst price estimate for QDEL stock is around $173, reflecting a large 60% premium to the current market price of $108, and we also believe that Quidel is significantly undervalued at the current levels.
While QDEL stock looks undervalued, 2020 has also created many pricing discontinuities that can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Mettler 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. | We believe that the stock price of Quidel (NASDAQ:QDEL), a clinical genetic testing company, looks undervalued at current levels near $108. The underperformance can be attributed to the mounting concerns of a decline in Covid-19 testing demand, given the large scale vaccination programs undertaken by several governments. Although Abbott is far more diversified and it has multiple businesses to support its earnings, that does not justify such a large valuation gap in the two companies. | We believe that the stock price of Quidel (NASDAQ:QDEL), a clinical genetic testing company, looks undervalued at current levels near $108. So, at the current levels of $108, QDEL stock is trading at 10x its expected EPS of around $10.55 in 2022. Lastly, the average analyst price estimate for QDEL stock is around $173, reflecting a large 60% premium to the current market price of $108, and we also believe that Quidel is significantly undervalued at the current levels. | We believe that the stock price of Quidel (NASDAQ:QDEL), a clinical genetic testing company, looks undervalued at current levels near $108. Because Covid-19 testing led the company’s sales higher and now with several countries working fast on vaccination, the demand for testing is bound to decline. Lastly, the average analyst price estimate for QDEL stock is around $173, reflecting a large 60% premium to the current market price of $108, and we also believe that Quidel is significantly undervalued at the current levels. | Despite a stellar growth in EPS, the company’s P/E multiple contracted from levels of over 25x in 2018 to 9x in 2020. So, at the current levels of $108, QDEL stock is trading at 10x its expected EPS of around $10.55 in 2022. This compares with levels of 16x seen in 2018. |
32101.0 | 2021-06-07 00:00:00 UTC | How The Parts Add Up: XLG Targets $351 | ABT | https://www.nasdaq.com/articles/how-the-parts-add-up%3A-xlg-targets-%24351-2021-06-07 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500— Top 50 ETF (Symbol: XLG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $351.10 per unit.
With XLG trading at a recent price near $314.56 per unit, that means that analysts see 11.62% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Netflix Inc (Symbol: NFLX), and Abbott Laboratories (Symbol: ABT). Although AMZN has traded at a recent price of $3206.22/share, the average analyst target is 31.94% higher at $4230.14/share. Similarly, NFLX has 21.81% upside from the recent share price of $494.74 if the average analyst target price of $602.63/share is reached, and analysts on average are expecting ABT to reach a target price of $124.50/share, which is 13.92% above the recent price of $109.29. Below is a twelve month price history chart comparing the stock performance of AMZN, NFLX, and ABT:
Combined, AMZN, NFLX, and ABT represent 9.79% of the Invesco S&P 500— Top 50 ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P 500— Top 50 ETF XLG $314.56 $351.10 11.62%
Amazon.com Inc AMZN $3206.22 $4230.14 31.94%
Netflix Inc NFLX $494.74 $602.63 21.81%
Abbott Laboratories ABT $109.29 $124.50 13.92%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of AMZN, NFLX, and ABT: Combined, AMZN, NFLX, and ABT represent 9.79% of the Invesco S&P 500— Top 50 ETF. Invesco S&P 500— Top 50 ETF XLG $314.56 $351.10 11.62% Amazon.com Inc AMZN $3206.22 $4230.14 31.94% Netflix Inc NFLX $494.74 $602.63 21.81% Abbott Laboratories ABT $109.29 $124.50 13.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Netflix Inc (Symbol: NFLX), and Abbott Laboratories (Symbol: ABT). | Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Netflix Inc (Symbol: NFLX), and Abbott Laboratories (Symbol: ABT). Similarly, NFLX has 21.81% upside from the recent share price of $494.74 if the average analyst target price of $602.63/share is reached, and analysts on average are expecting ABT to reach a target price of $124.50/share, which is 13.92% above the recent price of $109.29. Invesco S&P 500— Top 50 ETF XLG $314.56 $351.10 11.62% Amazon.com Inc AMZN $3206.22 $4230.14 31.94% Netflix Inc NFLX $494.74 $602.63 21.81% Abbott Laboratories ABT $109.29 $124.50 13.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, NFLX has 21.81% upside from the recent share price of $494.74 if the average analyst target price of $602.63/share is reached, and analysts on average are expecting ABT to reach a target price of $124.50/share, which is 13.92% above the recent price of $109.29. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Netflix Inc (Symbol: NFLX), and Abbott Laboratories (Symbol: ABT). Below is a twelve month price history chart comparing the stock performance of AMZN, NFLX, and ABT: Combined, AMZN, NFLX, and ABT represent 9.79% of the Invesco S&P 500— Top 50 ETF. | Below is a twelve month price history chart comparing the stock performance of AMZN, NFLX, and ABT: Combined, AMZN, NFLX, and ABT represent 9.79% of the Invesco S&P 500— Top 50 ETF. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Netflix Inc (Symbol: NFLX), and Abbott Laboratories (Symbol: ABT). Similarly, NFLX has 21.81% upside from the recent share price of $494.74 if the average analyst target price of $602.63/share is reached, and analysts on average are expecting ABT to reach a target price of $124.50/share, which is 13.92% above the recent price of $109.29. |
32102.0 | 2021-06-03 00:00:00 UTC | Interesting ABT Put And Call Options For July 23rd | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-july-23rd-2021-06-03 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $108.00 strike price has a current bid of $2.84. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $108.00, but will also collect the premium, putting the cost basis of the shares at $105.16 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $108.59/share today.
Because the $108.00 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 2.63% return on the cash commitment, or 19.20% 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 $108.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $2.68. If an investor was to purchase shares of ABT stock at the current price level of $108.59/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.77% if the stock gets called away at the July 23rd 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 $110.00 strike highlighted in red:
Considering the fact that the $110.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.47% boost of extra return to the investor, or 18.02% 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 $108.59) to be 26%. 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the July 23rd expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new July 23rd 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new July 23rd 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new July 23rd contracts and identified one put and one call contract of particular interest. |
32103.0 | 2021-06-03 00:00:00 UTC | Medtronic stops sale of heart device HVAD System over safety concerns | ABT | https://www.nasdaq.com/articles/medtronic-stops-sale-of-heart-device-hvad-system-over-safety-concerns-2021-06-03 | nan | nan | Adds details on device, Abbott statement
June 3 (Reuters) - Medtronic Plc MDT.N said on Thursday it was stopping the distribution and sale of its heart device HVAD System due to safety concerns.
The decision comes after the company's clinical comparisons showed a higher rate of neurological adverse events with the HVAD System than with other circulatory support devices.
Medtronic earlier informed physicians that the HVAD pump may experience a delay to restart or a failure to restart after it was stopped.
Pump restart failure can potentially worsen a patient's heart condition, lead to a heart attack, require hospitalization and result in death, it said.
The device, which helps the heart pump and increases the amount of blood that flows through the body of patients with advanced heart failure, is currently used by about 4,000 people.
The HVAD System and associated accessory brought in revenue of $141 million in the fiscal year 2021.
Rival medical device maker Abbott ABT.N said in a statement on Thursday it had the capacity and supply to support the growing demand for heart pumps. The company sells the HeartMate 3 heart pumps.
(Reporting by Dania Nadeem in Bengaluru; Editing by Aditya Soni)
((Dania.Nadeem@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Rival medical device maker Abbott ABT.N said in a statement on Thursday it had the capacity and supply to support the growing demand for heart pumps. Adds details on device, Abbott statement June 3 (Reuters) - Medtronic Plc MDT.N said on Thursday it was stopping the distribution and sale of its heart device HVAD System due to safety concerns. The decision comes after the company's clinical comparisons showed a higher rate of neurological adverse events with the HVAD System than with other circulatory support devices. | Rival medical device maker Abbott ABT.N said in a statement on Thursday it had the capacity and supply to support the growing demand for heart pumps. Adds details on device, Abbott statement June 3 (Reuters) - Medtronic Plc MDT.N said on Thursday it was stopping the distribution and sale of its heart device HVAD System due to safety concerns. The decision comes after the company's clinical comparisons showed a higher rate of neurological adverse events with the HVAD System than with other circulatory support devices. | Rival medical device maker Abbott ABT.N said in a statement on Thursday it had the capacity and supply to support the growing demand for heart pumps. Adds details on device, Abbott statement June 3 (Reuters) - Medtronic Plc MDT.N said on Thursday it was stopping the distribution and sale of its heart device HVAD System due to safety concerns. Pump restart failure can potentially worsen a patient's heart condition, lead to a heart attack, require hospitalization and result in death, it said. | Rival medical device maker Abbott ABT.N said in a statement on Thursday it had the capacity and supply to support the growing demand for heart pumps. Adds details on device, Abbott statement June 3 (Reuters) - Medtronic Plc MDT.N said on Thursday it was stopping the distribution and sale of its heart device HVAD System due to safety concerns. The decision comes after the company's clinical comparisons showed a higher rate of neurological adverse events with the HVAD System than with other circulatory support devices. |
32104.0 | 2021-06-03 00:00:00 UTC | This Big Player in the COVID-19 Market Just Lowered Its Forecast. Should You Be Worried? | ABT | https://www.nasdaq.com/articles/this-big-player-in-the-covid-19-market-just-lowered-its-forecast.-should-you-be-worried | nan | nan | Coronavirus-vaccine makers have drawn most of the attention since the start of the pandemic and they've recently started earning revenue from their products. But there are companies that served the coronavirus market much earlier -- and have made billions over the past year. I'm talking about makers of coronavirus tests.
My favorite is Abbott Laboratories (NYSE: ABT). The company has generated more than $6 billion since the start of the pandemic from its COVID-19 diagnostics. But Abbott disappointed investors this week when it lowered its annual forecast.
Now the question is: Should you be worried -- or even avoid shares of this testing giant? Let's take a closer look.
Image source: Getty Images.
Old expectations, new expectations
Initially, Abbott expected to post 2021 earnings per share (EPS) of about $3.74. That's on a GAAP basis. Now it forecasts EPS in the range of $2.75 to $2.95. The company originally predicted adjusted EPS of at least $5, but today, the forecast stands at $4.30 to $4.50.
Here's why: Abbott says recent COVID-19 testing demand has been lower than expected. And it doesn't expect that trend to change moving forward. The company cites a decline in coronavirus cases, an increase in vaccinations, and the latest U.S. testing guidance for vaccinated individuals. Those who've been vaccinated don't require tests in certain situations, according to the Centers for Disease Control and Prevention.
This news may seem grim, but long-term investors shouldn't worry about Abbott's overall prospects. Coronavirus-testing revenue is a big plus for Abbott and helped compensate for declines in its other businesses during the worst of the pandemic. But even if coronavirus testing sales drop significantly -- or entirely at some point in the future -- Abbott's revenue picture is bright.
Prior to the pandemic, Abbott's medical-device business actually contributed the most to total annual revenue. The company separates its work into four businesses. The other three are diagnostics, nutrition, and pharmaceuticals. For the full year 2019, medical devices generated more than $12 billion in revenue. The four business units brought in a total of more than $31 billion.
The pandemic's impact
The pandemic hurt Abbott's ability to grow sales in these core businesses. For instance, some laboratories temporarily closed or postponed certain diagnostic tests, and hospitals worldwide halted nonessential surgeries.
The pandemic isn't over, but many healthcare facilities and labs have returned to normal operations. And we can see the results in Abbott's latest earnings report -- all businesses are growing. Within medical devices, 5 out of 7 specialties posted an increase in sales in the first quarter.
Of course, the ideal situation would be continued growth in COVID-19 testing and a recovery and growth in all business units. We saw that scenario in the first quarter, but a slowdown in coronavirus-testing sales is far from disastrous. What's most important is that Abbott's core businesses have recovered and are growing.
What does this mean for investors?
Abbott shares dropped more than 8% in one trading session after the company lowered its forecast, and I see this as a buying opportunity. The stock now is trading at 33 times trailing-12-month earnings, which is down from more than 60 about six months ago.
ABT PE Ratio data by YCharts.
Over the long term -- with or without COVID-19 testing revenue -- I expect growth from Abbott. Last year, the U.S. Food and Drug Administration cleared the next generation of Abbott's star product, the FreeStyle Libre continuous glucose monitoring system for diabetes. That product and the Libre Sense (a biosensor to measure athletes' glucose levels) generated $829 million in the first quarter. And more than 3 million people worldwide now use the FreeStyle Libre.
Another important thing to note: Abbott isn't relying only on today's top products for future growth. The healthcare company's pipeline "continues to be highly productive," CEO Robert B. Ford said in this week's update. That should help drive sales in the years to come.
Abbott's overall growth story remains intact. And that means the shares have plenty of potential to climb over the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | My favorite is Abbott Laboratories (NYSE: ABT). ABT PE Ratio data by YCharts. For instance, some laboratories temporarily closed or postponed certain diagnostic tests, and hospitals worldwide halted nonessential surgeries. | My favorite is Abbott Laboratories (NYSE: ABT). ABT PE Ratio data by YCharts. Old expectations, new expectations Initially, Abbott expected to post 2021 earnings per share (EPS) of about $3.74. | My favorite is Abbott Laboratories (NYSE: ABT). ABT PE Ratio data by YCharts. The pandemic's impact The pandemic hurt Abbott's ability to grow sales in these core businesses. | My favorite is Abbott Laboratories (NYSE: ABT). ABT PE Ratio data by YCharts. The company has generated more than $6 billion since the start of the pandemic from its COVID-19 diagnostics. |
32105.0 | 2021-06-02 00:00:00 UTC | After A Large Decline Is Quidel A Better Bet Compared To Abbott Stock? | ABT | https://www.nasdaq.com/articles/after-a-large-decline-is-quidel-a-better-bet-compared-to-abbott-stock-2021-06-02 | nan | nan | We think that Quidel (NASDAQ:QDEL) currently is a better pick compared to Abbott (NYSE:ABT). QDEL stock trades at about 3.1x trailing revenues, compared to around 5.6x for Abbott. Does this gap in Quidel’s valuation make sense? To some extent it does, if we look at the future outlook. While both the companies have benefited in the pandemic with a massive demand for Covid-19 testing, QDEL stock is being weighed down due to the concerns over declining sales volume for Covid-19 testing, given the rise in the vaccination rate. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating income and operating margin growth. Our dashboard Abbott vs. Quidel: ABT stock looks overvalued compared to QDEL stock has more details on this. Parts of the analysis are summarized below.
1. Revenue Growth
Between 2017 and 2020, Abbott’s revenues grew by about 26%, from around $27.4 billion to $34.6 billion, primarily led by a strong growth in diagnostics business, which saw its revenue nearly double to $10.8 billion in 2020, compared to $5.6 billion in 2017. Our Abbott Revenues dashboard summarizes the segment-wise breakup of the company’s revenues. Looking at Quidel, total revenue grew a large 6x from $0.3 billion to $1.7 billion over the same period. Much of this growth came in 2020, due to a very high demand for Covid-19 testing. Over the last twelve months, Abbott has seen revenues grow by 16.3%, much lower than the figure of 211% for Quidel.
2. Operating Income
Abbott’s operating income grew 3.4x from $1.6 billion in 2017 to $5.4 billion in 2020, led by revenue growth as well as a large expansion of operating margins from 5.7% to 15.5% over the same period. The margin expansion was primarily driven by slower growth in operating expenses, primarily SG&A, compared to the revenue growth. Looking at Quidel, the operating income grew over 11x from less than $0.1 billion in 2017 to $1.1 billion in 2020, driven by both revenue growth as well as margin expansion. Quidel’s operating margins surged to 64.4% in 2020, compared to just 9.8% in 2017. Over the last twelve months, the operating margin for Abbott grew by 400 bps, compared to 4650 bps Quidel.
The Net of It All
Although Abbott’s revenue base is much larger, Quidel’s revenue as well as margin growth has comparatively been much higher. Although both the companies are benefiting from increased Covid-19 testing, QDEL stock has been weighed down over investors concerns of future sales growth. To some extent this is justified, given that Abbott is far more diversified and when Covid-19 testing declines, Abbott’s other business segments, primarily medical devices, will drive the revenue growth.
But does that mean there is no scope for Quidel’s business? We don’t think so. There is no denying that Quidel will see a decline in sales, as the Covid-19 crisis winds down, but some of the demand for testing will remain over the next few years. There may be negative test report requirement for in-person activities, possibly schools, and for travel. Quidel’s QuickVue, an at-home Covid-19 test, has already secured the emergency use authorization from the U.S. FDA, and it can address this demand. The company also has QuickVue SARS antigen test to meet the requirement of testing for asymptomatic people.
Overall, the company’s revenues and earnings will surely be better than what they were in 2019. Going by consensus estimates, revenues of $1.25 billion in 2022 (marks a 25% y-o-y decline), is still 2.5x that of the 2019 figure. Looking at the bottom line, its adjusted EPS estimate of $10.55 in 2022 is 3.5x the $2.97 figure seen in 2019. But, at the current levels of $121, QDEL stock is up only 63% from the levels of around $75 seen toward the end of 2019.
Now, despite a stellar revenue and margins growth over the recent past, QDEL stock has lost more than half of its value in a matter of months (from over $250 levels in Feb 2021 to $120 now), and we think after this large correction, the difference in P/S multiple of 5.6x for Abbott versus 3.1x for Quidel will likely narrow going forward in favor of the less expensive QDEL stock.
While Quidel appears to be a better investment than Abbott, it is helpful to see how its peers stack up. Abbott Stock Comparison With Peers summarizes how Abbott 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. | We think that Quidel (NASDAQ:QDEL) currently is a better pick compared to Abbott (NYSE:ABT). Our dashboard Abbott vs. Quidel: ABT stock looks overvalued compared to QDEL stock has more details on this. Although both the companies are benefiting from increased Covid-19 testing, QDEL stock has been weighed down over investors concerns of future sales growth. | We think that Quidel (NASDAQ:QDEL) currently is a better pick compared to Abbott (NYSE:ABT). Our dashboard Abbott vs. Quidel: ABT stock looks overvalued compared to QDEL stock has more details on this. Operating Income Abbott’s operating income grew 3.4x from $1.6 billion in 2017 to $5.4 billion in 2020, led by revenue growth as well as a large expansion of operating margins from 5.7% to 15.5% over the same period. | We think that Quidel (NASDAQ:QDEL) currently is a better pick compared to Abbott (NYSE:ABT). Our dashboard Abbott vs. Quidel: ABT stock looks overvalued compared to QDEL stock has more details on this. Revenue Growth Between 2017 and 2020, Abbott’s revenues grew by about 26%, from around $27.4 billion to $34.6 billion, primarily led by a strong growth in diagnostics business, which saw its revenue nearly double to $10.8 billion in 2020, compared to $5.6 billion in 2017. | We think that Quidel (NASDAQ:QDEL) currently is a better pick compared to Abbott (NYSE:ABT). Our dashboard Abbott vs. Quidel: ABT stock looks overvalued compared to QDEL stock has more details on this. Revenue Growth Between 2017 and 2020, Abbott’s revenues grew by about 26%, from around $27.4 billion to $34.6 billion, primarily led by a strong growth in diagnostics business, which saw its revenue nearly double to $10.8 billion in 2020, compared to $5.6 billion in 2017. |
32106.0 | 2021-06-01 00:00:00 UTC | US STOCKS-Dow, S&P 500 rise on optimism about economic recovery | ABT | https://www.nasdaq.com/articles/us-stocks-dow-sp-500-rise-on-optimism-about-economic-recovery-2021-06-01-0 | nan | nan | By Shashank Nayar and Medha Singh
June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record high as investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation.
The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery. The S&P 1500 airlines index <.SPCOMAIR> added 0.8%.
The S&P energy index .SPNY jumped 3.2% on a promising outlook for fuel demand, while financials .SPSYhit a record high and materials .SPLRCMfirmed about 1%. O/R
Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor.
Minneapolis Federal Reserve Bank President Neel Kashkari and Fed vice chair for supervision Randal Quarles reiterated the view that higher prices are transitory.
Stock markets were unperturbed on Friday by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultra-loose monetary policy would remain in place.
Focus will be on key manufacturing and services sector Purchasing Managers' Indexes (PMIs) later in the week to judge the pace of an economic reopening, with the main event of U.S. payrolls due on Friday.
"For now, (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
"The main driver behind the stock market is the reopening of the country ... that's motivating investors to feel a sense of optimism about markets and cause them to come back in and buy stocks with the idea that things will be better by the fall and earnings will improve."
At 11:36 a.m. ET, the Dow Jones Industrial Average .DJI was up 135.83 points, or 0.39%, at 34,665.28 and the S&P 500 .SPX was up 5.66 points, or 0.13%, at 4,209.77. The Nasdaq Composite .IXIC was down 15.64 points, or 0.11%, at 13,733.10.
Abbott Laboratories ABT.N fell 7.8%, weighing the most on the S&P 500, after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand.
Cloudera Inc CLDR.N jumped 24% after private equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private in a $5.3 billion dollar deal.
A group of "meme stocks" extended gains from the previous week with shares of AMC Entertainment Holdings Inc AMC.N up 15.8% after the movie theater chain announced a $230 million capital raise.
Advancing issues outnumbered decliners by a 2.35-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.
The S&P index recorded 61 new 52-week highs and no new low, while the Nasdaq recorded 131 new highs and 17 new lows.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu and Maju Samuel)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
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 fell 7.8%, weighing the most on the S&P 500, after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record high as investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. O/R Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor. | Abbott Laboratories ABT.N fell 7.8%, weighing the most on the S&P 500, after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record high as investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The S&P index recorded 61 new 52-week highs and no new low, while the Nasdaq recorded 131 new highs and 17 new lows. | Abbott Laboratories ABT.N fell 7.8%, weighing the most on the S&P 500, after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record high as investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. "For now, (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey. | Abbott Laboratories ABT.N fell 7.8%, weighing the most on the S&P 500, after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record high as investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery. |
32107.0 | 2021-06-01 00:00:00 UTC | Notable Tuesday Option Activity: BIIB, ABT, OXY | ABT | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-biib-abt-oxy-2021-06-01 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Biogen Inc (Symbol: BIIB), where a total volume of 8,152 contracts has been traded thus far today, a contract volume which is representative of approximately 815,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 81% of BIIB's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $300 strike call option expiring June 04, 2021, with 472 contracts trading so far today, representing approximately 47,200 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $300 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) options are showing a volume of 38,236 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 79% of ABT's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $107 strike put option expiring June 18, 2021, with 3,106 contracts trading so far today, representing approximately 310,600 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $107 strike highlighted in orange:
And Occidental Petroleum Corp (Symbol: OXY) saw options trading volume of 127,821 contracts, representing approximately 12.8 million underlying shares or approximately 75.4% of OXY's average daily trading volume over the past month, of 17.0 million shares. Particularly high volume was seen for the $30 strike call option expiring June 04, 2021, with 23,845 contracts trading so far today, representing approximately 2.4 million underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for BIIB options, ABT options, or OXY options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $107 strike put option expiring June 18, 2021, with 3,106 contracts trading so far today, representing approximately 310,600 underlying shares of ABT. Below is a chart showing BIIB's trailing twelve month trading history, with the $300 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 38,236 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 79% of ABT's average daily trading volume over the past month, of 4.8 million shares. | Below is a chart showing BIIB's trailing twelve month trading history, with the $300 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 38,236 contracts thus far today. Below is a chart showing ABT's trailing twelve month trading history, with the $107 strike highlighted in orange: And Occidental Petroleum Corp (Symbol: OXY) saw options trading volume of 127,821 contracts, representing approximately 12.8 million underlying shares or approximately 75.4% of OXY's average daily trading volume over the past month, of 17.0 million shares. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 79% of ABT's average daily trading volume over the past month, of 4.8 million shares. | Below is a chart showing ABT's trailing twelve month trading history, with the $107 strike highlighted in orange: And Occidental Petroleum Corp (Symbol: OXY) saw options trading volume of 127,821 contracts, representing approximately 12.8 million underlying shares or approximately 75.4% of OXY's average daily trading volume over the past month, of 17.0 million shares. Below is a chart showing BIIB's trailing twelve month trading history, with the $300 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 38,236 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 79% of ABT's average daily trading volume over the past month, of 4.8 million shares. | Particularly high volume was seen for the $107 strike put option expiring June 18, 2021, with 3,106 contracts trading so far today, representing approximately 310,600 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $107 strike highlighted in orange: And Occidental Petroleum Corp (Symbol: OXY) saw options trading volume of 127,821 contracts, representing approximately 12.8 million underlying shares or approximately 75.4% of OXY's average daily trading volume over the past month, of 17.0 million shares. Below is a chart showing BIIB's trailing twelve month trading history, with the $300 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 38,236 contracts thus far today. |
32108.0 | 2021-06-01 00:00:00 UTC | Tuesday Sector Laggards: Healthcare, Utilities | ABT | https://www.nasdaq.com/articles/tuesday-sector-laggards%3A-healthcare-utilities-2021-06-01 | nan | nan | Looking at the sectors faring worst as of midday Tuesday, shares of Healthcare companies are underperforming other sectors, showing a 0.9% loss. Within that group, Abbott Laboratories (Symbol: ABT) and Thermo Fisher Scientific Inc (Symbol: TMO) are two of the day's laggards, showing a loss of 8.2% and 4.7%, respectively. Among healthcare ETFs, one ETF following the sector is the Health Care Select Sector SPDR ETF (Symbol: XLV), which is down 1.4% on the day, and up 7.75% year-to-date. Abbott Laboratories, meanwhile, is down 1.38% year-to-date, and Thermo Fisher Scientific Inc, is down 3.86% year-to-date. Combined, ABT and TMO make up approximately 8.1% of the underlying holdings of XLV.
The next worst performing sector is the Utilities sector, showing a 0.6% loss. Among large Utilities stocks, Eversource Energy (Symbol: ES) and Xcel Energy Inc (Symbol: XEL) are the most notable, showing a loss of 1.3% and 1.3%, respectively. One ETF closely tracking Utilities stocks is the Utilities Select Sector SPDR ETF (XLU), which is down 0.7% in midday trading, and up 3.97% on a year-to-date basis. Eversource Energy, meanwhile, is down 5.98% year-to-date, and Xcel Energy Inc is up 5.65% year-to-date. Combined, ES and XEL make up approximately 7.2% of the underlying holdings of XLU.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, five sectors are up on the day, while four sectors are down.
SECTOR % CHANGE
Energy +4.6%
Materials +1.2%
Financial +0.5%
Industrial +0.3%
Consumer Products +0.2%
Services -0.1%
Technology & Communications -0.2%
Utilities -0.6%
Healthcare -0.9%
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Within that group, Abbott Laboratories (Symbol: ABT) and Thermo Fisher Scientific Inc (Symbol: TMO) are two of the day's laggards, showing a loss of 8.2% and 4.7%, respectively. Combined, ABT and TMO make up approximately 8.1% of the underlying holdings of XLV. Combined, ES and XEL make up approximately 7.2% of the underlying holdings of XLU. | Within that group, Abbott Laboratories (Symbol: ABT) and Thermo Fisher Scientific Inc (Symbol: TMO) are two of the day's laggards, showing a loss of 8.2% and 4.7%, respectively. Combined, ABT and TMO make up approximately 8.1% of the underlying holdings of XLV. Among large Utilities stocks, Eversource Energy (Symbol: ES) and Xcel Energy Inc (Symbol: XEL) are the most notable, showing a loss of 1.3% and 1.3%, respectively. | Within that group, Abbott Laboratories (Symbol: ABT) and Thermo Fisher Scientific Inc (Symbol: TMO) are two of the day's laggards, showing a loss of 8.2% and 4.7%, respectively. Combined, ABT and TMO make up approximately 8.1% of the underlying holdings of XLV. Among healthcare ETFs, one ETF following the sector is the Health Care Select Sector SPDR ETF (Symbol: XLV), which is down 1.4% on the day, and up 7.75% year-to-date. | Within that group, Abbott Laboratories (Symbol: ABT) and Thermo Fisher Scientific Inc (Symbol: TMO) are two of the day's laggards, showing a loss of 8.2% and 4.7%, respectively. Combined, ABT and TMO make up approximately 8.1% of the underlying holdings of XLV. The next worst performing sector is the Utilities sector, showing a 0.6% loss. |
32109.0 | 2021-06-01 00:00:00 UTC | US STOCKS-Dow, S&P 500 rise on optimism about economic recovery | ABT | https://www.nasdaq.com/articles/us-stocks-dow-sp-500-rise-on-optimism-about-economic-recovery-2021-06-01 | nan | nan | By Shashank Nayar and Medha Singh
June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation.
The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery. The S&P 1500 airlines .SPXOMAIR index added 2.7%.
The S&P energy index .SPNY jumped 3.8% on a promising outlook for fuel demand, while financials .SPSY and materials .SPLRCM were up almost 1% each. O/R
Stock markets were unperturbed on Friday by a surge in key inflation readings for April following reassurances from Federal Reserve officials that the ultra-loose monetary policy would remain in place.
Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor.
Focus will be on key manufacturing and services sector Purchasing Managers' Indexes (PMIs) later in the week to judge the pace of an economic reopening, with the main event of U.S. payrolls due on Friday.
"For now, they (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.
"The main driver behind the stock market is the reopening of the country ... that's motivating investors to feel a sense of optimism about markets and cause them to come back in and buy stocks with the idea that things will be better by the fall and earnings will improve."
American Airlines AAL.O, United Airlines UAL.O and Marriott International MAR.O, the travel stocks that stand to perform better as the economy reopens, gained between 1.1%and 2.4%.
At 10:19 a.m. ET, the Dow Jones Industrial Average .DJIwas up 118.64 points, or 0.34%, at 34,648.09 and the S&P 500 .SPXwas up 4.33 points, or 0.10%, at 4,208.44.
The Nasdaq Composite .IXICwas down 26.13 points, or 0.19%, at 13,722.61 as losses in Apple Inc AAPL.O, Microsoft Corp MSFT.O and Netflix Inc NFLX.O weighed.
Cloudera Inc CLDR.N jumped 23.6% after private equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private in a $5.3 billion dollar deal.
A group of "meme stocks" extended gains from the previous week with shares of AMC Entertainment Holdings Inc AMC.N up 14.5% after the movie theater chain announced a $230 million capital raise.
Abbott Laboratories ABT.N fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand.
Advancing issues outnumbered decliners by a 2.47-to-1 ratio on the NYSE and by a 1.36-to-1 ratio on the Nasdaq.
The S&P index recorded 59 new 52-week highs and no new low, while the Nasdaq recorded 114 new highs and 11 new lows.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu and Maju Samuel)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
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 fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. Latest data showed U.S. manufacturing activity picked up in May as pent-up demand amid a reopening economy boosted orders, but unfinished work piled up because of shortages of raw materials and labor. | Abbott Laboratories ABT.N fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The S&P index recorded 59 new 52-week highs and no new low, while the Nasdaq recorded 114 new highs and 11 new lows. | Abbott Laboratories ABT.N fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. "For now, they (investors) are embracing the economic data that shows improvements in the economy and are ignoring data that suggests that it's going to lead to much higher prices and shortages that affect specific companies," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey. | Abbott Laboratories ABT.N fell 6.2% after cutting its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand. By Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 and the Dow rose on Tuesday, with the benchmark S&P 500 within 0.5% of its record highas investors cheered signs of an improving economy ahead of a week packed with major data that is expected to shed more light on the path of inflation. The two indexes are rising for the fourth straight session as investors bet on economically sensitive stocks benefiting the most from a post-COVID-19 recovery. |
32110.0 | 2021-06-01 00:00:00 UTC | Health Care Sector Update for 06/01/2021: ABT,CGC,WEED.TO,VCYT | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-06-01-2021%3A-abtcgcweed.tovcyt-2021-06-01 | nan | nan | Health care stocks were sinking this afternoon, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF also was down 1.6%.
The Nasdaq Biotechnology index was retreating 0.9%.
In company news, Abbott (ABT) dropped 8.5% after cutting its non-GAAP FY21 profit outlook to $4.30 to $4.50 per share, down from its prior forecast expecting around $5.00 per share and trailing the Capital IQ consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items.
Veracyte (VCYT) slid 7.3% after the genomic diagnostics company announced its purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments.
Canopy Growth (CGC) fell 4.4% after Cantor Fitzgerald Tuesday reduced its price target for the Canadian cannabis company by CA$1.50 to CA$30.50 a share and reiterated its neutral rating.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, Abbott (ABT) dropped 8.5% after cutting its non-GAAP FY21 profit outlook to $4.30 to $4.50 per share, down from its prior forecast expecting around $5.00 per share and trailing the Capital IQ consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items. Veracyte (VCYT) slid 7.3% after the genomic diagnostics company announced its purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments. Canopy Growth (CGC) fell 4.4% after Cantor Fitzgerald Tuesday reduced its price target for the Canadian cannabis company by CA$1.50 to CA$30.50 a share and reiterated its neutral rating. | In company news, Abbott (ABT) dropped 8.5% after cutting its non-GAAP FY21 profit outlook to $4.30 to $4.50 per share, down from its prior forecast expecting around $5.00 per share and trailing the Capital IQ consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items. Health care stocks were sinking this afternoon, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF also was down 1.6%. Veracyte (VCYT) slid 7.3% after the genomic diagnostics company announced its purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments. | In company news, Abbott (ABT) dropped 8.5% after cutting its non-GAAP FY21 profit outlook to $4.30 to $4.50 per share, down from its prior forecast expecting around $5.00 per share and trailing the Capital IQ consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items. Health care stocks were sinking this afternoon, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF also was down 1.6%. Veracyte (VCYT) slid 7.3% after the genomic diagnostics company announced its purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments. | In company news, Abbott (ABT) dropped 8.5% after cutting its non-GAAP FY21 profit outlook to $4.30 to $4.50 per share, down from its prior forecast expecting around $5.00 per share and trailing the Capital IQ consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items. Health care stocks were sinking this afternoon, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF also was down 1.6%. The Nasdaq Biotechnology index was retreating 0.9%. |
32111.0 | 2021-06-01 00:00:00 UTC | Health Care Sector Update for 06/01/2021: NUWE,ABT,CGC,WEED.TO,VCYT | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-06-01-2021%3A-nuweabtcgcweed.tovcyt-2021-06-01 | nan | nan | Health care stocks extended Tuesday's retreat in late going, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF (XLV) was down 1.6% shortly before the closing bell.
The Nasdaq Biotechnology index sank 0.8%.
In company news, Nuwellis (NUWE) climbed 9.6% after the medical device company Tuesday said health care products supplier Premier would be making its Aquadex SmartFlow ultra-filtration therapy system available to Premier members at special prices over the next three years.
To the downside, Abbott (ABT) dropped 9.2% after cutting its non-GAAP FY21 profit outlook to a range of $4.30 to $4.50 per share, from $5 per share previously and trailing analyst consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items, based on a Capital IQ survey. Abbott blamed falling demand for COVID-19 tests for the reduced guidance.
Veracyte (VCYT) slid 6.2% after the genomic diagnostics company announced the purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments.
Canopy Growth (CGC) fell 7.3% after the Canadian cannabis company reported a fiscal Q4 net loss of 1.85 Canadian dollars ($1.54) per share, paring its CA$3.72 per share loss during the same quarter last year and missing the analyst consensus for a CA$0.26 per share loss in a Capital IQ poll. Net revenue rose 37.5% year-over-year to CA$148.4 million, also trailing the CA$150 million Street view.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To the downside, Abbott (ABT) dropped 9.2% after cutting its non-GAAP FY21 profit outlook to a range of $4.30 to $4.50 per share, from $5 per share previously and trailing analyst consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items, based on a Capital IQ survey. In company news, Nuwellis (NUWE) climbed 9.6% after the medical device company Tuesday said health care products supplier Premier would be making its Aquadex SmartFlow ultra-filtration therapy system available to Premier members at special prices over the next three years. Canopy Growth (CGC) fell 7.3% after the Canadian cannabis company reported a fiscal Q4 net loss of 1.85 Canadian dollars ($1.54) per share, paring its CA$3.72 per share loss during the same quarter last year and missing the analyst consensus for a CA$0.26 per share loss in a Capital IQ poll. | To the downside, Abbott (ABT) dropped 9.2% after cutting its non-GAAP FY21 profit outlook to a range of $4.30 to $4.50 per share, from $5 per share previously and trailing analyst consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items, based on a Capital IQ survey. In company news, Nuwellis (NUWE) climbed 9.6% after the medical device company Tuesday said health care products supplier Premier would be making its Aquadex SmartFlow ultra-filtration therapy system available to Premier members at special prices over the next three years. Veracyte (VCYT) slid 6.2% after the genomic diagnostics company announced the purchase of privately held cancer diagnostics company HalioDx for 260 million euros ($317.9 million), consisting of 147 million euros in cash and the rest in Veracyte stock, subject to customary adjustments. | To the downside, Abbott (ABT) dropped 9.2% after cutting its non-GAAP FY21 profit outlook to a range of $4.30 to $4.50 per share, from $5 per share previously and trailing analyst consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items, based on a Capital IQ survey. Health care stocks extended Tuesday's retreat in late going, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF (XLV) was down 1.6% shortly before the closing bell. Canopy Growth (CGC) fell 7.3% after the Canadian cannabis company reported a fiscal Q4 net loss of 1.85 Canadian dollars ($1.54) per share, paring its CA$3.72 per share loss during the same quarter last year and missing the analyst consensus for a CA$0.26 per share loss in a Capital IQ poll. | To the downside, Abbott (ABT) dropped 9.2% after cutting its non-GAAP FY21 profit outlook to a range of $4.30 to $4.50 per share, from $5 per share previously and trailing analyst consensus expecting the health care products company to earn $5.04 per share this year, excluding one-time items, based on a Capital IQ survey. Health care stocks extended Tuesday's retreat in late going, with the NYSE Health Care Index falling 1.5% while the SPDR Health Care Select Sector ETF (XLV) was down 1.6% shortly before the closing bell. Canopy Growth (CGC) fell 7.3% after the Canadian cannabis company reported a fiscal Q4 net loss of 1.85 Canadian dollars ($1.54) per share, paring its CA$3.72 per share loss during the same quarter last year and missing the analyst consensus for a CA$0.26 per share loss in a Capital IQ poll. |
32112.0 | 2021-06-01 00:00:00 UTC | US STOCKS-Wall St ends little changed; energy gains, health sags | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-ends-little-changed-energy-gains-health-sags-2021-06-01 | nan | nan | By Lewis Krauskopf, Shashank Nayar and Medha Singh
June 1 (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation.
The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY. The healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N.
Data showed U.S. manufacturing activity picked up in May as pent-up demand in a reopening economy boosted orders. But unfinished work piled up because of shortages of raw materials and labor.
"People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labor and other costs is temporary," Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Unofficially, the Dow Jones Industrial Average .DJI rose 40.14 points, or 0.12%, to 34,569.59, the S&P 500 .SPX lost 2.97 points, or 0.07%, to 4,201.14 and the Nasdaq Composite .IXIC dropped 16.31 points, or 0.12%, to 13,732.43.
Along with financials and energy, the small-cap Russell 2000 .RUT rose sharply on Tuesday, underscoring strength for segments of the stock market expected to do particularly well in an expanding economy.
"The economy certainly is growing and that's a positive, and again it's a positive for the most cyclical parts of the stock market," said Kristina Hooper, chiefglobal marketstrategist at Invesco in New York.
While the S&P 500 remains within about 1% of its record high after four straight months of gains, investors are worried about whether rising inflation could hit equity prices.
Stock markets on Friday brushed off a surge in key inflation readings for April following reassurances from Federal Reserve officials that the central bank's ultra-loose monetary policy would remain in place.
Minneapolis Federal Reserve Bank President Neel Kashkari and Fed Vice Chair for supervision Randal Quarles on Tuesday reiterated the view that higher prices would be transitory.
This week's focus will be on a raft of economic data, culminating with U.S. payrolls due on Friday.
Abbott Labs shares fell after the company cut its full-year 2021 profit forecast, citing expectations for a sharp decline in revenue from its COVID-19 tests as more Americans get vaccinated. Shares of other test makers also fell.
Cloudera Inc CLDR.N shares jumped after private equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private.
A group of "meme stocks" extended gains from the previous week, with shares of AMC Entertainment Holdings Inc AMC.N rising after the movie theater chain said it sold $230 million of its stock.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu, Maju Samuel and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. "People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labor and other costs is temporary," Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. | The healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY. | The healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY. | The healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY. |
32113.0 | 2021-06-01 00:00:00 UTC | S&P 500 Movers: ABT, DVN | ABT | https://www.nasdaq.com/articles/sp-500-movers%3A-abt-dvn-2021-06-01 | nan | nan | In early trading on Tuesday, shares of Devon Energy topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. Year to date, Devon Energy registers a 86.1% gain.
And the worst performing S&P 500 component thus far on the day is Abbott Laboratories, trading down 5.6%. Abbott Laboratories is showing a gain of 0.5% looking at the year to date performance.
Two other components making moves today are The Gap, trading down 4.2%, and Marathon Oil, trading up 10.6% on the day.
VIDEO: S&P 500 Movers: ABT, DVN
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 Movers: ABT, DVN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Devon Energy registers a 86.1% gain. And the worst performing S&P 500 component thus far on the day is Abbott Laboratories, trading down 5.6%. | VIDEO: S&P 500 Movers: ABT, DVN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Devon Energy topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. Year to date, Devon Energy registers a 86.1% gain. | VIDEO: S&P 500 Movers: ABT, DVN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Devon Energy topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. And the worst performing S&P 500 component thus far on the day is Abbott Laboratories, trading down 5.6%. | VIDEO: S&P 500 Movers: ABT, DVN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Devon Energy topped the list of the day's best performing components of the S&P 500 index, trading up 10.8%. And the worst performing S&P 500 component thus far on the day is Abbott Laboratories, trading down 5.6%. |
32114.0 | 2021-06-01 00:00:00 UTC | Abbott Laboratories Slashes FY21 Outlook - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-laboratories-slashes-fy21-outlook-quick-facts-2021-06-01 | nan | nan | (RTTNews) - Providing an update to its financial outlook on Tuesday, Abbott Laboratories (ABT) lowered its earnings and adjusted earnings guidance for the full-year 2021, due to significantly lower recent and projected COVID-19 diagnostic testing demand. The company also issued outlook for the second quarter.
For fiscal 2021, the company now projects earnings from continuing operations in a range of $2.75 to $2.95 per share and adjusted earnings from continuing operations in a range of $4.30 to $4.50 per share, reflecting a double-digit growth from last year.
Previously, the company expected earnings from continuing operations of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflecting a growth of more than 35 percent from last year.
On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. Analysts' estimates typically exclude special items.
For the second quarter, the company expects earnings from continuing operations of at least $0.39 per share and adjusted earnings from continuing operations of at least $1.00 per share. The Street is looking for earnings of $1.23 per share for the quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Providing an update to its financial outlook on Tuesday, Abbott Laboratories (ABT) lowered its earnings and adjusted earnings guidance for the full-year 2021, due to significantly lower recent and projected COVID-19 diagnostic testing demand. For fiscal 2021, the company now projects earnings from continuing operations in a range of $2.75 to $2.95 per share and adjusted earnings from continuing operations in a range of $4.30 to $4.50 per share, reflecting a double-digit growth from last year. On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. | (RTTNews) - Providing an update to its financial outlook on Tuesday, Abbott Laboratories (ABT) lowered its earnings and adjusted earnings guidance for the full-year 2021, due to significantly lower recent and projected COVID-19 diagnostic testing demand. For fiscal 2021, the company now projects earnings from continuing operations in a range of $2.75 to $2.95 per share and adjusted earnings from continuing operations in a range of $4.30 to $4.50 per share, reflecting a double-digit growth from last year. Previously, the company expected earnings from continuing operations of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflecting a growth of more than 35 percent from last year. | (RTTNews) - Providing an update to its financial outlook on Tuesday, Abbott Laboratories (ABT) lowered its earnings and adjusted earnings guidance for the full-year 2021, due to significantly lower recent and projected COVID-19 diagnostic testing demand. For fiscal 2021, the company now projects earnings from continuing operations in a range of $2.75 to $2.95 per share and adjusted earnings from continuing operations in a range of $4.30 to $4.50 per share, reflecting a double-digit growth from last year. Previously, the company expected earnings from continuing operations of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflecting a growth of more than 35 percent from last year. | (RTTNews) - Providing an update to its financial outlook on Tuesday, Abbott Laboratories (ABT) lowered its earnings and adjusted earnings guidance for the full-year 2021, due to significantly lower recent and projected COVID-19 diagnostic testing demand. Previously, the company expected earnings from continuing operations of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflecting a growth of more than 35 percent from last year. For the second quarter, the company expects earnings from continuing operations of at least $0.39 per share and adjusted earnings from continuing operations of at least $1.00 per share. |
32115.0 | 2021-06-01 00:00:00 UTC | Why Abbott Stock Is Tumbling Today | ABT | https://www.nasdaq.com/articles/why-abbott-stock-is-tumbling-today-2021-06-01 | nan | nan | What happened
Shares of Abbott Laboratories (NYSE: ABT) were tumbling 7.5% as of 11:32 a.m. EDT on Tuesday. The decline came after the company announced lower earnings guidance for full year 2021.
Abbott now expects diluted earnings per share (EPS) of between $2.75 and $2.95 based on generally accepted accounting principles (GAAP), compared to its previous outlook of GAAP EPS of at least $3.74. The company projects full-year adjusted EPS of between $4.30 and $4.50. Its previous guidance was for adjusted EPS of at least $5.
Image source: Getty Images.
So what
There's one primary reason behind Abbott's lower guidance: declining levels of COVID-19 testing. The company cited three key factors for this decline:
Significantly fewer COVID-19 cases in the U.S. and other major developed countries.
Increased availability of COVID-19 vaccines globally.
Changes to U.S. guidance on COVID-19 testing for fully vaccinated individuals.
Abbott acknowledged that these factors are positive and "signal an accelerated return to normalcy for many countries." However, the company previously projected stronger COVID-19 testing demand and recognized the need to revise its full-year estimates based on the changing market dynamics.
Now what
Don't think for a second that Abbott is in bad shape because of its revised full-year outlook. The enormous amount of money the company made in a relatively short time from COVID-19 testing allowed it to invest in other areas.
Even with the lower guidance, Abbott still should achieve solid double-digit growth compared to the prior year. Success for other products, notably including its FreeStyle Libre continuous glucose monitoring system, could provide additional catalysts for the healthcare stock in the future.
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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 Abbott Laboratories (NYSE: ABT) were tumbling 7.5% as of 11:32 a.m. EDT on Tuesday. The company cited three key factors for this decline: Significantly fewer COVID-19 cases in the U.S. and other major developed countries. However, the company previously projected stronger COVID-19 testing demand and recognized the need to revise its full-year estimates based on the changing market dynamics. | What happened Shares of Abbott Laboratories (NYSE: ABT) were tumbling 7.5% as of 11:32 a.m. EDT on Tuesday. Abbott now expects diluted earnings per share (EPS) of between $2.75 and $2.95 based on generally accepted accounting principles (GAAP), compared to its previous outlook of GAAP EPS of at least $3.74. The company projects full-year adjusted EPS of between $4.30 and $4.50. | What happened Shares of Abbott Laboratories (NYSE: ABT) were tumbling 7.5% as of 11:32 a.m. EDT on Tuesday. Abbott now expects diluted earnings per share (EPS) of between $2.75 and $2.95 based on generally accepted accounting principles (GAAP), compared to its previous outlook of GAAP EPS of at least $3.74. 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | What happened Shares of Abbott Laboratories (NYSE: ABT) were tumbling 7.5% as of 11:32 a.m. EDT on Tuesday. Its previous guidance was for adjusted EPS of at least $5. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights has no position in any of the stocks mentioned. |
32116.0 | 2021-06-01 00:00:00 UTC | Tuesday's ETF Movers: XOP, IHI | ABT | https://www.nasdaq.com/articles/tuesdays-etf-movers%3A-xop-ihi-2021-06-01 | nan | nan | In trading on Tuesday, the SPDR— S&P— Oil & Gas Exploration & Production ETF is outperforming other ETFs, up about 5.2% on the day. Components of that ETF showing particular strength include shares of SM Energy, up about 12.8% and shares of Devon Energy, up about 11.6% on the day.
And underperforming other ETFs today is the iShares U.S. Medical Devices ETF, down about 2.2% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of Abbott Laboratories, lower by about 7.5%, and shares of Inari Medical, lower by about 6.6% on the day.
VIDEO: Tuesday's ETF Movers: XOP, IHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of SM Energy, up about 12.8% and shares of Devon Energy, up about 11.6% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of Abbott Laboratories, lower by about 7.5%, and shares of Inari Medical, lower by about 6.6% on the day. VIDEO: Tuesday's ETF Movers: XOP, IHI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of SM Energy, up about 12.8% and shares of Devon Energy, up about 11.6% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of Abbott Laboratories, lower by about 7.5%, and shares of Inari Medical, lower by about 6.6% on the day. VIDEO: Tuesday's ETF Movers: XOP, IHI 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 Tuesday, the SPDR— S&P— Oil & Gas Exploration & Production ETF is outperforming other ETFs, up about 5.2% on the day. Components of that ETF showing particular strength include shares of SM Energy, up about 12.8% and shares of Devon Energy, up about 11.6% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of Abbott Laboratories, lower by about 7.5%, and shares of Inari Medical, lower by about 6.6% on the day. | In trading on Tuesday, the SPDR— S&P— Oil & Gas Exploration & Production ETF is outperforming other ETFs, up about 5.2% on the day. Components of that ETF showing particular strength include shares of SM Energy, up about 12.8% and shares of Devon Energy, up about 11.6% on the day. And underperforming other ETFs today is the iShares U.S. Medical Devices ETF, down about 2.2% in Tuesday afternoon trading. |
32117.0 | 2021-06-01 00:00:00 UTC | This Significant New Partnership Makes Senseonics Stock Worth Another Look | ABT | https://www.nasdaq.com/articles/this-significant-new-partnership-makes-senseonics-stock-worth-another-look-2021-06-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Senseonics (NYSEAMERICAN:SENS) stock has surged over the past six months.
Source: Minerva Studio / Shutterstock.com
SENS used to trade deep in penny stock territory. Shares were below 50 cents through most of 2020.
However, Senseonics rocketed to as high as $6 per share during the huge Reddit short squeeze phenomenon back in January.
Now, SENS stock has settled back down to around $2 a share. This could offer a better buying opportunity for traders that missed the initial run-up.
7 Cheap Stocks to Put on Your Buy List for June
Before we take a look at whether Senseonics worth getting involved in at all let’s back up and take a look at how Senseonics hopes to start making money.
Diabetes Care and SENS Stock
Senseonics focuses on developing products to help with diabetes care. Its lead product, Eversense, provides continuous glucose monitoring (CGM). It is novel in that it can be implanted and then provide data for up to six months. The company describes it as the “world’s first long-term CGM,” touting the device’s accuracy, longevity and bio-analytics.
Getting rid of invasive glucose monitoring is indeed a huge leap forward. That said, there are rivals going after the CGM space as well. Senseonics is hardly the only firm involved.
You can find plenty of small medical device companies out there. A lot of companies come up with innovative products but struggle to get them to market. Distribution, not technology, is often the sticking point. That was one of the key reasons why Senseonics stock traded at such a low level as well. Investors worry how Senseonics can make Eversense a commercial success.
However, the company had a huge breakthrough on this front. Instead of trying to build its own marketing outfit, Senseonics made an important partnership with Ascensia Diabetes Care.
Ascensia is the offshoot of Bayer’s diabetes business and thus is a well-known global operation. Ascensia invested money in Senseonics and is distributing the Eversense line of products in many locales, particularly in Europe.
Investors panned Senseonic’s recent quarterly results, as earnings and revenues didn’t quite live up to Senseonics’ recent stock price gains. However, Ascensia was rebooting marketing efforts for Eversense in the United States.
According to the company’s latest conference call, Ascensia has relaunched Eversense in the U.S. recently and hired several dozen marketing employees to get product sales rolling there.
Risks to Senseonics
Eversense is still in the early stages of commercialization. The company anticipates $12 million to $15 million in sales this year. That’s up dramatically from 2020 levels but is still rather modest in the grand scheme of things.
Another potential concern is competition. Ascensia wouldn’t have invested so much time and financial capital into Senseonics if it didn’t think the platform was viable. However, Senseonics isn’t the only game in town. Other well-funded competitors like Abbott (NYSE:ABT) and Dexcom (NASDAQ:DXCM) are active in continuous glucose monitoring as well.
Having the backing of a huge player like Ascensia gets Senseonics onto a level playing field. It doesn’t guarantee success, but it does give the company a fighting chance.
Senseonics also has a large cash balance; it held $178.6 million as of last quarter. This gives time for Ascensia to ramp up sales, and also for Senseonics to further its research and development to keep Eversense up to speed with rivals.
SENS Stock Verdict
It’d be easy to dismiss SENS stock. It’s been in business an awfully long time without much to show for it before now.
Senseonics rallied with a lot of other low-quality meme stocks back in January. There are reasons for caution are here, and this is still a high-risk investment. Our Josh Enomoto makes a solid case for being wary of SENS stock and it’s worth reading before investing any capital.
That said, Senseonics is up on real, tangible, positive news. This isn’t just messageboard hype. Ascensia is a quality partner. With it in charge of marketing, there’s a chance that Senseonics’ products will finally reach the inflection point.
It will take a few more quarters of strong operating results for investors to really buy into the story. But, at this point, SENS stock is definitely one to have on the watchlist.
