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32200.0 | 2021-03-26 00:00:00 UTC | Covid Fatigue Threatens to Derail Once Relevant Quidel | ABT | https://www.nasdaq.com/articles/covid-fatigue-threatens-to-derail-once-relevant-quidel-2021-03-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As one of the more intriguing narratives during this novel coronavirus pandemic, Quidel (NASDAQ:QDEL), a medical diagnostics firm, is relevant so long as this health crisis stays front and center. True, this has a cynical tone to it and I’m not suggesting that Quidel’s management team want an extension of this disaster. Nevertheless, QDEL stock was a beneficiary of the pandemic.
Source: iStockphoto
Personally, I believe the numbers speak for themselves. Last year, QDEL stock gained a whopping 140%. But in all of 2019, Quidel shares returned 56%. True, this is a respectable stat but as President Biden might say, come on, man! It’s usually not what the company is capable of delivering in a non-pandemic year. And that begs the question – can it thrive without Covid-19?
If you look at the year-to-date performance of QDEL stock, you might say the answer is a resounding no. Shares are down 28% and trending poorly. Yet the broader fundamentals offer some hope if you want to call it that.
While most of us regard the new strains of the SARS-CoV-2 virus with some trepidation of what that implies for personal health and society at large, it could be what gives QDEL stock a desperately needed lifeline. According to various news reports, medical experts believe these new strains are more contagious than prior forms of the coronavirus.
Worryingly (especially if you don’t own Covid-fueled shares), the Wall Street Journal reported that a new variant called P.1 has overwhelmed hospitals in Brazil, impacting younger patients. Since the WSJ leans more conservatively and definitely doesn’t pander to sensationalism, the story is one to consider in your analysis.
Also, several European countries have imposed new lockdown measures to combat another wave of coronavirus cases. Over the trailing year-plus, Europe represented a harbinger. It’s possible (though not guaranteed) that the same can happen again.
Why You Don’t Want to Rush into QDEL Stock
Recently, I had an interesting discussion with a cineplex manager who reported a significant uptick in business near the Seattle, Washington area. He now states that he’s constantly busy and that his company is hiring new workers.
7 Risky Stocks Ready to Roll on Reopening
Anecdotal, yes but at the same time, these are not actions that an organization on the brink of disaster would probably take. And interestingly, this observation contrasts with what high-level sources like Deloitte have revealed, noting that most Americans are unwilling to go to the movie theaters until around mid-2021.
If what’s apparently happening in Washington applies to other parts of the country, this might not be good news for QDEL stock. It seems that people are tired of lockdowns and mask-wearing mandates. After a year of these restrictions, it’s hard not to sympathize with this sentiment.
I don’t want to drive QDEL stock into a political narrative but the reality is that the Europeans have gone under lockdown multiple times before. That they’re doing it again suggests that these measures aren’t working.
Further, while some governments such as Germany have been standup actors in that they financially supported their workers during the lockdowns, simple economic realities indicate that this can’t go on indefinitely. In other words, the international community might realize that we just have to deal with it and hope that the crisis fades one way or another.
Not only that, the Europeans themselves are tired of the strict protocols – not just crazy Americans. Trying to read the room, I believe the overriding sentiment right now is exasperation: with masks, lockdowns and perhaps even testing.
Also, with millions of people still working from home, there doesn’t seem to be much incentive in getting tested for Covid. This doesn’t mean that you should necessarily avoid QDEL stock. However, you should probably assess the ecosystem before placing a big bet.
No Prevailing Incentive for Testing
Another interesting tidbit to consider is the delayed Summer Olympics. As you’ve heard, the Tokyo Olympics committee announced that no overseas spectators will be allowed to attend the games. That’s a huge blow for multiple transportation, lodgings and service-related businesses but it also negatively impacts QDEL stock and related investments like Abbott Laboratories (NYSE:ABT).
To be fair, Abbott is in much better shape than Quidel but the quarantined games is a bummer because it means there’s no prevailing incentive for Covid testing. Thus, the added demand uptick from Japan is essentially zero. So too are the hundreds of countries whose citizens were looking forward to visiting Tokyo.
Combine that with how tired arguably most folks are about Covid restrictions and you don’t have the most confident case for QDEL stock right now.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post Covid Fatigue Threatens to Derail Once Relevant Quidel 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. | That’s a huge blow for multiple transportation, lodgings and service-related businesses but it also negatively impacts QDEL stock and related investments like Abbott Laboratories (NYSE:ABT). Worryingly (especially if you don’t own Covid-fueled shares), the Wall Street Journal reported that a new variant called P.1 has overwhelmed hospitals in Brazil, impacting younger patients. Why You Don’t Want to Rush into QDEL Stock Recently, I had an interesting discussion with a cineplex manager who reported a significant uptick in business near the Seattle, Washington area. | That’s a huge blow for multiple transportation, lodgings and service-related businesses but it also negatively impacts QDEL stock and related investments like Abbott Laboratories (NYSE:ABT). InvestorPlace - Stock Market News, Stock Advice & Trading Tips As one of the more intriguing narratives during this novel coronavirus pandemic, Quidel (NASDAQ:QDEL), a medical diagnostics firm, is relevant so long as this health crisis stays front and center. I don’t want to drive QDEL stock into a political narrative but the reality is that the Europeans have gone under lockdown multiple times before. | That’s a huge blow for multiple transportation, lodgings and service-related businesses but it also negatively impacts QDEL stock and related investments like Abbott Laboratories (NYSE:ABT). InvestorPlace - Stock Market News, Stock Advice & Trading Tips As one of the more intriguing narratives during this novel coronavirus pandemic, Quidel (NASDAQ:QDEL), a medical diagnostics firm, is relevant so long as this health crisis stays front and center. Why You Don’t Want to Rush into QDEL Stock Recently, I had an interesting discussion with a cineplex manager who reported a significant uptick in business near the Seattle, Washington area. | That’s a huge blow for multiple transportation, lodgings and service-related businesses but it also negatively impacts QDEL stock and related investments like Abbott Laboratories (NYSE:ABT). But in all of 2019, Quidel shares returned 56%. I don’t want to drive QDEL stock into a political narrative but the reality is that the Europeans have gone under lockdown multiple times before. |
32201.0 | 2021-03-26 00:00:00 UTC | Noteworthy ETF Outflows: IXJ, JNJ, ABT, GILD | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-ixj-jnj-abt-gild-2021-03-26 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $34.3 million dollar outflow -- that's a 1.3% decrease week over week (from 35,550,000 to 35,100,000). Among the largest underlying components of IXJ, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.1%, Abbott Laboratories (Symbol: ABT) is up about 0.1%, and Gilead Sciences Inc (Symbol: GILD) is higher by about 0.4%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average:
Looking at the chart above, IXJ's low point in its 52 week range is $57.90 per share, with $79.80 as the 52 week high point — that compares with a last trade of $76.35. 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 IXJ, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.1%, Abbott Laboratories (Symbol: ABT) is up about 0.1%, and Gilead Sciences Inc (Symbol: GILD) is higher by about 0.4%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $57.90 per share, with $79.80 as the 52 week high point — that compares with a last trade of $76.35. 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 IXJ, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.1%, Abbott Laboratories (Symbol: ABT) is up about 0.1%, and Gilead Sciences Inc (Symbol: GILD) is higher by about 0.4%. For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $57.90 per share, with $79.80 as the 52 week high point — that compares with a last trade of $76.35. 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 IXJ, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.1%, Abbott Laboratories (Symbol: ABT) is up about 0.1%, and Gilead Sciences Inc (Symbol: GILD) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $34.3 million dollar outflow -- that's a 1.3% decrease week over week (from 35,550,000 to 35,100,000). For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $57.90 per share, with $79.80 as the 52 week high point — that compares with a last trade of $76.35. | Among the largest underlying components of IXJ, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.1%, Abbott Laboratories (Symbol: ABT) is up about 0.1%, and Gilead Sciences Inc (Symbol: GILD) is higher by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Healthcare ETF (Symbol: IXJ) where we have detected an approximate $34.3 million dollar outflow -- that's a 1.3% decrease week over week (from 35,550,000 to 35,100,000). For a complete list of holdings, visit the IXJ Holdings page » The chart below shows the one year price performance of IXJ, versus its 200 day moving average: Looking at the chart above, IXJ's low point in its 52 week range is $57.90 per share, with $79.80 as the 52 week high point — that compares with a last trade of $76.35. |
32202.0 | 2021-03-26 00:00:00 UTC | Got $1,400? 3 COVID Stocks to Buy and Hold for the Long Term | ABT | https://www.nasdaq.com/articles/got-%241400-3-covid-stocks-to-buy-and-hold-for-the-long-term-2021-03-26 | nan | nan | There's a pretty good chance that you now have an extra $1,400 on your hands. The latest round of stimulus payments has already been distributed to many Americans. If you meet the eligibility criteria, your payment should be on the way if you haven't already received it.
The best thing to do with the money is to pay off any outstanding bills and make sure you have an emergency savings account established. What's the next best thing to do with your stimulus payment? Invest it.
One top alternative for investing your newfound cash is to buy stocks of companies that provide coronavirus testing, therapies, or vaccines. Even with hopes that the end of the pandemic might be near, COVID-19 will likely remain with us for a long time to come. But problems also present opportunities for investors. If you've got $1,400 to invest, here are three COVID stocks to buy and hold for the long term.
Image source: Getty Images.
1. Abbott Labs
Abbott Labs (NYSE: ABT) achieved remarkable success in developing and marketing diagnostic tests for COVID-19. The company's COVID tests generated $2.4 billion in sales during the fourth quarter of 2020.
CEO Robert Ford said in Abbott's Q4 conference call that he expects that COVID-19 "testing demand is still going to remain high, even as the vaccines roll out." The emergence of new coronavirus variants could continue to drive demand for Abbott's diagnostic tests in the years to come.
But Abbott isn't solely dependent on its COVID testing for growth. Continuous glucose monitoring system FreeStyle Libre stands at the top of the list. Libre Sense Glucose Sport extends Abbott's wearable biosensor focus beyond diabetes.
MitraClip G4, the latest version of the company's system to repair leaky mitral heart valves, now has expanded Medicare coverage that gives it a much larger potential market. And those are just a few of the company's products poised to generate increasingly higher sales.
Analysts project that Abbott's earnings will grow by nearly 16%, on average, annually over the next five years. The company also pays a solid dividend to boot. Look for that dividend to continue to increase: Abbott ranks as a Dividend Aristocrat, with 49 consecutive years of dividend hikes.
2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) boasts an even more impressive dividend track record than Abbott. The healthcare giant is a Dividend King with an impressive 58 years in a row of dividend increases. J&J will probably soon extend that streak by another year.
The company currently markets the only single-dose COVID-19 vaccine available in the U.S. and Europe. Right now, Johnson & Johnson is selling the vaccine at cost for emergency pandemic use. However, the profits will likely begin to pour in once the pandemic is over.
J&J's medical-device business has been negatively impacted by the pandemic as medical procedures have been postponed. The good news, though, is that the increased availability of vaccines (including the company's own vaccine) is helping turn things around.
Over the long run, Johnson & Johnson should be able to deliver consistent, solid growth. The company's diversification across multiple areas of healthcare, including consumer health products, medical devices, and pharmaceuticals, makes J&J one of the safest healthcare stocks on the market to buy and hold.
3. Pfizer
Few companies have made as big of an impact in fighting COVID-19 as Pfizer (NYSE: PFE). The big drugmaker, along with its partner BioNTech, became the first to win U.S. Emergency Use Authorization for a COVID-19 vaccine in December.
Pfizer's COVID-19 vaccine sales could easily top $20 billion this year. The company expects that annual booster shots will be required. If it's right, Pfizer should have solid recurring revenue from its COVID-19 vaccine for a long time to come. The company is also developing an oral antiviral drug for treating COVID-19.
Like Abbott and Johnson & Johnson, though, Pfizer isn't dependent on its COVID-related programs for success. The company's current lineup includes multiple blockbuster products with rising sales. Pfizer also has a loaded pipeline with 24 late-stage programs.
Although Pfizer isn't a Dividend Aristocrat or a Dividend King, the drugmaker offers one of the most attractive dividends around. With its great dividend and strong growth prospects, Pfizer should be able to deliver solid total returns for investors over the long term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs Abbott Labs (NYSE: ABT) achieved remarkable success in developing and marketing diagnostic tests for COVID-19. CEO Robert Ford said in Abbott's Q4 conference call that he expects that COVID-19 "testing demand is still going to remain high, even as the vaccines roll out." MitraClip G4, the latest version of the company's system to repair leaky mitral heart valves, now has expanded Medicare coverage that gives it a much larger potential market. | Abbott Labs Abbott Labs (NYSE: ABT) achieved remarkable success in developing and marketing diagnostic tests for COVID-19. The company's COVID tests generated $2.4 billion in sales during the fourth quarter of 2020. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) boasts an even more impressive dividend track record than Abbott. | Abbott Labs Abbott Labs (NYSE: ABT) achieved remarkable success in developing and marketing diagnostic tests for COVID-19. Look for that dividend to continue to increase: Abbott ranks as a Dividend Aristocrat, with 49 consecutive years of dividend hikes. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) boasts an even more impressive dividend track record than Abbott. | Abbott Labs Abbott Labs (NYSE: ABT) achieved remarkable success in developing and marketing diagnostic tests for COVID-19. If you've got $1,400 to invest, here are three COVID stocks to buy and hold for the long term. The good news, though, is that the increased availability of vaccines (including the company's own vaccine) is helping turn things around. |
32203.0 | 2021-03-26 00:00:00 UTC | Here's Why We Believe Boston Scientific Is A Better Pick Over Illumina Stock | ABT | https://www.nasdaq.com/articles/heres-why-we-believe-boston-scientific-is-a-better-pick-over-illumina-stock-2021-03-26 | nan | nan | 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.
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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. | 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. 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. | 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. 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. | Our dashboard Boston Scientific vs. Illumina: BSX stock looks undervalued compared to ILMN stock has more details on this. 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. | Now, Illumina’s operating margin has been better than Boston Scientific over the last twelve month period as well as over the recent years. 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. 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. |
32204.0 | 2021-03-25 00:00:00 UTC | Should You Buy Medtronic At $117? | ABT | https://www.nasdaq.com/articles/should-you-buy-medtronic-at-%24117-2021-03-25 | nan | nan | Medtronic (NYSE: MDT) looks attractive at current levels of $117, as it is up 60% from the levels it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. This marks an underperformance compared to the S&P which has moved 75% 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 underperformance can primarily be attributed to the deferment of elective surgeries in the first half of 2020, impacting the demand for Medtronic’s devices and consumables. As we look forward, the volume of surgeries is expected to rise in 2021, and this will likely bode well for MDT stock. Even if we were to look at a longer time period, MDT stock is up only 45% from levels seen toward the end of 2017.
Medtronic’s fundamentals have been mixed over the recent years. The company’s total revenue declined 3.5% to $28.9 billion in 2020, compared to $30.0 billion in 2018. The sales have further dropped to $27.9 billion over the last twelve month period. However, the decline in top-line can largely be attributed to the impact of the pandemic on overall elective surgeries volume. While the top-line has contracted, Medtronic posted a 620 bps expansion of net margins between 2018 and 2020. Again, the margins also declined over the last twelve month period owing to the increased operating costs during the pandemic. The company’s total shares saw a decline of 1% over this period, and on a per share basis, earnings grew a solid 56% to $3.57 in 2020, as compared to $2.29 in 2018. Although Medtronic’s P/E multiple has contracted, given the mixed performance over the recent years, we believe it will likely expand going forward. Our dashboard, ‘What Factors Drove 45% Change In Medtronic Stock between 2017 and now?‘, has the underlying numbers.
Medtronic’s P/E multiple contracted from 40x in 2018 to 33x in 2020 based on trailing EPS. While the company’s P/E is still at 33x 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?
For Medtronic, its Diabetes Group segment has been the key growth driver, with sales growth of 11% between 2018 and 2020. Among other segments, the company’s Cardiac & Vascular Group segment has seen the largest decline (8% between 2018 and 2020), partly due to an increased competition from Boston Scientific. Looking at the company’s fiscal Q3 2021 (fiscal ends in April), the Cardiac & Vascular segment was the only segment to see sales decline, while all other segments witnessed a rebound in demand. Now, as the Covid-19 crisis winds down, the volume growth for elective surgeries is expected to rise, boding well for Medtronic’s businesses. For Medtronic, its focus on new product launches will be the key growth driver going forward, given the stiff competition in the industry. Medtronic over the recent months has launched multiple products, including Carpediem Cardio-Renal Pediatric Dialysis and Adaptix Interbody System, among others. The company also secured regulatory approval for the use of Midas Rex high-speed drills with the Mazor Robotic Guidance System. These launches and approvals will bode well for its top-line expansion over the coming years.
Looking ahead, Medtronic will likely see an increase in 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. Looking at valuation, at the current price of $117, Medtronic is trading at 20x its estimated adjusted EPS of around $5.72 in fiscal 2022, compared to levels of 22x seen as recent as late 2020, implying there is more room for growth for MDT stock. Also, with the steady earnings growth going forward, led by improved margins and market share gains in robotic assisted surgeries, the P/E multiple will likely expand further. As such, we believe Medtronic is undervalued at the current levels of $117.
While MDT 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. | This marks an underperformance compared to the S&P which has moved 75% 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. Looking at valuation, at the current price of $117, Medtronic is trading at 20x its estimated adjusted EPS of around $5.72 in fiscal 2022, compared to levels of 22x seen as recent as late 2020, implying there is more room for growth for MDT stock. Also, with the steady earnings growth going forward, led by improved margins and market share gains in robotic assisted surgeries, the P/E multiple will likely expand further. | Looking at the company’s fiscal Q3 2021 (fiscal ends in April), the Cardiac & Vascular segment was the only segment to see sales decline, while all other segments witnessed a rebound in demand. Now, as the Covid-19 crisis winds down, the volume growth for elective surgeries is expected to rise, boding well for Medtronic’s businesses. Also, with the steady earnings growth going forward, led by improved margins and market share gains in robotic assisted surgeries, the P/E multiple will likely expand further. | Medtronic (NYSE: MDT) looks attractive at current levels of $117, as it is up 60% from the levels it was at on March 23, 2020, when broader markets made a bottom due to the spread of Covid-19. For Medtronic, its Diabetes Group segment has been the key growth driver, with sales growth of 11% between 2018 and 2020. Looking at valuation, at the current price of $117, Medtronic is trading at 20x its estimated adjusted EPS of around $5.72 in fiscal 2022, compared to levels of 22x seen as recent as late 2020, implying there is more room for growth for MDT stock. | Even if we were to look at a longer time period, MDT stock is up only 45% from levels seen toward the end of 2017. These launches and approvals will bode well for its top-line expansion over the coming years. Looking at valuation, at the current price of $117, Medtronic is trading at 20x its estimated adjusted EPS of around $5.72 in fiscal 2022, compared to levels of 22x seen as recent as late 2020, implying there is more room for growth for MDT stock. |
32205.0 | 2021-03-24 00:00:00 UTC | Should You Buy Sarepta Therapeutics Stock For 50% Gains? | ABT | https://www.nasdaq.com/articles/should-you-buy-sarepta-therapeutics-stock-for-50-gains-2021-03-24 | nan | nan | We believe that Sarepta Therapeutics stock (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 a good buying opportunity at the present time. SRPT stock trades near $83 currently and it is, in fact, down 32% from its pre-Covid high of around $122 in February 2020 – before the coronavirus pandemic hit the world. SRPT stock has had a volatile ride the past few months. It rallied from levels of under $90 in March 2020, when broader markets made the bottom, to levels north of $175 in late December 2020. However, the stock saw a vertical fall from $169 on January 7, 2021, to $82 on January 8, reflecting a large 52% drop in a single trading session. The January 2021 drop can be attributed to an unfavorable outcome from clinical trials for one of its drugs, SRP-9001, used for treating Duchenne muscular dystrophy (DMD). At the current price of $83, SRPT stock is actually trading at the same levels seen in March 2020, while the broader S&P500 Index has rallied 75% over the same period.
However, the selling now appears to be overdone. Firstly, SRP-9001 development suggests that there will likely be a two year delay in the study, and a treatment from Pfizer will likely take a lead. However, Sarepta has a large pipeline with 43 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company last week announced positive results from clinical trials. Secondly, not all of recent developments were negative for Sarepta. 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. Finally, after the January developments, many analysts cut their price targets for SRPT stock, but still the average price estimate stands at $130, implying a potential premium of over 50% to the current stock price of $83. In this note we focus on a comparative analysis of Sarepta Therapeutics stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard.
Timeline of 2020 Coronavirus Crisis:
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 2020, as Covid-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war
Since 3/24/2020: S&P 500 recovers 75% from the lows seen on Mar 23 2020, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.
In contrast, here is how SRPT stock and the broader market fared during the 2007-08 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
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
SRPT and S&P 500 Performance Over 2007-08 Financial Crisis
SRPT stock plummeted from from levels of about $15 in October 2007 (pre-crisis peak for the broader markets) to levels of under $7 in September 2008 before plunging to under $4 in March 2009 (as the markets bottomed out), implying SRPT stock lost 77% from its peak. It staged a strong recovery immediately post the 2008 crisis, to levels of around $9 by January 2010, reflecting a large 143% rise. In comparison, the S&P 500 Index saw a decline of 51% from its peak in September 2007 to its bottom in March 2009, followed by a sharp recovery of 48% by January 2010.
Sarepta’s Top Line Has Expanded While It Is Still Not Profitable
Sarepta’s revenues increased from $155 million in 2017 to $540 million in 2020, led by increased sales of its DMD drugs. The company is currently running into losses, primarily due to higher R&D investments. The company reported a loss of $7.11 per share in 2020, compared to a loss of $0.86 per share in 2017.
Does SRPT Have Sufficient Cash Cushion To Meet Its Obligations?
Sarepta has seen its total debt increase from $431 million in 2017 to $1.1 billion in 2020, while its total cash increased from $1.1 billion to $1.9 billion over the same period. It also generated over $107 million in cash for its operations in 2020. The company has a sufficient liquidity cushion to meet its near term obligations.
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-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, and progress with vaccine development aided stock indices growth.
Early 2021: Multiple countries approved the vaccines for Covid-19, further buoying market sentiment, though new variants of coronavirus resulted in uptick in active cases in several countries.
As the global economy opens up and restrictions are lifted in phases, overall volume of new patient starts will rise. This could be reflected in the form of higher total revenues in 2021, boding well for SRPT stock in the near term. We believe that SRPT stock could rally back to levels of over $130, implying over 50% upside from the current price.
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 43 programs, and SRP-9003, used to treat a type of muscular dystrophy, could potentially be a blockbuster treatment, after the company last week announced positive results from clinical trials. In this note we focus on a comparative analysis of Sarepta Therapeutics stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard. 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-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, and progress with vaccine development aided stock indices growth. | We believe that Sarepta Therapeutics stock (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 a good buying opportunity at the present time. In contrast, here is how SRPT stock and the broader market fared during the 2007-08 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 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) SRPT and S&P 500 Performance Over 2007-08 Financial Crisis SRPT stock plummeted from from levels of about $15 in October 2007 (pre-crisis peak for the broader markets) to levels of under $7 in September 2008 before plunging to under $4 in March 2009 (as the markets bottomed out), implying SRPT stock lost 77% from its peak. 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-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, and progress with vaccine development aided stock indices growth. | Finally, after the January developments, many analysts cut their price targets for SRPT stock, but still the average price estimate stands at $130, implying a potential premium of over 50% to the current stock price of $83. In contrast, here is how SRPT stock and the broader market fared during the 2007-08 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 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) SRPT and S&P 500 Performance Over 2007-08 Financial Crisis SRPT stock plummeted from from levels of about $15 in October 2007 (pre-crisis peak for the broader markets) to levels of under $7 in September 2008 before plunging to under $4 in March 2009 (as the markets bottomed out), implying SRPT stock lost 77% from its peak. 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-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, and progress with vaccine development aided stock indices growth. | Finally, after the January developments, many analysts cut their price targets for SRPT stock, but still the average price estimate stands at $130, implying a potential premium of over 50% to the current stock price of $83. Timeline of 2020 Coronavirus Crisis: 12/12/2019: Coronavirus cases first reported in China 1/31/2020: WHO declares a global health emergency. In contrast, here is how SRPT stock and the broader market fared during the 2007-08 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 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) SRPT and S&P 500 Performance Over 2007-08 Financial Crisis SRPT stock plummeted from from levels of about $15 in October 2007 (pre-crisis peak for the broader markets) to levels of under $7 in September 2008 before plunging to under $4 in March 2009 (as the markets bottomed out), implying SRPT stock lost 77% from its peak. |
32206.0 | 2021-03-23 00:00:00 UTC | Roche test boss says COVID rapid test effectiveness to wane as shots increase | ABT | https://www.nasdaq.com/articles/roche-test-boss-says-covid-rapid-test-effectiveness-to-wane-as-shots-increase-2021-03-23 | nan | nan | Adds details, comment from diagnostics head
ZURICH, March 23 (Reuters) - Rapid COVID-19 tests that have become a key part of nations' COVID-19 detection strategies will grow less effective as more people get vaccinated, Roche ROG.S diagnostics chief Thomas Schinecker said on Tuesday.
Rapid antigen tests are reasonably accurate in detecting COVID-19 infections, especially compared to the flu, since viral loads in respiratory passageways are higher, Schinecker said on an investor call.
But that will likely change as shots are rolled out and prevent severe infections with high viral loads, he said.
This could drive future COVID-19 testing business to more-accurate molecular, or PCR, testing. Roche has rapid antigen tests, via its South Korean partner SD Biosensor Inc, as well as its own PCR tests that compete with diagnostics from rivals including Abbott Laboratories ABT.N.
"If you look at flu, actually rapid antigen testing is not the preferred method because the viral load is not so high and then you actually have issues detecting, you get a lot of false negative," Schinecker said. "As people get vaccinated (for COVID-19), rapid antigen testing will become less relevant simply because of the same reason."
Once the pandemic subsides, the new coronavirus is still expected to cause infections for years to come. Schinecker expected the global PCR testing market for COVID-19 to be "a bit bigger" than existing annual flu testing, now in the low single-digit billions of dollars every year.
(Reporting by John Miller and Paul Arnold; Editing by Michael Shields)
((J.Miller@thomsonreuters.com; +41 58 306 7734; Reuters Messaging: j.miller.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche has rapid antigen tests, via its South Korean partner SD Biosensor Inc, as well as its own PCR tests that compete with diagnostics from rivals including Abbott Laboratories ABT.N. Adds details, comment from diagnostics head ZURICH, March 23 (Reuters) - Rapid COVID-19 tests that have become a key part of nations' COVID-19 detection strategies will grow less effective as more people get vaccinated, Roche ROG.S diagnostics chief Thomas Schinecker said on Tuesday. Rapid antigen tests are reasonably accurate in detecting COVID-19 infections, especially compared to the flu, since viral loads in respiratory passageways are higher, Schinecker said on an investor call. | Roche has rapid antigen tests, via its South Korean partner SD Biosensor Inc, as well as its own PCR tests that compete with diagnostics from rivals including Abbott Laboratories ABT.N. But that will likely change as shots are rolled out and prevent severe infections with high viral loads, he said. "As people get vaccinated (for COVID-19), rapid antigen testing will become less relevant simply because of the same reason." | Roche has rapid antigen tests, via its South Korean partner SD Biosensor Inc, as well as its own PCR tests that compete with diagnostics from rivals including Abbott Laboratories ABT.N. Rapid antigen tests are reasonably accurate in detecting COVID-19 infections, especially compared to the flu, since viral loads in respiratory passageways are higher, Schinecker said on an investor call. Schinecker expected the global PCR testing market for COVID-19 to be "a bit bigger" than existing annual flu testing, now in the low single-digit billions of dollars every year. | Roche has rapid antigen tests, via its South Korean partner SD Biosensor Inc, as well as its own PCR tests that compete with diagnostics from rivals including Abbott Laboratories ABT.N. Adds details, comment from diagnostics head ZURICH, March 23 (Reuters) - Rapid COVID-19 tests that have become a key part of nations' COVID-19 detection strategies will grow less effective as more people get vaccinated, Roche ROG.S diagnostics chief Thomas Schinecker said on Tuesday. Rapid antigen tests are reasonably accurate in detecting COVID-19 infections, especially compared to the flu, since viral loads in respiratory passageways are higher, Schinecker said on an investor call. |
32207.0 | 2021-03-19 00:00:00 UTC | This Is Why Abbott Labs Is a Great Stock to Buy Right Now | ABT | https://www.nasdaq.com/articles/this-is-why-abbott-labs-is-a-great-stock-to-buy-right-now-2021-03-19 | nan | nan | Last year wasn't the best for most medical-device companies because hospitals postponed procedures in order to handle the wave of coronavirus patients. But Abbott Laboratories (NYSE: ABT) managed to flourish despite of this drag on its medical-device business.
The company posted increases in revenue and profit last year, thanks to its other business units -- and its big role in the coronavirus testing field. And the shares climbed 26%.
But it's not too late to get in on this growth story. Let's take a closer look at why right now is a great time to buy Abbott shares.
Image source: Getty Images.
Success through diversification
First, a little background. Abbott's success is linked to its diversification. The company operates four business segments: medical devices, diagnostics, nutrition, and pharmaceuticals. In times of trouble -- like the pandemic -- growth in one can compensate for stagnation in another.
Over time, Abbott has increased annual profit and revenue. And the share price has climbed, too.
ABT Net Income (Annual) data by YCharts.
The company's annual net income and net sales climbed 21.9% and 8.5%, respectively, last year. And in the fourth quarter, Abbott reported $2.4 billion in coronavirus diagnostics sales. Last year, the U.S. Food and Drug Administration (FDA) authorized seven of the company's tests. These include tests for coronavirus detection, as well as antibody tests to determine whether a person was previously infected.
Here's why today is a great time to invest in Abbott. The coronavirus diagnostics story is just beginning. And at the same time, medical-device sales are set to rebound as many hospitals catch up on postponed procedures and resume normal operations.
I'm optimistic about Abbott's COVID-19 testing prospects for a few reasons. First, the U.S. government is expanding testing efforts throughout the country. Last month, the U.S. said it would invest $650 million to increase testing in schools and settings such as homeless shelters. The country also is spending $815 million to boost manufacturing of testing supplies and raw materials. These efforts will clearly benefit players in the coronavirus diagnostics field.
Quick, cheap, and portable
One of Abbott's newer tests also is a reason to expect revenue growth. I'm talking about the BinaxNOW test, which is cheap and portable. It's also available in two versions -- one for professional use and one for at-home use.
Abbott launched the professional test in late August and the at-home one in December. It delivered 150 million BinaxNOW tests to the government in January, and expects to fulfill the government's order for an additional 30 million tests by the end of this month.
And the innovation continues: This month the FDA authorized an Abbott test to identify and differentiate coronavirus infection, two types of flu, and respiratory syncytial virus. And Abbott recently created a global scientific network to help prevent pandemics. Abbott's role? Developing tests once Abbott and partners identify potential threats.
As for medical devices, Abbott predicts "steady improvements" in cardiovascular and neuromodulation. And product approvals from 2020 should bear fruit this year. Two examples: The FDA cleared an updated version of one of Abbott's star products, the FreeStyle Libre continuous glucose monitoring system. And Abbott won European clearance for MitraClip G4, an update of the world's leading minimally invasive device for mitral valve repair.
Overall, Abbott expects a strong year. The company forecasts earnings per share to rise 35% to $5.
Abbott's shares are up 7% this year. But they've slipped more than 8% over the past month. And this year, the shares are trading at less than 25 times forward earnings estimates. That's the lowest by this measure since July.
Here's some math. What does this price level plus prospects for Abbott's COVID-19 testing and medical-device businesses equal? The answer: A buying opportunity.
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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. | But Abbott Laboratories (NYSE: ABT) managed to flourish despite of this drag on its medical-device business. ABT Net Income (Annual) data by YCharts. And the innovation continues: This month the FDA authorized an Abbott test to identify and differentiate coronavirus infection, two types of flu, and respiratory syncytial virus. | But Abbott Laboratories (NYSE: ABT) managed to flourish despite of this drag on its medical-device business. ABT Net Income (Annual) data by YCharts. Last year wasn't the best for most medical-device companies because hospitals postponed procedures in order to handle the wave of coronavirus patients. | But Abbott Laboratories (NYSE: ABT) managed to flourish despite of this drag on its medical-device business. ABT Net Income (Annual) data by YCharts. Quick, cheap, and portable One of Abbott's newer tests also is a reason to expect revenue growth. | But Abbott Laboratories (NYSE: ABT) managed to flourish despite of this drag on its medical-device business. ABT Net Income (Annual) data by YCharts. The company posted increases in revenue and profit last year, thanks to its other business units -- and its big role in the coronavirus testing field. |
32208.0 | 2021-03-19 00:00:00 UTC | Here's Why Medtronic Is A Better Pick Over Intuitive Surgical Stock | ABT | https://www.nasdaq.com/articles/heres-why-medtronic-is-a-better-pick-over-intuitive-surgical-stock-2021-03-19 | nan | nan | We think that Medtronic (NYSE:MDT) currently is a better pick compared to Intuitive Surgical (NASDAQ:ISRG). MDT stock trades at about 5.7x trailing revenues, compared to around 18.5x for ISRG. Does this gap in Intuitive Surgical’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 Medtronic. 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.
Intuitive Surgical’s robotic surgical platforms have a limited base of around 6,000 units currently and it has seen strong growth over the recent years, given the limited competition. However, Medtronic entered into the robotic surgical systems business with its acquisition of Mazor Robotics in December 2018. Now, in December 2020, Medtronic announced that the U.S. FDA has cleared the use of its high speed drills with the Mazor Robotic Guidance System, implying Medtronic will now offer fully integrated solutions from implants and imaging to robotic assisted surgery, primarily for spine, while it is also developing another robotic system and it will likely aim for different types of procedures. We understand that the market for robotic assisted surgeries is huge, but for a company like Medtronic, it shouldn’t be tough to gain some of the market share from Intuitive Surgical, given Medtronic’s size and its strong global reach. 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 Medtronic vs. Intuitive Surgical: MDT stock looks undervalued compared to ISRG stock has more details on this. Parts of the analysis are summarized below.
1. Revenue Growth
Between 2017 and 2020, Medtronic’s revenues declined by about 3% from $29.7 billion in 2017 to $28.9 billion in 2020 (Medtronic’s fiscal year ends in April). Looking at the last twelve month period, revenues have dropped further to $27.9 billion, primarily due to the impact of the pandemic on its business. Looking at Intuitive Surgical, total revenue grew a solid 42% from $3.1 billion in 2017 to $4.4 billion in 2020. Intuitive Surgical’s revenue growth has been driven by expansion of its da Vinci robotic surgical platforms base, and higher demand for consumables and accessories to go with the systems.
2. Operating Income
Medtronic’s operating income declined from $5.4 billion in 2017 to $4.8 billion in 2020, due to a drop in revenues and margins contracting from 18% in 2017 to 17% in 2020. However, the margins plunged to 11% over the last twelve month period due to increased costs and limited demand for its products during the pandemic. Looking at Intuitive Surgical, the operating income declined from $1.1 billion in 2018 to $1.0 billion in 2020, as revenue growth was more than offset by margin contraction. Intuitive Surgical’s operating margins plunged 1000 bps from 34% to 24% between 2017 and 2020, partly due to increased operating costs during the pandemic, as well as higher R&D investments.
The Net of It All
There is no denying that Intuitive Surgical is a great company with a great product, and strong fundamentals, evident from its performance over the recent years. Intuitive Surgical’s revenue growth, operating income, and operating margins, all compare favorably with Medtronic over the recent years, and this has been rewarded by the investors in the form of a high multiple that ISRG stock trades at. However, as we look forward, Intuitive Surgical will see increased competition in the robotic assisted surgeries market, with Medtronic being one of the key players. While the market itself has a huge potential for multiple players to thrive, an increased competition will weigh on the multiple that ISRG stock currently enjoys, in our view. As such, we believe that the valuation gap between Medtronic and Intuitive Surgical will narrow going forward and MDT stock will offer better returns for long-term investors.
While MDT 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.
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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 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. However, as we look forward, Intuitive Surgical will see increased competition in the robotic assisted surgeries market, with Medtronic being one of the key players. As such, we believe that the valuation gap between Medtronic and Intuitive Surgical will narrow going forward and MDT stock will offer better returns for long-term investors. | Operating Income Medtronic’s operating income declined from $5.4 billion in 2017 to $4.8 billion in 2020, due to a drop in revenues and margins contracting from 18% in 2017 to 17% in 2020. Intuitive Surgical’s revenue growth, operating income, and operating margins, all compare favorably with Medtronic over the recent years, and this has been rewarded by the investors in the form of a high multiple that ISRG stock trades at. However, as we look forward, Intuitive Surgical will see increased competition in the robotic assisted surgeries market, with Medtronic being one of the key players. | We understand that the market for robotic assisted surgeries is huge, but for a company like Medtronic, it shouldn’t be tough to gain some of the market share from Intuitive Surgical, given Medtronic’s size and its strong global reach. Looking at Intuitive Surgical, the operating income declined from $1.1 billion in 2018 to $1.0 billion in 2020, as revenue growth was more than offset by margin contraction. Intuitive Surgical’s revenue growth, operating income, and operating margins, all compare favorably with Medtronic over the recent years, and this has been rewarded by the investors in the form of a high multiple that ISRG stock trades at. | Intuitive Surgical’s operating margins plunged 1000 bps from 34% to 24% between 2017 and 2020, partly due to increased operating costs during the pandemic, as well as higher R&D investments. Intuitive Surgical’s revenue growth, operating income, and operating margins, all compare favorably with Medtronic over the recent years, and this has been rewarded by the investors in the form of a high multiple that ISRG stock trades at. As such, we believe that the valuation gap between Medtronic and Intuitive Surgical will narrow going forward and MDT stock will offer better returns for long-term investors. |
32209.0 | 2021-03-18 00:00:00 UTC | November 19th Options Now Available For Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/november-19th-options-now-available-for-abbott-laboratories-abt-2021-03-18 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the November 19th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new November 19th 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 $7.45. 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 $107.55 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $118.14/share today.
Because the $115.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.48% return on the cash commitment, or 9.61% 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 $7.00. If an investor was to purchase shares of ABT stock at the current price level of $118.14/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 7.50% if the stock gets called away at the November 19th 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 5.93% boost of extra return to the investor, or 8.79% 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 $118.14) to be 33%. 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 begin trading today, for the November 19th 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 begin trading today, for the November 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new November 19th 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 begin trading today, for the November 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new November 19th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new November 19th 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 begin trading today, for the November 19th expiration. |
32210.0 | 2021-03-18 00:00:00 UTC | UPRO, JNJ, ABT, CVX: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/upro-jnj-abt-cvx%3A-etf-outflow-alert-2021-03-18 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $94.9 million dollar outflow -- that's a 4.5% decrease week over week (from 23,200,000 to 22,150,000). Among the largest underlying components of UPRO, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.3%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is lower by about 1.3%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average:
Looking at the chart above, UPRO's low point in its 52 week range is $17.51 per share, with $90.95 as the 52 week high point — that compares with a last trade of $88.83. 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 UPRO, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.3%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $94.9 million dollar outflow -- that's a 4.5% decrease week over week (from 23,200,000 to 22,150,000). 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 UPRO, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.3%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is lower by about 1.3%. For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $17.51 per share, with $90.95 as the 52 week high point — that compares with a last trade of $88.83. 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 UPRO, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.3%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $94.9 million dollar outflow -- that's a 4.5% decrease week over week (from 23,200,000 to 22,150,000). For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $17.51 per share, with $90.95 as the 52 week high point — that compares with a last trade of $88.83. | Among the largest underlying components of UPRO, in trading today Johnson & Johnson (Symbol: JNJ) is down about 0.3%, Abbott Laboratories (Symbol: ABT) is off about 0.1%, and Chevron Corporation (Symbol: CVX) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares UltraPro S&P500 (Symbol: UPRO) where we have detected an approximate $94.9 million dollar outflow -- that's a 4.5% decrease week over week (from 23,200,000 to 22,150,000). For a complete list of holdings, visit the UPRO Holdings page » The chart below shows the one year price performance of UPRO, versus its 200 day moving average: Looking at the chart above, UPRO's low point in its 52 week range is $17.51 per share, with $90.95 as the 52 week high point — that compares with a last trade of $88.83. |
32211.0 | 2021-03-17 00:00:00 UTC | 2 Hot Growth Stocks That Could Be Millionaire-Makers | ABT | https://www.nasdaq.com/articles/2-hot-growth-stocks-that-could-be-millionaire-makers-2021-03-17 | nan | nan | The television show Who Wants to Be a Millionaire? features contestants who can win up to a million dollars -- in a matter of hours -- by answering a series of trivia questions. Earning a million dollars by investing in stocks isn't usually as quick as that, but it is possible. To do so, you need lots of patience and the ability to pick quality stocks.
The former is necessary to implement a buy-and-hold strategy successfully. And choosing the right stocks is obviously a prerequisite: Shares of poor companies will deliver below-average returns (at best) in the long run.
Let's take a look at two companies that have what it takes to shatter the broader market for many years to come: Tandem Diabetes Care (NASDAQ: TNDM) and Pinterest (NYSE: PINS). Here's why both of these stocks could be millionaire-makers, or at least could vastly outperform the market in the long run.
TNDM data by YCharts
1. Tandem Diabetes Care
The percentage of the U.S. population with diabetes has been increasing in the past few decades. In 1958, this group made up just 0.93% of the country, but by 2018, that number had risen to 10%. If this trend continues, an estimated 33% of the population could have diabetes by 2050. There are scores of companies that help patients with this chronic health condition manage their illness.
Tandem Diabetes does so by providing insulin pumps, an important tool in a diabetic patient's arsenal. The company's t:slim X2 insulin pump -- sales of which generate the bulk of its revenue -- can be used as a standalone device or in combination with DexCom's G6 continuous glucose monitoring (CGM) system. This helps patients monitor and automatically adjust insulin levels for an easier and more efficient way to manage their diabetes.
For evidence of the t:slim X2 pump's popularity, consider that Tandem Diabetes ran a customer survey last year during which its crown jewel had a satisfaction score of more than 90%. That said, consumers best express their approval for a product by spending their money on it -- and on that front, the results are also impressive.
During the fourth quarter ending Dec. 31, the company recorded sales of $168.1 million, representing a 55% year-over-year increase. Tandem Diabetes Care shipped 32,685 pumps during the quarter, 67% higher than the year-ago period. For the full fiscal year 2020, Tandem's sales jumped by 38% year over year to $498.8 million.
Image source: Getty Images.
Tandem is well-positioned to keep growing. Management estimates that only 35% of its addressable U.S. market (type 1 diabetes patients) use pumps, whereas the rest still rely on pesky and painful multiple daily injections (MDIs). There is an even bigger opportunity abroad; the company estimates that in its core international markets, just 400,000 of the 4 million type 1 diabetes patients eligible for pumps have made the switch.
According to CEO John Sheridan, "Since launching outside the United States just two years ago, we now have crossed approximately 45,000 people using the Tandem pump in nearly 20 different countries. By comparison, it took us more than four years to reach this level of installed base domestically."
Tandem Diabetes plans on having 500,000 worldwide customers in its installed base by 2024. For context, the company said it had over 200,000 customers in its ecosystem at the end of 2020. And management has several ways to broaden its customer base in the long run.
Last year, the company announced a partnership with Abbott Laboratories -- a notable entity in the diabetes care devices segment. The two businesses are looking to develop solutions to integrate Tandem's insulin delivery systems with Abbott's CGM technology. This project, if successful, would expand Tandem's pool of potential clients.
With solid long-term growth opportunities at its disposal, this healthcare company looks like a potential millionaire-maker stock, and certainly one that investors shouldn't ignore.
2. Pinterest
Facebook and Twitter may be the most famous names in social media, but that doesn't mean there's not room for Pinterest. This company isn't just a pale copy of competing platforms, either; Pinterest has a more visual flavor than its peers. The company helps users discover and generate ideas thanks to "pins," which are Pinterest's version of bookmarks.
This business model is clearly working wonders for the company -- it's hard to find an important metric in the financials that hasn't improved in recent years. During the fourth quarter of its fiscal 2020, which ended Dec. 31, the company's revenue jumped by about 76% year over year to $705.6 million.
Pinterest had 459 million monthly active users at the end of the year, representing an increase of 37% compared to the previous fiscal year. The company's average revenue per user for Q4 grew 29% year over year to $1.57.
Pinterest's net income for the quarter was $207.8 million, a big leap up from the net loss of $35.7 million it recorded during the fourth quarter of the previous fiscal year. There are good reasons to think Pinterest has a lot of growth left in its engine. The company's strategy can be nicely summed up in the following quote from CEO Ben Silbermann:
People need a place to dream and be optimistic, away from politics and bad news, they need a space to focus on themselves based on what they want to do, not what other people will like. And businesses want to reach people early in the planning process before they decide what to buy for their lives.
Image source: Getty Images.
By providing "a place to dream," Pinterest is betting that it can attract more users to its platform, then keep them coming back for more by continually improving its website. For instance, the company has bettered its search functionality, beefed up its recommendations, introduced more content on its platform, etc.
And on the other side, Pinterest is making it easier for companies to advertise on its platform, as well. In October, management announced a suite of tools including a way for merchants to update their catalogs more easily on the website, a storefront profile for merchants that helps facilitate discovery, and new analytical tools to better gauge customer conversion metrics.
According to research firm Mordor Intelligence, the digital advertising space is projected to reach $982.8 billion in 2025, up from $304 billion in 2019, expanding at a compound annual growth rate (CAGR) of 21.6% in this period. And it won't stop there.
In an increasingly digital world, online ads represent a juicy long-term trend. There are many players in this segment, but Pinterest has carved out a niche for itself. In short, Pinterest certainly has what it takes to shatter the market in the long run.
10 stocks we like better than Tandem Diabetes Care
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's t:slim X2 insulin pump -- sales of which generate the bulk of its revenue -- can be used as a standalone device or in combination with DexCom's G6 continuous glucose monitoring (CGM) system. Management estimates that only 35% of its addressable U.S. market (type 1 diabetes patients) use pumps, whereas the rest still rely on pesky and painful multiple daily injections (MDIs). There is an even bigger opportunity abroad; the company estimates that in its core international markets, just 400,000 of the 4 million type 1 diabetes patients eligible for pumps have made the switch. | Let's take a look at two companies that have what it takes to shatter the broader market for many years to come: Tandem Diabetes Care (NASDAQ: TNDM) and Pinterest (NYSE: PINS). During the fourth quarter ending Dec. 31, the company recorded sales of $168.1 million, representing a 55% year-over-year increase. The Motley Fool owns shares of and recommends DexCom, Facebook, Pinterest, and Twitter. | Let's take a look at two companies that have what it takes to shatter the broader market for many years to come: Tandem Diabetes Care (NASDAQ: TNDM) and Pinterest (NYSE: PINS). For the full fiscal year 2020, Tandem's sales jumped by 38% year over year to $498.8 million. During the fourth quarter of its fiscal 2020, which ended Dec. 31, the company's revenue jumped by about 76% year over year to $705.6 million. | Let's take a look at two companies that have what it takes to shatter the broader market for many years to come: Tandem Diabetes Care (NASDAQ: TNDM) and Pinterest (NYSE: PINS). Tandem Diabetes does so by providing insulin pumps, an important tool in a diabetic patient's arsenal. The Motley Fool owns shares of and recommends DexCom, Facebook, Pinterest, and Twitter. |
32212.0 | 2021-03-16 00:00:00 UTC | Fonterra to sell China JV farms, Beingmate stake as profit jumps 43% | ABT | https://www.nasdaq.com/articles/fonterra-to-sell-china-jv-farms-beingmate-stake-as-profit-jumps-43-2021-03-16 | nan | nan | Company warns of margin pressure in second half
Reaffirms full-year earnings forecast
New throughout, adds details on China reorganisation, analyst comment
March 17 (Reuters) - New Zealand's Fonterra FCG.NZ said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate 002570.SZ as it looks to move its focus from Beijing and prioritise domestic operations.
Fonterra also posted half-year results, with a 43% surge in adjusted profit due to robust demand from China and firmer global dairy prices.
The world's biggest dairy exporter has been shifting its focus back home since 2019, when it halted an ambitious overseas expansion plan that drew sharp criticism from the 10,000 plus farmers who make up its cooperative.
The company began selling down its stake in Beingmate that year. It said on Wednesday its shareholding stood at 2.82%, and would be completely sold off before the current financial year ends.
Chief Executive Miles Hurrell said Greater China remains one of the company's most important strategic markets.
"I think it is being seen as totally in line with what their strategy has been under Hurrell, and that's what farmers have been wanting as well," said Dave Schaper, an investment advisor with Forsyth Barr.
"They have really concentrated down on the core business so the divestment makes sense."
Fonterra owns a farming hub in China's Shandong province along with its joint venture partner, Abbott Laboratories ABT.N.
Normalised profit after tax was NZ$418 million ($300.5 million) for the six months ended Jan. 31, up from NZ$293 million a year earlier, as earnings before interest and tax from Greater China rose 38%.
The company warned rising raw milk prices will pressure sales margins. Global dairy prices have surged more than 36% from mid-June last year.
Fonterra declared an interim dividend of 5 New Zealand cents per share, and reiterated its full-year forecast for normalised earnings of between 25 and 35 New Zealand cents per share.
($1 = 1.3761 New Zealand dollars)
(Reporting by Soumyajit Saha and Shashwat Awasthi in Bengaluru; Editing by Shinjini Ganguli, Sriraj Kalluvila and David Gregorio)
((Shashwat.Awasthi@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. | Fonterra owns a farming hub in China's Shandong province along with its joint venture partner, Abbott Laboratories ABT.N. Company warns of margin pressure in second half Reaffirms full-year earnings forecast New throughout, adds details on China reorganisation, analyst comment March 17 (Reuters) - New Zealand's Fonterra FCG.NZ said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate 002570.SZ as it looks to move its focus from Beijing and prioritise domestic operations. Fonterra also posted half-year results, with a 43% surge in adjusted profit due to robust demand from China and firmer global dairy prices. | Fonterra owns a farming hub in China's Shandong province along with its joint venture partner, Abbott Laboratories ABT.N. Company warns of margin pressure in second half Reaffirms full-year earnings forecast New throughout, adds details on China reorganisation, analyst comment March 17 (Reuters) - New Zealand's Fonterra FCG.NZ said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate 002570.SZ as it looks to move its focus from Beijing and prioritise domestic operations. Normalised profit after tax was NZ$418 million ($300.5 million) for the six months ended Jan. 31, up from NZ$293 million a year earlier, as earnings before interest and tax from Greater China rose 38%. | Fonterra owns a farming hub in China's Shandong province along with its joint venture partner, Abbott Laboratories ABT.N. Company warns of margin pressure in second half Reaffirms full-year earnings forecast New throughout, adds details on China reorganisation, analyst comment March 17 (Reuters) - New Zealand's Fonterra FCG.NZ said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate 002570.SZ as it looks to move its focus from Beijing and prioritise domestic operations. Fonterra also posted half-year results, with a 43% surge in adjusted profit due to robust demand from China and firmer global dairy prices. | Fonterra owns a farming hub in China's Shandong province along with its joint venture partner, Abbott Laboratories ABT.N. Company warns of margin pressure in second half Reaffirms full-year earnings forecast New throughout, adds details on China reorganisation, analyst comment March 17 (Reuters) - New Zealand's Fonterra FCG.NZ said on Wednesday it will sell its joint venture farms in China and its remaining stake in infant formula maker Beingmate 002570.SZ as it looks to move its focus from Beijing and prioritise domestic operations. Fonterra also posted half-year results, with a 43% surge in adjusted profit due to robust demand from China and firmer global dairy prices. |
32213.0 | 2021-03-16 00:00:00 UTC | These 3 Zero-Effort Stocks Could Make You Rich | ABT | https://www.nasdaq.com/articles/these-3-zero-effort-stocks-could-make-you-rich-2021-03-16 | nan | nan | If you're hoping to make a fortune, young fast-growth companies are often the ticket. But some come with a big dose of risk. And that means you have to watch them very closely. For the more cautious investor, there's another path to riches. It involves investing in stocks with a solid track record of profit, revenue, and stock price gains.
Here, I'll talk about three that fit the bill: an online retail giant, a healthcare company leading in COVID-19 diagnostics, and an apparel retailer inspired by yoga. These companies are so strong they even managed to perform well throughout the pandemic. Who are these stock market stars? Read on.
Image source: Getty Images.
Amazon
Amazon.com's (NASDAQ: AMZN) annual profit has been climbing since 2015. And annual revenue has been rising for the past decade. Share price followed.
AMZN Revenue (Annual) data by YCharts
The company benefited last year as consumers opted for online shopping. Its offering of essentials, discretionary items, and even entertainment through its Prime subscription program meant there was something for everyone. As a result, annual sales and profit climbed 38% and 84%, respectively. Amazon Web Services represents a key part of the picture. The cloud computing business generated more than $45 billion in revenue -- and accounted for about 60% of the company's operating income last year.
Those are steady, tried and true sources of revenue. But Amazon hasn't stopped there. The company recently launched Amazon Pharmacy in the U.S. Shoppers can buy their medication online -- and Prime members even get free two-day delivery. Amazon also is expanding its Amazon Fresh grocery stores. Bloomberg reports Amazon just opened the 11th store and aims for at least 28 more. So, with Amazon, you get steady and secure businesses and growth into new areas. That's a winning combination.
Abbott
Abbott Laboratories (NYSE: ABT) became a leader in COVID-19 testing as the U.S. Food and Drug Administration authorized several of its diagnostics last year. The company reported $2.4 billion in coronavirus diagnostics sales in the fourth quarter.
But Abbott doesn't rely on coronavirus testing or even general diagnostics alone. The company has three other businesses: medical devices, nutrition, and pharmaceuticals. Only medical devices didn't deliver sales growth last year. But for a logical reason: The delay of medical procedures due to the pandemic hurt that business.
Abbott is optimistic about the months to come though. The company predicts a 35% increase in earnings per share to $5 for the full year 2021. Abbott's likely to meet the goal. First, the government is expanding COVID-19 testing. Abbott surely will benefit. And second, as the pandemic eases, hospitals will catch up on delayed procedures -- and that translates into more medical device sales for Abbott.
Over the past five years, Abbott's grown profit and sales. And that's driven a 188% share price gain over the period. This track record and Abbott's forecast are clues the company has what it takes to continue growth over the long term.
Image source: Getty Images.
Lululemon
lululemon athletica (NASDAQ: LULU) shares are down about 12% so far this year. But this looks like a buying opportunity to me. Here's why: Even though lululemon has grown annual revenue for a decade and annual profit since 2018, the best is yet to come.
The maker of yoga-inspired clothing actually saw sales slump for a short period of time during the pandemic. After a sales decline in the first quarter, lululemon returned to growth in the following two. And the company said it expects fourth-quarter revenue and earnings to be at the high end of its forecast.
How did lululemon excel? Thanks to its brand strength and its digital platform. The company stayed connected with fans during the crisis through its online community. There, fans find yoga tips and workouts. And fans followed through by shopping online. Online sales grew 157% and 93% in the past two quarters, respectively.
How will lululemon excel in the future? Through its "Power of Three" plan. The company aims to double revenue of the men's line, double digital revenue, and quadruple international revenue -- all by 2023. Considering past performance and lululemon's strength through the pandemic, I'm optimistic the company can meet its goals. So, I wouldn't be surprised if in the years to come this stock equals riches for investors who hold on for the long term.
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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. The Motley Fool recommends Lululemon Athletica and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 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 Abbott Laboratories (NYSE: ABT) became a leader in COVID-19 testing as the U.S. Food and Drug Administration authorized several of its diagnostics last year. AMZN Revenue (Annual) data by YCharts The company benefited last year as consumers opted for online shopping. Find out why Amazon is one of the 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. | Abbott Abbott Laboratories (NYSE: ABT) became a leader in COVID-19 testing as the U.S. Food and Drug Administration authorized several of its diagnostics last year. It involves investing in stocks with a solid track record of profit, revenue, and stock price gains. Considering past performance and lululemon's strength through the pandemic, I'm optimistic the company can meet its goals. | Abbott Abbott Laboratories (NYSE: ABT) became a leader in COVID-19 testing as the U.S. Food and Drug Administration authorized several of its diagnostics last year. The company aims to double revenue of the men's line, double digital revenue, and quadruple international revenue -- all by 2023. Find out why Amazon is one of the 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. | Abbott Abbott Laboratories (NYSE: ABT) became a leader in COVID-19 testing as the U.S. Food and Drug Administration authorized several of its diagnostics last year. Amazon also is expanding its Amazon Fresh grocery stores. Over the past five years, Abbott's grown profit and sales. |
32214.0 | 2021-03-15 00:00:00 UTC | EXCLUSIVE-Colombian softgel maker Procaps in talks to go public on Nasdaq -sources | ABT | https://www.nasdaq.com/articles/exclusive-colombian-softgel-maker-procaps-in-talks-to-go-public-on-nasdaq-sources-2021-03 | nan | nan | By Joshua Franklin
March 15 (Reuters) - Colombian softgel maker Procaps S.A.S. is in talks to go public on Nasdaq through a merger with U.S. blank-check company Union Acquisition Corp II LATN.O in a deal which would value it at more than $1 billion, people familiar with the matter said on Monday.
