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32900.0 | 2019-10-15 00:00:00 UTC | Noteworthy Tuesday Option Activity: WFC, HSIC, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-wfc-hsic-abt-2019-10-15 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Wells Fargo & Co (Symbol: WFC), where a total of 110,122 contracts have traded so far, representing approximately 11.0 million underlying shares. That amounts to about 49% of WFC's average daily trading volume over the past month of 22.5 million shares. Particularly high volume was seen for the $50 strike call option expiring November 15, 2019, with 14,834 contracts trading so far today, representing approximately 1.5 million underlying shares of WFC. Below is a chart showing WFC's trailing twelve month trading history, with the $50 strike highlighted in orange:
Henry Schein Inc (Symbol: HSIC) options are showing a volume of 4,264 contracts thus far today. That number of contracts represents approximately 426,400 underlying shares, working out to a sizeable 47.8% of HSIC's average daily trading volume over the past month, of 891,895 shares. Particularly high volume was seen for the $60 strike put option expiring October 18, 2019, with 1,200 contracts trading so far today, representing approximately 120,000 underlying shares of HSIC. Below is a chart showing HSIC's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,202 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 45.4% of ABT's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $81 strike put option expiring October 18, 2019, with 1,647 contracts trading so far today, representing approximately 164,700 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $81 strike highlighted in orange:
For the various different available expirations for WFC options, HSIC 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 $81 strike put option expiring October 18, 2019, with 1,647 contracts trading so far today, representing approximately 164,700 underlying shares of ABT. Below is a chart showing HSIC's trailing twelve month trading history, with the $60 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,202 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 45.4% of ABT's average daily trading volume over the past month, of 4.0 million shares. | Below is a chart showing HSIC's trailing twelve month trading history, with the $60 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,202 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 45.4% of ABT's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $81 strike put option expiring October 18, 2019, with 1,647 contracts trading so far today, representing approximately 164,700 underlying shares of ABT. | That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 45.4% of ABT's average daily trading volume over the past month, of 4.0 million shares. Below is a chart showing HSIC's trailing twelve month trading history, with the $60 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,202 contracts thus far today. Especially high volume was seen for the $81 strike put option expiring October 18, 2019, with 1,647 contracts trading so far today, representing approximately 164,700 underlying shares of ABT. | That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 45.4% of ABT's average daily trading volume over the past month, of 4.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $81 strike highlighted in orange: For the various different available expirations for WFC options, HSIC options, or ABT options, visit StockOptionsChannel.com. Below is a chart showing HSIC's trailing twelve month trading history, with the $60 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 18,202 contracts thus far today. |
32901.0 | 2019-10-14 00:00:00 UTC | Abbott: Omada To Provide FreeStyle Libre As Exclusive CGM - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott%3A-omada-to-provide-freestyle-libre-as-exclusive-cgm-quick-facts-2019-10-14 | nan | nan | (RTTNews) - Abbott (ABT) and Omada Health have partnered to integrate Abbott's FreeStyle Libre system, a continuous glucose monitoring or CGM technology, with Omada Health's digital care program. Through the collaboration, the companies are creating a personalized care program that combines Abbott's CGM technology with Omada Health's professional coaching and digital platform to provide on-the-go care to people with Type 2 diabetes.
Omada Health will offer the integrated solution to employers and health plans. Abbott and Omada Health's integrated solution will allow patients to track progress and receive recommendations from their assigned certified diabetes educator coaches through online chats in Omada's app.
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) and Omada Health have partnered to integrate Abbott's FreeStyle Libre system, a continuous glucose monitoring or CGM technology, with Omada Health's digital care program. Through the collaboration, the companies are creating a personalized care program that combines Abbott's CGM technology with Omada Health's professional coaching and digital platform to provide on-the-go care to people with Type 2 diabetes. Abbott and Omada Health's integrated solution will allow patients to track progress and receive recommendations from their assigned certified diabetes educator coaches through online chats in Omada's app. | (RTTNews) - Abbott (ABT) and Omada Health have partnered to integrate Abbott's FreeStyle Libre system, a continuous glucose monitoring or CGM technology, with Omada Health's digital care program. Through the collaboration, the companies are creating a personalized care program that combines Abbott's CGM technology with Omada Health's professional coaching and digital platform to provide on-the-go care to people with Type 2 diabetes. Abbott and Omada Health's integrated solution will allow patients to track progress and receive recommendations from their assigned certified diabetes educator coaches through online chats in Omada's app. | (RTTNews) - Abbott (ABT) and Omada Health have partnered to integrate Abbott's FreeStyle Libre system, a continuous glucose monitoring or CGM technology, with Omada Health's digital care program. Through the collaboration, the companies are creating a personalized care program that combines Abbott's CGM technology with Omada Health's professional coaching and digital platform to provide on-the-go care to people with Type 2 diabetes. 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) and Omada Health have partnered to integrate Abbott's FreeStyle Libre system, a continuous glucose monitoring or CGM technology, with Omada Health's digital care program. Through the collaboration, the companies are creating a personalized care program that combines Abbott's CGM technology with Omada Health's professional coaching and digital platform to provide on-the-go care to people with Type 2 diabetes. Omada Health will offer the integrated solution to employers and health plans. |
32902.0 | 2019-10-13 00:00:00 UTC | 3 Top Healthcare Dividend Stocks That Are Great Picks for Retirees | ABT | https://www.nasdaq.com/articles/3-top-healthcare-dividend-stocks-that-are-great-picks-for-retirees-2019-10-13 | nan | nan | If you're near retirement or already retired, dividend stocks undoubtedly rank high on your list of investing alternatives. The healthcare sector is a great place to look for dividend stocks with aging demographics trends driving long-term growth.
But which healthcare dividend stocks provide high yields plus reasonable growth prospects? Here's why AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Pfizer (NYSE: PFE) stand out.
Image source: Getty Images.
1. AbbVie
AbbVie's dividend yield of over 5.8% ranks as one of the highest among healthcare stocks. Even better, the drugmaker has increased its dividend by 168% since it was spun off from Abbott Labs in 2013.
The primary concern that some investors have with AbbVie is that the company is highly dependent on sales of Humira, which now faces biosimilar competition in Europe and will do so in the bigger U.S. market beginning in 2023. But AbbVie has been planning for this scenario for years and should be in a position to keep the dividends flowing while still delivering moderate growth.
Current blockbuster cancer drugs Imbruvica and Venclexta, both of which continue to generate strong growth, are a key part of AbbVie's strategy. Newly approved Rinvoq and Skyrizi are also critical to the company's growth prospects. Market researcher EvaluatePharma ranked the immunology drugs No. 2 and No. 3, respectively, on its list of top new drugs approved in 2019.
There's now another twist to AbbVie's approach to reducing its dependence on Humira: the pending acquisition of Allergan. Although some investors have been skeptical about the deal, at least one Wall Street analyst, Citigroup's Andrew Baum, is optimistic, stating that "AbbVie will extract significant shareholder value from Allergan's franchises."
2. Gilead Sciences
Gilead Sciences offers an attractive dividend that currently yields north of 4%. The big biotech initiated its dividend program in 2015 and has increased the payout by nearly 47% since then.
The past few years have been challenging for Gilead as revenue and earnings sank because of plunging sales for its hepatitis C drugs. But the company appears to have turned the corner now, with hep-C revenue stabilizing in recent quarters. This has changed the focus to Gilead's HIV franchise.
Biktarvy appears destined to become the best-selling HIV drug in history. Gilead also thinks that the potential for Descovy as preexposure prophylaxis (PrEP) therapy for HIV is significant. The biotech's pipeline includes a long-acting HIV drug in early stage testing, GS-6207, that could be another huge success story.
Perhaps the most intriguing opportunities for Gilead right now, though, are the company's efforts beyond the antiviral arena. The acquisition of Kite Pharma in 2017 has made Gilead a leader in cancer cell therapy. Gilead has high hopes for immunology drug filgotinib, which it plans to file for approval in the U.S. this year. The biotech is also evaluating a couple of drugs targeting the treatment of nonalcoholic steatohepatitis.
3. Pfizer
Pfizer is a longtime favorite for retirees. The big pharma company's dividend yield of over 4% should keep the stock near the top of the list for income-seeking investors. Pfizer continues to prioritize its dividend program, boosting its dividend by 125% over the past 10 years.
Probably the biggest knock against Pfizer is that several of its former top-selling drugs have lost patent exclusivity, notably including Lyrica. Declining sales for these drugs present a threat to the company's near-term growth prospects. However, Pfizer is taking concrete steps to address this issue.
The company plans to merge its Upjohn unit, which is home to the drugs that have lost patent protection, with Mylan. Pfizer CEO Albert Bourla expects that Pfizer will be able to "deliver revenue and adjusted diluted EPS [earnings per share] growth through the mid-2020s that is among the industry leaders" once this transaction closes. This growth will be fueled by blockbusters such as breast cancer drug Ibrance and blood thinner Eliquis as well as anticipated blockbusters like rare-disease drug Vyndaquel.
Don't worry about getting those great dividend payments after the Upjohn-Mylan deal is completed. Although Pfizer's dividend will almost certainly decline with Upjohn no longer in the picture, the new entity resulting from the merger will also pay a dividend. Pfizer shareholders will receive shares in the merged company, with the total amount of dividend payments received remaining at least at the current level of Pfizer's dividend.
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Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Mylan. 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 primary concern that some investors have with AbbVie is that the company is highly dependent on sales of Humira, which now faces biosimilar competition in Europe and will do so in the bigger U.S. market beginning in 2023. Current blockbuster cancer drugs Imbruvica and Venclexta, both of which continue to generate strong growth, are a key part of AbbVie's strategy. Although some investors have been skeptical about the deal, at least one Wall Street analyst, Citigroup's Andrew Baum, is optimistic, stating that "AbbVie will extract significant shareholder value from Allergan's franchises." | But which healthcare dividend stocks provide high yields plus reasonable growth prospects? The big pharma company's dividend yield of over 4% should keep the stock near the top of the list for income-seeking investors. The Motley Fool owns shares of and recommends Gilead Sciences. | AbbVie AbbVie's dividend yield of over 5.8% ranks as one of the highest among healthcare stocks. Pfizer shareholders will receive shares in the merged company, with the total amount of dividend payments received remaining at least at the current level of Pfizer's dividend. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. | AbbVie AbbVie's dividend yield of over 5.8% ranks as one of the highest among healthcare stocks. The big biotech initiated its dividend program in 2015 and has increased the payout by nearly 47% since then. The big pharma company's dividend yield of over 4% should keep the stock near the top of the list for income-seeking investors. |
32903.0 | 2019-10-09 00:00:00 UTC | Health Care Sector Update for 10/09/2019: OCGN, EYEG, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-10-09-2019%3A-ocgn-eyeg-jnj-pfe-abt-mrk-amgn-2019-10-09 | nan | nan | Top Health Care Stocks:
JNJ: -1.02%
PFE: +0.34%
ABT: Flat
MRK: +0.50%
AMGN: Flat
Health care heavyweights were mixed pre-bell Wednesday.
Stocks moving on news include:
(+) Ocugen (OCGN), which was surging by around 25% after the biopharmaceutical firm said its board has authorized the repurchase of up to $2 million in common stock.
(+) Eyegate Pharmaceuticals (EYEG) was more than 7% higher as it commenced enrollment for a follow-on pilot study focused on the company's ocular bandage gel for use in treating punctate epitheliopathies.
In other sector news:
(-) Johnson & Johnson (JNJ) was ordered to pay $8 billion in punitive damages by a Philadelphia Court of Common Pleas jury after a man sued the company for failing to warn that its anti-psychotic drug Risperdal, if used by young men, could cause gynecomastia, or the development of enlarged breasts in males, Reuters reported. Johnson & Johnson was recently down more than 1%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT: Flat AMGN: Flat Health care heavyweights were mixed pre-bell Wednesday. (+) Eyegate Pharmaceuticals (EYEG) was more than 7% higher as it commenced enrollment for a follow-on pilot study focused on the company's ocular bandage gel for use in treating punctate epitheliopathies. | ABT: Flat Top Health Care Stocks: AMGN: Flat Health care heavyweights were mixed pre-bell Wednesday. | ABT: Flat AMGN: Flat Health care heavyweights were mixed pre-bell Wednesday. Stocks moving on news include: (+) Ocugen (OCGN), which was surging by around 25% after the biopharmaceutical firm said its board has authorized the repurchase of up to $2 million in common stock. | ABT: Flat Top Health Care Stocks: AMGN: Flat Health care heavyweights were mixed pre-bell Wednesday. |
32904.0 | 2019-10-08 00:00:00 UTC | What Led To 60% Growth In Intuitive Surgical's Stock Over The Last Two Years? | ABT | https://www.nasdaq.com/articles/what-led-to-60-growth-in-intuitive-surgicals-stock-over-the-last-two-years-2019-10-08 | nan | nan | Intuitive Surgical’s (NASDAQ:ISRG) stock price has grown around 60% over the last two years or so, led by growth in revenues and expansion of earnings multiple, partly offset by a slight decline in net income margin. In this note we discuss these factors that impacted Intuitive Surgical’s share price over the last two years. You can look at our interactive dashboard analysis ~ Why Did Intuitive Surgical’s Stock Grow >60% Over The Last Two Years? ~ for more details on the expected performance of the company. In addition, you can see more of our data for healthcare companies here.Intuitive Surgical’s Stock Price Grew 66% From $312 By The End of Q2 2017 To $520 By The End of Q2 2019, Led By Growth In Revenue, P/E Multiple Expansion, And A Decline In No. of Shares, Partly Offset By A Slight Decline In Margins.
Intuitive Surgical generates its revenues primarily from three sources: instruments & accessories, systems, and services.
Instruments & accessories sales includes EndoWrist devices, which have tools such as forceps and scissors attached to them, in order to provide better control to surgeons. Accessories include sterile drapes, camera heads, vision products, light guides, and other devices.
System sales refers to da Vinci surgical systems, which are computer assisted systems that help surgeons perform minimally invasive surgeries by controlling the device from a console.
Services includes full-time support to its customers, from installing the surgical systems to repairing and maintaining them.
Intuitive Surgical’s total revenues grew from $3.1 billion in 2017 to $3.7 billion in 2018, and they will likely grow to $4.3 billion in 2019.
Instruments & accessories revenue grew from $1.6 billion in 2017 to $2.0 billion in 2018, and an estimated $2.3 billion in 2019. This can be attributed to the company’s growing installed base, which has been trending higher of late, and we expect this trend to continue.
Systems revenue grew from under $1.0 billion in 2017 to $1.1 billion in 2018, and an estimated $1.3 billion in 2019. Systems revenue growth is being led by higher demand for surgical robotic systems, given the widened scope of procedures performed. The company has guided for 15% to 17% procedure growth in 2019.
Services revenue grew from $573 million in 2017 to $635 million in 2018, and an estimated $706 million in 2019, led by growth in the company’s installed base.
#2. Adjusted Net Income Grew At A Slightly Slower Pace Compared To Intuitive Surgical’s Revenues, Led By Margin Contraction.
Intuitive Surgical’s adjusted net income grew from $1.1 billion in 2017 to $1.3 billion in 2018, and an estimated $1.4 billion in 2019.
This can be attributed to higher revenues, partly offset by a slight expected decline in net income margin.
Adjusted net income margin grew from 33.7% in 2017 to around 35.0% in 2018, and we forecast it to be 33.1% in 2019.
#2.1 Total Expenses Could Increase From $2.0 Billion In 2017 To $2.9 Billion In 2019.
Intuitive Surgical’s total expenses grew from $2.1 billion in 2017 to $2.4 billion in 2018, and an estimated $2.9 billion in 2019, while total expenses as % of revenue could increase slightly from 66.3% in 2017 to 66.9% in 2019.
COGS as % of revenue has hovered around the 30% mark in the recent past, and we expect it to remain around the same level in 2019.
SG&A as % of revenue grew from 25.8% in 2017 to 26.5% in 2018, and it is estimated to be around 26.3% in 2019.
R&D as % of revenue grew from 10.5% in 2017 to 11.2% in 2018, and it is estimated to be 11.4% in 2019.
Interest & Other Expenses as % of revenue declined from -1.3% in 2017 to -2.2% in 2018, and it is estimated to be around -2.3% in 2019.
Effective tax rate declined from 39.3% in 2017 to 12.1% in 2018, and it is estimated to be 20.5% in 2019.
Non-GAAP adjustments as % of revenue grew from -12.3% in 2017 to -4.8% in 2018, and it is estimated to be -5.5% in 2019.
#3. Price To Earnings Multiple For Intuitive Surgical Grew From 34.4x In 2017 To 43.3x In 2019 (End of Q2).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Intuitive Surgical’s (NASDAQ:ISRG) stock price has grown around 60% over the last two years or so, led by growth in revenues and expansion of earnings multiple, partly offset by a slight decline in net income margin. Instruments & accessories sales includes EndoWrist devices, which have tools such as forceps and scissors attached to them, in order to provide better control to surgeons. Adjusted Net Income Grew At A Slightly Slower Pace Compared To Intuitive Surgical’s Revenues, Led By Margin Contraction. | Intuitive Surgical’s (NASDAQ:ISRG) stock price has grown around 60% over the last two years or so, led by growth in revenues and expansion of earnings multiple, partly offset by a slight decline in net income margin. This can be attributed to higher revenues, partly offset by a slight expected decline in net income margin. Intuitive Surgical’s total expenses grew from $2.1 billion in 2017 to $2.4 billion in 2018, and an estimated $2.9 billion in 2019, while total expenses as % of revenue could increase slightly from 66.3% in 2017 to 66.9% in 2019. | Intuitive Surgical’s total revenues grew from $3.1 billion in 2017 to $3.7 billion in 2018, and they will likely grow to $4.3 billion in 2019. Intuitive Surgical’s adjusted net income grew from $1.1 billion in 2017 to $1.3 billion in 2018, and an estimated $1.4 billion in 2019. Intuitive Surgical’s total expenses grew from $2.1 billion in 2017 to $2.4 billion in 2018, and an estimated $2.9 billion in 2019, while total expenses as % of revenue could increase slightly from 66.3% in 2017 to 66.9% in 2019. | Intuitive Surgical’s (NASDAQ:ISRG) stock price has grown around 60% over the last two years or so, led by growth in revenues and expansion of earnings multiple, partly offset by a slight decline in net income margin. Intuitive Surgical’s adjusted net income grew from $1.1 billion in 2017 to $1.3 billion in 2018, and an estimated $1.4 billion in 2019. R&D as % of revenue grew from 10.5% in 2017 to 11.2% in 2018, and it is estimated to be 11.4% in 2019. |
32905.0 | 2019-10-08 00:00:00 UTC | What's Driving Medtronic's Revenue Growth? | ABT | https://www.nasdaq.com/articles/whats-driving-medtronics-revenue-growth-2019-10-08 | nan | nan | Medtronic’s (NYSE:MDT) revenue has grown around 6% over the last three years. This can be attributed to steady growth in its Restorative Therapies Group, Cardiac & Vascular Group, and Diabetes Group, partly offset by a decline in the Minimally Invasive Therapies Group, due to certain divestures. In this note we discuss the key sources of revenue for Medtronic, revenue trend, and forecast. You can view our interactive dashboard analysis ~ MDT Revenues: How Does Medtronic Make Money? ~ for more details. In addition, you can see more of our data for Healthcare companies here.
Medtronic Generates Its Revenue Primarily From Sales of Medical Devices. Its Largest Segments In Terms of Revenues Is Cardiac & Vascular Group, Which Accounted For 38% of Total Revenues In Fiscal 2019.
Cardiac & Vascular Group includes cardiac rhythm management devices for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. It also includes coronary balloons, drug-coated balloons, and thoracic stent graft systems, among others.
Minimally Invasive Therapies Group includes devices and therapies for neurological problems and imaging systems among other products.
Restorative Therapies Group primarily includes devices and implants for conditions relating to the spine, musculoskeletal system, brain, and nerves.
Diabetes Group includes sales of diabetes management products, which primarily consist of insulin pumps, and continuous glucose monitoring systems.
Medtronic’s Business Model
What Need Does It Serve?
Medtronic primarily serves the medical devices market. These medical devices are used primarily by various healthcare institutions in over 150 countries.
The company reports its revenues under four segments, Cardiac and Vascular Group, which includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, Aortic & Peripheral Vascular sub-segments. Minimally Invasive Technologies Group, includes Surgical Solutions, Patient Monitoring and Recovery sub-segments, Restorative Therapies Group, which includes Spine, Neuromodulation, Neurovascular, Surgical Technologies, and Diabetes Group.
Who Pays To Medtronic?
Hospitals and clinics.
Various surgeons, including ENT surgeons, neurosurgeons, spinal surgeons, cardiovascular surgeons, orthopedic surgeons, among others.
Neurologists, pain management specialists, anesthesiologists, physiatrists, electrophysiologists, implanting cardiologists, heart failure specialists, diabetologists, endocrinologists, and internists.
Which Other Players Compete With Medtronic?
Other companies that manufacture medical devices, include Abbott Labs, Johnson & Johnson, Boston Scientific, and Intuitive Surgical, among others.
Medtronic’s total revenues grew from $28.8 billion in fiscal 2016 to $30.6 billion in fiscal 2019.
This represents an average annual growth rate of 2.0%.
We forecast the revenues to be around $33.6 billion by fiscal 2021, reflecting an average annual growth rate of 4.8%.
Cardiac & vascular group revenue grew from $10.2 billion in fiscal 2016 to $11.5 billion in fiscal 2019, and it could grow to $12.2 billion in fiscal 2021, primarily led by higher Evolut PRO valve sales.
Minimally invasive therapies group revenue declined from $9.6 billion in fiscal 2016 to $8.5 billion in fiscal 2019, but it could grow to $9.4 billion in fiscal 2021, The decline earlier was due to the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. Looking forward, the growth will likely be led by higher demand for its patient monitoring products, along with sealing instruments, and advanced stapling products, a trend seen in the recent quarters.
Restorative therapies group revenue increased from $7.2 billion in fiscal 2016 to $8.2 billion in fiscal 2019, and it could grow to $9.1 billion in fiscal 2021, primarily led by higher demand for its brain and pain therapies, which have seen strong growth in the recent quarters, led by its Intellis spinal cord stimulation platform, and StealthStation surgical navigation systems.
Diabetes group revenue also increased from $1.9 billion in fiscal 2016 to $2.4 billion in fiscal 2019, and we estimate it to grow to $2.8 billion in fiscal 2021, benefiting from the expansion of 670G, along with expected launch of 780G, which is an advanced version of its hybrid closed-loop system.
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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. | You can view our interactive dashboard analysis ~ MDT Revenues: How Does Medtronic Make Money? Restorative Therapies Group primarily includes devices and implants for conditions relating to the spine, musculoskeletal system, brain, and nerves. We forecast the revenues to be around $33.6 billion by fiscal 2021, reflecting an average annual growth rate of 4.8%. | The company reports its revenues under four segments, Cardiac and Vascular Group, which includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, Aortic & Peripheral Vascular sub-segments. Minimally Invasive Technologies Group, includes Surgical Solutions, Patient Monitoring and Recovery sub-segments, Restorative Therapies Group, which includes Spine, Neuromodulation, Neurovascular, Surgical Technologies, and Diabetes Group. Restorative therapies group revenue increased from $7.2 billion in fiscal 2016 to $8.2 billion in fiscal 2019, and it could grow to $9.1 billion in fiscal 2021, primarily led by higher demand for its brain and pain therapies, which have seen strong growth in the recent quarters, led by its Intellis spinal cord stimulation platform, and StealthStation surgical navigation systems. | Cardiac & vascular group revenue grew from $10.2 billion in fiscal 2016 to $11.5 billion in fiscal 2019, and it could grow to $12.2 billion in fiscal 2021, primarily led by higher Evolut PRO valve sales. Minimally invasive therapies group revenue declined from $9.6 billion in fiscal 2016 to $8.5 billion in fiscal 2019, but it could grow to $9.4 billion in fiscal 2021, The decline earlier was due to the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. Restorative therapies group revenue increased from $7.2 billion in fiscal 2016 to $8.2 billion in fiscal 2019, and it could grow to $9.1 billion in fiscal 2021, primarily led by higher demand for its brain and pain therapies, which have seen strong growth in the recent quarters, led by its Intellis spinal cord stimulation platform, and StealthStation surgical navigation systems. | You can view our interactive dashboard analysis ~ MDT Revenues: How Does Medtronic Make Money? Medtronic Generates Its Revenue Primarily From Sales of Medical Devices. We forecast the revenues to be around $33.6 billion by fiscal 2021, reflecting an average annual growth rate of 4.8%. |
32906.0 | 2019-10-08 00:00:00 UTC | How Much Can Boston Scientific Revenues Grow Over The Next Three Years? | ABT | https://www.nasdaq.com/articles/how-much-can-boston-scientific-revenues-grow-over-the-next-three-years-2019-10-08 | nan | nan | Boston Scientific (NYSE:BSX) generates its revenue primarily from sales of medical devices, and it reports revenues under three segments – Cardiovascular, Rhythm & Neuro, and MedSurg. Its largest segment in terms of revenues is Cardiovascular, which accounted for 38% of total revenues in 2018. In this note we discuss the revenue segments of Boston Scientific, their historical performance, and expected trajectory over the next two years. You can view our interactive dashboard analysis ~ BSX Revenues: How Does Boston Scientific Make Money? ~ for more details on the key drivers of the company’s expected performance. In addition, you can see more of our data for Healthcare companies here.
Cardiovascular Is The Largest Segment For Boston Scientific.
Boston Scientific generates its revenues primarily from three segments ~ MedSurg, Cardiovascular, and Rhythm & Neuro.
MedSurg division comprises of medical devices designed and manufactured for Endoscopy, and Urology & Pelvic Health.
Cardiovascular division comprises of products designed for interventional cardiology and peripheral inventions.
Rhythm & Neuro segment primarily includes Cardiac Rhythm Management (Pacemakers and Defibrillators) products that are used to treat abnormal heart conditions, along with Neuromodulation products, which include stimulator systems used for spine and brain related conditions.
Boston Scientific Business Model
What Need Does It Serve?
Boston Scientific primarily serves the medical devices market. These medical devices are used primarily by various healthcare institutions in over 125 countries.
The company reports its revenues under three segments, Cardiovascular, which includes devices for Interventional Cardiology and Peripheral Interventions, Rhythm & Neuro, which includes devices for Cardiac Rhythm Management, Electrophysiology and Neuromodulation, and MedSurg, which includes devices for Endoscopy and Urology & Pelvic Health.
Who Pays To Boston Scientific?
Hospitals, clinics, outpatient facilities, medical offices in around 100 countries in the U.S, Europe, Japan, and Asia Pacific.
Who Are The Competitors For Boston Scientific?
Other companies that manufacture medical devices, include Abbott Labs, Johnson & Johnson, Medtronic, and Intuitive Surgical among others.
Boston Scientific’s Total Revenue Has Grown 33% (2014-2018), And It Could Grow Another 19% By 2021.
Boston Scientific’s total revenues grew from $7.4 billion in 2014 to $9.8 billion in 2018.
This represents an average annual growth rate of 7.5%.
We forecast the revenues to be around $11.7 billion by 2021, reflecting an average annual growth rate of 6.0%.
All Segments Will Likely See Steady Revenue Growth In Coming Years
Cardio & Neuro revenues grew from $2.9 billion in 2014 to $3.8 billion in 2018, and it is estimated to be $4.4 billion in 2021. The growth in the recent past was led by Eluvia DS launch in the U.S., and Eluvia sales should continue to drive the future growth, as physicians continue to endorse Eluvia.
MedSurg segment revenues grew from $1.9 billion in 2014 to $3.0 billion in 2018, and it will likely grow to $3.7 billion in 2021. This growth will likely be led by higher sales in the endoscopy business, which is seeing strong demand for Resolution 360 Clips, SpyGlass DS Direct Visualization System, as well as Acquire Endoscopic Ultrasound Fine Needle Biopsy Device.
Rhythm & Neuro revenues grew from $2.6 billion in 2014 to $3.0 billion in 2018, and it will likely grow to $3.6 billion by 2021. The segment will likely benefit from continued growth in Neuromodulation and Electrophysiology, primarily led by Spectra WaveWriter Spinal Cord Stimulator (SCS) Systems, and Vercise deep brain stimulation platforms, which allows the combination of multiple treatment options in a single device.
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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 this note we discuss the revenue segments of Boston Scientific, their historical performance, and expected trajectory over the next two years. Hospitals, clinics, outpatient facilities, medical offices in around 100 countries in the U.S, Europe, Japan, and Asia Pacific. This growth will likely be led by higher sales in the endoscopy business, which is seeing strong demand for Resolution 360 Clips, SpyGlass DS Direct Visualization System, as well as Acquire Endoscopic Ultrasound Fine Needle Biopsy Device. | Boston Scientific (NYSE:BSX) generates its revenue primarily from sales of medical devices, and it reports revenues under three segments – Cardiovascular, Rhythm & Neuro, and MedSurg. MedSurg division comprises of medical devices designed and manufactured for Endoscopy, and Urology & Pelvic Health. The company reports its revenues under three segments, Cardiovascular, which includes devices for Interventional Cardiology and Peripheral Interventions, Rhythm & Neuro, which includes devices for Cardiac Rhythm Management, Electrophysiology and Neuromodulation, and MedSurg, which includes devices for Endoscopy and Urology & Pelvic Health. | Boston Scientific (NYSE:BSX) generates its revenue primarily from sales of medical devices, and it reports revenues under three segments – Cardiovascular, Rhythm & Neuro, and MedSurg. The company reports its revenues under three segments, Cardiovascular, which includes devices for Interventional Cardiology and Peripheral Interventions, Rhythm & Neuro, which includes devices for Cardiac Rhythm Management, Electrophysiology and Neuromodulation, and MedSurg, which includes devices for Endoscopy and Urology & Pelvic Health. All Segments Will Likely See Steady Revenue Growth In Coming Years Cardio & Neuro revenues grew from $2.9 billion in 2014 to $3.8 billion in 2018, and it is estimated to be $4.4 billion in 2021. | Boston Scientific (NYSE:BSX) generates its revenue primarily from sales of medical devices, and it reports revenues under three segments – Cardiovascular, Rhythm & Neuro, and MedSurg. Cardiovascular Is The Largest Segment For Boston Scientific. Boston Scientific generates its revenues primarily from three segments ~ MedSurg, Cardiovascular, and Rhythm & Neuro. |
32907.0 | 2019-10-07 00:00:00 UTC | Health Care Sector Update for 10/07/2019: JNJ, ABT, PFE, MRK, AMGN, MREO, XENT, CAPR | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-10-07-2019%3A-jnj-abt-pfe-mrk-amgn-mreo-xent-capr-2019-10-07 | nan | nan | Top Health Care Stocks:
JNJ: -0.16%
PFE: -0.19%
ABT: +0.01%
MRK: -0.19%
AMGN: Flat
Most health care giants were mixed pre-bell Monday.
Stocks moving on news include:
(+) Mereo BioPharma Group (MREO), which was trading 10% higher after the company said the US Food and Drug Administration granted fast-track designation to navicixizumab to treat ovarian, peritoneal or fallopian-tube cancer in patients who have received at least three prior therapies including bevacizumab.
(-) Intersect ENT (XENT), which was down more than 13% pre-bell after the company posted unuccessful results on a study of it drug-coated sinus balloon dilating the frontal sinus ostium to lower post-balloon dilation edema through the localized delivery of steroid directly to dilated tissue.
(-) Capricor Therapeutics (CAPR) was 16% lower after reporting additional positive six-month interim data from HOPE-2, its ongoing phase 2 clinical trial of its lead investigational product, CAP-1002, for the treatment of Duchenne muscular dystrophy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AMGN: Flat Most health care giants were mixed pre-bell Monday. Stocks moving on news include: (+) Mereo BioPharma Group (MREO), which was trading 10% higher after the company said the US Food and Drug Administration granted fast-track designation to navicixizumab to treat ovarian, peritoneal or fallopian-tube cancer in patients who have received at least three prior therapies including bevacizumab. (-) Capricor Therapeutics (CAPR) was 16% lower after reporting additional positive six-month interim data from HOPE-2, its ongoing phase 2 clinical trial of its lead investigational product, CAP-1002, for the treatment of Duchenne muscular dystrophy. | Top Health Care Stocks: AMGN: Flat Most health care giants were mixed pre-bell Monday. (-) Intersect ENT (XENT), which was down more than 13% pre-bell after the company posted unuccessful results on a study of it drug-coated sinus balloon dilating the frontal sinus ostium to lower post-balloon dilation edema through the localized delivery of steroid directly to dilated tissue. | Stocks moving on news include: (+) Mereo BioPharma Group (MREO), which was trading 10% higher after the company said the US Food and Drug Administration granted fast-track designation to navicixizumab to treat ovarian, peritoneal or fallopian-tube cancer in patients who have received at least three prior therapies including bevacizumab. (-) Intersect ENT (XENT), which was down more than 13% pre-bell after the company posted unuccessful results on a study of it drug-coated sinus balloon dilating the frontal sinus ostium to lower post-balloon dilation edema through the localized delivery of steroid directly to dilated tissue. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Health Care Stocks: AMGN: Flat Most health care giants were mixed pre-bell Monday. Stocks moving on news include: (+) Mereo BioPharma Group (MREO), which was trading 10% higher after the company said the US Food and Drug Administration granted fast-track designation to navicixizumab to treat ovarian, peritoneal or fallopian-tube cancer in patients who have received at least three prior therapies including bevacizumab. |
32908.0 | 2019-10-05 00:00:00 UTC | 3 Great Dividend Stocks That Aren't Founder-Led | ABT | https://www.nasdaq.com/articles/3-great-dividend-stocks-that-arent-founder-led-2019-10-05 | nan | nan | You've probably heard plenty of stories about the advantages of founder-led companies. And for good reason. The founders of companies who stay on tend to have skin in the game, aligning their interests with those of shareholders. They also usually know very well the industries in which their companies operate. These factors often contribute to the stocks delivering great returns over the long run.
But a company doesn't have to be led by a founder for its stock to be a winner for long-term investors. Three great dividend stocks that aren't but have handily beaten the overall market in total return over the last five and 10 years are Abbott Laboratories (NYSE: ABT), Medtronic (NYSE: MDT), and Texas Instruments (NASDAQ: TXN).
Image source: Getty Images.
1. Abbott Labs
It would be a medical miracle for Abbott Labs CEO Miles White to have founded the healthcare giant. Abbott's history dates all the way back to 1888. But while White didn't found Abbott Labs, he has been with the company for 35 years and has served as its CEO since 1999.
Abbott has been a huge winner for investors during White's time at the helm. Those winning ways haven't stopped: Over the last five years, Abbott has delivered a total return including dividends of 118%, nearly double that of the S&P 500 during the same time period. White has also led the company to continue its remarkable streak of 47 years of consecutive annual dividend increases, securing a spot among the elite group of stocks known as Dividend Aristocrats. Abbott's dividend yield currently stands at 1.53%.
The company hasn't just received recognition from the investment community. Abbott ranked on Forbes' list of the most admired companies every year since 1984. And it has been the No. 1 most admired medical device company for each of the last six years.
Probably the biggest reason for Abbott's strong track record under Miles White's leadership has been the company's commitment to innovation. Abbott has invested in internal research and development as well as key acquisitions over the years. The company's innovation has led to tremendously successful products including the Freestyle Libre continuous glucose monitoring (CGM) system and the MitraClip medical device for treating patients who experience mitral valve regurgitation.
2. Medtronic
Medtronic was founded by two brothers-in-law, Earl Bakken and Palmer Hermundslie, in 1949. Current CEO Omar Ishrak didn't join the medical device maker until 2011. Like Miles White at Abbott, though, Ishrak has kept shareholder interests at the forefront.
Since Ishrak took over as CEO, Medtronic's total return has trounced that of the S&P 500. It's been a similar story over the last five years, with Medtronic delivering a total return of 95%. Ishrak has also prioritized the dividend program. This summer, Medtronic announced its 42nd consecutive annual dividend increase. Its dividend now yields nearly 2%.
During Ishrak's tenure, Medtronic launched multiple new products that contributed to the company's success. That trend is about to continue with Medtronic's plans to roll out its new robotic surgical system. Ishrak stated in the company's latest quarterly conference call that Medtronic expects to be the leader in the robotic surgical systems market and will be "the company who rewrites the way surgery is done in the next decade."
Ishrak won't be CEO of Medtronic over the next decade, though. He recently announced that he will retire effective April 26, 2020, and become the company's executive chairman.
3. Texas Instruments
Texas Instruments' roots date back to 1930 when a small oil and gas company was founded that ultimately became the technology giant we know today. CEO Rich Templeton began working at TI in 1980 and assumed the role of CEO in 2004.
The company's shares have more than doubled the total return of the S&P 500 since Templeton became CEO. Over the last five years, TI has delivered a total return of more than 200% -- more than quadruple that of the S&P 500. It has also increased its dividend payout for 16 years in a row, with the dividend currently yielding nearly 2.8%.
A great CEO knows what to focus on and what not to focus on. Templeton led Texas Instruments in its acquisition of National Semiconductor and the company's efforts to become the leader in analog integrated circuits. But he also got it out of the wireless business, a move that enabled TI to direct its resources toward areas with greater potential for rewarding shareholders.
Texas Instruments might not be the most exciting tech stock on the market. But income-seeking investors are usually perfectly OK with less excitement as long as the dividends keep flowing. And with TI, the dividends are highly likely to keep on coming.
10 stocks we like better than Texas Instruments
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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. | Three great dividend stocks that aren't but have handily beaten the overall market in total return over the last five and 10 years are Abbott Laboratories (NYSE: ABT), Medtronic (NYSE: MDT), and Texas Instruments (NASDAQ: TXN). Those winning ways haven't stopped: Over the last five years, Abbott has delivered a total return including dividends of 118%, nearly double that of the S&P 500 during the same time period. The company's innovation has led to tremendously successful products including the Freestyle Libre continuous glucose monitoring (CGM) system and the MitraClip medical device for treating patients who experience mitral valve regurgitation. | Three great dividend stocks that aren't but have handily beaten the overall market in total return over the last five and 10 years are Abbott Laboratories (NYSE: ABT), Medtronic (NYSE: MDT), and Texas Instruments (NASDAQ: TXN). Those winning ways haven't stopped: Over the last five years, Abbott has delivered a total return including dividends of 118%, nearly double that of the S&P 500 during the same time period. This summer, Medtronic announced its 42nd consecutive annual dividend increase. | Three great dividend stocks that aren't but have handily beaten the overall market in total return over the last five and 10 years are Abbott Laboratories (NYSE: ABT), Medtronic (NYSE: MDT), and Texas Instruments (NASDAQ: TXN). But while White didn't found Abbott Labs, he has been with the company for 35 years and has served as its CEO since 1999. White has also led the company to continue its remarkable streak of 47 years of consecutive annual dividend increases, securing a spot among the elite group of stocks known as Dividend Aristocrats. | Three great dividend stocks that aren't but have handily beaten the overall market in total return over the last five and 10 years are Abbott Laboratories (NYSE: ABT), Medtronic (NYSE: MDT), and Texas Instruments (NASDAQ: TXN). But a company doesn't have to be led by a founder for its stock to be a winner for long-term investors. But while White didn't found Abbott Labs, he has been with the company for 35 years and has served as its CEO since 1999. |
32909.0 | 2019-10-03 00:00:00 UTC | Noteworthy ETF Inflows: SPLG, PEP, WMT, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-splg-pep-wmt-abt-2019-10-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio Large Cap ETF (Symbol: SPLG) where we have detected an approximate $86.2 million dollar inflow -- that's a 3.1% increase week over week in outstanding units (from 82,900,000 to 85,450,000). Among the largest underlying components of SPLG, in trading today PepsiCo Inc (Symbol: PEP) is up about 3.5%, Walmart Inc (Symbol: WMT) is down about 0.4%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average:
Looking at the chart above, SPLG's low point in its 52 week range is $27.30 per share, with $35.59 as the 52 week high point — that compares with a last trade of $33.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPLG, in trading today PepsiCo Inc (Symbol: PEP) is up about 3.5%, Walmart Inc (Symbol: WMT) is down about 0.4%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $27.30 per share, with $35.59 as the 52 week high point — that compares with a last trade of $33.70. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of SPLG, in trading today PepsiCo Inc (Symbol: PEP) is up about 3.5%, Walmart Inc (Symbol: WMT) is down about 0.4%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $27.30 per share, with $35.59 as the 52 week high point — that compares with a last trade of $33.70. 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. | Among the largest underlying components of SPLG, in trading today PepsiCo Inc (Symbol: PEP) is up about 3.5%, Walmart Inc (Symbol: WMT) is down about 0.4%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio Large Cap ETF (Symbol: SPLG) where we have detected an approximate $86.2 million dollar inflow -- that's a 3.1% increase week over week in outstanding units (from 82,900,000 to 85,450,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $27.30 per share, with $35.59 as the 52 week high point — that compares with a last trade of $33.70. | Among the largest underlying components of SPLG, in trading today PepsiCo Inc (Symbol: PEP) is up about 3.5%, Walmart Inc (Symbol: WMT) is down about 0.4%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio Large Cap ETF (Symbol: SPLG) where we have detected an approximate $86.2 million dollar inflow -- that's a 3.1% increase week over week in outstanding units (from 82,900,000 to 85,450,000). For a complete list of holdings, visit the SPLG Holdings page » The chart below shows the one year price performance of SPLG, versus its 200 day moving average: Looking at the chart above, SPLG's low point in its 52 week range is $27.30 per share, with $35.59 as the 52 week high point — that compares with a last trade of $33.70. |
32910.0 | 2019-10-02 00:00:00 UTC | What's Fueling Abbott's Stock Price Growth? | ABT | https://www.nasdaq.com/articles/whats-fueling-abbotts-stock-price-growth-2019-10-02 | nan | nan | Abbott Labs’ (NYSE:ABT) share price has more than doubled over the last three years. This can be attributed to steady growth in its revenues, margin expansion, price to earnings multiple growth, and lower share count. Note that Abbott acquired St. Jude Medical and Alere in 2016 and 2017 respectively, which led to sharp jump in the revenues. In this note we discuss these factors that contributed to Abbott’s stock price growth. Look at our interactive dashboard analysis ~ Why Did Abbott Laboratories’ Stock More Than Double Over The Last Three Years? ~ for more details. You can also look at our data for healthcare companies here.
Abbott’s Stock Price More Than Doubled From Around $40 By The End of Q2 2016 To $84 By The End of Q2 2019, Led By Growth In Revenue, Margins, P/E Multiple Expansion, And A Decline In No. of Shares.
Abbott Labs is a diversified healthcare conglomerate with a global presence. The firm operates in four main segments: Nutritionals, Diagnostics, Medical Devices, and Established Pharmaceutical Products.
The Medical Devices segment includes minimally invasive medical devices for heart diseases, strokes, carotid artery diseases, and other serious vascular conditions.
The Diagnostics segment includes systems and tests used for screening for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological diseases, and infectious diseases such as hepatitis and HIV.
The Nutritional segment includes pediatric, adult, healthy living and sports nutrition products, such as infant formulas, snack bars, and meal replacement shakes.
The Established Pharmaceutical Products segment includes a broad line of generic drugs that are manufactured worldwide and sold outside the U.S.
#1. Revenues Could Grow 53% From $20.85 Billion In 2016 to $31.96 Billion In 2019. The Biggest Change In Revenue Is Driven By The Company’s Medical Devices Segment, Led By St Jude Acquisition In 2016.
Abbott’s Medical Devices revenues jumped sharply in 2017, due to the acquisition of St. Jude Medical. The figure stood at $11.4 billion in 2018, and it is estimated to be $12.2 billion in 2019, primarily led by primarily led by increased adoption of its HeartMate device, as well as higher sales of electrophysiology, structural heart, and diabetes devices.
Abbott’s Diagnostics Revenue has increased from $4.6 billion in 2016 to $7.5 billion in 2018,, due to Alere acquisition. Looking forward, we expect the division’s revenue to increase driven by increasing demand for diagnosis and point-of-care test equipment.
Abbott’s Nutritionals Revenue has remained more or less around the $7 billion mark in the recent years. It will likely be around $7.4 billion in 2019, led by its established brands, as well as some of the new launches.
Established Pharmaceutical Products revenue grew from $3.9 billion in 2016 to $4.4 billion in 2018, and it could grow to $4.6 billion in 2019, led by continued expansion in key emerging markets.
#2. Net Income Grew At A Higher Pace Compared To Abbott’s Revenues, Led By Margin Expansion.
Abbott’s adjusted net income grew from $3.3 billion in 2016 to $5.1 billion in 2018, and an estimated $5.7 billion in 2019.
This can be attributed to higher revenues and growth in net income margin.
Adjusted net income margin grew from 15.7% in 2016 to around 16.8% in 2018, and we forecast it to be 17.9% in 2019.
#2.1 Total Expenses Could Increase From $17.6 Billion In 2016 To $26.2 Billion In 2019. However, Total Costs As A Percentage of Revenue Have Seen A Decline. Our Forecast For 2019 Is Based On Historical Trends.
While Abbott’s total expenses grew from $17.6 billion in 2016 to $25.4 billion in 2018, and an estimated $26.2 billion in 2019, total expenses as % of revenue declined from 84.3% in 2016 to 83.2% in 2018, and an estimated 82.1% in 2019.
COGS as % of revenue declined slightly from 43.3% in 2016 to 41.6% in 2018, and it is estimated to be 41.5% in 2019.
Amortization of intangible assets as % of revenue increased sharply from 2.6% in 2016 to 7.1% in 2018, and it is estimated to be around 7.0% in 2019.
R&D as % of revenue grew from 6.8% in 2016 to 7.5% in 2018, and it is estimated to be7.4% in 2019.
SG&A as % of revenue saw a modest decline from 32.0% in 2016 to 31.9% i 2018, and it could decline to 31.8% in 2019.
Interest & other expenses as % of revenue has fluctuated in the past. It declined from 8.5% in 2016 to 2.5% in 2018, and it is estimated to be 2.4% in 2019.
Effective tax rate has also fluctuated in the recent years. It grew from 25% in 2016 to 84% in 2017, reflecting the impact of tax bill. It fell to 19% in 2018, and it is estimated to be 28% in 2019.
Non-GAAP adjustments as % of revenue grew from -10.6% in 2016 to -9.1% in 2018, and it is estimated to be -10.8% in 2019.
#3. Price To Earnings Multiple for Abbott Grew From 18x in 2016 To 26x in 2019 (End of Q2).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs’ (NYSE:ABT) share price has more than doubled over the last three years. The firm operates in four main segments: Nutritionals, Diagnostics, Medical Devices, and Established Pharmaceutical Products. The Established Pharmaceutical Products segment includes a broad line of generic drugs that are manufactured worldwide and sold outside the U.S. #1. | Abbott Labs’ (NYSE:ABT) share price has more than doubled over the last three years. The firm operates in four main segments: Nutritionals, Diagnostics, Medical Devices, and Established Pharmaceutical Products. Abbott’s Medical Devices revenues jumped sharply in 2017, due to the acquisition of St. Jude Medical. | Abbott Labs’ (NYSE:ABT) share price has more than doubled over the last three years. Established Pharmaceutical Products revenue grew from $3.9 billion in 2016 to $4.4 billion in 2018, and it could grow to $4.6 billion in 2019, led by continued expansion in key emerging markets. Abbott’s adjusted net income grew from $3.3 billion in 2016 to $5.1 billion in 2018, and an estimated $5.7 billion in 2019. | Abbott Labs’ (NYSE:ABT) share price has more than doubled over the last three years. Abbott’s Diagnostics Revenue has increased from $4.6 billion in 2016 to $7.5 billion in 2018,, due to Alere acquisition. While Abbott’s total expenses grew from $17.6 billion in 2016 to $25.4 billion in 2018, and an estimated $26.2 billion in 2019, total expenses as % of revenue declined from 84.3% in 2016 to 83.2% in 2018, and an estimated 82.1% in 2019. |
32911.0 | 2019-10-01 00:00:00 UTC | 4 Healthcare Stocks to Buy Now | ABT | https://www.nasdaq.com/articles/4-healthcare-stocks-to-buy-now-2019-10-01 | nan | nan | U.S. equities are pushing higher this week thanks to — you guessed it — hopes of a U.S.-China trade deal. The White House has somewhat denied rumors from Friday that President Donald Trump was considering delisting Chinese companies from American stock changes.
JPMorgan analyst also raised the firm’s price target on Apple (NASDAQ:) to $265. Because of its massive market capitalization, this move is also sending equities higher.
But it’s the healthcare sector that is catching my eye, with a number of stocks in the area pushing higher on what looks like chatter that Hillary Clinton could — potentially pushing out Senator Elizabeth Warren from front-runner status. Warren is considered a big risk factor for the healthcare industry, at least as its currently structured.
Here are four stocks to consider.
Healthcare Stocks to Buy: Merck (MRK)
Merck (NYSE:) shares are pushing back up and getting close to the company’s 50-day moving average. It looks like MRK stock might make another challenge of prior highs near the $87 level after making another quick test of its 200-day moving average. The company will next report results on Oct. 29 before the bell. Analysts are looking for earnings of $1.23 per share on revenues of $11.6 billion.
AbbVie (ABBV)
AbbVie (NYSE:) shares are on the mend, climbing back up and over its 200-day moving average for the first time since August 2018. Citigroup analyst Andrew Baum recently upgraded the stock to “buy” with a $90 price target. This upgrade is based on expectations that AbbVie will extract significant shareholder value from its purchase of Allergan.
The company will next report results on Nov. 1 before the bell. Analysts are looking for earnings of $2.29 per share on revenues of $8.4 billion.
Abbott Laboratories (ABT)
Abbott Laboratories (NYSE:) shares look ready for another attempt at the $90 level in a continuation of the smooth, steady uptrend the stock has enjoyed since late 2016. The company will next report results on Oct. 16 before the bell. Analysts are looking for earnings of 84 cents per share on revenues of $8.1 billion. When the company last reported July 17, earnings of 82 cents per share beat estimates by 2 cents on a 2.7% rise in revenues.
Bristol-Myers Squibb (BMY)
Shares of Bristol-Myers Squibb (NYSE:) are extending their recent charge above their 200-day moving average to return to levels not seen since March. The company will next report results on Oct. 31 before the bell. Analysts are looking for earnings of $1.06 per share on revenues of $5.9 billion. When the company last reported on July 25, earnings of $1.18 beat estimates by 12 cents on a 10% rise in revenues.
As of this writing, William Roth did not hold any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) Abbott Laboratories (NYSE:) shares look ready for another attempt at the $90 level in a continuation of the smooth, steady uptrend the stock has enjoyed since late 2016. The White House has somewhat denied rumors from Friday that President Donald Trump was considering delisting Chinese companies from American stock changes. Citigroup analyst Andrew Baum recently upgraded the stock to “buy” with a $90 price target. | Abbott Laboratories (ABT) Abbott Laboratories (NYSE:) shares look ready for another attempt at the $90 level in a continuation of the smooth, steady uptrend the stock has enjoyed since late 2016. Healthcare Stocks to Buy: Merck (MRK) Merck (NYSE:) shares are pushing back up and getting close to the company’s 50-day moving average. When the company last reported July 17, earnings of 82 cents per share beat estimates by 2 cents on a 2.7% rise in revenues. | Abbott Laboratories (ABT) Abbott Laboratories (NYSE:) shares look ready for another attempt at the $90 level in a continuation of the smooth, steady uptrend the stock has enjoyed since late 2016. Healthcare Stocks to Buy: Merck (MRK) Merck (NYSE:) shares are pushing back up and getting close to the company’s 50-day moving average. Analysts are looking for earnings of 84 cents per share on revenues of $8.1 billion. | Abbott Laboratories (ABT) Abbott Laboratories (NYSE:) shares look ready for another attempt at the $90 level in a continuation of the smooth, steady uptrend the stock has enjoyed since late 2016. Here are four stocks to consider. Healthcare Stocks to Buy: Merck (MRK) Merck (NYSE:) shares are pushing back up and getting close to the company’s 50-day moving average. |
32912.0 | 2019-09-30 00:00:00 UTC | Monday's ETF Movers: IHI, GDXJ | ABT | https://www.nasdaq.com/articles/mondays-etf-movers%3A-ihi-gdxj-2019-09-30 | nan | nan | In trading on Monday, the iShares U.S. Medical Devices ETF (IHI) is outperforming other ETFs, up about 1.8% on the day. Components of that ETF showing particular strength include shares of Abbott Laboratories (ABT), up about 2.7% and shares of Angiodynamics (ANGO), up about 2.5% on the day.
And underperforming other ETFs today is the Junior Gold Miners ETF (GDXJ), off about 3.8% in Monday afternoon trading. Among components of that ETF with the weakest showing on Monday were shares of Wesdome Gold Mines (WDO.CA), lower by about 9.4%, and shares of Silvercorp Metals (SVM.CA), lower by about 9.2% on the day.
VIDEO: Monday's ETF Movers: IHI, GDXJ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Abbott Laboratories (ABT), up about 2.7% and shares of Angiodynamics (ANGO), up about 2.5% on the day. Among components of that ETF with the weakest showing on Monday were shares of Wesdome Gold Mines (WDO.CA), lower by about 9.4%, and shares of Silvercorp Metals (SVM.CA), lower by about 9.2% on the day. VIDEO: Monday's ETF Movers: IHI, GDXJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Abbott Laboratories (ABT), up about 2.7% and shares of Angiodynamics (ANGO), up about 2.5% on the day. And underperforming other ETFs today is the Junior Gold Miners ETF (GDXJ), off about 3.8% in Monday afternoon trading. Among components of that ETF with the weakest showing on Monday were shares of Wesdome Gold Mines (WDO.CA), lower by about 9.4%, and shares of Silvercorp Metals (SVM.CA), lower by about 9.2% on the day. | Components of that ETF showing particular strength include shares of Abbott Laboratories (ABT), up about 2.7% and shares of Angiodynamics (ANGO), up about 2.5% on the day. In trading on Monday, the iShares U.S. Medical Devices ETF (IHI) is outperforming other ETFs, up about 1.8% on the day. And underperforming other ETFs today is the Junior Gold Miners ETF (GDXJ), off about 3.8% in Monday afternoon trading. | Components of that ETF showing particular strength include shares of Abbott Laboratories (ABT), up about 2.7% and shares of Angiodynamics (ANGO), up about 2.5% on the day. In trading on Monday, the iShares U.S. Medical Devices ETF (IHI) is outperforming other ETFs, up about 1.8% on the day. And underperforming other ETFs today is the Junior Gold Miners ETF (GDXJ), off about 3.8% in Monday afternoon trading. |
32913.0 | 2019-09-29 00:00:00 UTC | Why the Healthcare Revolution Should Make You Rethink When You'll Claim Social Security | ABT | https://www.nasdaq.com/articles/why-the-healthcare-revolution-should-make-you-rethink-when-youll-claim-social-security | nan | nan | When it comes to your Social Security benefits, there's arguably no more critical decision than when you're going to claim them.
Many Americans choose to apply for Social Security at 62 -- the earliest age allowed. For those who retire early and need the income to live, that makes sense. But given that filing early means a reduction in your monthly benefits, it can be better to wait until you reach your full retirement age (which for anyone who hasn't claimed yet will be between 66 and 67). And for some people, delaying Social Security benefits until they're 70 works out best of all, because it offers them the chance to maximize the total amount they'll receive through the program over their lifetime.
The best age for you specifically to claim Social Security benefits depends on how long you're likely to live. And based on your family history and current health, you may have some guesses about that. But what you might not be factoring into your calculations is that major healthcare advances -- some that are on the way, and others that have already arrived -- could dramatically increase the lifespans of many individuals -- including yours.
Here's why the coming healthcare revolution should change your thinking about when you should claim Social Security benefits.
Image source: Getty Images.
Taking aim at the leading causes of death
Statistically speaking, Americans today have a 23% chance of dying from heart disease and a 21.3% chance of dying from cancer, according to the latest available data from the Centers for Disease Control and Prevention (CDC). In 2017, nearly 1.25 million Americans died from those causes, up from a little over 1.23 million in the previous year.
While the numbers of Americans dying from heart disease and cancer are increasing, there's more to the story. As the U.S. population ages, there have been more overall deaths. But the percentages of deaths caused by both heart disease and cancer are slowly declining.
It's easy to overlook the tremendous progress that has been made in reducing our odds of dying from these top causes. Between 2006 and 2016, the U.S. death rate from cardiovascular disease decreased by 18.6%, according to the American Heart Association. The death rate from coronary heart disease plunged by 31.8% during that period. Between 1991 and 2016, the cancer death rate in the U.S. fell by 27%, according to the American Cancer Society.
Based on current trends, the CDC projects that cancer will overtake heart disease as the No. 1 cause of death for Americans by 2020. However, we're only in the early stages of a healthcare revolution that holds the promise of improving survival rates even more for both heart disease and cancer.
Leading the revolution
The percentage of Americans who smoke cigarettes has been steadily declining, which is one key factor underlying those falling death rates for heart disease and cancer. But medical advances have also played a major role. The great news is that more such advances are on the way.
Drugs that lower cholesterol and triglyceride levels -- such as statins like Crestor and Lipitor -- have been among the most important tools for preventing heart disease. New PCSK9 inhibitors Repatha and Praluent are even more effective at lowering cholesterol.
And later this year, the U.S. Food and Drug Administration is expected to make an approval decision on Amarin's Vascepa as a treatment for reducing heart risk. Vascepa could cut heart risk by as much as 25%, based on the results from a large-scale clinical study.
New medical devices also hold the potential to extend lives. The American Heart Association named Abbott Labs' MitraClip as one of the top heart disease and stroke advances of 2018. MitraClip helps repair leaky mitral valves, and has been found to significantly lower death rates and reduce hospitalizations in clinical studies.
Immunotherapies that harness the body's immune system to attack tumors have been game-changers in the treatment of cancer. And with nearly 450 new immunotherapies in development, there are likely many more advances on the way.
Image source: Getty Images.
Probably the most exciting advance in oncology is the use of genetic research to better understand, treat, and prevent cancer. Many treatments under development target specific genetic mutations in cancer cells. Companies including Guardant Health have developed liquid biopsies -- blood tests that can identify DNA fragments that have broken off from tumor cells. These hold the potential to detect multiple types of cancer at early stages. The hope is that earlier diagnoses will lead to earlier and more effective treatment for cancer patients, which could save many lives.
The most audacious goal of all
There are plenty of other innovative healthcare initiatives underway that could reduce the number of deaths from heart disease and cancer. And there are many new drugs and medical devices that are likely to radically improve the prevention and treatment of other common causes of death as well. But Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Calico has embarked on the most audacious quest of all: Extending the human lifespan in general.
You might think such an idea sounds ridiculous. However, the Calico team takes its mission seriously. CEO Arthur Levinson led pioneering biotech Genentech from 1995 until 2009, when it was acquired by Roche. Calico has also partnered with AbbVie, a leader in the biopharmaceutical industry.
Calico is researching the underlying reasons why people grow less healthy as we age. For example, it's exploring the genetics of the naked mole-rat, which has an unusually long lifespan for an animal of its size, and grows old with few signs of aging. And it's working with AncestryDNA to evaluate anonymized data from millions of family trees and genetic samples to try to determine the role of genetics in families with unusual longevity.
To be sure, Calico has a long way to go to achieve its goals. But it's not out of the realm of possibility that the Alphabet subsidiary could help develop therapeutics that lengthen the lives of many people who today aren't expecting to live much past age 80.
Rethinking your Social Security strategy
If you're planning your strategy about when to claim Social Security based on how long your parents or grandparents lived, you probably need to rethink it. The reality is that they didn't have access to many of the medical advances that are available today. And the technologies under development appear even more promising.
Once you begin receiving Social Security benefits, you're essentially locked into the payment level you've picked. (Admittedly, there is a 12-month window after you file during which you can change your mind and withdraw your claim so you can refile later. But that loophole won't help most long-lived retirees.)
Most retirement experts will tell you that the Social Security system is designed so that, on average, it really shouldn't matter what age you start collecting your benefits. If you file earlier, you'll get smaller payments, but more of them. File later, and you get larger payments, but fewer of them. The numbers are calibrated so that, if you live to an average age, you'll get about the same amount of money in total out of the program, regardless of when you apply.
But that's an average age based on what the actuaries expect today. Factor in the potential for the coming healthcare revolution to extend our lives, and it becomes clear why holding off to claim Social Security at least until your full retirement age -- or even waiting until age 70 -- is increasingly likely to be the better financial choice.
You just might live a lot longer than you think, and if you do, you'll have many years to appreciate your larger monthly benefit payments. And don't worry -- Social Security will still be there if you wait.
The $16,728 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights owns shares of AbbVie, Alphabet (A shares), and Guardant Health. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Guardant 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. | Leading the revolution The percentage of Americans who smoke cigarettes has been steadily declining, which is one key factor underlying those falling death rates for heart disease and cancer. MitraClip helps repair leaky mitral valves, and has been found to significantly lower death rates and reduce hospitalizations in clinical studies. Companies including Guardant Health have developed liquid biopsies -- blood tests that can identify DNA fragments that have broken off from tumor cells. | Taking aim at the leading causes of death Statistically speaking, Americans today have a 23% chance of dying from heart disease and a 21.3% chance of dying from cancer, according to the latest available data from the Centers for Disease Control and Prevention (CDC). Many treatments under development target specific genetic mutations in cancer cells. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Guardant Health. | Taking aim at the leading causes of death Statistically speaking, Americans today have a 23% chance of dying from heart disease and a 21.3% chance of dying from cancer, according to the latest available data from the Centers for Disease Control and Prevention (CDC). Rethinking your Social Security strategy If you're planning your strategy about when to claim Social Security based on how long your parents or grandparents lived, you probably need to rethink it. Factor in the potential for the coming healthcare revolution to extend our lives, and it becomes clear why holding off to claim Social Security at least until your full retirement age -- or even waiting until age 70 -- is increasingly likely to be the better financial choice. | The best age for you specifically to claim Social Security benefits depends on how long you're likely to live. And with nearly 450 new immunotherapies in development, there are likely many more advances on the way. Factor in the potential for the coming healthcare revolution to extend our lives, and it becomes clear why holding off to claim Social Security at least until your full retirement age -- or even waiting until age 70 -- is increasingly likely to be the better financial choice. |
32914.0 | 2019-09-27 00:00:00 UTC | Health Care Sector Update for 09/27/2019: HSGX, PRPO, ABBV, JNJ, ABT, PFE, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-09-27-2019%3A-hsgx-prpo-abbv-jnj-abt-pfe-mrk-amgn-2019-09-27 | nan | nan | Top Health Care Stocks:
JNJ: +0.12%
PFE: +0.61%
ABT: Flat
MRK: +0.44%
AMGN: +0.20%
Top health care stocks were flat to higher pre-market Friday.
Stocks moving on news include:
(-) Histogenics (HSGX), which was down more than 9% as its stockholders approved all proposals related to its proposed combination with Ocugen.
(+) Precipio (PRPO) was over 3% higher after saying several "large" laboratories have completed validation studies to test the company's IV-Cell cytogenetics media product, as well as its HemeScreen Assay, and are "proceeding toward placing orders."
In other sector news:
(+) AbbVie (ABBV) was marginally gaining as the Food and Drug Administration has approved the company's drug Mavyret to shorten the duration of treatment of chronic hepatitis C (HCV) patients across all genotypes.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT: Flat Top health care stocks were flat to higher pre-market Friday. (+) Precipio (PRPO) was over 3% higher after saying several "large" laboratories have completed validation studies to test the company's IV-Cell cytogenetics media product, as well as its HemeScreen Assay, and are "proceeding toward placing orders." | ABT: Flat Top Health Care Stocks: Top health care stocks were flat to higher pre-market Friday. | ABT: Flat Top health care stocks were flat to higher pre-market Friday. Stocks moving on news include: (-) Histogenics (HSGX), which was down more than 9% as its stockholders approved all proposals related to its proposed combination with Ocugen. | ABT: Flat Top health care stocks were flat to higher pre-market Friday. Stocks moving on news include: (-) Histogenics (HSGX), which was down more than 9% as its stockholders approved all proposals related to its proposed combination with Ocugen. |
32915.0 | 2019-09-26 00:00:00 UTC | Health Care Sector Update for 09/26/2019: BTAI, TAK, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-09-26-2019%3A-btai-tak-jnj-pfe-abt-mrk-amgn-2019-09-26 | nan | nan | Top Health Care Stocks:
JNJ: +0.43%
PFE: +0.39%
ABT: Flat
MRK: Flat
AMGN: Flat
Leading health care stocks were flat to higher pre-bell Thursday.
Early movers include:
(-) BioXcel Therapeutics (BTAI), which was still down around 16% after saying it has started an underwritten public offering of $19 million of shares.
In other sector news:
(=) Abbott Laboratories (ABT) was flat after saying the Food and Drug Administration has approved the company's Proclaim XR recharge-free neurostimulation system for people living with chronic pain.