On the date of publication, Ian Bezek 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.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
The post This Significant New Partnership Makes Senseonics Stock Worth Another Look 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. | Other well-funded competitors like Abbott (NYSE:ABT) and Dexcom (NASDAQ:DXCM) are active in continuous glucose monitoring as well. According to the company’s latest conference call, Ascensia has relaunched Eversense in the U.S. recently and hired several dozen marketing employees to get product sales rolling there. Our Josh Enomoto makes a solid case for being wary of SENS stock and it’s worth reading before investing any capital. | Other well-funded competitors like Abbott (NYSE:ABT) and Dexcom (NASDAQ:DXCM) are active in continuous glucose monitoring as well. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Senseonics (NYSEAMERICAN:SENS) stock has surged over the past six months. Diabetes Care and SENS Stock Senseonics focuses on developing products to help with diabetes care. | Other well-funded competitors like Abbott (NYSE:ABT) and Dexcom (NASDAQ:DXCM) are active in continuous glucose monitoring as well. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Senseonics (NYSEAMERICAN:SENS) stock has surged over the past six months. 7 Cheap Stocks to Put on Your Buy List for June Before we take a look at whether Senseonics worth getting involved in at all let’s back up and take a look at how Senseonics hopes to start making money. | Other well-funded competitors like Abbott (NYSE:ABT) and Dexcom (NASDAQ:DXCM) are active in continuous glucose monitoring as well. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Senseonics (NYSEAMERICAN:SENS) stock has surged over the past six months. Now, SENS stock has settled back down to around $2 a share. |
32118.0 | 2021-06-01 00:00:00 UTC | S&P 500 dips, as healthcare weighs; Dow ends higher | ABT | https://www.nasdaq.com/articles/sp-500-dips-as-healthcare-weighs-dow-ends-higher-2021-06-01 | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US manufacturing gains steam; shortages mount
Abbott Labs shares tumble after co cuts forecast
Meme stocks extend gains; AMC Entertainment shares jump
Data analytics firm Cloudera soars on plans to go private
Dow up 0.13%, S&P down 0.05%, Nasdaq down 0.09%
Updates with additional market data
By Lewis Krauskopf, Shashank Nayar and Medha Singh
June 1 (Reuters) - The S&P 500 .SPX dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation.
The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY3.9%, its biggest one-day gain in nearly four months. The heavyweight tech sector .SPLRCT fell while the healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N.
Data showed U.S. manufacturing activity picked up in May as pent-up demand in a reopening economy boosted orders. But unfinished work piled up because of shortages of raw materials and labor.
"People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labor and other costs is temporary," Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
The Dow Jones Industrial Average .DJI rose 45.86 points, or 0.13%, to 34,575.31; the S&P 500 .SPX lost 2.07 points, or 0.05%, at 4,202.04; and the Nasdaq Composite .IXIC dropped 12.26 points, or 0.09%, to 13,736.48.
Along with sharp gains for financials and energy, the small-cap Russell 2000 .RUT rose 1.1% on Tuesday, underscoring strength for segments of the stock market expected to do particularly well in an expanding economy.
While the S&P 500 remains less than 1% of its record high after four straight months of gains, investors are worried about whether rising inflation could hit equity prices.
"We have supply chain issues, delays, price increases, pricing pressures in general, we have got employers saying they have got difficulty sourcing labor," said Kristina Hooper, chiefglobal marketstrategist at Invesco in New York.
"So this is a microcosm of what we are already hearing about and seeing in the overall economy and it's just a reminder that inflation remains a concern."
Stock markets on Friday brushed off a surge in key inflation readings for April following reassurances from Federal Reserve officials that the central bank's ultra-loose monetary policy would remain in place.
Minneapolis Federal Reserve Bank President Neel Kashkari and Fed Vice Chair for supervision Randal Quarles on Tuesday reiterated the view that higher prices would be transitory.
This week's focus will be on a raft of economic data, culminating with U.S. payrolls due on Friday.
Abbott Labs shares fell 9.3% after the company cut its full-year 2021 profit forecast, citing expectations for a sharp decline in revenue from its COVID-19 tests as more Americans get vaccinated. Shares of other test makers also fell.
Cloudera Inc CLDR.N shares jumped 23.9% after private equity firms KKR & Co KKR.N and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private.
A group of "meme stocks" extended gains from the previous week, with shares of AMC Entertainment Holdings Inc AMC.N up 22.7% after the movie theater chain said it sold $230 million of its stock.
Advancing issues outnumbered decliners on the NYSE by a 2.54-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favored advancers.
The S&P 500 posted 73 new 52-week highs and no new lows; the Nasdaq Composite recorded 168 new highs and 25 new lows.
About 10.7 billion shares changed hands in U.S. exchanges, compared with the 10.5 billion daily average over the last 20 sessions.
(Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu, Maju Samuel and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The heavyweight tech sector .SPLRCT fell while the healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. "People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labor and other costs is temporary," Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Stock markets on Friday brushed off a surge in key inflation readings for April following reassurances from Federal Reserve officials that the central bank's ultra-loose monetary policy would remain in place. | The heavyweight tech sector .SPLRCT fell while the healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. US manufacturing gains steam; shortages mount Abbott Labs shares tumble after co cuts forecast Meme stocks extend gains; AMC Entertainment shares jump Data analytics firm Cloudera soars on plans to go private Dow up 0.13%, S&P down 0.05%, Nasdaq down 0.09% Updates with additional market data By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 .SPX dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY3.9%, its biggest one-day gain in nearly four months. | The heavyweight tech sector .SPLRCT fell while the healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. US manufacturing gains steam; shortages mount Abbott Labs shares tumble after co cuts forecast Meme stocks extend gains; AMC Entertainment shares jump Data analytics firm Cloudera soars on plans to go private Dow up 0.13%, S&P down 0.05%, Nasdaq down 0.09% Updates with additional market data By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 .SPX dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY3.9%, its biggest one-day gain in nearly four months. | The heavyweight tech sector .SPLRCT fell while the healthcare sector .SPXHC was dragged down by a weak profit forecast from Abbott Laboratories ABT.N. US manufacturing gains steam; shortages mount Abbott Labs shares tumble after co cuts forecast Meme stocks extend gains; AMC Entertainment shares jump Data analytics firm Cloudera soars on plans to go private Dow up 0.13%, S&P down 0.05%, Nasdaq down 0.09% Updates with additional market data By Lewis Krauskopf, Shashank Nayar and Medha Singh June 1 (Reuters) - The S&P 500 .SPX dipped on Tuesday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector .SPSY hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector .SPNY3.9%, its biggest one-day gain in nearly four months. |
32119.0 | 2021-06-01 00:00:00 UTC | Abbott cuts 2021 profit forecast on lower COVID-19 testing demand | ABT | https://www.nasdaq.com/articles/abbott-cuts-2021-profit-forecast-on-lower-covid-19-testing-demand-2021-06-01 | nan | nan | Adds details from release, share movement
June 1 (Reuters) - Abbott Laboratories ABT.N on Tuesday cut its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand, sending its shares down 4.1% before the bell.
"This has been driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, accelerated rollout of COVID-19 vaccines globally and, most recently, U.S. health authority guidance on testing for fully vaccinated individuals," the drugmaker said.
Abbott generated billions in sales for its COVID-19 tests last year, but analysts have cautioned that demand is likely to fall this year.
The company now expects full-year adjusted profit from continuing operations of $4.30 to $4.50 per share. It had forecast at least $5 per share in January. Analysts expect $5.04 per share, according to Refinitiv data.
Abbott sees second-quarter adjusted profit from continuing operations of at least $1 per share, compared with analysts' estimates of $1.23 per share.
(Reporting by Dania Nadeem in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)
((Dania.Nadeem@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from release, share movement June 1 (Reuters) - Abbott Laboratories ABT.N on Tuesday cut its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand, sending its shares down 4.1% before the bell. "This has been driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, accelerated rollout of COVID-19 vaccines globally and, most recently, U.S. health authority guidance on testing for fully vaccinated individuals," the drugmaker said. The company now expects full-year adjusted profit from continuing operations of $4.30 to $4.50 per share. | Adds details from release, share movement June 1 (Reuters) - Abbott Laboratories ABT.N on Tuesday cut its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand, sending its shares down 4.1% before the bell. The company now expects full-year adjusted profit from continuing operations of $4.30 to $4.50 per share. Abbott sees second-quarter adjusted profit from continuing operations of at least $1 per share, compared with analysts' estimates of $1.23 per share. | Adds details from release, share movement June 1 (Reuters) - Abbott Laboratories ABT.N on Tuesday cut its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand, sending its shares down 4.1% before the bell. Abbott sees second-quarter adjusted profit from continuing operations of at least $1 per share, compared with analysts' estimates of $1.23 per share. (Reporting by Dania Nadeem in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber) ((Dania.Nadeem@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from release, share movement June 1 (Reuters) - Abbott Laboratories ABT.N on Tuesday cut its full-year 2021 profit forecast due to a projected drop in COVID-19 diagnostic testing demand, sending its shares down 4.1% before the bell. "This has been driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, accelerated rollout of COVID-19 vaccines globally and, most recently, U.S. health authority guidance on testing for fully vaccinated individuals," the drugmaker said. The company now expects full-year adjusted profit from continuing operations of $4.30 to $4.50 per share. |
32120.0 | 2021-06-01 00:00:00 UTC | Abbott Laboratories Enters Oversold Territory | ABT | https://www.nasdaq.com/articles/abbott-laboratories-enters-oversold-territory-2021-06-01 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $108.362 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Abbott Laboratories, the RSI reading has hit 24.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 57.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABT's recent annualized dividend of 1.8/share (currently paid in quarterly installments) works out to an annual yield of 1.54% based upon the recent $116.65 share price.
A bullish investor could look at ABT's 24.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABT's 24.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $108.362 per share. | Indeed, ABT's recent annualized dividend of 1.8/share (currently paid in quarterly installments) works out to an annual yield of 1.54% based upon the recent $116.65 share price. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $108.362 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $108.362 per share. | Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABT is its dividend history. Abbott Laboratories (Symbol: ABT) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Abbott Laboratories an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of ABT entered into oversold territory, changing hands as low as $108.362 per share. |
32121.0 | 2021-05-30 00:00:00 UTC | The Smartest Dividend Stocks to Buy With $400 Right Now | ABT | https://www.nasdaq.com/articles/the-smartest-dividend-stocks-to-buy-with-%24400-right-now-2021-05-30 | nan | nan | Warren Buffett didn't start out investing with $108 billion. Like every other successful investor, he began his career with a much smaller amount than he has now.
You don't have to have a lot of money to begin investing. A few hundred dollars should allow you to buy several solid stocks. And investing in the stocks of companies that pay dividends will allow you to receive steady returns on your investment.
But which stocks are good candidates for investors on a relatively tight budget? Here are my picks for the smartest dividend stocks to buy with $400 right now.
Image source: Getty Images.
AbbVie
Let's start the list with a respected Dividend Aristocrat. AbbVie (NYSE: ABBV) has increased its dividend for 49 consecutive years. Since separating from Abbott in 2013, the big drugmaker has boosted its dividend payout by an impressive 225%. Its dividend yield currently stands at nearly 4.6%. And you can buy one share of AbbVie right now for less than $115.
For a long time, the main reason to consider buying AbbVie (other than its dividend) was the growth generated by Humira. The autoimmune disease drug is the company's top-selling product. It even ranked as the best-selling drug in the world for several years.
However, Humira's sales will soon decline as biosimilars hit the U.S. market beginning in 2023. Don't worry: AbbVie's dividend will remain safe. The company's growth won't be disrupted for very long, either. AbbVie expects overall revenue will dip in 2023 but return to growth the following year with strong growth throughout the rest of the decade.
Innovative Industrial Properties
Few dividend stocks are going to give you the kind of growth that Innovative Industrial Properties (NYSE: IIPR) can. The real estate investment trust (REIT) focuses on the medical cannabis industry. IIP's revenue and net income more than doubled year over year in the first quarter of 2021.
One share of IIP will currently cost you close to $180. That investment should pay off nicely over the next several years, though. All IIP needs to do to continue growing is to buy more properties and lease them back to medical cannabis operators. At the company's current pace of these sale-buyback transactions, it will come close to doubling its number of properties within the next five years.
You'll also get a strong and steadily increasing dividend with IIP as well. Its dividend yield of around 2.9% is actually deceptively low. The REIT has boosted its dividend by a whopping 780% since 2017. However, IIP's share price has skyrocketed even more -- nearly 850% -- during the same period, keeping its dividend yield from rising.
Brookfield Renewable
One of the trends that you can bank on for the future is the increasing use of renewable energy. Countries and companies around the world are seeking to reduce carbon emissions, boosting the demand for renewable energy in the process. It definitely helps that renewable energy sources like wind and solar are more cost-effective than ever.
I think that using most of the remaining money from your initial $400 to buy a couple of shares of Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) would be a smart move. The company is a leader in the renewable energy industry with 21,000 megawatts of installed capacity, including hydroelectric, wind, and solar facilities. It also has a development pipeline of around 27,000 megawatts.
Note that there are two ways to invest in Brookfield Renewable. The limited partnership (LP) Brookfield Renewable Partners trades under the BEP ticker, while the more tax-friendly Brookfield Renewable Corporation trades under the BEPC ticker. It's the same underlying business with either stock. Both shares currently trade at around $40. Both also pay solid dividends with yields of a little under 3%.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Countries and companies around the world are seeking to reduce carbon emissions, boosting the demand for renewable energy in the process. The company is a leader in the renewable energy industry with 21,000 megawatts of installed capacity, including hydroelectric, wind, and solar facilities. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Brookfield Renewable Partners L.P. wasn't one of them! | I think that using most of the remaining money from your initial $400 to buy a couple of shares of Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) would be a smart move. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. | And investing in the stocks of companies that pay dividends will allow you to receive steady returns on your investment. Innovative Industrial Properties Few dividend stocks are going to give you the kind of growth that Innovative Industrial Properties (NYSE: IIPR) can. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Innovative Industrial Properties. | And you can buy one share of AbbVie right now for less than $115. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Brookfield Renewable Partners L.P. wasn't one of them! That's right -- they think these 10 stocks are even better buys. |
32122.0 | 2021-05-27 00:00:00 UTC | 2 Great Income Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/2-great-income-stocks-to-buy-right-now-2021-05-27 | nan | nan | If you are looking to make the most of an investment, you should consider stocks that have promising businesses, aren't overpriced, and that pay a decent yield. While that makes for a list of lofty requirements, being picky when it comes to which stocks you put in your portfolio can pay off handsomely and help you outperform the market.
Two stocks that tick off all those boxes today are Amgen (NASDAQ: AMGN) and Cisco Systems (NASDAQ: CSCO). Here's a look at why investing in these companies can set you up for some great returns down the road.
Image source: Getty Images.
1. Amgen
There's a lot to like about Amgen. The drugmaker has more than doubled its dividend payments from the $0.79 that it was paying back in 2015 to quarterly payout of $1.76 today. Its current yield of 2.8% is well above the S&P 500 average of 1.4% and can be an excellent source of cash flow for investors. Amgen currently maintains a 54% payout ratio, so there is plenty of room for the business to continue increasing its payments to shareholders.
The company is coming off a tough first quarter in which sales of $5.9 billion for the period ending March 31 declined by 4.2% from last year. Amgen blames the disappointing numbers on COVID-19, but the company sees some light at the end of the tunnel as vaccination rates climb higher. Despite its broader struggles, multiple drugs generated double-digit growth during the period, including Repatha (for high cholesterol) and Prolia (for bone loss). Although the company still anticipates some disruption during the second quarter, it sees that lessening in the latter half of the year as patient visits and diagnoses slowly return to pre-pandemic levels. In total, the company's profit of $1.6 billion in the first quarter was down 9.8% year over year when it released the results on April 27.
With shares of the healthcare stock up just 7% over the past year and vastly underperforming the S&P 500 and its 41% gains during that time, now may be a great time to load up on shares of Amgen. Trading at a forward price-to-earnings (P/E) ratio of less than 15, the stock isn't terribly expensive; investors are paying more than 23 times future earnings for both Eli Lilly and Abbott Laboratories.
2. Cisco
Tech company Cisco pays investors a similar dividend yield of around 2.8%. And while its payouts haven't risen nearly as impressively as Amgen's have, with quarterly payments of $0.37, its shareholders are earning 76% more than they were in 2016 when Cisco was paying just $0.21 each quarter. Its payout ratio of 60% is slightly higher, but it's still low enough that investors don't need to lose sleep over its ability to reward shareholders.
The company released its third-quarter results on May 19, posting sales of $12.8 billion, which grew 6.8% year over year. It anticipates that in the fourth quarter, its growth rate will remain the same, expecting between 6% and 8%. Cisco also says demand is the strongest it has been in almost a decade. I'm optimistic that things will only get stronger, because as people continue to work remotely, there will be an incentive for businesses to upgrade their existing IT infrastructure. According to cybersecurity company Group-IB, ransomware attacks were up 150% in 2020. The extortion amounts grew in size and companies were down for an average of 18 days. The Colonial Pipeline breach is only the most recent popular example, which had devastating effects as it led to fuel shortages in parts of the country.
Cisco has also underperformed the markets the past year, rising by just 19%. Its forward P/E of 16 is lower than Oracle's multiple of 18 and is well below industry giant Microsoft, which is trading at 32 times its future earnings. Like Amgen, Cisco offers investors some promising growth opportunities, a decent valuation, and an above-average yield, making it a solid income stock to add to your portfolio today.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amgen wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite its broader struggles, multiple drugs generated double-digit growth during the period, including Repatha (for high cholesterol) and Prolia (for bone loss). Trading at a forward price-to-earnings (P/E) ratio of less than 15, the stock isn't terribly expensive; investors are paying more than 23 times future earnings for both Eli Lilly and Abbott Laboratories. Like Amgen, Cisco offers investors some promising growth opportunities, a decent valuation, and an above-average yield, making it a solid income stock to add to your portfolio today. | Cisco Tech company Cisco pays investors a similar dividend yield of around 2.8%. The company released its third-quarter results on May 19, posting sales of $12.8 billion, which grew 6.8% year over year. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. | And while its payouts haven't risen nearly as impressively as Amgen's have, with quarterly payments of $0.37, its shareholders are earning 76% more than they were in 2016 when Cisco was paying just $0.21 each quarter. Like Amgen, Cisco offers investors some promising growth opportunities, a decent valuation, and an above-average yield, making it a solid income stock to add to your portfolio today. 10 stocks we like better than Amgen When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | If you are looking to make the most of an investment, you should consider stocks that have promising businesses, aren't overpriced, and that pay a decent yield. And while its payouts haven't risen nearly as impressively as Amgen's have, with quarterly payments of $0.37, its shareholders are earning 76% more than they were in 2016 when Cisco was paying just $0.21 each quarter. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amgen wasn't one of them! |
32123.0 | 2021-05-27 00:00:00 UTC | Despite A 7x Rally Owens & Minor Stock Will Likely Continue Higher | ABT | https://www.nasdaq.com/articles/despite-a-7x-rally-owens-minor-stock-will-likely-continue-higher-2021-05-28 | nan | nan | [Updated: 5/27/2021] OMI Stock Rally
The stock price of Owens & Minor (NYSE:OMI), a global healthcare logistics company, has seen a stellar 36% move in a single trading session on May 26, 2021. This can be attributed to the company’s long term guidance of $12 billion revenue by 2026, reflecting over 40% growth from the $8.5 billion figure it reported last year. More importantly, it expects its adjusted EPS to be around $6.00 by 2026, compared to just $2.26 it reported last year, reflecting a large 2.6x growth. Not only did the company guide for 2026, it also stated that it expects adjusted EPS to be in the range of $3.00 and $3.50 next year (2022). Note that 2021 EPS is expected to be even higher (consensus estimate is $3.97), due to higher demand for personal protective equipment (PPE), a rebound in volume of elective surgeries, as well as increased pricing. The demand for PPE and Covid-19 related products will likely decline next year as the crisis winds down, impacting the revenue and earnings for the company.
The company’s 2026 outlook looks promising and the 36% move in a single day tells us how investors perceived this announcement. It is not the first time OMI stock has seen such a rise. In fact, it is up a whopping 7x from levels of $6 seen in March 2020 to $44 currently. Now, is OMI stock poised to grow further or is a decline after the recent rise imminent? We believe OMI stock will continue to rally in the near term, given the strong momentum in the stock, and a solid guidance for both near term as well as long term. Our dashboard – 595% Growth In OMI Stock Since 2018 – summarizes the factors that led to a large rally in OMI stock since 2018.
Looking at valuation, at the current price of $44, OMI stock is trading at 13x its 2022 expected adjusted EPS of $3.25 (at midpoint of the company’s provided range). This compares with levels of 12x and below seen over the past few years. Does this make OMI stock expensive? Not really. Let us look at the long-term outlook, based on the company’s recently provided guidance. Now, if Owens & Minor earnings grow 2.6x between 2020-2026, the P/E multiple will shrink to 7x from its current level, assuming the stock price stays the same, correct?
But that’s what Owens & Minor’s investors are betting will not happen! If earnings expand 2.6x over the next few years, instead of the P/E shrinking from around 13x presently (based on expected 2022 earnings) to about 7x, a scenario where the P/E metric falls more modestly, perhaps to about 10x, looks more likely. For context, Owens & Minor has seen a steady growth in P/E multiple from 5x in 2018 to 12x in 2020, given the rapid growth in earnings, a trend which is likely to continue over the coming years. This would make growth in OMI’s stock price over 35%, to around $60 levels, likely over the coming years. As such, we believe that despite the large rally seen over the last year or so, long term investors can enter into OMI stock even at the current levels.
[Updated: 9/29/2020] OMI Stock Performance 2020 vs. 2008 Crisis
We believe Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, could continue to rally in the near term. OMI stock trades at $22 currently, rising a whopping 4x since the beginning of the year. It traded at a pre-Covid high of $7 in February, and it is 202% above that level now. Also, OMI stock has gained 272% from the low of $6 seen in March 2020, as the Fed stimulus largely put investor concerns about the near-term survival of companies to rest.
Owens & Minor’s business is seeing a strong growth in the current pandemic due to an increased demand for personal protective equipment (PPE). This has led to the company revising its full year earnings outlook to $1.90 at the high end of the range, compared to a $1.20 figure previously. In fact, the $1.20 figure was also revised during the last quarter from $0.60 guidance earlier. As such, with the growth in earnings outlook, OMI stock saw a gradual uptick thus far in 2020. After the recently provided outlook, OMI stock sky-rocketed 47% to $20 in a single trading session on Sep 24. Despite the strong rally in OMI stock this year, we believe that the stock has more room for growth in the near future. Our conclusion is based on the company specific triggers, such as growth in PPE demand as well as taking into account the company’s provided earnings outlook. We compare Owens & Minor’s stock performance during the current crisis with that during the 2008 recession in an interactive dashboard analysis.
2020 Coronavirus Crisis
Timeline of 2020 Crisis So Far:
12/12/2019: Coronavirus cases first reported in China
1/31/2020: WHO declares a global health emergency.
2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high
3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, as Covid-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war
From 3/24/2020: S&P 500 recovers 50% from the lows seen on Mar 23, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.
In contrast, here’s how Owens & Minor and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008)
Owens & Minor vs S&P 500 Performance Over 2007-08 Financial Crisis
OMI stock declined from levels of around $19 in September 2007 (pre-crisis peak for the markets) to levels of around $17 in March 2009 (as the markets bottomed out), implying OMI stock lost a mere 12% from its approximate pre-crisis peak. It recovered post the 2008 crisis, to levels of about $22 in early 2010, rising by 30% between March 2009 and January 2010. In comparison, the S&P 500 Index saw a decline of 51%, followed by a recovery of 48%.
Owens & Minor’s Lackluster Fundamentals
Owens & Minor’s Revenues declined from $9.8 billion in 2015 to $9.2 billion in 2019, owing to customer non-renewals after issues with servicing back in 2017 and 2018. The company posted a loss of $7.28 per share and $1.03 per share on GAAP basis in 2018 and 2019 respectively, compared to earnings of $1.65 in 2015. The company’s Q2 2020 revenues were 24% below the level seen a year ago, and the EPS figure of $0 in Q2 2020 compares with a loss of $0.16 per share in the prior year quarter. This can largely be attributed to deferment of elective surgeries in Q2.
However, things look bright as we look forward with resumption of elective surgeries, and continued growth in PPE demand. While Owens & Minor total revenue could see a high-single-digit decline for the full year, at the mid-point of its guidance, the EPS of $1.75 on an adjusted basis would imply a 3x growth from the $0.60 figure in 2019.
Does Owens & Minor Have A Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?
Owens & Minor’s total debt increased from $0.6 billion in 2016 to $1.3 at the end of Q2 2020, while its total cash decreased from $185 million to $101 million over the same period. The company also generated $150 million in cash from its operations in the first half of 2020, and it appears to be in a reasonable position to weather the crisis.
CONCLUSION
Phases of Covid-19 crisis:
Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally
Late-March 2020 onward: Social distancing measures + lockdowns
April 2020: Fed stimulus suppresses near-term survival anxiety
May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases
July-September 2020: Poor Q2 results for many companies, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations
Going by the current trends and continued growth in demand for PPE, we believe that OMI stock has more room for growth in the near future.
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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. | Also, OMI stock has gained 272% from the low of $6 seen in March 2020, as the Fed stimulus largely put investor concerns about the near-term survival of companies to rest. While Owens & Minor total revenue could see a high-single-digit decline for the full year, at the mid-point of its guidance, the EPS of $1.75 on an adjusted basis would imply a 3x growth from the $0.60 figure in 2019. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-September 2020: Poor Q2 results for many companies, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations Going by the current trends and continued growth in demand for PPE, we believe that OMI stock has more room for growth in the near future. | [Updated: 5/27/2021] OMI Stock Rally The stock price of Owens & Minor (NYSE:OMI), a global healthcare logistics company, has seen a stellar 36% move in a single trading session on May 26, 2021. This can be attributed to the company’s long term guidance of $12 billion revenue by 2026, reflecting over 40% growth from the $8.5 billion figure it reported last year. [Updated: 9/29/2020] OMI Stock Performance 2020 vs. 2008 Crisis We believe Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, could continue to rally in the near term. | [Updated: 9/29/2020] OMI Stock Performance 2020 vs. 2008 Crisis We believe Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, could continue to rally in the near term. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 1/1/2010: Initial recovery to levels before accelerated decline (around 9/1/2008) Owens & Minor vs S&P 500 Performance Over 2007-08 Financial Crisis OMI stock declined from levels of around $19 in September 2007 (pre-crisis peak for the markets) to levels of around $17 in March 2009 (as the markets bottomed out), implying OMI stock lost a mere 12% from its approximate pre-crisis peak. Phases of Covid-19 crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-September 2020: Poor Q2 results for many companies, but continued improvement in demand and a decline in the number of new cases and progress with vaccine development buoy expectations Going by the current trends and continued growth in demand for PPE, we believe that OMI stock has more room for growth in the near future. | This can be attributed to the company’s long term guidance of $12 billion revenue by 2026, reflecting over 40% growth from the $8.5 billion figure it reported last year. Our dashboard – 595% Growth In OMI Stock Since 2018 – summarizes the factors that led to a large rally in OMI stock since 2018. Looking at valuation, at the current price of $44, OMI stock is trading at 13x its 2022 expected adjusted EPS of $3.25 (at midpoint of the company’s provided range). |
32124.0 | 2021-05-27 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-2021-05-27 | 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
Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96%
ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28%
Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55%
Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49%
SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73%
ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81%
Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99%
Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03%
SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02%
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
Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01%
ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74%
Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69%
Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12%
SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88%
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 SEIC — 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. Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. |
32125.0 | 2021-05-26 00:00:00 UTC | What To Expect From Medtronic's Q4? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-medtronics-q4-2021-05-26 | nan | nan | Medtronic stock (NYSE: MDT) is scheduled to report its fiscal fourth-quarter results on Thursday, May 27. We expect Medtronic to likely post revenues and earnings below the consensus estimates. While the company is likely to benefit from an improved demand for medical devices with a rebound in the volume of elective surgeries, a resurgence in Covid-19 cases may impact the company’s overall revenue growth.
Our forecast indicates that Medtronic’s valuation is around $133 per share, which is only 5% above the current market price of around $127. Look at our interactive dashboard analysis on Medtronic Pre-Earnings: What To Expect in Q4? for more details.
(1) Revenues expected to be slightly below the consensus estimate
Trefis estimates Medtronic’s Q4 fiscal 2021 total revenues to be around $8.10 billion, just a tad below $8.14 billion consensus estimates. While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand with resumption of elective surgeries likely helped the company navigate well during the quarter. While Diabetes, Minimally Invasive Therapies Group, and Restorative Therapies Group segments combined have seen a rise of 3.5% y-o-y to $5.1 billion in Q3, this growth was largely offset by a 4.0% decline seen in Cardiac & Vascular Group, due to resurgence of Covid-19 cases, .impacting the overall elective surgeries volume. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be below the consensus estimates
Medtronic’s Q4 2021 earnings per share (EPS) is expected to be $1.37 per Trefis analysis, 3.5% below the consensus estimate of $1.42. Medtronic’s Non-GAAP net income of $1.8 billion in Q3, reflected a 10% drop from its $1.9 billion profit in the prior year quarter, primarily due to a 270 bps contraction in the net margins, owing to the increased costs during the pandemic. Looking at the full fiscal 2021, we expect a 6% y-o-y decline in EPS to $4.30, due to margin contraction.
(3) Stock price estimate slightly above the current market price
Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 31x in fiscal 2021, this translates into a price of $133, which is 5% above the current market price of around $127. Although the coronavirus outbreak has had a sizable impact on Medtronic’s business over the past few quarters, due to deferment of elective surgeries, we believe the demand for medical devices will rebound as the spread of the virus subsides, especially with large scale vaccination programs underway in several countries.
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 fully valued, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for United Therapeutics vs. eBay shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While medical devices sales were heavily impacted due to the Covid pandemic, the improved demand with resumption of elective surgeries likely helped the company navigate well during the quarter. Although the coronavirus outbreak has had a sizable impact on Medtronic’s business over the past few quarters, due to deferment of elective surgeries, we believe the demand for medical devices will rebound as the spread of the virus subsides, especially with large scale vaccination programs underway in several countries. For example, you’ll be surprised how the stock valuation for United Therapeutics vs. eBay shows a disconnect with their relative operational growth. | While the company is likely to benefit from an improved demand for medical devices with a rebound in the volume of elective surgeries, a resurgence in Covid-19 cases may impact the company’s overall revenue growth. 2) EPS likely to be below the consensus estimates Medtronic’s Q4 2021 earnings per share (EPS) is expected to be $1.37 per Trefis analysis, 3.5% below the consensus estimate of $1.42. (3) Stock price estimate slightly above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 31x in fiscal 2021, this translates into a price of $133, which is 5% above the current market price of around $127. | (1) Revenues expected to be slightly below the consensus estimate Trefis estimates Medtronic’s Q4 fiscal 2021 total revenues to be around $8.10 billion, just a tad below $8.14 billion consensus estimates. 2) EPS likely to be below the consensus estimates Medtronic’s Q4 2021 earnings per share (EPS) is expected to be $1.37 per Trefis analysis, 3.5% below the consensus estimate of $1.42. (3) Stock price estimate slightly above the current market price Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 31x in fiscal 2021, this translates into a price of $133, which is 5% above the current market price of around $127. | (1) Revenues expected to be slightly below the consensus estimate Trefis estimates Medtronic’s Q4 fiscal 2021 total revenues to be around $8.10 billion, just a tad below $8.14 billion consensus estimates. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup. 2) EPS likely to be below the consensus estimates Medtronic’s Q4 2021 earnings per share (EPS) is expected to be $1.37 per Trefis analysis, 3.5% below the consensus estimate of $1.42. |
32126.0 | 2021-05-25 00:00:00 UTC | 2 High-Yield Dividend Stocks for 2021 | ABT | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-for-2021-2021-05-25 | nan | nan | Investors like their dividends. Having a company pay you out a predictable income stream can do a lot to help short- and long-term returns alike. Not all dividends are created equal, though, as a high dividend yield might signal a company in distress, meaning that high yield might not last much longer.
Still, there are a few attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Boasting yields 2 to 4 times the yield of the SPDR S&P 500 ETF, which yields just 1.34% as of this writing, these stocks return a lot more income to their shareholders than does the broader market.
Here's why you might consider picking these high-yield, high-quality dividend stocks for your portfolio.
Image source: Getty Images.
1. AbbVie
Pharmaceutical giant AbbVie is one of the largest companies in the sector by market capitalization, coming in at just over $205 billion. Since its spinoff from parent company Abbott Laboratories, the company has returned more than 250% in gains to investors, excluding dividends.
Part of this growth has come from rheumatoid arthritis treatment Humira, which has been the best-selling drug worldwide over the past few years. Some investors are concerned that Humira is going off-patent in the United States in 2023, but this has already happened in other markets, such as Europe, and the company has invested heavily in developing new products to diversify its revenue streams in response. Those products include Skyrizi, Rinvoq, Imbruvica, and Venxleta, for the treatment of plaque psoriasis, rheumatoid arthritis, lymphoma, and leukemia, respectively. Skyrizi and Rinvoq carry a lot of promise and the early returns bear that out, as the company was able to grow Skyrizi's year-over-year sales by 91% and Rinvoq's 600%.
The growth of AbbVie's dividend is what makes it an attractive high-yield pick in today's market. AbbVie currently yields 4.28% and has averaged an 18.89% dividend growth rate over the past five years. So not only are you getting a great yield right now, but based on AbbVie's consistent history of dividend increases, this yield is likely to grow into the future.
2. Bristol Myers Squibb
Bristol Myers Squibb has been growing at a tremendous rate in recent years. The company boasts a five-year revenue growth rate of almost 20% and saw a 40% year-over-year increase. Part of that growth came from the acquisition of two major companies in Celgene and MyoKardia, bringing in a whole new set of drugs to bolster the company's pipeline alongisde its existing products.
Bristol Myers Squibb currently offers a 2.82% yield, but the real attraction here is dividend growth. The company recently grew its dividend to $2.29 this past year, a 9.3% increase from 2019.I believe this will be the beginning of a set of high dividend increases for shareholders , given that management promised in the recent Q1 earnings report to accelerate debt repayments and continue growing its payout. .
Dividend investors tend to look for stability in their investments, Bristol Myers Squibb fits that bill. Paying an uninterrupted stream of dividends since 1989, this is clearly a dividend stock that investors might want to take a look at adding to their portfolio in 2021.
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Anirudh Shankar owns shares of AbbVie and Bristol Myers Squibb. The Motley Fool owns shares of and recommends Bristol Myers Squibb. 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. | Part of this growth has come from rheumatoid arthritis treatment Humira, which has been the best-selling drug worldwide over the past few years. Some investors are concerned that Humira is going off-patent in the United States in 2023, but this has already happened in other markets, such as Europe, and the company has invested heavily in developing new products to diversify its revenue streams in response. Those products include Skyrizi, Rinvoq, Imbruvica, and Venxleta, for the treatment of plaque psoriasis, rheumatoid arthritis, lymphoma, and leukemia, respectively. | Still, there are a few attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Bristol Myers Squibb Bristol Myers Squibb has been growing at a tremendous rate in recent years. The Motley Fool owns shares of and recommends Bristol Myers Squibb. | Still, there are a few attractive high-yield dividend stocks in today's market, two of them being AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). The company recently grew its dividend to $2.29 this past year, a 9.3% increase from 2019.I believe this will be the beginning of a set of high dividend increases for shareholders , given that management promised in the recent Q1 earnings report to accelerate debt repayments and continue growing its payout. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Anirudh Shankar owns shares of AbbVie and Bristol Myers Squibb. | Investors like their dividends. AbbVie currently yields 4.28% and has averaged an 18.89% dividend growth rate over the past five years. Bristol Myers Squibb currently offers a 2.82% yield, but the real attraction here is dividend growth. |
32127.0 | 2021-05-25 00:00:00 UTC | Is Lucira Health a Good Stock to Buy Right Now? | ABT | https://www.nasdaq.com/articles/is-lucira-health-a-good-stock-to-buy-right-now-2021-05-25 | nan | nan | Shares of Lucira Health (NASDAQ: LHDX) exploded out of the gate when the company made its stock market debut in February. Despite an initial run-up, though, this new medical-technology stock has lost nearly half its value since it peaked in February.
Lucira Health's over-the-counter COVID-19 tests racked up millions of dollars in sales during the first three months of 2021, leading some investors to wonder if this beaten-down stock can bounce back. Here's what investors need to know about the road ahead of this medical diagnostics start-up.
Image source: Getty Images.
Reasons to buy Lucira Health now
During the first three months of 2021, sales of over-the-counter test kits reached $5 million. While this was an impressive start, it's important to note that the first quarter ended before the Food and Drug Administration authorized Lucira Health's COVID-19 test for emergency use without a prescription.
In April, the FDA expanded the availability of Lucira Health's over-the-counter COVID-19 test to anyone who wants it, without a prescription or supervision from a healthcare provider. In May, Amazon began selling the company's test online, allowing almost anyone to get their hands on reliable results without ever leaving the house.
Lucira Health's operation should have all the resources necessary to drive much stronger sales. The company raised an impressive $176 million during a successful initial public offering (IPO) in February, and still had $190 million in cash on its balance sheet at the end of March.
Reasons to remain cautious
Lucira Health's over-the-counter diagnostic is arguably unique, but it isn't the only way to get a COVID-19 test result without visiting a healthcare provider. In April, CVS Health began selling three different at-home tests that received Emergency Use Authorization from the FDA. Abbott Laboratories' (NYSE: ABT) already-popular antigen-based test reached thousands of CVS pharmacies across the country, but Lucira's test didn't make the cut.
In addition to increasing competition, Lucira Health needs to contend with sagging demand. On May 23, the number of new COVID-19 cases reported in the U.S. fell to its lowest level since the earliest days of the pandemic. While some organizations will continue monitoring for the virus, demand for coronavirus testing in the U.S. is likely to fall hard before the end of 2021. Lucira Health began over-the-counter sales in April, but they probably won't be strong enough to offset plummeting demand.
Even a small drop in demand could be bad news for Lucira Health because the company isn't close to breaking even yet. Sales rose to a record $4.5 million during the first three months of 2021, but the company spent $5.4 million producing the tests it sold during the period. That means there wasn't any revenue left over to pay for sales, marketing, and other operating expenses, which soared 268% year over year in the first quarter to $12.4 million.
If Lucira Health's profit margin doesn't improve by leaps and bounds, it's just a matter of time before its cash cushion disappears. If the company can't show investors it's on a clear path to profitability soon, investors buying the stock now could suffer heavy losses.
Wait for confirmation
Lucira Health explained that the excessive cost of goods sold in the first quarter was simply a matter of growing pains; the company is expanding and automating its manufacturing process. But investors want to wait for confirmation that these investments can produce a profit before buying a single share of this beaten-down stock.
10 stocks we like better than Lucira Health, Inc.
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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) already-popular antigen-based test reached thousands of CVS pharmacies across the country, but Lucira's test didn't make the cut. Lucira Health's over-the-counter COVID-19 tests racked up millions of dollars in sales during the first three months of 2021, leading some investors to wonder if this beaten-down stock can bounce back. While this was an impressive start, it's important to note that the first quarter ended before the Food and Drug Administration authorized Lucira Health's COVID-19 test for emergency use without a prescription. | Abbott Laboratories' (NYSE: ABT) already-popular antigen-based test reached thousands of CVS pharmacies across the country, but Lucira's test didn't make the cut. In April, CVS Health began selling three different at-home tests that received Emergency Use Authorization from the FDA. Lucira Health began over-the-counter sales in April, but they probably won't be strong enough to offset plummeting demand. | Abbott Laboratories' (NYSE: ABT) already-popular antigen-based test reached thousands of CVS pharmacies across the country, but Lucira's test didn't make the cut. Lucira Health's over-the-counter COVID-19 tests racked up millions of dollars in sales during the first three months of 2021, leading some investors to wonder if this beaten-down stock can bounce back. Reasons to buy Lucira Health now During the first three months of 2021, sales of over-the-counter test kits reached $5 million. | Abbott Laboratories' (NYSE: ABT) already-popular antigen-based test reached thousands of CVS pharmacies across the country, but Lucira's test didn't make the cut. Reasons to buy Lucira Health now During the first three months of 2021, sales of over-the-counter test kits reached $5 million. But investors want to wait for confirmation that these investments can produce a profit before buying a single share of this beaten-down stock. |
32128.0 | 2021-05-24 00:00:00 UTC | Is Abbott Laboratories (NYSE:ABT) Using Too Much Debt? | ABT | https://www.nasdaq.com/articles/is-abbott-laboratories-nyse%3Aabt-using-too-much-debt-2021-05-24 | nan | nan | Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. But should shareholders be worried about its use of debt?
What Risk Does Debt Bring?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does Abbott Laboratories Carry?
You can click the graphic below for the historical numbers, but it shows that Abbott Laboratories had US$17.3b of debt in March 2021, down from US$18.3b, one year before. However, it also had US$8.37b in cash, and so its net debt is US$8.93b.
NYSE:ABT Debt to Equity History May 24th 2021
A Look At Abbott Laboratories' Liabilities
According to the last reported balance sheet, Abbott Laboratories had liabilities of US$12.5b due within 12 months, and liabilities of US$26.5b due beyond 12 months. Offsetting these obligations, it had cash of US$8.37b as well as receivables valued at US$6.10b due within 12 months. So its liabilities total US$24.5b more than the combination of its cash and short-term receivables.
Of course, Abbott Laboratories has a titanic market capitalization of US$208.1b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
Abbott Laboratories's net debt is only 0.86 times its EBITDA. And its EBIT covers its interest expense a whopping 13.8 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. In addition to that, we're happy to report that Abbott Laboratories has boosted its EBIT by 43%, thus reducing the spectre of future debt repayments. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Abbott Laboratories's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Happily for any shareholders, Abbott Laboratories actually produced more free cash flow than EBIT over the last three years. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
Our View
Happily, Abbott Laboratories's impressive interest cover implies it has the upper hand on its debt. And the good news does not stop there, as its conversion of EBIT to free cash flow also supports that impression! We would also note that Medical Equipment industry companies like Abbott Laboratories commonly do use debt without problems. It looks Abbott Laboratories has no trouble standing on its own two feet, and it has no reason to fear its lenders. To our minds it has a healthy happy balance sheet. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 3 warning signs we've spotted with Abbott Laboratories .
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
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. | As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. NYSE:ABT Debt to Equity History May 24th 2021 A Look At Abbott Laboratories' Liabilities According to the last reported balance sheet, Abbott Laboratories had liabilities of US$12.5b due within 12 months, and liabilities of US$26.5b due beyond 12 months. Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' | NYSE:ABT Debt to Equity History May 24th 2021 A Look At Abbott Laboratories' Liabilities According to the last reported balance sheet, Abbott Laboratories had liabilities of US$12.5b due within 12 months, and liabilities of US$26.5b due beyond 12 months. As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). | NYSE:ABT Debt to Equity History May 24th 2021 A Look At Abbott Laboratories' Liabilities According to the last reported balance sheet, Abbott Laboratories had liabilities of US$12.5b due within 12 months, and liabilities of US$26.5b due beyond 12 months. As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. The first step when considering a company's debt levels is to consider its cash and debt together. | As with many other companies Abbott Laboratories (NYSE:ABT) makes use of debt. NYSE:ABT Debt to Equity History May 24th 2021 A Look At Abbott Laboratories' Liabilities According to the last reported balance sheet, Abbott Laboratories had liabilities of US$12.5b due within 12 months, and liabilities of US$26.5b due beyond 12 months. The first step when considering a company's debt levels is to consider its cash and debt together. |
32129.0 | 2021-05-23 00:00:00 UTC | Forecast Of The Day: Abbott's Diagnostics Revenue | ABT | https://www.nasdaq.com/articles/forecast-of-the-day%3A-abbotts-diagnostics-revenue-2021-05-23 | nan | nan | What?
Abbott (NYSE:ABT) Diagnostics Revenue rose from around $7.7 billion in 2019 to $10.8 billion in 2020. We expect the number to rise further to $15 billion in 2021 although it is likely to see a decline in 2022.
Why?
The surge in revenue over 2020 was driven by Covid-19 testing. Abbott’s first Covid-19 test was approved as early as March 2020, and the company has launched multiple new tests since then. Sales are likely to grow further in 2021, although we expect to see a decline in 2022 as the pandemic recedes.
So What?
Abbott’s Diagnostics business helped the company’s topline and stock price grow through the pandemic, despite challenges to its core Medical Devices business. Abbott’s stock is up by about 30% over the last 12 months.
See Our Complete Analysis For Abbott Labs
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how the stock valuation for shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here. \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":1049537,"3":{"1":0},"9":0,"10":1,"11":4,"12":0,"23":1}" data-sheets-textstyleruns="" data-sheets-hyperlinkruns="">While we think Abbott stock looks slightly undervalued, it is helpful to know how its peers stack up. Abbott Stock Comparison With Peers summarizes how Abbott 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. | Abbott (NYSE:ABT) Diagnostics Revenue rose from around $7.7 billion in 2019 to $10.8 billion in 2020. See Our Complete Analysis For Abbott Labs may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how the stock valuation for shows a disconnect with their relative operational growth. | Abbott (NYSE:ABT) Diagnostics Revenue rose from around $7.7 billion in 2019 to $10.8 billion in 2020. Abbott’s Diagnostics business helped the company’s topline and stock price grow through the pandemic, despite challenges to its core Medical Devices business. Abbott Stock Comparison With Peers summarizes how Abbott compares against peers on metrics that matter. | Abbott (NYSE:ABT) Diagnostics Revenue rose from around $7.7 billion in 2019 to $10.8 billion in 2020. Abbott’s Diagnostics business helped the company’s topline and stock price grow through the pandemic, despite challenges to its core Medical Devices business. \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":1049537,"3":{"1":0},"9":0,"10":1,"11":4,"12":0,"23":1}" data-sheets-textstyleruns="" data-sheets-hyperlinkruns="">While we think Abbott stock looks slightly undervalued, it is helpful to know how its peers stack up. | Abbott (NYSE:ABT) Diagnostics Revenue rose from around $7.7 billion in 2019 to $10.8 billion in 2020. The surge in revenue over 2020 was driven by Covid-19 testing. Sales are likely to grow further in 2021, although we expect to see a decline in 2022 as the pandemic recedes. |
32130.0 | 2021-05-23 00:00:00 UTC | The Best Dividend Aristocrats to Buy With $500 Right Now | ABT | https://www.nasdaq.com/articles/the-best-dividend-aristocrats-to-buy-with-%24500-right-now-2021-05-23 | nan | nan | Having a low budget doesn't necessarily mean you have to go with low quality. This is true for nearly anything you buy -- including dividend stocks.
The highest-quality dividend stocks have excellent track records of growing their dividends over time. Dividend Aristocrats rank as the cream of the crop. These are S&P 500 members that have increased their dividends for at least 25 consecutive years.
You don't have to have a lot of money to invest in these great dividend stocks. A few hundred dollars is all you need to pick up shares of several longtime winners. Here are the best Dividend Aristocrats to buy with $500 right now.
Image source: Getty Images.
Abbott Laboratories
Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. The healthcare giant has paid a dividend every quarter since 1924. Its dividend yield currently tops 1.5%.
You can buy one share of Abbott right now for a little under $120. And you won't just get a dependable dividend for that amount. Abbott has also delivered fantastic share appreciation, with the stock more than tripling over the last five years.
Much of Abbott's recent growth has been fueled by its COVID-19 tests. The sizzling growth over the last few quarters is likely to taper off somewhat as worries about the pandemic fade. However, Abbott still has several long-term growth drivers, notably including its FreeStyle Libre continuous glucose monitoring system.
AbbVie
If you like Abbott's dividend track record, you're going to like AbbVie (NYSE: ABBV) as well. The big drugmaker was spun off from Abbott in 2013. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. However, AbbVie claims a much juicier dividend yield of over 4.4%.
Coincidentally, AbbVie's share price is very close to Abbott's. You'll need less than $120 to scoop up a share of the large biotech. While AbbVie hasn't delivered as great of a return as its parent company has over the last five years, it's still performed pretty well, with the stock nearly doubling.
AbbVie's top-selling drug Humira faces biosimilar competition in the U.S. beginning in 2023. That will temporarily cause its revenue to dip. However, the company expects to quickly bounce back with strong revenue growth throughout the second half of this decade.
Lowe's
Lowe's (NYSE: LOW) isn't just a Dividend Aristocrat; it's also a Dividend King. This even more elite group consists of S&P 500 members with 50 or more years of consecutive dividend increases. Lowe's has increased its dividend for 58 consecutive years and has paid a dividend every quarter since the company went public in 1961. The home improvement retailer's dividend yield currently stands at a little over 1.2%.
You'll have to shell out nearly $200 to buy one share of Lowe's. The relatively higher share price should be worth it: Lowe's has delivered a return of more than 140% over the last five years. Its stock is up 65% over the last 12 months.
The pandemic has driven much of that recent growth. But can Lowe's keep the momentum going? Probably so. Even if its growth slows a little as COVID-19 becomes less of an issue, the home improvement trend is one that is likely to continue for years to come.
Coca-Cola
After buying Abbott, AbbVie, and Lowe's, you'll have less than $70 remaining from your initial $500. While there aren't many Dividend Aristocrats you can buy for that amount, there's one that especially stands out: Coca-Cola (NYSE: KO). One share of the giant beverage maker costs only around $55 right now.
Like Lowe's, Coca-Cola reigns as both a Dividend Aristocrat and a Dividend King. The company has increased its dividend payout for 59 consecutive years. Coke's dividend yields nearly 3.1%.
Coca-Cola hasn't been a huge winner for investors recently, with its stock rising by only 25% over the last five years. Things are looking up for the company now, though. Coke reported surprisingly good first-quarter results. As more people return to dining in restaurants, the company's beverage sales should grow.
This stock still probably won't generate the strong returns that the others on our list will. However, Coca-Cola continues to be a great long-term pick for income-seeking investors.
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Keith Speights owns shares of AbbVie. 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. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. However, Abbott still has several long-term growth drivers, notably including its FreeStyle Libre continuous glucose monitoring system. While AbbVie hasn't delivered as great of a return as its parent company has over the last five years, it's still performed pretty well, with the stock nearly doubling. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. Lowe's Lowe's (NYSE: LOW) isn't just a Dividend Aristocrat; it's also a Dividend King. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. AbbVie has raised its dividend by 225% since then, with its streak of dividend hikes extending to 49 years just like Abbott. Lowe's Lowe's (NYSE: LOW) isn't just a Dividend Aristocrat; it's also a Dividend King. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) has increased its dividend for an impressive 49 years in a row. You can buy one share of Abbott right now for a little under $120. Lowe's has increased its dividend for 58 consecutive years and has paid a dividend every quarter since the company went public in 1961. |
32131.0 | 2021-05-22 00:00:00 UTC | 3 Solid Stocks That Can Be Smart Picks Even in Choppy Markets | ABT | https://www.nasdaq.com/articles/3-solid-stocks-that-can-be-smart-picks-even-in-choppy-markets-2021-05-22 | nan | nan | The U.S. equity market has been quite volatile over the past few weeks. The first three days of last week saw tech stocks falling on fears of increasing inflation and a faster-than-anticipated tightening monetary policy. Then, on May 13, Federal Reserve officials played down the risk of a tightening policy and claimed that the rising prices in the reopening economy were only temporary. On May 14, the market bounced back on this newly injected optimism. Worries over whether temporary price surges aren't, in fact, temporary, have continued to be borne out in daily market swings.
While no one can predict the short-term direction of the market, retail investors can convert this period of uncertainty into opportunity by investing in fundamentally strong and resilient stocks such as AT&T (NYSE: T), Apple (NASDAQ: AAPL), and AbbVie (NYSE: ABBV). These companies have the potential to sail through any market condition.
Image Source: Getty Images.
1. AT&T
AT&T's stock has mostly languished in the past decade. However, things may take a turn for the better in the coming years. The company surpassed both top-line and bottom-line consensus estimates in the first quarter ending March 31.
On May 17, AT&T announced its decision to spinoff WarnerMedia and combine it with Discovery's (NASDAQ: DISCA) (NASDAQ: DISCK) nonfiction, international entertainment, and sports business assets to form a stand-alone global entertainment company. The deal has been finalized at $43 billion which includes cash, debt securities, and WarnerMedia retaining a portion of AT&T's debt. AT&T will control a 71% stake in the new company.
Subsequent to deal completion, AT&T plans to reduce its annual dividend payout from the current $15 billion to a range of $8 billion to $9 billion. Since a majority of the company's investors have preferred the slow-growing company mainly for income generation, it is not surprising that this change in dividend policy has left many of them embittered.
However, going beyond dividends, investors need to consider the potential of shareholder value creation. Free from the drag of AT&T's current net debt of $169 billion, WarnerMedia's business will now be valued more in line with its competitors such as Netflix and Disney. AT&T, Netflix, and Disney currently trade at forward price-to-earnings (P/E) multiples of 9.4, 47, and 72, respectively. With the largest content library in the world, the new company is well-positioned to benefit from the already high pace of subscriber acquisition of the HBO Max (streaming business) and HBO (cable) business. In the first quarter, HBO Max and HBO subscriber count grew by 33.5% year-over-year to 44.2 million in the U.S. and has reached 64 million globally. A $43 billion reduction in net debt will also help reduce AT&T's future interest expenses and bring the company's valuation more in line with other telecommunications players such as Verizon and T-Mobile.
Post spinoff, AT&T expects its revenues and adjusted earnings per share (EPS) to grow year over year by a low single-digit percentage and mid-single-digit percentage, respectively, from 2022 to 2024. After spinning off its entertainment business, AT&T will be a pure-play telecommunications and broadband player set to benefit from structural tailwinds such as the rollout of the 5G wireless network and expanding fiber broadband network. In this backdrop, the spinoff of WarnerMedia can actually prove to be the much-needed catalyst in AT&T's turnaround story.