Union Acquisition Corp II is in the process of engaging with potential investors to raise a $100 million private investment in public equity, or PIPE, which would provide additional funding to Procaps, the sources said.
These funds would be used in addition to the $200 million Union Acquisition Corp II raised in October 2019 through an initial public offering (IPO) on Nasdaq.
A deal with Procaps could be announced as soon as this month, the sources said. The sources, who cautioned that a deal could still fail to materialize, requested anonymity to discuss the deal.
A spokesman for Union Acquisition Corp II declined to comment. Procaps did not immediately respond to requests for comment.
Procaps was founded in 1977 and is based in Barranquilla, Colombia. It researches how to deliver medicines to patients through different forms, like softgels, chewable medicines, or by coating pills to make them taste more pleasant to patients.
Through the merger Union Acquisition Corp II, there is scope to grow Procaps organically and through acquisitions, one of the sources said.
The global softgel capsule market is seen growing to $3.3 billion by 2023 from $2.4 billion in 2017, according to a study by 360 Market Updates.
Procaps' investors include the World Bank's International Finance Corporation (IFC) and Alejandro Weinstein, who was previously CEO of generic drugmaker CFR Pharmaceuticals SA which was acquired by Abbott Laboratories ABT.N in 2014.
Union Acquisition Corp II is the second so-called special purpose acquisition company (SPAC) led by Kyle Bransfield. SPACs are shell companies which raise funds in an initial public offering with the goal of merging with an unidentified private company.
For the company being acquired, the merger is an alternative way to go public over a traditional IPO. SPACs emerged last year as one of the most popular investment vehicles on Wall Street.
ANALYSIS-Wall Street's IPO enemies ready one-two punch
(Reporting by Joshua Franklin in Boston Additional reporting by Rebecca Spalding in New York and Julia Symmes Cobb in Bogota; Editing by Lisa Shumaker)
((joshua.franklin@thomsonreuters.com; +1 646-223-6356; Reuters Messaging: joshua.franklin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Procaps' investors include the World Bank's International Finance Corporation (IFC) and Alejandro Weinstein, who was previously CEO of generic drugmaker CFR Pharmaceuticals SA which was acquired by Abbott Laboratories ABT.N in 2014. is in talks to go public on Nasdaq through a merger with U.S. blank-check company Union Acquisition Corp II LATN.O in a deal which would value it at more than $1 billion, people familiar with the matter said on Monday. Union Acquisition Corp II is in the process of engaging with potential investors to raise a $100 million private investment in public equity, or PIPE, which would provide additional funding to Procaps, the sources said. | Procaps' investors include the World Bank's International Finance Corporation (IFC) and Alejandro Weinstein, who was previously CEO of generic drugmaker CFR Pharmaceuticals SA which was acquired by Abbott Laboratories ABT.N in 2014. is in talks to go public on Nasdaq through a merger with U.S. blank-check company Union Acquisition Corp II LATN.O in a deal which would value it at more than $1 billion, people familiar with the matter said on Monday. These funds would be used in addition to the $200 million Union Acquisition Corp II raised in October 2019 through an initial public offering (IPO) on Nasdaq. | Procaps' investors include the World Bank's International Finance Corporation (IFC) and Alejandro Weinstein, who was previously CEO of generic drugmaker CFR Pharmaceuticals SA which was acquired by Abbott Laboratories ABT.N in 2014. is in talks to go public on Nasdaq through a merger with U.S. blank-check company Union Acquisition Corp II LATN.O in a deal which would value it at more than $1 billion, people familiar with the matter said on Monday. Union Acquisition Corp II is in the process of engaging with potential investors to raise a $100 million private investment in public equity, or PIPE, which would provide additional funding to Procaps, the sources said. | Procaps' investors include the World Bank's International Finance Corporation (IFC) and Alejandro Weinstein, who was previously CEO of generic drugmaker CFR Pharmaceuticals SA which was acquired by Abbott Laboratories ABT.N in 2014. is in talks to go public on Nasdaq through a merger with U.S. blank-check company Union Acquisition Corp II LATN.O in a deal which would value it at more than $1 billion, people familiar with the matter said on Monday. These funds would be used in addition to the $200 million Union Acquisition Corp II raised in October 2019 through an initial public offering (IPO) on Nasdaq. |
32215.0 | 2021-03-11 00:00:00 UTC | Interesting ABT Put And Call Options For April 30th | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-april-30th-2021-03-11 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 30th 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 $2.89. 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 $112.11 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $115.98/share today.
Because the $115.00 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 2.51% return on the cash commitment, or 18.36% 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 $117.00 strike price has a current bid of $3.95. If an investor was to purchase shares of ABT stock at the current price level of $115.98/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $117.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.29% if the stock gets called away at the April 30th 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 $117.00 strike highlighted in red:
Considering the fact that the $117.00 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 3.41% boost of extra return to the investor, or 24.88% 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 $115.98) to be 37%. 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 $117.00 strike highlighted in red: Considering the fact that the $117.00 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 April 30th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $117.00 strike highlighted in red: Considering the fact that the $117.00 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 30th 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 $117.00 strike highlighted in red: Considering the fact that the $117.00 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 30th 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 $117.00 strike highlighted in red: Considering the fact that the $117.00 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 April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 30th contracts and identified one put and one call contract of particular interest. |
32216.0 | 2021-03-11 00:00:00 UTC | Abbott Pandemic Defense Coalition Formed For Early Detection Of Future Pandemic Threats | ABT | https://www.nasdaq.com/articles/abbott-pandemic-defense-coalition-formed-for-early-detection-of-future-pandemic-threats | nan | nan | (RTTNews) - Abbott (ABT) said that it has formed Abbott Pandemic Defense Coalition, which is a first-of-its-kind global scientific network dedicated to the early detection of, and rapid response to, future pandemic threats.
Abbott noted that the coalition builds on its decades of leadership in virus surveillance and helps to analyze virus samples for unknown diseases and detect mutations and variants including for COVID-19.
Abbott said it is bringing together global collaborators specializing in identification of unknown diseases, surveillance, virus sample collection, testing and sequencing.
The company stated that it will rapidly develop tests that can be used to help identify, isolate and contain outbreaks when potential new virus threats are identified.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said that it has formed Abbott Pandemic Defense Coalition, which is a first-of-its-kind global scientific network dedicated to the early detection of, and rapid response to, future pandemic threats. Abbott noted that the coalition builds on its decades of leadership in virus surveillance and helps to analyze virus samples for unknown diseases and detect mutations and variants including for COVID-19. Abbott said it is bringing together global collaborators specializing in identification of unknown diseases, surveillance, virus sample collection, testing and sequencing. | (RTTNews) - Abbott (ABT) said that it has formed Abbott Pandemic Defense Coalition, which is a first-of-its-kind global scientific network dedicated to the early detection of, and rapid response to, future pandemic threats. Abbott noted that the coalition builds on its decades of leadership in virus surveillance and helps to analyze virus samples for unknown diseases and detect mutations and variants including for COVID-19. Abbott said it is bringing together global collaborators specializing in identification of unknown diseases, surveillance, virus sample collection, testing and sequencing. | (RTTNews) - Abbott (ABT) said that it has formed Abbott Pandemic Defense Coalition, which is a first-of-its-kind global scientific network dedicated to the early detection of, and rapid response to, future pandemic threats. Abbott noted that the coalition builds on its decades of leadership in virus surveillance and helps to analyze virus samples for unknown diseases and detect mutations and variants including for COVID-19. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said that it has formed Abbott Pandemic Defense Coalition, which is a first-of-its-kind global scientific network dedicated to the early detection of, and rapid response to, future pandemic threats. Abbott noted that the coalition builds on its decades of leadership in virus surveillance and helps to analyze virus samples for unknown diseases and detect mutations and variants including for COVID-19. Abbott said it is bringing together global collaborators specializing in identification of unknown diseases, surveillance, virus sample collection, testing and sequencing. |
32217.0 | 2021-03-09 00:00:00 UTC | IHI, ABT, TMO, DHR: Large Outflows Detected at ETF | ABT | https://www.nasdaq.com/articles/ihi-abt-tmo-dhr%3A-large-outflows-detected-at-etf-2021-03-09 | 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 U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $301.9 million dollar outflow -- that's a 3.6% decrease week over week (from 26,350,000 to 25,400,000). Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 4.3%, and Danaher Corp (Symbol: DHR) is higher by about 2.5%. For a complete list of holdings, visit the IHI Holdings page » The chart below shows the one year price performance of IHI, versus its 200 day moving average:
Looking at the chart above, IHI's low point in its 52 week range is $183.25 per share, with $351.615 as the 52 week high point — that compares with a last trade of $326.52. 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 IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 4.3%, and Danaher Corp (Symbol: DHR) is higher by about 2.5%. For a complete list of holdings, visit the IHI Holdings page » The chart below shows the one year price performance of IHI, versus its 200 day moving average: Looking at the chart above, IHI's low point in its 52 week range is $183.25 per share, with $351.615 as the 52 week high point — that compares with a last trade of $326.52. 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 IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 4.3%, and Danaher Corp (Symbol: DHR) is higher by about 2.5%. For a complete list of holdings, visit the IHI Holdings page » The chart below shows the one year price performance of IHI, versus its 200 day moving average: Looking at the chart above, IHI's low point in its 52 week range is $183.25 per share, with $351.615 as the 52 week high point — that compares with a last trade of $326.52. 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 IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 4.3%, and Danaher Corp (Symbol: DHR) is higher by about 2.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $301.9 million dollar outflow -- that's a 3.6% decrease week over week (from 26,350,000 to 25,400,000). For a complete list of holdings, visit the IHI Holdings page » The chart below shows the one year price performance of IHI, versus its 200 day moving average: Looking at the chart above, IHI's low point in its 52 week range is $183.25 per share, with $351.615 as the 52 week high point — that compares with a last trade of $326.52. | Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 3%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 4.3%, and Danaher Corp (Symbol: DHR) is higher by about 2.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $301.9 million dollar outflow -- that's a 3.6% decrease week over week (from 26,350,000 to 25,400,000). For a complete list of holdings, visit the IHI Holdings page » The chart below shows the one year price performance of IHI, versus its 200 day moving average: Looking at the chart above, IHI's low point in its 52 week range is $183.25 per share, with $351.615 as the 52 week high point — that compares with a last trade of $326.52. |
32218.0 | 2021-03-09 00:00:00 UTC | How The Parts Add Up: SPHQ Targets $47 | ABT | https://www.nasdaq.com/articles/how-the-parts-add-up%3A-sphq-targets-%2447-2021-03-09 | 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— Quality ETF (Symbol: SPHQ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $47.03 per unit.
With SPHQ trading at a recent price near $42.36 per unit, that means that analysts see 11.03% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPHQ's underlying holdings with notable upside to their analyst target prices are Teradyne, Inc. (Symbol: TER), Xilinx, Inc. (Symbol: XLNX), and Abbott Laboratories (Symbol: ABT). Although TER has traded at a recent price of $104.20/share, the average analyst target is 16.15% higher at $121.03/share. Similarly, XLNX has 14.79% upside from the recent share price of $112.09 if the average analyst target price of $128.67/share is reached, and analysts on average are expecting ABT to reach a target price of $128.92/share, which is 11.50% above the recent price of $115.63. Below is a twelve month price history chart comparing the stock performance of TER, XLNX, 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— Quality ETF SPHQ $42.36 $47.03 11.03%
Teradyne, Inc. TER $104.20 $121.03 16.15%
Xilinx, Inc. XLNX $112.09 $128.67 14.79%
Abbott Laboratories ABT $115.63 $128.92 11.50%
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— Quality ETF SPHQ $42.36 $47.03 11.03% Teradyne, Inc. TER $104.20 $121.03 16.15% Xilinx, Inc. XLNX $112.09 $128.67 14.79% Abbott Laboratories ABT $115.63 $128.92 11.50% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPHQ's underlying holdings with notable upside to their analyst target prices are Teradyne, Inc. (Symbol: TER), Xilinx, Inc. (Symbol: XLNX), and Abbott Laboratories (Symbol: ABT). Similarly, XLNX has 14.79% upside from the recent share price of $112.09 if the average analyst target price of $128.67/share is reached, and analysts on average are expecting ABT to reach a target price of $128.92/share, which is 11.50% above the recent price of $115.63. | Three of SPHQ's underlying holdings with notable upside to their analyst target prices are Teradyne, Inc. (Symbol: TER), Xilinx, Inc. (Symbol: XLNX), and Abbott Laboratories (Symbol: ABT). Similarly, XLNX has 14.79% upside from the recent share price of $112.09 if the average analyst target price of $128.67/share is reached, and analysts on average are expecting ABT to reach a target price of $128.92/share, which is 11.50% above the recent price of $115.63. Invesco S&P 500— Quality ETF SPHQ $42.36 $47.03 11.03% Teradyne, Inc. TER $104.20 $121.03 16.15% Xilinx, Inc. XLNX $112.09 $128.67 14.79% Abbott Laboratories ABT $115.63 $128.92 11.50% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, XLNX has 14.79% upside from the recent share price of $112.09 if the average analyst target price of $128.67/share is reached, and analysts on average are expecting ABT to reach a target price of $128.92/share, which is 11.50% above the recent price of $115.63. Three of SPHQ's underlying holdings with notable upside to their analyst target prices are Teradyne, Inc. (Symbol: TER), Xilinx, Inc. (Symbol: XLNX), and Abbott Laboratories (Symbol: ABT). Below is a twelve month price history chart comparing the stock performance of TER, XLNX, and ABT: Below is a summary table of the current analyst target prices discussed above: | Invesco S&P 500— Quality ETF SPHQ $42.36 $47.03 11.03% Teradyne, Inc. TER $104.20 $121.03 16.15% Xilinx, Inc. XLNX $112.09 $128.67 14.79% Abbott Laboratories ABT $115.63 $128.92 11.50% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPHQ's underlying holdings with notable upside to their analyst target prices are Teradyne, Inc. (Symbol: TER), Xilinx, Inc. (Symbol: XLNX), and Abbott Laboratories (Symbol: ABT). Similarly, XLNX has 14.79% upside from the recent share price of $112.09 if the average analyst target price of $128.67/share is reached, and analysts on average are expecting ABT to reach a target price of $128.92/share, which is 11.50% above the recent price of $115.63. |
32219.0 | 2021-03-09 00:00:00 UTC | Warren Buffett Just Bought These 3 High-Yield Dividend Stocks. Should You? | ABT | https://www.nasdaq.com/articles/warren-buffett-just-bought-these-3-high-yield-dividend-stocks.-should-you-2021-03-09 | nan | nan | Warren Buffett's Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) has never paid a dividend. But make no mistake about it: The billionaire investor really likes dividends. In fact, he highlighted the huge amounts that Berkshire receives in dividends from a couple of its top holdings in his most recent letter to shareholders.
Berkshire's dividend payments will no doubt increase thanks to some of its recent purchases. Buffett just bought three high-yield dividend stocks. Here's which stocks he scooped up -- and whether or not they're good picks for you too.
Image source: The Motley Fool.
AbbVie
Berkshire initiated a position in AbbVie (NYSE: ABBV) during the third quarter of 2020 with a purchase of nearly 21.3 million shares. Buffett appears to like the big drugmaker. Berkshire owned AbbVie over 25.5 million shares of the stock by the end of the fourth quarter.
AbbVie's pedigree as a dividend stock is impressive. It's a Dividend Aristocrat with 49 consecutive years of dividend increases. Since being spun off from Abbott Labs in 2013, AbbVie has boosted its dividend by 225%. The dividend yield currently stands at nearly 4.9%.
I think that many investors will, like Buffett, find AbbVie to be an attractive pick. In addition to its great dividend, the stock is cheap with shares trading at less than nine times expected earnings.
The company faces some headwinds beginning in 2023 with the entrance of biosimilars to its top-selling drug Humira in the U.S. market. However, it won't take long for AbbVie to recover. The company expects to deliver modest revenue growth in 2024 followed by high-single-digit growth throughout the rest of the decade.
Chevron
Buffett hasn't been a big fan of the energy sector over the last couple of years. However, he seems to be warming up at least somewhat. In the fourth quarter, Berkshire opened a sizable position in Chevron (NYSE: CVX).
The oil and gas giant is also a Dividend Aristocrat with 33 consecutive years of dividend hikes. Chevron's dividend yield of over 4.9% is juicy enough to catch the eye of most income investors.
There are other reasons investors might like Chevron in addition to its strong dividend. The energy sector could mount a strong comeback this year as the economy reopens. The increasing availability of COVID-19 vaccines combined with the recent stimulus package should help drive the recovery.
Chevron ranks as one of the best energy stocks around. The company continues to enjoy a solid financial position. It reduced capital spending even while positioning itself well for rising oil and gas prices with the well-timed acquisition of Noble Energy. Although the stock is likely to remain volatile, Chevron should still be a winner for investors over the next five-to-10 years.
Verizon Communications
The biggest addition of all for Berkshire in Q4 was its initiation of a position in Verizon Communications (NYSE: VZ). Buffett and his team were so enthusiastic about the telecom giant that Berkshire bought around $9 billion worth of Verizon's shares.
So why did Buffett buy Verizon? He almost certainly appreciated the company's dividend. Although Verizon isn't a Dividend Aristocrat, it has increased its dividend payout for 14 years running. The telecom leader's dividend yield of nearly 4.5% provides Berkshire a much better return than parking its money in money market accounts.
Verizon also appears to be poised to be a leader in high-speed 5G networks. Buffett might not be an expert in autonomous vehicles and the Internet of Things, but he definitely understands the importance of a solid infrastructure. And Verizon's 5G infrastructure is massive and growing.
Even with its 5G prospects, I don't view Verizon as a great growth stock at this point. However, I think that it's a pretty good pick for income-seeking investors.
10 stocks we like better than Verizon Communications
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Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, he highlighted the huge amounts that Berkshire receives in dividends from a couple of its top holdings in his most recent letter to shareholders. It reduced capital spending even while positioning itself well for rising oil and gas prices with the well-timed acquisition of Noble Energy. Buffett and his team were so enthusiastic about the telecom giant that Berkshire bought around $9 billion worth of Verizon's shares. | See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). | Although Verizon isn't a Dividend Aristocrat, it has increased its dividend payout for 14 years running. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. The Motley Fool recommends Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). | AbbVie Berkshire initiated a position in AbbVie (NYSE: ABBV) during the third quarter of 2020 with a purchase of nearly 21.3 million shares. So why did Buffett buy Verizon? See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights owns shares of AbbVie, Berkshire Hathaway (B shares), and Chevron. |
32220.0 | 2021-03-08 00:00:00 UTC | Abbott Announces U.S. Launch Of NeuroSphere Virtual Clinic | ABT | https://www.nasdaq.com/articles/abbott-announces-u.s.-launch-of-neurosphere-virtual-clinic-2021-03-08 | nan | nan | (RTTNews) - Abbott (ABT) Monday announced the launch of NeuroSphere Virtual Clinic, a technology that allows patients to communicate with physicians and receive treatment remotely.
The virtual clinic was approved by the FDA. It will be helpful for patients suffering from chronic pain or movement disorders who don't live close to a care provider, have difficulty accessing care, or are unable to go to the doctor because of circumstances like COVID-19.
Abbott's NeuroSphere Virtual Clinic connects with a doctor via secure in-app video chat and an integrated remote programming feature.
"With NeuroSphere Virtual Clinic, physicians can communicate and digitally prescribe new stimulation settings remotely, allowing them to extend care beyond their clinic walls and optimize therapy management," said Timothy Deer, M.D., DABPM, president and chief executive officer of The Spine and Nerve Center of the Virginias in Charleston, W.Va. "This is a significant advancement for chronic pain patients."
The NeuroSphere Virtual Clinic can also be helpful for people who live in areas — both rural and urban with inadequate access to medical services.
"We are continuing to make these kinds of investments and working with regulatory authorities to make these telehealth changes permanent, as we believe that patients should be able to receive the care they need, regardless of whether they can make it physically to the doctor's office," said Keith Boettiger, vice president, Neuromodulation, Abbott.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) Monday announced the launch of NeuroSphere Virtual Clinic, a technology that allows patients to communicate with physicians and receive treatment remotely. Abbott's NeuroSphere Virtual Clinic connects with a doctor via secure in-app video chat and an integrated remote programming feature. "With NeuroSphere Virtual Clinic, physicians can communicate and digitally prescribe new stimulation settings remotely, allowing them to extend care beyond their clinic walls and optimize therapy management," said Timothy Deer, M.D., DABPM, president and chief executive officer of The Spine and Nerve Center of the Virginias in Charleston, W.Va. "This is a significant advancement for chronic pain patients." | (RTTNews) - Abbott (ABT) Monday announced the launch of NeuroSphere Virtual Clinic, a technology that allows patients to communicate with physicians and receive treatment remotely. Abbott's NeuroSphere Virtual Clinic connects with a doctor via secure in-app video chat and an integrated remote programming feature. "With NeuroSphere Virtual Clinic, physicians can communicate and digitally prescribe new stimulation settings remotely, allowing them to extend care beyond their clinic walls and optimize therapy management," said Timothy Deer, M.D., DABPM, president and chief executive officer of The Spine and Nerve Center of the Virginias in Charleston, W.Va. "This is a significant advancement for chronic pain patients." | (RTTNews) - Abbott (ABT) Monday announced the launch of NeuroSphere Virtual Clinic, a technology that allows patients to communicate with physicians and receive treatment remotely. "With NeuroSphere Virtual Clinic, physicians can communicate and digitally prescribe new stimulation settings remotely, allowing them to extend care beyond their clinic walls and optimize therapy management," said Timothy Deer, M.D., DABPM, president and chief executive officer of The Spine and Nerve Center of the Virginias in Charleston, W.Va. "This is a significant advancement for chronic pain patients." "We are continuing to make these kinds of investments and working with regulatory authorities to make these telehealth changes permanent, as we believe that patients should be able to receive the care they need, regardless of whether they can make it physically to the doctor's office," said Keith Boettiger, vice president, Neuromodulation, Abbott. | (RTTNews) - Abbott (ABT) Monday announced the launch of NeuroSphere Virtual Clinic, a technology that allows patients to communicate with physicians and receive treatment remotely. The virtual clinic was approved by the FDA. It will be helpful for patients suffering from chronic pain or movement disorders who don't live close to a care provider, have difficulty accessing care, or are unable to go to the doctor because of circumstances like COVID-19. |
32221.0 | 2021-03-08 00:00:00 UTC | These Stocks Can Offer Higher Returns Compared To Abbott Labs | ABT | https://www.nasdaq.com/articles/these-stocks-can-offer-higher-returns-compared-to-abbott-labs-2021-03-08 | nan | nan | We believe that there are several stocks in the healthcare sector that are better than Abbott Labs (NYSE:ABT). Abbott’s current market cap-to-operating income ratio of 41x compares with 12x for Emergent Biosolutions (EBS), 19x for Vertex Pharmaceuticals (VRTX), and 22x for Corcept Therapeutics (CORT).
Does this gap in valuation between Abbott and its peers make sense? We don’t think so, especially if we look at the fundamentals of these companies. More specifically, we arrive at our conclusion by looking at historical trends in revenues, operating income, and market cap-to-operating income ratio for these companies. Our dashboard Better Bet Than ABT Stock: Pay Less To Get More From EBS, VRTX, CORT has more details – parts of which are summarized below.
1. Revenue Growth
Abbott’s revenues grew at an average of 8.5% over the last three years, which compares with a 40% growth for Emergent, 36% growth for Vertex, and a large 59% figure for Corcept. Even if we look at revenue growth over the last twelve-month period, Abbott’s 8.5% figure is much lower than 41%, 49%, and 25% growth rates for Emergent, Vertex, and Corcept respectively.
Abbott has benefited from Covid-19 testing, which offset the decline seen in other businesses, including medical devices, due to the deferment of elective surgeries.
For Emergent, the revenue growth is being largely driven by contract development and manufacturing (CDMO) business. The company has signed multiple contracts with pharmaceutical companies, including Johnson & Johnson, Novavax, Vaxart, and AstraZeneca, for developing vaccines, including the Covid-19 vaccines for Johnson & Johnson and AstraZeneca. This has aided the company’s top-line which grew a stellar 41% y-o-y in 2020, and it is estimated to grow another 30% in 2021.
Vertex’s revenue growth over the recent past has been led by its treatment for Cystic Fibrosis (CF), a genetic disease that affects the lungs and digestive system. The company’s most important drug, a 3-in-1 pill called ‘Trikafta,” was approved by the US FDA in late 2019 and generated about $3.9 billion in its first full year of sales in 2020, and the revenues are expected to see steady growth over the coming years.
Lastly, Corcept, which is focused on drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders, has seen its revenue growth led by Korlym, an oral medication for the treatment of high blood sugar in patients with Cushing’s syndrome.
2. Operating Income Growth
The three-year average operating income growth for Abbott stands at 57%, much lower than 93% for Emergent, 205% for Vertex, and 171% for Corcept. Strong revenue growth for the latter three along with margin expansion has led to higher operating income for these companies. Looking at the last twelve months period, Abbott’s 20% operating income growth is much lower than 280%, 134%, and 31% growth rates for Emergent, Vertex, and Corcept respectively.
The Net of It All
Although Abbott’s revenue base is much larger than Emergent, Vertex, and Corcept, each of these companies has seen higher growth in revenues and operating income than Abbott in the last twelve months as well as the last three years. Yet, they appear to be significantly cheaper than Abbott. Despite better profit and revenue growth, these companies have a comparatively lower market cap-to-operating income ratio.
Abbott’s persistent underperformance in revenue and operating income growth reinforces our conclusion that the stock is expensive compared to its peers, and we think this gap in valuation will eventually narrow over time to favor the group of comparatively less expensive names. As such, we believe that Emergent, Vertex, and Corcept are currently better buying opportunities compared to Abbott.
While Abbott stock looks comparatively expensive, 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 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. | We believe that there are several stocks in the healthcare sector that are better than Abbott Labs (NYSE:ABT). Our dashboard Better Bet Than ABT Stock: Pay Less To Get More From EBS, VRTX, CORT has more details – parts of which are summarized below. Abbott’s current market cap-to-operating income ratio of 41x compares with 12x for Emergent Biosolutions (EBS), 19x for Vertex Pharmaceuticals (VRTX), and 22x for Corcept Therapeutics (CORT). | We believe that there are several stocks in the healthcare sector that are better than Abbott Labs (NYSE:ABT). Our dashboard Better Bet Than ABT Stock: Pay Less To Get More From EBS, VRTX, CORT has more details – parts of which are summarized below. Abbott’s current market cap-to-operating income ratio of 41x compares with 12x for Emergent Biosolutions (EBS), 19x for Vertex Pharmaceuticals (VRTX), and 22x for Corcept Therapeutics (CORT). | We believe that there are several stocks in the healthcare sector that are better than Abbott Labs (NYSE:ABT). Our dashboard Better Bet Than ABT Stock: Pay Less To Get More From EBS, VRTX, CORT has more details – parts of which are summarized below. Revenue Growth Abbott’s revenues grew at an average of 8.5% over the last three years, which compares with a 40% growth for Emergent, 36% growth for Vertex, and a large 59% figure for Corcept. | We believe that there are several stocks in the healthcare sector that are better than Abbott Labs (NYSE:ABT). Our dashboard Better Bet Than ABT Stock: Pay Less To Get More From EBS, VRTX, CORT has more details – parts of which are summarized below. Abbott’s current market cap-to-operating income ratio of 41x compares with 12x for Emergent Biosolutions (EBS), 19x for Vertex Pharmaceuticals (VRTX), and 22x for Corcept Therapeutics (CORT). |
32222.0 | 2021-03-05 00:00:00 UTC | Abbott's test to distinguish coronavirus and flu viruses gets U.S. authorization | ABT | https://www.nasdaq.com/articles/abbotts-test-to-distinguish-coronavirus-and-flu-viruses-gets-u.s.-authorization-2021-03-05 | nan | nan | adds details about test
March 5 (Reuters) - Abbott Laboratories ABT.N said on Friday the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test.
The test, Alinity m Resp-4-Plex, can be conducted with one nasal swab sample and can differentiate the coronavirus, flu A, flu B and another respiratory virus called respiratory syncytial virus (RSV), the company said.
Abbott has a range of COVID-19 tests, including antigen, molecular and serology tests which have been authorized for emergency use by the U.S. Food and Drug Administration.
The latest test, which is available in countries outside of the United States, is an important tool because the viruses cause similar symptoms but require different treatment approaches, the company said.
Abbott also said the emergency use authorization of its Alinity m SARS-CoV-2 test has been extended to include detection of COVID-19 in asymptomatic individuals.
(Reporting by Manojna Maddipatla and Amruta Khandekar in Bengaluru; Editing by Shailesh Kuber)
((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. | adds details about test March 5 (Reuters) - Abbott Laboratories ABT.N said on Friday the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test. The test, Alinity m Resp-4-Plex, can be conducted with one nasal swab sample and can differentiate the coronavirus, flu A, flu B and another respiratory virus called respiratory syncytial virus (RSV), the company said. The latest test, which is available in countries outside of the United States, is an important tool because the viruses cause similar symptoms but require different treatment approaches, the company said. | adds details about test March 5 (Reuters) - Abbott Laboratories ABT.N said on Friday the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test. The test, Alinity m Resp-4-Plex, can be conducted with one nasal swab sample and can differentiate the coronavirus, flu A, flu B and another respiratory virus called respiratory syncytial virus (RSV), the company said. Abbott has a range of COVID-19 tests, including antigen, molecular and serology tests which have been authorized for emergency use by the U.S. Food and Drug Administration. | adds details about test March 5 (Reuters) - Abbott Laboratories ABT.N said on Friday the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test. The test, Alinity m Resp-4-Plex, can be conducted with one nasal swab sample and can differentiate the coronavirus, flu A, flu B and another respiratory virus called respiratory syncytial virus (RSV), the company said. Abbott has a range of COVID-19 tests, including antigen, molecular and serology tests which have been authorized for emergency use by the U.S. Food and Drug Administration. | adds details about test March 5 (Reuters) - Abbott Laboratories ABT.N said on Friday the U.S. health regulator has granted emergency use authorization for its molecular test to detect and distinguish the coronavirus and two types of flu viruses with a single test. The test, Alinity m Resp-4-Plex, can be conducted with one nasal swab sample and can differentiate the coronavirus, flu A, flu B and another respiratory virus called respiratory syncytial virus (RSV), the company said. Abbott has a range of COVID-19 tests, including antigen, molecular and serology tests which have been authorized for emergency use by the U.S. Food and Drug Administration. |
32223.0 | 2021-03-05 00:00:00 UTC | Abbott Gets EUA For Laboratory PCR Assay That Detects Four Viruses In One Test | ABT | https://www.nasdaq.com/articles/abbott-gets-eua-for-laboratory-pcr-assay-that-detects-four-viruses-in-one-test-2021-03-05 | nan | nan | (RTTNews) - Abbott (ABT) said that it has received emergency use authorization from the U.S. Food and Drug Administration for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus or RSV in one test.
It is an important tool because these viruses have similar symptoms but require different treatment approaches. This test is CE Marked and available in countries outside the U.S., the company said in a statement.
The Alinity m Resp-4-Plex assay will allow healthcare workers to test for four viruses in one test, a critically important tool as flu presents with similar symptoms. The assay will run on the company's most advanced molecular PCR platform, the Alinity m system, which provides fast results in high volumes.
Abbott also announced that the EUA for the company's Alinity m SARS-CoV-2 test has been updated to include an asymptomatic claim - detecting COVID-19 in individuals who do not have symptoms.
A recent study found that more than 60% of COVID-19 infections present as asymptomatic cases, which is why it's critical to catch those cases before they spread.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) said that it has received emergency use authorization from the U.S. Food and Drug Administration for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus or RSV in one test. The assay will run on the company's most advanced molecular PCR platform, the Alinity m system, which provides fast results in high volumes. Abbott also announced that the EUA for the company's Alinity m SARS-CoV-2 test has been updated to include an asymptomatic claim - detecting COVID-19 in individuals who do not have symptoms. | (RTTNews) - Abbott (ABT) said that it has received emergency use authorization from the U.S. Food and Drug Administration for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus or RSV in one test. It is an important tool because these viruses have similar symptoms but require different treatment approaches. The Alinity m Resp-4-Plex assay will allow healthcare workers to test for four viruses in one test, a critically important tool as flu presents with similar symptoms. | (RTTNews) - Abbott (ABT) said that it has received emergency use authorization from the U.S. Food and Drug Administration for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus or RSV in one test. The Alinity m Resp-4-Plex assay will allow healthcare workers to test for four viruses in one test, a critically important tool as flu presents with similar symptoms. Abbott also announced that the EUA for the company's Alinity m SARS-CoV-2 test has been updated to include an asymptomatic claim - detecting COVID-19 in individuals who do not have symptoms. | (RTTNews) - Abbott (ABT) said that it has received emergency use authorization from the U.S. Food and Drug Administration for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus or RSV in one test. This test is CE Marked and available in countries outside the U.S., the company said in a statement. The Alinity m Resp-4-Plex assay will allow healthcare workers to test for four viruses in one test, a critically important tool as flu presents with similar symptoms. |
32224.0 | 2021-03-04 00:00:00 UTC | Should You Buy Invitae Stock? | ABT | https://www.nasdaq.com/articles/should-you-buy-invitae-stock-2021-03-04 | nan | nan | Its been a big, albeit wholly erratic, year for Invitae (NYSE: NVTA), one of the tech stock winners of 2020. On March 19, 2020, the stock sat at $7.43. In mid-December, it topped $61. Now, after a slide during the last month or so, it closed at $42.01 on Tuesday, March 2.
Invitae offers diagnostic and predictive genetic testing to help patients, healthcare providers, biopharma companies, and other groups diagnose specific conditions or determine someone's risk of developing certain diseases. The genetic testing market is set to be worth more than $21 billion by 2027, growing at a compound annual growth rate of 10% until then, according to a Research and Markets report. But does Invitae's current price offer a nice purchasing opportunity to get in on the industry's growth, or is its recent dive a sign of things to come?
Image source: Getty Images.
How Invitae views its own niche
The company's shares have risen almost 100% over the past year, though they've fallen more than 25% in the past month. While it hasn't turned a profit since its founding in 2013, investors like Invitae's top-line growth. It reported $279.6 million in revenue in 2020, a 29% rise year over year. It also increased testing volume by 41% in the year to 659,000 billable units. That's despite the headwinds caused by the coronavirus pandemic earlier in the year, when genetic tests took a back seat to COVID-19 diagnostic and medical concerns.
The company sees its future in making high-quality genetic tests affordable and plentiful, increasing its business through volume.
The company's biggest move last year was its purchase in October of ArcherDX, another genetic testing company that specialized in oncology, including personalized cancer monitoring and liquid and tissue biopsy analysis, for $1.4 billion in cash and stock. To complete the deal, Invitae borrowed $135 million.
While some of Invitae's tests are covered by insurance carriers, the company said that for those whose insurance doesn't cover the costs, the tests can be as low as $99 for noninvasive prenatal screening and $250 for diagnostic, carrier, or proactive testing.
There's already a lot of competition in genetic testing from bigger companies, such as Abbott Labs, Roche, Quest Diagnostics, and Illumina. Invitae, with a market cap of $9.6 billion, is one of the smaller players. Analysts seem excited about the company's prospects, though. It's one of the top 10 holdings in Cathie Wood's ARK Invest Innovation ETF, for example, grouped in with companies such as Tesla, Square, Roku, Teladoc Health, Shopify, and CRISPR Therapeutics.
Invitae's cash position and debt are concerning
The company reported a net loss of $608.9 million, a rise of 149% over 2019. In its annual report, Invitae said that while it expects its revenue to expand, it may be a while before it turns a profit as it concentrates first on growing the business.
The company's debt-to-equity ratio is 0.51, which is not really a big cause for alarm, but Invitae has grown its total net long-term debt 562% in the past three years.
NVTA Total Long Term Debt (Quarterly) data by YCharts.
Of greater concern is the company's cash position of $360.7 million on Dec. 31, down from $398 million on Sept. 30, according to the company's fourth-quarter earnings call. While management has been able to raise cash by offering the sale of stock, that, of course, dilutes current shareholder value. Going that route also becomes difficult if the stock's price falls.
The company burned through $441.1 million in cash in the fourth quarter alone, though $352.7 million of that was attributed to the acquisition of ArcherDX. Without acquisitions, the company said it would have gone through $74.8 million in the quarter, including Archer's own cash burn.
Invitae's beta over the past five years is 2.038, meaning it is almost 104% more volatile than the S&P 500. There are good reasons for that. For one thing, it's a relatively new company in an emerging market where there are a lot of unknowns and a lot of potential competition. Looking at the company's ups and downs over the past year, they make sense. The company's stock tanked in April, not long after the rest of the market dropped when the coronavirus pandemic shutdowns began. Shortly after that, Invitae issued more shares. Since then, the company's shares have steadily risen, cresting in mid-December after the company reported three studies that showed the benefits of genetic testing for early detection of breast cancer.
Invitae offers an opportunity
With its three-year revenue gain of 226.8%, I think it's safe to say that Invitae is a classic growth stock.
There are some red flags, particularly the company's cash position, but I like its long-term prospects considering its revenue growth and the increasing prevalence of genetic testing in general. People are willing to spend $100 to find out their ancestry, which in many cases is something they already know. Why wouldn't people be willing to part with a little more than $100 to see if they need to take special precautions to guard against diabetes or heart disease?
Cautious investors may want to wait until they see Invitae's path toward profitability, but at its current price, this is an opportunity to buy on the dip before the company's shares rise again, especially as more people return to their regular doctors and create the opportunity and need for more genetic tests.
10 stocks we like better than Invitae
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Jim Halley owns shares of CRISPR Therapeutics and Square. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Illumina, Invitae, Roku, Shopify, Square, Teladoc Health, and Tesla. 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. | Invitae offers diagnostic and predictive genetic testing to help patients, healthcare providers, biopharma companies, and other groups diagnose specific conditions or determine someone's risk of developing certain diseases. It's one of the top 10 holdings in Cathie Wood's ARK Invest Innovation ETF, for example, grouped in with companies such as Tesla, Square, Roku, Teladoc Health, Shopify, and CRISPR Therapeutics. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Illumina, Invitae, Roku, Shopify, Square, Teladoc Health, and Tesla. | It's one of the top 10 holdings in Cathie Wood's ARK Invest Innovation ETF, for example, grouped in with companies such as Tesla, Square, Roku, Teladoc Health, Shopify, and CRISPR Therapeutics. Invitae's cash position and debt are concerning The company reported a net loss of $608.9 million, a rise of 149% over 2019. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Illumina, Invitae, Roku, Shopify, Square, Teladoc Health, and Tesla. | The company's biggest move last year was its purchase in October of ArcherDX, another genetic testing company that specialized in oncology, including personalized cancer monitoring and liquid and tissue biopsy analysis, for $1.4 billion in cash and stock. While some of Invitae's tests are covered by insurance carriers, the company said that for those whose insurance doesn't cover the costs, the tests can be as low as $99 for noninvasive prenatal screening and $250 for diagnostic, carrier, or proactive testing. Cautious investors may want to wait until they see Invitae's path toward profitability, but at its current price, this is an opportunity to buy on the dip before the company's shares rise again, especially as more people return to their regular doctors and create the opportunity and need for more genetic tests. | How Invitae views its own niche The company's shares have risen almost 100% over the past year, though they've fallen more than 25% in the past month. It reported $279.6 million in revenue in 2020, a 29% rise year over year. That's right -- they think these 10 stocks are even better buys. |
32225.0 | 2021-03-03 00:00:00 UTC | What Should You Do With Owens & Minor Stock After A Large 35% Move In 5 Days? | ABT | https://www.nasdaq.com/articles/what-should-you-do-with-owens-minor-stock-after-a-large-35-move-in-5-days-2021-03-03 | nan | nan | The stock price of Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, has seen a large 35% rise over the last five trading days, while it’s up 25% over the last ten trading days, but we believe the stock, after the recent rally, may trend lower in the near term. The recent rise can largely be attributed to the company’s stellar Q4 performance, with revenue of $2.36 billion (up 8% y-o-y), and 9% above the consensus estimate of $2.16 billion. The earnings of $1.14 on an adjusted and per share basis, compares with $0.23 in the prior-year period, and 34% above the consensus estimate of $0.85 per share. Much of this strong performance can be attributed to a surge in demand for PPE, and the company expects the demand to remain strong in 2021, along with growth in a number of elective procedures and higher demand for home healthcare, driving the company’s near term revenue growth. In fact, the company’s revenues are estimated to grow 12% to $9.5 billion in 2021, while its EPS is expected to surge 45% y-o-y to $3.29.
Looking at the recent rally, the 35% rise for OMI stock over the last five days compares with a 1% rise seen in the broader S&P 500 index. Now, is OMI stock poised to gain further? It doesn’t look that way. While the company’s performance was great in Q4, and the demand is likely to remain robust in 2021, eventually the Covid-19 related product demand will slow over the coming years, as the crisis abates. Furthermore, the stock has already seen a sharp rally, implying some of the positives are now already priced in, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a strong chance of a drop in OMI stock over the next month (twenty-one trading days). After the recent rally, OMI now trades at levels of around $34, which is also the consensus average price for the stock. See our analysis on Owens & Minor Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the OMI Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how OMI stock could move.
Five Days: OMI 35%, vs. S&P500 1%; Outperformed market
(2% likelihood event)
Owens & Minor stock rose 35% over a five-day trading period ending 3/1/2021, compared to broader market (S&P500) rise of 1.0%
A change of 35% or more over five trading days is a 2% likelihood event, which has occurred 25 times out of 1256 in the last five years
Ten Days: OMI 25%, vs. S&P500 -0.5%; Outperformed market
(10% likelihood event)
Owens & Minor stock rose 25% over the last 10 trading days (2 weeks), compared to broader market (S&P500) decline of 0.5%
A change of 25% or more over 10 trading days is a 10% likelihood event, which has occurred 131 times out of 1240 in the last five years
While OMI stock may see a decline, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Abbott vs. Corcept.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, the company’s revenues are estimated to grow 12% to $9.5 billion in 2021, while its EPS is expected to surge 45% y-o-y to $3.29. After the recent rally, OMI now trades at levels of around $34, which is also the consensus average price for the stock. Five Days: OMI 35%, vs. S&P500 1%; Outperformed market (2% likelihood event) Owens & Minor stock rose 35% over a five-day trading period ending 3/1/2021, compared to broader market (S&P500) rise of 1.0% A change of 35% or more over five trading days is a 2% likelihood event, which has occurred 25 times out of 1256 in the last five years Ten Days: OMI 25%, vs. S&P500 -0.5%; Outperformed market (10% likelihood event) Owens & Minor stock rose 25% over the last 10 trading days (2 weeks), compared to broader market (S&P500) decline of 0.5% A change of 25% or more over 10 trading days is a 10% likelihood event, which has occurred 131 times out of 1240 in the last five years While OMI stock may see a decline, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, has seen a large 35% rise over the last five trading days, while it’s up 25% over the last ten trading days, but we believe the stock, after the recent rally, may trend lower in the near term. The recent rise can largely be attributed to the company’s stellar Q4 performance, with revenue of $2.36 billion (up 8% y-o-y), and 9% above the consensus estimate of $2.16 billion. Five Days: OMI 35%, vs. S&P500 1%; Outperformed market (2% likelihood event) Owens & Minor stock rose 35% over a five-day trading period ending 3/1/2021, compared to broader market (S&P500) rise of 1.0% A change of 35% or more over five trading days is a 2% likelihood event, which has occurred 25 times out of 1256 in the last five years Ten Days: OMI 25%, vs. S&P500 -0.5%; Outperformed market (10% likelihood event) Owens & Minor stock rose 25% over the last 10 trading days (2 weeks), compared to broader market (S&P500) decline of 0.5% A change of 25% or more over 10 trading days is a 10% likelihood event, which has occurred 131 times out of 1240 in the last five years While OMI stock may see a decline, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, has seen a large 35% rise over the last five trading days, while it’s up 25% over the last ten trading days, but we believe the stock, after the recent rally, may trend lower in the near term. Furthermore, the stock has already seen a sharp rally, implying some of the positives are now already priced in, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a strong chance of a drop in OMI stock over the next month (twenty-one trading days). Five Days: OMI 35%, vs. S&P500 1%; Outperformed market (2% likelihood event) Owens & Minor stock rose 35% over a five-day trading period ending 3/1/2021, compared to broader market (S&P500) rise of 1.0% A change of 35% or more over five trading days is a 2% likelihood event, which has occurred 25 times out of 1256 in the last five years Ten Days: OMI 25%, vs. S&P500 -0.5%; Outperformed market (10% likelihood event) Owens & Minor stock rose 25% over the last 10 trading days (2 weeks), compared to broader market (S&P500) decline of 0.5% A change of 25% or more over 10 trading days is a 10% likelihood event, which has occurred 131 times out of 1240 in the last five years While OMI stock may see a decline, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. | The stock price of Owens & Minor stock (NYSE:OMI), a global healthcare logistics company, has seen a large 35% rise over the last five trading days, while it’s up 25% over the last ten trading days, but we believe the stock, after the recent rally, may trend lower in the near term. Much of this strong performance can be attributed to a surge in demand for PPE, and the company expects the demand to remain strong in 2021, along with growth in a number of elective procedures and higher demand for home healthcare, driving the company’s near term revenue growth. Furthermore, the stock has already seen a sharp rally, implying some of the positives are now already priced in, and based on our machine learning analysis of trends in the stock price over the last few years, we believe that there is a strong chance of a drop in OMI stock over the next month (twenty-one trading days). |
32226.0 | 2021-03-01 00:00:00 UTC | iShares S&P 500 Growth ETF Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/ishares-sp-500-growth-etf-experiences-big-outflow-2021-03-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.4%, AbbVie Inc (Symbol: ABBV) is up about 0.7%, and Abbott Laboratories (Symbol: ABT) is up by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $295.0 million dollar outflow -- that's a 0.9% decrease week over week (from 491,200,000 to 486,550,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $67.5226 as the 52 week high point — that compares with a last trade of $64.61. |
32227.0 | 2021-02-28 00:00:00 UTC | 3 Great Stocks for Low-Risk Investors | ABT | https://www.nasdaq.com/articles/3-great-stocks-for-low-risk-investors-2021-02-28 | nan | nan | The average stock in the S&P 500 index is selling for 22 times earnings expected by analysts in the upcoming year, which is higher than at any time since the dot-com crash of 2000-2002. The market's valuation has some investors nervous now. If you're looking for stocks with lower risk, you're not alone.
No one really knows how the market will move next, but investors can avoid a lot of risk by simply being patient, buying stocks of strong businesses, and holding for the long term. The longer an investor holds shares, the more the quality of the business overshadows fluctuations in valuation.
Here are three high-quality stocks that should appeal to investors who want growth but are concerned about a downturn. The shares of these companies could go down in a market correction along with almost everything else, but their low-risk businesses should outperform in the long run, rewarding patient shareholders.
Image source: Getty Images.
Abbott Laboratories
Healthcare stocks tend to be "defensive," meaning that their businesses tend to hold up well during downturns in the economy. Abbott Laboratories (NYSE: ABT) is one of the most consistent growth stocks you'll find in the sector. The highly diversified seller of medical devices, diagnostics, pharmaceuticals for emerging market countries, and nutrition products puts together one solid quarter after another and hasn't had an earnings disappointment in over a decade.
Abbott's fourth-quarter results got a big boost from COVID-19 testing. Sales growth of 28% over the period a year ago would be flat if you subtracted the $2.4 billion of sales related to coronavirus testing. But sales of routine diagnostics and medical devices were depressed during the quarter as medical procedures around the world dropped due to the late-year surge in the pandemic. Abbott thinks the demand for COVID-19 testing hasn't peaked yet and will remain strong beyond 2021. Meanwhile, a rebound in routine medical procedures will cause the rest of its business to bounce back, and sales of its FreeStyle Libre continuous glucose monitor are growing more than 40%.
Looking forward, Abbott expects 2021 earnings per share of $5.00, a level that analysts hadn't projected the company to hit until after 2023, and it thinks it will continue to grow profits from there, even after the pandemic. The company continued its streak of 49 years of dividend hikes when it recently boosted the payout by 25%, resulting in a yield of 1.5% and helping investors in this blue chip stock sleep at night.
Prologis
The pandemic accelerated the shift in retail from brick-and-mortar stores to e-commerce, and one consequence has been a boom in demand for warehouse space. That trend created a tailwind for Prologis (NYSE: PLD), a real estate investment trust that's the global leader in logistics real estate. Stable long-term cash flows had made the company an attractive choice for low-risk investors long before that.
Prologis owns almost a billion square feet of logistics real estate housed in 4,700 buildings in 19 countries. The value of the goods passing through its properties represents fully 2.5% of the world's gross national product. That produces a huge and stable base of rents that grows as space in key locations becomes more valuable and the company develops new properties. Core funds from operations per share grew 15% in 2020 and the dividend rose 9.4%, with shares now yielding 2.3%.
An economic recovery aided by stimulus checks and vaccines means that warehouse space will remain in high demand in 2021. Prologis says that inventory levels compared with sales are near record lows and that there are signs that businesses are restocking their inventories to prepare for higher consumer spending and more growth of e-commerce.
The pandemic exposed weaknesses in global supply chains, and Prologis thinks that long-term investments to position goods closer to consumers and make supply chains more resilient will result in incremental demand for 200 million square feet of logistics space in the U.S., a trend that will take several years to play out.
The strong trends fueling Prologis' growth and the durable nature of its cash flows make the business attractive to risk-averse investors.
Generac Holdings
A glance at a chart of the share price of Generac Holdings (NYSE: GNRC) over the last couple of years might lead you to believe that the company is a high-flying tech stock. Shares rose 226% in 2020 and are up 38% already this year. But the maker of industrial equipment for over 60 years is in the sweet spot of some important trends and gives investors the opportunity to tap into long-term growth with less risk than you'd have in many tech stocks.
Generac is the leader in backup generators for home and industrial use. Sales of those products surged during the hurricanes and wildfires of 2019, got a boost from the working-from-home trend in 2020, and will surely benefit from the massive grid failure in Texas this month. The aging U.S. electrical grid and a greater urge to invest in disaster readiness among consumers are powerful tailwinds for the business that should last for years. Residential sales boomed 55% in the fourth quarter, leading to 29% top-line growth and a 39% increase in net profit.
But Generac is moving into new markets in the energy security business that should open up important new opportunities for growth. The company has created a residential clean energy solution that combines solar power generation with high-capacity batteries, the industry's largest inverter for converting direct current to the alternating current that the grid uses, and a load management system. The company's PWRcell energy storage system keeps a whole home functioning off the grid during outages, and when integrated with generators later this year, will be able to keep a home powered indefinitely during grid failures. Sales went from zero to $115 million in 2020 and the company expects 50% to 75% growth in 2021.
Generac also has an opportunity during the global 5G roll-out to sell more power backup systems for cell tower installations, where it's the leader in market share in the U.S. Longer term, the company aspires to help utilities meet peak demand through "virtual power plants," the ability to remotely turn on commercial and residential standby generators and feed power back into the grid, earning income for their owners from assets that sit idle most of the time.
Shares of the stock aren't cheap at 37 times expected 2021 earnings, but Generac's dominance of its niche gives low-risk investors a rapidly growing but easy-to-understand business that has a long runway ahead.
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Jim Crumly owns shares of Abbott Laboratories, Generac Holdings, and Prologis. 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) is one of the most consistent growth stocks you'll find in the sector. The highly diversified seller of medical devices, diagnostics, pharmaceuticals for emerging market countries, and nutrition products puts together one solid quarter after another and hasn't had an earnings disappointment in over a decade. The company continued its streak of 49 years of dividend hikes when it recently boosted the payout by 25%, resulting in a yield of 1.5% and helping investors in this blue chip stock sleep at night. | Abbott Laboratories (NYSE: ABT) is one of the most consistent growth stocks you'll find in the sector. That trend created a tailwind for Prologis (NYSE: PLD), a real estate investment trust that's the global leader in logistics real estate. Prologis owns almost a billion square feet of logistics real estate housed in 4,700 buildings in 19 countries. | Abbott Laboratories (NYSE: ABT) is one of the most consistent growth stocks you'll find in the sector. Generac also has an opportunity during the global 5G roll-out to sell more power backup systems for cell tower installations, where it's the leader in market share in the U.S. Longer term, the company aspires to help utilities meet peak demand through "virtual power plants," the ability to remotely turn on commercial and residential standby generators and feed power back into the grid, earning income for their owners from assets that sit idle most of the time. Shares of the stock aren't cheap at 37 times expected 2021 earnings, but Generac's dominance of its niche gives low-risk investors a rapidly growing but easy-to-understand business that has a long runway ahead. | Abbott Laboratories (NYSE: ABT) is one of the most consistent growth stocks you'll find in the sector. No one really knows how the market will move next, but investors can avoid a lot of risk by simply being patient, buying stocks of strong businesses, and holding for the long term. Sales went from zero to $115 million in 2020 and the company expects 50% to 75% growth in 2021. |
32228.0 | 2021-02-23 00:00:00 UTC | What To Expect From Medtronic Stock In Q3? | ABT | https://www.nasdaq.com/articles/what-to-expect-from-medtronic-stock-in-q3-2021-02-23 | nan | nan | Medtronic stock (NYSE: MDT) is scheduled to report its fiscal third-quarter results on Tuesday, February 23. We expect Medtronic to likely post revenues in-line, and earnings above the consensus estimates. Revenue growth is likely to be driven by improved demand for medical devices with a rebound in the volume of elective surgeries.
Our forecast indicates that Medtronic’s valuation is around $128 a share, which is 8% above the current market price of around $118. Look at our interactive dashboard analysis on Medtronic Pre-Earnings: What To Expect in Q3? for more details.
(1) Revenues expected to be above the consensus estimate
Trefis estimates Medtronic’s Q3 fiscal 2021 total revenues to be around $7.8 Bil, in-line with the 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, Cardiac & Vascular Group and Restorative Therapies Group segments combined have seen a decline of 4% y-o-y to 5.4 billion in Q2, Minimally Invasive Therapies Group segment revenues were up 7% to $2.3 billion, leading to an overall sales decline of less than 1% in Q2 fiscal 2021. The company is expected to see an increase in volume, which will be offset by lower pricing, especially for drug-eluting stents in China due to the centralized bulk purchasing, which resulted in a 90% drop in stent prices in China. Note that the overall emerging markets account for 16% of the company’s total sales. Our dashboard on Medtronic’s Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be above the consensus estimates
Medtronic’s Q3 2021 earnings per share (EPS) is expected to be $1.20 per Trefis analysis, 4% above the consensus estimate of $1.15. Medtronic’s Non-GAAP net income of $1.4 billion in Q2, reflected a 22% drop from its $1.8 billion profit in the prior year quarter, due to lower revenues as well as a 500 bps contraction in the net margins, owing to the increased costs during the pandemic, higher investments in R&D, as well as an increase in taxes. Looking at the full year 2021, we expect a 7% y-o-y decline in EPS to $4.30, due to margin contraction.
(3) Stock price estimate higher than the current market price
Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 30x in fiscal 2021, this translates into a price of $128, which is 8% above the current market price of around $115.
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.