(=) Takeda Pharmaceutical (TAK) was unchanged after additional results from its VARSITY study showed that ulcerative colitis patients using Entyvio (vedolizumab) have better chances of achieving clinical remission, the primary endpoint of the study, than with Humira (adalimumab).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news: (=) Abbott Laboratories (ABT) was flat after saying the Food and Drug Administration has approved the company's Proclaim XR recharge-free neurostimulation system for people living with chronic pain. ABT: Flat MRK: Flat AMGN: Flat Leading health care stocks were flat to higher pre-bell Thursday. Early movers include: (-) BioXcel Therapeutics (BTAI), which was still down around 16% after saying it has started an underwritten public offering of $19 million of shares. | ABT: Flat MRK: Flat AMGN: Flat Leading health care stocks were flat to higher pre-bell Thursday. In other sector news: (=) Abbott Laboratories (ABT) was flat after saying the Food and Drug Administration has approved the company's Proclaim XR recharge-free neurostimulation system for people living with chronic pain. Top Health Care Stocks: | ABT: Flat MRK: Flat AMGN: Flat Leading health care stocks were flat to higher pre-bell Thursday. In other sector news: (=) Abbott Laboratories (ABT) was flat after saying the Food and Drug Administration has approved the company's Proclaim XR recharge-free neurostimulation system for people living with chronic pain. (=) Takeda Pharmaceutical (TAK) was unchanged after additional results from its VARSITY study showed that ulcerative colitis patients using Entyvio (vedolizumab) have better chances of achieving clinical remission, the primary endpoint of the study, than with Humira (adalimumab). | ABT: Flat MRK: Flat AMGN: Flat Leading health care stocks were flat to higher pre-bell Thursday. In other sector news: (=) Abbott Laboratories (ABT) was flat after saying the Food and Drug Administration has approved the company's Proclaim XR recharge-free neurostimulation system for people living with chronic pain. Early movers include: (-) BioXcel Therapeutics (BTAI), which was still down around 16% after saying it has started an underwritten public offering of $19 million of shares. |
32916.0 | 2019-09-26 00:00:00 UTC | FDA Approves Abbott's Spinal Cord Stimulation System For Chronic Pain | ABT | https://www.nasdaq.com/articles/fda-approves-abbotts-spinal-cord-stimulation-system-for-chronic-pain-2019-09-26 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) said Thursday that the U.S. Food and Drug Administration has approved the company's Proclaim XR, recharge-free neurostimulation system for people living with chronic pain.
The Proclaim XR platform offers a low dose of Abbott's proprietary BurstDR stimulation waveform. It works by using low doses of mild electrical pulses to change pain signals as they travel from the spinal cord to the brain.
The delivery of lower doses of spinal cord stimulation helps extend the system's battery life, allowing people to experience pain relief, without the hassle of recharging, for up to 10 years.
About 50 million people in the US are affected by chronic pain, many of whom could benefit from spinal cord stimulation, the company said.
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) said Thursday that the U.S. Food and Drug Administration has approved the company's Proclaim XR, recharge-free neurostimulation system for people living with chronic pain. It works by using low doses of mild electrical pulses to change pain signals as they travel from the spinal cord to the brain. The delivery of lower doses of spinal cord stimulation helps extend the system's battery life, allowing people to experience pain relief, without the hassle of recharging, for up to 10 years. | (RTTNews) - Abbott Laboratories (ABT) said Thursday that the U.S. Food and Drug Administration has approved the company's Proclaim XR, recharge-free neurostimulation system for people living with chronic pain. The delivery of lower doses of spinal cord stimulation helps extend the system's battery life, allowing people to experience pain relief, without the hassle of recharging, for up to 10 years. About 50 million people in the US are affected by chronic pain, many of whom could benefit from spinal cord stimulation, the company said. | (RTTNews) - Abbott Laboratories (ABT) said Thursday that the U.S. Food and Drug Administration has approved the company's Proclaim XR, recharge-free neurostimulation system for people living with chronic pain. The delivery of lower doses of spinal cord stimulation helps extend the system's battery life, allowing people to experience pain relief, without the hassle of recharging, for up to 10 years. 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) said Thursday that the U.S. Food and Drug Administration has approved the company's Proclaim XR, recharge-free neurostimulation system for people living with chronic pain. It works by using low doses of mild electrical pulses to change pain signals as they travel from the spinal cord to the brain. The delivery of lower doses of spinal cord stimulation helps extend the system's battery life, allowing people to experience pain relief, without the hassle of recharging, for up to 10 years. |
32917.0 | 2019-09-24 00:00:00 UTC | IHI, ABT, MDT, TMO: Large Outflows Detected at ETF | ABT | https://www.nasdaq.com/articles/ihi-abt-mdt-tmo%3A-large-outflows-detected-at-etf-2019-09-24 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $137.5 million dollar outflow -- that's a 3.1% decrease week over week (from 17,650,000 to 17,100,000). Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.9%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.3%. 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 $183.57 per share, with $252.63 as the 52 week high point — that compares with a last trade of $251.17. 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 IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.9%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.3%. 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 $183.57 per share, with $252.63 as the 52 week high point — that compares with a last trade of $251.17. 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 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.9%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up by about 0.3%. 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 $183.57 per share, with $252.63 as the 52 week high point — that compares with a last trade of $251.17. 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 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.9%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up 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 U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $137.5 million dollar outflow -- that's a 3.1% decrease week over week (from 17,650,000 to 17,100,000). 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 $183.57 per share, with $252.63 as the 52 week high point — that compares with a last trade of $251.17. | Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.9%, and Thermo Fisher Scientific Inc (Symbol: TMO) is up 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 U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $137.5 million dollar outflow -- that's a 3.1% decrease week over week (from 17,650,000 to 17,100,000). 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 $183.57 per share, with $252.63 as the 52 week high point — that compares with a last trade of $251.17. |
32918.0 | 2019-09-24 00:00:00 UTC | Better Buy: AbbVie vs. Eli Lilly | ABT | https://www.nasdaq.com/articles/better-buy%3A-abbvie-vs.-eli-lilly-2019-09-24 | nan | nan | AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have been outstanding dividend and growth stocks for the better part of the last decade. These two pharma giants have generated total returns on capital (including dividends) of 52% and 97%, respectively, over the last five years.
Nonetheless, AbbVie and Lilly have both run into trouble in 2019 due to a mix of company-specific issues and industrywide headwinds. Which of these top pharma stocks has the best chance of breaking out of this recent funk? Let's take a look at the bull and bear case for each stock to find out.
Image source: Getty Images.
AbbVie's strengths and weaknesses
AbbVie has grown its top line and dividend at industry-leading levels ever since Abbott Laboratories spun the biotech off into a separate entity in 2013. Even so, the biotech's shares have still dropped by an unsightly 20% so far this year. The net result is that the drugmaker's stock is now trading at less than eight times forward earnings. That's a bargain-basement valuation for a blue-chip pharma stock.
So why are investors sidestepping this top biotech? Three reasons:
AbbVie's best-selling arthritis medication, Humira, is heading into its twilight years as a growth vehicle. The drug is already facing biosimilar competition in the EU, and biosimilars are slated to cut into its U.S. sales early in the next decade.
The company's recent high-dollar acquisition of Botox-maker Allergan (NYSE: AGN) dramatically increased its outstanding debt load. As long as Humira's U.S. sales decline gradually, the biotech should have sufficient free cash flows to deleverage promptly. But there's always the risk that Humira's U.S. sales will fall faster than expected.
AbbVie's blood cancer medication Imbruvica is staring down a slew of competitive threats. Most industry insiders expect Imbruvica to hold its own against these competitors, but nothing is guaranteed in the highly competitive and ever-evolving hematology space.
On the plus side of the ledger, AbbVie has significantly beefed up its product portfolio with the approval of three potential megablockbusters: Skyrizi for psoriasis, Rinvoq for rheumatoid arthritis, and Orilissa for uterine fibroids. Taken together, these three new growth products should help to steady the ship as AbbVie enters the next stage of its life cycle.
Eli Lilly's strengths and weaknesses
From the start of 2014 to the end of 2018, Lilly was one of the best-performing healthcare stocks. Lilly, in fact, produced total returns on capital of 160% over this four-year period. This year, however, hasn't been so kind to the big pharma.
Lilly's stock has slipped by nearly 1.5% in 2019 due to a variety of headwinds, including the ongoing cliff dives of former star products like Humalog and Cialis, the withdrawal of the soft tissue cancer medicine Lartruvo from the market, a safety ding for the breast cancer treatment Verzenio, and, most importantly, an increasingly competitive landscape for the company's best-selling type 2 diabetes medication, Trulicity.
It's not all doom and gloom for Lilly, however. Psoriatic arthritis drug Taltz, cancer treatment Cyramza, and migraine medicine Emgality are expected to drive a healthy 6.6% rise in revenue next year, compared to 2019.
That said, Lilly's shares are now trading at a whopping 17.3 times forward earnings, despite this encouraging outlook for its top line. The company's balance sheet is also highly leveraged at this point -- as evinced by its 575.1 debt-to-equity ratio. So Lilly may not be able to pursue any major business development opportunities in the near term to create additional value for shareholders.
Verdict
As things stand now, AbbVie arguably comes across as the more compelling buy. Lilly's stock sports a far richer valuation, and the drugmaker is also facing numerous headwinds in the diabetes space that could force a significant downward revenue revision for its top line within the next six months. AbbVie, on the other hand, has bolstered its anti-inflammatory portfolio with the recent approvals of both Skyrizi and Rinvoq. Moreover, the biotech's acquisition of Allergan should ultimately soften the blow of Humira's eventual decline.
10 stocks we like better than Eli Lilly and Company
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On the plus side of the ledger, AbbVie has significantly beefed up its product portfolio with the approval of three potential megablockbusters: Skyrizi for psoriasis, Rinvoq for rheumatoid arthritis, and Orilissa for uterine fibroids. Psoriatic arthritis drug Taltz, cancer treatment Cyramza, and migraine medicine Emgality are expected to drive a healthy 6.6% rise in revenue next year, compared to 2019. Lilly's stock sports a far richer valuation, and the drugmaker is also facing numerous headwinds in the diabetes space that could force a significant downward revenue revision for its top line within the next six months. | AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have been outstanding dividend and growth stocks for the better part of the last decade. AbbVie's strengths and weaknesses AbbVie has grown its top line and dividend at industry-leading levels ever since Abbott Laboratories spun the biotech off into a separate entity in 2013. Three reasons: AbbVie's best-selling arthritis medication, Humira, is heading into its twilight years as a growth vehicle. | AbbVie (NYSE: ABBV) and Eli Lilly (NYSE: LLY) have been outstanding dividend and growth stocks for the better part of the last decade. Lilly's stock has slipped by nearly 1.5% in 2019 due to a variety of headwinds, including the ongoing cliff dives of former star products like Humalog and Cialis, the withdrawal of the soft tissue cancer medicine Lartruvo from the market, a safety ding for the breast cancer treatment Verzenio, and, most importantly, an increasingly competitive landscape for the company's best-selling type 2 diabetes medication, Trulicity. See the 10 stocks *Stock Advisor returns as of June 1, 2019 George Budwell has no position in any of the stocks mentioned. | AbbVie's blood cancer medication Imbruvica is staring down a slew of competitive threats. That said, Lilly's shares are now trading at a whopping 17.3 times forward earnings, despite this encouraging outlook for its top line. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market. |
32919.0 | 2019-09-24 00:00:00 UTC | Healthy Dividend Aristocrats: 6 Great Health-Care Dividend Stocks | ABT | https://www.nasdaq.com/articles/healthy-dividend-aristocrats%3A-6-great-health-care-dividend-stocks-2019-09-24 | nan | nan | Sluggish global growth, the U.S. trade war with China and a stock market that's up only about 2% over the past year have some investors thinking about playing defense. And few equities are better at adding ballast to a portfolio than the rock-solid dividend growth stocks in the Dividend Aristocrats - companies in the S&P 500 that have raised their payouts every year for at least 25 consecutive years.
Also, few areas of the market hold up as well in downturns as the health-care sector. Put them together - health-care stocks with multiple decades uninterrupted dividend growth - and investors have a recipe for income and lower risk in their equity portfolios.
Six of the elite Dividend Aristocrats can be found in the health-care sector. These stocks, most of which are household names, have hiked their payouts for anywhere from 34 to 57 consecutive years. That's dividend growth an income investor can count on.
For dividend growth and defense, take a closer look at these six health-care Dividend Aristocrats.
SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond
Becton Dickinson
Market value: $68.4 billion
Dividend yield: 1.2%
Consecutive annual dividend increases: 47
Analysts' opinion: 10 strong buy, 3 buy, 7 hold, 0 sell, 0 strong sell
Medical devices maker Becton Dickinson (BDX, $253.43) has been leaning on mergers & acquisitions (M&A) to make hay over the past few years. It bulked up with its 2015 acquisition of CareFusion, a complementary player in the same industry. Then in 2017, it snapped up fellow Dividend Aristocrat C.R. Bard, another medical products company with a strong position in treatments for infectious diseases, for $24 billion.
Becton Dickinson's wares cover everything from diabetes care to lab automation to vascular surgery and much, much more. And while it is a massive player in the U.S., BDX increasingly expects its growth to be driven by markets outside the U.S., including China. Analysts expect Becton to generate average annual earnings growth of 11.2% for the next three to five years, according to S&P Global Market Intelligence.
Annual dividend increases stretch back 47 years and counting - a track record that should offer peace of mind to antsy income investors. The company has grown its payout by a total of 41% over the past five years, though that pace has slowed a bit more recently. If BDX sticks to its usual script, it should announce its next dividend hike in mid- to late November.
SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained
Abbott Laboratories
Market value: $147.0 billion
Dividend yield: 1.5%
Consecutive annual dividend increases: 47
Analysts' opinion: 11 strong buy, 7 buy, 3 hold, 1 sell, 0 strong sell
Abbott Laboratories (ABT, $83.16) actually split into a pair of Dividend Aristocrats when it spun off AbbVie in 2013. Remaining with Abbott Labs were businesses focused on branded generic drugs, medical devices, nutrition and diagnostic products. Its offerings include some well-known consumer brands such as Similac infant formulas, Glucerna diabetes management shakes and bars, and Pedialyte rehydration solutions. But it's also involved with devices such as i-Stat blood analyzers and Prodigy spinal cord stimulation (SCS) implants.
Like BDX, Abbott has expanded by acquisition of late. In 2017, it bought both medical-device firm St. Jude Medical and rapid-testing technology business Alere.
Abbott Labs' roots go back to 1888, and its dividend has been around since 1924. ABT has raised its dividend for 47 straight years, including a hefty 14.3% hike that went into effect in February 2019.
SEE ALSO: 25 Dividend Stocks That Analysts Love the Most
Medtronic
Market value: $148.7 billion
Dividend yield: 2.0%
Consecutive annual dividend increases: 42
Analysts' opinion: 12 strong buy, 7 buy, 9 hold, 0 sell, 0 strong sell
Medtronic (MDT, $110.84), one of the world's largest makers of medical devices, is an income machine. The company's dividend per share has increased 77% over the past five years, Medtronic notes, and has grown at a 17% compounded annual growth rate over the past 42 years. Most recently, in June, MDT lifted its quarterly payout by 8% to 54 cents a share to maintain its spot in the Dividend Aristocrats.
Medtronic aims to return at least 50% of its free cash flow to shareholders through dividends and stock buybacks. The company can steer all this cash back to shareholders thanks to the ubiquity of its products. Medtronic holds more than 4,600 patents on products ranging from external defibrillators to replacement heart valves to surgical stapling devices.
Whether you're in the U.S. or in about 160 other countries, if you take a look around your hospital or doctor's office, chances are good you'll see a Medtronic product.
SEE ALSO: 6 Best Health Care Funds for a Volatile Market
Johnson & Johnson
Market value: $347.7 billion
Dividend yield: 2.9%
Consecutive annual dividend increases: 57
Analysts' opinion: 4 strong buy, 5 buy, 9 hold, 1 sell, 1 strong sell
Johnson & Johnson's (JNJ, $131.74) roots stretch back to the 19th century, and it remains one of the country's leading health-care stocks, on several fronts. Chances are you know J&J for its consumer brands, which include Band-Aid, Neosporin, Listerine, Clean & Clear, and of course Johnson's baby products. But it also has pharmaceutical products, through its Janssen and Actelion arms, and it amanufactures medical devices used in surgery.
From the occasional disappointing results to litigation, Johnson & Johnson has had its ups and downs over the years. But so far, that has not affected investors who count on JNJ's steady dividend. The health-care giant hiked its payout by 5.6% in April 2019, extending its streak of consecutive annual dividend increases to 57.
That should continue if Johnson & Johnson can keep growing its earnings; analysts expect it to, at a clip of 6.9% annually on average over the next three to five years.
SEE ALSO: All 30 Dow Stocks Ranked: The Analysts Weigh In
Cardinal Health
Market value: $13.8 billion
Dividend yield: 4.1%
Consecutive annual dividend increases: 34
Analysts' opinion: 1 strong buy, 2 buy, 14 hold, 1 sell, 2 strong sell
Cardinal Health (CAH, $47.17), like other health-care stocks on this list, became the giant that it is today in decent part thanks to a steady stream of acquisitions.
More recently, it has been embroiled in legal actions related to the nation's opioid epidemic. In late 2016, Cardinal Health agreed to pay $44 million to the Department of Justice to settle allegations that it failed to report suspicious drug orders. And in early 2017, the company agreed to a $20 million settlement with the state of West Virginia. The company warned in August that it expects to have to defend itself against more litigation, too.
However, Cardinal Health is looking for new life with its $6.1 acquisition of Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency business, completed in July 2017.
On the dividend front, CAH has upped the ante on its annual payout for 34 years and counting. The company remains in the Dividend Aristocrats courtesy of its last dividend hike - a 1% bump to 48.11 cents per share announced in May.
SEE ALSO: The 20 Best Small-Cap Dividend Stocks to Buy
AbbVie
Market value: $107.8 billion
Dividend yield: 5.9%
Consecutive annual dividend increases: 47
Analysts' opinion: 5 strong buy, 1 buy, 6 hold, 0 sell, 0 strong sell
If you read closely above, you're now familiar with AbbVie's (ABBV, $72.93) corporate heritage. But a quick reminder: It was spun off from Abbott Laboratories in 2013.
AbbVie is a biopharmaceutical company with a laundry list of treatments that include Humira for rheumatoid arthritis; AndroGel, a testosterone replacement therapy; and Viekira Pak for hepatitis C. All told, AbbVie's product pipeline spans 50 total indications - 14 approved, and 36 still in trial stages. But AbbVie also is looking to grow via M&A. In June, the company announced a $63 billion deal to buy Dublin-based Allergan (AGN), which is famous for the Botox brand but also boasts Restasis eye drops, irritable bowel syndrome treatment Linzess and "fat freezing" technology CoolSculpting.
After the split, AbbVie and Abbott Laboratories both retained credit for the longstanding dividend-growth streak. Including its time as part of Abbott, ABBV upped its annual distribution for 47 consecutive years, with the last hike (an 11.5% increase) coming in February.
SEE ALSO: Where Millionaires Live in America 2019
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained Abbott Laboratories Market value: $147.0 billion Dividend yield: 1.5% Consecutive annual dividend increases: 47 Analysts' opinion: 11 strong buy, 7 buy, 3 hold, 1 sell, 0 strong sell Abbott Laboratories (ABT, $83.16) actually split into a pair of Dividend Aristocrats when it spun off AbbVie in 2013. ABT has raised its dividend for 47 straight years, including a hefty 14.3% hike that went into effect in February 2019. Its offerings include some well-known consumer brands such as Similac infant formulas, Glucerna diabetes management shakes and bars, and Pedialyte rehydration solutions. | SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained Abbott Laboratories Market value: $147.0 billion Dividend yield: 1.5% Consecutive annual dividend increases: 47 Analysts' opinion: 11 strong buy, 7 buy, 3 hold, 1 sell, 0 strong sell Abbott Laboratories (ABT, $83.16) actually split into a pair of Dividend Aristocrats when it spun off AbbVie in 2013. ABT has raised its dividend for 47 straight years, including a hefty 14.3% hike that went into effect in February 2019. SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond Becton Dickinson Market value: $68.4 billion Dividend yield: 1.2% Consecutive annual dividend increases: 47 Analysts' opinion: 10 strong buy, 3 buy, 7 hold, 0 sell, 0 strong sell Medical devices maker Becton Dickinson (BDX, $253.43) has been leaning on mergers & acquisitions (M&A) to make hay over the past few years. | SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained Abbott Laboratories Market value: $147.0 billion Dividend yield: 1.5% Consecutive annual dividend increases: 47 Analysts' opinion: 11 strong buy, 7 buy, 3 hold, 1 sell, 0 strong sell Abbott Laboratories (ABT, $83.16) actually split into a pair of Dividend Aristocrats when it spun off AbbVie in 2013. ABT has raised its dividend for 47 straight years, including a hefty 14.3% hike that went into effect in February 2019. SEE ALSO: 101 Best Dividend Stocks to Buy for 2019 and Beyond Becton Dickinson Market value: $68.4 billion Dividend yield: 1.2% Consecutive annual dividend increases: 47 Analysts' opinion: 10 strong buy, 3 buy, 7 hold, 0 sell, 0 strong sell Medical devices maker Becton Dickinson (BDX, $253.43) has been leaning on mergers & acquisitions (M&A) to make hay over the past few years. | SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained Abbott Laboratories Market value: $147.0 billion Dividend yield: 1.5% Consecutive annual dividend increases: 47 Analysts' opinion: 11 strong buy, 7 buy, 3 hold, 1 sell, 0 strong sell Abbott Laboratories (ABT, $83.16) actually split into a pair of Dividend Aristocrats when it spun off AbbVie in 2013. ABT has raised its dividend for 47 straight years, including a hefty 14.3% hike that went into effect in February 2019. And few equities are better at adding ballast to a portfolio than the rock-solid dividend growth stocks in the Dividend Aristocrats - companies in the S&P 500 that have raised their payouts every year for at least 25 consecutive years. |
32920.0 | 2019-09-23 00:00:00 UTC | 3 Big Stock Charts for Monday: MSCI, Macerich and Abbott Laboratories | ABT | https://www.nasdaq.com/articles/3-big-stock-charts-for-monday%3A-msci-macerich-and-abbott-laboratories-2019-09-23 | nan | nan | The market tried to work its way back into a bullish groove and end the week on a high note, but to no avail. By the time Friday’s closing bell rang, the S&P 500 was 0.49% lower than Thursday’s last trade. The true direction of the undertow remains in question.
Source: Shutterstock
Netflix (NASDAQ:) did more than its fair share of the damage, tumbling more than 5% after CEO Reed Hastings conceded looming competition from Walt Disney (NYSE:) and others would be impressively tough. At the other end of the spectrum, though not by enough, was Fitbit (NYSE:). The fitness tracker ticker jumped more than 11% on a rumor that it was considering selling itself to a so-far-unnamed suitor.
Headed into the new trading week, it’s the stock charts of MSCI (NYSE:), Abbott Laboratories (NYSE:) and Macerich (NYSE:) that are of the most interest. Here’s why, and what’s apt to be next.
Macerich (MAC)
Macerich shares have been losing ground for a couple of years now, with seemingly no end in sight. Although up for the past few weeks, that move didn’t necessarily snap the losing streak.
Except, that gain may have set the stage for a recovery effort. After such a prolonged selloff, the stock’s certainly ripe for a rebound. And, another missing link has finally materialized. Fortunately, the lines in the sand have become very clear.
• The most important of those lines is the one that has steered MAC stock lower since the August-2018 peak, marked as a yellow dashed line on both stock charts.
• The action over the course of the past month exhibits many of the clues of a reversal. Namely, volume swelled into the bottom from last month, and the turnaround has taken shape on even higher volume. It’s a sign of a pivot from a net-selling to a net-buying environment.
• Even if the falling resistance line is broken, notice the gray 100-day moving average line could still bring a quick end to that effort. It needs to be cleared as well.
Abbott Laboratories (ABT)
The past couple of months haven’t been especially good ones for Abbott Laboratories shareholders. After an incredibly bullish summer following a great start to the new year, the stock has fallen back.
That selloff is part of a well-established pattern, though, and that pattern has been amazingly well defined by straight support and resistance lines. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. Whether you want to buy it or short it depends on what happens next, and your intended timeframe.
• There are two sets of support and resistance levels. The lesser ones are marked as yellow lines on both stock charts, while the bigger ones are plotted in light blue.
• Though edging lower, the gray 100-day moving average line has thus far held up as a support level, much like it did back in May.
• The white 200-day moving average line is also in play here, so if the short-term, yellow floor that’s guided Abbott to higher lows since the end of last year doesn’t hold up, ABT stock doesn’t necessarily have to fall all the way back to the mid-$70’s.
MSCI (MSCI)
Finally, although MSCI looked (and was) unstoppable through the first half of the year, the rally was stopped cold as the second half began. It didn’t slip over the edge of the cliff though, so to speak, until last week — and Friday in particular — when a sizeable stumble dragged shares below a trio of key moving average lines. Those same moving averages, in fact, also dished out sell signals of their own.
• The divergence of those three moving average lines that started to take shape in February has not only ended, the convergence is starting to become a divergence again … in the other direction.
• Take a close look at the daily volume bars, and the red, bearish ones in particular. They’ve become decidedly taller than average since July, and continue to rise.
• Zooming out to the weekly chart of MSCI stock makes clear just how overextended this off-the-radar financial services was. It also illustrates how the gray 100-day moving average line has been a make-or-break level in the past … the white 200-day moving average line as well, although less so.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website , or follow him on Twitter, at @jbrumley.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) The past couple of months haven’t been especially good ones for Abbott Laboratories shareholders. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. • The white 200-day moving average line is also in play here, so if the short-term, yellow floor that’s guided Abbott to higher lows since the end of last year doesn’t hold up, ABT stock doesn’t necessarily have to fall all the way back to the mid-$70’s. | • The white 200-day moving average line is also in play here, so if the short-term, yellow floor that’s guided Abbott to higher lows since the end of last year doesn’t hold up, ABT stock doesn’t necessarily have to fall all the way back to the mid-$70’s. Abbott Laboratories (ABT) The past couple of months haven’t been especially good ones for Abbott Laboratories shareholders. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. | • The white 200-day moving average line is also in play here, so if the short-term, yellow floor that’s guided Abbott to higher lows since the end of last year doesn’t hold up, ABT stock doesn’t necessarily have to fall all the way back to the mid-$70’s. Abbott Laboratories (ABT) The past couple of months haven’t been especially good ones for Abbott Laboratories shareholders. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. | • The white 200-day moving average line is also in play here, so if the short-term, yellow floor that’s guided Abbott to higher lows since the end of last year doesn’t hold up, ABT stock doesn’t necessarily have to fall all the way back to the mid-$70’s. Abbott Laboratories (ABT) The past couple of months haven’t been especially good ones for Abbott Laboratories shareholders. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. |
32921.0 | 2019-09-20 00:00:00 UTC | Noteworthy Friday Option Activity: MRK, ABT, ARNA | ABT | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-mrk-abt-arna-2019-09-20 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Merck & Co Inc (Symbol: MRK), where a total volume of 32,679 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.2% of MRK's average daily trading volume over the past month, of 7.7 million shares. Particularly high volume was seen for the $85 strike call option expiring September 20, 2019, with 4,209 contracts trading so far today, representing approximately 420,900 underlying shares of MRK. Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) options are showing a volume of 17,108 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 42.2% of ABT's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $87.50 strike call option expiring October 18, 2019, with 4,102 contracts trading so far today, representing approximately 410,200 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $87.50 strike highlighted in orange:
And Arena Pharmaceuticals Inc (Symbol: ARNA) options are showing a volume of 1,490 contracts thus far today. That number of contracts represents approximately 149,000 underlying shares, working out to a sizeable 41.5% of ARNA's average daily trading volume over the past month, of 358,965 shares. Especially high volume was seen for the $65 strike call option expiring January 17, 2020, with 850 contracts trading so far today, representing approximately 85,000 underlying shares of ARNA. Below is a chart showing ARNA's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for MRK options, ABT options, or ARNA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $87.50 strike call option expiring October 18, 2019, with 4,102 contracts trading so far today, representing approximately 410,200 underlying shares of ABT. Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 17,108 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 42.2% of ABT's average daily trading volume over the past month, of 4.1 million shares. | Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 17,108 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 42.2% of ABT's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $87.50 strike call option expiring October 18, 2019, with 4,102 contracts trading so far today, representing approximately 410,200 underlying shares of ABT. | That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 42.2% of ABT's average daily trading volume over the past month, of 4.1 million shares. Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 17,108 contracts thus far today. Particularly high volume was seen for the $87.50 strike call option expiring October 18, 2019, with 4,102 contracts trading so far today, representing approximately 410,200 underlying shares of ABT. | Below is a chart showing ARNA's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for MRK options, ABT options, or ARNA options, visit StockOptionsChannel.com. Below is a chart showing MRK's trailing twelve month trading history, with the $85 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 17,108 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 42.2% of ABT's average daily trading volume over the past month, of 4.1 million shares. |
32922.0 | 2019-09-17 00:00:00 UTC | Health Care Sector Update for 09/17/2019: IMMP,ABT,ACRS,ADPT,AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-09-17-2019%3A-immpabtacrsadptamgn-2019-09-17 | nan | nan | Top Health Care Stocks
JNJ -0.05%
PFE -1.06%
ABT +0.21%
MRK +0.60%
AMGN +1.18%
Health care stocks were hanging on to small gains, with the NYSE Health Care Index climbing over 0.2% in late trade while the shares of health care companies in the S&P 500 also were up slightly more than 0.1% as a group. The Nasdaq Biotechnology index also posting a nearly 0.1% advance.
Among health care stocks moving on news:
(+) Immutep (IMMP) rose almost 3% on Tuesday after the immunotherapeutic company said it has received a patent from Japanese regulators for its LAG525 antibody for the treatment of cancer and infectious disease. The LAG525 was developed through Immutep's partnership with Novartis (NVS), building on its IMP701 antibody. Patent protection for LAG525 will expire in 2035.
In other sector news:
(+) Aclaris Therapeutics (ACRS) was 70% higher after reporting positive results for its A-101 drug candidate during the first of two phase III trials, with the 45% topical solution meeting all primary and secondary endpoints and achieving statistically significant clearance of common warts compared with patients in the placebo group. The company is expecting to report data from the second late-stage trial during the final three months of 2019.
(+) Abbott Laboratories (ABT) was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. The US Food and Drug Administration previously approved both devices.
(-) Adaptive Biotechnologies (ADPT) turned 2% lower in late trade as it disclosed a four-year global agreement with larger biotechnology rival Amgen (AMGN) for the use of its next-generation sequencing-based clonoSEQ assay in Amgen's hematology drug development program. Adaptive will receive yearly development fees on top of sequencing payments in exchange for monitoring patient remissions and providing analysis for ongoing and future clinical trials.
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 edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Among health care stocks moving on news: (+) Immutep (IMMP) rose almost 3% on Tuesday after the immunotherapeutic company said it has received a patent from Japanese regulators for its LAG525 antibody for the treatment of cancer and infectious disease. In other sector news: (+) Aclaris Therapeutics (ACRS) was 70% higher after reporting positive results for its A-101 drug candidate during the first of two phase III trials, with the 45% topical solution meeting all primary and secondary endpoints and achieving statistically significant clearance of common warts compared with patients in the placebo group. | (+) Abbott Laboratories (ABT) was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Top Health Care Stocks Health care stocks were hanging on to small gains, with the NYSE Health Care Index climbing over 0.2% in late trade while the shares of health care companies in the S&P 500 also were up slightly more than 0.1% as a group. | (+) Abbott Laboratories (ABT) was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Health care stocks were hanging on to small gains, with the NYSE Health Care Index climbing over 0.2% in late trade while the shares of health care companies in the S&P 500 also were up slightly more than 0.1% as a group. Among health care stocks moving on news: (+) Immutep (IMMP) rose almost 3% on Tuesday after the immunotherapeutic company said it has received a patent from Japanese regulators for its LAG525 antibody for the treatment of cancer and infectious disease. | (+) Abbott Laboratories (ABT) was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Top Health Care Stocks The Nasdaq Biotechnology index also posting a nearly 0.1% advance. |
32923.0 | 2019-09-17 00:00:00 UTC | Health Care Sector Update for 09/17/2019: ABT,ACRS,ADPT,AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-09-17-2019%3A-abtacrsadptamgn-2019-09-17 | nan | nan | Top Health Care Stocks
JNJ +0.14%
PFE -1.00%
ABT +0.30%
MRK +0.73%
AMGN +0.61%
Health care stocks were rising, with the NYSE Health Care Index climbing almost 0.3% in recent trade while the shares of health care companies in the S&P 500 were up fractionally. The Nasdaq Biotechnology index also hanging on to a 0.2% advance this afternoon.
Among health care stocks moving on news:
(+) Abbott Laboratories (ABT) still was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. The US Food and Drug Administration previously approved both devices.
In other sector news:
(+) Aclaris Therapeutics (ACRS) was 81% higher after reporting positive results for its A-101 drug candidate during the first of two phase III trials, with the 45% topical solution meeting all primary and secondary endpoints and achieving statistically significant clearance of common warts compared with patients in the placebo group. The company is expecting to report data from the second late-stage trial during the final three months of 2019.
(-) Adaptive Biotechnologies (ADPT) was 3% lower after Tuesday announcing a four-year global agreement with larger biotechnology rival Amgen (AMGN) for the use of its next generation sequencing-based clonoSEQ assay in Amgen's hematology drug development program. Under terms of the new partnership, Adaptive will receive yearly development fees on top of sequencing payments and regulatory milestones in exchange for monitoring patient remissions and providing analysis for ongoing and future clinical trials.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among health care stocks moving on news: (+) Abbott Laboratories (ABT) still was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. In other sector news: (+) Aclaris Therapeutics (ACRS) was 81% higher after reporting positive results for its A-101 drug candidate during the first of two phase III trials, with the 45% topical solution meeting all primary and secondary endpoints and achieving statistically significant clearance of common warts compared with patients in the placebo group. Under terms of the new partnership, Adaptive will receive yearly development fees on top of sequencing payments and regulatory milestones in exchange for monitoring patient remissions and providing analysis for ongoing and future clinical trials. | Among health care stocks moving on news: (+) Abbott Laboratories (ABT) still was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Top Health Care Stocks Health care stocks were rising, with the NYSE Health Care Index climbing almost 0.3% in recent trade while the shares of health care companies in the S&P 500 were up fractionally. | Among health care stocks moving on news: (+) Abbott Laboratories (ABT) still was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Health care stocks were rising, with the NYSE Health Care Index climbing almost 0.3% in recent trade while the shares of health care companies in the S&P 500 were up fractionally. (-) Adaptive Biotechnologies (ADPT) was 3% lower after Tuesday announcing a four-year global agreement with larger biotechnology rival Amgen (AMGN) for the use of its next generation sequencing-based clonoSEQ assay in Amgen's hematology drug development program. | Among health care stocks moving on news: (+) Abbott Laboratories (ABT) still was edging higher in recent trade after the medical device company earlier said European regulators have cleared its Amplatzer Piccolo occluder and the Masters HP rotatable mechanical heart valve for public sales, making the two devices used to treat certain congenital heart defects in infants and children available in Europe and other countries that recognize the CE Mark. Top Health Care Stocks The Nasdaq Biotechnology index also hanging on to a 0.2% advance this afternoon. |
32924.0 | 2019-09-16 00:00:00 UTC | Interesting ABT Put And Call Options For January 2022 | ABT | https://www.nasdaq.com/articles/interesting-abt-put-and-call-options-for-january-2022-2019-09-16 | nan | nan | Investors in Abbott Laboratories (Symbol: ABT) saw new options begin trading today, for the January 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 858 days until expiration the newly trading contracts represent a possible 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 January 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $82.50 strike price has a current bid of $9.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $82.50, but will also collect the premium, putting the cost basis of the shares at $73.50 (before broker commissions). To an investor already interested in purchasing shares of ABT, that could represent an attractive alternative to paying $83.22/share today.
Because the $82.50 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 59%. 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 10.91% return on the cash commitment, or 4.64% 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 $82.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $85.00 strike price has a current bid of $8.50. If an investor was to purchase shares of ABT stock at the current price level of $83.22/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $85.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.35% if the stock gets called away at the January 2022 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABT shares really soar, which is why looking at the trailing twelve month trading history for Abbott Laboratories, as well as studying the business fundamentals becomes important. Below is a chart showing ABT's trailing twelve month trading history, with the $85.00 strike highlighted in red:
Considering the fact that the $85.00 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 46%. 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 10.21% boost of extra return to the investor, or 4.34% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 32%, while the implied volatility in the call contract example is 25%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $83.22) to be 23%. 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 $85.00 strike highlighted in red: Considering the fact that the $85.00 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 January 2022 expiration. | Below is a chart showing ABT's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 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 January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new January 2022 contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABT's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 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 January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new January 2022 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABT options chain for the new January 2022 contracts and identified one put and one call contract of particular interest. Below is a chart showing ABT's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 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 January 2022 expiration. |
32925.0 | 2019-09-16 00:00:00 UTC | Sanofi, Abbott To Integrate Glucose Sensing And Insulin Delivery Technologies | ABT | https://www.nasdaq.com/articles/sanofi-abbott-to-integrate-glucose-sensing-and-insulin-delivery-technologies-2019-09-16 | nan | nan | (RTTNews) - Sanofi (SNYNF, SNY) and Abbott have partnered to integrate glucose sensing and insulin delivery technologies that would initially enable data sharing, at the consent of the user, between Abbott's FreeStyle Libre mobile app and cloud software and Sanofi's connected insulin pens, apps and cloud software that are currently in development.
The data sharing will enable both people with diabetes and their doctors to make better informed treatment decisions around medication, nutrition and lifestyle, Sanofi said in a statement.
Sanofi said it is currently working to provide connected pens, apps and cloud software that will be compatible with the FreeStyle Libre system and its compatible digital health tools. They aim to bring this to people with diabetes within the next few years, subjects to local regulatory approvals.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Sanofi (SNYNF, SNY) and Abbott have partnered to integrate glucose sensing and insulin delivery technologies that would initially enable data sharing, at the consent of the user, between Abbott's FreeStyle Libre mobile app and cloud software and Sanofi's connected insulin pens, apps and cloud software that are currently in development. The data sharing will enable both people with diabetes and their doctors to make better informed treatment decisions around medication, nutrition and lifestyle, Sanofi said in a statement. They aim to bring this to people with diabetes within the next few years, subjects to local regulatory approvals. | (RTTNews) - Sanofi (SNYNF, SNY) and Abbott have partnered to integrate glucose sensing and insulin delivery technologies that would initially enable data sharing, at the consent of the user, between Abbott's FreeStyle Libre mobile app and cloud software and Sanofi's connected insulin pens, apps and cloud software that are currently in development. The data sharing will enable both people with diabetes and their doctors to make better informed treatment decisions around medication, nutrition and lifestyle, Sanofi said in a statement. Sanofi said it is currently working to provide connected pens, apps and cloud software that will be compatible with the FreeStyle Libre system and its compatible digital health tools. | (RTTNews) - Sanofi (SNYNF, SNY) and Abbott have partnered to integrate glucose sensing and insulin delivery technologies that would initially enable data sharing, at the consent of the user, between Abbott's FreeStyle Libre mobile app and cloud software and Sanofi's connected insulin pens, apps and cloud software that are currently in development. Sanofi said it is currently working to provide connected pens, apps and cloud software that will be compatible with the FreeStyle Libre system and its compatible digital health tools. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Sanofi (SNYNF, SNY) and Abbott have partnered to integrate glucose sensing and insulin delivery technologies that would initially enable data sharing, at the consent of the user, between Abbott's FreeStyle Libre mobile app and cloud software and Sanofi's connected insulin pens, apps and cloud software that are currently in development. The data sharing will enable both people with diabetes and their doctors to make better informed treatment decisions around medication, nutrition and lifestyle, Sanofi said in a statement. Sanofi said it is currently working to provide connected pens, apps and cloud software that will be compatible with the FreeStyle Libre system and its compatible digital health tools. |
32926.0 | 2019-09-15 00:00:00 UTC | Better Buy: Abbott Laboratories vs. Dexcom | ABT | https://www.nasdaq.com/articles/better-buy%3A-abbott-laboratories-vs.-dexcom-2019-09-15 | nan | nan | Two companies stand at the forefront of the continuous glucose monitoring (CGM) systems market. Abbott Laboratories (NYSE: ABT) has enjoyed tremendous success with its Freestyle Libre CGM. Dexcom (NASDAQ: DXCM) has also seen sales skyrocket for its G6 CGM.
Shares of both companies have performed really well over the past couple of years. But which stock is the better pick for long-term investors now? Here's how Abbott and Dexcom stack up against each other.
Image source: Getty Images.
The case for Abbot Labs
Abbott Labs ranks as the second-biggest medical device stock on the market based on market cap. But the company doesn't focus exclusively on medical devices. Abbott also has multibillion-dollar established pharmaceuticals, diagnostics, and nutritional products businesses.
The main reason to consider buying Abbott Labs is that it should be in a great position to deliver a solid total return to long-term investors. One component of that total return is Abbott's dividend, which currently yields 1.5%. Abbott is a member of the elite group of stocks known as Dividend Aristocrats and has increased its dividend for 47 consecutive years. The company has paid a dividend every quarter since 1924.
But the case for Abbott isn't limited to its strong dividend. Wall Street analysts project the company will grow its earnings by an average of nearly 12% annually over the next five years.
A key driver for that growth will almost certainly be Abbott's Freestyle Libre CGM. Abbott CEO Miles White stated in the company's second-quarter conference call that he thinks the company's second version of the Libre device, which will meet U.S. standards for integrated continuous glucose monitoring systems, should generate annual sales of at least $5 billion in the not-too-distant future.
Abbott should also be able to count on strong growth from its structural heart business, with its MitraClip device for treating mitral regurgitation leading the way. The company's diagnostics business also appears to be in a solid position to deliver growth, thanks in large part to the continued momentum for its Alinity diagnostic instruments.
It's possible that Abbott could make additional acquisitions to fuel growth even more. However, with its strong organic growth prospects, the company doesn't have to complete any significant transactions to deliver an attractive return over the long run.
The case for Dexcom
Dexcom isn't the healthcare giant that Abbott is. It doesn't pay a dividend as Abbott does. But Dexcom's growth prospects appear to be fantastic.
Analysts think Dexcom will be able to deliver average annual earnings growth of 140% over the next five years. Is that sizzling rate of growth really possible? I think so.
The key is the continued rapid adoption of Dexcom's G6 CGM system. Thanks to tremendous sales growth for the G6, Dexcom trounced consensus revenue and earnings estimates in the second quarter. The company also boosted its full-year revenue outlook.
Dexcom is on track to double its manufacturing capacity for its G6 devices this year. This increase was needed to enable the company to beef up its sales efforts outside of the U.S. But Dexcom also anticipates even more sales growth inside the U.S., especially as it launches the G6 system to Medicare patients.
The company isn't resting on its laurels. Dexcom hopes to launch a new and improved CGM device called the G7 by early 2021 at the latest. The G7 will be smaller than the G6 and will be more cost-effective. This should help Dexcom compete better against Abbott's new Libre version.
Dexcom also thinks that the G7 could enable it to expand into adjacent markets. The company especially likes opportunities for CGM in gestational diabetes monitoring and the intermittent monitoring of diabetes in hospital patients.
Better buy
If you like win-win decisions, the choice between Abbott and Dexcom will be right up your alley. I don't think investors would go wrong buying either stock.
My view is that which stock to pick depends primarily on your investing style. If you're retired and are seeking income, Abbott is definitely the better stock to buy with its long track record of dividend increases. Even if you're younger, Abbott would be more suited for you if you're a relatively conservative investor. While Abbott would also be a solid stock for growth-oriented investors, Dexcom might be more attractive for aggressive growth investors.
Keep in mind that the risks associated with investing in healthcare stocks are elevated right now as next year's national elections approach. The potential for major healthcare reform could take a toll even on solid healthcare stocks like Abbott and Dexcom. However, I think that the long-term prospects for both stocks are very good.
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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) has enjoyed tremendous success with its Freestyle Libre CGM. The main reason to consider buying Abbott Labs is that it should be in a great position to deliver a solid total return to long-term investors. Abbott should also be able to count on strong growth from its structural heart business, with its MitraClip device for treating mitral regurgitation leading the way. | Abbott Laboratories (NYSE: ABT) has enjoyed tremendous success with its Freestyle Libre CGM. Two companies stand at the forefront of the continuous glucose monitoring (CGM) systems market. The main reason to consider buying Abbott Labs is that it should be in a great position to deliver a solid total return to long-term investors. | Abbott Laboratories (NYSE: ABT) has enjoyed tremendous success with its Freestyle Libre CGM. Abbott CEO Miles White stated in the company's second-quarter conference call that he thinks the company's second version of the Libre device, which will meet U.S. standards for integrated continuous glucose monitoring systems, should generate annual sales of at least $5 billion in the not-too-distant future. The case for Dexcom Dexcom isn't the healthcare giant that Abbott is. | Abbott Laboratories (NYSE: ABT) has enjoyed tremendous success with its Freestyle Libre CGM. But the case for Abbott isn't limited to its strong dividend. The case for Dexcom Dexcom isn't the healthcare giant that Abbott is. |
32927.0 | 2019-09-15 00:00:00 UTC | What Is a Dividend Aristocrat? | ABT | https://www.nasdaq.com/articles/what-is-a-dividend-aristocrat-2019-09-15 | nan | nan | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats.
In this article, we'll break down exactly why Dividend Aristocrats are so attractive to investors and share a few aristocrat stocks that could help unlock the full potential of your portfolio.
What is a dividend?
A dividend is a payment from a company's profits to its shareholders. Just as all stocks are created differently, so are dividends. Different companies pay out different dividend amounts. For example, if a company pays 3% of its total stock price each quarter, an investor with $100 in that stock gets $3 back every quarter. Of course, this number can fluctuate vastly depending on a company's success.
Not all companies pay their investors dividends. Typically, the companies that offer consistent and increasingly higher dividend yields are older and more established businesses. These are companies that have been around for decades, perhaps even centuries, and can afford to let go of some of their liquid capital each quarter without needing to immediately reinvest it in the business to fund things like research, development, marketing, or paying off debt.
A special collection of established and reliable companies known as Dividend Aristocrats can help make investing in dividends a relative no-brainer.
Image Source: Getty Images.
What are Dividend Aristocrats?
The term "Dividend Aristocrats" is trademarked by the financial firm Standard & Poor's, and S&P maintains strict definitions for several classes of aristocrat stocks. Most commonly, though, investors who are referring to Dividend Aristocrats colloquially are talking about companies on the S&P 500 index that have increased their dividend payouts for 25 consecutive years or more, at least once a year. These companies have never decreased their dividend payout to shareholders during that time.
First established in 1989, this index contained the most stocks in 2001, but given considerable changes in dividend policy among companies over the past two decades or so, the list has undergone significant scale-backs and revisions.
The number of companies on the list tends to coincide with historically significant bear markets. For example, the initial list of just 26 companies was published 25 years after the down years of 1973-1974. That tough economy very likely forced many companies to freeze or drop their dividends, disqualifying them from the original list 25 years later. Likewise, the list peaked in 2001 at 64 and again at 60 in 2008. The recessions that immediately followed those peaks once again forced numerous Dividend Aristocrats off the list.
Many stocks listed on the index are familiar household names. Coca-Cola, ExxonMobil, and McDonald's have all managed to retain their status as Dividend Aristocrats for more than a quarter of a century. There are 57 companies on the list currently, with the consumer staples category containing the most. These include companies like The Clorox Company, Colgate Palmolive, Kimberly Clark, and PepsiCo. But industrials don't trail far behind, making up more than a fifth of the companies listed. Think 3M, General Dynamics, and Stanley Black and Decker.
The list of Dividend Aristocrats tends to fluctuate semiregularly, with new companies being added (and, unfortunately, occasionally subtracted) every year. Here's a full list of the S&P 500 Dividend Aristocrats as it stood in August 2019:
Source: S&P Dow Jones Indices.
Why Dividend Aristocrats make strong investments
Not just any company is capable of increasing its dividend for 25-plus years. The sustained success required is, almost by definition, next to impossible. Only around 10% of companies on the S&P 500 qualify today, after all. To achieve such a feat, a company must be consistent and resilient and have strong competitive advantages and excellent capital allocation.
Economically speaking, this means a company must have a demonstrated record of raising its earnings and cash flow and sharpening its balance sheet to make those payments to its eager investors. That combination of factors leads to strong fundamental performance first. The dividend strength is a reflection of those fundamentals, not the other way around. In other words, a company doesn't become successful because it offers dividends; a company offers dividends because it is successful.
How Dividend Aristocrats benefit your returns
When it comes to Dividend Aristocrats' yield, a couple of percentage points might not sound like much: 3% of a $100 stock barely buys you a candy bar at your local gas station. But it's not just about how high a yield is. One should also consider the payout ratio, which is how smart investors examine a company's sustainability. Mathematically speaking, a payout ratio is calculated by dividing dividends per share (DPS) by earnings per share (EPS).
Let's look at an example. Say a company has earnings per share of $5 and dividends per share of $2. Its payout ratio would therefore be 40%.
Investors use this figure to determine the sustainability of the company's business. The higher its payout ratio is, the more a company is spending to maintain its dividend payments. If, for example, a stock's payout ratio is 100%, it means the company is spending all of its earnings on paying investors dividends. This is an unsustainable model for obvious reasons.
But Dividend Aristocrats are different. They're resilient, established companies with proven records. They're bringing in sustainable income, and we can mostly trust that they aren't going anywhere. They can afford to toggle their dividend payout ratio -- and consistently raise it -- without upsetting their balance sheets.
Many of the companies listed as Dividend Aristocrats, therefore, have been in business for decades. Some, like 3M, Coca-Cola, and PepsiCo have lasted more than a century. Dividend aristocrats also tend to follow the S&P 500, many times outperforming it. Since many of these companies are also on the S&P 500, it makes sense that the Dividend Aristocrats would follow such a reliable trend. However, not all companies on the S&P offer dividends, and those that do haven't necessarily maintained an increasing dividend yield for more than 25 years. Investing in an index of these elite and reliable companies, therefore, makes for a smart bet in the long run.
Data source: YCharts.
Like any other stock, Dividend Aristocrats are subject to market change. An argument can be made that such mammoth companies are under more pressure -- and therefore are criticized more for a misstep or underperformance -- because they are hailed as such sustainable and sound investments. Any mistake is recorded, analyzed, and often mentioned on TV, heightening an audience's awareness. For instance, if Coca-Cola makes a bad bet on a new product, the market notices more than if a lesser-known company or one that's only recently gone public makes the same ill-advised judgment call. But it's not all bad for Coca-Cola or for its investors. The company's stock is capable of absorbing mistakes better than a new company can, since it has a proven track record and has likely weathered similar errors in the past.
Dividend aristocrats are therefore good (or, at least, better) bets if you're trying to sift through the noise of a constantly fluctuating market. This isn't to say they're bulletproof, but they are resistant to nuanced daily fluctuations and have been around for generations. And since they've demonstrated a repeated ability to line investors' pockets with a little extra cash -- just for putting their trust (and money) with them -- they enjoy a coveted consumer confidence that few other companies have.
Dividend Kings
Investors have come up with other terms to talk about stocks with even more impressive dividend histories. For instance, Dividend Kings are an exclusive grouping of companies that have raised their dividends for 50 or more years, every single year. That's no small feat when you consider how vastly stocks can fluctuate on a day-to-day basis, let alone year to year. Consider what the market has seen over the past 50 years: global unrest, wars, rising interest rates, falling interest rates, historic highs, lows, 10 presidencies, a technological boom, automation, disruption, disruption, disruption. And somehow, these companies have weathered it all. It's amazing to consider, really. And the list is always changing. It's not easy being king, and very few retain the crown.
As of this year, only 26 companies are considered Dividend Kings. They are:
Source: dripinvesting.org.
Keep in mind that being a Dividend King does not make a company a Dividend Aristocrat. This sounds counterintuitive, since it seems as if companies that managed to double the Dividend Aristocrats' 25-year track record should fit seamlessly into the category. But at least as strictly defined, Dividend Aristocrats belong to the S&P 500 and therefore also must be American-based companies of a certain market cap, whereas Dividend Kings are measured only by their dividend records.
Drawbacks of Dividend Aristocrats
When it comes to the market, everyone has an opinion. And when we're talking about Dividend Aristocrats, even though they may seem too good to be true, many investors see a certain drawback to investing only in stocks that offer such steady dividends.
One common critique of Dividend Aristocrats is that they're unimaginative. Plenty of people say that these payouts are a waste of money, since companies will never see a tangible return from their generosity. Rather than reinvesting extra capital in their own business for something like marketing, research and development, expansion, or other areas of improvement, the common complaint is that these companies just send money out the door without putting it to work for them.
This criticism is somewhat valid; it certainly adds up when a company like PepsiCo regularly gives away almost $4 on every share. But these are huge companies, many of which have been around for more than a century. Sure, Coca-Cola, PepsiCo, and Caterpillar can continue to expand -- at least marginally -- and continue to acquire smaller companies in the name of growth. But on a macro level, most Dividend Aristocrats have already hit their critical mass. How many countries have at least one McDonald's within their borders? (Answer for your next cocktail party: 117 and counting.)
There's still at least marginal room to grow, but these hugely lucrative companies don't need to reinvest each and every penny they make in their businesses to keep their heads above water. Newer companies, disruptors, and less profitable ones do.
It's also worth noting that while offering dividends isn't inherently risky, it does mean that a company repeatedly raising its dividend has a larger target on its back. When companies randomly slash their dividends dramatically with little forewarning (yes, it happens), investors panic, which can drive a stock price down.
Newer companies such as Netflix or Lyft might be exciting, but it's far riskier to overweight your portfolio with relatively untested, high-growth stocks like those than to stick with companies that have slower growth but proven records and steady dividends. Aristocrats, therefore, are slow and safe bets.
So what does it all mean?
Put simply, investing in Dividend Aristocrats is a Foolish (with a capital F!) way to invest! No, filling your portfolio with tons of shares of Johnson & Johnson probably won't make you rich overnight. Overweighting your portfolio with one company would not only be risky, but it would also take the fun and creativity out of investing!
Instead, we suggest doing your homework:
Pick a dozen or so stocks from this list and research them thoroughly.
Use our knowledge center and read about our top 3 dividend stocks to buy this year and hold forever.
Look beyond share prices and past performance.
Sure, this research will provide indicators as to whether purchasing a particular stock is a good idea, but it won't tell the whole story. Take the individual dividend yield percentage into account, consider a company's mission and whether you believe in it, and remember the most important factor to any company's success: its leadership. As we always say, a CEO is the most important key to a business's success in the long run. So if you don't like a company's CEO, board, or long-term vision, consider skipping it altogether.
Adding Dividend Aristocrats to your portfolio and sitting on them for the long haul isn't necessarily foolproof. Market downturns, busts, and recessions can still happen. But Aristocrats will deliver a small amount of steady and reliable income as your portfolio grows (and your companies succeed) over the years. And when the market inevitably corrects or a black-swan event shocks the world (let's hope it doesn't, but it's best to be prepared), you'll be glad you tucked away a few safe bets that bolster your portfolio with a little extra cash for a rainy day.
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Jena Greene has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix. The Motley Fool owns shares of Nordson. The Motley Fool is short shares of Clorox, Colgate-Palmolive, Kimberly-Clark, and Procter & Gamble. The Motley Fool recommends 3M, Aflac, Becton, Dickinson, Cintas, Ecolab, Johnson & Johnson, Lowe's, McCormick, Nucor, Roper Technologies, and Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These are companies that have been around for decades, perhaps even centuries, and can afford to let go of some of their liquid capital each quarter without needing to immediately reinvest it in the business to fund things like research, development, marketing, or paying off debt. Rather than reinvesting extra capital in their own business for something like marketing, research and development, expansion, or other areas of improvement, the common complaint is that these companies just send money out the door without putting it to work for them. And when the market inevitably corrects or a black-swan event shocks the world (let's hope it doesn't, but it's best to be prepared), you'll be glad you tucked away a few safe bets that bolster your portfolio with a little extra cash for a rainy day. | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats. Why Dividend Aristocrats make strong investments Not just any company is capable of increasing its dividend for 25-plus years. Consider what the market has seen over the past 50 years: global unrest, wars, rising interest rates, falling interest rates, historic highs, lows, 10 presidencies, a technological boom, automation, disruption, disruption, disruption. | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats. In other words, a company doesn't become successful because it offers dividends; a company offers dividends because it is successful. But at least as strictly defined, Dividend Aristocrats belong to the S&P 500 and therefore also must be American-based companies of a certain market cap, whereas Dividend Kings are measured only by their dividend records. | What is a dividend? What are Dividend Aristocrats? But Dividend Aristocrats are different. |
32928.0 | 2019-09-13 00:00:00 UTC | Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG | ABT | https://www.nasdaq.com/articles/daily-dividend-report%3A-intc-abt-avgo-tjx-eog-2019-09-13 | nan | nan | Intel has declared a quarterly dividend of $0.315 per share ($1.26 per share on an annual basis) on the company's common stock. The dividend will be payable on Dec. 1, 2019, to stockholders of record on Nov. 7, 2019.
Abbott (ABT) declared a quarterly common dividend of 32 cents per share. The cash dividend is payable Nov. 15, 2019, to shareholders of record at the close of business on Oct. 15, 2019.
Broadcom has approved a quarterly cash dividend of $2.65 per share. The dividend is payable on October 1, 2019 to stockholders of record at the close of business on September 23, 2019.
The TJX Companies (TJX) announced the declaration of a quarterly dividend on its common stock of $.23 per share payable December 5, 2019, to shareholders of record on November 14, 2019.
EOG Resources (EOG) has declared a dividend of $0.2875 per share on EOG's Common Stock, payable October 31, 2019, to stockholders of record as of October 17, 2019.
VIDEO: Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) declared a quarterly common dividend of 32 cents per share. VIDEO: Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The dividend is payable on October 1, 2019 to stockholders of record at the close of business on September 23, 2019. | Abbott (ABT) declared a quarterly common dividend of 32 cents per share. VIDEO: Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The cash dividend is payable Nov. 15, 2019, to shareholders of record at the close of business on Oct. 15, 2019. | Abbott (ABT) declared a quarterly common dividend of 32 cents per share. VIDEO: Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Intel has declared a quarterly dividend of $0.315 per share ($1.26 per share on an annual basis) on the company's common stock. | Abbott (ABT) declared a quarterly common dividend of 32 cents per share. VIDEO: Daily Dividend Report: INTC, ABT, AVGO, TJX, EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The cash dividend is payable Nov. 15, 2019, to shareholders of record at the close of business on Oct. 15, 2019. |
32929.0 | 2019-09-10 00:00:00 UTC | Notable Tuesday Option Activity: INTU, ABT, EW | ABT | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-intu-abt-ew-2019-09-10 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Intuit Inc (Symbol: INTU), where a total volume of 7,040 contracts has been traded thus far today, a contract volume which is representative of approximately 704,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 49.7% of INTU's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $280 strike call option expiring October 18, 2019, with 2,480 contracts trading so far today, representing approximately 248,000 underlying shares of INTU. Below is a chart showing INTU's trailing twelve month trading history, with the $280 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) options are showing a volume of 20,154 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47.4% of ABT's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $77.50 strike put option expiring October 18, 2019, with 3,261 contracts trading so far today, representing approximately 326,100 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
And Edwards Lifesciences Corp (Symbol: EW) saw options trading volume of 4,408 contracts, representing approximately 440,800 underlying shares or approximately 45.2% of EW's average daily trading volume over the past month, of 975,610 shares. Particularly high volume was seen for the $230 strike call option expiring October 18, 2019, with 1,069 contracts trading so far today, representing approximately 106,900 underlying shares of EW. Below is a chart showing EW's trailing twelve month trading history, with the $230 strike highlighted in orange:
For the various different available expirations for INTU options, ABT options, or EW 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 $77.50 strike put option expiring October 18, 2019, with 3,261 contracts trading so far today, representing approximately 326,100 underlying shares of ABT. Below is a chart showing INTU's trailing twelve month trading history, with the $280 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 20,154 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47.4% of ABT's average daily trading volume over the past month, of 4.3 million shares. | Below is a chart showing INTU's trailing twelve month trading history, with the $280 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 20,154 contracts thus far today. Below is a chart showing ABT's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Edwards Lifesciences Corp (Symbol: EW) saw options trading volume of 4,408 contracts, representing approximately 440,800 underlying shares or approximately 45.2% of EW's average daily trading volume over the past month, of 975,610 shares. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47.4% of ABT's average daily trading volume over the past month, of 4.3 million shares. | Below is a chart showing ABT's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Edwards Lifesciences Corp (Symbol: EW) saw options trading volume of 4,408 contracts, representing approximately 440,800 underlying shares or approximately 45.2% of EW's average daily trading volume over the past month, of 975,610 shares. Below is a chart showing INTU's trailing twelve month trading history, with the $280 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 20,154 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47.4% of ABT's average daily trading volume over the past month, of 4.3 million shares. | Especially high volume was seen for the $77.50 strike put option expiring October 18, 2019, with 3,261 contracts trading so far today, representing approximately 326,100 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Edwards Lifesciences Corp (Symbol: EW) saw options trading volume of 4,408 contracts, representing approximately 440,800 underlying shares or approximately 45.2% of EW's average daily trading volume over the past month, of 975,610 shares. Below is a chart showing EW's trailing twelve month trading history, with the $230 strike highlighted in orange: For the various different available expirations for INTU options, ABT options, or EW options, visit StockOptionsChannel.com. |
32930.0 | 2019-09-10 00:00:00 UTC | Abbott Develops Algorithm For Diagnosing Heart Attacks - Quick Facts | ABT | https://www.nasdaq.com/articles/abbott-develops-algorithm-for-diagnosing-heart-attacks-quick-facts-2019-09-10 | nan | nan | (RTTNews) - Abbott (ABT) said a new research showed that Abbott's technology developed using artificial intelligence could help doctors in diagnosing heart attacks. The study involved more than 11,000 patients.
The algorithm developed by Abbott using AI tools analyze extensive data sets and identify the variables most predictive for determining a cardiac event, such as age, sex and a person's specific troponin levels and blood sample timing.
Agim Beshiri, senior medical director, global medical and scientific affairs, Diagnostics, Abbott, said: "In the future, you could imagine using this technology to develop algorithms that help doctors not only better determine if their patient is having a heart attack or not, but potentially before a heart attack occurs."
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 a new research showed that Abbott's technology developed using artificial intelligence could help doctors in diagnosing heart attacks. The algorithm developed by Abbott using AI tools analyze extensive data sets and identify the variables most predictive for determining a cardiac event, such as age, sex and a person's specific troponin levels and blood sample timing. Agim Beshiri, senior medical director, global medical and scientific affairs, Diagnostics, Abbott, said: "In the future, you could imagine using this technology to develop algorithms that help doctors not only better determine if their patient is having a heart attack or not, but potentially before a heart attack occurs." | (RTTNews) - Abbott (ABT) said a new research showed that Abbott's technology developed using artificial intelligence could help doctors in diagnosing heart attacks. The algorithm developed by Abbott using AI tools analyze extensive data sets and identify the variables most predictive for determining a cardiac event, such as age, sex and a person's specific troponin levels and blood sample timing. Agim Beshiri, senior medical director, global medical and scientific affairs, Diagnostics, Abbott, said: "In the future, you could imagine using this technology to develop algorithms that help doctors not only better determine if their patient is having a heart attack or not, but potentially before a heart attack occurs." | (RTTNews) - Abbott (ABT) said a new research showed that Abbott's technology developed using artificial intelligence could help doctors in diagnosing heart attacks. Agim Beshiri, senior medical director, global medical and scientific affairs, Diagnostics, Abbott, said: "In the future, you could imagine using this technology to develop algorithms that help doctors not only better determine if their patient is having a heart attack or not, but potentially before a heart attack occurs." 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 a new research showed that Abbott's technology developed using artificial intelligence could help doctors in diagnosing heart attacks. The study involved more than 11,000 patients. The algorithm developed by Abbott using AI tools analyze extensive data sets and identify the variables most predictive for determining a cardiac event, such as age, sex and a person's specific troponin levels and blood sample timing. |
32931.0 | 2019-09-05 00:00:00 UTC | Abbott Begins Trial To Evaluate Transcatheter Tricuspid Valve Repair | ABT | https://www.nasdaq.com/articles/abbott-begins-trial-to-evaluate-transcatheter-tricuspid-valve-repair-2019-09-05 | nan | nan | (RTTNews) - Abbott (ABT) has launched TRILUMINATE pivotal trial to evaluate TriClip transcatheter tricuspid valve repair system for the treatment of severe tricuspid regurgitation. The study is a multi-center global study of approximately 700 patients. Patients will be randomized to receive either the TriClip device or medical therapy and followed for a total of five years.