2. Apple
Apple's second-quarter top-line and bottom-line results (for the quarter ending March 27) crushed Wall Street expectations. The largest public company in the world is firing all cylinders -- be it product sales or service revenue.
In the first half of fiscal 2021, iPhone sales soared by 34% year over year to $113.5 billion, mainly due to the increasing popularity of the iPhone 12, Apple's first 5G smartphone. Although the company currently leads the global 5G smartphone market with a 30.2% share, there's still potential left for future growth in the 5G device upgrade cycle.
Apple has also gained significant traction in its high-margin and mostly recurring services business, which includes Apple Music, the App Store, Apple News+, and Apple TV+. In the first half of fiscal 2021, services' net sales were up 25% year over year to $32.7 billion. With an installed base of over 1.65 billion devices, the company is well-positioned to further increase penetration of its services through its very sticky customer base.
Apple is anticipating a $3 billion to $4 billion revenue hit in the third quarter (ending June 2021), due to ongoing chip shortages. The company is also facing risks associated with antitrust investigations in Europe and the U.S. and a legal battle with Epic Games. Adverse developments in any of these cases can result in fines and the loss of future business for Apple.
However, with total cash plus marketable securities worth $204 billion and total debt of only $12 billion, the company's balance sheet is strong enough to withstand any challenges. Despite the company trading at almost 24 times forward earnings, this tech stock can prove to be an attractive long-term investment for retail investors.
3. AbbVie
After a lackluster performance in 2020, biopharmaceutical giant AbbVie's stock seems to be back in the game after releasing solid first-quarter results (for the period ending March 31, 2021). The company handily surpassed top-line and bottom-line consensus estimates. The market is especially impressed with the company lifting its fiscal 2021 adjusted earnings per share (EPS) guidance to $12.37 to $12.57, a bump from its previous profitability guidance of $12.32 to $12.52.
With Humira accounting for 37.7% of AbbVie's first-quarter net sales, investors are justifiably concerned about the drug losing its U.S. patent protection in 2023. While even the company is anticipating 2023 to be a tough year in terms of overall sales, it expects revenues to start recovering as soon as 2024.
AbbVie has been preparing for this big patent cliff for many years by gradually reducing its reliance on the Humira franchise. To replace a major chunk of Humira's lost sales post-patent expiry, the company has already launched two superior immunology drugs, Skyrizi and Rinvoq. AbbVie has also built a strong oncology franchise comprising of blockbuster cancer drugs Imbruvica and Venclexta, which together delivered $1.7 billion in sales in the first quarter. Finally, AbbVie's recent acquisition of Allergan has added a leading aesthetics portfolio comprising of strong brands such as Botox Cosmetics and Juvederm.
AbbVie's current dividend yield is 4.5%, while its trailing-12-month (TTM) dividend payout ratio has been just over 58%. With total cash of $9.8 billion on its balance sheet and TTM free cash flow of $17.8 billion, this S&P Dividend Aristocrat (first as a part of Abbott Laboratories and then as an independent company post spinoff in 2008) seems capable of paying dividends for the foreseeable future.
In November 2020, Berkshire Hathaway started a position worth $1.9 billion in AbbVie. Considering AbbVie's diversified product portfolio, balance-sheet strength, and high dividend yield, the company offers retail investors an attractive risk-reward proposition at a reasonable valuation of just 8.4 times forward earnings.
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Netflix, and Walt Disney. The Motley Fool recommends Discovery (C shares), T-Mobile US, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A $43 billion reduction in net debt will also help reduce AT&T's future interest expenses and bring the company's valuation more in line with other telecommunications players such as Verizon and T-Mobile. To replace a major chunk of Humira's lost sales post-patent expiry, the company has already launched two superior immunology drugs, Skyrizi and Rinvoq. Considering AbbVie's diversified product portfolio, balance-sheet strength, and high dividend yield, the company offers retail investors an attractive risk-reward proposition at a reasonable valuation of just 8.4 times forward earnings. | However, with total cash plus marketable securities worth $204 billion and total debt of only $12 billion, the company's balance sheet is strong enough to withstand any challenges. Despite the company trading at almost 24 times forward earnings, this tech stock can prove to be an attractive long-term investment for retail investors. The Motley Fool recommends Discovery (C shares), T-Mobile US, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | However, with total cash plus marketable securities worth $204 billion and total debt of only $12 billion, the company's balance sheet is strong enough to withstand any challenges. With total cash of $9.8 billion on its balance sheet and TTM free cash flow of $17.8 billion, this S&P Dividend Aristocrat (first as a part of Abbott Laboratories and then as an independent company post spinoff in 2008) seems capable of paying dividends for the foreseeable future. The Motley Fool recommends Discovery (C shares), T-Mobile US, and Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | In the first half of fiscal 2021, services' net sales were up 25% year over year to $32.7 billion. Despite the company trading at almost 24 times forward earnings, this tech stock can prove to be an attractive long-term investment for retail investors. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Netflix, and Walt Disney. |
32132.0 | 2021-05-22 00:00:00 UTC | Where to Invest $50,000...even if the Market Crashes | ABT | https://www.nasdaq.com/articles/where-to-invest-%2450000...even-if-the-market-crashes-2021-05-22 | nan | nan | If you have a big chunk of money to invest, you might be a bit hesitant about diving into the market right now. The S&P 500 lost 4% in just a few days earlier in the month. And the Nasdaq slid more than 6%. Both indexes have recovered some of those losses, but they're still struggling.
That doesn't mean you should stay out of the market. In fact, it's the perfect moment to invest. In some cases, you'll scoop up stocks at bargain prices. And as for stocks that haven't fallen much, you'll see they have the ability to hold up when times are tough. So, without further ado, let's take a look at how you might consider deploying $50,000 in the stock market right now.
Image source: Getty Images.
A few safe havens
It's always a smart idea to include a few "safe haven" stocks in your portfolio. By this, I mean those that offer a track record of profit and earnings performance -- and might even pay an interesting dividend. Often, healthcare companies fit the bill. People usually can't forgo their products and services, so even during difficult times, we can count on revenue growth. I would invest about $15,000 in these shares.
Johnson & Johnson (NYSE: JNJ) is a great example. Both annual profit and revenue have grown over time -- and today, they top $14 billion and $82 billion, respectively. The big pharma company has demonstrated its ability to reward long-term investors: The stock has climbed 160% over the past decade. J&J also is a member of the dividend elite: It's a Dividend King, meaning it has raised its dividend for at least 50 consecutive years.
Abbott Laboratories (NYSE: ABT) is another solid choice. The company sells medical devices, diagnostics, nutrition products, and pharmaceuticals. Abbott is benefiting now -- and probably into the foreseeable future -- through the sales of its COVID-19 tests. They generated $2.2 billion in revenue in the most recent quarter. Like J&J, the company has increased profit and revenue over time.
ABT Revenue (Annual) data by YCharts.
The stock has climbed more than 360% over the past 10 years. And it's lifted its dividend for more than 25 straight years, making it a Dividend Aristocrat.
Add growth to the mix
You can also include a couple of high-growth players in the mix if you're OK with a bit of risk. Moderna (NASDAQ: MRNA) is a biotech company with only one product on the market -- but it's a big one. Its coronavirus vaccine has already made the company profitable -- after just one full quarter of commercialization. Moderna's stock has climbed about 125% over the past year. But it doesn't seem expensive considering earnings; the stock trades at less than 7 times forward earnings estimates.
Your next step might be investment of about $15,000 in a basket of stocks that could benefit in a postpandemic world. Here, I'm thinking of entertainment giant Disney (NYSE: DIS) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK). Disney recently reopened its California parks, and with the June reopening of Disneyland Paris, all Disney parks will be back in business. Carnival said this week that three of its cruise line brands will resume U.S. sailings in July.
Now, when I say you might think about adding Amazon (NASDAQ: AMZN) and Target (NYSE: TGT) to this basket, you might say: Wait a minute -- they both benefited during the pandemic. True. But experts expect the popularity of e-commerce to continue. Target and Amazon are proving that's likely with strong first-quarter earnings reports. The retailers grew sales nearly 23% and 44%, respectively.
A superstar fund
Finally, I would take advantage of recent declines to invest about $10,000 in a fund or funds that have performed well over time. The one I'm thinking of right now is Ark Innovation ETF (NYSEMKT: ARKK). The extra bonus is that it's led by star investor Cathie Wood. The Ark Innovation Fund has climbed more than 480% over the past five years. That's versus a 183% gain for the Nasdaq. Since the start of the month, Ark Innovation has slipped about 11%.
What to do with the remaining money in your investment budget? Even if there are many opportunities to buy, I still would set aside $5,000 to $10,000 as an opportunity fund. I would use this cash in the coming weeks or months to add to previous positions or pick up shares of another company that wasn't on my radar earlier.
Of course, you don't have to have $50,000 to follow this plan. You can scale it down (or up) depending on your budget. And you can also adjust according to your comfort with risk. That's a key factor when building a portfolio.
So if you're a long-term investor, there are plenty of smart investment choices out there in this market downturn. And that will be the case even if the market crashes.
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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. Adria Cimino owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Walt Disney. The Motley Fool recommends Carnival, Johnson & Johnson, and Moderna Inc. 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. | Abbott Laboratories (NYSE: ABT) is another solid choice. ABT Revenue (Annual) data by YCharts. The big pharma company has demonstrated its ability to reward long-term investors: The stock has climbed 160% over the past decade. | Abbott Laboratories (NYSE: ABT) is another solid choice. ABT Revenue (Annual) data by YCharts. The big pharma company has demonstrated its ability to reward long-term investors: The stock has climbed 160% over the past decade. | Abbott Laboratories (NYSE: ABT) is another solid choice. ABT Revenue (Annual) data by YCharts. The big pharma company has demonstrated its ability to reward long-term investors: The stock has climbed 160% over the past decade. | Abbott Laboratories (NYSE: ABT) is another solid choice. ABT Revenue (Annual) data by YCharts. I would invest about $15,000 in these shares. |
32133.0 | 2021-05-21 00:00:00 UTC | 2 Stocks to Buy if a Market Crash Comes | ABT | https://www.nasdaq.com/articles/2-stocks-to-buy-if-a-market-crash-comes-2021-05-21 | nan | nan | As scary as market turbulence can be, the best investors know that when stocks take a plunge, there's money to be made. It isn't every day that you get to buy shares of great companies at a discount, and making the right moves in the aftermath of a crash can supercharge your portfolio's returns.
In this vein, crashes are an especially attractive time to buy rapidly growing stocks, as their prices will be freshly deflated from their potentially speculative highs. Similarly, dividend stocks are no-brainer buys after a crash, as investors get a higher yield for their dollar. Today, I'll be discussing one good option from each of these two categories -- and keeping my eye out for a day when I can scoop up their shares.
Image source: Getty Images.
1. Moderna
Moderna (NASDAQ: MRNA) is a household name thanks to its blockbuster coronavirus vaccine, and it's also one of the hottest stocks of this year. Its messenger RNA (mRNA) maven won Moderna a whopping $1.7 billion out of the company's $1.9 billion in total revenue during the first quarter. Management is already intent on throwing the vaccine proceeds into the next big thing by building out its pipeline and advancing more projects through clinical trials.
Given that most of the world remains unvaccinated against the coronavirus, it's hard to see how the company could fail to keep selling vaccines at a wild pace for at least the next year or two. If it turns out that a booster regimen of coronavirus jabs will be necessary, investors can be sure the company is positioned to profit. And after such a run of success, it's safe to say Moderna will be a powerful force in the biotechnology industry for quite some time.
It's this expectation of safety that could make it a counterintuitively risky investment in the near future. The market has likely priced in Moderna's newfound stardom as well as its ongoing rapid growth. So, if the company's earnings reports are great, but not as exceptional as many expect, its stock could become a victim of its own success. As time passes and competition in the coronavirus vaccine market grows more intense, that outcome will become more and more likely to occur. In contrast, after a crash, its value may be underestimated, especially if its rapid growth appears to be slowing.
In short, the main reason Moderna is worth buying if a crash comes is that it's a proven biotech. The fact that it is currently a bit overpriced across several metrics is thanks to its vaccine home run: Its trailing price-to-sales multiple is about 23, which is much higher than the biotechnology industry average of 8.09. Investors who buy the stock today could probably be getting more bang for their buck elsewhere, but this reality shouldn't scare you away forever. After a crash brings Moderna's share price back down to earth, that's much less likely to be the case.
2. Abbott Laboratories
The case for buying Abbott Laboratories (NYSE: ABT) after a correction or crash is a bit different than the case for Moderna. Abbott Labs' business is extremely broad, and it makes everything from continuous glucose monitors to coronavirus diagnostic tests, not to mention surgical tools and consumer health products. For many of these product categories, the company experiences very consistent levels of demand over time. Consistent demand is advantageous because it means that its free cash flows are also very consistent, which creates the financial strength necessary to pay a dividend.
Abbott's dividend yield at the moment is around 1.37%, which is nothing special at first glance. In the event of a crash, the yield would rise, which would make the stock more attractive. And, stocks that pay dividends tend to be somewhat less volatile than those that don't, meaning that the company could be better protected against residual turbulence. But more important than that is the fact that Abbott's dividend payment has risen consecutively for the last 49 years in a row, bringing it very close to Dividend King status.
At present, there's no indication of anything that could interrupt this streak, especially given that Abbott's quarterly earnings are expanding at a stunning 217.9% year over year. Its free cash flows have increased by nearly 58% in the last three years alone. Thus, buying the stock when it's down after a market collapse means that investors lock in the cumulative impact of future dividend increases while also securing a higher yield.
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Alex Carchidi owns shares of Abbott Laboratories. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories The case for buying Abbott Laboratories (NYSE: ABT) after a correction or crash is a bit different than the case for Moderna. In this vein, crashes are an especially attractive time to buy rapidly growing stocks, as their prices will be freshly deflated from their potentially speculative highs. Abbott Labs' business is extremely broad, and it makes everything from continuous glucose monitors to coronavirus diagnostic tests, not to mention surgical tools and consumer health products. | Abbott Laboratories The case for buying Abbott Laboratories (NYSE: ABT) after a correction or crash is a bit different than the case for Moderna. In this vein, crashes are an especially attractive time to buy rapidly growing stocks, as their prices will be freshly deflated from their potentially speculative highs. After a crash brings Moderna's share price back down to earth, that's much less likely to be the case. | Abbott Laboratories The case for buying Abbott Laboratories (NYSE: ABT) after a correction or crash is a bit different than the case for Moderna. Similarly, dividend stocks are no-brainer buys after a crash, as investors get a higher yield for their dollar. Moderna Moderna (NASDAQ: MRNA) is a household name thanks to its blockbuster coronavirus vaccine, and it's also one of the hottest stocks of this year. | Abbott Laboratories The case for buying Abbott Laboratories (NYSE: ABT) after a correction or crash is a bit different than the case for Moderna. Moderna Moderna (NASDAQ: MRNA) is a household name thanks to its blockbuster coronavirus vaccine, and it's also one of the hottest stocks of this year. 10 stocks we like better than Moderna Inc. |
32134.0 | 2021-05-19 00:00:00 UTC | Tech Stock Correction: Buy These 2 Healthcare Stocks on the Dip | ABT | https://www.nasdaq.com/articles/tech-stock-correction%3A-buy-these-2-healthcare-stocks-on-the-dip-2021-05-19 | nan | nan | Technology stocks aren't giving investors a reason to smile these days. The Nasdaq has dropped more than 5% over the past three weeks. And investors are starting to think more and more about when the next market crash may happen.
What to do in this kind of scenario? Buy more stocks. But not just any stocks. Take advantage of the dip to pick up shares of strong companies in a "safe haven" sector. Healthcare is my favorite. These companies usually sell products considered essential. So even in a turbulent environment, they have a good chance of maintaining revenue. Here are two to check out on the dip.
Image source: Getty Images.
Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) is the global leader in robotic surgery. Last year, the company held nearly 80% of the market, according to a report by BIS Research. The company sells the Da Vinci surgical system that's used for various minimally invasive procedures. Surgeons use the Da Vinci in areas including general surgery, gynecology, and urology.
Intuitive's annual revenue has soared to more than $4 billion over the past five years. And annual profit has surpassed $1 billion. Intuitive's earnings suffered last year as hospitals were forced to cancel many procedures to make room for coronavirus patients. However, this is only likely to happen during a pandemic -- not during other market downturns. So, I expect Intuitive to continue growing revenue even when the stock market crashes or the economy suffers.
The company recently reported an 18% increase in first-quarter revenue to more than $1.2 billion. Profit climbed 36% to $426 million. And, importantly, the company shipped 298 Da Vinci systems for a 26% increase year over year. New system orders are key to maintaining Intuitive's market share. But system sales isn't Intuitive's only revenue driver. In fact, the company actually generates more money through the sales of instruments, accessories, and services.
Intuitive's shares are down more than 5% since the start of the month. And year to date, they're little changed. With postponed surgeries being rescheduled and hospitals returning to normal business, revenue and profit should benefit in Intuitive's upcoming earnings reports. That means this dip in share price may not last very long.
Abbott
Abbott Laboratories' (NYSE: ABT) diversification makes it a great healthcare stock to own in good times and bad. The company sells medical devices, diagnostics, nutrition products, and pharmaceuticals. Diversification is the reason why the pandemic only hurt part of Abbott's business. Some lab tests were postponed as labs reduced certain operations. And the postponement of certain surgeries weighed on medical device sales. But Abbott's work to develop several coronavirus diagnostics compensated.
Looking ahead, Abbott continues to benefit from its coronavirus diagnostics and the return to normal for sales of other products. In the first-quarter earnings report, the company reported COVID-19 testing sales of more than $2.2 billion. At the same time, overall sales climbed about 35% to more than $10 billion. And sales in each of the four business units grew. Abbott predicts 35% growth in earnings per share to at least $5 for the full year.
Abbott now is thinking of the next stage of the coronavirus health crisis. And that has to do with the return of travel. The company has partnered with United Airlines to make Abbott's rapid self-test one travelers can pack -- then use prior to their return from an international trip. That way, travelers don't have to search for a testing center before flying home.
Abbott's shares are down about 6% from their April high. If Wall Street is right, they may climb 16% from today's level in the coming 12 months. And they're trading at 36 times trailing twelve-month earnings. That's down from more than 50 back in February. All of this means right now is a great time to pick up shares of this solid healthcare company -- and hold on to them well beyond the next market crash.
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Adria Cimino has no position in any of the stocks mentioned. 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. | Abbott Abbott Laboratories' (NYSE: ABT) diversification makes it a great healthcare stock to own in good times and bad. Intuitive's earnings suffered last year as hospitals were forced to cancel many procedures to make room for coronavirus patients. With postponed surgeries being rescheduled and hospitals returning to normal business, revenue and profit should benefit in Intuitive's upcoming earnings reports. | Abbott Abbott Laboratories' (NYSE: ABT) diversification makes it a great healthcare stock to own in good times and bad. With postponed surgeries being rescheduled and hospitals returning to normal business, revenue and profit should benefit in Intuitive's upcoming earnings reports. In the first-quarter earnings report, the company reported COVID-19 testing sales of more than $2.2 billion. | Abbott Abbott Laboratories' (NYSE: ABT) diversification makes it a great healthcare stock to own in good times and bad. Intuitive Surgical Intuitive Surgical (NASDAQ: ISRG) is the global leader in robotic surgery. With postponed surgeries being rescheduled and hospitals returning to normal business, revenue and profit should benefit in Intuitive's upcoming earnings reports. | Abbott Abbott Laboratories' (NYSE: ABT) diversification makes it a great healthcare stock to own in good times and bad. But system sales isn't Intuitive's only revenue driver. At the same time, overall sales climbed about 35% to more than $10 billion. |
32135.0 | 2021-05-18 00:00:00 UTC | Guardant Health Stock Looks Attractive After The Recent 16% Fall | ABT | https://www.nasdaq.com/articles/guardant-health-stock-looks-attractive-after-the-recent-16-fall-2021-05-19 | nan | nan | The stock price of Guardant Health (NYSE: GH), a healthcare company that offers non-invasive cancer diagnosis tests, has seen a large 16% drop in just five trading sessions. Earlier this month, the company reported its Q1 results, with revenues of $79 million, higher than the consensus estimates of $74 million, and loss of $0.49 per share, compared to the consensus estimate of $0.82 loss per share. The company’s revenue guidance of $360 to $370 million for the full year 2021, was also in-line with the consensus estimates of $367 million. Despite a Q1 beat, the stock has declined. SoftBank Vision Fund, a subsidiary of Japanese conglomerate Softbank Group, has cut its stake held in Guardant Health to 5.7% from 7.1% earlier. Also, one of the large research firms cut its price target for GH stock from $175 to $160 last week. Before the recent drop, GH stock had seen a large rally of 2.7x from levels of $60 seen in March 2020 to around $160 by the end of April 2021. This compares with an 86% rise in the broader S&P500 index. All these factors contributed to the drop seen in GH stock so far in the month of May.
But now that the stock has fallen 16% in just five days, will GH stock resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? We believe that the stock will rebound in the near term. Firstly, the company reported a solid Q1 and an upbeat guidance for the full-year, with y-o-y revenue growth of 26% to 29%. Secondly, Guardant recently announced a strategic collaboration with Daiichi Sankyo, in Japan to pursue regulatory approval and commercialization of the Guardant360 CDx blood test, being studied in the treatment of patients with lung cancer. This will allow the company to expand its international business. Guarant360 CDx is already approved by the U.S. FDA. Thirdly, the average price estimate for GH stock is $178, reflecting a large 58% premium to the current market price of $112. Lastly, GH stock has already seen a large correction in a matter of days, and using the recent trend (16% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that GH stock will likely move higher over the next one month (twenty-one trading days).
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for GH stock average around 2.5% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), slightly higher than the 1.9% expected return for the S&P500 over the next month (twenty-one trading days).
But how would these numbers change if you are interested in holding GH 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 Guardant Health 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 one day!
MACHINE LEARNING ENGINE – try it yourself:
IF GH stock moved by -5% over five trading days, THEN over the next twenty-one trading days, GH stock moves an average of 2.5%, which implies an excess return of 0.6% compared to the S&P500. More importantly, there is 59% probability of a positive return over the next twenty-one trading days and 57% probability of a positive excess return.
Some Fun Scenarios, FAQs & Making Sense of Guardant Health Stock Movements:
Question 1: Is the average return for Guardant Health stock higher after a drop?
Answer: Consider two situations,
Case 1: Guardant Health stock drops by -5% or more in a week
Case 2: Guardant Health stock rises by 5% or more in a week
Is the average return for Guardant Health stock higher over the subsequent month after Case 1 or Case 2?
GH stock fares better after Case 2, with an average return of 2.5% 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 5.6% 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 Guardant Health 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 Guardant Health 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 GH 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 Guardant Health 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 GH stock appears to be an exception to this general observation.
It’s pretty powerful to test the trend for yourself for Guardant Health stock by changing the inputs in the charts above.
While GH stock can see a rebound, it is helpful to see how its peers stack up. Guardant Health Stock Comparison With Peers summarizes how Guardant Health compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
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 Guardant Health (NYSE: GH), a healthcare company that offers non-invasive cancer diagnosis tests, has seen a large 16% drop in just five trading sessions. Secondly, Guardant recently announced a strategic collaboration with Daiichi Sankyo, in Japan to pursue regulatory approval and commercialization of the Guardant360 CDx blood test, being studied in the treatment of patients with lung cancer. Answer: If you buy and hold Guardant Health 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. | Earlier this month, the company reported its Q1 results, with revenues of $79 million, higher than the consensus estimates of $74 million, and loss of $0.49 per share, compared to the consensus estimate of $0.82 loss per share. Lastly, GH stock has already seen a large correction in a matter of days, and using the recent trend (16% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that GH stock will likely move higher over the next one month (twenty-one trading days). According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for GH stock average around 2.5% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), slightly higher than the 1.9% expected return for the S&P500 over the next month (twenty-one trading days). | Lastly, GH stock has already seen a large correction in a matter of days, and using the recent trend (16% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that GH stock will likely move higher over the next one month (twenty-one trading days). According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for GH stock average around 2.5% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), slightly higher than the 1.9% expected return for the S&P500 over the next month (twenty-one trading days). Answer: Consider two situations, Case 1: Guardant Health stock drops by -5% or more in a week Case 2: Guardant Health stock rises by 5% or more in a week Is the average return for Guardant Health stock higher over the subsequent month after Case 1 or Case 2? | The stock price of Guardant Health (NYSE: GH), a healthcare company that offers non-invasive cancer diagnosis tests, has seen a large 16% drop in just five trading sessions. Lastly, GH stock has already seen a large correction in a matter of days, and using the recent trend (16% fall in a week) and ten years of historical stock data, the Trefis AI engine finds that GH stock will likely move higher over the next one month (twenty-one trading days). According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for GH stock average around 2.5% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days), slightly higher than the 1.9% expected return for the S&P500 over the next month (twenty-one trading days). |
32136.0 | 2021-05-18 00:00:00 UTC | Here's Why Sarepta Stock Looks Attractive At $75 Levels | ABT | https://www.nasdaq.com/articles/heres-why-sarepta-stock-looks-attractive-at-%2475-levels-2021-05-19 | nan | nan | [Updated: 5/17/2021] SRPT Stock Update
Last month we discussed why the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, looked undervalued at $71, given the company’s solid pipeline. Earlier this month, the company announced positive results from phase two clinical trial of SRP-5051, used for a specific treatment for patients with Duchenne muscular dystrophy (DMD). The company with its existing drugs – Amondys, Exondys 51, and Vyondys 53 – can offer treatment to 30% of the DMD patients in the U.S. It also has multiple other drugs in development that will likely help gain market share in DMD treatment over the coming years.
The company also reported its Q1 results earlier this month. Sarepta’s Q1 revenue of $147 million reflect a 29% y-o-y growth, led by higher demand for its DMD treatments in the U.S. The revenue came in above the consensus estimate of $140 million for the quarter. Looking at the bottom line, adjusted loss of $1.54 per share was higher than $1.04 loss per share seen in the prior year quarter. The company saw an increase in operating expenses, primarily due to increased R&D investments, and licensing charges.
Given the recent developments, SRPT stock is up 7% so far this month, while it remains down over 50% year-to-date (our update on SRPT stock below provides more details). We continue to believe that SRPT stock is undervalued at the current levels, and it will likely see much higher levels going forward. Our dashboard ‘Buy Or Fear Sarepta Therapeutics Stock‘ provides the key numbers behind our thinking. Furthermore, the average analyst price estimate for SRPT stock is $134, reflecting a large premium of 76% over the current market price of $75.
[Updated: 4/21/2021] Buy Or Fear SRPT Stock?
We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. SRPT stock is down 20% off the March 2020 bottom compared to the S&P which has moved 85%. SRPT stock has significantly underperformed the broader markets, primarily due to a development around its pipeline. Earlier in January 2021 the company announced an unfavorable outcome from clinical trials for one of its drugs, SRP-9001, used for treating Duchenne muscular dystrophy (DMD), and SRPT stock crashed 52% in a single trading session following the announcement. However, now that the stock has corrected (down 40% in the last one year) despite revenue growing 42% y-o-y over the last four quarters, we believe SRPT stock is likely to see higher levels. Our dashboard ‘Buy Or Fear Sarepta Therapeutics Stock‘ provides the key numbers behind our thinking.
Looking at a longer time period, SRPT stock is actually down 35% from levels seen toward the end of 2018. The decline in stock price over the last two years or so can be attributed to unfavorable changes in the company’s P/S multiple. The company’s revenues have trended higher, rising 79% from $301 million in 2018 to $540 million in 2020, led by higher demand for its DMD treatments. While the company posted strong revenue growth over the recent years, it also issued more shares, resulting in a 18% jump in total shares outstanding. As such, on a per share basis, revenue grew 53% from $4.54 in 2018 to $6.93 in 2020. Despite the strong RPS growth, the company’s P/S multiple has actually contracted, falling from levels of over 24x seen between 2018 and 2020 to 10x currently.
Outlook
2020 has been a solid year for Sarepta’s revenue growth, courtesy of its DMD treatments. The development around SRP-9001 surely is negative for the company, as there will likely be a two year delay in the study, and a treatment from Pfizer is now expected to take the lead. However, Sarepta has a large pipeline with 42 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company announced positive results from clinical trials. Also, the U.S. FDA has approved Amondys 45, a drug used to treat certain patients with DMD. Amondys is the third drug from Sarepta, after Exondys 51 and Vyondys 53, all used for the treatment of DMD, and these combined cover 30% of the DMD patients in the U.S.
Looking forward, Sarepta will likely see an increase in demand for its DMD treatments, given the market is large, and it is expected to grow at a CAGR of 11% over the next few years. While the Covid-19 related lockdowns had earlier impacted expansion of several drugs in 2020, due to a delay in new patient enrollments, the trend has largely reversed over the recent months. Now that 40% of the U.S. population has already received at least one dose of a Covid-19 vaccine, the U.S. in particular is fast approaching toward normalcy. That said, any further recovery in the economy and its timing hinge on the broader containment of the coronavirus spread. We are now seeing a large spike in Covid-19 cases in some of the countries, such as India and Brazil, owing to the new variants of the virus. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia.
Finally, looking at the valuation, we believe that SRPT stock is undervalued at the current levels of $71. Currently, investors seem to be worried about the pipeline and revenue dependency only on DMD treatments. However, going by the numbers, Sarepta’s revenues are estimated to grow a solid 65% between 2020 and 2022. This means that on a per share basis, the company’s revenue will grow from $6.93 in 2020 to around $11.45 in 2022. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. To some extent the decline in the P/S multiple is justified given the delay in SRP-9001, but the selling now appears to be overdone, and we believe the stock will likely see a strong rebound in the near term.
While SRPT 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 Catalent vs. Emergent Biosolutions.
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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. | Earlier this month, the company announced positive results from phase two clinical trial of SRP-5051, used for a specific treatment for patients with Duchenne muscular dystrophy (DMD). However, Sarepta has a large pipeline with 42 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company announced positive results from clinical trials. While the Covid-19 related lockdowns had earlier impacted expansion of several drugs in 2020, due to a delay in new patient enrollments, the trend has largely reversed over the recent months. | [Updated: 5/17/2021] SRPT Stock Update Last month we discussed why the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, looked undervalued at $71, given the company’s solid pipeline. Sarepta’s Q1 revenue of $147 million reflect a 29% y-o-y growth, led by higher demand for its DMD treatments in the U.S. We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. | [Updated: 5/17/2021] SRPT Stock Update Last month we discussed why the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, looked undervalued at $71, given the company’s solid pipeline. We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. | It also has multiple other drugs in development that will likely help gain market share in DMD treatment over the coming years. Furthermore, the average analyst price estimate for SRPT stock is $134, reflecting a large premium of 76% over the current market price of $75. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. |
32137.0 | 2021-05-17 00:00:00 UTC | Noteworthy ETF Inflows: SPYG, NFLX, ABT, DHR | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-spyg-nflx-abt-dhr-2021-05-17 | 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 $129.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 175,550,000 to 177,750,000). Among the largest underlying components of SPYG, in trading today Netflix Inc (Symbol: NFLX) is off about 1.2%, Abbott Laboratories (Symbol: ABT) is off about 0.7%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $41.83 per share, with $61.09 as the 52 week high point — that compares with a last trade of $58.41. 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 Netflix Inc (Symbol: NFLX) is off about 1.2%, Abbott Laboratories (Symbol: ABT) is off about 0.7%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $41.83 per share, with $61.09 as the 52 week high point — that compares with a last trade of $58.41. 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 Netflix Inc (Symbol: NFLX) is off about 1.2%, Abbott Laboratories (Symbol: ABT) is off about 0.7%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $41.83 per share, with $61.09 as the 52 week high point — that compares with a last trade of $58.41. 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 Netflix Inc (Symbol: NFLX) is off about 1.2%, Abbott Laboratories (Symbol: ABT) is off about 0.7%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $129.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 175,550,000 to 177,750,000). 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 $41.83 per share, with $61.09 as the 52 week high point — that compares with a last trade of $58.41. | Among the largest underlying components of SPYG, in trading today Netflix Inc (Symbol: NFLX) is off about 1.2%, Abbott Laboratories (Symbol: ABT) is off about 0.7%, and Danaher Corp (Symbol: DHR) is lower by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— Portfolio S&P 500— Growth ETF (Symbol: SPYG) where we have detected an approximate $129.3 million dollar inflow -- that's a 1.3% increase week over week in outstanding units (from 175,550,000 to 177,750,000). 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 $41.83 per share, with $61.09 as the 52 week high point — that compares with a last trade of $58.41. |
32138.0 | 2021-05-16 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 5/16/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-john-neff-5-16-2021-2021-05-16 | 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., formerly HCA Holdings, Inc., is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. As of December 31, 2016, the American Group included 80 hospitals, which were located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. As of December 31, 2016, the Company operated six hospitals in England. The Company owns, manages or operates hospitals, freestanding surgery centers and freestanding emergency care facilities, walk-in clinics, diagnostic and imaging centers, 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
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
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. 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
Full Guru Analysis for SEM>
Full Factor Report for SEM>
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
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. 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
Full Guru Analysis for ABT>
Full Factor Report for ABT>
CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. The 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
Full Guru Analysis for CNC>
Full Factor Report for CNC>
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> CENTENE CORP (CNC) is a large-cap growth stock in the Healthcare Facilities industry. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. | 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 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 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 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> 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 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> 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. |
32139.0 | 2021-05-16 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Martin Zweig - 5/16/2021 | ABT | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-martin-zweig-5-16-2021-2021-05-16 | 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: 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>
LHC GROUP, INC. (LHCG) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Martin Zweig is 82% 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: LHC Group, Inc. is a holding company. The Company provides post-acute healthcare services to patients through its home nursing agencies, hospice agencies, community-based services agencies and long-term acute care hospitals (LTACHs). The Company operates through four segments: home health services, hospice services, community-based services and facility-based services. Through its home health services segment, the Company offers a range of services, including skilled nursing, medically oriented social services, and physical, occupational and speech therapy. Through its hospice services segment, the Company offers a range of services, including pain and symptom management, and emotional and spiritual support. Its community-based service operations offer a range of services to patients in their home or in a medical facility. The services range from assistance with grooming, medication reminders and meal preparation. It provides facility-based services principally through its LTACHs.
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: FAIL
LONG-TERM EPS GROWTH: PASS
TOTAL DEBT/EQUITY RATIO: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of LHC GROUP, INC.
Full Guru Analysis for LHCG>
Full Factor Report for LHCG>
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
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CORVEL CORPORATION (CRVL) is a mid-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: CorVel Corporation (Corvel) is a provider of workers' compensation solutions for employers, third party administrators, insurance companies and government agencies. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company's network solutions include bill review, preferred provider organization (PPO) management, professional review, provider reimbursement, pharmacy services, directed care services, medicare solutions and clearinghouse services. The Company's patient management services include claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management and auto claims management.
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: 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: PASS
INSIDER TRANSACTIONS: PASS
Detailed Analysis of CORVEL CORPORATION
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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 LHC GROUP, INC. Full Guru Analysis for LHCG> Full Factor Report for LHCG> 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> CORVEL CORPORATION (CRVL) 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 LHC GROUP, INC. Full Guru Analysis for LHCG> Full Factor Report for LHCG> 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> CORVEL CORPORATION (CRVL) is a mid-cap growth stock in the Healthcare Facilities industry. Detailed Analysis of MEDIFAST INC Full Guru Analysis for MED> Full Factor Report for MED> LHC GROUP, INC. (LHCG) is a mid-cap growth stock in the Healthcare Facilities industry. | The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. Detailed Analysis of LHC GROUP, INC. Full Guru Analysis for LHCG> Full Factor Report for LHCG> 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> CORVEL CORPORATION (CRVL) is a mid-cap growth stock in the Healthcare Facilities industry. | Detailed Analysis of LHC GROUP, INC. Full Guru Analysis for LHCG> Full Factor Report for LHCG> 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> CORVEL CORPORATION (CRVL) 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. |
32140.0 | 2021-05-16 00:00:00 UTC | 3 High-Yield Dividend Stocks I'd Buy Right Now | ABT | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-id-buy-right-now-2021-05-16 | nan | nan | Look up "yield" in the dictionary. One of the first definitions you'll find is something along the lines of to give up or surrender. Of course, investors have another meaning in mind when they think about yield. They're thinking about the dividends they can receive by buying stocks.
Unfortunately, the investing definition of yield sometimes comes joined at the hip with the surrender definition. Investors can at times feel like they have to give up a lot to gain a high dividend yield. That doesn't have to be the case, though. Here are three high-yield dividend stocks I'd buy right now.
Image source: Getty Images.
AbbVie
You won't have to give up much at all investing in AbbVie (NYSE: ABBV). The big drug stock offers income, value, and growth.
AbbVie's dividend yield currently stands at close to 4.5%. The company has increased its dividend by a whopping 225% since its spin-off from Abbott in 2013. It's also a Dividend Aristocrat with 49 consecutive annual dividend increases.
Many investors would also consider AbbVie a bargain. Its shares trade at a little over nine times expected earnings. That's well below the forward earnings multiple of 13.5 for the pharmaceutical companies in the S&P 500.
AbbVie should even deliver solid long-term growth. Granted, there will be a blip in 2023 when the company's top-selling drug Humira faces biosimilar rivals in the U.S. However, the company expects a quick rebound with strong revenue growth through the rest of the decade.
Easterly Government Properties
Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. It's a real estate investment trust (REIT) with a dividend yield of 5.2%. You can't count on annual dividend hikes with Easterly, but the payout is rock-solid.
As Easterly chairman Darrell Crate said in the company's Q1 conference call, "We're not a complicated story. We keep it simple. We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns."
Leasing properties to the U.S. government might not be super-exciting. However, it's super-safe. The rent always gets paid on time. If there's ever a point where Uncle Sam can't make a payment, the world has much bigger things to worry about than dividend yields.
This business model has worked really well for Easterly. The company has increased its funds from operations (FFO) at a compound annual growth rate of around 4% while paying a dividend yield that's typically close to 5%. That's the kind of boring stock that I suspect income-seeking investors will really like.
Enterprise Products Partners
Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry.
Volatility isn't always a negative thing, though. EPD's shares have soared more than 20% year to date with several factors driving fuel prices higher.
But does the shift to clean energy sources jeopardize EPD's prospects? Not anytime soon. The demand for fossil fuels is likely to continue increasing over the next several decades even as renewable energy gains additional traction. EPD views areas such as hydrogen and carbon capture and storage as opportunities rather than threats. The company could expand more into these technologies in the future.
I expect that the stock will remain volatile going forward. That's just the nature of the energy business. However, I also think that investors will be able to count on continued strong distributions from Enterprise Products Partners for years to come.
10 stocks we like better than Enterprise Products Partners
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Keith Speights owns shares of AbbVie and Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. 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. | We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns." The company has increased its funds from operations (FFO) at a compound annual growth rate of around 4% while paying a dividend yield that's typically close to 5%. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry. | Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. Enterprise Products Partners Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. | Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. Enterprise Products Partners Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of AbbVie and Enterprise Products Partners. | Its shares trade at a little over nine times expected earnings. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. |
32141.0 | 2021-05-15 00:00:00 UTC | These 3 Things Make a Healthcare Stock Evergreen | ABT | https://www.nasdaq.com/articles/these-3-things-make-a-healthcare-stock-evergreen-2021-05-15 | nan | nan | There isn't much that the best healthcare stocks have in common with firs and pines -- except, of course, being evergreen.
When the seasons change in the market, evergreen healthcare stocks stay as healthy and vibrant as always. While there's no expectation that these stocks will grow like weeds, they're far more hardy, and that makes them excellent investments to anchor your portfolio. Let's take a look at three competitive factors that I've found to be shared by the most consistent and formidable healthcare stocks.
Image source: Getty Images
1. Targeting markets that will never disappear
Some healthcare companies make a name for themselves by developing solutions to emergent problems -- like a vaccine or therapeutics to combat the coronavirus pandemic, for instance. As necessary as this type of work might be, the market for coronavirus products isn't going to always be as rapidly growing or as dynamic as it is right now. In fact, the more successful the vaccine manufacturers are at getting their jabs into arms, the faster the market's growth will taper.
In the long run, that's a problem for companies that are still in the process of getting their products through the clinical trials process. By the time their medicines get approved for sale, their addressable market will be smaller than when they started the projects, and it'll also be crowded with competitors.
In contrast, the most enduring healthcare stocks tend to target markets that are relatively timeless. As an example, Abbott Laboratories (NYSE: ABT) makes a plethora of different surgical tools like stents and catheters, all of which are going to be in demand for as long as people need surgeries. It also makes a bunch of different diagnostics that doctors will need to figure out what's going on with patients, which is a permanent feature of their jobs (to say the least).
Having such stable business as a fact of life means that Abbott can afford to pay its dividend each quarter and increase its dividend each year for the last 49 years in a row.
2. Having a strong competitive moat
Competitive moats are factors that make it harder for a company's competitors to take their market share. So, having more moats and stronger moats results in competitive advantages that drive a stock's growth and viability in the long term. For healthcare companies, moats can be anything from a unique product to intellectual property (IP) protections to high switching costs for customers to defect to a competitor.
Consider Intuitive Surgical (NASDAQ: ISRG), maker of the da Vinci robotic surgical suite. Intuitive has several different moats, the first of which is that surgeons need to be trained to use the da Vinci system specifically. This means that if hospitals want to switch from Intuitive's product to use another surgical suite, the surgeons will need to be retrained. In other words, there's a substantial time cost associated with switching to a competitor, which makes Intuitive's business more defensible.
Furthermore, Intuitive's robots are covered by intellectual property protection and trade secrets, and its brand is perhaps the most powerful in its market. In sum, its business is well-protected, and it doesn't have any threatening competitors of a similar size.
ABT Total Return Level data by YCharts
3. Constantly reinvesting in the future of the company
Investors love companies that perform stock buybacks and pay out dividends. But the best healthcare businesses prioritize investing in the company's ability to make more money tomorrow than it makes today. In the long run, reinvestment of earnings makes it easier to reward shareholders too.
Consider Abbott Labs. In 2020, it paid out $2.56 billion in dividends, and spent $173 million on share repurchases. It also spent $2.42 billion on research and development (R&D) in addition to repaying $1.3 billion in long-term debt. Despite spending a significant sum on rewarding its shareholders, Abbott spent even more on investing in future growth opportunities and supporting its future cash flows.
With R&D spending like that, it's no surprise that the company can develop so many new products. More importantly, its commitment to the future is one thing that it has in common with other evergreen healthcare stocks.
10 stocks we like better than Abbott Laboratories
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Alex Carchidi owns shares of Abbott Laboratories. 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. | As an example, Abbott Laboratories (NYSE: ABT) makes a plethora of different surgical tools like stents and catheters, all of which are going to be in demand for as long as people need surgeries. ABT Total Return Level data by YCharts 3. Targeting markets that will never disappear Some healthcare companies make a name for themselves by developing solutions to emergent problems -- like a vaccine or therapeutics to combat the coronavirus pandemic, for instance. | As an example, Abbott Laboratories (NYSE: ABT) makes a plethora of different surgical tools like stents and catheters, all of which are going to be in demand for as long as people need surgeries. ABT Total Return Level data by YCharts 3. Consider Intuitive Surgical (NASDAQ: ISRG), maker of the da Vinci robotic surgical suite. | As an example, Abbott Laboratories (NYSE: ABT) makes a plethora of different surgical tools like stents and catheters, all of which are going to be in demand for as long as people need surgeries. ABT Total Return Level data by YCharts 3. Having a strong competitive moat Competitive moats are factors that make it harder for a company's competitors to take their market share. | As an example, Abbott Laboratories (NYSE: ABT) makes a plethora of different surgical tools like stents and catheters, all of which are going to be in demand for as long as people need surgeries. ABT Total Return Level data by YCharts 3. In other words, there's a substantial time cost associated with switching to a competitor, which makes Intuitive's business more defensible. |
32142.0 | 2021-05-14 00:00:00 UTC | 3 Dividend Stocks That Pay You Better Than Coca-Cola Does | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-that-pay-you-better-than-coca-cola-does-2021-05-14 | nan | nan | It's hard to find many chinks in the armor of Coca-Cola's (NYSE: KO) renowned dividend. The company has raised it for 59 consecutive years, and at current share prices, it delivers a yield of 3%, well above the S&P 500's average yield of 1.38%.
However, when you compare it as an income investment to a few of its fellow Dividend Aristocrats such as AbbVie (NYSE: ABBV), Kimberly-Clark (NYSE: KMB), and Chevron (NYSE: CVX), it fizzles out. Each of them boasts a better yield right now than the beverage giant, and each has a stronger record of payout raises over the past three years. I also see more room for their share prices to grow in the coming year.
Image source: Getty Images
1. Chevron is poised to bounce back
Last year was horrible for oil companies, but despite its lagging revenue, Chevron last month announced that it was raising its quarterly dividend by 4% to $1.34 per share, making this the 34th consecutive year that the company has hiked its payout. At Tuesday's closing price of $106.70, the company's dividend yield was 5.02%.
In the past three years, the company, which has worldwide upstream and downstream operations in oil and natural gas, has increased its dividend by 19.64%, more than double Coca-Cola's 7.69% payout growth over that period.
Chevron's Q1 earnings were still down by 47% year over year, but with earnings of $1.37 billion, it was the first quarter since before the pandemic that the company recorded a profit. Its cash flow remained strong at $4.2 billion, down from $4.7 billion a year ago. With the price of crude now around $64 a barrel, more than $40 above where it was a year ago, this looks like a good time to jump in on the stock before it takes off.
Despite the company's sluggish 2020 results, its share price is up by more than 17% over the past year. Chevron's most promising news from last quarter was regarding its upstream operations (the exploration and production of crude oil and natural gas). For that business, the company reported earnings of $941 million compared to $241 million in the same quarter in 2020.
KO Dividend data by YCharts
2. Kimberly-Clark's dividend is on a roll
Consumer goods giant Kimberly-Clark is best-known for brands such as Kleenex tissues, Huggies diapers, and Scott toilet paper. People stocked up on items like those early in the pandemic in surges of panic buying that boosted the company's bottom line then, but as a result, its first-quarter 2021 numbers look low by comparison.
The company posted sales of $4.7 billion in the quarter, down 5% year over year. Net income fell 12% to $584 million. However, if you compare the recently reported quarter to the same period of 2019, it becomes obvious that 2020's numbers were the outliers. In Q1 2019, the company posted $4.6 million in sales, while net income was $454 million, 28% lower than this year's first quarter.
Kimberly-Clark's forecast for the rest of the year is conservative. Management predicts net sales will grow by 3% to 5%, down from an earlier estimate of 4% to 6%. It also said it expects organic sales growth of between 0% and 1%, compared to a prior prediction for growth in the 1% to 2% range.
The stock has only risen 1% over the past three months, so if you're looking for booming share price growth, Kimberly Clark isn't for you. But if you want a solid, well-covered dividend, you've come to the right place. The company raised its quarterly payout by 6.5% to $1.14 per share this year, making 2021 its 49th consecutive year of dividend hikes. At Tuesday's stock price, that dividend yields 3.40%.
Over the past three years, Kimberly Clark has raised its dividend by a solid 14%, and with a cash dividend payout ratio of 66.56% (TTM), it has plenty of room to keep boosting it.
3. AbbVie is looking past the Humira patent cliff
Pharmaceutical company AbbVie has a dividend with a yield of 4.53% at Tuesday's share price. And for its first payment of 2021, it raised its quarterly payout by 10.5% to $1.30 per share. Because it was part of Abbott Laboratories until 2013, it is considered a Dividend Aristocrat with 49 consecutive years of dividend increases. But even if you restrict yourself to counting only from the point at which it was spun off, it has an impressive payout history. AbbVie has raised its dividend by 225% since it hit the market, and over the past three years alone, has raised it by 35.42%.
Many investors are concerned about how the company will fare after its key blockbuster drug, Humira, loses patent protection in 2023, but for now, the popular immunosuppressive continues to rake it in, with $4.8 billion in revenue in the first quarter. However, there are plenty of other profitable drugs in its catalog: AbbVie reported $13 billion in revenue in Q1, up 51% year over year.
Humira may still be the company's biggest earner, but in their first years on the market, two of its other immunology drugs, Skyrizi and Rinvoq, brought in revenues of $574 million and $303 million, respectively. Thanks to the company's purchase of Allergan, it also has a cash cow in Botox: Botox therapeutic booked $532 million in revenue in the first quarter while Botox cosmetic brought in $477 million.
Even with the looming sales decline for Humira after generic versions hit the market, between the company's current catalog and the potential of the candidates in its pipeline, it should keep pulling in the cash. And for now, AbbVie's dividend is the best-covered of the three discussed here, with a 46.52% cash payout ratio (TTM). The stock is up by more than 9% this year.
Making the best choice
All three of these stocks have better dividend yields than Coca-Cola, and better recent records of payout increases.
However, the one that stands out to me is AbbVie. It has the best forward price-to-earnings (P/E) ratio of the group at 9., which indicates that the long-term concerns about Humira's sales decline have been largely priced into the stock. Meanwhile, the company has delivered double-digit percentage dividend hikes for two years running. Chevron also provides a great opportunity, with recent trends pointing toward a rise in oil prices that will help the company and the stock.
Kimberly Clark will no doubt cover its dividend as well, considering its strong cash flow, but it will be hard for the company to match last year's sales, and that could hurt its share price.
10 stocks we like better than Chevron
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Chevron wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Jim Halley owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the past three years, the company, which has worldwide upstream and downstream operations in oil and natural gas, has increased its dividend by 19.64%, more than double Coca-Cola's 7.69% payout growth over that period. Many investors are concerned about how the company will fare after its key blockbuster drug, Humira, loses patent protection in 2023, but for now, the popular immunosuppressive continues to rake it in, with $4.8 billion in revenue in the first quarter. Kimberly Clark will no doubt cover its dividend as well, considering its strong cash flow, but it will be hard for the company to match last year's sales, and that could hurt its share price. | The company raised its quarterly payout by 6.5% to $1.14 per share this year, making 2021 its 49th consecutive year of dividend hikes. Over the past three years, Kimberly Clark has raised its dividend by a solid 14%, and with a cash dividend payout ratio of 66.56% (TTM), it has plenty of room to keep boosting it. However, there are plenty of other profitable drugs in its catalog: AbbVie reported $13 billion in revenue in Q1, up 51% year over year. | Chevron is poised to bounce back Last year was horrible for oil companies, but despite its lagging revenue, Chevron last month announced that it was raising its quarterly dividend by 4% to $1.34 per share, making this the 34th consecutive year that the company has hiked its payout. The company raised its quarterly payout by 6.5% to $1.14 per share this year, making 2021 its 49th consecutive year of dividend hikes. Over the past three years, Kimberly Clark has raised its dividend by a solid 14%, and with a cash dividend payout ratio of 66.56% (TTM), it has plenty of room to keep boosting it. | The company raised its quarterly payout by 6.5% to $1.14 per share this year, making 2021 its 49th consecutive year of dividend hikes. At Tuesday's stock price, that dividend yields 3.40%. The stock is up by more than 9% this year. |
32143.0 | 2021-05-12 00:00:00 UTC | 7 Great Growth Stocks to Consider for Your Short List | ABT | https://www.nasdaq.com/articles/7-great-growth-stocks-to-consider-for-your-short-list-2021-05-12 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks are a critical part of your portfolio. These are the companies that have outpaced the rest, delivering big returns to investors.
While past growth is a good sign, it’s in the past. You want to make sure the high growth stocks in your portfolio are positioned to continue delivering big gains. With that in mind, I’ve selected seven great growth stocks.
7 of the Best Pharma Stocks to Buy Now
Each offers that ideal combination of past performance and a high likelihood for big gains going forward.
Abbot Laboratories (NYSE:ABT)
Apple (NASDAQ:AAPL)
Broadcom (NASDAQ:AVGO)
Nvidia (NASDAQ:NVDA)
Paypal (NASDAQ:PYPL)
Qualcomm (NASDAQ:QCOM)
United Parcel Service (NYSE:UPS)
The list is a little heavy on the tech side. That’s only natural, because the technology sector has spawned so many high growth stocks. However, there’s a little something here for everyone.
Growth Stocks: Abbot Laboratories (ABT)
Source: Sundry Photography/Shutterstock.com
Abbot Laboratories produces a wide range of high-tech medical devices. Products like diagnostic equipment, remote heart monitors, chronic pain treatment and diabetes management systems — including a glucose monitoring technology that eliminates the need for pinpricks. The company also produces a range of popular health nutrition products including Pedialyte, Similac and Ensure.
Over the past five years, ABT stock has delivered a return of 216%. That’s nothing to sneeze at. That’s especially true given our aging population, rising diabetes and heart disease rates. As well as the recent push to cut down on subscribing opioids for chronic pain management. All of these factors will add to ongoing growth potential for ABT stock.
As if that weren’t enough, the company just launched three different novel coronavirus testing solutions. The future looks bright for a company like Abbot Laboratories that is focused on diagnosing and managing these conditions.
ABT stock earns a Total Grade of ‘B’ in Portfolio Grader.
Apple (AAPL)
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Source: ZorroGabriel / Shutterstock.com
Apple is the most valuable publicly traded company in U.S. history. Its market cap is now $2.17 trillion, less than 3 years after it hit the $1 trillion milestone. That is the very definition of spectacular growth.
2021 has been considerably less impressive. After a bit of a roller coaster ride, AAPL stock is about where it started the year (hint: that makes it very tempting). However, look at what the company did in its latest quarter. Revenue of $89.6 billion, up 54% year over year. A commitment to increasing its share buyback program by $90 billion. And the company is far from sitting still. From 5G iPhones to the new M1 processors powering its MacBook, iMacs and the latest iPad Pros, Apple keeps moving forward.