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
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
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. | 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. Medtronic’s Non-GAAP net income of $1.4 billion in Q2, reflected a 22% drop from its $1.8 billion profit in the prior year quarter, due to lower revenues as well as a 500 bps contraction in the net margins, owing to the increased costs during the pandemic, higher investments in R&D, as well as an increase in taxes. 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. | (1) Revenues expected to be above the consensus estimate Trefis estimates Medtronic’s Q3 fiscal 2021 total revenues to be around $7.8 Bil, in-line with the consensus estimates. 2) EPS likely to be above the consensus estimates Medtronic’s Q3 2021 earnings per share (EPS) is expected to be $1.20 per Trefis analysis, 4% above the consensus estimate of $1.15. (3) Stock price estimate higher than the current market price Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 30x in fiscal 2021, this translates into a price of $128, which is 8% above the current market price of around $115. | (1) Revenues expected to be above the consensus estimate Trefis estimates Medtronic’s Q3 fiscal 2021 total revenues to be around $7.8 Bil, in-line with the consensus estimates. 2) EPS likely to be above the consensus estimates Medtronic’s Q3 2021 earnings per share (EPS) is expected to be $1.20 per Trefis analysis, 4% above the consensus estimate of $1.15. (3) Stock price estimate higher than the current market price Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 30x in fiscal 2021, this translates into a price of $128, which is 8% above the current market price of around $115. | 2) EPS likely to be above the consensus estimates Medtronic’s Q3 2021 earnings per share (EPS) is expected to be $1.20 per Trefis analysis, 4% above the consensus estimate of $1.15. (3) Stock price estimate higher than the current market price Going by our Medtronic Valuation, with an EPS estimate of around $4.30 and P/E multiple of 30x in fiscal 2021, this translates into a price of $128, which is 8% above the current market price of around $115. 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 What if you’re looking for a more balanced portfolio instead? |
32229.0 | 2021-02-22 00:00:00 UTC | Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS | ABT | https://www.nasdaq.com/articles/daily-dividend-report%3A-allabtwlkcheldos-2021-02-22 | nan | nan | The Allstate board of directors has approved a quarterly dividend of $0.81 cents on each outstanding share of the corporation's common stock, payable in cash on April 1, 2021, to stockholders of record at the close of business on March 4, 2021. This represents a 50% increase from the dividend declared in the previous quarter.
The board of directors of Abbott today declared a quarterly common dividend of 45 cents per share. This marks the 389th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable May 17, 2021, to shareholders of record at the close of business on April 15, 2021. Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
The Board of Directors of Westlake Chemical declared today a regular dividend distribution of $0.2700 per share for the fourth quarter of 2020. This dividend will be payable on March 16, 2021, to stockholders of record on March 2, 2021. This is the 66th successive quarterly dividend that Westlake has declared since completing its initial public offering in August 2004.
Chemed announced today that the Board of Directors has declared a quarterly cash dividend of 34-cents per share on the Company's capital stock, payable on March 19, 2021, to shareholders of record as of March 1, 2021. This is equal to the dividend paid in December 2020. This represents the 199th consecutive quarterly dividend paid by Chemed in its 49 years as a public company.
Leidos Holdings today announced that its Board of Directors has declared a quarterly cash dividend of $0.34 per outstanding share of common stock of Leidos Holdings, Inc. The cash dividend is payable on March 31, 2021 to stockholders of record as of the close of business on March 15, 2021.
VIDEO: Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Allstate board of directors has approved a quarterly dividend of $0.81 cents on each outstanding share of the corporation's common stock, payable in cash on April 1, 2021, to stockholders of record at the close of business on March 4, 2021. The board of directors of Abbott today declared a quarterly common dividend of 45 cents per share. | VIDEO: Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Allstate board of directors has approved a quarterly dividend of $0.81 cents on each outstanding share of the corporation's common stock, payable in cash on April 1, 2021, to stockholders of record at the close of business on March 4, 2021. Chemed announced today that the Board of Directors has declared a quarterly cash dividend of 34-cents per share on the Company's capital stock, payable on March 19, 2021, to shareholders of record as of March 1, 2021. | VIDEO: Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Allstate board of directors has approved a quarterly dividend of $0.81 cents on each outstanding share of the corporation's common stock, payable in cash on April 1, 2021, to stockholders of record at the close of business on March 4, 2021. Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years. | VIDEO: Daily Dividend Report: ALL,ABT,WLK,CHE,LDOS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Allstate board of directors has approved a quarterly dividend of $0.81 cents on each outstanding share of the corporation's common stock, payable in cash on April 1, 2021, to stockholders of record at the close of business on March 4, 2021. Chemed announced today that the Board of Directors has declared a quarterly cash dividend of 34-cents per share on the Company's capital stock, payable on March 19, 2021, to shareholders of record as of March 1, 2021. |
32230.0 | 2021-02-20 00:00:00 UTC | Which Stocks Could Win if the U.S. Requires COVID Tests for Domestic Flights? | ABT | https://www.nasdaq.com/articles/which-stocks-could-win-if-the-u.s.-requires-covid-tests-for-domestic-flights-2021-02-20 | nan | nan | The Biden administration has opened the door to potentially requiring passengers on domestic flights to test negative for COVID-19 before boarding. While this policy change might not be made, it could create opportunities for coronavirus test companies if it is put into effect. In this Motley Fool Live video, recorded on Feb. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss some of the stocks that could win if the new policy is implemented.
10 stocks we like better than Abbott Laboratories
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Keith Speights: Another story that's come out this week is that the U.S. government is considering making it mandatory for all travelers who board domestic flights to have negative coronavirus tests. This requirement's already in place, by the way, for international flights, but the Biden administration is taking a hard look at expanding that requirement to domestic flights. Brian, from an investing standpoint, are there any stocks that could benefit if this policy is implemented?
Brian Orelli: Yeah. We're scheduled to go on a cruise in July. We just got notice that we're going to have to take a coronavirus test to get on the boat in July, assuming they're actually cruising in July. There was 811 million domestic flight passengers in 2019. That's quite a few more than the number of people who got on ships.
I think the big players here are probably Abbott (NYSE: ABT), ticker there is ABT. It's a pretty large market cap, $220 billion. Going down, Becton Dickinson (NYSE: BDX), ticker there is BDX, $75 billion.
Quidel (NASDAQ: QDEL), ticker there is QDEL; am I correct that they some machines that run the tests as well as the test itself? I think that Quidel might have some advantages in that their machines are pretty cheap, a couple of hundred bucks or something. So doctors offices, and they sit a desktop. They're about the size of a laptop computer. If Quidel can get a whole bunch of those machines into doctor's offices, those machines run a whole bunch of other tests, and so maybe post pandemic, Quidel benefits a lot from getting as many machines into doctor's offices as they can.
Fulgent Genetics (NASDAQ: FLGT) is another one. They run the tests in-house, but it's much smaller, $4.5 billion market cap. They have an at-home test that you do at home and then send back to them. That might be an advantage. Although I wonder if at-home tests are going to be included in the requirements, because you can imagine somebody can just take the test and not do anything with it, wave it in the air, send it back to them. You think that maybe they would expect to have somebody observing the person doing the test to make sure it was done properly.
Speights: Yeah. There's always that chance too that somebody had a test and then became infected in between from the time they had the test and the time they got aboard on the flight. The devil's in the details there. I think you are right. I think some of the smaller companies that you mention might get a bigger boost. Obviously, Abbott Labs is a huge company, big player. I think they could benefit from this because they do have a rapid test that has really taken off. It's probably not going to move that stock all that much.
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. | I think the big players here are probably Abbott (NYSE: ABT), ticker there is ABT. The Biden administration has opened the door to potentially requiring passengers on domestic flights to test negative for COVID-19 before boarding. While this policy change might not be made, it could create opportunities for coronavirus test companies if it is put into effect. | I think the big players here are probably Abbott (NYSE: ABT), ticker there is ABT. In this Motley Fool Live video, recorded on Feb. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss some of the stocks that could win if the new policy is implemented. Going down, Becton Dickinson (NYSE: BDX), ticker there is BDX, $75 billion. | I think the big players here are probably Abbott (NYSE: ABT), ticker there is ABT. In this Motley Fool Live video, recorded on Feb. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss some of the stocks that could win if the new policy is implemented. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights: Another story that's come out this week is that the U.S. government is considering making it mandatory for all travelers who board domestic flights to have negative coronavirus tests. | I think the big players here are probably Abbott (NYSE: ABT), ticker there is ABT. In this Motley Fool Live video, recorded on Feb. 10, Motley Fool contributors Keith Speights and Brian Orelli discuss some of the stocks that could win if the new policy is implemented. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Keith Speights: Another story that's come out this week is that the U.S. government is considering making it mandatory for all travelers who board domestic flights to have negative coronavirus tests. |
32231.0 | 2021-02-19 00:00:00 UTC | Noteworthy ETF Inflows: ESGU, ABT, TMO, ABBV | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-esgu-abt-tmo-abbv-2021-02-19 | 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 ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $221.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 155,900,000 to 158,350,000). Among the largest underlying components of ESGU, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.9%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average:
Looking at the chart above, ESGU's low point in its 52 week range is $49.12 per share, with $91.34 as the 52 week high point — that compares with a last trade of $90.66. 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.
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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. | Among the largest underlying components of ESGU, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.9%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $49.12 per share, with $91.34 as the 52 week high point — that compares with a last trade of $90.66. 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 ESGU, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.9%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.7%. For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $49.12 per share, with $91.34 as the 52 week high point — that compares with a last trade of $90.66. 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 ESGU, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.9%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $221.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 155,900,000 to 158,350,000). For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $49.12 per share, with $91.34 as the 52 week high point — that compares with a last trade of $90.66. | Among the largest underlying components of ESGU, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.9%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.4%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) where we have detected an approximate $221.5 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 155,900,000 to 158,350,000). For a complete list of holdings, visit the ESGU Holdings page » The chart below shows the one year price performance of ESGU, versus its 200 day moving average: Looking at the chart above, ESGU's low point in its 52 week range is $49.12 per share, with $91.34 as the 52 week high point — that compares with a last trade of $90.66. |
32232.0 | 2021-02-18 00:00:00 UTC | Interesting ABT Put And Call Options For April 16th | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-april-16th-2021-02-18 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options become available today, for the April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $120.00 strike price has a current bid of $2.11. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $120.00, but will also collect the premium, putting the cost basis of the shares at $117.89 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $125.32/share today.
Because the $120.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.76% return on the cash commitment, or 11.27% 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 $120.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $130.00 strike price has a current bid of $1.19. If an investor was to purchase shares of ABT stock at the current price level of $125.32/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $130.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.68% if the stock gets called away at the April 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red:
Considering the fact that the $130.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.95% boost of extra return to the investor, or 6.09% 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 $125.32) to be 40%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Analysts Like »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 4% 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 April 16th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 4% 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 April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 16th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 4% 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 April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 16th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 strike represents an approximate 4% 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 April 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new April 16th contracts and identified one put and one call contract of particular interest. |
32233.0 | 2021-02-14 00:00:00 UTC | 3 Embarrassingly Cheap Dividend Stocks | ABT | https://www.nasdaq.com/articles/3-embarrassingly-cheap-dividend-stocks-2021-02-14 | nan | nan | Keeping track of all the market developments over the past year -- including hot IPOs, surging cryptocurrency prices, and a historic short squeeze that dominated the news -- can be exhausting. Investors who chase those headlines might make some money, but they could also be badly burned.
Before investors chase those speculative plays, they should strengthen their core portfolios with undervalued stocks that pay consistent dividends. That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill.
Let's find out a bit more about these three cheap dividend stocks.
Image source: Getty Images.
1. Cisco
Cisco, the world's top maker of networking switches and routers, has disappointed investors over the past year with five straight quarters of year-over-year revenue declines.
Its infrastructure platforms business, which sells switches, routers, and other hardware, struggled as the pandemic disrupted network upgrades at enterprise campuses and data centers. That sluggishness repeatedly offset the stronger growth of its smaller cybersecurity business.
But on the bright side, Cisco expects its revenue to finally rise again in the current (third) quarter, as the pandemic-related headwinds wane and it closes its takeover of Acacia Communications (NASDAQ: ACIA). Analysts expect Cisco's revenue growth to stay roughly flat in fiscal 2021, but increase 4% next year as its infrastructure business stabilizes.
That outlook isn't exciting, but Cisco is paying a forward dividend yield of 3% to patient investors. It spent just 42% of its free cash flow (FCF) on that dividend over the past 12 months, and it's raised its payout every year since its first dividend payment in 2011. The stock's low forward P/E ratio of 14 should also limit its downside potential in this frothy market.
2. AbbVie
AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. Humira still accounted for 43% of AbbVie's top line in 2020, but it already faces competition from biosimilars in Europe, and its U.S. patents will expire in 2023.
Image source: Getty Images.
But AbbVie hasn't been sitting still and waiting for those sales to plunge. It expanded its oncology portfolio by buying Pharmcyclics in 2015 and Stemcentrx in 2016. Last May, it acquired Allergan, the maker of Botox.
AbbVie's purchase of Stemcentrx flopped after its main cancer drug failed, but it still expects its other acquisitions and partnerships to diversify its business away from Humira. Based on these factors, Abbvie expects its sales to continue climbing until 2023, followed by a year-long decline before returning to growth in 2024 and 2025.
That road seems bumpy, but AbbVie is also paying a forward dividend yield of 4.9% to investors who are willing to ride out Humira's patent expiration. Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013.
AbbVie's stock also trades at just eight times forward earnings, making it much cheaper than many of its peers in the pharmaceutical sector.
3. Philip Morris International
Philip Morris International, the overseas tobacco giant that was spun off from Altria (NYSE: MO) in 2008, remains a stronger investment than its domestic counterpart, for three simple reasons.
First, PMI is diversified across a broad range of markets, while Altria is completely dependent on the U.S. market, where adult smoking rates have declined over the past five decades. Second, PMI doesn't make reckless investments like Altria, which blew billions of dollars buying stakes in the e-cigarette maker Juul and the cannabis company Cronos Group -- neither of which offset its declining cigarette sales.
Lastly, PMI's iQOS business, which sells heated tobacco devices, generates much stronger growth than its core cigarette business. Altria also sells iQOS products via a partnership with PMI, but they're clumped together with other "smokeless" products like wine and nicotine pouches.
PMI's core strengths, along with its ongoing price hikes to offset declining cigarette shipments, should help it generate stable returns for the foreseeable future. Its growth decelerated last year throughout the pandemic, but analysts expect its revenue and earnings to rise 9% and 16%, respectively, this year -- which are solid growth rates for a stock that trades at 13 times forward earnings.
PMI pays a forward dividend yield of 5.6%, and it's raised that dividend every year since its split with Altria. That streak should continue since it spent just 80% of its FCF on that payout over the past 12 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. | Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013. Keeping track of all the market developments over the past year -- including hot IPOs, surging cryptocurrency prices, and a historic short squeeze that dominated the news -- can be exhausting. But on the bright side, Cisco expects its revenue to finally rise again in the current (third) quarter, as the pandemic-related headwinds wane and it closes its takeover of Acacia Communications (NASDAQ: ACIA). | Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013. Cisco Cisco, the world's top maker of networking switches and routers, has disappointed investors over the past year with five straight quarters of year-over-year revenue declines. Lastly, PMI's iQOS business, which sells heated tobacco devices, generates much stronger growth than its core cigarette business. | Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013. That might seem difficult as the market and many of the stocks in it hover near all-time highs, but Cisco (NASDAQ: CSCO), AbbVie (NYSE: ABBV), and Philip Morris International (NYSE: PM) all easily fit the bill. AbbVie AbbVie struggled over the past few years as its blockbuster arthritis drug Humira, which generated 61% of its revenue back in 2015, faced patent expirations and generic competition. | Its dividend only used up 47% of its FCF over the past 12 months, and it's raised that payout every year since its spin-off from Abbott Labs (NYSE: ABT) in 2013. Lastly, PMI's iQOS business, which sells heated tobacco devices, generates much stronger growth than its core cigarette business. PMI pays a forward dividend yield of 5.6%, and it's raised that dividend every year since its split with Altria. |
32234.0 | 2021-02-12 00:00:00 UTC | 3 Top Healthcare Stocks to Buy in February | ABT | https://www.nasdaq.com/articles/3-top-healthcare-stocks-to-buy-in-february-2021-02-12 | nan | nan | Is the U.S. stock market in bubble territory? It's not easy to know, but there are still some easy answers for those on the lookout for "bubble-proof" healthcare stocks. And they can still win you some great returns.
Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), and CRISPR Therapeutics (NASDAQ: CRSP) are three stocks that neatly fit the bill. Let's dive in to see what makes this diagnostics giant, telehealth leader, and cutting-edge genetic therapy company my top picks for February.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories is a healthcare company with a presence across 160 countries and a business diversified across diagnostics, nutrition, medical devices, and pharmaceuticals segments. This Dividend Aristocrat has already increased its dividend payout for 49 years -- and the 50th year of consecutive dividend raises will make it a Dividend King in late 2021. With the company recently raising its quarterly dividend payments by 25% to $0.45 per share, Abbott Laboratories' dividend yield stands at a respectable 1.45%. The company's dividend payout ratio for the last 12 months was 55.6%, which is quite reasonable, and shows that the company retains the financial flexibility to continue increasing payouts in the coming years.
Abbott Laboratories reported organic sales growth of 10% in fiscal 2020, which is admirable for a diversified, mature healthcare company. The company expects fiscal 2021 adjusted diluted earnings per share (EPS) to be up 35% year over year to $5.
Abbott Laboratories' medical devices and core testing business suffered during the pandemic-triggered lockdowns. The company is expecting demand for cardiovascular and neuromodulation devices and for routine lab testing services to revert to normal in the coming months. But in the diagnostics segment, Abbott Laboratories expects its COVID-19 tests, Alinity testing devices, and rapid-testing portfolio to deliver impressive performance in 2021. The ongoing robust demand for Freestyle Libre diabetes care devices, nutrition brands, and emerging market pharmaceuticals business is also expected to drive top-line and bottom-line performance this year.
With a forward price-to-earnings (P/E) ratio close to 23, Abbott Laboratories is not cheap. However, considering the company has a mature business diversified across products, distribution channels, geographies, payers, and innovation strategies and is growing earnings at a double-digit rate, healthcare investors are bound to find it an attractive and safe pick in 2021.
2. Teladoc Health
Teladoc Health's share price has gained over 44% so far this year and was up 144% in 2020. The company has managed to build a solid client base comprising over 40% of the Fortune 500 companies and over 50 U.S. health plans and reaches 73 million U.S. customers with its telehealth services.
With the acquisitions of InTouch Health and Livongo Health, Teladoc Health's virtual care platform now caters to all aspects of healthcare, from acute care, to mental health, chronic care, complex care, primary care, specialty care, as well as wellness and prevention. This has led to a stickier client base, a rapid gain in new members, and an overall increase in the utilization of Teladoc's services. The company's visit mix has also improved -- patients are increasingly using the Teladoc Health platform to get help in treating non-infectious or chronic diseases, which also drives more visits.
Teladoc Health's financial performance matches its clout. In the first nine months of 2020, the company's revenue jumped 79%, while total patient visits spiked by 163% on a year-over-year basis. Teladoc Health is now guiding for a more than 97% year-over-year rise in revenue and around a 158% year-over-year jump in total patient visits for fiscal 2020, ending December 2020. Teladoc Health also enjoys high revenue visibility, since more than 80% of its revenue comes from access fees (per-month, per-member subscription fees charged to employers for providing telehealth access to employees).
Teladoc Health is making strides toward becoming a profitable company. The company is guiding for adjusted EBITDA of $110 million to $113 million, a jump from $32 million in 2019. Finally, 35% year-over-year growth in fiscal 2020 bookings and a significant increase in deal size as well as cross-selling activity with Livongo Health's clients has positioned the company for a strong 2021.
With a healthcare provider network of more than 11,000 care locations, global distribution channels, and technology that is used to help patients with early disease diagnosis and better management, this company is set to continue its growth trajectory in coming years. Hence, despite trading at a lofty price-to-sales (P/S) ratio of over 47, healthcare investors can still earn handsome returns by picking this stock in February.
3. CRISPR Therapeutics
Gene therapy player CRISPR Therapeutics is leveraging CRISPR-Cas9 gene-editing technology to develop treatments for diseases caused by a single faulty gene such as certain blood cancers and solid tumors, as well as blood disorders such as beta-thalassemia and sickle cell disease.
While most other gene-editing players such as Editas Medicine (NASDAQ: EDIT) and Intellia Therapeutics (NASDAQ: NTLA) have yet to demonstrate efficacy and safety of any of their drug candidates in human trials, CRISPR Therapeutics has already produced favorable results for gene therapy CTX001 in beta-thalassemia and sickle cell disease, and for CTX110 in blood cancer (CD19+ B-cell malignancy) in early stage human trials. In this light, the company is best positioned to enjoy the first-mover advantage in the gene-editing market, which is estimated to be worth $11.2 billion by 2025. Moreover, CRISPR Therapeutics' collaboration with a well-established biotech company, Vertex Pharmaceuticals (NASDAQ: VRTX), has added to the former's funding pool as well as its credibility.
CRISPR Therapeutics' CTX110 can also make a big push in the field of allogeneic chimeric antigen receptor T-cells (CAR-T) therapies. Unlike autologous CAR-T therapies, which are currently marketed and are developed each time using patients' immune cells, allogenic CAR-T therapies are mass manufactured.
CRISPR Therapeutics had a healthy balance sheet with over $1.4 billion in cash and cash equivalents and minimal debt at the end of September 2020. The company may need many more years to become a fully commercial organization. Yet, based on the company's current annual cash burn rate of around $200 million, which needs to be adjusted upward to account for increased expenses in later-stage trials, the company has enough cash to sustain its operations for at least the next four years without raising any additional funds. Investing in any clinical-stage biotechnology company is essentially investing in the future growth potential of its research pipeline. However, unlike the average clinical-stage biotech company, CRISPR Therapeutics does not require cash infusion through equity dilution or acquiring additional debt.
With prices of genome sequencing plummeting at a breakneck speed, genomics is entering the mainstream. CRISPR Therapeutics has a definite edge over most other gene-editing players.
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Editas Medicine, and Teladoc Health. The Motley Fool recommends Vertex Pharmaceuticals. 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), Teladoc Health (NYSE: TDOC), and CRISPR Therapeutics (NASDAQ: CRSP) are three stocks that neatly fit the bill. The ongoing robust demand for Freestyle Libre diabetes care devices, nutrition brands, and emerging market pharmaceuticals business is also expected to drive top-line and bottom-line performance this year. However, considering the company has a mature business diversified across products, distribution channels, geographies, payers, and innovation strategies and is growing earnings at a double-digit rate, healthcare investors are bound to find it an attractive and safe pick in 2021. | Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), and CRISPR Therapeutics (NASDAQ: CRSP) are three stocks that neatly fit the bill. Abbott Laboratories Abbott Laboratories is a healthcare company with a presence across 160 countries and a business diversified across diagnostics, nutrition, medical devices, and pharmaceuticals segments. CRISPR Therapeutics Gene therapy player CRISPR Therapeutics is leveraging CRISPR-Cas9 gene-editing technology to develop treatments for diseases caused by a single faulty gene such as certain blood cancers and solid tumors, as well as blood disorders such as beta-thalassemia and sickle cell disease. | Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), and CRISPR Therapeutics (NASDAQ: CRSP) are three stocks that neatly fit the bill. Abbott Laboratories Abbott Laboratories is a healthcare company with a presence across 160 countries and a business diversified across diagnostics, nutrition, medical devices, and pharmaceuticals segments. With the acquisitions of InTouch Health and Livongo Health, Teladoc Health's virtual care platform now caters to all aspects of healthcare, from acute care, to mental health, chronic care, complex care, primary care, specialty care, as well as wellness and prevention. | Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), and CRISPR Therapeutics (NASDAQ: CRSP) are three stocks that neatly fit the bill. Abbott Laboratories Abbott Laboratories is a healthcare company with a presence across 160 countries and a business diversified across diagnostics, nutrition, medical devices, and pharmaceuticals segments. Teladoc Health Teladoc Health's share price has gained over 44% so far this year and was up 144% in 2020. |
32235.0 | 2021-02-11 00:00:00 UTC | Forget Moderna! This Is a More Lucrative Coronavirus Stock | ABT | https://www.nasdaq.com/articles/forget-moderna-this-is-a-more-lucrative-coronavirus-stock-2021-02-11 | nan | nan | In the first 10 years of Moderna's (NASDAQ: MRNA) existence, the pharmaceutical and biotechnology company didn't launch a single product onto the market. That changed last December when its coronavirus vaccine, mRNA-1273, earned emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA).
The regulatory nod that mRNA-1273 received helps give more credence to Moderna's master plan. The company is looking to develop a raft of mRNA vaccines for infectious diseases, and until a couple of months ago, no vaccine of the mRNA variety had ever obtained FDA approval (or EUA).
Moderna may look like an attractive investment because of these factors, but the company remains a risky long-term bet. Aside from mRNA-1273, none of its pipeline candidates has yet made it to a phase 3 clinical trial; such experimental vaccines can run into negative clinical trial results, regulatory obstacles, competition from other biotechs, and other roadblocks.
While there may be a windfall coming Moderna's way thanks to mRNA-1273, there are other companies involved with coronavirus vaccines or testing that have superior track records of consistent revenue and earnings beats, and still have long runways for growth. One such company is Abbott Laboratories (NYSE: ABT). Here's why the medical-devices giant is a stock worth buying.
Data by YCharts.
Abbott Laboratories' COVID-19 efforts
At the height of the pandemic, curbing the spread of COVID-19 required quick and accurate diagnostics testing kits. Abbott Laboratories devised and marketed several testing options to detect the SARS-CoV-2 virus that causes the disease. Perhaps the most famous of these is its ID NOW COVID-19 diagnostic test, a portable molecular-testing kit that can deliver results in as little as five minutes.
Abbott's coronavirus-related work has clearly had a significant impact on its financial results. For its fourth quarter, which ended on Dec. 31, 2020 -- during which it delivered more than 300 million COVID-19 tests -- the company reported $10.7 billion in sales, a 28.7% year-over-year increase. Abbott's COVID-19 diagnostic tests generated $2.4 billion in sales.
For its full fiscal year 2020, the company reported $34.6 billion in sales, an 8.5% increase compared to fiscal year 2019. Abbott's bottom line was equally impressive, with its adjusted earnings per share (EPS) for the fourth quarter coming in at $1.45, for 52.6% growth compared to the year-ago period. Its full-year adjusted EPS was $3.65, much better than the $3.24 it recorded during its previous fiscal year.
It's worth noting that many medical-device manufacturers encountered serious headwinds last year, as the volume of elective surgeries dropped because of the pandemic. Despite these obstacles, Abbott Laboratories found a way to deliver excellent financial results.
Image source: Getty Images.
More growth to come
Abbott isn't done benefiting from its coronavirus-related efforts. The company expects adjusted EPS of at least $5.00 for the fiscal year 2021. According to CEO Robert Ford, COVID-19 testing will continue to be a major growth driver.
Ford expects demand to remain high despite the rollout of vaccines. The market research and consulting company, Grand View Research, estimates that this segment will expand at a compound annual growth rate of 3.1% between 2021 and 2027, and Abbott Laboratories is well-positioned to profit.
There are other opportunities available to the company. First, there is its MitraClip system, one of the leading devices on the market for the treatment of mitral regurgitation. This condition affects a patient's mitral valve, leading to blood-flow problems.
If severe enough and left untreated, this disorder can lead to other serious health problems. Abbott's MitraClip allows physicians to treat the condition in a non-invasive way -- that is, without the need for open surgery. It's been demonstrated in clinical trials to improve health outcomes while reducing hospitalizations.
Last year, the FDA approved the fourth-generation version of this device, MitraClip G4. And more recently, Medicare expanded reimbursement coverage of the system, which will significantly increase the market for the device in the country. Meanwhile, Abbott is already working on the next version of the MitraClip system.
Second, there is Abbott's diabetes care segment. The company's FreeStyle Libre is a continuous glucose monitoring (CGM) system that allows patients with diabetes to keep track of their blood glucose levels. During Abbott's fiscal year 2020, the diabetes care segment reported sales of $3.3 billion, for a 29.4% year-over-year increase.
This impressive growth was largely due to the FreeStyle Libre franchise. The CGM market will keep expanding at a good clip, and Abbott Laboratories is likely to remain one of the leaders. These opportunities and others will help the company deliver consistently strong financial results.
A juicy dividend too
There's another major reason why Abbott Laboratories is a more lucrative stock than Moderna: The medical-devices company is a Dividend Aristocrat, having increased its dividend for 49 years in a row; it currently offers a yield of 1.23%. Although that's lower than the average S&P 500 yield of 1.57%, it's higher than Moderna, which offers no dividends. Abbott also boasts a cash payout ratio of 54.22%, giving the healthcare giant plenty of room for future dividend increases. In short, Abbott Laboratories is also a decent option for income-oriented investors.
A better bet than Moderna
While Moderna has outperformed Abbott Laboratories in the past year and will likely continue to deliver strong growth in the next year or two, life after its coronavirus vaccine is less certain at the moment. By contrast, Abbott has a long track record of success, provides excellent long-term growth prospects, and offers a dividend to its shareholders. Between these two companies, Abbott Laboratories looks like the more lucrative option for long-term investors.
10 stocks we like better than Abbott Laboratories
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Prosper Junior Bakiny has no position in any of the stocks mentioned. 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. | One such company is Abbott Laboratories (NYSE: ABT). In the first 10 years of Moderna's (NASDAQ: MRNA) existence, the pharmaceutical and biotechnology company didn't launch a single product onto the market. While there may be a windfall coming Moderna's way thanks to mRNA-1273, there are other companies involved with coronavirus vaccines or testing that have superior track records of consistent revenue and earnings beats, and still have long runways for growth. | One such company is Abbott Laboratories (NYSE: ABT). For its full fiscal year 2020, the company reported $34.6 billion in sales, an 8.5% increase compared to fiscal year 2019. During Abbott's fiscal year 2020, the diabetes care segment reported sales of $3.3 billion, for a 29.4% year-over-year increase. | One such company is Abbott Laboratories (NYSE: ABT). The market research and consulting company, Grand View Research, estimates that this segment will expand at a compound annual growth rate of 3.1% between 2021 and 2027, and Abbott Laboratories is well-positioned to profit. A juicy dividend too There's another major reason why Abbott Laboratories is a more lucrative stock than Moderna: The medical-devices company is a Dividend Aristocrat, having increased its dividend for 49 years in a row; it currently offers a yield of 1.23%. | One such company is Abbott Laboratories (NYSE: ABT). Here's why the medical-devices giant is a stock worth buying. A better bet than Moderna While Moderna has outperformed Abbott Laboratories in the past year and will likely continue to deliver strong growth in the next year or two, life after its coronavirus vaccine is less certain at the moment. |
32236.0 | 2021-02-11 00:00:00 UTC | 4 Top COVID Stocks to Buy in February | ABT | https://www.nasdaq.com/articles/4-top-covid-stocks-to-buy-in-february-2021-02-11 | nan | nan | In the early days of the COVID-19 pandemic, coronavirus-themed stock investing was best left to investors with an appetite for higher risk. Vaccines were early stage and not only represented opportunity for big stock market rewards, but also for big share declines. But the situation has evolved. Low-risk investors can opt for coronavirus companies with late-stage programs and newly marketed products. And there still are plenty of earlier-stage companies to suit the needs of high-risk and growth investors.
Here, I'll talk about two stocks cautious investors may consider buying this month -- and two stocks aggressive investors may consider. There's something for everyone. Let's start with our lower-risk options.
Image source: Getty Images.
1. Moderna
I probably don't have to introduce Moderna (NASDAQ: MRNA). The company led the coronavirus vaccine race last year and launched its vaccine for adults age 18 and older in December. The shares gained more than 430% in 2020. But there are plenty of reasons for its share price to continue to grow.
In the near term, Moderna will be reporting revenue from product sales for the very first time. We can expect that in the first-quarter earnings report this spring. So far, for the full year 2021, Moderna has signed advanced purchase agreements totaling $11.7 billion in coronavirus vaccine sales.
In the future, those sales likely will move higher. Moderna plans to tap into a wider patient market. The company is testing its vaccine for teens aged 12 through 17 and hopes to commercialize in that indication by this year's back-to-school period. The company is also working on a possible booster to address newer strains of the coronavirus, including those emanating from the U.K. and South Africa.
2. Abbott
Abbott Laboratories (NYSE: ABT) has become a leader in coronavirus diagnostics. The U.S. Food and Drug Administration (FDA) has granted eight of the company's tests Emergency Use Authorization (EUA). In the fourth quarter ended Dec. 31, Abbott reported $2.4 billion in coronavirus diagnostics sales. And worldwide sales in the overall diagnostics business soared 111%.
But I think those gains are just the start. Here's why: The FDA authorized Abbott's rapid, $5, portable test -- the BinaxNOW -- in August. So, the fourth quarter was just the first full quarter of commercialization for that test. And the FDA only authorized an at-home version of the BinaxNOW in December. Abbott expects to deliver 30 million of those tests in the first quarter of this year.
Considering President Joe Biden's push for more testing, it's easy to imagine Abbott's COVID-19 diagnostics sales picking up even more steam in the months to come.
3. Redhill
Redhill Biopharma (NASDAQ: RDHL) is one of my favorite options for investors with a stomach for risk. That's because the company's coronavirus treatment candidate is still in phase 2 trials. And right now, the outcome of this candidate's clinical studies is the biggest catalyst for the stock.
So far, phase 2 data have been encouraging. Redhill reported that opaganib helped the breathing of hospitalized COVID-19 patients suffering from pneumonia. More than 52% of patients given the investigational treatment no longer needed oxygen support by day 14. That's compared to only 22% in the control group.
What's most interesting about opaganib is its mode of action in the human body. It targets part of a cell involved in viral replication instead of targeting the virus itself. That means it may be victorious against the virus even as it mutates. This is a significant plus considering recent concerns over new coronavirus strains.
So far, the FDA has only approved one treatment for coronavirus -- Veklury (also known as remdesivir) by Gilead Sciences (NASDAQ: GILD). The regulatory agency has granted EUAs to a handful of others, including antibody treatments by Regeneron Pharmaceuticals (NASDAQ: REGN) and Eli Lilly (NYSE: LLY). And companies haven't yet brought forth one major therapy that can cure a broad range of coronavirus patients. This means there is plenty of room for newcomers -- especially a newcomer with solid efficacy data from late-stage trials. Veklury generated more than $1 billion in sales for Gilead in the most recent quarter. Of course, therapies won't all be priced the same. But considering the need for treatment options, it's clear that an efficacious treatment could become a blockbuster.
What's next for Redhill? A readout from the phase 2/3 trial of opaganib in severe COVID pneumonia is expected in the first quarter of this year.
4. Gritstone
Gritstone Oncology (NASDAQ: GRTS) is another possibility for aggressive investors. The company recently signed an agreement to begin clinical studies of its coronavirus vaccine candidate with the National Institutes of Health's (NIH) National Institute of Allergy and Infectious Diseases.
With more advanced candidates out there, why should we look at one that's this far behind? Gritstone's potential product has the ability to handle various viral strains. The Gritstone candidate, like today's vaccines, targets the virus's spike protein. But it also targets other viral antigens. The aim is to produce neutralizing antibodies and invoke T-cell responses against the original virus and various strains. The antibodies and T-cells then work together to block and fight infection.
Preclinical results were positive. But until we know how the candidate performs in human trials, risk is high. So carefully consider your risk tolerance before buying shares of Gritstone.
10 stocks we like better than Moderna Inc.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. 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 Abbott Laboratories (NYSE: ABT) has become a leader in coronavirus diagnostics. So far, for the full year 2021, Moderna has signed advanced purchase agreements totaling $11.7 billion in coronavirus vaccine sales. Considering President Joe Biden's push for more testing, it's easy to imagine Abbott's COVID-19 diagnostics sales picking up even more steam in the months to come. | Abbott Abbott Laboratories (NYSE: ABT) has become a leader in coronavirus diagnostics. So far, for the full year 2021, Moderna has signed advanced purchase agreements totaling $11.7 billion in coronavirus vaccine sales. In the fourth quarter ended Dec. 31, Abbott reported $2.4 billion in coronavirus diagnostics sales. | Abbott Abbott Laboratories (NYSE: ABT) has become a leader in coronavirus diagnostics. Here, I'll talk about two stocks cautious investors may consider buying this month -- and two stocks aggressive investors may consider. So far, for the full year 2021, Moderna has signed advanced purchase agreements totaling $11.7 billion in coronavirus vaccine sales. | Abbott Abbott Laboratories (NYSE: ABT) has become a leader in coronavirus diagnostics. In the early days of the COVID-19 pandemic, coronavirus-themed stock investing was best left to investors with an appetite for higher risk. That's because the company's coronavirus treatment candidate is still in phase 2 trials. |
32237.0 | 2021-02-10 00:00:00 UTC | Looking For The Best Health Care Stocks To Buy This Month? 4 To Consider | ABT | https://www.nasdaq.com/articles/looking-for-the-best-health-care-stocks-to-buy-this-month-4-to-consider-2021-02-10 | nan | nan | 4 Top Health Care Stocks To Watch This Month
Health care stocks have been among the top performers on the stock market this year. Unsurprisingly, this is because we are still facing a global pandemic, and health care has taken center stage. Coupled with waves of new homebound investors, this makes up a perfect storm for the top health care stocks to thrive. For investors, the logic is quite sound when it comes to investing in the health care industry. Everybody will eventually need healthcare, regardless of whether there is a pandemic or not. By extension, this would translate to health care stocks bringing gains in good times and bad. Nevertheless, with so many options to choose from, where should investors begin?
Picking Out The Best Health Care Stocks
From biotech companies to telehealth and commercial health care companies, there are plenty of options to choose from. Across the board, we have seen massive rallies from health care companies. For instance, medical technology companies like TransMedics (NASDAQ: TMDX) and Abbott Laboratories (NYSE: ABT) have skyrocketed in value over the past year. Both companies hit new all-time highs at yesterday’s closing bell. Not to mention, there has also been immense growth in vaccine and digital health care companies. Well, considering that there are always new innovations in the field, it is important to know the latest movers. To help with that, here are four health care stocks making waves now.
Best Health Care Stocks To Buy [Or Sell] Now
Applied UV Inc. (NASDAQ: AUVI)
KalVista Pharmaceuticals Inc. (NASDAQ: KALV)
111 Inc. (NASDAQ: YI)
Establishment Labs Holdings Inc. (NASDAQ: ESTA)
Applied UV Inc.
First up, Applied UV is a company that develops and acquires infection prevention technology. Clients employ its offerings across the healthcare, hospitality, commercial, and residential markets. In detail, its products utilize ultraviolet light technology to destroy pathogens automatically and safely. Amidst a pandemic, proper disinfection of spaces is vital, and this has likely placed AUVI stock in the spotlight. In fact, AUVI stock more than tripled in price yesterday after news of its latest acquisition broke.
To explain, Applied UV acquired the rights to manufacture and sell the Airocide System, air disinfection tech. The company acquired these rights from Akida Holdings yesterday. To highlight, Airocide was developed in collaboration with the National Aeronautics and Space Administration (NASA). This patented pathogen-killing technology can reportedly destroy a wide range of disease-causing carbon-based molecules. By and large, this move synergizes well with Applied UV’s existing disinfection tech portfolio.
CEO Keyoumars Saeed said, “Combined, we will offer a broader set of customers a more diversified selection of infection control products and services. We welcome the people of Airocide® to the Applied UV team and firmly believe that together, we will create greater value for our customers and shareholders.” Given all of this, will you be investing in AUVI stock?
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KalVista Pharmaceuticals Inc.
Another top health care stock in focus now would be KalVista. The Massachusetts-based pharmaceutical company focuses on developing small-molecule-based treatments for rare diseases. Its developmental pipeline consists of treatments for hereditary angioedema (HAE) and diabetic macular edema (DME). More importantly, KALV stock surged by over 114% during intraday trading yesterday, after an update on KalVista’s HAE treatment.
Basically, the company announced positive topline data from the Phase 2 clinical trial of its KVD900, HAE treatment. In detail, KalVista found that 85% of patients treated with KVD900 within an hour of an HAE attack did not require rescue medication. Aside from being effective, the drug is also administered orally which can be a quicker and more comfortable means of treatment for patients. Seeing as KalVista’s treatment is the first that can be taken orally, it does set it apart from its competition.
Accordingly, investors would be eager to jump on these kinds of positive developments. Adding to that, the company also announced an underwritten public offering of 4.5 million shares after market close yesterday. As the company is looking to fund its groundbreaking drug, will you be adding KALV stock to your portfolio?
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111 Inc.
Following that, we will be looking at 111 Inc. The China-based company operates via a digital and mobile healthcare platform. The 111 platform provides pharmacy distribution, medical consultancy, e-prescriptions, and other digital healthcare solutions. Similar to Teladoc (NYSE: TDOC), 111 is one of the largest telehealth companies in China. Given the immense demand for telehealth services amidst the pandemic, the company has been posting stellar revenue figures over the past year. Back in November, 111 posted a 112% year-over-year jump in revenue in its third-quarter fiscal. This added up to over $366.5 million. Notably, YI stock has been on a tear gaining by over 60% since its major announcement last Friday.
In summary, 111 announced a strategic partnership with the Jilin Baiyi Doctor Group (JBDG). The JBDG is the largest doctor group in China’s Jilin province. As expected, the duo will leverage 111’s leading digital health care platform to connect homebound patients with medical professionals.
Above all, the company hopes to improve patient care, optimize medical resources, and improve patient experiences in Northeast China. In the larger scheme of things, this is an ambitious play by 111 as it continues to expand its market reach in China. With the company showing no signs of slowing down, could it be a good time to buy YI stock? Your guess is as good as mine.
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Establishment Labs Holdings Inc.
Establishment Labs, or ELabs, is a global medical technology company that focuses on women’s health. Particularly, it specializes in the breast aesthetics and reconstruction market. The company designs and develops silicone gel-filled breast implants. Despite facing pandemic-related headwinds last year, the company continues to see a strong recovery financially. In its recent quarter fiscal posted in November, ELabs posted total revenue of $22.8 million. Additionally, it also saw a massive 91% year-over-year jump in cash on hand, equaling $81.43 million. Besides, investors seem to be keen on investing in ESTA stock as well. Over the past year, it has climbed over 150% and closed yesterday’s trading session at a record high. This growth does coincide with its latest virtual investor event held yesterday.
In the event, ELabs provided a comprehensive look into its Motiva MIA system for minimally invasive breast augmentation. To elaborate, ELabs explained that the system is a significant advancement in the field of breast aesthetics. Comparatively, the MIA system boasts several key upsides over conventional augmentation surgery. This includes shorter recovery time, lower postoperative pain, and a short learning curve for surgeons.
Moreover, the company has received a Free Sale Certificate for the MIA system to begin regulatory approval processes worldwide. It seems that ELabs is kicking into high gear with its industry-leading technology. Could this make ESTA stock a good investment? I’ll let you decide.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For instance, medical technology companies like TransMedics (NASDAQ: TMDX) and Abbott Laboratories (NYSE: ABT) have skyrocketed in value over the past year. CEO Keyoumars Saeed said, “Combined, we will offer a broader set of customers a more diversified selection of infection control products and services. Given the immense demand for telehealth services amidst the pandemic, the company has been posting stellar revenue figures over the past year. | For instance, medical technology companies like TransMedics (NASDAQ: TMDX) and Abbott Laboratories (NYSE: ABT) have skyrocketed in value over the past year. Picking Out The Best Health Care Stocks From biotech companies to telehealth and commercial health care companies, there are plenty of options to choose from. Best Health Care Stocks To Buy [Or Sell] Now Applied UV Inc. (NASDAQ: AUVI) KalVista Pharmaceuticals Inc. (NASDAQ: KALV) 111 Inc. (NASDAQ: YI) Establishment Labs Holdings Inc. (NASDAQ: ESTA) Applied UV Inc. First up, Applied UV is a company that develops and acquires infection prevention technology. | For instance, medical technology companies like TransMedics (NASDAQ: TMDX) and Abbott Laboratories (NYSE: ABT) have skyrocketed in value over the past year. 4 Top Health Care Stocks To Watch This Month Health care stocks have been among the top performers on the stock market this year. Picking Out The Best Health Care Stocks From biotech companies to telehealth and commercial health care companies, there are plenty of options to choose from. | For instance, medical technology companies like TransMedics (NASDAQ: TMDX) and Abbott Laboratories (NYSE: ABT) have skyrocketed in value over the past year. 4 Top Health Care Stocks To Watch This Month Health care stocks have been among the top performers on the stock market this year. Picking Out The Best Health Care Stocks From biotech companies to telehealth and commercial health care companies, there are plenty of options to choose from. |
32238.0 | 2021-02-09 00:00:00 UTC | This Stock Could Be a Surprise Growth Pick | ABT | https://www.nasdaq.com/articles/this-stock-could-be-a-surprise-growth-pick-2021-02-09 | nan | nan | When we think of growth stocks, we often think of young companies that aren't necessarily profitable. They might be producing double-digit or triple-digit revenue gains -- but they're investing all of that back into their businesses. Now what if I told you there's an established healthcare company out there -- with revenue and profit growth in the double digits?
The safety of a player that's been around for a long time and the possibility of strong revenue gains -- and share price increases -- spell a good deal. This particular stock climbed 26% last year, and recently reported stellar quarterly and full-year earnings. I'm talking about healthcare giant Abbott Laboratories (NYSE: ABT). Let's take a closer look at this surprising growth pick.
Image source: Getty Images.
A portfolio mix that works
Diversification has helped Abbott build a growth-friendly product portfolio. The company includes four businesses: diagnostics, medical devices, nutrition, and pharmaceuticals. Abbott's annual net income has climbed for the past three years. And annual revenue has increased for the past eight years. Usually, the medical device business is the strongest area. For instance, in 2019, that business accounted for 38% of Abbott's full-year revenue.
Last year, however, the coronavirus pandemic led to fewer procedures in healthcare settings. Hospitals focused resources on COVID-19 patients. And that weighed on Abbott's medical device sales. But early in the crisis, Abbott already was thinking growth. The company began working on coronavirus diagnostics and since has emerged a leader in the field.
The U.S. Food and Drug Administration (FDA) has granted Emergency Use Authorization (EUA) to eight of Abbott's COVID-19 tests. That includes the rapid, portable BinaxNOW in the U.S. Internationally, authorities have approved the similar Panbio diagnostic. Both are generating major revenue for Abbott.
In the fourth quarter ending Dec. 31, the BinaxNOW, Panbio, and Abbott's ID NOW rapid testing platforms brought in $1.9 billion in sales. All together, Abbott's coronavirus diagnostics generated $2.4 billion. Abbott has delivered more than 400 million coronavirus tests since the start of the pandemic -- and 300 million of those were shipped in the fourth quarter. The BinaxNOW and the Panbio launched in late summer, so we're just right now starting to see how their sales are translating into earnings.
A surge in testing
This surge in testing helped sales of Abbott's diagnostics business soar 111% in the fourth quarter and 40% for the year. All figures are year over year. Total fourth-quarter sales -- including all business segments -- climbed more than 28% to $10.7 billion. And earnings per share (EPS) for the quarter jumped more than 52% to $1.45. What's even better is the strength of Abbott's forecast for the year ahead. The company predicts EPS growth of more than 35% for 2021.
So how will all of this growth continue? When it comes to coronavirus diagnostics sales, there's likely a lot more to come. The U.S. ordered 150 million BinaxNOW tests -- and Abbott completed that order last month. It's now working on a second order for 30 million more tests by March. Newly-inaugurated President Joe Biden has made coronavirus testing one of his main goals. It's not hard to imagine the new administration's renewed focus on testing resulting in more orders in the future.
Even if the pandemic eases, it's clear that the need for testing will persist for some time. Testing is the primary way of monitoring the presence of the virus worldwide. And while Abbott's coronavirus testing had to compensate for flagging medical device sales this year, it probably won't have to do that again. Hospitals are resuming other procedures, and medical device sales are recovering. For instance, Abbott's medical device sales sank 21% in the quarter ended June 30. They rose 1.7% in the fourth quarter.
It's very likely that this year and into the future, Abbott will benefit from coronavirus diagnostic sales and medical device sales. So, the company's double-digit EPS goal for the year seems within reach. And I think that this means more gains are on the horizon for shares of this healthcare company, too.
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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*Stock Advisor returns as of November 20, 2020
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. | I'm talking about healthcare giant Abbott Laboratories (NYSE: ABT). The safety of a player that's been around for a long time and the possibility of strong revenue gains -- and share price increases -- spell a good deal. In the fourth quarter ending Dec. 31, the BinaxNOW, Panbio, and Abbott's ID NOW rapid testing platforms brought in $1.9 billion in sales. | I'm talking about healthcare giant Abbott Laboratories (NYSE: ABT). The company includes four businesses: diagnostics, medical devices, nutrition, and pharmaceuticals. In the fourth quarter ending Dec. 31, the BinaxNOW, Panbio, and Abbott's ID NOW rapid testing platforms brought in $1.9 billion in sales. | I'm talking about healthcare giant Abbott Laboratories (NYSE: ABT). A surge in testing This surge in testing helped sales of Abbott's diagnostics business soar 111% in the fourth quarter and 40% for the year. And while Abbott's coronavirus testing had to compensate for flagging medical device sales this year, it probably won't have to do that again. | I'm talking about healthcare giant Abbott Laboratories (NYSE: ABT). When we think of growth stocks, we often think of young companies that aren't necessarily profitable. The company includes four businesses: diagnostics, medical devices, nutrition, and pharmaceuticals. |
32239.0 | 2021-02-09 00:00:00 UTC | Here's Why Investors Should Remember These 2 Healthcare Lessons in 2021 | ABT | https://www.nasdaq.com/articles/heres-why-investors-should-remember-these-2-healthcare-lessons-in-2021-2021-02-09 | nan | nan | What do investors considering healthcare stocks like Intuitive Surgical (NASDAQ: ISRG), Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) need to remember in 2021?
In this Motley Fool Live video, recorded on Jan. 29, healthcare and cannabis bureau chief Corinne Cardina and Fool.com writer Cory Renauer discuss two key takeaways for shareholders of the sector's most successful businesses.
10 stocks we like better than Intuitive Surgical
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Corinne Cardina: What are three takeaways for investors who are thinking about buying healthcare stocks?
Cory Renauer: Maybe we will narrow it down to just two takeaways.
Cardina: Sure.
Renauer: If you hold shares of profitable stocks long enough, eventually, you're going to come out ahead. If you're an investor that gets nervous about day-to-day stock market fluctuations, you know this past week was a little bit nerve-racking, holding a strongly profitable company like Intuitive Surgical or Abbott Labs, or Johnson & Johnson, makes it a lot easier to take short-term market fluctuations in stride, and the best way to make money in stocks is to hold those stocks for a long time. You might not see 20% gains year after year. But nice companies like these, you're not going to lose money if you hang onto them.
Sorry. Second takeaway. COVID-19 and all the weird effects that it's having on the stock market, these are temporary. Demand for diagnostics is going to drop. But on the other hand, healthcare providers are going to return to normal, and Intuitive Surgical will be able to continue growing. You've got to think on a long-term basis.
Corinne Cardina has no position in any of the stocks mentioned. Cory Renauer owns shares of Johnson & Johnson. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What do investors considering healthcare stocks like Intuitive Surgical (NASDAQ: ISRG), Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) need to remember in 2021? In this Motley Fool Live video, recorded on Jan. 29, healthcare and cannabis bureau chief Corinne Cardina and Fool.com writer Cory Renauer discuss two key takeaways for shareholders of the sector's most successful businesses. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Intuitive Surgical wasn't one of them! | What do investors considering healthcare stocks like Intuitive Surgical (NASDAQ: ISRG), Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) need to remember in 2021? If you're an investor that gets nervous about day-to-day stock market fluctuations, you know this past week was a little bit nerve-racking, holding a strongly profitable company like Intuitive Surgical or Abbott Labs, or Johnson & Johnson, makes it a lot easier to take short-term market fluctuations in stride, and the best way to make money in stocks is to hold those stocks for a long time. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. | What do investors considering healthcare stocks like Intuitive Surgical (NASDAQ: ISRG), Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) need to remember in 2021? See the 10 stocks *Stock Advisor returns as of November 20, 2020 Corinne Cardina: What are three takeaways for investors who are thinking about buying healthcare stocks? If you're an investor that gets nervous about day-to-day stock market fluctuations, you know this past week was a little bit nerve-racking, holding a strongly profitable company like Intuitive Surgical or Abbott Labs, or Johnson & Johnson, makes it a lot easier to take short-term market fluctuations in stride, and the best way to make money in stocks is to hold those stocks for a long time. | What do investors considering healthcare stocks like Intuitive Surgical (NASDAQ: ISRG), Abbott Labs (NYSE: ABT), and Johnson & Johnson (NYSE: JNJ) need to remember in 2021? See the 10 stocks *Stock Advisor returns as of November 20, 2020 Corinne Cardina: What are three takeaways for investors who are thinking about buying healthcare stocks? If you're an investor that gets nervous about day-to-day stock market fluctuations, you know this past week was a little bit nerve-racking, holding a strongly profitable company like Intuitive Surgical or Abbott Labs, or Johnson & Johnson, makes it a lot easier to take short-term market fluctuations in stride, and the best way to make money in stocks is to hold those stocks for a long time. |
32240.0 | 2021-02-09 00:00:00 UTC | Can DexCom Stock Gain More After A 10% Rise In Last 5 Days? | ABT | https://www.nasdaq.com/articles/can-dexcom-stock-gain-more-after-a-10-rise-in-last-5-days-2021-02-09 | nan | nan | The stock price of DexCom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has risen by 10% over the last five trading days. Earlier in January, the company reported strong preliminary numbers for Q4, with an estimated top-line growth over 20% y-o-y. The company will report its Q4 and full year results on Thursday, February 11. However, what has kept the stock buzzing over the past week was its first ever commercial for Super Bowl, starring Nick Jonas. The commercial calls for better care for people with diabetes without pricking fingers to measure their glucose levels. The commercial is aimed to increase awareness of DexCom’s G6 CGM at one of the most watched sports events in the U.S. The 10% rise in DXCM stock compares with just 2% growth seen in the broader S&P 500 index. Now, is DXCM stock poised to gain further? We think so. We believe that DexCom will continue to benefit from its advanced CGM systems with ease of monitoring at home, compared to clinic visits or other CGM devices that require finger pricking. There is a 61% chance of a rise in DXCM stock over the next month (twenty one trading days) based on our machine learning analysis of trends in the stock price over the last five years. See our analysis on DexCom Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the DXCM Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how DXCM stock could move.
5D: DXCM 9.9%, vs. S&P500 2.4%; Outperformed market
(7% likelihood event)
DexCom stock rose 9.9% over a five-day trading period ending 2/4/2021, compared to the broader market (S&P500) rise of 2.4%
A change of 9.9% or more over five trading days is a 7% likelihood event, which has occurred 94 times out of 1256 in the last five years
10D: DXCM 9.7%, vs. S&P500 0.7%; Outperformed market
(30% likelihood event)
DexCom stock rose 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 0.7%
A change of 9.7% or more over ten trading days is a 30% likelihood event, which has occurred 380 times out of 1240 in the last five years
While DXCM stock could gain more, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock price of DexCom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has risen by 10% over the last five trading days. Earlier in January, the company reported strong preliminary numbers for Q4, with an estimated top-line growth over 20% y-o-y. However, what has kept the stock buzzing over the past week was its first ever commercial for Super Bowl, starring Nick Jonas. | The stock price of DexCom (NASDAQ: DXCM), best known for its continuous glucose monitoring (CGM) systems, has risen by 10% over the last five trading days. See our analysis on DexCom Stock Chances of Rise for more details. 5D: DXCM 9.9%, vs. S&P500 2.4%; Outperformed market (7% likelihood event) DexCom stock rose 9.9% over a five-day trading period ending 2/4/2021, compared to the broader market (S&P500) rise of 2.4% A change of 9.9% or more over five trading days is a 7% likelihood event, which has occurred 94 times out of 1256 in the last five years 10D: DXCM 9.7%, vs. S&P500 0.7%; Outperformed market (30% likelihood event) DexCom stock rose 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 0.7% A change of 9.7% or more over ten trading days is a 30% likelihood event, which has occurred 380 times out of 1240 in the last five years While DXCM stock could gain more, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. | There is a 61% chance of a rise in DXCM stock over the next month (twenty one trading days) based on our machine learning analysis of trends in the stock price over the last five years. Check out the DXCM Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how DXCM stock could move. 5D: DXCM 9.9%, vs. S&P500 2.4%; Outperformed market (7% likelihood event) DexCom stock rose 9.9% over a five-day trading period ending 2/4/2021, compared to the broader market (S&P500) rise of 2.4% A change of 9.9% or more over five trading days is a 7% likelihood event, which has occurred 94 times out of 1256 in the last five years 10D: DXCM 9.7%, vs. S&P500 0.7%; Outperformed market (30% likelihood event) DexCom stock rose 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 0.7% A change of 9.7% or more over ten trading days is a 30% likelihood event, which has occurred 380 times out of 1240 in the last five years While DXCM stock could gain more, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. | We believe that DexCom will continue to benefit from its advanced CGM systems with ease of monitoring at home, compared to clinic visits or other CGM devices that require finger pricking. Check out the DXCM Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how DXCM stock could move. 5D: DXCM 9.9%, vs. S&P500 2.4%; Outperformed market (7% likelihood event) DexCom stock rose 9.9% over a five-day trading period ending 2/4/2021, compared to the broader market (S&P500) rise of 2.4% A change of 9.9% or more over five trading days is a 7% likelihood event, which has occurred 94 times out of 1256 in the last five years 10D: DXCM 9.7%, vs. S&P500 0.7%; Outperformed market (30% likelihood event) DexCom stock rose 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 0.7% A change of 9.7% or more over ten trading days is a 30% likelihood event, which has occurred 380 times out of 1240 in the last five years While DXCM stock could gain more, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. |
32241.0 | 2021-02-07 00:00:00 UTC | 2 Green Flags for Abbott Labs and 1 Red Flag | ABT | https://www.nasdaq.com/articles/2-green-flags-for-abbott-labs-and-1-red-flag-2021-02-07 | nan | nan | Earnings season is flying along so quickly that you might've missed one of the most anticipated fourth-quarter reports in the healthcare space. Abbott Labs (NYSE: ABT) had a lot to say about its performance in 2020 and its plans for the year ahead.