Abbott's TriClip tricuspid valve repair system is built on the company's MitraClip technology. The TriClip device was accepted for national reimbursement consideration through a process known as "Parallel Review" by the FDA.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) has launched TRILUMINATE pivotal trial to evaluate TriClip transcatheter tricuspid valve repair system for the treatment of severe tricuspid regurgitation. Patients will be randomized to receive either the TriClip device or medical therapy and followed for a total of five years. Abbott's TriClip tricuspid valve repair system is built on the company's MitraClip technology. | (RTTNews) - Abbott (ABT) has launched TRILUMINATE pivotal trial to evaluate TriClip transcatheter tricuspid valve repair system for the treatment of severe tricuspid regurgitation. Patients will be randomized to receive either the TriClip device or medical therapy and followed for a total of five years. Abbott's TriClip tricuspid valve repair system is built on the company's MitraClip technology. | (RTTNews) - Abbott (ABT) has launched TRILUMINATE pivotal trial to evaluate TriClip transcatheter tricuspid valve repair system for the treatment of severe tricuspid regurgitation. Abbott's TriClip tricuspid valve repair system is built on the company's MitraClip technology. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott (ABT) has launched TRILUMINATE pivotal trial to evaluate TriClip transcatheter tricuspid valve repair system for the treatment of severe tricuspid regurgitation. The study is a multi-center global study of approximately 700 patients. Patients will be randomized to receive either the TriClip device or medical therapy and followed for a total of five years. |
32932.0 | 2019-08-31 00:00:00 UTC | Is Dexcom a Buy? | ABT | https://www.nasdaq.com/articles/is-dexcom-a-buy-2019-08-31 | nan | nan | DexCom (NASDAQ: DXCM) ranks as one of the hottest healthcare stocks on the market. Its shares are up over 40% year to date and have nearly quadrupled over the last five years. Despite fears that a recession could be on the way and worries about escalating trade tensions between the U.S. and China, DexCom stock is at an all-time high.
Some investors might worry that gravity could kick in for this high-flying stock. But is DexCom still a smart stock to buy?
Image source: Getty Images.
The case for buying DexCom
Probably the strongest argument for buying shares of DexCom is that the company's growth is still only in its early stages. DexCom's G6 continuous glucose monitoring (CGM) system has been a huge winner so far. Its momentum isn't slowing down, with the G6 CGM driving year-over-year sales growth of 39% in the second quarter of 2019.
DexCom plans to launch the G6 in Canada and make the system available to U.S. Medicare patients later this year. The company is on track to double its manufacturing capacity for the G6 by the end of 2019 in anticipation of higher demand.
The realities of the current state of diabetes treatment and management are stacked in DexCom's favor. Of the estimated 415 million people across the world with diabetes, only around 12.5% consistently achieve their target glucose levels. Most individuals with diabetes have glucose levels outside of desired thresholds roughly 70% of the time.
Real-time CGM provides a solution to this issue. And DexCom's G6 currently reigns as the most powerful CGM on the market. It's the only CGM that meets all of the special controls established by the U.S. Food and Drug Administration (FDA) for fully interoperable continuous glucose monitoring (iCGM) systems.
DexCom expects to launch a new CGM, the G7, by late 2020 or early 2021. This system will be even smaller and more cost-effective than the G6 and have longer sensor wear. DexCom thinks that the G7 will accelerate its expansion into adjacent markets beyond its core intensive insulin focus.
There are around 3.2 million patients in the U.S. that are included in DexCom's core market. The company currently claims a little under 20% of this market. DexCom is especially targeting the gestational diabetes opportunity and the intermittent monitoring of diabetes in hospital patients, which represent another 4 million and 14 million patients, respectively.
A few wrinkles
One knock against DexCom is that its share price already reflects expectations of significant growth. Shares currently trade at 123 times expected earnings. The consensus Wall Street one-year price target for the stock is less than 3% above DexCom's current share price.
Achieving the lofty growth projections isn't a slam dunk, either. DexCom isn't the only player in the CGM market. Abbott Labs' (NYSE: ABT) lower-cost FreeStyle Libre has taken the market by storm as well, with sales growing even faster than the G6.
Abbott awaits FDA clearance to market a new version of its CGM that meets all iCGM standards. Abbott CEO Miles White stated in the company's Q2 conference call that he expects the new Libre device will achieve annual sales of at least $5 billion. DexCom's competition could soon intensify, and it's going up against a much bigger rival with Abbott.
It's also possible that DexCom will find its expansion into adjacent markets is more challenging than anticipated. At this point, the company is only exploring how it can move into some of these new markets.
To buy or not to buy?
The decision about buying DexCom right now boils down to whether or not the company can keep its phenomenal growth rate going. I think it can.
I referred to Wall Street's one-year price target for DexCom earlier, but there's another estimate that I didn't mention. Analysts expect the company will generate average annual earnings growth of 140% over the next five years. That puts DexCom's seemingly sky-high valuation in a different light.
What about the stiffer competition from Abbott Labs? My view is that the market is big enough to support both DexCom and Abbott. DexCom should be able to compete much more effectively against FreeStyle Libre with the G7 because of the lower manufacturing cost for the new system. I don't expect the G7 to beat Libre on price, but a lower cost will help tremendously.
As for expanding into adjacent markets, I won't be surprised if it takes longer than many hope it will. However, my take is that CGM offers significant benefits in managing gestational diabetes, in hospital intermittent glucose monitoring, and for patients with type 2 diabetes who aren't intensive insulin users.
I believe that the future continues to look very bright for DexCom. There could be some bumps in the road along the way, but I think this stock is a good pick for investors with a long-term perspective.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs' (NYSE: ABT) lower-cost FreeStyle Libre has taken the market by storm as well, with sales growing even faster than the G6. It's the only CGM that meets all of the special controls established by the U.S. Food and Drug Administration (FDA) for fully interoperable continuous glucose monitoring (iCGM) systems. Abbott CEO Miles White stated in the company's Q2 conference call that he expects the new Libre device will achieve annual sales of at least $5 billion. | Abbott Labs' (NYSE: ABT) lower-cost FreeStyle Libre has taken the market by storm as well, with sales growing even faster than the G6. DexCom's G6 continuous glucose monitoring (CGM) system has been a huge winner so far. DexCom is especially targeting the gestational diabetes opportunity and the intermittent monitoring of diabetes in hospital patients, which represent another 4 million and 14 million patients, respectively. | Abbott Labs' (NYSE: ABT) lower-cost FreeStyle Libre has taken the market by storm as well, with sales growing even faster than the G6. The case for buying DexCom Probably the strongest argument for buying shares of DexCom is that the company's growth is still only in its early stages. DexCom isn't the only player in the CGM market. | Abbott Labs' (NYSE: ABT) lower-cost FreeStyle Libre has taken the market by storm as well, with sales growing even faster than the G6. DexCom isn't the only player in the CGM market. My view is that the market is big enough to support both DexCom and Abbott. |
32933.0 | 2019-08-29 00:00:00 UTC | Health Care Sector Update for 08/29/2019: LCI, JNJ, PFE, ABT, MRK, AMGN, SOLY, ESPR, CANF | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-08-29-2019%3A-lci-jnj-pfe-abt-mrk-amgn-soly-espr-canf-2019-08 | nan | nan | Top Health Care Stocks:
JNJ: -0.37%
PFE: +0.71%
ABT: +0.65%
MRK: +0.24%
AMGN: +0.26%
Health care stocks closed mixed Thursday, including a 0.8% gain for the NYSE Health Care Index. Also, shares of health care companies in the S&P 500 were up 0.8% as a group while the Nasdaq Biotechnology index was ahead 0.7%.
Among health care stocks moving on news:
(+) Lannett (LCI) jumped almost 10% higher Thursday after the drugmaker announced an exclusive distribution agreement with China's Sinotherapeutics for its posaconazole anti-fungal medication. It also reported non-GAAP Q4 net income of $0.37 per share, trailing its $0.64 per share net loss during the year-ago period but still beating the Capital IQ consensus expecting an adjusted $0.21 per share quarterly profit.
In other stock news:
(+) Soliton (SOLY) rose 4% after saying it is planning a proof of concept clinical trial for the use of its Rapid Acoustic Pulse technology for the treatment of keloid and hypertrophic scars.
(+) Esperion Therapeutics (ESPR) was up 1.7% after it reported positive top-line results from a phase two bempedoic acid and ezetimibe combination tablet study in patients with hypercholesterolemia and type two diabetes.
(-) Can-Fite Biopharma (CANF) fell 4% after saying its net loss per share for the first half was flat at $0.08, while revenue totaled $0.7 million, down from $0.9 million a year earlier.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among health care stocks moving on news: (+) Lannett (LCI) jumped almost 10% higher Thursday after the drugmaker announced an exclusive distribution agreement with China's Sinotherapeutics for its posaconazole anti-fungal medication. In other stock news: (+) Soliton (SOLY) rose 4% after saying it is planning a proof of concept clinical trial for the use of its Rapid Acoustic Pulse technology for the treatment of keloid and hypertrophic scars. (+) Esperion Therapeutics (ESPR) was up 1.7% after it reported positive top-line results from a phase two bempedoic acid and ezetimibe combination tablet study in patients with hypercholesterolemia and type two diabetes. | Top Health Care Stocks: Health care stocks closed mixed Thursday, including a 0.8% gain for the NYSE Health Care Index. It also reported non-GAAP Q4 net income of $0.37 per share, trailing its $0.64 per share net loss during the year-ago period but still beating the Capital IQ consensus expecting an adjusted $0.21 per share quarterly profit. | Health care stocks closed mixed Thursday, including a 0.8% gain for the NYSE Health Care Index. Among health care stocks moving on news: (+) Lannett (LCI) jumped almost 10% higher Thursday after the drugmaker announced an exclusive distribution agreement with China's Sinotherapeutics for its posaconazole anti-fungal medication. It also reported non-GAAP Q4 net income of $0.37 per share, trailing its $0.64 per share net loss during the year-ago period but still beating the Capital IQ consensus expecting an adjusted $0.21 per share quarterly profit. | Health care stocks closed mixed Thursday, including a 0.8% gain for the NYSE Health Care Index. It also reported non-GAAP Q4 net income of $0.37 per share, trailing its $0.64 per share net loss during the year-ago period but still beating the Capital IQ consensus expecting an adjusted $0.21 per share quarterly profit. In other stock news: (+) Soliton (SOLY) rose 4% after saying it is planning a proof of concept clinical trial for the use of its Rapid Acoustic Pulse technology for the treatment of keloid and hypertrophic scars. |
32934.0 | 2019-08-27 00:00:00 UTC | Should You Buy AbbVie for the Dividend? | ABT | https://www.nasdaq.com/articles/should-you-buy-abbvie-for-the-dividend-2019-08-27 | nan | nan | AbbVie Inc (NYSE: ABBV) has been on a downward spiral since early 2018. Year to date, the company's share price has decreased by about 26%. This prolonged slump is unprecedented for AbbVie, at least since the firm spun off from Abbott Laboratories (NYSE: ABT). Despite these headwinds, it is hard to ignore AbbVie's stellar dividend history, and its juicy 6.1% dividend. However, a company's ability to sustain its dividends is a function of its earnings prospects. Can AbbVie continue to generate the income necessary to keep its dividends intact?
Image source: Getty Images
Humira and beyond
AbbVie's recent struggles started with the disappointing results from a study on the effects of rovalpituzumab tesirine, better known as ROVA-T, as a treatment for lung cancer. The negative results meant that AbbVie's nearly $6 billion deal with Stemcentrx was more or less a waste of money. Sure, the deal did include other clinical compounds, but none nearly as promising as ROVA-T. Investors have also been worried about the pharma company's top line exposure to Humira. Though Humira has been AbbVie's top selling drug for a while -- spearheading the firm's revenue growth -- it is now facing stiff competition in Europe. As a result, AbbVie's international revenues will decline in the coming years. However, the company is aware of these obstacles and has made several moves to adjust accordingly.
First, the prophecies of doom regarding Humira's declining prospects may have been a bit exaggerated. The company expects its top selling product to remain one of the leaders in the immunology market, and for that matter, one of the world's best selling drugs, for at least a few more years. This may not be enough to offset Humira's declining revenues in Europe, as we learned when the firm released its latest financial results. US sales of Humira increased by about 8% during AbbVie's second quarter, but its international sales decreased by 35%, resulting in a net decrease of 6% year over year. Still, these figures aren't as bad as one might have expected. Second, AbbVie has other drugs it can count on to keep its revenues afloat, one of which is Venclexta, a treatment for second-line chronic lymphocytic leukemia. Sales of Venclexta in 2018 were $344 million, which was more than double what they were in 2017. Another product AbbVie plans to rely on moving forward is Imbruvica. In 2018, sales of Imbruvica came in at $3.59 billion, a nearly 40% increase from 2017. Year to date, Venclexta and Imbruvica have generated revenues of $320 million and $2.12 billion, respectively. The firm expects both of these drugs to be key growth drivers in the future. Their combined revenues will likely double within the next half a decade or so, according to the pharma company.
AbbVie merges with Allergan
Perhaps the biggest move AbbVie made recently was its blockbuster merger with Allergan (NYSE: AGN) in a cash-and-stock deal valued at $63 billion. Allergan has had its own problems in recent years. The Botox maker's revenues have been declining with no signs of better things to come. From AbbVie's perspective, this merger will help achieve one major goal, namely to decrease its top line exposure to Humira. Synergy issues between the two companies aside, detractors will argue that Allergan suffers from the same problem that has plagued AbbVie: an over reliance on one product line (its Botox business). There are also concerns over whether AbbVie may have paid a bit too much for this acquisition. The $63 billion price-tag included a $20 billion premium on Allergan's market value. While all these objections carry some weight, the deal has a strong upside potential. AbbVie's diversification into new areas of the pharmaceutical market by way of this acquisition is commendable. It will help the firm pursue entirely new avenues to keep its earnings growing.
Should you buy?
AbbVie has increased its quarterly dividend payouts by 167.5% since it split from Abbott in 2013, and the company generates more than enough cash to cover its dividend payments. Although sales of Humira will decline abroad, and will eventually encounter competition in the US, the firm possesses several up-and-coming drugs that will generate billions of dollars in sales, and an entirely new portfolio of products via its merger with Allergan. Clearly, AbbVie isn't for every investor, but with a (relatively) attractive future earnings potential, the pharma company still looks like an excellent pick for those looking for top dividend stocks.
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*Stock Advisor returns as of June 1, 2019
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This prolonged slump is unprecedented for AbbVie, at least since the firm spun off from Abbott Laboratories (NYSE: ABT). Though Humira has been AbbVie's top selling drug for a while -- spearheading the firm's revenue growth -- it is now facing stiff competition in Europe. Synergy issues between the two companies aside, detractors will argue that Allergan suffers from the same problem that has plagued AbbVie: an over reliance on one product line (its Botox business). | This prolonged slump is unprecedented for AbbVie, at least since the firm spun off from Abbott Laboratories (NYSE: ABT). Sure, the deal did include other clinical compounds, but none nearly as promising as ROVA-T. Investors have also been worried about the pharma company's top line exposure to Humira. US sales of Humira increased by about 8% during AbbVie's second quarter, but its international sales decreased by 35%, resulting in a net decrease of 6% year over year. | This prolonged slump is unprecedented for AbbVie, at least since the firm spun off from Abbott Laboratories (NYSE: ABT). US sales of Humira increased by about 8% during AbbVie's second quarter, but its international sales decreased by 35%, resulting in a net decrease of 6% year over year. AbbVie merges with Allergan Perhaps the biggest move AbbVie made recently was its blockbuster merger with Allergan (NYSE: AGN) in a cash-and-stock deal valued at $63 billion. | This prolonged slump is unprecedented for AbbVie, at least since the firm spun off from Abbott Laboratories (NYSE: ABT). US sales of Humira increased by about 8% during AbbVie's second quarter, but its international sales decreased by 35%, resulting in a net decrease of 6% year over year. Year to date, Venclexta and Imbruvica have generated revenues of $320 million and $2.12 billion, respectively. |
32935.0 | 2019-08-27 00:00:00 UTC | Notable ETF Outflow Detected - XLV, MRK, PFE, ABT | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlv-mrk-pfe-abt-2019-08-27 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $421.5 million dollar outflow -- that's a 2.4% decrease week over week (from 194,370,000 to 189,670,000). Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.7%, Pfizer Inc (Symbol: PFE) is off about 0.3%, and Abbott Laboratories (Symbol: ABT) is up by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $90.38. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.7%, Pfizer Inc (Symbol: PFE) is off about 0.3%, and Abbott Laboratories (Symbol: ABT) is up by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $421.5 million dollar outflow -- that's a 2.4% decrease week over week (from 194,370,000 to 189,670,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.7%, Pfizer Inc (Symbol: PFE) is off about 0.3%, and Abbott Laboratories (Symbol: ABT) is up by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $90.38. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.7%, Pfizer Inc (Symbol: PFE) is off about 0.3%, and Abbott Laboratories (Symbol: ABT) is up by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $421.5 million dollar outflow -- that's a 2.4% decrease week over week (from 194,370,000 to 189,670,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $90.38. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.7%, Pfizer Inc (Symbol: PFE) is off about 0.3%, and Abbott Laboratories (Symbol: ABT) is up by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $90.38. 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). |
32936.0 | 2019-08-27 00:00:00 UTC | Health Care Sector Update for 08/27/2019: NVTR, CTLT, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-08-27-2019%3A-nvtr-ctlt-jnj-pfe-abt-mrk-amgn-2019-08-27 | nan | nan | Top Health Care Stocks:
JNJ: +1.28%
PFE: +0.43%
ABT: Flat
MRK: Flat
AMGN: Flat
Top heath care stocks were flat to higher pre-market Tuesday.
Stocks moving on news include:
(+) Nuvectra (NVTR), which was surging by more than 16% after saying its board will explore strategic options, including sale or merger of the company, to boost the value of the company's shares.
(+) Catalent (CTLT) was advancing by almost 3% as it reported fiscal Q4 adjusted earnings of $0.70 per share, up from $0.67 in the same period a year ago and higher than the estimate of $0.65 from analysts polled by Capital IQ.
(+) Johnson & Johnson (JNJ) was ordered to pay over $572 million for playing a part in the Oklahoma opioid crisis, according to media reports, citing a ruling by Cleveland County District Judge Thad Balkman. Johnson & Johnson was recently up more than 1%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT: Flat MRK: Flat AMGN: Flat Top heath care stocks were flat to higher pre-market Tuesday. Stocks moving on news include: (+) Nuvectra (NVTR), which was surging by more than 16% after saying its board will explore strategic options, including sale or merger of the company, to boost the value of the company's shares. (+) Catalent (CTLT) was advancing by almost 3% as it reported fiscal Q4 adjusted earnings of $0.70 per share, up from $0.67 in the same period a year ago and higher than the estimate of $0.65 from analysts polled by Capital IQ. | ABT: Flat MRK: Flat AMGN: Flat Top heath care stocks were flat to higher pre-market Tuesday. Top Health Care Stocks: (+) Johnson & Johnson (JNJ) was ordered to pay over $572 million for playing a part in the Oklahoma opioid crisis, according to media reports, citing a ruling by Cleveland County District Judge Thad Balkman. | ABT: Flat MRK: Flat AMGN: Flat Top heath care stocks were flat to higher pre-market Tuesday. Stocks moving on news include: (+) Nuvectra (NVTR), which was surging by more than 16% after saying its board will explore strategic options, including sale or merger of the company, to boost the value of the company's shares. (+) Johnson & Johnson (JNJ) was ordered to pay over $572 million for playing a part in the Oklahoma opioid crisis, according to media reports, citing a ruling by Cleveland County District Judge Thad Balkman. | ABT: Flat MRK: Flat AMGN: Flat Top heath care stocks were flat to higher pre-market Tuesday. Top Health Care Stocks: Stocks moving on news include: (+) Nuvectra (NVTR), which was surging by more than 16% after saying its board will explore strategic options, including sale or merger of the company, to boost the value of the company's shares. |
32937.0 | 2019-08-25 00:00:00 UTC | 3 Fantastic Stocks for Low-Risk Investors | ABT | https://www.nasdaq.com/articles/3-fantastic-stocks-for-low-risk-investors-2019-08-25 | nan | nan | Are you getting a little nervous with the spike in market volatility? Do the talking heads on TV chattering about the inverted yield curve and a possibility of a recession cause you to worry? If you answered "yes" to both of these questions, you're probably an investor with a relatively low tolerance for risk.
The good news is that there are stocks that you can buy that don't have nearly as much risk as many stocks on the market. I think that three fantastic stocks for low-risk investors are Abbott Laboratories (NYSE: ABT), Brookfield Infrastructure Partners (NYSE: BIP), and Dollar General (NYSE: DG). Here's what you'll like about these three stocks.
Image source: Getty Images.
1. Abbott Laboratories
Solid. That's perhaps the best one-word description of Abbott Labs. The company has been in business since 1888. It's paid a quarterly dividend for 95 consecutive years. Abbott has been on Fortune magazine's Most Admired Companies list for 35 years in a row and ranks No. 6 among the biggest healthcare stocks on the market.
Abbott Labs claims the leading market share in adult nutrition, blood and plasma screening, chronic pain devices, glucose monitoring, point-of-care testing, and more areas. Its businesses span the world, with Abbott operating in over 160 countries.
Most of the types of products that Abbott sells are needed regardless of what happens with the economy. For example, patients with mitral valve problems will still need the company's MitraClip even during a recession. Patients with diabetes will still want to monitor their glucose levels with Abbott's FreeStyle Libre continuous glucose monitoring system in the midst of a major world crisis.
Probably the most important thing for low-risk investors to know about Abbott is that the company still exemplifies the characteristics that enabled it to survive and thrive for so long. It's still aligned with shareholder interests, and it continues to focus heavily on innovation. As a result, I suspect that Abbott will remain solid for a long time to come.
2. Brookfield Infrastructure Partners
I think that Brookfield Infrastructure Partners is another must-have stock for low-risk investors. Although the company doesn't have the impeccable credentials that Abbott does, it could also be described as solid.
Brookfield Infrastructure Partners, as its name implies, focuses on infrastructure assets. These assets include cell towers, electricity transmission lines, natural gas pipelines, ports, railroads, and toll roads. We're talking about the kinds of properties that provide steady revenue month in and month out.
The company has what I think is a good business strategy of continued capital recycling. This means that Brookfield Infrastructure is pretty much always wheeling and dealing, selling off those that aren't performing as well to invest in other assets. As part of this strategy, the company has expanded into the high-growth data center market.
Low-risk investors should especially love Brookfield Infrastructure's dividend. The company's dividend yield currently stands at 4.5%. Brookfield Infrastructure has increased its payout by a 10% compound annual growth rate (CAGR) over the last decade and expects to continue boosting its dividend by at least 5% annually in the future.
3. Dollar General
There's a meme circulating on social media that states: "If you see a large dirt mound in a field don't disturb it. Wait for the Dollar General to hatch." The humor of this meme stems from the fact that Dollar General is aggressively expanding and should have 975 new stores by the end of this year.
The company is opening more new locations than any other retailer. At the same time, Dollar General continues to remodel existing stores. CEO Todd Vasos says that the company's remodeling efforts usually boost same-store sales by at least 4% and as much as 15%.
Dollar General focuses on offering basic items at low costs that consumers are likely to buy regardless of economic conditions. The company could even attract more customers during a recession as more people cut back on spending and shift their purchases to discount stores.
But Dollar General isn't just a fallback option for investors in case the economy sours. The company's growth initiatives and cost-cutting efforts should enable it to deliver strong earnings growth regardless of what happens.
10 stocks we like better than Abbott Laboratories
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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.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Keith Speights owns shares of Dollar General. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I think that three fantastic stocks for low-risk investors are Abbott Laboratories (NYSE: ABT), Brookfield Infrastructure Partners (NYSE: BIP), and Dollar General (NYSE: DG). Abbott Labs claims the leading market share in adult nutrition, blood and plasma screening, chronic pain devices, glucose monitoring, point-of-care testing, and more areas. These assets include cell towers, electricity transmission lines, natural gas pipelines, ports, railroads, and toll roads. | I think that three fantastic stocks for low-risk investors are Abbott Laboratories (NYSE: ABT), Brookfield Infrastructure Partners (NYSE: BIP), and Dollar General (NYSE: DG). Brookfield Infrastructure Partners I think that Brookfield Infrastructure Partners is another must-have stock for low-risk investors. At the same time, Dollar General continues to remodel existing stores. | I think that three fantastic stocks for low-risk investors are Abbott Laboratories (NYSE: ABT), Brookfield Infrastructure Partners (NYSE: BIP), and Dollar General (NYSE: DG). Brookfield Infrastructure Partners I think that Brookfield Infrastructure Partners is another must-have stock for low-risk investors. * 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! | I think that three fantastic stocks for low-risk investors are Abbott Laboratories (NYSE: ABT), Brookfield Infrastructure Partners (NYSE: BIP), and Dollar General (NYSE: DG). The good news is that there are stocks that you can buy that don't have nearly as much risk as many stocks on the market. The company has been in business since 1888. |
32938.0 | 2019-08-21 00:00:00 UTC | 3 Top Diabetes Stocks to Watch in August | ABT | https://www.nasdaq.com/articles/3-top-diabetes-stocks-to-watch-in-august-2019-08-21 | nan | nan | Drugs and medical devices indicated for the treatment of diabetes are a booming part of the diverse healthcare sector. Over the next decade, in fact, diabetes products are projected to be the second fastest-growing area of the entire sector, according to a recent industry report by EvaluatePharma.
Armed with this insight, we asked three of our Motley Fool healthcare contributors which diabetes stocks they think should be on every investor's radar during the month of August and beyond. They picked Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Tandem Diabetes Care (NASDAQ: TNDM). Here's why.
Image source: Getty Images.
A showdown in diabetes care
George Budwell (Eli Lilly): Pharma titan Eli Lilly is without question a top diabetes company worth keeping tabs on right now. The lowdown is that Lilly's shares have come under pressure in the second half of 2019 due to concern over the long-term commercial fate of its GLP1 agonist Trulicity.
In brief, Trulicity has been playing a big part in the company's ability to overcome the staggering declines for the former star insulin products Humalog and Humulin. Underscoring this point, Trulicity's second-quarter sales jumped by an eye-catching 32% year over year to $1.03 billion, making it the drugmaker's best-selling medicine by a wide margin. Lilly, though, has designs on growing Trulicity's annual sales by another 500% over the next five years, which would allow the company to stay well ahead of the ongoing sales erosion for Humalog and Humulin.
To do so, the drugmaker's near-term goal is to broaden Trulicity's label to include a higher dose indication for patients with Type 2 diabetes and a second label expansion that would deem that the that drug also conveys a significant cardiovascular benefit for diabetes patients. Lilly has already submitted Trulicity's cardiovascular outcomes trial data to regulators in both the EU and the U.S. for review, and the company should have the drug's higher dose indication under consideration with regulators shortly.
The fly in the ointment is that the Danish pharma giant Novo Nordisk has three similar products (Victoza, Ozempic, and an oral version of Ozempic) that could significantly stunt Trulicity's growth in the years to come. Thus, Trulicity's exponential growth trajectory is far from a sure thing. Diabetes investors, in turn, will definitely want to keep a close eye on this developing story.
Waiting on a big decision
Keith Speights (Abbott Laboratories): While Abbott Labs isn't only focused on diabetes, there's no question that diabetes care is an important growth driver for the company. Abbott reported organic sales growth of 70% in the second quarter for its Freestyle Libre continuous glucose monitor (CGM).
Customers love Freestyle Libre for its features (especially that no fingersticks are required to calibrate the device). But they also love its value. Abbott Labs CEO Miles White said in the company's second-quarter conference call that the CGM system "offers a unique value proposition and that's by design."
I expect sales for Freestyle Libre will soon shift into an even higher gear. Abbott has filed with the U.S. Food and Drug Administration (FDA) for approval of the next-generation version of the device as an integrated continuous glucose monitoring (iCGM) system to be used as part of an integrated system with other medical devices such as automated insulin dosing systems and insulin pumps.
There's no exact date yet on when the FDA will make its decision. However, White expressed confidence in the Q2 call that Abbott will win approval for the new version of Freestyle Libre, with COO Robert Ford adding that the company expects that approval "relatively soon."
Abbott also has several other growth drivers outside of diabetes, including its Alinity lineup of laboratory diagnostic instruments. I suspect, though, that the growth story for Freestyle Libre will capture a lot more attention from investors in the next few quarters, making Abbott Labs a diabetes stock to watch closely in August and beyond.
A top diabetes medtech play
Todd Campbell (Tandem Diabetes): Type 1 diabetes treatment is shifting to automated systems that pair a continuous glucose monitor (CGM) with an insulin pump to keep patients within their desired blood sugar range longer.
The shift has been sparked by the launch of Tandem Diabetes first-generation automated insulin device last year. Competition is coming, but Tandem Diabetes is also poised to launch a second-generation system that could keep it ahead of the pack, making it a top stock to be watching now.
The company's first system improved treatment by suspending insulin delivery from its pump if the CGM shows a patient's at risk of a dangerous blood sugar low. The second-gen system will expand upon that technology to also include automatically increasing insulin to prevent blood sugar highs. Demand for the first-gen system has been so strong that Tandem's revenue surged 173% year over year to $93 million in the second quarter. The company plans to launch the second-gen system in Q4, pending FDA approval.
The availability of a complete system like this later this year will give Tandem Diabetes an important head start. Most patients don't swap their pump until the pump's warranty period ends. Since Tandem's warranty lasts four years, the company could enjoy revenue tailwinds from maintaining market share for years and because only about 30% of the 1.25 million Type 1 patients in the U.S. are on pump therapy now, there are plenty of new users to win over, 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 quadrupled 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.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
George Budwell has no position in any of the stocks mentioned. Keith Speights has no position in any of the stocks mentioned. Todd Campbell has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They picked Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Tandem Diabetes Care (NASDAQ: TNDM). I suspect, though, that the growth story for Freestyle Libre will capture a lot more attention from investors in the next few quarters, making Abbott Labs a diabetes stock to watch closely in August and beyond. Competition is coming, but Tandem Diabetes is also poised to launch a second-generation system that could keep it ahead of the pack, making it a top stock to be watching now. | They picked Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Tandem Diabetes Care (NASDAQ: TNDM). A showdown in diabetes care George Budwell (Eli Lilly): Pharma titan Eli Lilly is without question a top diabetes company worth keeping tabs on right now. Waiting on a big decision Keith Speights (Abbott Laboratories): While Abbott Labs isn't only focused on diabetes, there's no question that diabetes care is an important growth driver for the company. | They picked Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Tandem Diabetes Care (NASDAQ: TNDM). Waiting on a big decision Keith Speights (Abbott Laboratories): While Abbott Labs isn't only focused on diabetes, there's no question that diabetes care is an important growth driver for the company. Abbott has filed with the U.S. Food and Drug Administration (FDA) for approval of the next-generation version of the device as an integrated continuous glucose monitoring (iCGM) system to be used as part of an integrated system with other medical devices such as automated insulin dosing systems and insulin pumps. | They picked Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Tandem Diabetes Care (NASDAQ: TNDM). Waiting on a big decision Keith Speights (Abbott Laboratories): While Abbott Labs isn't only focused on diabetes, there's no question that diabetes care is an important growth driver for the company. A top diabetes medtech play Todd Campbell (Tandem Diabetes): Type 1 diabetes treatment is shifting to automated systems that pair a continuous glucose monitor (CGM) with an insulin pump to keep patients within their desired blood sugar range longer. |
32939.0 | 2019-08-19 00:00:00 UTC | Notable ETF Inflow Detected - XLV, ABT, MDT, TMO | ABT | https://www.nasdaq.com/articles/notable-etf-inflow-detected-xlv-abt-mdt-tmo-2019-08-19 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $167.5 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 192,520,000 to 194,370,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.1%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.7%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.25. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.1%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $167.5 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 192,520,000 to 194,370,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.1%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher by about 0.7%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.25. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.1%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $167.5 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 192,520,000 to 194,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.25. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is up about 1.1%, Medtronic PLC (Symbol: MDT) is up about 0.8%, and Thermo Fisher Scientific Inc (Symbol: TMO) is higher 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $167.5 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 192,520,000 to 194,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.25. |
32940.0 | 2019-08-16 00:00:00 UTC | Health Care Sector Update for 08/16/2019: ARAY, TTOO, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-08-16-2019%3A-aray-ttoo-jnj-pfe-abt-mrk-amgn-2019-08-16 | nan | nan | Top Health Care Stocks:
JNJ: +0.17%
PFE: +0.96%
ABT: +0.69%
MRK: +0.62%
AMGN: +0.95%
Health care giants were advancing pre-market Friday.
Stocks moving on news include:
(-) Accuray (ARAY), which was down 3% in pre-market trading after it reported late Thursday that its net loss widened to $0.02 per share in Q4 from a $0.01 loss per share a year earlier. That missed analysts' estimates of net profit of $0.02 per share in a Capital IQ survey.
In other sector news:
(+) T2 Biosystems (TTOO), a manufacturer of diagnostic products, was up 0.2% after saying it entered into an exclusive distribution agreement to introduce its rapid diagnostic technologies to new markets in Australia, Fiji, and New Zealand.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks moving on news include: (-) Accuray (ARAY), which was down 3% in pre-market trading after it reported late Thursday that its net loss widened to $0.02 per share in Q4 from a $0.01 loss per share a year earlier. That missed analysts' estimates of net profit of $0.02 per share in a Capital IQ survey. In other sector news: (+) T2 Biosystems (TTOO), a manufacturer of diagnostic products, was up 0.2% after saying it entered into an exclusive distribution agreement to introduce its rapid diagnostic technologies to new markets in Australia, Fiji, and New Zealand. | Top Health Care Stocks: Health care giants were advancing pre-market Friday. Stocks moving on news include: (-) Accuray (ARAY), which was down 3% in pre-market trading after it reported late Thursday that its net loss widened to $0.02 per share in Q4 from a $0.01 loss per share a year earlier. | Stocks moving on news include: (-) Accuray (ARAY), which was down 3% in pre-market trading after it reported late Thursday that its net loss widened to $0.02 per share in Q4 from a $0.01 loss per share a year earlier. In other sector news: (+) T2 Biosystems (TTOO), a manufacturer of diagnostic products, was up 0.2% after saying it entered into an exclusive distribution agreement to introduce its rapid diagnostic technologies to new markets in Australia, Fiji, and New Zealand. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Health Care Stocks: Health care giants were advancing pre-market Friday. Stocks moving on news include: (-) Accuray (ARAY), which was down 3% in pre-market trading after it reported late Thursday that its net loss widened to $0.02 per share in Q4 from a $0.01 loss per share a year earlier. |
32941.0 | 2019-08-15 00:00:00 UTC | S&P 500 Analyst Moves: ABT | ABT | https://www.nasdaq.com/articles/sp-500-analyst-moves%3A-abt-2019-08-15 | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories (ABT) is now the #56 analyst pick, moving up by 2 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, Abbott Laboratories (ABT) is showing a gain of 16.3%.
VIDEO: S&P 500 Analyst Moves: ABT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories (ABT) is now the #56 analyst pick, moving up by 2 spots. Looking at the stock price movement year to date, Abbott Laboratories (ABT) is showing a gain of 16.3%. VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories (ABT) is now the #56 analyst pick, moving up by 2 spots. Looking at the stock price movement year to date, Abbott Laboratories (ABT) is showing a gain of 16.3%. VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories (ABT) is now the #56 analyst pick, moving up by 2 spots. VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at the stock price movement year to date, Abbott Laboratories (ABT) is showing a gain of 16.3%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Abbott Laboratories (ABT) is now the #56 analyst pick, moving up by 2 spots. Looking at the stock price movement year to date, Abbott Laboratories (ABT) is showing a gain of 16.3%. VIDEO: S&P 500 Analyst Moves: ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32942.0 | 2019-08-12 00:00:00 UTC | Health Care Sector Update for 08/12/2019: NVAX, SXTC, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-08-12-2019%3A-nvax-sxtc-jnj-pfe-abt-mrk-amgn-2019-08-12 | nan | nan | Top Health Care Stocks:
JNJ: -0.03%
PFE: -0.03%
ABT: -0.20%
MRK: +0.02%
AMGN: +0.20%
Leading health care stocks were mixed in pre-bell trading Monday.
Early movers include:
(+) China SXT Pharmaceuticals (SXTC), which were up nearly 21% Monday pre-bell after the company said it has received a new certificate of Good Manufacturing Practice for Pharmaceutical Products by the Food and Drug Administration of Jiangsu Province, China.
(+) Novavax (NVAX), which was up nearly 2% pre-bell after reporting new data from the company's phase 3 clinical trial of ResVax, a vaccine for infants designed to prevent severe lower respiratory tract infection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Leading health care stocks were mixed in pre-bell trading Monday. Early movers include: (+) China SXT Pharmaceuticals (SXTC), which were up nearly 21% Monday pre-bell after the company said it has received a new certificate of Good Manufacturing Practice for Pharmaceutical Products by the Food and Drug Administration of Jiangsu Province, China. (+) Novavax (NVAX), which was up nearly 2% pre-bell after reporting new data from the company's phase 3 clinical trial of ResVax, a vaccine for infants designed to prevent severe lower respiratory tract infection. | Top Health Care Stocks: Leading health care stocks were mixed in pre-bell trading Monday. Early movers include: (+) China SXT Pharmaceuticals (SXTC), which were up nearly 21% Monday pre-bell after the company said it has received a new certificate of Good Manufacturing Practice for Pharmaceutical Products by the Food and Drug Administration of Jiangsu Province, China. | Leading health care stocks were mixed in pre-bell trading Monday. Early movers include: (+) China SXT Pharmaceuticals (SXTC), which were up nearly 21% Monday pre-bell after the company said it has received a new certificate of Good Manufacturing Practice for Pharmaceutical Products by the Food and Drug Administration of Jiangsu Province, China. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Health Care Stocks: Leading health care stocks were mixed in pre-bell trading Monday. Early movers include: (+) China SXT Pharmaceuticals (SXTC), which were up nearly 21% Monday pre-bell after the company said it has received a new certificate of Good Manufacturing Practice for Pharmaceutical Products by the Food and Drug Administration of Jiangsu Province, China. |
32943.0 | 2019-08-09 00:00:00 UTC | The Health Care Select Sector SPDR Fund Experiences Big Inflow | ABT | https://www.nasdaq.com/articles/the-health-care-select-sector-spdr-fund-experiences-big-inflow-2019-08-09 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $232.8 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 188,020,000 to 190,570,000). Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.03. 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 XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $232.8 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 188,020,000 to 190,570,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.03. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $232.8 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 188,020,000 to 190,570,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.03. | Among the largest underlying components of XLV, in trading today Merck & Co Inc (Symbol: MRK) is up about 0.6%, Abbott Laboratories (Symbol: ABT) is up about 0.6%, and Medtronic PLC (Symbol: MDT) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $232.8 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 188,020,000 to 190,570,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.03. |
32944.0 | 2019-08-06 00:00:00 UTC | Why Insulet's Shares Are Rocketing 20.8% Higher Today | ABT | https://www.nasdaq.com/articles/why-insulets-shares-are-rocketing-20.8-higher-today-2019-08-06 | nan | nan | What happened
After the release of second-quarter revenue results on Monday that were better than industry watchers were expecting, Insulet's (NASDAQ: PODD) shares were surging 20.8% higher at 2:45 p.m. EDT on Tuesday.
So what
More than 30 million Americans are diagnosed with diabetes, including more than 1 million people with type 1 diabetes who require constant blood sugar monitoring and regular dosing of insulin to delay disease progression.
IMAGE SOURCE: GETTY IMAGES.
Historically, type 1 patients have used multiple daily fingersticks and insulin injections to manage their disease. Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM).
Unlike competing pumps, Insulet's insulin pump -- Omnipod -- is the only tubeless option available to patients. Omnipod users simply apply the device, which lasts 72 hours, to their skin, and then they control dosing via a separate handheld device.
In the second quarter, increasing adoption of Omnipod translated into Insulet revenue of $177.1 million, up 43% from the same quarter last year. Omnipod sales were $160.8 million, an increase of 51% year over year. The remaining sales were associated with using medicines other than insulin in Omnipod pumps.
Gross margin was 65.7% in the second quarter, down 30 basis points year over year, because of investments in a new automated manufacturing line. The dip in margin was more than made up for by sales growth and controlled operating expenses, so Insulet's net income in the period improved to $1.4 million from a loss of $1.7 million one year ago.
Now what
The better top-line performance has prompted management to raise its full-year sales forecast to at least $700 million from prior guidance for at least $667 million. If it delivers on that target, it would represent a 24% increase from 2018.
Further out, the company continues to develop its Horizon automated insulin system, which automatically doses insulin based on readings from DexCom's continuous glucose monitors. Earlier this year, Insulet released data suggesting Horizon may help keep patient's within their desired blood glucose range more often. A Horizon launch is planned for late in 2020 after clinical trials wrap up.
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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. | Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM). What happened After the release of second-quarter revenue results on Monday that were better than industry watchers were expecting, Insulet's (NASDAQ: PODD) shares were surging 20.8% higher at 2:45 p.m. EDT on Tuesday. Historically, type 1 patients have used multiple daily fingersticks and insulin injections to manage their disease. | Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM). Unlike competing pumps, Insulet's insulin pump -- Omnipod -- is the only tubeless option available to patients. Further out, the company continues to develop its Horizon automated insulin system, which automatically doses insulin based on readings from DexCom's continuous glucose monitors. | Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM). In the second quarter, increasing adoption of Omnipod translated into Insulet revenue of $177.1 million, up 43% from the same quarter last year. The dip in margin was more than made up for by sales growth and controlled operating expenses, so Insulet's net income in the period improved to $1.4 million from a loss of $1.7 million one year ago. | Increasingly, these patients are shifting to continuous glucose monitors, such as those made by DexCom (NASDAQ: DXCM) or Abbott Labs (NYSE: ABT), and insulin pumps, such as those made by Insulet and Tandem Diabetes (NASDAQ: TNDM). Omnipod sales were $160.8 million, an increase of 51% year over year. Further out, the company continues to develop its Horizon automated insulin system, which automatically doses insulin based on readings from DexCom's continuous glucose monitors. |
32945.0 | 2019-08-01 00:00:00 UTC | Notable ETF Outflow Detected - IHI, ABT, TMO, EW | ABT | https://www.nasdaq.com/articles/notable-etf-outflow-detected-ihi-abt-tmo-ew-2019-08-01 | 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 U.S. Medical Devices ETF (Symbol: IHI) where we have detected an approximate $49.3 million dollar outflow -- that's a 1.2% decrease week over week (from 16,000,000 to 15,800,000). Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.8%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.6%, and Edwards Lifesciences Corp (Symbol: EW) is higher by about 2%. 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 $183.57 per share, with $250.14 as the 52 week high point — that compares with a last trade of $248.45. 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 IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.8%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.6%, and Edwards Lifesciences Corp (Symbol: EW) is higher by about 2%. 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 $183.57 per share, with $250.14 as the 52 week high point — that compares with a last trade of $248.45. 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 0.8%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.6%, and Edwards Lifesciences Corp (Symbol: EW) is higher by about 2%. 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 $183.57 per share, with $250.14 as the 52 week high point — that compares with a last trade of $248.45. 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 0.8%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.6%, and Edwards Lifesciences Corp (Symbol: EW) is higher by about 2%. 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 $49.3 million dollar outflow -- that's a 1.2% decrease week over week (from 16,000,000 to 15,800,000). 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 $183.57 per share, with $250.14 as the 52 week high point — that compares with a last trade of $248.45. | Among the largest underlying components of IHI, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.8%, Thermo Fisher Scientific Inc (Symbol: TMO) is up about 1.6%, and Edwards Lifesciences Corp (Symbol: EW) is higher by about 2%. 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 $49.3 million dollar outflow -- that's a 1.2% decrease week over week (from 16,000,000 to 15,800,000). 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 $183.57 per share, with $250.14 as the 52 week high point — that compares with a last trade of $248.45. |
32946.0 | 2019-07-27 00:00:00 UTC | 10 Biggest Cancer-Fighting Stocks | ABT | https://www.nasdaq.com/articles/10-biggest-cancer-fighting-stocks-2019-07-27 | nan | nan | Nearly $150 billion was spent on medicines for treating cancer in 2018, according to the IQVIA Institute for Human Data Science. Overall spending on cancer treatments, including supportive care, appears to be on track to soar to as much as $250 billion by 2023.
Fighting cancer is big business. And it has attracted some big companies. Of the 33 largest drugmakers in the world, 28 have some significant development underway that targets cancer. Other major companies that don't develop drugs are also playing a part in battling cancer.
The 10 biggest cancer-fighting stocks combined have a market capitalization worth around $1.7 trillion right now. Here's what you'll want to know about these top cancer stocks.
Image source: Getty Images.
A quick overview of the fight against cancer
It's important to note that there are three primary fronts in the fight against cancer: prevention, diagnosis, and treatment.
Not every type of cancer can be prevented, of course. But the risks can be lowered for several types of cancer, particularly lung cancer. Using smoking cessation products, for example, can help individuals reduce their risk of developing lung cancer. Routine screening for colorectal cancer can help physicians remove polyps before they become cancerous.
Early diagnosis of cancer is also important in saving lives. Medical imaging equipment for CT scans and mammography play an important role in detecting cancer as do devices that help physicians obtain tissue biopsies from patients. Liquid biopsies (blood tests that detect cancer by finding DNA that has broken off from tumor cells) is likely to become increasingly important in the diagnosis of cancer.
Cancer treatments include a wide range of options from prescription drugs to surgery. Chemotherapies (drugs that are toxic to living cells, including cancer cells) have been the primary medication option for treating cancer for decades. However, immunotherapies that harness the body's immune cells to fight cancer have taken center stage in recent years.
What are the biggest cancer-fighting stocks in 2019?
Cancer-fighting stocks include those of any companies that are involved in the prevention, diagnosis, or treatment of cancer. However, this broad definition includes some stocks of companies that don't yet make a significant portion of their revenue from fighting cancer. The top 10 cancer-fighting stocks on this list only include the stocks of companies that report revenue details on their regulatory filings that directly relate to either preventing, diagnosing, or treating cancer. The size is based on a company's market capitalization (the total number of a company's shares outstanding multiplied by the stock's market price).
Data sources: Yahoo! Finance and company regulatory filings. Market caps as of July 17, 2019.
Here's what you need to know about each of these big cancer-fighting stocks.
1. Johnson & Johnson
Johnson & Johnson's oncology franchise generated $9.8 billion in sales in 2018, nearly one-quarter of the company's total prescription drug revenue and 12% of its total revenue across all business segments. J&J's current product lineup includes four cancer drugs that made at least $1 billion for the year.
Prostate cancer treatment Zytiga has been J&J's top-selling cancer drug. However, sales for the drug are declining as it faces generic rivals. The company also has a newer prostate cancer drug, Erleada, for which sales continue to climb.
Johnson & Johnson co-markets Imbruvica with AbbVie. The drug is approved for several types of cancer, including chronic lymphocytic leukemia (CLL) and mantle cell lymphoma (MCL). Market researcher EvaluatePharma projects that Imbruvica will be the No. 5 best-selling drug in the world by 2024, with annual sales of $9.5 billion. But the cancer therapy delivering the most impressive sales growth for J&J is multiple myeloma drug Darzalex, which could achieve peak annual sales topping $8 billion.
2. Pfizer
Pfizer made $7.2 billion from its cancer drugs in 2018. In addition, the company made a little over $1 billion from its smoking cessation product Chantix. These products combined contributed more than 15% of Pfizer's total revenue for the year.
The company's top performer in its oncology franchise is Ibrance. Sales for the breast cancer drug continue to grow and should get a boost if it wins approval as an adjuvant therapy in helping prevent the recurrence of cancer. Sales are declining, however, for Sutent, a chemotherapy used in treating several types of cancer including kidney cancer, as newer rival drugs are taking away market share.
Pfizer's prostate cancer drug Xtandi could become the next blockbuster in its oncology lineup. The company also has several new products on the market, including lung cancer drug Lorbrena and breast cancer drug Talzenna. In addition, Pfizer's acquisition of Array BioPharma brings colorectal cancer drugs Braftovi and Mektovi into its oncology franchise.
3. Roche
Roche is a major player in fighting cancer in a couple of ways. The company's diagnostics segment markets next-generation sequencing (NGS) systems used in cancer research and is researching liquid biopsies for detecting cancer. But Roche's biggest contribution is with its cancer drugs, which combined generated more than $26 billion in 2018.
The company's top-selling cancer drugs Herceptin, Avastin, and Rituxan continue to be huge moneymakers. But the strongest growth in Roche's oncology franchise is coming from breast cancer drug Perjeta, immunotherapy Tecentriq, lung cancer drug Alecensa, and blood cancer drug Gazyva.
Roche's late-stage pipeline is loaded with promising programs. The company is evaluating already approved drugs including Kadcyla and Tecentriq in treating additional types of cancer. Roche also has new drugs in late-stage testing, including entrectinib, idasanutlin, and ipatasertib.
4. Merck
Keytruda is by far the top-selling drug for Merck. It's also on track to become the biggest blockbuster drug in the world within the next few years. EvaluatePharma projects that Keytruda's sales will more than double to reach $17 billion by 2024.
A major key to achieving that lofty sales level will be for Keytruda to win approvals for treating additional types of cancer. The drug has won more than 20 U.S. Food and Drug Administration (FDA) approvals so far. Merck is evaluating Keytruda as a monotherapy or in combination with one or more other drugs in clinical studies for treating at least 10 other types of cancer.
Merck also teamed up with Japanese drugmaker Eisai on Lenvima, which is approved by the FDA for treating kidney, liver, and thyroid cancers. The company co-markets Lynparza with AstraZeneca. Lynparza is approved for treating breast and ovarian cancers.
5. Novartis
Novartis' cancer franchise pulled in $13.4 billion in 2018. Chronic myeloid leukemia (CML) drug Tasigna was the drugmaker's top-selling cancer drug, generating $1.9 billion.
The company currently claims six other blockbuster ($1 billion or more in sales) cancer drugs. Sales are declining rapidly for Gleevec, a chemotherapy used for treating chronic myeloid leukemia (CML) and gastrointestinal stromal tumors (GIST), as it faces generic competition. Of Novartis' other blockbuster cancer drugs, only Promacta and Tafinlar + Mekinist are delivering solid sales growth.
However, Novartis has a near-blockbuster with Jakavi. The company's breast cancer drug Kisqali and immunotherapy Kymriah are picking up momentum. Novartis also has 20 cancer programs in either late-stage clinical testing or awaiting regulatory approval.
6. Abbott Laboratories
You might not think of Abbott Labs as a cancer-fighting stock. But the healthcare giant's diagnostics segment markets products that are instrumental in detecting cancer, including its Alinity, Architect, and Cell-Dyn core laboratory systems.
Although Abbott doesnt reportspecific sales figures for these systems, its overall core laboratory systems revenue totaled nearly $4.4 billion in 2018. This represented more than 13% of the company's total revenue for the year.
The Alinity family of instruments is a primary growth driver for Abbott's core laboratory systems business. These systems can be used to detect multiple diseases using blood samples, including cancer and infectious diseases.
7. Thermo Fisher Scientific
Thermo Fisher Scientific is another big healthcare company that might seem to be an oddball on this list. However, like Abbott Labs, the company develops and markets instruments used in cancer diagnosis. In addition, Thermo Fisher Scientific's next-generation gene-sequencing (NGS) systems are used in cancer research.
The company's specialty diagnostics business generated $3.7 billion in revenue in 2018. This segment includes Thermo Fisher's anatomical pathology offerings that are used in cancer diagnosis. However, the company doesn't provide specific revenue numbers for these products.
Thermo Fisher Scientific's life sciences business made nearly $6.3 billion in 2018. This segment's results include sales of NGS systems used in cancer research, although not at a granular level to know just how much of the company's revenue stems from these systems.
8. Amgen
Amgen became tremendously successful through the years primarily through its bone disease and immunology products. But the big biotech is also a leader in cancer drugs.
In 2018, around 38% of Amgen's total revenue stemmed from drugs used in treating cancer. This includes Amgen's second-best-selling drug, Neulasta, which is used to promote the production of white blood cells in patients after they receive chemotherapy. The total also includes Xgeva, which can be used to treat bone cancer and bone problems in patients who have cancer, along with up-and-coming cancer drugs Kyprolis and Blincyto.
Amgen's early-stage pipeline could significantly expand the company's presence in the cancer treatment market. The biotech has 18 oncology candidates in phase 1 clinical testing. In addition, Amgen has a biosimilar (a drug that's clinically similar to an approved drug made from living organisms) in development that could eventually compete against blockbuster cancer drug Rituxan.
9. AstraZeneca
AstraZeneca's cancer franchise raked in more than $6 billion in 2018. The company's top star was lung cancer drug Tagrisso, with sales of nearly $1.9 billion, followed by breast cancer drug Faslodex, with sales of a little over $1 billion.
Two of AstraZeneca's cancer drugs appear to be on track to become blockbusters: Lynparza and Imfinzi. AstraZeneca and Merck co-market Lynparza, while the company markets Imfinzi on its own. Imfinzi is currently approved for treating non-small cell lung cancer and previously treated advanced bladder cancer.
AstraZeneca's late-stage pipeline includes 17 candidates targeting cancer. Over half of these programs feature Imfinzi in combination with one or more other drugs. The company also has a couple of promising new cancer drugs, savolitinib and selumetinib.
10. Eli Lilly
Cancer drugs generated nearly $3.6 billion for Eli Lilly in 2018, accounting for around 15% of the company's total revenue. Lilly's biggest winner is Alimta, which first won FDA approval back in 2004 for treating mesothelioma. The drug subsequently gained approvals for treating non-small cell lung cancer.
Lilly isn't picking up a lot of momentum with its cancer franchise, though. Sales for Cyramza are growing but not at an impressive rate. Sales are falling for Erbitux, which, like Alimta, first won FDA approval in 2004. The main bright spot is breast cancer drug Verzenio, which continues to experience strong sales growth after winning FDA approval in 2017.
There are only three cancer programs in Lilly's late-stage pipeline. Two of them are pursuing additional indications for already approved drugs Cyramza and Verzenio. The one new late-stage candidate, pegilodecakin, targets treatment of pancreatic cancer. Lilly picked up the drug through its $1.6 billion acquisition of ARMO Biosciences in 2018.
Risks for these cancer-fighting stocks
Each of the 10 biggest cancer-fighting stocks operates in a highly regulated environment. The eight companies on the list that primarily focus on cancer drugs must conduct extensive clinical testing of their pipeline candidates before seeking regulatory approval. It's a similar story for the two companies that primarily focus on diagnostic systems. A major clinical setback could cause any of these stocks to fall.
This is especially a risk for drugmakers. Only around 5% of cancer drugs that begin clinical testing go on to win FDA approval, according to the Biotechnology Innovation Organization (BIO).
Even if clinical testing goes well, it's never a slam dunk for a new product to win regulatory approval. Nearly 18% of cancer drugs that make it all the way through late-stage clinical studies fail to win FDA approval.
Assuming a product sails through clinical testing and wins regulatory approval, it then faces the risk of flopping commercially. Competition is often fierce, particularly for drugs that treat relatively common types of cancer like breast cancer and lung cancer.
Cancer drugs that perform well in the marketplace can even be withdrawn if issues arise later. This happened in 2019 when Eli Lilly announced that it was yanking soft tissue sarcoma drug Lartruvo from global markets after the drug flopped in a confirmatory clinical study following its approval.
Companies also could be subject to litigation if patients experience complications while using their cancer-fighting products. For example, French drugmaker Sanofi is being sued over allegations that its breast cancer drug Taxotere caused permanent hair loss.
There's also a risk that major changes to the U.S. healthcare system could cause problems for the top 10 cancer-fighting stocks. Many of these companies make the majority of their revenue in the U.S. If measures were introduced to limit the ability of companies to price their cancer drugs, it could cause the stocks to fall.
Why invest in cancer-fighting stocks?
Despite these risks, the potential exists for solid returns from many of the top 10 cancer-fighting stocks. Aging populations across the world will almost certainly increase the number of patients diagnosed with cancer over the next few decades. This will create a tremendous opportunity for companies that develop products that are highly effective at diagnosing and treating cancer.
Remember, though, that the war on cancer isn't just limited to the largest companies. Over 700 companies are developing late-stage cancer immunotherapies, according to a report from the IQVIA Institute for Human Data Science. Many of these companies are publicly traded. There are plenty of alternatives for investors looking to buy cancer-fighting 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. | Medical imaging equipment for CT scans and mammography play an important role in detecting cancer as do devices that help physicians obtain tissue biopsies from patients. Sales are declining rapidly for Gleevec, a chemotherapy used for treating chronic myeloid leukemia (CML) and gastrointestinal stromal tumors (GIST), as it faces generic competition. But the healthcare giant's diagnostics segment markets products that are instrumental in detecting cancer, including its Alinity, Architect, and Cell-Dyn core laboratory systems. | The company's diagnostics segment markets next-generation sequencing (NGS) systems used in cancer research and is researching liquid biopsies for detecting cancer. But the strongest growth in Roche's oncology franchise is coming from breast cancer drug Perjeta, immunotherapy Tecentriq, lung cancer drug Alecensa, and blood cancer drug Gazyva. Chronic myeloid leukemia (CML) drug Tasigna was the drugmaker's top-selling cancer drug, generating $1.9 billion. | The company also has several new products on the market, including lung cancer drug Lorbrena and breast cancer drug Talzenna. But the strongest growth in Roche's oncology franchise is coming from breast cancer drug Perjeta, immunotherapy Tecentriq, lung cancer drug Alecensa, and blood cancer drug Gazyva. The company's top star was lung cancer drug Tagrisso, with sales of nearly $1.9 billion, followed by breast cancer drug Faslodex, with sales of a little over $1 billion. | Cancer-fighting stocks include those of any companies that are involved in the prevention, diagnosis, or treatment of cancer. The company's top star was lung cancer drug Tagrisso, with sales of nearly $1.9 billion, followed by breast cancer drug Faslodex, with sales of a little over $1 billion. There's also a risk that major changes to the U.S. healthcare system could cause problems for the top 10 cancer-fighting stocks. |
32947.0 | 2019-07-27 00:00:00 UTC | 10 Biggest Medical Device Stocks | ABT | https://www.nasdaq.com/articles/10-biggest-medical-device-stocks-2019-07-27 | nan | nan | Are you an investor looking for stocks that beat the S&P 500 index? Think big. And think medical devices.
That's a strategy that has worked over the last five years. Since 2014, 8 of the 10 biggest medical devices have outperformed the S&P 500. Five of these large medical device stocks more than doubled the return of the popular index. Here's what you need to know about the 10 biggest medical device stocks on the market right now.
Image source: Getty Images.
A quick overview of the medical device industry
There are three primary things you need to know about the medical device industry:
It's really diverse.
It has a lot more small players than big ones.
It's highly regulated.
The medical device industry ranges from very low-tech products like surgical gloves to very high-tech products, including artificial heart valves. This wide diversity is reflected in the U.S. Food and Drug Administration's (FDA) definition of a medical device, which includes any "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory" that is used in diagnosing, curing, preventing, or treating a disease and isn't a pharmaceutical drug.
As you might expect with such a wide range of products, the medical device industry is big. There are at least 32,000 medical device makers in the world. However, most of them are small, with fewer than 50 employees. The 10 biggest medical device makers, on the other hand, all have thousands of employees and make billions of dollars in revenue annually.
All medical devices in the U.S. are regulated by the FDA. Some devices that pose little risk to patients only have to be registered with the FDA without the requirement for a review. Other devices that involve moderate levels of risk require premarket notifications to be reviewed by the FDA. The FDA requires clinical testing to demonstrate safety and effectiveness for medical devices that carry the most risk for patients. Most of the 10 biggest medical device makers market products that fall into this last category.
What are the biggest medical device stocks in 2019?
Several of the 10 biggest medical device stocks focus their efforts on areas other than only medical devices. Others specialize in niche markets. And while they're all large-cap stocks (with market caps of $10 billion to $200 billion), the three biggest stocks on the list have combined market caps (shares outstanding multiplied by the share price) that are much greater than the combined market caps of the other seven big medical stocks.
Data sources: Yahoo! Finance, company regulatory filings. All market caps as of July 15, 2019.
Here are some key highlights for each of these big medical device stocks.
1. Johnson & Johnson
Johnson & Johnson isn't just the biggest medical device stock on the market; it's the biggest stock in the entire healthcare sector. J&J is a holding company that operates more than 260 companies across the world. These companies are organized into three business segments: medical devices, consumer, and pharmaceuticals.
Based on 2018 revenue, J&J's medical device segment ranks as the third-largest medical device maker in the world. The company's medical device segment makes most of its revenue from surgical products, with growth fueled primarily by wound care and advanced sterilization products.
But while its medical devices segment contributes around one-third of Johnson & Johnson's total revenue, the company's biggest segment in terms of sales and revenue growth is its pharmaceuticals business. The pharmaceuticals segment generates roughly half of J&J's total revenue. Its top products include immunology drugs Remicade and Stelara and cancer drugs Darzalex, Imbruvica, and Zytiga.
2. Abbott Laboratories
Like Johnson & Johnson, Abbott Laboratories isn't focused only on medical devices. The company has four reportable business segments: established pharmaceutical products, diagnostic products, nutritional products, and cardiovascular and neuromodulation products.
Abbott's cardiovascular and neuromodulation products segment ranks as the top revenue source for the company. This segment's products include a broad lineup of medical devices for rhythm management, electrophysiology, heart failure, and vascular and structural heart devices, plus neuromodulation devices for the management of chronic pain and movement disorders. Another medical device with fast-growing sales that isn't included in any of Abbott's segments is the FreeStyle Libre continuous glucose monitoring (CGM) system.
The company's diagnostic products and nutritional products segments jockey for position as the second-largest contributor to the top line. Abbott has enjoyed especially strong growth in the diagnostics products segment thanks in large part to acquisitions. Its nutritional products segment doesn't kick in as much revenue, but it's still a multibillion-dollar business that continues to grow with aging populations across the world and expanding middle classes in developing nations.
3. Medtronic
Medtronic is the third-largest medical device stock in terms of market cap. But based solely on sales of medical devices, the stock holds the No. 1 spot. Unlike Johnson & Johnson and Abbott Labs, all of Medtronic's revenue stems from the medical device market. Medtronic has four operating segments: cardiac and vascular group, minimally invasive therapies group, restorative therapies group, and diabetes group.
The cardiac and vascular group contributes around 38% of Medtronic's total revenue. This segment develops and markets a wide range of cardiovascular products, including cardiac monitors, coronary stents, heart valves, and pacemakers.
Medtronic's minimally invasive therapies group and its restorative therapies group each generate a little more than one-quarter of the company's total revenue. The former markets products including surgical staples and meshes used in hernia repair, while the latter markets products such as bone grafts and robotic surgical systems added with the 2018 acquisition of Mazor Robotics. While Medtronic's diabetes group contributes less than 10% of total revenue, sales for its insulin pumps and CGM systems are increasing significantly.
4. Stryker
Stryker is another company that makes all of its revenue from medical devices. It's organized into three business segments: orthopedics, medsurg, and neurotechnology and spine.
The medsurg segment is Stryker's biggest moneymaker, generating around 44% of total revenue in 2018. Medical-surgical products sold by the segment include surgical equipment and navigation systems, endoscopic systems, patient handling systems, and emergency medical equipment.
Stryker's orthopedics segment isn't too far behind, contributing 37% of total revenue. This segment primarily markets implants used in hip and knee joint replacements and trauma and extremities surgeries. The company's neurotechnology and spine segment kicks in the remainder of Stryker's total revenue. It focuses on developing and marketing neurosurgical, neurovascular, and spinal implant devices.
5. Becton, Dickinson and Company
Becton, Dickinson and Company (BD) ranks relatively high on the 2019 list of top medical device stocks thanks in large part to its 2017 acquisition of C.R. Bard. BD operates three business segments: BD medical, BD life sciences, and BD interventional.
The BD medical segment generates more than half of the company's total revenue. This segment sells a wide lineup of products including intravenous (IV) catheters, syringes and needles, infusion pumps, and medication dispensing systems.
Around 27% of BD's total revenue stems from its BD life sciences segment. Medical devices sold by this segment include blood collection systems, blood culturing systems, and molecular testing systems. The BD interventional segment contributes close to one-fifth of the company's total revenue. This segment markets medical devices including grafts, angioplasty balloon catheters, stents, and urinary catheters.
6. Intuitive Surgical
Intuitive Surgical focuses on developing and marketing robotic surgical systems for use in minimally invasive surgery. The company launched its flagship da Vinci system in 1999. Since then, Intuitive Surgical has rolled out four generations of da Vinci robotic surgical systems.
The company makes more than 70% of its total revenue from recurring sources. These include the sale of instruments and accessories that must be replaced after surgical procedures are performed, services, and operating leases. Intuitive Surgical's business model is changing in that a larger percentage of its customers are choosing to lease robotic surgical systems rather than buy them. This should boost the company's recurring revenue over the long run.
In addition to the da Vinci system, Intuitive also now has another robotic surgical system on the market. The company launched its ION system after receiving FDA clearance in February 2019. This system is used to obtain tissue from within the lung for analysis to determine if a person has lung cancer.