Apple also has category-leading products in its lineup that dominate the competition, but are early in their lifecycle. They have years of growth ahead. Think AirPods and Apple Watch. Then there are the new products we know the company is working on for future release, including AR glasses and Project Titan — Apple’s long-awaited entrant to the EV market.
Oh, and on top of the physical products are the services. Apple Pay, AppleTV+, the App Store and others generated $16.9 billion in revenue last quarter, up 27% YoY. I think it’s fair to expect AAPL stock will continue to be a growth stock for the foreseeable future.
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Apple stock currently holds a ‘B’ rating in Portfolio Grader.
Growth Stocks: Broadcom (AVGO)
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Source: Sasima / Shutterstock.com
I like Broadcom because the company does so much in the technology space, but often flies under the radar. The company sells a wide range of semiconductors and hardware that cover many applications: storage, networking, wireless and optical among them.
Broadcom chips and patented technology are found in a huge range of consumer and enterprise gear ranging from Bluetooth chips in smartphones and smart audio devices, to fiber optic networking switches.
In addition, Broadcom has a large range of mainframe software applications, along with enterprise software solutions. Broadcom also owns the popular Symantec cyber security brand. And cyber security is becoming more important than ever. AVGO stock has posted growth of 223% over the past 5 years, but the rate has accelerated over the past year.
At this point, AVGO stock carries a ‘B’ rating in Portfolio Grader.
Nvidia (NVDA)
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Source: Steve Lagreca / Shutterstock.com
Nvidia investors have seen their shares appreciate in value by an incredible 1,356% over the past five years. This is a poster child for growth stocks. However, the ride wasn’t entirely smooth.
In 2018, NVDA stock dropped after a cryptocurrency crash left the company with a glut of unsold graphics cards. This time around, Nvidia has released a GPU specifically for those crypto miners. That way the company can take advantage of the demand for its graphics cards for crypto mining, without impacting availability for the general public.
The demand is huge for these new RTX 3000 series cards. PC gamers are standing in line for them. That demand isn’t going away any time soon. And with the growth in popularity of PC gaming, Nvidia is going to be selling new graphics cards far into the future.
Then there’s the demand for GPUs (which use parallel processing) for high-tech applications like AI, machine learning and autonomous driving. All of these areas are in growth mode and that will only accelerate — keeping up the high demand for Nvidia chips as they do so.
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NVDA stock’s Total Grade in Portfolio Grader is a ‘B.’
Growth Stocks: PayPal (PYPL)
PayPal was in the perfect position at the start of the pandemic. The world’s most popular online payment option, a contact-free payment solution and its Venmo cash app were in hot demand when online shopping spiked in popularity, while cash was avoided.
PYPL was already firmly in growth stock territory. However, with the pandemic driving usage and big subscriber growth, the company reported 2020 was the strongest performance in its history. Transaction volume over the PayPal network was up 31%, revenue was up 21% and PayPal added 72.7 million new active accounts.
It’s little wonder that PYPL stock closed 2020 with a 77% gain.
Look for those millions of additional users to keep revenue growth going strong. In addition, PayPal is now allowing its users to trade cryptocurrency and to pay for purchases at millions of online merchants using their crypto holdings. That’s not just good news for cryptocurrencies — which always faced challenges when it came to spending them — it’s also expected to add more fuel to the PYPL stock growth story.
PayPal shares currently have a Total Grade of ‘B’ in Portfolio Grader.
Qualcomm (QCOM)
Source: jejim / Shutterstock.com
After several rough years (more on that shortly), the past two have been very good for Qualcomm. As a result, QCOM stock is up 169% over the past 5 years — with most of that growth coming over the past 2 years.
The reason for the tough years was a protracted legal battle between Apple and Qualcomm. The fight over royalty payments was expensive and cost Qualcomm one of its biggest clients. That is, until April, 2019 when the two companies reached a surprise settlement. Apple agreed to pay Qualcomm the royalties it had been withholding, while also signing up to use Qualcomm 5G modems in the iPhone for the next 6 years. News of that settlement sent QCOM stock to a 23% single-day gain.
Thanks to its patent portfolio, Qualcomm collects a royalty off every smartphone sold, regardless of who makes the modem. Qualcomm’s business isn’t all modems, of course. Its Snapdragon CPUs power the majority of Android smartphones and you’ll find QCOM chips in popular products like wireless earbuds.
The company’s future looks good. The Wall Street Journal is tracking 29 investment analysts who offer QCOM coverage. They have this growth stock rated as a consensus “Overweight” with an average $172.70 price target, which would offer 12-month upside of 25%.
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QCOM stock is rated ‘B’ in Portfolio Grader.
Growth Stocks: UPS (UPS)
Source: Sundry Photography / Shutterstock.com
Finally, another company that has seen its growth picture dramatically changed by the pandemic. For most of the past 5 years, UPS stock has been flat. No-one would have considered it a growth stock.
Then the pandemic hit and suddenly everyone was shopping online. All those packages needed to be delivered. Much of that volume went to UPS. The company reported its highest revenue ever in 2020, along with the highest adjusted earnings per share in company history. That powered UPS stock to 85% growth in 2020.
The future looks bright for this shipping company, even as vaccines promise to re-open countries. Now that they have a taste for the convenience of online shopping, it’s expected that consumers will continue to do so at a much higher levels than pre-pandemic. That spells a continuation of the business boost for UPS, and continued growth for UPS stock.
One of the few companies on this list of growth stocks to not be involved in technology, UPS stock is also the lone Portfolio Grader ‘A’ rating holder.
On the date of publication, Louis Navellier had a long position in AVGO, NVDA and PYPL. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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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. | Abbot Laboratories (NYSE:ABT) Apple (NASDAQ:AAPL) Broadcom (NASDAQ:AVGO) Nvidia (NASDAQ:NVDA) Paypal (NASDAQ:PYPL) Qualcomm (NASDAQ:QCOM) United Parcel Service (NYSE:UPS) The list is a little heavy on the tech side. Growth Stocks: Abbot Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbot Laboratories produces a wide range of high-tech medical devices. Over the past five years, ABT stock has delivered a return of 216%. | Abbot Laboratories (NYSE:ABT) Apple (NASDAQ:AAPL) Broadcom (NASDAQ:AVGO) Nvidia (NASDAQ:NVDA) Paypal (NASDAQ:PYPL) Qualcomm (NASDAQ:QCOM) United Parcel Service (NYSE:UPS) The list is a little heavy on the tech side. Growth Stocks: Abbot Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbot Laboratories produces a wide range of high-tech medical devices. Over the past five years, ABT stock has delivered a return of 216%. | Abbot Laboratories (NYSE:ABT) Apple (NASDAQ:AAPL) Broadcom (NASDAQ:AVGO) Nvidia (NASDAQ:NVDA) Paypal (NASDAQ:PYPL) Qualcomm (NASDAQ:QCOM) United Parcel Service (NYSE:UPS) The list is a little heavy on the tech side. Growth Stocks: Abbot Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbot Laboratories produces a wide range of high-tech medical devices. Over the past five years, ABT stock has delivered a return of 216%. | Abbot Laboratories (NYSE:ABT) Apple (NASDAQ:AAPL) Broadcom (NASDAQ:AVGO) Nvidia (NASDAQ:NVDA) Paypal (NASDAQ:PYPL) Qualcomm (NASDAQ:QCOM) United Parcel Service (NYSE:UPS) The list is a little heavy on the tech side. Growth Stocks: Abbot Laboratories (ABT) Source: Sundry Photography/Shutterstock.com Abbot Laboratories produces a wide range of high-tech medical devices. Over the past five years, ABT stock has delivered a return of 216%. |
32144.0 | 2021-05-10 00:00:00 UTC | Can Dexcom Stock Rebound After The Recent 11% Drop? | ABT | https://www.nasdaq.com/articles/can-dexcom-stock-rebound-after-the-recent-11-drop-2021-05-10 | nan | nan | 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. | The recent drop is surprising, given that the company last week reported its Q1 numbers, which were actually above the street estimates. This historical pattern reflects 48 out of 75, or about a 64% chance of gain in DXCM stock over the coming month. 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. | 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. | 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. | 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. 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). |
32145.0 | 2021-05-10 00:00:00 UTC | What's Next For Illumina Stock After The Recent 7% Drop? | ABT | https://www.nasdaq.com/articles/whats-next-for-illumina-stock-after-the-recent-7-drop-2021-05-10 | nan | nan | [Updated: 5/6/2021] Illumnia Stock Average Return
The stock price of Illumina (NASDAQ: ILMN), a gene sequencing company, has seen a 7% drop in just five trading sessions. The decline is largely surprising given that the company’s Q1 results (declared on April 27) were better than the street estimates. The company reported revenues of $1.1 billion, in-line with the consensus estimates, while its adjusted EPS of $1.89 per share was much better than the $1.36 consensus estimates. More importantly, the company’s guidance for the full-year 2021, with revenue growth to be 25% to 29%, and earnings to be between $5.80 and $6.05 per share, were well above the consensus estimates of 24% revenue growth and $5.56 adjusted EPS.
Despite a Q1 beat, Illumina has seen its share price decline over the last week (five trading sessions). The only negative from the earnings announcement was the margin contraction. Illumina has been investing more into R&D and its SG&A expenses also rose in Q1, pushing the overall operating costs by 33%, compared to a 27% growth in the top-line.
But now that the stock has fallen over 7% in just five days, will ILMN stock resume its downward trajectory over the coming weeks, or is a rise in the stock imminent? We believe that the stock will rebound in the near term. Firstly, the company’s Q1 performance was solid and it also revised its full-year guidance upward. Secondly, the company is seeing strong demand for its NovaSeq 6000, the company’s new genome sequencing device, which was launched in August 2020, and this trend is expected to continue in the near term. In fact, Illumina’s Q1 2021 marked its highest first-quarter placements of NovaSeq. Lastly, using the recent trend and ten years of historical stock data, the Trefis AI engine finds that ILMN stock will likely move higher over the next one month (twenty-one trading days), slightly outperforming the broader indices.
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for ILMN stock average around 2.2% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days). Notably, though, the stock is likely to beat S&P500 returns by 0.4% over the next month (twenty-one trading days).
But how would these numbers change if you are interested in holding ILMN 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 one day!
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 2.2% 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 4.4% 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 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!
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 can see a rebound, it is helpful to see how its peers stack up. Check out Illumina Stock Comparison With Peers to see how ILMN stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
[Updated: 3/24/2021] Boston Scientific Vs. Illumina
We think that Boston Scientific (NYSE:BSX) currently is a better pick compared to Illumina (NASDAQ:ILMN). BSX stock trades at about 5.6x trailing revenues, compared to around 18.8x for ILMN. Does this gap in Illumina’s valuation make sense? Actually, to some extent it does, comparing the past performance of these two companies. However, we believe that this gap will narrow going forward in favor of Boston Scientific. While business for both the companies have been hit during the pandemic, due to deferment of elective surgeries, it is expected to see a sharp rebound in 2021, with containment of the Covid-19 virus.
Illumina’s sequencing systems have a base of over 15,000 units currently and it has seen strong growth over the recent years, given the limited competition. Looking at Boston Scientific, the sales growth over the recent years (barring 2020, which was impacted by the pandemic) has largely been driven by higher demand for its neuromodulation and peripheral intervention, which includes stents, balloon catheters, and peripheral embolization devices, among other products. The demand for these products is largely linked to the total volume of procedures performed, which was adversely impacted in 2020. Boston Scientific has come up with several new products, including Watchman FLX, Exalt, Polarx, and WaveWriter Alpha, among others, and it has been gaining market share from the likes of Medtronic. This trend is expected to continue, boding well for BSX stock over the coming years. However, there is more to the comparison between Illumina and Boston Scientific. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating income and operating margin growth. Our dashboard Boston Scientific vs. Illumina: BSX stock looks undervalued compared to ILMN stock has more details on this. Parts of the analysis are summarized below.
1. Revenue Growth
Between 2017 and 2020, Boston Scientific’s revenues grew by about 10% from $9.0 billion in 2017 to $9.9 billion in 2020. Note that 2020 revenues declined 7% y-o-y due to the impact of the pandemic on the company’s business. Looking at Illumina, total revenue grew 14% from $2.8 billion in 2017 to $3.2 billion in 2020, which also reflected a high single-digit y-o-y decline.
2. Operating Income
Boston Scientific’s operating income declined from $1.4 billion in 2017 to $-0.5 billion in 2020, due to a sharp decline in operating margins from 15% in 2017 to -5% in 2020, due to increased operating costs during the pandemic and increased R&D investments. Looking at Illumina, the operating income declined from $606 million in 2017 to $580 million in 2020, due to a contraction in margins from 23% to 18% over the same period. Now, Illumina’s operating margin has been better than Boston Scientific over the last twelve month period as well as over the recent years. Also, Illumina’s margins have been on an upward trajectory till before the pandemic.
The Net of It All
Illumina is a leader in the sequencing systems and it is likely to continue to see expansion of its base. Illumina’s revenue growth, operating income growth, and operating margins, all compare favorably with Boston Scientific over the recent years, and this has been rewarded by the investors in the form of a high multiple that ILMN stock trades at. However, as we look forward, Boston Scientific will likely continue to expand its offerings and gain market share over the coming years, though the company faces stiff competition from Medtronic and Abbott. Illumina will see increased competition in the sequencing market, with companies such as Pacific Biosciences of California also expanding their installed base, and comparatively smaller companies, including Rosewell Biotechnologies making inroads to offer less expensive sequencing options. Also, Oxford Nanopore Technologies has been gaining attention for its different approach to sequencing. We believe that an increased competition will weigh on the multiple that ILMN stock currently enjoys. As such, we believe that the valuation gap between Boston Scientific and Illumina will narrow going forward and BSX stock will offer better returns for long-term investors.
While BSX stock looks like it can gain more, 2020 has also created many pricing discontinuities that can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Becton Dickinson vs. Abbott.
See all Trefis Price Estimates and Download Trefis Data here
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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. Boston Scientific has come up with several new products, including Watchman FLX, Exalt, Polarx, and WaveWriter Alpha, among others, and it has been gaining market share from the likes of Medtronic. However, as we look forward, Boston Scientific will likely continue to expand its offerings and gain market share over the coming years, though the company faces stiff competition from Medtronic and Abbott. | According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for ILMN stock average around 2.2% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days). Operating Income Boston Scientific’s operating income declined from $1.4 billion in 2017 to $-0.5 billion in 2020, due to a sharp decline in operating margins from 15% in 2017 to -5% in 2020, due to increased operating costs during the pandemic and increased R&D investments. Illumina’s revenue growth, operating income growth, and operating margins, all compare favorably with Boston Scientific over the recent years, and this has been rewarded by the investors in the form of a high multiple that ILMN stock trades at. | According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for ILMN stock average around 2.2% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a 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? Illumina’s revenue growth, operating income growth, and operating margins, all compare favorably with Boston Scientific over the recent years, and this has been rewarded by the investors in the form of a high multiple that ILMN stock trades at. | According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using historical stock data, returns for ILMN stock average around 2.2% in the next one-month (twenty-one trading days) period after experiencing a 5% fall in a week (five trading days). Note that 2020 revenues declined 7% y-o-y due to the impact of the pandemic on the company’s business. Illumina’s revenue growth, operating income growth, and operating margins, all compare favorably with Boston Scientific over the recent years, and this has been rewarded by the investors in the form of a high multiple that ILMN stock trades at. |
32146.0 | 2021-05-08 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock in 2021? | ABT | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock-in-2021-2021-05-08 | nan | nan | AbbVie (NYSE: ABBV) is one of the newer pharmaceutical companies to take the market by storm. Spun off in 2013 from its parent company, Abbott Labs, it sits at a tremendous market capitalization of a little over $200 billion. The stock has still about 5% off its all-time highs from 2018, and if AbbVie's recent first-quarter earnings tell us anything, it's that the stock can go even higher.
Image source: Getty Images
Earnings beat
AbbVie reported its first-quarter earnings last week, and beat analyst estimates on most metrics. AbbVie outperformed on both non-GAAP and GAAP earnings per share by $0.12 and $0.52, respectively. The company was also up 50.9% from 2020 to 2021 in its Q1 revenue, coming in at a little over $13 billion. Although many analysts are still skeptical of AbbVie because of the patent cliff on its biggest drug Humira, it still managed to blow away earnings. So is the fear really warranted?
Pipeline success
Since its spinoff in 2013, AbbVie has had a lot of success with its pipeline. It currently markets the best-selling drug in the world, Humira, which is used to treat illnesses like Crohn's disease, rheumatoid arthritis, plaque psoriasis, and psoriatic arthritis. Humira has held this market-leading position for the past few years, and brought in $19.8 billion in adjusted net revenue in 2020.
To ease concerns about Humira's patent cliff coming in 2023, AbbVie has made acquisitions as well as developments in its own pipeline to diversify and drive growth. In 2019, AbbVie acquired Allergan and its portfolio of products, including Botox, eye care products, and women's health products.
AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. Both Skyrizi and Rinvoq more than doubled their annual sales from 2019 to 2020.
The company is also diversified across its different business segments, which include immunology, oncology, aesthetics, neuroscience, and eye care. Out of the $34 billion made in 2020, these businesses brought in 52%, 14.6%, 4%, 8.2%, and 4.1%, respectively. Growth from Humira and AbbVie's various businesses has contributed to the recent revenue growth of 47.4% in the last year, as well as an almost 13% revenue growth over the last five years.
The future pipeline for AbbVie includes dozens of filings for indications to treat using drugs Skyrizi and Rinvoq. It also has dozens of other smaller therapeutics being reviewed to treat different types of indications in immunology, oncology, and neuroscience.
The key drivers for AbbVie's future revenue streams will come from Skyrizi and Rinvoq, but products like Imbruvica and Botox will hold steady places in the businesses until those new drugs will be able to drive the bulk of future growth. In a not-too-distant future, AbbVie will not be able to rely solely on Humira to generate a lot of revenue. Its other drugs and businesses look more than ready to carry the company forward.
A buy at these levels
The great numbers AbbVie reported in earnings have contributed to a rise in the stock of almost 7% since the beginning of April. However, AbbVie is still trading at a cheaper valuation than it was a few months back, currently with a forward price-to-earnings (P/E) ratio of just nine. The valuation is much cheaper compared to the nearly 10.4 P/E it was trading for just a few months back.
Taking 2021's projected EPS of $12.52 gives us a share price of $131, offering investors a great opportunity to buy the stock while it's trading at a discount. Growing revenue, pipeline expansion, and a cheap valuation are reasons investors shouldn't wait to pull the trigger on AbbVie. This best-of-breed pharmaceutical company is undervalued at these levels, and with a near 4.3% dividend yield (compared to the SPDR S&P 500 ETF which only yields around 1.32%), investors of all tastes have a reason to buy into AbbVie.
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Anirudh Shankar owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To ease concerns about Humira's patent cliff coming in 2023, AbbVie has made acquisitions as well as developments in its own pipeline to diversify and drive growth. Taking 2021's projected EPS of $12.52 gives us a share price of $131, offering investors a great opportunity to buy the stock while it's trading at a discount. Growing revenue, pipeline expansion, and a cheap valuation are reasons investors shouldn't wait to pull the trigger on AbbVie. | Image source: Getty Images Earnings beat AbbVie reported its first-quarter earnings last week, and beat analyst estimates on most metrics. AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. The future pipeline for AbbVie includes dozens of filings for indications to treat using drugs Skyrizi and Rinvoq. | AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. Growth from Humira and AbbVie's various businesses has contributed to the recent revenue growth of 47.4% in the last year, as well as an almost 13% revenue growth over the last five years. The key drivers for AbbVie's future revenue streams will come from Skyrizi and Rinvoq, but products like Imbruvica and Botox will hold steady places in the businesses until those new drugs will be able to drive the bulk of future growth. | AbbVie's current immunology portfolio is the biggest driver of annual sales, and includes blockbuster drug Humira as well as up-and-comers Skyrizi to treat plaque psoriasis and Rinvoq to treat rheumatoid arthritis. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares of AbbVie. |
32147.0 | 2021-05-06 00:00:00 UTC | ABT June 25th Options Begin Trading | ABT | https://www.nasdaq.com/articles/abt-june-25th-options-begin-trading-2021-05-06 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the June 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new June 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $115.00 strike price has a current bid of $2.37. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $115.00, but will also collect the premium, putting the cost basis of the shares at $112.63 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $117.46/share today.
Because the $115.00 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 2.06% return on the cash commitment, or 15.04% 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 $115.00 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 $2.18. If an investor was to purchase shares of ABT stock at the current price level of $117.46/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 4.02% if the stock gets called away at the June 25th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $120.00 strike highlighted in red:
Considering the fact that the $120.00 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 1.86% boost of extra return to the investor, or 13.55% 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 $117.46) 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the June 25th 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 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the June 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new June 25th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the June 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new June 25th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the June 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new June 25th contracts and identified one put and one call contract of particular interest. |
32148.0 | 2021-05-05 00:00:00 UTC | Sum Up The Pieces: SPMO Could Be Worth $61 | ABT | https://www.nasdaq.com/articles/sum-up-the-pieces%3A-spmo-could-be-worth-%2461-2021-05-05 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500— Momentum ETF (Symbol: SPMO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $60.95 per unit.
With SPMO trading at a recent price near $54.68 per unit, that means that analysts see 11.46% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPMO's underlying holdings with notable upside to their analyst target prices are General Motors Co (Symbol: GM), Tyler Technologies, Inc. (Symbol: TYL), and Abbott Laboratories (Symbol: ABT). Although GM has traded at a recent price of $55.34/share, the average analyst target is 15.32% higher at $63.82/share. Similarly, TYL has 13.09% upside from the recent share price of $415.03 if the average analyst target price of $469.38/share is reached, and analysts on average are expecting ABT to reach a target price of $132.50/share, which is 12.73% above the recent price of $117.54. Below is a twelve month price history chart comparing the stock performance of GM, TYL, and ABT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P 500— Momentum ETF SPMO $54.68 $60.95 11.46%
General Motors Co GM $55.34 $63.82 15.32%
Tyler Technologies, Inc. TYL $415.03 $469.38 13.09%
Abbott Laboratories ABT $117.54 $132.50 12.73%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco S&P 500— Momentum ETF SPMO $54.68 $60.95 11.46% General Motors Co GM $55.34 $63.82 15.32% Tyler Technologies, Inc. TYL $415.03 $469.38 13.09% Abbott Laboratories ABT $117.54 $132.50 12.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPMO's underlying holdings with notable upside to their analyst target prices are General Motors Co (Symbol: GM), Tyler Technologies, Inc. (Symbol: TYL), and Abbott Laboratories (Symbol: ABT). Similarly, TYL has 13.09% upside from the recent share price of $415.03 if the average analyst target price of $469.38/share is reached, and analysts on average are expecting ABT to reach a target price of $132.50/share, which is 12.73% above the recent price of $117.54. | Three of SPMO's underlying holdings with notable upside to their analyst target prices are General Motors Co (Symbol: GM), Tyler Technologies, Inc. (Symbol: TYL), and Abbott Laboratories (Symbol: ABT). Similarly, TYL has 13.09% upside from the recent share price of $415.03 if the average analyst target price of $469.38/share is reached, and analysts on average are expecting ABT to reach a target price of $132.50/share, which is 12.73% above the recent price of $117.54. Invesco S&P 500— Momentum ETF SPMO $54.68 $60.95 11.46% General Motors Co GM $55.34 $63.82 15.32% Tyler Technologies, Inc. TYL $415.03 $469.38 13.09% Abbott Laboratories ABT $117.54 $132.50 12.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, TYL has 13.09% upside from the recent share price of $415.03 if the average analyst target price of $469.38/share is reached, and analysts on average are expecting ABT to reach a target price of $132.50/share, which is 12.73% above the recent price of $117.54. Three of SPMO's underlying holdings with notable upside to their analyst target prices are General Motors Co (Symbol: GM), Tyler Technologies, Inc. (Symbol: TYL), and Abbott Laboratories (Symbol: ABT). Below is a twelve month price history chart comparing the stock performance of GM, TYL, and ABT: Below is a summary table of the current analyst target prices discussed above: | Invesco S&P 500— Momentum ETF SPMO $54.68 $60.95 11.46% General Motors Co GM $55.34 $63.82 15.32% Tyler Technologies, Inc. TYL $415.03 $469.38 13.09% Abbott Laboratories ABT $117.54 $132.50 12.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPMO's underlying holdings with notable upside to their analyst target prices are General Motors Co (Symbol: GM), Tyler Technologies, Inc. (Symbol: TYL), and Abbott Laboratories (Symbol: ABT). Similarly, TYL has 13.09% upside from the recent share price of $415.03 if the average analyst target price of $469.38/share is reached, and analysts on average are expecting ABT to reach a target price of $132.50/share, which is 12.73% above the recent price of $117.54. |
32149.0 | 2021-05-04 00:00:00 UTC | Why Abbott Labs' Sizzling Growth Could Taper Off | ABT | https://www.nasdaq.com/articles/why-abbott-labs-sizzling-growth-could-taper-off-2021-05-04 | nan | nan | Abbott Laboratories (NYSE: ABT) reported its first-quarter results on April 20, 2021. The healthcare company delivered impressive sales growth. In this Motley Fool Live video recorded on April 21, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss why Abbott's sizzling growth could taper off in the near future.
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Keith Speights: All right, so let's switch to earnings. We are beginning the fun of earning season now and we had several companies in the healthcare space report earnings already this week.
One of them is a major player in COVID-19 testing, Abbott Labs. Abbott reported their Q1 results. Brian, I know you've taken a look at Abbott's update. What do you think investors should make of Abbott's Q1?
Brian Orelli: Yes, sales were up 35.3%. COVID testing made up $2.2 billion of the $10.5 billion in revenue. A majority of that increase in sales was due to COVID. If you back out COVID, sales were up 7.6%. Going from 35.3% with the COVID to just 7.6% without.
Not a bad quarter, but I'm not sure we should expect 35% growth year over year to continue down the line. The COVID testing was $2.2 billion, as I said, but that was down from $2.4 billion in the fourth quarter. I think they're seeing some slowdown in testing.
Medical devices were up 13.1%, but that was muted by nutrition, which was only up 6.9%, and generics, which was only up 2.5%. Within the medical devices, I think diabetes and heart were both the winners there.
The adjusted earnings per share more than doubled, but they kept the 2021 guidance for growth of more than 35%. I take that as a sign that Abbott sees continued declines in COVID testing revenue.
Speights: I think you're right. By the way, the stock fell a little after reporting results. That was mainly because the results were seen as mixed. Abbott missed the consensus revenue estimate by a little bit. I think they had revenue of $10.5 billion and Wall Street was looking for revenue closer to $10.7 billion. They did pretty easily beat on the bottom line, though, so it was mixed results, the stock fell a little bit.
I think you're right that they are anticipating testing for COVID-19 is going to fall off but they do have a new product that was just launched, I think just this month. It's an at-home version of their BinaxNOW self-test that individuals can test themselves for COVID-19. They don't even require a prescription for it and so I think Abbott has some high hopes for that, but like you said, with overall testing rates going down, we'll see what happens over the next year or so with COVID-19 testing for Abbott.
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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) reported its first-quarter results on April 20, 2021. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! | Abbott Laboratories (NYSE: ABT) reported its first-quarter results on April 20, 2021. In this Motley Fool Live video recorded on April 21, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss why Abbott's sizzling growth could taper off in the near future. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Abbott Laboratories (NYSE: ABT) reported its first-quarter results on April 20, 2021. In this Motley Fool Live video recorded on April 21, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss why Abbott's sizzling growth could taper off in the near future. 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Abbott Laboratories (NYSE: ABT) reported its first-quarter results on April 20, 2021. In this Motley Fool Live video recorded on April 21, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss why Abbott's sizzling growth could taper off in the near future. Abbott reported their Q1 results. |
32150.0 | 2021-05-04 00:00:00 UTC | 2 Top Stocks to Buy and Hold for 10 Years | ABT | https://www.nasdaq.com/articles/2-top-stocks-to-buy-and-hold-for-10-years-2021-05-04 | nan | nan | Day trading is alive and well. With dozens of online brokers offering stock-trading services -- often free of charge -- anyone with an internet connection can look to make a fortune by taking advantage of daily swings in the prices of stocks. But this investment strategy is risky: No one knows when shares of a company will rise or drop, sometimes for no reason related to its fundamentals. This factor (and others) makes day trading an unreliable strategy.
Instead, investors should focus on a proven method for generating wealth: Buying shares of great companies and holding them through thick and thin. Abbott Laboratories (NYSE: ABT) and Bristol Myers Squibb (NYSE: BMY) are two excellent candidates. Both of these healthcare companies boast strong lineups and solid growth prospects. Let's dig a little deeper into each company's respective business.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories ran into some trouble last year as sales of its medical devices fell because of the pandemic. However, the company was able to offset these declining sales by entering the COVID-19 testing market. Abbott Laboratories devised and launched several coronavirus testing kits, which had a massive impact on its financial results.
In the first quarter ending March 31, the healthcare giant recorded revenue of $10.5 billion, which grew by 35.3% year over year and included $2.2 billion in coronavirus testing-related sales. The COVID-19 testing market will probably slow as vaccines for the disease become mainstream.
Thankfully, Abbott Laboratories has other long-term growth drivers. Most notably, there is the company's diabetes care segment. Abbott Laboratories markets the Freestyle Libre, a continuous glucose monitoring (CGM) system. This franchise is important for the company's future because of the prevalence of diabetes, which has been growing steadily in the U.S. over the past several decades. In 1958, just 0.93% of the population was diabetic, but that metric had risen to a whopping 10% as of 2018. Further, that number is projected to keep growing. The need for innovative products that help diabetes patients manage their illness won't subside anytime soon.
CGM systems such as the Freestyle Libre allow these patients to keep track of their blood glucose levels while significantly reducing (or eliminating) the need for pesky and painful finger sticks. According to Grand View Research, the CGM market will expand at a compound annual growth rate (CAGR) of 12.7% through 2027.
In the first quarter, Abbott Laboratories recorded $980 million from its diabetes care segment, a 30.2% year-over-year increase largely driven by its Freestyle Libre franchise. The company expects 10%-plus growth in its diabetes care business for the fiscal year.
Abbott Laboratories can also count on its MitraClip System -- one of the leading devices on the market for the treatment of a heart condition called mitral regurgitation -- for revenue and profit growth. Thanks to these products (and more), the healthcare company looks well-positioned to deliver strong financial results year after year, and its stock price should follow suit.
Image source: Getty Images.
2. Bristol Myers Squibb
Thanks to the groundbreaking medical innovations that have occurred over the past century, human beings now live longer than ever. But these longer lifespans also translate to higher spending on healthcare products, including prescription drugs. That's why pharma giant Bristol Myers Squibb, which develops lifesaving drugs, could be an excellent long-term play.
While the company's revenue continues to face headwinds due to the impact of the COVID-19 pandemic, Bristol Myers Squibb boasts a rich lineup of products, including more than half a dozen blockbuster medicines. These include multiple myeloma treatments Revlimid and Pomalyst, both of which Bristol Myers Squibb added to its arsenal via its November 2019 acquisition of Celgene in a cash-and-stock transaction valued at $74 billion.
In the first quarter ending March 31, sales of Revlimid came in at $2.9 billion, a 1% year-over-year increase. Meanwhile, the company reported $773 million in revenue from Pomalyst, 8% higher than the year-ago period. Other notable products in Bristol Myers Squibb's lineup include anticoagulant Eliquis. In the first quarter, the company's revenue from this medicine grew by 9% year over year to $2.9 billion. Then there is cancer drug Opdivo, whose sales during the first quarter declined by 3% to $1.7 billion.
The decrease was caused by lower demand for the drug, which was driven by increased competition, the COVID-19 pandemic, and other factors. Investors need not worry about this cancer medicine, however. Opdivo is still undergoing over a dozen trials. Last year alone, it scored seven new regulatory approvals. Management thinks that sales of Opdivo will start growing again this year.
The company's revenue during the first quarter only grew by 3% year over year, to $11.1 billion. Excluding the impact of the outbreak, it would have grown by 8%. Further, Bristol Myers Squibb has over 50 clinical compounds in development. Even a handful of approvals for these candidates every year -- which seems more than likely -- will help the company continually replenish its stock of medicines to keep its revenue and profits growing.
Though Bristol Myers Squibb has underperformed the market over the past 12 months, these factors will help its performance pick up, especially once the pandemic subsides. For investors willing to stay the course, this pharma stock looks like an excellent pick.
10 stocks we like better than Bristol Myers Squibb
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) and Bristol Myers Squibb (NYSE: BMY) are two excellent candidates. With dozens of online brokers offering stock-trading services -- often free of charge -- anyone with an internet connection can look to make a fortune by taking advantage of daily swings in the prices of stocks. While the company's revenue continues to face headwinds due to the impact of the COVID-19 pandemic, Bristol Myers Squibb boasts a rich lineup of products, including more than half a dozen blockbuster medicines. | Abbott Laboratories (NYSE: ABT) and Bristol Myers Squibb (NYSE: BMY) are two excellent candidates. In the first quarter ending March 31, the healthcare giant recorded revenue of $10.5 billion, which grew by 35.3% year over year and included $2.2 billion in coronavirus testing-related sales. Abbott Laboratories markets the Freestyle Libre, a continuous glucose monitoring (CGM) system. | Abbott Laboratories (NYSE: ABT) and Bristol Myers Squibb (NYSE: BMY) are two excellent candidates. In the first quarter ending March 31, the healthcare giant recorded revenue of $10.5 billion, which grew by 35.3% year over year and included $2.2 billion in coronavirus testing-related sales. While the company's revenue continues to face headwinds due to the impact of the COVID-19 pandemic, Bristol Myers Squibb boasts a rich lineup of products, including more than half a dozen blockbuster medicines. | Abbott Laboratories (NYSE: ABT) and Bristol Myers Squibb (NYSE: BMY) are two excellent candidates. In the first quarter, Abbott Laboratories recorded $980 million from its diabetes care segment, a 30.2% year-over-year increase largely driven by its Freestyle Libre franchise. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bristol Myers Squibb wasn't one of them! |
32151.0 | 2021-05-03 00:00:00 UTC | This Is Why Humira Isn't AbbVie's Biggest Problem Right Now | ABT | https://www.nasdaq.com/articles/this-is-why-humira-isnt-abbvies-biggest-problem-right-now-2021-05-03 | nan | nan | Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. As you can imagine, patent-protected exclusivity expected to expire in the U.S. in 2023 has been a major concern for AbbVie for a long time. In fact, eight years ago, Abbott spun out its biopharmaceutical segment into a separate company to protect the parent from Humira's impending patent cliff.
Overcoming Humira's far-off patent losses has been central to AbbVie's existence for so long that it can be hard to realize problems festering in the present. In case you hadn't noticed, sales of two drugs the company is relying on to offset eventual Humira losses are running into trouble and the worst is still to come.
Image source: Getty Images.
The beginning of Imbruvica's end
In 2015, AbbVie acquired Pharmacyclics for about $21 billion to gain rights to the portion of sales for Imbruvica, a new cancer drug that Johnson & Johnson (NYSE: JNJ) already owned part of. AbbVie's share of Imbruvica sales grew last year to $5.3 billion, which worked out to 12% of the company's total revenue.
Unfortunately for AbbVie, Imbruvica sales will probably get cut to shreds long before Humira begins losing ground to U.S. biosimilar competition in 2023. That's because it's a first-generation Bruton's tyrosine kinase (BTK) inhibitor that isn't nearly as targeted as next-generation BTK inhibitors from AstraZeneca (NASDAQ: AZN) and BeiGene (NASDAQ: BGNE).
Off-target effects make Imbruvica difficult to tolerate and it's already losing ground to new BTK-inhibitors with better safety profiles. Last November, the FDA approved Calquence from AstraZeneca to treat newly diagnosed patients with the most common form of leukemia. As a result, AbbVie reported Imbruvica sales in the first quarter that were 11% lower than during the previous three-month period.
Class effect
Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. Interim phase 3 trial results BeiGene announced in April suggested Beigene's new BTK inhibitor, Brukinsa will wipe the floor with Imbruvica when long-term survival data reads out. During the head-to-head Alpine study, relapsed leukemia patients randomized to receive Brukinsa were significantly more likely to respond to treatment than those given Imbruvica.
Brukinsa earned its first FDA approval in 2019 to treat a rare lymphoma and it's going to be a while before BeiGene can apply for approval to treat first-line leukemia. In the meantime, though, oncologists who saw Brukinsa shrink tumors more often than Imbruvica will be even more likely to reach for available next-generation drugs from this class.
Another negative class effect
Off-target side effects aren't an issue limited to cancer treatments that inhibit out-of-control Bruton's tyrosine kinases. In February, the FDA alerted the public to the increased risk of heart problems and cancer found during a post-marketing safety study with Xeljanz. This is a Janus kinase inhibitor (JAK) from Pfizer (NYSE: PFE) the FDA approved to treat rheumatoid arthritis in 2012.
AbbVie's Rinvoq is a new JAK inhibitor the FDA approved to treat rheumatoid arthritis in 2019. Investors hoping Rinvoq will offset Humira losses should probably brace for disappointment. Xeljanz isn't the only JAK inhibitor out there with a troubled safety profile.
Don't panic
Right now, you can find better pharma stocks to buy than AbbVie, but you shouldn't dump the stock if you're already holding it. While a lot of Humira profits have been funneled into kinase inhibitors, AbbVie's bet on Allergan could produce decades of reliable sales.
It's been years since Botox has been the only brand of botulinum toxin approved by the FDA but the Botox brand still dominates. Botox sales reached an annualized $4 billion in the first quarter and this revenue stream isn't going anywhere but up for the foreseeable future.
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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. | Despite launching nearly two decades ago, worldwide sales of AbbVie's (NYSE: ABBV) lead drug, Humira still generates more revenue than most countries. In fact, eight years ago, Abbott spun out its biopharmaceutical segment into a separate company to protect the parent from Humira's impending patent cliff. In case you hadn't noticed, sales of two drugs the company is relying on to offset eventual Humira losses are running into trouble and the worst is still to come. | Class effect Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. This is a Janus kinase inhibitor (JAK) from Pfizer (NYSE: PFE) the FDA approved to treat rheumatoid arthritis in 2012. AbbVie's Rinvoq is a new JAK inhibitor the FDA approved to treat rheumatoid arthritis in 2019. | The beginning of Imbruvica's end In 2015, AbbVie acquired Pharmacyclics for about $21 billion to gain rights to the portion of sales for Imbruvica, a new cancer drug that Johnson & Johnson (NYSE: JNJ) already owned part of. That's because it's a first-generation Bruton's tyrosine kinase (BTK) inhibitor that isn't nearly as targeted as next-generation BTK inhibitors from AstraZeneca (NASDAQ: AZN) and BeiGene (NASDAQ: BGNE). Don't panic Right now, you can find better pharma stocks to buy than AbbVie, but you shouldn't dump the stock if you're already holding it. | That's because it's a first-generation Bruton's tyrosine kinase (BTK) inhibitor that isn't nearly as targeted as next-generation BTK inhibitors from AstraZeneca (NASDAQ: AZN) and BeiGene (NASDAQ: BGNE). Class effect Unfortunately for AbbVie, competition for leukemia patients from next-generation BTK inhibitors is about to rise exponentially. Xeljanz isn't the only JAK inhibitor out there with a troubled safety profile. |
32152.0 | 2021-05-01 00:00:00 UTC | Better Buy for 2021: AbbVie or Merck? | ABT | https://www.nasdaq.com/articles/better-buy-for-2021%3A-abbvie-or-merck-2021-05-01 | nan | nan | AbbVie (NYSE: ABBV) and Merck (NYSE: MRK) currently boast the No. 1 and No. 2 best-selling drugs on the market. AbbVie's Humira, which is used to treat Crohn's disease, just grossed $20 billion in sales in 2020, while Merck's No. 2, Keytruda, did $14.38 billion in sales. With patent cliffs looming for both drugs in the next several years, which company is the better buy?
Image source: Getty Images.
The case for AbbVie
In 2013, AbbVie was spun off by its parent company, Abbott Labs, in a decision to separate two fundamentally different businesses. AbbVie's darling drug, Humira, which was launched back in 2003, would go on to dominate the sales of prescription drugs to the present day. But there have been growing fears from investors over the last few years relating to AbbVie's dependence on Humira as a huge share of its revenue.
However, there is cause for optimism. In 2019, AbbVie acquired Allergan for $63 billion in one of the biggest deals in the industry next to Bristol Myers Squibb's acquisition of Celgene for $74 billion and Takeda Pharmaceuticals' acquisition of Shire for $62 billion. AbbVie's move diversified its revenue with new consumer products like Botox, which brought in $1.3 billion for the company in 2020. AbbVie has also launched Skyrizi (a drug to treat plaque psoriasis) and Rinvoq (rheumatoid arthritis), which reaped a combined $2.3 billion just 12 months after they launched. The business segments acquired from Allergan also brought in $8.93 billion in revenue, which represented almost 20% of AbbVie's net revenue for 2020.
AbbVie just released earnings for Q1 2021. Net revenue for the quarter increased 50% year over year to $13.01 billion, compared to analysts' estimate of $12.78 billion. We also saw the company's aesthetics portfolio revenue increase 35% to $1.14 billion, this was fueled by the near 50% surge in global botox cosmetic net revenues in the quarter compared to last year.
We were really able to see AbbVie's diversification, as the strength in the company's aesthetics business helped offset the mounting pressure on its flagship drug Humira. The immunologic saw an over 8% slide in revenue internationally, due to competition from other drugs, including Biogen's Imraldi in Europe.
Humira's looming patent expiration in 2023 has left investors cautious about whether to initiate big positions in the company. Some might consider these fears overblown, as AbbVie has been using this time to bring these new drugs to market and build a patent wall around its other blockbuster drug, Imbruvica. The company has filed for around 165 patents and so far has had 88 approved. All these patents have given AbbVie another nine years of patent protection for a total of 29 years of commercial sales without any competition. Currently, Imbruvica generates almost $5.3 billion a year for the company, and these patent protections will no doubt allow for many billions more.
Even with all the bad news priced in, I believe the company is undervalued. AbbVie's current forward price-to-earnings (P/E) ratio of about 9 is below its high of 10.4 in the fourth quarter of 2020. The stock looks attractive at these levels. With an almost 5% dividend yield, with a possible margin of safety, it could hit more than $128 if it simply reverted to its usual market valuation.
The case for Merck
Merck, meanwhile, commands the second-biggest drug by sales on the market: Keytruda. Keytruda is an immunology drug that fights many different types of cancer, has been a key driver for Merck's business growth over the last few years.
Many predict that by 2023, Keytruda will hold the No. 1 place in drugs sold by revenue. This is mostly due to the speculation about AbbVie's Humira losing patent exclusivity and therefore not selling as much when generics come into the picture. However, for Merck, that problem will not arise until well into the future, because Keytruda is not expected to lose patent exclusivity until 2028.
Merck also reported earnings this week, which included sales of Keytruda. We saw strong sales of the cancer-fighting drug help fuel its first-quarter earnings. Sales of the drug for the quarter jumped 19% year over year to $3.9 billion. Merck is so far on track to possibly do nearly $16 billion in sales for 2021, a 11% increase from 2020. By 2026, long-term analysts expect Keytruda to do $24.32 billion annually in sales. This is also a significant increase from what sales-leader Humira did in 2020, at just $19.83 billion. By 2026, Humira will be off-patent for a few years, and this will give Keytruda the room to dominate the majority of sales in the cancer-treatment space. There is always a factor of concentration risk to have most sales in just one drug, but Merck is also making strides in diversifying its revenue streams.
Along with Keytruda, there are a lot of products in Merck's pipeline to be very optimistic about. Sales of Bridion (an anesthetic), which is one of Merck's newer drugs, grew by 6% to $1.2 billion. We also saw Merck's Animal Health unit grow sales by 7% to $4.7 billion in 2020.
Merck also currently trades at a very cheap valuation compared to where it has normally traded over the past few years. Shares just last year traded at a future P/E of 13.5, and the current future price-to-earnings ratio sits at just under 11.3. We are looking at around a $80 share price and an 8% upside if the stock reverts to its usual market valuation.
What's the better buy?
Both these pharmaceutical giants are wonderful companies, and both will no doubt deliver great shareholder returns in the long run. However, when it comes to safety and reliability in investment over the next few years, I might have to go with Merck.
When comparing pharmaceutical companies, drug patent cliff risks must be taken into account. In this case, AbbVie's biggest drug, Humira, faces imminent risk from loss of exclusivity. Though I laid out how AbbVie has been diversifying to mitigate a huge loss in revenue, the impending loss exclusivity on its biggest drug is still large enough to cause me to turn to Merck as a buy today. Simply put, Merck is expecting more annual sales from Keytruda than Humira ever earned, and that should fuel a run in share price and future dividend increases.
Merck currently offers a 3.53% dividend yield, a bit below AbbVie's 5%. But looking at the comparison from a valuation perspective, I believe the opportunity in further share price upside for Merck is much greater than that for AbbVie. It has an opportunity to expand earnings at a much faster rate over the next 5 to 10 years, with Keytruda emerging in the spotlight.
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Anirudh Shankar owns shares of AbbVie, Bristol Myers Squibb, and Merck & Co. The Motley Fool owns shares of and recommends Bristol Myers Squibb. The Motley Fool recommends Biogen. 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. | We were really able to see AbbVie's diversification, as the strength in the company's aesthetics business helped offset the mounting pressure on its flagship drug Humira. Keytruda is an immunology drug that fights many different types of cancer, has been a key driver for Merck's business growth over the last few years. Simply put, Merck is expecting more annual sales from Keytruda than Humira ever earned, and that should fuel a run in share price and future dividend increases. | When comparing pharmaceutical companies, drug patent cliff risks must be taken into account. Simply put, Merck is expecting more annual sales from Keytruda than Humira ever earned, and that should fuel a run in share price and future dividend increases. The Motley Fool owns shares of and recommends Bristol Myers Squibb. | Net revenue for the quarter increased 50% year over year to $13.01 billion, compared to analysts' estimate of $12.78 billion. The case for Merck Merck, meanwhile, commands the second-biggest drug by sales on the market: Keytruda. Sales of the drug for the quarter jumped 19% year over year to $3.9 billion. | 2, Keytruda, did $14.38 billion in sales. The case for Merck Merck, meanwhile, commands the second-biggest drug by sales on the market: Keytruda. Simply put, Merck is expecting more annual sales from Keytruda than Humira ever earned, and that should fuel a run in share price and future dividend increases. |
32153.0 | 2021-05-01 00:00:00 UTC | Don't Ignore The Fact That This Insider Just Sold Some Shares In Abbott Laboratories (NYSE:ABT) | ABT | https://www.nasdaq.com/articles/dont-ignore-the-fact-that-this-insider-just-sold-some-shares-in-abbott-laboratories-nyse | nan | nan | We wouldn't blame Abbott Laboratories (NYSE:ABT) shareholders if they were a little worried about the fact that Roger Bird, a company insider, recently netted about US$1.2m selling shares at an average price of US$122. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Abbott Laboratories
In fact, the recent sale by Roger Bird was the biggest sale of Abbott Laboratories shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$120. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In total, Abbott Laboratories insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:ABT Insider Trading Volume May 1st 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Abbott Laboratories Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Abbott Laboratories insiders own 0.7% of the company, currently worth about US$1.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Abbott Laboratories Insider Transactions Indicate?
The stark truth for Abbott Laboratories is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Abbott Laboratories is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Abbott Laboratories you should be aware of.
But note: Abbott Laboratories may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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. | We wouldn't blame Abbott Laboratories (NYSE:ABT) shareholders if they were a little worried about the fact that Roger Bird, a company insider, recently netted about US$1.2m selling shares at an average price of US$122. NYSE:ABT Insider Trading Volume May 1st 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. The Last 12 Months Of Insider Transactions At Abbott Laboratories In fact, the recent sale by Roger Bird was the biggest sale of Abbott Laboratories shares made by an insider individual in the last twelve months, according to our records. | We wouldn't blame Abbott Laboratories (NYSE:ABT) shareholders if they were a little worried about the fact that Roger Bird, a company insider, recently netted about US$1.2m selling shares at an average price of US$122. NYSE:ABT Insider Trading Volume May 1st 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. The Last 12 Months Of Insider Transactions At Abbott Laboratories In fact, the recent sale by Roger Bird was the biggest sale of Abbott Laboratories shares made by an insider individual in the last twelve months, according to our records. | We wouldn't blame Abbott Laboratories (NYSE:ABT) shareholders if they were a little worried about the fact that Roger Bird, a company insider, recently netted about US$1.2m selling shares at an average price of US$122. NYSE:ABT Insider Trading Volume May 1st 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. The Last 12 Months Of Insider Transactions At Abbott Laboratories In fact, the recent sale by Roger Bird was the biggest sale of Abbott Laboratories shares made by an insider individual in the last twelve months, according to our records. | We wouldn't blame Abbott Laboratories (NYSE:ABT) shareholders if they were a little worried about the fact that Roger Bird, a company insider, recently netted about US$1.2m selling shares at an average price of US$122. NYSE:ABT Insider Trading Volume May 1st 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. So What Do The Abbott Laboratories Insider Transactions Indicate? |
32154.0 | 2021-04-30 00:00:00 UTC | Is it Time to Rotate to Health Care? | ABT | https://www.nasdaq.com/articles/is-it-time-to-rotate-to-health-care-2021-04-30 | nan | nan | Key Takeaways
Health Care Select Sector SPDR ETF (XLV) earns a five-star rating from CFRA for its high reward potential, modest risks, and low costs relative to sector equity ETF peers. In addition, the technical trends are favorable according to our analysis.
Historically, the S&P 500 Health Care Index has generated strong performance during the May-October period relative to the broader market.
XLV consists of many appealing stocks based on our fundamental analysis, Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Medtronic (MDT), Pfizer (PFE), and United Health Group (UNH).
CFRA expects XLV to outperform the broader category in the next nine months based on our fund-level and holdings-level analytics.
Fundamental Context
The CFRA Focus ETF for May is Health Care Select Sector SPDR (XLV). In rating equity ETFs, CFRA combines fund-level attributes, including performance and costs, with holdings-level risk and reward analysis to provide a second opinion on what is inside the fund. XLV is appealing to CFRA as we look forward. Sam Stovall, CFRA’s Chief Investment Strategist, noted that the S&P 500 Index has typically struggled during the seasonally weak May-October period of the year, rising only 2.2% on average since 1990. However, the S&P 500 Health Care sector was the best performing sector gaining 4.8%.
The S&P 500 Health Care sector, which XLV seeks to replicate is diversified across key health care industries. Health Care Equipment & Supplies (29% of assets), Pharmaceuticals (27%), Health Care Providers & Services (20%) are the largest, but the ETF has meaningful exposure to Biotechnology (14%) and Life Sciences Tools & Services (9%) as well. The ETF is market-cap weighted with 51% of assets invested in the top-10 securities such as Abbot Laboratories (ABT), Johnson & Johnson (JNJ), and United Health Group (UNH). Yet, the fund has slight exposure to more moderately sized health care companies such as Perrigo (PRGO) and United Health Services (UHS 146 ****).
While XLV has underperformed the S&P 500 Index in the last three years, rising just 16% compared 19% for the broader market, on a risk-adjusted basis XLV generated a higher Sharpe ratio aided by its low volatility. Yet, CFRA does not rely solely on past performance to provide a star rating on an ETF.
For example, CFRA has Buy or Strong Buy recommendations on eight of XLV’s top-10 holdings. In addition, eight of these top-10 positions earn favorable CFRA Earnings Quality scores. Beyond, ABT, JNJ, and UNH, the top positions include Strong Buy recommended on Eli Lilly (LLY), Medtronic (MDT), and Thermo Fisher Scientific (TMO).
CFRA Equity Analyst Sel Hardy raised the recommendation on JNJ to Buy from Hold in April following stronger growth prospects following better-than-expected first-quarter earnings results. Hardy forecasts 10% sales growth in 2021 driven by gains in the core Pharma segment and strong recovery in Medical Devices sales. Hardy expects the pharma segment will continue to have a promising outlook due to strong prospects on existing key drugs such as Stelara, Imbruvica, Darzalex, and a robust drug pipeline with 14 novel drug launches expected by end of 2023. Furthermore, JNJ’s strong balance sheet provides ample liquidity for unexpected cash outflows.
Hardy also reiterated a CFRA Strong Buy recommendation UNH in April but raised the 12-month target price justified by its solid growth prospects. Hardy sees the acquisition of Change Healthcare, a major health care technology firm, as the main near-term catalyst. The deal will allow Optum, UNH’s health care services provider, to expand technological processes and achieve cost synergies. In the first quarter of 2021, UNH generated strong revenues than CFRA and consensus estimates forecast. Furthermore, with the increase in Covid-19 vaccinations, Hardy expects increased utilizations resulting from missed medical visits and delayed electives.
Meanwhile, CFRA Equity Analyst Kevin Huang maintained his Buy recommendation and target price on ABT in April. In the near-term, Huang expects ABT to enjoy significantly elevated revenues because of Covid-19 test-related sales. In the long run, shares of ABT have plenty of upside potential due to the company’s earnings growth power, which is driven by a plethora of innovative recent and upcoming offerings, such as Freestyle Libre 3 and structural heart products, across all the company’s divisions.
CFRA does not include technical analysis in our star rating for XLV or sector ETF peers, but we realize some investors look to the charts to understand what is ahead. According to Lowry Research, a CFRA business, XLV appears poised for further gains on an intermediate-term basis backed by strong demand trends and an intact intermediate-term price uptrend. The ETF’s Lowry Power Rating climbed from 77 (out of 99) to 91 over the past three weeks, consistent with its relative strength. In addition, on April 15 the ETF broke out in price above $119, triggering 26- and 52-week highs.