In this Motley Fool Live video recorded on Jan. 29, 2021, Healthcare and Cannabis Bureau Chief Corinne Jurney Cardina and Fool.com writer Cory Renauer discussed two key highlights and a soft spot to watch out for.
10 stocks we like better than Abbott Laboratories
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Corinne Cardina: Tell us about what Abbott Labs reported and any green flag from its earnings for the fourth quarter.
Cory Renauer: Sure, one big green flag in Abbott's fourth-quarter was incredible growth on the top and bottom lines because of new COVID-19 diagnostic tools. The company reported a new approval for one of their COVID-19 diagnostic tools. It seemed like every week last year, including a small cart for at-home use. The company reported sales that grew 28% year-over-year and adjusted earnings that grew 53% year-over-year. This is a big company that was earning a lot to begin with. Very impressive.
The second green flag for Abbott. The company issued really positive forward guidance for 2021. The company expects earnings-per-share to grow by more than 35% this year. There aren't any rewards for accurately predicting your earnings for the entire year in the beginning of the year. I'm not saying that companies lowball it and then raise it so they know they can raise it later. But I mean, starting out at 35% tells you that the company is confident about strong demand for the coronavirus test continuing through the year and the rest of their products as well.
Cardina: Certainly. Were there any concerns that might be a red or yellow flag?
Renauer: Again, orange flag, this is probably as close to red as we're getting today. Coronavirus testing demand isn't going to last forever. Although it sure feels like forever.
Cardina: I know.
Renauer: Once vaccine availability catches up with demand. I think it was over a quarter of total revenue that the company reported in the fourth quarter. That could drop off quickly before the end of the year. The company delivered 300 million COVID-19 tests in the fourth quarter. That's a lot of tests. That's not going to last forever.
Corinne Cardina has no position in any of the stocks mentioned. Cory Renauer 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 Labs (NYSE: ABT) had a lot to say about its performance in 2020 and its plans for the year ahead. In this Motley Fool Live video recorded on Jan. 29, 2021, Healthcare and Cannabis Bureau Chief Corinne Jurney Cardina and Fool.com writer Cory Renauer discussed two key highlights and a soft spot to watch out for. Cory Renauer: Sure, one big green flag in Abbott's fourth-quarter was incredible growth on the top and bottom lines because of new COVID-19 diagnostic tools. | Abbott Labs (NYSE: ABT) had a lot to say about its performance in 2020 and its plans for the year ahead. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Corinne Cardina: Tell us about what Abbott Labs reported and any green flag from its earnings for the fourth quarter. Cory Renauer: Sure, one big green flag in Abbott's fourth-quarter was incredible growth on the top and bottom lines because of new COVID-19 diagnostic tools. | Abbott Labs (NYSE: ABT) had a lot to say about its performance in 2020 and its plans for the year ahead. 10 stocks we like better than Abbott Laboratories 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 November 20, 2020 Corinne Cardina: Tell us about what Abbott Labs reported and any green flag from its earnings for the fourth quarter. | Abbott Labs (NYSE: ABT) had a lot to say about its performance in 2020 and its plans for the year ahead. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Corinne Cardina: Tell us about what Abbott Labs reported and any green flag from its earnings for the fourth quarter. There aren't any rewards for accurately predicting your earnings for the entire year in the beginning of the year. |
32242.0 | 2021-02-05 00:00:00 UTC | Here's the Best Dividend Aristocrat on the Market Right Now | ABT | https://www.nasdaq.com/articles/heres-the-best-dividend-aristocrat-on-the-market-right-now-2021-02-05 | nan | nan | Tina Turner had a big hit in the late '80s with a song called "The Best." The lyrics to the great R&B singer's tune included the line: "You're simply the best. Better than all the rest."
It's not always a simple task to identify "the best" in every category, though. For example, there are nearly 70 Dividend Aristocrats. These are members of the S&P 500 that have increased their dividends for at least 25 consecutive years. As you might expect, the list includes a lot of solid, well-run companies that are household names.
I set out to determine which of these stocks is better than all the rest. Here's the best Dividend Aristocrat on the market right now.
Image source: Getty Images.
A healthcare giant
After examining all of the current Dividend Aristocrats, I selected Abbott Laboratories (NYSE: ABT) as the best in the group. The company is a healthcare giant with a market cap of well over $200 billion and has been in business since 1888.
Abbott has paid a dividend for a remarkable 388 consecutive quarters. That streak began way back in 1924 when Calvin Coolidge was president. The company has increased its dividend for 49 years in a row and will probably move into the even more prestigious group of dividend stocks known as Dividend Kings -- S&P 500 members with at least 50 years of consecutive dividend increases -- later this year.
Like several other Dividend Aristocrats, Abbott is well diversified. It's a leader in multiple markets, including branded generic drugs, cardiovascular care, chronic pain devices, diabetes care, diagnostics, and nutritional products.
Through the years, the company has become highly respected. For example, Fortune magazine has named Abbott as the No. 1 company in its industry on its list of "Top 50 Most Admired Companies" for eight years running. Fortune also picked Abbott as one of its "Best Big Companies to Work for 2020."
But while Abbott is a giant, it's a nimble one. Fast Company selected it as the "World Changing Company of the Year 2020."
What really sets Abbott apart
Of course, other Dividend Aristocrats have great dividend track records (some even better than Abbott's). Many of them are also respected and have received numerous accolades. But there's one thing that really sets Abbott apart from the rest -- its growth.
Dividend stocks aren't always known for delivering tremendous growth. Abbott is definitely an exception, and its growth applies to revenue, earnings, and stock performance.
Abbott reported year-over-year revenue growth of 29% in its Q4 results announced last week. The company's adjusted earnings per share soared 53%. Unsurprisingly, Abbott Labs stock vaulted 26% higher last year and is up close to 10% so far in 2021.
Wall Street analysts project that the company will deliver average annual earnings growth of more than 16% over the next five years. Abbott has several growth drivers that should enable it to meet analysts' expectations. Its COVID-19 testing business is booming, and even once the pandemic ends, there'll likely be continued demand for testing. The company's FreeStyle Libre continuous glucose monitoring system and MitraClip mitral regurgitation device also should deliver strong sales growth.
Importantly, Abbott should be able to grow regardless of what happens with the overall economy. Some of the other Dividend Aristocrats' growth is linked tightly to macroeconomic factors. But people will need Abbott's products no matter what.
Quality isn't cheap
Some might be hesitant about Abbott's valuation. Its shares currently trade at more than 24 times expected earnings, which is admittedly a premium price.
However, you get what you pay for. With its dividend track record, sterling reputation, financial strength, and tremendous growth prospects, Abbott is without question a stock of the highest quality. And quality isn't cheap.
There are other great Dividend Aristocrats. But I think that Abbott Labs is -- as Tina Turner might say -- simply the best.
10 stocks we like better than Abbott Laboratories
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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. | A healthcare giant After examining all of the current Dividend Aristocrats, I selected Abbott Laboratories (NYSE: ABT) as the best in the group. The company's FreeStyle Libre continuous glucose monitoring system and MitraClip mitral regurgitation device also should deliver strong sales growth. With its dividend track record, sterling reputation, financial strength, and tremendous growth prospects, Abbott is without question a stock of the highest quality. | A healthcare giant After examining all of the current Dividend Aristocrats, I selected Abbott Laboratories (NYSE: ABT) as the best in the group. The company has increased its dividend for 49 years in a row and will probably move into the even more prestigious group of dividend stocks known as Dividend Kings -- S&P 500 members with at least 50 years of consecutive dividend increases -- later this year. What really sets Abbott apart Of course, other Dividend Aristocrats have great dividend track records (some even better than Abbott's). | A healthcare giant After examining all of the current Dividend Aristocrats, I selected Abbott Laboratories (NYSE: ABT) as the best in the group. The company has increased its dividend for 49 years in a row and will probably move into the even more prestigious group of dividend stocks known as Dividend Kings -- S&P 500 members with at least 50 years of consecutive dividend increases -- later this year. What really sets Abbott apart Of course, other Dividend Aristocrats have great dividend track records (some even better than Abbott's). | A healthcare giant After examining all of the current Dividend Aristocrats, I selected Abbott Laboratories (NYSE: ABT) as the best in the group. The company has increased its dividend for 49 years in a row and will probably move into the even more prestigious group of dividend stocks known as Dividend Kings -- S&P 500 members with at least 50 years of consecutive dividend increases -- later this year. What really sets Abbott apart Of course, other Dividend Aristocrats have great dividend track records (some even better than Abbott's). |
32243.0 | 2021-02-04 00:00:00 UTC | Where to Invest $10,000 Right Now | ABT | https://www.nasdaq.com/articles/where-to-invest-%2410000-right-now-2021-02-04 | nan | nan | The S&P 500 slipped 1.1% in January to finish the first month of the year in the doldrums. And the coronavirus pandemic seems far from over. But these two elements shouldn't discourage us from investing in stocks that have proven themselves over the long term -- and fared well through the health crisis.
As long-term investors, we look at the big picture. And that means revenue now, and potential for future revenue and earnings growth. So, if you have $10,000 to invest now, these points are important to consider before pressing the "buy" button. Here, I've chosen two healthcare stocks and two consumer stocks that should reward investors over the years to come.
Image source: Getty Images.
Abiomed
Abiomed's (NASDAQ: ABMD) heart pumps assist or take over the pumping function to allow the heart to rest. They're approved for cardiogenic shock -- when the heart can't pump enough blood -- and are used as part of cardiac procedures such as open-heart surgery. The U.S. Food and Drug Administration (FDA) has even granted Emergency Use Authorization (EUA) for their use on COVID-19 patients.
I like the fact that Abiomed holds more than 1,000 patents and has another 850 pending. Intellectual property strength will help assure its spot in this growing market over time. The ventricular assist device market, at a compound annual growth rate of 20%, may reach $3.5 billion by 2027, according to a Global Industry Analysts report.
Abiomed's revenue and general financial health are another plus. The company's revenue in the quarter ending Dec. 31, 2020 rose 5% to a record $232 million year over year. Abiomed said it has more than $787 million in cash and equivalents and no debt.
Abbott
You might not think "coronavirus stock" when you first see Abbott Laboratories (NYSE: ABT). The company essentially operates four businesses -- medical device, nutrition, diagnostics, and pharmaceuticals. But Abbott has emerged as a leader in coronavirus testing. The FDA has granted EUAs to eight of the company's tests.
In 2019, Abbott's medical device sales surpassed those of diagnostics by about $5 billion. This past year though, device sales registered a slight 3.7% drop while diagnostics sales jumped a solid 40% thereby reducing the gap to about $1 billion, thanks to postponed medical procedures, but increased coronavirus testing.
In the most recent quarter (ending Dec. 31, 2020), Abbott's sales rose more than 28% to $10.7 billion year over year. That includes $2.4 billion of coronavirus diagnostics sales. Abbott predicts full-year 2021 earnings per share will increase more than 35% year over year.
In the near term, I expect Abbott to benefit as medical procedures resume and governments require more and more coronavirus testing. And Abbott's strengths in medical devices and diagnostics should support long-term earnings growth as well.
Lululemon
Many apparel retailers suffered in the early stages of the health crisis. Stores closed temporarily, and consumers focused on essentials rather than discretionary items. But shoppers continued buying lululemon athletica's (NASDAQ: LULU) yoga-inspired clothing as they spent more time at home.
In the quarter ended Nov. 1, 2020, lululemon's revenue climbed 22% to $1.1 billion year over year. Gross profit rose 24% to more than $627 million. And earnings per share totaled $1.10 versus $0.96 in the year-earlier period. Most recently, lululemon said it expects revenue and earnings for the quarter ending Jan. 31 to be at the high end of its forecast range.
And more growth is on the horizon. Lululemon is sticking to its "Power of Three" plan. As part of it, the company expects to more than double sales in its men's line by 2023. The retailer also wants to quadruple international revenue by that time. And finally, when it announced the plan in 2019, lululemon spoke of more than doubling digital revenue by 2023. The coronavirus outbreak has accelerated that growth. For example, digital revenue rose 93% in the most recent quarter.
Etsy
Shoppers flocked to Etsy (NASDAQ: ETSY) last year for handmade masks -- but those weren't the only popular items on the online marketplace for creative goods. Gross merchandise sales excluding mask sales soared 93% to $2.2 billion year over year for the quarter ending Sept. 30, 2020. So even if shoppers stop buying masks on Etsy, the platform won't suffer. Esty has been profitable for the past three years, and annual revenue has been climbing since the company went public in 2015.
Data source: YCharts.
I expect Etsy to benefit from the shift to online shopping. Digital already was gaining ground prior to the coronavirus outbreak. But the crisis accelerated the movement. A McKinsey & Co. report shows consumers are likely to continue to shop more online even once the pandemic is over.
While Amazon (NASDAQ: AMZN) remains a major rival for many online retailers, it's less of an issue for Etsy. Buyers turn to Etsy for its vast selection of handcrafted goods and creative gifts. And Amazon isn't strong in this area. So, Etsy can really take off over the long term.
Abiomed, Abbott, lululemon, and Etsy all gained last year, rebounding from the March market crash.
Data source: YCharts.
But I don't think share price performance will stop there. Investors who buy the shares now -- with $10,000 or even a smaller investment -- and patiently hold on should benefit from revenue and earnings growth in the years to come.
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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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 Abiomed, Amazon, and Etsy. The Motley Fool recommends Lululemon Athletica and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 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 You might not think "coronavirus stock" when you first see Abbott Laboratories (NYSE: ABT). They're approved for cardiogenic shock -- when the heart can't pump enough blood -- and are used as part of cardiac procedures such as open-heart surgery. The ventricular assist device market, at a compound annual growth rate of 20%, may reach $3.5 billion by 2027, according to a Global Industry Analysts report. | Abbott You might not think "coronavirus stock" when you first see Abbott Laboratories (NYSE: ABT). In the most recent quarter (ending Dec. 31, 2020), Abbott's sales rose more than 28% to $10.7 billion year over year. In the quarter ended Nov. 1, 2020, lululemon's revenue climbed 22% to $1.1 billion year over year. | Abbott You might not think "coronavirus stock" when you first see Abbott Laboratories (NYSE: ABT). In the most recent quarter (ending Dec. 31, 2020), Abbott's sales rose more than 28% to $10.7 billion year over year. In the quarter ended Nov. 1, 2020, lululemon's revenue climbed 22% to $1.1 billion year over year. | Abbott You might not think "coronavirus stock" when you first see Abbott Laboratories (NYSE: ABT). And Abbott's strengths in medical devices and diagnostics should support long-term earnings growth as well. Investors who buy the shares now -- with $10,000 or even a smaller investment -- and patiently hold on should benefit from revenue and earnings growth in the years to come. |
32244.0 | 2021-02-04 00:00:00 UTC | 3 Dividend Stocks That Just Hiked Their Payouts by 20% | ABT | https://www.nasdaq.com/articles/3-dividend-stocks-that-just-hiked-their-payouts-by-20-2021-02-04 | nan | nan | Dividend stocks are good investments, but those that grow their payouts are even better. Did you know that if a company raises its payout by 10% each year, it would take a little more than seven years for those dividend payments to be double what they are today? A 20% annual increase is less likely but at that rate, the doubling period would be just four years. And three stocks that recently hiked their payouts by at least 20% include Abbott Laboratories (NYSE: ABT), Nexstar Media (NASDAQ: NXST), and Reliant Bancorp (NASDAQ: RBNC).
Image source: Getty Images.
1. Abbott Laboratories
Healthcare giant Abbott announced in December 2020 that it would be increasing its dividend payments by a whopping 25%. It's the 49th year in a row that the company has hiked its payouts. One more increase next year, and Abbott will become a Dividend King. With quarterly payments of $0.45, investors are earning a yield of approximately 1.5%. That's right around the S&P 500 average of 1.6%. But it's still a relatively low yield, and that makes it easier for the company to increase its payouts by a large percentage.
The Illinois-based business delivered its fourth quarter results on Jan. 27 and it's no surprise it felt confident raising its payouts by such a large amount. Net sales for the period ending Dec. 31, 2020, totaled $10.7 billion and grew 28.7% from the prior-year period while net earnings of $2.2 billion more than doubled last year's tally.
Of the total sales, Abbott says $2.4 billion was related to COVID-19 diagnostics testing. The company has many tests for the coronavirus and its most popular, BinaxNOW, can produce results within 15 minutes, and the Food and Drug Administration issued an emergency use authorization for it back in August 2020. With COVID-19 not going away just yet, testing could continue to give Abbott's top line a boost for the foreseeable future.
With a payout ratio -- the ratio of total dividends paid to net income -- of around 40%, Abbott has room to continue hiking its payouts but investors shouldn't get too accustomed to 25% increases: last year, the company raised its dividend by a more modest 12.5% which is still on the high side but a lot more reasonable.
2. Nexstar Media
Including its partners, Texas-based Nexstar owns and operates 198 television stations and reaches 68% of all households in the U.S. that have a TV. The media company announced in January that it would also be increasing its dividend payments by 25%. In addition, its Board approved the repurchase of up to $1 billion in common shares. The business credits its strong free cash flow and "long-standing commitment to enhancing shareholder value" as to why it has made these recent moves.
These types of increases aren't uncommon for Nexstar as last year it raised its payouts by 24% and in 2019 its dividend payments were 20% higher than the previous year. The company started paying dividends in 2013 at just $0.12 every quarter. Today, it pays nearly six times that amount at $0.70 and yields 2.4%.
Over the trailing 12 months, Nexstar has generated $722 million in free cash flow -- well above the $97 million in dividends it paid out during that time. And its modest payout ratio of 18% also suggests there's plenty of room left for the company to continue making big increases in the future.
3. Reliant Bancorp
Reliant is a Tennessee-based business that operates banking centers within the state. On Jan. 21, the company released its fourth quarter results, and its net income of $12.2 billion for the period ending Dec. 31, 2020, was nearly triple the $4.1 billion in profit it reported a year ago. A key reason for the growth is that the business grew in size in 2020 as the acquisitions of First Advantage Bancorp and Tennessee Community Bank Holdings now give Reliant $3 billion in consolidated assets, up from $1.9 billion at the end of 2019.
A few days after releasing the results, Reliant announced it would be increasing its dividend by 20%.
It's effectively a two-cent hike from $0.10 to $0.12. Last year, it increased its payouts by one cent, or 11% from its 2019 quarterly payments of $0.09. With the most recent increase, Reliant's stock now yields nearly 2.4%. Its payout ratio of 14% is also fairly low, and investors could see more increases in the future, especially as the company has gotten bigger in size.
However, with the economy still fragile amid COVID-19, it's by no means a guarantee of how it will do in the near future and that's why investors may need to be a bit more cautious with this dividend stock, especially given its lack of geographical diversification.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And three stocks that recently hiked their payouts by at least 20% include Abbott Laboratories (NYSE: ABT), Nexstar Media (NASDAQ: NXST), and Reliant Bancorp (NASDAQ: RBNC). The company has many tests for the coronavirus and its most popular, BinaxNOW, can produce results within 15 minutes, and the Food and Drug Administration issued an emergency use authorization for it back in August 2020. And its modest payout ratio of 18% also suggests there's plenty of room left for the company to continue making big increases in the future. | And three stocks that recently hiked their payouts by at least 20% include Abbott Laboratories (NYSE: ABT), Nexstar Media (NASDAQ: NXST), and Reliant Bancorp (NASDAQ: RBNC). Net sales for the period ending Dec. 31, 2020, totaled $10.7 billion and grew 28.7% from the prior-year period while net earnings of $2.2 billion more than doubled last year's tally. With a payout ratio -- the ratio of total dividends paid to net income -- of around 40%, Abbott has room to continue hiking its payouts but investors shouldn't get too accustomed to 25% increases: last year, the company raised its dividend by a more modest 12.5% which is still on the high side but a lot more reasonable. | And three stocks that recently hiked their payouts by at least 20% include Abbott Laboratories (NYSE: ABT), Nexstar Media (NASDAQ: NXST), and Reliant Bancorp (NASDAQ: RBNC). With a payout ratio -- the ratio of total dividends paid to net income -- of around 40%, Abbott has room to continue hiking its payouts but investors shouldn't get too accustomed to 25% increases: last year, the company raised its dividend by a more modest 12.5% which is still on the high side but a lot more reasonable. These types of increases aren't uncommon for Nexstar as last year it raised its payouts by 24% and in 2019 its dividend payments were 20% higher than the previous year. | And three stocks that recently hiked their payouts by at least 20% include Abbott Laboratories (NYSE: ABT), Nexstar Media (NASDAQ: NXST), and Reliant Bancorp (NASDAQ: RBNC). Did you know that if a company raises its payout by 10% each year, it would take a little more than seven years for those dividend payments to be double what they are today? On Jan. 21, the company released its fourth quarter results, and its net income of $12.2 billion for the period ending Dec. 31, 2020, was nearly triple the $4.1 billion in profit it reported a year ago. |
32245.0 | 2021-02-03 00:00:00 UTC | Noteworthy ETF Inflows: ITOT, ABT, TMO, ABBV | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-itot-abt-tmo-abbv-2021-02-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $283.8 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 375,000,000 to 378,200,000). Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.4%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.5%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $48.52 per share, with $89.64 as the 52 week high point — that compares with a last trade of $88.55. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.4%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.5%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $48.52 per share, with $89.64 as the 52 week high point — that compares with a last trade of $88.55. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.4%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.5%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $48.52 per share, with $89.64 as the 52 week high point — that compares with a last trade of $88.55. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.4%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.5%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $283.8 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 375,000,000 to 378,200,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $48.52 per share, with $89.64 as the 52 week high point — that compares with a last trade of $88.55. | Among the largest underlying components of ITOT, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.4%, Thermo Fisher Scientific Inc (Symbol: TMO) is down about 1.5%, and AbbVie Inc (Symbol: ABBV) is up by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $283.8 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 375,000,000 to 378,200,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $48.52 per share, with $89.64 as the 52 week high point — that compares with a last trade of $88.55. |
32246.0 | 2021-02-03 00:00:00 UTC | AbbVie profit beats expectations on Humira demand | ABT | https://www.nasdaq.com/articles/abbvie-profit-beats-expectations-on-humira-demand-2021-02-03 | nan | nan | Adds details on botox sales, profit estimates, share movement
Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%.
The Illinois-based company is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023.
Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. However, its sales have suffered since new competition entered Europe.
Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe.
The company said it expects to earn between $12.32 and $12.52 per share, ahead of the analysts' average estimate of $12.19, according to IBES estimates from Refinitiv.
Chief Executive Officer Richard Gonzalez said the company is expecting "impressive growth again in 2021" based on broad portfolio of diversified growth assets.
In the reported quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million. Rinvoq, which was approved in August 2019, brought in sales of $281 million.
Fourth-quarter sales for Botox's cosmetic use rose about 9% to $493 million as COVID-19 restrictions eased, above analysts' estimate of $441.9 million.
Overall sales jumped 59.2% to $13.9 billion, topping quarterly estimates of $13.7 billion.
Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85.
Shares of the drugmaker were last up at $105.25 before the bell.
(Reporting by Amruta Khandekar and Mrinalika Roy; Editing by Arun Koyyur)
((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 details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. The Illinois-based company is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. In the reported quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million. Excluding items, AbbVie earned $2.92 per share, beating expectations of $2.85. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. In the reported quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million. | Adds details on botox sales, profit estimates, share movement Feb 3 (Reuters) - AbbVie Inc ABBV.N forecast annual profit above expectations and beat quarterly estimates on Wednesday on higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis, sending its shares up 1.7%. However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe. In the reported quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million. |
32247.0 | 2021-02-03 00:00:00 UTC | AbbVie revenue beats expectations on Humira demand | ABT | https://www.nasdaq.com/articles/abbvie-revenue-beats-expectations-on-humira-demand-2021-02-03 | nan | nan | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis.
AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023.
Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. However, its sales have suffered since new competition entered Europe.
Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe.
The company forecast 2021 adjusted earnings of between $12.32 to $12.52 per share, ahead of the analyst average estimate of $12.19, according to IBES estimates from Refinitiv.
Chief Executive Officer Richard Gonzalez said the company is expecting "impressive growth again in 2021" based on broad portfolio of diversified growth assets.
In the fourth quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million, according to Refinitiv data. Rinvoq, which was approved in August 2019, brought in sales of $281 million.
Overall sales rose 59.2% to $13.9 billion in the quarter, topping estimates of $13.7 billion.
Net income attributable to the company fell to $36 million, or 1 cent per share, in the quarter ended Dec. 31, from $2.8 billion, or $1.88 per share, a year earlier.
The company recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi.
(Reporting by Amruta Khandekar and Mrinalika Roy; Editing by Arun Koyyur)
((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. | Feb 3 (Reuters) - AbbVie Inc ABBV.N beat quarterly revenue estimates and forecast annual profit above expectations on Wednesday due to higher demand for its blockbuster drug Humira as well as newer treatments for psoriasis and rheumatoid arthritis. AbbVie is betting on the new treatments and wrinkle injection Botox, acquired through its $63 billion Allergan deal, as it is set to lose patent protection for Humira in the United States, its biggest market, in 2023. Humira is the world's top selling drug and has been boosting AbbVie's revenue ever since it was approved to treat psoriasis and rheumatoid arthritis. | Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. In the fourth quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million, according to Refinitiv data. Overall sales rose 59.2% to $13.9 billion in the quarter, topping estimates of $13.7 billion. | Overall quarterly sales of Humira rose 4.8% to $5.2 billion in the fourth quarter, just above estimates of $5.1 billion. In the fourth quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million, according to Refinitiv data. Overall sales rose 59.2% to $13.9 billion in the quarter, topping estimates of $13.7 billion. | However, international sales, which excludes the United States, declined 9.4% due to the impact of biosimilars in Europe. In the fourth quarter, psoriasis drug Skyrizi brought in sales of $525 million, topping estimates of $472 million, according to Refinitiv data. Net income attributable to the company fell to $36 million, or 1 cent per share, in the quarter ended Dec. 31, from $2.8 billion, or $1.88 per share, a year earlier. |
32248.0 | 2021-02-01 00:00:00 UTC | 3 Mega-Trends Healthcare Investors Should Watch Right Now | ABT | https://www.nasdaq.com/articles/3-mega-trends-healthcare-investors-should-watch-right-now-2021-02-01 | nan | nan | Last year brought to light exciting new trends and developments in the healthcare space. Teladoc Health (NYSE: TDOC) established its foothold in telemedicine, Abbott Labs (NYSE: ABT) received Emergency Use Authorization for its at-home coronavirus diagnostic tests, and the Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) team brought the first ever mRNA vaccine to market. But what trends will go into the new year and beyond?
Ruby Gadelrab is CEO and Founder of MDisrupt, a platform that connects digital health companies to the scientists and healthcare industry experts they need to build, commercialize, and scale health products quickly and responsibly. Ruby joined Olivia Zitkus and Corinne Cardina of Fool.com's Healthcare and Cannabis Bureau on a Jan. 22 episode of Fool Live, where she offered her top three trends to watch in 2021.
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Olivia Zitkus: Are you expecting more digital health IPOs in 2021? What do you think that area is going to look like?
Ruby Gadelrab: I'm going to stick to my expertise so I'm going to tell you about trends, the trends are telemedicine and virtual care, new COVID solutions for back to work, and at-home testing and monitoring solutions. Then there's a couple of other hot areas which are behavioral and mental health. I think we've all started to see behavioral and mental health be one of the really hot topics after that year that was 2020, and also fintech, and beyond fintech as well, any digital health technology that is actually starting to address health inequities or health disparities.
Corinne Cardina owns shares of Teladoc Health. Olivia Zitkus 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. | Teladoc Health (NYSE: TDOC) established its foothold in telemedicine, Abbott Labs (NYSE: ABT) received Emergency Use Authorization for its at-home coronavirus diagnostic tests, and the Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) team brought the first ever mRNA vaccine to market. Ruby joined Olivia Zitkus and Corinne Cardina of Fool.com's Healthcare and Cannabis Bureau on a Jan. 22 episode of Fool Live, where she offered her top three trends to watch in 2021. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Teladoc Health (NYSE: TDOC) established its foothold in telemedicine, Abbott Labs (NYSE: ABT) received Emergency Use Authorization for its at-home coronavirus diagnostic tests, and the Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) team brought the first ever mRNA vaccine to market. Ruby joined Olivia Zitkus and Corinne Cardina of Fool.com's Healthcare and Cannabis Bureau on a Jan. 22 episode of Fool Live, where she offered her top three trends to watch in 2021. Corinne Cardina owns shares of Teladoc Health. | Teladoc Health (NYSE: TDOC) established its foothold in telemedicine, Abbott Labs (NYSE: ABT) received Emergency Use Authorization for its at-home coronavirus diagnostic tests, and the Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) team brought the first ever mRNA vaccine to market. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Olivia Zitkus: Are you expecting more digital health IPOs in 2021? I think we've all started to see behavioral and mental health be one of the really hot topics after that year that was 2020, and also fintech, and beyond fintech as well, any digital health technology that is actually starting to address health inequities or health disparities. | Teladoc Health (NYSE: TDOC) established its foothold in telemedicine, Abbott Labs (NYSE: ABT) received Emergency Use Authorization for its at-home coronavirus diagnostic tests, and the Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) team brought the first ever mRNA vaccine to market. But what trends will go into the new year and beyond? That's right -- they think these 10 stocks are even better buys. |
32249.0 | 2021-01-31 00:00:00 UTC | 3 Silver Linings for the Healthcare Sector in 2020 | ABT | https://www.nasdaq.com/articles/3-silver-linings-for-the-healthcare-sector-in-2020-2021-01-31 | nan | nan | It can be difficult to pick out the good parts of 2020. Although the pandemic has exposed just how unprepared our health systems were to handle a public health crisis, it also pushed various institutions and businesses to step up their investments in research and development, their uptake of technological innovations, and of course -- the quality of telehealth services. Teladoc Health (NYSE: TDOC) and Abbott Labs (NYSE: ABT) are two success stories that exemplify the improvements in digital health to emerge from the year -- and they might use their learnings to continue winning in 2021.
Ruby Gadelrab is CEO and Founder of MDisrupt, a platform that connects digital health companies to the scientists and healthcare industry experts they need to build, commercialize, and scale health products quickly and responsibly. Ruby joined Olivia Zitkus and Corinne Cardina of Fool.com's Healthcare and Cannabis Bureau on a Jan. 22 episode of Fool Live to talk about the strides made by healthcare sector players in 2020.
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Olivia Zitkus: I want to start off broadly just by looking at digital health. I'm curious what some of your most interesting observations were in the space in the year that was 2020.
Ruby Gadelrab: That year that one should never talk about, but yes. Let's first start off by maybe defining what digital health is. Digital health is when digital technologies and genomics are used to solve key problems in healthcare, so think things like algorithms, AI, data analytics, wearables, apps, sensors, telemedicine, genetic testing, and personalized medicine. One of the things pre-pandemic is that healthcare was quite slow to adopt digital health and digital technologies. Many of the solutions did exist before the pandemic, but they really did struggle to get adoption. But in that crazy year, that is 2020, the pandemic revealed a couple of big things. The first thing that it revealed was how unprepared our healthcare system was to deal with the event of that magnitude. Secondly, it also revealed some of the inequity and access issues to healthcare services. But there are silver linings and the silver linings are for digital health. It was as if there was a huge fast forward button pushed on the digital health industry. These were in three key themes: the amount of investment, the speed of innovation, and the rate of adoption. And so if we go into to each of those, from the investment perspective, 2020 was one of the highest ever years in digital health investment. There's many, many reports out there, I'd like to use Health. Health report showed that there was $14 billion worth of investment in digital health last year, which is 72% higher than the previous landmark year, which was 2018, that's pretty phenomenal in one year. Second major theme, speed of innovation. In 2020, the FDA issued over 300, I think the last number was 322, and I looked yesterday, 322 Emergency Use Authorizations for tests and devices during the pandemic. What was so interesting was that many digital health companies who are in tangential spaces, maybe not in virus testing but definitely not in COVID, quickly pivoted to create new solutions for COVID. One example that I think is interesting is a company called Clear Labs. They were doing pathogen testing in the food industry. But as the pandemic hit, they did a quick pivot, and they've developed a fully automated sequencing system to screen and sequence SARS-COVID virus in under 24 hours. Why that's relevant today is because of all the new mutant strains of the COVID virus that we're currently seeing. We talked about investment, we talked about innovation, and then the final point there is rates of adoption. The big hero here is telehealth and virtual care. This is an example of a technology that had been around for years, and years, and years, but had a lot of reluctance from the health system to adopt it. Partly due to privacy concerns, partly due to physicians and patients didn't think it would be a very good experience, and then most importantly, because CMS was only reimbursing telehealth visits in very specific cases. But the pandemic forced patients, providers, and payers to have to experience it different way of delivering telehealth. I think the numbers are in March, CMS reported that telehealth visits jumped from 10,000 visits per week to over 300,000 visits per week. Of course, that was right in the midst of the most severe part of the pandemic. We do expect those numbers to come down, but I do think the cat is out of the bag when it comes to telehealth and virtual care.
Corinne Cardina owns shares of Teladoc Health. Olivia Zitkus 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. | Teladoc Health (NYSE: TDOC) and Abbott Labs (NYSE: ABT) are two success stories that exemplify the improvements in digital health to emerge from the year -- and they might use their learnings to continue winning in 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 Teladoc Health wasn't one of them! | Teladoc Health (NYSE: TDOC) and Abbott Labs (NYSE: ABT) are two success stories that exemplify the improvements in digital health to emerge from the year -- and they might use their learnings to continue winning in 2021. One of the things pre-pandemic is that healthcare was quite slow to adopt digital health and digital technologies. I think the numbers are in March, CMS reported that telehealth visits jumped from 10,000 visits per week to over 300,000 visits per week. | Teladoc Health (NYSE: TDOC) and Abbott Labs (NYSE: ABT) are two success stories that exemplify the improvements in digital health to emerge from the year -- and they might use their learnings to continue winning in 2021. Although the pandemic has exposed just how unprepared our health systems were to handle a public health crisis, it also pushed various institutions and businesses to step up their investments in research and development, their uptake of technological innovations, and of course -- the quality of telehealth services. Health report showed that there was $14 billion worth of investment in digital health last year, which is 72% higher than the previous landmark year, which was 2018, that's pretty phenomenal in one year. | Teladoc Health (NYSE: TDOC) and Abbott Labs (NYSE: ABT) are two success stories that exemplify the improvements in digital health to emerge from the year -- and they might use their learnings to continue winning in 2021. One of the things pre-pandemic is that healthcare was quite slow to adopt digital health and digital technologies. What was so interesting was that many digital health companies who are in tangential spaces, maybe not in virus testing but definitely not in COVID, quickly pivoted to create new solutions for COVID. |
32250.0 | 2021-01-29 00:00:00 UTC | ABT Crosses Above Average Analyst Target | ABT | https://www.nasdaq.com/articles/abt-crosses-above-average-analyst-target-2021-01-29 | nan | nan | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $117.92, changing hands for $120.39/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 12 different analyst targets contributing to that average for Abbott Laboratories, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $107.00. And then on the other side of the spectrum one analyst has a target as high as $130.00. The standard deviation is $7.561.
But the whole reason to look at the average ABT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABT crossing above that average target price of $117.92/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $117.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Abbott Laboratories:
RECENT ABT ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 11 11 11 11
Buy ratings: 0 1 1 1
Hold ratings: 2 3 3 3
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.31 1.47 1.47 1.47
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABT — FREE.
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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 recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $117.92, changing hands for $120.39/share. But the whole reason to look at the average ABT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABT crossing above that average target price of $117.92/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $117.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $117.92, changing hands for $120.39/share. But the whole reason to look at the average ABT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABT crossing above that average target price of $117.92/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $117.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | And so with ABT crossing above that average target price of $117.92/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $117.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $117.92, changing hands for $120.39/share. But the whole reason to look at the average ABT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $117.92, changing hands for $120.39/share. But the whole reason to look at the average ABT price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABT crossing above that average target price of $117.92/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $117.92 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? |
32251.0 | 2021-01-28 00:00:00 UTC | Noteworthy Thursday Option Activity: NFLX, NVDA, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-nflx-nvda-abt-2021-01-28 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Netflix Inc (Symbol: NFLX), where a total volume of 101,765 contracts has been traded thus far today, a contract volume which is representative of approximately 10.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 144.3% of NFLX's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $550 strike call option expiring January 29, 2021, with 7,779 contracts trading so far today, representing approximately 777,900 underlying shares of NFLX. Below is a chart showing NFLX's trailing twelve month trading history, with the $550 strike highlighted in orange:
NVIDIA Corp (Symbol: NVDA) saw options trading volume of 79,697 contracts, representing approximately 8.0 million underlying shares or approximately 102.1% of NVDA's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $530 strike call option expiring January 29, 2021, with 11,061 contracts trading so far today, representing approximately 1.1 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $530 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) options are showing a volume of 39,883 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 84.1% of ABT's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $120 strike call option expiring January 29, 2021, with 2,910 contracts trading so far today, representing approximately 291,000 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for NFLX options, NVDA options, or ABT 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 $120 strike call option expiring January 29, 2021, with 2,910 contracts trading so far today, representing approximately 291,000 underlying shares of ABT. Below is a chart showing NVDA's trailing twelve month trading history, with the $530 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 39,883 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 84.1% of ABT's average daily trading volume over the past month, of 4.7 million shares. | Below is a chart showing NVDA's trailing twelve month trading history, with the $530 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 39,883 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 84.1% of ABT's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $120 strike call option expiring January 29, 2021, with 2,910 contracts trading so far today, representing approximately 291,000 underlying shares of ABT. | Below is a chart showing NVDA's trailing twelve month trading history, with the $530 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 39,883 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 84.1% of ABT's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $120 strike call option expiring January 29, 2021, with 2,910 contracts trading so far today, representing approximately 291,000 underlying shares of ABT. | Especially high volume was seen for the $120 strike call option expiring January 29, 2021, with 2,910 contracts trading so far today, representing approximately 291,000 underlying shares of ABT. Below is a chart showing NVDA's trailing twelve month trading history, with the $530 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 39,883 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 84.1% of ABT's average daily trading volume over the past month, of 4.7 million shares. |
32252.0 | 2021-01-28 00:00:00 UTC | See Which Of The Latest 13F Filers Holds Abbott Laboratories | ABT | https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-abbott-laboratories-2021-01-28 | nan | nan | At Holdings Channel, we have reviewed the latest batch of the 25 most recent 13F filings for the 12/31/2020 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Prudent Investors Network Existing -123 -$9
Zurcher Kantonalbank Zurich Cantonalbank Existing +81,216 +$9,206
Heritage Investors Management Corp Existing -1,424 -$125
Washburn Capital Management Inc. Existing +201 +$24
PGGM Investments Existing -336,951 -$36,065
Bull Street Advisors LLC Existing -230 -$16
Smith Salley & Associates Existing +8,186 +$990
Gleason Group Inc. Existing UNCH $UNCH
CHICAGO TRUST Co NA Existing -1,072 -$93
HHM Wealth Advisors LLC Existing UNCH +$1
Asset Dedication LLC Existing -277 -$24
Scott Investment Partners LLP NEW +48,300 +$5,288
Venturi Wealth Management LLC Existing +161 +$28
Cedar Mountain Advisors LLC Existing +1 $UNCH
Dupont Capital Management Corp Existing -22,696 -$2,361
Aggregate Change: -224,708 -$23,156
In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 09/30/2020 to 12/31/2020, with 7 having decreased their positions and 1 new position.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the ABT share count in the aggregate among all of the funds which held ABT at the 12/31/2020 reporting period (out of the 1,039 we looked at in total). We then compared that number to the sum total of ABT shares those same funds held back at the 09/30/2020 period, to see how the aggregate share count held by hedge funds has moved for ABT. We found that between these two periods, funds reduced their holdings by 186,648 shares in the aggregate, from 34,474,498 down to 34,287,850 for a share count decline of approximately -0.54%. The overall top three funds holding ABT on 12/31/2020 were:
» FUND SHARES OF ABT HELD
1. New York State Teachers Retirement System 2,424,285
2. WELLCOME TRUST LTD THE as trustee of the WELLCOME TRUST 1,950,000
3. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA 1,828,239
4-10 Find out the full Top 10 Hedge Funds Holding ABT »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT).
10 S&P 500 Components Hedge Funds Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At Holdings Channel, we have reviewed the latest batch of the 25 most recent 13F filings for the 12/31/2020 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA 1,828,239 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Abbott Laboratories (Symbol: ABT). | At Holdings Channel, we have reviewed the latest batch of the 25 most recent 13F filings for the 12/31/2020 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. Existing UNCH $UNCH CHICAGO TRUST Co NA Existing -1,072 -$93 HHM Wealth Advisors LLC Existing UNCH +$1 Asset Dedication LLC Existing -277 -$24 Scott Investment Partners LLP NEW +48,300 +$5,288 Venturi Wealth Management LLC Existing +161 +$28 Cedar Mountain Advisors LLC Existing +1 $UNCH Dupont Capital Management Corp Existing -22,696 -$2,361 Aggregate Change: -224,708 -$23,156 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 09/30/2020 to 12/31/2020, with 7 having decreased their positions and 1 new position. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: | Existing UNCH $UNCH CHICAGO TRUST Co NA Existing -1,072 -$93 HHM Wealth Advisors LLC Existing UNCH +$1 Asset Dedication LLC Existing -277 -$24 Scott Investment Partners LLP NEW +48,300 +$5,288 Venturi Wealth Management LLC Existing +161 +$28 Cedar Mountain Advisors LLC Existing +1 $UNCH Dupont Capital Management Corp Existing -22,696 -$2,361 Aggregate Change: -224,708 -$23,156 In terms of shares owned, we count 5 of the above funds having increased existing ABT positions from 09/30/2020 to 12/31/2020, with 7 having decreased their positions and 1 new position. We then compared that number to the sum total of ABT shares those same funds held back at the 09/30/2020 period, to see how the aggregate share count held by hedge funds has moved for ABT. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA 1,828,239 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. | At Holdings Channel, we have reviewed the latest batch of the 25 most recent 13F filings for the 12/31/2020 reporting period, and noticed that Abbott Laboratories (Symbol: ABT) was held by 15 of these funds. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA 1,828,239 4-10 Find out the full Top 10 Hedge Funds Holding ABT » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. Below, let's take a look at the change in ABT positions, for this latest batch of 13F filers: |
32253.0 | 2021-01-28 00:00:00 UTC | Interesting ABT Put And Call Options For March 12th | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-march-12th-2021-01-28 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 12th contracts and identified one put and one call contract of particular interest.
The put contract at the $121.00 strike price has a current bid of $2.04. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $121.00, but will also collect the premium, putting the cost basis of the shares at $118.96 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $122.31/share today.
Because the $121.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.69% return on the cash commitment, or 14.31% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Abbott Laboratories, and highlighting in green where the $121.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $123.00 strike price has a current bid of $2.41. If an investor was to purchase shares of ABT stock at the current price level of $122.31/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $123.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.53% if the stock gets called away at the March 12th 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 $123.00 strike highlighted in red:
Considering the fact that the $123.00 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 1.97% boost of extra return to the investor, or 16.73% 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 $122.31) to be 40%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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 $123.00 strike highlighted in red: Considering the fact that the $123.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 12th expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $123.00 strike highlighted in red: Considering the fact that the $123.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 12th 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 $123.00 strike highlighted in red: Considering the fact that the $123.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 12th 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 $123.00 strike highlighted in red: Considering the fact that the $123.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new March 12th contracts and identified one put and one call contract of particular interest. |
32254.0 | 2021-01-28 00:00:00 UTC | Why Abbott Labs Stock Is Jumping Today | ABT | https://www.nasdaq.com/articles/why-abbott-labs-stock-is-jumping-today-2021-01-28 | nan | nan | What happened
Shares of Abbott Laboratories (NYSE: ABT) were jumping 7.6% higher as of 10:53 a.m. EST on Thursday. The big gain came after Raymond James analysts upped the price target for the stock to $126, reflecting a premium of more than 10% to Abbott's closing price on Wednesday.
So what
Investors shouldn't put too much emphasis on analysts' price targets. However, it's prudent to understand why analysts like (or dislike) a particular stock.
Image source: Getty Images.
In this case, Raymond James analysts are more bullish about Abbott Labs because of the company's fourth-quarter update on Wednesday. Abbott posted strong Q4 results, but the analysts were even more impressed with the healthcare giant's guidance for 2021. Abbott thinks that it will deliver earnings-per-share growth of more than 35%.
This surprisingly confident earnings guidance stems from Abbott's optimism about its COVID-19 testing business. It's the biggest growth driver for the company right now. Raymond James analysts also expect that the rest of Abbott's business, including medical devices, will benefit as worries about the COVID-19 pandemic subside this year.
Now what
How the pandemic plays out in 2021 will be important to Abbott's near-term fortunes. Even with vaccines becoming more widely available, though, it's likely that the company will continue to make a lot of money from its COVID-19 tests.
Raymond James analysts wrote to investors that "Abbott remains one of the more attractive growth stories in large-cap healthcare with a diversified portfolio that addresses various end markets and geographies." Whether or not the healthcare stock achieves the price target remains to be seen, but that view of Abbott appears to be spot on.
10 stocks we like better than Abbott Laboratories
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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 jumping 7.6% higher as of 10:53 a.m. EST on Thursday. In this case, Raymond James analysts are more bullish about Abbott Labs because of the company's fourth-quarter update on Wednesday. Raymond James analysts also expect that the rest of Abbott's business, including medical devices, will benefit as worries about the COVID-19 pandemic subside this year. | What happened Shares of Abbott Laboratories (NYSE: ABT) were jumping 7.6% higher as of 10:53 a.m. EST on Thursday. The big gain came after Raymond James analysts upped the price target for the stock to $126, reflecting a premium of more than 10% to Abbott's closing price on Wednesday. Raymond James analysts wrote to investors that "Abbott remains one of the more attractive growth stories in large-cap healthcare with a diversified portfolio that addresses various end markets and geographies." | What happened Shares of Abbott Laboratories (NYSE: ABT) were jumping 7.6% higher as of 10:53 a.m. EST on Thursday. The big gain came after Raymond James analysts upped the price target for the stock to $126, reflecting a premium of more than 10% to Abbott's closing price on Wednesday. 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 jumping 7.6% higher as of 10:53 a.m. EST on Thursday. In this case, Raymond James analysts are more bullish about Abbott Labs because of the company's fourth-quarter update on Wednesday. It's the biggest growth driver for the company right now. |
32255.0 | 2021-01-28 00:00:00 UTC | Better Buy: Abbott Laboratories vs. Intuitive Surgical | ABT | https://www.nasdaq.com/articles/better-buy%3A-abbott-laboratories-vs.-intuitive-surgical-2021-01-28 | nan | nan | When you're picking investments for the long term, it pays to be thrifty. Buying stocks that are too pricey for their level of earnings can set your portfolio up for a bruising. In contrast, if you can invest in quality companies at a fair price, you'll often get the growth that you paid for.
Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG) are a pair of stocks that I stand behind, and both companies are working to increase their revenue to build on their long-term successes. But at the moment, I'd only be willing to buy more of one of the two -- let's take a look at why.
Image source: Getty Images.
The case for Abbott Labs
Abbott Labs is a key company in the response to the pandemic, as it makes diagnostic tests for COVID-19 as well as a cornucopia of other critical goods for hospitals and consumer health. It recently delivered a stunning 150 million of its coronavirus diagnostic tests to the U.S. government, and millions more are shipping out to other customers worldwide. With sales volume like that, it's no surprise that its diagnostics segment grew its revenue by 38.8% in the third quarter of 2020 compared to the same quarter in 2019.
As long as the coronavirus keeps spreading like it has been, Abbott will have no shortage of testing orders to fill, and it has constantly developed new diagnostic solutions to meet demand. Elsewhere in its product portfolio, the company is launching new smartphone apps to assist patients with calibrating their pain control treatments, as well as a new immune system-supporting formulation of the consumer health nutrition product Pedialyte. These new launches may boost its revenue slightly over the next year, but coronavirus testing will probably be the more significant driver of growth. Either way, investors will continue to enjoy the company's policy of increasing its dividend year after year.
The case for Intuitive Surgical
Intuitive Surgical's future is bright, perhaps even more so than Abbott Laboratories'. Intuitive makes robotic surgical suites that are used in a growing number of minimally invasive surgeries. Robotic surgery is a field that's still in its early days, and over the last decade, the company has proven itself to be the leader in the emerging space. Between its new venture capital arm devoted to investing in robotics start-ups and its demonstrated ability to grow its revenue by improving on and developing new tools for its da Vinci surgical suites, Intuitive is outrageously innovative. What's more, it has no direct competitors that are of a similar size -- for now.
Investors will also be interested to hear that it has no debt. And with $4.78 billion in cash, it's loaded with fuel for future growth. So Intuitive can focus on expanding its market penetration and investing in future revenue streams in the form of new products. Given that each of its surgical robots requires regular maintenance and disposable tools to operate, every new system installed means that the company secures significant recurring revenue. But the pandemic has strained healthcare systems and subsequently reduced the number of surgeries that people are getting with its surgical robots. Thus, its fourth-quarter revenue only increased by 4% year over year, which contributed to its stock slipping.
ABT data by YCharts
Where should you invest?
Right now, Abbott Laboratories is the better buy because its business is surging at the precise moment that Intuitive is struggling. It's also being sold at a bargain compared to Intuitive. Its trailing price-to-earnings (P/E) ratio of 61 is significantly lower than Intuitive's 86, as is its price-to-sales (P/S) ratio of 6 compared to Intuitive's 21. In other words, Intuitive is a much more expensive stock for each dollar of sales revenue and earnings. This dynamic will remain in place for at least another year, especially as Abbott expands its portfolio of coronavirus tests. Similarly, Intuitive's valuation seems to be pricing in a return to the rapid level of growth that the company was experiencing before healthcare systems were slammed during the pandemic, which investors simply cannot take as a given in the short term.
But if I could cheat and make another long-term recommendation -- I'd fully endorse both stocks. The economic impact of the pandemic has curbed Intuitive's growth for the time being, but it won't last forever. Likewise, whenever the pandemic starts to subside, Abbott's outsized revenue growth from coronavirus diagnostic tests will start to taper. So, while Abbott is the better buy right now, in a few years the situation could easily be reversed.
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Alex Carchidi owns shares of Abbott Laboratories. The Motley Fool owns shares of and recommends Intuitive Surgical and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG) are a pair of stocks that I stand behind, and both companies are working to increase their revenue to build on their long-term successes. ABT data by YCharts Where should you invest? Between its new venture capital arm devoted to investing in robotics start-ups and its demonstrated ability to grow its revenue by improving on and developing new tools for its da Vinci surgical suites, Intuitive is outrageously innovative. | Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG) are a pair of stocks that I stand behind, and both companies are working to increase their revenue to build on their long-term successes. ABT data by YCharts Where should you invest? The case for Intuitive Surgical Intuitive Surgical's future is bright, perhaps even more so than Abbott Laboratories'. | Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG) are a pair of stocks that I stand behind, and both companies are working to increase their revenue to build on their long-term successes. ABT data by YCharts Where should you invest? The case for Intuitive Surgical Intuitive Surgical's future is bright, perhaps even more so than Abbott Laboratories'. | Abbott Laboratories (NYSE: ABT) and Intuitive Surgical (NASDAQ: ISRG) are a pair of stocks that I stand behind, and both companies are working to increase their revenue to build on their long-term successes. ABT data by YCharts Where should you invest? The case for Intuitive Surgical Intuitive Surgical's future is bright, perhaps even more so than Abbott Laboratories'. |
32256.0 | 2021-01-27 00:00:00 UTC | Health Care Sector Update for 01/27/2021: ABT, SRNE, ANTM, XLV, IBB | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-01-27-2021%3A-abt-srne-antm-xlv-ibb-2021-01-27 | nan | nan | Health care stocks were down in Wednesday's premarket trading. The Health Care SPDR (XLV) and the iShares NASDAQ Biotechnology Index (IBB) were declining by more than 1% recently.
Abbott Laboratories (ABT) was gaining over 1% in value after posting Q4 adjusted EPS of $1.45, up from $0.95 a year earlier. The average estimate of analysts surveyed by Capital IQ was for EPS of $1.35.
Sorrento Therapeutics (SRNE) was up more than 3% after it released positive preliminary results of a phase 1b study evaluating the efficacy and safety of human allogeneic adipose-derived mesenchymal stem cell infusions for patients with COVID-19-induced acute respiratory distress and acute respiratory distress syndrome.
Anthem (ANTM) was declining by over 2% as it reported Q4 adjusted earnings of $2.54 per share, down from $3.88 a year ago.The average estimate of analysts surveyed by Capital IQ was for EPS of $2.53.
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 gaining over 1% in value after posting Q4 adjusted EPS of $1.45, up from $0.95 a year earlier. The Health Care SPDR (XLV) and the iShares NASDAQ Biotechnology Index (IBB) were declining by more than 1% recently. Sorrento Therapeutics (SRNE) was up more than 3% after it released positive preliminary results of a phase 1b study evaluating the efficacy and safety of human allogeneic adipose-derived mesenchymal stem cell infusions for patients with COVID-19-induced acute respiratory distress and acute respiratory distress syndrome. | Abbott Laboratories (ABT) was gaining over 1% in value after posting Q4 adjusted EPS of $1.45, up from $0.95 a year earlier. The average estimate of analysts surveyed by Capital IQ was for EPS of $1.35. Sorrento Therapeutics (SRNE) was up more than 3% after it released positive preliminary results of a phase 1b study evaluating the efficacy and safety of human allogeneic adipose-derived mesenchymal stem cell infusions for patients with COVID-19-induced acute respiratory distress and acute respiratory distress syndrome. | Abbott Laboratories (ABT) was gaining over 1% in value after posting Q4 adjusted EPS of $1.45, up from $0.95 a year earlier. The Health Care SPDR (XLV) and the iShares NASDAQ Biotechnology Index (IBB) were declining by more than 1% recently. Anthem (ANTM) was declining by over 2% as it reported Q4 adjusted earnings of $2.54 per share, down from $3.88 a year ago.The average estimate of analysts surveyed by Capital IQ was for EPS of $2.53. | Abbott Laboratories (ABT) was gaining over 1% in value after posting Q4 adjusted EPS of $1.45, up from $0.95 a year earlier. Health care stocks were down in Wednesday's premarket trading. The Health Care SPDR (XLV) and the iShares NASDAQ Biotechnology Index (IBB) were declining by more than 1% recently. |
32257.0 | 2021-01-27 00:00:00 UTC | Abbott profit more than doubles on strong demand for COVID-19 tests | ABT | https://www.nasdaq.com/articles/abbott-profit-more-than-doubles-on-strong-demand-for-covid-19-tests-2021-01-27 | nan | nan | Adds details on sales of diagnostics kits, shares
Jan 27 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Wednesday, driven by strong sales of its COVID-19 test kits and strength in its nutrition and diabetes businesses.
With the COVID-19 pandemic showing little signs of slowing, companies such as Abbott have benefited from a quick roll out of test kits that are easy to use and provide quick results.
Sales at its diagnostics business soared nearly 110% to $4.35 billion, nearly half of which came from selling COVID-19 test kits.
The company forecast full-year adjusted earnings of $5 per share, reflecting growth of more than 35% from the prior year.
The company's net earnings rose to $2.16 billion, or $1.20 per share, in the fourth quarter ended Dec. 31 from $1.05 billion, or 59 cents per share, a year earlier. ASA01N62
Net sales rose to $10.7 billion from $8.31 billion.