7. Boston Scientific
Boston Scientific currently ranks at No. 7 on the list of the top 10 medical device stocks, but its acquisition of United Kingdom-based medical device maker BTG could bump the company into the No. 6 spot. The company has three business segments: medsurg, rhythm and neuro, and cardiovascular.
The cardiovascular segment contributed nearly 39% of Boston Scientific's total revenue in 2018. This segment focuses on structural heart devices, including transcatheter aortic valve replacement (TAVR) and percutaneous coronary intervention (PCI) products.
Boston Scientific's other two segments each bring in around 31% of total revenue. The medsurg segment sells endoscopy products as well as urology and pelvic health products. The rhythm and neuro segment markets medical devices including catheters used in electrophysiology, defibrillators, and neuromodulation devices for treating movement disorders and managing chronic pain.
8. Illumina
Illumina is the leading maker of genomic sequencing systems. These systems are used to map DNA sequences. The company's technology played an important role in helping reduce the cost of mapping a human genome (the complete set of genes) from $200,000 in 2009 to less than $1,000 today.
Like Intuitive Surgical, Illumina claims a high level of recurring revenue. In 2018, 83% of Illumina's total revenue stemmed from recurring sources -- 65% from sales of consumable chemicals and reagents used in sequencing and 18% from services.
Illumina's sequencing systems range from high-throughput products like HiSeq to small desktop systems such as iSeq. The company's NovaSeq system, introduced in 2017, continues to drive much of Illumina's growth as existing HiSeq customers convert to the system and new customers begin performing genomic sequencing.
9. Baxter International
Baxter International has three geographical business segments. But the company is also organized into seven global business units (GBUs):
Renal care
Medication delivery
Pharmaceuticals
Clinical nutrition
Advanced surgery
Acute therapies
Other
The renal care GBU generates roughly one-third of Baxter's total revenue. This unit primarily focuses on peritoneal dialysis and hemodialysis products. Baxter's medication delivery and pharmaceuticals units contributed 24% and 19%, respectively, of total revenue in 2018. The company's medication delivery products include IV therapies and infusion pumps, while its pharmaceuticals products include cancer drugs and anesthesia products.
Baxter's other four GBUs combined pull in nearly one-quarter of the company's total revenue. Products marketed by these units include parenteral nutrition therapies, medical devices used in surgical procedures, and continual renal replacement therapies.
10. Edwards Lifesciences
Edwards Lifesciences has at least one thing in common with Baxter International: It's organized into geographical rather than product segments. However, Edwards focuses on four key product groups: transcatheter aortic valve replacement (TAVR), surgical structural heart, critical care, and transcatheter mitral and tricuspid therapies.
TAVR is by far the biggest moneymaker for Edwards Lifesciences, contributing roughly 60% of total revenue. The Sapien 3 heart valve has been a huge hit for Edwards. But the fastest sales growth is coming from Edwards' surgical structural heart products. These products, which primarily include aortic tissue valves, generate more than 20% of total revenue.
Edwards Lifesciences' critical care product group brings in around 18% of total sales. This group includes the company's HemoSphere advanced monitoring platform. At the bottom is the transcatheter mitral and tricuspid therapies product group, which adds less than 1% of total revenue. These products include Edwards' transcatheter valve repair systems.
Risks for these big medical device stocks
Investing in any stock involves risks. When it comes to medical device stocks, those risks are likely to take on certain attributes. Key risks for the 10 biggest medical device stocks include:
Competitive threats
Regulatory hurdles
Product liability risks
Macroeconomic risks
The competitive dynamics in the medical device industry are constantly changing. These large players in some cases compete against each other. They also face the possibility of being disrupted by new technology developed by some of the thousands of smaller medical device makers.
Each of the 10 largest medical device companies develops complex products that require approval by the FDA in the U.S. and by other countries' regulatory agencies. Failure to obtain the necessary approvals to go to market could negatively impact these companies' growth prospects.
Many of the products developed by the largest medical device makers potentially pose safety risks to patients. As a result, these companies face product liability risks if patients are harmed in any way by the use of their medical devices.
Like stocks in nearly every industry, these medical device stocks could be pulled down by macroeconomic issues such as an economic recession. Also, because many of these large medical device makers generate significant revenue in international markets, particularly China, trade barriers or the threat of such barriers can hurt these stocks.
Why consider buying these large medical device stocks?
One key reason for considering buying these large medical device stocks is the worldwide aging demographic trend. As more individuals age, the need for many of the medical devices made by these companies will increase.
Beyond the aging populations across the world, there's also likely to be a significant increase in chronic conditions among individuals who aren't as old. Factors such as diet and lack of physical activity are contributing to this increase. Medical device makers that make cardiovascular and diabetes care products could especially benefit from this trend.
Two of these large medical device stocks stand out as particularly promising investing candidates: Illumina and Intuitive Surgical. Illumina should deliver strong growth as demand for genomic sequencing expands, especially in the areas of cancer diagnostics and treatment. Intuitive Surgical should also be a long-term winner as more minimally invasive procedures are performed using robotic surgical systems.
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Keith Speights owns shares of Illumina and Intuitive Surgical. The Motley Fool owns shares of and recommends Illumina and Intuitive Surgical. The Motley Fool recommends Becton Dickinson and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its nutritional products segment doesn't kick in as much revenue, but it's still a multibillion-dollar business that continues to grow with aging populations across the world and expanding middle classes in developing nations. This segment sells a wide lineup of products including intravenous (IV) catheters, syringes and needles, infusion pumps, and medication dispensing systems. This segment focuses on structural heart devices, including transcatheter aortic valve replacement (TAVR) and percutaneous coronary intervention (PCI) products. | This segment's products include a broad lineup of medical devices for rhythm management, electrophysiology, heart failure, and vascular and structural heart devices, plus neuromodulation devices for the management of chronic pain and movement disorders. But the company is also organized into seven global business units (GBUs): Renal care Medication delivery Pharmaceuticals Clinical nutrition Advanced surgery Acute therapies Other The renal care GBU generates roughly one-third of Baxter's total revenue. However, Edwards focuses on four key product groups: transcatheter aortic valve replacement (TAVR), surgical structural heart, critical care, and transcatheter mitral and tricuspid therapies. | The company's medical device segment makes most of its revenue from surgical products, with growth fueled primarily by wound care and advanced sterilization products. But while its medical devices segment contributes around one-third of Johnson & Johnson's total revenue, the company's biggest segment in terms of sales and revenue growth is its pharmaceuticals business. Key risks for the 10 biggest medical device stocks include: Competitive threats Regulatory hurdles Product liability risks Macroeconomic risks The competitive dynamics in the medical device industry are constantly changing. | And think medical devices. Here's what you need to know about the 10 biggest medical device stocks on the market right now. But while its medical devices segment contributes around one-third of Johnson & Johnson's total revenue, the company's biggest segment in terms of sales and revenue growth is its pharmaceuticals business. |
32948.0 | 2019-07-25 00:00:00 UTC | A Conversation on ESG and Sustainability With As You Sow CEO Andrew Behar | ABT | https://www.nasdaq.com/articles/a-conversation-on-esg-and-sustainability-with-as-you-sow-ceo-andrew-behar-2019-07-25 | nan | nan | Andrew Behar is the CEO of As You Sow and the author of The Shareholder Action Guide. He is also a member of the board of US Social Investing Forum (US SIF) and is a member of the UN Sustainable Stock Exchange Green Finance Advisory Group. In this interview, Motley Fool analysts Maria Gallagher and John Rotonti chat with Behar about sustainability, corporate responsibility, and ESG investing.
The Motley Fool: Can you please tell our readers about As You Sow? What is your mission, your vision, and what do you do?
Andrew Behar: As You Sow is a nonprofit organization that since 1992 has been a leader in moving corporations to become more responsible on a broad range of environmental, social, and governance (ESG) issues. Our theory of change states that corporate power has become the most dominant force on the planet, and to achieve our vision of a safe, just, and sustainable world for all, we MUST engage corporations to be part of the solution by shifting their policies and practices to reduce risk. As You Sow is effective in creating change because corporations have a legal duty to their shareholders. We use this legal standing to advocate as shareholders for the benefit of all stakeholders including employees, customers, communities where the company operates, ecosystems, the planet, and of course shareholders. We believe that this stakeholder-centric vision of capitalism in fact optimizes benefit for the company and shareholders. As You Sow believes that this is one of the most powerful paths for creating positive, lasting changes to achieve a safe, just, and sustainable world for all.
Andrew Behar, CEO of As You Sow. Image Source: Andrew Behar.
The Motley Fool: As CEO of As You Sow, what are your priorities, and where do you focus your time and attention?
Behar: Primarily I focus on empowering my amazing staff of issue experts to figure out how best to achieve our vision of a safe, just, and sustainable world for all. Humanity has all the tools to do this, and we also have case studies showing how to do this. We can power the planet without any destructive fossil fuels; we can grow enough food using regenerative agriculture without poisoning ourselves and our families with toxic pesticides; we do not need single-use plastics that are destroying the ocean and whose only real purpose is propping up an obsolete oil and gas industry; we can pay people a living wage; and we can operate businesses without slavery and forced labor. We can do all of this sustainably while reducing risks to corporations and incentivizing executive management. I spend a lot of time thinking about overarching systems and how all of this is interconnected -- looking for leverage points to find a glide path to the new paradigm.
The Motley Fool: Can you mention some of the specific initiatives your work focuses on with regards to the environment, consumer protection, and human rights?
Behar: As You Sow has six main program areas with multiple initiatives under each. Danielle Fugere, our president and chief counsel, oversees these programs. Let's start with Energy. The Energy Program team is led by Liza Holman and focuses on climate change, hydraulic fracturing, fugitive methane, the conversion of utilities from coal to renewables, and now we are getting involved in the expansion of the petrochemical industry that is building new plants to process fracked gas into plastic feedstocks.
If you are following the entire oil and gas manufacturing chain, then the Waste and Ocean Plastics team led by Conrad MacKerron takes over from there at the petrochemical plants. In fact, we just had a major win a few months ago regarding these plastic pellets when we compelled ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and Philips 66 (NYSE: PSX) to agree to disclose spills of the pellets also known as nurdles. Believe it or not, nurdle spills are common, and companies have never publicly reported them -- imagine if Exxon never mentioned the Exxon Valdez oil spill or BP (NYSE: BP) was not required to tell the world about the Deepwater Horizon disaster. We filed shareholder resolutions, and after several meetings and a bunch of press on the issue, the three companies agreed to public disclosure. The waste team is working on a major plastic scorecard due out toward the end of 2019 -- this will be the sixth report we have researched and published on the issue of plastic waste starting back in 2006 with a report on plastic bottles and aluminum can recycling by the beverage industry.
The waste team works on all aspects of postconsumer packaging waste with a major focus on the ocean plastic problem. We recently convinced Dunkin' (NASDAQ: DNKN) to stop using one billion Styrofoam cups each year, same for McDonald's (NYSE: MCD) -- no Styrofoam in their global operations, chalk up another billion cups that will not be produced every year. We were involved with many partners to get Starbucks (NASDAQ: SBUX) to stop using 3 billion plastic straws every year; we brought the shareholder resolution to the floor of the Starbucks annual meeting earlier this year. We also compelled Unilever (NYSE: UN), Proctor & Gamble (NYSE: PG), Pepsi (NASDAQ: PEP), and Colgate-Palmolive (NYSE: CL) to phase out all nonrecyclable packaging. We work directly with dozens of major brands, helping them figure this out, including Kroger (NYSE: KR), Safeway, Amazon-owned Whole Foods (NASDAQ: AMZN), all of the fast-food companies, and major food manufacturers. In the past few years, there has also been a groundswell of public support to save the oceans and stop the spread of plastic pollution. This dynamic of connecting customers and shareholders has proved to be very effective. Basically, everyone is on board except the oil and gas industry that is committed to expanding plastic production five-fold in the next decade. They see it as existential, as ramping up plastics is the only way their business can survive. If you do the economic projection analysis, it's pretty clear that demand for fossil fuels used in transport has no future, as we see commitments by China and India to ban the internal combustion engine in a few years; so they are willing to sacrifice the world's oceans to keep extracting oil and gas.
Our Environmental Health Program is known internally as "Make Food Safe To Eat." We focus on a few specific issues including getting antibiotics out of meat; in the past three years, KFC, which is owned by Yum! Brands (NYSE: YUM), Burger King, which is owned by Restaurant Brands International (NYSE: QSR), Wendy's (NASDAQ: WEN), and McDonald's all agreed to switch to poultry raised without medically important antibiotics based on our efforts and those of our partners and allies. Because Tyson (NYSE: TSN), Perdue, and Sanderson Farms (NASDAQ: SAFM) then had no market for their products, they all followed suit and switched. This is the power of supply chains. Families eating fast-food chicken nuggets became fearful of superbugs that were a result of antibiotic overuse; shareholders (As You Sow) saw the risk to the company's bottom line and raised the issue; the companies responded with new policies and practices to maintain their market share; their supply chain responded to them. The only losers are the superbugs. The Ehealth team also files notices under California's Safe Drinking Water and Toxic Enforcement Act of 1986 with companies that have carcinogens and reproductive toxicants in their products. We have filed thousands of these cases that have led to labeling and reformulation of protein powders, seaweed snacks, nail polish, children's jewelry, portable school classrooms, fresh fish, herbal supplements, earbuds, and hundreds of more products that you see on your store's shelves.
Another program area led by Rosanna Landis Weaver focuses on egregious CEO pay. We publish a report every February called The 100 Most Overpaid CEOs of the S&P 500. What is remarkable is the inverse correlation between pay and competence. Each year we compare the S&P with and without the companies with the top 10 most overpaid CEOs. And each year we see that if you want to outperform, you should underweight the companies that overpay. But it goes much deeper than that; we see pay ratios showing that it would take an average worker 1,000 years to earn what the CEO earns in one. The income inequality issue festers in every part of the economic system and is a problem that needs to be addressed.
Our Social program focuses on slavery in supply chain and historically has been doing a deep dive on the cotton and mineral industries. Through our project called The Responsible Sourcing Network, we brought together a multistakeholder group to help write the Dodd-Frank 1502 rules on reporting the use of conflict minerals (tin, tantalum, tungsten, and gold). We publish a report annually on corporate disclosure of conflict mineral use. We have also led the fight to outlaw child slavery in the cotton fields of Uzbekistan and have over 300 global apparel brands that have signed a pledge to not use slavery or forced labor in their supply chains. We have just completed a pilot of a program called YESS (Yarn Ethically and Sustainably Sourced) that trains and audits spinners in Bangladesh and India, teaching and certifying them to reject cotton that has been harvested with forced labor.
We recently have been working on gender equality, and last week, we sent an investor statement to 3,000 companies signed by 99 investors with $1.61 trillion in assets to send a clear message that gender equality and diversity are material issues that must be publically disclosed. We are now beginning direct engagement with the laggard companies across multiple business sectors.
To round all of this off, we have created a suite of tools called Invest Your Values that empower all investors of mutual funds and ETFs to align their investing with their values. Currently, the $8.4 trillion in 401(k) plans are invested blindly. Very few people, if any, know what companies are held within their mutual funds. Our tools show you exactly which fossil fuels, coal-fired utilities, palm oil producers, banks that fund climate destruction, cluster munitions, nuclear weapons, assault rifles, tobacco, private prisons, and companies with poor disclosure and practices on gender equality, to name a few, are held in your retirement account. This suite of tools empowers people to move their money to capitalize on a future that they believe in.
The Motley Fool: Please tell us about toxic chocolate.
Behar: We began testing cacao after our research team read some academic papers on lead and cadmium in chocolate. This led to our testing hundreds and hundreds of chocolate bars and filing notices with the manufacturers. Over the course of about four years, we reached a settlement, and the industry has agreed to fund a scientific study to figure out where the contaminations are coming from and ultimately find a solution. It has been a long, hard path, and we are only six months into the two-year study but we are hopeful that there are feasible solutions, as the chocolate industry wants to solve this as much as we do.
The Motley Fool: How do you share your work with the world? Is it primarily through the research and reports that you publish? Do you also rank funds based on their ESG profile?
Behar: We publish about five reports every year and generally do a webinar and press outreach when we release them. This year we have two new ones coming up, one on pesticides in the food system and one on ocean plastics. We share the work through traditional and online press as well as social media. Our process is that we generally start with deep research and then we reach out to companies directly to talk about our findings. Sometimes they are very grateful and agree to fix the issue in a reasonable time period. Sometimes they are reluctant, and so we need to escalate to filing a shareholder resolution. At that point, the issue is public, as it is filed with the SEC, so we may do some press interviews and blogging around it. If the company does not want to work with us and it is going to go to a vote at the annual meeting, we step up the public outreach, as we want all shareholders to know about it and support us with their vote. After the annual meeting, we speak to the company again and often find a mutually agreed solution, or we keep talking, and the longer it goes on the more company shareholders, employees, and customers hear about it, which creates negative brand associations. Eventually, the company sees that we are advocating to help them with a risk or problem that they may not have identified, and so we come to an agreement.
An example of this is the Monster Beverage (NASDAQ: MNST) resolution we filed in 2018 on slavery in supply chains. Monster received a zero (dead last) on the Know the Chain scorecard. We contacted them, and they told us it was not a top issue for them. This escalated to a shareholder resolution, and we got quite a bit of press around it as we approached the annual general meeting (AGM). Their suppliers like Coca-Cola (NYSE: KO) and many customers (we brought them a petition with over 21,000 signatures) were not happy. We refiled for the next year, but within 10 months of the annual meeting, they had audited 80% of their suppliers and built a training platform and trained 170 staffers, so we withdrew the resolution and put out a press release about how Monster had a total turnaround, and other companies that say they can't address this issue now have a case study showing them how to do it.
The Motley Fool: What is shareholder advocacy, and how do you use it as a tool for change?
Behar: Shareholders have legal standing with corporations in which they own shares and may bring a proposal to their company management about how to reduce risk and be a better company. This is a tool that we use to help corporations see risk that they might not otherwise see. A recent example is the case of gender equality; any company that does not see this coming is pretty blind, as this issue defines a culture -- to attract and retain the best and brightest employees, companies must have a well-thought-out and -implemented, publicly disclosed gender equality plan.
The Motley Fool: What is a shareholder resolution, and can you briefly discuss some of the successful outcomes that resulted from your corporate engagement efforts?
Behar: A shareholder resolution is a 500-word proposal submitted by a shareholder or a shareholder's authorized representative to a company's management. The shareholder must own at least $2,000 worth of stock for at least one year prior to the filing deadline, which is generally six months prior to the annual general meeting.
Successful outcomes -- there are many listed above. One thing to note is that people who work in this space are extremely tenacious, and we see ourselves and the companies we work with as on the path. Some of these adjustments to corporate policy and practice take years and years. Also, many people do not understand the nature of the votes. These resolutions are for the most part nonbinding, which means that even with a 100% vote, the company has no legal obligation to make a change. That said, we have seen major shifts with 6% votes, and we have also seen failed resolutions with a majority or even at 99%.
So here are a few more stories. One involved genetically modified organisms (GMOs) that was filed with Abbott Laboratories (NYSE: ABT). Basically, we felt that it would be a huge market advantage for Abbott to offer non-GMO Similac infant formula in the U.S. We knew that Abbott could manufacture it, as they sold it in the EU, where GMO labeling is required and no parent would buy formula with a big GMO warning label. They said that it was not possible to produce. We filed resolutions over three years; brought them over 75,000 signatures of parents who wanted to buy non-GMO Similac if it was made available; ran studies on GMO labeling. Finally (after a 6.2% vote), they agreed, and it has become one of their best-selling products -- in fact, there are five types, including for tender tummies, available. Abbott has a monopoly on the market and has benefited from sales and positive brand association.
Another example is the resolution we filed with Dunkin' about the use of nanomaterial in their donuts. We found nano titanium dioxide in the white powdered sugar on Dunkin' donuts. Some background -- nanomaterials are so small that they can pass through the blood-brain barrier and have never been tested or shown to be safe in humans. We know that they cause brain edemas in rats. But here in the U.S., we do not believe in the precautionary principle like they do in the EU, which requires that chemicals put into food be tested for safety. So we asked Dunkin' about this. They did not want to discuss it, so we released our lab data and a video about it to the press and filed a shareholder resolution that got an 18% vote. This attracted a great deal of attention, and in dialogue they said that they did not realize it was in their products and asked their supplier, who also denied knowledge of it. Long story short, we withdrew the second-year resolution because they switched to powdered sugar that was 100% sugar, published a no-nano policy, and became an industry leader. We shared this with many other food manufacturers, and many adopted the policy and questioned their suppliers, which led to suppliers stopping the proliferation of an untested additive.
The Motley Fool: Does As You Sow ever partner with large institutional investors to push for change at corporations? If so, would you mind giving an example?
Behar: As You Sow always partners with all investors including large institutional ones. We are UNPRI members, and most of our resolutions align with the Principles of Responsible Investing -- so we start with the assumption that $70 trillion in assets under management (AUM) will vote with us. Of course, to be realistic, many investors at the PRI are not really actively engaged on these issues. First, a great deal of the AUM are held by companies like BlackRock (NYSE: BLK), Vanguard, and State Street (NYSE: STT) (call it $20 trillion), companies that basically talk a good game on sustainability but are deeply conflicted and so rarely vote. In fact, the only time that they voted on a climate resolution was Exxon in 2017, and it earned a 62% majority, but they lacked the stamina to follow through when Exxon delivered a defective report, and none would hold the board accountable.
We also work closely with the Interfaith Center on Corporate Responsibility (ICCR) and all of the faith-based investors particularly on social issues and climate change. Generally, they vote for our resolutions, as we have very close alignment. We are also CERES members and coordinate on climate change and water. The CA 100+ (Climate Action 100+) has $34 trillion in AUM, and for the most part, they vote with our climate resolutions, although it's often hard to get them to vote as a block, especially when we file resolutions that push the envelope. Beyond that, we call the major shareholders of companies that we file with. We publish exempt solicitations and publish them on EDGAR, and we reach out through the press to "get out the vote."
The Motley Fool: What is your message for the small retail investor that may not think he/she owns enough shares of a company to advocate for change?
Behar: In a word: VOTE! It really matters. About 30% of all shares are held by individuals, and if everyone voted, we could help companies avoid risk and be more profitable. At a minimum, if your financial advisor is voting for you, have them switch to ISS-SRI; they pretty much recommend a YES vote on progressive resolutions, whereas regular ISS, for the most part, votes with management. So one phone call to switch can be very significant. If you are still getting loads of paper ballots, then ask your advisor to send them by email. It's very easy to click on an email and vote. Also, every March, we publish Proxy Preview with partners Proxy Impact and Sustainable Investments Institute that explains all of the upcoming resolutions.
The Motley Fool: What environmental, social, or governance (ESG) risk concerns As You Sow the most, and what are you trying to do about it?
Behar: The big picture is shifting the dominant interpretation of capitalism, which states that corporations exist only for the benefit of shareholder returns, to a stakeholder-centric view that states that employees, customers, and communities where they operate are equally important. We believe that in fact, when all of these stakeholders are taken into consideration, it will reduce corporate risk and optimize for shareholder returns as well as preserve a livable planet.
The Motley Fool: What is Fossil Free Funds?
Behar: Fossil Free Funds is the first of our Invest Your Values suite of financial transparency tools. It empowers any shareholder to enter a mutual fund name or ticker and see exactly what companies you hold that are oil and gas, fossil-fired utilities, pipelines, or oil-field services. Basically total transparency. Even in so-called Fossil Free Funds from State Street, we see 35 fossil fuel companies. We have learned to not believe a fund's name and to be very cautious about how we read the prospectus. We update the tools once a month and provide financial performance as well as aggregate carbon footprints for each fund so you can compare apples to apples.
The Motley Fool: What is Deforestation Free Funds?
Behar: Similar to Fossil Free Funds but focused on companies that produce palm oil, the banks that fund them, and the companies with palm oil in their snack food products. We partner with Friends of the Earth and Rainforest Action Network on this site.
The Motley Fool: What is the Carbon Clean 200?
Behar: CarbonClean200 is a thought exercise that we collaborate on with Corporate Knights. It came about three years ago when we kept hearing people say that there were no good cleantech companies to invest in. So we created a simple rubric and did the analysis of all global companies with greater than $1 billion revenues, excluded non-SRI-compliant ones, then put them in order by revenue from green/clean energy. We update it every six months, and the next one is due out August 15th. It is remarkable to see the shift as the clean energy future is actually the present. These are the companies that will be on the S&P500 when Exxon, Chevron, and Halliburton (NYSE: HAL) fall off because they did not transition their business plan in time.
The Motley Fool: Please tell us about your Gender Equality Funds.
Behar: This is the most recently launched of the Invest our Values tools. We collaborated with Equileap, a data provider out of Amsterdam that gathers 19 key performance indicators of gender equality. This is way beyond just women on the board. It looks at policies and practices throughout the company, equal pay, sexual harassment, retaliation, maternity leave, training, recruitment, etc. We aggregate 12 of these data points on 4,000 companies sorted by mutual fund holdings and display the score. It's remarkable to see that, for example. the mutual fund that is owned by most government employees in the Thrift Savings Plan scores a 3 out of 100 on this tool. I predict that we will see this wave of gender-lens investing turn into a tsunami of capital flowing to companies highly ranked on this issue.
The Motley Fool: What is the business case for ESG? In other words, what effect have you found that ESG has on corporate profitability? Can you think of an example in which a company improved its ESG profile, and that led to higher profits?
Behar: I can't think of one where it has not. Better management cares about risk, and ESG is focused on risk. Environmental risk; if you dump in the commons, it will come back to bite you with penalties for violations, bad brand association, and potentially toxic exposure by your workforce. Social; gender equality, diversity, and slavery in a supply chain define a company's culture. To attract and retain the best and the brightest, these are required. And Governance is critical for trust and long-term relationships. Without good governance there is no oversight. ESG should be called "basic good business."
The Motley Fool: Can you please tell us about As You Sow's 100 Most Overpaid CEOs list? How do you determine if a CEO is overpaid, and do you have any research showing how those companies have performed over time?
Rosanna Landis Weaver: [Note: This response is written by Rosanna Landis Weaver, lead author of the CEO Report.]
This is a project we began six years ago. One of our goals was to see how shareholders were using what was then a fairly new right: the opportunity to vote on CEO pay.
We've used a few methodologies but have settled on two ranking methodologies to identify overpaid CEOs. The first is the regression that computes excess CEO pay assuming relative to total shareholder return (TSR). HIP Investor runs this regression for us. The second-ranking identified the companies where the most shares were voted against the CEO pay package. These two rankings were weighted 2:1, with the regression analysis being the majority.
After we'd done a few years of these reports, we decided to check how our first list had performed subsequently. We found then that the 10 companies we identified as having the most overpaid CEOs, in aggregate, underperformed the S&P 500 index by an incredible 10.5 percentage points. Last year, these 10 firms again, in aggregate, dramatically underperformed the S&P 500 index, this time by an embarrassing 15.6 percentage points. In analyzing almost four years of returns for these 10 companies, we find that they lag the S&P 500 by 14.3 percentage points, posting an overall loss in value of over 11%.
The Motley Fool: Please tell us about your book, The Shareholder Action Guide. Why did you write it, and what is the main message you are trying to get across?
Behar: The main message of The Shareholder Action Guide is that the owners of all corporations, whether directly by holding stock or through a mutual fund, have the power to shape policy and practices to create a safe, just, and sustainable world for all. We have the power; we just need to realize it and learn how to use it. Through the book, I tell stories of shareholder advocates' work over the past 40 years and make the idea of being an empowered shareholder easy to understand.
The Motley Fool: Can you give us an example of a company that you admire for its strong ESG profile?
Behar: Certainly. The top tier includes Patagonia for being totally conscious on all aspects of their business; Interface Carpets (NASDAQ: TILE) has the Ray Anderson legacy of being transformational; CVS Health (NYSE: CVS) took a brave position on tobacco and has seen this transform all other aspects of their business -- although the recent opioid data is troubling; Tesla (NASDAQ: TSLA) for the product and innovations, although they could do a better job on social issues with employees and disclosure.
The Motley Fool: What is next for As You Sow?
Behar: The recent and ongoing destruction of federal government regulations has given much more importance to corporate policy. We are seeing companies realizing that these regulations were actually to their benefit. For example, 17 automakers sent a letter to the Trump administration asking that CAFE (Corporate Average Fuel Economy) standards not be removed, as it could destroy their businesses. They want to compete in China and the rest of the world and will simply not be able to, plus the abrupt change disrupted a decade of product planning. This is happening broadly, as climate change is disrupting supply chains, destroying infrastructure, and making "normal business" a thing of the past. Insurance companies no longer know what a 100-year flood means, as they are happening every three.
We see our role in helping bring companies together to self-regulate for their self-benefit. This is an ideal role for shareholder advocates, as we care deeply about the companies we own and know that they must be part of the solution.
The Motley Fool: Where do you see ESG investing going over the next 5 or 10 years?
Behar: In 10 years, I hope to see a total reversal of today, where "Value-Destruction Investing" is a small fringe group and ESG is the norm. Right now, according to US SIF, ESG is 25% of all invested dollars. Why would anyone invest in a company with substandard management that does not want to avoid risk and optimize for a safe, just, and sustainable world?
The Motley Fool: Is there anything that investors should be aware of as they start to learn more about ESG investing and as ESG investing grows in size? In other words, are there any pitfalls to ESG?
Behar: Be careful of ESG-washing. Many companies hold up their UN Sustainable Development Goal and say "We are all good," when in fact they are not. About a year ago I was at an event, and it was random seating for the opening dinner and they plunked me in a chair at a big round table of 10 people. I turned to my right and say hello to the CSR (corporate social responsibility) director of Monsanto (NYSE: MON), (we had just published a report called "Roundup Revealed" about the poisoning of the food system by pre-harvest glyphosate). I turn to my left, the senior VP from Philip Morris (NYSE: PM). The woman from Monsanto was so proud about how they had adopted SDG goal 2, Zero Hunger. The gentleman from Philip Morris was equality excited about their SDG commitments. What can I say? Monsanto more than any other company I can think of has toxified the food system and destroyed precious soil, abused seed sovereignty, and generally was as far from working on zero hunger as a company could get. The SDGs have no reporting structure for companies, they have no audits or any way to stop a company from claiming one as their own. We had a similar issue when Chevron gave themselves an award for SDG 13, Climate Action.
Also, be careful about self-dealing and conflict of interest. The whole business world was aflutter when BlackRock CEO Larry Fink called on company executives to think hard not just about how it could deliver financial performance but also how it could serve a social purpose. "Without a sense of purpose, no company, either public or private, can achieve its full potential," said Fink. Nice words, but actions speak louder. When year after year, BlackRock failed to vote on multiple climate resolutions with big-oil and coal-fired utilities asking for a plan to enable the planet and the company to survive, a clearer picture emerges -- one that will not be pleasant for the investors in Fink's index funds when the economy crumbles under the weight of climate catastrophe.
The Motley Fool: Is there anything else you'd like us to know about As You Sow?
Behar: Just one note about how incredible my team is. The staff, fellows, interns, advisors, and our board are dedicated to our vision and interact seamlessly with many other organizations of like-minded, optimistic people. It is truly inspiring. Every day, we take a hard look at the world, list the challenges, figure out our strategies, and know that together we can make a safe, just, and sustainable world for all.
Check out these additional interviews on ESG by The Motley Fool:
A Conversation on ESG Investing With JUST Capital CEO Martin Whittaker
Talking Stocks With Ben Allen, CEO of Parnassus Investments
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Rotonti owns shares of BlackRock and Procter & Gamble. Maria Gallagher has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Monster Beverage, Starbucks, and Tesla. The Motley Fool is short shares of Colgate-Palmolive and Procter & Gamble. The Motley Fool recommends CVS Health, Dunkin' Brands Group, and Interface, 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 involved genetically modified organisms (GMOs) that was filed with Abbott Laboratories (NYSE: ABT). We can power the planet without any destructive fossil fuels; we can grow enough food using regenerative agriculture without poisoning ourselves and our families with toxic pesticides; we do not need single-use plastics that are destroying the ocean and whose only real purpose is propping up an obsolete oil and gas industry; we can pay people a living wage; and we can operate businesses without slavery and forced labor. The Energy Program team is led by Liza Holman and focuses on climate change, hydraulic fracturing, fugitive methane, the conversion of utilities from coal to renewables, and now we are getting involved in the expansion of the petrochemical industry that is building new plants to process fracked gas into plastic feedstocks. | One involved genetically modified organisms (GMOs) that was filed with Abbott Laboratories (NYSE: ABT). First, a great deal of the AUM are held by companies like BlackRock (NYSE: BLK), Vanguard, and State Street (NYSE: STT) (call it $20 trillion), companies that basically talk a good game on sustainability but are deeply conflicted and so rarely vote. Behar: Similar to Fossil Free Funds but focused on companies that produce palm oil, the banks that fund them, and the companies with palm oil in their snack food products. | One involved genetically modified organisms (GMOs) that was filed with Abbott Laboratories (NYSE: ABT). Behar: Shareholders have legal standing with corporations in which they own shares and may bring a proposal to their company management about how to reduce risk and be a better company. Behar: Similar to Fossil Free Funds but focused on companies that produce palm oil, the banks that fund them, and the companies with palm oil in their snack food products. | One involved genetically modified organisms (GMOs) that was filed with Abbott Laboratories (NYSE: ABT). The Motley Fool: How do you share your work with the world? The Motley Fool: What is the business case for ESG? |
32949.0 | 2019-07-24 00:00:00 UTC | Noteworthy ETF Outflows: XLV, ABT, MDT, TMO | ABT | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlv-abt-mdt-tmo-2019-07-24 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.1 million dollar outflow -- that's a 2.0% decrease week over week (from 194,770,000 to 190,970,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 3.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.83. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 3.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.1 million dollar outflow -- that's a 2.0% decrease week over week (from 194,770,000 to 190,970,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 3.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.83. 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 XLV, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 3.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.1 million dollar outflow -- that's a 2.0% decrease week over week (from 194,770,000 to 190,970,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.83. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is off about 0.6%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 3.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $350.1 million dollar outflow -- that's a 2.0% decrease week over week (from 194,770,000 to 190,970,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $91.83. |
32950.0 | 2019-07-23 00:00:00 UTC | Health Care Sector Update for 07/23/2019: JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-07-23-2019%3A-jnj-pfe-abt-mrk-amgn-2019-07-23 | nan | nan | Top Health Care Stocks:
JNJ: +0.36%
PFE: +0.26%
ABT: -0.01%
MRK: +0.73%
AMGN: Flat
Health care giants were mixed in Tuesday's pre-bell trading.
Stocks moving on news include
(-) Viveve Medical (VIVE), was down 63% after reporting aftermarket Monday disappointing results for its Liberate-International trial for stress urinary incontinence (SUI) in women, unveiled plans to transition to a new US business model, and said it is considering a review of financial and strategic alternatives.
(-) Marinus Pharmaceuticals (MRNS) plunged 66% after saying Tuesday that results from part two of a phase 2 Magnolia clinical trial showed ganaxolone was "well-tolerated" but at 28 days, did not show much difference from the placebo.
(-) ACADIA Pharmaceuticals (ACAD) dropped 13% on Tuesday after reporting on Monday top-line results from its phase 3 ENHANCE study evaluating pimavanserin as an adjunctive treatment in adult schizophrenia patients did not achieve statistical significance on the primary endpoint, but showed a consistent trend in improvement of psychotic symptoms.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AMGN: Flat Health care giants were mixed in Tuesday's pre-bell trading. Stocks moving on news include (-) Viveve Medical (VIVE), was down 63% after reporting aftermarket Monday disappointing results for its Liberate-International trial for stress urinary incontinence (SUI) in women, unveiled plans to transition to a new US business model, and said it is considering a review of financial and strategic alternatives. (-) ACADIA Pharmaceuticals (ACAD) dropped 13% on Tuesday after reporting on Monday top-line results from its phase 3 ENHANCE study evaluating pimavanserin as an adjunctive treatment in adult schizophrenia patients did not achieve statistical significance on the primary endpoint, but showed a consistent trend in improvement of psychotic symptoms. | Top Health Care Stocks: AMGN: Flat Health care giants were mixed in Tuesday's pre-bell trading. (-) ACADIA Pharmaceuticals (ACAD) dropped 13% on Tuesday after reporting on Monday top-line results from its phase 3 ENHANCE study evaluating pimavanserin as an adjunctive treatment in adult schizophrenia patients did not achieve statistical significance on the primary endpoint, but showed a consistent trend in improvement of psychotic symptoms. | Stocks moving on news include (-) Viveve Medical (VIVE), was down 63% after reporting aftermarket Monday disappointing results for its Liberate-International trial for stress urinary incontinence (SUI) in women, unveiled plans to transition to a new US business model, and said it is considering a review of financial and strategic alternatives. (-) Marinus Pharmaceuticals (MRNS) plunged 66% after saying Tuesday that results from part two of a phase 2 Magnolia clinical trial showed ganaxolone was "well-tolerated" but at 28 days, did not show much difference from the placebo. (-) ACADIA Pharmaceuticals (ACAD) dropped 13% on Tuesday after reporting on Monday top-line results from its phase 3 ENHANCE study evaluating pimavanserin as an adjunctive treatment in adult schizophrenia patients did not achieve statistical significance on the primary endpoint, but showed a consistent trend in improvement of psychotic symptoms. | Top Health Care Stocks: AMGN: Flat Health care giants were mixed in Tuesday's pre-bell trading. Stocks moving on news include (-) Viveve Medical (VIVE), was down 63% after reporting aftermarket Monday disappointing results for its Liberate-International trial for stress urinary incontinence (SUI) in women, unveiled plans to transition to a new US business model, and said it is considering a review of financial and strategic alternatives. |
32951.0 | 2019-07-22 00:00:00 UTC | How to Invest in Medical Device Stocks | ABT | https://www.nasdaq.com/articles/how-to-invest-in-medical-device-stocks-2019-07-22 | nan | nan | As an investor, are you looking for ways to beat the market? If so, you might want to take a look at medical device stocks.
The Dow Jones U.S. Select Medical Equipment Index, which tracks the performance of U.S. medical device stocks, has delivered a total return more than 60% greater than the total returns of the Dow Jones Industrial Average and S&P 500 indexes over the last 10 years.
If you don't know how to get started investing in medical device stocks, we've got you covered. There are seven steps to follow to improve your chances of long-term success:
Develop a general understanding of the medical device industry.
Identify the key trends driving growth for medical device stocks.
Understand the risks associated with medical device stocks.
Know what to look for in medical device stocks.
Evaluate the top medical device stocks and exchange-traded funds (ETFs).
Invest in one or more medical device stocks.
Reevaluate your investment decisions periodically.
Here's what you need to know about each of these seven steps for investing in medical device stocks.
Image source: Getty Images.
1. Develop a general understanding of the medical device industry
Let's start with what a medical device is. The U.S. Food and Drug Administration (FDA) defines a medical device as any "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory" that is used in diagnosing, curing, preventing, or treating a disease.
There's one key caveat to that definition. A medical device doesn't work through chemical actions within a body. In other words, medical devices aren't drugs.
These medical devices can range from simple items such as bandages to complex technology including robotic surgical systems. The FDA regulates medical devices in the U.S. and categorizes the devices by three classes:
Data source: FDA.
Most Class I medical devices don't require FDA approval. Companies only have to register these devices with the FDA. Most Class II medical devices, however, require companies to file what's called a 510(k) premarket notification. The name, by the way, comes from the section of the U.S. Food, Drug, and Cosmetic Act, which addresses how medical devices can be approved by the FDA.
Class III medical devices involve the most extensive review process. Companies must submit a premarket approval (PMA) application to the FDA. This application has to include clinical data that demonstrate the safety and effectiveness of the medical device.
There are at least 32,000 medical device companies in the U.S. and Europe. Most of these companies are small with fewer than 50 employees. However, some of the medical device companies are large multibillion-dollar corporations.
2. Identify the key trends driving growth for medical device stocks
Zacks Equity Research projects that global sales for the medical industry will increase by around 5% annually with the total market reaching close to $800 billion by 2030. The global high-tech medical device market is projected to grow at a much faster rate. One analysis estimates a compound annual growth rate (CAGR) of 29.2% through 2026 for the advanced medical technology market. Key trends driving this growth include:
Aging demographics
Increase in cardiovascular and chronic diseases
Innovation
The aging of baby boomers in the U.S. is expected to fuel demand for healthcare products and services, including medical devices. But this aging trend isn't limited to the U.S. Other large countries across the world in Asia and Europe are also experiencing significant increases in the number of senior adults.
An overall increase in the prevalence of cardiovascular and chronic diseases worldwide is also expected. Although aging demographics play a role in this increase, other factors such as diet and physical inactivity contribute to the trend as well.
On a positive note, technology innovations should also generate growth in the medical device industry. There have been multiple major innovations introduced in the 21st century so far, including the use of artificial intelligence (AI), continuous glucose monitoring (CGM) systems, robotic surgical systems, and 3D bioprinting. The pace of innovation isn't likely to slow down in the future.
3. Understand the risks associated with medical device stocks
There's one potential downside to innovation: It's challenging for medical device makers to stay at the top with competitors launching new products. This competitive threat is perhaps the greatest risk that medical device stocks face because of the rapidly changing dynamics in the industry.
As discussed earlier, many medical devices require regulatory approval. The stocks of companies that make these devices could be negatively impacted if the FDA or regulatory agencies in other countries don't allow a product to be marketed.
Even if a medical device clears the regulatory hurdles, companies face product liability risks. Many medical devices have the potential to harm patients if the devices don't operate properly. There's also a growing threat of cybersecurity attacks on medical devices. Attempts to hack medical devices are increasing.
Many medical device stocks are also sensitive to trade tensions between the U.S. and other countries, particularly China. The imposition of tariffs or other restrictive trade policies is likely to cause the prices of these stocks to decline.
4. Know what to look for in medical device stocks
While medical devices can be complicated, the key things to look for in buying medical device stocks are straightforward. At the top of the list is the company's competitive advantage.
For a company that makes low-tech medical devices such as surgical supplies, it's important that it controls operating expenses effectively to be able to compete on price and still make a profit. Companies that make more advanced medical devices such as artificial heart valves need to have solid patent protection for their devices and demonstrate higher levels of safety and effectiveness than the competition.
Another critical thing to look for in medical device stocks is the opportunity for growth. Ways that companies can grow include geographic expansion, developing new types of devices, and achieving greater penetration in existing markets.
Also, pay attention to the financial position of medical device companies. As mentioned earlier, most medical device makers are small and many of them aren't profitable. This can present challenges for the companies in funding ongoing operations.
There are two primary ways that medical device companies can raise the capital needed: issuing new shares or borrowing. The main problem with issuing new shares is that it causes shareholder dilution -- more shares on the market reduces the value of existing shares. Borrowing has a drawback as well because the higher debt increases interest expenses and reduces the amount of money available to reinvest in the business.
With established medical device stocks, check out their revenue and earnings growth. Many large medical device makers also pay dividends, which can significantly boost total returns over the long run.
5. Evaluate the top medical device stocks and ETFs
Your next step is to evaluate the top medical device stocks that you're thinking about buying. Don't forget about ETFs that focus on the medical device industry. Below are five attractive medical device stocks that you might want to consider. Each of these stocks should have strong long-term growth prospects thanks to their innovative, market-leading medical devices.
Data sources: YCharts, company regulatory filings. N/A = Not Applicable. *ShockWave Medical revenue growth reflects only one year of quarterly revenue growth.
Abbott Laboratories
Abbott Laboratories ranks as one of the 10 biggest healthcare stocks on the market. The company doesn't just focus on medical devices. Abbott also develops and markets pharmaceutical, diagnostic, and nutritional products.
However, Abbott's largest revenue source is its business segment that markets cardiovascular and neuromodulation products. These products include electrophysiology, heart failure, rhythm management, and structural heart devices plus neuromodulation devices for managing chronic pain and movement disorders. In addition, Abbott markets the FreeStyle Libre continuous glucose monitoring (CGM) system.
Competitive advantages for Abbott include strong, long-term relationships with its customers and the financial resources to invest in research and development that leads to the launch of innovative new products. Several of Abbott's top products also have either technology or price advantages over rivals. For example, the company's FreeStyle Libre is the lowest-cost CGM system on the market.
Abbott's growth opportunities include launching new products as well as new versions of existing products. The company also should be able to increase sales in international markets in the future.
Abiomed
Abiomed makes medical devices for treating cardiovascular diseases. Over 100,000 of the company's Impella heart pumps have been implanted in patients.
The company has delivered impressive revenue and earnings growth over the last three years in large part because of its launches of new versions of its Impella heart pumps. Abiomed continues to pour more money into further innovations.
Abiomed pioneered the field of protecting and recovering heart muscle. The company's leadership in this arena is definitely a huge competitive advantage. So are the improved medical outcomes and reduction in hospital costs that its heart pumps provide.
The company's products are currently available only in the U.S., Germany, and Japan. Expansion into other geographical markets presents a tremendous growth opportunity for Abiomed. It should also be able to increase sales by greater penetration of the U.S. market. Abiomed estimates that the U.S. total addressable market represents a $6 billion opportunity with its current penetration rate of this market only 11%.
Align Technology
Align Technology is the leader in the clear orthodontic aligner market. Its Invisalign clear aligners have helped straighten teeth for more than 6.8 million patients. Align's intraoral scanners also help dentists and orthodontists create 3D images of teeth that can be used in developing treatment plans for its clear aligners.
It's achieved its strong growth in several ways. Align ramped up its marketing efforts to reach patients and dental professionals. It introduced new products, and the company expanded internationally.
Align faces more competition now than it has in the past. However, its large network of dental professionals trained on Invisalign and its brand recognition with consumers are key competitive advantages.
Currently, Align's market share of the total addressable market stands at 16%. Its share of the teen orthodontic market is less than 7%. This represents a significant growth opportunity for further penetrating the existing market. In addition, Align could expand this total addressable market by launching new products that can treat more serious cases of misalignment of teeth.
Intuitive Surgical
Intuitive Surgical dominates the robotic surgical systems market. Close to 5,000 of its da Vinci robotic surgical systems are installed worldwide.
The company also recently introduced a new robotic surgical system, ION. This new system enables minimally invasive lung biopsy even in airways that are difficult to reach with current biopsy methods that involve devices going through bronchial tubes.
There are other companies that market robotic surgical systems and even more on the way. But Intuitive Surgical's huge install base and long track record give it significant competitive advantages. Existing customers have a financial incentive to maximize the use of their da Vinci (or ION) systems. New prospects are likely to find Intuitive's years of experience in pioneering robotic surgical technology attractive.
Intuitive Surgical should be able to grow in multiple ways. The company is likely to continue to expand internationally. Long-term aging demographic trends should fuel increased volumes for the types of procedures for which its robotic surgical systems excel. Intuitive will also continue to seek to introduce new technology that enables the use of robotic surgical systems in additional types of procedures.
ShockWave Medical
ShockWave Medical is the newest and smallest of these medical device stocks. The company was founded in 2009, launched its first product in 2018, and began trading its stock as an IPO in March 2019.
The company focuses on intravascular lithotripsy (IVL) devices. Lithotripsy has been used for over three decades to break up kidney stones using ultrasound shock waves. ShockWave Medical is pioneering the use of this technology to remove plaque in calcified arteries.
ShockWave's IVL devices offer several benefits over traditional methods to treat clogged arteries. They're safer, simpler, and more cost-effective than current treatment options.
The company plans to grow by capturing a greater share of the peripheral artery disease market and by expanding into additional indications, including coronary artery disease and aortic stenosis (the narrowing of heart valves). ShockWave estimates that its total addressable market is around $6 billion annually.
However, unlike the other companies on the list, ShockWave isn't yet profitable. It's likely that it will have to raise additional cash down the road to fund its operations.
Exchange-traded funds
Another alternative for investing in medical device stocks is to buy ETFs. An exchange-traded fund is a marketable security that tracks a certain index or group of stocks based on a common characteristic or focus and trades on a major stock exchange. ETFs have some of the properties of mutual funds and some properties of common stock. There are currently two ETFs that focus on medical device stocks:
iShares U.S. Medical Devices ETF (NYSEMKT: IHI)
SPDR S&P Health Care Equipment ETF (NYSEMKT: XHE)
The primary advantage of buying a medical device ETF is that it provides diversification across a large number of medical device stocks. For example, the iShares ETF holds positions in nearly 60 individual stocks while the SPDR ETF owns nearly 70 individual stocks.
The main downside of investing in ETFs is that they charge annual management fees. The iShares ETF's annual fees are 0.43% of the amount invested while the SPDR ETF charges 0.35% annually.
6. Invest in one or more medical device stocks
After evaluating the top medical device stocks and/or ETFs, you should be ready to actually invest. Remember that diversification is always important in investing. Don't put too much of your money in one stock. Investors have different views about how much is too much to put in one stock, but a good rule of thumb is to invest no more than 5% of your total portfolio in a single stock.
Even if you buy a medical device ETF that owns lots of individual stocks, it's still smart to limit how much you invest. Again, investors will differ on how much they think is wise to invest in one industry. However, it's a good idea to avoid investing more than 10% to 20% in any one industry. Diversification helps insulate you from risks such as government regulatory changes that can impact an entire industry.
7. Reevaluate your investment decisions periodically
Things change. New competition can arise. Patents on key products can expire. Regulatory processes can be revised. Trade tensions can escalate.
It makes sense to reevaluate your investment decisions periodically. Looking at your investing assumptions on a quarterly basis should be frequent enough. Always keep a long-term perspective in mind, but keep in mind that the long-term prospects for a medical device stock could deteriorate due to significant changes for the company or the industry.
Start investing in medical device stocks
Now that you know the seven steps for how to invest in medical device stocks, it's time to get started. Note that while five individual stocks were mentioned earlier, there are many more stocks that you might want to consider. Although there certainly are risks associated with investing in medical stocks, there's also the potential to generate tremendous long-term gains.
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Keith Speights owns shares of Align Technology and Intuitive Surgical. The Motley Fool owns shares of and recommends Abiomed, Align Technology, and Intuitive Surgical. The Motley Fool recommends ShockWave Medical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The U.S. Food and Drug Administration (FDA) defines a medical device as any "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory" that is used in diagnosing, curing, preventing, or treating a disease. But this aging trend isn't limited to the U.S. Other large countries across the world in Asia and Europe are also experiencing significant increases in the number of senior adults. Competitive advantages for Abbott include strong, long-term relationships with its customers and the financial resources to invest in research and development that leads to the launch of innovative new products. | Identify the key trends driving growth for medical device stocks Zacks Equity Research projects that global sales for the medical industry will increase by around 5% annually with the total market reaching close to $800 billion by 2030. Key trends driving this growth include: Aging demographics Increase in cardiovascular and chronic diseases Innovation The aging of baby boomers in the U.S. is expected to fuel demand for healthcare products and services, including medical devices. Ways that companies can grow include geographic expansion, developing new types of devices, and achieving greater penetration in existing markets. | Know what to look for in medical device stocks While medical devices can be complicated, the key things to look for in buying medical device stocks are straightforward. There are currently two ETFs that focus on medical device stocks: iShares U.S. Medical Devices ETF (NYSEMKT: IHI) SPDR S&P Health Care Equipment ETF (NYSEMKT: XHE) The primary advantage of buying a medical device ETF is that it provides diversification across a large number of medical device stocks. Invest in one or more medical device stocks After evaluating the top medical device stocks and/or ETFs, you should be ready to actually invest. | If so, you might want to take a look at medical device stocks. Know what to look for in medical device stocks. Invest in one or more medical device stocks. |
32952.0 | 2019-07-19 00:00:00 UTC | ABT Crosses Above Average Analyst Target | ABT | https://www.nasdaq.com/articles/abt-crosses-above-average-analyst-target-2019-07-19 | nan | nan | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $86.58, changing hands for $87.76/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 $77.00. And then on the other side of the spectrum one analyst has a target as high as $96.00. The standard deviation is $6.126.
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 $86.58/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $86.58 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:
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.
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. | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $86.58, changing hands for $87.76/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 $86.58/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $86.58 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 $86.58, changing hands for $87.76/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 $86.58/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $86.58 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 $86.58/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $86.58 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 $86.58, changing hands for $87.76/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 $86.58, changing hands for $87.76/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 $86.58/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $86.58 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? |
32953.0 | 2019-07-19 00:00:00 UTC | Investing in Chicago Stocks | ABT | https://www.nasdaq.com/articles/investing-in-chicago-stocks-2019-07-19 | nan | nan | From its earliest days of incorporation back in the late 1830s, Chicago has been all about trade. The city cultivated that early trade focus and used it to become one of the most diverse business climates in the United States. If you're considering investing in Chicago stocks -- the publicly traded stocks of the businesses that have their headquarters in the Chicago metro area -- it's important to remember that.
Situated where the Chicago River meets Lake Michigan, Chicago's early trade centered around agriculture and transportation, taking the crops and other farm products produced in the region and sending them around the country and around the world. The economic hub eventually attracted businesses and industries of all kinds looking to take advantage of what the heart of America had to offer. For those who didn't find either U.S. coast conducive to their business efforts, the "Second City" became a natural alternative to set up shop.
Now the third largest city in the United States by population, Chicago has long served as a center of commerce for several Midwestern states, as well as numerous global businesses. Tourists from around the world visit the city looking for food, fun, and culture, while investors come looking for solid prospects for making money from companies big and small.
A view of the Chicago skyline from Lake Michigan. Image source: Getty Images.
When considering making investments in companies based in Chicago, the key is having a strong grasp of the basics. Let's take a look at some essential concepts everyone should know before investing in Chicago stocks:
What are Chicago stocks?
What are the largest Chicago stocks?
Who should be interested in investing in Chicago stocks?
How should you evaluate Chicago stocks?
What should investors in Chicago stocks be looking for?
What are the risks facing Chicago stocks?
What companies might come to Chicago?
Is now the time to buy Chicago stocks?
What are Chicago stocks?
Chicago's metro area is home to the headquarters of companies that are key players in multiple sectors. Companies with headquarters in the area are "Chicago stocks." Represented industries include auto manufacturing, biotech, business services, energy, fabricated metals, financial tech, food processing, freight, health services, information technology, manufacturing, medical technology, and plastics and chemicals development.
Agriculture was at the heart of Chicago's initial growth, and that can be seen in some of its biggest businesses today. When looking at yearly revenue, Archer Daniels Midland is the largest of several Chicago companies with a direct connection to agriculture. But ADM's diverse operations are really an example of the city as a whole.
The company's biggest role involves buying and transporting farmed crops from the region, as well as from around the world, and then turning them into a slew of products for both human and animal use. But ADM is also a major energy producer through its heavy involvement in the processing of some of those crops into ethanol. The company also makes a range of chemicals and oils for industrial use, including ingredients that go into personal-care products like soaps and skin creams. It even runs various commodity exchanges and provides crop insurance options for the farm producers it works with.
Robust commerce gave birth to the Chicago Mercantile Exchange, which was established in 1898 (initially to organize trade in butter and eggs) and eventually grew into a clearinghouse for the exchange of numerous commodities. Basically, the exchange offered a way for companies that needed to buy large quantities of wheat, corn, soybeans, various meat products, or hundreds of other tradeable goods an easier way to centralize and organize the purchases and the bidding on the materials coming in from thousands of producers. It also gave the producers (farmers) better access to companies and traders that wanted what they produced and a quick, efficient way to get it to them.
In the 1960s, the exchange added futures trading to its list of services. Traders in commodities, which often have volatile prices, will use futures trading to lock in prices for what they're going to buy and sell, well before the commodity is actually produced to better manage the risk from the volatility. A futures contract provides the farmer with predictable compensation for the crop, and the contract buyer ensures they will get enough materials to create their product at a known price they can build into their accounting.
In 2007, The Mercantile Exchange merged with the Chicago Board of Trade to form CME Group, one of the largest marketplaces for buying and selling shares, options, and futures related to stocks, bonds, and commodities in the world. It's similar to the NYSE and NASDAQ stock exchanges, but specializes in futures of all sorts, and even started trading cryptocurrencies in 2017. On average, CME Group handles about 3 billion contracts worth approximately $1 quadrillion annually (that total is equal to 15 times the gross domestic product (GDP) of the world).
The city's early investment in the growth of the Mercantile Exchange led to Chicago's dominating futures trading and derivatives. With a derivative investment, the investor doesn't own the underlying asset. Instead, he or she is betting on whether its value will go up or down.
The city's derivatives exchange community, which started with commodity futures trading at the Chicago Board of Trade in 1848, established it as a global financial center. Chicago now handles more than half of exchange-based derivatives trading in North America and about 20% of the world's derivatives trading market. That global share is twice as big as New York City's 10% share and about equal to all European exchanges combined.
What are the largest Chicago stocks?
Chicago may have the nickname Second City but it's home to several first-tier companies with international reach. There are different ways to judge the size of a company. Here are the top 10 publicly traded companies by revenue (another word for sales) in their respective fiscal 2018s that call the Chicago metro area home.
*Market cap as of June 29, 2019. **Sum of the latest four reported quarters. Data sources: Nasdaq.com and Google Finance.
The list changes a bit when you switch to a different metric geared toward stock trading. Here are the top 10 publicly traded companies by market cap (multiplying the number of tradable shares by the share price) that call the Chicago metro area home.
*Sum of the latest four reported quarters. **Market cap as of June 29, 2019. Data sources: Nasdaq.com and Google Finance.
Who should be interested in investing in Chicago stocks?
Billionaire Warren Buffett has always advocated that investors should stick to areas they know -- their "circle of competence" -- when deciding what companies to invest in. The reason is simple: The more you know about a company, the better your position to judge its prospects.
If the company is nearby, you're more likely to hear whether it's hiring or looking for new office space, for example, perhaps indicating business is doing well. If you use its products or services regularly, you're better able to judge whether it's doing a good job providing a product you like or services you need.
That's not to say you should move to Chicago so you can be a good investor in Chicago stocks. But it is to say that there are a lot of Chicago-based companies that make products you know well and use regularly, wherever you may live.
What are the odds that you or someone you know has visited a McDonald's restaurant in the past month? Did you take a flight somewhere recently? There's a very good chance that it was on a Boeing jet.
Have you used canola oil, cocoa powder, or wheat flour in your cooking? It's likely ADM had a hand in getting that product to your kitchen. Have an infant who gets Similac infant formula or a grandparent who's supplementing their diet with Ensure? Abbott Labs produced it.
Have you dipped an Oreo cookie in some milk as an afternoon snack or had a Ritz cracker with a smear of peanut butter? Mondelez made that possible. These are all Chicago-based companies.
Another basic rule of investing is to diversify. Owning stocks of companies of various types, sizes, and representing different market sectors insulates you better against market downturns, as not all companies go down for the same reasons. Investing in the wide range of Chicago-based stocks allows you to diversify.
If you were to put together a large-cap Chicago portfolio, it wouldn't represent a perfect cross section of the national economy (it's underweighted for tech and energy stocks and overweighted for financial services), but it would come pretty close. Spreading your investment risk is smart investing.
How should you evaluate Chicago stocks?
Evaluating Chicago stocks starts with following the same guidelines one would follow when considering any stock. You should be able to assess the financial position of a company and see what investors think about the stock and its potential by looking at a company's balance sheet and some common metrics like:
Trailing price-to-earnings ratio (P/E): This metric analyzes a company's earnings in relation to its share price. The earnings multiple (as it's also called) values a stock to see how cheap or expensive it's trading in relation to the earnings the company has generated over the trailing 12 months. The lower the ratio, the cheaper the stock. The average P/E for companies in the S&P 500 at the time of this writing is about 22. This is one of the most widely used relative valuation metrics and serves as an easy reference point for comparison. (Forward P/E, using estimated earnings, can also be looked at.)
Price-to-earnings-growth ratio (PEG): Investors often buy stocks based on the growth opportunities they see for the company. The PEG ratio measures a company's current earnings in relation to its price but also takes into account a company's growth potential. PEG is calculated by dividing the P/E ratio by the estimated earnings growth rate, usually looking out five years and estimated by analysts that follow the company. A PEG ratio below 1 means a stock is trading below its expected growth rate, which would imply it's undervalued. A PEG ratio above 2 would signal the stock price has exceeded the future growth rate and might be overvalued. Factors like the age of the company, the nature of its business, and how the estimates were determined can affect the accuracy of this figure as a predictor of a fair stock price, so be careful how you use it.
Profit margin: The profit margin is the money left over after paying all of the costs of running the business. To calculate it, divide net income by revenue. Generally, the higher the margin, the more profitable the company. Companies that increase their profit margin are controlling costs, either by squeezing efficiencies out of the business, adding new high-profit business segments, or cutting out unprofitable ventures.
Price-to-sales ratio (P/S): The price-to-sales ratio works better than P/E for early-stage companies that have yet to report earnings. To calculate P/S, simply divide a company's market capitalization -- the total shares outstanding times its share price -- by its revenue. For very-early-stage companies, you can use future expected sales in the calculation.
Using these metrics on Chicago stock McDonald's in June 2019, we find the company trades at a trailing P/E ratio of 27.48 (and forward P/E of 24.30), which are both just a bit higher than the S&P 500 average. Its PEG ratio is 2.82, which suggests the stock's price right now is overvalued compared to its growth projections. Its net profit margin at the end of April was 28.2%, which suggests a profitable company doing well.
Because McDonald's is a veteran company that has a long track record of earnings, its P/S ratio doesn't really provide a meaningful figure for evaluation. Taking the other metrics into account, though, the data suggests that McDonald's is doing well at the moment but may be priced a bit high compared to growth projections, and is therefore not a bargain investment.
What should investors in Chicago stocks be looking for?
Ask a stock analyst to identify what an investor should look for when considering a business in which to buy stock and a few things will jump right out:
Competitive advantage: A competitive advantage keeps a business ahead of the competition, and Chicago businesses have plenty. It could be the patents they hold (AbbVie, Motorola Solutions), the high cost of switching to a competitor (Northern Trust), complicated regulations that limit access to the market (Boeing, Exelon), or cost efficiencies (Allstate) that these companies know how to take advantage of. These companies have effectively created a moat around their financial fortresses that allow them to generate durable growth.
Cash aplenty: Cash is what makes a company work. It pays the bills and finances new growth projects. Companies with high debt and not much cash on the balance sheet or little cash flowing in are potential trouble. Free cash flow -- what's left over after funding operations and growth -- can be used to pay for share repurchases and dividends that make investors happy.
Strong leadership: Investors should like to see managers who invest right alongside them in the companies they operate. You can find more details on management's investment in their companies from a company's annual 10-K report. Company leaders with years of relevant experience also have been shown to make a difference. And managers who can work well with business partners add something extra to the equation.
Companies that fit two of the three factors could be solid investments. Ones that nail all three increase the chances that you've found a great investment.
A view of the Chicago skyline from the Chicago River. Image Source: Getty Images.
What are the risks facing Chicago stocks?
There are always risks to factor into your investment decision. These can include:
Management risks: This has to do with a company's day-to-day operations. Discontinuing a key product line, handling production costs poorly, or making an investment decision that affects a company's ability to repay its debts are all examples of how management decisions can affect a stock.
Sociopolitical risks: Political and/or social events like a terrorist attack, war, trade war, or an election can, directly and indirectly, affect financial markets and investor attitudes and outlooks.
Currency risk: Changes in the exchange rate between two relevant currencies can affect a company's bottom line, especially if it has a significant international presence and lots of foreign sales.
Interest-rate risk: Many companies finance their operations through short-term loans and the sale of bonds. A change in rates can make it more expensive (or cheaper) to operate and impact profits.
Inflation risk: Increases in the prices of goods and services can force a company to charge more to recoup the expense. Increase the price too much and you risk alienating customers to the point that they go elsewhere.
How a company manages these risks can make all the difference. For example, Chicago stock Caterpillar is one of the largest construction and mining equipment manufacturers in the world, with almost $55 billion in revenue over the past year. In the past 18 months, the company has had to deal with sociopolitical risks out of its control related to the U.S.-China trade war and increased tariffs on materials like steel. Because it uses so much steel, Caterpillar has had to make significant (and sometimes costly) adjustments to where it buys its steel to address the long-term risk.
Caterpillar has also seen its earnings affected by changes in currency value in countries where it does regular business. Economic slowdowns in China and Europe have dampened the value of their currencies. If the U.S. dollar's value strengthens, the revenue coming in from foreign clients loses some of its value.
The steady rise in interest rates this past year has had some effect on the housing market and business expansion plans, lowering demand for Caterpillar construction equipment. Management said it would be increasing prices 1% to 4% on equipment it sells in 2019 to account for some of these issues. Management projects that the strengthening U.S. economy and hoped-for interest-rate cuts can offset the price hikes without creating a drop in demand.
When it comes to Chicago stocks, there are risks that this particular city forces on a company doing business there. While Chicago's overall cost of living is about 1% below the national average -- which can make it attractive to a business with lots of locally based employees -- Forbes ranks Chicago 140th among 200 U.S. cities for the cost of doing business, indicating that factors like taxes, regulations, rent and leases, etc., can make it somewhat more expensive to operate a business there. Median household income for the metro area is $68,604, which puts it above the national average, and this implies that employees living and working there might expect higher-than-average wages.