Conclusion
While XLV incurred $1.5 billion of net outflows year-to-date through April 26, CFRA thinks the ETF is positioned to outperform the broader U.S. sector equity ETF category over the next nine months. The ETF has strong reward potential, limited risks, and has a modest 0.12% expense ratio. Further, it has seasonality and technical analysis on its side.
Todd Rosenbluth is Director of ETF & Mutual Fund Research at CFRA.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Beyond, ABT, JNJ, and UNH, the top positions include Strong Buy recommended on Eli Lilly (LLY), Medtronic (MDT), and Thermo Fisher Scientific (TMO). XLV consists of many appealing stocks based on our fundamental analysis, Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Medtronic (MDT), Pfizer (PFE), and United Health Group (UNH). The ETF is market-cap weighted with 51% of assets invested in the top-10 securities such as Abbot Laboratories (ABT), Johnson & Johnson (JNJ), and United Health Group (UNH). | XLV consists of many appealing stocks based on our fundamental analysis, Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Medtronic (MDT), Pfizer (PFE), and United Health Group (UNH). The ETF is market-cap weighted with 51% of assets invested in the top-10 securities such as Abbot Laboratories (ABT), Johnson & Johnson (JNJ), and United Health Group (UNH). Beyond, ABT, JNJ, and UNH, the top positions include Strong Buy recommended on Eli Lilly (LLY), Medtronic (MDT), and Thermo Fisher Scientific (TMO). | XLV consists of many appealing stocks based on our fundamental analysis, Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Medtronic (MDT), Pfizer (PFE), and United Health Group (UNH). The ETF is market-cap weighted with 51% of assets invested in the top-10 securities such as Abbot Laboratories (ABT), Johnson & Johnson (JNJ), and United Health Group (UNH). Beyond, ABT, JNJ, and UNH, the top positions include Strong Buy recommended on Eli Lilly (LLY), Medtronic (MDT), and Thermo Fisher Scientific (TMO). | XLV consists of many appealing stocks based on our fundamental analysis, Abbott Laboratories (ABT), Johnson & Johnson (JNJ), Medtronic (MDT), Pfizer (PFE), and United Health Group (UNH). The ETF is market-cap weighted with 51% of assets invested in the top-10 securities such as Abbot Laboratories (ABT), Johnson & Johnson (JNJ), and United Health Group (UNH). Beyond, ABT, JNJ, and UNH, the top positions include Strong Buy recommended on Eli Lilly (LLY), Medtronic (MDT), and Thermo Fisher Scientific (TMO). |
32155.0 | 2021-04-29 00:00:00 UTC | Thermo Fisher profit beats estimates on vaccine-making demand surge | ABT | https://www.nasdaq.com/articles/thermo-fisher-profit-beats-estimates-on-vaccine-making-demand-surge-2021-04-29 | nan | nan | Recasts lead, adds specialty diagnostics unit sales, share movement
April 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus.
As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories ABT.N have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business.
Sales at Thermo Fisher's specialty diagnostics unit, which makes tests for COVID-19, rose 68.6% to $1.62 billion, but missed analyst estimates of $1.83 billion.
The world's largest scientific instruments maker said first-quarter revenue in its life sciences segment rose to $4.20 billion from $1.77 billion a year earlier, a jump of 137%, beating analysts' average estimate of $4.16 billion.
Thermo Fisher in March said it would work with Pfizer Inc PFE.N and BioNtech SE 22UAy.DE to produce their COVID-19 vaccine in Italy.
Excluding items, the company earned $7.21 per share in the quarter, above Wall Street expectations of $6.45 per share, according to Refinitiv IBES data.
The company said net income rose to $2.34 billion, or $5.88 per share, for the three months to April 3, from $788 million, or $1.97 per share, a year earlier.
Thermo Fisher's quarterly revenue rose 59% to $9.91 billion, above Wall Street estimates of $9.72 billion.
Shares of the company were trading down 1.2% at $479 before the bell.
(Reporting by Dania Nadeem in Bengaluru; Editing by Ramakrishnan M.)
((Dania.Nadeem@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories ABT.N have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business. Recasts lead, adds specialty diagnostics unit sales, share movement April 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus. Thermo Fisher in March said it would work with Pfizer Inc PFE.N and BioNtech SE 22UAy.DE to produce their COVID-19 vaccine in Italy. | As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories ABT.N have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business. Recasts lead, adds specialty diagnostics unit sales, share movement April 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus. Sales at Thermo Fisher's specialty diagnostics unit, which makes tests for COVID-19, rose 68.6% to $1.62 billion, but missed analyst estimates of $1.83 billion. | As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories ABT.N have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business. Recasts lead, adds specialty diagnostics unit sales, share movement April 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus. Sales at Thermo Fisher's specialty diagnostics unit, which makes tests for COVID-19, rose 68.6% to $1.62 billion, but missed analyst estimates of $1.83 billion. | As vaccinations gain steam across the globe, diagnostic companies like Abbott Laboratories ABT.N have seen demand easing for some of its COVID-19 tests, stoking fears of slowing growth for the business. Recasts lead, adds specialty diagnostics unit sales, share movement April 29 (Reuters) - Thermo Fisher Scientific Inc TMO.N beat first-quarter profit estimates on Thursday boosted by revenue at its life sciences unit, which makes raw materials used in COVID-19 vaccines, offsetting slowing demand for tests that detect the coronavirus. The world's largest scientific instruments maker said first-quarter revenue in its life sciences segment rose to $4.20 billion from $1.77 billion a year earlier, a jump of 137%, beating analysts' average estimate of $4.16 billion. |
32156.0 | 2021-04-28 00:00:00 UTC | 3 Top Healthcare Stocks to Buy and Hold for the Next 10 Years | ABT | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-and-hold-for-the-next-10-years-2021-04-28 | nan | nan | Healthcare was a safe place to invest your money even before the pandemic. But now -- with one in three people who've been hospitalized with COVID-19 facing long-term health problems after discharge -- demand could heighten beyond the normal care that will resume post-pandemic. And that's why you should consider adding some top healthcare stocks to your portfolio, if you haven't already done so.
Three healthcare stocks you should be able to comfortably hold for at least the next decade are Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), and Intuitive Surgical (NASDAQ: ISRG). From testing to robotic surgery to vaccines and pharmaceuticals, they will give you exposure to many different areas of medical care.
Image source: Getty Images.
1. Abbott Laboratories
Abbott is a top healthcare stock, as its business is both versatile and robust. It made headlines last year when it unveiled a rapid $5 COVID-19 test that could deliver results within 15 minutes. While mass vaccinations are reducing demand for testing, given the ongoing health problems the coronavirus appears to cause, it's possible the company's tests will continue to be needed.
In 2020, sales of $34.6 billion represented an 8.5% rise, and a big part of that was due to testing. The company's diagnostics segment generated $10.8 billion in revenue, which was more than 31% of its top line (in 2019, the segment brought in 24%), making it easily the company's best-performing division.
Even if demand for testing does largely subside, remember that Abbott's operations are vast. Its medical device business (the largest component of its revenue) and its nutritional offerings help to ensure that the company isn't too dependent on any one revenue source. That stability means you won't have to worry about the business or its bottom line, which has been more than 10% of revenue for the past two years.
Another great reason to hold the stock is that it pays a dividend that yields 1.5%, which is right in line with the S&P 500 average. And with a payout ratio of just 34%, it is a solid income stock that is on the cusp of becoming a Dividend King, having raised its payouts for 49 years in a row.
Whether you are looking for stability or just a great source of recurring income, Abbott is a stock you should consider for your portfolio.
2. Johnson & Johnson
A dividend payer with an even more storied history, Johnson & Johnson raised its payout in April for the 59th year in a row. At 2.6%, its yield is higher than Abbott's, and its payout ratio of 53% shows no reason for concern.
But the dividend is just one reason to like Johnson & Johnson. The company's COVID-19 vaccine is one of three that have been granted an emergency use authorization from the U.S. Food and Drug Administration (the others are from Moderna and Pfizer/BioNTech). And with multiple variants of COVID-19 creating new issues, annual booster shots may be necessary, potentially delivering multiple years of recurring revenue for Johnson & Johnson. This year alone, the company could generate up to $10 billion in revenue from its vaccine.
Health officials hit pause on the company's vaccine earlier this month after it was linked to blood clots. However, the rollout has since resumed as the government believes the benefits far outweigh the risks. Out of almost 8 million people who were given the vaccine, 15 had blood clots. Given the relatively low risk, it's not likely that will be enough to discourage people from taking the vaccine. But with $80 billion plus in annual revenue, its vaccine sales aren't exactly going to make or break the company, either.
Like Abbott, Johnson & Johnson is well-diversified and generates revenue from multiple areas -- this company will likely do well even if its vaccine struggles to generate the sales the company is hoping for. Pharmaceutical sales grew 8% to $45.6 billion in 2020 and accounted for more than half (55%) of the company's total revenue of $82.6 billion. Medical devices contributed $23 billion (28%) despite falling 12%, and consumer health sales rose by 1% and added the remaining $14.1 billion (17%) in revenue.
Although its sales were flat last year, strong demand for its vaccine could change that in the years ahead and turn Johnson & Johnson into a more attractive growth stock. The company will also have more opportunities in treating autoimmune diseases after acquiring Momenta Pharmaceuticals last year in a move that will bolster its pipeline. One of the key assets it acquired in the deal was nipocalimab, a monoclonal antibody that could generate over $1 billion in peak annual sales all on its own. These exciting growth opportunities combined with the company's diverse operations and strong dividend make Johnson & Johnson an investment you can buy and forget about, for at least the next decade.
3. Intuitive Surgical
The only stock of these three that doesn't pay its shareholders a dividend is Intuitive Surgical. But it more than makes up for that with growth opportunities. Robot-assisted surgery is an exciting area to invest in with great potential for long-term returns; according to the website ResearchAndMarkets, theglobal marketfor robotic surgical devices will be worth $4.7 billion in 2030 and is growing at a compound annual rate of 14.1%, which will rise to 15.4% in 2025.
Intuitive Surgical's iconic da Vinci surgical devices can tap into that potential. And if there are more procedures due to the long-term effects of COVID-19, demand could be even stronger than what analysts are currently forecasting, as they likely wouldn't have factored that into their projections. Thus far, the pandemic has hurt the company's business because hospitals have been deferring procedures. But as coronavirus hospitalizations come down, which should happen as more people are vaccinated, that should clear the way for hospitals to resume regular day-to-day operations.
And there are already signs of that. On April 20, Intuitive released its first-quarter earnings for the period ending March 31. The number of da Vinci procedures rose 16% year over year. That was a sharp improvement from the previous quarter, when the number of procedures was up by only 6%. And for all of 2020, the growth rate was just 1%.
The company also shipped 298 da Vinci surgical systems during the first quarter, a 26% increase from the prior-year period. Although it shipped more devices (326) in the fourth quarter of 2020, that was down 3% from the previous year.
Things are looking up for Intuitive Surgical as hospitals look to be getting back to normal. And with the industry experiencing significant growth, this stock could deliver some great returns for investors over the next 10-plus years.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends Johnson & Johnson and Moderna Inc. and recommends the following options: long January 2022 $580.0 calls on Intuitive Surgical and short January 2022 $600.0 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. | Three healthcare stocks you should be able to comfortably hold for at least the next decade are Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), and Intuitive Surgical (NASDAQ: ISRG). But now -- with one in three people who've been hospitalized with COVID-19 facing long-term health problems after discharge -- demand could heighten beyond the normal care that will resume post-pandemic. One of the key assets it acquired in the deal was nipocalimab, a monoclonal antibody that could generate over $1 billion in peak annual sales all on its own. | Three healthcare stocks you should be able to comfortably hold for at least the next decade are Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), and Intuitive Surgical (NASDAQ: ISRG). And with multiple variants of COVID-19 creating new issues, annual booster shots may be necessary, potentially delivering multiple years of recurring revenue for Johnson & Johnson. These exciting growth opportunities combined with the company's diverse operations and strong dividend make Johnson & Johnson an investment you can buy and forget about, for at least the next decade. | Three healthcare stocks you should be able to comfortably hold for at least the next decade are Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), and Intuitive Surgical (NASDAQ: ISRG). Johnson & Johnson A dividend payer with an even more storied history, Johnson & Johnson raised its payout in April for the 59th year in a row. Like Abbott, Johnson & Johnson is well-diversified and generates revenue from multiple areas -- this company will likely do well even if its vaccine struggles to generate the sales the company is hoping for. | Three healthcare stocks you should be able to comfortably hold for at least the next decade are Abbott Laboratories (NYSE: ABT), Johnson & Johnson (NYSE: JNJ), and Intuitive Surgical (NASDAQ: ISRG). This year alone, the company could generate up to $10 billion in revenue from its vaccine. But with $80 billion plus in annual revenue, its vaccine sales aren't exactly going to make or break the company, either. |
32157.0 | 2021-04-27 00:00:00 UTC | Can This Popular Reddit Stock Make You Rich? | ABT | https://www.nasdaq.com/articles/can-this-popular-reddit-stock-make-you-rich-2021-04-27 | nan | nan | There were few better zero-to-hero penny stocks in 2020 than that of continuous glucose monitor (CGM) manufacturer Senseonic Holdings (NYSEMKT: SENS). In July 2020, its stock was worth $0.40 cents per share. By February 2021, however, its share price shot up to over $5.50 thanks in part to Reddit-fueled speculation.
Despite a 60% plunge from highs, the company still has an impressive market cap of $907 million, considering its precarious revenue situation. Because of competition concerns, Senseonic has also attracted a dedicated base of traders betting against its success, with over 18% of the entire float sold short. Can Senseonic beat the naysayers and continue its momentum?
Image source: Getty Images.
The bull case for Senseonic
Back in September, Senseonic received a life-saving $35 million cash infusion from Ascensia to resume the commercialization of its GCM device, Eversense. The company had halted sales of these CGMs as patients with chronic illnesses deferred medical procedures (such as CGM implants) that put them at risk of exposure to COVID-19. Sales resumed that month. There are currently only four companies making CGMs in the U.S., and Senseonic's device has been reported to have the best accuracy and last the longest.
Senseonic is awaiting a decision by the U.S. Food and Drug Administration (FDA) on its Eversense 180 CGM. If successful, the company's glucose sensors would only require replacement every six months, compared to three months for its current device. Senseonic also anticipates the launch of Eversense 365 in 2023 and an improved version with real time glucose updates and storage to arrive on the scene in 2024.
This year, the company expects to generate between $12 million and $15 million in revenue. By 2025, it believes that its Eversense sales could skyrocket to upwards of $200 million per year.
The bear case for Senseonic
There is no doubt that these projections are very rosy. However, the future looks far bleaker after evaluating products from Senseonic's competitors. The Eversense monitors are largely first-generation medical devices with sensors that require surgical implants into a patient's body (at a clinic, doctor's office, or hospital). At the moment, sixth-generation CGMs, such as the Dexcom G6 (made by the namesake company, Dexcom), come with self-serve insertion bots for their sensors.
The Dexcom G6 also allows for real-time monitoring of glucose levels, with a mean measurement error of 9% compared to Eversense's 8.5%. The best part is its affordability. Each Dexcom G6 sensor lasts for 10 days, while its transmitter lasts for about three months. All combined, the CGM has an upkeep of $6,100 per year plus a one-time $365 fee for the receiver.
Meanwhile, the current Eversense CGM sensor lasts 90 days, costs $2,147 for a first-time insertion, and $1,279 for every subsequent removal and reinsertion. The annual upkeep of the CGM is around $5,984. Since the cost is dependent on the number of procedures, it will fall as the sensor life increases. It's estimated to be just $3,426 for Eversense 180 and far less for Eversense 365, if the devices are approved. But we cannot look at just cost when comparing the devices. It's far more convenient for patients to get self-insertion CGMs through the mail rather than have them implanted at a doctor's office.
Between 2018 and 2020, Senseonic generated a meager $8.3 million in product revenue. It cannot manage to break even in terms of gross margin. Since its inception in 1996, the company has lost $648.5 million. Before its $175 million equity infusion in Q1 2021, the company had just $35.9 million in assets to offset $177.2 million in liabilities.
What's the verdict?
The best word I can think of to describe the Eversense CGM series is "fragile." Sure, the device lasts longer and has marginally better accuracy, but its surgical implant requirement is a huge drawback, which has become especially evident during the pandemic.
What's more, the high cost of innovation makes Senseonic's business model unsustainable. Its peers, such as Abbott Laboratories (NYSE: ABT), Dexcom, and Medtronic (NYSE: MDT), are all better capitalized and farther ahead in their technology. By the time Senseonic launches Eversense 365, its competitors will likely have moved on to seventh or eighth-generation CGMs. It's typically not a good idea to go long on stocks of a healthcare company that can only play catch-up.
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Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool owns shares of and 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. | Its peers, such as Abbott Laboratories (NYSE: ABT), Dexcom, and Medtronic (NYSE: MDT), are all better capitalized and farther ahead in their technology. The company had halted sales of these CGMs as patients with chronic illnesses deferred medical procedures (such as CGM implants) that put them at risk of exposure to COVID-19. Senseonic also anticipates the launch of Eversense 365 in 2023 and an improved version with real time glucose updates and storage to arrive on the scene in 2024. | Its peers, such as Abbott Laboratories (NYSE: ABT), Dexcom, and Medtronic (NYSE: MDT), are all better capitalized and farther ahead in their technology. There were few better zero-to-hero penny stocks in 2020 than that of continuous glucose monitor (CGM) manufacturer Senseonic Holdings (NYSEMKT: SENS). The Eversense monitors are largely first-generation medical devices with sensors that require surgical implants into a patient's body (at a clinic, doctor's office, or hospital). | Its peers, such as Abbott Laboratories (NYSE: ABT), Dexcom, and Medtronic (NYSE: MDT), are all better capitalized and farther ahead in their technology. There were few better zero-to-hero penny stocks in 2020 than that of continuous glucose monitor (CGM) manufacturer Senseonic Holdings (NYSEMKT: SENS). The bull case for Senseonic Back in September, Senseonic received a life-saving $35 million cash infusion from Ascensia to resume the commercialization of its GCM device, Eversense. | Its peers, such as Abbott Laboratories (NYSE: ABT), Dexcom, and Medtronic (NYSE: MDT), are all better capitalized and farther ahead in their technology. It's estimated to be just $3,426 for Eversense 180 and far less for Eversense 365, if the devices are approved. But we cannot look at just cost when comparing the devices. |
32158.0 | 2021-04-26 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-2021-04-26 | 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
Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68%
SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73%
ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99%
Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45%
Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10%
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
Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62%
SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01%
ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41%
Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91%
Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35%
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
Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01%
SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88%
ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74%
Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12%
Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77%
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 BKH — 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. Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% 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. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% 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. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% 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. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% 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. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. |
32159.0 | 2021-04-23 00:00:00 UTC | Should You Buy Sarepta Stock At $71? | ABT | https://www.nasdaq.com/articles/should-you-buy-sarepta-stock-at-%2471-2021-04-23 | nan | nan | We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. SRPT stock is down 20% off the March 2020 bottom compared to the S&P which has moved 85%. SRPT stock has significantly underperformed the broader markets, primarily due to a development around its pipeline. Earlier in January 2021 the company announced an unfavorable outcome from clinical trials for one of its drugs, SRP-9001, used for treating Duchenne muscular dystrophy (DMD), and SRPT stock crashed 52% in a single trading session following the announcement. However, now that the stock has corrected (down 40% in the last one year) despite revenue growing 42% y-o-y over the last four quarters, we believe SRPT stock is likely to see higher levels. Our dashboard ‘Buy Or Fear Sarepta Therapeutics Stock‘ provides the key numbers behind our thinking.
Looking at a longer time period, SRPT stock is actually down 35% from levels seen toward the end of 2018. The decline in stock price over the last two years or so can be attributed to unfavorable changes in the company’s P/S multiple. The company’s revenues have trended higher, rising 79% from $301 million in 2018 to $540 million in 2020, led by higher demand for its DMD treatments. While the company posted strong revenue growth over the recent years, it also issued more shares, resulting in a 18% jump in total shares outstanding. As such, on a per share basis, revenue grew 53% from $4.54 in 2018 to $6.93 in 2020. Despite the strong RPS growth, the company’s P/S multiple has actually contracted, falling from levels of over 24x seen between 2018 and 2020 to 10x currently.
Outlook
2020 has been a solid year for Sarepta’s revenue growth, courtesy of its DMD treatments. The development around SRP-9001 surely is negative for the company, as there will likely be a two year delay in the study, and a treatment from Pfizer is now expected to take the lead. However, Sarepta has a large pipeline with 42 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company announced positive results from clinical trials. Also, the U.S. FDA has approved Amondys 45, a drug used to treat certain patients with DMD. Amondys is the third drug from Sarepta, after Exondys 51 and Vyondys 53, all used for the treatment of DMD, and these combined cover 30% of the DMD patients in the U.S.
Looking forward, Sarepta will likely see an increase in demand for its DMD treatments, given the market is large, and it is expected to grow at a CAGR of 11% over the next few years. While the Covid-19 related lockdowns had earlier impacted expansion of several drugs in 2020, due to a delay in new patient enrollments, the trend has largely reversed over the recent months. Now that 40% of the U.S. population has already received at least one dose of a Covid-19 vaccine, the U.S. in particular is fast approaching toward normalcy. That said, any further recovery in the economy and its timing hinge on the broader containment of the coronavirus spread. We are now seeing a large spike in Covid-19 cases in some of the countries, such as India and Brazil, owing to the new variants of the virus. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia.
Finally, looking at the valuation, we believe that SRPT stock is undervalued at the current levels of $71. Currently, investors seem to be worried about the pipeline and revenue dependency only on DMD treatments. However, going by the numbers, Sarepta’s revenues are estimated to grow a solid 65% between 2020 and 2022. This means that on a per share basis, the company’s revenue will grow from $6.93 in 2020 to around $11.45 in 2022. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. To some extent the decline in the P/S multiple is justified given the delay in SRP-9001, but the selling now appears to be overdone, and we believe the stock will likely see a strong rebound in the near term.
While SRPT 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 Catalent vs. Emergent Biosolutions.
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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. | However, Sarepta has a large pipeline with 42 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company announced positive results from clinical trials. While the Covid-19 related lockdowns had earlier impacted expansion of several drugs in 2020, due to a delay in new patient enrollments, the trend has largely reversed over the recent months. To some extent the decline in the P/S multiple is justified given the delay in SRP-9001, but the selling now appears to be overdone, and we believe the stock will likely see a strong rebound in the near term. | We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. Earlier in January 2021 the company announced an unfavorable outcome from clinical trials for one of its drugs, SRP-9001, used for treating Duchenne muscular dystrophy (DMD), and SRPT stock crashed 52% in a single trading session following the announcement. The company’s revenues have trended higher, rising 79% from $301 million in 2018 to $540 million in 2020, led by higher demand for its DMD treatments. | We believe that the stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, is undervalued at current levels of $71. However, now that the stock has corrected (down 40% in the last one year) despite revenue growing 42% y-o-y over the last four quarters, we believe SRPT stock is likely to see higher levels. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. | Looking forward, Sarepta will likely see an increase in demand for its DMD treatments, given the market is large, and it is expected to grow at a CAGR of 11% over the next few years. However, going by the numbers, Sarepta’s revenues are estimated to grow a solid 65% between 2020 and 2022. At the current price of $71, SRPT stock is trading at just 9x its 2021 and 6x its 2022 RPS, compared to levels of 24x seen over the recent years, implying that SRPT stock is undervalued currently. |
32160.0 | 2021-04-22 00:00:00 UTC | Notable ETF Outflow Detected - IVV, T, ABT, CVX | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-ivv-t-abt-cvx-2021-04-22 | 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 Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.2 billion dollar outflow -- that's a 0.4% decrease week over week (from 662,700,000 to 659,800,000). Among the largest underlying components of IVV, in trading today AT&T Inc (Symbol: T) is up about 5.1%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower 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 $275 per share, with $419.48 as the 52 week high point — that compares with a last trade of $416.90. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVV, in trading today AT&T Inc (Symbol: T) is up about 5.1%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower 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 $275 per share, with $419.48 as the 52 week high point — that compares with a last trade of $416.90. 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 AT&T Inc (Symbol: T) is up about 5.1%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower 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 $275 per share, with $419.48 as the 52 week high point — that compares with a last trade of $416.90. 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 AT&T Inc (Symbol: T) is up about 5.1%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.2 billion dollar outflow -- that's a 0.4% decrease week over week (from 662,700,000 to 659,800,000). 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 $275 per share, with $419.48 as the 52 week high point — that compares with a last trade of $416.90. | Among the largest underlying components of IVV, in trading today AT&T Inc (Symbol: T) is up about 5.1%, Abbott Laboratories (Symbol: ABT) is up about 0.9%, and Chevron Corporation (Symbol: CVX) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.2 billion dollar outflow -- that's a 0.4% decrease week over week (from 662,700,000 to 659,800,000). 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 $275 per share, with $419.48 as the 52 week high point — that compares with a last trade of $416.90. |
32161.0 | 2021-04-22 00:00:00 UTC | Quest Diagnostics beats profit estimates as non-COVID-19 businesses recover | ABT | https://www.nasdaq.com/articles/quest-diagnostics-beats-profit-estimates-as-non-covid-19-businesses-recover-2021-04-22 | nan | nan | Compares with estimates, adds background
April 22 (Reuters) - Medical device maker Quest Diagnostics Inc DGX.N beat first-quarter profit estimates on Thursday boosted by a recovery of its non-COVID-19-related businesses, which helped offset a fall in demand for its coronavirus testing services.
The company said it had seen an improvement in its core business as more people get vaccinated and expects demand for its testing services to fully recover by the end of this year. Quest in February had predicted COVID-19 testing volumes would decline through the first half of 2021.
Bigger rival Abbott Laboratories ABT.N also saw a drop in demand for its COVID-19 tests and fell short of its first-quarter revenue estimates on Tuesday.
Quest also raised its profit forecast for the first half of 2021 to between $6.30 and $6.80 per share, from earlier expectations $5.90 to $6.90 per share.
Excluding items, Quest earned $3.76 per share, beating estimates of $3.71 per share, according to .
Net income attributable to the company rose to $469 million, or $3.46 per share, in the quarter ended March 31, from $99 million, or 73 cents per share, a year earlier.
Revenue increased 49.2% to $2.72 billion.
(Reporting by Trisha Roy in Bengaluru; Editing by Amy Caren Daniel)
((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6182 3635;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bigger rival Abbott Laboratories ABT.N also saw a drop in demand for its COVID-19 tests and fell short of its first-quarter revenue estimates on Tuesday. Compares with estimates, adds background April 22 (Reuters) - Medical device maker Quest Diagnostics Inc DGX.N beat first-quarter profit estimates on Thursday boosted by a recovery of its non-COVID-19-related businesses, which helped offset a fall in demand for its coronavirus testing services. The company said it had seen an improvement in its core business as more people get vaccinated and expects demand for its testing services to fully recover by the end of this year. | Bigger rival Abbott Laboratories ABT.N also saw a drop in demand for its COVID-19 tests and fell short of its first-quarter revenue estimates on Tuesday. Compares with estimates, adds background April 22 (Reuters) - Medical device maker Quest Diagnostics Inc DGX.N beat first-quarter profit estimates on Thursday boosted by a recovery of its non-COVID-19-related businesses, which helped offset a fall in demand for its coronavirus testing services. Net income attributable to the company rose to $469 million, or $3.46 per share, in the quarter ended March 31, from $99 million, or 73 cents per share, a year earlier. | Bigger rival Abbott Laboratories ABT.N also saw a drop in demand for its COVID-19 tests and fell short of its first-quarter revenue estimates on Tuesday. Compares with estimates, adds background April 22 (Reuters) - Medical device maker Quest Diagnostics Inc DGX.N beat first-quarter profit estimates on Thursday boosted by a recovery of its non-COVID-19-related businesses, which helped offset a fall in demand for its coronavirus testing services. Quest also raised its profit forecast for the first half of 2021 to between $6.30 and $6.80 per share, from earlier expectations $5.90 to $6.90 per share. | Bigger rival Abbott Laboratories ABT.N also saw a drop in demand for its COVID-19 tests and fell short of its first-quarter revenue estimates on Tuesday. Compares with estimates, adds background April 22 (Reuters) - Medical device maker Quest Diagnostics Inc DGX.N beat first-quarter profit estimates on Thursday boosted by a recovery of its non-COVID-19-related businesses, which helped offset a fall in demand for its coronavirus testing services. Quest also raised its profit forecast for the first half of 2021 to between $6.30 and $6.80 per share, from earlier expectations $5.90 to $6.90 per share. |
32162.0 | 2021-04-22 00:00:00 UTC | Which Stocks Are the Biggest Losers From Sinking COVID Testing Rates? | ABT | https://www.nasdaq.com/articles/which-stocks-are-the-biggest-losers-from-sinking-covid-testing-rates-2021-04-22 | nan | nan | COVID-19 testing rates are sinking significantly. While that could be good news in one sense, it could also be bad news for companies that offer COVID-19 diagnostics tests. In this Motley Fool Live video recorded on April 14, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss which stocks could be the biggest losers from this trend.
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Keith Speights: Now I came across another story recently, and in some ways it's surprising. While increasingly more Americans are receiving COVID-19 vaccines, the rates of COVID testing are falling pretty significantly in the United States.
I looked at the Johns Hopkins coronavirus resource center tracking site, and there's been a significant decline in recent weeks in COVID testing rates. Brian, what do you make of this, first of all, and secondly, which stocks do you think could be the biggest losers from this sinking COVID-19 testing rates?
Brian Orelli: I think we were at about a million tests a day right now, and that's down from a high of 2.3 million tests in mid-January, so we're at less than half of the peak. I think it probably depends on what types of tests are being performed, are these general surveillance tests versus somebody who's symptomatic and we're trying to figure whether they have COVID-19 or they have something else.
For something like a general surveillance, I think Fulgent Genetics (NASDAQ: FLGT), they have a lot of large contracts for general surveillance. So I think if that type of test is going down, Fulgent's going to be heard.
A company like Quidel (NASDAQ: QDEL), who's more likely to have its machines in a doctor's office, so I would imagine those are mostly going to be symptomatic tests. You go to the doctor and are sick and the doctor tries to figure out whether you have COVID-19 or the flu. I think that's probably the biggest question mark that I have, is which type of test is the one that's going down.
You can imagine that surveillance might stick around a little bit longer than symptomatic, but also people are sick from other things, even if they're not getting COVID-19, they may still get the COVID-19 test because you have flu-like symptoms or COVID-19 like symptoms, and so the doctor has to rule out COVID-19.
Even if the rate of COVID-19 goes down, those people might still get tested. Obviously, there's plenty of other test makers, Abbott (NYSE: ABT) comes to mind, Becton, Dickenson (NYSE: BDX). But those are all really large companies, and so I think the effect of losing out on sales of COVID-19 tests is probably not going to hurt them so much.
Keith Speights: The tickers, by the way, actually I just saw, Brian, you sent them out. Abbott and Becton and Dickinson, ABT and BDX there.
I think we may be getting a glimpse of the future here. The extremely high rates of COVID-19 testing were not going to continue indefinitely, and so they were bound to fall off. They're falling off sooner than I thought they would, but I would anticipate that going into 2022 and beyond that we're going to see quite smaller levels of testing rates. The companies that are best positioned for the long haul are going to be some of the big companies like you mentioned, like an Abbott Labs, I would think.
Orelli: Yeah. I agree.
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 Fulgent Genetics, Inc. and Quidel. The Motley Fool recommends Becton, Dickinson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Obviously, there's plenty of other test makers, Abbott (NYSE: ABT) comes to mind, Becton, Dickenson (NYSE: BDX). Abbott and Becton and Dickinson, ABT and BDX there. While increasingly more Americans are receiving COVID-19 vaccines, the rates of COVID testing are falling pretty significantly in the United States. | Obviously, there's plenty of other test makers, Abbott (NYSE: ABT) comes to mind, Becton, Dickenson (NYSE: BDX). Abbott and Becton and Dickinson, ABT and BDX there. In this Motley Fool Live video recorded on April 14, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss which stocks could be the biggest losers from this trend. | Obviously, there's plenty of other test makers, Abbott (NYSE: ABT) comes to mind, Becton, Dickenson (NYSE: BDX). Abbott and Becton and Dickinson, ABT and BDX there. In this Motley Fool Live video recorded on April 14, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss which stocks could be the biggest losers from this trend. | Obviously, there's plenty of other test makers, Abbott (NYSE: ABT) comes to mind, Becton, Dickenson (NYSE: BDX). Abbott and Becton and Dickinson, ABT and BDX there. In this Motley Fool Live video recorded on April 14, 2021, Motley Fool contributors Keith Speights and Brian Orelli discuss which stocks could be the biggest losers from this trend. |
32163.0 | 2021-04-22 00:00:00 UTC | 3 Things to Cheer About in Abbott's Earnings Report | ABT | https://www.nasdaq.com/articles/3-things-to-cheer-about-in-abbotts-earnings-report-2021-04-22 | nan | nan | Abbott Laboratories (NYSE: ABT) disappointed some investors after first-quarter revenue lagged behind analysts' estimates. The stock slipped 3.6% Tuesday following the news. Investors probably were hoping that Abbott's coronavirus diagnostics along with the strength of its star product -- the FreeStyle Libre continuous glucose monitoring system -- would offer revenue a bigger push.
But let's put the report into perspective. Abbott's revenue still rose more than 35% to $10.5 billion in the first quarter. And earnings per share beat analysts' estimates for the fourth consecutive quarter. That isn't all. There are three more elements in the earnings report that should give investors reason to cheer.
Image source: Getty Images.
1. The future of coronavirus testing
The future of coronavirus testing may be at home. And Abbott is set to lead in that area. The U.S. Food and Drug Administration (FDA) recently granted the company Emergency Use Authorization for an at-home version of the BinaxNOW test. Abbott launched the BinaxNOW affordable and rapid test for professional use in August.
"We have to have scale to be able to meet the demand," CEO Robert B. Ford said during theearnings call "And quite frankly, we're probably the leaders here in terms of production. We feel good about this opportunity."
Abbott plans on producing "tens of millions" of the self-tests per month and can make even more if needed. At $23.99 for a pack of two, the test is the cheapest on the market right now.
Abbott's coronavirus diagnostics revenue in the first quarter was $2.2 billion -- and rapid tests made up 85% of COVID testing sales.
2. Medical device recovery
While Abbott's coronavirus testing sales surged last year, the company's medical device unit suffered. Hospitals worldwide focused resources on coronavirus patients. And as a result, they postponed nonessential surgeries.
Abbott felt the impact. For the 2020 full year, revenue fell in six of the seven medical device categories. Only diabetes care posted sales gains, led by the FreeStyle Libre.
But Abbott had good news for us this week. In the first quarter, revenue climbed in all categories except heart failure. The coronavirus outbreak continued to cause delayed procedures early in the year. But Abbott said cardiovascular procedure volumes started to climb in March -- by mid-single digits compared to pre-COVID days.
This is key since the medical device business made up the biggest percentage of Abbott's total revenue prior to the pandemic. Medical device sales accounted for 38% of annual revenue in 2019.
3. Billion-dollar markets ahead
During theearnings call Abbott's CEO spoke of major product launches next year in "multi-billion-dollar segments." One is the Amulet, a product cleared for use in international markets. Doctors use the Amulet on patients at risk for a stroke. The Amulet seals off a pouch in the heart where blood otherwise can pool and then form clots. Abbott filed for FDA clearance last year.
Ford also referred to a possible indication expansion for CardioMEMS, a wireless heart failure monitor. He said Abbott plans to make the request "relatively soon." Right now, the device is indicated for certain patients who have been hospitalized for heart failure in the previous year. Ford said a label expansion would "significantly broaden the U.S. market opportunity."
What does this mean for investors?
Abbott is growing revenue and earnings -- and that's a big positive.
ABT Revenue (Quarterly) data by YCharts
Another big positive is the fact that Abbott is on track to meet its goal of 35% earnings-per-share growth for the full year 2021. The three elements I highlight above make the picture even brighter. And this means Abbott still is a great long-term stock for any healthcare portfolio.
10 stocks we like better than Abbott Laboratories
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT Revenue (Quarterly) data by YCharts Another big positive is the fact that Abbott is on track to meet its goal of 35% earnings-per-share growth for the full year 2021. Abbott Laboratories (NYSE: ABT) disappointed some investors after first-quarter revenue lagged behind analysts' estimates. Investors probably were hoping that Abbott's coronavirus diagnostics along with the strength of its star product -- the FreeStyle Libre continuous glucose monitoring system -- would offer revenue a bigger push. | Abbott Laboratories (NYSE: ABT) disappointed some investors after first-quarter revenue lagged behind analysts' estimates. ABT Revenue (Quarterly) data by YCharts Another big positive is the fact that Abbott is on track to meet its goal of 35% earnings-per-share growth for the full year 2021. Abbott's coronavirus diagnostics revenue in the first quarter was $2.2 billion -- and rapid tests made up 85% of COVID testing sales. | Abbott Laboratories (NYSE: ABT) disappointed some investors after first-quarter revenue lagged behind analysts' estimates. ABT Revenue (Quarterly) data by YCharts Another big positive is the fact that Abbott is on track to meet its goal of 35% earnings-per-share growth for the full year 2021. Investors probably were hoping that Abbott's coronavirus diagnostics along with the strength of its star product -- the FreeStyle Libre continuous glucose monitoring system -- would offer revenue a bigger push. | Abbott Laboratories (NYSE: ABT) disappointed some investors after first-quarter revenue lagged behind analysts' estimates. ABT Revenue (Quarterly) data by YCharts Another big positive is the fact that Abbott is on track to meet its goal of 35% earnings-per-share growth for the full year 2021. Abbott's coronavirus diagnostics revenue in the first quarter was $2.2 billion -- and rapid tests made up 85% of COVID testing sales. |
32164.0 | 2021-04-21 00:00:00 UTC | Validea Peter Lynch Strategy Daily Upgrade Report - 4/21/2021 | ABT | https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-4-21-2021-2021-04-21 | nan | nan | The following are today's upgrades for 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.
TEXAS PACIFIC LAND CORP (TPL) is a large-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% 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: Texas Pacific Land Corp is engaged in managing land, including royalty interests, for the benefit of its owners. The Company's operating segments are Land and Resource Management, and Water Services and Operations. The Company operates as a landowner in the State of Texas with approximately 880,000 acres of land in West Texas. The Land and Resource Management segment focuses on managing TPL's oil and gas royalty interest and surface acres located in over 19 different counties. Its revenue streams principally consist of oil and gas royalties, commercial lease, land sales, easements and materials sales. Its Water Services and Operations offers various solutions, such as water sourcing, infrastructure development, water tracking, analytics, well testing, produced water gathering/treatment/recycling and produced water disposal 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/GROWTH RATIO: FAIL
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of TEXAS PACIFIC LAND CORP
Full Guru Analysis for TPL
Full Factor Report for TPL
INGEVITY CORP (NGVT) is a mid-cap growth stock in the Chemical Manufacturing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Ingevity Corporation is a manufacturer of specialty chemicals and high performance carbon materials. The Company is also a manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Company operates through two segments: Performance Materials and Performance Chemicals. The Performance Materials segment primarily produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Performance Chemicals segment develops, manufactures and sells a range of specialty chemicals primarily derived from co-products of the Kraft pulping process. Its products are used in a range of applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions.
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: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of INGEVITY CORP
Full Guru Analysis for NGVT
Full Factor Report for NGVT
PRIMORIS SERVICES CORP (PRIM) is a small-cap growth stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Primoris Services Corporation is a provider of specialty contracting services operating mainly in the United States and Canada. The Company provides a wide range of specialty construction services, fabrication, maintenance, replacement, procurement and engineering services through its three segments: Utilities Segment, Energy Segment and Pipeline Services Segment. The Utilities Segment offers a range of services, including installation and maintenance of new and existing natural gas utility distribution systems, electric utility transmission, substation and pipeline integrity services. The Company's Energy Segment provides engineering, procurement and construction, retrofits, upgrades, repairs, outages and maintenance services. It also specializes in highway, bridge and airport runway construction, demolition and site work. The Pipeline Services Segment offers pipeline construction and maintenance, pipeline facility and integrity 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/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: FAIL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of PRIMORIS SERVICES CORP
Full Guru Analysis for PRIM
Full Factor Report for PRIM
FARMERS & MERCHANTS BANCORP INC (FMAO) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 80% 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: Farmers & Merchants Bancorp, Inc. is a bank holding company. The Company's primary subsidiary, The Farmers & Merchants State Bank (the Bank), is a community bank operating in Northwest Ohio and Northeast Indiana. The Company's other subsidiary, Farmers & Merchants Risk Management (Captive), is a captive insurance company. The Bank is engaged in general commercial banking business. The Bank's activities include commercial, agricultural and residential mortgage as well as consumer and credit card lending activities. The Bank's loan portfolio consists of loans made to customers in the farming industry for such things as farm land, farm equipment, livestock and operating loans for seed, fertilizer and feed. Its other types of lending activities include loans for home improvements and loans for such items as autos, trucks, recreational vehicles and motorcycles. The Bank also provides checking account services, as well as savings and time deposit services, such as certificates of deposits.
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.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: BONUS PASS
Detailed Analysis of FARMERS & MERCHANTS BANCORP INC
Full Guru Analysis for FMAO
Full Factor Report for FMAO
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 changed from 69% to 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
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KEYCORP (KEY) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 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: KeyCorp is a bank holding company. The Company is a bank-based financial services company. The Company operates through its subsidiary, KeyBank National Association (KeyBank), which is engaged in providing banking services. Through KeyBank and other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients. Its segments include Key Community Bank and Key Corporate Bank. Key Community Bank serves individuals and small to mid-sized businesses by offering a range of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services. Key Corporate Bank is a full-service corporate and investment bank focused on serving the needs of middle market clients in industry sectors, which include consumer, energy, healthcare, industrial, public sector, real estate and technology.
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.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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DARLING INGREDIENTS INC (DAR) is a large-cap growth stock in the Food Processing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 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: Darling Ingredients Inc. (Darling) is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. The Company operates through three segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment.
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 DARLING INGREDIENTS INC
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TETRA TECH, INC. (TTEK) is a mid-cap growth stock in the Waste Management Services industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% 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: Tetra Tech, Inc. is a provider of consulting, engineering, program management, construction management, and technical services. The Company's segments include Water, Environment and Infrastructure (WEI), Resource Management and Energy (RME), and Remediation and Construction Management (RCM). The WEI segment provides consulting and engineering services. The RME segment provides consulting and engineering services across the world for a range of resource management and energy needs. The Company includes wind-down of its non-core construction activities in the RCM segment. Its solutions span the entire life cycle of consulting and engineering projects and include applied science, research and technology, engineering, design, construction management, operations and maintenance, and information technology. It provides its services to a diverse base of international, the United States commercial, the United Sates federal clients.
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
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of TETRA TECH, INC.
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MACATAWA BANK CORPORATION (MCBC) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Macatawa Bank Corporation is a bank holding company. The Company, through its subsidiary, Macatawa Bank (the Bank), offers a range of commercial and personal banking services, including checking, savings and certificates of deposit accounts, cash management, safe deposit boxes, trust services and commercial, mortgage and consumer loans. The Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. Its other services include automated teller machines (ATMs), Internet banking, telephone banking and debit cards. The Bank provides various brokerage services, including discount brokerage through Infinex, personal financial planning and consultation regarding mutual funds. As of December 31, 2016, the Bank operated 26 full service branch offices providing a range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan.
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.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of MACATAWA BANK CORPORATION
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AUTONATION, INC. (AN) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 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: AutoNation, Inc. (AutoNation) is an automotive retailer in the United States. The Company offers a range of automotive products and services, including new vehicles, used vehicles, parts and service, which includes automotive repair and maintenance services, as well as wholesale parts and collision businesses, and automotive finance and insurance products, including vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. It operates through three segments: Domestic, Import and Premium Luxury. Its Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford and FCA US. The Import segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda and Nissan. The Premium Luxury segment consists of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Audi and Lexus.
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.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of AUTONATION, INC.
Full Guru Analysis for AN
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SUMMIT FINANCIAL GROUP, INC. (SMMF) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Summit Financial Group Inc. is a financial holding company. The Company provide community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia. It provides its services through its community bank subsidiary, Summit Community Bank (the Bank). The Bank operates through approximately 43 banking locations. Its loan portfolio includes commercial, commercial real estate, construction and land development, residential real estate, consumer and mortgage warehouse lines of credit. It offers various deposit products, such as noninterest bearing demand deposit, interest bearing demand deposit, savings deposit and time deposits. The bank also offers trust and wealth management services and cash management 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.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of SUMMIT FINANCIAL GROUP, INC.
Full Guru Analysis for SMMF
Full Factor Report for SMMF
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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. | Detailed Analysis of FARMERS & MERCHANTS BANCORP INC Full Guru Analysis for FMAO Full Factor Report for FMAO 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 KEYCORP (KEY) is a large-cap value stock in the Regional Banks industry. The Performance Materials segment primarily produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. | Detailed Analysis of FARMERS & MERCHANTS BANCORP INC Full Guru Analysis for FMAO Full Factor Report for FMAO 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 KEYCORP (KEY) is a large-cap value stock in the Regional Banks industry. Detailed Analysis of TEXAS PACIFIC LAND CORP Full Guru Analysis for TPL Full Factor Report for TPL INGEVITY CORP (NGVT) is a mid-cap growth stock in the Chemical Manufacturing industry. | Detailed Analysis of FARMERS & MERCHANTS BANCORP INC Full Guru Analysis for FMAO Full Factor Report for FMAO 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 KEYCORP (KEY) is a large-cap value stock in the Regional Banks industry. The Company provides a wide range of specialty construction services, fabrication, maintenance, replacement, procurement and engineering services through its three segments: Utilities Segment, Energy Segment and Pipeline Services Segment. | Detailed Analysis of FARMERS & MERCHANTS BANCORP INC Full Guru Analysis for FMAO Full Factor Report for FMAO 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 KEYCORP (KEY) is a large-cap value stock in the Regional Banks industry. The Company's operating segments are Land and Resource Management, and Water Services and Operations. |
32165.0 | 2021-04-20 00:00:00 UTC | Abbott Laboratories Shares Sink on Mixed Q1; New Dividend Declared | ABT | https://www.nasdaq.com/articles/abbott-laboratories-shares-sink-on-mixed-q1-new-dividend-declared-2021-04-20 | nan | nan | Few investors like when one of their investments posts a mixed quarter. That seemed to be the dynamic behind Abbott Laboratories (NYSE: ABT) on Tuesday, following the release of its Q1 of fiscal 2021 results.
For the quarter, the pharmaceutical-sector mainstay earned $10.5 billion in revenue, which was over 35% better than in the same period last year. Non-GAAP (adjusted) net income came in at just under $2.37 billion ($1.32 per share) -- more than double the Q1 2020 figure.
Although Abbott didn't hit the average analyst estimate of $10.69 billion on the top line, its per-share adjusted net profit beat the $1.27 forecast by those prognosticators.
Image source: Getty Images.
Abbott's double-digit increases were helped by sales of COVID-testing products, which collectively brought in $2.2 billion during the quarter. Zooming out, all four of the company's business units (nutrition, diagnostics, established pharmaceuticals, and medical devices) enjoyed sales increases, ranging widely from established pharmaceuticals' 2.5% to the nearly 120% of diagnostics.
This is giving Abbott the confidence to predict robust adjusted earnings growth for the full year. The company reiterated its guidance for at least $5 per share in 2021, well up from the previous-year's $3.65. Revenue guidance wasn't provided.
As for one of the company's most attractive features as a stock -- its long-standing quarterly dividend -- a new payout has been declared. The upcoming dividend of $0.45 per share will be paid on May 17 to stockholders of record as of April 15. At the most recent closing share price, it yields 1.5%.
Abbott stock closed 3.6% lower on Tuesday, a steeper fall than the 0.7% decline of the S&P 500 index.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That seemed to be the dynamic behind Abbott Laboratories (NYSE: ABT) on Tuesday, following the release of its Q1 of fiscal 2021 results. Although Abbott didn't hit the average analyst estimate of $10.69 billion on the top line, its per-share adjusted net profit beat the $1.27 forecast by those prognosticators. Abbott's double-digit increases were helped by sales of COVID-testing products, which collectively brought in $2.2 billion during the quarter. | That seemed to be the dynamic behind Abbott Laboratories (NYSE: ABT) on Tuesday, following the release of its Q1 of fiscal 2021 results. 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | That seemed to be the dynamic behind Abbott Laboratories (NYSE: ABT) on Tuesday, following the release of its Q1 of fiscal 2021 results. 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! | That seemed to be the dynamic behind Abbott Laboratories (NYSE: ABT) on Tuesday, following the release of its Q1 of fiscal 2021 results. For the quarter, the pharmaceutical-sector mainstay earned $10.5 billion in revenue, which was over 35% better than in the same period last year. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Abbott Laboratories wasn't one of them! |
32166.0 | 2021-04-20 00:00:00 UTC | Abbott Laboratories (ABT) Q1 2021 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q1-2021-earnings-call-transcript-2021-04-20 | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q1 2021 Earnings Call
Apr 20, 2021, 9:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to Abbott's First Quarter 2021 Earnings Conference Call. [Operator Instructions] This call is being recorded by Abbott, with the exception of any participant questions asked during the question-and-answer session, the entire call, including the question-and-answer session is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's expressed written permission.
I would now like to introduce Mr. Scott Leinenweber, Vice President, Investor Relations Licensing and Acquisitions.
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Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions
Good morning, and thank you for joining us. With me today are Robert Ford, President and Chief Executive Officer; and Bob Funck, Executive Vice President, Finance and Chief Financial Officer. Robert and Bob will provide opening remarks. Following their comments, we'll take your questions.
Before we get started some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2021. Abbott cautions that these forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements.
Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A Risk Factors to our Annual Report on Form 10-K for the year ended December 31st, 2020. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements, as a result of subsequent events or development, except as required by law.
Please note that financial information provided on the call today for sales, EPS and line items of the P&L will be for continuing operations only. On today's conference call as in the past non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Unless otherwise noted our commentary on sales growth refers to organic sales growth, which excludes the impact of foreign exchange.
With that, I will now turn the call over to Robert.
Robert B. Ford -- President and Chief Executive Officer
Thanks, Scott. Good morning, everyone, and thank you for joining us. Today we reported the results of a very strong quarter. Ongoing earnings per share were $1.32 reflecting more than 100% growth compared to the prior year. Sales increased 33% on an organic basis in the quarter.
At the start of the year, we issued full year guidance that reflected another year of strong performance, and through the first quarter we're right on track with those expectations. Our full year 2021 adjusted earnings per share guidance of at least $5 remains unchanged and reflects over 35% growth compared to last year.
Our strong first quarter will comprised of several factors including global COVID testing related sales of $2.2 billion with rapid tests compromising roughly 85% of those sales. Strong sales growth across all four of our major business areas, which resulted in base business organic sales growth excluding COVID testing related sales of nearly 6%. Growth contributions and momentum from several recently launched products across all of our businesses and the impact of significant investments we're making across our portfolio in R&D and commercial initiatives that will further strengthen our sustainable growth profile.
I'll now summarize our first quarter results before turning the call over to Bob. And I'll start with Nutrition, where sales increased nearly 6.5% in the quarter. Performance was led by our Adult Nutrition business, with sales growth of more than 18% in the quarter. The pandemic has brought a lot of awareness to the value of good nutrition including immune support, which is helping to bring new users into the category and more specifically, to our market leading Ensure and Glucerna brands.
Pediatric nutrition sales declined 2.5% in the quarter. Recall, during the first quarter of last year, this business experienced significant pantry stocking ahead of the shelter in place restrictions in several countries at the start of the global pandemic. Our sales growth of this quarter in pediatric nutrition reflects that difficult year-over-year comparison. In the US and several international markets, we continue to capture share with our leading portfolio of Infant formula and toddler brands.
In Diagnostics, sales increased 115%, which was led by significant demand for our portfolio of COVID-19 tests, as well as improvement in the base business. As I mentioned earlier, strong COVID testing related sales were led by our rapid point-of-care platforms, ID NOW, BinaxNOW, and Panbio, as we continue to see demand shift toward rapid testing worldwide. During the quarter, BinaxNOW received US Emergency Use Authorization for over-the-counter non prescription self use for people with or without symptoms. We began shipping test kits to major retailers yesterday.
Just as importantly, our underlying base business continues to improve, driven by improving routine diagnostic testing levels and the continued roll out of our Alinity platforms. Excluding COVID testing related sales, our Core Lab and Molecular Diagnostic businesses, both achieved double digit sales growth in the quarter.
Turning to Established Pharmaceuticals, where sales grew over 6% in the quarter. It was particularly strong given the comparison versus a strong first quarter last year. Performance in the quarter was led by double digit sales growth in India, China and Brazil. And while we continue to see elevated COVID case levels across several emerging markets, the business is executing at a high level to ensure patients have access to our branded generic medicines.
And lastly, I'll cover Medical Devices, where sales grew nearly 9% in the quarter, led by strong growth in Structural Heart, Rhythm Management, Electrophysiology and Diabetes Care. Although, procedure volumes across our cardiovascular and neuromodulation businesses were impacted early in the year by elevated [Indecipherable] case rates in certain countries, including the US. We saw growth improved throughout the quarter and exited with good momentum.
On average in March, US procedure levels were up mid single digits compared to pre-COVID baselines across our cardiovascular business with some areas even higher. In Structural Heart, sales were up mid teens overall with growth contributions coming from several products within our innovative portfolio including MitraClip, TriClip, Portico and others.
MitraClip sales grew more than 15% in the US, where we achieved our highest number of monthly procedures ever in the month of March. In January, CMS expanded reimbursement coverage for MitraClip, which significantly increases the number of people who can benefit from this market leading device.