(Reporting by Mrinalika Roy and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva)
((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on sales of diagnostics kits, shares Jan 27 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Wednesday, driven by strong sales of its COVID-19 test kits and strength in its nutrition and diabetes businesses. Sales at its diagnostics business soared nearly 110% to $4.35 billion, nearly half of which came from selling COVID-19 test kits. The company forecast full-year adjusted earnings of $5 per share, reflecting growth of more than 35% from the prior year. | Adds details on sales of diagnostics kits, shares Jan 27 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Wednesday, driven by strong sales of its COVID-19 test kits and strength in its nutrition and diabetes businesses. The company's net earnings rose to $2.16 billion, or $1.20 per share, in the fourth quarter ended Dec. 31 from $1.05 billion, or 59 cents per share, a year earlier. ASA01N62 Net sales rose to $10.7 billion from $8.31 billion. | Adds details on sales of diagnostics kits, shares Jan 27 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Wednesday, driven by strong sales of its COVID-19 test kits and strength in its nutrition and diabetes businesses. The company's net earnings rose to $2.16 billion, or $1.20 per share, in the fourth quarter ended Dec. 31 from $1.05 billion, or 59 cents per share, a year earlier. (Reporting by Mrinalika Roy and Amruta Khandekar in Bengaluru; Editing by Anil D'Silva) ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details on sales of diagnostics kits, shares Jan 27 (Reuters) - Abbott Laboratories' ABT.N quarterly profit more than doubled on Wednesday, driven by strong sales of its COVID-19 test kits and strength in its nutrition and diabetes businesses. With the COVID-19 pandemic showing little signs of slowing, companies such as Abbott have benefited from a quick roll out of test kits that are easy to use and provide quick results. Sales at its diagnostics business soared nearly 110% to $4.35 billion, nearly half of which came from selling COVID-19 test kits. |
32258.0 | 2021-01-27 00:00:00 UTC | Abbott Laboratories (ABT) Q4 2020 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q4-2020-earnings-call-transcript-2021-01-27 | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q4 2020 Earnings Call
Jan 27, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to Abbott's Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions]. With the exception of any participants' 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 Leinenweber -- Vice President, 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 risks and uncertainties, including the impact of COVID-19 pandemic on Abbott's operations and financial results 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, 2019, and in Item 1A Risk Factors in our quarterly report on Form 10-Q for the quarter ended March 31st, 2020. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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 another highly successful year for Abbott during what's been the single most disruptive healthcare event in our lifetimes.
For the full year, we reported organic sales growth of nearly 10% and ongoing earnings per share of $3.65, which reflects double-digit growth and is at the upper end of our guidance range we set last January when we were expecting a normal economy. Performance like this after the pandemic struck is a real achievement and demonstrates the strength of our diversified business model.
In normal times, it maximizes our growth opportunities and during the pandemic, it's been tested by a global crisis and proven to be highly resilient. It should come as no surprise that our performance was led by our Diagnostics business. COVID-19 dominated the year for us and the world and our primary response came in the form of diagnostic tests to identify the virus.
In total, we delivered more than 400 million COVID tests since the start of the pandemic, including more than 300 million tests in the fourth quarter alone. But as we discussed before, the year was not all Diagnostics and COVID. Our more consumer facing businesses; Nutrition, Diabetes Care and Established Pharmaceuticals, all contributed growth for the year. And we continue to launch an impressive stream of innovations across our businesses. I'll touch on some of these new products in more detail in just a moment.
We exited 2020 with tremendous momentum, including total sales growth of more than 28% and ongoing earnings-per-share growth of more than 50% in the fourth quarter. Turning to 2021, we're forecasting another year of top tier performance. As we announced this morning, we forecast ongoing earnings per share of at least $5 in 2021 reflecting growth of more than 35% compared to last year. And because we're building on top of our strong 2020 performance, our forecasted 2021 earnings per share is more than 50% higher than our pre-pandemic EPS in 2019, which is highly unique and differentiated in this environment.
I'll now provide more details on our 2020 results before turning over the call to Bob. And I'll start with Nutrition, where sales increased around 4.5% for both the fourth quarter and full year. Strong growth of Ensure, our market leading complete and balanced nutrition brand and Glucerna, our leading diabetes nutrition brand led to double-digit growth in Adult Nutrition for both the quarter and full year. In Pediatric Nutrition, U.S. sales growth of more than 5% last year was led by increased market share of Similac, our market leading infant formula brand. International pediatric nutrition sales continued to be impacted by challenging market conditions in Greater China.
During the past year, we continue to expand our nutrition portfolio with several new product and line extension including; the continued rollout of infant formula products across our Similac brand family that contain human oligosaccharides or HMO which supports a healthy immune system, global expansion of our PediaSure, Glucerna and Ensure brands including the continued rollout of Ensure high protein products and the launch of four new Pedialyte rehydration products; Pedialyte Zero Sugar, Sport, Organic and Immune Support.
For 2021, we're forecasting similar sales growth for our global nutrition business and a continued strong cadence of new product introductions. Turning to Medical Devices, where sales were relatively flat in the fourth quarter. Strong double-digit growth in Diabetes Care was offset by lower sales in our cardiovascular and neuromodulation businesses due to challenging conditions as COVID case rate surge in certain geographies toward the end of the quarter.
As we saw throughout last summer and fall, we expect procedure volumes to improve in these businesses as COVID case rate subside. In Diabetes Care, sales grew nearly 30% for the fourth quarter and full year led by FreeStyle Libre, our market leading continuous glucose monitoring system. In the U.S., Libre sales grew 50% last year and outside the U.S., Libre sales grew 40% surpassing $2 billion of international sales for the full year of 2020.
This past year was possibly our most productive ever in terms of new product approvals and launches across our medical device portfolio. Let me touch on a handful. First, the approval of MitraClip G4, the latest generation of our market leading system to repair a leaky mitral heart valve. Just last week in the U.S., Medicare expanded reimbursement coverage for MitraClip which significantly expands the eligible patient population that can benefit from this life-changing technology. CE Mark of Tendyne, a first of its kind, minimally invasive device to replace a faulty mitral valve and the CE Mark of TriClip, our minimally invasive clip technology to repair a leaky tricuspid heart valve. Long considered the forgotten valve, TriClip brings an important new solution to patients that have previously had very few treatment options. Abbott now offers minimally invasive device therapies for three valves in the heart; the Aortic, the Mitral and the tricuspid valves.
We also launched two cardiac rhythm defibrillation products under our Gallant brand that include Bluetooth capabilities to align with our strategy in remote monitoring and digitally connected care. Also saw the approval of EnSite X, our next generation 3D cardiac mapping technology and U.S. approval of FreeStyle Libre 2 and CE Mark for Libre 3, the latest generations of our market leading continuous glucose monitoring systems. And CE Mark of Libre Sense Glucose Sport, the first product in our strategy to expand use of our wearable biosensors technology into mass market opportunities beyond diabetes.
As you can see, it was a highly productive year for our pipeline and quite frankly, there is even more I could highlight. In 2021, we're forecasting continued strong double-digit growth in our Diabetes Care business led by FreeStyle Libre and steady improvements in our cardiovascular and neuromodulation businesses fueled by the continued business recovery as society works its way through COVID-19 and on the strength of our recent and upcoming new product launches.
Moving to Established Pharmaceuticals or EPD where sales increased 3.5% in the fourth quarter, reflecting sequential improvement versus the prior quarter. Despite COVID, EPD sales increased 2% overall in 2020 demonstrating the resilience of our business model, even in this challenging environment. Growth this past year was led by sales in India, Russia, China and Brazil.
During the year, EPD continue to strengthen its portfolio with more than 50 new product launches across our key emerging markets. As we've discussed before, new product introductions in EPD are more incremental in nature and a steady cadence of portfolio expansion and refreshment we're achieving is an important element of our sustainable growth strategy. We forecast demand and growth rate improvements in EPD during 2021 as well as a continued steady cadence of new product introductions that will contribute to growth.
And I'll wrap up with our diagnostic business where sales grew nearly 110% in the quarter driven by $2.4 billion of COVID testing related sales. We realized very early that a variety of different testing solutions would be required to tackle the pandemic. With that understanding, starting last March, we developed and launched an entire portfolio of tests to target the virus. The biggest contribution in the fourth quarter came from our rapid lateral flow test to detect the virus, which includes BinaxNOW in the U.S. and Panbio internationally.
These are highly portable, reliable and affordable tests and in just 15 minutes can detect if someone is infectious without the use of an instrument, which means the test can be performed in virtually any setting such as physician office, pharmacies, urgent care centers, work place settings and even at home. As part of our pandemic response efforts, we also developed and launched a digital solution that pairs with these test, called NAVICA
Which allows people to receive and display test results on their mobile devices.
But our efforts didn't stop at developing these tests. We also ramped up manufacturing capacity on a massive scale and now producing more than $100 million of these two test combined per month. While our COVID testing efforts have clearly received a lot of attention, we will also remain focused on the launch and rollout of Alinity, our suite of innovative diagnostic instruments. We continue to retain existing businesses and capture share at strong rates. And we continue to build on our test menus for these instruments.
Last year, we initiated the U.S. launch of Alinity m for molecular testing. This launch included a COVID test, which helped jump-start demand for this innovative, highly automated and differentiated molecular testing platform. And earlier this month, we announced the U.S. FDA clearance for the first rapid handheld blood test for concussions. This test measures certain biomarkers found in blood after a head trauma event and produces results within 15 minutes after a plasma sample is inserted in our i-STAT Alinity handheld device.
Building on this initial clearance, we're also working on a whole blood point-of-care test under FDA breakthrough designation and our vision is to develop a 15-minute portable test that can be used in any settings where people might experience head injuries that require quick evaluation. So in summary, despite the challenging environment, we achieved the upper end of the EPS range we set last January before anyone knew the extent of the COVID pandemic, demonstrating the strength, resilience of our diversified business model and our superior execution.
Our new product pipeline continues to be incredibly productive, delivering ground-breaking innovations and a steady cadence of important new products with more on the horizon. We continue to lead in the area of diagnostic testing for COVID, which is helping to fight the virus and accelerating our long-term decentralized testing strategy, and we're forecasting more than 35% adjusted EPS growth in 2021 which is truly unique in this environment.
I'll now turn over the call to Bob. Bob?
Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer
Thanks, Robert. As Scott mentioned earlier, please note that all references to sales growth rates unless otherwise noted are on an organic basis. Turning to our results. Sales for the fourth quarter increased 28.4%, which was led by strong performance in Nutrition and Diabetes Care along with global COVID testing related sales of $2.4 billion in the quarter.
Foreign exchange had a favorable impact of 0.3% on sales, which was somewhat favorable compared to expectations, had exchange rates held steady since the time of ourearnings callin October. Reported sales increased 28.7% in the quarter. Regarding other aspects of the P&L, the adjusted gross margin ratio was 58.5% of sales, R&D investment was 6% of sales and SG&A expense was 23.5% of sales.
Our fourth quarter adjusted tax rate of 14.1% reflects the adjustment required to align our tax expense with our revised full-year effective tax rate of 15%. This is somewhat lower than the estimate we provided in October due to a shift in the mix of our geographic and business income. Turning to our outlook for the full year 2021. Today, we issued guidance for full year adjusted earnings per share of at least $5. Based on current rates, we would expect exchange to have a favorable impact of approximately 3.5% on our reported sales which includes an expected favorable impact of approximately 3% on our first quarter reported sales. We forecast full year net interest expense of around $515 million, non-operating income of around $230 million and a full year adjusted tax rate of 15%.
With that, we'll now open the call for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions]. And our first question comes from Bob Hopkins from Bank of America. Your line is open.
Bob Hopkins -- Bank of America Merrill Lynch -- Analyst
Great, and thank you. And good morning and congrats on all the success and progress you guys are having. So -- Robert, so much that I could ask about here. But I'll go high level with my question and ask if you wouldn't mind, putting that $5 earnings or at least $5 in earnings for 2021 guidance number in perspective for us given that, that $5 is above even what The Street was modeling for 2022.
And specifically, I guess the way I'd ask the question is, I'm sure investors would love some perspective on how COVID testing impacts that guidance, how you're thinking about the base business and maybe most importantly, given how much higher $5 is, compared to expectations, I'm sure investors would love to hear your early thoughts on whether or not Abbott can grow at its sort of traditional rate off of that $5 number next year?
So sorry for the long winded question, but I would love any perspective. Thank you.
Robert B. Ford -- President and Chief Executive Officer
Sure, Bob. You hit on all the points there, I guess. We've been looking at 2021 for several months right now. I think one of the things as we're going into it is that, we knew, I mean a lot of companies were going to be forecasting double-digit growth going into 2021, a lot of that probably based on comps, where we saw a decrease in EPS. And that wasn't -- that's not the case for Abbott. We're not coming out of a hole. And as I said in my remarks, the $5 -- the at least $5 target for 2021 is about 50% higher than where we were in 2019.
What I can say is that, we are, Bob and myself as we manage the business especially over these last couple of months and going into this year, we've been looking at two year CAGRs across our businesses. And I think that's the right way to look at it is to kind of look at what happened in 2020 and it's easy for some of the businesses to come up and post double-digit kind of growth for us, so we're looking on a two-year -- on a two-year CAGR basis.
The points that you touched on are all the points that we've looked at and we've been modeling several different scenarios. So I'll touch on those because they're all elements of how -- of how we build to our at least $5. First of all, obviously COVID testing, it's been a big driver for us and it will continue to be -- continue to be a big driver. I expect testing demand is still going to remain high, even as the vaccines roll out.
I don't think we have even seen testing demand peak yet. So we've built a lot of capacity and we've talked about that over -- over last year, the capacity that we've built. But we didn't put it all in. And we didn't put it all in into that -- into that $5. So, but we don't all see it going away either. But there's enough capacity there, testing capacity, sufficient testing capacity for us to be able to meet this kind of growing demand right now.
The other part of our forecast here without a doubt is looking at our base business and the recovery of our base business, specifically the ones that were hit probably more heavily by the COVID, which was some of our device businesses and our routine testing and routine lab testing. These are important procedures and life changing procedures, they're important routine test to do. So you can't just keep pushing them out indefinitely.
And what we saw in Q3 of last year, as those rates, hospitalization rates start to come down, we started to see the pickup of our procedures and of our core testing. And we actually saw a growth in several months in Q3 and going into Q4 and obviously that got impacted probably around Thanksgiving. So, we've seen that these can recover, and we do have that modeled in into that $5 which is a recovery of these businesses, you know, at a similar rate of what we saw in Q3 and somewhere in the fall.
I'd say the third kind of key element in there is our consumer businesses, that probably weren't as impacted and did pretty well during the pandemic. We expect those businesses to either continue their trajectory or get better. I mean, I think Nutrition had a really great year last year. I expect them to have a very similar year this year with a lot of new product launches. EPD should get sequentially better. We saw that in Q4. Early indications in January show that recovery continuing. And quite frankly, Libre, I expect it to do better with all the -- with all the innovation and investment we're making there.
So those businesses will do well. And then, the fourth element that we've modeled a lot is spending and ability to reinvest in the businesses and areas that we thought that we could -- we could do with more investment, whether it's SG&A and more specifically in R&D and accelerate some of our programs. I think you saw some of that in our Q4 results where we beat consensus, while at the same time investing more in R&D and SG&A.
So, we looked at these four -- these four elements here, Bob and we modeled it in variety of different ways. And just feel really good that this was a good floor, a good starting point at $5. Quite frankly if anything, we could have significant upside over here, and this is really going to depend a little bit on how we think about COVID testing going forward.
So I kind of saw the $5 here as OK, it's a 37% increase versus 2020 which grew 13% and we've got probable upside to that. While at the same time, on opportunity to invest in the business, invest in SG&A, more specifically in R&D, I think we've got a leading COVID test portfolio here with a variety of different tests and capacity that we haven't dialed all-in. Quite frankly, if I had put all that capacity and I think, I think maybe you would have had a little bit time believing that. But it's there. And I think we've got an exciting base business like you talked, like you mentioned here that is poised for recovery.
I mean, we've got great portfolios, real strong brands, rich pipelines, strong leadership position. So I think the $5 here was definitely a good starting point factoring all those elements in here and we'll be able to kind of build from there as the year progresses.
Bob Hopkins -- Bank of America Merrill Lynch -- Analyst
Well, thank you for that. That's a thorough overview. And then just the one follow up would be, obviously, it's the beginning of 2021, but does that high level of earnings for this year, does that mean you might not be able to grow off of that in 2022 because there is so much testing in 2021 or just give us some thoughts on Abbott's ability to continue on a double-digit growth trajectory off of that $5 number, if OK.
Robert B. Ford -- President and Chief Executive Officer
Sure. It's a little premature to just skip across all the way to 2022. But we have -- but listen, we didn't do 2021 in isolation. So we looked at 2022 and looked at all those different scenarios that I talked about. So I can -- I can probably give you some general comments over here. I mean, I think we're forecasting a lot of growth this year and we're going to be looking to build on it. Prior to the pandemic, The Street consensus for 2023 EPS was just under $5. So we're targeting that EPS this level this year. So in essence, we've pulled forward at least two full years of EPS growth and our mindset here Bob is going to be that we're going to maintain that pull forward indefinitely.
We always start our process with a double-digit target every year, that's been our identity, and I have no intention of changing that identity. Of course, there's a couple of factors here that we need to contemplate, but even looking at those factors, we feel good that we've got the different elements here to be able to deliver on that -- on that double-digit.
One of those is obviously COVID and COVID testing, and even if COVID testing starts to mature a little bit in 2022, we believe there is a significant portion that's still very sustainable. Can we predict it perfectly today? No, I can't. Not to the level that you are accustomed to get from us, but I also think that the ability to do testing in a decentralized manner, people talk a lot about how the pandemic has accelerated digital transformation and businesses, accelerated transformation in the business models.
The pandemic has accelerated our decentralized testing strategy. And I think the -- I think I've talked about this in the last -- in the last call. I think a lot of the testing channels that we're building here that have emerged, I don't see them going away. On top of that, we -- as I said, we've got investment and investment spending into SG&A. But more specifically into R&D, we believe R&D is the more sustainable spend. It's the -- it's the spend that allows us to sustain our topline growth rate.
So, I would expect that these investments that we've made in Q4 and definitely into 2021 that, that would have an impact on our base business growth rate. We've always talked about our base business being sustainable at 7% to 8% and I would expect these investments to be able to accelerate on that.
And I guess the third part to that question of yours about confidence on delivering double-digits in 2022 is, we've got a great balance sheet and we've got a strong financial health and a lot of strategic flexibility there. So I lay all of these elements out here, sustained COVID testing, the investment in the business and the strong balance sheet just gives me confidence that even with all these different models here that we will be able to kind of continue to deliver that identity of double-digit growth.
Bob Hopkins -- Bank of America Merrill Lynch -- Analyst
Thank you very much.
Operator
Thank you. Our next question comes from Matt Taylor from UBS. Your line is open.
Matthew Taylor -- UBS -- Analyst
Hi, thanks a lot for taking the question. So maybe I'll just ask you to drill down a little bit on testing and the assumptions that you have for testing in the year. You came in really strong here in Q4 with a big step-up sequentially. What are you assuming in the $5 for testing throughout the year, if you could discuss some of the different product lines. And then maybe if you could provide some high-level thoughts on how much of a tail of testing we might see into '22 and beyond?
Robert B. Ford -- President and Chief Executive Officer
Sure. So let me talk about kind of numbers and ranges here, then. And then I'll spend time talking a little about sustainability of the testing. As I said, I don't -- I don't see the demand just kind of dropping off even with the vaccine rollout. We achieved $2.4 billion in Q4, so if you annualize that, it will go, it'll land [Phonetic] right around $10 billion. So I can expect probably Q1 is going to be at that range of about $2.5 billion or so. And if you'd say OK, what does the full year range look like, I probably can't go beyond Q1 in terms of exactly how it's going to look like, but you can be in that 6.5% to 7% range, I would think. But we've got as I said, plenty of capacity to go above that.
So that's probably what's incorporated here, Matt in the $5. But I think the big -- the big point here is the sustainability of this. And to your question there, I think a good portion is sustainable, I think a substantial portion is sustainable. Which is why we were a first mover and a leader here. We started with our lab based systems. Those were the -- probably the obvious part in the strategy since we knew we had a lot of capital equipment out in the labs, we started with that strategy to take advantage of the systems out there and you saw that rollout happen.
But we also knew then in a pandemic, you were going to need to add on top of that testing infrastructure, you'd have to add faster testing and testing that could be done at a much significant scale and that was -- that was more affordable, which is why we developed those two lateral flow tests. There's been a lot of visibility to Binax here in the U.S.. We haven't talked a lot about Panbio, but Panbio uses the same -- the same technology, the same kind of antibodies. And we've got a whole supply chain that's been built outside of the United States that supplies all of the markets that we're supporting with Panbio.
So both of those products, they've been the bulk of our sales, we saw that in Q4. There's a lot of capacity that we've built around them and that we continue to build around them. And the clinical utility of them is really strong. I mean, they've been -- a lot of studies are showing their reliability here at finding people that are infectious. And I think that's a key distinction here as your ability to use these tests in a way for being able to find those people that are infectious and not necessarily those that were infectious and that might have some remnants of DNA of the virus in their system.
So I think it's sustainable, and I think you need to take two kind of views here on that. At least this is how we are looking at it. First of all we need to think globally about this. Sometimes we get very focused on the U.S. and what's going on in here in the U.S., but you've got 8 billion plus people around the world, you've got a variety of different countries that are experiencing different cycles in the disease, different cycles in their vaccination strategies. So once you really take a bigger, a bigger view here, this is not going to be something that will just be done in the next couple of quarters here, if you take a real global perspective.
And the second thing that I think is just reframing the testing. I think, we think about the sustainability of testing when we think about Q2 and Q3 of last year. Long lines, not enough volume, long turnaround times, $150, $200 tests, that might be not sustainable, not as sustainable. But if you position yourself into 2021, 2022 world where you now have fast, easier, much more scalable tests, digital tests that are priced for more accessibility and affordability, I think that's the -- that's the sustained kind of business here that we see.
So when you think about that maturing of the COVID testing market, we kind of see PCR kind of maturing first and then we see the rapid part of the business being sustained. And listen, we've built a lot of capacity. As I said, it's probably $12 billion, $13 billion, $14 billion of capacity that we've built in there. We haven't put it all in, but it's there.
And then the other part that I talked about was just the sustainability of it past '22 and into 2023 as we've accelerated our point-of-care testing strategy. And everything we're doing in fighting the virus has not only a direct impact of helping reopen the economy, etc, but it's also seeping [Phonetic] the market and it's building these new testing channels. We've got testing going on at airports, hotels, urgent care, retail, universities, etc. So we believe that's pretty sustainable too.
Matthew Taylor -- UBS -- Analyst
Great. Thanks for that very detailed answer. Maybe I'd just ask a quick follow-up on Panbio. That's a big new piece of the story here. I think, you rightly pointed out, it may take longer in some countries for things to improve. So maybe testing last longer there. Could you talk specifically about Panbio and what you're able to do capacity-wise, or any way to frame that opportunity?
Robert B. Ford -- President and Chief Executive Officer
Sure. So from a technology perspective, it's the -- it's using the same kind of lateral flow technology that Binax has, it's just in a different -- it's just in a different form, and in the cassette [Phonetic] format. We've got capacity to do over 50 million tests per month and we've used our infectious disease emerging market organization. So the manufacturing, the regulatory, the R&D and more important, the commercial infrastructure to be able to look across the world and support governments, workplaces, etc on rolling out antigen testing internationally.
So I think it's -- I think it's done very well. We've been able to kind of leverage some of the -- some of the kind of joint development of Binax and Panbio. But the demand that we're seeing internationally, I would characterize also as probably just starting. It hasn't even peaked either. So I think we've got a lot of opportunity with Panbio internationally too and I think the teams have done a really good job there.
Matthew Taylor -- UBS -- Analyst
All right, thank you so much.
Operator
Thank you. Our next question comes from Robbie Marcus from J.P. Morgan. Your line is open.
Robert Marcus -- J.P. Morgan -- Analyst
Oh, great. I'll add my congratulations on the quarter. Maybe I'll ask both my questions as one upfront. This is a significant windfall of cash you're getting from the COVID testing in 2020 and 2021 and hopefully beyond, so maybe you could just talk about where you're going to put all that cash to use. I know you've mentioned in the past some of it is going to fund new product launches. If you could just also as part of the answer highlight the key product launches in 2021 and beyond to look for. Thanks.
Robert B. Ford -- President and Chief Executive Officer
Sure. I'll probably say the following. A lot of it is going toward R&D, Robbie, and as I said, I think that's the more sustainable spend. It's the one that allows us to build more sustainability in our top line and building our R&D programs. Yeah, there is opportunity to accelerate SG&A and put in some of that cash to use in SG&A and there are some businesses that could definitely benefit with more SG&A and there is -- and there's a pretty strong return as we put those in there, whether it's Libre or Nutrition. But a lot of the focus of this reinvestment here is going into R&D. And quite frankly, I think our pipeline has been highly productive and maybe a little bit under-appreciated, I think. There is a lot of focus that goes in into kind of key three products. You guys like to write them -- write about them as the big three and they get a lot of attention. And quite frankly, they should, whether it's Libre, MitraClip and Alinity, they're large, multibillion dollar segments that are under penetrated. And we've been making clear and intentional investments in those businesses.
I'm not going to spend a lot of time going through those, but you kind of know them, right? So Libre, with Libre 3, we've got Libre 4 in development. We've been making investments in new applications for the Libre platform outside of diabetes. In MitraClip obviously we've got this opportunity with the CMS reimbursement. We have a fifth generation MitraClip that's also in development. And we're investing in a significant amount of clinical trials here to expand the market for us and we'll continue to do that. Probably the one I'm more excited about here is the moderate risk for DMR [Phonetic], that we've announced also.
And then in Alinity, you also know the story. I mean, we've got six new systems where we're increasing the menu and expanding that geographically. So that has a lot of attention, continues to have a lot of attention, and we do resource those opportunities because they're that big. But I think it's misleading here to think that that's the sum of our innovation strategy. It's so much more than that. On the EPD and the nutrition side, we're going to continue to invest in line extensions and portfolio refreshment.
This is the model that we know drives the returns we need for these businesses, and I think the team has now hit their stride in terms of how to do this, and how to effectively roll this out with local portfolios. EPDs rolled out over 50 products, I expect that to continue. Nutrition has done over 20, and I expect that to continue also.
In Diagnostics, outside of Alinity, outside of COVID, we've been investing a lot in expanding our rapid testing portfolio. I've been talking about this about the opportunity we have to take advantage of these new channels that we built and increase the penetration with different assays. So, whether it's going beyond COVID or flu with RSV Strep, we've got a sexual transmitted disease platform for ID NOW which we're excited about, also which I think has got a great opportunity.
And then this rapid concussion test, Robbie, I think it's a great opportunity for us. Probably the biggest opportunity we have is if once we work through to have a whole blood test, I can envision here an opportunity across the 25,000 high schools in the U.S., the 5,000 colleges, all the sporting leagues, and that's going to take us another year and a half or bit or so to get there. But I think it's a great opportunity.
And then the device portfolio is going to continue to get a lot of investment, the way we have. Obviously, Tendyne and Cephea, we want to be a leader in mitral. We've launched Tendyne in Europe. We are funding our Cephea programs that we can have a transfemoral transseptal program for the replacement of the mitral valve. I'm very pleased with the progress we've seen on Tendyne. TriClip, I've talked about the opportunity with TriClip. It's not going to be as large as mitral, but it will be 30%, 35% the size of the mitral market. And we're still in the early innings here of development of clinical evidence development and we're going to be leading there.
We've made investments in increasing the competitiveness of our CRM portfolio. We've just started to roll out now more global basis our new two -- our two new defibrillator products under the Gallant, and we've been working hard at our leadless program and making the investments in the leadless program so that not only can we come out with a single chamber product and then be able to upgrade it to a dual chamber product. I like the program, I like what we've done with it. I think we have a value proposition, a differentiated value proposition versus the competition.
CardioMEMS is another study that we've been funding, and there's probably going to be required some build-out of the commercial infrastructure to be able to support the rollout of that product. If you think about the opportunity we have with CardioMEMS, even at a 10% to 15% penetration on that population, you're looking at a billion dollar opportunity for us. So that is obviously getting a lot of attention. And then I'm very excited to come into the U.S. with the LAA and the TAVR product sometime this year. I think these are great opportunities. I like the product that we have, especially on the LAA side with Amulet. It does very well in Europe and we'll be funding those programs too.
So it's more than the big three. There's a lot here, and quite frankly, Bob and I are already going to the businesses. He's been saying, OK, what was below the line that you didn't show us in the planning process, and can we get going on those too. So that's where a lot of the investment goes, into R&D.
Robert Marcus -- J.P. Morgan -- Analyst
That's really helpful. Thanks so much.
Operator
Thank you. Our next question comes from David Lewis from Morgan Stanley. Your line is open.
David Lewis -- Morgan Stanley -- Analyst
Good morning and thanks for taking the questions. Robert, just wanted to follow back up on investment, and I'm just sort of thinking about your balance sheet here relative to peers. You're already more than a turn better than all your large cap peers, and frankly I can see a scenario by 2024 this is a net cash business and a $200 billion market cap Company. So you have unprecedented levels of financial leverage on the balance sheet.
In recent weeks, we've actually seen some of your competitors get more aggressive on growth-oriented M&A, and we haven't heard much of that conversation this morning. So what are your thoughts on growth-oriented M&A this year to supplement that pipeline? And should investors be thinking about tuck-in growth-oriented M&A because you certainly have the capacity to do something more transformative. And then I have a quick follow-up.
Robert B. Ford -- President and Chief Executive Officer
Sure. On the M&A side, listen, we're always looking, as I've always said, we're always looking, we're always studying. So while we may not be announcing or doing something, we're still studying, we're still looking. And as I said in the previous question though, David, I mean, I think we've got a lot of organic opportunities to invest in, and I like those organic opportunities.
So they obviously do get a lot of our attention right now, but if you think about M&A, yeah, it's got to be a good fit strategically and it's got aligned with our growth orientation here. I mean, I'm not going to look at something that's going to dilute our top line growth rate and obviously is able to generate a return for our shareholders. So there's a lot of activity, there's a lot of -- I'd say, high valuations right now also. But to the extent that we do something this year, it would be more like tuck-in in nature to be able to kind of augment some of these portfolios.
So that's probably the better way to put it to you.
David Lewis -- Morgan Stanley -- Analyst
Okay, very helpful. And then, you know, what a difference a year makes, we're deep into the call, we haven't talked about Libre yet. But I'm kind of curious on two fronts on Libre. One, what -- the full commercial rollout of Libre 3 in Europe, when can we be thinking about the right quarter to think about stepping on the gas with Libre 3? Is it this quarter, is it next quarter? And then just more broadly, Robert, I mean, given the investment spending this year on direct-to-consumer and where that platform could go over time, maybe help us understand what investors may not be appreciating about where that platform can go over a multi-year basis.
So when is the push in Europe, and where can that platform go with investment? Thanks so much.
Robert B. Ford -- President and Chief Executive Officer
Sure, sure. So Libre gets pushed down to fourth or fifth question. But it's still top of our priorities here because it's such a huge opportunity for us. We had a real strong quarter in Q4. We exited with a lot of momentum going into this year, especially in the U.S. I think global sales were $750 million, up 35%, and I expect the absolute dollar amount to get bigger. And usually when that happens, we think, well gee, lot of big numbers, right, the percentages are going to go down, and I don't think so.
I think that we're going to see continuing growth rate expansion on our Libre business here. So I kind of look at Libre as a 2021 growth that should start at 40% and go from there. A lot of focus on the U.S., on the rollout, on Libre 2 rollout, we're seeing a lot of the trend shifts, whether it's revenue, whether it's new users. I think the superior accuracy messaging here is definitely coming through and it's got all the other advantages of our value proposition.
I think one of the good things about the pharmacy channel is that there's a lot of available data. There's a lot of available third party-audited data, and when I do the reviews with the team, we spend a lot of time looking at them and I tell them, you can't hide behind these -- you know, you can't hide, we're in the pharmacy, like, all this data is available. And I think it's done really well in the U.S.
Obviously, I want it to do better, but I can't look at it and not be objective that there's obviously been a trend shift here, whether it's NBRXs, TRxs, refill rates, etc. One of them that I'm extremely happy to see is the Rx fulfillment rate. So when a consumer goes to the pharmacy with a prescription, swipes the card, do they get that prescription filled, right, and there's factors that drive somebody to not get it filled, it's usually a co-pay.
And what we've seen with the Libre Rx fulfilment rate is that about nine out of ten get filled, and you compare that to our competitor at about six out of ten, I think the value proposition here is really strong, meaning that we can invest in DTC advertising, we can invest more in this platform, and we're seeing the value proposition come through as it relates to Rx fulfillment rates. So I'd say the focus on U.S. is L2.
Your question on L3, you know, we're already here. We've been working through, I'd say, the reimbursement contracting process. It probably got delayed a little bit in Q4 in terms of our expectations, given some of the focus of a lot of the international countries focusing on COVID, but we're all ready. Manufacturing is ready, in fact, between Libre 2 and Libre 3, we've got hundreds of millions of sensors here of capacity, and I think that ties a little bit to the expectation that we have for this segment, which is you've got close to 80 million people that could benefit from this target, which is why we took a very different approach in our strategy, a much mass market approach that, you know, develop a product that's consumer-friendly, intuitive, make sure that it can provide measurable benefits and price it for mass adoption, and that's working out very well. So we should see a Libre 3 launch international in Q1. And then in the U.S., we'll issue a release when we get approval.
David Lewis -- Morgan Stanley -- Analyst
Thank you so much.
Operator
Thank you. Our next question comes from Larry Biegelsen from Wells Fargo. Your line is open.
Lawrence Biegelsen -- Wells Fargo -- Analyst
Good morning. Thanks for taking the question, and congrats on a really nice year. So two from me, one just on kind of how you see the recovery playing out in 2021, and one on the P&L. So Robert, how do you see the year playing out for devices ex-Libre and diagnostics, ex-COVID testing in terms of the recovery? Q1 starts to be an easier comp because we started to see the COVID impact last year in the first quarter, and do you see the second half of this year as more normalized? Then I have one follow-up.
Robert B. Ford -- President and Chief Executive Officer
Yes, sure. So on the device side, as I said in the earlier comments here, Larry, I think we're going to -- we're looking at what we saw in Q3 and correlating that drop in rates, not an absolute drop, so not trying to mirror the absolute number of hospitalizations, but at least the rate of decline of hospitalizations and tying it into the increase in the procedures.
A lot of these procedures are lifesaving. Some of them are elective, some of them are lifesaving, and we're hearing a lot of our accounts in the U.S. and international really wanting to push stronger, and a sense here that with the vaccine they feel more confident to be able to build it. So I think you'll see -- probably the biggest comp issue, I would say, is probably Q2. I mean, I think that's when we saw the big drop. Q1 was probably more toward the end of the quarter, the last two weeks of March.
So I kind of see the more normalization growth rates, those kind of growth rates that you saw from our device business excluding diabetes to look more like that in -- starting in Q3. But we'll have a nice build, I think to there as the year progresses.
Lawrence Biegelsen -- Wells Fargo -- Analyst
And then on the P&L, Bob, you gave some helpful color on some of the below the line items, but the testing revenue, it comes at a pretty high margin, I believe. How should we be thinking about gross margin and operating margin in '21 relative to 2020?
Thanks for taking the questions.
Bob Hopkins -- Bank of America Merrill Lynch -- Analyst
Yeah, certainly. So our gross margin on our testing businesses is pretty similar to kind of the base business, maybe a touch higher than that. We saw a steady improvement in the fourth quarter on gross margin from the prior quarter, it was up about 100 basis points, and we saw that kind of steady improvement coming out of the second quarter where we saw the impact of the decline in the medical device area, and -- so third quarter, fourth quarter, steady improvement. And we would expect that to continue to go steadily up as we see recovery in those base businesses. We see more normalization coming through our manufacturing plants as well as that volume normalizes.
In the fourth quarter, you did also see the impact of some of the investments that we were making in that capacity that Robert talked about, and so that was a bit of an offset that you saw come through in the fourth quarter.
Lawrence Biegelsen -- Wells Fargo -- Analyst
Thank you very much.
Operator
Thank you. Our next question comes from Joanne Wuensch from Citi. Your line is open.
Joanne Wuensch -- Citi -- Analyst
Good morning everybody and thank you for taking the question. I want to focus on two things. EPD saw a really nice recovery in the fourth quarter, but not as strong as it's been the last couple of years. How do you think about that recovering over time? And then the second question is a bit of a big picture question. We're talking a lot with investors about a whole new world and how healthcare is being delivered, and I would think you would be one of the closest to seeing how the pandemic has changed delivery. Thank you.
Robert B. Ford -- President and Chief Executive Officer
Sure. So on EPD, yeah, we did see a nice recovery. I mean, when we looked at how the impact of COVID progressed geographically, we saw it for some reason kind of trail a little bit the developed markets, whether it was Europe and the U.S. We really started to feel the impact on our EPD business, which is as you know, mostly emerging markets, started to see it coming out of Q2 and then big in Q3 as a lot of those countries shut down. And the way the model works is, you still need a prescription and you need your physician, or you need to go to your hospital to get that prescription. So when we looked at Q4, we were actually not surprised, but it was good to see that it came in a little bit higher than what we had expected, because we were trying to model it very similar to what we saw in some of the other businesses and it came back faster.
At the same time, it's not a nice, kind of a linear forecast in these markets and it does tend to bounce up around. I mean, we had 9%, 10% growth in Q1, there was some stocking effect there in February and March in some of the markets. So you'll have a comp over there. But what we look at is we're looking at the IMS demand market progression in all these markets that we're competing in, and we're seeing a nice recovery. So I expect that just to sequentially get better and, I guess similar to the comment on devices, get back to that high single digit growth rate toward the second half.
Oh, and then you also had a question on change of care. I think a lot has happened, right, and we've tried to focus on the areas that we feel that we can contribute and benefit. One of them I've talked about is this decentralization of testing and how the pandemic has accelerated that decentralization for us. We believed in it, we believed that we could drive it and create a whole new testing channel when we did the Alere acquisition, and this has kind of brought it forward about -- probably about two years in terms of where we are today versus where we thought we were going to be. So that's an important part for us.
Being able to have access to fast, affordable and digitally connected testing is something that I think is going to be here, and here to say, whether it's a COVID test or other tests. I think that is a change a little bit in the delivery, at least on the diagnostic side.
And then the other side that I'd say is one that we've been working on for quite some bit is the connectivity of our devices and the intersection of digital and healthcare, and how those devices are being connected. You've seen what we've done across all of our portfolio on devices, and we'll continue to position our products in such a way where we can develop them and take advantage of that. For neuromodulation, we've just announced here a very interesting platform which I think is going to have a significant impact on how that business and business model works with a much more connected care platform, where patients get to report their outcomes and eventually get to remote programming, which is a huge change in that business model.
So I'd say, the COVID testing accelerating decentralization of testing and connected care are probably the two pandemic driven changes that we're focusing on taking advantage of.
Joanne Wuensch -- Citi -- Analyst
Thank you.
Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions
We'll take one more question, Operator.
Operator
Thank you. And our last question comes from Vijay Kumar from Evercore. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Hey guys, thanks for taking my question here. And I'll try to ask both of mine in one question. I guess Robert, your PCR plus antigen tests, can they detect these new variants, especially the South African variant? Is there a difference one versus the other, PCR versus an antigen, and when you look at the total revenue contribution, my follow-up was the $6.5 billion to $7 billion-ish of COVID revenues in fiscal '21, what would be a reasonable baseline modeling assumption for when I look at fiscal '22, is that a 50% drop-off, 75% drop-off? I'm curious how you guys are thinking about it. Thank you.
Robert B. Ford -- President and Chief Executive Officer
Yeah, I guess on the modeling thing, listen, you could say there could be a drop off, but you could say there could be an increase or it could stay. So I think the modeling piece here is a little bit difficult. I think we're going to have a lot more understanding as we get toward the summer, but I think at least for the first half, you've got -- we've got sufficient capacity here to explore the demand that exists, both in the U.S. and globally. So yeah, I'm not sure right now that you can easily just put that model down like that, but it's just too soon.
Regarding your question on mutations and the impact there, a lot of the mutations here, I don't want to get too wonky here, but we've been looking at this, Vijay, since the beginning. We have a group of -- we call them the virus hunters, they're constantly looking and studying and getting their hands on samples to be able to not only test our existing products, but even the develop of new ones.
And I'd say right now the mutations are happening, the ones that you referenced, the South African one and the U.K. one, those are happening on what we would call the spike protein, or what we call the S-protein. The rapid antigen tests that we have are actually targeting the nucleocapsid protein, what we call the N-protein, so in silico analysis says no impact. The U.K. NIH did a study on Panbio and found the U.K. variant to not influence the sensitivity of the Panbio, but we're also collecting as many samples as we can from U.K., South Africa, Brazil, etc. and making sure that we're constantly studying that to ensure that there's no change to the sensitivity of the test that we've developed.
On the molecular side, whether it's ID NOW, you know, ID NOW looks at a different gene, the RdRP [Phonetic] gene, it's a different thing, and similar thing also with the PCR. So I think those are right now from everything we know wouldn't be impacted by the mutations. We're more focused on the antigen with the mutations on those protein sequences. [Speech Overlap]
Vijay Kumar -- Evercore ISI -- Analyst
That's extremely helpful. Thank you guys.
Robert B. Ford -- President and Chief Executive Officer
So I feel good about that right now, but obviously we're constantly vigilant here. [Speech Overlap]. So let me just close here. I'd say we had a real strong 2020, very strong performance, almost 10% top line growth, 13% EPS. We're forecasting 2021 here at least $5, and like I said, I think we've got opportunity to have upside to that, but still already at $5, it's already at a 37% increase. And in that $5, we're also making a lot of investments in R&D to be able to sustain our growth going forward. So we feel confident about maintaining our double-digit in 2022.
A significant portion of our COVID testing, we believe is sustainable. We've made investments or have a plan here to lay out investments in our base business that I think will accelerate our growth rate, and some of the questions here, we've got a strong balance sheet here. So you combine those three elements here, I think we've got not only a strong '21 forecast but a pretty good line of sight here in terms of delivering double-digits for 2022. So, thanks.
Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions
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: 62 minutes
Call participants:
Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions
Robert B. Ford -- President and Chief Executive Officer
Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer
Bob Hopkins -- Bank of America Merrill Lynch -- Analyst
Matthew Taylor -- UBS -- Analyst
Robert Marcus -- J.P. Morgan -- Analyst
David Lewis -- Morgan Stanley -- Analyst
Lawrence Biegelsen -- Wells Fargo -- Analyst
Joanne Wuensch -- Citi -- Analyst
Vijay Kumar -- Evercore ISI -- 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) Q4 2020 Earnings Call Jan 27, 2021, 9:00 a.m. Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer Bob Hopkins -- Bank of America Merrill Lynch -- Analyst Matthew Taylor -- UBS -- Analyst Robert Marcus -- J.P. Morgan -- Analyst David Lewis -- Morgan Stanley -- Analyst Lawrence Biegelsen -- Wells Fargo -- Analyst Joanne Wuensch -- Citi -- Analyst Vijay Kumar -- Evercore ISI -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Strong double-digit growth in Diabetes Care was offset by lower sales in our cardiovascular and neuromodulation businesses due to challenging conditions as COVID case rate surge in certain geographies toward the end of the quarter. | Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer Bob Hopkins -- Bank of America Merrill Lynch -- Analyst Matthew Taylor -- UBS -- Analyst Robert Marcus -- J.P. Morgan -- Analyst David Lewis -- Morgan Stanley -- Analyst Lawrence Biegelsen -- Wells Fargo -- Analyst Joanne Wuensch -- Citi -- Analyst Vijay Kumar -- Evercore ISI -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q4 2020 Earnings Call Jan 27, 2021, 9:00 a.m. With me today are Robert Ford, President and Chief Executive Officer; and Bob Funck, Executive Vice President, Finance and Chief Financial Officer. | Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer Bob Hopkins -- Bank of America Merrill Lynch -- Analyst Matthew Taylor -- UBS -- Analyst Robert Marcus -- J.P. Morgan -- Analyst David Lewis -- Morgan Stanley -- Analyst Lawrence Biegelsen -- Wells Fargo -- Analyst Joanne Wuensch -- Citi -- Analyst Vijay Kumar -- Evercore ISI -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q4 2020 Earnings Call Jan 27, 2021, 9:00 a.m. During the past year, we continue to expand our nutrition portfolio with several new product and line extension including; the continued rollout of infant formula products across our Similac brand family that contain human oligosaccharides or HMO which supports a healthy immune system, global expansion of our PediaSure, Glucerna and Ensure brands including the continued rollout of Ensure high protein products and the launch of four new Pedialyte rehydration products; Pedialyte Zero Sugar, Sport, Organic and Immune Support. | Duration: 62 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing and Acquisitions Robert B. Ford -- President and Chief Executive Officer Robert E. Funck -- Executive Vice President, Finance and Chief Financial Officer Bob Hopkins -- Bank of America Merrill Lynch -- Analyst Matthew Taylor -- UBS -- Analyst Robert Marcus -- J.P. Morgan -- Analyst David Lewis -- Morgan Stanley -- Analyst Lawrence Biegelsen -- Wells Fargo -- Analyst Joanne Wuensch -- Citi -- Analyst Vijay Kumar -- Evercore ISI -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q4 2020 Earnings Call Jan 27, 2021, 9:00 a.m. I expect them to have a very similar year this year with a lot of new product launches. |
32259.0 | 2021-01-27 00:00:00 UTC | Abbott Projects 2021 EPS Growth Of More Than 35% - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-projects-2021-eps-growth-of-more-than-35-quick-facts-2021-01-27 | nan | nan | (RTTNews) - Abbott (ABT) said the company projects full-year 2021 earnings per share from continuing operations under GAAP of at least $3.74. Excluding items, projected adjusted earnings per share from continuing operations would be at least $5.00 for full-year 2021. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.37. Analysts' estimates typically exclude special items.
Fourth-quarter adjusted EPS was $1.45, reflecting 52.6 percent growth from prior year. Sales were $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis, which excludes the impact of foreign exchange.
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 the company projects full-year 2021 earnings per share from continuing operations under GAAP of at least $3.74. Excluding items, projected adjusted earnings per share from continuing operations would be at least $5.00 for full-year 2021. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.37. | (RTTNews) - Abbott (ABT) said the company projects full-year 2021 earnings per share from continuing operations under GAAP of at least $3.74. Excluding items, projected adjusted earnings per share from continuing operations would be at least $5.00 for full-year 2021. Sales were $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis, which excludes the impact of foreign exchange. | (RTTNews) - Abbott (ABT) said the company projects full-year 2021 earnings per share from continuing operations under GAAP of at least $3.74. Excluding items, projected adjusted earnings per share from continuing operations would be at least $5.00 for full-year 2021. Sales were $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis, which excludes the impact of foreign exchange. | (RTTNews) - Abbott (ABT) said the company projects full-year 2021 earnings per share from continuing operations under GAAP of at least $3.74. Excluding items, projected adjusted earnings per share from continuing operations would be at least $5.00 for full-year 2021. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.37. |
32260.0 | 2021-01-27 00:00:00 UTC | Here's How Abbott Labs Hit a Home Run With Its Q4 Results | ABT | https://www.nasdaq.com/articles/heres-how-abbott-labs-hit-a-home-run-with-its-q4-results-2021-01-27 | nan | nan | Abbott Laboratories (NYSE: ABT) made its shareholders quite happy last year with a market-beating stock price gain of 26%. And the healthcare giant got off to another good start in 2021.
The picture got even better on Wednesday when Abbott announced its fourth-quarter 2020 and full-year results before the market opened. Here are the highlights from that update.
Image source: Getty Images.
By the numbers
Abbott Labs reported revenue of $10.7 billion in the fourth quarter, a 29% year-over-year jump. This easily beat analysts' average estimate of $9.94 billion.
The company announced Q4 net income of $2.2 billion, or $1.20 per share, based on generally accepted accounting principles (GAAP). This was a sharp increase from Abbott's GAAP earnings of $1.1 billion, or $0.59 per share, in the prior-year period. Adjusted earnings per share (EPS) rose nearly 53% to $1.45, handily topping analysts' consensus estimate of $1.35.
Behind the numbers
The biggest factor by far behind Abbott's impressive Q4 performance was its COVID-19 testing business. Global COVID-19 testing-related sales totaled $2.4 billion in the quarter. Abbott's overall diagnostics segment revenue skyrocketed 111% year over year to $4.3 billion, fueled largely by demand for its COVID-19 tests.
Abbott's other segments posted more modest gains. Nutrition sales rose 3.6% year over year to $1.9 billion. Revenue from the medical devices segment increased 1.7% to nearly $3.3 billion. Established pharmaceuticals sales slipped 2.3% to $1.1 billion on a reported basis but increased by 3.4% on an organic basis, excluding the impact of foreign currency moves.
Of particular note, Abbott's diabetes care sales soared 41% to $917 million, fueled mainly by its FreeStyle Libre continuous glucose monitoring (CGM) system.
The company's total operating expenses in Q4 increased by 19% year over year. But with its revenue rising at a much faster rate, Abbott's bottom line improved considerably.
Looking ahead
Abbott Labs appears to be a stock that will keep winning in 2021. The company expects EPS growth of more than 35% this year. Its guidance projects full-year 2021 adjusted EPS of at least $5.00, well above the average analysts estimate of $4.37.
Investors can also look forward to Abbott joining the ranks of the Dividend Kings -- that rarefied group of companies with at least 50 consecutive years of dividend increases. Abbott boosted its payout by 25% in December, bringing its streak of dividend hikes to 49 years. Assuming the healthcare giant delivers another bump in late 2021 (which seems likely), it will be promoted to the highest echelon of dividend stocks.
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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) made its shareholders quite happy last year with a market-beating stock price gain of 26%. The company announced Q4 net income of $2.2 billion, or $1.20 per share, based on generally accepted accounting principles (GAAP). Of particular note, Abbott's diabetes care sales soared 41% to $917 million, fueled mainly by its FreeStyle Libre continuous glucose monitoring (CGM) system. | Abbott Laboratories (NYSE: ABT) made its shareholders quite happy last year with a market-beating stock price gain of 26%. By the numbers Abbott Labs reported revenue of $10.7 billion in the fourth quarter, a 29% year-over-year jump. Adjusted earnings per share (EPS) rose nearly 53% to $1.45, handily topping analysts' consensus estimate of $1.35. | Abbott Laboratories (NYSE: ABT) made its shareholders quite happy last year with a market-beating stock price gain of 26%. Abbott's overall diagnostics segment revenue skyrocketed 111% year over year to $4.3 billion, fueled largely by demand for its COVID-19 tests. 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) made its shareholders quite happy last year with a market-beating stock price gain of 26%. By the numbers Abbott Labs reported revenue of $10.7 billion in the fourth quarter, a 29% year-over-year jump. Abbott's overall diagnostics segment revenue skyrocketed 111% year over year to $4.3 billion, fueled largely by demand for its COVID-19 tests. |
32261.0 | 2021-01-27 00:00:00 UTC | Abbott Laboratories Q4 20 Earnings Conference Call At 9:00 AM ET | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q4-20-earnings-conference-call-at-9%3A00-am-et-2021-01-27 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) will host a conference call at 9:00 AM ET on Jan. 27, 2021, to discuss Q4 20 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 9:00 AM ET on Jan. 27, 2021, to discuss Q4 20 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 9:00 AM ET on Jan. 27, 2021, to discuss Q4 20 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 9:00 AM ET on Jan. 27, 2021, to discuss Q4 20 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 9:00 AM ET on Jan. 27, 2021, to discuss Q4 20 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. |
32262.0 | 2021-01-27 00:00:00 UTC | Abbott Laboratories Q4 adjusted earnings Beat Estimates | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q4-adjusted-earnings-beat-estimates-2021-01-27 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for its fourth quarter that increased from the same period last year.
The company's earnings came in at $2.16 billion, or $1.20 per share. This compares with $1.05 billion, or $0.59 per share, in last year's fourth quarter.
Excluding items, Abbott Laboratories reported adjusted earnings of $2.61 billion or $1.45 per share for the period.
Analysts had expected the company to earn $1.35 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 28.8% to $10.70 billion from $8.31 billion last year.
Abbott Laboratories earnings at a glance:
-Earnings (Q4): $2.61 Bln. vs. $1.71 Bln. last year. -EPS (Q4): $1.45 vs. $0.95 last year. -Analysts Estimate: $1.35 -Revenue (Q4): $10.70 Bln vs. $8.31 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for its fourth quarter that increased from the same period last year. Excluding items, Abbott Laboratories reported adjusted earnings of $2.61 billion or $1.45 per share for the period. Analysts had expected the company to earn $1.35 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for its fourth quarter that increased from the same period last year. This compares with $1.05 billion, or $0.59 per share, in last year's fourth quarter. Excluding items, Abbott Laboratories reported adjusted earnings of $2.61 billion or $1.45 per share for the period. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for its fourth quarter that increased from the same period last year. Excluding items, Abbott Laboratories reported adjusted earnings of $2.61 billion or $1.45 per share for the period. The company's revenue for the quarter rose 28.8% to $10.70 billion from $8.31 billion last year. | (RTTNews) - Abbott Laboratories (ABT) revealed a profit for its fourth quarter that increased from the same period last year. Excluding items, Abbott Laboratories reported adjusted earnings of $2.61 billion or $1.45 per share for the period. Abbott Laboratories earnings at a glance: -Earnings (Q4): $2.61 Bln. |
32263.0 | 2021-01-26 00:00:00 UTC | Can Abbott Stock Trade Higher Post Q4 Results? | ABT | https://www.nasdaq.com/articles/can-abbott-stock-trade-higher-post-q4-results-2021-01-27 | nan | nan | Abbott stock (NYSE: ABT) is scheduled to report its Q4 2020 results on Wednesday, January 27. We expect Abbott to likely report mixed results with revenues slightly below and earnings in-line with the consensus estimates, driven by a rebound in demand for medical devices, with an increase in total number of elective surgeries, along with continued growth in the Diagnostics business, led by Covid-19 testing. 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 $130 per share, which is 15% higher than the current market price of around $113. Our interactive dashboard analysis on Abbott’s Pre-Earnings has additional details.
(1) Revenues expected to be slightly below the consensus estimates
Trefis estimates Abbott’s Q4 2020 revenues to be around $9.8 Bil, slightly lower than the $9.9 Bil consensus estimate. While a deferment in elective surgeries earlier in the year amid the spread of Covid-19 impacted the overall medical devices sales volume, the gradual opening up of economies and resumption of elective surgeries is likely to have aided sales in Q4. Abbott’s Q3 2020 sales were up 9.6% to $8.9 Bil, primarily led by a strong 38% jump in the Diagnostics business, led by Covid-19 testing. Our dashboard on Abbott Revenues offers more details on the company’s segments.
2) EPS likely to be in-line with the consensus estimates
Abbott’s Q4 2020 adjusted earnings per share (EPS) is expected to be $1.35 per Trefis analysis as well as the consensus estimate. Abbott’s adjusted net income of $1.8 Bil in Q3 2020 reflected a 16% growth from its $1.5 Bil figure in the prior-year quarter. This can be attributed to higher revenues and lower operating expenses, including R&D. The margins will likely improve going forward, as the Medical Devices business sees a rebound. For the full-year, we expect the adjusted EPS to be higher at $3.55 compared to $3.26 in 2019.
(3) Stock price estimate higher than the current market price
Going by our Abbott’s Valuation, with an EPS estimate of around $3.55 and a P/E multiple of around 37x in 2020, this translates into a price of $130, which is 15% above the current market price of around $113. Although the 37x figure is higher than levels of under 27x seen in 2019, the multiple is based on 2020 earnings, which we know is being impacted by the pandemic, but as we look forward Abbott is expected to post strong earnings growth in 2021 and beyond. Going by the 2021 earnings estimate of $4.40, ABT stock is currently trading at 26x, which is closer to the range seen over the recent years.
Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year
may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you'll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck. \n\nBased on article theme, variations to \"While may have moved\" can be (a) While may be overvalued (or undervalued) (b) While can move (c) Although may not be attractive (d) While is worth considering"}" data-sheets-userformat="{"2":1049345,"3":{"1":0},"11":4,"12":0,"23":1}" data-sheets-textstyleruns="{"1":0}{"1":210,"2":{"2":{"1":2,"2":1136076},"5":1,"9":1}}{"1":225}{"1":229,"2":{"4":8}}{"1":267,"2":{"4":8,"6":1}}{"1":299,"2":{"4":8}}" data-sheets-hyperlinkruns="{"1":210,"2":"https://dashboards.trefis.com/data/companies/PFE/no-login-required/HMIwIvym/Pfizer-vs-Merck-PFE-stock-s-similar-valuation-vs-MRK-stock-is-counter-intuitive"}{"1":225}">While ABT stock may be undervalued, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.