What companies might come to Chicago?
The City of Broad Shoulders is centrally located between European and Asian markets and within the North American Free Trade zone (and its potential successor, the United States-Mexico-Canada Agreement zone). The metro area's economic output -- its gross domestic product -- is larger than that of many countries. Chicago's GDP of $609 billion would have ranked it 21st in the world, just behind No. 20 Saudi Arabia and ahead of No. 22 Argentina, according to a 2016 World Bank report.
Chicago's industrial mix is a close match for the nation's, with no single industry employing more than 12% of the workforce (just over 4 million people). The city is home to more than 400 major corporate headquarters, including 36 in the Fortune 500. These factors are part of why Chicago was one of four U.S. cities to be named on a list of "Cities of Opportunity" by PricewaterhouseCoopers in 2018. It received the designation for fostering economic innovation and "common wellbeing."
Like any large city, Chicago has its issues to wrestle with, and they can have some small effect on the companies that are based there. Issues like racial segregation, the disappearance of industrial jobs, and rising city/county budgets are all stressors that Chicago's metro area is working to address. It's important that the city does so if it wants to continue to attract new investment and keep the companies it has.
Chicago is making the effort to attract more tech companies, an underrepresented sector in the area. The city listed about 14,000 tech businesses and 341,000 tech workers in 2017, and it's working to grow that representation. As Silicon Valley becomes more expensive to operate in, cities with a lower cost of living, like Chicago, offer an alternative location for tech companies to set up shop that will attract the younger, tech-savvy workforce those companies want as employees.
Studies have shown that people under 35 with expertise in IT (information technology) prefer the slew of opportunities and attractions that cities feature and appreciate things like public transportation and a family-friendly atmosphere. Chicago offers that.
Among the better-known tech companies basing their headquarters in Chicago are the nation's leading online and mobile food-ordering and delivery marketplace Grubhub, e-commerce marketplace Groupon, public relations and earned media software company Cision, personalized clothing service Trunk Club, privately held parking-reservation service and app SpotHero, and privately held financial tech company Avant. The city announced in November 2018 that 16 local technology companies had added or would be be adding a combined 2,000 jobs in Chicago in 2018 and 2019. Look for more tech to set up shop in the Chicago metro area.
Is now the time to buy Chicago stocks?
If you look at some of the top stocks based in Chicago on an individual basis in the summer of 2019, buying them right now is admittedly a mixed bag. Boeing stock is down over serious issues with its 737 MAX plane; Kraft Heinz stock is down on issues including a writedown, an SEC probe and a slashed dividend; McDonald's stock is up in recent years because of some smart changes in strategy; AbbVie stock is down because it just offered to buy Allergan in a $63 billion deal and take on a lot of additional debt to do it; and United Airlines stock has suffered of late over economic issues with China.
If you already own shares of Boeing, Kraft Heinz, AbbVie, or United, you're probably not too pleased at the moment. If you're thinking of buying these stocks, the decreased price could present a good opportunity to get in.
The actual act of buying Chicago stocks can be as simple as setting up a brokerage account, either in-person or online, determining which stocks you want to purchase (an admittedly harder task), and placing your buy order. When determining the Chicago stocks to buy, the best plan really boils down to buying great companies and holding them for the long term. Patience plays a big role. The best investments don't need to be checked daily because they're solid companies with competitive advantages and strong leadership.
Chicago has created a unique identity for itself as a globally diverse economic powerhouse where top companies can operate and, in many cases, thrive. The populace has a Midwestern "can-do" attitude and they've built their city on a strong foundation and used that to fuel growth for the companies that have chosen Chicago as their home.
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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 2007, The Mercantile Exchange merged with the Chicago Board of Trade to form CME Group, one of the largest marketplaces for buying and selling shares, options, and futures related to stocks, bonds, and commodities in the world. If you were to put together a large-cap Chicago portfolio, it wouldn't represent a perfect cross section of the national economy (it's underweighted for tech and energy stocks and overweighted for financial services), but it would come pretty close. Studies have shown that people under 35 with expertise in IT (information technology) prefer the slew of opportunities and attractions that cities feature and appreciate things like public transportation and a family-friendly atmosphere. | Situated where the Chicago River meets Lake Michigan, Chicago's early trade centered around agriculture and transportation, taking the crops and other farm products produced in the region and sending them around the country and around the world. Represented industries include auto manufacturing, biotech, business services, energy, fabricated metals, financial tech, food processing, freight, health services, information technology, manufacturing, medical technology, and plastics and chemicals development. In 2007, The Mercantile Exchange merged with the Chicago Board of Trade to form CME Group, one of the largest marketplaces for buying and selling shares, options, and futures related to stocks, bonds, and commodities in the world. | If you're considering investing in Chicago stocks -- the publicly traded stocks of the businesses that have their headquarters in the Chicago metro area -- it's important to remember that. You should be able to assess the financial position of a company and see what investors think about the stock and its potential by looking at a company's balance sheet and some common metrics like: Trailing price-to-earnings ratio (P/E): This metric analyzes a company's earnings in relation to its share price. Boeing stock is down over serious issues with its 737 MAX plane; Kraft Heinz stock is down on issues including a writedown, an SEC probe and a slashed dividend; McDonald's stock is up in recent years because of some smart changes in strategy; AbbVie stock is down because it just offered to buy Allergan in a $63 billion deal and take on a lot of additional debt to do it; and United Airlines stock has suffered of late over economic issues with China. | What companies might come to Chicago? When it comes to Chicago stocks, there are risks that this particular city forces on a company doing business there. |
32954.0 | 2019-07-17 00:00:00 UTC | Wednesday Sector Leaders: Utilities, Healthcare | ABT | https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-utilities-healthcare-2019-07-17 | nan | nan | In afternoon trading on Wednesday, Utilities stocks are the best performing sector, higher by 0.6%. Within that group, NRG Energy Inc (Symbol: NRG) and AES Corp. (Symbol: AES) are two large stocks leading the way, showing a gain of 2.4% and 2.3%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.6% on the day, and up 16.72% year-to-date. NRG Energy Inc, meanwhile, is down 11.73% year-to-date, and AES Corp. is up 24.16% year-to-date. Combined, NRG and AES make up approximately 2.5% of the underlying holdings of XLU.
The next best performing sector is the Healthcare sector, not showing much of a loss. Among large Healthcare stocks, Abbott Laboratories (Symbol: ABT) and ABIOMED, Inc. (Symbol: ABMD) are the most notable, showing a gain of 3.3% and 2.7%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 0.3% in midday trading, and up 7.71% on a year-to-date basis. Abbott Laboratories, meanwhile, is up 20.14% year-to-date, and ABIOMED, Inc., is down 19.86% year-to-date. Combined, ABT and ABMD make up approximately 4.7% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Wednesday. As you can see, one sector is up on the day, while seven sectors are down.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Combined, ABT and ABMD make up approximately 4.7% of the underlying holdings of XLV. Among large Healthcare stocks, Abbott Laboratories (Symbol: ABT) and ABIOMED, Inc. (Symbol: ABMD) are the most notable, showing a gain of 3.3% and 2.7%, respectively. In afternoon trading on Wednesday, Utilities stocks are the best performing sector, higher by 0.6%. | Among large Healthcare stocks, Abbott Laboratories (Symbol: ABT) and ABIOMED, Inc. (Symbol: ABMD) are the most notable, showing a gain of 3.3% and 2.7%, respectively. Combined, ABT and ABMD make up approximately 4.7% of the underlying holdings of XLV. Within that group, NRG Energy Inc (Symbol: NRG) and AES Corp. (Symbol: AES) are two large stocks leading the way, showing a gain of 2.4% and 2.3%, respectively. | Among large Healthcare stocks, Abbott Laboratories (Symbol: ABT) and ABIOMED, Inc. (Symbol: ABMD) are the most notable, showing a gain of 3.3% and 2.7%, respectively. Combined, ABT and ABMD make up approximately 4.7% of the underlying holdings of XLV. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.6% on the day, and up 16.72% year-to-date. | Among large Healthcare stocks, Abbott Laboratories (Symbol: ABT) and ABIOMED, Inc. (Symbol: ABMD) are the most notable, showing a gain of 3.3% and 2.7%, respectively. Combined, ABT and ABMD make up approximately 4.7% of the underlying holdings of XLV. In afternoon trading on Wednesday, Utilities stocks are the best performing sector, higher by 0.6%. |
32955.0 | 2019-07-17 00:00:00 UTC | Abbott Laboratories (ABT) Q2 2019 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q2-2019-earnings-call-transcript-2019-07-17 | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q2 2019 Earnings Call
Jul 17, 2019, 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 Second Quarter 2019 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.
Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions
Good morning, and thank you for joining us. With me today are Miles White, Chairman of the Board and Chief Executive Officer; Robert Ford, President and Chief Operating Officer, and Brian Yoor, Executive Vice President, Finance and Chief Financial Officer. Miles will provide opening remarks and Brian will discuss our performance and outlook in more detail. 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 2019. Abbott cautions that these forward-looking statements are subject to the risk and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A Risk Factors to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended December 31, 2018.
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 second quarter financial results and guidance 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 is defined in our earnings news release issued earlier today.
With that, I will now turn the call over to Miles.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Thank you, Scott. Good morning. Today we reported results of another strong quarter with ongoing earnings per share of $0.82, above our previous guidance range and reflecting double-digit growth. Sales increased 7.5% on an organic basis in the quarter with all four businesses exceeding expectations. I'm particularly pleased with our ability to consistently achieve these types of strong results. Over the past two years, our quarterly organic sales growth has averaged more than 7%, and importantly, we're well positioned with our portfolio, and new product pipeline for this type of strong growth going forward.
Based on our performance and momentum in the first half of the year, we're raising our full year outlook, and we now forecast adjusted earnings per share of $3.21 to $3.27, reflecting nearly 13% growth at the midpoint on a reported basis and even faster growth, when excluding the impact of foreign exchange. While we achieved broad-based growth across several areas of our portfolio, I'd like to highlight just a few areas where we continue to perform exceptionally well.
I'll start our Medical Devices business with FreeStyle Libre, where we achieved sales of $430 million and continued to add significantly to our global user base as reflected by organic sales growth of more than 70% in the quarter. We also continue to make excellent progress, expanding reimbursement and access into US, where Libre is now reimbursed for approximately 75% of people with private pharmacy benefit insurance. Libre offers a unique value proposition and that's by design. It provides great clinical benefits and we priced it to ensure affordability -- there is recognized that value -- that recognize that value and are increasingly providing reimbursement coverage for Libre, which helps lower out-of-pocket cost even further for patients.
As I've mentioned before, we've been investing significantly to expand our manufacturing capacity for Libre to meet demand. The first wave of that expansion will come on line in the next couple of months, followed by cadence of incremental capacity after that. There is a massive population that needs help managing their diabetes and our intent is to make Libre broadly accessible to all of them.
Turning to our Structural Heart business, where we achieved mid teens growth. This was led by MitraClip, our market-leading device for the treatment of mitral regurgitation, which had global sales growth of more than 30% in the quarter. And MitraClip grew more than 50% in the US, where we recently received a new expanded indication.
Earlier this week, we announced US approval of our fourth generation MitraClip device, which builds on this leading platform with enhanced features and new clip sizes, providing physicians further options when treating [Technical Issues] disease.
We've been building our position in Structural Heart for more than a decade and have a deep pipeline of technologies and development, including Tendyne and Cephea, which are minimally invasive devices to replace faulty mitral heart valves. TriClip, a first of its kind device for the repair of a leaky tricuspid heart valve and AMPLATZER Amulet, our left atrial appendage device to reduce the risk of stroke in patients with atrial fibrillation.
With the rapid adoption of MitraClip in a highly under-penetrated market as well as a pipeline of technologies, targeting new growth areas that will launch over the next several years, our Structural Heart business is well positioned for strong, steady growth for years to come.
Next, Diagnostics, where we remain focused on the global rollout of our Alinity suite of instruments for every area of diagnostics in which we compete. We're making great progress with our systems for immunoassay and clinical chemistry testing in Europe. With the launch of Alinity, it's helping to drive double-digit growth in our international Core Laboratory business.
We're now also in the early stages of launching Alinity instruments for hematology and molecular testing in Europe. In the US, we're making steady progress, achieving regulatory approvals for our broad menu of Core Laboratory tests. And just last week, we announced FDA approval of Alinity-S for blood and plasma screening.
Abbott screens the majority of the world's blood supply, and this system is designed to be faster and more efficient within a smaller amount of space, while maintaining the highest levels of accuracy. The global rollout of Alinity is an ambitious undertaking that positions our Diagnostics business for sustainable strong growth going forward.
So in summary, all four of our businesses exceeded expectations in the quarter. Our growth is strong. It's accelerating and it's sustainable. We've strategically positioned ourselves in some of the most attractive areas of healthcare, and our key growth platforms are delivering impressive results. And today, we're adding to what was already a strong growth forecast by raising our outlook for the year.
I'll now turn the call over to Brian to discuss our results and outlook for the year in more detail. Brian?
Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer
Okay. Thanks, Miles. As Scott mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis, which is consistent with our previous guidance.
Turning to our results. Sales for the second quarter increased 7.5%. Sales of Medical Devices grew 10.5%, with double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care. In Nutrition, sales increased 5.1%, led by strong growth in Adult Nutrition. Sales in Established Pharmaceuticals grew 6.1%, with 8% growth in our Key Emerging Markets. And sales increased 6.2% in Diagnostics, led by high single-digit growth in Core Laboratory Diagnostics and sequential improvements in Point of Care and Rapid Diagnostics.
Exchange had an unfavorable impact on total Abbott sales of 4.6%, which was approximately 0.5% more unfavorable to our expectations at the time of ourearnings callin April.
Regarding other aspects of the P&L, the adjusted gross margin ratio was 59.4% of sales, adjusted R&D investment was 7.1% of sales and adjusted SG&A expense was 29.9% of sales. The second quarter adjusted tax rate was 13.7%, lower than our previous full year guidance of around 15% due entirely to continued implementation of and adaptation to the US tax reform regulations. Our second quarter tax rate reflects the aggregate adjustment to align our tax rate for the first half of 2019 with our revised full year effective tax rate forecast of 14.5%.
Turning to our outlook for the full year. We now forecast organic sales growth of 7% to 8%. Based on current rates, we would expect exchange to have a negative impact of approximately 3% on our full year reported sales, which is in line with the expected impact we had at the beginning of the year.
We forecast an adjusted gross margin ratio of a little less than 59.5% of sales for the full year. This is modestly lower than our prior forecast and reflects the temporary effect of investments to support the unprecedented ramp-up and market adoption of our Alinity diagnostic system as well as investments in Libre capacity expansion.
We forecast adjusted R&D investment of somewhat less than 7.5% of sales and adjusted SG&A expense of around 29.5% of sales. And as I mentioned previously, we forecast an adjusted tax rate of around 14.5% for the full year 2019.
Turning to our outlook for the third quarter. We forecast adjusted EPS of $0.83 to $0.85, which reflects strong double-digit growth. We forecast organic sales growth of 7% to 8% and at current rates, we would expect exchange to have a negative impact of around 1.5% on our third quarter reported sales.
We forecast an adjusted gross margin ratio of a little less than 59.5% of sales, adjusted R&D investment of around 7.5% of sales and adjusted SG&A expense of around 29% of sales.
Before we open the call for questions, I'll now provide a quick overview of our third quarter organic sales growth outlook by business. For Established Pharmaceuticals, we forecast mid-to-high single-digit growth. In Nutrition, we forecast mid-single-digit growth. In Diagnostics, we forecast Abbott's legacy Diagnostics businesses, which is comprised of Core Laboratory, Molecular and Point of Care to grow high-single digits. And in Rapid Diagnostics, we forecast low-to-mid single-digit growth. And finally, in Medical Devices, we forecast high-single-digit growth, which reflects continued double-digit growth in several areas of this business.
With that, we'll now open the call up for questions.
Questions and Answers:
Operator
[Operator Instructions] And our first question comes from David Lewis from Morgan Stanley. Your line is open.
David Lewis -- Morgan Stanley -- Analyst
Good morning. Congrats on the quarter and the guide. And Miles I had two questions for you. The first on diabetes, and the second on the outlook for the year. So just starting with diabetes. ADA, Miles I should add some concerns around Libre 2, iCGM designation, should investors read anything into the lack of approval and what's your confidence level on iCGM approval and what does the trend in BGM this particular quarter tell us about the Libre adoption?
Miles D. White -- Chairman of the Board and Chief Executive Officer
I'm going to give you a couple of answers here. One, no, we shouldn't have concern. We're confident that we're going to have the approval that we expect and what we applied for. So I know that there is -- there is always uncertainty until the day comes and the questions from investors that now we're confident. And actually, let me ask, our CF -- COO to give you a little bit of more background and detail on that.
Robert B. Ford -- President and Chief Operating Officer
Yeah, I mean we -- Dave, we filed this in iCGM. We made that comment in our last earnings. And when we filed as an iCGM, the standards and special controls for the iCGM, they are very clear, and they're very transparent as it relates to accuracy, thresholds, alarms, sensor shut-offs, etc. So, and we wouldn't have filed an iCGM if we felt that we were going to fall short of those special controls. In fact, we were encouraged by the agency to file Libre 2 as an iCGM. So I know people want to speculate and kind of tie it to the exact date. We're not behind our timelines. So we're not going to expect there an exact date here, but we expect it relatively soon.
David Lewis -- Morgan Stanley -- Analyst
Okay. Very, very helpful. And then the second thing, Miles for you, just guidance for the year. So, the guidance rate suggests you obviously see 2019 as a year of acceleration over '18. I'm just sort of curious, what gets better into the second half of the year and if you think about the middle part of the range versus the upper part of the range, and what are the key success factors into the back half that gets you to that top end of the range?Thanks so much.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Well, I think first of all about the guidance. We are seeing strength in our growth drivers. We've got a lot of launches going on in all segments across the board. We're going to be opening up the capacity in new manufacturing and so forth to supplement Libre. The Alinity systems are obviously successfully rolling out. MitraClip is picking up momentum. A lot of the businesses that I've been sort of chronically dissatisfied with from time-to-time are also on sequential improvement, which I'm happy to see. I'm never quite satisfied with that, but the pharmaceutical business, the cardiac rhythm management business, the stent business, neuromodulation, the Point of Care Diagnostics business, the Rapid Diagnostics business, which is primarily the Alere acquisition.
They are also all showing sequential sales growth improvement, which is what we've planned, what we've worked for etc. So based on the strength across the board of all of that, we felt comfortable that frankly our growth rate on the topline going forward, we're sort of seeing that 7% to 8% range and I challenged the team, I said this is temporary for the quarter, for the half year thing or do we feel fairly sustainable about this and we feel sustainable about it.
So I think that's all good. And then with record earnings, there is a step-up in earnings here in the second half earnings growth rate and it's just an unusual quarter. I mean we always target as you know at the beginning of the year double-digit growth. We always had kind of an aggressive or at least ambitious target for ourselves going into the next year. That's no different now. So in the second half, our earnings remained strong.
I don't know -- I'm kind of -- I feel pretty good if we do the numbers we say, and we never fall short. So it's 18% on the bottom line right now. So, you're asking me about what do we do to get the high end of the range. Something [Indecipherable] isn't that good enough. It's a pretty healthy growth rate. So 7% to 8% on the top and high-double-digit teens on the bottom, I think is -- is probably best in class in the peer group that we're compared to and several different peer groups that we're compared to.
And quite frankly with the breadth of products launching and roll-outs, and obviously there's always challenges somewhere in the world and in some way, but we seem to be doing pretty well across the board here in all areas. And I think that's a pretty good investment.
David Lewis -- Morgan Stanley -- Analyst
Great. Well said. Thanks so much. Congrats again.
Operator
Thank you. Our next question comes from Robbie Marcus from JPMorgan. Your line is open.
Robbie Marcus -- JPMorgan -- Analyst
Great. And congrats on a good quarter.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Thank you.
Robbie Marcus -- JPMorgan -- Analyst
Maybe two product questions for you. I want to hit on MitraClip and Alinity. Maybe you could comment on the status CMS reimbursement in MitraClip. It doesn't seem to have hindered your growth at all in the quarter, but maybe just give us some update on the timelines. And then maybe some considerations for the trend line of update going forward there, once you do get approval?
Miles D. White -- Chairman of the Board and Chief Executive Officer
Okay. I'm going to have Robert answer that question for you and we'll come back to Alinity.
Robert B. Ford -- President and Chief Operating Officer
Robbie, so you saw we had a great quarter in MitraClip global sales over 30%, really driven by US over 50%, the majority of that growth in US really coming through increased productivity in the existing accounts. So we obviously, we're constantly doing market development, opening new accounts, but majority of that growth coming through increased utilization. So we continue to invest in clinical and field sales expansion. And when you do this, they had this direct impact in account, utilization and productivity, international was up also double digits in the quarter.
You've got Japan where we believe there is a significant opportunity for us long-term there where we're building our capabilities in Japan. And Europe saw a rebound in Q2 versus where we were in Q1. I think the team today, the clinical and medical teams have done a really good job at putting into context and framing some of those conflicting trials that came out in the second half of the year.
So we think there is a lot of sustainability here, not only in the US, I mean our penetration rates here in terms of the opportunity are still kind of low-single digits. So we got a lot of runway here. Regarding your question on CMS, I mean, there's obviously a lot of coordination that's been going on between CMS and the physician societies. We expect the NCD to be open up very soon as part of that coordination.
As I say, we're not going to forecast the exact timeline here, but we anticipate getting through the process around year end early next year. But as you said, the process here hasn't really kind of impeded our growth. We have seen a dozen or so private commercial insurance companies already reflect updates to their coverage to include the new indication. Obviously the larger segment there is the Medicare segment, but it's good to kind of see that traction in the private segment. So very good quarter. We continue to see this expansion in the second-in the second half of the year and toward the end of the year looking at achieving the CMS reimbursement.
Robbie Marcus -- JPMorgan -- Analyst
Great. And then following up on Alinity. This is one -- it hits all of your different product lines in Diagnostics. So it's hard to really pick out, but maybe you could just give us a status update on the progress of the launch in Europe and the just starting launch in the US and maybe any competitive data points you could give us. We see some of your competitors struggling both on the topline and the margin side as it relates to competitive systems. Anything you're seeing out in the market that could be useful. Appreciate it.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Sure. Well, so, firstly, you made the comment that it touches every part of Diagnostics. That's true. And these are six different systems, the immunoassay system, the clinical chemistry system, obviously a smaller Point of Care system for that market. There is a dedicated blood and plasma screening system, and then of course hematology and molecular. And they're all at various stages of rollout. The one that is the furthest along would be the rollout of our immunoassay and clinical chemistry systems in the Core Laboratories of Europe.
We're also in the process of expanding menu approvals in the United States and China and Southeast Asia where customers want to have a certain critical mass of menu as they make the conversion from whatever they're using to these new Alinity systems. So I'd say we're running as fast as we can, I think at this point in Europe and -- that's gone pretty well. There is over 3,000 systems placed now, running tests, generating revenue was etc. We do measure not just the deal, the close of a deal, etc. We can't -- we measure what is called test of record when the [Indecipherable] count is up and running, generating results, generating tests etc. And so I'd say that process is going well.
That's going to begin to pick up momentum in the United States as we're getting more and more menu breadth same with China. We're tracking all of that pretty closely as we build those menus. We're talking hundreds of tests. We did recently get approval for the Alinity-S, the blood and plasma screening system. Today we screen about 80% of the world's blood supply as it is. This is a -- it's an important transition product that labs I think will find more efficient, more economic etc, but that's a plus.
We closed and started up the Japanese Red Cross, which is the largest Japanese blood screening organization and we took that from a long-standing Japanese competitor. So that was -- that was a big win for us. So there's just a lot of success that way. Hematology is in the very early stages of rolling out, the molecular system in the early stage of rolling out and which is why this will be, I guess, a slower moving launch that's got sort of years of growth and momentum in it. As we look over the next, call it five to seven years to completely replace an existing installed base and add a lot of new share and new volume.
And to that end, I think we quoted you before, it remains true in accounts where we already have the business we're winning above 95% of the time and in accounts where we do not have the business and there is an entrenched competitor of ours. We're winning about 60% of the time. Those win rates and penetration rates and share gains and so forth in our experience so far over now what I said is over 3,000 instruments. Tell us that we've got a very competitive system, we do run into on the occasional accounts, heavy duty price cutting.
We've got a very disciplined system. Our pricing and contracting in accounts we have not had to do that. I think that speaks to the superiority of the instrument and assay offering. So we're feeling like our offering is uniquely competitive, it's borne out by the win rates, no matter what type of account, it's unprecedented to launch this many systems across the board in all areas. So I think this only picks up momentum, gets better as the assay menu expands and as there is some experience in the field with the analyzers.
Robbie Marcus -- JPMorgan -- Analyst
Thanks a lot.
Operator
Thank you. Our next question comes from Bob Hopkins from Bank of America. Your line is open.
Bob Hopkins -- Bank of America -- Analyst
Great. Thank you and good morning. Just two quick questions. One for Miles in a big picture and then one quick financial question, if OK. Miles. If OK, I want to ask a question on the management team additions that you announced recently. Congrats on hiring Lisa to run Devices. And I guess my question is when Robert was promoted as COO back in October of last year, Abbott said that Robert would keep devices. So just wondering if you could comment on kind of the reasons for the change what Robert will do with all those new found free time and investors are always curious about your long-term plan. So it's a question on the recent hire.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Okay. Well, I can tell you he is not playing golf. We -- I'd say a couple of things. First of all, we anticipated that for the time being, we wanted him to stay directly on top of the Medical Device business, because he's been responsible for the bringing on board St. Jude as we acquired that. He was integral to that entire integration. We went through with St. Jude, a reorganization of the business to align with the way we like to run a business at Abbott.
And I guess I would describe that as we like to have a fully integrated business, meaning the General Manager of that business, President of that business has responsibility for our commercial -- the commercial people, commercial sales of the customers, etc, but also manufacturing, R&D, technical support service, etc. We like all those functions reporting into one GM, and -- so we realigned St. Jude.
We did the same with Alere quite frankly when we took them over. And so each of the businesses has full integrated general management responsibility and that was a transition. And Robert led that. It's all in place that meant that we added a number of experienced general managers. We replaced some who had left us as part of the St. Jude or Alere acquisitions and so forth. So we went through a management transition and at the same time, there's been a little bit of a generational change happening here.
Quite certainly there's been an awful lot of people that has been part of my management team for a long time and a lot of our managers are long term Abbott groomed and grown management team, but we've also been thinking about making sure that with all the growth we've got, the new products, the new organization and the new structure to that organization that we're always looking at the talent and the experience of our management team as we look forward now toward, let's just call it a decade for what I think it's going to be pretty robust growth.
So in that, we needed to replace the EVP role that Robert has held previous to his Chief Operating Officer role. We did that. We went outside for that and of course sourced Lisa, who we think has a terrific background and experience for that. We're very pleased to have brought fresh perspective and great experience, and great energy level up into the Company. So we're very pleased with that.
We went through a little further, I'd say, organization change to kind of break up what had gotten big and perhaps [Indecipherable] in some cases into slightly smaller units because we are managing some pretty aggressive growth, capital improvement, plant building etc, in a number of these businesses, including Diagnostics. And to give us more focus around it, we've done some of that adjusting. I feel like that's gone very smoothly and very well.
Obviously, we read into Robert who is in his mid-40s moving up into the COO role that we expect him to be in a key leadership role at the Company for a long time, read between the lines. And so there's the preparation process is going on, and I think one of the most important things I can do after leading the Company for so long is to make sure that when a transition comes nobody notices, and the best legacy to leave is that the momentum of this Company, its growth and its prospects are every bit as good going forward as we think they are now.
And from my perspective, a smooth leadership transition, which is not just me, it's literally right down through the upper ranks of all management is key and important. And I feel like of all the sort of track record or legacies that I can give this Company, I think a transition that way is probably the most important of all. So you can read into it that we're preparing for continuity of leadership, what I would call it with no speed bumps. And I think that actually is going exceptionally well.
Will I give you a timeframe? No. Do I think we should be nervous about it? No. I think that this Company is so poised to perform well across the board for years to come that I've got a great confidence in that continuity and the management team, because we've got a nice mix here, very experienced and trained Abbott people, and people we brought from other companies on the outside like Lisa. And I think the mix we've got in that team is exceptional.
Robert's been with the Company over 20 years. I've known him every bit of those 20 plus years and I think he brings to his job right now tremendous experience perspective, everything you would look for in a leader, the COO of the Company. So from my perspective, I think this is nothing but good and just keeps getting better.
Bob Hopkins -- Bank of America -- Analyst
Very, very helpful. Thank you so much, Miles. That's great perspective. And just -- it seems like an odd transition, but I do have a little question on the tax rate. Just quickly for Brian. You guys have been doing a great job over the last couple of years of kind of slowly and steadily bringing the tax rate down. And I know you made comments on the year, but maybe you could just talk bigger picture. Is -- where are you in that process and are there current rates that we're seeing here today sustainable down here in the kind of lowish teens? Thank you.
Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer
Yeah, Bob. We always set the tax rate where we think it's sustainable. We don't like to be bounced around. We want to be steady. And we assess the rigs [Phonetic] they come out. We had a series of rigs come out just recently and digested those. We're always adapting to that and adapting to the situation to be as efficient as we can here.
14.5% is where I call the sustainable rate right now as we look forward. I will say and we can't predict the future, but there is another series of clarity around rigs that will come out in Q3, and when that happens, we will digest that and adapt accordingly as well. But as we sit here today, we're happy with the efficiency of our tax rate and continue to manage it for sustainability, and we just don't want to see it bumping around on you or us.
Bob Hopkins -- Bank of America -- Analyst
Thank you.
Operator
Thank you. Our next question comes from Kristen Stewart from Barclays. Your line is open.
Kristen Stewart -- Barclays -- Analyst
Hi, congrats on a great quarter and thanks for the question. Miles, I was wondering if you could just talk through your thinking on just the level of investments in the Company and just how you think about how much of this really impressive topline you let flow through, and then also just from a capital allocation perspective, how are you just thinking about going forward with the Company just given the growth dynamics that you have and/or opportunities you could see to maybe strengthen some of the other business lines that maybe offer a little bit more lackluster growth with the Medical Devices? Thanks.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Okay. Well, I give you a couple of respective. First of all, the great thing is, we've got a lot of things to invest in. From a capital standpoint, obviously, it was important for us to pay down debt, we did. We've paid down a significant amount going on $10 billion at this point. And as we've said before, we're in a comfortable position of strategic flexibility, but that doesn't mean we're dying to go use it.
So the next need was, obviously, we've got some capital to put into plant and expansion, and we put a fair amount into both Diagnostics and Libre at this point. We're investing in expansion of plant manufacturing for MitraClip and other products. So given that we've got an awful lot of growth happening and the potential for more, obviously we've got to support that growth from a plant and capital standpoint in a timely fashion at appropriate quality and so forth, and we're doing that. And so there is capital use etc, there.
Will we continue to pay down debt? We will. We'll be prudent and careful about making sure it makes sense. It's the right debt, right time and all that good stuff. We'll maintain a healthy strong dividend. We increased it substantially at the end of last year. We'll continue to grow our dividend given where the P/E is now. I have been told by a number of shareholders that trying to get that yield rate, upward dividend funds or happy is difficult. But that's a nice problem to have.
We will continue to grow our dividend. That's has been a hallmark of the company for decades, and it will continue to be. And then, it's not always that prudent to buy back shares, the timing matters, the return matters, etc. Is it an option? Yeah, it is. Probably won't get too carried away because frankly we're able to grow and return cash to shareholders a number of different ways and return good return to our shareholders. So it's always an option as it presents itself.
We just got a lot we can do. If you're asking about M&A and other things, we don't feel like right now that we need something, nor do we think we see something that we can add sufficient value to make it worth it to invest in. We've got so many organic growth opportunities that while we continue to monitor and we're always tracking opportunities in all of our businesses, I can't tell you that's real front burner right now. We don't ignore it. We don't -- we try to maintain our currency on the things that we might be interested in.
We just did a small acquisition in Germany, that's a nice adjunctive thing to our Diagnostics business in terms of automation and so forth. There are things like that that I think are valuable for us. But we have so much growth potential and opportunity in Devices, Diagnostics even Nutrition and Pharma that we're just not out cutting [Phonetic] real hard on the M&A front right now, nor do I foresee that being true for quite a while. So that's the capital side.
On the expense side, we're always trying to balance the voracious appetite of investors for growing earnings with investing in the growth of the business. And I doubt that there is a General Manager or business at Abbott that wouldn't claim that if we give them more money, they could spend it effectively and efficiently to grow our products faster. So we're always trying to find the right balance of how much gas that's thrown on the fire of the growth of the products with returning a healthy return to the expectations of our investors.
I think that's always a balance because there is always some investor who thinks there is -- there must be an extra penny in the quarter and I was speaking to somebody this morning who asked about that very issue, another penny. As you do know, the issue here is much bigger than a penny. We've got tremendous growth. Our topline, we're accelerating, it's strong, it's sustainable. This isn't about a penny in a given quarter. This is about a pretty healthy sales growth rate and commensurate healthy growth rate on the bottom line that's unusual in our sector and particularly unusual for companies of our size to be able to sustain such a healthy growth rate with so much new product richness for the coming years. And it's not a coming quarter, it's coming year.
So you raised the right question is how do we keep investing in the spending in R&D and the sales and marketing expenses to drive that growth and we're trying to find that right balance as well by putting enough fuel to the fire here to drive the growth rates even higher.
Kristen Stewart -- Barclays -- Analyst
Okay. Then just one question on how do you view the Medical Device business, growth was phenomenal this quarter. How do you just think about the ability to sustain that level of growth. It seems that Medical Devices has a bit of a tale of two cities with several businesses reporting really nice strong double-digit growth, but a couple of obvious businesses kind of still lagging around that flattish growth. How do you kind of think about the longer-term dynamic there? Thanks so much for taking the questions.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Yeah, you've got a mix of businesses here. You've got some that are little more mature than others. Some that have brand new products that are terrific innovations. In general, in Medical Devices, innovation is what drives the growth. And over time, that's the case. And different businesses are at different stages of either maturity or new innovation. We believe there is still a lot of opportunity there.
I remember in my discussions with Dan Starks when we were negotiating over the acquisition of St. Jude. Dan felt pretty strongly that the pipeline at St. Jude was under-appreciated, and that -- in their own internal models that the growth rate was out there in the high single digits. The Street didn't agree with that at the time because it didn't see it yet, etc. But, Dan was right, and I think that we've seen that in the performance of the Medical Device business we acquired from St. Jude because it's been performing at sort of the 9% to 10% level as new products have gone to the market either replacing older products or just simply bringing new products all together.
So I'd say the first thing about Medical Devices is, you've got to keep innovating in new spaces, MitraClip's new space heart failure and HeartMate and so forth, these are new spaces, new technologies, etc. Libre is that. Libre is unique. It approaches a mass market, not a niche market. Most Medical Devices address niches of therapy, but diabetes is something that affects more than 80 million people around the world who would benefit from Libre in about a 50-50 split of type 1s and type 2s and that is massive. It's unlike anything seen before in Device or Diagnostic businesses. And so there is just an enormous opportunity there.
To be honest, traditional medical device companies aren't used to having to deal with at that kind of scale. And so we're addressing that by investing very heavily in manufacturing expansion so that we can go after the mass market, not a niche. And so, I think the sustainability of the growth is driven not only by the innovation, but the ability to go after a much bigger markets at a much more affordable level. More people will have access. There will be more growth as we make technologies and products more and more affordable. And then finally, you asked about some of the businesses that aren't growing that fast. And I'd say, well, I'm always disappointed if they're not growing as fast as we'd like them to, but I am pleased that we've seen sequential improvement quarter-to-quarter in almost all of them. We've seen that in CRM, we've seen it in Neuromod, we've seen it in even EPD and stents and so forth. We're seeing incremental improvement.
Some of these businesses, more mature businesses may not see strong or high-single-digit or double-digit growth, but I think they are still capable of pretty strong growth in the low-to-mid single-digit area and there's still a lot of upside. If we take a CRM business from what is flat slightly negative 2%, [Phonetic] 3% or 4% that's a pretty big bump in growth. We'd be -- if it was going from 10 to 14, we'd be all excited about it. So the same incremental growth improvement, I think, is possible. It's just at a lower level.
So I think that there is a lot here to sustain the kind of growth we're seeing. There's always going to be new products like a Libre or a MitraClip or a HeartMate that singularly for a period of time, disproportionately drive the overall growth. One of the benefits of having many businesses in the device arena is, there is always going to be somewhere that's growing that lane, and in other places where we're innovating for the future.
Kristen Stewart -- Barclays -- Analyst
Thank you.
Operator
Thank you. And our next question comes from Joanne Wuensch from BMO Capital Markets. Your line is open.
Joanne Wuensch -- BMO Capital Markets -- Analyst
Good morning, everybody and thank you for taking the question. I'd like to spend a little bit of time on Nutrition, particularly International Nutrition and the Adult piece of that really did well in the quarter. Is there anything you can give us as an update on that particular franchise?
Robbie Marcus -- JPMorgan -- Analyst
Yeah. So we had a, as you've noticed, sequential improvement in our Nutrition business. We're very pleased with the performance. We continue to see kind of above-market growth in several of the countries. We've made a lot of enhancements and changes in people and strategies to enhance our competitiveness over the years, new products execution and we get to see that. We do think it is sustainable. We are executing well. We kind of see the market in that 3% to 4% range. So we're always striving for something above that and you saw that again in this quarter with a 5% kind of growth, and good execution in our Adult business, specifically coming out of Asia.
Miles D. White -- Chairman of the Board and Chief Executive Officer
The OUS business, Joanne, was up little over 10% and in the Adult -- OUS Adult business. And a lot of that is new product innovation, new formats, expansion in given markets like Vietnam and other places where we've got pretty good strong holds, but also a lot of opportunity for further growth. So we put a lot more attention on some of those. I'd say historically in this business, the US and China always get all the attention, but there's a lot of opportunity. And so Robert said Southeast Asian markets and others where there's still lot of growth, India and the like, and particularly in the Adult segment.
Joanne Wuensch -- BMO Capital Markets -- Analyst
Thank you. And as my second question on of the "problem children" in Medical Devices is in Neuromodulation. Can you walk us through a pathway to the recovery in that? Thanks.
Miles D. White -- Chairman of the Board and Chief Executive Officer
Yes, sure. So we saw an improvement in Q2. Obviously, that's not our -- that's not our landing spot. We are obviously not where we want to be, but an improvement there. We completed the sales force expansion that we've been talking about. We increased the sales force by about 40% and when you go through something like that, Joanne, there is some disruption that occurs in terms of cutting the territories and the trading etc. So we completed that and now obviously the focus is improving the productivity of that sales team and we saw that in the second quarter.
If you look at some of the KPIs, we look at whether it's trials or trial to permanent implant conversion rates, we saw definitely sequential improvement versus Q1 and we expect that to improve as we go into the second half of this year. A big portion of this also is, I'd say product innovation lifecycle. You've seen a couple quarters now where there really hasn't been any kind of launch from the competitors in this space. That's a key driver also.
So sales force, productivity and execution, we'll start to see some of our innovation output. We've made -- doubled the investment in that R&D business over the last couple of years and we'll start to see some output of that in the second half of this year, beginning of next year in terms of new products that will provide. I'd say more for the sales team to kind of work with.
Joanne Wuensch -- BMO Capital Markets -- Analyst
Thank you very much.
David Lewis -- Morgan Stanley -- Analyst
Thanks, operator. We'll take one more question.
Operator
Thank you. And our final question comes from Matthew Taylor from UBS. Your line is open.
Matthew Taylor -- UBS -- Analyst
Hi. Thank you for taking the question. I wanted to circle back on Libre on two points. So, the first is that you mentioned that you're working on increasing the capacity. There was an article yesterday in Reuters that said that you're expanding capacity by three or five times. And so, if we think about Libre this year, it's approaching maybe $2 billion based on consensus. Does that mean that ultimately you think it could be $6 billion to $10 billion type product as you go mass market? And can you talk about how you can step on the gas in the second half of the year with that additional capacity in the approval of Libre 2 to more rapidly expand use?
Miles D. White -- Chairman of the Board and Chief Executive Officer
Man, you are one aggressive guy. I remember like at this call [Phonetic] or this question last quarter, I can't recall if it was you on whether we thought we could get the $5 billion and how soon, and gosh three months later, it's $10 billion. I've got the same ambitions, to be honest. I just wouldn't have expected him 90 days later. But to answer your question, I think that kind of potential is there. I think it's awfully hard to speculate about a number that big.
But will we -- do I think we'll get the $5 billion and do I think we'll do it in a reasonable time? $5 billion [Indecipherable] yes, I do. And I think it's done. The growth rate here is reflective of not only the size of the market, but the need and utility and affordability of the product. And I think it's just as I've said many times, it's a very different market where affordability and the utility, the access, all those things make this a mass market product, not a niche.
And it's designed for that, it's priced for that, it's a very profitable product. And we're going through the large-scale scale up of addressing that kind of growth, which is unprecedented for products in our space. So do I think it can grow to that sort of level? I won't -- I won't jinx anything by trying to make some prognostication about $10 billion, but I would say that I think it's got enormous potential and it's got potential beyond glucose. It's got potential as a wearable in other analytes and other products over time.
We have R&D programs under way, not only for the repeated enhancement improvement, expansion of Libre, but also into other categories beyond diabetes and other analyzers and so forth. So I think that there's just a lot of things that will evolve over the coming years here that today people aren't even contemplating with the product. We're going as hard as we can at the glucose opportunity, which is enormous, but there is so much more beyond that, that I think at least your aspirational consideration to be honest has validity [Phonetic] I just -- I'm not ready to put any numbers around it.
Matthew Taylor -- UBS -- Analyst
Thanks. And then maybe one last follow-up. That was a great answer, but just wanted to get your feedback on what you think is misunderstood about Libre today when you get feedback from investors that bubbles up to you, where do you think that the internal view of Libre really differs from the Street's perception or people's perception?
Miles D. White -- Chairman of the Board and Chief Executive Officer
[Indecipherable] only ask the COO. He's been living with it a long time.
Robert B. Ford -- President and Chief Operating Officer
Yeah, I think when we went out about this several years ago, the challenge here, Matt, wasn't to get an accurate reading of glucose from the interstitial fluid. Navigator when we had launched it back in 2008, we were able to do that. It was very accurate and we were able to get an accurate reading. The challenge that we went about with Libre is how to do that in a way that is cost-effective for the health systems and for consumers and for -- and for all of that.
So that was what we really went after is, how can you get that accurate reading at a cost position at the core of Libre and you might remember at the time Navigator at the time was considered the most accurate sensor. In the core of Libre is that chemistry, is that core technology of Navigator, which provides accurate reliable readings. But we're able to do that a cost position that now makes sense for the insurance and for the payer community, and the health systems to cover it. It wasn't a question of whether the outcomes were right or whether the outcomes were enough. They were convinced that the outcomes were there for sensor based glucose monitoring. It was just -- can I now do it in a way that makes sense for me to do it on a mass scale and Miles has talked about this about mass scale, that's what we went after 10 years ago. And that's at the core and I think maybe that's misunderstood because a lot of this discussion gets focused on well accuracy at this level and accuracy at that level.
And the reality is accuracy is obviously important, but our goal here is to make this massively available without having to sacrifice accuracy and the fact that we price it at a different price point, wouldn't say necessarily imply that it's somehow missing something. We just had a different strategy, and different view of what we could do.
Miles D. White -- Chairman of the Board and Chief Executive Officer
The only product out there that the Street has been able to compare it to is expenses and high cost, and aimed at a niche in the United States. Ours is not expensive and it's not high cost. It does not lack for clinical performance accuracy or any of the like. But because the manufacturing is so sophisticated and automated, we are able to achieve a pretty low cost in what is a pretty sophisticated product. It's a highly profitable product. So we haven't compromised that it's a product that is successful in terms of profit. That's not been compromised at all. It has a completely different design and approach and cost structure. It relies on scale for that cost.
And we've actually seen improving gross margin, we told you before the gross margin is over 60%. It is and rising, and that's where the heavy capital investment. So that we can produce the kind of volume that is broadly available. So I think among the misunderstandings out there, I think, people say, well, geez, how do you make money? Oh, we make money. We do just fine thank you.
And the product is designed to be affordable and accessible. I guess there are some days when we think if the healthcare market community insurers, payers, Congress, patients whatever always think it's got to be lower cost, the healthcare's got be more affordable, here's your example. And it is -- it's massively so. And so we've going at it with that approach to make it broadly available, broadly in this case means 80 million people worldwide, that's unprecedented.
So I'm not sure that -- I'm not sure that the device community has totally understood that because it's so different. But we keep saying so, and I think now is as the new capacity comes online, we've also staged the capacity. So that literally every 90 days, we're adding another increment significant increment in capacity. We will not be capacity constrained and that kind of release is a lot of freedom to market and push the product forward and even open up markets we haven't opened yet.
So I think there's a lot of opportunity here. And I think too -- I think opportunities -- there is opportunity for a number of things like this as I mentioned earlier in what's called the wearables market. The more affordable and accessible technologies make products like this, then I think we're going to see a very different market expansion.
Matthew Taylor -- UBS -- Analyst
Thank you very much for the time.
David Lewis -- Morgan Stanley -- Analyst
Thank you, operator and thank you for all of your questions. This now concludes Abbott's conference call. A video -- a webcast replay of this call will be available after 11:00 a.m. Central Time today on Abbott Investor Relations website at abbottinvestor.com. Thank you for joining us today.
Operator
[Operator Closing Remarks]
Duration: 55 minutes
Call participants:
Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions
Miles D. White -- Chairman of the Board and Chief Executive Officer
Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer
Robert B. Ford -- President and Chief Operating Officer
David Lewis -- Morgan Stanley -- Analyst
Robbie Marcus -- JPMorgan -- Analyst
Bob Hopkins -- Bank of America -- Analyst
Kristen Stewart -- Barclays -- Analyst
Joanne Wuensch -- BMO Capital Markets -- Analyst
Matthew Taylor -- UBS -- 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) Q2 2019 Earnings Call Jul 17, 2019, 9:00 a.m. Operator [Operator Closing Remarks] Duration: 55 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman of the Board and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Robbie Marcus -- JPMorgan -- Analyst Bob Hopkins -- Bank of America -- Analyst Kristen Stewart -- Barclays -- Analyst Joanne Wuensch -- BMO Capital Markets -- Analyst Matthew Taylor -- UBS -- Analyst More ABT analysis All earnings call transcripts 10 stocks we like better than Abbott Laboratories When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Earlier this week, we announced US approval of our fourth generation MitraClip device, which builds on this leading platform with enhanced features and new clip sizes, providing physicians further options when treating [Technical Issues] disease. | Operator [Operator Closing Remarks] Duration: 55 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman of the Board and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Robbie Marcus -- JPMorgan -- Analyst Bob Hopkins -- Bank of America -- Analyst Kristen Stewart -- Barclays -- Analyst Joanne Wuensch -- BMO Capital Markets -- Analyst Matthew Taylor -- UBS -- Analyst More ABT analysis All earnings call transcripts 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) Q2 2019 Earnings Call Jul 17, 2019, 9:00 a.m. With me today are Miles White, Chairman of the Board and Chief Executive Officer; Robert Ford, President and Chief Operating Officer, and Brian Yoor, Executive Vice President, Finance and Chief Financial Officer. | Operator [Operator Closing Remarks] Duration: 55 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman of the Board and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Robbie Marcus -- JPMorgan -- Analyst Bob Hopkins -- Bank of America -- Analyst Kristen Stewart -- Barclays -- Analyst Joanne Wuensch -- BMO Capital Markets -- Analyst Matthew Taylor -- UBS -- Analyst More ABT analysis All earnings call transcripts 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) Q2 2019 Earnings Call Jul 17, 2019, 9:00 a.m. Quite certainly there's been an awful lot of people that has been part of my management team for a long time and a lot of our managers are long term Abbott groomed and grown management team, but we've also been thinking about making sure that with all the growth we've got, the new products, the new organization and the new structure to that organization that we're always looking at the talent and the experience of our management team as we look forward now toward, let's just call it a decade for what I think it's going to be pretty robust growth. | Operator [Operator Closing Remarks] Duration: 55 minutes Call participants: Scott Leinenweber -- Vice President, Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman of the Board and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Robbie Marcus -- JPMorgan -- Analyst Bob Hopkins -- Bank of America -- Analyst Kristen Stewart -- Barclays -- Analyst Joanne Wuensch -- BMO Capital Markets -- Analyst Matthew Taylor -- UBS -- Analyst More ABT analysis All earnings call transcripts 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) Q2 2019 Earnings Call Jul 17, 2019, 9:00 a.m. Robert B. Ford -- President and Chief Operating Officer Robbie, so you saw we had a great quarter in MitraClip global sales over 30%, really driven by US over 50%, the majority of that growth in US really coming through increased productivity in the existing accounts. |
32956.0 | 2019-07-17 00:00:00 UTC | Abbott Laboratories Earnings: ABT Stock Surges on Guidance, Q2 Beat | ABT | https://www.nasdaq.com/articles/abbott-laboratories-earnings%3A-abt-stock-surges-on-guidance-q2-beat-2019-07-17 | nan | nan | Abbott Laboratories earnings for the company’s second quarter of 2019 has ABT stock heading higher on Wednesday.
Source: Shutterstock
Abbott Laboratories (NYSE:) is increasing its guidance for 2019 after a strong second-quarter earnings report. This has it now expecting earnings per share for the year to come in between $3.21 and $3.27. That’s good news for ABT stock as Wall Street is looking for earnings per share of $3.22 for the year.
The positive outlook for 2019 is thanks to a strong earnings report for the second quarter of the year. This includes earnings per share coming in at 82 cents. This is an increase over the company’s earnings per share of 73 cents from the second quarter of 2018. It also beats out analysts’ earnings per share estimate of 80 cents for the quarter.
To go along with that earnings per share beat from the most recent Abbott Laboratories earnings report is net income of $1.01 billion. This is up roughly 37% when compared to net income of $733 million reported in the same period of the year prior.
The Abbott Laboratories earnings report for the second quarter of 2019 also includes revenue of . This is up roughly 3% from its revenue of $7.77 billion reported in the second quarter of the previous year. That has it missing Wall Street’s revenue estimates of $8.00 billion for the period, but it wasn’t keeping ABT stock down today.
ABT stock was up 3% as of Wednesday afternoon. The stock is also up 19% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories earnings for the company’s second quarter of 2019 has ABT stock heading higher on Wednesday. That has it missing Wall Street’s revenue estimates of $8.00 billion for the period, but it wasn’t keeping ABT stock down today. That’s good news for ABT stock as Wall Street is looking for earnings per share of $3.22 for the year. | Abbott Laboratories earnings for the company’s second quarter of 2019 has ABT stock heading higher on Wednesday. That’s good news for ABT stock as Wall Street is looking for earnings per share of $3.22 for the year. That has it missing Wall Street’s revenue estimates of $8.00 billion for the period, but it wasn’t keeping ABT stock down today. | Abbott Laboratories earnings for the company’s second quarter of 2019 has ABT stock heading higher on Wednesday. That’s good news for ABT stock as Wall Street is looking for earnings per share of $3.22 for the year. That has it missing Wall Street’s revenue estimates of $8.00 billion for the period, but it wasn’t keeping ABT stock down today. | Abbott Laboratories earnings for the company’s second quarter of 2019 has ABT stock heading higher on Wednesday. That’s good news for ABT stock as Wall Street is looking for earnings per share of $3.22 for the year. That has it missing Wall Street’s revenue estimates of $8.00 billion for the period, but it wasn’t keeping ABT stock down today. |
32957.0 | 2019-07-17 00:00:00 UTC | 5 Top Stock Trades for Thursday: TSLA, GLD, ABT | ABT | https://www.nasdaq.com/articles/5-top-stock-trades-for-thursday%3A-tsla-gld-abt-2019-07-17 | nan | nan | U.S. stock indices were again quiet on Wednesday, as we begin to chip away at the tip of the earnings iceberg. We’re mostly delving through the banks right now, but will have tech and other industries beginning soon. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Tesla
Tesla (NASDAQ:) stock has been moving favorably, working on its seventh straight week of gains.
It’s getting into a very key area though, the $250 to $260 zone. This was prior range support for years, buoying Tesla stock on each test. Back in May, the stock plunged below this mark, rebounded the next week and failed to reclaim it.
This is all shown via the purple arrow on the chart and shows when an area shifts from support to resistance. Now back in this area, it’s vital for TSLA stock to reclaim this range level in order to keep the rally alive.
Those who bought Tesla sub-$200 as a trade may consider booking some profits here. Should shares push through, look for a rally up to the 200-week moving average, currently at $273. On a pullback, see that the 10-week holds as support. I wouldn’t want to see Tesla below $240.
Top Stock Trades for Tomorrow #2: Abbott Labs
Abbott Labs (NYSE:) hit new highs after the company reported earnings. However, the stock is not moving as robustly as one might have expected.
I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside.
Top Stock Trades for Tomorrow #3: Gold
The move has been years in the making, but the SPDR Gold ETF (NYSEARCA:) is starting to make some waves. The iShares Silver Trust ETF (NYSEARCA:) has been trading well too, but isn’t putting together the kind of chart GLD is.
Above is a long-term weekly chart. With GLD over the $128 to $130 area, it’s in breakout mode. While shares are putting in a nice bull flag setup , we absolutely need to see prior resistance hold as support.
A rate cut should help fuel a rally for gold, although the market is surely starting to price in such an event. Over $135.55 sends GLD even higher. A pullback to $130 or the 10-day moving average that holds as support may be a buy-the-dip opportunity.
Top Stock Trades for Tomorrow #4: Invitae
Shares of Invitae (NASDAQ:) took off Wednesday, rallying up toward $24 at one point in the day. Citron Research said it had a position in the name and is using a $100 price target. We’ve been telling InvestorPlace readers for months that we love this name. Today’s action came with perfect timing.
On Twitter on Tuesday, we NVTA stock broke below the 20-day moving average, but reclaimed this mark by the close. That was very constructive action, while Wednesday’s action has been downright impressive.
The action is similar to what we saw last month, where shares broke below the 20-day, reclaimed it in the same session, then went on a monster run over the next few days. I’m not sure that history repeats, but investors are hopeful that it will.
Let’s see if NVTA can push through $24 to $24.50. If it can, $26+ could be in the cards.
Top Stock Trades for Tomorrow #5: Teva Pharmaceutical
Shares of Teva Pharmaceutical (NYSE:) are taking it on the chin. The stock is down 11% in just three days and more than 20% from its highs earlier this month.
The stock hit new 52-week lows on the move and is threatening to fall below $8 support. Longs with a strong stomach can play against Wednesday’s lows, but Teva has not been a great one to own. A break below $8 could accelerate the selling pressure. A rally could bring Teva back up to its 20-day moving average. Above that and $10 is possible.
Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVTA.
The post 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. | I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside. Now back in this area, it’s vital for TSLA stock to reclaim this range level in order to keep the rally alive. The iShares Silver Trust ETF (NYSEARCA:) has been trading well too, but isn’t putting together the kind of chart GLD is. | I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside. Top Stock Trades for Tomorrow #2: Abbott Labs Abbott Labs (NYSE:) hit new highs after the company reported earnings. Top Stock Trades for Tomorrow #4: Invitae Shares of Invitae (NASDAQ:) took off Wednesday, rallying up toward $24 at one point in the day. | I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside. Top Stock Trades for Tomorrow #1: Tesla Tesla (NASDAQ:) stock has been moving favorably, working on its seventh straight week of gains. Top Stock Trades for Tomorrow #3: Gold The move has been years in the making, but the SPDR Gold ETF (NYSEARCA:) is starting to make some waves. | I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside. Top Stock Trades for Tomorrow #1: Tesla Tesla (NASDAQ:) stock has been moving favorably, working on its seventh straight week of gains. Should shares push through, look for a rally up to the 200-week moving average, currently at $273. |
32958.0 | 2019-07-17 00:00:00 UTC | Noteworthy Wednesday Option Activity: MAR, ABT, NSC | ABT | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-mar-abt-nsc-2019-07-17 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Marriott International, Inc. (Symbol: MAR), where a total volume of 12,522 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 81.7% of MAR's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $120 strike put option expiring October 18, 2019, with 4,250 contracts trading so far today, representing approximately 425,000 underlying shares of MAR. Below is a chart showing MAR's trailing twelve month trading history, with the $120 strike highlighted in orange:
Abbott Laboratories (Symbol: ABT) options are showing a volume of 34,763 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 65.9% of ABT's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $85 strike call option expiring August 16, 2019, with 4,201 contracts trading so far today, representing approximately 420,100 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $85 strike highlighted in orange:
And Norfolk Southern Corp (Symbol: NSC) options are showing a volume of 9,525 contracts thus far today. That number of contracts represents approximately 952,500 underlying shares, working out to a sizeable 57.2% of NSC's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $202.50 strike call option expiring July 26, 2019, with 1,256 contracts trading so far today, representing approximately 125,600 underlying shares of NSC. Below is a chart showing NSC's trailing twelve month trading history, with the $202.50 strike highlighted in orange:
For the various different available expirations for MAR options, ABT options, or NSC 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 $85 strike call option expiring August 16, 2019, with 4,201 contracts trading so far today, representing approximately 420,100 underlying shares of ABT. Below is a chart showing MAR's trailing twelve month trading history, with the $120 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 34,763 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 65.9% of ABT's average daily trading volume over the past month, of 5.3 million shares. | Below is a chart showing MAR's trailing twelve month trading history, with the $120 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 34,763 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 65.9% of ABT's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $85 strike call option expiring August 16, 2019, with 4,201 contracts trading so far today, representing approximately 420,100 underlying shares of ABT. | That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 65.9% of ABT's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing MAR's trailing twelve month trading history, with the $120 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 34,763 contracts thus far today. Especially high volume was seen for the $85 strike call option expiring August 16, 2019, with 4,201 contracts trading so far today, representing approximately 420,100 underlying shares of ABT. | Below is a chart showing NSC's trailing twelve month trading history, with the $202.50 strike highlighted in orange: For the various different available expirations for MAR options, ABT options, or NSC options, visit StockOptionsChannel.com. Below is a chart showing MAR's trailing twelve month trading history, with the $120 strike highlighted in orange: Abbott Laboratories (Symbol: ABT) options are showing a volume of 34,763 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 65.9% of ABT's average daily trading volume over the past month, of 5.3 million shares. |
32959.0 | 2019-07-16 00:00:00 UTC | XLV, ABT, MDT, TMO: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/xlv-abt-mdt-tmo%3A-etf-outflow-alert-2019-07-16 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $162.1 million dollar outflow -- that's a 0.9% decrease week over week (from 196,520,000 to 194,770,000). Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.3%, Medtronic PLC (Symbol: MDT) is off about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $92.36. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.3%, Medtronic PLC (Symbol: MDT) is off about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $162.1 million dollar outflow -- that's a 0.9% decrease week over week (from 196,520,000 to 194,770,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.3%, Medtronic PLC (Symbol: MDT) is off about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 1%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $92.36. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.3%, Medtronic PLC (Symbol: MDT) is off about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $162.1 million dollar outflow -- that's a 0.9% decrease week over week (from 196,520,000 to 194,770,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $92.36. | Among the largest underlying components of XLV, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.3%, Medtronic PLC (Symbol: MDT) is off about 0.1%, and Thermo Fisher Scientific Inc (Symbol: TMO) is lower by about 1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $162.1 million dollar outflow -- that's a 0.9% decrease week over week (from 196,520,000 to 194,770,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $92.36. |
32960.0 | 2019-07-16 00:00:00 UTC | Health Care Sector Update for 07/16/2019: IMRN, MLNT, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-07-16-2019%3A-imrn-mlnt-jnj-pfe-abt-mrk-amgn-2019-07-16 | nan | nan | Top Health Care Stocks:
JNJ: -0.60%
PFE: -0.02%
ABT: Flat
MRK: +0.05%
AMGN: +0.42%
Health care majors were mixed pre-bell Tuesday.
Stocks moving on news include:
(+) Immuron (IMRN), which was surging more than 125% as its FY19 revenue jumped 52% in North America to AUD1.16 million ($820,000), driven by the sales of Travelan, which exceeded AUD1 million in the US for the first time.
(+) Melinta Therapeutics (MLNT) was up more than 4% after saying it expects Q2 net product sales of about $13.8 million, up 51% from the period ended in June a year ago and 17% sequentially over Q1.
In other sector news:
(-) Johnson & Johnson (JNJ) was recently lower even after the health care company posted Q2 adjusted earnings of $2.58 per share, up from $2.10 in the same period a year ago and exceeding the estimate of $2.44 from analysts polled by Capital IQ.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT: Flat Stocks moving on news include: (+) Immuron (IMRN), which was surging more than 125% as its FY19 revenue jumped 52% in North America to AUD1.16 million ($820,000), driven by the sales of Travelan, which exceeded AUD1 million in the US for the first time. (+) Melinta Therapeutics (MLNT) was up more than 4% after saying it expects Q2 net product sales of about $13.8 million, up 51% from the period ended in June a year ago and 17% sequentially over Q1. | ABT: Flat Top Health Care Stocks: Health care majors were mixed pre-bell Tuesday. | ABT: Flat Stocks moving on news include: (+) Immuron (IMRN), which was surging more than 125% as its FY19 revenue jumped 52% in North America to AUD1.16 million ($820,000), driven by the sales of Travelan, which exceeded AUD1 million in the US for the first time. In other sector news: (-) Johnson & Johnson (JNJ) was recently lower even after the health care company posted Q2 adjusted earnings of $2.58 per share, up from $2.10 in the same period a year ago and exceeding the estimate of $2.44 from analysts polled by Capital IQ. | ABT: Flat Top Health Care Stocks: Health care majors were mixed pre-bell Tuesday. |
32961.0 | 2019-07-12 00:00:00 UTC | Strange: Bullish ABT Analysts Actually See -2.96% Downside | ABT | https://www.nasdaq.com/articles/strange%3A-bullish-abt-analysts-actually-see-2.96-downside-2019-07-12 | nan | nan | Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with Abbott Laboratories (Symbol: ABT). The average 12-month price target for ABT — averaging the work of 13 analysts — reveals an average price target of $83.23/share. That's a whopping -2.96% below where ABT has been trading recently at $85.77/share. With this kind of downside potential (should ABT fall to that price target), one might expect to see a high concentration of "hold" or even "sell" ratings on the stock. Yet, take a look at the bullishness:
The average rating presented in the last row of the table above is from 1 to 5, where 1 would be a consensus Strong Buy and 5 would be a consensus Strong Sell. In the middle, 3 would be a Hold. So anything below 3 leans toward Buy as the average analyst sentiment. The average rating of 1.44 for ABT leans strongly towards the bullish end of the spectrum, yet the ABT price target paints a different picture. Clearly, there is something more to the story here that is worth investigating for investors looking at Abbott Laboratories. Of course, the average price target is just that — a mathematical average, and is only one metric. There are analysts with higher targets than the average, including one looking for a price of $94.00. And then on the other side of the spectrum one analyst has a target as low as $76.00. The standard deviation is $5.117.
But the whole reason to look at the average 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 — much like with guessing the number of jelly beans in a jar, where the average guess tends to be very close. And so with ABT trading so far above that average target price of $83.23/share, the -2.96% downside to that average target does seem to be a paradox against the bullish analyst ratings. Might analysts be behind the curve with their targets and upward adjustments are forthcoming? Or, is it time for some of these analysts to turn bearish and downgrade on valuation? One thing is for sure: this apparent paradox makes for a good "signal" to investors in ABT to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for Abbott Laboratories. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABT — FREE.
The Top 25 Broker Analyst Picks 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. | Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with Abbott Laboratories (Symbol: ABT). With this kind of downside potential (should ABT fall to that price target), one might expect to see a high concentration of "hold" or even "sell" ratings on the stock. One thing is for sure: this apparent paradox makes for a good "signal" to investors in ABT to spend fresh time assessing the company and deciding whether analysts have it right with their sentiment, or have it right with their price target for Abbott Laboratories. | The average 12-month price target for ABT — averaging the work of 13 analysts — reveals an average price target of $83.23/share. The average rating of 1.44 for ABT leans strongly towards the bullish end of the spectrum, yet the ABT price target paints a different picture. And so with ABT trading so far above that average target price of $83.23/share, the -2.96% downside to that average target does seem to be a paradox against the bullish analyst ratings. | The average 12-month price target for ABT — averaging the work of 13 analysts — reveals an average price target of $83.23/share. The average rating of 1.44 for ABT leans strongly towards the bullish end of the spectrum, yet the ABT price target paints a different picture. And so with ABT trading so far above that average target price of $83.23/share, the -2.96% downside to that average target does seem to be a paradox against the bullish analyst ratings. | The average rating of 1.44 for ABT leans strongly towards the bullish end of the spectrum, yet the ABT price target paints a different picture. And so with ABT trading so far above that average target price of $83.23/share, the -2.96% downside to that average target does seem to be a paradox against the bullish analyst ratings. Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a bit of a paradox with Abbott Laboratories (Symbol: ABT). |
32962.0 | 2019-07-10 00:00:00 UTC | The 10 Biggest Healthcare Stocks | ABT | https://www.nasdaq.com/articles/the-10-biggest-healthcare-stocks-2019-07-10 | nan | nan | You don't have to see the financial statistics to know healthcare represents a huge part of the U.S. economy. It's an enormous part of the global economy, too. And healthcare continues to be one of the fastest-growing sectors.