And I'll wrap up with Diabetes Care, where growth was led by Freestyle Libre sales of nearly $830 million. The global user base for Libre has now surpassed 3 million users, driven by market expansion and awareness efforts, as well as ongoing new product launch activity in every major market around the world.
So in summary, we're off to a very strong start and right on track with our expectations for the year. All four of our major businesses are achieving strong growth. We're particularly pleased with the growth contributions and momentum of several recently launched products, and we're well positioned to achieve more than 35% EPS growth as we have forecasted at the beginning of the year.
And I'll turn over the call to Bob to discuss our results and outlook for the year in more detail. Bob?
Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer
Thanks, Robert. As Scott mentioned earlier, please note that all references to sales growth rates unless otherwise noted are on an organic basis, which is consistent with our previous guidance.
Turning to our results. Sales for the first quarter increased 32.9%, which was led by strong performance across all of our businesses along with strong global COVID testing related sales. Organic sales growth was balanced with 34% growth in the US and 32% growth internationally. COVID testing related sales were also balanced geographically with a little more than half of those sales coming from international markets.
Foreign exchange had a favorable year-over-year impact of 2.5% on first quarter sales. During the quarter, we saw the US dollar strengthened somewhat versus several currencies, which resulted in a slightly less favorable impact on sales compared to exchange rates at the time of ourearnings callin January. Based on current rates, we would expect exchange to have a favorable impact of approximately 4% on our second quarter reported sales and would now expect exchange to have a favorable impact of nearly 2% on our full year 2021 sales. Regarding other aspects of the P&L for the first quarter, the adjusted gross margin ratio was 58.3% of sales, adjusted R&D investment was 6% of sales and adjusted SG&A expense was 25.1% of sales.
As Robert mentioned, the strength of our business performance has created an opportunity to significantly increase our investments in R&D and SG&A to further strengthen our pipeline and growth initiatives. During the first quarter, our combined investments in these areas increased approximately $200 million compared to the same quarter last year and was at the highest level since our separation with AbbVie
For the first quarter, net interest expense was $124 million, non-operating income was $73 million, and our adjusted tax rate was 15%, which is consistent with our full year effective tax rate from last year.
With that, we'll now open the call for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] Our first question comes from Bob Hopkins from Bank of America. Your line is open.
Bob Hopkins -- Bank of America -- Analyst
Thanks, and good morning. Congratulations on such a strong Q1 revenue and profit growth. I think I can recall the last time, the company put up a 100% earnings growth. So impressive there. I guess, I'd love to hear your thoughts on two important topics, Robert if you don't mind. And the first topic is BinaxNOW OTC. I was wondering if you could just talk a little bit about capacity and your early thoughts on how you think demand will play out for that product. So that's the first topic. And then, I'll just go ahead and list the second one in the interest of time.
The second topic is a little bit longer term oriented, because last quarter you expressed some confidence in Abbott's ability to drive double digit earnings growth in 2022 off of that $5 number for this year. And the question I would have is, based on what you're seeing today, has anything changed with your views. And I think investors would also love to hear, if you assume more conservative testing scenario, how does that impact that goal of double digit earnings growth next year. So just want to list all upfront there and thanks for taking the questions.
Robert B. Ford -- President and Chief Executive Officer
Okay. Thanks. On your first question regarding kind of the -- the US BinaxNOW OTC launch. So yeah, we're very excited about that. We see this as a significant opportunity and quite frankly a trend that's been happening overseas and is kind of now happening here in the US, which is this move, this accelerated move here from, say, more hospital lab-based testing to more rapid testing outside of that environment where consumers and people can get the results at a -- at much faster rate. And quite frankly with a little bit of less -- less hassle, less -- less process. So we see this as a significant opportunity. It's easy. It's affordable. And I think that's a key part here, Bob, as you think about surveillance testing and serial testing, it needs to -- it needs to contemplate those two areas, right? It needs to be affordable.
It's difficult to do serial testing on PCR when you -- you've got a cost of $100 plus and takes between two days to three days to get that. So I think we're in a great opportunity here to be able to capitalize on that. I think this is something that people are going to want to buy and have in their homes and stock up in their homes, think of it as maybe your new -- your new element in your medicine cabinet. But we've been seeing this shift happen toward the end of last year and definitely into this quarter here this move toward -- toward rapid.
Specifically in the US, we've got a great position, as a lot of this OTC is going to require understanding of the retail and the retail environment and the retail channel, and those are capabilities that as you know, through our nutrition business, through our diabetes business, we know how to operate and operate pretty well in there. So -- so we're excited. And I think this is going to eliminate a lot of the barriers that exist for frequent testing.
A key aspect of that is obviously scale. We have to have scale to be able to meet -- to be able to meet the demand. And quite frankly, we're probably the leaders here in terms of -- in terms of production. We've got an -- an established capacity this quarter now that we can do about 150 million rapid tests per month across all of our different platforms. So we feel very good about that position. We feel good about this opportunity.
To your second question on 2022. Yeah, we did -- you did mention our confidence back in January and we commented on our call and to be honest, nothing has changed on that front, nothing has changed over the last 90 days. We start our planning process every year. We target double digit growth. And we talked about some of the key elements and laid out some of the key elements that allowed us to have that confidence to be able to drive that double digits in 2022, whether it's the pace of recovery of our base business, COVID testing, new product launches, investment spend, etc. None of that has changed. I mean, if you look at the pace of our recovery on our base business, that's done very well. Cardio and neuro finished the quarter very strong. We grew double digits, as I said in my prepared remarks in Core Lab and Molecular Diagnostics, excluding COVID. Libre is growing rapidly. Nutrition and EPD are accelerating their growth rates with pipeline and a market that supports that sustained growth. We've got momentum with a lot of our product launches, MitraClip G4, TriClip, I'd say, our mapping systems, our new CRM devices.
And then, we've got coming out of this year, going into next year four key product launches that we feel very, very good about, very excited about then given -- given our position, given the product offering and the value proposition of them. And you know those are LAA -- entering the LAA market here in the US, potential expansion of indication for CardioMEMS entering the leadless pacemaker with single chamber and then follow that with a dual chamber entering the US TAVR market.
I mean, all four of those opportunities are multi-billion dollar segments and -- and we've been working hard at the last call it 18 months to get us ready to be in a position in 2022 to be able to capitalize on that. So the underlying base business, the pipeline, all of that is kind of heading in the right direction and don't see any changes, if anything, this acceleration to kind of what we talked about 90 days ago. And we continue to believe, a good portion of the COVID testing is sustainable. There is -- as I said, there is a clear trend here to move toward rapid formats. We're the dominant producer here of these rapid tests, making about 150 million a month. So wherever that -- wherever that market goes, we know that we'll be the share leader here for sure.
So you look at all these different components here, Bob, we still feel very confident about our double digit. The one thing, I'll say is that as you look at all of these different businesses that probably one thing that we can try and model now, but it will probably be different January is just how the mix of those businesses are going to -- are going to contribute to that double digit growth. It always ends up differently in terms of how we planned. We did double digit in 2020, and it was very different versus how we set it up in January of 2020.
So if you look at our history, we're pretty consistent about delivering on that. If there is any caution here, I guess, for next year, it would already be seem to be priced here into our PE. So -- but that being said, I don't think anything has changed here from the last 90 days from our perspective. We still feel good about our double digit.
Bob Hopkins -- Bank of America -- Analyst
That's great. Thank you. And then, just if there was a more conservative testing environment, how does that impact or what you think about things?
Robert B. Ford -- President and Chief Executive Officer
I mean that's -- I guess that's the -- that's the model here, where we start to model different ways, different parts of all these elements that I explained to you and it's going to be difficult. I'm not going to put out an assumption there of what COVID testing level is required. But I do feel that a good portion of it is going to be sustainable. And we'll get a lot of the share of the COVID testing that's remain, so...
Bob Hopkins -- Bank of America -- Analyst
Great. Thanks for taking the questions.
Operator
Thank you. Our next question comes from Robbie Marcus from JP Morgan. Your line is open.
Robbie Marcus -- JP Morgan -- Analyst
Great. And I'll echo Bob's congratulations on a very nice quarter. Maybe just a follow-up. Robert, I'd love to get a sense, one of the key investor topics, as you just touched on is the double digit target for EPS growth next year. And part of that, it looks like you're front-loading a lot of expenses into 2021 here, you grew opex about $300 million versus last year. So I'd love to see if I could just get a little more meat on the bones in terms of the road map to that double digit EPS more down the P&L versus the top line, which you just talked about. And does it imply sort of high 20s operating margins to get there? Thanks.
Robert B. Ford -- President and Chief Executive Officer
On the high 20s operating margin, yeah, that does to be the case. Regarding the areas of investment, I mean, we -- I talked a lot about these in terms of the investments we're making. I'd say from a bigger picture perspective, we want to make sure that we're spending and investing a good portion of these costs -- these COVID testing profits into the R&D portion of the P&L. We believe that is a very sustainable investment. And if I look across all the businesses in devices, in diagnostics, in rapid diagnostics, in nutrition, all of these businesses have opportunities to invest in R&Ds, and we've got clear programs across all of them to build the R&D programs that will sustain our growth beyond '22, '23, '24.
A lot of the products that I just mentioned, whether it's the ones we've just launched over the last kind of quarter -- two quarters or three quarters, plus the four key areas that we're -- we're looking at entering in 2022, those are going to drive a lot of our revenue growth and those are already been funded. But I'd say the investments here really looking into next generation products in diagnostics, expansion in our portfolio in devices that will lead to new product launches in '23 and '24.
On the SG&A side, we're making sure that we're supporting our big growth products. I'd say probably a lot of the SG&A is going toward Libre and driving -- and driving Libre awareness and growth, both in the US and international markets, and you'll start to see that ramp up even more, as we go throughout the year both in terms of the spend and the return on the top line.
We're making investments also in nutrition to strengthen our brands and capitalize on the expansion, especially in the adult nutrition side of the market and expanding footprint in several of our device businesses, where we know that clinical specialist and sales force, etc is important to be able to support not only the expansion of our current products, but the launch of new products.
Robbie Marcus -- JP Morgan -- Analyst
Great. Really helpful. And maybe just a quick follow-up. We're all really interested to hear not just about how the devices business did in the first quarter, but really the forward commentary on what you're seeing exiting March and into April here. So if you have any early feedback on the exit rates? And what you're expecting in terms of catch-up that would be really helpful? Thanks a lot.
Robert B. Ford -- President and Chief Executive Officer
Yeah. I mean, I think -- as I said in my prepared comments and on the first question too, I mean, we saw a nice recovery. Obviously -- there was obviously some -- little bit of a slowdown in January. So we had a nice pickup, I'd say in October, November, where -- sorry, yeah, October, November, where we saw procedure growth rates return to growth. And I'd say December, January saw that -- saw that decline as the cases increase. But saw a real nice progression in the month of February and then very strong growth in March.
And Rob, what we try to do also is, we try to look at this -- the March is a tricky month because you've got those two weeks of last year, where things kind of really kind of shutdown. So we look at March not only versus last year, but also looking at it versus March of 2019. And quite frankly, the whole quarter versus 2019. And we actually see growth rates in this quarter that are higher than our pre-pandemic rates in 2019 -- in Q1 of 2019. So I think we saw a real nice growth. In Core Lab, that was very positive to see. We saw double digit growth there and that's a good indicator of routine testing coming back to hospitals, saw double digit there.
Our Molecular Diagnostic business excluding COVID and PCR COVID testing was up 30%. So that's a real positive sign that our strategy of utilizing the Alinity M to launch into the market with COVID, and then kind of build off the menus also having a positive impact over there too. So I'd say very good exit rate. And as we look at the first two weeks of April and we look at it every -- every week here, real nice progression. So I didn't see the bolus coming in and then the drop. I actually saw continued nice improvement in structural heart, in EP and even in CRM. So those are -- that's a nice trend, as we're going into the second quarter too.
And we'll start to see a little bit of opening up here in Europe. I'd say the one area that was a little bit softer for us was Europe, given all the shutdowns there. But again, I'd say the first couple of weeks in Europe are looking pretty good.
Robbie Marcus -- JP Morgan -- Analyst
That's great to hear. I appreciate the color. Thanks.
Operator
Thank you. Our next question comes from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen -- Wells Fargo -- Analyst
Good morning. Thanks for taking the question. Robert, one for me on capital allocation, and one on your favorite topic, I think Libre. So a lot of questions around 2022. And my question is, how important is it to hit that double digit EPS growth target in 2022 and your thoughts around capital allocation helping you achieve the 5.50 [Phonetic] in EPS is a buyback or an accretive deal something you would consider to get there. And I had one follow-up on Libre?
Robert B. Ford -- President and Chief Executive Officer
Sure. Well, we start every year, as I said, targeting double digit. If you look at where we are in 2021 versus 2019, we're up 53%, but we'll be targeting, as I said, double digit in 2022. And again, there is multiple ways of how we can get there in terms of business mix, etc. We do have a strong balance sheet and that provides us a lot of strategic flexibility. We try and have a balanced approach there, Larry, in terms of balancing between short and the long term, investing in the business and providing some of that return back to our shareholders. So whether it's in the form of dividend, we're committed to a strong growing dividend. It's an important part of our identity.
On the share repurchasing, we've historically just really looked at share repurchasing to offset some of the dilution. We could be looking to do a little bit more than going -- in this year, going into next year. And then from an M&A perspective, I'd say, we're always actively monitoring. We're always actively looking. And you'll always hear me say that I'm not going to -- I'm not going to tip my hand and give up any kind of competitive advantage there. But if there is something that is attractive, something that has got growth that won't dilute our top line growth profile, which I think is best-in-class or that we can do better with, we're always going to be interested.
But we're always going to be prudent about deploying our cash, Larry, always keeping our shareholders happy, balancing the long term, the short term, the internal and the external, and this is not a -- this is not a kind of new CEO versus prior CEO philosophy. This is always been -- this has always been an Abbott philosophy. We're good stewards of that capital and good stewards of finding that right balance that I just described.
Larry Biegelsen -- Wells Fargo -- Analyst
That's very helpful. And then, Libre, how should we think about the growth for the remainder of the year, the comps get a little easier, you talked about 40%, it's an aspirational goal in the last call. And just, what's the latest on the Libre 3 launch in Europe. And if you'll give us any color on the US, it would be certainly appreciated. But I'm not sure we'll get it today, but thank you for taking the questions.
Robert B. Ford -- President and Chief Executive Officer
Sure. Well, I did put out a goal of growing 40% in 2021. You mentioned comparison, yeah, there is a little bit of a -- there is a little bit of a -- you've got a bit of a balance here between Q1 and Q2. So Q1 last year, we saw some stocking up in international and in the US. So I look at our 30% here and on top of a pretty strong quarter last year has really -- really positive momentum. We'll have some effect of -- on the reverse side of that in Q2. So then it becomes really a second half. Can we kind of sustain this kind of mid 30s and accelerated into the 40s in the second half. And the answer is, we believe so.
We've got great portfolio. We've got great momentum and making the investments, whether its field force, whether it's direct consumer advertising not just in the US, but around the world significant investments to building awareness for the category. I mean, we've achieved 3 million -- surpassed 3 million users around the world. That's -- that's three -- we could say, hey, that's three times our next competitor. But the reality is, the penetration for us and for the category is still pretty significant. So there is plenty of room here for us to invest and grow. And we'll be doing that on the back of our -- of our -- not only our commercial investments, but also R&D.
Your question on Libre 3 that's -- we launched that into Europe at the end of this quarter. We're right where we want to be. We start off usually small and focused here, Larry. We learn -- we learn with the consumer. We learn with the HCP in terms of what resonates. We learn with our manufacturing. We've got a lot of capabilities in terms of how to manufacture at scale. But there's always a little bit of a learning curve here. It is a new platform. And we learn with insurance and insurance switches over and all those things. And once we get all of that kind of lined up, then we accelerate and we go break it. But I've got -- we got a lot of strategic flexibility here with Libre 2 and Libre 3. I think it's -- I think we're in a great position.
Feedback has been really good. I mean, we have launched this with about over 1,000 HCPs. We've got close to a couple of hundred patients that we've now kind of just try to see what their reactions are with the products and it's been extremely positive. There's a lot of social media there. I'm not very fluent in German. But I can tell the facial expression of awesomeness and coolness and amazement factor, and you can see those in the videos of these patients that are using it.
So I think this is going to set a whole new standard for us on every dimension, size, ease of use, accuracy, alarm performance, where experience all that. It's all great. It's all good. So regarding your question on Libre timeframe, I think you answered it. So that's good. We're not going to -- I'm not going to provide any details here. But I'm just really excited about Libre 3 and the combination of the portfolio having both 2 and 3, I just think it provides us a lot of strategic flexibility.
Larry Biegelsen -- Wells Fargo -- Analyst
Thanks so much.
Operator
Thank you. Our next question comes from Vijay Kumar from Evercore ISI. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Hey, guys, congrats on the [Indecipherable]. Thanks for taking my question. Robert, I did want to ask you on fiscal '21. If I look at Q1 excluding contribution from COVID right, the base business, it looks like it was up 10% organic versus pre-pandemic '19 levels. One, is that math correct? And if we're starting off at 10%, I guess, are we looking at perhaps teens kind of growth for fiscal '21 on the top line on the base business?
Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer
Hi, Vijay, this is Bob. Yeah. Your math is spot on. Our first quarter was up over 2019 by around 10%. So we had really good -- really good performance in the quarter in the base business, and you really saw that across kind of the portfolio of businesses. And then, we would expect to continue to see strong growth during the course of the rest of the year in particular, as medical device procedures continue to improve. And we would expect to see kind of that base business growth in the mid teens.
Vijay Kumar -- Evercore ISI -- Analyst
That's helpful, guys. And then, one on the [Indecipherable] testing side. I saw the press release yesterday launching the asymptomatic consumer version of the product. What -- I guess, how are revenues recognized. Is this recognized on shipment. And what are early -- what is early demand looking like from the retailers like CVS and Wal -- Walgreens -- Walmart. And is there expectation of 6.5 billion to 7 billion for fiscal '21, is that unchanged. Thank you.
Robert B. Ford -- President and Chief Executive Officer
Yeah. So on the 6.5 to 7, yeah, that remains unchanged. It's difficult to forecast here in that tight range that you'd expect from Abbott. But yeah, we continue to forecast sales at around -- at around that level. Regarding your question, I think it was regarding the BinaxNOW OTC in the US, correct. Is that what you're referring to?
Vijay Kumar -- Evercore ISI -- Analyst
Correct.
Robert B. Ford -- President and Chief Executive Officer
Yeah. So yeah, I mean we -- we received approval for the product several weeks ago, and we immediately started our manufacturing process. It is a different presentation from the previous Binax test in which we provide two tests and the necessary consumables to run those tests. So we started manufacturing that and began shipping literally yesterday to retailers, and we'll start with CVS, Walgreens, Walmart, and you can expect all the other retailers, food merchants, etc to roll into that, as we expand and start manufacturing and accelerating our manufacturing. So yeah, we ship the product and the revenue is booked when the -- when the asset is transferred over to the retailer.
But I think this is going to be a -- as I said, a great opportunity. It's a channel we know very well. I think few diagnostic companies that have this product have the capacity, the manufacturing scale and the channel experience and domain here to -- it's kind of really compete. So we feel very good about our position, and we'll start. We start off with the initial stocking orders and then, from then we'll roll out more distribution. And we expect given the price point here, Vijay, that there is going to be a great opportunity for a lot of households in the US to be able to have testing on hand ready to go at their house. So we expect that there will be a nice repeat purchase also.
Vijay Kumar -- Evercore ISI -- Analyst
You know, Bob, I'm planning on stocking up, Robert. Thanks you for the comments.
Robert B. Ford -- President and Chief Executive Officer
Thank you for that.
Operator
Thank you. And our next question comes from Matt Miksic from Credit Suisse. Your line is open.
Matt Miksic -- Credit Suisse -- Analyst
Hi, just a quick question from me if I could, it is just on some of the pipeline opportunities around Amulet and CardioMEMS and Portico, if you could provide us with maybe an update on those programs? And secondly, on just the progression of MitraClip. This has been a device and procedure that was a little bit more impacted by the slowdown over the winter. And just love to get a sense of what the trajectory looks like now heading into Q2? Thanks.
Robert B. Ford -- President and Chief Executive Officer
So a couple there. So on the Amulet side, yeah, listen, we've got experience in this category outside of the United States in the international markets and the product does very well. We filed with the FDA late last year. We think this is a very attractive market. It's approaching about $1 billion today, and it's growing double digits. And as I said, I think, Amulet is a very competitive product in its current form. We're obviously -- we'll obviously be investing as part of some of those R&D investments I mentioned in next generations there also, but even in its current format performs very well. And we've got a great experience in Europe.
We believe a lot in this market, in this segment. And so we've also initiated our CATALYST trial. So we started a new trial late last year, and this is a trial comparing Amulet to NOAC drugs, which is currently the standard treatment option for people with AF that are at risk of a stroke. So we think that this will be a significant kind of growth driver after we launch also results there will take a bit longer to divulge. Those are probably in the 2023 timeframe. But it just shows our commitment to this segment, because we believe we've got a great product, great product portfolio, pipeline and it's a great segment here.
So I think you had another question on MitraClip. MitraClip did very well in the quarter. Obviously, it got impacted by COVID last year. It was on a great trajectory and kind of got slowed down, as obviously the ICU beds and hospitals move toward treating COVID. But we had great growth in Q1. We're up in the mid teens in the US. So that was good. As I said in my prepared comments, we had our highest number of procedures ever in the month of March and that wasn't just catch up because I've looked at the procedures in the first two weeks of April and they continue to move up. So that's very positive for us.
And we're making our investments not only on the pipeline side, new versions of MitraClip, but also more importantly in the market development, so really to expand the funnel of patients being treated, creating those patient referral networks with the cardiologists on our implanting center. So that's done very well.
And I think the NCD that got approved in January opens up a significant opportunity for us with MitraClip. Remember, we're only -- we're only about 5% to 6%, maybe 7% penetrated right now in the total available market here. And I think that we've got a lot of runway for growth in the Mitra space.
And I think you also had a question on CardioMEMS. We expect to file for a label expansion relatively soon. This would also significantly broaden the US market opportunity. And we plan to pursue CMS reimbursement after we obtain that label expansion. This segment continues to grow. Our Q1 growth in CardioMEMS was north of 20% and that market has started to recover also from the pandemic, and I like the position we have in them.
Operator
Thank you. Our next question comes from Matt Taylor from UBS. Your line is open.
Matt Taylor -- UBS -- Analyst
Hi, thank you for taking the question. So I wanted to go back to the idea of the double digit growth and the investments that you're making this year, you called out R&D, and we've seen DTC has been stepping up, I think there is a lot of Libre commercials there now. I guess, my question is, when you think about these investments and the sustainability, historically we thought about Abbott is driving 7% growth that was your algorithm pre-COVID. Do you think that the investments could lead to more sustainable higher post-COVID organic growth? And then, how quickly can you toggle them up and down if the environment changes quickly to manage earnings?
Robert B. Ford -- President and Chief Executive Officer
Sure. So I'd say on the base business side, our identity, our target was really sustaining a 7% to 8% growth rate pre-COVID, and I'd say with these investments that we're making excluding any kind of year-over-year comp, we'll probably be at the higher end of that 7% to 8% range. I mean, once you factor in, maybe a Q1 comparison on the base business next year probably growing a little bit higher than that, Matt. But at the high end of that 7% to 8% is what we're looking at with all these investments and product development and portfolio development.
As I said, a big portion of our COVID cash flows and profits, part of it goes to our shareholders, but part of it goes back into the business. And we've got a lot of flexibility here to toggle that investment up or down if we need to. I mean, I'd probably say that each business has their list of go to areas that we've all agreed to, our kind of next steps if we have more opportunity to invest in the business. We know exactly -- we know exactly, where to go.
As it relates to toggling down, yeah, I mean, I wouldn't be togging down R&D. I think that's more of a sustainable kind of investment that sustains our growth rate. It's easier to toggle on SG&A and we've got that capabilities also if we need to.
Matt Taylor -- UBS -- Analyst
Great. And I just had a follow-up on diagnostics. The underlying growth, as you called out in Core Lab and Molecular was impressive. And I'm wondering if we're going to see you get increased momentum in the underlying business because of your success with COVID diagnostics. Do you think you can leverage that larger installed base and drive to higher growth in the core diagnostic business over time now?
Robert B. Ford -- President and Chief Executive Officer
Yeah. I think the answer to that is yes. We've definitely been elevated to a kind of higher level of partnership here with a lot of hospitals and IDNs and institutions, as it relates to their kind of COVID testing. There has been large set of accounts that we've historically been out of and now had the opportunity to place our instruments and show what we can do. So the answer to that is, yeah. On the Core Lab, for sure you saw -- you're seeing a little bit of that strategy play out.
In the Molecular side of the business, where we haven't -- we haven't seen these kind of growth rates in our Molecular business excluding COVID in a very long time, and we're up close to 30% excluding COVID testing. A lot of that has to do with the instruments that we're placing and getting the test pull through on the other assays on the other tests.
So on the rapid side too, I wouldn't just look at it from a Core Lab perspective. The sustainability of COVID is one -- one portion of it is the actual COVID test, the other portion of it is the installed base that we're placing, as a result of that. I talked a little bit about this building sustainability of a rapid testing channel beyond just COVID and COVID is allowing us to do that.
But if you think about for example, our ID NOW instrument, where we basically exceeded the market here for an opportunity to do much more in a world outside of COVID by making -- by placing these instruments. We had roughly about 19,000 boxes in the US in 2019, and we're currently at 75,000 boxes. So we almost quadrupled our installed base there. And will they all be as productive from a COVID testing perspective at the highest level of the pandemic? One years, two years out, no, probably not. But they will be very productive with all of our other assays and that installed base will continue to grow and will continue to produce for us.
So to answer your question, yeah, I do think this is a great opportunity here for us to continue to roll out our Alinity platform on the Core Lab, on the Molecular side and continue to build our rapid testing channel in the rapids business.
Matt Taylor -- UBS -- Analyst
Great, Thanks, Rob.
Operator
Thank you. Our next question comes from Joanne Wuensch from Citibank. Your line is open.
Joanne Wuensch -- Citibank -- Analyst
Thank you very much for taking the questions. Just putting both upfront. Can you give us an idea of how you're thinking about revenue for the remainder of the year, particularly, I'm going to get questions about COVID-19 diagnostic revenue in 2021?
And then, my second question has to do with the other areas of med tech that are starting to support or continue to support that high single digit growth rate. Anything you can add color on neuromod, vascular, CRM would be helpful? Thank you.
Robert B. Ford -- President and Chief Executive Officer
Sure. So kind of growth rate in our diagnostic business the way to think about it is, at least how we've modeled it is we'll see our -- let's call it non-COVID diagnostic business continue to accelerate, continue to grow, obviously, you'll have comps, so with that, Joanne, in Q2 and Q3. That will be producing some mid teens kind of growth numbers in this business. But I think we always look at it, at least the way we're managing it here is we're always looking at it on a two year CAGR. So if we get back up to that kind of 10%, 11%, 12% growth rate that we were seeing in our Core Lab business that on a two year CAGR that's basically our target to be able to get to those numbers.
COVID testing, it's difficult to forecast right now. I can't give you an exact quarterly progression of that. I think the range that we've given last call, I continue to reiterate it, but it's going to be a bit difficult here to get the exact calendarization, the exact mix, the exact geography right in terms of the -- in terms of the COVID testing. What I will say though is that I do continue to believe that the shift from lab based PCR still play a role in COVID. But I think that the bigger role will be played by the rapid testing, as it relates to surveillance. And as I said, I think we're well positioned there.
I think you had -- your second question was regarding some of the other devices. I'd say listen, I'm very pleased with the CRM. I'm not saying that we've completely turned it around, but it's a great -- it's a great progression that we're seeing here. The launch of our ICDs and CRT-Ds with the Gallant brand with bluetooth capability in Europe and US, all of the numbers show that we're picking up share and that's the ultimate measure here. And I'm excited about the ability for us to enter the leadless segment next year with our product and the capabilities that and the value proposition that, that product will bring versus competitive systems. So I think that's done very well.
I'd say heart failure, one of the challenges there is probably -- that's probably the slowest part of the device portfolio to recover, a lot of those procedures require some ICU stays. So I think that ones -- was one where we saw a little bit of impact to market. I'd say, our share is pretty high around the mid 80s, 85%. So that's mostly a market condition that we'll see come back. But I think that the CardioMEMS is another great opportunity for us, where we saw growth in the quarter for 26%. So I don't know if that covered all the device areas that you wanted me to hit on.
Joanne Wuensch -- Citibank -- Analyst
If you could hit on [Indecipherable] that would be great and then -- thank you.
Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer
Yeah. So we did see a little bit of a slowdown in trials toward the end of the year and the beginning of the year and we saw that start to pick up a little bit now. We think that we like our position. We recently launched our remote programming and monitoring system, the NeuroSphere. I think that's going to create a whole new opportunity for us in terms of business model, in terms of our ability to service to patients and the physicians better with that. So we started to roll it out in the US. I think it applies to both SCS and DBS too. We've gotten great feedback on that. So I think that we'll see sequential improvement on our performance in neuro, not only as we lap the comps, but also as the NeuroSphere gets widely used. And then, we've got a nice pipeline of products to be launching toward the end of the year here.
Joanne Wuensch -- Citibank -- Analyst
Thank you very much.
Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions
Operator, we'll take one more question.
Operator
Thank you. And our last question comes from Josh Jennings from Cowen. Your line is open.
Josh Jennings -- Cowen -- Analyst
Hi, good morning. Thanks for taking the questions and congratulations on the quarter. I wanted to, Rob, just ask about your commentary about the potential to pursue M&A to support that -- that if need be to support the double digit earnings growth in 2022. And anything you can provide investors or analysts with in terms of the areas of focus. I mean, should we be thinking that each business unit could receive some support with the acquisition.
I mean, specifically on medical devices, just follow-up to Joanne's question, which we should be thinking about potential the bolstering heart failure, vascular neuromod and some of the software businesses here. I mean, you have such a pipeline and had such success with internal development initiatives, it is an medical device scenario that where you could add.
And then, lastly, just on -- just the Structural Heart business. I mean in the US, you're going to be Amulet and Portico in the near term and just how you're thinking about that you did mention the specialized sales force, which we would be thinking about individual sales teams for MitraClip, TAVR and left atrial appendage occlusion and how could that all shape out? Thanks for taking the questions.
Robert B. Ford -- President and Chief Executive Officer
Yeah. So I think on the M&A side, you'll hear me say the same thing, which is I think, it always starts off strategically does the business that we're looking at have a strategic fit to Abbott both from a market position, from a financial standpoint. So we wouldn't be looking at anything that doesn't fit us strategically just to fill an EPS. We want -- we want businesses that we can grow, that we can -- that we can obviously operate and can fit well into the company. So I think it always starts like that. It's always starts with the strategic fit.
And then, if it's attractive if the timing is right, then we'll look at it. I think all the areas that you mentioned are all areas that we look at. So we look at all those areas that you mentioned. We look at diagnostics. We look at all the areas. We're always studying. And we're always paying attention to the new technologies, the new companies, et cetera. So I just wouldn't -- I just wouldn't I tip my hand here and give anything away in terms of our competitive position here so.
Regarding your second question on sales forces, it always depends. But we tend to have a viewpoint here Josh, where we believe that kind of focus and dedicated team has always been best. That's kind of how we've run our businesses. It's how we run our businesses for many, many decades. We don't try and bring things together that don't make sense just for the -- just for the -- just for the sake of synergies. If we believe we're in growth areas, in growth businesses, then we'll fund them as growth business and growth areas. And quite frankly all the businesses that you talked about in Structural Heart are areas of high potential growth. So we'll treat them and resource them as such.
So I'll just close here by saying we set guidance of at least $5, which is about 35% growth year-over-year, that's after 13% growth in 2020, and we feel very good about our first quarter. We feel that our first quarter puts us on track to -- to achieve those -- at least those $5. We have multiple ways to get there. The COVID market is going to move more and more toward rapid. And our position in this segment of COVID testing is unmatched with our capabilities, our scale, etc. And we believe a good portion of those tests -- of that COVID testing market will remain at least into 2022.
And I'm very pleased with the pace of recovery of our base business Abbott or let's call it the non-COVID side of our business, and we're making investments in 2021, so we can accelerate our growth in 2022 and beyond and we talked about this also. So we feel very good about the position we're in today and the position we have this year and going into next year.
Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions
Very good. Thank you, operator, and thank you for all of your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11:00 AM Central Time today on Abbott's Investor Relations website at abbottinvestor.com. Thank you for joining us today.
Operator
[Operator Closing Remarks]
Duration: 57 minutes
Call participants:
Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions
Robert B. Ford -- President and Chief Executive Officer
Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer
Bob Hopkins -- Bank of America -- Analyst
Robbie Marcus -- JP Morgan -- Analyst
Larry Biegelsen -- Wells Fargo -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Matt Miksic -- Credit Suisse -- Analyst
Matt Taylor -- UBS -- Analyst
Joanne Wuensch -- Citibank -- Analyst
Josh Jennings -- Cowen -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) Q1 2021 Earnings Call Apr 20, 2021, 9:30 a.m. Operator [Operator Closing Remarks] Duration: 57 minutes Call participants: Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer Bob Hopkins -- Bank of America -- Analyst Robbie Marcus -- JP Morgan -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Matt Miksic -- Credit Suisse -- Analyst Matt Taylor -- UBS -- Analyst Joanne Wuensch -- Citibank -- Analyst Josh Jennings -- Cowen -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The pandemic has brought a lot of awareness to the value of good nutrition including immune support, which is helping to bring new users into the category and more specifically, to our market leading Ensure and Glucerna brands. | Operator [Operator Closing Remarks] Duration: 57 minutes Call participants: Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer Bob Hopkins -- Bank of America -- Analyst Robbie Marcus -- JP Morgan -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Matt Miksic -- Credit Suisse -- Analyst Matt Taylor -- UBS -- Analyst Joanne Wuensch -- Citibank -- Analyst Josh Jennings -- Cowen -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2021 Earnings Call Apr 20, 2021, 9:30 a.m. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions Good morning, and thank you for joining us. | Operator [Operator Closing Remarks] Duration: 57 minutes Call participants: Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer Bob Hopkins -- Bank of America -- Analyst Robbie Marcus -- JP Morgan -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Matt Miksic -- Credit Suisse -- Analyst Matt Taylor -- UBS -- Analyst Joanne Wuensch -- Citibank -- Analyst Josh Jennings -- Cowen -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2021 Earnings Call Apr 20, 2021, 9:30 a.m. Strong sales growth across all four of our major business areas, which resulted in base business organic sales growth excluding COVID testing related sales of nearly 6%. | Operator [Operator Closing Remarks] Duration: 57 minutes Call participants: Scott Michael Leinenweber -- Vice President of Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Finance Officer Bob Hopkins -- Bank of America -- Analyst Robbie Marcus -- JP Morgan -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Matt Miksic -- Credit Suisse -- Analyst Matt Taylor -- UBS -- Analyst Joanne Wuensch -- Citibank -- Analyst Josh Jennings -- Cowen -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q1 2021 Earnings Call Apr 20, 2021, 9:30 a.m. A lot of the products that I just mentioned, whether it's the ones we've just launched over the last kind of quarter -- two quarters or three quarters, plus the four key areas that we're -- we're looking at entering in 2022, those are going to drive a lot of our revenue growth and those are already been funded. |
32167.0 | 2021-04-20 00:00:00 UTC | Abbott's Sales Soared in Q1, but Not Enough to Satisfy Wall Street | ABT | https://www.nasdaq.com/articles/abbotts-sales-soared-in-q1-but-not-enough-to-satisfy-wall-street-2021-04-20 | nan | nan | Abbott Laboratories (NYSE: ABT) entered 2020 as a strong and growing business. Then the COVID-19 pandemic hit, and the company became even stronger, with much faster growth.
The healthcare giant announced its first-quarter results before the market opened on Tuesday. Here are the highlights from that update.
Image source: Getty Images.
By the numbers
For the quarter, Abbott Labs reported revenue of $10.5 billion, a 35% year-over-year jump. However, this result fell a little short of the analysts' average estimate of $10.69 billion. The company's net income was $1.8 billion, or $1.00 per share, based on generally accepted accounting principles (GAAP). In the prior-year period, Abbott posted GAAP earnings of $564 million, or $0.31 per share.
Abbott's non-GAAP bottom line also improved significantly. The company recorded adjusted net income of $1.32 per share in the first quarter. This more than doubled the adjusted earnings of $0.65 per share it booked in the prior-year period. It also beat the $1.27 per share consensus estimate among analysts surveyed by Refinitiv.
Behind the numbers
The biggest driver of Abbott's strong Q1 growth by far was its diagnostics segment. Sales skyrocketed by 119.8% year over year to more than $4 billion. COVID-19 testing-related sales totaled $2.2 billion.
Abbott's medical device segment generated sales of $3.3 billion, up 13.1% year over year. The continued recovery from the pandemic was the primary growth driver here. The diabetes care segment was especially important for Abbott. Sales of its FreeStyle Libre continuous glucose monitoring system and Libre Sense glucose sport biosensor totaled $829 million.
The company's nutrition segment also turned in a solid Q1 performance. Sales increased by 6.9% to a little over $2 billion. Pediatric nutrition product year-over-year sales comparisons were challenging because the first quarter of 2020 featured a significant surge in purchases as consumers stocked up in anticipation of lockdowns related to COVID-19. However, higher sales of adult nutrition products in the recently ended quarter more than compensated for the comparatively lower pediatric sales.
Established pharmaceuticals sales rose 2.5% to nearly $1.1 billion. On an organic basis (which excludes the impact of shifting foreign currency exchange rates), the segment's sales grew 6.2% year over year. Abbott noted especially strong growth in China, India, and Brazil.
Looking ahead
After Abbott Labs delivered those mixed Q1 results, the healthcare stock fell by more than 4% in early trading on Tuesday. However, the company's future continues to look bright.
Abbott expects full-year 2021 GAAP earnings per share of at least $3.74 with non-GAAP earnings per share of at least $5. This guidance reflects year-over-year growth of more than 35% and was roughly in line with Wall Street estimates.
The company has high hopes for sales of its BinaxNOW COVID-19 Ag Self Test, which received emergency use authorization from the FDA earlier this month. This test can be used at home by individuals with or without COVID-19 symptoms, and does not require a prescription to purchase.
Income investors can also look forward to Abbott's 389th consecutive quarterly dividend, which is to be distributed on May 17. The company ranks as a Dividend Aristocrat, with 49 straight years of payout increases.
With its solid growth prospects and strong dividend, Abbott still appears to be a stock that can make investors richer in the coming months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) entered 2020 as a strong and growing business. Pediatric nutrition product year-over-year sales comparisons were challenging because the first quarter of 2020 featured a significant surge in purchases as consumers stocked up in anticipation of lockdowns related to COVID-19. The company has high hopes for sales of its BinaxNOW COVID-19 Ag Self Test, which received emergency use authorization from the FDA earlier this month. | Abbott Laboratories (NYSE: ABT) entered 2020 as a strong and growing business. In the prior-year period, Abbott posted GAAP earnings of $564 million, or $0.31 per share. Sales of its FreeStyle Libre continuous glucose monitoring system and Libre Sense glucose sport biosensor totaled $829 million. | Abbott Laboratories (NYSE: ABT) entered 2020 as a strong and growing business. Abbott's medical device segment generated sales of $3.3 billion, up 13.1% year over year. With its solid growth prospects and strong dividend, Abbott still appears to be a stock that can make investors richer in the coming months. | Abbott Laboratories (NYSE: ABT) entered 2020 as a strong and growing business. However, this result fell a little short of the analysts' average estimate of $10.69 billion. Behind the numbers The biggest driver of Abbott's strong Q1 growth by far was its diagnostics segment. |
32168.0 | 2021-04-20 00:00:00 UTC | Health Care Sector Update for 04/20/2021: ABT, JNJ, CRSP, VRTX, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-04-20-2021%3A-abt-jnj-crsp-vrtx-xlv-ibb-2021-04-20 | nan | nan | Health care stocks were mixed pre-bell Tuesday. The Health Care SPDR (XLV) was down 0.30% and the iShares NASDAQ Biotechnology Index (IBB) was unchanged recently.
Abbott Laboratories (ABT) was shedding more than 3%. The company posted Q1 adjusted earnings of $1.32 per share, up from $0.65 per share a year earlier. Analysts polled by Capital IQ projected normalized EPS of $1.27.
Johnson & Johnson (JNJ) was slightly declining after it reported Q1 adjusted earnings of $2.59 per share, up from $2.30 per share a year earlier. Analysts polled by Capital IQ projected normalized EPS of $2.35.
CRISPR Therapeutics (CRSP) was up more than 5% after the company and Vertex Pharmaceuticals (VRTX) said they have agreed to amend their collaboration deal to develop, manufacture and commercialize CTX001, a potentially curative therapy for sickle cell disease and beta-thalassemia. Under the amended agreement, Vertex will lead development, manufacturing, and commercialization of CTX001, with support from CRISPR.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) was shedding more than 3%. The Health Care SPDR (XLV) was down 0.30% and the iShares NASDAQ Biotechnology Index (IBB) was unchanged recently. CRISPR Therapeutics (CRSP) was up more than 5% after the company and Vertex Pharmaceuticals (VRTX) said they have agreed to amend their collaboration deal to develop, manufacture and commercialize CTX001, a potentially curative therapy for sickle cell disease and beta-thalassemia. | Abbott Laboratories (ABT) was shedding more than 3%. The company posted Q1 adjusted earnings of $1.32 per share, up from $0.65 per share a year earlier. Analysts polled by Capital IQ projected normalized EPS of $1.27. | Abbott Laboratories (ABT) was shedding more than 3%. The Health Care SPDR (XLV) was down 0.30% and the iShares NASDAQ Biotechnology Index (IBB) was unchanged recently. Johnson & Johnson (JNJ) was slightly declining after it reported Q1 adjusted earnings of $2.59 per share, up from $2.30 per share a year earlier. | Abbott Laboratories (ABT) was shedding more than 3%. Health care stocks were mixed pre-bell Tuesday. The Health Care SPDR (XLV) was down 0.30% and the iShares NASDAQ Biotechnology Index (IBB) was unchanged recently. |
32169.0 | 2021-04-20 00:00:00 UTC | US STOCKS-Wall St headed for lower open as focus turns to tech earnings | ABT | https://www.nasdaq.com/articles/us-stocks-wall-st-headed-for-lower-open-as-focus-turns-to-tech-earnings-2021-04-20 | nan | nan | By Shivani Kumaresan
April 20 (Reuters) - Futures pointed to a lower open for Wall Street's main indexes on Tuesday as investors banked on results from Netflix and other major technology-related companies this week to sustain the positive start to the earnings season.
Streaming service provider Netflix NFLX.O, which thrived during last year's lockdowns, will be the first among the so called FAANG group to report quarterly numbers. Its shares slipped about 0.3% in pre-market trading, ahead of its results after markets close.
International Business Machines Corp IBM.N rose 2.7% as it recorded the biggest rise in quarterly sales in more than two years, boosted by its bets on the high-margin cloud computing business.
Chipmaker Intel Corp INTC.O is slated to report results on Thursday.
"We are getting a little bit of weakness ... even though the earnings and economic data is good," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
"The underlying fundamentals are extremely strong and it wouldn't be overly concerning after the rally we have seen in the past 13 months for the market to catch its breath a little bit more in the face of strong earnings."
After blockbuster earnings from major U.S. banks last week, analysts expect first-quarter profit for overall S&P 500 firms to jump 30.9% from a year earlier, according to Refinitiv IBES data.
A pullback in longer-dated bond yields from 14-month highs has eased worries over higher borrowing costs, reviving demand for richly valued technology stocks.
Also, a string of robust economic data and expectations of a strong rebound in corporate earnings helped the S&P 500 and the Dow to hit record highs last week.
At 08:32 a.m. ET, Dow E-minis 1YMcv1 were down 154 points, or 0.45%, S&P 500 E-minis EScv1 were down 18 points, or 0.43% and Nasdaq 100 E-minis NQcv1 were down 48.75 points, or 0.35%.
Tobacco companies, including Altria Group MO.N and Philip Morris PM.N, fell as much as 4.2% after the Wall Street Journal reported that the Biden administration is considering a rule that would limit nicotine or ban menthol in cigarettes.
Abbott Laboratories ABT.N fell 3%, despite posting a three-fold jump in quarterly profit.
Nike Inc NKE.N dropped about 1.6% after Citigroup lowered its rating on the company's shares to "neutral" from "buy".
(Reporting by Shivani Kumaresan and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
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 fell 3%, despite posting a three-fold jump in quarterly profit. By Shivani Kumaresan April 20 (Reuters) - Futures pointed to a lower open for Wall Street's main indexes on Tuesday as investors banked on results from Netflix and other major technology-related companies this week to sustain the positive start to the earnings season. A pullback in longer-dated bond yields from 14-month highs has eased worries over higher borrowing costs, reviving demand for richly valued technology stocks. | Abbott Laboratories ABT.N fell 3%, despite posting a three-fold jump in quarterly profit. By Shivani Kumaresan April 20 (Reuters) - Futures pointed to a lower open for Wall Street's main indexes on Tuesday as investors banked on results from Netflix and other major technology-related companies this week to sustain the positive start to the earnings season. After blockbuster earnings from major U.S. banks last week, analysts expect first-quarter profit for overall S&P 500 firms to jump 30.9% from a year earlier, according to Refinitiv IBES data. | Abbott Laboratories ABT.N fell 3%, despite posting a three-fold jump in quarterly profit. By Shivani Kumaresan April 20 (Reuters) - Futures pointed to a lower open for Wall Street's main indexes on Tuesday as investors banked on results from Netflix and other major technology-related companies this week to sustain the positive start to the earnings season. After blockbuster earnings from major U.S. banks last week, analysts expect first-quarter profit for overall S&P 500 firms to jump 30.9% from a year earlier, according to Refinitiv IBES data. | Abbott Laboratories ABT.N fell 3%, despite posting a three-fold jump in quarterly profit. By Shivani Kumaresan April 20 (Reuters) - Futures pointed to a lower open for Wall Street's main indexes on Tuesday as investors banked on results from Netflix and other major technology-related companies this week to sustain the positive start to the earnings season. After blockbuster earnings from major U.S. banks last week, analysts expect first-quarter profit for overall S&P 500 firms to jump 30.9% from a year earlier, according to Refinitiv IBES data. |
32170.0 | 2021-04-20 00:00:00 UTC | Abbott first-quarter profit surges on COVID-19 test demand | ABT | https://www.nasdaq.com/articles/abbott-first-quarter-profit-surges-on-covid-19-test-demand-2021-04-20-0 | nan | nan | Adds background, forecast, segment growth
April 20 (Reuters) - Abbott Laboratories ABT.N reported a more than threefold jump in quarterly profit on Tuesday, buoyed by robust demand for its COVID-19 test kits and a recovery in its medical devices business.
Abbott and rivals Quest Diagnostics DGX.N and Becton Dickinson and Co BDX.N have benefited from heightened COVID-19 testing, a revenue stream that helped blunt the blow from lower demand for medical devices during the early phase of the crisis.
A recovery in medical device sales as vaccinations encourage patients to opt for elective surgeries put off during the pandemic is now energizing the companies' top line.
In the latest quarter, Abbott's COVID-19 test kits generated sales of $2.2 billion and accounted for more than half of its diagnostic unit's revenue.
Worldwide nutrition sales increased 6.9% in the quarter, while medical device sales increased 13.1%, led by Abbott's blood sugar monitoring device, FreeStyle Libre.
The company reiterated its 2021 adjusted diluted earnings per share outlook of at least $5.00.
Net earnings rose to $1.8 billion, or $1 per share, in the first quarter ended March 31, from $564 million, or 31 cents per share, a year earlier.
Net sales increased to $10.5 billion from $7.73 billion.
(Reporting by Amruta Khandekar and Mrinalika Roy in Bengaluru; Editing by Sriraj Kalluvila)
((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, forecast, segment growth April 20 (Reuters) - Abbott Laboratories ABT.N reported a more than threefold jump in quarterly profit on Tuesday, buoyed by robust demand for its COVID-19 test kits and a recovery in its medical devices business. Abbott and rivals Quest Diagnostics DGX.N and Becton Dickinson and Co BDX.N have benefited from heightened COVID-19 testing, a revenue stream that helped blunt the blow from lower demand for medical devices during the early phase of the crisis. A recovery in medical device sales as vaccinations encourage patients to opt for elective surgeries put off during the pandemic is now energizing the companies' top line. | Adds background, forecast, segment growth April 20 (Reuters) - Abbott Laboratories ABT.N reported a more than threefold jump in quarterly profit on Tuesday, buoyed by robust demand for its COVID-19 test kits and a recovery in its medical devices business. In the latest quarter, Abbott's COVID-19 test kits generated sales of $2.2 billion and accounted for more than half of its diagnostic unit's revenue. Worldwide nutrition sales increased 6.9% in the quarter, while medical device sales increased 13.1%, led by Abbott's blood sugar monitoring device, FreeStyle Libre. | Adds background, forecast, segment growth April 20 (Reuters) - Abbott Laboratories ABT.N reported a more than threefold jump in quarterly profit on Tuesday, buoyed by robust demand for its COVID-19 test kits and a recovery in its medical devices business. In the latest quarter, Abbott's COVID-19 test kits generated sales of $2.2 billion and accounted for more than half of its diagnostic unit's revenue. Worldwide nutrition sales increased 6.9% in the quarter, while medical device sales increased 13.1%, led by Abbott's blood sugar monitoring device, FreeStyle Libre. | Adds background, forecast, segment growth April 20 (Reuters) - Abbott Laboratories ABT.N reported a more than threefold jump in quarterly profit on Tuesday, buoyed by robust demand for its COVID-19 test kits and a recovery in its medical devices business. In the latest quarter, Abbott's COVID-19 test kits generated sales of $2.2 billion and accounted for more than half of its diagnostic unit's revenue. Net earnings rose to $1.8 billion, or $1 per share, in the first quarter ended March 31, from $564 million, or 31 cents per share, a year earlier. |
32171.0 | 2021-04-20 00:00:00 UTC | Abbott Laboratories Backs FY21 Outlook - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-laboratories-backs-fy21-outlook-quick-facts-2021-04-20 | nan | nan | (RTTNews) - While reporting its financial results for the first quarter on Tuesday, Abbott Laboratories (ABT) maintained its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflects a growth of more than 35 percent from last year.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. Analysts' estimates typically exclude special items.
"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 Robert Ford, president and chief executive officer, Abbott.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting its financial results for the first quarter on Tuesday, Abbott Laboratories (ABT) maintained its earnings and adjusted earnings guidance for the full-year 2021. On average, analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. "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 Robert Ford, president and chief executive officer, Abbott. | (RTTNews) - While reporting its financial results for the first quarter on Tuesday, Abbott Laboratories (ABT) maintained its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflects a growth of more than 35 percent from last year. On average, analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. | (RTTNews) - While reporting its financial results for the first quarter on Tuesday, Abbott Laboratories (ABT) maintained its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflects a growth of more than 35 percent from last year. On average, analysts polled by Thomson Reuters expect the company to report earnings of $5.04 per share for the year. | (RTTNews) - While reporting its financial results for the first quarter on Tuesday, Abbott Laboratories (ABT) maintained its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of at least $3.74 per share and adjusted earnings from continuing operations of at least $5.00 per share, reflects a growth of more than 35 percent from last year. Analysts' estimates typically exclude special items. |
32172.0 | 2021-04-20 00:00:00 UTC | Abbott Laboratories Q1 21 Earnings Conference Call At 9:30 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q1-21-earnings-conference-call-at-9%3A30-am-et-2021-04-20 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:30 AM ET on April 20, 2021, to discuss Q1 21 earnings results.
To access the live webcast, log on to http://www.abbottinvestor.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:30 AM ET on April 20, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:30 AM ET on April 20, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:30 AM ET on April 20, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:30 AM ET on April 20, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://www.abbottinvestor.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32173.0 | 2021-04-20 00:00:00 UTC | What To Expect From Intuitive Surgical's Q1? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-intuitive-surgicals-q1-2021-04-20 | nan | nan | Intuitive Surgical (NASDAQ:ISRG), a fast growing medical devices company, is scheduled to report its Q1 2021 results on Tuesday, April 20. We expect Intuitive Surgical to likely beat the revenue and earnings expectations, driven by a strong rebound in total procedure volume. We expect the company to navigate well based on these trends over the latest quarter.
Furthermore, our forecast indicates that Intuitive Surgical’s valuation is around $870 per share, which is 8% higher than the current market price of around $805. Our interactive dashboard analysis on Intuitive Surgical Pre-Earnings has additional details.
(1) Revenues expected to beat the consensus estimates
Trefis estimates Intuitive Surgical’s Q1 2021 revenues to be around $1.2 Bil, slightly ahead of the $1.1 Bil consensus estimate. While a deferment of elective surgeries last year impacted the overall revenue growth in Q1 2020, the ongoing vaccination programs and gradual opening up of economies has resulted in increase in procedures volume over the recent months, and this should augur well for Intuitive Surgical’s top line growth. The company’s Q4 2020 sales were up 4% to $1.3 billion, driven by higher instruments & accessories sales, while the system revenues declined due to fewer placements. Our dashboard on Intuitive Surgical Revenues offers more details on the company’s segments.
2) EPS also likely to be ahead of consensus estimates
Intuitive Surgical’s Q1 2021 adjusted earnings per share (EPS) is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. Intuitive Surgical’s adjusted net income of $434 million in Q4 2020 reflected a 4% rise from its $417 million figure in the prior-year quarter. The decline in earnings was in-line with that of revenues, as margins remained stable. That said, the margins will likely improve going forward, as the procedure volume increases. For the full-year 2021, we expect the adjusted EPS to be higher at $12.90 compared to $10.14 in 2020.