See all Trefis Price Estimates and Download Trefis Data here
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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 Q4 2020 results on Wednesday, January 27. Going by the 2021 earnings estimate of $4.40, ABT stock is currently trading at 26x, which is closer to the range seen over the recent years. \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 Q4 2020 results on Wednesday, January 27. Going by the 2021 earnings estimate of $4.40, ABT stock is currently trading at 26x, which is closer to the range seen over the recent years. \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 Q4 2020 results on Wednesday, January 27. Going by the 2021 earnings estimate of $4.40, ABT stock is currently trading at 26x, which is closer to the range seen over the recent years. \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 Q4 2020 results on Wednesday, January 27. Going by the 2021 earnings estimate of $4.40, ABT stock is currently trading at 26x, which is closer to the range seen over the recent years. \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. |
32264.0 | 2021-01-26 00:00:00 UTC | Pre-Market Earnings Report for January 27, 2021 : T, ABT, BA, ANTM, ADP, NSC, PGR, GD, BX, TEL, APH, VFC | ABT | https://www.nasdaq.com/articles/pre-market-earnings-report-for-january-27-2021-%3A-t-abt-ba-antm-adp-nsc-pgr-gd-bx-tel-aph | nan | nan | The following companies are expected to report earnings prior to market open on 01/27/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
AT&T Inc. (T) is reporting for the quarter ending December 31, 2020. The wireless (national) company's consensus earnings per share forecast from the 17 analysts that follow the stock is $0.73. This value represents a 17.98% decrease compared to the same quarter last year. T missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -1.3%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for T is 9.18 vs. an industry ratio of 0.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Abbott Laboratories (ABT) is reporting for the quarter ending December 31, 2020. The medical products company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.36. This value represents a 43.16% increase compared to the same quarter last year. In the past year ABT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABT is 32.13 vs. an industry ratio of 60.70.
Boeing Company (BA) is reporting for the quarter ending December 31, 2020. The aerospace and defense company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-1.78. This value represents a 23.61% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BA is -20.94 vs. an industry ratio of 6.20.
Anthem, Inc. (ANTM) is reporting for the quarter ending December 31, 2020. The hmo company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.57. This value represents a 33.76% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ANTM is 14.05 vs. an industry ratio of 30.50.
Automatic Data Processing, Inc. (ADP) is reporting for the quarter ending December 31, 2020. The outsourcing company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.29. This value represents a 15.13% decrease compared to the same quarter last year. In the past year ADP 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 ADP is 29.07 vs. an industry ratio of 17.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Norfolk Southern Corporation (NSC) is reporting for the quarter ending December 31, 2020. The transportation (rail) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.48. This value represents a 2.75% decrease compared to the same quarter last year. In the past year NSC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 6.36%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for NSC is 27.03 vs. an industry ratio of 16.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Progressive Corporation (PGR) is reporting for the quarter ending December 31, 2020. The insurance (property & casualty) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.68. This value represents a 7.18% decrease compared to the same quarter last year. PGR missed the consensus earnings per share in the 1st calendar quarter of 2020 by -19.31%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for PGR is 12.47 vs. an industry ratio of 27.70.
General Dynamics Corporation (GD) is reporting for the quarter ending December 31, 2020. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.55. This value represents a 1.14% increase compared to the same quarter last year. GD missed the consensus earnings per share in the 1st calendar quarter of 2020 by -1.22%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for GD is 13.85 vs. an industry ratio of 6.20, implying that they will have a higher earnings growth than their competitors in the same industry.
The Blackstone Group Inc. (BX) is reporting for the quarter ending December 31, 2020. The finance/investment management company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.93. This value represents a 29.17% increase compared to the same quarter last year. BX missed the consensus earnings per share in the 1st calendar quarter of 2020 by -6.12%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BX is 26.52 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
TE Connectivity Ltd. (TEL) is reporting for the quarter ending December 31, 2020. The electrical instrument company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.29. This value represents a 6.61% increase compared to the same quarter last year. In the past year TEL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 34.88%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TEL is 23.91 vs. an industry ratio of 10.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Amphenol Corporation (APH) is reporting for the quarter ending December 31, 2020. The electrical connectors company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.01. This value represents a 3.06% increase compared to the same quarter last year. APH missed the consensus earnings per share in the 1st calendar quarter of 2020 by -6.58%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for APH is 36.69 vs. an industry ratio of 25.40, implying that they will have a higher earnings growth than their competitors in the same industry.
V.F. Corporation (VFC) is reporting for the quarter ending December 31, 2020. The textile company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.87. This value represents a 29.27% decrease compared to the same quarter last year. In the past year VFC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 31.37%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for VFC is 61.46 vs. an industry ratio of 20.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) is reporting for the quarter ending December 31, 2020. In the past year ABT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABT is 32.13 vs. an industry ratio of 60.70. | Abbott Laboratories (ABT) is reporting for the quarter ending December 31, 2020. In the past year ABT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABT is 32.13 vs. an industry ratio of 60.70. | Abbott Laboratories (ABT) is reporting for the quarter ending December 31, 2020. In the past year ABT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABT is 32.13 vs. an industry ratio of 60.70. | Abbott Laboratories (ABT) is reporting for the quarter ending December 31, 2020. In the past year ABT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABT is 32.13 vs. an industry ratio of 60.70. |
32265.0 | 2021-01-26 00:00:00 UTC | Abbott Receives CE Mark For Two New Uses Of Panbio COVID-19 Ag Rapid Test Device | ABT | https://www.nasdaq.com/articles/abbott-receives-ce-mark-for-two-new-uses-of-panbio-covid-19-ag-rapid-test-device-2021-01 | nan | nan | (RTTNews) - Abbott (ABT) said it has received CE Mark for two new uses of its Panbio COVID-19 Ag Rapid Test Device for the detection of the SARS-CoV-2 virus: asymptomatic testing and self-swabbing.
Panbio COVID-19 Ag's label has been updated with clinical data on asymptomatic individuals, which enables mass testing (mass screening) of people who do not currently present symptoms of the disease.
Panbio Rapid Antigen Test is approved for use with a patient-friendly and minimally invasive nasal swab. Patients can self-administer sample collection under a healthcare professional's supervision, the company said.
Panbio COVID-19 Ag delivers results in as early as 15 minutes with no instrumentation, using Abbott lateral flow technology.
Test performance in clinical study demonstrated 93.8% sensitivity and 100.0% specificity in asymptomatic people with high viral loads.
Abbott said it will offer complementary digital solutions: the NAVICA mobile app to allow people to display negative results for proof of testing and Sympheos for surveillance management to understand epidemiological trends.
Abbott has shipped 200 million Panbio rapid antigen tests to 120 countries worldwide, since August 2020 to date.
Panbio COVID-19 Ag is not available in the U.S., where Abbott manufactures and sells the BinaxNOW COVID-19 Ag Card, which has received emergency use authorization or EUA by the U.S. Food and Drug Administration. Abbott is in the process of pursuing FDA EUA of an asymptomatic indication for BinaxNOW.
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 it has received CE Mark for two new uses of its Panbio COVID-19 Ag Rapid Test Device for the detection of the SARS-CoV-2 virus: asymptomatic testing and self-swabbing. Test performance in clinical study demonstrated 93.8% sensitivity and 100.0% specificity in asymptomatic people with high viral loads. Abbott said it will offer complementary digital solutions: the NAVICA mobile app to allow people to display negative results for proof of testing and Sympheos for surveillance management to understand epidemiological trends. | (RTTNews) - Abbott (ABT) said it has received CE Mark for two new uses of its Panbio COVID-19 Ag Rapid Test Device for the detection of the SARS-CoV-2 virus: asymptomatic testing and self-swabbing. Panbio Rapid Antigen Test is approved for use with a patient-friendly and minimally invasive nasal swab. Abbott has shipped 200 million Panbio rapid antigen tests to 120 countries worldwide, since August 2020 to date. | (RTTNews) - Abbott (ABT) said it has received CE Mark for two new uses of its Panbio COVID-19 Ag Rapid Test Device for the detection of the SARS-CoV-2 virus: asymptomatic testing and self-swabbing. Panbio COVID-19 Ag's label has been updated with clinical data on asymptomatic individuals, which enables mass testing (mass screening) of people who do not currently present symptoms of the disease. Panbio COVID-19 Ag is not available in the U.S., where Abbott manufactures and sells the BinaxNOW COVID-19 Ag Card, which has received emergency use authorization or EUA by the U.S. Food and Drug Administration. | (RTTNews) - Abbott (ABT) said it has received CE Mark for two new uses of its Panbio COVID-19 Ag Rapid Test Device for the detection of the SARS-CoV-2 virus: asymptomatic testing and self-swabbing. Panbio COVID-19 Ag's label has been updated with clinical data on asymptomatic individuals, which enables mass testing (mass screening) of people who do not currently present symptoms of the disease. Panbio Rapid Antigen Test is approved for use with a patient-friendly and minimally invasive nasal swab. |
32266.0 | 2021-01-26 00:00:00 UTC | 2 Stocks I'll Hold Forever | ABT | https://www.nasdaq.com/articles/2-stocks-ill-hold-forever-2021-01-26 | nan | nan | Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial satisfaction that you get from seeing a stock's value rise over time, you also get to savor that oh-so-precious feeling: I was right.
Once you've had enough self-congratulation, you can always choose to sell the stock and lock in your gains. But, if you're like me, there are a few stocks that just keep on giving so reliably that you'll never let them go. If you're looking to invest in something for the long haul, you'll probably be interested in these stocks too.
Image source: Getty Images.
1. AbbVie
As a major pharma company, AbbVie (NYSE: ABBV) delivers for its investors by developing and commercializing new drugs, like its best-selling arthritis treatment Humira. There's two reasons AbbVie is worth holding forever: its skill with drug development, and its generous dividend. The dividend hasn't ever been cut, and it's been increasing steadily over time. Right now, the forward yield is around 4.7%. But how does the company pay for it?
That's where things get much more interesting. Like many other pharma companies, AbbVie maximizes the revenue that it gets from each of its drug development projects by investigating their usefulness for multiple illnesses. Then, when it finds a promising lead, it runs a clinical trial to get regulatory approval for new illnesses other than what the drug was originally approved for. Case in point: For Humira, the original regulatory approval to treat arthritis in 2002 was only the very beginning of its revenue potential. Since then, it's been approved to treat eight (!) additional conditions, making the company $19.2 billion in 2019 alone.
Humira isn't the only therapy that AbbVie has worked hard to expand. Its monoclonal antibody risankizumab for psoriasis and upadacitinib for arthritis will likely follow a similar trajectory with their approved indications and revenue potential over time. It's this organizational talent for making its products increasingly lucrative over time that makes AbbVie worth holding forever. Where other companies might try to get their drugs approved for one or two other indications after launch, AbbVie never stops investing in its winners, and its shareholders tend to benefit as a result.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. It sells consumer healthcare goods like Pedialyte, as well as medical devices like pacemakers, glucose monitors, and catheters. It also offers a plethora of medical diagnostic tests and medicines, not to mention surgical tools like cardiac stents. If you can't see a trend yet, don't worry -- Abbott's appeal is that it sells a huge swath of critical healthcare products to many different markets. Many of these goods don't require any additional investment to keep selling year after year, which means that Abbott can invest its funds to make new products to add to its repertoire. This flexibility came in handy during the COVID-19 pandemic, when Abbott was able to create several different coronavirus diagnostic tests that went on to become best-sellers nearly overnight.
Data source: YCharts.
Importantly, Abbott Labs has profitably repeated its formula of making evergreen healthcare products for decades and decades on end. Like AbbVie (which is actually one of its spin-offs), its dividend (with a current yield of 1.6%) has increased over time, and its payment is quite sustainable, given its rapid quarterly earnings growth of 28.3% year over year.
In summary, I'll never sell Abbott Laboratories because I expect that it'll continue to innovate and expand its durable revenue base indefinitely. While its dividend will never make you rich, it sometimes ratchets upward by a significant amount, and the stock is a case study for why you should invest for the long term. Compared to the wider market, the total returns for shareholders have been much better with Abbott for at least the last decade. I fully expect this trend to continue, so I'll be sure to keep holding.
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Alex Carchidi owns shares of Abbott Laboratories and 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. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. Its monoclonal antibody risankizumab for psoriasis and upadacitinib for arthritis will likely follow a similar trajectory with their approved indications and revenue potential over time. Where other companies might try to get their drugs approved for one or two other indications after launch, AbbVie never stops investing in its winners, and its shareholders tend to benefit as a result. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. It's this organizational talent for making its products increasingly lucrative over time that makes AbbVie worth holding forever. Many of these goods don't require any additional investment to keep selling year after year, which means that Abbott can invest its funds to make new products to add to its repertoire. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. Many of these goods don't require any additional investment to keep selling year after year, which means that Abbott can invest its funds to make new products to add to its repertoire. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is another healthcare stock that I'll hold forever. If you're looking to invest in something for the long haul, you'll probably be interested in these stocks too. If you can't see a trend yet, don't worry -- Abbott's appeal is that it sells a huge swath of critical healthcare products to many different markets. |
32267.0 | 2021-01-26 00:00:00 UTC | 3 Stocks to Bankroll Your Retirement | ABT | https://www.nasdaq.com/articles/3-stocks-to-bankroll-your-retirement-2021-01-26 | nan | nan | When you're choosing the right stocks to help fund your retirement, you need stable, safe income producers -- companies that have steady, if not spectacular growth, with above-average dividend yields. But that doesn't mean you have to buy the same stocks your grandparents did.
Ideally, the stocks you pick are on the cusp of trends that are going to climb for years. Where's the growth? You can look for stocks in healthcare, pet care, and 5G technology, just to name a few sectors. Healthcare should be an obvious pick, as our population is aging and healthcare needs are expected to grow. The growth in spending on pets has been exponential and was further spurred during the pandemic. Lastly, 5G is the next big thing in technology, and the companies associated with it are sure to benefit.
That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). All three have attractive dividends and are expecting major growth.
Image source: Getty Images.
1. AbbVie: An outstanding dividend, plus growth
AbbVie is a retiree's dream stock. The pharmaceutical giant's shares are up more than 32% over the past year.
It began as a spinoff of Abbott Laboratories in 2013, but counting its time with Abbott, it is a Dividend Aristocrat with 48 consecutive years of dividend growth. Since 2013, the company has increased its dividend 225%, including a 10.2% gain this year. Its quarterly dividend of $1.33 a share offers a yield of 4.34%. Despite that pleasantly high number, it could easily go higher. While its payout ratio is a scary 97, the company's cash dividend payout ratio is only 47%.
PETS Payout Ratio data by YCharts
AbbVie is also a predictable growth stock with increased revenue every year. It's on track to increase revenue again in 2020 with reported revenue of $31.9 billion through the first nine months of 2020, up 30% year over year.
The company's lead therapy is Humira, an immunosuppressant. Much has been written about how biosimilars are cutting into its profits. Still, through the first nine months of 2020, Humira posted $14.6 billion in revenue, up 3% over the same period in 2019. AbbVie has a huge group of up-and-coming drugs as well. Blood cancer drug Imbruvica brought in $3.9 billion, up 13.9% through nine months. Two auto-immune drugs -- Skyrizi, which treats plaque psoriasis, and Rinvoq, which treats rheumatoid arthritis -- reported revenue through nine months of $1 billion and $450 million, respectively. That was in their first full year of sales.
2. PetMed Express: Revenue unleashed
Shares of PetMed Express, an online pet pharmacy, are up more than 44% over the past 12 months. The company is headed for its fifth consecutive year of annual revenue growth, with a compound annual revenue growth of 32.87% in that period. The company's quarterly dividend of $0.28 per share gives it a yield of 3.69%, and the dividend has grown 124% over the past decade. Its cash dividend payout ratio is a little high at 61%, but given the company's growth, it's still sustainable.
In the company's third-quarter earnings report, which was announced on Tuesday and included its numbers through Dec. 31, the company had net sales of $65.9 million, up 10% year over year for the quarter. Through nine months of 2020, sales were $237.5 million, up 13.2% over the same period in 2019.
The company also grew net income and margins. Third-quarter net income was reported as $7.6 million, up 11.3% year over year. Nine-month net income was listed as $23.8 million, up 26% compared to the same period in 2019. Gross margin improved 0.3% in the quarter to 29.8%.
PetMed Express fits the need of retirees because it has consistent growth, and a record of dividend growth with a sustainable payout ratio.
3. Crown Castle International: Wired for success
Crown Castle International is a real estate investment trust (REIT) that owns, operates, and leases wireless towers and antennas. The company's share price is up more than 9% over the past year.
The growth of 5G networks means quicker connectivity for online use, particularly mobile online use. But 5G signals don't travel far, so more cell towers and small cell fiber-connected antennas are needed to keep us connected.
Research and Markets estimates the 5G infrastructure market to grow from $12.6 in 2020 to $44.9 billion by 2025, a compound annual growth rate (CAGR) of 28.97%.
That's one area where Crown Castle will benefit. The company owns 80,000 route miles of fiber cable and more than 40,000 cell towers. It also leads the U.S. with roughly 70,000 small cells, which are attached to existing structures such as streetlights and utility poles.
Crown's quarterly dividend was raised 10.8% this year to $1.33 per share, offering a yield of 3.09%. The company says that its goal is to continue annual dividend growth of 7% to 8%. Over the past decade, the company's funds from operation (FFO) have risen 331% while its dividend has increased 280%. In the third quarter, Crown's adjusted FFO was $1.56 per share, a growth of 6% year over year. This keeps its dividend payout ratio at 85%, which isn't high for a REIT, especially one with Crown's steady cash flows that come from long-term leases.
PETS Revenue (TTM) data by YCharts
All three make great options
It's hard to go wrong with any of these stocks in your retirement portfolio.
PetMed Express may be the best bargain of the three with a price-to-earnings ratio of 19, but it doesn't have the dividend history that AbbVie has. Crown Castle International has the best chance of exploding growth, but for now, it is the most expensive of the three with a price-to-free cash flow ratio of 60. Of the three, AbbVie is the easiest choice because it has the highest dividend yield, strongest dividend growth history, and greatest track record of revenue growth.
10 stocks we like better than Crown Castle International
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 Crown Castle International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Jim Halley owns shares of AbbVie. The Motley Fool owns shares of and recommends Crown Castle International. 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. | When you're choosing the right stocks to help fund your retirement, you need stable, safe income producers -- companies that have steady, if not spectacular growth, with above-average dividend yields. This keeps its dividend payout ratio at 85%, which isn't high for a REIT, especially one with Crown's steady cash flows that come from long-term leases. PETS Revenue (TTM) data by YCharts All three make great options It's hard to go wrong with any of these stocks in your retirement portfolio. | That's why I recommend AbbVie (NYSE: ABBV), PetMed Express (NASDAQ: PETS) and Crown Castle International (NYSE: CCI). The company is headed for its fifth consecutive year of annual revenue growth, with a compound annual revenue growth of 32.87% in that period. The Motley Fool owns shares of and recommends Crown Castle International. | PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. The company is headed for its fifth consecutive year of annual revenue growth, with a compound annual revenue growth of 32.87% in that period. Of the three, AbbVie is the easiest choice because it has the highest dividend yield, strongest dividend growth history, and greatest track record of revenue growth. | Where's the growth? PETS Payout Ratio data by YCharts AbbVie is also a predictable growth stock with increased revenue every year. The Motley Fool owns shares of and recommends Crown Castle International. |
32268.0 | 2021-01-25 00:00:00 UTC | Notable ETF Outflow Detected - IVV, INTC, TMO, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-ivv-intc-tmo-abt-2021-01-25 | 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 $2.3 billion dollar outflow -- that's a 0.9% decrease week over week (from 635,650,000 to 629,700,000). Among the largest underlying components of IVV, in trading today Intel Corp (Symbol: INTC) is off about 2.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 1.6%. 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 $220.2756 per share, with $386.3781 as the 52 week high point — that compares with a last trade of $385.96. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVV, in trading today Intel Corp (Symbol: INTC) is off about 2.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 1.6%. 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 $220.2756 per share, with $386.3781 as the 52 week high point — that compares with a last trade of $385.96. 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 Intel Corp (Symbol: INTC) is off about 2.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 1.6%. 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 $220.2756 per share, with $386.3781 as the 52 week high point — that compares with a last trade of $385.96. 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 Intel Corp (Symbol: INTC) is off about 2.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 1.6%. 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 $2.3 billion dollar outflow -- that's a 0.9% decrease week over week (from 635,650,000 to 629,700,000). 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 $220.2756 per share, with $386.3781 as the 52 week high point — that compares with a last trade of $385.96. | Among the largest underlying components of IVV, in trading today Intel Corp (Symbol: INTC) is off about 2.6%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 1.6%. 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 $2.3 billion dollar outflow -- that's a 0.9% decrease week over week (from 635,650,000 to 629,700,000). 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 $220.2756 per share, with $386.3781 as the 52 week high point — that compares with a last trade of $385.96. |
32269.0 | 2021-01-25 00:00:00 UTC | 3 Reasons To Invest in Pfizer Stock Despite Its Dismal Performance | ABT | https://www.nasdaq.com/articles/3-reasons-to-invest-in-pfizer-stock-despite-its-dismal-performance-2021-01-25 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. That’s strange, considering it got its vaccine out the door in record time. The novel coronavirus pandemic has wreaked havoc on the global economy. Pfizer and BioNTech’s (NASDAQ:BNTX) vaccine received Emergency Use Authorization (EUA) due to its excellent efficacy of 95%. But despite that, Pfizer stock hasn’t moved the needle.
PFE) logo on Pfizer building. Pfizer is an American pharmaceutical corporation." width="300" height="169">
Source: Manuel Esteban / Shutterstock.com
That’s the part that confusing analysts. According to Morgan Stanley, Pfizer is projected to haul vaccine revenue worth $19 billion in 2021. And it’s expected to earn a further $9.3 billion in 2022. Despite all these positive catalysts, Pfizer stock is meandering along.
Retail traders are more attracted to electric vehicle (EV) stocks and SPAC plays. Solid performers are left in the dust as investors chase potential multi-baggers.
7 Great Sub-$20 Stocks to Buy After Inauguration Day
Despite a yield of 4.3% and 10 positive earnings surprises in the last 12 quarters, Pfizer stock continues to trade at 11.8x forward price-earnings. It has a 12-month price target of $41.8 per share, a 14.6% premium to the current price. No matter which way you look at it, shares are a bargain at the moment.
Pfizer Stock Is a Value Play in the Pharma Sector
Vaccine stocks are slowly losing steam after a bumper 2020. That’s because investors are booking their profits after valuations went supersonic.
However, we are still in the early days of recovery. The virus is surging and initial vaccine supplies remain limited. The country’s immunization program focuses on the elderly, people with serious medical conditions, and essential workers. That means there are still millions of yet to be vaccinated.
Source: Chart courtesy of StockRover.com
Besides, the emergence of a new variant of the disease makes investors rethink the logic of abandoning pharmaceutical stocks quickly. The World Health Organization believes there is no impact on vaccines from the variant. BioNTech has also expressed confidence its vaccine is effective against the variant. However, the Pfizer and BioNTech partnership may still have to develop vaccines to deal with new strains of coronavirus. In such a situation, its research on Covid-19 will prove useful and reduce costs moving forward.
Amidst all this, Pfizer stock’s forward P/E is the cheapest among the major vaccine manufacturers. It’s expected to grow sales and EPS at 10.9% and 10.3%, respectively. Shares have a margin of safety of 27% and as I mentioned, seldom has a quarter gone by where the company hasn’t beaten Wall Street estimates soundly.
Come for the Valuation, Stay for the Dividend
Dividend investing is not something that you would associate with pharmaceutical stocks these days. However, having a sustainable income stream in addition to the growth in your portfolio’s market value from asset appreciation is important. It’s here that Pfizer gets top marks.
The company has hiked its distribution for more than 10 consecutive years. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return.
The only company with a close to 4.3% yield is AbbVie (NYSE:ABBV), with 4.7%. However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock.
Diversified Portfolio
Undoubtedly, Covid-19 associated vaccine sales are a major tailwind for Pfizer stock. However, the company also has other medical products that are doing well, especially its oncology portfolio, which contributes more than 10% to its overall top line.
For the past five years, revenues have grown at 32% due to Ibrance and Sutent’s success. Sutent is a $1 billion-plus drug, while Ibrance generates over $4 billion in annual sales. Additionally, Pfizer’s hemophilia drug candidate marstacimab is a major growth driver.
These have nothing to do with Covid-19 vaccine sales, which are expected to be a major driving force for the foreseeable future. Pfizer and BioNTech plan to produce 2 billion doses of their Covid-19 vaccine this year. Moderna (NASDAQ:MRNA), its closest competitor, does not have the resources to match Pfizer’s production capacity.
Attractively Placed
Unlike several of its peers, Pfizer stock hasn’t soared to dizzying heights. That says a lot of the speculative atmosphere that exists at the moment. People are investing less in established names. Instead, the focus has shifted to obscure companies in high growth niches.
Even if you feel that vaccine sales are a one-off, there is a possibility that future coronavirus strains could require new products. In addition, an attractive valuation, high dividend yield, and solid outlook make Pfizer stock a value play for me.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
The post 3 Reasons To Invest in Pfizer Stock Despite Its Dismal Performance 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. | However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock. Source: Chart courtesy of StockRover.com Besides, the emergence of a new variant of the disease makes investors rethink the logic of abandoning pharmaceutical stocks quickly. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return. | However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Pfizer and BioNTech’s (NASDAQ:BNTX) vaccine received Emergency Use Authorization (EUA) due to its excellent efficacy of 95%. | However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Pfizer Stock Is a Value Play in the Pharma Sector Vaccine stocks are slowly losing steam after a bumper 2020. | However, the Abbott Laboratories (NYSE:ABT) spin-off is not a frontrunner in the vaccine game, a major reason for investing in Pfizer stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (NYSE:PFE) stock is down nearly 1% so far this year. Considering the kind of sales growth the company is expected to see for the next couple of years, there is no danger it will cut its distribution any time soon, leading to a very healthy total return. |
32270.0 | 2021-01-21 00:00:00 UTC | 3 COVID Stocks to Buy if You're Not a Big Risk-Taker | ABT | https://www.nasdaq.com/articles/3-covid-stocks-to-buy-if-youre-not-a-big-risk-taker-2021-01-21 | nan | nan | There's a more powerful force than the fear of missing out -- plain old fear itself. The stocks of several small companies developing COVID-19 diagnostics, therapies, and vaccines skyrocketed last year. It's fair to say that most investors remained on the sidelines and didn't buy those stocks. Why? The stocks were simply too risky despite their jaw-dropping gains.
Few investors are eager to take on significant levels of risk, but there are still ways to profit from the rapidly expanding coronavirus market without losing sleep at night. Here are three great COVID-19 stocks to buy if you're not a big risk-taker.
Image source: Getty Images.
1. Abbott Labs
Abbott Labs (NYSE: ABT) moved quickly last year to develop COVID-19 tests. The company currently markets eight COVID-19 tests under the U.S. Food and Drug Administration emergency use authorization (EUA) program. In the third quarter of 2020, these tests generated $881 million globally.
The tremendous growth fueled by COVID-19 tests will undoubtedly taper off, especially once the pandemic is over. However, Abbott should maintain a thriving COVID-19 diagnostics business for a long time to come if predictions are correct that COVID-19 will become like the seasonal flu.
More importantly, Abbott has multiple other growth drivers. FreeStyle Libre, the company's wildly popular continuous glucose monitoring (CGM) system, ranks at the top of the list. Abbott's latest version of the CGM device is already available in Europe and could be its biggest winner of all, thanks to its small size and affordable price.
Risk-averse investors will like that Abbott is as solid as they come. It holds the No. 1 position in more than a dozen major markets. It's financially strong with solid earnings growth. The company is a Dividend Aristocrat with 49 consecutive years of dividend increases. Abbott has stood at No. 1 in its industry on Fortune's Most Admired Companies list for seven years in a row. With its sterling reputation, excellent growth prospects, and solid dividend, buying Abbott Labs stock is an easy call.
2. Johnson & Johnson
Investors who aren't big risk-takers will definitely like Warren Buffett's two rules of investing. Rule No. 1? Don't lose money. Rule No. 2? Don't forget rule No. 1. If you're looking for a COVID-19 vaccine stock that will allow you to follow Buffett's rules, you'll probably go with Johnson & Johnson (NYSE: JNJ).
J&J should announce results from a late-stage study of its coronavirus vaccine JNJ-78436735 this month. If those results are positive, the company will automatically have a huge winner on its hands. Unlike other leading COVID-19 vaccines, JNJ-78436735 requires only a single dose.
Because of its diversification across healthcare and its size, Johnson & Johnson's fortunes don't hinge on what happens with its COVID-19 vaccine, though. The company operates three multibillion-dollar business segments focusing on consumer health, medical devices, and pharmaceuticals. When one of these units faces headwinds, the others are usually able to take up the slack.
Like Abbott Labs, Johnson & Johnson is rock-solid. It's the biggest healthcare company in the world. J&J isn't just a Dividend Aristocrat; it's also a Dividend King with an impressive track record of 58 consecutive years of dividend increases. The stock might not deliver the huge gains that smaller biotech stocks could, but you shouldn't have to worry about losing your money over the long term with Johnson & Johnson.
3. Pfizer
No company has played a more significant role in the coronavirus vaccine race so far than Pfizer (NYSE: PFE). The big drugmaker teamed up with German biotech BioNTech early last year. Their COVID-19 vaccine, Comirnaty (BNT162b2), became the first to win EUA in the U.S. It's likely to rake in the most money of all coronavirus vaccines in 2021.
Pfizer could realistically add $7 billion or more in revenue this year from sales of Comirnaty. This one product could boost the company's total sales by at least 14%. Pfizer and BioNTech are also working to develop a flu vaccine based on the same messenger RNA technology used for Comirnaty.
Even without its successful COVID-19 vaccine, though, Pfizer is poised to generate solid growth in 2021 and for years to come. The company has several products with fast-rising sales, including Vyndaqel, which treats a rare type of heart disease called transthyretin-mediated amyloidosis. Pfizer is no longer held back by older drugs that have lost patent protection, such as Lyrica, thanks to spinning off its Upjohn unit and merging it with Mylan to form a new entity, Viatris.
Pfizer is, along with Abbott and J&J, another blue-chip stock that investors can own without concerns of taking on too much risk. It's been in business since 1849 and has adapted to continual changes in the healthcare landscape. Pfizer also offers an attractive dividend that will boost its total return. This big pharma stock could be a market-beater over the next few years with its solid current lineup and promising pipeline.
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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 Abbott Labs (NYSE: ABT) moved quickly last year to develop COVID-19 tests. Few investors are eager to take on significant levels of risk, but there are still ways to profit from the rapidly expanding coronavirus market without losing sleep at night. The company has several products with fast-rising sales, including Vyndaqel, which treats a rare type of heart disease called transthyretin-mediated amyloidosis. | Abbott Labs Abbott Labs (NYSE: ABT) moved quickly last year to develop COVID-19 tests. With its sterling reputation, excellent growth prospects, and solid dividend, buying Abbott Labs stock is an easy call. Johnson & Johnson Investors who aren't big risk-takers will definitely like Warren Buffett's two rules of investing. | Abbott Labs Abbott Labs (NYSE: ABT) moved quickly last year to develop COVID-19 tests. The stocks of several small companies developing COVID-19 diagnostics, therapies, and vaccines skyrocketed last year. If you're looking for a COVID-19 vaccine stock that will allow you to follow Buffett's rules, you'll probably go with Johnson & Johnson (NYSE: JNJ). | Abbott Labs Abbott Labs (NYSE: ABT) moved quickly last year to develop COVID-19 tests. Risk-averse investors will like that Abbott is as solid as they come. Johnson & Johnson Investors who aren't big risk-takers will definitely like Warren Buffett's two rules of investing. |
32271.0 | 2021-01-19 00:00:00 UTC | Abbott's COVID-19 antigen test may help with faster detection, isolation - CDC | ABT | https://www.nasdaq.com/articles/abbotts-covid-19-antigen-test-may-help-with-faster-detection-isolation-cdc-2021-01-19-0 | nan | nan | By Vishwadha Chander
Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention.
The test was less sensitive in detecting asymptomatic infection, but the CDC study found that the faster turnaround time can help limit transmission by more rapidly identifying infectious persons for isolation. (https://bit.ly/38WwExa)
The study comes when public health departments are scrambling to implement strategies to reduce or prevent the rapid spread of the virus, with the United States recording more than 200,000 new cases and 3,220 deaths on average over the last seven days.
Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services.
Using the real-time reverse transcription–polymerase chain reaction, or RT-PCR, test as the standard, the CDC studied over 3,400 specimens collected from people aged over 10 years at two community testing sites in Pima County, Arizona, from Nov. 3 to Nov. 17.
Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people.
It had near 100% specificity in specimens from both groups, suggesting very few false positives and no false negatives.
"The appropriate use of high quality rapid antigen tests like the BinaxNOW can serve to slow the spread of this virus in weeks in any given community and in two months across the U.S.," said Michael Mina, assistant professor at Harvard University.
The researchers said swabs from the back of the nose were taken for the RT-PCR tests, which might have contributed to increased detection for the real-time RT-PCR assay. Swabs from the front of the nose were used for BinaxNOW.
"BinaxNOW is great at finding infectious people – and this Pima County study demonstrates that BinaxNOW is 92.6% effective at identifying positive cases when people are infectious - in line with our performance data," Abbott said in an emailed statement.
(Reporting by Vishwadha Chander and Trisha Roy in Bengaluru; Editing by Sriraj Kalluvila)
((Vishwadha.Chander@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 6132;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. (https://bit.ly/38WwExa) The study comes when public health departments are scrambling to implement strategies to reduce or prevent the rapid spread of the virus, with the United States recording more than 200,000 new cases and 3,220 deaths on average over the last seven days. "The appropriate use of high quality rapid antigen tests like the BinaxNOW can serve to slow the spread of this virus in weeks in any given community and in two months across the U.S.," said Michael Mina, assistant professor at Harvard University. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. The researchers said swabs from the back of the nose were taken for the RT-PCR tests, which might have contributed to increased detection for the real-time RT-PCR assay. |
32272.0 | 2021-01-19 00:00:00 UTC | Abbott's COVID-19 antigen test may help with faster detection, isolation - CDC | ABT | https://www.nasdaq.com/articles/abbotts-covid-19-antigen-test-may-help-with-faster-detection-isolation-cdc-2021-01-19 | nan | nan | By Vishwadha Chander
Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention.
The test was less sensitive in detecting asymptomatic infection, but the CDC study found that the faster turnaround time can help limit transmission by more rapidly identifying infectious persons for isolation. (https://bit.ly/38WwExa)
The study comes when public health departments are scrambling to implement strategies to reduce or prevent the rapid spread of the virus, with the United States recording more than 200,000 new cases and 3,220 deaths on average over the last seven days.
Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services.
Using the real-time reverse transcription–polymerase chain reaction, or RT-PCR, test as the standard, the CDC studied over 3,400 specimens collected from people aged over 10 years at two community testing sites in Pima County, Arizona, from Nov. 3 to Nov. 17.
Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people.
It had near 100% specificity in specimens from both groups, suggesting very few false positives and no false negatives.
"BinaxNOW is great at finding infectious people – and this Pima County study demonstrates that BinaxNOW is 92.6% effective at identifying positive cases when people are infectious - in line with our performance data," Abbott said in an emailed statement.
The researchers said swabs from the back of the nose were taken for the RT-PCR tests, which might have contributed to increased detection for the real-time RT-PCR assay. Swabs from the front of the nose were used for BinaxNOW.
(Reporting by Vishwadha Chander in Bengaluru; Editing by Sriraj Kalluvila)
((Vishwadha.Chander@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 6132;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. The test was less sensitive in detecting asymptomatic infection, but the CDC study found that the faster turnaround time can help limit transmission by more rapidly identifying infectious persons for isolation. (https://bit.ly/38WwExa) The study comes when public health departments are scrambling to implement strategies to reduce or prevent the rapid spread of the virus, with the United States recording more than 200,000 new cases and 3,220 deaths on average over the last seven days. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Several rapid antigen tests have been approved by the U.S. Food and Drug Administration for emergency use, but data lacks on test performance in asymptomatic people, according to a team of scientists from CDC's COVID-19 Response Team and the Arizona Department of Health Services. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. | By Vishwadha Chander Jan 19 (Reuters) - Abbott Laboratories' ABT.N rapid COVID-19 antigen test is highly likely to correctly detect if people have ever contracted the virus and could help with earlier isolation, according to the U.S. Centers for Disease Control and Prevention. Compared with RT-PCR, Abbott's BinaxNOW antigen test had a sensitivity of 64.2% for specimens from symptomatic people and only 35.8% for specimens from asymptomatic people. "BinaxNOW is great at finding infectious people – and this Pima County study demonstrates that BinaxNOW is 92.6% effective at identifying positive cases when people are infectious - in line with our performance data," Abbott said in an emailed statement. |
32273.0 | 2021-01-19 00:00:00 UTC | Abbott vs Dexcom: Which “Strong Buy” Stock Could Deliver Higher Returns in 2021? | ABT | https://www.nasdaq.com/articles/abbott-vs-dexcom%3A-which-strong-buy-stock-could-deliver-higher-returns-in-2021-2021-01-19 | nan | nan | With multiple COVID-19 vaccines being distributed across the world, companies focused on other medical conditions are now grabbing the Street's attention. One such disorder is diabetes, which is growing rapidly worldwide—sedentary lifestyles being a key reason for that. A recent report by the World Health Organization (WHO) revealed that deaths from diabetes surged 70% globally between 2019 and 2020.
Abbott and Dexcom are some of the names that are developing diabetes monitoring systems. Using the TipRanks Stock Comparison tool, we will place Abbott and Dexcom alongside each other and pick the stock reflecting a more compelling play.
Abbott Laboratories (ABT)
Abbott has a diversified business that includes four segments: Medical Devices, Diagnostics, Nutrition and Established Pharmaceutical Products (which generates revenue from the sale of branded generic pharmaceutical products outside of the US).
Since the pandemic's onset, Abbott has been in the news for the multiple COVID-19 tests developed by the company. Most recently, BinaxNOW COVID-19 Ag Test Card was granted the FDA’s emergency use authorization for virtually guided at-home use.
Coming to diabetes, Abbott sees tremendous growth in the area, especially through its FreeStyle Libre technology, which is a sensor-based continuous glucose monitoring system. Sales of FreeStyle Libre systems grew 37.9% in 3Q 2020.
Moreover, in 3Q 2020, the company’s FreeStyle Libre 3 system secured CE Mark for use by diabetic patients in Europe. The FreeStyle Libre 3 provides real-time glucose readings automatically delivered to the user’s smartphone every minute, offering unsurpassed 14-day accuracy and real-time glucose alarms. The company also won CE Mark for its Libre Sense Glucose Sport Biosensor, which helps athletes “better understand the efficacy of their nutritional choices on training and athletic performance.”
Furthermore, Abbott’s FreeStyle Libre 2 received approval in December 2020 by Health Canada for adults and children (4 and older) with diabetes. (See ABT stock analysis on TipRanks)
Last month, Raymond James analyst Jayson Bedford reiterated a Buy rating for Abbott following a call with the company’s management. Bedford stated that the company is working through the reimbursement channels in Europe and expects to launch Libre 3 in the “coming months,” while the analyst had anticipated a December launch.
Bedford also specified that management did not lay out a timeline for Libre 3 roll out in the US, but he estimates the launch could happen in 2021. The analyst also noted that the app for the Libre 2 system has not yet been approved, but management is optimistic about the submission.
Commenting on the prospects of the COVID-19 testing portfolio, Abbott’s management anticipates the testing market to remain strong into mid-2021 and then start to decline in the second half of this year.
To back his bullish stance on Abbott, the analyst concluded, “The 'third wave' of CV-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the CV-19 testing tailwind, which lessens the near-term risk profile. Management is executing well, and enters 2021 with momentum.”
Overall, consensus among analysts is a Strong Buy based on 8 Buys versus 2 Holds. Abbott shares have risen 25.1% over the past year and the average price target of $120.57 suggests upside potential of 8.3% in the months ahead.
Dexcom (DXCM)
Diabetes is growing rapidly and so is the need for continuous glucose monitoring (CGM) systems, which Dexcom specializes in. The company's G6 CGM system is FDA-permitted for use by people with Type 1 and Type 2 diabetes.
Last week, the company announced better-than-anticipated preliminary results for 4Q 2020, which calls for revenue to meet or exceed $567 million. This implies year-over-year growth of 23%, with U.S. revenue expected to rise about 20% to $451 million and international revenue to grow about 33% to $116 million. (See DXCM stock analysis on TipRanks)
Overall, the company expects to meet or exceed revenue of $1.925 billion in 2020, reflecting a gain of over 30%. As for the initial 2021 outlook, Dexcom calls for top-line growth in the range of 15%-20%. The company’s outlook is based on an increase in its sensor volumes, driven by the growing CGM awareness for people with Type 1 and Type 2 diabetes, continued expansion beyond the US, shifting channel mix and overall market dynamics.
Covering Dexcom for Oppenheimer, analyst Steven Lichtman notes that the company’s international business was the primary driver of the revenue beat, owing to new initiatives including direct-to-consumer and e-commerce channel.
Indeed, Dexcom is pursuing international growth and has extended its G6 CGM offering to additional markets, including the rollout in Belgium and Turkey in 4Q 2020.
Commenting on the 2021 outlook, Lichtman noted that the company has maintained a conservative stance when it comes to its guidance in the past two years. The analyst assumes that the impact of competition from Abbott's Libre franchise is factored into the forecast. He believes that growth drivers for 2021 include “big new opportunities in T2 [Type 2 diabetes] and international expansion along with the G7 launch.”
On the 3Qearnings call Dexcom stated that it expects to launch G7 in several key markets in the second half of 2021, and then expand its reach into all of its core markets in 2022.
Overall, Lichtman continues to be bullish on Dexcom and maintained a Buy rating with a $445 price target.
Currently, Dexcom scores a Strong Buy analyst consensus based on 9 Buys and 2 Holds. The average price target stands at $456.11, indicating upside potential of 28.8% from current levels. Shares have already risen 53.5% over the past 52 weeks.
Bottom line
Abbott’s diversified business model and exposure to major growth areas like diabetes are its key strengths. Dexcom is completely focused on meeting the growing need for its CGM systems in the domestic as well as international markets. While the Street is bullish on both companies, right now, the average price target indicates a higher upside potential for Dexcom stock.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (See ABT stock analysis on TipRanks) Last month, Raymond James analyst Jayson Bedford reiterated a Buy rating for Abbott following a call with the company’s management. Abbott Laboratories (ABT) Abbott has a diversified business that includes four segments: Medical Devices, Diagnostics, Nutrition and Established Pharmaceutical Products (which generates revenue from the sale of branded generic pharmaceutical products outside of the US). To back his bullish stance on Abbott, the analyst concluded, “The 'third wave' of CV-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the CV-19 testing tailwind, which lessens the near-term risk profile. | Abbott Laboratories (ABT) Abbott has a diversified business that includes four segments: Medical Devices, Diagnostics, Nutrition and Established Pharmaceutical Products (which generates revenue from the sale of branded generic pharmaceutical products outside of the US). (See ABT stock analysis on TipRanks) Last month, Raymond James analyst Jayson Bedford reiterated a Buy rating for Abbott following a call with the company’s management. To back his bullish stance on Abbott, the analyst concluded, “The 'third wave' of CV-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the CV-19 testing tailwind, which lessens the near-term risk profile. | (See ABT stock analysis on TipRanks) Last month, Raymond James analyst Jayson Bedford reiterated a Buy rating for Abbott following a call with the company’s management. Abbott Laboratories (ABT) Abbott has a diversified business that includes four segments: Medical Devices, Diagnostics, Nutrition and Established Pharmaceutical Products (which generates revenue from the sale of branded generic pharmaceutical products outside of the US). To back his bullish stance on Abbott, the analyst concluded, “The 'third wave' of CV-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the CV-19 testing tailwind, which lessens the near-term risk profile. | (See ABT stock analysis on TipRanks) Last month, Raymond James analyst Jayson Bedford reiterated a Buy rating for Abbott following a call with the company’s management. Abbott Laboratories (ABT) Abbott has a diversified business that includes four segments: Medical Devices, Diagnostics, Nutrition and Established Pharmaceutical Products (which generates revenue from the sale of branded generic pharmaceutical products outside of the US). To back his bullish stance on Abbott, the analyst concluded, “The 'third wave' of CV-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the CV-19 testing tailwind, which lessens the near-term risk profile. |
32274.0 | 2021-01-15 00:00:00 UTC | IVV, ABT, QCOM, WFC: Large Outflows Detected at ETF | ABT | https://www.nasdaq.com/articles/ivv-abt-qcom-wfc%3A-large-outflows-detected-at-etf-2021-01-15 | 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 $361.0 million dollar outflow -- that's a 0.1% decrease week over week (from 636,700,000 to 635,750,000). Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.8%, and Wells Fargo & Co (Symbol: WFC) is lower by about 7.2%. 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 $220.2756 per share, with $382.86 as the 52 week high point — that compares with a last trade of $375.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.8%, and Wells Fargo & Co (Symbol: WFC) is lower by about 7.2%. 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 $220.2756 per share, with $382.86 as the 52 week high point — that compares with a last trade of $375.76. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.8%, and Wells Fargo & Co (Symbol: WFC) is lower by about 7.2%. 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 $220.2756 per share, with $382.86 as the 52 week high point — that compares with a last trade of $375.76. 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 Abbott Laboratories (Symbol: ABT) is down about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.8%, and Wells Fargo & Co (Symbol: WFC) is lower by about 7.2%. 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 $361.0 million dollar outflow -- that's a 0.1% decrease week over week (from 636,700,000 to 635,750,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $382.86 as the 52 week high point — that compares with a last trade of $375.76. | Among the largest underlying components of IVV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.8%, and Wells Fargo & Co (Symbol: WFC) is lower by about 7.2%. 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 $361.0 million dollar outflow -- that's a 0.1% decrease week over week (from 636,700,000 to 635,750,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $220.2756 per share, with $382.86 as the 52 week high point — that compares with a last trade of $375.76. |
32275.0 | 2021-01-15 00:00:00 UTC | Baxter Is A Better Choice Than Boston Scientific Stock | ABT | https://www.nasdaq.com/articles/baxter-is-a-better-choice-than-boston-scientific-stock-2021-01-15 | nan | nan | We think that Baxter International (NYSE: BAX) currently is a better pick compared to Boston Scientific (NYSE: BSX). BAX stock trades at about 3.6x trailing Revenues, compared to around 5.2x for Boston Scientific. Does this gap in Baxter’s valuation make sense? While Boston Scientific’s business has been impacted in 2020 due to deferment of elective surgeries, Baxter’s business has seen an increased demand for peritoneal dialysis patient growth. Boston Scientific stock is being backed by investors given the expected rebound in procedure volume in 2021, implying strong sales for the company’s products. In fact, Boston Scientific’s sales are estimated to grow 15% in 2021 compared to just a 5% growth for Baxter. 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 Baxter vs. Boston Scientific: BAX stock looks very undervalued compared to BSX stock has more details on this. Parts of the analysis are summarized below.
1. Revenue Growth
Baxter’s Revenue grew 12% from $10.2 billion in 2016 to $11.4 billion in 2019, aided by advanced surgery products sales growth. Over the last 12 months, the revenue growth was 3.1%. Looking at Boston Scientific, total Revenue grew 27% from $8.4 billion in 2016 to $10.7 billion in 2019, partly led by higher demand for its Neuromodulation and Endoscopy products. However, the revenue for the last twelve months was down 2.7%, impacted by deferment of elective surgeries due to the pandemic in the first half of 2020.
2. Operating Income
Baxter’s operating income grew from $0.7 billion in 2016 to $1.7 billion in 2019, reflecting a 2.4x growth, led by both an increase in revenues and expansion of operating margins, which grew from 6.7% to 15.0% over the same period. Looking at Boston Scientific, the operating income grew a solid 3x from $0.5 billion in 2016 to $1.5 billion in 2019. Boston Scientific also saw expansion of margins from 5.6% to 14.4% over the same period. However, as we look at the last twelve months figures, the operating margin for both the companies has declined owing to increased costs during the pandemic. Operating margin of 6.7% for Baxter is much higher than a little under 1% for Boston Scientific.
The Net of It All
Although Boston Scientific’s Revenue growth compares favorably with Baxter over the recent years, Baxter’s growth has been better over the last twelve months. Also, Baxter’s operating margins have trended better compared to Boston Scientific. As such, we think the difference in P/S multiple of 3.6x for Baxter versus 5.2x for Boston Scientific will likely narrow going forward. Both the companies are seeing a pickup in demand of late, as the economies open up gradually after the pandemic, and now with vaccines being approved over multiple countries, it appears that perhaps soon the worst of the pandemic will be behind us. Now Boston Scientific’s revenue is expected to grow 15% from an estimated $10.0 billion in 2020 to $11.6 billion in 2021, while Baxter’s revenue is expected to grow 5% to $12.1 billion in 2021 compared to an estimated figure of $11.5 billion in 2020. While Boston Scientific’s revenues are expected to grow at a faster pace, the difference in P/S multiple with that of Baxter is likely to narrow, implying BAX stock could offer better growth in the near 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. | Boston Scientific stock is being backed by investors given the expected rebound in procedure volume in 2021, implying strong sales for the company’s products. However, as we look at the last twelve months figures, the operating margin for both the companies has declined owing to increased costs during the pandemic. While Boston Scientific’s revenues are expected to grow at a faster pace, the difference in P/S multiple with that of Baxter is likely to narrow, implying BAX stock could offer better growth in the near term. | While Boston Scientific’s business has been impacted in 2020 due to deferment of elective surgeries, Baxter’s business has seen an increased demand for peritoneal dialysis patient growth. Operating Income Baxter’s operating income grew from $0.7 billion in 2016 to $1.7 billion in 2019, reflecting a 2.4x growth, led by both an increase in revenues and expansion of operating margins, which grew from 6.7% to 15.0% over the same period. Now Boston Scientific’s revenue is expected to grow 15% from an estimated $10.0 billion in 2020 to $11.6 billion in 2021, while Baxter’s revenue is expected to grow 5% to $12.1 billion in 2021 compared to an estimated figure of $11.5 billion in 2020. | Operating Income Baxter’s operating income grew from $0.7 billion in 2016 to $1.7 billion in 2019, reflecting a 2.4x growth, led by both an increase in revenues and expansion of operating margins, which grew from 6.7% to 15.0% over the same period. The Net of It All Although Boston Scientific’s Revenue growth compares favorably with Baxter over the recent years, Baxter’s growth has been better over the last twelve months. Now Boston Scientific’s revenue is expected to grow 15% from an estimated $10.0 billion in 2020 to $11.6 billion in 2021, while Baxter’s revenue is expected to grow 5% to $12.1 billion in 2021 compared to an estimated figure of $11.5 billion in 2020. | Revenue Growth Baxter’s Revenue grew 12% from $10.2 billion in 2016 to $11.4 billion in 2019, aided by advanced surgery products sales growth. The Net of It All Although Boston Scientific’s Revenue growth compares favorably with Baxter over the recent years, Baxter’s growth has been better over the last twelve months. Also, Baxter’s operating margins have trended better compared to Boston Scientific. |
32276.0 | 2021-01-14 00:00:00 UTC | Qiagen warns against using standard tests to track coronavirus variants | ABT | https://www.nasdaq.com/articles/qiagen-warns-against-using-standard-tests-to-track-coronavirus-variants-2021-01-14 | nan | nan | By Ludwig Burger and Nikolaj Skydsgaard
FRANKFURT/COPENHAGEN, Jan 14 (Reuters) - Germany's Qiagen QIA.DE, a leading genetic testing supplier, on Thursday warned against re-engineering standard tests to monitor for new variants of the coronavirus, saying the more onerous decoding of the entire viral genome was the best method.
Scientists believe more contagious variants have fuelled a surge in global coronavirus cases that have exceeded 90 million, and nations are racing to procure vaccines and tighten lockdown measures.
Standard COVID-19 diagnostic kits, called polymerase chain reaction (PCR) tests, scan for a few characteristic genes in the viral genome, while whole genome sequencing, the established procedure to identify new variants, means reading out and analysing the entire genetic code.
Public health systems are eager to track the spread of the new virus types, such as the one that is rampant in Britain, and receive alarms on new ones, exemplified by Germany's bid this week to ramp up genome sequencing.
In principle, it is possible to select a few signature genes of the British variant known as B117 and use them as tell-tale markers of a new PCR test, Qiagen's Chief Medical Officer Davide Manissero told Reuters.
But such a test would miss slightly different but equally contagious versions of B117 that might be circulating, he said, adding that variants are not defined by a clear genetic profile but by how quickly they spread or the symptoms they cause.
"I really think PCR is out of the picture to monitor for variants or even identifying the current UK or South African variants," said Manissero.
Qiagen, which competes in the diagnostics market with Roche ROG.S, Abbott ABT.N, Danaher DHR.N and Thermo Fisher TMO.N, supplies PCR tests and makes genetic sequencing tools that run on Illumina ILMN.O analytical machines.
Efforts to harness the cheaper and faster PCR technology to keep up with the spread of new variants are underway.
The Danish State Serum Institute told Reuters on Wednesday it had developed a new PCR test to scan specifically for mutated strains.
Danish authorities are prioritising their contact tracing efforts on the mutated variants, in particular to curb B117, which is expected to be the dominant variant in the Nordic country by mid-February.
Contact tracing teams, which help infected people to isolate, no longer have to wait for up to two weeks for the sequencing but can react within 12-24 hours.
But Qiagen's Manissero said such a strategy did not take into account future genetic shifts of the virus that are hard to predict and would not work as a surveillance tool for new virus versions to emerge.
"You’d be aiming at a single variant when maybe there are going to be hundreds of related variants in a year’s time. You wouldn’t know which variant to look for," said Manissero.
"Today it’s the UK (version). In one month it could be a new German variant." Vaccine makers, such as BioNTech BTXO.N, have said so far that their products are likely to be effective for the variants so far identified.
Qiagen said its standard COVID-19 PCR tests have so far shown a positive result for the new variants and the company stress-tests its diagnostic products every two weeks for any changes in the genetic makeup of the SARS-CoV-2 virus that causes COVID-19.
The U.S. drugs regulator said last week new genetic variants of the virus could lead to false negative results from some PCR COVID-19 tests by Thermo Fisher Scientific Inc's TMO.N and Applied DNA Sciences APDN.O.
(Editing by Barbara Lewis)
((ludwig.burger@thomsonreuters.com; +49 30 220133634; Reuters Messaging: ludwig.burger.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Qiagen, which competes in the diagnostics market with Roche ROG.S, Abbott ABT.N, Danaher DHR.N and Thermo Fisher TMO.N, supplies PCR tests and makes genetic sequencing tools that run on Illumina ILMN.O analytical machines. Public health systems are eager to track the spread of the new virus types, such as the one that is rampant in Britain, and receive alarms on new ones, exemplified by Germany's bid this week to ramp up genome sequencing. The U.S. drugs regulator said last week new genetic variants of the virus could lead to false negative results from some PCR COVID-19 tests by Thermo Fisher Scientific Inc's TMO.N and Applied DNA Sciences APDN.O. | Qiagen, which competes in the diagnostics market with Roche ROG.S, Abbott ABT.N, Danaher DHR.N and Thermo Fisher TMO.N, supplies PCR tests and makes genetic sequencing tools that run on Illumina ILMN.O analytical machines. By Ludwig Burger and Nikolaj Skydsgaard FRANKFURT/COPENHAGEN, Jan 14 (Reuters) - Germany's Qiagen QIA.DE, a leading genetic testing supplier, on Thursday warned against re-engineering standard tests to monitor for new variants of the coronavirus, saying the more onerous decoding of the entire viral genome was the best method. The U.S. drugs regulator said last week new genetic variants of the virus could lead to false negative results from some PCR COVID-19 tests by Thermo Fisher Scientific Inc's TMO.N and Applied DNA Sciences APDN.O. | Qiagen, which competes in the diagnostics market with Roche ROG.S, Abbott ABT.N, Danaher DHR.N and Thermo Fisher TMO.N, supplies PCR tests and makes genetic sequencing tools that run on Illumina ILMN.O analytical machines. By Ludwig Burger and Nikolaj Skydsgaard FRANKFURT/COPENHAGEN, Jan 14 (Reuters) - Germany's Qiagen QIA.DE, a leading genetic testing supplier, on Thursday warned against re-engineering standard tests to monitor for new variants of the coronavirus, saying the more onerous decoding of the entire viral genome was the best method. Standard COVID-19 diagnostic kits, called polymerase chain reaction (PCR) tests, scan for a few characteristic genes in the viral genome, while whole genome sequencing, the established procedure to identify new variants, means reading out and analysing the entire genetic code. | Qiagen, which competes in the diagnostics market with Roche ROG.S, Abbott ABT.N, Danaher DHR.N and Thermo Fisher TMO.N, supplies PCR tests and makes genetic sequencing tools that run on Illumina ILMN.O analytical machines. "I really think PCR is out of the picture to monitor for variants or even identifying the current UK or South African variants," said Manissero. The Danish State Serum Institute told Reuters on Wednesday it had developed a new PCR test to scan specifically for mutated strains. |
32277.0 | 2021-01-14 00:00:00 UTC | My Best Growth Stock for 2021 | ABT | https://www.nasdaq.com/articles/my-best-growth-stock-for-2021-2021-01-14 | nan | nan | One of the hottest places to invest in right now is healthcare. While there is hope that the COVID-19 pandemic could come to an end in 2021 with the Food and Drug Administration (FDA) approving multiple vaccines and more potentially on the way, the need for testing isn't going to go away. No one wants to see COVID-19 cases start spiking again, and for the economy to reopen back to how it was before the pandemic, there will continue to be a big need for testing.