Aging demographic trends across the world should fuel sustained growth for many healthcare companies for decades to come. This growth potential should be attractive to investors seeking long-term profits. While some investors might opt to buy smaller healthcare stocks, many prefer the stability of large-cap healthcare stocks.
The 10 biggest healthcare stocks together generate close to $600 billion in annual revenue. Here's what you'll want to know about the biggest healthcare stocks on the market right now.
Image source: Getty Images.
The wide scope of healthcare
The healthcare sector includes a wide range of businesses. These businesses fall into two main categories:
Healthcare equipment and services
Pharmaceuticals, biotechnology, and life sciences
Healthcare equipment and services is a pretty broad category. It includes companies that make medical devices and medical supplies. Healthcare providers such as hospitals, home healthcare companies, physician clinics, and skilled nursing facilities also fall under the category's umbrella. Health insurers also fit into the category.
Drugmakers, from big pharma companies to tiny biotechs, are included in the second main category. In addition, companies that provide tools and services to the life sciences industry fall into this category.
Some companies that haven't traditionally been viewed as healthcare companies are building a presence in the healthcare space. Google parent Alphabet, for example, has formed subsidiaries specifically focused on developing healthcare products. But because companies like Alphabet don't primarily focus on healthcare, they're not categorized as healthcare stocks in our ranking.
What are the biggest healthcare stocks in 2019?
Only companies with market caps of at least $110 billion earn a spot among the 10 biggest healthcare stocks on the market right now. Companies focused on pharmaceuticals occupy 6 of the top 10 spots, with a handful of medical device makers and one health insurance giant rounding out the list.
Data sources: Yahoo! Finance and company regulatory filings. All market caps as of July 2, 2019.
Here's what you need to know about each of these big healthcare stocks.
1. Johnson & Johnson
Johnson & Johnson ranks as the biggest healthcare stock by far. It owns more than 260 operating companies across the world organized into three business segments: consumer, pharmaceutical, and medical devices. The latter two each generate more revenue annually than several of the other healthcare stocks on our list.
J&J's biggest growth driver is its pharmaceutical segment. In 2018, 11 drugs generated sales of more than $1 billion, including Imbruvica, a cancer drug J&J co-markets with AbbVie. Imbruvica is predicted to be the fifth-biggest blockbuster drug in the world by 2024, according to EvaluatePharma. In addition to Imbruvica, there's multiple myeloma drug Darzalex, immunology drugs Stelara and Tremfya, and pulmonary hypertension drug Uptravi.
J&J's medical devices segment is the healthcare giant's second-biggest moneymaker. This segment markets a wide range of products, including contact lenses, diabetes care products, hip and knee replacement implants, and surgical instruments and systems.
Although Johnson & Johnson's consumer segment generates lower revenue than the company's other segments, it markets products that have made J&J a household name. These products include Band-Aid bandages, Benadryl and Zyrtec allergy medications, Listerine oral care products, Motrin and Tylenol pain relievers, and beauty brands Aveeno and Neutrogena.
2. Pfizer
Pfizer comes in at a relatively distant No. 2 position behind Johnson & Johnson. However, Pfizer's pharmaceutical focus makes it the largest drugmaker in the world. The company is organized into two business segments: innovative health and essential health.
Innovative health focuses on developing and commercializing novel medicines and vaccines in the branded prescription drug market, as well as products for consumer healthcare.
The company's current lineup includes 10 products that delivered sales of at least $1 billion in 2018. Pfizer's top-selling product is its Prevnar 13 pneumococcal vaccine. The drugs generating the fastest growth for the company include anticoagulant Eliquis (which Pfizer co-markets with Bristol-Myers Squibb), breast cancer drug Ibrance, and immunology drug Xeljanz.
Pfizer's essential health segment includes several different business units. The segment's biggest focus is on older brands that have lost or will soon lose market exclusivity. The essential health segment also markets generic drugs and sterile injectable products, biosimilars, and some branded products such as anti-infectives.
3. UnitedHealth Group
While UnitedHealth Group is the third-largest healthcare stock, it's also the world's largest health insurer. The company has four business segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.
The company's health insurance segment, UnitedHealthcare, generates 80% of UnitedHealth Group's total revenue and nearly half its total earnings. This segment sells products in the individual and group health insurance markets as well as offering Medicare Advantage, Medicare supplement (also known as Medigap), Medicare Part D, and Medicaid managed care plans.
But UnitedHealth Group's OptumHealth segment is delivering the fastest revenue growth for the company. OptumHealth offers population health services including consumer preventive care and health intervention programs. It also operates a financial services business that manages health savings accounts and processes digital medical payments to healthcare providers.
OptumInsight provides healthcare technology consulting and services including population health and risk analytics, claims editing technology, and revenue cycle management solutions.
The company's OptumRx segment ranks as one of the largest pharmacy benefits managers (PBMs) in the world. OptumRx manages a network of more than 67,000 retail pharmacies plus home delivery, specialty, and compounding pharmacies (which create particular pharmaceutical products to fit the unique needs of patients).
4. Merck
Merck focuses primarily on developing prescription drugs and vaccines. However, it also runs a multibillion-dollar animal health business.
The company's pharmaceutical segment contributes nearly 90% of Merck's total revenue. Cancer immunotherapy Keytruda is by far the top product for the segment. The drug appears to be on track to become the world's biggest blockbuster over the next few years.
Merck's current product lineup also includes five other blockbuster products: diabetes drug Januvia, vaccines Gardasil and ProQuad/M-M-R II/Varivax, cardiovascular drug Zetia, and HIV drug Isentress. In addition, Merck has several other approved drugs that could make $1 billion or more annually within the next few years.
The company's animal health segment markets products for livestock and pets. Livestock products include antibiotics and vaccines for cattle, swine, and fish. Merck's pet products include flea and tick treatments, diabetes drugs, and vaccines for dogs and cats, as well as fertility drugs and vaccines for horses.
5. Novartis
Swiss healthcare giant Novartis had three business segments until April 2019. The company's spin-off of its Alcon eye-care business into a stand-alone entity left Novartis with two segments: innovative medicines and Sandoz.
Novartis' innovative medicines segment focuses on developing and marketing branded prescription medicines. This segment claims 15 drugs that were blockbusters in 2018, including multiple sclerosis drug Gilenya, immunology drug Cosentyx, and age-related macular degeneration (AMD) drug Lucentis.
More blockbusters could be on the way. Myelofibrosis drug Jakafi came close to raking in $1 billion in 2018 and should exceed the sales level in 2019. Zolgensma, the gene therapy Novartis picked up with its acquisition of AveXis that carries a price tag of $2.1 million, is also likely to become a blockbuster success over the next few years.
Novartis' Sandoz division specializes in generic drugs, anti-infectives, and biosimilars. Sandoz partnered with Canadian cannabis producer Tilray to develop and market medical cannabis products for sale in global markets.
6. Abbott Laboratories
Abbott Laboratories would have ranked even higher on this list of the biggest healthcare stocks a few years ago. In 2013, the company spun off AbbVie as a stand-alone business. AbbVie nearly made the top 10 list of biggest healthcare stocks itself.
Today, Abbott Labs operates its business in four segments: established pharmaceutical products, diagnostic products, nutritional products, and cardiovascular and neuromodulation products. The largest by revenue is the cardiovascular and neuromodulation products segment, which includes rhythm management, electrophysiology, heart failure, and structural heart devices along with neuromodulation devices for managing chronic pain and movement disorders.
Abbott's diagnostic segment is its second largest, making most of its money from selling core laboratory systems, including its Alinity line of lab instruments and assays used for screening and diagnosing various diseases, and from marketing rapid diagnostics products for respiratory illnesses, HIV, and tropical diseases.
The company's nutritional segment isn't too far behind the diagnostic segment in total revenue. The segment markets a variety of products, including Similac infant formula and Ensure and PediaSure nutrition shakes.
Abbott's established pharmaceuticals products segment sells a broad line of branded generic drugs including anti-inflammatory pain reliever Brufen and pancreatic enzyme replacement therapy Creon.
One of Abbott's biggest winners isn't included in any of these segments. Sales continue to soar for the company's Freestyle Libre continuous glucose monitoring (CGM) system, jumping 70% year over year to $379 million in the first quarter of 2019. Freestyle Libre's success makes Abbott one of the top companies in the diabetes care market, although several other companies also offer CGM systems.
7. Medtronic
Medtronic is one of the largest medical technology companies in the world. The company has four business segments: cardiac and vascular, minimally invasive therapies, restorative therapies, and diabetes.
Around 38% of Medtronic's total revenue is generated by its cardiac and vascular segment. This segment develops and sells products including pacemakers, cardiac monitoring systems, heart stents, aortic valves, and angioplasty balloons.
Minimally invasive therapies is Medtronic's second most lucrative segment, marketing products including surgical staples, meshes used in hernia repair, gastrointestinal ablation systems, and catheters used in dialysis.
Medtronic's restorative therapies segment is third in terms of revenue generation. This segment sells products including bone grafts, plates and spacers used to treat spine issues, and neurostimulators. Thanks to the company's acquisition in 2018 of Mazor Robotics, Medtronic is also a leader in robotic surgical systems.
The company's diabetes segment develops and markets products for managing type 1 and type 2 diabetes. Top products include the MiniMed insulin pump and the Guardian Connect CGM system.
8. Thermo Fisher Scientific
Thermo Fisher Scientific is a leader in the life sciences industry. Its customer base includes more than 400,000 organizations including biotechs, government agencies, hospitals, labs, and universities. Thermo Fisher Scientific is organized into four business segments: life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services.
The company's laboratory products and services segment contributes more than 40% of Thermo Fisher's total revenue. This segment offers nearly everything a lab might need, including freezers, centrifuges, meters, ovens, pipettes and other containers, chemicals, solvents, and reagents.
Thermo Fisher's life sciences solutions segment sells reagents, instruments, and consumables used in biological and medical research. It's also a leader in gene research with its next-generation sequencing (NGS) technology and genetic analyzers. In addition, the segment offers products and services that help drugmakers develop biologic drugs and vaccines.
The analytical instruments segment focuses on marketing instruments including chromatography and spectrometry systems, chemical production line process monitoring systems, radiation measurement systems, and electron microscopes. Thermo Fisher hoped to boost its electron microscope business by acquiring Roper Technologies subsidiary Gatan. However, the company threw in the towel on the acquisition in June 2019 because of antitrust concerns by regulators in the United Kingdom.
The company's specialty diagnostics segment sells a variety of diagnostics products, including immunodiagnostic reagent kits, drugs-of-abuse immunoassays, and analyzers and reagents used to measure glucose and cholesterol levels.
9. Amgen
Amgen ranks as one of the 10 biggest biotech stocks on the market as well as one of the largest healthcare stocks. Unlike the other biggest healthcare companies, Amgen only has one business segment.
The company's current product lineup includes seven blockbuster drugs, but sales for several of its top-selling drugs are declining. Immunology drug Enbrel faces stiff competition in the U.S., while bone marrow stimulant Neulasta and anemia drug Epogen are losing market share to biosimilar rivals. Sales for Amgen's other anemia drug, Aranesp, are also threatened by Epogen biosimilars.
But Amgen still has several drugs for which sales continue to climb. In particular, osteoporosis drug Prolia remains a big winner for the biotech. Multiple myeloma drug Kyprolis appears to be on track to become a blockbuster. Amgen's leukemia drug Blincyto and migraine drug Aimovig (which the company co-markets with Novartis) could also generate sales of at least $1 billion in the future.
Amgen could help offset the declining sales for some of its top drugs by making acquisitions. The company generates strong free cash flow and has a big cash stockpile, providing it with ample flexibility should it decide to buy one or more smaller biotechs.
10. Eli Lilly
Eli Lilly narrowly beats out several other healthcare stocks to take the last spot in our top 10 list. The company likely would have ranked higher prior to September 2018, when it spun off Elanco Animal Health.
Eli Lilly now focuses solely on developing drugs for humans. The company is a leader in the diabetes drug market with blockbusters Trulicity, Humalog, and Humulin. Sales are growing quickly for two other diabetes drugs, Basaglar and Jardiance.
Outside of the diabetes arena, Eli Lilly's fastest-rising star is psoriasis and psoriatic arthritis drug Taltz. But Eli Lilly's oncology lineup isn't performing quite as well. Sales are rising for cancer drugs Cyramza and Verzenio. However, the company's chemotherapies Alimta and Erbitux aren't delivering much if any sales growth.
The drugmaker could have another big winner in the not-too-distant future. Eli Lilly's acquisition of Loxo Oncology in early 2019 brought Vitrakvi into its lineup. The cancer drug could bring in $1 billion annually by 2024.
Risks for these big healthcare stocks
All of these big healthcare stocks face significant risks to their businesses. The possibility that the U.S. could adopt a single-payer healthcare system poses a threat to UnitedHealth Group especially. But the other stocks on the list could also be negatively impacted if massive changes are made to the U.S. healthcare system.
Perhaps an even more likely change will be in how drugmakers set prices for their drugs. It's possible that pharmaceutical companies could have to negotiate with Medicare on drug prices or even be limited to setting U.S. drug prices based on the lowest prices charged in other countries. These changes would negatively impact J&J, Pfizer, Merck, Novartis, Abbott, Amgen, and Eli Lilly.
Several of the 10 biggest healthcare stocks could see their sales slow or even decline as a result of biosimilar and generic competition. Pfizer, for example, will almost certainly experience a sales slump now that Lyrica has lost exclusivity.
Each of these stocks also could be hurt by regulatory setbacks. Prospects for the drugmakers on the list could be affected by pipeline failures.
Healthcare companies often face litigation. Product liability is a big concern with drugs, medical devices, and other products and services that affect customers' health. Johnson & Johnson, for example, faces around 4,500 lawsuits related to allegations of asbestos in its talc products.
The good news, though, is that all of these healthcare stocks generate solid cash flow and should be able to make it past any temporary challenges. There's an advantage in being big.
Why buy healthcare stocks?
Despite the risks, buying healthcare stocks should still be a good strategy for long-term investors. The aging demographic trends are unstoppable. But some healthcare stocks are better picks than others.
Abbott Labs appears to be perhaps the strongest stock overall on the list of top 10 healthcare stocks. The company's new products should help Abbott to deliver double-digit earnings growth. Abbott's solid dividend will boost the stock's total return even more. In addition, Abbott is diversified across multiple areas of healthcare, reducing its exposure to political risks related to drug pricing.
Remember, too, that there are hundreds of healthcare stocks that aren't in the top 10. Smaller healthcare stocks might have higher levels of risk, but they also often present even greater opportunities for growth.
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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's established pharmaceuticals products segment sells a broad line of branded generic drugs including anti-inflammatory pain reliever Brufen and pancreatic enzyme replacement therapy Creon. Minimally invasive therapies is Medtronic's second most lucrative segment, marketing products including surgical staples, meshes used in hernia repair, gastrointestinal ablation systems, and catheters used in dialysis. Thermo Fisher Scientific is organized into four business segments: life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services. | Abbott's established pharmaceuticals products segment sells a broad line of branded generic drugs including anti-inflammatory pain reliever Brufen and pancreatic enzyme replacement therapy Creon. Thermo Fisher Scientific is organized into four business segments: life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services. The analytical instruments segment focuses on marketing instruments including chromatography and spectrometry systems, chemical production line process monitoring systems, radiation measurement systems, and electron microscopes. | Merck's current product lineup also includes five other blockbuster products: diabetes drug Januvia, vaccines Gardasil and ProQuad/M-M-R II/Varivax, cardiovascular drug Zetia, and HIV drug Isentress. This segment claims 15 drugs that were blockbusters in 2018, including multiple sclerosis drug Gilenya, immunology drug Cosentyx, and age-related macular degeneration (AMD) drug Lucentis. The company's current product lineup includes seven blockbuster drugs, but sales for several of its top-selling drugs are declining. | Here's what you'll want to know about the biggest healthcare stocks on the market right now. What are the biggest healthcare stocks in 2019? In addition, the segment offers products and services that help drugmakers develop biologic drugs and vaccines. |
32963.0 | 2019-07-10 00:00:00 UTC | Ex-Dividend Reminder: Becton, Dickinson, Abbott Laboratories and AbbVie | ABT | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-becton-dickinson-abbott-laboratories-and-abbvie-2019-07-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 7/12/19, Becton, Dickinson & Co (Symbol: BDXA), Abbott Laboratories (Symbol: ABT), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 8/1/19, Abbott Laboratories will pay its quarterly dividend of $0.32 on 8/15/19, and AbbVie Inc will pay its quarterly dividend of $1.07 on 8/15/19. As a percentage of BDXA's recent stock price of $62.27, this dividend works out to approximately 1.23%, so look for shares of Becton, Dickinson & Co to trade 1.23% lower — all else being equal — when BDXA shares open for trading on 7/12/19. Similarly, investors should look for ABT to open 0.37% lower in price and for ABBV to open 1.49% lower, all else being equal.
Below are dividend history charts for BDXA, ABT, and ABBV, showing historical dividends prior to the most recent ones declared.
Becton, Dickinson & Co (Symbol: BDXA):
Abbott Laboratories (Symbol: ABT):
AbbVie Inc (Symbol: ABBV):
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 4.92% for Becton, Dickinson & Co, 1.49% for Abbott Laboratories, and 5.98% for AbbVie Inc.
In Wednesday trading, Becton, Dickinson & Co shares are currently up about 0.3%, Abbott Laboratories shares are up about 0.5%, and AbbVie 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. | Looking at the universe of stocks we cover at Dividend Channel, on 7/12/19, Becton, Dickinson & Co (Symbol: BDXA), Abbott Laboratories (Symbol: ABT), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABT to open 0.37% lower in price and for ABBV to open 1.49% lower, all else being equal. Below are dividend history charts for BDXA, ABT, and ABBV, showing historical dividends prior to the most recent ones declared. | Looking at the universe of stocks we cover at Dividend Channel, on 7/12/19, Becton, Dickinson & Co (Symbol: BDXA), Abbott Laboratories (Symbol: ABT), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co (Symbol: BDXA): Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABT to open 0.37% lower in price and for ABBV to open 1.49% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 7/12/19, Becton, Dickinson & Co (Symbol: BDXA), Abbott Laboratories (Symbol: ABT), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co (Symbol: BDXA): Abbott Laboratories (Symbol: ABT): AbbVie Inc (Symbol: ABBV): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for ABT to open 0.37% lower in price and for ABBV to open 1.49% lower, all else being equal. | Looking at the universe of stocks we cover at Dividend Channel, on 7/12/19, Becton, Dickinson & Co (Symbol: BDXA), Abbott Laboratories (Symbol: ABT), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for ABT to open 0.37% lower in price and for ABBV to open 1.49% lower, all else being equal. Below are dividend history charts for BDXA, ABT, and ABBV, showing historical dividends prior to the most recent ones declared. |
32964.0 | 2019-07-10 00:00:00 UTC | Insiders Bullish on Certain Holdings of DLN | ABT | https://www.nasdaq.com/articles/insiders-bullish-on-certain-holdings-of-dln-2019-07-10 | nan | nan | A look at the weighted underlying holdings of the WisdomTree U.S. LargeCap Dividend Fund (DLN) shows an impressive 10.2% of holdings on a weighted basis have experienced insider buying within the past six months.
Abbott Laboratories (Symbol: ABT), which makes up 0.48% of the WisdomTree U.S. LargeCap Dividend Fund (DLN), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $10,280,625 worth of ABT, making it the #52 largest holding. The table below details the recent insider buying activity observed at ABT:
ABT — last trade: $85.27 — Recent Insider Buys:
And Keurig Dr Pepper Inc (Symbol: KDP), the #139 largest holding among components of the WisdomTree U.S. LargeCap Dividend Fund (DLN), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $3,614,846 worth of KDP, which represents approximately 0.17% of the ETF's total assets at last check. The recent insider buying activity observed at KDP is detailed in the table below:
KDP — last trade: $29.39 — Recent Insider Buys:
10 ETFs With Stocks That Insiders 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. | Abbott Laboratories (Symbol: ABT), which makes up 0.48% of the WisdomTree U.S. LargeCap Dividend Fund (DLN), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $85.27 — Recent Insider Buys: And Keurig Dr Pepper Inc (Symbol: KDP), the #139 largest holding among components of the WisdomTree U.S. LargeCap Dividend Fund (DLN), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $10,280,625 worth of ABT, making it the #52 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 0.48% of the WisdomTree U.S. LargeCap Dividend Fund (DLN), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $85.27 — Recent Insider Buys: And Keurig Dr Pepper Inc (Symbol: KDP), the #139 largest holding among components of the WisdomTree U.S. LargeCap Dividend Fund (DLN), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $10,280,625 worth of ABT, making it the #52 largest holding. | The table below details the recent insider buying activity observed at ABT: ABT — last trade: $85.27 — Recent Insider Buys: And Keurig Dr Pepper Inc (Symbol: KDP), the #139 largest holding among components of the WisdomTree U.S. LargeCap Dividend Fund (DLN), shows 5 directors and officers as recently filing Form 4's indicating purchases. Abbott Laboratories (Symbol: ABT), which makes up 0.48% of the WisdomTree U.S. LargeCap Dividend Fund (DLN), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $10,280,625 worth of ABT, making it the #52 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 0.48% of the WisdomTree U.S. LargeCap Dividend Fund (DLN), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $10,280,625 worth of ABT, making it the #52 largest holding. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $85.27 — Recent Insider Buys: And Keurig Dr Pepper Inc (Symbol: KDP), the #139 largest holding among components of the WisdomTree U.S. LargeCap Dividend Fund (DLN), shows 5 directors and officers as recently filing Form 4's indicating purchases. |
32965.0 | 2019-07-09 00:00:00 UTC | How Much Can Intuitive Surgical's System Revenue Grow Over The Next Three Years? | ABT | https://www.nasdaq.com/articles/how-much-can-intuitive-surgicals-system-revenue-grow-over-the-next-three-years-2019-07-10 | nan | nan | Intuitive Surgical (NASDAQ:ISRG) manufactures and sells robotic surgical systems. Its primary device is the da Vinci Surgical System, which helps surgeons perform minimally invasive surgeries through directions from a console. The company has a significant patent portfolio and currently faces little direct competition in the robotic surgery market. Some of its potential competitors are Auris Health, which was recently acquired by Johnson & Johnson, and Mazor Robotics, which was acquired by Medtronic last year. The da Vinci systems’ revenue could grow from $1.13 billion in 2018 to around $1.50 billion in 2021, led by an expansion of procedures, according to Trefis estimates. Look at our interactive dashboard analysis ~ How Much Can Intuitive Surgical’s System Revenue Grow By 2021? ~ for more details on the expected performance of the company. In addition, you can see more of our data for healthcare companies here.
da Vinci Systems’ Sales Have Grown In High Teens On Average In The Recent Years
Intuitive Surgical’s da Vinci systems revenue grew from $800 million in 2016 to $1.13 billion in 2018, reflecting average annual growth of around 19%.
This can be attributed to an uptick in overall demand for robotic surgical systems, given the associated advantages, including minimally invasive process, reduced surgical complications, and easier post-surgery recovery process.
Sales Will Likely Continue To Trend Higher In The Near Term, Albeit At A Slower Pace
Systems revenue could grow from $1.13 billion in 2018 to around $1.50 billion in 2021.
This growth will likely be led by an increase in number of units sold, while the average revenue per unit could hover around $1.20 million.
Growth in units sold can primarily be attributed to expansion of procedures, which has aided the growth in the near term.
The most common procedure was gynecology over the last few years. However, the wider adoption of other procedures is aiding the growth.
Higher System Sales Has Resulted In Continued Growth In The Company’s Installed Base, Which Further Aids The Revenue Growth For Other Segments
The company’s installed base has grown from less than 4,000 units in 2016 to a little under 5,000 units in 2018, and it can grow to north of 6,000 units by 2021.
This reflects a high single-digit growth rate in the coming years.
The growth in installed base impacts the company’s service revenues, as well as instruments & accessories business.
da Vinci Systems Account For Close To 30% of Intuitive Surgical’s Total Sales
Intuitive Surgical generates its revenue from three sources ~ sales of da Vinci systems, sales of instruments & accessories, and the service business.
The da Vinci system accounted for 29% of the company’s total sales in 2016.
This figure increased to 30% in 2018.
However, it could decline slightly to 29% in the coming years, as the growth in overall installed base, aids the other two segments’ growth.
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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 primary device is the da Vinci Surgical System, which helps surgeons perform minimally invasive surgeries through directions from a console. The company has a significant patent portfolio and currently faces little direct competition in the robotic surgery market. The growth in installed base impacts the company’s service revenues, as well as instruments & accessories business. | da Vinci Systems’ Sales Have Grown In High Teens On Average In The Recent Years Intuitive Surgical’s da Vinci systems revenue grew from $800 million in 2016 to $1.13 billion in 2018, reflecting average annual growth of around 19%. Higher System Sales Has Resulted In Continued Growth In The Company’s Installed Base, Which Further Aids The Revenue Growth For Other Segments The company’s installed base has grown from less than 4,000 units in 2016 to a little under 5,000 units in 2018, and it can grow to north of 6,000 units by 2021. da Vinci Systems Account For Close To 30% of Intuitive Surgical’s Total Sales Intuitive Surgical generates its revenue from three sources ~ sales of da Vinci systems, sales of instruments & accessories, and the service business. | da Vinci Systems’ Sales Have Grown In High Teens On Average In The Recent Years Intuitive Surgical’s da Vinci systems revenue grew from $800 million in 2016 to $1.13 billion in 2018, reflecting average annual growth of around 19%. Higher System Sales Has Resulted In Continued Growth In The Company’s Installed Base, Which Further Aids The Revenue Growth For Other Segments The company’s installed base has grown from less than 4,000 units in 2016 to a little under 5,000 units in 2018, and it can grow to north of 6,000 units by 2021. da Vinci Systems Account For Close To 30% of Intuitive Surgical’s Total Sales Intuitive Surgical generates its revenue from three sources ~ sales of da Vinci systems, sales of instruments & accessories, and the service business. | Its primary device is the da Vinci Surgical System, which helps surgeons perform minimally invasive surgeries through directions from a console. da Vinci Systems’ Sales Have Grown In High Teens On Average In The Recent Years Intuitive Surgical’s da Vinci systems revenue grew from $800 million in 2016 to $1.13 billion in 2018, reflecting average annual growth of around 19%. Higher System Sales Has Resulted In Continued Growth In The Company’s Installed Base, Which Further Aids The Revenue Growth For Other Segments The company’s installed base has grown from less than 4,000 units in 2016 to a little under 5,000 units in 2018, and it can grow to north of 6,000 units by 2021. |
32966.0 | 2019-07-04 00:00:00 UTC | How Does Medtronic's Diabetes Care Business Compare To Its Peers? | ABT | https://www.nasdaq.com/articles/how-does-medtronics-diabetes-care-business-compare-to-its-peers-2019-07-04 | nan | nan | Medtronic’s (NYSE:MDT) diabetes care business could grow in high-single-digits from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021, according to Trefis estimates. This growth will likely be led by expansion of MiniMed product line in international markets, and continued demand in the U.S. In this analysis, we compare Medtronic’s growth in diabetes care business vis-à-vis its primary competitors and provide an outlook of the future course of business. You can view our interactive dashboard analysis ~ How Does Medtronic’s Diabetes Care Business Compare To Its Peers? ~ for more details. In addition, you can see more of our data for Healthcare companies here.
Medtronic’s Diabetes Care Business Has Grown At A Faster Pace Than That of Abbott’s And Roche’s But Slower Than That of DexCom
Medtronic’s diabetes care sales grew at an average annual rate of 8.0% from $1.8 billion in fiscal 2015 to $2.4 billion in fiscal 2019.
This compares with Roche’s average annual decline of 6.1% from $2.6 billion in 2014 to $2.0 billion in 2018.
Abbott’s estimated diabetes care revenue grew at a CAGR of 7.4% from $1.6 billion in 2014 to $2.0 billion in 2018.
DexCom saw the fastest growth with sales growing at a CAGR of 42.0% from $257 million in 2014 to north of $1 billion in 2018.
Medtronic’s Share In Diabetes Care Market Has Been Stable, And It Would Likely Remain So In The Coming Years
Combined diabetes care revenues for Medtronic, DexCom, Roche, and Abbott grew at an average annual rate of 4.5% from $6.1 billion in 2014 to $7.2 billion in 2018.
Medtronic’s share has grown from around 27% in 2014 to 30% in 2018, as it saw growth at a faster pace than the overall market during the same period.
Looking forward, Medtronic should be able to hold to its 30% share over the next few years, led by continued growth in its MiniMed systems.
Medtronic’s Diabetes Care Sales Could Grow In High Single-Digits In The Near Term
Medtronic’s diabetes care sales could grow from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021.
This growth will primarily be led by its MiniMed 670G hybrid closed loop system, and Guardian Connect, which are seeing strong demand in the U.S., and the company is expanding the products in international markets.
670G is the world’s first hybrid closed loop system that optimizes glycemic control for patients with type 1 diabetes.
Guardian Connect is a continuous glucose monitoring system designed for people on insulin injections. It can be connected with apps on mobile phones and predict and alert about highs and lows of glucose levels. The company expects it to be a long term revenue stream.
Diabetes Is A Relatively Smaller Revenue Stream For Medtronic With Only 8% Contribution To The Company’s Top Line
Medtronic’s diabetes revenues accounted for 10% of the company’s total revenues in fiscal 2014.
The figure declined to 6.5% in fiscal 2016, but grew thereafter to 7.8% in fiscal 2019.
It should continue to grow to over 8.5% by 2021, in our view. This can be attributed to faster expected growth in the company’s diabetes sales, as compared to its overall sales.
However, Guardian Connect competes with the likes of DexCom’s G5, and Abbott’s popular FreeStyle Libre CGMs.
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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 growth will likely be led by expansion of MiniMed product line in international markets, and continued demand in the U.S. This growth will primarily be led by its MiniMed 670G hybrid closed loop system, and Guardian Connect, which are seeing strong demand in the U.S., and the company is expanding the products in international markets. 670G is the world’s first hybrid closed loop system that optimizes glycemic control for patients with type 1 diabetes. | Medtronic’s Diabetes Care Business Has Grown At A Faster Pace Than That of Abbott’s And Roche’s But Slower Than That of DexCom Medtronic’s diabetes care sales grew at an average annual rate of 8.0% from $1.8 billion in fiscal 2015 to $2.4 billion in fiscal 2019. Medtronic’s Share In Diabetes Care Market Has Been Stable, And It Would Likely Remain So In The Coming Years Combined diabetes care revenues for Medtronic, DexCom, Roche, and Abbott grew at an average annual rate of 4.5% from $6.1 billion in 2014 to $7.2 billion in 2018. Medtronic’s Diabetes Care Sales Could Grow In High Single-Digits In The Near Term Medtronic’s diabetes care sales could grow from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021. | Medtronic’s Diabetes Care Business Has Grown At A Faster Pace Than That of Abbott’s And Roche’s But Slower Than That of DexCom Medtronic’s diabetes care sales grew at an average annual rate of 8.0% from $1.8 billion in fiscal 2015 to $2.4 billion in fiscal 2019. Medtronic’s Share In Diabetes Care Market Has Been Stable, And It Would Likely Remain So In The Coming Years Combined diabetes care revenues for Medtronic, DexCom, Roche, and Abbott grew at an average annual rate of 4.5% from $6.1 billion in 2014 to $7.2 billion in 2018. Medtronic’s Diabetes Care Sales Could Grow In High Single-Digits In The Near Term Medtronic’s diabetes care sales could grow from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021. | Medtronic’s (NYSE:MDT) diabetes care business could grow in high-single-digits from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021, according to Trefis estimates. You can view our interactive dashboard analysis ~ How Does Medtronic’s Diabetes Care Business Compare To Its Peers? Medtronic’s Diabetes Care Sales Could Grow In High Single-Digits In The Near Term Medtronic’s diabetes care sales could grow from $2.4 billion in fiscal 2019 to $2.8 billion in fiscal 2021. |
32967.0 | 2019-06-26 00:00:00 UTC | IOO, MCD, ABT, AMT: ETF Outflow Alert | ABT | https://www.nasdaq.com/articles/ioo-mcd-abt-amt%3A-etf-outflow-alert-2019-06-26 | 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 100 ETF (Symbol: IOO) where we have detected an approximate $94.8 million dollar outflow -- that's a 4.6% decrease week over week (from 42,650,000 to 40,700,000). Among the largest underlying components of IOO, in trading today McDonald's Corp (Symbol: MCD) is down about 0.5%, Abbott Laboratories (Symbol: ABT) is down about 1.7%, and American Tower Corp (Symbol: AMT) is lower by about 1.7%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average:
Looking at the chart above, IOO's low point in its 52 week range is $40.25 per share, with $49.73 as the 52 week high point — that compares with a last trade of $48.77. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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 IOO, in trading today McDonald's Corp (Symbol: MCD) is down about 0.5%, Abbott Laboratories (Symbol: ABT) is down about 1.7%, and American Tower Corp (Symbol: AMT) is lower by about 1.7%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $40.25 per share, with $49.73 as the 52 week high point — that compares with a last trade of $48.77. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IOO, in trading today McDonald's Corp (Symbol: MCD) is down about 0.5%, Abbott Laboratories (Symbol: ABT) is down about 1.7%, and American Tower Corp (Symbol: AMT) is lower by about 1.7%. For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $40.25 per share, with $49.73 as the 52 week high point — that compares with a last trade of $48.77. 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 IOO, in trading today McDonald's Corp (Symbol: MCD) is down about 0.5%, Abbott Laboratories (Symbol: ABT) is down about 1.7%, and American Tower Corp (Symbol: AMT) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global 100 ETF (Symbol: IOO) where we have detected an approximate $94.8 million dollar outflow -- that's a 4.6% decrease week over week (from 42,650,000 to 40,700,000). For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $40.25 per share, with $49.73 as the 52 week high point — that compares with a last trade of $48.77. | Among the largest underlying components of IOO, in trading today McDonald's Corp (Symbol: MCD) is down about 0.5%, Abbott Laboratories (Symbol: ABT) is down about 1.7%, and American Tower Corp (Symbol: AMT) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global 100 ETF (Symbol: IOO) where we have detected an approximate $94.8 million dollar outflow -- that's a 4.6% decrease week over week (from 42,650,000 to 40,700,000). For a complete list of holdings, visit the IOO Holdings page » The chart below shows the one year price performance of IOO, versus its 200 day moving average: Looking at the chart above, IOO's low point in its 52 week range is $40.25 per share, with $49.73 as the 52 week high point — that compares with a last trade of $48.77. |
32968.0 | 2019-06-25 00:00:00 UTC | 3 Biopharma Stocks to Buy for Income | ABT | https://www.nasdaq.com/articles/3-biopharma-stocks-to-buy-for-income-2019-06-25 | nan | nan | Many investors are increasingly looking to generate safe income from dividend stocks. In general, big blue-chip stocks tend to be consistently generous dividend payers. And biopharma companies — when they’re established enough to offer payouts — have traditionally been seen as relatively safe dividend investments. Therefore, today I’d like to discuss the outlook for three such stocks, namely GlaxoSmithKline (NYSE:), AbbVie (NYSE:), and Johnson & Johnson (NYSE:).
Despite competitive pressures from other big pharma and biotech companies, GSK, ABBV, and JNJ stocks have strong balance sheets, proactive management and several important drugs in the pipeline that are likely to keep them ahead of the competition. Furthermore, all three companies offer healthy dividend yields that will provide strong support for their respective stock prices in the months ahead.
No investor has a crystal ball that can predict the markets’ next move with certainty, but with increased levels of volatility in broader markets, now could be an appropriate time to become a little defensive. Therefore, mega-cap healthcare stocks may be suit diversified portfolios.
However, investment risk and return go together, and any of these three biopharma stocks may suffer a setback later in 2019. In addition to potential company-specific issues, one industry concern is that the U.S. government may increase its drug pricing regulations.
Both President Trump and other politicians on both sides of the aisle have openly for the ever growing prescription prices and the effect on Medicare budget. Therefore, if the U.S. political discourse turns against the sector more, these stocks may experience further volatility.
With all of that said, let’s take a closer look at these high-yield, discounted stocks to buy.
GlaxoSmithKline (GSK)
Source: Shutterstock
When short-term volatility increases in the broader markets, I look for companies that offer fundamental value and growth potential, as well as proven stability. Overall, GSK stock fits the criteria well.
Despite management’s efforts to boost the company’s , since 2014, GlaxoSmithKline shares have not done much for investors. Year-to-date, GSK stock is up 5.5%.
The lackluster performance of GSK shares was mostly because its pharmaceutical business lagged other big pharma rivals in offering blockbuster drugs. However, management has been focusing on developing strong assets for GSK’s pipeline. For example, the “immune system” space, which gives the company pricing power, is now getting a higher share of GlaxoSmithKline’s research and development (R&D) budget. The company is also a global leader in respiratory diseases.
Furthermore, I am excited about the late-2018 between GSK and Pfizer (NYSE:), which will create a leader in over-the-counter (OTC) products. The two companies will spinoff their consumer healthcare brands in a new venture of which GSK will own 68% and contribute with its top brands, including Theraflu, Sensodyne and Voltaren. I expect this new company to be a winner for the investors.
Over the past two years, the political discourse in the U.K. on Brexit has increased the volatility of British companies and their stock prices. Although a potential no-deal Brexit could affect GSK with a broader UK-wide market decline, I believe most of the bad news regarding Brexit is already baked into GSK share price.
Going forward, Brexit is not likely to have a major negative impact on GlaxoSmithKline’s business model or its stock price.
GSK’s latest earnings release on showed a strong balance sheet as the group reported better-than-expected Q1 2019 revenue. Earnings per share of 79 cents was 13 cents above consensus. Management also gave positive outlook for the rest of the year.
GSK’s main segments are:
GlaxoSmithKline’s global dominance in two of these segments ensures a higher degree of predictability in cash flow.
Analysts also welcomed the fact that sales of Shingrix, GSK’s fast-growing shingles vaccine, was up 61.5% from the previous quarter. Nucala, a respiratory drug, also showed 41% year-over-year (YoY) sales growth. Furthermore, GlaxoSmithKline has enjoyed solid growth in its influenza and meningitis vaccines. Analysts have strong performance expectation of the HIV newcomer Juluca.
Due to its rock-solid dividend, which stands at over 5.1%, and its robust growth potential, GSK stock belongs in any balanced portfolio of healthcare stocks. During theearnings call CFO Iain MacKay reaffirmed the pharma giant’s projected dividend for 2019.
GSK stock may continue to trade sideways during the rest of 2019. However, patient GSK bulls will probably be proven right to believe in the management’s commitment to create shareholder value and to further grow the company. In the meantime, they can continue to collect high dividends.
AbbVie (ABBV)
Source: Shutterstock
AbbVie is a $115-billion-market-cap biopharma stock, but shares have been in a downtrend for almost a year, especially following the earnings report on April 25.
In 2013, Abbott Laboratories (NYSE:) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. Abbott decided to retain the branded generic pharmaceuticals, diagnostics, medical devices and nutrition.
Meanwhile, AbbVie took control of the development and commercialization of , including Humira, its flagship drug used to treat autoimmune diseases, Imbruvica, which differentiates between cancer cells and regular cells, and Synthroid, a replacement for a hormone normally produced by the thyroid gland. The company’s financials and growth metrics over the past five years have been impressive. During its short life since the spin off, AbbVie stock has delivered consistently growing revenues and free cash flows.
In other words, ABBV stock was in a strong financial position heading into 2019, with hopes of a higher share price during the first quarter. However, year-to-date, the share price is down 15%. This decline has been mostly due to the falling sales of Humira, the world’s bestselling drug that treats rheumatoid arthritis and Crohn’s disease.
International sales of Humira are falling as a result of , which makes up three-quarters of the overseas Humira business. In October 2018, its patent in the European Union expired.
The refers to biosimilars as a drug that is “highly similar to an FDA-approved biological product … [that has] no clinically meaningful differences in terms of safety and effectiveness.”
Although Wall Street had already known about this sales decline in Europe, investors decided to not be exposed to the potential risk from the U.S. sales of Humira. In the U.S., AbbVie has patent protection for Humira .
Many analysts on Wall Street are with the concentration risk that comes from getting such a high level of earnings from a single drug. But other analysts are optimistic that management will continue to grow earnings in double digits through different successful drugs in the pipeline, including Venclexta, Risankizumab and Orilissa.
It is important to emphasize that AbbVie’s revenue from the drug will not decline to nothing when the biosimilars hit the market in 2023. What will most likely happen is that as the company’s pricing power decreases, the revenue will also gradually decline.
Overall ABBV’s recent earnings release showed robust top-line growth, a strong pipeline of existing and new drugs. At present, AbbVie’s other major products include:
Creon, a pancreatic enzyme therapy to treat exocrine pancreatic insufficiency.
Viekira Pak, which treats chronic hepatitis C.
Management has been increasing its R&D budget each year. Analysts are also expecting in 2020, such as next-generation immunology drugs. These drugs and others that are being developed and commercialized, highlight how impressive the potential growth story could materialize in the next few years.
In some news that just broke today, ABBV has finalized a deal to buy Allergan (NYSE:) for $63 billion. AGN stockholders are elated — the stock is up a mindblowing 25%, but ABBV investors aren’t taking to the deal well. ABBV has plummeted 16% on the day.
Currently, the main calling card for AbbVie stock is , which stands at about 5.4%. Since its spinoff from Abbott Laboratories, ABBV has increased dividends every year — a trend that is likely to continue. Its next dividend payment is on Aug. 15. In other words, the short-term headwinds regarding the sales of Humira and the AGN merger are also creating long-term buying opportunities now. I’d personally view today’s movement as a discount.
Johnson & Johnson (JNJ)
Source: Shutterstock
With a market cap of $377 billion, Johnson & Johnson, the healthcare giant, is currently . The group builds its moat by investing heavily in its diverse pharmaceutical pipeline. JNJ operates in three segments that provide it with diversified sources of revenue, earnings and cash flow:
Consumer
JNJ’s provides treatments for immunology, cardiovascular and metabolic diseases, pulmonary hypertension, infectious diseases and cancer. The consumer section involves products in baby care, oral care, over-the-counter drugs, personal hygiene and women’s health. Several well-known brands within its consumer division include Aveeno, Band-Aid, Johnson’s Baby, Neutrogena, Rogaine, Tylenol and Zyrtec. JNJ’s medical devices segment develops and markets products and solutions for surgery, orthopedics and vision.
The pharamceutical and medical devices and diagnostics groups bring in about 80% of sales, contributing the majority of cash flows for the firm.
JNJ’s diversification enables the company to withstand economic cycles more effectively. No matter what the economy does, consumers will buy the products of many of these strong brands, and JNJ will have industry-leading market share in many areas. Geographically, the U.S. provides almost half of the revenue.
On April 16, the company reported better-than-expected , as its sales increased to $20.02 billion. JNJ’s earnings per share rose 1.9% to $2.10. Its pharmaceutical business grew 7.9%. Similarly, its medical devices unit grew 4.3% and its consumer sales increased 0.7%. Finally, Johnson & Johnson raised its full-year guidance.
Year-to-date, JNJ stock is up 10%, and I remain bullish on the long-term outlook of Johnson & Johnson shares.
However, in the short-term, investors may take some profits in JNJ stock. As a result of the recent run-up in price, short-term technical indicators have become somewhat overextended. Investors who pay attention to short-term should note that Johnson & Johnson stock has also become “overbought.”
Therefore, JNJ stock might drop towards the $135 level, where the stock is likely to find major support in the coming weeks.
Finally, investors who buy Johnson & Johnson stock now will enjoy a dividend yield of . The conglomerate has raised its dividend each year for over half a century. With its diverse range of products, I think JNJ is likely to continue to be a high-dividend staple stock. And dividends tend to create a “price floor” for stocks during market downturns.
As of this writing, Tezcan Gecgil holds covered calls on GSK (June 28 expiry).
The post 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. | Furthermore, all three companies offer healthy dividend yields that will provide strong support for their respective stock prices in the months ahead. GlaxoSmithKline (GSK) Source: Shutterstock When short-term volatility increases in the broader markets, I look for companies that offer fundamental value and growth potential, as well as proven stability. But other analysts are optimistic that management will continue to grow earnings in double digits through different successful drugs in the pipeline, including Venclexta, Risankizumab and Orilissa. | Despite competitive pressures from other big pharma and biotech companies, GSK, ABBV, and JNJ stocks have strong balance sheets, proactive management and several important drugs in the pipeline that are likely to keep them ahead of the competition. Johnson & Johnson (JNJ) Source: Shutterstock With a market cap of $377 billion, Johnson & Johnson, the healthcare giant, is currently . JNJ operates in three segments that provide it with diversified sources of revenue, earnings and cash flow: Consumer JNJ’s provides treatments for immunology, cardiovascular and metabolic diseases, pulmonary hypertension, infectious diseases and cancer. | Despite competitive pressures from other big pharma and biotech companies, GSK, ABBV, and JNJ stocks have strong balance sheets, proactive management and several important drugs in the pipeline that are likely to keep them ahead of the competition. Due to its rock-solid dividend, which stands at over 5.1%, and its robust growth potential, GSK stock belongs in any balanced portfolio of healthcare stocks. Investors who pay attention to short-term should note that Johnson & Johnson stock has also become “overbought.” Therefore, JNJ stock might drop towards the $135 level, where the stock is likely to find major support in the coming weeks. | AbbVie (ABBV) Source: Shutterstock AbbVie is a $115-billion-market-cap biopharma stock, but shares have been in a downtrend for almost a year, especially following the earnings report on April 25. Since its spinoff from Abbott Laboratories, ABBV has increased dividends every year — a trend that is likely to continue. Finally, investors who buy Johnson & Johnson stock now will enjoy a dividend yield of . |
32969.0 | 2019-06-19 00:00:00 UTC | Is Abbott Laboratories a Buy? | ABT | https://www.nasdaq.com/articles/is-abbott-laboratories-a-buy-2019-06-19 | nan | nan | In the world of investing, sometimes boring is good. Diversified healthcare company Abbott Laboratories (NYSE: ABT) has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. Even though the stock is hitting new highs, is it a buy now?
Abbott Labs split into two companies at the beginning of 2013 when it spun off its research-based pharmaceutical business, which became AbbVie. The rationale for the division was that AbbVie's business would be high-risk and high-reward with high dividends, while Abbott Labs would be a diversified healthcare business not subject to the risks of bringing new drugs to market. The post-spinoff Abbott is a balanced company with four businesses that are all contributing well to the company's growth.
Image source: Getty Images.
Four segments with steady underlying growth
The company's largest segment at 37% of 2018 revenue is medical devices, bolstered by the 2017 acquisition of St. Jude Medical and proving to be the company's strongest source of growth. Abbott Labs' broad portfolio includes pacemakers, implantable heart monitors, mini heart pumps, electrostimulators for the brain and spinal cord, stents, and blood glucose monitors. The segment produced 2018 sales growth of 9.1% on an organic basis -- in other words, excluding the effects of currency, acquisitions, and divestitures.
The diagnostics business delivered 25% of the company's revenue and had 6.7% organic growth. The acquisition of Alere in late 2017 added point-of-care diagnostic instruments, which provide results in minutes, to an existing product forming the core equipment of clinical laboratories.
Providing about 24% of revenue is the company's nutrition business. These are products like Similac infant formula, Ensure nutrition drink, and specialized products to sustain patients with conditions such as diabetes or who are recovering from surgery. Growth in this segment picked up last year thanks to strong sales in Asia and Latin America, with an organic sales increase of 5.2%.
Not all of Abbott's pharmaceutical business went with AbbVie in the split. The established pharmaceuticals business focuses on selling "branded generics" in emerging markets, where the demand for healthcare is expanding as the standard of living increases. This segment was 15% of Abbott's 2018 revenue with a healthy 7% organic growth.
What stands out about Abbott's business segments are the diversification and the balance. No one segment dominates the results, and there's no weak link. All businesses are contributing to growth and profits. Operating margins are consistent between the groups, ranging from 20% in established pharmaceuticals to 32% in medical devices.
Recent results
Put all those businesses together and you get a company that delivers consistent, although perhaps unspectacular, growth. In the most recent quarter, sales grew a muted 2% to $7.54 billion, held back by currency headwinds due to the fact that 63% of sales comes from outside the U.S. Organic sales growth, excluding currency exchange and a discontinued business, was a healthy 7.1%. Adjusted earnings per share, which include the effect of exchange rates, grew 6.8% to $0.63.
Looking forward, Abbott expects organic sales growth in 2019 of between 6.5% and 7.5% and adjusted earnings per share of between $3.15 and $3.25, which equates to 11% profit growth at the midpoint.
Growth prospects
Three of Abbott's product lines are boosting the company's growth now. FreeStyle Libre is the company's continuous glucose monitor that uses a small sensor about the size of two stacked quarters that is applied to the back of the upper arm, a big improvement over pricking a finger to draw blood. Worldwide sales last quarter grew over 40% to $380 million with a million and a half users, and the company is expanding its manufacturing capacity to meet demand. There's a second generation of the device being reviewed by the FDA and a third under development. Ultimately, sales of FreeStyle Libre could reach $5 billion annually.
Abbott's Alinity is a family of integrated, high-throughput systems for core laboratory diagnostics for blood chemistry and composition, cancer, drug use, and infectious diseases. The system is selling well in Europe and just rolling out in the U.S., with the full range of capability available by the end of the year. The core laboratory business had 10% sales growth last quarter, but that should expand further as Alinity gets traction, and the product line will have a long runway of growth.
Alinity CI-Series. Image source: Abbott Laboratories.
The structural heart segment had 15% organic growth in Q1, largely because of MitraClip, an implant to repair leaky heart valves. That product is still in the early stages of adoption as well, with Abbott getting approval for new indications and expanding its sales force and clinical specialists to address an unmet need in minimally invasive mitral valve repair.
Abbott has a balance sheet and cash flow that would support growth through acquisitions. But when questioned about merger opportunities in recent quarters, Abbott officials have been clear that they haven't seen any appealing opportunities. Either valuations are too high or candidates don't fit their criteria, so the company has said flatly that acquisitions are not a high priority now. Instead, Abbott is focusing on retiring debt and improving organic growth, a direction that risk-averse investors should appreciate.
Dividends
Dividend yield isn't a big attraction for the stock, but dividend growth is a plus. Abbott pays a quarterly dividend of $0.32, which works out to an annual yield of 1.5%, not out of line with peers in the medical device industry. But Abbott is also a Dividend Aristocrat, having raised its payout for 47 consecutive years. Last year it boosted the dividend by a healthy 14%.
Risks and uncertainties
The attraction of Abbott stock for conservative investors is the steadiness and predictability of its business. Medical devices undergo clinical trials and are subject to FDA approvals, so there is always the risk of a failed trial or rejection of an application, but the stakes for each approval are much less than for a drug that's cost billions to develop. Abbott stock isn't likely to make big moves -- in either direction -- based on single events in its pipeline development.
The company is subject to competitive pressure, but that's where the company's balance and diversification are assets. With four consistently profitable segments of comparable size that are all contributing to growth, no one competitor can disrupt its business.
As with other companies in this industry, Abbott's business is mostly unaffected by economic cycles, making the stock attractive as a "defensive" holding.
Performance and valuation
Probably the biggest risk for Abbott shareholders is not a company-specific event, but that the entire industry gets marked down in a bear market or by worries over political threats to the healthcare industry. Abbott stock is vulnerable due to its relatively high valuation. Abbott sells for 29 times adjusted 2018 earnings and 26 times the midpoint of its guidance for adjusted earnings in 2019. That's quite pricey for a business that's delivering growth in the low double digits, and it's on the high end of the stock's historic range
Still, the market likes predictability and rewards companies that deliver it. The stock is up 16% this year after gaining 29% in 2018.
Expensive, but for a reason
Abbott Labs offers an attractive combination of predictable growth with lower risk than you'd typically find in the healthcare sector. The main reason an investor might hesitate to jump in is the valuation. The market has recognized the strengths of the business and has been willing to pay up for the shares. But the longer your investment time horizon is, the less relevant today's valuation will be. There are better values in healthcare, but for long-term investors, Abbott Labs is still a buy.
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Jim Crumly owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Diversified healthcare company Abbott Laboratories (NYSE: ABT) has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. The acquisition of Alere in late 2017 added point-of-care diagnostic instruments, which provide results in minutes, to an existing product forming the core equipment of clinical laboratories. FreeStyle Libre is the company's continuous glucose monitor that uses a small sensor about the size of two stacked quarters that is applied to the back of the upper arm, a big improvement over pricking a finger to draw blood. | Diversified healthcare company Abbott Laboratories (NYSE: ABT) has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. The rationale for the division was that AbbVie's business would be high-risk and high-reward with high dividends, while Abbott Labs would be a diversified healthcare business not subject to the risks of bringing new drugs to market. Dividends Dividend yield isn't a big attraction for the stock, but dividend growth is a plus. | Diversified healthcare company Abbott Laboratories (NYSE: ABT) has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. The post-spinoff Abbott is a balanced company with four businesses that are all contributing well to the company's growth. Four segments with steady underlying growth The company's largest segment at 37% of 2018 revenue is medical devices, bolstered by the 2017 acquisition of St. Jude Medical and proving to be the company's strongest source of growth. | Diversified healthcare company Abbott Laboratories (NYSE: ABT) has been rewarding its shareholders with solid growth without the ups and downs that pharmaceutical stocks often deliver. The rationale for the division was that AbbVie's business would be high-risk and high-reward with high dividends, while Abbott Labs would be a diversified healthcare business not subject to the risks of bringing new drugs to market. This segment was 15% of Abbott's 2018 revenue with a healthy 7% organic growth. |
32970.0 | 2019-06-18 00:00:00 UTC | Noteworthy ETF Inflows: SPYG, MCD, NFLX, ABT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-spyg-mcd-nflx-abt-2019-06-18 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $78.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 134,550,000 to 136,600,000). Among the largest underlying components of SPYG, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Netflix Inc (Symbol: NFLX) is up about 2.8%, and Abbott Laboratories (Symbol: ABT) is up by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.8166 as the 52 week high point — that compares with a last trade of $38.76. 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 had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPYG, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Netflix Inc (Symbol: NFLX) is up about 2.8%, and Abbott Laboratories (Symbol: ABT) is up by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.8166 as the 52 week high point — that compares with a last trade of $38.76. 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 SPYG, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Netflix Inc (Symbol: NFLX) is up about 2.8%, and Abbott Laboratories (Symbol: ABT) is up by about 0.4%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.8166 as the 52 week high point — that compares with a last trade of $38.76. 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 ». | Among the largest underlying components of SPYG, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Netflix Inc (Symbol: NFLX) is up about 2.8%, and Abbott Laboratories (Symbol: ABT) is up 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 SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $78.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 134,550,000 to 136,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.8166 as the 52 week high point — that compares with a last trade of $38.76. | Among the largest underlying components of SPYG, in trading today McDonald's Corp (Symbol: MCD) is up about 0.1%, Netflix Inc (Symbol: NFLX) is up about 2.8%, and Abbott Laboratories (Symbol: ABT) is up 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 SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $78.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 134,550,000 to 136,600,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.8166 as the 52 week high point — that compares with a last trade of $38.76. |
32971.0 | 2019-06-18 00:00:00 UTC | Abbott Labs Stock Just Hit an All-Time High: Buy, Sell, or Hold? | ABT | https://www.nasdaq.com/articles/abbott-labs-stock-just-hit-an-all-time-high%3A-buy-sell-or-hold-2019-06-18 | nan | nan | Abbott Laboratories (NYSE: ABT) is on a roll no matter how you look at it. The stock recently hit an all-time high. It's up 14% so far in 2019 after delivering a strong 27% gain last year.
Some investors might think that it's time to sell their Abbott stock to lock in gains. Others might want to hold on to their shares but are hesitant to add more. And there are some investors who still see Abbott as a great stock to buy even after its big run. Which alternative is the smartest choice? Here's what you need to know.
Image source: Getty Images.
Why you might consider selling
There are two main reasons that you might want to consider selling Abbott Labs stock. One is if you don't believe the company's long-term growth prospects are solid. Another is if you think there are better stocks to buy that would deliver an even better gain.
I'd seriously rethink your decision if you don't think Abbott's long-term growth prospects look very good. We'll dive into those prospects a little later, but for now, I'll just say that my view is that the company should be in great shape over the long run.
However, I could see why you might contemplate selling Abbott to invest in another stock that could grow even faster. Are there stocks that fit the bill? Sure. I think that in the healthcare sector alone there are several stocks that should outperform Abbott.
Remember, though, there's no guarantee that the stock you replace Abbott with will actually be a better performer. The approach that I personally prefer is to stick with a stock of a company that I have confidence in and use additional money to buy shares of another high-growth stock that I like. I've kicked myself for selling a good stock too many times and have learned from those experiences.
Why hold but don't add any more shares
Even if you think, as I do, that the long-term prospects for Abbott Labs remain solid, there are several legitimate reasons why you wouldn't want to add to your position. I just mentioned one of them: if you want to use your cash to invest in other stocks.
Another related reason why you might not want to buy more shares of Abbott is if your portfolio is weighted too heavily in healthcare. I stated not long ago that right now could be one of the most dangerous times ever to invest in healthcare stocks. My premise was based on the uncertainties about what could happen with the U.S. healthcare system. I'm still optimistic about healthcare stocks overall, but the risks shouldn't be ignored.
Some investors could be worried that Abbott's shares are about to decline. Those worries could be based on concerns about the overall stock market or perhaps that Abbott itself will somehow stumble. Billy Joel probably said it (or sang it) best: "You may be wrong, but you may be right."
The key, though, is that there's no way to know whether you're wrong or right yet. If you have specific reasons to suspect something bad is about to happen over the short run, you'd probably be wise to hold off on buying more shares of Abbott. However, I don't see any storm clouds on the horizon right now that are too troubling.
Why still buy Abbott
That leaves us with the final option: buy Abbott stock. Why would this option make sense? I think there are a couple of important factors to keep in mind.
First, Abbott Labs should be in a great position to generate solid growth over the next few years. Wall Street analysts project average annual earnings growth for the company over the next five years of more than 11.6%. That's substantially higher than Abbott's average earnings growth over the last five years.
This optimistic outlook stems from Abbott's new products. In particular, the company's Freestyle Libre continuous glucose monitoring (CGM) systems is a massive winner. Abbott hopes to soon win Food and Drug Administration approval for its new version of the system. When that launch happens, it should provide a nice boost to the company's sales.
The second factor to keep in mind with Abbott is its dividend. Abbott's dividend currently yields nearly 1.7%. That might not be overly impressive, but consider that dividend payments increased the company's total return by more than 60% over the last 10 years. Also, Abbott Labs is a Dividend Aristocrat that has hiked its dividends for 47 consecutive years.
My view
You've probably figured out where I stand on the buy, sell, or hold question for Abbott Labs. I view the stock as a solid pick. Abbott won't necessarily be the flashiest stock around. However, I think it's a strong company with a very capable management team with a proven track record.
Like any other stock, Abbott will have some volatility -- although I suspect it will probably be less than most. But with the new version of Freestyle Libre on the way and other new products to fuel growth, my view is that Abbott Labs will stay on its roll for a long time to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is on a roll no matter how you look at it. If you have specific reasons to suspect something bad is about to happen over the short run, you'd probably be wise to hold off on buying more shares of Abbott. Wall Street analysts project average annual earnings growth for the company over the next five years of more than 11.6%. | Abbott Laboratories (NYSE: ABT) is on a roll no matter how you look at it. Why you might consider selling There are two main reasons that you might want to consider selling Abbott Labs stock. One is if you don't believe the company's long-term growth prospects are solid. | Abbott Laboratories (NYSE: ABT) is on a roll no matter how you look at it. Why still buy Abbott That leaves us with the final option: buy Abbott stock. 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) is on a roll no matter how you look at it. Why hold but don't add any more shares Even if you think, as I do, that the long-term prospects for Abbott Labs remain solid, there are several legitimate reasons why you wouldn't want to add to your position. First, Abbott Labs should be in a great position to generate solid growth over the next few years. |
32972.0 | 2019-06-17 00:00:00 UTC | Why AbbVie Is a Retiree's Dream Stock | ABT | https://www.nasdaq.com/articles/why-abbvie-is-a-retirees-dream-stock-2019-06-17 | nan | nan | What does every retired investor want in a stock? You'd definitely expect a strong dividend to be ranked close to the top of the list. Retired investors would also want to make sure that the company was in good shape to keep those dividends flowing, with dividend growth a nice bonus. And it wouldn't hurt for the stock to have decent growth prospects.
Several stocks check off all these items. But one stock that I think especially stands out is AbbVie (NYSE: ABBV). Here's why this big pharma appears to be a retiree's dream stock.
Image source: Getty Images.
A fantastic -- and growing -- dividend
Let's start with AbbVie's dividend. It currently yields nearly 5.6%. That's not only one of the highest yields in healthcare, but it's also one of the highest dividend yields in the S&P 500.
AbbVie's track record when it comes to dividends is impeccable. The company is included in the elite group of stocks known as Dividend Aristocrats. Including the time that it was still part of its parent company, Abbott Labs (NYSE: ABT), AbbVie has increased its dividend for 47 consecutive years.
Abbott Labs spun off AbbVie as a separate entity in 2013. Since then, AbbVie has boosted its dividend payout by a whopping 168%.
The company appears to be in a strong position to keep the dividends coming. AbbVie currently uses a little over half of its free cash flow to fund the dividend program.
Based on AbbVie's current dividend level and its history of dividend growth, I fully expect that the dividend will double within the next seven years. This would mean that investors could be looking realistically at annual dividend payments that are at least 10% of their initial investments in the not-too-distant future. Any retiree would love to have an effective dividend yield of 10% or more.
Multiple growth opportunities
A lot of the focus for AbbVie right now is on the declining sales for Humira. The company's best-selling drug now faces competition from biosimilars in Europe and will see biosimilar rivals in the U.S. beginning in 2023. But even though Humira generates 57% of AbbVie's total revenue, the company isn't worried about the falling sales for its top drug.
AbbVie has known for years that the day would come when it couldn't count on Humira to deliver growth. It has been preparing by building a product lineup and pipeline that could take it into a post-Humira world.
One key step that AbbVie made was to acquire Pharmacyclics in 2015. The deal gave AbbVie two powerful cancer drugs, Imbruvica and Venclexta. The company thinks that these two drugs will together generate more than $9 billion of risk-adjusted annual sales growth by 2025.
AbbVie has also partnered with other companies to boost its growth prospects. It teamed up with Neurocrine Biosciences (NASDAQ: NBIX) to develop and market Orilissa. The drug is currently approved for the management of endometriosis pain. AbbVie hopes to pick up another approval for the drug in treating uterine fibroids. If all goes as expected, Orilissa could contribute an additional $2 billion in annual sales for AbbVie in a few years.
The biggest near-term growth opportunities for AbbVie, though, are with its new immunology drugs. Skyrizi won FDA approval earlier this year for treating plaque psoriasis. AbbVie expects to win FDA approval for upadacitinib in the third quarter of 2019 for treating rheumatoid arthritis. Market research company EvaluatePharma ranked the drugs No. 3 and No. 2, respectively, in its analysis of the top new drug launches of this year. AbbVie thinks the two drugs could together rake in $10 billion annually by 2025.
Risks offset by an attractive valuation
AbbVie faces some risks. It's possible that the company could experience pipeline setbacks. Major healthcare system changes in the U.S. could restrict the ability for AbbVie to set its drug prices at the levels it prefers.
However, I think that AbbVie's valuation largely offsets these risks. The big pharma stock trades at less than 8.4 times expected earnings. That's lower than the forward earnings multiples of more than 440 other stocks in the S&P 500.
AbbVie provides a strong dividend, solid growth prospects, and an attractive valuation. That's a combination that should appeal to retired investors -- and investors who are a long way from retirement, too.