(3) Stock price estimate higher than the current market price
Going by our Intuitive Surgical’s Valuation, with an EPS estimate of around $12.90 and a P/E multiple of around 67x in 2021, this translates into a price of $870, which is 8% above the current market price of around $805. Investors have assigned a high trading multiple for ISRG stock, given the strong revenue and earnings growth over the past years, and this trend is expected to continue going forward as well. Note that Intuitive Surgical generates recurring revenues from every system placed, driven by the instruments and accessories sales, as well as services. At the current price of $805, ISRG stock is trading at 62x its 2021 earnings, as compared to levels of over 80x 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
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ISRG stock may see gains going forward, 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. | Intuitive Surgical (NASDAQ:ISRG), a fast growing medical devices company, is scheduled to report its Q1 2021 results on Tuesday, April 20. Investors have assigned a high trading multiple for ISRG stock, given the strong revenue and earnings growth over the past years, and this trend is expected to continue going forward as well. Note that Intuitive Surgical generates recurring revenues from every system placed, driven by the instruments and accessories sales, as well as services. | (1) Revenues expected to beat the consensus estimates Trefis estimates Intuitive Surgical’s Q1 2021 revenues to be around $1.2 Bil, slightly ahead of the $1.1 Bil consensus estimate. 2) EPS also likely to be ahead of consensus estimates Intuitive Surgical’s Q1 2021 adjusted earnings per share (EPS) is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. 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. | (1) Revenues expected to beat the consensus estimates Trefis estimates Intuitive Surgical’s Q1 2021 revenues to be around $1.2 Bil, slightly ahead of the $1.1 Bil consensus estimate. 2) EPS also likely to be ahead of consensus estimates Intuitive Surgical’s Q1 2021 adjusted earnings per share (EPS) is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. (3) Stock price estimate higher than the current market price Going by our Intuitive Surgical’s Valuation, with an EPS estimate of around $12.90 and a P/E multiple of around 67x in 2021, this translates into a price of $870, which is 8% above the current market price of around $805. | We expect Intuitive Surgical to likely beat the revenue and earnings expectations, driven by a strong rebound in total procedure volume. 2) EPS also likely to be ahead of consensus estimates Intuitive Surgical’s Q1 2021 adjusted earnings per share (EPS) is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. Investors have assigned a high trading multiple for ISRG stock, given the strong revenue and earnings growth over the past years, and this trend is expected to continue going forward as well. |
32174.0 | 2021-04-19 00:00:00 UTC | CVS Announces the Availability of Over-the-Counter COVID-19 Tests | ABT | https://www.nasdaq.com/articles/cvs-announces-the-availability-of-over-the-counter-covid-19-tests-2021-04-19 | nan | nan | CVS Health (NYSE: CVS) said on Monday that its stores have begun carrying three over-the-counter COVID-19 tests.
The products -- the Ellume COVID-19 Home Test, Abbott Laboratories' BinaxNOW Antigen Self Test, and the Pixel by Labcorp PCR Test Home Collection Kit -- are now available in a number of CVS locations. They can also be purchased through the company's e-commerce portal.
Image source: Labcorp.
They range in price from $23.99 for the Abbott test, to $119 for the Pixel by Labcorp product. None of the three require a doctor's prescription, and they can be used by individuals who do or do not show symptoms of the disease.
"CVS Health has been a leader in providing accessible testing in communities nationwide, and we continue to bring new solutions to market to ensure that consumers have a variety of COVID-19 testing options available to them," said George Coleman, senior vice president and chief merchant of the CVS Pharmacy unit.
While the availability of the tests likely won't move the needle much on the massive CVS' financials, it is certainly a positive development in the continuing fight against the spread of COVID-19. Public testing is widely available, but it can sometimes be difficult for people to get to testing sites, or to carve out the time necessary.
Perhaps because of the encouraging news, CVS stock did marginally better than the S&P 500 index on Monday. The former dipped by almost 0.2%, while the latter sank by over 0.5%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "CVS Health has been a leader in providing accessible testing in communities nationwide, and we continue to bring new solutions to market to ensure that consumers have a variety of COVID-19 testing options available to them," said George Coleman, senior vice president and chief merchant of the CVS Pharmacy unit. While the availability of the tests likely won't move the needle much on the massive CVS' financials, it is certainly a positive development in the continuing fight against the spread of COVID-19. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and CVS Health wasn't one of them! | 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 February 24, 2021 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health. | The products -- the Ellume COVID-19 Home Test, Abbott Laboratories' BinaxNOW Antigen Self Test, and the Pixel by Labcorp PCR Test Home Collection Kit -- are now available in a number of CVS locations. "CVS Health has been a leader in providing accessible testing in communities nationwide, and we continue to bring new solutions to market to ensure that consumers have a variety of COVID-19 testing options available to them," said George Coleman, senior vice president and chief merchant of the CVS Pharmacy unit. 10 stocks we like better than CVS Health When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | The products -- the Ellume COVID-19 Home Test, Abbott Laboratories' BinaxNOW Antigen Self Test, and the Pixel by Labcorp PCR Test Home Collection Kit -- are now available in a number of CVS locations. They range in price from $23.99 for the Abbott test, to $119 for the Pixel by Labcorp product. The Motley Fool recommends CVS Health. |
32175.0 | 2021-04-19 00:00:00 UTC | Pre-Market Earnings Report for April 20, 2021 : JNJ, PG, ABT, PM, LMT, TRV, FITB, NTRS, DOV, KEY, OMC, CMA | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-april-20-2021-%3A-jnj-pg-abt-pm-lmt-trv-fitb-ntrs-dov-key-omc | nan | nan | The following companies are expected to report earnings prior to market open on 04/20/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Johnson & Johnson (JNJ) is reporting for the quarter ending March 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.31. This value represents a 0.43% increase compared to the same quarter last year. In the past year JNJ has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.76%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JNJ is 17.11 vs. an industry ratio of 13.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Procter & Gamble Company (PG) is reporting for the quarter ending March 31, 2021. The cleaning company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.19. This value represents a 1.71% increase compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 8.61%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PG is 24.29 vs. an industry ratio of 23.00, 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 March 31, 2021. The medical products company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.33. This value represents a 104.62% increase compared to the same quarter last year. In the past year ABT has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 6.62%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.53 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Philip Morris International Inc (PM) is reporting for the quarter ending March 31, 2021. The tobacco company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.40. This value represents a 15.70% increase compared to the same quarter last year. In the past year PM has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.44%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PM is 15.62 vs. an industry ratio of 7.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Lockheed Martin Corporation (LMT) is reporting for the quarter ending March 31, 2021. The aerospace and defense company's consensus earnings per share forecast from the 9 analysts that follow the stock is $6.32. This value represents a 3.95% increase compared to the same quarter last year. In the past year LMT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LMT is 14.89 vs. an industry ratio of 503.90.
The Travelers Companies, Inc. (TRV) is reporting for the quarter ending March 31, 2021. The insurance (property & casualty) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.44. This value represents a 6.87% decrease compared to the same quarter last year. TRV missed the consensus earnings per share in the 1st calendar quarter of 2020 by -9.03%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TRV is 14.51 vs. an industry ratio of 36.80.
Fifth Third Bancorp (FITB) is reporting for the quarter ending March 31, 2021. The bank company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.69. This value represents a 430.77% increase compared to the same quarter last year. FITB missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FITB is 12.32 vs. an industry ratio of 12.80.
Northern Trust Corporation (NTRS) is reporting for the quarter ending March 31, 2021. The bank company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.51. This value represents a 2.58% decrease compared to the same quarter last year. The last two quarters NTRS had negative earnings surprises; the latest report they missed by -1.97%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for NTRS is 16.27 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Dover Corporation (DOV) is reporting for the quarter ending March 31, 2021. The machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.47. This value represents a 5.76% increase compared to the same quarter last year. In the past year DOV has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 13.14%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DOV is 21.73 vs. an industry ratio of 34.60.
KeyCorp (KEY) is reporting for the quarter ending March 31, 2021. The bank company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.49. This value represents a 308.33% increase compared to the same quarter last year. In the past year KEY has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 30.23%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for KEY is 10.72 vs. an industry ratio of 12.80.
Omnicom Group Inc. (OMC) is reporting for the quarter ending March 31, 2021. The advertising/marketing company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.13. This value represents a 5.04% decrease compared to the same quarter last year. In the past year OMC has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 14.46%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for OMC is 13.25 vs. an industry ratio of 1.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Comerica Incorporated (CMA) is reporting for the quarter ending March 31, 2021. The bank company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.38. This value represents a 400.00% increase compared to the same quarter last year. CMA missed the consensus earnings per share in the 1st calendar quarter of 2020 by -159.74%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CMA is 12.90 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) is reporting for the quarter ending March 31, 2021. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.53 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.53 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT) is reporting for the quarter ending March 31, 2021. In the past year ABT has beat the expectations every quarter. | Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.53 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry. Abbott Laboratories (ABT) is reporting for the quarter ending March 31, 2021. In the past year ABT has beat the expectations every quarter. | Abbott Laboratories (ABT) is reporting for the quarter ending March 31, 2021. In the past year ABT has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABT is 24.53 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry. |
32176.0 | 2021-04-19 00:00:00 UTC | Noteworthy Monday Option Activity: ABT, LNTH, AMAT | ABT | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-abt-lnth-amat-2021-04-19 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Abbott Laboratories (Symbol: ABT), where a total volume of 23,450 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.3% of ABT's average daily trading volume over the past month, of 5.2 million shares. Especially high volume was seen for the $124 strike put option expiring April 23, 2021, with 1,620 contracts trading so far today, representing approximately 162,000 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $124 strike highlighted in orange:
Lantheus Holdings Inc (Symbol: LNTH) options are showing a volume of 2,761 contracts thus far today. That number of contracts represents approximately 276,100 underlying shares, working out to a sizeable 43.5% of LNTH's average daily trading volume over the past month, of 634,940 shares. Especially high volume was seen for the $22.50 strike call option expiring May 21, 2021, with 1,006 contracts trading so far today, representing approximately 100,600 underlying shares of LNTH. Below is a chart showing LNTH's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
And Applied Materials, Inc. (Symbol: AMAT) saw options trading volume of 51,874 contracts, representing approximately 5.2 million underlying shares or approximately 43.3% of AMAT's average daily trading volume over the past month, of 12.0 million shares. Particularly high volume was seen for the $140 strike call option expiring April 23, 2021, with 2,335 contracts trading so far today, representing approximately 233,500 underlying shares of AMAT. Below is a chart showing AMAT's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for ABT options, LNTH options, or AMAT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $124 strike put option expiring April 23, 2021, with 1,620 contracts trading so far today, representing approximately 162,000 underlying shares of ABT. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Abbott Laboratories (Symbol: ABT), where a total volume of 23,450 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.3% of ABT's average daily trading volume over the past month, of 5.2 million shares. | Especially high volume was seen for the $124 strike put option expiring April 23, 2021, with 1,620 contracts trading so far today, representing approximately 162,000 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $124 strike highlighted in orange: Lantheus Holdings Inc (Symbol: LNTH) options are showing a volume of 2,761 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Abbott Laboratories (Symbol: ABT), where a total volume of 23,450 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Abbott Laboratories (Symbol: ABT), where a total volume of 23,450 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.3% of ABT's average daily trading volume over the past month, of 5.2 million shares. Especially high volume was seen for the $124 strike put option expiring April 23, 2021, with 1,620 contracts trading so far today, representing approximately 162,000 underlying shares of ABT. | Especially high volume was seen for the $124 strike put option expiring April 23, 2021, with 1,620 contracts trading so far today, representing approximately 162,000 underlying shares of ABT. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Abbott Laboratories (Symbol: ABT), where a total volume of 23,450 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.3% of ABT's average daily trading volume over the past month, of 5.2 million shares. |
32177.0 | 2021-04-19 00:00:00 UTC | PREVIEW-Abbott's results a litmus test for COVID-19 testing demand | ABT | https://www.nasdaq.com/articles/preview-abbotts-results-a-litmus-test-for-covid-19-testing-demand-2021-04-19 | nan | nan | By Manojna Maddipatla
April 19 (Reuters) - Investors will be squarely focused on Abbott Laboratories ABT.N results on Tuesday to assess the impact of swift vaccination rollout on demand for the company's COVID-19 tests.
Diagnostic test makers such as Abbott, Becton Dickinson BDX.N and Quest Diagnostics Inc DGX.N have relied on brisk sales of COVID-19 molecular and antigen tests to offset soft demand for routine testing and medical devices due to pandemic-induced restrictions on movement.
"I think the investor and Street conversations and concerns are that because of vaccination trends, because of the reopening and trajectory of many economies around the world, especially the U.S., are we going to need all these tests?," Credit Suisse analyst Matt Miksic said.
Quest, which is set to report its quarterly results on April 22, said in February that it was expecting demand for its COVID-19 tests to shrink in the year as vaccination efforts ramp up.
For 2021, Abbott has forecast sales of about $6.5 billion to $7 billion from its COVID-19 tests, up from nearly $4 billion last year.
THE CONTEXT
Abbott and Quest have been investing heavily to develop tests that are more accurate with shorter turn-around times.
Abbott currently has U.S. authorization for several tests including its $5 portable antigen test called BinaxNOW, which last month received U.S. clearance for over-the-counter, at-home use in people without symptoms.
Sustained demand for these tests has come under question since the United States began to roll out multiple vaccine candidates, including two-shot vaccines from Pfizer/BioNTech PFE.N, 22UAy.DE and Moderna Inc MRNA.O.
THE FUNDAMENTALS
** Abbott is expected to report a 38.3% rise in revenue to $10.69 billion when it reports first-quarter earnings on April 20, according to the mean estimate from 18 analysts, based on Refinitiv data.
** The mean analyst estimate for earnings is $1.27 per share. For the same quarter last year, the company reported earnings of 65 cents per share.
WALL STREET SENTIMENT
** The current average analyst rating on Abbott shares is "buy", with 10 analysts rating it "strong buy", eight "buy", four "hold" and one "sell".
** Wall Street's median 12-month price target is $137, up from $122 in January.
** The company's shares have gained about 14% so far this year.
QUARTER ENDING
EPS ESTIMATE ($)
ACTUAL EPS ($)
BEAT, MET, MISSED
Dec. 31 2020
1.35
1.45
Beat
Sep. 30 2020
0.91
0.98
Beat
Jun. 30 2020
0.42
0.57
Beat
Mar. 31 2020
0.58
0.65
Beat
UPDATE 3-Abbott's profit forecast gets a lift from COVID-19 test demand
UPDATE 3-Quest expects demand for COVID-19 tests to wane as vaccine rollout gathers steam
UPDATE 3-Becton Dickinson lifts 2021 profit forecast on robust COVID-19 test demand
UPDATE 1-Roche test boss says COVID rapid test effectiveness to wane as shots increase
COVID-19 testing engines Abbott's diagnostics sales growth COVID-19 testing engines Abbott's diagnostics sales growthhttps://tmsnrt.rs/3v1jgzZ
COVID-19 testing engines Abbott's diagnostics sales growth COVID-19 testing engines Abbott's diagnostics sales growthhttps://tmsnrt.rs/3v2UPCe
Abbott, Quest Diagnostics share performance in the past 12 months Abbott, Quest Diagnostics share performance in the past 12 monthshttps://tmsnrt.rs/3tzf3TR
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Anil D'Silva)
((manojna.kalyani@thomsonreuters.com; +91 8061822700;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Manojna Maddipatla April 19 (Reuters) - Investors will be squarely focused on Abbott Laboratories ABT.N results on Tuesday to assess the impact of swift vaccination rollout on demand for the company's COVID-19 tests. "I think the investor and Street conversations and concerns are that because of vaccination trends, because of the reopening and trajectory of many economies around the world, especially the U.S., are we going to need all these tests?," Credit Suisse analyst Matt Miksic said. Quest, which is set to report its quarterly results on April 22, said in February that it was expecting demand for its COVID-19 tests to shrink in the year as vaccination efforts ramp up. | By Manojna Maddipatla April 19 (Reuters) - Investors will be squarely focused on Abbott Laboratories ABT.N results on Tuesday to assess the impact of swift vaccination rollout on demand for the company's COVID-19 tests. For 2021, Abbott has forecast sales of about $6.5 billion to $7 billion from its COVID-19 tests, up from nearly $4 billion last year. ** The current average analyst rating on Abbott shares is "buy", with 10 analysts rating it "strong buy", eight "buy", four "hold" and one "sell". | By Manojna Maddipatla April 19 (Reuters) - Investors will be squarely focused on Abbott Laboratories ABT.N results on Tuesday to assess the impact of swift vaccination rollout on demand for the company's COVID-19 tests. Diagnostic test makers such as Abbott, Becton Dickinson BDX.N and Quest Diagnostics Inc DGX.N have relied on brisk sales of COVID-19 molecular and antigen tests to offset soft demand for routine testing and medical devices due to pandemic-induced restrictions on movement. 31 2020 0.58 0.65 Beat UPDATE 3-Abbott's profit forecast gets a lift from COVID-19 test demand UPDATE 3-Quest expects demand for COVID-19 tests to wane as vaccine rollout gathers steam UPDATE 3-Becton Dickinson lifts 2021 profit forecast on robust COVID-19 test demand UPDATE 1-Roche test boss says COVID rapid test effectiveness to wane as shots increase COVID-19 testing engines Abbott's diagnostics sales growth COVID-19 testing engines Abbott's diagnostics sales growthhttps://tmsnrt.rs/3v1jgzZ COVID-19 testing engines Abbott's diagnostics sales growth COVID-19 testing engines Abbott's diagnostics sales growthhttps://tmsnrt.rs/3v2UPCe Abbott, Quest Diagnostics share performance in the past 12 months Abbott, Quest Diagnostics share performance in the past 12 monthshttps://tmsnrt.rs/3tzf3TR (Reporting by Manojna Maddipatla in Bengaluru; Editing by Anil D'Silva) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Manojna Maddipatla April 19 (Reuters) - Investors will be squarely focused on Abbott Laboratories ABT.N results on Tuesday to assess the impact of swift vaccination rollout on demand for the company's COVID-19 tests. ** Abbott is expected to report a 38.3% rise in revenue to $10.69 billion when it reports first-quarter earnings on April 20, according to the mean estimate from 18 analysts, based on Refinitiv data. ** The mean analyst estimate for earnings is $1.27 per share. |
32178.0 | 2021-04-19 00:00:00 UTC | CVS to offer three over-the-counter COVID-19 tests for use at home | ABT | https://www.nasdaq.com/articles/cvs-to-offer-three-over-the-counter-covid-19-tests-for-use-at-home-2021-04-19-0 | nan | nan | Adds Walgreens, Walmart update on Abbott test
April 19 (Reuters) - CVS Health Corp CVS.N said on Monday it would offer three over-the-counter COVID-19 tests at its drugstores as well as online, expanding access to home testing in the United States.
With schools and offices seeking to reopen as the country steps up its COVID-19 vaccination drive, pharmacies are boosting their offering of tests.
CVS said it was offering tests from Australian diagnostic test maker Ellume, Abbott Laboratories ABT.N and LabCorp LH.N that do not require a prescription and can be used by individuals with or without symptoms.
Abbott's BinaxNOW antigen self-test, which recently received U.S. regulatory nod, and LabCorp's test kits are available online and at some pharmacy stores, CVS said.
Separately, Abbott said its test would also be available at Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N.
Walmart will sell the test online and in stores for $19.88 per kit, while Walgreens said the test can initially be purchased online and in-store later this week.
Walgreens has also been selling LabCorp's test kits since early this month.
CVS is the first drug retailer to offer Ellume's test, the company said, adding the test will be available in select pharmacy locations in Rhode Island and Massachusetts from this week, and at CVS.com and most pharmacy stores by the end of May.
Ellume and Abbott's tests can deliver results in 15 minutes, while LabCorp's test gives results in one or two days.
(Reporting by Amruta Khandekar; Editing by Vinay Dwivedi and Shinjini Ganguli)
((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. | CVS said it was offering tests from Australian diagnostic test maker Ellume, Abbott Laboratories ABT.N and LabCorp LH.N that do not require a prescription and can be used by individuals with or without symptoms. With schools and offices seeking to reopen as the country steps up its COVID-19 vaccination drive, pharmacies are boosting their offering of tests. Abbott's BinaxNOW antigen self-test, which recently received U.S. regulatory nod, and LabCorp's test kits are available online and at some pharmacy stores, CVS said. | CVS said it was offering tests from Australian diagnostic test maker Ellume, Abbott Laboratories ABT.N and LabCorp LH.N that do not require a prescription and can be used by individuals with or without symptoms. Abbott's BinaxNOW antigen self-test, which recently received U.S. regulatory nod, and LabCorp's test kits are available online and at some pharmacy stores, CVS said. Walmart will sell the test online and in stores for $19.88 per kit, while Walgreens said the test can initially be purchased online and in-store later this week. | CVS said it was offering tests from Australian diagnostic test maker Ellume, Abbott Laboratories ABT.N and LabCorp LH.N that do not require a prescription and can be used by individuals with or without symptoms. Adds Walgreens, Walmart update on Abbott test April 19 (Reuters) - CVS Health Corp CVS.N said on Monday it would offer three over-the-counter COVID-19 tests at its drugstores as well as online, expanding access to home testing in the United States. Walmart will sell the test online and in stores for $19.88 per kit, while Walgreens said the test can initially be purchased online and in-store later this week. | CVS said it was offering tests from Australian diagnostic test maker Ellume, Abbott Laboratories ABT.N and LabCorp LH.N that do not require a prescription and can be used by individuals with or without symptoms. With schools and offices seeking to reopen as the country steps up its COVID-19 vaccination drive, pharmacies are boosting their offering of tests. Abbott's BinaxNOW antigen self-test, which recently received U.S. regulatory nod, and LabCorp's test kits are available online and at some pharmacy stores, CVS said. |
32179.0 | 2021-04-19 00:00:00 UTC | CVS to offer three over-the-counter COVID-19 tests for use at home | ABT | https://www.nasdaq.com/articles/cvs-to-offer-three-over-the-counter-covid-19-tests-for-use-at-home-2021-04-19 | nan | nan | April 19 (Reuters) - CVS Health Corp CVS.N said on Monday it would offer three over-the-counter COVID-19 tests at its drugstores as well as online, expanding access to home testing as the United States speeds up its vaccine rollout.
The company said the tests include a home test by Australian diagnostic test maker Ellume, Abbott Laboratories' ABT.N BinaxNOW antigen self-test and LabCorp's LH.N home collection kits, all of which do not require a prescription, and can be used by individuals with or without symptoms.
The move comes at a time when schools and offices in the United States are increasingly seeking to return to physical operations, as the country steps up its vaccination drive.
CVS is the first drug retailer to offer Ellume's test, the company said, adding that the test will be available in select pharmacy locations in Rhode-Island and Massachusetts from this week, and at CVS.com and most pharmacy stores by the end of May.
Abbott self-test, which recently received U.S. regulatory nod and LabCorp's test kits are available online and at some pharmacy stores, CVS said.
Rival Walgreens Boots Alliance Inc WBA.O which, along with CVS, has an agreement with the federal government to vaccinate U.S. nursing home residents through a voluntary program has also been selling LabCorp's test kits since early this month.
Ellume and Abbott's tests can deliver results in 15 minutes while LabCorp's test gives results in one or two days.
(Reporting by Amruta Khandekar; Editing by Vinay Dwivedi)
((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. | The company said the tests include a home test by Australian diagnostic test maker Ellume, Abbott Laboratories' ABT.N BinaxNOW antigen self-test and LabCorp's LH.N home collection kits, all of which do not require a prescription, and can be used by individuals with or without symptoms. The move comes at a time when schools and offices in the United States are increasingly seeking to return to physical operations, as the country steps up its vaccination drive. Abbott self-test, which recently received U.S. regulatory nod and LabCorp's test kits are available online and at some pharmacy stores, CVS said. | The company said the tests include a home test by Australian diagnostic test maker Ellume, Abbott Laboratories' ABT.N BinaxNOW antigen self-test and LabCorp's LH.N home collection kits, all of which do not require a prescription, and can be used by individuals with or without symptoms. Abbott self-test, which recently received U.S. regulatory nod and LabCorp's test kits are available online and at some pharmacy stores, CVS said. Ellume and Abbott's tests can deliver results in 15 minutes while LabCorp's test gives results in one or two days. | The company said the tests include a home test by Australian diagnostic test maker Ellume, Abbott Laboratories' ABT.N BinaxNOW antigen self-test and LabCorp's LH.N home collection kits, all of which do not require a prescription, and can be used by individuals with or without symptoms. April 19 (Reuters) - CVS Health Corp CVS.N said on Monday it would offer three over-the-counter COVID-19 tests at its drugstores as well as online, expanding access to home testing as the United States speeds up its vaccine rollout. CVS is the first drug retailer to offer Ellume's test, the company said, adding that the test will be available in select pharmacy locations in Rhode-Island and Massachusetts from this week, and at CVS.com and most pharmacy stores by the end of May. | The company said the tests include a home test by Australian diagnostic test maker Ellume, Abbott Laboratories' ABT.N BinaxNOW antigen self-test and LabCorp's LH.N home collection kits, all of which do not require a prescription, and can be used by individuals with or without symptoms. April 19 (Reuters) - CVS Health Corp CVS.N said on Monday it would offer three over-the-counter COVID-19 tests at its drugstores as well as online, expanding access to home testing as the United States speeds up its vaccine rollout. The move comes at a time when schools and offices in the United States are increasingly seeking to return to physical operations, as the country steps up its vaccination drive. |
32180.0 | 2021-04-19 00:00:00 UTC | Abbott Begins Shipping BinaxNOW COVID-19 Ag Self Test To Retailers Today - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-begins-shipping-binaxnow-covid-19-ag-self-test-to-retailers-today-quick-facts-2021 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) announced Monday that it began shipping its BinaxNOW COVID-19 Ag Self Test to retailers across the country. Consumers can expect the test to be available in the next few days online and in some stores.
However, the broader nationwide availability is expected in the next two weeks as tests work their way through distribution channels.
BinaxNOW is the most studied and widely available rapid antigen test in the U.S. and initially will be available at CVS Pharmacy, Walgreens and Walmart without a prescription.
The BinaxNOW Self Test, which can be purchased over the counter without a prescription, will be sold in 2-count packs for an MSRP of $23.99, making it the most affordable over-the-counter (OTC) COVID-19 rapid test available in the U.S.
Abbott said it will manufacture tens of millions of BinaxNOW Self Tests per month and can scale capacity upward based on demand.
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 it began shipping its BinaxNOW COVID-19 Ag Self Test to retailers across the country. Consumers can expect the test to be available in the next few days online and in some stores. However, the broader nationwide availability is expected in the next two weeks as tests work their way through distribution channels. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that it began shipping its BinaxNOW COVID-19 Ag Self Test to retailers across the country. Consumers can expect the test to be available in the next few days online and in some stores. BinaxNOW is the most studied and widely available rapid antigen test in the U.S. and initially will be available at CVS Pharmacy, Walgreens and Walmart without a prescription. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that it began shipping its BinaxNOW COVID-19 Ag Self Test to retailers across the country. BinaxNOW is the most studied and widely available rapid antigen test in the U.S. and initially will be available at CVS Pharmacy, Walgreens and Walmart without a prescription. The BinaxNOW Self Test, which can be purchased over the counter without a prescription, will be sold in 2-count packs for an MSRP of $23.99, making it the most affordable over-the-counter (OTC) COVID-19 rapid test available in the U.S. Abbott said it will manufacture tens of millions of BinaxNOW Self Tests per month and can scale capacity upward based on demand. | (RTTNews) - Abbott Laboratories (ABT) announced Monday that it began shipping its BinaxNOW COVID-19 Ag Self Test to retailers across the country. Consumers can expect the test to be available in the next few days online and in some stores. However, the broader nationwide availability is expected in the next two weeks as tests work their way through distribution channels. |
32181.0 | 2021-04-19 00:00:00 UTC | Here's Why We Think Abbott Stock Will Rise Post Q1 | ABT | https://www.nasdaq.com/articles/heres-why-we-think-abbott-stock-will-rise-post-q1-2021-04-19 | nan | nan | Abbott stock (NYSE: ABT) is scheduled to report its Q1 2021 results on Tuesday, April 20. We expect Abbott to report revenues in-line and earnings above the consensus estimates, driven by continued demand for Covid-19 testing, along with a rebound in demand for medical devices. We expect the company to navigate well based on these trends over the latest quarter.
However, our forecast indicates that Abbott’s valuation is around $140 per share, which is 15% higher than the current market price of around $122. Our interactive dashboard analysis on Abbott’s Pre-Earnings has additional details.
(1) Revenues expected to be in-line with the consensus estimates
Trefis estimates Abbott’s Q1 2021 revenues to be around $10.7 Bil, in-line with the consensus estimate. Abbott in 2020 saw a decline in medical devices revenue, due to deferment of elective surgeries given the spread of Covid-19. However, the decline was more than offset by strong growth in diagnostics sales driven by Covid-19 testing. While the testing is expected to remain high in the near term, especially for BinaxNOW (Abbott’s 15-minute Covid-19 test) there has been a rebound in volume of elective surgeries over the recent months, and it should augur well for Abbott’s top-line expansion in Q1. Abbott’s Q4 2020 sales were up 29% y-o-y to $10.7 Bil, primarily led by a massive 2x surge in the diagnostics sales, led by Covid-19 testing. Our dashboard on Abbott Revenues offers more details on the company’s segments.
2) EPS likely to top the consensus estimates
Abbott’s Q1 2021 adjusted earnings per share (EPS) is expected to be $1.35 per Trefis analysis, 5% above the consensus estimate of $1.28. Abbott’s adjusted net income of $2.6 Bil in Q4 2020 reflected a large 53% growth from its $1.7 Bil figure in the prior-year quarter. This can be attributed to higher revenues and operating expenses, including R&D and SG&A, growing at a slower pace compared to the revenue growth. This trend is expected to continue in Q1 as well, bolstering the overall earnings growth. For the full-year, we expect the adjusted EPS to be higher at $5.25 compared to $3.67 in 2020.
(3) Stock price estimate 15% higher than the current market price
Going by our Abbott’s Valuation, with an EPS estimate of around $5.25 and a P/E multiple of around 27x in 2021, this translates into a price of $140, which is 15% above the current market price of around $122. At current levels of $122, Abbott is trading at 23x its expected EPS of $5.25 in 2021, and the 23x figure compares with levels of 30x seen as recent 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.
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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 stock (NYSE: ABT) is scheduled to report its Q1 2021 results on Tuesday, April 20. At current levels of $122, Abbott is trading at 23x its expected EPS of $5.25 in 2021, and the 23x figure compares with levels of 30x seen as recent as late 2020, and 27x seen in late 2019, implying there is more room for growth for ABT stock. \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. | Abbott stock (NYSE: ABT) is scheduled to report its Q1 2021 results on Tuesday, April 20. At current levels of $122, Abbott is trading at 23x its expected EPS of $5.25 in 2021, and the 23x figure compares with levels of 30x seen as recent as late 2020, and 27x seen in late 2019, implying there is more room for growth for ABT stock. \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. | Abbott stock (NYSE: ABT) is scheduled to report its Q1 2021 results on Tuesday, April 20. At current levels of $122, Abbott is trading at 23x its expected EPS of $5.25 in 2021, and the 23x figure compares with levels of 30x seen as recent as late 2020, and 27x seen in late 2019, implying there is more room for growth for ABT stock. \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. | Abbott stock (NYSE: ABT) is scheduled to report its Q1 2021 results on Tuesday, April 20. At current levels of $122, Abbott is trading at 23x its expected EPS of $5.25 in 2021, and the 23x figure compares with levels of 30x seen as recent as late 2020, and 27x seen in late 2019, implying there is more room for growth for ABT stock. \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. |
32182.0 | 2021-04-15 00:00:00 UTC | Medtronic Is Healing Hearts and Padding Portfolios | ABT | https://www.nasdaq.com/articles/medtronic-is-healing-hearts-and-padding-portfolios-2021-04-15 | nan | nan | There's a chance that at some point in your life, you've either known, or will know, someone with a health condition that has an effect on their heart and endangers their well-being. Medtronic (NYSE: MDT) helps to solve these problems with its pipeline of pacemakers designed to regulate a patient's heart rate. In doing so, it's both advancing healthcare technology and providing opportunities for long-term investors.
Image source: Getty Images.
The stats
Health issues that result in the need for a pacemaker are often subtle. They can lead to fainting spells or other issues which, at the time, may seem "minor." A pacemaker implant can save lives and improve the quality of life for many patients. They're a big deal in medical technology (MedTech). According to Statista, there were 1.14 million pacemakers in use globally in 2016.
That number is expected to increase 25% by 2023. Implantable pacemakers made up approximately 63% of that market share as of 2019, with conventional -- under the skin -- devices accounting for nearly 52% in terms of revenue.
That rate should switch over to favor newer transcatheter devices as time goes on and advancements take hold. With an expected annual growth rate of 4.3% through 2027, revenues from pacemakers are expected to increase globally from $5 billion to $7.5 billion. The compound annual growth rate (CAGR) for North America alone, through 2026, is estimated to be as high as 10%.
Technological evolution
As one of the big names in the MedTech space -- and commonly synonymous with pacemakers -- Medtronic is actively developing new devices to provide more treatment options to more patients. The Micra transcatheter pacing system (Micra TPS) was approved in 2016. It's a breakthrough leadless pacemaker 93% smaller than conventional pacemakers.
The Micra houses its electronics and battery in a single self-contained capsule placed in the right ventricle of the heart, offering a smaller, less cumbersome device with no leads and a less invasive surgical procedure.
In early 2020, Medtronic took advancements a step further with the U.S. approval and launch of the Micra AV, the world's smallest pacemaker with Atrioventricular Synchrony (AV). The AV device is aimed at treating patients with AV block in order to improve coordinated pacing between the atrium and ventricle. By June, it had received the CE mark for Europe. And this past December, Medtronic followed that up with clearance in Canada.
With the arrival of the newer, sleeker Micra AV device, more pacemaker patients qualify for the treatment option. This opens the door for new patients, as well as for patients who currently have a traditional device. Conventional devices have a battery life of five to 15 years, and require surgery for replacement at some point.
Having a Micra device implanted for existing patients in lieu of a new battery should be an option for many patients. The Micra device also has a battery, but when its expiration is up, the system can be turned off and a new device easily inserted.
Preparing for the future
One obstacle Medtronic could face is that of the competition. Major players such as Abbott Laboratories (NYSE: ABT), EBR Systems, and Boston Scientific (NYSE: BSX) are working on continued advancements in pacemakers, including leadless devices. However, that concern doesn't appear to be front and center for Medtronic at this time.
On Medtronic's most recentearnings callin February, for the third quarter of fiscal year 2021, investors caught a glimpse of what the future may hold. As noted by Chairman and CEO Geoff Martha:
We continue to outperform our competitors in Cardiac Rhythm. We gained another point of share this past quarter on the strength of our Micra family of leadless pacemakers and our Cobalt and Crome high power devices. Micra continues to perform extremely well, with 64% growth globally, including 76% growth in the U.S.
Medtronic is looking forward to sales growth from Micra AV, noting the potential for a Micra target population from approximately 15% to 55% of pacemaker patients, driving market expansion and share gains. Following theearnings call multiple analysts also noted the likelihood of strong growth for Medtronic and highlighted the Micra pacemakers as one of the drivers for the company's future growth.
Over the past 10 years, the stock has grown in tandem with the market, up 209% compared to the S&P 500's 215%. The stock currently trades at a price-to-earnings (P/E) ratio of about 57, which might seem lofty, but is in fact a bargain for Medtronic's growth opportunity. The rest of the healthcare product sector's businesses trade at an average of over 300 times earnings. With all of this in mind, I think it's a safe bet to let Medtronic play a role in your portfolio over the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Major players such as Abbott Laboratories (NYSE: ABT), EBR Systems, and Boston Scientific (NYSE: BSX) are working on continued advancements in pacemakers, including leadless devices. Technological evolution As one of the big names in the MedTech space -- and commonly synonymous with pacemakers -- Medtronic is actively developing new devices to provide more treatment options to more patients. The Micra houses its electronics and battery in a single self-contained capsule placed in the right ventricle of the heart, offering a smaller, less cumbersome device with no leads and a less invasive surgical procedure. | Major players such as Abbott Laboratories (NYSE: ABT), EBR Systems, and Boston Scientific (NYSE: BSX) are working on continued advancements in pacemakers, including leadless devices. With an expected annual growth rate of 4.3% through 2027, revenues from pacemakers are expected to increase globally from $5 billion to $7.5 billion. With the arrival of the newer, sleeker Micra AV device, more pacemaker patients qualify for the treatment option. | Major players such as Abbott Laboratories (NYSE: ABT), EBR Systems, and Boston Scientific (NYSE: BSX) are working on continued advancements in pacemakers, including leadless devices. Technological evolution As one of the big names in the MedTech space -- and commonly synonymous with pacemakers -- Medtronic is actively developing new devices to provide more treatment options to more patients. Micra continues to perform extremely well, with 64% growth globally, including 76% growth in the U.S. Medtronic is looking forward to sales growth from Micra AV, noting the potential for a Micra target population from approximately 15% to 55% of pacemaker patients, driving market expansion and share gains. | Major players such as Abbott Laboratories (NYSE: ABT), EBR Systems, and Boston Scientific (NYSE: BSX) are working on continued advancements in pacemakers, including leadless devices. With an expected annual growth rate of 4.3% through 2027, revenues from pacemakers are expected to increase globally from $5 billion to $7.5 billion. Having a Micra device implanted for existing patients in lieu of a new battery should be an option for many patients. |
32183.0 | 2021-04-14 00:00:00 UTC | XLV, ABT, PFE, MDT: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/xlv-abt-pfe-mdt%3A-etf-outflow-alert-2021-04-14 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $94.8 million dollar outflow -- that's a 0.4% decrease week over week (from 210,920,000 to 210,120,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Pfizer Inc (Symbol: PFE) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $95.285 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $118.98. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Pfizer Inc (Symbol: PFE) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $94.8 million dollar outflow -- that's a 0.4% decrease week over week (from 210,920,000 to 210,120,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Pfizer Inc (Symbol: PFE) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $95.285 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $118.98. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Pfizer Inc (Symbol: PFE) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $94.8 million dollar outflow -- that's a 0.4% decrease week over week (from 210,920,000 to 210,120,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $95.285 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $118.98. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Pfizer Inc (Symbol: PFE) is up about 0.2%, and Medtronic PLC (Symbol: MDT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $94.8 million dollar outflow -- that's a 0.4% decrease week over week (from 210,920,000 to 210,120,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $95.285 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $118.98. |
32184.0 | 2021-04-14 00:00:00 UTC | Follow Warren Buffett Into These 3 Pharma Companies | ABT | https://www.nasdaq.com/articles/follow-warren-buffett-into-these-3-pharma-companies-2021-04-14 | nan | nan | Warren Buffett is regarded as one of the world's quintessential value investors. Following the teachings of his business school professor Benjamin Graham, Buffett has made a legendary career for himself by buying companies for less than what he sees as their true value. He recently made purchases of three large-cap pharmaceutical companies, AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Merck (NYSE:MRK). Let's explore the ways they offer a great opportunity for everyday investors, too.
Image source: Getty Images.
Picking up a fast grower
Spun off from Abbott Labs in 2013, AbbVie is one of the newer pharmaceutical companies on the market. However, the young company's management team wasted no time developing breakthrough drugs and driving sales to generate huge returns for shareholders. One of its more recent successes, Humira (for Crohn's disease), was the world's best-selling drug in 2020, with revenue of nearly $20 billion. This and several other leading products, including Skyrizi (for psoriasis) and Rinvoq (for rheumatoid arthritis), have helped drive AbbVie's stock price up nearly 228% since inception.
In today's market, overvaluation is the norm. But this stock proves that there are still bargains to be found. It generates tremendous cash flows and offers a 5% dividend yield to reward investors. Buffett likes buying undervalued equities, and at a price-to-earnings ratio of 8.55 (compared with its historical average of about 13), AbbVie is currently on sale. This stock satisfies investors with a variety of goals. Whether you want to beat the market or add extra dividend income, AbbVie is the stock to buy.
Bristol Myers Squibb's on sale
The 134-year-old Bristol Myers Squibb picked up a set of fresh legs starting with its late 2019 acquisition of Celgene, which has bolstered its pipeline of new drugs. As soon as that $74 billion acquisition had concluded, management announced they would be spending another $13.1 billion to buy MyoKardia . The market is pricing in a lot of downside for the stock because of the risks associated with paying off the debt that financed these acquisitions, but when we look at the long term, the benefits are likely to set Bristol Myers Squibb apart as a strong player in the healthcare space.
Bristol Myers Squibb has been beaten down lately, trading at a price-to-earnings ratio of 8.27 compared with a historical average of about 18. Current estimates for forward earnings per share are about $8 -- if we multiply that by 18, we can see the potential for about a $135 stock price from the current $63. I don't expect a return to fair valuation to happen overnight, but in the meantime, the stock offers a 3.17% dividend yield, and the recent dividend hike of 9.4% suggests that management is confident in generating more cash flow to disperse to shareholders.
Adding safety and security
Founded in 1668, Merck is one of the oldest pharmaceutical companies in the world. The small hiccup in the stock price that has put the stock on sale today should not be seen as a deterrent. Instead, it's a great opportunity for long-term investors to acquire the stock and watch its price rise. When you put money into a stock, you're buying part of a business -- and in Merck's case, that business is thriving. Cash flow looks great, with year-over-year earnings-per-share growth of 14.4% from 2019 to 2020. Sales growth for Keytruda (which treats cancer) and Gardasil (a vaccine against human papillomavirus) was 28% and 44%, respectively, in just the most recent quarter!
At its current forward price-to-earnings ratio of just 11.5, Merck trades at almost a 25% discount to its historical levels of about 16. If you take the latter figure and multiply it by the forward earnings estimate ($6.51), we are looking at a stock price of about $105 -- a 38% upside from here.
Three undervalued plays with little downside
When Warren Buffett invests in stocks, he looks at something called a margin of safety -- the difference between a company's current price and its average market valuation. Declining or stagnating stock prices can suggest to investors that something is wrong with a business, but it's also possible that the market has simply mispriced a stock, making for a great opportunity to pick up shares on the cheap.
All three of the companies above offer dividend yields higher than 3%, with AbbVie yielding near 5%, and all have been raising their dividends consistently and substantially. Investing for the long run takes patience; Buffett himself has been famously quoted saying "Nobody wants to get rich slowly." But his purchase of these three stocks is a classic example of playing the long game. And if Buffett can get rich that way, so can you.
10 stocks we like better than Merck & Co.
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Anirudh Shankar owns shares in AbbVie, Bristol-Myers Squibb, Merck, and Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, the young company's management team wasted no time developing breakthrough drugs and driving sales to generate huge returns for shareholders. The market is pricing in a lot of downside for the stock because of the risks associated with paying off the debt that financed these acquisitions, but when we look at the long term, the benefits are likely to set Bristol Myers Squibb apart as a strong player in the healthcare space. Three undervalued plays with little downside When Warren Buffett invests in stocks, he looks at something called a margin of safety -- the difference between a company's current price and its average market valuation. | He recently made purchases of three large-cap pharmaceutical companies, AbbVie (NYSE: ABBV), Bristol Myers Squibb (NYSE: BMY), and Merck (NYSE:MRK). Bristol Myers Squibb's on sale The 134-year-old Bristol Myers Squibb picked up a set of fresh legs starting with its late 2019 acquisition of Celgene, which has bolstered its pipeline of new drugs. I don't expect a return to fair valuation to happen overnight, but in the meantime, the stock offers a 3.17% dividend yield, and the recent dividend hike of 9.4% suggests that management is confident in generating more cash flow to disperse to shareholders. | Three undervalued plays with little downside When Warren Buffett invests in stocks, he looks at something called a margin of safety -- the difference between a company's current price and its average market valuation. Declining or stagnating stock prices can suggest to investors that something is wrong with a business, but it's also possible that the market has simply mispriced a stock, making for a great opportunity to pick up shares on the cheap. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Anirudh Shankar owns shares in AbbVie, Bristol-Myers Squibb, Merck, and Johnson & Johnson. | Adding safety and security Founded in 1668, Merck is one of the oldest pharmaceutical companies in the world. Three undervalued plays with little downside When Warren Buffett invests in stocks, he looks at something called a margin of safety -- the difference between a company's current price and its average market valuation. That's right -- they think these 10 stocks are even better buys. |
32185.0 | 2021-04-13 00:00:00 UTC | Abbott Laboratories (ABT) Ex-Dividend Date Scheduled for April 14, 2021 | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-ex-dividend-date-scheduled-for-april-14-2021-2021-04-13 | nan | nan | Abbott Laboratories (ABT) will begin trading ex-dividend on April 14, 2021. A cash dividend payment of $0.45 per share is scheduled to be paid on May 17, 2021. Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 25% increase over prior dividend payment. At the current stock price of $121.04, the dividend yield is 1.49%.
The previous trading day's last sale of ABT was $121.04, representing a -5.83% decrease from the 52 week high of $128.54 and a 44.92% increase over the 52 week low of $83.52.
ABT is a part of the Health Care sector, which includes companies such as Johnson & Johnson (JNJ) and Pfizer, Inc. (PFE). ABT's current earnings per share, an indicator of a company's profitability, is $2.5. Zacks Investment Research reports ABT's forecasted earnings growth in 2021 as 38.85%, compared to an industry average of 16.3%.
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 (IEHS)
Invesco Dynamic Pharmaceuticals ETF (PJP)
SPDR Select Sector Fund - Health Care (XLV)
iShares U.S. Healthcare ETF (IYH)
iShares U.S. Medical Devices ETF (IHI).
The top-performing ETF of this group is PJP with an increase of 15.86% over the last 100 days. IEHS has the highest percent weighting of ABT at 8.41%.
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 38.85%, compared to an industry average of 16.3%. For more information on the declaration, record and payment dates, visit the ABT Dividend History page. | ABT is a part of the Health Care sector, which includes companies such as Johnson & Johnson (JNJ) and Pfizer, Inc. (PFE). The following ETF(s) have ABT as a top-10 holding: iShares U.S. ETF Trust (IEHS) Invesco Dynamic Pharmaceuticals ETF (PJP) SPDR Select Sector Fund - Health Care (XLV) iShares U.S. Healthcare ETF (IYH) iShares U.S. Medical Devices ETF (IHI). Abbott Laboratories (ABT) will begin trading ex-dividend on April 14, 2021. | 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 (IEHS) Invesco Dynamic Pharmaceuticals ETF (PJP) SPDR Select Sector Fund - Health Care (XLV) iShares U.S. Healthcare ETF (IYH) iShares U.S. Medical Devices ETF (IHI). | 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 $2.5. Abbott Laboratories (ABT) will begin trading ex-dividend on April 14, 2021. |
32186.0 | 2021-04-10 00:00:00 UTC | Why Abbott Labs Will Make You Richer in April (and Beyond!) | ABT | https://www.nasdaq.com/articles/why-abbott-labs-will-make-you-richer-in-april-and-beyond-2021-04-10 | nan | nan | About a year ago, Abbott Laboratories (NYSE: ABT) made a decision that would prove transformative. The company entered the coronavirus testing market -- and in a big way. The U.S. Food and Drug Administration (FDA) granted Abbott a first Emergency Use Authorization (EUA) in March 2020. But Abbott didn't stop there. Abbott created various types of COVID-19 diagnostics -- and the EUAs multiplied. Today, Abbott has at least nine.
At the same time, though, Abbott's other diagnostics and medical devices suffered. That's because hospitals postponed procedures to focus on coronavirus patients. Still, Abbott managed to deliver strong 2020 earnings -- and predict a bright future. Let's take a closer look at how all of these elements will work to make shareholders richer this month and beyond.
Image source: Getty Images.
A game-changing test
First, let's talk about coronavirus testing. Abbott launched a game-changing product back in August: the BinaxNOW. This is a 15-minute, $5 portable test for professional use. The U.S. bought 150 million of these tests to be used in schools, nursing homes, and underserved communities. There could be more such orders in the future; President Joe Biden has made increased coronavirus testing one of his main goals. The federal government said it would invest more than $12 billion in the effort.
And late last month, the market for BinaxNOW broadened. The FDA granted Abbott an EUA for an over-the-counter BinaxNOW self-test. This means asymptomatic individuals can buy the test at their local pharmacy without a prescription and test themselves at home. Adults can also use the test on kids as young as age two. And no worries -- the nasal swab is minimally invasive.
Abbott has made sure it can deliver as demand increases. The company has ramped up to produce 50 million BinaxNOW tests each month.
So how does all of this translate into revenue? We've got some clues from the most recent earnings report. In the fourth quarter, which ended Dec. 31, Abbott's coronavirus tests generated a total of $2.4 billion in revenue. The BinaxNOW and two of Abbott's other rapid coronavirus tests contributed $1.9 billion. That was BinaxNOW's first quarter on the market. Due to the government's initiatives to test more and the BinaxNOW's new self-testing indication, I expect revenue to climb higher in the coming quarters.
The problem areas
Now, let's look at last year's problem areas: certain non-coronavirus diagnostics and medical-device sales. Of course, the pandemic isn't over. But in the U.S., the crisis is easing as states vaccinate more and more people. Cases have generally been on the decline since a January peak. So, we can expect hospitals and healthcare settings to start catching up on previously postponed procedures and tests. And this will benefit Abbott's diagnostics and medical-device businesses.
But I'm not the only one who is optimistic. Abbott's management is, too: The company predicts 2021 earnings per share will climb more than 35% year over year to $5.
Abbott's shares aren't expensive considering growth potential. The stock is trading at 24 times forward earnings estimates. It's traded higher than that for most of the past year:
ABT PE Ratio (Forward) data by YCharts.
This is a great buying opportunity for a stock that has delivered over time. Abbott shares have climbed more than 100% over the past three years. And annual profit and revenue have increased over that time period, too:
ABT data by YCharts.
Abbott reports first-quarter earnings on April 20. Optimism that we'll see growth in coronavirus testing and recovery in areas that suffered last year are already driving the stock higher; Abbott shares are up more than 9% year to date.
Here's the thing: Abbott may offer you positive returns in just a month or two. But this healthcare stock will make you even richer if you hold on for the long term.
10 stocks we like better than Abbott Laboratories
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | About a year ago, Abbott Laboratories (NYSE: ABT) made a decision that would prove transformative. It's traded higher than that for most of the past year: ABT PE Ratio (Forward) data by YCharts. And annual profit and revenue have increased over that time period, too: ABT data by YCharts. | It's traded higher than that for most of the past year: ABT PE Ratio (Forward) data by YCharts. About a year ago, Abbott Laboratories (NYSE: ABT) made a decision that would prove transformative. And annual profit and revenue have increased over that time period, too: ABT data by YCharts. | About a year ago, Abbott Laboratories (NYSE: ABT) made a decision that would prove transformative. It's traded higher than that for most of the past year: ABT PE Ratio (Forward) data by YCharts. And annual profit and revenue have increased over that time period, too: ABT data by YCharts. | About a year ago, Abbott Laboratories (NYSE: ABT) made a decision that would prove transformative. It's traded higher than that for most of the past year: ABT PE Ratio (Forward) data by YCharts. And annual profit and revenue have increased over that time period, too: ABT data by YCharts. |
32187.0 | 2021-04-10 00:00:00 UTC | 1 Healthcare ETF Proven to Strengthen Your Portfolio | ABT | https://www.nasdaq.com/articles/1-healthcare-etf-proven-to-strengthen-your-portfolio-2021-04-10-0 | nan | nan | In horse racing, to bet the field means to place a single bet on all of the entrants as one, not including the horse with the best odds to win. But in investing, if you're using odds in your analysis, then you might be breaking one of the primary ground rules: Do not confuse investing with gambling.
But if you enjoy betting the field to minimize the risk of investing in the healthcare sector by predicting a single winner, then this ETF may be just what you're looking for. BlackRock's iShares U.S. Medical Devices ETF (NYSEMKT: IHI) not only gives you access to the field, you also get the so-called favorite, whichever that might be, in a massive healthcare market. For investors just testing the waters of healthcare, is this ETF the way to go?
Image source: Getty Images.
Core strength
The medical technology market is rapidly growing, with medical breakthroughs happening all the time. In order to keep up, companies are innovating and developing devices that monitor, analyze, solve problems, and provide robotic assistance in healthcare to help minimize injury risk, as well as to rebuild the body via procedures such as joint replacement. Many of the companies leading the way are top holdings in this iShares ETF.
Healthcare is a crowded and competitive field, but each company is aiming to be a leader and provide advancements in niche areas of medical technology, and to expand its reach to better improve healthcare overall. You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. It also includes companies that focus on life sciences, to include Boston Scientific and Danaher. All five of these individual companies are found in the top holdings of the Medical Devices ETF, as well as in the top U.S.-based companies for estimated revenue market share in 2024, per Statista. Not only does the ETF focus on medical technologies to improve human health, it also holds a decent 3% of total asset weight in IDEXX Laboratories (NASDAQ: IDXX) which interestingly, among other services, offers specialized equine testing and expertise in detecting serious diseases affecting horses and common pets. In fact, IDEXX has been an excellent performer for years, growing at a rapid pace with a stock price rocketing from $70 in 2016 to almost $500 in five short years.
History of performance
Despite the many challenges facing healthcare during 2020, the ETF continued on an upward trend in the first quarter of 2021, coming in with a 47% one-year return, and beating the S&P Composite 1500 Healthcare by about 11%. It has also paid out a cash dividend in 18 of the past 20 quarters, including all of 2020 and the first quarter of 2021. One downside of the ETF investment is that you take a hit on potential maximum dividends due to a low current dividend yield of 0.24%. By contrast, the average dividend yield of Abbott Labs, Medtronic, and Stryker comes in at 1.37%, with all three coming in higher than the iShares ETF on an individual basis.