That's why diagnostics and testing company Quidel (NASDAQ: QDEL) looks to be the best growth stock to buy this year. With a market cap of less than $9 billion, this is still a fairly small company when you're talking healthcare. Even vaccine maker Moderna is already near a $50 billion valuation, and it may be running out of room to rise in value. Quidel's relatively small size combined with its growth potential makes it a hot buy right now because it could easily double in value.
Image source: Getty Images.
Quidel's sales skyrocketed 276% in Q3
On Oct. 29, 2020, Quidel reported its latest earnings results for the period ending Sept. 30, 2020. What stood out was its top line, which at $476.1 million nearly quadrupled its prior-year tally of just $126.5 million. Of its total sales, COVID-19 related products generated $375.7 million, which is just under 80% of its total revenue. That's nearly as much as Quidel generated in sales across all segments during the first nine months of 2019 -- $382.7 million. In 2020, the company's rapid immunoassay segment alone (which includes its rapid COVID-19 tests) reported $513.6 million in sales over the same period, making up the bulk of its top line, which totaled $852.5 million.
The company's products were some of the first to be approved by the FDA for COVID-19 testing. The agency granted emergency use authorization (EUA) for Quidel's Lyra SARS-CoV-2 assay rapid test on March 17, 2020 -- just days after the World Health Organization officially declared COVID-19 a pandemic. Quidel has continued to come out with more tests since then, including the Sofia 2 SARS Antigen FIA, which can produce results in just 15 minutes. The FDA granted that test EUA on May 8, 2020.
And there's even more growth ahead
On Jan. 7, Quidel released preliminary numbers for the fourth quarter that continue to show incredible growth. The company is projecting that sales for the period will come in between $808 million and $810 million -- a 70% improvement from Q3. And what's amazing is that it still might not be the peak for the company. Currently, Quidel says that it is making 13 million of its Sofia and QuickVue tests per month but by the end of 2021 that number will climb to more than 70 million.
Quidel isn't the only testing company out there, as Abbott Laboratories and Thermo Fisher Scientific are some of the bigger names that also sell products that test for COVID-19. But with nearly 100 million cases of the coronavirus around the world and that number continuing to climb, there's plenty of demand out there for testing. With Quidel producing tens of millions of tests and that number scaling up in the months ahead, the company is in a terrific position to help not just the healthcare industry but economies around the world to get back to normal. Many people who have COVID-19 are asymptomatic, which means that frequent testing is necessary to ensure that businesses are able to safely open back up and resume their normal operations.
Quidel's stock is also incredibly cheap
Given its sales numbers and the growth that it's generating, Quidel's stock gives you a lot of bang for your buck. Looking ahead, shares of Quidel are trading at just 2.8 times the company's future sales (based on analysts' estimates). That's cheap when you compare it against the other healthcare stocks that were mentioned earlier, which are trading at much higher price-to-sales multiples:
QDEL PS Ratio (Forward) data by YCharts
Is Quidel a good long-term buy?
This year will no doubt be another great one for Quidel. In 2020, its shares rose 139% while the S&P 500 was up 16%. It wouldn't be surprising for the stock to do even better this year given how rapidly its sales have been growing. The bigger question is whether it'll continue to be a buy after 2021, and that's clear as mud right about now.
Quidel isn't a stock you can just buy and forget about because a lot will depend on the future of COVID-19 and how long people will need to be tested for it, as well as how the company's business will adapt once the pandemic is really over and testing isn't needed (assuming that point is ever reached). There are simply too many unanswered questions when it comes to hanging on to it for the long haul, but at the very least, it looks to be a scorching-hot buy in 2021.
10 stocks we like better than Quidel
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Quidel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The agency granted emergency use authorization (EUA) for Quidel's Lyra SARS-CoV-2 assay rapid test on March 17, 2020 -- just days after the World Health Organization officially declared COVID-19 a pandemic. With Quidel producing tens of millions of tests and that number scaling up in the months ahead, the company is in a terrific position to help not just the healthcare industry but economies around the world to get back to normal. That's cheap when you compare it against the other healthcare stocks that were mentioned earlier, which are trading at much higher price-to-sales multiples: QDEL PS Ratio (Forward) data by YCharts Is Quidel a good long-term buy? | That's why diagnostics and testing company Quidel (NASDAQ: QDEL) looks to be the best growth stock to buy this year. In 2020, the company's rapid immunoassay segment alone (which includes its rapid COVID-19 tests) reported $513.6 million in sales over the same period, making up the bulk of its top line, which totaled $852.5 million. Quidel's stock is also incredibly cheap Given its sales numbers and the growth that it's generating, Quidel's stock gives you a lot of bang for your buck. | That's why diagnostics and testing company Quidel (NASDAQ: QDEL) looks to be the best growth stock to buy this year. Quidel's stock is also incredibly cheap Given its sales numbers and the growth that it's generating, Quidel's stock gives you a lot of bang for your buck. Quidel isn't a stock you can just buy and forget about because a lot will depend on the future of COVID-19 and how long people will need to be tested for it, as well as how the company's business will adapt once the pandemic is really over and testing isn't needed (assuming that point is ever reached). | That's why diagnostics and testing company Quidel (NASDAQ: QDEL) looks to be the best growth stock to buy this year. Quidel isn't a stock you can just buy and forget about because a lot will depend on the future of COVID-19 and how long people will need to be tested for it, as well as how the company's business will adapt once the pandemic is really over and testing isn't needed (assuming that point is ever reached). That's right -- they think these 10 stocks are even better buys. |
32278.0 | 2021-01-14 00:00:00 UTC | 2 Healthcare Stocks to Buy in 2021 and Hold for the Next Decade | ABT | https://www.nasdaq.com/articles/2-healthcare-stocks-to-buy-in-2021-and-hold-for-the-next-decade-2021-01-14 | nan | nan | When choosing a health stock to hold for a decade, I'm looking for its ability to grow revenue for that period of time or longer. It's also important to look at the profitability situation. If the company is clinical-stage, we can accept losses in favor of investment in growth. If the company has at least a few commercialized products, we'll want to see profit now, or a path to it down the road.
Here, I'm choosing two established players that have a track record of revenue and profit. And they both have newish products that will drive sales for many years to come. Let's take a closer look.
Image source: Getty Images.
Vertex
Vertex Pharmaceuticals (NASDAQ: VRTX) is the maker of four commercialized cystic fibrosis (CF) treatments. The latest is blockbuster Trikafta, approved by the U.S. Food and Drug Administration in October 2019. Vertex is the top player in the field. But here's even better news: The company expects to maintain its market leadership until at least the late 2030s.
CF drugs may bring the company as much as $6.2 billion in full-year 2020 product revenue, according to Vertex's guidance. And that figure could reach more than $10 billion in 2028, Morningstar research shows.
Meanwhile, Vertex is preparing for the future -- and that means expanding its therapeutic areas. So far, it's brought programs into human trials in pain, blood disorders, and lung and liver disease alpha-1 antitrypsin deficiency. Of these, the most advanced are in phase 2 studies. According to Stat News, the company said at the J.P. Morgan Healthcare Conference this week that it's also ready to acquire mid-stage and late-stage candidates. Considering Vertex's wealth of cash and climbing revenue, it's in a solid position to do so.
The company has more than $5.3 billion in cash and equivalents -- its highest level ever. And annual revenue reached a record of more than $4 billion in 2019:
VRTX Cash and Equivalents (Quarterly) data by YCharts.
CF treatments alone promise Vertex billions of dollars in revenue for nearly two decades to come. The company said at the J.P. Morgan conference that its drugs now could treat as many as 83,000 people worldwide; that's up from its earlier estimate of 75,000. So Vertex has time on its side as it looks for tomorrow's winning treatment area.
Abbott
Everyone has been talking about Abbott Laboratories (NYSE: ABT) for its role in coronavirus testing. The FDA has granted Emergency Use Authorization to eight of Abbott's coronavirus tests. And the company so far has generated more than $1 billion from them. It's too early to say whether these tests will become a lasting part of Abbott's revenue picture.
But Abbott has plenty of other products to drive revenue, even if coronavirus testing sales eventually wane. The company's businesses include diagnostics, medical devices, nutrition, and pharmaceuticals.
Last year, regulators in the U.S. and Europe cleared next-generation versions of one of Abbott's star products: the FreeStyle Libre continuous glucose monitoring system for diabetes. In the third quarter, FreeStyle Libre sales climbed more than 37%. And sales in the overall diabetes care business rose more than 26% in the quarter.
European regulators recently cleared the fourth-generation MitraClip. It's the world's leading minimally invasive mitral valve repair device. The U.S. cleared this latest version in 2019.
Most recently, Abbott announced FDA clearance of its traumatic brain injury blood test. It's the first rapid, handheld blood test to detect concussions. In the U.S., about five million people annually go to emergency rooms with concussions, according to a paper on a National Institutes of Health website.
Abbott's revenue and profit have gained over the past two years. And the future looks bright too: Earnings estimates for the current fiscal year are on the rise.
ABT Revenue (Annual) data by YCharts.
I wouldn't buy Vertex and Abbott for the short term; these healthcare companies' products are set to boost revenue for years to come. The best strategy to take with Vertex and Abbott is to buy now and hold the shares for at least a decade.
10 stocks we like better than Vertex Pharmaceuticals
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 Vertex Pharmaceuticals 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 November 20, 2020
Adria Cimino owns shares of Vertex Pharmaceuticals. The Motley Fool recommends Vertex Pharmaceuticals. 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 Everyone has been talking about Abbott Laboratories (NYSE: ABT) for its role in coronavirus testing. ABT Revenue (Annual) data by YCharts. So far, it's brought programs into human trials in pain, blood disorders, and lung and liver disease alpha-1 antitrypsin deficiency. | Abbott Everyone has been talking about Abbott Laboratories (NYSE: ABT) for its role in coronavirus testing. ABT Revenue (Annual) data by YCharts. Vertex Vertex Pharmaceuticals (NASDAQ: VRTX) is the maker of four commercialized cystic fibrosis (CF) treatments. | Abbott Everyone has been talking about Abbott Laboratories (NYSE: ABT) for its role in coronavirus testing. ABT Revenue (Annual) data by YCharts. CF drugs may bring the company as much as $6.2 billion in full-year 2020 product revenue, according to Vertex's guidance. | Abbott Everyone has been talking about Abbott Laboratories (NYSE: ABT) for its role in coronavirus testing. ABT Revenue (Annual) data by YCharts. And annual revenue reached a record of more than $4 billion in 2019: VRTX Cash and Equivalents (Quarterly) data by YCharts. |
32279.0 | 2021-01-14 00:00:00 UTC | My Top 3 Large-Cap Stocks to Own in 2021 | ABT | https://www.nasdaq.com/articles/my-top-3-large-cap-stocks-to-own-in-2021-2021-01-14 | nan | nan | I like to think of large-cap stocks as the solid backbone of a portfolio. Large-cap stocks have a market cap greater than $10 billion. They've proven themselves with revenue growth, profit, and products -- and often, you can count on them to pay dividends. Payouts to investors are particularly important during years when stock performance falters. Even if investors don't benefit from share gains, they'll at least receive the dividend payment -- which they could choose to reinvest as a bet on a future stock boost. That's why it's essential to plan ahead and include these companies in your portfolio, even if the market is in the middle of a climb.
Right now, the coronavirus pandemic is escalating. Cases have climbed to record levels in and outside of the U.S. over the past month. So, along with the factors above, we'll want to look at companies that will thrive even if the public health crisis persists through 2021. With all this in mind, I've picked out three large caps that fit the bill.
Image source: Getty Images.
1. Abbott
Abbott Laboratories (NYSE: ABT) is a Dividend Aristocrat. That means it's increased its dividend annually for at least the past 25 years. Most recently, Abbott raised its dividend for the 49th straight year, lifting the quarterly payout by 25%. The move brings its annual dividend to $1.80 per share for the 2021 financial year. That makes for a yield of 1.65%.
Besides its payouts, Abbott also has good revenue and earnings track records. Both have climbed annually for the past six years and two years, respectively. And over the past decade, the company's annual gross profit margin has generally widened, reaching 58%.
ABT Gross Profit Margin (Annual) data by YCharts
Two key elements are likely to push revenue higher in 2021: the company's coronavirus tests and the next generation of its FreeStyle Libre glucose monitoring system for diabetes. The U.S. Food and Drug Administration has granted Emergency Use Authorization to eight of Abbott's COVID-19 detection tests. And last year, regulatory authorities in the U.S. and Europe cleared the latest FreeStyle Libre systems for use.
Coronavirus testing and FreeStyle Libre sales are already on the rise. In the third quarter ended Sept. 30, diabetes care revenue climbed more than 26% year over year. The global continuous glucose monitoring market is expected to reach $12.1 billion by 2026 while expanding at a compound annual growth rate of more than 15%, according to Polaris Market Research. Abbott also reported $881 million in coronavirus testing revenue, up from $615 million in the previous quarter. We can expect more gains from these much-needed products this year.
2. Target
Target (NYSE: TGT) is also a Dividend Aristocrat. The retailer lifted its quarterly dividend by 3% in June, resulting in an annual dividend payment of $2.72 per share. The yield is 1.39%. Like Abbott, Target has increased its dividend for 49 consecutive years.
Target's revenue and profit have been rising for the past three years -- and the situation is looking bright for the upcoming full-year earnings report. Many retailers suffered during the coronavirus pandemic, but Target's business flourished as shoppers flocked to its website for essentials and opted for contactless ways to bring their orders home. In the third quarter ended Oct. 31, Target's digital sales soared 155% year over year. Pick-up, drive-up, and Shipt sales jumped 217%.
People will continue social distancing as long as the pandemic persists -- and perhaps beyond it. So I think that we can expect more gains in Target's digital business and order pick-up services. But what about its stores? Even at times when traffic may decline, stores remain central to Target's business. Target's stores fulfilled more than 95% of its third-quarter sales. This is a definite positive, since fulfilling through a store rather than a warehouse means lower costs for the company. In fact, it's 90% cheaper per unit, according to Target.
3. AstraZeneca
AstraZeneca (NASDAQ: AZN) hasn't increased its dividend regularly. But it has steadily maintained its payment over the past decade, making it a company you can rely on for steady income. It pays an annual dividend of $1.40 a share. The yield is the best on this list at 2.78%.
Everyone has been watching AstraZeneca over the past several months as it brings its investigational coronavirus vaccine through clinical trials. So far, the U.K., India, and five other countries have granted the vaccine candidate emergency authorization. We can't expect revenue immediately; AstraZeneca has promised to sell the vaccine during the pandemic without taking a profit. But the product could be an important generator of revenue post-pandemic.
Two points are in AstraZeneca's favor. The company has greater capacity than its rivals, and can produce about three billion doses of vaccine annually. AstraZeneca's lower pricing scheme has also earned it more orders. If pricing remains reasonable once the company begins taking a profit, it may be able to keep at least some of its early customers.
Though AstraZeneca has a long history of revenue and profit growth, both have declined in recent years. The good news is things are picking up. Product sales rose 9% in the first nine months of the year, led by the company's newer medicines. The new medicines posted sales growth of 34% in that time period. And finally, the company's plan to acquire Alexion Pharmaceuticals (NASDAQ: ALXN) will boost AstraZeneca's position in immunology drug development -- and offer another growth driver. AstraZeneca predicts double-digit gains in earnings per share (EPS) within the companies' first three years together.
I'm optimistic about these three large-cap stocks for 2021. But more importantly, I'm optimistic about them well beyond. They've demonstrated their strength in times of trouble and, as a bonus, offer steady income streams to their shareholders.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT Gross Profit Margin (Annual) data by YCharts Two key elements are likely to push revenue higher in 2021: the company's coronavirus tests and the next generation of its FreeStyle Libre glucose monitoring system for diabetes. Abbott Abbott Laboratories (NYSE: ABT) is a Dividend Aristocrat. Many retailers suffered during the coronavirus pandemic, but Target's business flourished as shoppers flocked to its website for essentials and opted for contactless ways to bring their orders home. | Abbott Abbott Laboratories (NYSE: ABT) is a Dividend Aristocrat. ABT Gross Profit Margin (Annual) data by YCharts Two key elements are likely to push revenue higher in 2021: the company's coronavirus tests and the next generation of its FreeStyle Libre glucose monitoring system for diabetes. The global continuous glucose monitoring market is expected to reach $12.1 billion by 2026 while expanding at a compound annual growth rate of more than 15%, according to Polaris Market Research. | ABT Gross Profit Margin (Annual) data by YCharts Two key elements are likely to push revenue higher in 2021: the company's coronavirus tests and the next generation of its FreeStyle Libre glucose monitoring system for diabetes. Abbott Abbott Laboratories (NYSE: ABT) is a Dividend Aristocrat. Both have climbed annually for the past six years and two years, respectively. | Abbott Abbott Laboratories (NYSE: ABT) is a Dividend Aristocrat. ABT Gross Profit Margin (Annual) data by YCharts Two key elements are likely to push revenue higher in 2021: the company's coronavirus tests and the next generation of its FreeStyle Libre glucose monitoring system for diabetes. Large-cap stocks have a market cap greater than $10 billion. |
32280.0 | 2021-01-13 00:00:00 UTC | Noteworthy Wednesday Option Activity: ABT, AAXN, HLT | ABT | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-abt-aaxn-hlt-2021-01-13 | 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 36,405 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 82.5% of ABT's average daily trading volume over the past month, of 4.4 million shares. Especially high volume was seen for the $110 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange:
Axon Enterprise Inc (Symbol: AAXN) options are showing a volume of 5,065 contracts thus far today. That number of contracts represents approximately 506,500 underlying shares, working out to a sizeable 82% of AAXN's average daily trading volume over the past month, of 617,450 shares. Especially high volume was seen for the $145 strike call option expiring January 15, 2021, with 822 contracts trading so far today, representing approximately 82,200 underlying shares of AAXN. Below is a chart showing AAXN's trailing twelve month trading history, with the $145 strike highlighted in orange:
And Hilton Worldwide Holdings Inc (Symbol: HLT) options are showing a volume of 18,107 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 79.6% of HLT's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $97.50 strike call option expiring January 15, 2021, with 4,002 contracts trading so far today, representing approximately 400,200 underlying shares of HLT. Below is a chart showing HLT's trailing twelve month trading history, with the $97.50 strike highlighted in orange:
For the various different available expirations for ABT options, AAXN options, or HLT 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 $110 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 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 36,405 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 82.5% of ABT's average daily trading volume over the past month, of 4.4 million shares. | Below is a chart showing ABT's trailing twelve month trading history, with the $110 strike highlighted in orange: Axon Enterprise Inc (Symbol: AAXN) options are showing a volume of 5,065 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 36,405 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 82.5% of ABT's average daily trading volume over the past month, of 4.4 million 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 36,405 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $110 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of ABT. That number works out to 82.5% of ABT's average daily trading volume over the past month, of 4.4 million shares. | Below is a chart showing HLT's trailing twelve month trading history, with the $97.50 strike highlighted in orange: For the various different available expirations for ABT options, AAXN options, or HLT options, visit StockOptionsChannel.com. 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 36,405 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 82.5% of ABT's average daily trading volume over the past month, of 4.4 million shares. |
32281.0 | 2021-01-13 00:00:00 UTC | Abbott Laboratories (ABT) Ex-Dividend Date Scheduled for January 14, 2021 | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-ex-dividend-date-scheduled-for-january-14-2021-2021-01-13 | nan | nan | Abbott Laboratories (ABT) will begin trading ex-dividend on January 14, 2021. A cash dividend payment of $0.45 per share is scheduled to be paid on February 16, 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.
The previous trading day's last sale of ABT was $108.84, representing a -5.47% decrease from the 52 week high of $115.14 and a 76.66% increase over the 52 week low of $61.61.
ABT is a part of the Health Care sector, which includes companies such as Johnson & Johnson (JNJ) and Novartis AG (NVS). ABT's current earnings per share, an indicator of a company's profitability, is $1.89. Zacks Investment Research reports ABT's forecasted earnings growth in 2020 as 10.05%, compared to an industry average of 8.8%.
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)
DecideAct (ACT)
Invesco Dynamic Pharmaceuticals ETF (PJP)
iShares U.S. Medical Devices ETF (IHI)
VictoryShares US 500 Volatility Wtd ETF (CFA).
The top-performing ETF of this group is CFA with an increase of 17.54% over the last 100 days. IEHS has the highest percent weighting of ABT at 7.82%.
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 2020 as 10.05%, compared to an industry average of 8.8%. For more information on the declaration, record and payment dates, visit the ABT Dividend History page. | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. Abbott Laboratories (ABT) will begin trading ex-dividend on January 14, 2021. The previous trading day's last sale of ABT was $108.84, representing a -5.47% decrease from the 52 week high of $115.14 and a 76.66% increase over the 52 week low of $61.61. | 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) DecideAct (ACT) Invesco Dynamic Pharmaceuticals ETF (PJP) iShares U.S. Medical Devices ETF (IHI) VictoryShares US 500 Volatility Wtd ETF (CFA). | Shareholders who purchased ABT prior to the ex-dividend date are eligible for the cash dividend payment. Abbott Laboratories (ABT) will begin trading ex-dividend on January 14, 2021. The previous trading day's last sale of ABT was $108.84, representing a -5.47% decrease from the 52 week high of $115.14 and a 76.66% increase over the 52 week low of $61.61. |
32282.0 | 2021-01-13 00:00:00 UTC | 3 Dividend Aristocrats to Buy Right Now | ABT | https://www.nasdaq.com/articles/3-dividend-aristocrats-to-buy-right-now-2021-01-13 | nan | nan | There's a lot to like about consistency. That's true for people. And it's true for stocks -- especially dividend stocks. Investors want to be able to count on dividend payments that are like clockwork.
It's even better when that consistency isn't just related to paying dividends but also includes dividend increases. Dividend Aristocrats include only S&P 500 members that have boosted their dividends for at least 25 consecutive years. Some of these great dividend stocks are better than others. Here are three Dividend Aristocrats that you can buy right now.
Image source: Getty Images.
1. Abbott Labs
Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. This marked the 49th year in a row of dividend hikes for the big healthcare company. Abbott's dividend now yields over 1.6%.
Unlike many Dividend Aristocrats, Abbott's dividend isn't the main reason to like the stock. Abbott boasts an impressive growth story. Its shares soared 26% last year, fueled by strong revenue and earnings growth. The consensus among Wall Street analysts is for the company to deliver average annual earnings growth of over 13% during the next five years.
A large part of Abbott's recent success stemmed from its COVID-19 tests. The company quickly emerged as the leader in the new market in early 2020. Abbott now markets eight COVID-19 tests under the U.S. emergency use authorization (EUA) program. Its COVID testing sales totaled $881 million in the company's latest reported quarter.
Abbott has other growth drivers, though. The most important of these is the company's FreeStyle Libre continuous glucose monitoring (CGM) device. Look for continued strong sales momentum for the CGM, especially with the third-generation version of the device securing a European CE Mark in September.
2. AbbVie
If you like Abbott Labs' dividend, you'll probably love the company's spin-off -- AbbVie (NYSE: ABBV). Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. But AbbVie's dividend yield of nearly 4.8% is much more appealing.
AbbVie's growth prospects aren't on par with Abbott's. Still, though, analysts expect the big drugmaker to deliver average annual earnings growth of close to 11% over the next five years.
That level would be even higher, except AbbVie faces intense biosimilar competition in the U.S. for its top-selling product Humira beginning in 2023. But AbbVie already has two autoimmune disease drugs ready to take the baton from Humira. The company projects that Rinvoq and Skyrizi will generate combined sales of $15 billion by 2024.
AbbVie's lineup also includes other products with solid sales growth. Blood cancer drugs Imbruvica and Venclexta top the list. In addition, the company's acquisition of Allergan last year allowed it to pick up rising stars such as antipsychotic drug Vraylar and migraine drug Ubrelvy.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) isn't just a Dividend Aristocrat. The healthcare giant's 58 consecutive years of dividend increases qualify it as a Dividend King. J&J's dividend currently yields more than 2.5%.
The company's stellar dividend record has made J&J a longtime favorite among income-seeking investors. These investors also understandably appreciate the stability that J&J offers. It's arguably the most diversified healthcare stock on the market, with multibillion-dollar businesses in the consumer health, medical devices, and pharmaceutical industries.
But what about growth? Johnson & Johnson might not be the most attractive choice on that front. Analysts look for the company to generate average annual earnings growth of only a little over 4% over the next five years. J&J's consumer and medical device segments haven't produced impressive growth recently, while sales for blockbuster autoimmune disease drug Remicade continue to fall due to biosimilar competition.
Don't dismiss J&J's long-term growth prospects, though. The company's single-dose COVID-19 vaccine could be a huge winner. Johnson & Johnson also has the financial strength to make strategic acquisitions to fuel growth. I doubt that J&J's growth lull will linger for too much longer.
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Keith Speights owns shares of AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. Look for continued strong sales momentum for the CGM, especially with the third-generation version of the device securing a European CE Mark in September. It's arguably the most diversified healthcare stock on the market, with multibillion-dollar businesses in the consumer health, medical devices, and pharmaceutical industries. | Abbott Labs Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) isn't just a Dividend Aristocrat. J&J's consumer and medical device segments haven't produced impressive growth recently, while sales for blockbuster autoimmune disease drug Remicade continue to fall due to biosimilar competition. | Abbott Labs Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. Unlike many Dividend Aristocrats, Abbott's dividend isn't the main reason to like the stock. Because it was part of Abbott until 2013 and has continued to increase its dividend every year, AbbVie's track record of dividend increases mirrors its parent company. | Abbott Labs Abbott Labs (NYSE: ABT) increased its dividend in December 2020 by 25%. And it's true for stocks -- especially dividend stocks. Abbott's dividend now yields over 1.6%. |
32283.0 | 2021-01-12 00:00:00 UTC | Ex-Dividend Reminder: Abbott Laboratories, Mid-America Apartment Communities and American Financial Group | ABT | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbott-laboratories-mid-america-apartment-communities-and-american | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Abbott Laboratories (Symbol: ABT), Mid-America Apartment Communities Inc (Symbol: MAA), and American Financial Group Inc (Symbol: AFG) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories will pay its quarterly dividend of $0.45 on 2/16/21, Mid-America Apartment Communities Inc will pay its quarterly dividend of $1.025 on 1/29/21, and American Financial Group Inc will pay its quarterly dividend of $0.50 on 1/25/21. As a percentage of ABT's recent stock price of $110.62, this dividend works out to approximately 0.41%, so look for shares of Abbott Laboratories to trade 0.41% lower — all else being equal — when ABT shares open for trading on 1/14/21. Similarly, investors should look for MAA to open 0.83% lower in price and for AFG to open 0.55% lower, all else being equal.
Below are dividend history charts for ABT, MAA, and AFG, showing historical dividends prior to the most recent ones declared.
Abbott Laboratories (Symbol: ABT):
Mid-America Apartment Communities Inc (Symbol: MAA):
American Financial Group Inc (Symbol: AFG):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.63% for Abbott Laboratories, 3.33% for Mid-America Apartment Communities Inc, and 2.21% for American Financial Group Inc.
In Tuesday trading, Abbott Laboratories shares are currently off about 0.2%, Mid-America Apartment Communities Inc shares are off about 1%, and American Financial Group Inc shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ABT's recent stock price of $110.62, this dividend works out to approximately 0.41%, so look for shares of Abbott Laboratories to trade 0.41% lower — all else being equal — when ABT shares open for trading on 1/14/21. Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Abbott Laboratories (Symbol: ABT), Mid-America Apartment Communities Inc (Symbol: MAA), and American Financial Group Inc (Symbol: AFG) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for ABT, MAA, and AFG, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Abbott Laboratories (Symbol: ABT), Mid-America Apartment Communities Inc (Symbol: MAA), and American Financial Group Inc (Symbol: AFG) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories (Symbol: ABT): Mid-America Apartment Communities Inc (Symbol: MAA): American Financial Group Inc (Symbol: AFG): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ABT's recent stock price of $110.62, this dividend works out to approximately 0.41%, so look for shares of Abbott Laboratories to trade 0.41% lower — all else being equal — when ABT shares open for trading on 1/14/21. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Abbott Laboratories (Symbol: ABT), Mid-America Apartment Communities Inc (Symbol: MAA), and American Financial Group Inc (Symbol: AFG) will all trade ex-dividend for their respective upcoming dividends. Abbott Laboratories (Symbol: ABT): Mid-America Apartment Communities Inc (Symbol: MAA): American Financial Group Inc (Symbol: AFG): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of ABT's recent stock price of $110.62, this dividend works out to approximately 0.41%, so look for shares of Abbott Laboratories to trade 0.41% lower — all else being equal — when ABT shares open for trading on 1/14/21. | Looking at the universe of stocks we cover at Dividend Channel, on 1/14/21, Abbott Laboratories (Symbol: ABT), Mid-America Apartment Communities Inc (Symbol: MAA), and American Financial Group Inc (Symbol: AFG) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ABT's recent stock price of $110.62, this dividend works out to approximately 0.41%, so look for shares of Abbott Laboratories to trade 0.41% lower — all else being equal — when ABT shares open for trading on 1/14/21. Below are dividend history charts for ABT, MAA, and AFG, showing historical dividends prior to the most recent ones declared. |
32284.0 | 2021-01-12 00:00:00 UTC | How to Play Stock Spinoffs for 176%+ Payout Growth, 200%+ Upside | ABT | https://www.nasdaq.com/articles/how-to-play-stock-spinoffs-for-176-payout-growth-200-upside-2021-01-12 | nan | nan | Let's start 2021 with a proven strategy for grabbing two growing income streams in one buy. Plus, we'll nicely set ourselves up to bank double-digit price gains to boot.
The strategy? Simple: we're buying dividend-paying stocks poised to spin off one of their businesses into a brand-new dividend-paying stock. When that happens, we wind up with two or more quarterly dividends where there used to be just one.
Two other things you should know: our "new" dividend(s) will likely grow faster than our original payout! And we won't have to do anything to get this extra cash.
I'll give you a telltale sign to look for as we move to front-run the next "dividend split" in a moment. But first, let's look at how spinoffs are, hands-down, the closest thing you'll ever find to a win-win in investing.
How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts
Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us.
Prior to their breakup eight years ago, the dividend of the old parent company, Abbott, was already growing at a healthy clip, more than doubling in the preceding 10 years and reaching $0.51 a share right before the spinoff took effect:
Abbott's Dividend Soared Pre-Split ...
On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly.
Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott.
It got better, too, because the spinoff lit a fire under the payout, with both firms' dividends nearly tripling in eight years, growing 176%, on average, much faster than the old Abbott's payout grew in the preceding decade.
... And Both Firms' Payouts Accelerated After ...
And if Abbott investors held on to their AbbVie shares, their holdings skyrocketed as other income-seekers noticed these rapid payout hikes and bought in, driving up the prices of both companies in lockstep with their rising payouts:
... Driving Fast Price Gains, Too!
Spinoff + Growing Dividend = Double Win
I think you can see where I'm going here: buying stocks that are about to split and have fast-rising payouts is the key to unlocking some serious profits.
The best news is that, to tap the biggest gains, you don't have to be clairvoyant: even if you'd bought Abbott and/or AbbVie during the first few months after their separation, you'd have still bagged most of the gains both stocks went on to deliver.
That's because new spinoffs tend to stagnate for the first while as investors who were handed them get a feel for the new company--and ultimately decide whether they want to keep it around. There's also a lack of coverage of spinoffs from Wall Street, which would much rather fawn over a shiny new IPO than a "boring" spinoff.
But spinoffs have advantages IPOs lack: for one, many have already proven they're profitable businesses. And their parents will also want to help ensure they get off on the right foot, because they won't want to be known for a spinoff that fell flat.
IPOs, on the other hand, are rarely profitable, have no access to the management expertise of a parent company and, let's be honest, never pay dividends! I'm looking at you, Airbnb (ABNB) and DoorDash (DASH).
And make no mistake, growing dividends are critical to our strategy--as AbbVie and Abbott showed, you can set yourself up for outperformance if you grab shares of upcoming or recent spinoffs with a history of hiking their payouts.
The One Telltale Sign of an Upcoming Spinoff
Pretty well all spinoffs have one thing in common: they come from companies that have one or more divisions whose products don't overlap with one another. You can see this with AbbVie, whose pharmaceuticals are separate and distinct from Abbott's medical devices.
You can see it again with one of the biggest spinoffs in stock-market history, the split of online-payment service PayPal (PAYPL) from auction site eBay (EBAY).
Companies that conduct spinoffs also tend to grow by buying other firms, as was the case with information-technology manager Synnex (SNX), which we added to the portfolio of my Hidden Yields dividend-growth service in October 2019.
We did so because this growth stock was trading "too cheaply" thanks to its recent acquisition of customer-service consultant Convergys. Higher debt levels had spooked Mr. and Ms. Market, as the couple fretted whether SNX could pay its tab.
But we anticipated that SNX, which has made 24 acquisitions in its 40-year history, would have no problem paying down the credit for its latest shopping spree. Since then, the firm steadily reduced its debt and its stock steadily rose. We Hidden Yielders have enjoyed 52% total returns since we added SNX to our portfolio:
Spinoff Play Shines for 52% Total Returns
That's not all: just over a month ago, Synnex completed the spinoff of Concentrix Corporation (CNXC), which provides customer-service solutions and works with many of the top tech companies in the US. And guess what? We're already up 27% on our new CNXC position.
Spinoff "Baby" Surges Post-Split
That's a great start, and I'll have more to say about both stocks in Hidden Yields once we get a clearer sense of how big--and how fast-growing--Concentrix's dividend will be, as well as Synnex's payout growth post-pandemic.
Meantime, one spinoff to keep an eye on is the one in progress at International Business Machines (IBM), which will conclude before the end of 2021. The new firm will contain IBM's IT infrastructure business, letting the "old" IBM focus on artificial intelligence and cloud computing. The move will better position IBM to take on cloud leaders Microsoft (MSFT) and Amazon.com (AMZN).
No word on the new company's dividend, but management says two firms' combined payouts won't be less than the $1.63 quarterly (for a 5% annualized yield) IBM pays today.
What I See Ahead for Synnex and Concentrix--and 7 BUYS for 130%+ Upside
I'll give you my current buy/sell recommendations on Synnex and Concentrix right now when you "road test" Hidden Yields for 60 days with no obligation whatsoever. And you'll be among the first to get any changes in my advice as the companies' post-spinoff picture gets clearer.
The instant you start your trial, you'll get VIP access to the Hidden Yields portfolio, including my latest buy or sell recommendations on these two stocks, plus the names of 17 other solid dividend growers we're holding now, too.
And that's not all: I'll also give you an exclusive special report naming my 7 best buys for your portfolio as we kick off 2021.
These 7 picks are all doing exactly what we need them to right now: kicking out huge yearly dividend increases that are attracting more and more investors--who are bidding up their stocks in lockstep with their ballooning payouts!
Buy These 7 Stocks Now--Before Their Next Dividend Hike
Pick No. 1 is a great example. It boasts a portfolio of cell towers that are cranking out higher and higher rents as each of us gobbles up more and more mobile data (especially during the pandemic).
And management is turning around and handing that surging cash stream to its investors as a dividend that rises every quarter and has jumped an amazing 137% in the last 5 years. That, in turn, has driven its share price up almost point for point as more investors have come onboard:
137% Dividend Hike Ignites Pick No. 1's Price
This smartly run company has plenty of cash left for dividend hikes, so we can expect its payout to keep rising higher, taking its share price along for the ride!
The other 6 stocks in this report all have dividends that are surging just like this, and I expect their share prices to ride their payouts up over the next 5 years, too!
The time to buy all 7 is right now. Go here and I'll give you this exclusive special report, with full details on all 7 of these stout dividend growers. You'll also get full access to Hidden Yields (including the names, tickers and updated advice on all 19 dividend growers in our portfolio).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. And make no mistake, growing dividends are critical to our strategy--as AbbVie and Abbott showed, you can set yourself up for outperformance if you grab shares of upcoming or recent spinoffs with a history of hiking their payouts. Companies that conduct spinoffs also tend to grow by buying other firms, as was the case with information-technology manager Synnex (SNX), which we added to the portfolio of my Hidden Yields dividend-growth service in October 2019. | How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. And if Abbott investors held on to their AbbVie shares, their holdings skyrocketed as other income-seekers noticed these rapid payout hikes and bought in, driving up the prices of both companies in lockstep with their rising payouts: ... Driving Fast Price Gains, Too! The instant you start your trial, you'll get VIP access to the Hidden Yields portfolio, including my latest buy or sell recommendations on these two stocks, plus the names of 17 other solid dividend growers we're holding now, too. | How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. Prior to their breakup eight years ago, the dividend of the old parent company, Abbott, was already growing at a healthy clip, more than doubling in the preceding 10 years and reaching $0.51 a share right before the spinoff took effect: Abbott's Dividend Soared Pre-Split ... Abbott, for its part, had reduced its payout to $0.14 a share to account for AbbVie's dividend, so investors now had two dividend streams that paid them $0.54 a share in all--more than the $0.51 they were getting from the "old" Abbott. | How Spinoffs Can Deliver Triple-Digit Gains, Accelerating Payouts Medical-equipment maker Abbott Labs (ABT) and its spinoff, pharmaceutical firm AbbVie (ABBV), are classic examples of the gains (and fast-growing dividends) a spinoff can hand us. On the day of the split, Abbott investors were handed one share of AbbVie for every Abbott share they owned, and the new firm set its payout at $0.40 a share quarterly. That's a great start, and I'll have more to say about both stocks in Hidden Yields once we get a clearer sense of how big--and how fast-growing--Concentrix's dividend will be, as well as Synnex's payout growth post-pandemic. |
32285.0 | 2021-01-12 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-2021-01-12 | 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
Consolidated Edison Inc (Symbol: ED) $68.73 $77.50 12.76%
Lowe's Companies Inc (Symbol: LOW) $166.32 $181.50 9.13%
Church & Dwight Co Inc (Symbol: CHD) $84.92 $92.25 8.63%
Cintas Corporation (Symbol: CTAS) $339.50 $365.00 7.51%
Abbott Laboratories (Symbol: ABT) $110.84 $117.92 6.38%
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
Consolidated Edison Inc (Symbol: ED) 4.45% 12.76% 17.21%
Lowe's Companies Inc (Symbol: LOW) 1.44% 9.13% 10.57%
Church & Dwight Co Inc (Symbol: CHD) 1.13% 8.63% 9.76%
Cintas Corporation (Symbol: CTAS) 0.83% 7.51% 8.34%
Abbott Laboratories (Symbol: ABT) 1.62% 6.38% 8%
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
Consolidated Edison Inc (Symbol: ED) $2.96 $3.06 3.38%
Lowe's Companies Inc (Symbol: LOW) $2.06 $2.25 9.22%
Church & Dwight Co Inc (Symbol: CHD) $0.912 $0.96 5.26%
Cintas Corporation (Symbol: CTAS) $2.55 $3.51 37.65%
Abbott Laboratories (Symbol: ABT) $1.28 $1.44 12.50%
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 CTAS — FREE Get the latest Zacks research report on ABT — 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. Consolidated Edison Inc (Symbol: ED) $68.73 $77.50 12.76% Lowe's Companies Inc (Symbol: LOW) $166.32 $181.50 9.13% Church & Dwight Co Inc (Symbol: CHD) $84.92 $92.25 8.63% Cintas Corporation (Symbol: CTAS) $339.50 $365.00 7.51% Abbott Laboratories (Symbol: ABT) $110.84 $117.92 6.38% 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. Consolidated Edison Inc (Symbol: ED) 4.45% 12.76% 17.21% Lowe's Companies Inc (Symbol: LOW) 1.44% 9.13% 10.57% Church & Dwight Co Inc (Symbol: CHD) 1.13% 8.63% 9.76% Cintas Corporation (Symbol: CTAS) 0.83% 7.51% 8.34% Abbott Laboratories (Symbol: ABT) 1.62% 6.38% 8% Another consideration with dividend growth stocks is just how much the dividend is growing. | Consolidated Edison Inc (Symbol: ED) $68.73 $77.50 12.76% Lowe's Companies Inc (Symbol: LOW) $166.32 $181.50 9.13% Church & Dwight Co Inc (Symbol: CHD) $84.92 $92.25 8.63% Cintas Corporation (Symbol: CTAS) $339.50 $365.00 7.51% Abbott Laboratories (Symbol: ABT) $110.84 $117.92 6.38% 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. Consolidated Edison Inc (Symbol: ED) 4.45% 12.76% 17.21% Lowe's Companies Inc (Symbol: LOW) 1.44% 9.13% 10.57% Church & Dwight Co Inc (Symbol: CHD) 1.13% 8.63% 9.76% Cintas Corporation (Symbol: CTAS) 0.83% 7.51% 8.34% Abbott Laboratories (Symbol: ABT) 1.62% 6.38% 8% Another consideration with dividend growth stocks is just how much the dividend is growing. Consolidated Edison Inc (Symbol: ED) $2.96 $3.06 3.38% Lowe's Companies Inc (Symbol: LOW) $2.06 $2.25 9.22% Church & Dwight Co Inc (Symbol: CHD) $0.912 $0.96 5.26% Cintas Corporation (Symbol: CTAS) $2.55 $3.51 37.65% Abbott Laboratories (Symbol: ABT) $1.28 $1.44 12.50% These five stocks are part of our full Dividend Aristocrats List. | Consolidated Edison Inc (Symbol: ED) $68.73 $77.50 12.76% Lowe's Companies Inc (Symbol: LOW) $166.32 $181.50 9.13% Church & Dwight Co Inc (Symbol: CHD) $84.92 $92.25 8.63% Cintas Corporation (Symbol: CTAS) $339.50 $365.00 7.51% Abbott Laboratories (Symbol: ABT) $110.84 $117.92 6.38% 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. Consolidated Edison Inc (Symbol: ED) 4.45% 12.76% 17.21% Lowe's Companies Inc (Symbol: LOW) 1.44% 9.13% 10.57% Church & Dwight Co Inc (Symbol: CHD) 1.13% 8.63% 9.76% Cintas Corporation (Symbol: CTAS) 0.83% 7.51% 8.34% Abbott Laboratories (Symbol: ABT) 1.62% 6.38% 8% Another consideration with dividend growth stocks is just how much the dividend is growing. Consolidated Edison Inc (Symbol: ED) $2.96 $3.06 3.38% Lowe's Companies Inc (Symbol: LOW) $2.06 $2.25 9.22% Church & Dwight Co Inc (Symbol: CHD) $0.912 $0.96 5.26% Cintas Corporation (Symbol: CTAS) $2.55 $3.51 37.65% Abbott Laboratories (Symbol: ABT) $1.28 $1.44 12.50% These five stocks are part of our full Dividend Aristocrats List. | Consolidated Edison Inc (Symbol: ED) $68.73 $77.50 12.76% Lowe's Companies Inc (Symbol: LOW) $166.32 $181.50 9.13% Church & Dwight Co Inc (Symbol: CHD) $84.92 $92.25 8.63% Cintas Corporation (Symbol: CTAS) $339.50 $365.00 7.51% Abbott Laboratories (Symbol: ABT) $110.84 $117.92 6.38% 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. Consolidated Edison Inc (Symbol: ED) 4.45% 12.76% 17.21% Lowe's Companies Inc (Symbol: LOW) 1.44% 9.13% 10.57% Church & Dwight Co Inc (Symbol: CHD) 1.13% 8.63% 9.76% Cintas Corporation (Symbol: CTAS) 0.83% 7.51% 8.34% Abbott Laboratories (Symbol: ABT) 1.62% 6.38% 8% Another consideration with dividend growth stocks is just how much the dividend is growing. Consolidated Edison Inc (Symbol: ED) $2.96 $3.06 3.38% Lowe's Companies Inc (Symbol: LOW) $2.06 $2.25 9.22% Church & Dwight Co Inc (Symbol: CHD) $0.912 $0.96 5.26% Cintas Corporation (Symbol: CTAS) $2.55 $3.51 37.65% Abbott Laboratories (Symbol: ABT) $1.28 $1.44 12.50% These five stocks are part of our full Dividend Aristocrats List. |
32286.0 | 2021-01-11 00:00:00 UTC | Abbott Gets FDA Clearance For Rapid Handheld Blood Test For Mild Traumatic Brain Injury | ABT | https://www.nasdaq.com/articles/abbott-gets-fda-clearance-for-rapid-handheld-blood-test-for-mild-traumatic-brain-injury | nan | nan | (RTTNews) - Abbott (ABT) said it has received 510(k) clearance from the U.S. FDA for the first rapid handheld traumatic brain injury blood test. The test will help clinicians assess individuals with suspected mild traumatic brain injuries, including concussions. Tests results are available within 15 minutes after plasma is placed in the test cartridge.
According to the company, the test measures specific proteins present in the blood after a traumatic brain injury. A negative result on the test can be used to rule out the need for a head CT scan, a common tool used to diagnose concussion. For those who test positive, this test result complements CT scans to help clinicians evaluate whether someone has a traumatic brain injury.
Therefore, the test could help to eliminate wait time in the emergency room and could reduce the number of unnecessary CT scans by up to 40%, the company said.
The company said the test will run on its handheld i-STAT Alinity platform. The test simultaneously measures biomarkers UCH-L1 and GFAP, proteins found in the blood after a concussion or head trauma.
Abbott noted that it is also working on a test that would use whole blood on i-STAT at the point of care, and developing a test for its Alinity i and ARCHITECT core laboratory instruments under FDA breakthrough designation.
The company said portable test that can be used outside the traditional healthcare setting where people experience head injuries and need a quick evaluation, like sporting events.
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 it has received 510(k) clearance from the U.S. FDA for the first rapid handheld traumatic brain injury blood test. Therefore, the test could help to eliminate wait time in the emergency room and could reduce the number of unnecessary CT scans by up to 40%, the company said. The company said portable test that can be used outside the traditional healthcare setting where people experience head injuries and need a quick evaluation, like sporting events. | (RTTNews) - Abbott (ABT) said it has received 510(k) clearance from the U.S. FDA for the first rapid handheld traumatic brain injury blood test. According to the company, the test measures specific proteins present in the blood after a traumatic brain injury. For those who test positive, this test result complements CT scans to help clinicians evaluate whether someone has a traumatic brain injury. | (RTTNews) - Abbott (ABT) said it has received 510(k) clearance from the U.S. FDA for the first rapid handheld traumatic brain injury blood test. According to the company, the test measures specific proteins present in the blood after a traumatic brain injury. For those who test positive, this test result complements CT scans to help clinicians evaluate whether someone has a traumatic brain injury. | (RTTNews) - Abbott (ABT) said it has received 510(k) clearance from the U.S. FDA for the first rapid handheld traumatic brain injury blood test. According to the company, the test measures specific proteins present in the blood after a traumatic brain injury. For those who test positive, this test result complements CT scans to help clinicians evaluate whether someone has a traumatic brain injury. |
32287.0 | 2021-01-07 00:00:00 UTC | Notable ETF Outflow Detected - IVW, TMO, ABBV, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-ivw-tmo-abbv-abt-2021-01-07 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. 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 IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. | Among the largest underlying components of IVW, in trading today Thermo Fisher Scientific Inc (Symbol: TMO) is up about 3.2%, AbbVie Inc (Symbol: ABBV) is up about 1.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $191.2 million dollar outflow -- that's a 0.6% decrease week over week (from 506,500,000 to 503,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $35.21 per share, with $64.185 as the 52 week high point — that compares with a last trade of $63.89. |
32288.0 | 2021-01-07 00:00:00 UTC | Where to Invest $100,000 Right Now | ABT | https://www.nasdaq.com/articles/where-to-invest-%24100000-right-now-2021-01-07 | nan | nan | Most of us rang in the new year in a socially distanced way -- often, from our couches. We toasted with friends -- eggnog glasses virtually touching -- via video calls. And we were happy to put 2020 behind us. But when planning where to invest in 2021, it's important to keep that window to last year open. To be successful now and beyond, we shouldn't forget all that happened in the difficult year of 2020.
In 2020, investors faced an entirely new and unexpected situation: The coronavirus pandemic. Its effect on the stock market was temporary -- the market crashed, then recovered. But its effect on how companies do business and how consumers operate continues. And the crisis itself continues. So, understanding this, let's talk about the best way to invest $100,000 right now. (And if you don't have that amount, you can scale down this plan to suit your budget.)
Image source: Getty Images.
The ongoing crisis
First, I would invest $50,000 in a basket of companies that won't be hurt by the ongoing health crisis. In spite of the launch of a vaccination program, COVID-19 cases are on the rise in the U.S. Even if you're investing for the long term, this element is important. Why? Because we don't know how long the situation will last -- and we don't know the full effect it will have on companies that are suffering the most.
Considering this, I would invest $10,000 each in Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), Vertex Pharmaceuticals (NASDAQ: VRTX), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT). The U.S. Food and Drug Administration (FDA) has granted Emergency Use Authorization (EUA) to eight of Abbott's coronavirus tests -- including a new, rapid, inexpensive at-home test. With President-elect Joe Biden's support of testing, we should expect rising revenue there. Teladoc, a leader in virtual medical visits, saw quarterly revenue soar in the triple digits last year. And importantly, the trend continued even at times when medical offices reopened and coronavirus cases declined.
Vertex specializes in cystic fibrosis treatments. In fact, the company predicts it will continue to be the leading player in this market until at least the late 2030s. Even during the coronavirus, Vertex managed to start new patients on its treatments, and in the most recent quarter raised its full-year product revenue forecast. The market leadership and strength in times of trouble make me confident about Vertex for the long term.
Rewarding investors
Amazon and Target both won last year on their ability to serve customers online with essentials like grocery and cleaning products as well as general merchandise. Amazon's delivery system and Target's same-day pick-up and drive-up sealed the deal. The consumer's move to online shopping wasn't temporary, though. Analysts expect online retail sales to gain steadily in the coming years -- with or without coronavirus. So, these companies -- and their shares -- will continue to win.
Now, let's add some dividend stocks to the mix. Here, I'm looking for Dividend Aristocrats, or those companies that have increased their dividends annually for at least the past 25 years. That track record indicates they have the ongoing financial strength and the will to reward investors -- important factors when we're looking for steady income from a stock. Abbott and Target, which we've already chosen, are both Dividend Aristocrats. I would also add Clorox (NYSE: CLX) and McDonald's (NYSE: MCD), with an investment of $10,000 in each.
CLX Dividend data by YCharts
Clorox's sales soared in 2020, led by demand for its cleaning products. That level of demand may not last beyond the health crisis. But I expect revenue and profit to continue to gradually climb. Both metrics have gained in most years during the past decade. As for McDonald's, the company's strength in drive-thru should help it as consumers continue to favor contactless experiences.
Two bets
Next, I would make two bets -- on the maker of a coronavirus treatment and on a carmaker. While coronavirus vaccine makers soared last year, companies developing treatments lagged behind. Regeneron (NASDAQ: REGN), for instance, climbed 29%. (By comparison, vaccine developer Novavax (NASDAQ: NVAX) surged more than 2,000%.) In November, the FDA granted Regeneron's antibody cocktail an EUA for the treatment of certain coronavirus patients. Regeneron may gain as its cocktail adds to revenue in the near term, and in the long term, its seven commercialized products may boost revenue and, eventually, the share price. I would invest $10,000 in Regeneron.
Tesla's (NASDAQ: TSLA) share price keeps on climbing. But so does demand for its cars. Revenue has been increasing for about six years, and the annual loss is gradually narrowing.
TSLA Revenue (Annual) data by YCharts
And even in a 2020 pressured by the coronavirus outbreak, Tesla managed to deliver about 500,000 vehicles, meeting its guidance. Once the health crisis eases, demand and production are likely to climb higher. So, I would invest $10,000 in this stock now.
And finally, we're left with $10,000. I would keep this cash available for buying opportunities that may arise in the coming months. As we know, the world of investment is full of surprises -- so it's a good idea to have funds ready for action at any moment.
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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 and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends Amazon, Teladoc Health, and Tesla. The Motley Fool recommends Vertex Pharmaceuticals and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 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. | Considering this, I would invest $10,000 each in Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), Vertex Pharmaceuticals (NASDAQ: VRTX), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT). Rewarding investors Amazon and Target both won last year on their ability to serve customers online with essentials like grocery and cleaning products as well as general merchandise. TSLA Revenue (Annual) data by YCharts And even in a 2020 pressured by the coronavirus outbreak, Tesla managed to deliver about 500,000 vehicles, meeting its guidance. | Considering this, I would invest $10,000 each in Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), Vertex Pharmaceuticals (NASDAQ: VRTX), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT). While coronavirus vaccine makers soared last year, companies developing treatments lagged behind. The Motley Fool recommends Vertex Pharmaceuticals and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. | Considering this, I would invest $10,000 each in Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), Vertex Pharmaceuticals (NASDAQ: VRTX), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT). Regeneron may gain as its cocktail adds to revenue in the near term, and in the long term, its seven commercialized products may boost revenue and, eventually, the share price. The Motley Fool recommends Vertex Pharmaceuticals and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. | Considering this, I would invest $10,000 each in Abbott Laboratories (NYSE: ABT), Teladoc Health (NYSE: TDOC), Vertex Pharmaceuticals (NASDAQ: VRTX), Amazon (NASDAQ: AMZN), and Target (NYSE: TGT). Because we don't know how long the situation will last -- and we don't know the full effect it will have on companies that are suffering the most. CLX Dividend data by YCharts Clorox's sales soared in 2020, led by demand for its cleaning products. |
32289.0 | 2021-01-06 00:00:00 UTC | 2 Coronavirus Stocks That Will Keep Winning in 2021 | ABT | https://www.nasdaq.com/articles/2-coronavirus-stocks-that-will-keep-winning-in-2021-2021-01-06 | nan | nan | Shares of Moderna (NASDAQ: MRNA) and Abbott Laboratories (NYSE: ABT) both climbed last year due to the companies' potential to combat the coronavirus. Moderna, developer of one of the first coronavirus vaccines, soared more than 400%. Investors bet on the then-clinical stage company and the possibility of it launching its very first product. Abbott, a leader in COVID-19 testing, advanced 26%. Here, investors bet the company would benefit from a growing need for coronavirus testing.
Now, revenue is on the horizon for Moderna and quickly growing at Abbott. Let's take a closer look at why 2021 may be another winning year for these two healthcare companies -- and their shareholders.
Image source: Getty Images.
In December, the U.S. Food and Drug Administration (FDA) granted Moderna Emergency Use Authorization (EUA) for its investigational coronavirus vaccine. Canada followed later in the month. And Moderna awaits a decision in Europe in the coming days.
125 million vaccine doses
In an update last month, Moderna said it aims to produce as many as 125 million doses for use worldwide in the first quarter. So, investors should expect to see product revenue in the biotech's first-quarter earnings report. Let's make a quick estimate. If Moderna delivers only half the promised number of doses and charges the $15 price paid by the U.S., that amounts to $930 million in product revenue. Nearly $1 billion in a quarter is a big deal for a company that, until this time, didn't have product revenue.
Looking ahead, the annual earnings per share (EPS) estimate is more than $9.91. At the current share price, that gives Moderna a valuation of about 11 times forward earnings.
MRNA Annual EPS Estimates data by YCharts. P/E = price-to-earnings.
What this means is that Moderna shares aren't expensive, in spite of last year's gain. By comparison, Pfizer (NYSE: PFE), maker of the coronavirus vaccine authorized days before Moderna's, is trading at more than 23 times earnings.
You might wonder if competition may get in the way of Moderna's earnings prospects. Considering the global need for a vaccine, this isn't likely. Even if Moderna, Pfizer, and close rivals all produce at full capacity, demand won't be met. So, there should be plenty of revenue opportunities for each player. And President-elect Joe Biden plans to make vaccination a priority.
Now, let's turn our attention to Abbott. First of all, Abbott doesn't depend solely on its COVID-19 tests for revenue. The company has four businesses: nutrition, diagnostics, pharmaceuticals, and medical devices. Together, those units generated nearly $9 billion in sales in the most recent quarter. And annual profit has climbed for the past two years. So, with or without coronavirus testing, Abbott is thriving.