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Keith Speights owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Including the time that it was still part of its parent company, Abbott Labs (NYSE: ABT), AbbVie has increased its dividend for 47 consecutive years. But even though Humira generates 57% of AbbVie's total revenue, the company isn't worried about the falling sales for its top drug. Major healthcare system changes in the U.S. could restrict the ability for AbbVie to set its drug prices at the levels it prefers. | Including the time that it was still part of its parent company, Abbott Labs (NYSE: ABT), AbbVie has increased its dividend for 47 consecutive years. Risks offset by an attractive valuation AbbVie faces some risks. AbbVie provides a strong dividend, solid growth prospects, and an attractive valuation. | Including the time that it was still part of its parent company, Abbott Labs (NYSE: ABT), AbbVie has increased its dividend for 47 consecutive years. A fantastic -- and growing -- dividend Let's start with AbbVie's dividend. Based on AbbVie's current dividend level and its history of dividend growth, I fully expect that the dividend will double within the next seven years. | Including the time that it was still part of its parent company, Abbott Labs (NYSE: ABT), AbbVie has increased its dividend for 47 consecutive years. Retired investors would also want to make sure that the company was in good shape to keep those dividends flowing, with dividend growth a nice bonus. Based on AbbVie's current dividend level and its history of dividend growth, I fully expect that the dividend will double within the next seven years. |
32973.0 | 2019-06-13 00:00:00 UTC | 3 Top Diabetes Stocks to Watch in June | ABT | https://www.nasdaq.com/articles/3-top-diabetes-stocks-watch-june-2019-06-13 | nan | nan | Anti-diabetes medications are on pace to evolve into a $57.6 billion annual marketplace by 2024, according to a recent report by EvaluatePharma. While this sub-niche of the pharmaceutical space has started to slow from a revenue growth standpoint due to generic competition, diabetes is still expected to be the second-largest drug market behind only oncology in the next decade. As such, companies that have a sizable footprint in diabetes devices, medications, or therapies remain a popular growth vehicle for many investors.
Which diabetes stocks should investors have their eyes on right now? We asked three of our Motley Fool contributors this question to gain some insight. They suggested Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Provention Bio (NASDAQ: PRVB). Here's why.
Image source: Getty Images.
An established leader in diabetes
George Budwell (Eli Lilly): Despite falling sales for both Humalog and Humulin, Eli Lilly's diabetes franchise hasn't missed a beat in the past few years. The company's revenue from this market segment, in fact, has nearly doubled since 2013. How did Lilly manage this feat?
Lilly has relied mostly on innovation to keep its diabetes franchise headed in the right direction during this turbulent period. Since 2014, the company has brought to market the oral type 2 diabetes medication known as Jardiance; the once-weekly injected type 2 diabetes therapy Trulicity; and Basaglar, an alternative to Sanofi's long-acting insulin Lantus.
Each of these products has developed into a major cash cow for Lilly. In the most recent quarter, Jardiance's sales came in at a healthy $204 million, Trulicity hauled in a whopping $880 million, and Basaglar raked in $251 million. Best of all, these three growth products all saw their sales jump by more than 30% in the first quarter of 2019 compared to the same period a year ago. That's stellar sales growth any way you slice it.
Lilly, however, isn't resting on its laurels in the high-value diabetes market. The company has designs to expand Trulicity's label to include patients at increased risk of cardiovascular disease. The drug's late-stage cardiovascular outcome trial results weren't exactly great, but they could be enough to convince regulators to grant this key label expansion early next year. Additionally, Lilly has a promising cocktail drug called tirzepatide under development that could also turn out to be a blockbuster in the next decade.
Bottom line: Lilly's top-drawer diabetes portfolio should continue to play an outsize role in the company's growth story, making it a key franchise to keep tabs on for shareholders and potential investors alike.
A Freestyle sequel could boost this stock
Keith Speights (Abbott Laboratories): Abbott Laboratories isn't just a diabetes stock. The company is a healthcare giant with three business segments that develop and market a wide range of products, including adult nutrition, blood and plasma screening, chronic pain devices, heart pumps, point-of-care testing, and remote heart failure monitoring.
But diabetes has been and will continue to be key to Abbott's success. The company launched its Freestyle Libre continuous glucose monitoring (CGM) system in late 2017. CEO Miles White noted in the company's first-quarter conference call that "in a relatively short amount of time, [Freestyle] Libre has achieved global leadership among CGM systems for both type 1 and type 2 users."
Demand for the CGM system has been so great that Abbott is boosting its manufacturing capacity. The company expects this additional capacity will come on line in the second half of 2019.
The main reason why I think that Abbott Labs is still a diabetes stock to watch closely is that it hopes to soon have a new version of Freestyle Libre on the market in the U.S. The company filed for approval of this version with the U.S. Food and Drug Administration (FDA) as an integrated continuous glucose monitoring (iCGM) system that can connect to other devices like insulin pumps.
It's uncertain how quickly the FDA will make a decision on the new version of Freestyle Libre. But if Abbott gets a green light to launch its new CGM in the U.S., the stock could enjoy a nice boost.
This clinical-stage drug could disrupt type 1 diabetes treatment
Todd Campbell (Provention Bio): A clinical-stage drug being developed by Provention Bio may delay or prevent type 1 diabetes altogether, improving treatment, quality of life, and longevity for over 1 million Americans.
On June 9, Provention Bio unveiled impressive phase 2 clinical trial data at the annual American Diabetes Association (ADA) meeting. The data showed that a single 14-day dose of PRV-031 (teplizumab) could delay type 1 diabetes diagnosis in patients at risk of developing the disease by a median two years compared to a placebo.
The findings are remarkable.
Unable to produce their own insulin because of an immune response that destroys insulin-producing cells, type 1 patients endure a lifetime of multiple daily insulin injections or insulin pump therapy. By interrupting the immune system's response, teplizumab aims to slow the destruction of insulin-producing cells, delaying or perhaps preventing disease progression.
In the study, the median time to a type 1 diabetes diagnosis was two years in the placebo group and four years in the PRV-031 group. Seventy-two percent of patients receiving a placebo were diagnosed with type 1 diabetes during the trial, compared to only 43% of the teplizumab patients.
The news sent Provention Bio's shares skyrocketing, yet its market cap of about $515 million may still undersell the opportunity to disrupt a multibillion-dollar market. It's anyone's guess if larger future trials will confirm the midstage data, but the possibility makes this one stock every healthcare investor ought to be watching.
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George Budwell has no position in any of the stocks mentioned. Keith Speights has no position in any of the stocks mentioned. Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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. | They suggested Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Provention Bio (NASDAQ: PRVB). While this sub-niche of the pharmaceutical space has started to slow from a revenue growth standpoint due to generic competition, diabetes is still expected to be the second-largest drug market behind only oncology in the next decade. Bottom line: Lilly's top-drawer diabetes portfolio should continue to play an outsize role in the company's growth story, making it a key franchise to keep tabs on for shareholders and potential investors alike. | They suggested Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Provention Bio (NASDAQ: PRVB). A Freestyle sequel could boost this stock Keith Speights (Abbott Laboratories): Abbott Laboratories isn't just a diabetes stock. The company launched its Freestyle Libre continuous glucose monitoring (CGM) system in late 2017. | They suggested Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Provention Bio (NASDAQ: PRVB). Since 2014, the company has brought to market the oral type 2 diabetes medication known as Jardiance; the once-weekly injected type 2 diabetes therapy Trulicity; and Basaglar, an alternative to Sanofi's long-acting insulin Lantus. A Freestyle sequel could boost this stock Keith Speights (Abbott Laboratories): Abbott Laboratories isn't just a diabetes stock. | They suggested Eli Lilly (NYSE: LLY), Abbott Laboratories (NYSE: ABT), and Provention Bio (NASDAQ: PRVB). Best of all, these three growth products all saw their sales jump by more than 30% in the first quarter of 2019 compared to the same period a year ago. A Freestyle sequel could boost this stock Keith Speights (Abbott Laboratories): Abbott Laboratories isn't just a diabetes stock. |
32974.0 | 2019-06-11 00:00:00 UTC | ABT Crosses Above Average Analyst Target | ABT | https://www.nasdaq.com/articles/abt-crosses-above-average-analyst-target-2019-06-11 | nan | nan | In recent trading, shares of Abbott Laboratories (Symbol: ABT) have crossed above the average analyst 12-month target price of $80.86, changing hands for $81.27/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 14 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 $73.00. And then on the other side of the spectrum one analyst has a target as high as $88.00. The standard deviation is $4.016.
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 $80.86/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $80.86 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:
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 $80.86, changing hands for $81.27/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 $80.86/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $80.86 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 $80.86, changing hands for $81.27/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 $80.86/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $80.86 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 $80.86/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $80.86 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 $80.86, changing hands for $81.27/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 $80.86, changing hands for $81.27/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 $80.86/share, investors in ABT have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $80.86 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? |
32975.0 | 2019-06-09 00:00:00 UTC | Where Will Abbott Laboratories Be in 10 Years? | ABT | https://www.nasdaq.com/articles/where-will-abbott-laboratories-be-10-years-2019-06-09 | nan | nan | Where will Abbott Laboratories (NYSE: ABT) be in 10 years? That's easy: In Chicago, of course, where it's headquartered today.
So, now that the smart aleck answer is out of the way, let's talk about what investors really want to know -- where the healthcare company's business will look like a decade from now. Insights on that score can be key in determining whether or not you'll think that investing in Abbott is a good idea.
For this type of analysis, it's important to understand the company's past, as well as its situation today. Only then can we get some clarity about the direction the company is headed in the future. (I know, it kind of sounds like an investing version of Charles Dickens' A Christmas Carol, but it's a good way to start off.)
Image source: Getty Images.
Where Abbott has been
It's helpful to understand a company's primary mission, because what a company is about is tremendously important in what it will become. Abbott Labs' mission dates back to 1888 when a 30-year-old doctor named Wallace Abbott began producing medicines in the back of his pharmacy in Chicago. From the beginning, Abbott's focus has been on developing products to improve patients' health.
Abbott's debut on the New York Stock Exchange (NYSE) couldn't have had much worse timing. The company conducted its initial public offering in 1929. But it survived the tough times that followed, and thrived. Abbott's share price is now close to 10,000 times greater than it was on the day of its IPO.
By the way, Abbott Labs began paying quarterly dividends to its shareholders for 95 consecutive years -- since even before it listed on the NYSE. And it has increased its payout for 47 years in a row, earning a spot in the elite group of stocks known as Dividend Aristocrats. (If it continues for another three, it will join the extremely rarefied Dividend Kings list.)
Abbott has had a global focus since its early days. The company opened an office in London back in 1907 -- its first international expansion. And it has made adapting and evolving a central theme over the years. The company's 1960s-era reinvention of its business was even featured in Jim Collins' classic business book Good to Great: Why Some Companies Make the Leap... and Others Don't.
Where Abbott is today
Today, Abbott Labs is a giant in the world of healthcare. Its market cap tops $130 billion, and it generated revenue of $30.6 billion last year. The company operates in more than 160 countries, with 41% of its sales coming from emerging markets.
It ranks as one of Fortune magazine's most-admired large companies, an honor the company has held since 1984. And it's No. 1 among medical products companies, just as it has been for the last six years.
Speaking of being No. 1, Abbott is the global leader in multiple markets, among them adult nutrition, blood and plasma screening, chronic pain devices, glucose monitoring, heart pumps, point of care testing, and remote heart failure monitoring.
The company's growth isn't overly impressive these days, though. In the first quarter of 2019, its year-over-year revenue growth was only 2%. Even its fastest-growing business segment, medical devices, delivered sales growth of only 5.5%. However, it's important to note that foreign currency fluctuations have negatively impacted Abbott's growth rates.
Where Abbott is headed
Perhaps the best way to get an indication of where Abbott Labs is headed is to look at the products that it's most excited about today: FreeStyle Libre, MitraClip, and the Alinity systems.
FreeStyle Libre is a continuous glucose monitoring (CGM) system, which doesn't require a finger stick. The product has been an enormous commercial success, and is likely to remain one for a long time to come. Abbott hopes to receive FDA approval to launch the next version of FreeStyle Libre in the U.S. in the near future. The new features on the device should make it attractive to customers and provide a big boost to sales.
MitraClip enables the minimally invasive treatment of mitral regurgitation, which is caused by a leaky heart valve. It's already the leading device used to treat that condition, but the FDA's recent approval for its use in a new indication (patients with mitral regurgitation resulting from underlying heart failure) has expanded its market opportunity.
The Alinity systems include a lineup of laboratory diagnostic instruments. CEO Miles White said in Abbott's Q1 conference call that the company is "winning almost two-thirds of the accounts where we're head-to-head with an entrenched competitor."
All three reflect a focus on internal innovation that drives Abbott Labs' organic growth. And that seems likely to be the story for the company for years to come.
Abbott Labs of 2029
So where will Abbott Labs be in 10 years? Still adapting to change, just as it's always done. It will almost certainly still prioritize its dividend. Expect the company to continue to focus heavily on global opportunities, particularly in emerging markets. And Abbott's commitment to innovation isn't likely to diminish.
If you put all of this together with demographic trends that should fuel increased global demand for healthcare products and services, it becomes apparent that this company should be in an even stronger position in 2029 than it is today, suggesting that Abbott Labs stock would be a solid pick for long-term investors.
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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. | Where will Abbott Laboratories (NYSE: ABT) be in 10 years? It's already the leading device used to treat that condition, but the FDA's recent approval for its use in a new indication (patients with mitral regurgitation resulting from underlying heart failure) has expanded its market opportunity. CEO Miles White said in Abbott's Q1 conference call that the company is "winning almost two-thirds of the accounts where we're head-to-head with an entrenched competitor." | Where will Abbott Laboratories (NYSE: ABT) be in 10 years? By the way, Abbott Labs began paying quarterly dividends to its shareholders for 95 consecutive years -- since even before it listed on the NYSE. Where Abbott is headed Perhaps the best way to get an indication of where Abbott Labs is headed is to look at the products that it's most excited about today: FreeStyle Libre, MitraClip, and the Alinity systems. | Where will Abbott Laboratories (NYSE: ABT) be in 10 years? Where Abbott is headed Perhaps the best way to get an indication of where Abbott Labs is headed is to look at the products that it's most excited about today: FreeStyle Libre, MitraClip, and the Alinity systems. Abbott Labs of 2029 So where will Abbott Labs be in 10 years? | Where will Abbott Laboratories (NYSE: ABT) be in 10 years? By the way, Abbott Labs began paying quarterly dividends to its shareholders for 95 consecutive years -- since even before it listed on the NYSE. 1 among medical products companies, just as it has been for the last six years. |
32976.0 | 2019-06-07 00:00:00 UTC | SPY, BRK.B, NFLX, ABT: Large Outflows Detected at ETF | ABT | https://www.nasdaq.com/articles/spy-brk.b-nflx-abt%3A-large-outflows-detected-etf-2019-06-07 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF (Symbol: SPY) where we have detected an approximate $5.2 billion dollar outflow -- that's a 2.0% decrease week over week (from 919,130,000 to 900,980,000). Among the largest underlying components of SPY, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is up about 0.5%, Netflix Inc (Symbol: NFLX) is up about 1.8%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.9%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $233.76 per share, with $294.95 as the 52 week high point — that compares with a last trade of $287.42. 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 SPY, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is up about 0.5%, Netflix Inc (Symbol: NFLX) is up about 1.8%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.9%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $233.76 per share, with $294.95 as the 52 week high point — that compares with a last trade of $287.42. 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 SPY, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is up about 0.5%, Netflix Inc (Symbol: NFLX) is up about 1.8%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.9%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $233.76 per share, with $294.95 as the 52 week high point — that compares with a last trade of $287.42. 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 SPY, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is up about 0.5%, Netflix Inc (Symbol: NFLX) is up about 1.8%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF (Symbol: SPY) where we have detected an approximate $5.2 billion dollar outflow -- that's a 2.0% decrease week over week (from 919,130,000 to 900,980,000). For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $233.76 per share, with $294.95 as the 52 week high point — that compares with a last trade of $287.42. | Among the largest underlying components of SPY, in trading today Berkshire Hathaway Inc New (Symbol: BRK.B) is up about 0.5%, Netflix Inc (Symbol: NFLX) is up about 1.8%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.9%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average: Looking at the chart above, SPY's low point in its 52 week range is $233.76 per share, with $294.95 as the 52 week high point — that compares with a last trade of $287.42. 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). |
32977.0 | 2019-06-04 00:00:00 UTC | Insiders Buy the Holdings of VTV ETF | ABT | https://www.nasdaq.com/articles/insiders-buy-holdings-vtv-etf-2019-06-04 | nan | nan | A look at the weighted underlying holdings of the Vanguard Value ETF (VTV) shows an impressive 14.7% of holdings on a weighted basis have experienced insider buying within the past six months.
Abbott Laboratories (Symbol: ABT), which makes up 1.20% of the Vanguard Value ETF (VTV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $865,989,174 worth of ABT, making it the #20 largest holding. The table below details the recent insider buying activity observed at ABT:
ABT — last trade: $75.71 — Recent Insider Buys:
And Aramark (Symbol: ARMK), the #242 largest holding among components of the Vanguard Value ETF (VTV), shows 3 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $54,372,451 worth of ARMK, which represents approximately 0.08% of the ETF's total assets at last check. The recent insider buying activity observed at ARMK is detailed in the table below:
ARMK — last trade: $34.50 — Recent Insider Buys:
10 ETFs With Stocks That Insiders 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. | Abbott Laboratories (Symbol: ABT), which makes up 1.20% of the Vanguard Value ETF (VTV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $75.71 — Recent Insider Buys: And Aramark (Symbol: ARMK), the #242 largest holding among components of the Vanguard Value ETF (VTV), shows 3 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $865,989,174 worth of ABT, making it the #20 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 1.20% of the Vanguard Value ETF (VTV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $75.71 — Recent Insider Buys: And Aramark (Symbol: ARMK), the #242 largest holding among components of the Vanguard Value ETF (VTV), shows 3 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $865,989,174 worth of ABT, making it the #20 largest holding. | The table below details the recent insider buying activity observed at ABT: ABT — last trade: $75.71 — Recent Insider Buys: And Aramark (Symbol: ARMK), the #242 largest holding among components of the Vanguard Value ETF (VTV), shows 3 directors and officers as recently filing Form 4's indicating purchases. Abbott Laboratories (Symbol: ABT), which makes up 1.20% of the Vanguard Value ETF (VTV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $865,989,174 worth of ABT, making it the #20 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 1.20% of the Vanguard Value ETF (VTV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $865,989,174 worth of ABT, making it the #20 largest holding. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $75.71 — Recent Insider Buys: And Aramark (Symbol: ARMK), the #242 largest holding among components of the Vanguard Value ETF (VTV), shows 3 directors and officers as recently filing Form 4's indicating purchases. |
32978.0 | 2019-06-02 00:00:00 UTC | Better Buy: Abbott Laboratories vs. DexCom | ABT | https://www.nasdaq.com/articles/better-buy%3A-abbott-laboratories-vs.-dexcom-2019-06-02 | nan | nan | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) turned in stellar performances in 2018. Abbott's shares jumped 27%, while DexCom stock more than doubled. It's a different story so far this year, though. Both medical device stocks lag well behind the S&P 500.
Investors shouldn't give up on either of these stocks because they've underperformed over a short period. Both Abbott and DexCom should have solid long-term growth prospects. But which stock is the better pick right now? Here's how Abbott and DexCom compare in three key areas.
Image source: Getty Images.
Growth prospects
DexCom is the hands-down winner when it comes to recent growth rates. The company's revenue soared 52% year over year to $280.5 million in the first quarter of 2019. That makes Abbott's Q1 revenue growth of 2% look puny by comparison.
Wall Street definitely views DexCom as having better growth prospects. Analysts project average annual earnings growth of 140% over the next five years compared to growth of close to 12% for Abbott during the same period.
It's important to note, though, that Abbott's product lineup is much more diversified than DexCom's. Abbott claims four multibillion-dollar business segments: diagnostics, established pharmaceuticals, medical devices, and nutrition. Each of these segments markets a wide lineup of products. DexCom makes nearly all of its money from its G6 continuous glucose monitoring (CGM) system.
DexCom's reliance on the G6 system arguably makes its growth prospects riskier than Abbott's. Spruce Point Capital Management analyst Ben Axler thinks that DexCom's growth could be in trouble when Abbott launches its second-generation Freestyle Libre CGM system. Although the G6 system will still offer more features than the new Freestyle Libre, Abbott is expected to price its system around 80% below the G6 price.
On the other hand, Freestyle Libre should continue to fuel growth for Abbott. The big healthcare company should also benefit from several other new products, including its HeartMate 3 left ventricular assist device. It should also see higher sales from MitraClip's new indication in treating secondary mitral regurgitation, a leaky heart valve resulting from advanced heart failure.
Dividends
There's no contest as to which stock has the better dividend, because DexCom doesn't pay a dividend while Abbott does.
Abbott's dividend yield currently stands at a respectable 1.61%. What's more impressive is the company's commitment to its dividend program. Abbott recently declared its 381st consecutive quarterly dividend. The company is a member of the elite group known as Dividend Aristocrats and has increased its dividend payout for 47 years in a row.
Valuation
Neither of these stocks looks cheap right now. Abbott Labs' shares trade at 21 times expected earnings. But DexCom's forward earnings multiple of 101 would probably be viewed by most investors as astronomical.
However, we do need to factor growth prospects into the valuations of these stocks. Remember that Wall Street has much loftier expectations for DexCom's growth than it does for Abbott. As a result, DexCom's price-to-earnings-to-growth (PEG) ratio of 1.1 makes its stock appear to be more attractively valued than Abbott, which has a PEG ratio nearly twice as high.
Better buy
I like both of these stocks. Which is the better pick? I hate to equivocate, but that's what I'm going to do.
Abbott Labs is by far the better choice for conservative investors. The company is about as steady as they come. It pays a great dividend. And Abbott has solid long-term growth prospects.
If you're looking for more aggressive growth, though, DexCom will probably be a better fit. Although it's possible that Abbott's new Freestyle Libre CGM could hamper growth for DexCom's G6, I think the market is big enough for both products. I'm also bullish about DexCom's long-term prospects with its more advanced (and less expensive) G7 system likely on the way by late next year.
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 quadrupled 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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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) turned in stellar performances in 2018. Spruce Point Capital Management analyst Ben Axler thinks that DexCom's growth could be in trouble when Abbott launches its second-generation Freestyle Libre CGM system. The big healthcare company should also benefit from several other new products, including its HeartMate 3 left ventricular assist device. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) turned in stellar performances in 2018. Both Abbott and DexCom should have solid long-term growth prospects. And Abbott has solid long-term growth prospects. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) turned in stellar performances in 2018. Dividends There's no contest as to which stock has the better dividend, because DexCom doesn't pay a dividend while Abbott does. Although it's possible that Abbott's new Freestyle Libre CGM could hamper growth for DexCom's G6, I think the market is big enough for both products. | Abbott Laboratories (NYSE: ABT) and DexCom (NASDAQ: DXCM) turned in stellar performances in 2018. Wall Street definitely views DexCom as having better growth prospects. Analysts project average annual earnings growth of 140% over the next five years compared to growth of close to 12% for Abbott during the same period. |
32979.0 | 2019-05-31 00:00:00 UTC | Health Care Sector Update for 05/31/2019: IOVA, MYOV, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-05-31-2019%3A-iova-myov-jnj-pfe-abt-mrk-amgn-2019-05-31 | nan | nan | Top Health Care Stocks:
JNJ: -0.36%
PFE: -0.72%
ABT: -0.04%
MRK: -0.70%
AMGN: Flat
Most leading health care stocks were falling in Friday's pre-bell trading.
Early movers include:
(+) Iovance Biotherapeutics (IOVA), which was up 6% after saying its drug LN-145 achieved an 11% complete response rate in a follow-up study of patients with advanced cervical cancer.
(+) Myovant Sciences (MYOV) was climbing by more than 5%, recovering from the previous day's plunge after it priced an underwritten public offering of 15,151,516 common shares at $8.25 per share, to raise approximately $125.0 million in gross proceeds.
In other sector news:
(-) Merck & Co. (MRK) said new findings from the phase 3 Keynote-048 trial demonstrate superior overall survival outcomes from its drug Keytruda in combination with chemotherapy for patients with recurrent or metastatic head and neck squamous cell carcinoma. Merck was recently trading lower.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AMGN: Flat Most leading health care stocks were falling in Friday's pre-bell trading. Early movers include: (+) Iovance Biotherapeutics (IOVA), which was up 6% after saying its drug LN-145 achieved an 11% complete response rate in a follow-up study of patients with advanced cervical cancer. In other sector news: (-) Merck & Co. (MRK) said new findings from the phase 3 Keynote-048 trial demonstrate superior overall survival outcomes from its drug Keytruda in combination with chemotherapy for patients with recurrent or metastatic head and neck squamous cell carcinoma. | Top Health Care Stocks: AMGN: Flat Most leading health care stocks were falling in Friday's pre-bell trading. In other sector news: (-) Merck & Co. (MRK) said new findings from the phase 3 Keynote-048 trial demonstrate superior overall survival outcomes from its drug Keytruda in combination with chemotherapy for patients with recurrent or metastatic head and neck squamous cell carcinoma. | AMGN: Flat Most leading health care stocks were falling in Friday's pre-bell trading. (+) Myovant Sciences (MYOV) was climbing by more than 5%, recovering from the previous day's plunge after it priced an underwritten public offering of 15,151,516 common shares at $8.25 per share, to raise approximately $125.0 million in gross proceeds. In other sector news: (-) Merck & Co. (MRK) said new findings from the phase 3 Keynote-048 trial demonstrate superior overall survival outcomes from its drug Keytruda in combination with chemotherapy for patients with recurrent or metastatic head and neck squamous cell carcinoma. | Top Health Care Stocks: AMGN: Flat Most leading health care stocks were falling in Friday's pre-bell trading. Early movers include: (+) Iovance Biotherapeutics (IOVA), which was up 6% after saying its drug LN-145 achieved an 11% complete response rate in a follow-up study of patients with advanced cervical cancer. |
32980.0 | 2019-05-22 00:00:00 UTC | 3 Dividend Aristocrats to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/3-dividend-aristocrats-buy-and-hold-forever-2019-05-22 | nan | nan | Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Businesses that fit the bill are rare, but they're out there.
Dividend Aristocrats are a good place to start. There are only a couple dozen of them, but these companies boast an annual dividend hike in every year for at least the last 25. Three that look especially stable to our Motley Fool contributors are Walmart (NYSE: WMT), Target (NYSE: TGT), and Abbott Laboratories (NYSE: ABT).
The king of commerce looks unbeatable
Nicholas Rossolillo (Walmart): Brick-and-mortar retail has been a touch-and-go proposition since the advent of digital retailing. Amazon.com and a slew of online-only stores have made life difficult for traditional stores, and many have closed their doors in the last few years. Even the world's largest retailer, Walmart, looked like it was in a precarious position at times.
My, how things change quickly, though! While Amazon's retailing division is slowing down, Walmart has been growing its e-commerce segment at a torrid pace. During the first few months of 2019, its digital channel surged 37% year over year while Amazon's grew only 10%. As a result, Walmart had its best quarterly comparable-store sales growth (a combination of ticket size and foot traffic) in nearly a decade, with the metric rising 3.4% during the period.
Walmart has been able to strike back at the digital movement after a string of e-commerce acquisitions and doubling down on its real estate. Whether you're a fan or not, the combination of physical locations with a much-improved online store has put the company back in growth mode and speaks to the strength and staying power of the big-box store. It's a reason Walmart is a Dividend Aristocrat, one that investors are unlikely to have to worry about for a very long time.
Speaking of that dividend, after decades of raising its payout year-in and year-out, the annualized yield is currently a modest 2.1%. That's certainly not the best dividend payer out there, but some of that has to do with Walmart's share price surging 46% in the last three years. Annual shareholder pay raises have also gotten anemic as of late as the company has decided to use ample amounts of cash to continue investing in a digital future instead.
That may make some investors unhappy, but it's nevertheless another reason owners of Walmart won't have to worry about disruption anytime soon. In the meantime, enjoy the paycheck.
Image source: Getty Images.
Dotting every "i" and crossing all the "tees"
Anders Bylund (Target): Far beyond just checking the boxes required to count as an Dividend Aristocrat, retail giant Target goes the extra mile. The company has increased its annual payouts in each of the last 51 years. I'm told that this streak is unmatched in the retail industry. Over the last decade, the increases have averaged 14.2% per year. The dividend yield stands at a generous 3.6% today, and Target has plenty of headroom for future increases -- only 54% of the trailing free cash flows were allocated to cover dividend checks.
So the dividend itself is about as solid as they come. On top of that, Target simply looks like a strong investment -- with or without generous payouts.
After a slump in 2016, Target came back swinging in the last couple of years. The stock has gained a market-beating 29% in two years, despite pulling back 20% below its 52-week highs. Investors seem to be nervous about this company's future despite a rock-solid holiday quarter and a successful focus on digital and online sales.
Trading at a mere 13 times trailing earnings and 11 times forward estimates, Target's stock is a fantastic deal right now. What more do you want from a long-term dividend play?
A good way to play a larger, aging population
Todd Campbell (Abbott Laboratories): Forever is a long time. Especially when it comes to investing. Let's face facts: Many of the companies we follow today won't be around in 20, 30, or 50 years. That may seem insane, but thinking Polaroid would fall from grace probably seemed insane 40 years ago, too.
Nevertheless, the odds of picking a forever stock might be improved by focusing on been-there-done-that companies in industries likely to enjoy long-haul tailwinds. For instance, medical device company Abbott Labs has not only been in business for over 130 years, it's also rewarded investors with dividend increases for 47 consecutive years, including a 14% increase in January.
The company's longevity could be due to its diversification. Rather than focusing on one indication, it markets products that help people with a variety of healthcare needs and ailments, including diabetes.
In fact, its diabetes exposure is a demographic tailwind that's a key reason I like this company for long-term portfolios. Globally, a larger, wealthier, and longer-living population has the International Diabetes Federation predicting the number of diabetics will climb to 629 million by 2045 from 425 million today. If that's right, then demand for diabetes devices, including Abbott's glucose monitoring systems, will likely support shares for a long time.
Diabetes isn't the only thing that could support its sales and dividends, though. It sells diagnostic products, nutrition products, and cardiovascular disease products, too. That gives it lots of levers to pull to keep the lights on.
Still unconvinced? Consider that it might not be long before you're rewarded with yet another dividend increase. The company expects double-digit earnings growth this year, so you probably won't have to wait very long for Abbott to boost its dividend payment yet again.
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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. | Three that look especially stable to our Motley Fool contributors are Walmart (NYSE: WMT), Target (NYSE: TGT), and Abbott Laboratories (NYSE: ABT). As a result, Walmart had its best quarterly comparable-store sales growth (a combination of ticket size and foot traffic) in nearly a decade, with the metric rising 3.4% during the period. Annual shareholder pay raises have also gotten anemic as of late as the company has decided to use ample amounts of cash to continue investing in a digital future instead. | Three that look especially stable to our Motley Fool contributors are Walmart (NYSE: WMT), Target (NYSE: TGT), and Abbott Laboratories (NYSE: ABT). A good way to play a larger, aging population Todd Campbell (Abbott Laboratories): Forever is a long time. For instance, medical device company Abbott Labs has not only been in business for over 130 years, it's also rewarded investors with dividend increases for 47 consecutive years, including a 14% increase in January. | Three that look especially stable to our Motley Fool contributors are Walmart (NYSE: WMT), Target (NYSE: TGT), and Abbott Laboratories (NYSE: ABT). The dividend yield stands at a generous 3.6% today, and Target has plenty of headroom for future increases -- only 54% of the trailing free cash flows were allocated to cover dividend checks. For instance, medical device company Abbott Labs has not only been in business for over 130 years, it's also rewarded investors with dividend increases for 47 consecutive years, including a 14% increase in January. | Three that look especially stable to our Motley Fool contributors are Walmart (NYSE: WMT), Target (NYSE: TGT), and Abbott Laboratories (NYSE: ABT). It's a reason Walmart is a Dividend Aristocrat, one that investors are unlikely to have to worry about for a very long time. A good way to play a larger, aging population Todd Campbell (Abbott Laboratories): Forever is a long time. |
32981.0 | 2019-05-10 00:00:00 UTC | Health Care Sector Update for 05/10/2019: JNJ, PFE, ABT, MRK, AMGN, GENE, PIRS, TGTX | ABT | https://www.nasdaq.com/articles/health-care-sector-update-05/10/2019%3A-jnj-pfe-abt-mrk-amgn-gene-pirs-tgtx-2019-05-10 | nan | nan | Top Health Care Stocks
JNJ, +0.3%
PFE, +0.2%
ABT, +0.2%
MRK, -0.3%
AMGN, -0.6%
Health care stocks were mixed just ahead of the close of Friday's session, including a 0.2% rise in the NYSE Health Care Index (^NYP). Shares of health care companies in the S&P 500 (XLV) were 0.1% higher as a group while the Nasdaq Biotechnology Index (IBB) was slipping by 0.2%.
Among health care stocks moving on news today:
Genetic Technologies (GENE) rose some 96% after it said two new ground-breaking cancer risk assessment tests for colorectal cancer and breast cancer have now been completed and validated. "These tests allow Government Health Leaders to directly target future screening to the most high-risk patients, thereby massively reducing health system costs and providing much better outcomes for patients," said GTG chairman and acting CEO Paul Kasian. The firm said it plans to introduce the new genetic tests to health care providers through a global network of distribution partners.
In other sector news:
(+) Pieris Pharmaceuticals (PIRS) rose 4% after it reported a Q1 net loss of $0.20 per share, compared with a loss of $0.17 per share in the same quarter a year ago. The Street consensus estimate was for a net loss of $0.18 per share. Revenue for the March quarter came in at $8.5 million, up from $4.2 million last year and higher than the analyst consensus estimate of $7.6 million.
(-) TG Therapeutics (TGTX) was down some 5% after the company reported a slightly better-than-expected Q1 loss while expecting its cash resources to be sufficient to fund its operations through mid-2020. Net loss narrowed to $0.43 per share in Q1 from $0.59 per share a year earlier, better than analysts' estimates of $0.44 loss per share in a Capital IQ survey. Revenue was flat at $38,000 from a year ago, as expected by the Street.
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 health care companies in the S&P 500 (XLV) were 0.1% higher as a group while the Nasdaq Biotechnology Index (IBB) was slipping by 0.2%. The firm said it plans to introduce the new genetic tests to health care providers through a global network of distribution partners. (-) TG Therapeutics (TGTX) was down some 5% after the company reported a slightly better-than-expected Q1 loss while expecting its cash resources to be sufficient to fund its operations through mid-2020. | The firm said it plans to introduce the new genetic tests to health care providers through a global network of distribution partners. In other sector news: (+) Pieris Pharmaceuticals (PIRS) rose 4% after it reported a Q1 net loss of $0.20 per share, compared with a loss of $0.17 per share in the same quarter a year ago. Revenue for the March quarter came in at $8.5 million, up from $4.2 million last year and higher than the analyst consensus estimate of $7.6 million. | Health care stocks were mixed just ahead of the close of Friday's session, including a 0.2% rise in the NYSE Health Care Index (^NYP). In other sector news: (+) Pieris Pharmaceuticals (PIRS) rose 4% after it reported a Q1 net loss of $0.20 per share, compared with a loss of $0.17 per share in the same quarter a year ago. Net loss narrowed to $0.43 per share in Q1 from $0.59 per share a year earlier, better than analysts' estimates of $0.44 loss per share in a Capital IQ survey. | Top Health Care Stocks Health care stocks were mixed just ahead of the close of Friday's session, including a 0.2% rise in the NYSE Health Care Index (^NYP). The Street consensus estimate was for a net loss of $0.18 per share. |
32982.0 | 2019-05-08 00:00:00 UTC | The Health Care Select Sector SPDR Fund Experiences Big Outflow | ABT | https://www.nasdaq.com/articles/health-care-select-sector-spdr-fund-experiences-big-outflow-2019-05-08 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $546.6 million dollar outflow -- that's a 3.0% decrease week over week (from 204,820,000 to 198,670,000). Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.1%, Pfizer Inc (Symbol: PFE) is down about 0.6%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.7%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $88.89. 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 XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.1%, Pfizer Inc (Symbol: PFE) is down about 0.6%, and Abbott Laboratories (Symbol: ABT) 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $546.6 million dollar outflow -- that's a 3.0% decrease week over week (from 204,820,000 to 198,670,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.1%, Pfizer Inc (Symbol: PFE) is down about 0.6%, and Abbott Laboratories (Symbol: ABT) is lower by about 0.7%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $88.89. 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 XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.1%, Pfizer Inc (Symbol: PFE) is down about 0.6%, and Abbott Laboratories (Symbol: ABT) 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $546.6 million dollar outflow -- that's a 3.0% decrease week over week (from 204,820,000 to 198,670,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $88.89. | Among the largest underlying components of XLV, in trading today Johnson & Johnson (Symbol: JNJ) is up about 0.1%, Pfizer Inc (Symbol: PFE) is down about 0.6%, and Abbott Laboratories (Symbol: ABT) 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 The Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $546.6 million dollar outflow -- that's a 3.0% decrease week over week (from 204,820,000 to 198,670,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $80.61 per share, with $96.06 as the 52 week high point — that compares with a last trade of $88.89. |
32983.0 | 2019-05-02 00:00:00 UTC | ABBOTT LABORATORIES (ABT) Q1 2019 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q1-2019-earnings-call-transcript-2019-05-02 | nan | nan | Image source: The Motley Fool.
ABBOTT LABORATORIES (NYSE: ABT)
Q1 2019 Earnings Call
April 17, 2019, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to Abbott's First Quarter 2019 Earnings Conference Call. All participants will be able to listen only until the question-and-answer portion of this call. (Operator Instructions). This call is being recorded by Abbott. With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's expressed written permission.
I would now like to introduce Mr. Scott Leinenweber, Vice President, Investor Relations, Licensing, and Acquisitions.
Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions
Good morning, and thank you for joining us. With me today are Miles White, Chairman of the Board and Chief Executive Officer; and Robert Ford, President and Chief Operating Officer; and Brian Yoor, Executive Vice President, Finance and Chief Financial Officer.
Miles will provide opening remarks and Brian will discuss our performance and outlook in more detail. 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 2019. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, Risk Factors, to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended December 31st, 2018.
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 first quarter financial results and guidance 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 is defined in our earnings news release issued earlier today.
With that, I will now turn the call over to Miles.
Miles D. White -- Chairman and Chief Executive Officer
Okay. Thanks, Scott, and good morning. Today we announced results for the first quarter and we're off to another good start. Our sales growth was strong and right on target, coming in at 7% on an organic basis in the quarter, and ongoing earnings per share of $0.63 exceeded our previous guidance range. Our full-year 2019 adjusted earnings per share guidance of $3.15 to $3.25 remains unchanged and reflects mid-teens growth at the midpoint on a constant currency basis. As we've discussed previously, our emphasis today is on organic execution in the company. Today, all of our businesses have positive long-term outlooks and are well positioned with excellent products and attractive markets.
At the start of the year, we issued guidance that reflected another year of strong performance and through the first quarter, we're right on track with those expectations. We're particularly pleased with the exceptional performance of several long-term growth drivers that are leading the way including FreeStyle Libre, MitraClip and the Alinity systems. These life-changing technologies are positively impacting lives and achieving impressive results.
I'll now summarize our first quarter results, before turning the call over to Brian, and I'll start with Diagnostics, where sales were led by Core Laboratory growth of 10%. Alinity, our family of next-generation diagnostic systems, is driving strong growth internationally and we continue to achieve significant above market growth in the United States.
In Europe, we are both converting existing customers to Alinity and winning competitive bids for new business at a very high rate. We also recently increased our launch efforts for Alinity h, our hematology system and obtained a CE Mark for Alinity m, our highly automated molecular diagnostic system, along with several infectious disease tests. And we're expanding our menu of tests in key markets such as China and the United States. With a steady menu expansion on multiple different instruments across geographies, Alinity will be a significant growth driver for years to come.
In Nutrition, sales increased more than 6.5% in the quarter, reflecting strong execution and new product introductions. We continue to see good underlying market demand and growth and we're achieving above market growth in several geographies, particularly Asia and Latin America. Sales growth this quarter was balanced across our pediatric and adult nutrition businesses with our core leading brands of Similac, PediaSure, and Ensure, all contributing to strong growth overall.
In Established Pharmaceuticals, sales growth of 5.5% was right in line with our expectations and was a sequential improvement quarter to quarter. Performance in the quarter was led by 7.5% growth in our key emerging markets, which represent the most attractive long-term growth countries for our branded generics portfolio and include India, Brazil, Russia and China, along with several other emerging countries. Underlying growth dynamics in these countries continue to remain strong and intact.
And lastly, I'll cover Medical Devices, where sales grew nearly 10%, led by strong double-digit growth in Heart Failure, Structural Heart, Electrophysiology and Diabetes Care. In Heart Failure, growth of 23% was led by rapid US market adoption of our HeartMate 3 left ventricular assist device following FDA approval of a long-term use indication late last year. The superior patient outcomes demonstrated in the clinical trial that supported this approval have been a critical component of the growth and the share capture that we're achieving. In structural heart, several products across our broad portfolio contributed to strong double-digit growth in the quarter, including MitraClip, our market-leading device for the treatment of mitral regurgitation, a condition caused by a leaky heart valve.
During the quarter, we announced US FDA approval for a new expanded indication for MitraClip, which significantly expands the number of people that can be treated. The formal process of seeking Medicare reimbursement for this new indication has been initiated. During the quarter, we also filed for CE Mark for our new TriClip device, a first of its kind minimally invasive device for repairing a leaky tricuspid heart valve. We plan to initiate our US pivotal trial for TriClip in the coming months.
I'll wrap up with Diabetes Care, where sales grew over 40% in the quarter, led by FreeStyle Libre, our market-leading continuous glucose monitoring system or CGM. Libre continues to perform exceptionally well with worldwide sales of $380 million in the quarter, reflecting growth of 80%. In a relatively short amount of time, Libre has achieved global leadership among CGM systems for both Type 1 and Type 2 users. In order to meet the tremendous demand that we're seeing for Libre, we're adding a significant amount of new manufacturing capacity, which will come online starting in the second half of this year.
So in summary, we're right on track with our high expectations to start the year, all of our long-term growth drivers are intact and achieving significant growth, including FreeStyle Libre, MitraClip and Alinity. And we are well positioned to achieve the top tier sales and EPS growth targets that we set at the beginning of the year.
I'll now turn the call over to Brian to discuss our results and outlook for the year in more detail. Brian?
Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer
Thanks, Miles. As Scott mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis, which is consistent with our previous guidance.
Turning to our results. Sales for the first quarter increased 7.1% and exchange had a negative impact of 4.8% on sales versus the prior year. Reported sales increased 2% in the quarter. Regarding other aspects of the P&L, the adjusted gross margin ratio was 58.6% of sales, adjusted R&D investment was 7.4% of sales, and adjusted SG&A expense was 32.3% of sales. All of these ratios were in line with previous guidance.
Turning to our outlook for the full year, we continue to forecast organic sales growth of 6.5% to 7.5%. Based on current exchange rates, we would expect exchange to have a negative impact of around 2.5% on our full-year reported sales with the vast majority of the impact expected to occur in the first half of the year.
We continue to forecast an adjusted gross margin ratio of somewhat above 59.5% of sales for the full year, which reflects underlying gross margin improvement across our businesses. We continue to forecast adjusted R&D investment of around 7.5% of sales and adjusted SG&A expense of around 29.5% of sales for the full year.
Turning to our outlook for the second quarter, we forecast adjusted EPS of $0.79 to $0.81, which reflects strong double-digit underlying growth, partially offset by the impact of foreign exchange on our results. We forecast organic sales growth of around 7%. And at current rates, we would expect exchange to have a negative impact of around 4% on our second quarter reported sales.
We forecast an adjusted gross margin ratio of somewhat above 59% of sales, adjusted R&D investment of a little less than 7.5% of sales and adjusted SG&A expense of around 29.5% of sales. Lastly, we forecast net interest expense of around $150 million in the second quarter.
Before we open the call for questions, I'll now provide a quick overview of our second quarter sales growth outlook by business. For Established Pharmaceuticals, we forecast mid single-digit growth, which is comprised of mid to high single-digit growth in our priority key emerging markets along with a modest decline in other EPD sales, which reflects the recent continuation of a non-core low-margin supply agreement. In Nutrition, we forecast mid-single digit sales growth. In Diagnostics, we forecast Abbott's legacy Diagnostics business, which is comprised of Core Laboratory, Molecular, and Point of Care, to grow mid to high single digits. In rapid diagnostics, we forecast low to mid single digit sales growth. And in Medical Devices, we forecast high single-digit sales growth, which reflects continued double-digit growth in several areas of this business.
With that, we will now open the call for questions.
Questions and Answers:
Operator
Thank you. (Operator Instructions) And our first question comes from Matt Taylor from UBS. Your line is open.
Matthew Taylor -- UBS -- Analyst
Thanks and good morning. Thanks for taking the question. So it was encouraging to see a lot of the big growth drivers here stay on track and really drive healthy double-digit growth. So I was wondering if you could spend some time on each of those, and specifically address Libre. I think a lot of investors are anticipating Libre 2 and other enhancements that you could make there in addition to all the capacity you're adding. So can you talk about the pathway for Libre and some of the other big growth drivers?
Miles D. White -- Chairman and Chief Executive Officer
Sure, Matt. Thank you. I think I would say a couple of things first before I focus just on Libre. We're seeing strength across the board in a lot of device and diagnostic areas. There is a geography here and there, a product line here and there that we might not be completely satisfied with. But I think if you look at us, our product areas, even competitors in various spaces in medical devices, this whole sector is doing pretty well and the growth rates have improved in a number of cases. I know that there was a lot of pre-earnings noise out there about the continuity of the med device sector. I have to say from my perspective, I see nothing but a strong sector going forward.
While we've got great pipelines and great products, I think the entire sector has a bright future ahead of it here and the markets are all pretty attractive for us. So first of all, I think we're in a much healthier environment than might be reflected right now, and I think a lot of companies are actually doing really well in that environment. There's a lot of good new products and pipelines out there. I think the whole thing is pretty healthy. And then specifically to us, we've got, in our case, I think, great pipeline, great new products and launches in many of the segments and sectors we're in. To focus on Diabetes Care as a start, that's been a particular bright spot where clearly new technology and affordable technology has made a very big difference in life for diabetics, both type 1 and type 2 worldwide. Libre has been a pretty powerful leader in that segment on all accounts and all points.
We've been pretty enthused about its success, its uptake, its reception by patients all over the world. In a fairly short amount of time, we've achieved global leadership in terms of continuous glucose monitoring in both type 1 and type 2. I think part of the attraction to patients is obviously not having the finger stick. The information, the continuous nature of it, the way it allows diabetics to manage their health and manage diabetes has been life changing, and that's been reflective. And I think very importantly, it's been affordable to a degree that it's really -- it's become a very broadly accessible technology, which was our intent with it. It's got a unique ease of use and it's got appeal for any kind of patient. So I think that's pretty important and it's reflected in the reimbursement worldwide. 80% of sales are now reimbursed internationally over 30 countries. Well over half of US lives commercially -- commercial lives are covered.
So we're seeing a lot of -- a lot of support for the product in all ways. We've mentioned a number of times that we've invested heavily in capacity expansion. That is correct. We've put significant investment into that and as we've noted a couple of times, the first waves of that come online in the second half of this year, and then there's a set -- a steady cadence of capacity expansions under way that will come online sequentially after that. There won't be any constraints to the growth that is possible there. I think it's going to be a very different kind of device or diagnostic product than we've seen in the past. It's because there are so many millions of diabetics worldwide, this is not a niche product, not for type 1s or type 2s. There is not a niche here. There's a massive population around the world that needs to manage diabetes, and this product will be broadly accessible to all of them. So it calls for quite a lot of capacity. And in the second half of this year, that will be initiated.
We have a number of things we're expecting and waiting for. You asked about Libre 2. That is under review at the FDA. We have filed Libre 2 with alarms in the US as an iCGM. We're not going to forecast FDA review timelines, but we clearly have expectations to achieve that milestone. Trying to think what else to tell you about that, it's already on the market in Europe.
Matthew Taylor -- UBS -- Analyst
Maybe just one -- that's very comprehensive, and I'll give you a second to think there. I think the one follow-up I had was just on Libre 2. You mentioned iCGM. Can you talk about your confidence in your ability to get that? And I also wanted to ask about the payer dynamics. Before last call, you talked about some preferential co-pays. Can you talk about any developments that you're seeing on the payer side in terms of support for Libre?
Miles D. White -- Chairman and Chief Executive Officer
Yes. I'll tell you what, I'll let our Chief Operating Officer, who has come from that business answer that question for you. Robert?
Matthew Taylor -- UBS -- Analyst
Okay.
Robert B. Ford -- President and Chief Operating Officer
Yeah, so on Libre 2, specifically in the US, the filing of iCGM, I'll just say we know what the iCGM standards are, we know what needs to be achieved. And we filed in the US as an iCGM knowing what the standards need to be achieved. So we look at what we filed and we look at the standards and we look at what we filed and we know that we meet those standards. So to Miles' point, we're not going to forecast here as to when that approval will come through. But I think it's cleared up in terms of what we filed and why we filed. Regarding payers, specifically in the US, I think that what we've always intended for this product is to remove some of the hurdles, and affordability was one of those. And if you look at lot of the evolution of the reimbursement here in the US, that's slowly moving from something that was -- with a lot of prior authorizations, only going through mail order to now looking very much like the blood glucose monitoring market where we start to see less prior authorizations, formulary positions that are allowing patients to go to pharmacy and pick that up. So a lot of our managed care strategy was focused on driving that shift and a key part of that is the access and affordability. So we're seeing that in our managed care coverage. As Miles said, we are over 50% now of managed care life coverage in this patient population. And you see the shift into pharmacy. If you look at the script data, total Rxes, you can see that shift. You can see that occurring with Libre. And that was a very intentional strategy to accelerate adoption, specifically in the US by going to pharmacy, which is something that hadn't been done before with CGM systems and we did that and we're starting to kind of move that category into the pharmacy.
Matthew Taylor -- UBS -- Analyst
Great.
Miles D. White -- Chairman and Chief Executive Officer
You know, Matt, I know you guys like data that you can track publicly, you can track that every week. And we've been pretty pleased with the performance going through pharmacy. The patient acquisition and so forth continues to be obviously strong, frankly, right in line with our growth rates around the world as you'd expect, because we're not trying to drive price here, we're trying to drive the volume and acquisition of patients and obviously that's going pretty strongly.
So there's nothing but happiness about this product, I can tell you, we're pretty happy with it. It's doing really well. I actually think we're kind of in its early stages. And at this point, there is over a million type 1 users of Libre around the world and those only make up two-thirds of our user base. So with this kind of a growth rate, that kind of a user base, with the capacity expansion coming online, we're obviously expecting this to be a continuingly big and bigger product for us.
Matthew Taylor -- UBS -- Analyst
Great. Thanks for all the color and congrats.
Operator
Thank you. Our next question comes from David Lewis from Morgan Stanley. Your line is open.
David Lewis -- Morgan Stanley -- Analyst
Good morning. Just a couple of questions from me, one more broadly for Miles and maybe a quick follow-up. Miles, I just wonder if you can kind of share with us how you see sort of the pacing of the year from here. I think in the fourth quarter, the messaging was core growth drivers very much intact, some one-off dynamics were suppressing growth and you expected that growth to improve in the first quarter. And sure enough, that's sort of what happened here, we're back in sort of the 7% range. As you think about the balance of the year, you have these core growth drivers doing relatively well, a couple of businesses probably not performing where you'd like them perform. So how do we think about the pacing of the business from the first quarter on given some of these very solid businesses and some of the businesses that are not performing as you'd like?
Miles D. White -- Chairman and Chief Executive Officer
Well, couple of sort of baseline comments there. Every year we go into the year and that the gating of earnings per share for any given quarter tends to start out lower at the front end of the year and it always looks back-end loaded and -- toward the third and fourth quarters. I'd say, increasingly, that's leveling a little bit in that it's still a climb as the year goes on. But in our case, it's reflecting growth and penetration of new products. And there's a couple of seasonalities in there, but they're not big enough to really affect the overall earnings profile. We've increasingly seen stronger and stronger first quarters, but to be honest, third and fourth is always strong but it's driven right now by the incredible growth of Alinity, Libre, HeartMate, MitraClip. There's so much real growth in the new products that are launching that it just gets better and better as the year rolls on.
So I think it's always hard to gate to the penny. We try to get our estimates to a point like that, then we're always subject to a couple of lumpy comparisons to whatever happened last year and so on, I guess, because it looks optically weird when it's bumpy. But the fact is the growth is steady. As you said, it's not only intact, it's strong. There are a couple of places you could poke and say, "Okay, you must not be satisfied with that." And I'd say, "Yeah, you're right about that." But while we've got some places we're putting a lot more focus on and we've obviously miscalled the pace of improvement. I'd say, in general, I'm glad that what we have to work on for improvement is where it is and not in these major growth drivers. So, Alinity is performing strongly. We are winning over 95% of accounts where we already have the business and we're winning almost two-thirds of the accounts where we're head-to-head with an entrenched competitor. That's pretty powerful data when you consider that customers have to switch off mainframe systems. It's a big commitment. It takes months. There are long-term contracts. So -- but winning almost two-thirds of those new business, new accounts, that's pretty significant. That's a pretty powerful endorsement by the market of the Alinity systems and the laboratory solutions we're offering.
We are seeing improvement in growth just about every place. I'm really pleased with Nutrition. I had to sit around this call a number of times and explain, well, we're expecting it to get a little better. But it's performing really well and I think consistently so across all geographies and across both major product lines there. That's been a nice story and we've estimated to you that the growth rate of that business going forward, we will look for in the 4% to 6% range. And obviously we're a little beyond that. I don't know that we're going to constantly be beyond that. But that 4% to 6% range is all good, so anywhere in there is pretty good for us. There does tend to be some up and down with it in some countries depending on holidays and seasons and so forth.
But overall, if we're not watching it week to week, that's a pretty strong business right now and we like what we see. The management has done a great job worldwide. So as far as quarters coming, I'm hard-pressed to find a lot of things to point out as watch-outs, other than, as you pointed out, we got a couple of places where we think we've got work to do and to improve the performance of the business. I'm pleased that we can show that we know how to correct the performance of an underperforming business. But as you would probably rightly point out to me right now, there's a couple that are taking longer than I might have guessed.
David Lewis -- Morgan Stanley -- Analyst
Okay. Miles, very helpful as we think about the balance of the year. So I guess my follow-up would just be the other major growth driver Investors are focused on is MitraClip. So by our math, it looks like the US business accelerated for MitraClip even before the NCD. And I wonder if you could just sort of, A, talk about your time at the NCD, what you're seeing in the US. And then we had this other study, MITRA-FR, in the European business, and our sense on diligence is that's maybe suppressing some performance ex-US. So maybe time of the NCD US trends and sort of what you're seeing ex-US and outlook for the year? Thanks. Thanks so much.
Miles D. White -- Chairman and Chief Executive Officer
Okay. I'm going to have Robert take that.
Robert B. Ford -- President and Chief Operating Officer
Okay. So yeah, we had a very good quarter in Structural Heart and showed growth across many of our different franchises and geographies. Obviously, MitraClip was a big driver and we're right where we wanted to be with MitraClip. The FDA approval was a few months ahead, but I think that speaks to the data and the evidence that was generated through COAPT. Label is very much in line with our expectations and reflects the COAPT patient enrollment criteria. So we're now obviously working on CMS. That process is under way. These usually take between six months to nine months. If you look at our experience, when we achieved the primary MR reimbursement indication a few years back, that took us about seven-and-a-half months from when we started to when we got it approved. So we know how to do this. We're currently in the process and it will just be a little bit difficult to forecast here, but we're very optimistic. But I'd say reimbursement is only one of the building block. It's definitely an important building block, but it's not the only one to really think about this business as a multi-year double-digit kind of growth driver for us. There are other building blocks here that are very important that we're currently already under way.
Opening of new centers is a key aspect here and the timing and the framework and the cycle of how we do that is important. We have currently about 350 implanting centers in the US and I think over the next few years we'll see that number get to about 550.
There's a lot of training that's involved here also, sales force training, center training, implanter training. And if you look at a sales rep, it will usually take them between six months to nine months until they get fully proficient on MitraClip. So -- and then there's obviously the development, support and sustaining of a patient referral network as we build awareness of the therapy and the technology among the physician groups and ensure that those get funneled into our implant centers. So those are some of the key blocks. But I'd say we know how to do this, we've been doing it in the US for the last four years and we're not going to wait for final CMS approval before we start hiring. We're already hiring more reps. We are expanding our sales force. We're expanding our clinical specialists so that we're going to be ready to go. So we're definitely taking a -- an invest ahead approach here. So I like our position. The mitral is a tremendous opportunity, unmet need and an opportunity for Abbott. And quite frankly, we've been -- this position didn't happen just because of COAPT. We've been building this position for over a decade. So whether it's mitral repair or mitral replacement, we're in a pretty unique position. So I do see kind of sequential growth as we go through the year.
Your question on MITRA-FR. Yeah, we did see that impact some of our European markets. I mean, that was a French study, so it did have a little bit of an impact on some of the kind of implanting rates in some key European markets. But I think that's more of a transition thing. I don't think that's a fundamental change in the market in Europe. And we had expanded internationally to other large opportunities. Japan is another market where we see a very large opportunity for us. So that is also going to help kind of drive the growth. I think the MITRA-FR study will take another quarter or so to play out, but I -- we do expect the international business to kind of continue its growth.
David Lewis -- Morgan Stanley -- Analyst
Okay. Thanks so much.
Operator
Thank you. Our next question comes from Bob Hopkins from Bank of America. Your line is open.
Bob Hopkins -- Bank of America -- Analyst
Thank you and good morning. Just have two pretty direct questions here. One more to focus on the growth drivers. On Alinity, a question on the US launch. When do you think we'll see the full impact of that launch in the US? When does that really show up in results in a meaningful way? Thank you.
Miles D. White -- Chairman and Chief Executive Officer
You know, Bob, I'd say, show up, we expect to get to almost full menu by the end of this year. Now that's kind of a running thing and we don't want to put a whole lot of effort out until we've got significant menu. We do have significant menu now, but we'd like to get more of it approved and then go. So I think you'll start to see the US show up in the numbers really in 2020 because even if we were launching now, I think you'd be hard pressed to see it relative to the size of the business worldwide. We're growing at 9% right now in the US without much emphasis on Alinity. So, I'd say, you're probably going to see a measurable impact from it in 2020. But frankly right now in the US, growth rate is pretty high, even while we expand that menu.
Bob Hopkins -- Bank of America -- Analyst
Okay. And then the other question I just want to ask, obviously you've got a lot of growth drivers that are driving really strong results in devices overall. One thing that's been a little weak is on the neuromod side the last couple of quarters. So I guess my question on neuromod is, do you think the weakness in the US is related to a slower market at all? Or are these Abbott specific issues? And when do you think we could expect to turn?
Miles D. White -- Chairman and Chief Executive Officer
A good question. I kind of anticipated this one. This is the one where I'm going to fall on my own sword for how fast I forecasted the turn here for us. Okay, there's clearly an Abbott issue here, our own management, which I've said before. And I think we, I, in particular, have miscalled the pace at which we would turn our own performance and where we underestimated that was, we're expanding our sales force by 40% to 50% and that's been a little more disruptive than I think we had expected. But I'm confident in the business, I'm confident in the management, I'm confident in the direction we're headed, I clearly wasn't right about the timing.
So I'm not worrying about it from the standpoint of, boy, this business is really broken or hurt. It's not. And so I have a lot of confidence about that. As far as growth goes, I don't think that it's a high double-digit grower. But it's a double-digit grower. And I think in med devices and in some of these markets, as it becomes established, to be maintaining a double-digit growth rate as a market segment, I think is pretty healthy. So I haven't -- we're not losing any confidence in the segments or the potential in the segments or the growth in the segment. I'd put the growth sort of in that double-digit range, that's what we would expect. And it's not 50%, but it's not 5% either. So our performance in this particular segment is clearly underperforming what it should be. So I'd say, if you want to know if the market is slowing, well, it's not 50%. But slow is a relative thing. I'd take any double-digit market and I think this is a healthy market.
Bob Hopkins -- Bank of America -- Analyst
Great, thank you and congrats on the quarter.
Operator
Thank you. Our next question comes from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen -- Wells Fargo -- Analyst
Good morning, thanks for taking the question. Miles, couple of product-related questions, starting with Rhythm Management and Heart Failure. US Rhythm Management was a little soft. Was that market related or Abbott-specific? And I understand, you made some management changes there. How quickly can you turn that around? And secondly, in Heart Failure, that was obviously very strong. Could you talk about the sustainability of that? Thank you. And I had one follow-up.
Miles D. White -- Chairman and Chief Executive Officer
Thank you. I could talk about that, but I'm going to hand it to Robert to talk about.
Robert B. Ford -- President and Chief Operating Officer
Yeah. So in our Electrophysiology business, Larry, we definitely had a lower kind of growth rate in the US of about 6% when international grew 20%. And that was -- it's not a market thing, that's more of an Abbott as we get ready to launch -- as we're launching our new ablation catheter TactiCath SE in the US, which we've already launched OUS. We obviously saw some kind of inventory depletion of the older product in getting ready for the new product. So we expect that to get back to the double-digit growth rate in the US on the EP side. On CRM, you know, that is definitely another area of disappointment and obviously focus for us. We've showed some recovery in the international markets and I think the team there has done a good job at execution. But we're obviously not satisfied with our US performance. It's an important business for us and we got to do better. But what we've seen internationally is where we've deployed a dedicated EP and CRM teams, the business does better.
It does better in CRM and quite frankly it does better in EP. So we -- as you saw, we recently made some organizational changes here to sharpen our focus and create a more, I'd say, stand-alone vertical business unit in CRM. We think that's going to get the accountability and the focus that we need out in the commercial field, especially in the US. And we've got several new product innovations that are progressing very nicely, our next-gen ICD and our two leadless programs. And now this structure here will ensure that they get the focus that they need.
In Heart Failure, as you mentioned, our sales were up 23%. US was up 26% and that was the impact of the, I'd say, the rapid share capture that we achieved in the US in the destination therapy, I'd say, a pretty strong execution of the commercial team with the product, achieving about 20 share points in that quarter. So we expect that share to kind of maintain. The product has done very well, not only on our, let's say, traditional Abbott accounts, but even in our competitor accounts, that's doing very nicely also. So we look -- we think Heart Failure has got strong potential also throughout the year with CardioMEMS. It's a little bit smaller product here, but it also continues to do very well.
Larry Biegelsen -- Wells Fargo -- Analyst
That's very helpful. And just lastly for me, Miles, as you pay down more debt, we're starting to get more questions on capital allocation. Can you please provide us with your latest thoughts, especially as it relates to M&A? When could we expect to see a pickup in M&A? Thanks for taking the questions.
Miles D. White -- Chairman and Chief Executive Officer
You're welcome. Well, a couple of things. First of all, I think the Company has done a great job of paying down debt, cash management, cash generation etc. It's been a little unprecedented I think for as much debt as we had. I mean, when we were done with the St. Jude and Alere acquisitions, I think we were at about $28 billion something like that. We've paid down more than $10 billion of that. So -- and almost $8.5 billion of it just last year, another $0.5 billion in the first quarter of this year. So our debt -- everybody watches net debt-to-EBITDA ratios. We're down to about 2x right now from what was I think about 4.3 when we completed the second of the two acquisitions. That's a pretty rapid paydown. We expect to be about 1.5 times by year end. So I think I could declare strategic flexibility achieved. Obviously, we want to keep paying down the debt. We've got nice strong cash flow. We've got a number of choices. We increased the dividend, as you know, back in December by 14%. And we tend to target that dividend at around 40% to 45% of EPS. And I think right now we're at 40% something like that. EPS is growing pretty rapidly, so probably be adjusting that at some point. But there is good times and bad times to purchase shares, as you know. And our share repurchases, we haven't done a lot of share repurchasing, we've done some primarily just to offset dilution, but that has not been a big consumer of capital. We have made significant investments internally in our growth with Alinity expansion and with Libre capacity expansion. And again, while those are important users of our capital with high return, we still have pretty strong cash flow.
So back to the point of your question, we have strategic flexibility, we have strong cash flow, we have choice. The -- I think the question is whether or not at any point, there's something out there that -- that fits us or we're particularly interested in or that we're focused on etc. And as you know, I've told you in the past, even if I have done, I wouldn't tell you, that would be true. I would say today what is also true is we are very much focused on our internal organic execution and that's getting sort of 95% of our attention. We're not paying attention to other opportunities.
We always are tracking and monitoring other opportunities. But I have to tell you, right now, I don't see a very robust target rich environment out there, it's not target rich, I don't think it is, anyway. And I don't see a lot of meaningful adjunctive things that necessarily fit what we're trying to do. So, obviously, as we move forward here, one of our challenges is going to be capital deployment, because we're going to have a lot of it. And I think we're going to generate a lot of cash over the coming years, I think we're going to generate a lot of profit. And we obviously want to either invest that or return it to shareholders at the highest possible return. And if it means there's opportunities in an M&A, as you know, historically, we've always been pretty attentive and diligent about that. I wouldn't forecast it when or what.
We -- but we are out of the range where we are constrained about our choices. We are no longer constrained. And I think that's a positive. We've gotten there pretty quickly. And that means that we can consider whatever. We don't happen to be focused on M&A right now, but M&A isn't a steady every year thing, it's opportunistic when it fits the strategy and the intent of the company and when an opportunity fits and a return can be earned. And so if something like that comes along, I'd say we're well positioned, we'd be ready to do something. But to be honest, we haven't seen something that attractive.