TIME PERIOD ISHARES U.S. MEDICAL DEVICES ETF RETURN AS OF MARCH 31 BENCHMARK INDEX (SPDR 1500 HEALTHCARE) AS OF MARCH 31
1 Year 47.01% 35.94%
3 Years 21.68% 15.35%
5 Years 22.39% 14.12%
10 Years 18.39% 15.82%
Life 13.99% 12.46%
Data source: Fidelity.com.
Hidden strength
There are tons of new companies attempting to enter the medical device market. In 2020 alone, there were 45 start-ups in the medical devices space that received over $100 million in funding. Most of us don't have the time to research every start-up to find the next Medtronic or Intuitive Surgical. One benefit of investing in the iShares ETF is that you've got an ETF manager keeping an eye on that for you, and actively taking actions to adjust holdings for optimized returns. If just one or a handful of new companies finally hits their payday with the next big breakthrough device and an ensuing IPO, rejoice. The ETF manager is likely to add that asset to its holdings, which means your investment in the field just gained a new contender.
On the flip side, investing in an ETF can also provide some risk of its own in the way of uncontrolled investments which you may not agree with. The ETF manager may decide that an upcoming IPO is worth a large spot in the portfolio holdings. Suddenly, you're indirectly investing in a stock that your personal research has led you to avoid. The problem is, the purchase is usually already made before you see it in an updated holdings list. For example, the next time you see the list you notice a brand new ticker from a recent IPO is now 4% of holdings, and that one of your previous favorites from the list has suddenly been trimmed by 4%. You may not be thrilled at the sight of this change.
The future is now
In this age of artificial intelligence, autonomous vehicles, and general automation replacing manual operation, medical technology will undoubtedly continue to expand and grow. With natural human physical and social evolution there is an ongoing need for innovation and development in the healthcare industry, specifically for MedTech. An investment in a single company can provide you with a level of risk and reward that you might be ok with, but depending on your investor profile, an investment in the iShares Medical Devices ETF may provide you that same level of reward or greater, with minimized risk.
10 stocks we like better than iShares Dow Jones US Medical Dev.
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Jeff Little owns shares of iShares U.S. Medical Devices ETF. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580.0 calls on Intuitive Surgical and short January 2022 $600.0 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. | In order to keep up, companies are innovating and developing devices that monitor, analyze, solve problems, and provide robotic assistance in healthcare to help minimize injury risk, as well as to rebuild the body via procedures such as joint replacement. Not only does the ETF focus on medical technologies to improve human health, it also holds a decent 3% of total asset weight in IDEXX Laboratories (NASDAQ: IDXX) which interestingly, among other services, offers specialized equine testing and expertise in detecting serious diseases affecting horses and common pets. The future is now In this age of artificial intelligence, autonomous vehicles, and general automation replacing manual operation, medical technology will undoubtedly continue to expand and grow. | You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580.0 calls on Intuitive Surgical and short January 2022 $600.0 calls on Intuitive Surgical. | All five of these individual companies are found in the top holdings of the Medical Devices ETF, as well as in the top U.S.-based companies for estimated revenue market share in 2024, per Statista. An investment in a single company can provide you with a level of risk and reward that you might be ok with, but depending on your investor profile, an investment in the iShares Medical Devices ETF may provide you that same level of reward or greater, with minimized risk. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Jeff Little owns shares of iShares U.S. Medical Devices ETF. | You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. Most of us don't have the time to research every start-up to find the next Medtronic or Intuitive Surgical. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. |
32188.0 | 2021-04-10 00:00:00 UTC | 1 Healthcare ETF Proven To Strengthen Your Portfolio | ABT | https://www.nasdaq.com/articles/1-healthcare-etf-proven-to-strengthen-your-portfolio-2021-04-10 | nan | nan | In horse racing, to bet the field means to place a single bet on all of the entrants as one, not including the horse with the best odds to win. But in investing, if you're using odds in your analysis, then you might be breaking one of the primary ground rules: Do not confuse investing with gambling.
But if you enjoy betting the field to minimize the risk of investing in the healthcare sector by predicting a single winner, then this ETF may be just what you're looking for. BlackRock's iShares U.S. Medical Devices ETF (NYSEMKT: IHI) not only gives you access to the field, you also get the so-called favorite, whichever that might be, in a massive healthcare market. For investors just testing the waters of healthcare, is this ETF the way to go?
Image source: Getty Images
Core strength
The medical technology market is rapidly growing, with medical breakthroughs happening all the time. In order to keep up, companies are innovating and developing devices that monitor, analyze, solve problems, and provide robotic assistance in healthcare to help minimize injury risk, as well as to rebuild the body via procedures such as joint replacement. Many of the companies leading the way are top holdings in this iShares ETF.
Healthcare is a crowded and competitive field, but each company is aiming to be a leader and provide advancements in niche areas of medical technology, and to expand its reach to better improve healthcare overall. You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. It also includes companies that focus on life sciences, to include Boston Scientific and Danaher. All five of these individual companies are found in the top holdings of the Medical Devices ETF, as well as in the top U.S. based companies for estimated revenue market share in 2024, per Statista. Not only does the ETF focus on medical technologies to improve human health, it also holds a decent 3% of total asset weight in IDEXX Laboratories (NASDAQ: IDXX) which interestingly, among other services, offers specialized equine testing and expertise in detecting serious diseases affecting horses and common pets. In fact, IDEXX has been an excellent performer for years, growing at a rapid pace with a stock price rocketing from $70 in 2016 to almost $500 in five short years.
History of performance
Despite the many challenges facing healthcare during 2020, the ETF continued on an upward trend in the first quarter of 2021, coming in with a 47% one year return, and beating the S&P Composite 1500 Healthcare by about 11%. It has also paid out a cash dividend in 18 of the past 20 quarters, including all of 2020 and the first quarter of 2021. One downside of the ETF investment is that you take a hit on potential maximum dividends due to a low current dividend yield of 0.24%. By contrast, the average dividend yield of Abbott Labs, Medtronic, and Stryker comes in at 1.37%, with all three coming in higher than the iShares ETF on an individual basis.
ISHARES U.S. MEDICAL DEVICES ETF RETURN AS OF MARCH 31 BENCHMARK INDEX (SPDR 1500 HEALTHCARE) AS OF MARCH 31
1 Year 47.01% 35.94%
3 Year 21.68% 15.35%
5 Year 22.39% 14.12%
10 Year 18.39% 15.82%
Life 13.99% 12.46%
Data source: Fidelity.com
Hidden strength
There are tons of new companies attempting to enter the medical device market. In 2020 alone, there were 45 start-ups in the medical devices space that received over $100 million in funding. Most of us don't have the time to research every start-up to find the next Medtronic or Intuitive Surgical. One benefit of investing in the iShares ETF is that you've got an ETF manager keeping an eye on that for you, and actively taking actions to adjust holdings for optimized returns. If just one or a handful of new companies finally hits their payday with the next big breakthrough device and an ensuing IPO, rejoice. The ETF manager is likely to add that asset to its holdings, which means your investment in the field just gained a new contender.
On the flip side, investing in an ETF can also provide some risk of its own in the way of uncontrolled investments which you may not agree with. The ETF manager may decide that an upcoming IPO is worth a large spot in the portfolio holdings. Suddenly, you're indirectly investing in a stock that your personal research has led you to avoid. The problem is, the purchase is usually already made before you see it in an updated holdings list. For example, the next time you see the list you notice a brand new ticker from a recent IPO is now 4% of holdings and that one of your previous favorites from the list has suddenly been trimmed by 4%. You may not be thrilled at the sight of this change.
The future is now
In this age of artificial intelligence, autonomous vehicles, and general automation replacing manual operation, medical technology will undoubtedly continue to expand and grow. With natural human physical and social evolution there is an ongoing need for innovation and development in the healthcare industry, specifically for MedTech. An investment in a single company can provide you with a level of risk and reward that you might be ok with, but depending on your investor profile, an investment in the iShares Medical Devices ETF may provide you that same level of reward or greater, with minimized risk.
10 stocks we like better than iShares Dow Jones US Medical Dev.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and iShares Dow Jones US Medical Dev. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Jeff Little owns shares of iShares U.S. Medical Devices ETF. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. The Motley Fool recommends the following options: long January 2022 $580.0 calls on Intuitive Surgical and short January 2022 $600.0 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. | In order to keep up, companies are innovating and developing devices that monitor, analyze, solve problems, and provide robotic assistance in healthcare to help minimize injury risk, as well as to rebuild the body via procedures such as joint replacement. Not only does the ETF focus on medical technologies to improve human health, it also holds a decent 3% of total asset weight in IDEXX Laboratories (NASDAQ: IDXX) which interestingly, among other services, offers specialized equine testing and expertise in detecting serious diseases affecting horses and common pets. The future is now In this age of artificial intelligence, autonomous vehicles, and general automation replacing manual operation, medical technology will undoubtedly continue to expand and grow. | Image source: Getty Images Core strength The medical technology market is rapidly growing, with medical breakthroughs happening all the time. You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. | All five of these individual companies are found in the top holdings of the Medical Devices ETF, as well as in the top U.S. based companies for estimated revenue market share in 2024, per Statista. An investment in a single company can provide you with a level of risk and reward that you might be ok with, but depending on your investor profile, an investment in the iShares Medical Devices ETF may provide you that same level of reward or greater, with minimized risk. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Jeff Little owns shares of iShares U.S. Medical Devices ETF. | You have the likes of market leading medical device companies such as Medtronic, Abbott Laboratories, and Stryker. Most of us don't have the time to research every start-up to find the next Medtronic or Intuitive Surgical. The Motley Fool owns shares of and recommends Idexx Laboratories and Intuitive Surgical. |
32189.0 | 2021-04-09 00:00:00 UTC | Abbott Laboratories (NYSE:ABT) Goes Ex-Dividend Soon | ABT | https://www.nasdaq.com/articles/abbott-laboratories-nyse%3Aabt-goes-ex-dividend-soon-2021-04-09 | nan | nan | It looks like Abbott Laboratories (NYSE:ABT) is about to go ex-dividend in the next 4 days. Ex-dividend means that investors that purchase the stock on or after the 14th of April will not receive this dividend, which will be paid on the 17th of May.
Abbott Laboratories's next dividend payment will be US$0.45 per share. Last year, in total, the company distributed US$1.80 to shareholders. Calculating the last year's worth of payments shows that Abbott Laboratories has a trailing yield of 1.5% on the current share price of $119.78. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Abbott Laboratories can afford its dividend, and if the dividend could grow.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Abbott Laboratories paid out more than half (61%) of its earnings last year, which is a regular payout ratio for most companies. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It distributed 45% of its free cash flow as dividends, a comfortable payout level for most companies.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABT Historic Dividend April 9th 2021
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Abbott Laboratories earnings per share are up 7.7% per annum over the last five years. Decent historical earnings per share growth suggests Abbott Laboratories has been effectively growing value for shareholders. However, it's now paying out more than half its earnings as dividends. Therefore it's unlikely that the company will be able to reinvest heavily in its business, which could presage slower growth in the future.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Abbott Laboratories dividends are largely the same as they were 10 years ago.
The Bottom Line
Is Abbott Laboratories worth buying for its dividend? While earnings per share growth has been modest, Abbott Laboratories's dividend payouts are around an average level; without a sharp change in earnings we feel that the dividend is likely somewhat sustainable. Pleasingly the company paid out a conservatively low percentage of its free cash flow. To summarise, Abbott Laboratories looks okay on this analysis, although it doesn't appear a stand-out opportunity.
So while Abbott Laboratories looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Case in point: We've spotted 3 warning signs for Abbott Laboratories you should be aware of.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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. | It looks like Abbott Laboratories (NYSE:ABT) is about to go ex-dividend in the next 4 days. NYSE:ABT Historic Dividend April 9th 2021 Have Earnings And Dividends Been Growing? Calculating the last year's worth of payments shows that Abbott Laboratories has a trailing yield of 1.5% on the current share price of $119.78. | NYSE:ABT Historic Dividend April 9th 2021 Have Earnings And Dividends Been Growing? It looks like Abbott Laboratories (NYSE:ABT) is about to go ex-dividend in the next 4 days. Decent historical earnings per share growth suggests Abbott Laboratories has been effectively growing value for shareholders. | It looks like Abbott Laboratories (NYSE:ABT) is about to go ex-dividend in the next 4 days. NYSE:ABT Historic Dividend April 9th 2021 Have Earnings And Dividends Been Growing? So we need to investigate whether Abbott Laboratories can afford its dividend, and if the dividend could grow. | It looks like Abbott Laboratories (NYSE:ABT) is about to go ex-dividend in the next 4 days. NYSE:ABT Historic Dividend April 9th 2021 Have Earnings And Dividends Been Growing? Abbott Laboratories's next dividend payment will be US$0.45 per share. |
32190.0 | 2021-04-08 00:00:00 UTC | Abbott Gets CE Mark Approval For Next-Generation TriClip Device - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-gets-ce-mark-approval-for-next-generation-triclip-device-quick-facts-2021-04-08 | nan | nan | (RTTNews) - Abbott (ABT) has received CE Mark for its next-generation TriClip Transcatheter Tricuspid Valve Repair System, the minimally invasive tricuspid heart valve repair device available in Europe to treat tricuspid regurgitation. The clip-based therapy, known as TriClip G4, is a non-surgical heart valve repair option specifically designed for the treatment of tricuspid regurgitation. TriClip G4 also recently received Health Canada approval.
The company noted that TriClip and TriClip G4 Transcatheter Tricuspid Valve Repair Systems are approved for investigational use only in the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) has received CE Mark for its next-generation TriClip Transcatheter Tricuspid Valve Repair System, the minimally invasive tricuspid heart valve repair device available in Europe to treat tricuspid regurgitation. The clip-based therapy, known as TriClip G4, is a non-surgical heart valve repair option specifically designed for the treatment of tricuspid regurgitation. TriClip G4 also recently received Health Canada approval. | (RTTNews) - Abbott (ABT) has received CE Mark for its next-generation TriClip Transcatheter Tricuspid Valve Repair System, the minimally invasive tricuspid heart valve repair device available in Europe to treat tricuspid regurgitation. The clip-based therapy, known as TriClip G4, is a non-surgical heart valve repair option specifically designed for the treatment of tricuspid regurgitation. The company noted that TriClip and TriClip G4 Transcatheter Tricuspid Valve Repair Systems are approved for investigational use only in the U.S. | (RTTNews) - Abbott (ABT) has received CE Mark for its next-generation TriClip Transcatheter Tricuspid Valve Repair System, the minimally invasive tricuspid heart valve repair device available in Europe to treat tricuspid regurgitation. The company noted that TriClip and TriClip G4 Transcatheter Tricuspid Valve Repair Systems are approved for investigational use only in the U.S. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) has received CE Mark for its next-generation TriClip Transcatheter Tricuspid Valve Repair System, the minimally invasive tricuspid heart valve repair device available in Europe to treat tricuspid regurgitation. TriClip G4 also recently received Health Canada approval. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32191.0 | 2021-04-06 00:00:00 UTC | Abbott: XIENCE Stent Gets CE Mark In Europe For Shorter Duration Of Dual Anti-platelet Therapy | ABT | https://www.nasdaq.com/articles/abbott%3A-xience-stent-gets-ce-mark-in-europe-for-shorter-duration-of-dual-anti-platelet | nan | nan | (RTTNews) - Abbott (ABT) said its XIENCE stent has received CE Mark in Europe for shorter duration of dual anti-platelet therapy - as short as 28 days for patients with high bleeding risk. The company noted that XIENCE is the only stent to have evidence and data for both one-month and three-months dual anti-platelet therapy followed by two different types of blood-thinning medication in HBR patients.
"In patients with high bleeding risk, the XIENCE stent has proven that it can ensure patient safety without compromising efficacy when duration of blood-thinning medications is shortened," said Nick West, chief medical officer and divisional vice president of global medical affairs at Abbott's vascular business.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said its XIENCE stent has received CE Mark in Europe for shorter duration of dual anti-platelet therapy - as short as 28 days for patients with high bleeding risk. The company noted that XIENCE is the only stent to have evidence and data for both one-month and three-months dual anti-platelet therapy followed by two different types of blood-thinning medication in HBR patients. "In patients with high bleeding risk, the XIENCE stent has proven that it can ensure patient safety without compromising efficacy when duration of blood-thinning medications is shortened," said Nick West, chief medical officer and divisional vice president of global medical affairs at Abbott's vascular business. | (RTTNews) - Abbott (ABT) said its XIENCE stent has received CE Mark in Europe for shorter duration of dual anti-platelet therapy - as short as 28 days for patients with high bleeding risk. The company noted that XIENCE is the only stent to have evidence and data for both one-month and three-months dual anti-platelet therapy followed by two different types of blood-thinning medication in HBR patients. "In patients with high bleeding risk, the XIENCE stent has proven that it can ensure patient safety without compromising efficacy when duration of blood-thinning medications is shortened," said Nick West, chief medical officer and divisional vice president of global medical affairs at Abbott's vascular business. | (RTTNews) - Abbott (ABT) said its XIENCE stent has received CE Mark in Europe for shorter duration of dual anti-platelet therapy - as short as 28 days for patients with high bleeding risk. "In patients with high bleeding risk, the XIENCE stent has proven that it can ensure patient safety without compromising efficacy when duration of blood-thinning medications is shortened," said Nick West, chief medical officer and divisional vice president of global medical affairs at Abbott's vascular business. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said its XIENCE stent has received CE Mark in Europe for shorter duration of dual anti-platelet therapy - as short as 28 days for patients with high bleeding risk. The company noted that XIENCE is the only stent to have evidence and data for both one-month and three-months dual anti-platelet therapy followed by two different types of blood-thinning medication in HBR patients. "In patients with high bleeding risk, the XIENCE stent has proven that it can ensure patient safety without compromising efficacy when duration of blood-thinning medications is shortened," said Nick West, chief medical officer and divisional vice president of global medical affairs at Abbott's vascular business. |
32192.0 | 2021-04-06 00:00:00 UTC | Despite A 2X Rise Over The Last Year Abbott Stock Still Looks Attractive At $120 | ABT | https://www.nasdaq.com/articles/despite-a-2x-rise-over-the-last-year-abbott-stock-still-looks-attractive-at-%24120-2021-04 | nan | nan | Abbott Labs (NYSE: ABT) looks attractive at current levels of $120, despite the stock rising 2x from levels of $62 it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. This marks an outperformance compared to the S&P which has moved 78% since its March 2020 lows, with the resumption of economic activities as lockdowns are gradually lifted and vaccination programs have been initiated in multiple countries. This outperformance can primarily be attributed to a very high demand for Covid-19 testing that has aided Abbott’s sales growth over the recent quarters. As we look forward, the testing volume is likely to remain high in 2021, but drop thereafter as more people are vaccinated. While the company’s diagnostics business has seen a surge in demand due to Covid-19 testing, its other businesses, including medical device sales, were adversely impacted due to deferment of elective surgeries in the first half of 2020. Now that vaccination will help fight the virus, it also means that there will be an increase in hospital visits and volume of elective surgeries, boding well for Abbott’s top-line expansion, and its stock growth. Looking at a longer time period, ABT stock is up 66% from levels seen toward the end of 2018.
Abbott’s robust fundamentals justify the stock price appreciation over the recent years. The company’s revenues of $34.6 billion in 2020 reflect a 13% growth over the $30.6 billion figure seen in 2018. This can largely be attributed to a 44% jump in Diagnostics segment revenues to $10.8 billion in 2020, accounting for roughly one-third of the company’s total revenues. Not only did Abbott post revenue growth, it also managed to expand its net margins from 7.7% in 2018 to 13.0% in 2020. This resulted in a 90% change in the company’s Net Income from $2.4 billion to $4.5 billion over the same period. Abbott’s total shares remained around the 1.8 billion mark, resulting in 88% growth in earnings to $2.52 in 2020 compared to $1.34 in 2018 on a per share basis. Despite robust fundamentals, Abbott’s P/E multiple has contracted, and we believe it will likely expand going forward. Our dashboard, ‘What Factors Drove 66% Change In Abbott Stock between 2018 and now?‘, has the underlying numbers.
Abbott’s P/E multiple contracted from 54x in 2018 to 44x in 2020 based on trailing GAAP EPS. While the company’s P/E is at 48x now, it can see an expansion in the near term, led by steady earnings growth. We discuss more in the section below.
So what’s the likely trigger and timing for upside?
While Abbott’s diagnostics business was the key growth driver in 2020 and it will likely be in 2021, we expect that role to be played by the medical devices business over the coming years. The company has been focused on innovation for advancement of devices. For instance, its FreeStyle Libre series is a pathbreaking product, completely avoiding the need of finger prick for monitoring glucose levels, while BinaxNOW, which gives Covid-19 test results in 15 minutes, has been very helpful in coronavirus testing. FreeStyle Libre 2, measures glucose levels every minute and its life of 14 days is much longer than other devices in the market. Both of these products – BinaxNOW and FreeStyle Libre 2 – were named in 2021 BIG Innovation Awards.
With continued focus on innovation, and its diverse set of businesses, which includes medical devices, diagnostics, established pharmaceuticals, and nutritional products, the company is expected to see a steady top-line expansion in the long run. Furthermore, the company’s expansion of margins will bolster its bottom-line as well. It’s not that just the GAAP margins have seen an improvement. Even if we look at the non-GAAP net margins of 18.9% in 2020, it reflects a 215 bps expansion from the 16.8% figure seen in 2018.
Looking ahead, Abbott will likely see an increase in medical devices sales, as the Covid-19 crisis winds down. That said, any further recovery in the economy and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia.
Finally, looking at valuation, at the current price of $120, ABT stock is trading at 24x its estimated adjusted EPS of $5.05 in 2021, and this is largely in line with levels of 24x seen in 2019 and 22x seen in 2018. Also, ABT stock is trading at a lower multiple over its peers – Medtronic and Boston Scientific. Abbott’s 24x P/E multiple based on forward earnings compares with 27x for Medtronic and 25x for Boston Scientific. While we notice that the difference isn’t large, what is worth noting is that Abbott has cruised through a challenging period of 2020 with a revenue growth of 8%, while Boston Scientific posted an 8% drop in revenues and Medtronic sales are down 3% over the last twelve-month period. Now, given the strong earnings growth expected over the coming years from Abbott, we believe the company’s P/E multiple will also expand, resulting in appreciation of ABT stock.
While ABT 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 UnitedHealth vs Ingevity.
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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 Labs (NYSE: ABT) looks attractive at current levels of $120, despite the stock rising 2x from levels of $62 it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. Looking at a longer time period, ABT stock is up 66% from levels seen toward the end of 2018. Finally, looking at valuation, at the current price of $120, ABT stock is trading at 24x its estimated adjusted EPS of $5.05 in 2021, and this is largely in line with levels of 24x seen in 2019 and 22x seen in 2018. | Now, given the strong earnings growth expected over the coming years from Abbott, we believe the company’s P/E multiple will also expand, resulting in appreciation of ABT stock. Abbott Labs (NYSE: ABT) looks attractive at current levels of $120, despite the stock rising 2x from levels of $62 it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. Looking at a longer time period, ABT stock is up 66% from levels seen toward the end of 2018. | Abbott Labs (NYSE: ABT) looks attractive at current levels of $120, despite the stock rising 2x from levels of $62 it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. Now, given the strong earnings growth expected over the coming years from Abbott, we believe the company’s P/E multiple will also expand, resulting in appreciation of ABT stock. Looking at a longer time period, ABT stock is up 66% from levels seen toward the end of 2018. | Looking at a longer time period, ABT stock is up 66% from levels seen toward the end of 2018. Finally, looking at valuation, at the current price of $120, ABT stock is trading at 24x its estimated adjusted EPS of $5.05 in 2021, and this is largely in line with levels of 24x seen in 2019 and 22x seen in 2018. Abbott Labs (NYSE: ABT) looks attractive at current levels of $120, despite the stock rising 2x from levels of $62 it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. |
32193.0 | 2021-04-05 00:00:00 UTC | Noteworthy ETF Outflows: XLV, ABT, MDT, LLY | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlv-abt-mdt-lly-2021-04-05 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $454.0 million dollar outflow -- that's a 1.8% decrease week over week (from 214,720,000 to 210,820,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and Lilly (Eli) & Co (Symbol: LLY) is relatively unchanged. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $89.14 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $117.11. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and Lilly (Eli) & Co (Symbol: LLY) 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 The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $454.0 million dollar outflow -- that's a 1.8% decrease week over week (from 214,720,000 to 210,820,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and Lilly (Eli) & Co (Symbol: LLY) is relatively unchanged. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $89.14 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $117.11. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and Lilly (Eli) & Co (Symbol: LLY) 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 The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $454.0 million dollar outflow -- that's a 1.8% decrease week over week (from 214,720,000 to 210,820,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $89.14 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $117.11. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.5%, and Lilly (Eli) & Co (Symbol: LLY) 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 The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $454.0 million dollar outflow -- that's a 1.8% decrease week over week (from 214,720,000 to 210,820,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $89.14 per share, with $118.9856 as the 52 week high point — that compares with a last trade of $117.11. |
32194.0 | 2021-04-01 00:00:00 UTC | Abbott’s BinaxNOW COVID-19 Ag Self Test Cleared For Emergency Use In US | ABT | https://www.nasdaq.com/articles/abbotts-binaxnow-covid-19-ag-self-test-cleared-for-emergency-use-in-us-2021-04-01 | nan | nan | Abbott’s BinaxNOW COVID-19 Ag Self Test, which was designed to detect COVID-19 infection, has been authorized for emergency use by the US Food and Drug Administration (FDA). The approval permits over-the-counter, non-prescription, and asymptomatic use of the test for individuals with or without symptoms.
Abbott (ABT) expects the shipping of the tests to major food, drug and mass merchandiser retailers to begin in the coming weeks and the test to be accessible through some of their online store websites at a reasonable price.
The test can be performed on children as young as two years old. Notably, the test will come in a two-count box in order to meet serial (frequent) testing requirements.
The BinaxNOW professional test was launched nationwide in Aug. 2020 and Abbott increased the production at its new US manufacturing facilities to produce 50 million tests per month. Notably, the US Department of Health and Human Services (HHS) bought the company’s first 150 million tests, and sent them to K-12 schools, nursing homes, historically black colleges and universities, and underserved communities, to help in preventing the virus from spreading.
After receiving approval, BinaxNOW has also been used by workplaces, K-12 schools and universities, and other organizations all over the country, the company said.
Abbott CEO Robert B. Ford said, “We’ve now accomplished what we set out to do when we launched BinaxNOW, which is to bring an accurate, affordable and readily available test to the American people that they can have on hand, whether they want to test frequently or in certain circumstances.” (See Abbott stock analysis on TipRanks)
“Together with vaccines, the BinaxNOW Self Test will help Americans get back to doing what they want and need to do – like going to work and school or seeing friends and family – with greater confidence,” Ford added.
On March 11, Raymond James analyst Jayson Bedford increased the stock’s price target to $130 (8.5% upside potential) from $126 and reiterated a Buy rating.
According to Bedford, “ABT has paused on concerns around 1) the slowdown in CV-testing and 2) their perceived ability to drive double-digit EPS growth in 2022.”
“We are comfortable with these concerns, and believe this dynamic is more than accounted for in the valuation, which, on a relative basis, is as attractive as it has been in three years,” the analyst added.
The consensus rating among analysts is a Strong Buy based on 9 Buys versus 1 Hold. The average analyst price target stands at $134.89 and implies upside potential of 12.6% to current levels over the next 12 months. Shares have gained 56.5% over the past year.
What’s more, Abbott scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) expects the shipping of the tests to major food, drug and mass merchandiser retailers to begin in the coming weeks and the test to be accessible through some of their online store websites at a reasonable price. According to Bedford, “ABT has paused on concerns around 1) the slowdown in CV-testing and 2) their perceived ability to drive double-digit EPS growth in 2022.” “We are comfortable with these concerns, and believe this dynamic is more than accounted for in the valuation, which, on a relative basis, is as attractive as it has been in three years,” the analyst added. Notably, the US Department of Health and Human Services (HHS) bought the company’s first 150 million tests, and sent them to K-12 schools, nursing homes, historically black colleges and universities, and underserved communities, to help in preventing the virus from spreading. | Abbott (ABT) expects the shipping of the tests to major food, drug and mass merchandiser retailers to begin in the coming weeks and the test to be accessible through some of their online store websites at a reasonable price. According to Bedford, “ABT has paused on concerns around 1) the slowdown in CV-testing and 2) their perceived ability to drive double-digit EPS growth in 2022.” “We are comfortable with these concerns, and believe this dynamic is more than accounted for in the valuation, which, on a relative basis, is as attractive as it has been in three years,” the analyst added. On March 11, Raymond James analyst Jayson Bedford increased the stock’s price target to $130 (8.5% upside potential) from $126 and reiterated a Buy rating. | Abbott (ABT) expects the shipping of the tests to major food, drug and mass merchandiser retailers to begin in the coming weeks and the test to be accessible through some of their online store websites at a reasonable price. According to Bedford, “ABT has paused on concerns around 1) the slowdown in CV-testing and 2) their perceived ability to drive double-digit EPS growth in 2022.” “We are comfortable with these concerns, and believe this dynamic is more than accounted for in the valuation, which, on a relative basis, is as attractive as it has been in three years,” the analyst added. The BinaxNOW professional test was launched nationwide in Aug. 2020 and Abbott increased the production at its new US manufacturing facilities to produce 50 million tests per month. | Abbott (ABT) expects the shipping of the tests to major food, drug and mass merchandiser retailers to begin in the coming weeks and the test to be accessible through some of their online store websites at a reasonable price. According to Bedford, “ABT has paused on concerns around 1) the slowdown in CV-testing and 2) their perceived ability to drive double-digit EPS growth in 2022.” “We are comfortable with these concerns, and believe this dynamic is more than accounted for in the valuation, which, on a relative basis, is as attractive as it has been in three years,” the analyst added. Abbott’s BinaxNOW COVID-19 Ag Self Test, which was designed to detect COVID-19 infection, has been authorized for emergency use by the US Food and Drug Administration (FDA). |
32195.0 | 2021-03-31 00:00:00 UTC | Abbott's BinaxNOW COVID-19 Ag Self Test Receives FDA EUA To Detect COVID-19 Infection | ABT | https://www.nasdaq.com/articles/abbotts-binaxnow-covid-19-ag-self-test-receives-fda-eua-to-detect-covid-19-infection-2021 | nan | nan | (RTTNews) - Abbott (ABT) said Wednesday that it has received U.S. Food and Drug Administration Emergency Use Authorization for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection.
The new indication allows individuals with or without symptoms to have access to the test without a prescription.
The BinaxNOW Self Test is the same technology as the existing BinaxNOW test that has been available since August 2020 but is indicated by the FDA for serial asymptomatic testing, meaning that people should test themselves frequently.
Abbot said it will begin shipping to major food, drug and mass merchandiser retailers in the coming weeks and expect the test to be available through some of their online store websites.
BinaxNOW demonstrates overall performance of 84.6% positive agreement (sensitivity) and 98.5% negative agreement (specificity) in people seven days or less post-symptom onset at all Ct counts. In the company's studies, it further shows performance of 95.6% positive agreement (sensitivity) in people seven days or less post-symptom onset with Ct counts of 33 or below.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said Wednesday that it has received U.S. Food and Drug Administration Emergency Use Authorization for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection. Abbot said it will begin shipping to major food, drug and mass merchandiser retailers in the coming weeks and expect the test to be available through some of their online store websites. In the company's studies, it further shows performance of 95.6% positive agreement (sensitivity) in people seven days or less post-symptom onset with Ct counts of 33 or below. | (RTTNews) - Abbott (ABT) said Wednesday that it has received U.S. Food and Drug Administration Emergency Use Authorization for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection. The BinaxNOW Self Test is the same technology as the existing BinaxNOW test that has been available since August 2020 but is indicated by the FDA for serial asymptomatic testing, meaning that people should test themselves frequently. BinaxNOW demonstrates overall performance of 84.6% positive agreement (sensitivity) and 98.5% negative agreement (specificity) in people seven days or less post-symptom onset at all Ct counts. | (RTTNews) - Abbott (ABT) said Wednesday that it has received U.S. Food and Drug Administration Emergency Use Authorization for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection. The BinaxNOW Self Test is the same technology as the existing BinaxNOW test that has been available since August 2020 but is indicated by the FDA for serial asymptomatic testing, meaning that people should test themselves frequently. BinaxNOW demonstrates overall performance of 84.6% positive agreement (sensitivity) and 98.5% negative agreement (specificity) in people seven days or less post-symptom onset at all Ct counts. | (RTTNews) - Abbott (ABT) said Wednesday that it has received U.S. Food and Drug Administration Emergency Use Authorization for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection. The new indication allows individuals with or without symptoms to have access to the test without a prescription. The BinaxNOW Self Test is the same technology as the existing BinaxNOW test that has been available since August 2020 but is indicated by the FDA for serial asymptomatic testing, meaning that people should test themselves frequently. |
32196.0 | 2021-03-31 00:00:00 UTC | U.S. okays Abbott's rapid COVID-19 test for at-home screenings in those without symptoms | ABT | https://www.nasdaq.com/articles/u.s.-okays-abbotts-rapid-covid-19-test-for-at-home-screenings-in-those-without-symptoms | nan | nan | By Carl O'Donnell
March 31 (Reuters) - Abbott Laboratories ABT.N said on Wednesday that U.S. regulators have cleared its rapid COVID-19 antigen test for over-the-counter, at-home use in people without symptoms, making the cheap and abundant tests more easily available for regular screening at schools and workplaces.
The Illinois-based company said it will begin shipping its BinaxNOW test to retailers in the coming weeks. It is among the most widely available COVID-19 tests in the United States and produces results in around 15 minutes. People will be able to purchase tests at stores or online without a prescription and administer them at home.
Abbott is still determining the exact price of the test when sold over-the-counter, though it will sell them to retailers for less than $10 each, a spokeswoman told Reuters.
"We've now accomplished what we set out to do when we launched BinaxNOW, which is to bring an accurate, affordable and readily available test to the American people that they can have on hand," Chief Executive Officer Robert Ford said in a statement.
Demand for COVID-19 tests is increasing as more schools and employers resume in-person operations, Quidel Corp Chief Executive Douglas Bryant said, adding that the White House's recent $10 billion funding package to help schools afford tests has also boosted demand.
The U.S. Centers for Disease Control and Prevention recently relaxed guidance on school reopenings, suggesting students can sit only 3 feet apart in some cases, but it has said widespread testing is crucial to preventing outbreaks.
The guidance said school districts should expand screenings for students participating in sports or other extracurricular activities, and consider universal screening prior to athletic events.
Abbott's test requires a relatively non-invasive nasal swab. It can be used frequently to screen asymptomatic people for COVID-19, according to the newly expanded authorization from the U.S. Food and Drug Administration.
The BinaxNOW test was approved in August 2020 for use when prescribed by healthcare professionals to people suspected of having COVID-19.
Abbott currently produces about 50 million BinaxNOW tests per month at its U.S. manufacturing facilities.
(Reporting by Carl O'Donnell; Editing by David Gregorio and Sherry Jacob-Phillips)
((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. | By Carl O'Donnell March 31 (Reuters) - Abbott Laboratories ABT.N said on Wednesday that U.S. regulators have cleared its rapid COVID-19 antigen test for over-the-counter, at-home use in people without symptoms, making the cheap and abundant tests more easily available for regular screening at schools and workplaces. Abbott is still determining the exact price of the test when sold over-the-counter, though it will sell them to retailers for less than $10 each, a spokeswoman told Reuters. "We've now accomplished what we set out to do when we launched BinaxNOW, which is to bring an accurate, affordable and readily available test to the American people that they can have on hand," Chief Executive Officer Robert Ford said in a statement. | By Carl O'Donnell March 31 (Reuters) - Abbott Laboratories ABT.N said on Wednesday that U.S. regulators have cleared its rapid COVID-19 antigen test for over-the-counter, at-home use in people without symptoms, making the cheap and abundant tests more easily available for regular screening at schools and workplaces. The U.S. Centers for Disease Control and Prevention recently relaxed guidance on school reopenings, suggesting students can sit only 3 feet apart in some cases, but it has said widespread testing is crucial to preventing outbreaks. The guidance said school districts should expand screenings for students participating in sports or other extracurricular activities, and consider universal screening prior to athletic events. | By Carl O'Donnell March 31 (Reuters) - Abbott Laboratories ABT.N said on Wednesday that U.S. regulators have cleared its rapid COVID-19 antigen test for over-the-counter, at-home use in people without symptoms, making the cheap and abundant tests more easily available for regular screening at schools and workplaces. "We've now accomplished what we set out to do when we launched BinaxNOW, which is to bring an accurate, affordable and readily available test to the American people that they can have on hand," Chief Executive Officer Robert Ford said in a statement. Demand for COVID-19 tests is increasing as more schools and employers resume in-person operations, Quidel Corp Chief Executive Douglas Bryant said, adding that the White House's recent $10 billion funding package to help schools afford tests has also boosted demand. | By Carl O'Donnell March 31 (Reuters) - Abbott Laboratories ABT.N said on Wednesday that U.S. regulators have cleared its rapid COVID-19 antigen test for over-the-counter, at-home use in people without symptoms, making the cheap and abundant tests more easily available for regular screening at schools and workplaces. The Illinois-based company said it will begin shipping its BinaxNOW test to retailers in the coming weeks. The guidance said school districts should expand screenings for students participating in sports or other extracurricular activities, and consider universal screening prior to athletic events. |
32197.0 | 2021-03-30 00:00:00 UTC | These 3 Stocks Will Make You Rethink Your Portfolio | ABT | https://www.nasdaq.com/articles/these-3-stocks-will-make-you-rethink-your-portfolio-2021-03-30 | nan | nan | If you're not sure whether growth stocks or value stocks are the way to go for 2021, I've got an answer for you. Don't accept an either-or choice. You can find growth stocks that already have value.
You can do well by going against the conventional wisdom when considering these companies: Quidel (NASDAQ: QDEL) is not just a COVID stock; Abbott Laboratories (NYSE: ABT) is not just a solid pharmaceutical company with a nice dividend; and CVS Health (NYSE: CVS) is diversified enough to thrive even amid rising competition from e-pharmacies.
IMAGE SOURCE: GETTY IMAGES
1. Quidel was overpriced, but it's not anymore
Quidel's shares are up more than 33% over the past 12 months, but down more than 30% so far in 2021. The widely held view among investors is that the medical diagnostic solutions company benefitted greatly from the need for COVID-19 testing, but will lose that tailwind if the pandemic subsides as expected in the coming months.
But there are a few reasons why investors should remain excited about this company. While 2020 was a tremendous year for it thanks to sales of its COVID-19 diagnostic products, Quidel had five consecutive years of revenue growth prior to that. It's unlikely that 2021's revenue growth will be as steep as it was in 2020 (when it more than tripled), but this is a very profitable company with a 6.6 price-to-earnings (P/E) ratio and a gross margin of more than 87%. In a January presentation to investors, Quidel said it expects to double its 2020 revenue this year.
The company's revenues in 2020 were $1.66 billion -- up 211% over the prior year -- and earnings per diluted share were $18.60, compared to $1.73 per share in 2019.
On Friday, March 26, the stock closed at $126.30 per share. That's a long way down from the $306 it touched on Aug. 6. This presents a great opportunity. The need for COVID-19 testing may wane, but it won't disappear for some time, particularly as more workplaces begin to reopen.
The great thing about the company's 2020 performance is that it was able to expand its customer base, and those same customers may buy its other immunoassays for the flu, strep A, and respiratory syncytial virus. On top of that, Quidel's cardiometabolic disease immunoassay revenue in Q4 was $70 million, up 8% sequentially and 6% year over year. Looking past the pandemic, the company said it expects its revenues from other testing products, like the cardiometabolic disease immunoassay, to have a compound annual growth rate (CAGR) of 18% through 2024.
2. Abbott Labs offers growth, plus a dependable dividend
When investors think about Abbott Labs, they often focus on the fact that it's a Dividend Aristocrat -- and its 49-year streak of raising its payouts is certainly a plus. The company last boosted the quarterly dividend in December, to $0.45 a share, a 25% increase. At Friday's closing price of $122.07, that gives it a yield of 1.47%. Its shares are up more than 63% over the past 12 months and up more than 11% thus far in 2021.
Abbott's full-year revenue in 2020 grew 9.8% to $34.6 billion, and management is forecasting 35% revenue growth in 2021. Part of that success story is COVID-19 related: Revenue from its diagnostic testing segment gained 40.1% year over year. However, Abbott is a diversified business, and when the pandemic is over, sales in its other segments should pick up. Revenues from its nutrition unit rose by 3.2% last year anyway, with products such as Ensure, a meal replacement shake, Glucerna, a nutrition shake for diabetics, and infant formula Similac doing well. But its pharmaceutical revenue was down by 4.1% and medical devices revenue fell by 3.7%.
The company expects both of those lagging segments to bounce back once more people start feeling comfortable about visiting doctors' offices for routine care. The company launched medical devices last year that should help grow revenue: the FreeStyle Libre 2 system for diabetes in the U.S. and the FreeStyle Libre 3 system in Europe, as well as the MitraClip G4 heart valve device.
QDEL PE Ratio (Forward) data by YCharts
3. CVS Health is poised for a big jump
Investors may not find CVS Health to be that exciting, but they should. Though the company's shares are up by more than 30% over the past 12 months and more than 11% in 2021, at a P/E ratio of 13.9, they're still underpriced compared to other healthcare companies.
COVID-19 had a big impact on the company's pharmaceutical and retail sales in 2020, yet CVS came through the year with revenue growth of 4.6% to $268.7 billion, and net income of $7.2 billion compared to $6.6 billion in 2019. Since its purchase of Aetna in 2018, the company has been steadily paying down its debt, including $12.2 billion in 2020. CVS also has a solid quarterly dividend of $0.50 a share, which offers a yield, based on Friday's closing price, of 2.63% and a very sustainable payout ratio of 26.61%.
Here are a few reasons why I see big things ahead for CVS in 2021. Growth in the company's top-performing segment, health care benefits, seems to be accelerating: Last year, its revenue rose 8.4% to $75.4 billion, and fourth-quarter revenue of $19.1 billion was up 11.4% year over year. The company's pharmacy services segment lagged a bit last year, with revenue gains of 0.3% compared to 2019. While the revenues from the company's retail segment were up 5.3%, they would have been up by even more if it weren't for the slowdown in front-of-store sales, which fell 1.1% for the year. Sales in both of those segments will grow as the pandemic ebbs. In addition, CVS is one of the primary locations people are going to for their COVID-19 shots, which will increase foot traffic to its stores.
Solid choices all around
The uneven first few months of 2021 have left a lot of investors looking for stability. These stocks can provide some. All three companies are profitable and grew revenue last year, and all will likely do so again this year, making them easy choices to add to one's portfolio.
If I had to choose just one of them, I'd go with CVS. It seems to have a good opportunity for growth in 2021, and with its current forward P/E of 10.1, there's plenty of upside. Quidel poses a bit more risk, but the broad plan to get more people back into their workplaces this year will demand continued COVID-19 testing. In terms of valuations, Abbott is a bit pricier than the other two, but it also stands to blossom this year once its medical devices segment shifts back into gear.
10 stocks we like better than CVS Health
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Jim Halley owns shares of CVS Health. The Motley Fool owns shares of and recommends Quidel. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You can do well by going against the conventional wisdom when considering these companies: Quidel (NASDAQ: QDEL) is not just a COVID stock; Abbott Laboratories (NYSE: ABT) is not just a solid pharmaceutical company with a nice dividend; and CVS Health (NYSE: CVS) is diversified enough to thrive even amid rising competition from e-pharmacies. The widely held view among investors is that the medical diagnostic solutions company benefitted greatly from the need for COVID-19 testing, but will lose that tailwind if the pandemic subsides as expected in the coming months. Looking past the pandemic, the company said it expects its revenues from other testing products, like the cardiometabolic disease immunoassay, to have a compound annual growth rate (CAGR) of 18% through 2024. | You can do well by going against the conventional wisdom when considering these companies: Quidel (NASDAQ: QDEL) is not just a COVID stock; Abbott Laboratories (NYSE: ABT) is not just a solid pharmaceutical company with a nice dividend; and CVS Health (NYSE: CVS) is diversified enough to thrive even amid rising competition from e-pharmacies. The company launched medical devices last year that should help grow revenue: the FreeStyle Libre 2 system for diabetes in the U.S. and the FreeStyle Libre 3 system in Europe, as well as the MitraClip G4 heart valve device. CVS also has a solid quarterly dividend of $0.50 a share, which offers a yield, based on Friday's closing price, of 2.63% and a very sustainable payout ratio of 26.61%. | You can do well by going against the conventional wisdom when considering these companies: Quidel (NASDAQ: QDEL) is not just a COVID stock; Abbott Laboratories (NYSE: ABT) is not just a solid pharmaceutical company with a nice dividend; and CVS Health (NYSE: CVS) is diversified enough to thrive even amid rising competition from e-pharmacies. COVID-19 had a big impact on the company's pharmaceutical and retail sales in 2020, yet CVS came through the year with revenue growth of 4.6% to $268.7 billion, and net income of $7.2 billion compared to $6.6 billion in 2019. Growth in the company's top-performing segment, health care benefits, seems to be accelerating: Last year, its revenue rose 8.4% to $75.4 billion, and fourth-quarter revenue of $19.1 billion was up 11.4% year over year. | You can do well by going against the conventional wisdom when considering these companies: Quidel (NASDAQ: QDEL) is not just a COVID stock; Abbott Laboratories (NYSE: ABT) is not just a solid pharmaceutical company with a nice dividend; and CVS Health (NYSE: CVS) is diversified enough to thrive even amid rising competition from e-pharmacies. While 2020 was a tremendous year for it thanks to sales of its COVID-19 diagnostic products, Quidel had five consecutive years of revenue growth prior to that. CVS Health is poised for a big jump Investors may not find CVS Health to be that exciting, but they should. |
32198.0 | 2021-03-29 00:00:00 UTC | Intercontinental Exchange Achieves #21 Analyst Rank, Surpassing Abbott Laboratories | ABT | https://www.nasdaq.com/articles/intercontinental-exchange-achieves-21-analyst-rank-surpassing-abbott-laboratories-2021-03 | nan | nan | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Intercontinental Exchange Inc (Symbol: ICE) has taken over the #21 spot from Abbott Laboratories (Symbol: ABT), according to ETF Channel. Below is a chart of Intercontinental Exchange Inc versus Abbott Laboratories plotting their respective rank within the S&P 500 over time (ICE plotted in blue; ABT plotted in green):
Below is a three month price history chart comparing the stock performance of ICE vs. ABT:
ICE is currently trading off about 0.6%, while ABT is up about 0.1% midday Monday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Intercontinental Exchange Inc (Symbol: ICE) has taken over the #21 spot from Abbott Laboratories (Symbol: ABT), according to ETF Channel. Below is a chart of Intercontinental Exchange Inc versus Abbott Laboratories plotting their respective rank within the S&P 500 over time (ICE plotted in blue; ABT plotted in green): Below is a three month price history chart comparing the stock performance of ICE vs. ABT: ICE is currently trading off about 0.6%, while ABT is up about 0.1% midday Monday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Intercontinental Exchange Inc (Symbol: ICE) has taken over the #21 spot from Abbott Laboratories (Symbol: ABT), according to ETF Channel. Below is a chart of Intercontinental Exchange Inc versus Abbott Laboratories plotting their respective rank within the S&P 500 over time (ICE plotted in blue; ABT plotted in green): Below is a three month price history chart comparing the stock performance of ICE vs. ABT: ICE is currently trading off about 0.6%, while ABT is up about 0.1% midday Monday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Intercontinental Exchange Inc (Symbol: ICE) has taken over the #21 spot from Abbott Laboratories (Symbol: ABT), according to ETF Channel. Below is a chart of Intercontinental Exchange Inc versus Abbott Laboratories plotting their respective rank within the S&P 500 over time (ICE plotted in blue; ABT plotted in green): Below is a three month price history chart comparing the stock performance of ICE vs. ABT: ICE is currently trading off about 0.6%, while ABT is up about 0.1% midday Monday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Intercontinental Exchange Inc (Symbol: ICE) has taken over the #21 spot from Abbott Laboratories (Symbol: ABT), according to ETF Channel. Below is a chart of Intercontinental Exchange Inc versus Abbott Laboratories plotting their respective rank within the S&P 500 over time (ICE plotted in blue; ABT plotted in green): Below is a three month price history chart comparing the stock performance of ICE vs. ABT: ICE is currently trading off about 0.6%, while ABT is up about 0.1% midday Monday. Favorites » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32199.0 | 2021-03-28 00:00:00 UTC | 3 Stocks for the 2020s | ABT | https://www.nasdaq.com/articles/3-stocks-for-the-2020s-2021-03-28 | nan | nan | With the COVID-19 pandemic mercifully crawling into a muted phase, it's now a better time than ever to think about the companies best positioned to succeed in the coming decade. We've no doubt changed the way in which we live, work, relax, and care for each other, but it will be interesting to see which, if any, of our behaviors from the last year manage to stick for the long haul. Here, we'll look at three companies destined for sustained growth in the coming decade.
Image source: Getty Images.
1. Teladoc
At first, there was reason for skepticism: How could anyone have a meaningful interaction with a doctor in a Zoom-like environment? The reality is, however, that virtual physician visits are incredibly efficient and time-saving for both patient and provider. Teladoc Health (NYSE: TDOC) truly provides a great solution for those looking to find answers to non-urgent medical questions -- all without a treacherous commute, crowded public transit, and the traditional waiting room experience.
Teladoc expects revenue to grow 100% in 2021, and it's very easy to see why: Visits for non-emergent reasons, like high blood pressure or ongoing depression, can now be handled virtually without the feeling that something has been lost. Furthermore, virtual visits limit exposure between patient, doctors, and staff -- unquestionably a positive after the events of the past 12 months. What's perhaps most intriguing is that Teladoc's revenue is largely (about 80%) driven by recurring subscriptions, key to a reliable business model.
2. Lyft
On the theme of changing the way we go about our lives, Lyft (NASDAQ: LYFT) is an interesting play not only from the world of ride-sharing but also with regard to autonomous driving and other modes of transportation (think scooters and bikes). This speaks to the relatively new idea of "Mobility-as-a-Service," or "MaaS." One has to believe that these ideas will revolutionize city transportation, and Lyft is supremely positioned to head the pack of pure-play ride-sharing companies.
Lyft sells the idea of access as opposed to ownership. This is especially popular with city-dwelling millennials and members of Gen Z -- most of whom find car ownership to be an expensive burden. There is simply something about an all-electric fleet of shared rides that is inherently appealing to most young people, as they're eco-friendly and lifestyle-efficient. After posting a $1.75 billion net loss in 2020, the company has a great chance to roar back in 2021, posting guidance that it could show strong growth in the second half of the coming year.
3. Abbott Laboratories
As one of the leading medical device companies, Abbott Laboratories (NYSE: ABT) has made headlines over the past year for its work surrounding COVID-19 testing. The company added revenue growth in 2020, boosting sales by about 8.5% from 2019. Given its strong balance sheet and a growing bottom line (earnings were up to $4.5 billion in 2020 from $3.69 billion in 2019 and $2.37 billion in 2018), there is ample reason to expect Abbott Labs will continue its stellar performance in the diagnostic and pharmaceutical fields.
Abbott's outlook in the 2020s is as strong as ever, primarily because it has proven its ability to deliver in the past. Abbott Labs has increased its dividend every year by an average of 10% for nearly 50 years. Secondarily, Abbott is well positioned to address a major global issue before it even exists: the next pandemic. Abbott is at the forefront of public health crisis preparedness, which stands to be a major market in and of itself for the next several decades.
The future is always uncertain
While we can't ever predict the future with certainty, there is reason to believe that the above three companies will continue to perform well into the 2020s. The hope is that with a thorough examination of the ways in which our lives have changed forever, we can pick the companies that stand to benefit. Before investing in any single stocks, however, it's advisable to evaluate your risk tolerance and time horizon appropriately, so take care to evaluate your entire financial picture before engaging in any financial moves you may regret.
10 stocks we like better than Teladoc Health
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Teladoc Health wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 24, 2021
Sam Swenson, CFA, CPA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories As one of the leading medical device companies, Abbott Laboratories (NYSE: ABT) has made headlines over the past year for its work surrounding COVID-19 testing. We've no doubt changed the way in which we live, work, relax, and care for each other, but it will be interesting to see which, if any, of our behaviors from the last year manage to stick for the long haul. Teladoc Health (NYSE: TDOC) truly provides a great solution for those looking to find answers to non-urgent medical questions -- all without a treacherous commute, crowded public transit, and the traditional waiting room experience. | Abbott Laboratories As one of the leading medical device companies, Abbott Laboratories (NYSE: ABT) has made headlines over the past year for its work surrounding COVID-19 testing. Given its strong balance sheet and a growing bottom line (earnings were up to $4.5 billion in 2020 from $3.69 billion in 2019 and $2.37 billion in 2018), there is ample reason to expect Abbott Labs will continue its stellar performance in the diagnostic and pharmaceutical fields. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Abbott Laboratories As one of the leading medical device companies, Abbott Laboratories (NYSE: ABT) has made headlines over the past year for its work surrounding COVID-19 testing. 10 stocks we like better than Teladoc Health When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Sam Swenson, CFA, CPA has no position in any of the stocks mentioned. | Abbott Laboratories As one of the leading medical device companies, Abbott Laboratories (NYSE: ABT) has made headlines over the past year for its work surrounding COVID-19 testing. Here, we'll look at three companies destined for sustained growth in the coming decade. Lyft sells the idea of access as opposed to ownership. |
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