An at-home test
But its strength in COVID-19 tests will surely give revenue an extra boost in the months to come. The FDA has granted Abbott EUAs for eight coronavirus tests. The most recent is the BinaxNOW for at-home use. The FDA earlier authorized its BinaxNOW rapid test for professional use. Support from Washington is also a positive for Abbott. Along with vaccination, Biden is making testing a key element in the plan to conquer the coronavirus pandemic.
Revenue from Abbott's COVID-19 tests has climbed from quarter to quarter -- to $881 million in the third quarter, from $615 million in the second. But these figures only include a few weeks of BinaxNOW for professionals sales. Abbott said it plans to ship 30 million of the at-home version of the test in the first quarter and 90 million in the second quarter.
With Abbott ramping up production of the BinaxNOW tests, it's clear the biggest gains in testing revenue are yet to come. Like Moderna, Abbott shares aren't expensive considering future earnings. Abbott's EPS estimates continue to climb -- and its forward price-to-earnings ratio has declined.
ABT Annual EPS Estimates data by YCharts
Last year, investors imagined the roles Moderna and Abbott might play in the fight against coronavirus. Now, things are taking shape. This year, product orders and revenue clearly will be the catalysts for Moderna and Abbott share performance. And with the U.S. favoring testing and vaccination, it's likely these healthcare companies will post another winning year.
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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. | Shares of Moderna (NASDAQ: MRNA) and Abbott Laboratories (NYSE: ABT) both climbed last year due to the companies' potential to combat the coronavirus. ABT Annual EPS Estimates data by YCharts Last year, investors imagined the roles Moderna and Abbott might play in the fight against coronavirus. By comparison, Pfizer (NYSE: PFE), maker of the coronavirus vaccine authorized days before Moderna's, is trading at more than 23 times earnings. | Shares of Moderna (NASDAQ: MRNA) and Abbott Laboratories (NYSE: ABT) both climbed last year due to the companies' potential to combat the coronavirus. ABT Annual EPS Estimates data by YCharts Last year, investors imagined the roles Moderna and Abbott might play in the fight against coronavirus. MRNA Annual EPS Estimates data by YCharts. | Shares of Moderna (NASDAQ: MRNA) and Abbott Laboratories (NYSE: ABT) both climbed last year due to the companies' potential to combat the coronavirus. ABT Annual EPS Estimates data by YCharts Last year, investors imagined the roles Moderna and Abbott might play in the fight against coronavirus. Revenue from Abbott's COVID-19 tests has climbed from quarter to quarter -- to $881 million in the third quarter, from $615 million in the second. | Shares of Moderna (NASDAQ: MRNA) and Abbott Laboratories (NYSE: ABT) both climbed last year due to the companies' potential to combat the coronavirus. ABT Annual EPS Estimates data by YCharts Last year, investors imagined the roles Moderna and Abbott might play in the fight against coronavirus. By comparison, Pfizer (NYSE: PFE), maker of the coronavirus vaccine authorized days before Moderna's, is trading at more than 23 times earnings. |
32290.0 | 2021-01-06 00:00:00 UTC | 3 Top Coronavirus Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/3-top-coronavirus-stocks-to-buy-right-now-2021-01-06 | nan | nan | Don't let the ongoing vaccine rollout trick you into thinking that coronavirus stocks are old hat. Until the global caseload falls to manageable levels, we'll still need new vaccines, plenty of diagnostic tests, and as many therapeutic drugs as we can get our hands on to treat patients with COVID-19 and prevent people from contracting the disease.
The catch? Competition for market share is intensifying. So, it's a bit harder to pick a winning coronavirus stock now than it was in 2020. Being the first to get a product approved for sale clearly doesn't mean that it will capture the entire market. Investors should turn to focus on companies that will be making products that are tangibly better than the competition.
Image source: Getty Images.
1. Johnson & Johnson
While Johnson & Johnson (NYSE: JNJ) is still working on its coronavirus vaccine candidate, it has one big advantage that the vaccines by Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) don't: It only takes one dose to generate immunity. This means that it doesn't need to manufacture nearly as much to meet demand. It has the added benefit of making the logistics of vaccine administration much easier, since people will only need to report to a clinic once, and clinics will need to procure fewer syringes and associated products than with competing vaccines. But the candidate will need to clear its final phase of clinical trials and get regulatory approval before investors can count on the payoff.
J&J's vaccine will have another advantage over the competition: better storage and transportation characteristics. While Pfizer's vaccine requires transport and storage in ultra-cold freezers, J&J's can be stored at standard medical refrigerator temperatures for up to 90 days. In such a refrigerator, Pfizer's vaccine can only stay for five days before spoiling. That means J&J's candidate is easier for smaller clinics to deploy, which is likely to be a major factor in their purchasing decision. The caveat here is that everything I've said assumes that the candidate is just as effective as the others on the market. If it isn't as good at preventing severe disease, it'll be at a major disadvantage.
2. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) isn't working on a vaccine, but its diagnostic tests make it a lucrative coronavirus stock. As a result of its strong leadership in testing throughout the pandemic, Abbott's U.S.-based diagnostics sales revenue increased by 61.4% in the third quarter compared to last year. In total, the company has eight different tests that are approved for sale, covering every conceivable coronavirus diagnostic niche. Its latest rapid test product is designed for at-home use, and cheaply provides consumers with results without the use of any complicated and pricey laboratory equipment.
Given the high demand for testing, Abbott should continue to prosper, especially if it continues to innovate on consumer testing solutions. In particular, the company's NAVICA smartphone app to track test results will likely be a major driver of value for consumers seeking testing products in a growing field of competitors. Expect Abbott to continue developing and releasing more sophisticated coronavirus diagnostic tests and emphasizing digital solutions like NAVICA that add perks like traceability and third-party verification of diagnostic results.
3. Co-Diagnostics
Unlike Abbott or J&J, Co-Diagnostics (NASDAQ: CODX) is a small-cap stock that's growing like wildfire. This year, the company sold more than 10 million of its coronavirus molecular diagnostic tests, earning it $21.8 million in the third quarter alone. But Co-Diagnostics is just getting started, and management expects its performance to be even better next quarter.
Investors should expect two catalysts for the stock's price after the next earnings report. First, its new at-home saliva-based coronavirus diagnostic test recently launched. Second, its joint venture in India started to sell the company's diagnostic test there in late November, which may give an even larger boost to its revenue. Next year will also be exciting for investors. Co-Diagnostics is working on a new molecular test that's intended for use in research contexts to detect coronaviral mutations. It's also working on a new line of research-use multiplexed tests that detect influenza A, influenza B, and coronavirus from the same sample. Stay tuned for the company's next earnings report to see how much new revenue these projects are earning, and invest accordingly.
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Alex Carchidi owns shares of Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) isn't working on a vaccine, but its diagnostic tests make it a lucrative coronavirus stock. Until the global caseload falls to manageable levels, we'll still need new vaccines, plenty of diagnostic tests, and as many therapeutic drugs as we can get our hands on to treat patients with COVID-19 and prevent people from contracting the disease. While Pfizer's vaccine requires transport and storage in ultra-cold freezers, J&J's can be stored at standard medical refrigerator temperatures for up to 90 days. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) isn't working on a vaccine, but its diagnostic tests make it a lucrative coronavirus stock. Johnson & Johnson While Johnson & Johnson (NYSE: JNJ) is still working on its coronavirus vaccine candidate, it has one big advantage that the vaccines by Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) don't: It only takes one dose to generate immunity. This year, the company sold more than 10 million of its coronavirus molecular diagnostic tests, earning it $21.8 million in the third quarter alone. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) isn't working on a vaccine, but its diagnostic tests make it a lucrative coronavirus stock. Johnson & Johnson While Johnson & Johnson (NYSE: JNJ) is still working on its coronavirus vaccine candidate, it has one big advantage that the vaccines by Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) don't: It only takes one dose to generate immunity. Expect Abbott to continue developing and releasing more sophisticated coronavirus diagnostic tests and emphasizing digital solutions like NAVICA that add perks like traceability and third-party verification of diagnostic results. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) isn't working on a vaccine, but its diagnostic tests make it a lucrative coronavirus stock. Competition for market share is intensifying. That's right -- they think these 10 stocks are even better buys. |
32291.0 | 2021-01-04 00:00:00 UTC | Is It Too Late to Invest in Coronavirus Test Stocks? | ABT | https://www.nasdaq.com/articles/is-it-too-late-to-invest-in-coronavirus-test-stocks-2021-01-04 | nan | nan | With multiple coronavirus vaccines having gained emergency use authorizations (EUAs) by the Food and Drug Administration, it seems likely that COVID-19 testing will peak sometime in the near future. Nevertheless, companies continue to gain authorizations for new tests. In this video from Motley Fool Live, recorded on Dec. 21, Corinne Cardina, bureau chief of healthcare and cannabis, and Fool.com contributor Brian Orelli discuss the advantages of new at-home tests and what investors should look for if they're thinking about investing in the space.
10 stocks we like better than Quidel
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Corrine Cardina: The FDA has given out several EUAs over the past couple of weeks. Actually, just one today was from Quidel (NASDAQ: QDEL). But last week, the FDA gave an EUA to the first fully at-home diagnostic test that was made by an Australian company called Ellume. The test is called the Ellume. That can be bought at drug stores, no prescription needed. Another EUA for testing last week went to Abbott Labs (NYSE: ABT). That one, you do need a prescription. It's done under the supervision of a telehealth provider. What impact could these new testing options have on the testing landscape, especially when you consider that the major lab companies have been more backed up with all the samples that do come to them?
Brian Orelli: I think that obviously more testing is better. I'm not sure how quickly they're going to be able to roll out enough test to make a dent in the total number of tests that we're running. There's a couple 100 authorized tests, so adding one or two extra tests is not going to probably do that much, especially as they're going to take a while to ramp up production of their tests, but definitely at-home testing are easier and if they're available, would be helpful for patients.
Cardina: Definitely. Do you have any thoughts on investing in any of these companies that do make tests?
Orelli: I think the ones where the tests have to be run on a machine and the amount of machines that people have been buying, either small machines that go into doctor's offices or large machines that go into laboratories. A lot of these companies are working under the razor-and-blade model, so you can think of the machine as the razor, and then the test as the blade. But each razor can use a whole bunch of different blades in different kinds of tests. So I think any company that is able to expand the number of machines that are in their customers, then that's going to result in those customers using those machines for other tests; flu tests or other infectious STD's. So all of these companies would add these machines, selling them for other tests. So anytime that you can get your products into your customer then they're are more likely to use it once they're used to using it for the COVID-19 test.
Brian Orelli, PhD and Corinne Cardina have no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Quidel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another EUA for testing last week went to Abbott Labs (NYSE: ABT). With multiple coronavirus vaccines having gained emergency use authorizations (EUAs) by the Food and Drug Administration, it seems likely that COVID-19 testing will peak sometime in the near future. In this video from Motley Fool Live, recorded on Dec. 21, Corinne Cardina, bureau chief of healthcare and cannabis, and Fool.com contributor Brian Orelli discuss the advantages of new at-home tests and what investors should look for if they're thinking about investing in the space. | Another EUA for testing last week went to Abbott Labs (NYSE: ABT). 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 November 20, 2020 Corrine Cardina: The FDA has given out several EUAs over the past couple of weeks. | Another EUA for testing last week went to Abbott Labs (NYSE: ABT). There's a couple 100 authorized tests, so adding one or two extra tests is not going to probably do that much, especially as they're going to take a while to ramp up production of their tests, but definitely at-home testing are easier and if they're available, would be helpful for patients. Orelli: I think the ones where the tests have to be run on a machine and the amount of machines that people have been buying, either small machines that go into doctor's offices or large machines that go into laboratories. | Another EUA for testing last week went to Abbott Labs (NYSE: ABT). That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Corrine Cardina: The FDA has given out several EUAs over the past couple of weeks. |
32292.0 | 2021-01-01 00:00:00 UTC | These 3 Dividends are Growing by 28% Per Year, Every Year | ABT | https://www.nasdaq.com/articles/these-3-dividends-are-growing-by-28-per-year-every-year-2021-01-01 | nan | nan | If you're not yet as filthy rich as you hoped you'd be by now, don't worry--we still have plenty of time to get you there.
And I'm not talking about investing your "growth capital" into risky fly-by-night names in hopes of buying high and selling higher. We can scale our money more securely--and just as spectacularly--by purchasing sound dividend payers that happen to be growing their payouts rapidly. Here's why.
There are three--and only three--ways a company's stock can pay us:
A cash dividend.
A dividend hike.
By repurchasing its own shares.
Everyone loves the dividend, but investors usually don't give enough love to the dividend hike. Not only do these raises increase the yield on your initial capital, but also they often are reflected in a price increase for the stock.
For example, if a stock pays a 3% current yield and then hikes its payout by 10%, it's unlikely that its stock price will stagnate for long. Investors will see the new 3.3% yield and buy more shares.
They'll drive the price up, and the yield back down, eventually toward 3%. This is why your favorite dividend "aristocrat"--a company everyone knows and has paid dividends forever--never pays a high current yield. Its stock price rises too fast!
Academic studies support the virtues of dividend growth investing. Ned Davis Research, for example, conducted an oft-quoted study that found that between 1972 and 2010, the S&P 500's average annual return was 7.3%, but dividend growers averaged 9.6%.
However, Argus Research did a more recent follow-up on this analysis. And no surprise, the firm came to a similar bullish conclusion about higher payouts.
Argus examined the recent performance of the roughly 500 stocks that make up the "Argus Universe of Coverage," then reduced that list to 400 by excluding stocks that haven't paid dividends over the past five years. They then cut the list into four different groups based on their dividend growth over the five-year period.
"We found that the top two tranches--which each averaged close to or higher than double-digit dividend growth--delivered solid double-digit returns even though they did not have the highest average yields. Moreover, they had above-average cash-flow coverage ratios--a key financial strength measure. Tranche 4--with the lowest dividend growth--had the lowest returns, along with an above-average yield and a low FCF coverage ratio."
Source: Argus Research
Look at how much that little table tells us. Sure, you sacrifice some current yield by investing in the fastest dividend growers. But there are a lot of losers among the high nominal yielders that weigh heavily on total returns.
And check out the dividend safety. It's not just that you're getting strong total returns, but the fastest dividend growers' payouts are covered by nearly five times the cash they need, versus by just 1.4x for the high-yield group.
The message is clear: Keep your eyes and ears open for firms that really open up their wallets, and chances are you'll find a few winners that are just screaming to be scooped up.
Let's put a few recent massive raisers to the Argus test.
Abbott Laboratories (ABT)
Dividend Yield: 3.3%
We'll begin with Abbott Laboratories (ABT), a medical devices, generic drugs and nutritional products maker that split with its pharmaceuticals business, AbbVie (ABBV), in 2013. It's best known in the income investing community for its status as a Dividend Aristocrat--one that has upped its payouts every year for nearly half a century.
ABT made a splash in December when it announced a 25% increase to its payout, to 45 cents per share. It's the kind of outsized raise you rarely see among the S&P Aristocrats, especially those that are really far along in years. In fact, it was out of character for Abbott, whose more recent dividend hikes had been in the high single digits to low teens. Even including this raise, Abbott's five-year dividend growth sits under 12%--not exactly in line with that first Argus tranche.
ABT Shares Will Have Another Big Dividend Hike to Chase
Abbott has certainly delivered the goods, however. Shareholders have enjoyed 20%-plus average annual returns over the past half-decade, and Wall Street is expecting another big year for ABT's operations, modeling 14% revenue growth and 24% profit growth in 2021.
My two big concerns? Valuation is one--in addition to a modest 1.7% yield that's in line with the broader market, the company trades at a price/earnings-to-growth ratio of 3.4. For those not familiar with PEG, it's based around the number 1. Anything less than 1 implies the stock is undervalued, anything over 1 implies it's overvalued. A multiple of 3.4 is certainly rich.
Also, Abbott's free cash flow (FCF) coverage ratio was 1.4 before the hike. That means it had about 140% of the free cash flow it needed to cover the dividend, which is well below the 4.8 FCF coverage ratio of Argus's first-tranche stocks. That doesn't have me worried about the dividend's safety, but it does make me doubt ABT's ability to keep up a dividend-growth rate anywhere near the 25% it gifted shareholders in December.
Broadcom (AVGO)
Dividend Yield: 3.3%
Broadcom (AVGO) is a semiconductor designer and manufacturer whose products are used heavily in communications and connectivity--networking, datacenters, broadband and wireless technology, and more. Its current scale is the result of the 2016 mega-merger between the old Broadcom and Avago Technologies, as well as subsequent acquisitions of CA Technologies and Symantec's enterprise security arm.
This is a far different company than it was five years ago. Revenues were $6.8 billion during the fiscal year ended November 2015; over the past 12 months, the company has generated a top line of nearly $24 billion. While profits have been all over the board in that time, the broader trend has been up, and that has helped drive a nearly 33% annual return over the past five years.
Going forward, a driving factor behind the stock should be 5G technology, which already has helped its semiconductor solutions division post its first positive comps in two years. Continued growth in the datacenter should also boost AVGO's fortunes.
So should its rapid dividend growth. The company's five-year annual dividend growth rate of 52% might raise your expectations too high; the company's most recent raise, of about 11%, is far more realistic.
And Oh, Does AVGO Have Some "Catching Up" To Do
And here, we can have faith that AVGO can keep it up; that's because despite the company's lust for M&A, Broadcom generates more than enough cash to dole out to shareholders. Its FCF coverage ratio is a spectacular 4.1, meaning it has more than enough headroom to maintain its generosity and allow your "yield on cost" to swell over time.
You'll need it, given AVGO's current fractional yield.
Mastercard (MA)
Dividend Yield: 0.5%
Mastercard (MA) has for decades been at the forefront of payments technology, even if we never really realized it. Credit cards might seem like old hat to us, but in many parts of the world, cash is still king. As recently as 2018, 87% of transactions in Spain were in cash; that figure was 86% in Italy, and amazingly, 82% in tech-savvy Japan.
Source: Statista
In other words, Mastercard has a lot more runway in cashless transactions than you might think.
I'm also not talking just plastic--Mastercard knows that digital currencies, not credit cards, could be the future, and it's already developing technologies to ensure it's relevant there, too. In September, for instance, MA rolled out a testing platform that "allows central banks to evaluate use cases and test roll-out strategies for CBDCs."
Regardless of what happens well down the road, Wall Street's "smart money" still sees good things for MA nearer-term, projecting 19% top-line growth and a 30% bottom-line recovery in 2021, which could very well help Mastercard shares keep rolling at their nearly 29% annual rate from the past five years.
Mastercard's Shares (And Dividends) Are Charging Ahead Full-Speed
Where things get really exciting, though, is the income potential. I know, I know--you can get 0.5% from a high-yield savings account. But consider this: MA has been upping its payout by 18.3% a year for half a decade now, including a 10% raise in 2020. And it's barely leaning on the spigot. Mastercard has 8 times the cash it needs to finance the payout at current levels, and that doesn't account for any future gains it makes in cash generation.
If value is important, maybe wait for a broader market drop to whittle away some of the froth. Mastercard shares have bloated to 40 times future profit estimates, and a PEG of 2.0, which is elevated enough to give some investors pause.
REVEALED: How to Make a PREDICTABLE 20% Gain in 2021 (Bull or Bear!)
Riding dividend growers to red-hot total returns is a staple of my investing plan, and if it's not already one of the pillars of your retirement strategy, you need to fix that--today.
Consider this: Right now, I've identified 7 recession-proof dividend growers that are better buys than even MA and AVGO as the calendar flips to 2021. I call them "recession-proof" because they have the perfect mix of qualities that enable them to deliver reliable, predictable returns of 12% to 20% every year, regardless of whether we're in a bull market or a bear.
This 7-stock "mini-portfolio" puts the power in your hands. Each of these picks checks off the most important boxes for any retirement investment. They can:
Predictably double or triple your investment every few years.
Protect your portfolio from wild swings so you can enjoy a stress-free, secure retirement.
Let you hold them for years without the "can't sleep at night" worries you've no doubt been living with through 2020.
And unlike the stocks above, all 7 of these low-key dividend growers are bargains right now. However, I don't expect that to last for long. The market has started keying in on value after squeezing every drop of profit from growth, so these low-volatility dividends are about to become en vogue again.
Get full details--names, tickers, best-buy prices and more--on all 7 of these stout dividend growers now. You have everything to gain and nothing to lose by giving them a look.
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) Dividend Yield: 3.3% We'll begin with Abbott Laboratories (ABT), a medical devices, generic drugs and nutritional products maker that split with its pharmaceuticals business, AbbVie (ABBV), in 2013. ABT made a splash in December when it announced a 25% increase to its payout, to 45 cents per share. ABT Shares Will Have Another Big Dividend Hike to Chase | Shareholders have enjoyed 20%-plus average annual returns over the past half-decade, and Wall Street is expecting another big year for ABT's operations, modeling 14% revenue growth and 24% profit growth in 2021. Abbott Laboratories (ABT) Dividend Yield: 3.3% We'll begin with Abbott Laboratories (ABT), a medical devices, generic drugs and nutritional products maker that split with its pharmaceuticals business, AbbVie (ABBV), in 2013. ABT made a splash in December when it announced a 25% increase to its payout, to 45 cents per share. | Abbott Laboratories (ABT) Dividend Yield: 3.3% We'll begin with Abbott Laboratories (ABT), a medical devices, generic drugs and nutritional products maker that split with its pharmaceuticals business, AbbVie (ABBV), in 2013. ABT made a splash in December when it announced a 25% increase to its payout, to 45 cents per share. ABT Shares Will Have Another Big Dividend Hike to Chase | ABT Shares Will Have Another Big Dividend Hike to Chase Abbott Laboratories (ABT) Dividend Yield: 3.3% We'll begin with Abbott Laboratories (ABT), a medical devices, generic drugs and nutritional products maker that split with its pharmaceuticals business, AbbVie (ABBV), in 2013. ABT made a splash in December when it announced a 25% increase to its payout, to 45 cents per share. |
32293.0 | 2020-12-30 00:00:00 UTC | The 3 Safest Stocks to Buy With Your Stimulus Money | ABT | https://www.nasdaq.com/articles/the-3-safest-stocks-to-buy-with-your-stimulus-money-2020-12-30 | nan | nan | It's not often that you get a Christmas gift from Uncle Sam. Now that a $600 stimulus check could be on the way, it's a great time to pick a few stalwart stocks to shore up your portfolio's long-term value. Of course, that's assuming all your bills have been covered and your emergency fund is secure.
In my view, companies that have strongly recurring revenue tend to be safe investments. But safer still are companies that have a track record for revenue-bearing innovation that allows them to consistently grow over time.
Image source: Getty Images.
1. Pfizer
Pfizer (NYSE: PFE) has been in the headlines lately thanks to its recently approved coronavirus vaccine, but it's also a stable pharma giant. Even before its vaccine, the company's roster of crucial medicines made it a powerhouse, netting it $48.65 billion in revenue over the last 12 months.
The need for its products like the analgesic Lyrica (for pain) or Lipitor (for heart disease) won't be going away anytime soon, and it's always working hard to develop the next blockbuster drug. In its late-stage clinical pipeline alone, Pfizer has 21 different projects, plus six others that are on the verge of hitting the market if they get the final go-ahead from regulators.
Potential investors should also be pleased to know that it recently spun off Upjohn, its perennially underperforming generic drug division. Upjohn combined with another generic drug manufacturing company, Mylan, to form a new entity called Viatris (NASDAQ: VTRS). Now that this transaction is done, Pfizer's management anticipates revenue growth of around 6% per year through 2025. Given the probable impact of worldwide coronavirus vaccine sales, it's hard to see how Pfizer could miss in the new year.
2. Abbott Labs
When it comes to evergreen healthcare stocks, Abbott Laboratories (NYSE: ABT) is one of the leaders. You'll find many sources of recurring revenue in its product lineup and consumer-facing line of healthcare goods, which includes brands like Pedialyte. More importantly, Abbott is a major innovator and supplier of diagnostic tests, surgical tools, and other products that healthcare facilities simply can't do without, so a large portion of its income is safe from disruption.
Per the Q3 earnings report, its diagnostics segment grew by 38.8% thanks to the demand for coronavirus tests, of which it has sold more than 100 million units so far this year.
Abbott hasn't had any trouble growing its earnings over time, even in highly challenging market conditions. Its free cash flow has more than doubled in the last four years. Add to that the fact that management has increased dividend payouts for the last 49 years in a row, and investors should have plenty of confidence that the company's edge isn't disappearing.
3. Costco
Costco Wholesale (NASDAQ: COST) is the world's third-largest retailer. It's an exceedingly safe company because it has spent decades operating comfortably despite a consistently narrow profit margin, growing revenue all the while. As consumers and businesses rely on it for everything from groceries to T-shirts, their purchasing patterns are deeply predictable, which protects the bottom line and supports sales growth over time.
Because the company charges a membership fee each year, it also has significant and strong recurring revenue; more than 90% of its members renew their subscription each year. Last quarter, these membership fees totaled $861 million, and Costco didn't need to sell a thing to earn them.
The pandemic hasn't harmed Costco's margins, and its sales grew by 17% year over year in the most recent quarter. What's more, the types of products that people buy from the company aren't about to get cut when a customer's disposable income drops. If anything, Costco's low prices and wide range of products make it the go-to retailer for cash-strapped consumers. Plus, a strong return policy means that people aren't afraid to make big purchases with the company.
10 stocks we like better than Pfizer
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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 When it comes to evergreen healthcare stocks, Abbott Laboratories (NYSE: ABT) is one of the leaders. The need for its products like the analgesic Lyrica (for pain) or Lipitor (for heart disease) won't be going away anytime soon, and it's always working hard to develop the next blockbuster drug. More importantly, Abbott is a major innovator and supplier of diagnostic tests, surgical tools, and other products that healthcare facilities simply can't do without, so a large portion of its income is safe from disruption. | Abbott Labs When it comes to evergreen healthcare stocks, Abbott Laboratories (NYSE: ABT) is one of the leaders. In my view, companies that have strongly recurring revenue tend to be safe investments. The pandemic hasn't harmed Costco's margins, and its sales grew by 17% year over year in the most recent quarter. | Abbott Labs When it comes to evergreen healthcare stocks, Abbott Laboratories (NYSE: ABT) is one of the leaders. Because the company charges a membership fee each year, it also has significant and strong recurring revenue; more than 90% of its members renew their subscription each year. The pandemic hasn't harmed Costco's margins, and its sales grew by 17% year over year in the most recent quarter. | Abbott Labs When it comes to evergreen healthcare stocks, Abbott Laboratories (NYSE: ABT) is one of the leaders. In my view, companies that have strongly recurring revenue tend to be safe investments. The pandemic hasn't harmed Costco's margins, and its sales grew by 17% year over year in the most recent quarter. |
32294.0 | 2020-12-27 00:00:00 UTC | 2 Perfect Stocks For Low-Risk Investors in 2021 | ABT | https://www.nasdaq.com/articles/2-perfect-stocks-for-low-risk-investors-in-2021-2020-12-27 | nan | nan | There's a lot of optimism that the economy and day-to-day life will get back to normal next year now that there are multiple vaccines showing a high rate of efficacy in preventing COVID-19. However, there's no guarantee how things will play out in 2021 and especially given how unpredictable this past year has been, investors may want to stick to low-risk investments that can do well under many different scenarios to keep their portfolios safe.
Two safe stocks you can buy today include Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT). Their businesses have done well over the years, including during the pandemic, and will likely continue doing so for the foreseeable future. Here's why they're optimal buys for risk-averse investors.
Image source: Getty Images.
1. Abbott Laboratories
What conservative investors will like about Abbott Laboratories is the company's versatility. The Illinois-based business has booked $23.9 billion in revenue through the first nine months of 2020, and that's 1.3% higher than the $23.6 billion it recorded in the same period last year. Net earnings of $2.3 billion remain strong but are down 11.6% from a year ago.
Although hospitals are deferring procedures to help manage COVID-19, Abbott's business has adapted to that. Sales in its pharmaceutical division are down 4.7% this year and medical device revenue has fallen 5.6%. However, nutritional sales are up 3.1% and Abbott's sales from its diagnostics segment have risen by 14.2%. The company is well-diversified, and that's what makes it a resilient investment to hold in both good times and bad.
One of the ways Abbott has adapted to the pandemic is by developing various COVID-19 tests, including one that costs just $5 and can deliver results in 15 minutes. Most recently, the Food and Drug Administration approved a $25 antigen test from Abbott that people can use at home, which can also produce rapid results. The company estimates that in the first quarter of next year it will ship out 30 million of the tests and another 90 million the following quarter.
Abbott's in a great position to do well next year, whether or not things go back to normal. Either way, its COVID-19 tests are likely to be in demand as people stay safe. And in a best-case scenario where hospitals resume normal operations, its medical device sales should also get a boost. The healthcare stock also makes for a stable dividend investment, as it is a Dividend Aristocrat that has increased its payouts for 49 years in a row and today yields 1.7% -- just slightly below the S&P 500 average of 1.8%.
Year to date, the stock is up 24% and is outperforming the index, which has rallied 14%.
2. Microsoft
A good tech stock that you can rely on to do well next year is Microsoft. The Washington-based business is seeing continued demand for its services this year as companies are doing more work remotely and relying on the cloud. Although its revenue from search ads is down over the past two quarters, its cloud business Azure still grew at a rate of more than 40% year over year during that time, and sales from its Office 365 commercial products are still rising at around 20%.
Overall, Microsoft's sales of $37.2 billion in the first quarter of fiscal 2021, for the period ending Sep. 30 (which it released on Oct. 27), grew at a rate of 12% from the prior-year period. That's down slightly from the 13% growth it achieved in the previous quarter. Meanwhile, the company's bottom line continues to be strong, with Microsoft reporting profit margins of at least 29% in each of the past four quarters.
The tech giant's products will be in demand whether people are working from their offices or from their homes next year. And that's what makes Microsoft a safe bet to do well in any scenario in 2021. In the best-case scenario where companies are recovering and spending more money on ads, its search-related revenue should bounce back, and that will give its top line an added boost.
Although Microsoft isn't a Dividend Aristocrat, it can also be a solid investment that gives you some recurring dividend income to add on top of the capital gains you're likely to earn from owning the stock. Year to date, shares of Microsoft are up over 42% and its dividend yields right around 1% per year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two safe stocks you can buy today include Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT). There's a lot of optimism that the economy and day-to-day life will get back to normal next year now that there are multiple vaccines showing a high rate of efficacy in preventing COVID-19. However, there's no guarantee how things will play out in 2021 and especially given how unpredictable this past year has been, investors may want to stick to low-risk investments that can do well under many different scenarios to keep their portfolios safe. | Two safe stocks you can buy today include Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT). And in a best-case scenario where hospitals resume normal operations, its medical device sales should also get a boost. Although its revenue from search ads is down over the past two quarters, its cloud business Azure still grew at a rate of more than 40% year over year during that time, and sales from its Office 365 commercial products are still rising at around 20%. | Two safe stocks you can buy today include Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT). Microsoft A good tech stock that you can rely on to do well next year is Microsoft. Although its revenue from search ads is down over the past two quarters, its cloud business Azure still grew at a rate of more than 40% year over year during that time, and sales from its Office 365 commercial products are still rising at around 20%. | Two safe stocks you can buy today include Abbott Laboratories (NYSE: ABT) and Microsoft (NASDAQ: MSFT). And in a best-case scenario where hospitals resume normal operations, its medical device sales should also get a boost. Although its revenue from search ads is down over the past two quarters, its cloud business Azure still grew at a rate of more than 40% year over year during that time, and sales from its Office 365 commercial products are still rising at around 20%. |
32295.0 | 2020-12-24 00:00:00 UTC | The 3 Best Stocks for 2021 | ABT | https://www.nasdaq.com/articles/the-3-best-stocks-for-2021-2020-12-24 | nan | nan | What sorts of stocks will do well in the coming year? Right now, it's clear that the coronavirus pandemic is continuing. And that limits our visibility. If the health situation worsens, stay-at-home stocks and companies making coronavirus-related products may perform well in the months ahead. If the crisis eases, travel-related and entertainment stocks could start to climb.
In this environment, the best strategy is diversification -- and not just across industries. It's important to look at each individual company's business and how news and external factors may affect its performance in 2021. Here, I'll talk about three that, together, offer a solid way to manage risk in the new year.
Image source: Getty Images.
1. Vertex
Vertex Pharmaceuticals (NASDAQ: VRTX) is down over 20% from an all-time high reached in July. Investors sanctioned the stock after the company discontinued a phase 2 study for an alpha-1 antitrypsin deficiency (AATD) therapy. But we shouldn't be discouraged. As Vertex said on itsearnings call part of the company's strategy is to advance several molecules into early clinical studies, then only move forward with the strongest. In this case, Vertex is continuing a phase 2 study of another AATD therapy. It expects to report data in the first half of 2021.
Most recently, Vertex and partner CRISPR Therapeutics (NASDAQ: CRSP) earned a victory in the development of their gene-editing program for blood disorders. All seven transfusion-dependent beta thalassemia patients were transfusion independent after three to 18 months of follow-up. And all three sickle cell disease patients were free of acute pain crises within three to 15 months of follow-up.
These are programs that could add to future revenue. For now, though, investors can count on Vertex's leadership in the cystic fibrosis (CF) market. So far, it's driven five years of annual revenue increases. Last year's launch of Trikafta -- a drug that could eventually treat 90% of all CF patients -- will accelerate that trend. In the most recent quarter, product revenue soared 62% to $1.54 billion. Vertex predicts CF leadership until at least the late 2030s. This should translate into steady share gains for the long-term investor.
2. Disney
The coronavirus hurt Disney's (NYSE: DIS) biggest revenue source: Its parks, experiences, and products business. That segment accounted for about 38% of Disney's revenue last year. With some parks closed and others forced to limit numbers of visitors, and cruises on hold, the business segment reported a 61% decline in revenue in the most recent quarter. We can expect a rebound in this segment once the coronavirus crisis eases -- and this should drive Disney shares higher.
But something else is boosting Disney shares now -- and probably will continue to do so even as the health crisis continues. And that's the company's streaming services. Because people around the world are staying home more than usual, demand for at-home entertainment is high. And that's showing in Disney+, Hulu, and ESPN+ streaming subscriptions.
In a 2019 investor update, the company forecast subscriber levels for the 2024 fiscal year. Disney expected between 60 million and 90 million Disney+ subscribers, between 40 million and 60 million Hulu subscribers, and between 8 million and 12 million ESPN+ subscribers by FY 2024. All three services are already well on their way to beating expectations. As of this month, Disney+ subscribers totaled 86.8 million, Hulu subscribers had reached 38.8 million, and ESPN+ had 11.5 million subscribers. Streaming services contributed to the 41% revenue increase in the direct-to-consumer and international business in the most recent quarter.
Disney shares have gained 18% this year. In 2021, recovery in the parks segment or continued strength in streaming may put more magic into Disney stock.
3. Abbott
President-elect Joe Biden plans to expand coronavirus testing in the U.S. And that's good news for testing leader Abbott Laboratories (NYSE: ABT). The U.S. Food and Drug Administration (FDA) has already granted eight of Abbott's coronavirus tests Emergency Use Authorization (EUA).
The latest, just this month, is Abbott's BinaxNOW rapid test for at-home use. In August, the FDA authorized a version of the test for use in healthcare settings. Abbott reported $881 million in coronavirus-related testing revenue in the quarter ending Sept. 30. But that didn't include much from the newly authorized BinaxNOW.
In the coming quarters, BinaxNOW revenue could be significant, especially with the new at-home indication. Abbott's test is used with eMed's online service to guide users through the testing process. The companies plan on delivering 30 million at-home tests in the first quarter and 90 million in the second. At a price of $25 per test, that represents $3 billion.
Soon after the initial EUA in August, Abbott started producing 50 million BinaxNOW tests per month. Abbott sells the test to professionals for $5.
Abbott's annual revenue has been on the rise since 2017, and annual profit has gained for the past two years. Beyond coronavirus testing, the company generates revenue from other diagnostic tests, medical devices, nutrition products, and pharmaceuticals. That means it has plenty of growth drivers -- during the health crisis and beyond.
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Adria Cimino owns shares of Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends CRISPR Therapeutics and Walt Disney. The Motley Fool recommends Vertex Pharmaceuticals and recommends the following options: short January 2021 $135 calls on Walt Disney and long January 2021 $60 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott President-elect Joe Biden plans to expand coronavirus testing in the U.S. And that's good news for testing leader Abbott Laboratories (NYSE: ABT). As Vertex said on itsearnings call part of the company's strategy is to advance several molecules into early clinical studies, then only move forward with the strongest. Most recently, Vertex and partner CRISPR Therapeutics (NASDAQ: CRSP) earned a victory in the development of their gene-editing program for blood disorders. | Abbott President-elect Joe Biden plans to expand coronavirus testing in the U.S. And that's good news for testing leader Abbott Laboratories (NYSE: ABT). Disney expected between 60 million and 90 million Disney+ subscribers, between 40 million and 60 million Hulu subscribers, and between 8 million and 12 million ESPN+ subscribers by FY 2024. As of this month, Disney+ subscribers totaled 86.8 million, Hulu subscribers had reached 38.8 million, and ESPN+ had 11.5 million subscribers. | Abbott President-elect Joe Biden plans to expand coronavirus testing in the U.S. And that's good news for testing leader Abbott Laboratories (NYSE: ABT). Disney expected between 60 million and 90 million Disney+ subscribers, between 40 million and 60 million Hulu subscribers, and between 8 million and 12 million ESPN+ subscribers by FY 2024. Beyond coronavirus testing, the company generates revenue from other diagnostic tests, medical devices, nutrition products, and pharmaceuticals. | Abbott President-elect Joe Biden plans to expand coronavirus testing in the U.S. And that's good news for testing leader Abbott Laboratories (NYSE: ABT). Disney shares have gained 18% this year. Abbott reported $881 million in coronavirus-related testing revenue in the quarter ending Sept. 30. |
32296.0 | 2020-12-22 00:00:00 UTC | iShares Core S&P U.S. Growth ETF Experiences Big Inflow | ABT | https://www.nasdaq.com/articles/ishares-core-sp-u.s.-growth-etf-experiences-big-inflow-2020-12-22 | 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 U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $1.1 billion dollar inflow -- that's a 10.7% increase week over week in outstanding units (from 116,850,000 to 129,350,000). Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is off about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and ServiceNow Inc (Symbol: NOW) is higher by about 1.3%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average:
Looking at the chart above, IUSG's low point in its 52 week range is $48.5501 per share, with $88.03 as the 52 week high point — that compares with a last trade of $87.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is off about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and ServiceNow Inc (Symbol: NOW) is higher by about 1.3%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $48.5501 per share, with $88.03 as the 52 week high point — that compares with a last trade of $87.64. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is off about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and ServiceNow Inc (Symbol: NOW) is higher by about 1.3%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $48.5501 per share, with $88.03 as the 52 week high point — that compares with a last trade of $87.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is off about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and ServiceNow Inc (Symbol: NOW) is higher by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $1.1 billion dollar inflow -- that's a 10.7% increase week over week in outstanding units (from 116,850,000 to 129,350,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $48.5501 per share, with $88.03 as the 52 week high point — that compares with a last trade of $87.64. | Among the largest underlying components of IUSG, in trading today Merck & Co Inc (Symbol: MRK) is off about 0.6%, Abbott Laboratories (Symbol: ABT) is off about 0.2%, and ServiceNow Inc (Symbol: NOW) is higher by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $1.1 billion dollar inflow -- that's a 10.7% increase week over week in outstanding units (from 116,850,000 to 129,350,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $48.5501 per share, with $88.03 as the 52 week high point — that compares with a last trade of $87.64. |
32297.0 | 2020-12-22 00:00:00 UTC | Got $1,000? 3 Smart Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/got-%241000-3-smart-stocks-to-buy-right-now-2020-12-22 | nan | nan | No one could have predicted the violent swings and sheer unpredictability of the 2020 stock market. While investors know to expect a certain amount of risk when trading stocks, the market's journey from rock bottom to insane new highs has drawn the ire of some investors.
Now, as the market's record-breaking streak continues on the heels of early COVID-19 vaccine distribution news and optimism on the federal government's new stimulus deal, investors need to be pickier than ever when choosing stocks to buy. As you close the chapter on 2020, here are three smart stocks to add to your buy list that could fuel enviable growth and bring winning returns to your portfolio over the next few years.
Image source: Getty Images.
1. Fiverr International
Shares of the leading freelance marketplace Fiverr International (NYSE: FVRR) have soared to a new premium this year, up 813% from January. During the third quarter (ended Sept. 30), Fiverr achieved 88% revenue growth from the year-ago period. One key catalyst for this impressive double-digit growth is the fact that active buyers on the platform also increased by nearly 40% from the corresponding quarter in 2019.
Fiverr has also reported a growing volume of freelancers taking advantage of its Promoted Gigs initiative, which allows sellers who meet certain eligibility criteria to increase their profile visibility to potential clients. Monthly active sellers on Promoted Gigs grew by more than 2,000% between the second and third quarters of the year. Likewise, buyers on Fiverr are increasingly willing to spend more for quality freelance work. By the end of the third quarter, the average spend per buyer had grown to $195; this figure was $163 at the end of Q3 2019. Fiverr is expecting its 2020 revenue to grow between 74% and 75% from 2019, a significant jump from last year's top-line growth of 42%.
The gig economy was certainly flourishing before the pandemic. In February of this year, ADP Research Institute reported that "from 2010 to 2019, the share of gig workers in companies has increased from 14.2% to 16.4%, a 2.2 percentage point increase, or 15%." It's also not surprising that supply and demand in the gig economy has reached new heights as lockdowns, widespread layoffs, and an increasingly remote workforce has caused both companies and workers to explore alternative solutions to get their projects done.
Fiverr's straightforward platform makes it easy for skilled freelancers to connect with a wide array of clients, from one-person businesses to household name brands, and vice versa. Given the company's impressive growth figures prior to the pandemic, its stellar financial results throughout this year, and the ever-increasing popularity of remote solutions across the broader workforce, Fiverr is both a top growth stock of the pandemic era and a valuable play for long-term investors.
2. Abbott Labs
When the pandemic took the world by storm earlier this year, healthcare companies scrambled to develop accurate diagnostic tools for COVID-19. Abbott Laboratories (NYSE: ABT) quickly stepped up to the plate, and has since developed eight different tests to detect coronavirus infection. These tests range from molecular and antigen tests to antibody tests, several of which have been granted emergency use authorization (EUA) from the U.S Food and Drug Administration.
On Dec. 16, the FDA issued a landmark EUA for the company's 15-minute portable BinaxNOW antigen test to be used as the first "at-home, virtually guided service" for COVID-19 diagnostics. Users need to access Abbott's free NAVICA app, which is available for iPhone and Android, to facilitate the test and read its result. The fee for the entire process is just $25. Abbott is distributing the test with digital health company eMed, and plans on getting 20 million tests to the public during the first half of 2021.
Abbott's diagnostics business has certainly helped it weather the inconsistencies of the pandemic economy. Although the company's first-half 2020 sales dropped 3% compared to the first six months of 2019, worldwide sales in its diagnostics division still grew 2%.
Abbott's robust third-quarter performance quelled any investor fears, as it reported nearly 10% total sales growth year over year. Also in the third quarter, worldwide diagnostics sales grew nearly 40% year over year, while worldwide nutrition and medical device sales rose by margins of 2.6% and 3.4%, respectively. Management was so pleased with Abbott's performance that it not only increased the company's full-year guidance but also announced a 25% boost to its quarterly dividend on Dec. 11. As a Dividend Aristocrat that has raised its payout for 49 years in a row, the company is just one year shy of being crowned a Dividend King. Investors searching for a dependable stock with a highly diversified business and a healthy dividend yield (1.7%) should definitely consider Abbott Labs for their 2021 portfolio.
3. Pinterest
Social media stocks pretty much had a banner year all around, and Pinterest (NYSE: PINS) is no exception. Shares of the company have grown from just around $20 in January to roughly $70 at the time of this writing.
Pinterest posted above-average revenue growth before the pandemic (51% in 2019), and has continued to achieve healthy top-line increases throughout this year. The third quarter was Pinterest's best in 2020 so far, during which its revenue flourished by approximately 58% year over year. In the prior two quarters, the company had posted lesser but nonetheless excellent year-over-year revenue growth of 35% and 4%.
There were a few other noteworthy tidbits for current and potential investors in Pinterest's third-quarter financial statement. For one, Pinterest slashed its net losses by 24% compared to the year-ago period, while increasing its non-GAAP net income by nearly 1,400% year over year.
Lightening growth frequently comes at a cost for companies -- often in the form of mounting debt. But not in the case of Pinterest. The company boasts assets ($2.3 billion) that far exceed its total liabilities ($366.4 million). And management anticipates that Pinterest will achieve 60% year-over-year revenue growth in the final quarter of 2020. Pinterest is a stock you can easily buy and hold for the next decade or longer.
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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) quickly stepped up to the plate, and has since developed eight different tests to detect coronavirus infection. Now, as the market's record-breaking streak continues on the heels of early COVID-19 vaccine distribution news and optimism on the federal government's new stimulus deal, investors need to be pickier than ever when choosing stocks to buy. Fiverr has also reported a growing volume of freelancers taking advantage of its Promoted Gigs initiative, which allows sellers who meet certain eligibility criteria to increase their profile visibility to potential clients. | Abbott Laboratories (NYSE: ABT) quickly stepped up to the plate, and has since developed eight different tests to detect coronavirus infection. During the third quarter (ended Sept. 30), Fiverr achieved 88% revenue growth from the year-ago period. Also in the third quarter, worldwide diagnostics sales grew nearly 40% year over year, while worldwide nutrition and medical device sales rose by margins of 2.6% and 3.4%, respectively. | Abbott Laboratories (NYSE: ABT) quickly stepped up to the plate, and has since developed eight different tests to detect coronavirus infection. Given the company's impressive growth figures prior to the pandemic, its stellar financial results throughout this year, and the ever-increasing popularity of remote solutions across the broader workforce, Fiverr is both a top growth stock of the pandemic era and a valuable play for long-term investors. Abbott's robust third-quarter performance quelled any investor fears, as it reported nearly 10% total sales growth year over year. | Abbott Laboratories (NYSE: ABT) quickly stepped up to the plate, and has since developed eight different tests to detect coronavirus infection. Abbott's robust third-quarter performance quelled any investor fears, as it reported nearly 10% total sales growth year over year. The third quarter was Pinterest's best in 2020 so far, during which its revenue flourished by approximately 58% year over year. |
32298.0 | 2020-12-21 00:00:00 UTC | Quidel Rapid Antigen Test for COVID-19 Wins Authorization | ABT | https://www.nasdaq.com/articles/quidel-rapid-antigen-test-for-covid-19-wins-authorization-2020-12-21 | nan | nan | Diagnostic healthcare specialist Quidel (NASDAQ: QDEL) today announced it has received Emergency Use Authorization from the Food and Drug Administration for a rapid COVID-19 antigen test that returns results without the use of a test instrument. Shares were soaring 8% today on the news.
Quidel's QuickVue SARS Antigen test uses a nasal swab sample taken by a healthcare professional and returns results on a test strip within 10 minutes. The test is designed to be administered to patients suspected of COVID-19 within the first five days of the onset of symptoms and has a positive predictive agreement of 96.6%.
Image source: Getty Images.
Quidel expects the test will help meet urgent testing needs in school systems and rural locations, saying that it plans to reach a production run rate of 600 million tests by the end of next year. The company's Sofia 2 test instrument also supports a rapid antigen test for the SARS-CoV-2 virus, and the U.S. Department of Health and Human Services is buying 2,000 of the machines for placement in nursing homes.
Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories (NYSE: ABT). Abbott has rapid test similar to Quidel's and announced last week a service to enable at-home use by consumers. But the demand for COVID-19 testing seems almost limitless at the moment, and investor interest in Quidel rebounded today.
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Jim Crumly owns shares of Abbott Laboratories and Quidel. The Motley Fool owns shares of and recommends Quidel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories (NYSE: ABT). The test is designed to be administered to patients suspected of COVID-19 within the first five days of the onset of symptoms and has a positive predictive agreement of 96.6%. Abbott has rapid test similar to Quidel's and announced last week a service to enable at-home use by consumers. | Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories (NYSE: ABT). Diagnostic healthcare specialist Quidel (NASDAQ: QDEL) today announced it has received Emergency Use Authorization from the Food and Drug Administration for a rapid COVID-19 antigen test that returns results without the use of a test instrument. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories (NYSE: ABT). Diagnostic healthcare specialist Quidel (NASDAQ: QDEL) today announced it has received Emergency Use Authorization from the Food and Drug Administration for a rapid COVID-19 antigen test that returns results without the use of a test instrument. Quidel expects the test will help meet urgent testing needs in school systems and rural locations, saying that it plans to reach a production run rate of 600 million tests by the end of next year. | Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories (NYSE: ABT). Diagnostic healthcare specialist Quidel (NASDAQ: QDEL) today announced it has received Emergency Use Authorization from the Food and Drug Administration for a rapid COVID-19 antigen test that returns results without the use of a test instrument. That's right -- they think these 10 stocks are even better buys. |
32299.0 | 2020-12-18 00:00:00 UTC | 3 Stocks to Buy With Dividends Yielding More Than 3% | ABT | https://www.nasdaq.com/articles/3-stocks-to-buy-with-dividends-yielding-more-than-3-2020-12-18 | nan | nan | Are you looking for stocks that pay healthy dividends and have good long-term growth prospects as well? In that case, this eclectic bunch of industrial-related stocks are worth consideration -- namely, copper miner Southern Copper (NYSE: SCCO), multi-industry industrial 3M (NYSE: MMM), and German industrial giant Siemens (OTC: SIEGY). Here's why.
Southern Copper
The U.S.-listed miner is 88.9% owned by Grupo Mexico and operates mining facilities in Mexico, Peru, Chile, Argentina, and Ecuador. Management claims to own the "largest copper reserves of the industry," and therefore is best taken as a play on copper.
Image source: Getty Images.
That's been a good thing in 2020 because copper prices have surged in response to increasing demand from China, as its economy recovered from the COVID-19 pandemic at a time when the copper supply was tight. However, prices may well moderate in the future as supply increases to balance demand.
Nevertheless, the long-term demand outlook is still positive, driven by the likelihood of demand for copper for use in electric vehicles and renewable energy.
Turning to dividend matters, the company's policy is to pay its dividend subject to its current cash position, cash generation, and capital-expenditure needs. In other words, you can expect its dividend payout to fluctuate over time, but if you believe that the clean-energy transition will underpin copper demand, then it's reasonable to expect higher prices over time and, ultimately, more cash and earnings for Southern Copper.
SIEGY Dividend Per Share (Annual) data by YCharts
3M
The industrial giant and Dividend Aristocrat has fallen out of favor with investors due to a few years of lackluster performance, most notably in its healthcare and consumer segments. However, it still has a collection of high-quality businesses, and CEO Mike Roman is busy restructuring the company. It's too early to definitively say that his efforts are paying off in a big way, but he has a lot of tools at his disposal in order to engineer a turnaround.
For example, despite declining operating margins over the years, 3M still generates substantial amounts of free cash flow (FCF), which gives Roman firepower to restructure the company and engage in acquisitions in order to buy growth businesses. Moreover, as you can see in the chart below (at the bottom), 3M's dividend is very well covered by its FCF.
Data by YCharts.
While there's no guarantee that Roman will get margins up again and revenue growth in the mid-single-digit percentage, the stock's lowly valuation -- 3M trades on just 16 times current FCF -- means there's plenty of upside to the stock. Meanwhile, the 3.4% dividend yield gives investors a decent payout.
All told, it's a favorable risk/reward situation for investors.
Siemens
The Munich-based industrial giant has been busy restructuring itself. Recently, it combined its 67% stake in renewable energy business Siemens Gamesa with its gas and power business and created a new company called Siemens Energy, which was spun off in September. Siemens retains a 35.1% stake in Siemens Energy
If this isn't complicated enough, Siemens also retains a 79% stake in a publicly listed subsidiary, Siemens Healthineers. Hopefully, the table below helps explain matters.
SIEMENS
EARNINGS BEFORE INTEREST, TAXES, AND AMORTIZATION 2020
ACTIVITY
KEY COMPETITORS
Digital Industries
3.25 billion euros
Factory and process automation, industrial software, motion control
ABB, Emerson Electric, Schneider Electric, Rockwell Automation, Dassault Systemes
Smart Infrastructure
1.3 billion euros
Electrical and building products, digital grid solutions, distribution systems
ABB, Honeywell, Johnson Controls, Schneider Electric
Mobility
822 million euros
Rail infrastructure, rolling stock, traffic systems.
Alstom, Bombardier
Siemens Healthineers*
2.18 billion euros
Imaging, diagnostics, advanced therapies
General Electric, Philips, Roche, Abbott Labs
Total Industrial
7.65 billion euros
n/a
n/a
Siemens Financial Services
345 million euros
n/a
n/a
Portfolio Companies
(504 million euros)
Energy businesses, logistics, commercial vehicles, mechanical systems
Assorted
Data source: Siemens presentations. *79% owned by Siemens. Siemens also retains a 35.1% stake in Siemens Energy.
Probably the best way to think about Siemens is as a company with two solidly growing businesses in Siemens Healthineers and mobility, combined with two more exciting business in digital industries and smart infrastructure. The former is a play on the increasing use of automation in the factory and process industries driven by digitization. Meanwhile, the latter has mid-single-digit growth potential, driven by investment in smart buildings, digital grid solutions, and energy distribution and transmission.
Siemens also generates loads of cash, with total company FCF in 2020 of 6.4 billion euros, or around 7.1% of its current market cap. In other words, it trades at around 14 times its current FCF.
The U.S. listing sports a 3.1% dividend yield. Given the company's growth prospects, FCF generation, and policy of paying 40%-60% of earnings in dividends, there's plenty of potential for dividend growth in the future.
10 stocks we like better than 3M
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*Stock Advisor returns as of November 20, 2020
Lee Samaha owns shares of Honeywell International and Siemens Aktiengesellschaft. The Motley Fool recommends 3M and Dassault Systemes. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The industrial giant and Dividend Aristocrat has fallen out of favor with investors due to a few years of lackluster performance, most notably in its healthcare and consumer segments. For example, despite declining operating margins over the years, 3M still generates substantial amounts of free cash flow (FCF), which gives Roman firepower to restructure the company and engage in acquisitions in order to buy growth businesses. Meanwhile, the latter has mid-single-digit growth potential, driven by investment in smart buildings, digital grid solutions, and energy distribution and transmission. | Digital Industries 3.25 billion euros Factory and process automation, industrial software, motion control ABB, Emerson Electric, Schneider Electric, Rockwell Automation, Dassault Systemes Smart Infrastructure 1.3 billion euros Electrical and building products, digital grid solutions, distribution systems ABB, Honeywell, Johnson Controls, Schneider Electric Mobility 822 million euros Rail infrastructure, rolling stock, traffic systems. Alstom, Bombardier Siemens Healthineers* 2.18 billion euros Imaging, diagnostics, advanced therapies General Electric, Philips, Roche, Abbott Labs Total Industrial 7.65 billion euros n/a n/a Siemens Financial Services 345 million euros n/a n/a Portfolio Companies (504 million euros) Energy businesses, logistics, commercial vehicles, mechanical systems Assorted Data source: Siemens presentations. Meanwhile, the latter has mid-single-digit growth potential, driven by investment in smart buildings, digital grid solutions, and energy distribution and transmission. | Siemens retains a 35.1% stake in Siemens Energy If this isn't complicated enough, Siemens also retains a 79% stake in a publicly listed subsidiary, Siemens Healthineers. Digital Industries 3.25 billion euros Factory and process automation, industrial software, motion control ABB, Emerson Electric, Schneider Electric, Rockwell Automation, Dassault Systemes Smart Infrastructure 1.3 billion euros Electrical and building products, digital grid solutions, distribution systems ABB, Honeywell, Johnson Controls, Schneider Electric Mobility 822 million euros Rail infrastructure, rolling stock, traffic systems. Alstom, Bombardier Siemens Healthineers* 2.18 billion euros Imaging, diagnostics, advanced therapies General Electric, Philips, Roche, Abbott Labs Total Industrial 7.65 billion euros n/a n/a Siemens Financial Services 345 million euros n/a n/a Portfolio Companies (504 million euros) Energy businesses, logistics, commercial vehicles, mechanical systems Assorted Data source: Siemens presentations. | Siemens The Munich-based industrial giant has been busy restructuring itself. Alstom, Bombardier Siemens Healthineers* 2.18 billion euros Imaging, diagnostics, advanced therapies General Electric, Philips, Roche, Abbott Labs Total Industrial 7.65 billion euros n/a n/a Siemens Financial Services 345 million euros n/a n/a Portfolio Companies (504 million euros) Energy businesses, logistics, commercial vehicles, mechanical systems Assorted Data source: Siemens presentations. Given the company's growth prospects, FCF generation, and policy of paying 40%-60% of earnings in dividends, there's plenty of potential for dividend growth in the future. |
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