Larry Biegelsen -- Wells Fargo -- Analyst
Thanks for the comprehensive answer.
Operator
Thank you. Our next question comes from Vijay Kumar from Evercore ISI. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Hey guys, congrats on a nice start to the year. And thanks for taking my question. So maybe I'll start one on the guidance, and I have a follow-up. On the guidance, Miles, MitraClip approval came in earlier. I know in the last call you said you are not expecting any inflection in MitraClip, but it looks like there might be some contribution in the back half and I think FX, you know, assumptions change modestly, it's slightly better. We had a I/IIb. Nutrition coming in better. I'm just curious on the guidance not being tweaked or changed. I know it's not your style, but I'm just curious on your guidance for the year.
Miles D. White -- Chairman and Chief Executive Officer
Yeah, Vijay, thanks for the question. You know you kind of answered it at the end of your question there when you said it's not my style. I rarely, if ever, raise in the first quarter, I kind of feel like -- if I raised in the first quarter, why didn't I put it in the original plan three months ago or six months ago? But I have generally waited to consider such a thing in the mid-year because at various points in time, well, there's been a number of times we've all been burned by exchange around April, May, June or something for the remainder of the year. I don't actually expect that this year -- I'm no forecaster of exchange and we're not currency traders as you know. But just based on what we all see -- we were all -- like all industries, all companies, all multinationals and so forth, we were all cautious about China trade and exchange and volatility, the price of oil, even Brexit. These were sort of the big factors everybody talked about.
You know oil is almost $70. And I don't think Brexit is weighing on a lot of minds, it's weighing on a lot of European minds, it's weighing on a lot of UK minds and it depends on how much business you got tied up in the UK. But companies have had time to figure out how to mitigate a lot of these things and deal with them. So, I'd say, the reason that we didn't look at raising in the first quarter is because I just don't raise in the first quarter. We're obviously off to a strong start. As I told you before, all of our growth story is solid and intact. I'm not seeing any -- gosh, I feel like I should knock on wood, I'm not seeing any threats to the growth vehicles in the business. And while some analysts have speculated that med-tech or med devices is somehow slowing, I'd tell you, I don't see that. And I don't think a lot of other CEOs in medical devices are seeing it either. In fact, if anything, I see projected growth rates rising across competitors. I take that as a very healthy signal from the industry that people are seeing positive robust opportunity. I think a lot of people have new products and robust pipelines. And that's healthy for the whole sector worldwide. There's a lot of things that haven't changed. But we've been navigating those kinds of things for a while and doing well as an industry and as a company. So could we have raised in the first quarter? Well, a lot of you may think so, I'm a little more cautious than that. I always kind of wait until the mid-year so -- to kind of assess things.
I like how the company is performing. I think the company is performing really well. I'm not sure we've ever had such healthy pipeline so broadly across the line in the company. So I don't have any negatives. I'm just thinking that one quarter into the year seems a little early to me. That's about as much as I can tell, that's an honest answer.
Vijay Kumar -- Evercore ISI -- Analyst
That's fair enough, Miles. And so this is -- whatever it is, it's the macro, it's not the fundamental. I guess that related to that, I guess the question we're getting a lot and not maybe just specific to Abbott, but the sector, is the sector, the fundamentals that we're seeing, is this sustainable? And I think specific to Abbott, the Libre -- can Libre be a north of $5 billion product for you guys longer term? And the reason I ask is sustainability. I think you guys gave some numbers on MitraClip in terms of TAM. Libre, I think you've kind of left it open ended saying it's a multibillion-dollar product. And I'm just curious whether the Libre 2 that was submitted to the FDA, is that the same product as the Libre 2 in Europe or was the algorithm changed for the US submission? Thank you.
Robert B. Ford -- President and Chief Operating Officer
It's a similar product, yes. Vijay, this is Robert, it's a similar product, it's just got a different label.
Vijay Kumar -- Evercore ISI -- Analyst
And on the TAM for Libre, can this be north of $5 billion for you guys longer term?
Robert B. Ford -- President and Chief Operating Officer
Listen, we've always thought of this as a -- I mean, if you look at the amount of diabetic patients in the world where this technology tends to have a greater impact, it tends to have a greater impact with insulin users, right? Whether you're a type 1 or a type 2 on a conventional kind of injection therapy. And there are 40 million of them around the world. 20 million of them in emerging markets and the other half in developed markets. So we think this is, as we said, a multibillion-dollar opportunity. Whether it's $2 billion, $3 billion, $4 billion, $5 billion, I mean you can look at these patient segments and patient numbers and it's very big, so yeah.
Miles D. White -- Chairman and Chief Executive Officer
Vijay, I would add a couple of things to that. We're investing in capacity expansion accordingly. But there's sort of more to the story. As you know, there's a Libre 2 in Europe. There's a Libre 2 under review in the United States. There's a Libre 3 in development and has been in development for some time. And there's a lot of potential for expansion of this product to other analytes besides glucose or additional analytes to glucose for the diabetic. There are other improvements that we can make in the product. All of that is in development. We know this platform well. It is a platform. It is not just a glucose test kit. And so there's, I guess, what I'll call an R&D development innovation strategy with it that is under way, has been under way. Our capacity expansion plans are well planned. We've already got almost 1.5 million users of Libre. And to be honest, we haven't exactly let the floodgates go. So I think you can kind of back into the math of that. This product is already great. Look, it's probably $1.5 billion or more in sales, more, and it's growing at 80%. So doesn't take very long to figure out the math of what you just asked.
Vijay Kumar -- Evercore ISI -- Analyst
Thank you, guys.
Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions
Operator, we'll, take one more question.
Operator
Thank you. And our final question comes from Chris Pasquale from Guggenheim. Your line is open.
Chris Pasquale -- Guggenheim -- Analyst
Thanks. Appreciate letting [ph] me in. Miles, one follow-up on Bob's neuro question. We've seen new product launches drive momentum for a number of companies in that market over the past couple of years. You guys really haven't talked much about your pipeline there. Are there new products coming that could help turn that segment around? Or is it really just a matter of letting the dust settle on the sales force expansion?
Miles D. White -- Chairman and Chief Executive Officer
Well, I'd say it's kind of like when you've got some issues with your own commercial execution and your sales force and you know you got to go fix them, it's kind of like ducking the question to go talk about your pipeline. So my own thought has been let's just address the sales force answer and not try to dodge and weave here about our own execution, which we admit we can do better and we're going to do better. Now having said that, yes, is there a pipeline in development? Robert?
Robert B. Ford -- President and Chief Operating Officer
Yes. So to that point, we also know that our first and foremost priority is the field execution. We also know that innovation and evidence also has an impact on our ability to kind of grow. So we've doubled our R&D investment in this business since taking it over about two years ago. And I do expect to see two new systems in the pain area come to market toward the end of this year, beginning of next year, and I think that will have a positive impact, obviously, ensuring that our sales force is getting up to speed and doing what it needs to do. Evidence is also another important driver here. So we do have trials that we're investing and working on for differentiated claims, whether it's a pelvic pain or a pre-back surgery kind of claim. So your point of, yes, we are investing, we have to make sure we address the field force, but we do have a pipeline here that we know we're going to need to be able to have a sustainable double-digit growth business.
Chris Pasquale -- Guggenheim -- Analyst
That's helpful. And then my last one, just Structural Heart, already a bright spot for the company today and feels like it has the potential to get even better as the pipeline there matures. Could you just go through your latest thinking on Tendyne in Europe, which we should be getting relatively close to here and then also Portico in the US? Thanks.
Miles D. White -- Chairman and Chief Executive Officer
Yes. So I think that's one bright area in the device portfolio. We've made a lot of investments here. We talked a little bit about triclip that we should see toward the end of this year. Tendyne, to your point, we filed it last year for CE Mark. So we're also right now on target to see that come to market at the end of this year. We've got a fourth-generation MitraClip product that will be coming more toward the second half of this year also. So we're excited about that. And TAVR, we expect to see that in the U.S. -- Portico in the U.S. in the first half of next year.
Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions
Okay. Well, good. Thank you, operator, and thank you for all of your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11 a.m. Central Time today on Abbott Investor Relations website at abbottinvestor.com. Thank you for joining us today.
Operator
Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone, have a wonderful day.
Duration: 52 minutes
Call participants:
Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions
Miles D. White -- Chairman and Chief Executive Officer
Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer
Matthew Taylor -- UBS -- Analyst
Robert B. Ford -- President and Chief Operating Officer
David Lewis -- Morgan Stanley -- Analyst
Bob Hopkins -- Bank of America -- Analyst
Larry Biegelsen -- Wells Fargo -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Chris Pasquale -- Guggenheim -- 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. | Duration: 52 minutes Call participants: Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Matthew Taylor -- UBS -- Analyst Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Bob Hopkins -- Bank of America -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Chris Pasquale -- Guggenheim -- Analyst More ABT analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. In Heart Failure, growth of 23% was led by rapid US market adoption of our HeartMate 3 left ventricular assist device following FDA approval of a long-term use indication late last year. Turning to our outlook for the second quarter, we forecast adjusted EPS of $0.79 to $0.81, which reflects strong double-digit underlying growth, partially offset by the impact of foreign exchange on our results. | Duration: 52 minutes Call participants: Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Matthew Taylor -- UBS -- Analyst Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Bob Hopkins -- Bank of America -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Chris Pasquale -- Guggenheim -- Analyst More ABT analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. With me today are Miles White, Chairman of the Board and Chief Executive Officer; and Robert Ford, President and Chief Operating Officer; and Brian Yoor, Executive Vice President, Finance and Chief Financial Officer. And lastly, I'll cover Medical Devices, where sales grew nearly 10%, led by strong double-digit growth in Heart Failure, Structural Heart, Electrophysiology and Diabetes Care. | Duration: 52 minutes Call participants: Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Matthew Taylor -- UBS -- Analyst Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Bob Hopkins -- Bank of America -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Chris Pasquale -- Guggenheim -- Analyst More ABT analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. So in summary, we're right on track with our high expectations to start the year, all of our long-term growth drivers are intact and achieving significant growth, including FreeStyle Libre, MitraClip and Alinity. I think in the fourth quarter, the messaging was core growth drivers very much intact, some one-off dynamics were suppressing growth and you expected that growth to improve in the first quarter. | Duration: 52 minutes Call participants: Scott Leinenweber -- Vice President-Investor Relations, Licensing, and Acquisitions Miles D. White -- Chairman and Chief Executive Officer Brian B. Yoor -- Executive Vice President, Finance and Chief Financial Officer Matthew Taylor -- UBS -- Analyst Robert B. Ford -- President and Chief Operating Officer David Lewis -- Morgan Stanley -- Analyst Bob Hopkins -- Bank of America -- Analyst Larry Biegelsen -- Wells Fargo -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Chris Pasquale -- Guggenheim -- Analyst More ABT analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Please note that first quarter financial results and guidance provided on the call today for sales, EPS and line items of the P&L will be for continuing operations only. At the start of the year, we issued guidance that reflected another year of strong performance and through the first quarter, we're right on track with those expectations. |
32984.0 | 2019-05-02 00:00:00 UTC | Abbott Gets WHO Prequalification Approval For HIV Point-of-Care Test | ABT | https://www.nasdaq.com/articles/abbott-gets-who-prequalification-approval-hiv-point-care-test-2019-05-02 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) said Thursday that m-PIMA HIV-1/2 VL, the company's point-of-care viral load diagnostic test, has received the World Health Organization's Prequalification approval or WHO PQ. The test received CE Mark in December 2018.
The company noted that the WHO prequalification will enable it to bring critical technology to more resource-limited settings.
Abbott's m-PIMA HIV-1/2 VL is a quantitative nucleic acid amplification test for viral load measurement of HIV type 1 groups M/N and O, and HIV-2 in plasma samples.
The portable platform can be brought into the most remote locations and is easy to use. It can be deployed at the point of care and is designed to measure viral load in under 70 minutes, while the patient is still present.
Damian Halloran, vice president, Infectious Disease - Emerging Markets, Rapid Diagnostics, Abbott said, "With WHO PQ, global funders and ministries of health can now confidently expand access to viral load testing, reaching more people who need the test, with the most compact and efficient point-of-care HIV diagnostic platform available anywhere in the world today."
The WHO recommends that everyone receiving antiretroviral therapy or ART should undergo a viral load test at 6 months and 12 months, and annually thereafter, if the individual is stable on ART. Viral load testing is seen as the gold standard for monitoring ART treatment failure.
However, Abbott noted that very few people in resource-limited settings, such as select countries in sub-Saharan Africa, Asia and Latin America, have access to the necessary level of care.
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) said Thursday that m-PIMA HIV-1/2 VL, the company's point-of-care viral load diagnostic test, has received the World Health Organization's Prequalification approval or WHO PQ. Abbott's m-PIMA HIV-1/2 VL is a quantitative nucleic acid amplification test for viral load measurement of HIV type 1 groups M/N and O, and HIV-2 in plasma samples. However, Abbott noted that very few people in resource-limited settings, such as select countries in sub-Saharan Africa, Asia and Latin America, have access to the necessary level of care. | (RTTNews) - Abbott Laboratories (ABT) said Thursday that m-PIMA HIV-1/2 VL, the company's point-of-care viral load diagnostic test, has received the World Health Organization's Prequalification approval or WHO PQ. Abbott's m-PIMA HIV-1/2 VL is a quantitative nucleic acid amplification test for viral load measurement of HIV type 1 groups M/N and O, and HIV-2 in plasma samples. Damian Halloran, vice president, Infectious Disease - Emerging Markets, Rapid Diagnostics, Abbott said, "With WHO PQ, global funders and ministries of health can now confidently expand access to viral load testing, reaching more people who need the test, with the most compact and efficient point-of-care HIV diagnostic platform available anywhere in the world today." | (RTTNews) - Abbott Laboratories (ABT) said Thursday that m-PIMA HIV-1/2 VL, the company's point-of-care viral load diagnostic test, has received the World Health Organization's Prequalification approval or WHO PQ. Damian Halloran, vice president, Infectious Disease - Emerging Markets, Rapid Diagnostics, Abbott said, "With WHO PQ, global funders and ministries of health can now confidently expand access to viral load testing, reaching more people who need the test, with the most compact and efficient point-of-care HIV diagnostic platform available anywhere in the world today." The WHO recommends that everyone receiving antiretroviral therapy or ART should undergo a viral load test at 6 months and 12 months, and annually thereafter, if the individual is stable on ART. | (RTTNews) - Abbott Laboratories (ABT) said Thursday that m-PIMA HIV-1/2 VL, the company's point-of-care viral load diagnostic test, has received the World Health Organization's Prequalification approval or WHO PQ. The test received CE Mark in December 2018. The company noted that the WHO prequalification will enable it to bring critical technology to more resource-limited settings. |
32985.0 | 2019-04-30 00:00:00 UTC | SPYG, FB, GOOG, ABT: ETF Inflow Alert | ABT | https://www.nasdaq.com/articles/spyg-fb-goog-abt%3A-etf-inflow-alert-2019-04-30 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $42.5 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 124,800,000 to 125,900,000). Among the largest underlying components of SPYG, in trading today Facebook Inc (Symbol: FB) is up about 0.1%, Alphabet Inc (Symbol: GOOG) is off about 8.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.74 as the 52 week high point — that compares with a last trade of $38.52. 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 ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of SPYG, in trading today Facebook Inc (Symbol: FB) is up about 0.1%, Alphabet Inc (Symbol: GOOG) is off about 8.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.74 as the 52 week high point — that compares with a last trade of $38.52. 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 SPYG, in trading today Facebook Inc (Symbol: FB) is up about 0.1%, Alphabet Inc (Symbol: GOOG) is off about 8.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.74 as the 52 week high point — that compares with a last trade of $38.52. 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 ». | Among the largest underlying components of SPYG, in trading today Facebook Inc (Symbol: FB) is up about 0.1%, Alphabet Inc (Symbol: GOOG) is off about 8.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $42.5 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 124,800,000 to 125,900,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.74 as the 52 week high point — that compares with a last trade of $38.52. | Among the largest underlying components of SPYG, in trading today Facebook Inc (Symbol: FB) is up about 0.1%, Alphabet Inc (Symbol: GOOG) is off about 8.2%, and Abbott Laboratories (Symbol: ABT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $42.5 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 124,800,000 to 125,900,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $30.31 per share, with $38.74 as the 52 week high point — that compares with a last trade of $38.52. |
32986.0 | 2019-04-29 00:00:00 UTC | 20 High-Growth Stocks For The Next 20 Years | ABT | https://www.nasdaq.com/articles/20-high-growth-stocks-next-20-years-2019-04-29 | nan | nan | It's been shown that long-term investing outperforms short-term trading and historically, some of the stock markets best performing stocks have been those delivering break-neck revenue growth. There's no telling which stocks will be the next big winners, but disruptive, fast-growing companies could position you best for market-beating returns. If so, then these 20 high-growth companies could be top stocks to stash away for the long haul.
No. 1 Alarm.com
Alarm.com (NASDAQ: ALRM) is a modern-day security guard for increasingly smarter homes. Its suite of security and safety-oriented products are digitally connected for homeowners by installation pros. Want to control your heating and lights from your smartphone while you're at work? No problem. Want to see who is knocking on your door or see when your teens are coming or going? Alarm.com's got you covered. Sales were $421 million in 2018, up 24% from 2017, yet only 6 million of the over 120 millions homes in North America are protected by Alarm.com, suggesting there's still plenty of room for future growth.
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No. 2: Alteryx
Data scientists use Alteryx (NYSE: AYX) to inform their merchandising, fuel hedging, clinical-trial management, and derivatives modeling. It's tough to find an industry where there isn't a use case for Alteryx's data mining software. Alteryx's customer count has increased at an 82% compounded annual pace since Q1, 2015 and growing use by existing customers and new accounts resulted in sales of $254 million in fiscal 2018, up 55% from fiscal 2017. Even better, Alteryx's already profitable, earning $0.82 per share last fiscal year. Alteryx expects revenue of $345 million in fiscal 2019, up 36%, but it's long-term opportunity could be much bigger. The big data and analytics market is valued at $49 billion worldwide, according to IDC.
No. 3: Anaplan
Decision-makers are increasingly turning to Anaplan's (NYSE: PLAN) budgeting and forecasting tools to see the impact of changing assumptions in real-time. Anaplan's ability to translate ideas into money-saving initiatives helped its revenue grow 43% to $240.6 million in fiscal 2019. Revenue is expected to eclipse $310 million in fiscal 2020. The company's working with 250 of the Fortune 2000 companies but its addressable market is north of $20 billion annually, so the potential for additional revenue growth is significant.
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No. 4. Aurora Cannabis
The second-largest Canadian cannabis company, Aurora Cannabis (NYSE: ACB) could win a large share of the $150 billion global marijuana market as more sales move to regulated retailers from the black market. Canada's national recreational marijuana market opened last year, giving Aurora Cannabis an opportunity to capture the 5 billion Canadian dollars spent illegally there every year. In the fourth quarter, it sold about 7,000 kilograms of marijuana, resulting in sales of CA$54 million, up 362% year over year. As of March, Aurora Cannabis' operating at a 120,000 kilograms per year pace. Importantly, projects are planned that could increase production to 700,000 kilos or more per year, which will enable it serve new markets, such as the United States, if marijuana legalization spreads.
No. 5: bluebird bio
Delivering genetic fixes for genetic disorders using deactivated viruses is a game changing scientific advance. Gene therapy is in its infancy, but bluebird bio (NASDAQ: BLUE) has one of the most advanced pipelines of these revolutionary treatments. In 2019, it expects European approval of its first gene therapy, Zynteglo, which inserts a functional copy of the B-globin gene in a patient's stem cells, restoring hemoglobin production in beta-thalassemia patients. If approved, it could eliminate the need for regular blood transfusions for thousands of people. A second therapy in its pipeline that's fast-approaching is bb2121, which targets multiple myeloma, a common blood cancer. There's no guarantee bluebird bio's gene therapies will win approval, but if they get an OK, these one-time treatments could generate billions of dollars in sales.
No. 6: Canopy Growth
The global marijuana markets biggest player, Canopy Growth (NYSE: CGC) is a vertically integrated cannabis company that grows its own marijuana and manufactures and sells its own marijuana products. In January 2019, it became the first large marijuana company to announce plans to enter the $50 billion U.S. marijuana market through a hemp-focused venture in New York. Canopy Growth's revenue skyrocketed 283% year over year to CA$83 million thanks to CA$58 million in Canadian recreational, adult-use sales. A $4 billion investment by wine and beer giant Constellation Brands (NYSE: STZ) gives it the more financial firepower than any other publicly traded pot stock, suggesting it has ample financial flexibility to take advantage of growing momentum to legalize marijuana worldwide.
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No. 7: DexCom
Diabetes is a life-threatening condition characterized by an inability to produce insulin (type 1) or a resistance to insulin (type 2), a protein created by the pancreas that helps the body transform glucose sugar in a future source of energy. Globally, over 420 million people have diabetes, including nearly 100 million people in the U.S. and Europe. Left untreated, diabetes can cause cardiovascular disease, blindness, and nerve loss.
Historically, diabetics relied on point-in-time finger sticks to measure blood sugar to determine insulin dosing. However, diabetics spend an average of 70% of their day outside their target glucose range, indicating new approaches, including DexCom's (NASDAQ: DXCM) continuous glucose monitors (CGM), are necessary. DexCom's CGMs provide real-time glucose readings and high-low glucose alerts that improve insulin decisions. Its sales increased 44% year over year to $1.032 billion in 2018 and while it faces stiff competition from Abbott Labs (NYSE: ABT), DexCom is still guiding for 14% growth this year.
No. 8: Diamondback Energy
Global energy demand is climbing and that should help drive revenue higher at Diamondback Energy (NASDAQ: FANG), the third largest oil and gas producer in the prolific Permian Basin in Western Texas and Nevada. In 2007, it had about 4,000 acres in the Permian. Today, it has approximately 604,367 gross acres there, including 231,100 acres in the Midland Basin and approximately 232,143 acres in the Delaware Basin. Using horizontal drilling, Diamondback Energy is producing increasingly more oil and gas at attractive yields. It completed its first horizontal wells in 2012 and now, it operates nearly 1,200 horizontal wells. Diamondback's Permian Basin net production was 47,610 MBOE in 2018, comprising 72% oil, 16% natural gas liquids, and 12% natural gas. It drilled 189 gross wells in 2018 and in 2019, it expects to complete at least 290 horizontal wells. Revenue was $2.2 billion in 2018, up from $527 million in 2016, and given estimated proved oil and natural gas reserves of 992,001 MBOE, Diamondback could be one of the best oil stocks for long-term investors to own.
No. 9: Elastic N.V.
Elastic N.V. (NYSE: ESTC) is the Google of corporate search. It allows workers to instantly access a treasure trove of valuable information that could otherwise be difficult to find or make sense of. Sales were $159.9 million in fiscal 2018 and they're expected to reach $265 million in fiscal 2019. In fiscal 2020, the consensus estimate is for sales to increase to $365 million, which is more than double its fiscal 2018 revenue. There's no telling if the company will deliver on those estimates, but its leadership is undoubtedly motivated. Altogether, the company's founders and C-suite officers own nearly 40% of the company.
No. 10: Exact Sciences
Colonoscopies are expensive and the pre-test regimen keeps many from getting this life-saving colon cancer test. Fortunately, now there's an alternative. In 2016, Exact Sciences (NASDAQ: EXAS) launched Cologuard, a screening kit that allows people to mail a stool sample to a lab for an evaluation. So far, the response from consumers has been terrific. Revenue was $454 million in 2018, up 70% year over year. In 2019, it's modeling for revenue of between $710 million to $730 million. Currently, it only has 4% market share, but it believes it will eventually reach 40% market share. If so, that means Cologuard could generate $4 billion or more in annual revenue. Exact Sciences isn't stopping there, either. It's working with the Mayo Clinic on liquid biopsy tests with the hope of catching cancer in its earliest stages, when it's easiest to defeat.
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No. 11: Guardant Health
We're at the cusp of a revolutionary change in how we treat cancer. Rather than targeting cancer by the location of its origin, we're discovering new ways to leverage genetic insight to find the treatments that are most likely to work. Guardant Health's (NASDAQ: GH) liquid biopsy tests are at the forefront of technology enabling this shift to personalized medicine. Currently, its blood tests provide insight for patients with tough-to-treat cancer, particularly when there's little tissue to test, but in the future, liquid biopsy could become the standard for all patients. In 2018, Guardant Health's sales were $50 million, up 82%, and according to management, its addressable market in advanced cancer is worth $6 billion.
No. 12: Insulet
Insulet's (NASDAQ: PODD) Omnipod insulin pump is a hit with insulin-intensive patients who want the flexibility of a tubeless insulin pump. In 2018, its sales were $564 million, up 22% from 2017. In the short-term, sales growth could slow because of the launch of Tandem Diabetes (NASDAQ: TNDM) automated-insulin system, which pairs Tandem's pump with a DexCom CGM, but the company still expects to deliver sales of between $662 to $687 million in 2019, representing growth of at least 17%. Furthermore, Insulet hopes to launch its own automated insulin system in 2020. Given Insulet's tubeless advantage and the growing size of the diabetes market, Insulet could be the company best-positioned to capitalize on the shift to automated insulin from finger sticks and injections.
No. 13: Intuitive Surgical
Robotic surgery isn't science fiction. It's already being commonly used in various procedures, including urology and gynecology. The market leader by miles, Intuitive Surgical's (NASDAQ: ISRG) installed over 5,000 of its surgical robots worldwide. As more systems have been installed and advances have opened up the use of its systems in new areas, such as hernia repair, procedure volume has been growing at a double-digit pace, which is driving sales of instruments and consumables used in surgeries. Intuitive Surgical's sales more than tripled to $3.7 billion in 2018 from 2008 and as providers increasingly recognize advantages associated with robotic surgery, including fewer complications and faster recovery times, sales ought to continue higher.
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No. 14: Invitae Corporation
Cancer isn't the only disease that can be better informed by genetic insight. Invitae's (NYSE: NVTA) gene screening tests are being used to provide genetic profiles for parents-to-be, newborns, and people with or at risk of rare disease. Its goal is to drive the cost of genetic screening so low that everybody will be able to understand their risks of genetic disease. In 2018, it completed 303,000 tests and in 2019, it expects to complete over 500,000 tests. If so, its revenue will increase to $220 million, up 48% from 2018.
No. 15: MongoDB
Companies have essentially been using the same rows and columns style databases to house information for decades and increasingly, those legacy databases are falling short as corporate data morphs from solely letters and numbers to unstructured information, like images. Addressing today's database needs requires a 21st century solution that's more flexible and dynamic than predecessors. In steps MondoDB (NASDAQ: MDB), a company founded by ex-Doubleclick executives to displace the use of traditional structured query language (SQL) databases with an unstructured, NoSQL, solution. MongoDB's the mostwidely used NoSQL solution and its revenue is growing thanks to rising subscription demand for its cloud-based offering, Atlas. In fiscal 2019, MongoDB's total revenue was $254 million, up 64% year-over-year and because Atlas revenue increased over 400%, it now accounts for 34% of companywide sales.
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No. 16: 2U, Inc.
Education on demand is getting better thanks to 2U (NASDAQ: TWOU), an education technology provider that could be the best way to profit from growing adoption of online education. 2U creates private label online graduate programs and certificate programs that major universities market to students worldwide. Currently, it works with 35 universities, including the University of Southern California, which accounts for 21% of revenue. Universities pay 2U a fixed percentage of tuition and fees and generally, sign contracts of 10 years or longer. In 2018, 2U Inc. revenue increased 44% to $412 million and revenue is expected to grow to $547 million in 2019. If you believe that the future is education anywhere, then 2U Inc. is a smart bet, particularly since America's graduate education market collects nearly $80 billion in tuition payments every year.
No. 17: Twilio
Connecting customers to your services in a digital world means having a robust app that can easily handle messaging, voice, and video communication. If your receiving an offer via text, speaking with a customer service chat-bot, taking an online survey, or awaiting a ride-share then there's a good chance Twilio's (NYSE: TWLO) technology is powering it. The company's the leading solution used for in-app communications with over 64,000 active customers. In 2018, revenue totaled $650 million, up 63% from the full year 2017, and its expected to surpass $1 billion this year. With 5G technology opening doors to even better ways of communicating in the future, it wouldn't surprise if this company's sales continue marching higher.
No. 18: ZenDesk
Customer services is one of the biggest pain points facing any business. Dissatisfied customers mean lost sales and a dinged reputation. Also, opportunities to increase sales by leveraging successful conversations with customers are lost. To keep customers returning and boost potential revenue, Zendesk (NYSE: ZEN) offers digital customer service tools, including customer service prioritizing, live chat, and Q&A solutions. It generates nearly half its sales overseas and in 2018, revenue grew 39% to $599 million. Future sales could come from new solutions and bundling existing solutions. For example, customers can begin with Zendesk support, then add Zendesk Chat, or other services, such as its recently launched customer relationship management tool, Zendesk Sunshine. In 2019, management's targeting sales of at least $795 million.
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No. 19: Zoom Video Communications
Connecting partners, clients, and stakeholders remain key to business success and perhaps, no company is more successfully facilitating conversations than Zoom Video (NASDAQ: ZM). Its conferencing solutions are increasingly becoming the go-to choice for institutions and growing demand for video communication because of travel costs and an increasingly global marketplace should allow that to continue. Zoom, which had its IPO in April 2019, posted sales of $331 million in fiscal 2019, up 118%, year over year. Importantly, the company's already tilting toward consistent profitability, reporting $7.6 million in net income last year. With a net expansion rate of 118% in fiscal 2019, a founder CEO at the helm, and a growing appetite for simple, reliable video communication, Zoom Video's an enticing long-term stock to buy.
No. 20: Zscaler
Protecting corporate data from unwanted eyes used to be as simple as building a wall around valuable information and limiting access via gates. Today, it's not that easy. People are accessing data from various devices from all over the world and that data isn't housed in only one place. Because Zscaler (NASDAQ: ZS) addresses challenges associated with securing data in an increasingly complex work environment, its revenue has grown from $54 million in fiscal 2015 to $190 million in fiscal 2018. Last year, revenue increased 51% and in fiscal 2019, revenue is expected to grow another 50% to $289 million. That could only be the beginning, though, because the companies only working with about 200 of Forbes Global 2000 companies.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Todd Campbell owns shares of 2U, Anaplan Inc, Bluebird Bio, DexCom, Intuitive Surgical, Invitae, and Twilio. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends 2U, Alphabet (A shares), Alteryx, Bluebird Bio, Guardant Health, Intuitive Surgical, MongoDB, Twilio, Zendesk, and Zscaler, Inc. The Motley Fool recommends Alarm.com Holdings, Constellation Brands, and Insulet. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its sales increased 44% year over year to $1.032 billion in 2018 and while it faces stiff competition from Abbott Labs (NYSE: ABT), DexCom is still guiding for 14% growth this year. Invitae's (NYSE: NVTA) gene screening tests are being used to provide genetic profiles for parents-to-be, newborns, and people with or at risk of rare disease. In steps MondoDB (NASDAQ: MDB), a company founded by ex-Doubleclick executives to displace the use of traditional structured query language (SQL) databases with an unstructured, NoSQL, solution. | Its sales increased 44% year over year to $1.032 billion in 2018 and while it faces stiff competition from Abbott Labs (NYSE: ABT), DexCom is still guiding for 14% growth this year. Aurora Cannabis The second-largest Canadian cannabis company, Aurora Cannabis (NYSE: ACB) could win a large share of the $150 billion global marijuana market as more sales move to regulated retailers from the black market. To keep customers returning and boost potential revenue, Zendesk (NYSE: ZEN) offers digital customer service tools, including customer service prioritizing, live chat, and Q&A solutions. | Its sales increased 44% year over year to $1.032 billion in 2018 and while it faces stiff competition from Abbott Labs (NYSE: ABT), DexCom is still guiding for 14% growth this year. In 2018, 2U Inc. revenue increased 44% to $412 million and revenue is expected to grow to $547 million in 2019. Because Zscaler (NASDAQ: ZS) addresses challenges associated with securing data in an increasingly complex work environment, its revenue has grown from $54 million in fiscal 2015 to $190 million in fiscal 2018. | Its sales increased 44% year over year to $1.032 billion in 2018 and while it faces stiff competition from Abbott Labs (NYSE: ABT), DexCom is still guiding for 14% growth this year. 14: Invitae Corporation Cancer isn't the only disease that can be better informed by genetic insight. That could only be the beginning, though, because the companies only working with about 200 of Forbes Global 2000 companies. |
32987.0 | 2019-04-26 00:00:00 UTC | Insiders Bullish on Certain Holdings of DGRO | ABT | https://www.nasdaq.com/articles/insiders-bullish-certain-holdings-dgro-2019-04-26 | nan | nan | A look at the weighted underlying holdings of the iShares Core Dividend Growth ETF (DGRO) shows an impressive 11.7% of holdings on a weighted basis have experienced insider buying within the past six months.
Abbott Laboratories (Symbol: ABT), which makes up 0.67% of the iShares Core Dividend Growth ETF (DGRO), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $46,838,588 worth of ABT, making it the #36 largest holding. The table below details the recent insider buying activity observed at ABT:
ABT — last trade: $78.11 — Recent Insider Buys:
And Aqua America Inc (Symbol: WTR), the #240 largest holding among components of the iShares Core Dividend Growth ETF (DGRO), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $3,527,378 worth of WTR, which represents approximately 0.05% of the ETF's total assets at last check. The recent insider buying activity observed at WTR is detailed in the table below:
WTR — last trade: $38.26 — Recent Insider Buys:
10 ETFs With Stocks That Insiders 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. | Abbott Laboratories (Symbol: ABT), which makes up 0.67% of the iShares Core Dividend Growth ETF (DGRO), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $78.11 — Recent Insider Buys: And Aqua America Inc (Symbol: WTR), the #240 largest holding among components of the iShares Core Dividend Growth ETF (DGRO), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $46,838,588 worth of ABT, making it the #36 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 0.67% of the iShares Core Dividend Growth ETF (DGRO), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $78.11 — Recent Insider Buys: And Aqua America Inc (Symbol: WTR), the #240 largest holding among components of the iShares Core Dividend Growth ETF (DGRO), shows 5 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $46,838,588 worth of ABT, making it the #36 largest holding. | The table below details the recent insider buying activity observed at ABT: ABT — last trade: $78.11 — Recent Insider Buys: And Aqua America Inc (Symbol: WTR), the #240 largest holding among components of the iShares Core Dividend Growth ETF (DGRO), shows 5 directors and officers as recently filing Form 4's indicating purchases. Abbott Laboratories (Symbol: ABT), which makes up 0.67% of the iShares Core Dividend Growth ETF (DGRO), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $46,838,588 worth of ABT, making it the #36 largest holding. | Abbott Laboratories (Symbol: ABT), which makes up 0.67% of the iShares Core Dividend Growth ETF (DGRO), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $46,838,588 worth of ABT, making it the #36 largest holding. The table below details the recent insider buying activity observed at ABT: ABT — last trade: $78.11 — Recent Insider Buys: And Aqua America Inc (Symbol: WTR), the #240 largest holding among components of the iShares Core Dividend Growth ETF (DGRO), shows 5 directors and officers as recently filing Form 4's indicating purchases. |
32988.0 | 2019-04-25 00:00:00 UTC | Thursday 4/25 Insider Buying Report: TPTX, ABT | ABT | https://www.nasdaq.com/articles/thursday-425-insider-buying-report-tptx-abt-2019-04-25 | nan | nan | Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At Turning Point Therapeutics (TPTX), a filing with the SEC revealed that on Monday, Director Hongbo Lu purchased 60,000 shares of TPTX, for a cost of $18.00 each, for a total investment of $1.08M. Lu was up about 61.1% on the purchase at the high point of today's trading session, with TPTX trading as high as $29.00 in trading on Thursday. Turning Point Therapeutics is trading up about 2.3% on the day Thursday. This buy marks the first one filed by Lu in the past year.
And at Abbott Laboratories (ABT), there was insider buying on Monday, by Senior Vice President Randel William Woodgrift who bought 2,000 shares at a cost of $73.40 each, for a trade totaling $146,798. This buy marks the first one filed by Woodgrift in the past year. Abbott Laboratories is trading up about 0.4% on the day Thursday. So far Woodgrift is in the green, up about 5.5% on their purchase based on today's trading high of $77.41.
VIDEO: Thursday 4/25 Insider Buying Report: TPTX, ABT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And at Abbott Laboratories (ABT), there was insider buying on Monday, by Senior Vice President Randel William Woodgrift who bought 2,000 shares at a cost of $73.40 each, for a trade totaling $146,798. VIDEO: Thursday 4/25 Insider Buying Report: TPTX, ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. | VIDEO: Thursday 4/25 Insider Buying Report: TPTX, ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And at Abbott Laboratories (ABT), there was insider buying on Monday, by Senior Vice President Randel William Woodgrift who bought 2,000 shares at a cost of $73.40 each, for a trade totaling $146,798. At Turning Point Therapeutics (TPTX), a filing with the SEC revealed that on Monday, Director Hongbo Lu purchased 60,000 shares of TPTX, for a cost of $18.00 each, for a total investment of $1.08M. | And at Abbott Laboratories (ABT), there was insider buying on Monday, by Senior Vice President Randel William Woodgrift who bought 2,000 shares at a cost of $73.40 each, for a trade totaling $146,798. VIDEO: Thursday 4/25 Insider Buying Report: TPTX, ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. | And at Abbott Laboratories (ABT), there was insider buying on Monday, by Senior Vice President Randel William Woodgrift who bought 2,000 shares at a cost of $73.40 each, for a trade totaling $146,798. VIDEO: Thursday 4/25 Insider Buying Report: TPTX, ABT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At Turning Point Therapeutics (TPTX), a filing with the SEC revealed that on Monday, Director Hongbo Lu purchased 60,000 shares of TPTX, for a cost of $18.00 each, for a total investment of $1.08M. |
32989.0 | 2019-04-24 00:00:00 UTC | Health Care Sector Update for 04/24/2019: ANTM, RAD, JNJ, PFE, ABT, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-04-24-2019%3A-antm-rad-jnj-pfe-abt-mrk-amgn-2019-04-24 | nan | nan | Top Health Care Stocks:
JNJ: Flat
PFE: +0.23%
ABT: Flat
MRK: Flat
AMGN: +0.14%
Leading health care stocks were mostly flat pre-market Wednesday.
Stocks moving on news include:
(+) Anthem (ANTM), which was down 0.9%, as the company reported pre-bell Wednesday Q1 adjusted earnings of $6.03 per share compared to $5.41 per share in the prior-year quarter. The Capital IQ average for adjusted EPS was $5.90.
(+) Rite Aid (RAD), which was down 0.2% as Q3, 2020, and 2021's forecasted earnings estimates for the company have been revised lower.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABT: Flat MRK: Flat Leading health care stocks were mostly flat pre-market Wednesday. Stocks moving on news include: (+) Anthem (ANTM), which was down 0.9%, as the company reported pre-bell Wednesday Q1 adjusted earnings of $6.03 per share compared to $5.41 per share in the prior-year quarter. | ABT: Flat MRK: Flat Top Health Care Stocks: JNJ: Flat Leading health care stocks were mostly flat pre-market Wednesday. | ABT: Flat MRK: Flat Top Health Care Stocks: JNJ: Flat Leading health care stocks were mostly flat pre-market Wednesday. | ABT: Flat MRK: Flat Top Health Care Stocks: JNJ: Flat Leading health care stocks were mostly flat pre-market Wednesday. |
32990.0 | 2019-04-20 00:00:00 UTC | How Marijuana Legalization Affected OrganiGram and Aphria's Latest Results | ABT | https://www.nasdaq.com/articles/how-marijuana-legalization-affected-organigram-and-aphrias-latest-results-2019-04-20 | nan | nan | Marijuana companies OrganiGram and Aphria reported their most recent quarterly earnings earlier this week. One of the companies reported surprisingly strong sales, while the other delivered disappointment. Are these marijuana stocks buys?
In this episode of The Motley Fool's Industry Focus: Healthcare, analysts Shannon Jones and Todd Campbell explain how these companies are performing and what could be next for investors. Shannon and Todd also discuss why Abbott Labs is locking horns with Dexcom in diabetes and what the future looks like for Bristol-Myers Squibb, now that its acquisition of Celgene is official.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. A full transcript follows the video.
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This video was recorded on April 17, 2019.
Shannon Jones: Welcome to Industry Focus, the show that dives into a different sector of the stock market every single day. Today is Wednesday, April the 17th, and we're talking Healthcare. I'm your host, Shannon Jones, and I am joined by healthcare guru Todd Campbell. Todd, how are you?
Todd Campbell: I'm doing well up here in sunny New Hampshire. Happy to see that mud season hasn't yet arrived. Maybe we'll skip it this year and go straight to summer.
Jones: Hey, you never know! It seems like that's happening more and more frequently. I think we'll probably hit 80, 90 degrees here in the next couple of weeks in Alexandria.
Campbell: Wow, crazy!
Jones: It is crazy! For today's topic, we've got some less crazy updates to share with our listeners. Specifically, we've got news from across the sector, including merger updates, the diabetes stock wars, and, as always, marijuana earnings updates. Todd, let's dive right in!
We promised our listeners that we would be following up on the soap opera that has been Celgene, CELG, and Bristol-Myers Squibb, BMY. The news story here has been about the fate of this $74 billion merger, which came down to a shareholder meeting last week. There's been so much politicking on both sides of this debate and whether or not this deal should go through. You had a lot of very vocal shareholders saying that this was a deal that was very poorly conceived and ill advised. Todd, what was the final verdict on this huge deal last week?
Campbell: Maybe this deal is crazy, right? Talk about things that are crazy. Maybe this deal was crazy! So, we talked on the show a few weeks back and we said OK, some big shareholders are really upset because they don't think the Bristol-Myers should be spending all this money on Celgene. They should just go it alone, and maybe even become an acquisition candidate rather than being an acquirer. When all was said and done, we ended up having over 75% of Bristol Myers shareholders vote in favor of the merger on April 12th. Virtually all of Celgene investors voted in favor of it. So the deal is done, the decision is made! These two companies will now combine into this massive behemoth with about $40 billion in combined annual revenue.
Jones: Yeah, it's going to be a massive company. I think one thing to keep in mind is, there was a lot of back and forth on this deal. When you started to see these independent proxy advisors, ISS and Glass, Lewis step up to the plate and recommend that this deal move forward, that's when you started to see some of these activists like Starboard start to step back to actually make this deal happen. In the investment community, when you have especially Glass Lewis and ISS, when they speak, people tend to listen. I think that's what you saw with this deal.
Campbell: A lot of these shares are held by passive funds, like the S&P 500 funds, etc. They pretty much just vote the way the proxy advisors tell them to vote. So, yeah, you have active managers like Wellington and Starboard and some that own meaningful amounts of shares. But with so many shares of big companies being held by these passive funds, once those advisors come out and say, yeah, go for it, it's good, it's pretty much a given that the deal is going to get done. I don't think it's necessarily a bad deal. I think this could be a very good deal. Shannon, not to bury the lede, I do plan on holding on to my shares of Bristol-Myers that I'm getting in this deal. As a refresher to listeners, as an owner, you're going to be getting $50 in cash, plus one share of Bristol-Myers Squibb, and then a chance, depending on whether or not some FDA approvals go their way, a shot at an additional $9 down the road from a contingent value right.
Jones: That $9 contingent value right, that's dependent upon approval across three different products. That is a contingent value right that requires all three to get approved. Certainly adds a bit more risk to see in that one play out. But I think all in all, to your point, Todd, this is a deal that two companies combined do make sense. Again, in the biopharma space, a lot of these deals just don't make sense and they seem to fall apart. We'll have to see if this deal will go the same way. But what you're getting here is a combined company that will be, among other things, a dominant player in the oncology space in particular.
Campbell: Biggest one. I think they'll be No. 1. $23 billion roughly in sales just from Opdivo, which is a Bristol-Myers drug with about $6.7 billion in annual revenue last year. Sprycel, Urivoid, two more drugs that Bristol-Myers brings to the table in oncology. Then, adding in Celgene's Revlimid, a $10 billion drug. Pomalyst, another drug with $2 billion in sales. And Abraxane, a pancreatic and breast cancer drug with another $1 billion in sales. So yes, a very large player in oncology. Also, Shannon, a pretty big player in autoimmune disease. They're going to be able to now market both Orencia, which is Bristol-Myers' drug that had about $2.7 billion in sales, treating RA and psoriasis, and then the psoriasis drug Otezla from Celgene, which had sales about $1.6 billion last year. So a pretty big player there as well.
The other reason that I like this deal is because you do have all these multiple shots and goals fast approaching potential approvals for drugs that arguably address multibillion-dollar indications. You have Ozanimod for multiple sclerosis; Fedratinib in myelofibrosis; bb2121 in multiple myeloma. We've talked a lot about that on the show in the past. Liso-cel, Luspatercept, all these drugs have billion-dollar-plus opportunities ahead of them if they can get across the finish line.
One of the reasons that I'm holding on to my shares is that Bristol-Myers says that this isn't a dilutive deal. Their earnings are going to grow every year from here through 2025. They have a chance for over $2 billion in synergies from cost savings. And, they think they're going to generate $45 billion in free cash flow for the first three years. That's good for Bristol-Myers' dividend, because remember, Bristol-Myers pays a dividend where Celgene didn't. I think that yields probably somewhere north of 3% right now.
Jones: Yeah. Looking forward, you're looking at six product launches, five coming from Celgene specifically. That's $15 billion in potential total revenue over these next few years. I think one thing I'll be watching, of course, is the contingent value right. That is something that is tradable. But more importantly, those three drugs, I think the longest timeline is maybe 2021.
Campbell: Yeah, March 31, 2021.
Jones: 2021 there. So, we'll have to wait some time on that. The other thing I'll be looking at is, now that this deal is moving forward, what programs will ultimately be kicked to the curb, be put on the shelf? With a lot of these mergers, even promising drug candidates sometimes just don't fit into the meshed organization and in terms of what they're looking for pipeline-wise. So it'll be interesting to see how that plays out as well. But Todd, I'm glad that you mentioned it because you knew I was going to ask, are you going to hold. It sounds like that's definitely a yes.
Campbell: Yep, absolutely! I'll stick around and see what happens.
Jones: Great! Let's turn our attention to the second big story. It's really all about the diabetes war. Competition is heating up in the diabetes space, specifically among CGM players. Two heavy hitters, Dexcom, DXCM and Abbott Labs (NYSE: ABT), ABT. Todd, Abbott Labs is looking to step up the competition with a new product that could launch in the U.S. later this year. Before we dive into that, though, I think maybe for our listeners who are new to the space, what exactly is a CGM and what is Abbott actually looking to do?
Campbell: CGMs are continuous glucose monitors. To understand continuous glucose monitors, it's helpful to understand diabetes. In diabetes, the pancreas either doesn't produce enough or any insulin. Insulin is necessary to break down and turn glucose in the bloodstream into stored energy. So in type one, you're not producing any insulin; in type two, you've developed a resistance to the insulin that you do produce. If you're not producing enough insulin and your blood sugar gets heightened because of it, it can lead to all sorts of life-threatening complications. You can have nerve damage, you can develop cardiovascular disease, you can have vision loss. In fact, Shannon, of people who are turning 50, who are also diabetic, on average, the life expectancy is shortened by about nine years.
One of the ways that people think that we might be able to improve upon those outcomes for diabetics is by better monitoring their blood sugar levels so that smarter decisions can be made about their insulin. Continuous glucose monitors allow you to do that. You take a sensor, you put it on your body, and then you're able to get really close to -- not exactly, but close -- real-time readings of your blood sugar levels that can then be used to theoretically make decisions about your insulin that could prevent highs and prevent lows that may contribute to or speed up disease progression.
Jones: The other important point is related to finger sticks. A lot of diabetics rely on frequent finger sticks to determine the appropriate insulin dosing. What these CGMs have been able to do is not only cut down on the number of finger sticks, but also there's an accuracy and even just a convenience factor that plays into it as well.
But Abbott and Dexcom have been dueling in terms of technology. I'd have to say probably Dexcom the more innovative of the two when it comes to CGMs. But ultimately, Abbott is set to release what could be one of the more innovative approaches to the CGM market. Todd, what should listeners know about their product?
Campbell: Abbott already has something on the market called the FreeStyle Libre. This was their first generation of their latest CGM. What's remarkable about this device is it does significantly reduce the finger sticks that you're talking about. Remember, in the olden days, if you wanted to check your blood sugar, you had to keep sticking your finger to get a blood sample to put in the little testing thing to find out if you needed some insulin. That's a very inefficient way of doing things. You no longer need to do finger sticks for calibrating Abbott's machine or for very extended long warm up times or to confirm that you need to dose your insulin. That's a huge advantage.
The problem with the FreeStyle Libre 1.0, as I'll call it, is it didn't include alarms that could highlight short-term highs or lows in your glucose. That's something that Dexcom's G5 and G6 incorporate. G5 and G6 from Dexcom have always been thought to be the premium product. They carry a premium price. The FreeStyle Libre is much cheaper. Last year, they launched version 2.0 of the FreeStyle Libre. It includes those alarms I was just saying were missing from 1.0. That FreeStyle Libre 2.0 is not available yet in the U.S. However, the application has been filed with the FDA for approval. If it is approved, then you're going to have a really big market share battle here as people try to decide, there are still less features in the FreeStyle Libre 2.0, but it'll save them a lot of money; or, do I want to stick with the Dexcom that I've been used to? And I think that's created a lot of excitement for Abbott and concern about Dexcom. Will Dexcom be able to hold on to its status as the premiere player from here?
Jones: With the FreeStyle Libre 2.0, some analysts are saying it could come at potentially an 80% discount to what Dexcom's offering. So price I think is going to be a huge factor. I think the premium for Dexcom's products probably won't matter as much to those that require more intensive insulin therapy, and really do want the best of the best in terms of innovation and monitoring. But ultimately, I think for those patients that require less intensive forms of therapy, and are price sensitive, are probably going to go for Abbott.
One of the things that I think is important to note, though, and correct me if I'm wrong here, Todd, I really don't think this is a winner-takes-all market. I do think that there's space for multiple players just given the massive opportunity for diabetes right now.
Campbell: So stoked that you brought that up. Absolutely! Massive market. 30 million diabetics here in the U.S. alone. 400 million globally. One million plus type one diabetics who are insulin-intensive here in the U.S. alone. This is a big, big market!
Abbott, I listened to their conference call this morning. Their diabetes sales grew 34% globally worldwide to $566 million in the first quarter. That's huge! U.S. sales were up 77% to $152 million. They only have about 1.3 million users. So think about the size of this addressable market and where Abbott is right now, and where Dexcom is right now. You're still talking about significant runway that I think could support both of these players.
Dexcom's already guiding conservatively for 2019. They grew very fast last year. I think they're up like 50% revenue. This year, they're saying they'll grow about 15%. I guarantee that's building in some of the threat that's approaching from the FreeStyle Libre 2.0. But Dexcom also plans to roll out their G7, their next generation one, in 2020, which could even be cheaper, and theoretically that kick-starts the war all over again. This is going to be something that investors are going to want to watch for the next at least two years.
Jones: On May 1st, I believe Dexcom is set to report their current quarterly earnings. I'm sure management will be addressing the competitive dynamics and landscape even more. We'll definitely have to tune in and keep our listeners up to date on all the latest on this war that continues to play out.
[Now,] we've got more marijuana earnings, this time from two big players. The first is OrganiGram Holdings, ticker OGRMF, and the second is Aphria, ticker APHA. OrganiGram right now is the second best performing Canadian marijuana stock so far this year, up 81% since the start of the new year vs. the S&P up about 16%. On the other hand, we've got Aphria. It's up about 8% on the year but fell pretty steeply after earnings came out on Monday. Let's dive into both of these companies, Todd!
Let's start with what sales and revenue look like for both of these. What were the headline numbers there?
Campbell: OrganiGram delivered net marijuana revenue of $26.9 million. That's excluding excise taxes. Just as a quick sidebar, Canada put excise taxes on marijuana last year. All of the major providers have decided to absorb those costs. All the numbers that you see when you see net marijuana revenue in their press releases, that's what they're talking about, not including the excise taxes they collected and are absorbing. $26.9 million. Of that, recreational adult use sales were $24.5 million and medical marijuana sales were $2.4 million. That's OrganiGram.
Over at Aphria, Aphria put up sales of $73.6 million, but huge asterisk associated with that sales figure. In the quarter, their recreational sales actually declined to just $7.2 million. That's down from $11 million in the previous quarter. Their medical marijuana sales fell 2% to $10.6 million. So, why did Aphria's sales jump if their medical and their recreational sales were flat. That's because they went out and they bought a couple of drug distributors last year, one in Germany and one in Argentina. Incorporating those drug distributors' sales onto their statements has caused that big spike up in its revenue in the quarter.
Jones: Yeah. Some detail on that, Aphria acquired CC Pharma. That was the drug distributor in Germany. And then in Argentina, APB was the one they acquired. That added $56 million in distribution revenue to their results for the quarter. So we did see a boost in terms of sales related to that, but that actually put a bigger dent on margins, which brings us to the topic of profitability for both -- or, as you can say, lack thereof of profitability. What did that look like, Todd?
Campbell: OrganiGram is unique in the industry because most of the big players have shifted away from indoor growing, which is typically associated with being a more expensive way to grow marijuana, to either greenhouses or outdoor growing. OrganiGram is sticking with indoor growing. They do it a little bit differently. They handle it like a three-decker bus. They have a three tier-indoor grow system that they use. As a result, they have some of the lowest cultivation costs per gram in the industry. Last quarter, cultivation costs per gram were $0.85 per gram on an all-in basis. $0.85, that's crazy, down from $1.48 in the previous quarter. The lower production costs did translate into a bigger gross profit. The gross profit was $16 million on an adjusted basis, not including the changes in the fair value of biologics, something that I don't think is important to consider, so I cross that number out. Their gross margin was 60%, which is just really good compared to what we've seen from these other marijuana stocks who've been investing heavily into their businesses, and as a result have seen their gross margins fall dramatically. They still lost money in the quarter, though. They lost $6.4 million.
Jones: For Aphria, granted, it's not a true apples to apples comparison with OrganiGram, but when you're looking at that cost per gram, they came in right at $3.76. Ended up with a gross profit of $13 million. But going back to talk about the distribution companies that they acquired, even though it was a boost to sales, you did see pressure on margins. Matter of fact, I wouldn't even call it pressure, they just collapsed. It went from 47% in terms of gross margins down to 18% because these distribution companies operate at a much lower margin. I do have to wonder, I know Aphria is a company in transition right now. They're going through management changes and really trying to become much more of a global business. But that was definitely something that stood out to me when you're looking at profitability for Aphria. They ended up net loss on the quarter $108 million, or $0.43 a share. Also the other big story here was packaging costs. Management in their conference call did talk about expensive sourcing, just to make sure that they had enough packaging on hand when adult use sales began. Also labor costs. Sounds like a short-term issue, but something we certainly want to keep an eye on as well.
Campbell: Yeah, those packaging costs doubled to $1.98, which is huge. That's a big chunk of that all-in cost per gram that you mentioned earlier on. They do think that they have a plan that's going to take care of that. But there is still some inventory that's left over that has to get worked through. They're getting a little bit more careful in the way that they package their products to use less materials. They're sourcing them from new vendors to try and save some money. So there should theoretically be some tailwinds that will help profitability further on. You mentioned those acquisitions and the fact that they carry such lower margins. The margins are 10-15% in that distribution business. The combination of declining marijuana revenue, which is high-margin, that tilted of course, the revenue mix toward these low-margin businesses. That should theoretically be temporary as well. As more production ramps up, and we'll get to that in a second, as production ramps up, then hopefully, this company's profitability will get better.
The $108 million loss they reported in the quarter also includes $58 million in impairment charges, including an $50 million impairment charge associated with acquiring some assets in Latin America last year. They decided that they were carrying those on the books at too high a price, so they locked that down by $50 million.
Jones: With the legal marijuana market still in its infancy, many of these growers still ramping up in terms of capacity. Obviously, funding is a key area to watch and the sources of that funding. What do we see in terms of balance sheet? What did cash and debt look like across these two companies?
Campbell: They're both fine. They are spending a lot of money. But neither of them worry me too much. OrganiGram has $63 million in cash. It had $13 million on the books in debt exiting the quarter. But they just signed a letter of intent to borrow $140 million. Some of that is going to be used for expansion programs that boost production. We'll talk about that again in a second. Aphria has $135 million in cash and about $77 million in debt. I think both these companies are OK when it comes to having enough cash to accomplish what they need to accomplish within the next one to two years. Then we have to reevaluate.
Jones: Speaking of the next few years, when it comes to what the future looks like for both of them, really comes down to production capacity at the most foundational level. This last quarter, both of these companies were actually pretty much in lockstep in terms of production capacity, looking at around 35,000-kilogram production capacity. What are they eyeballing in terms of future capacity though?
Campbell: One of the reasons that Aphria's marijuana revenue declined is because they held back some harvesting to be able to have enough mother plants for an expansion they're doing on their big greenhouse, Aphria One. Aphria One, massive expansion program, just got approved by Health Canada in March. They're now starting to cultivate marijuana in that expansion program. That increases their capacity to about 115,000 kilos run rate right now, which is a huge jump up. Last quarter, their production was about 20,000. They have capacity of 36,000. But they held some back, produced about 20,000 run rate. Now, they're jumping, like I said, to 115,000.
At OrganiGram, because of the expansion that they just got approved, they look like they're going to get to 62,000 run rate this month, growing to 89,000 kilos in September and 113,000 kilos in December. Theoretically, both of these companies will exit 2019 roughly similar to one another at the 115,000 area.
The one wild card, Shannon, is another greenhouse Aphria is working on trying to get approval from Health Canada on. That's Aphria Diamond. If that comes online, Aphria's capacity is going to jump to 255,000. That should solidify it as the third largest grower in Canada.
Jones: Yeah. Production is really the name of the game here, especially for OrganiGram. They just signed a letter of intent to supply cannabis to Quebec, which is the last of the Canadian provinces that they didn't already have a supply agreement in place with. Now, this will basically make OrganiGram one of the three growers with a supply deal in place across all of the provinces. That'll be huge.
In addition, of course, October of this year will mark when Canada is expected to legalize edibles. OrganiGram, of course focusing on the edibles, really building out automated equipment and production to be able to jump right into that. They're also looking at cannabis-infused beverages. They believe they've got a proprietary formulation that could basically make the effects of these cannabis-infused beverages happen a lot faster. We'll have to see how all of that plays out. I know they're looking for a partner in that particular deal. We'll see if that happens.
For Aphria, the name of the game for them moving forward is all about getting that product mix and cost in line. Because they are a company in transition, because you've got a new management team, this is a company that's gone through so much, really just over the past few months. They dealt with short sellers attacking them, a hostile takeover bid, and now you've got new management that is trying to become a much more global operation. We'll have to see what plays out with Aphria. But, to know that they're ramping up in the right ways is certainly an encouraging sign there.
Campbell: Yeah. I think that the one takeaway on Aphria, if you listen to their conference call, one of the things they said over and over again is, if you take price per gram where it is today and you look at what we have right now, we're approved for peak production capacity, that gets us to a billion-dollar run rate exiting 2020. That's pretty remarkable from where we are today.
Jones: Exactly! That will do it for this week's Industry Focus: Healthcare show! Thanks so much for tuning in! As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. This show is produced by Austin Morgan. For Todd Campbell, I'm Shannon James. Thanks for listening and Fool on!
Shannon Jones has no position in any of the stocks mentioned. Todd Campbell owns shares of Celgene. The Motley Fool owns shares of and recommends Celgene. The Motley Fool recommends OrganiGram Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two heavy hitters, Dexcom, DXCM and Abbott Labs (NYSE: ABT), ABT. As a refresher to listeners, as an owner, you're going to be getting $50 in cash, plus one share of Bristol-Myers Squibb, and then a chance, depending on whether or not some FDA approvals go their way, a shot at an additional $9 down the road from a contingent value right. If it is approved, then you're going to have a really big market share battle here as people try to decide, there are still less features in the FreeStyle Libre 2.0, but it'll save them a lot of money; or, do I want to stick with the Dexcom that I've been used to? | Two heavy hitters, Dexcom, DXCM and Abbott Labs (NYSE: ABT), ABT. In this episode of The Motley Fool's Industry Focus: Healthcare, analysts Shannon Jones and Todd Campbell explain how these companies are performing and what could be next for investors. Specifically, we've got news from across the sector, including merger updates, the diabetes stock wars, and, as always, marijuana earnings updates. | Two heavy hitters, Dexcom, DXCM and Abbott Labs (NYSE: ABT), ABT. They're going to be able to now market both Orencia, which is Bristol-Myers' drug that had about $2.7 billion in sales, treating RA and psoriasis, and then the psoriasis drug Otezla from Celgene, which had sales about $1.6 billion last year. Over at Aphria, Aphria put up sales of $73.6 million, but huge asterisk associated with that sales figure. | Two heavy hitters, Dexcom, DXCM and Abbott Labs (NYSE: ABT), ABT. Todd, what should listeners know about their product? OrganiGram right now is the second best performing Canadian marijuana stock so far this year, up 81% since the start of the new year vs. the S&P up about 16%. |
32991.0 | 2019-04-17 00:00:00 UTC | Health Care Sector Update for 04/17/2019: ONCS, TXMD, ABT, JNJ, PFE, MRK, AMGN | ABT | https://www.nasdaq.com/articles/health-care-sector-update-04172019-oncs-txmd-abt-jnj-pfe-mrk-amgn-2019-04-17 | nan | nan | Top Health Care Stocks:
JNJ: +0.41%
PFE: +0.34%
ABT: +0.16%
MRK: Flat
AMGN: -0.03%
Top health care stocks were mixed pre-market Wednesday.
Stocks moving on news include:
(+) OncoSec Medical (ONCS), which was climbing nearly 20% after announcing a collaborative research agreement with Duke University School of Medicine to evaluate the use of OncoSec's TAVOPLUS (enhanced IL-12 DNA-plasmid) in combination or sequence with a HER2-plasmid vaccine administered with OncoSec's novel intratumoral delivery system.
(+) TherapeuticsMD (TXMD) was more than 5% higher as it signed a binding commitment letter with TPG Sixth Street Partners for a $300 million non-dilutive secured term loan financing facility, to be available in three tranches.
In other sector news:
(+) Abbott Laboratories (ABT) was up slightly after saying its Q1 adjusted diluted EPS rose to $0.63 from $0.59 a year ago, narrowly beating the $0.62 average estimate from analysts polled by Capital IQ.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news: (+) Abbott Laboratories (ABT) was up slightly after saying its Q1 adjusted diluted EPS rose to $0.63 from $0.59 a year ago, narrowly beating the $0.62 average estimate from analysts polled by Capital IQ. Stocks moving on news include: (+) OncoSec Medical (ONCS), which was climbing nearly 20% after announcing a collaborative research agreement with Duke University School of Medicine to evaluate the use of OncoSec's TAVOPLUS (enhanced IL-12 DNA-plasmid) in combination or sequence with a HER2-plasmid vaccine administered with OncoSec's novel intratumoral delivery system. (+) TherapeuticsMD (TXMD) was more than 5% higher as it signed a binding commitment letter with TPG Sixth Street Partners for a $300 million non-dilutive secured term loan financing facility, to be available in three tranches. | In other sector news: (+) Abbott Laboratories (ABT) was up slightly after saying its Q1 adjusted diluted EPS rose to $0.63 from $0.59 a year ago, narrowly beating the $0.62 average estimate from analysts polled by Capital IQ. Top Health Care Stocks: Top health care stocks were mixed pre-market Wednesday. | In other sector news: (+) Abbott Laboratories (ABT) was up slightly after saying its Q1 adjusted diluted EPS rose to $0.63 from $0.59 a year ago, narrowly beating the $0.62 average estimate from analysts polled by Capital IQ. Stocks moving on news include: (+) OncoSec Medical (ONCS), which was climbing nearly 20% after announcing a collaborative research agreement with Duke University School of Medicine to evaluate the use of OncoSec's TAVOPLUS (enhanced IL-12 DNA-plasmid) in combination or sequence with a HER2-plasmid vaccine administered with OncoSec's novel intratumoral delivery system. (+) TherapeuticsMD (TXMD) was more than 5% higher as it signed a binding commitment letter with TPG Sixth Street Partners for a $300 million non-dilutive secured term loan financing facility, to be available in three tranches. | In other sector news: (+) Abbott Laboratories (ABT) was up slightly after saying its Q1 adjusted diluted EPS rose to $0.63 from $0.59 a year ago, narrowly beating the $0.62 average estimate from analysts polled by Capital IQ. Top Health Care Stocks: MRK: Flat |
32992.0 | 2019-04-17 00:00:00 UTC | U.S. STOCKS ON THE MOVE-Qualcomm, BNY Mellon, Domino's, PepsiCo, Sprint | ABT | https://www.nasdaq.com/articles/us-stocks-move-qualcomm-bny-mellon-dominos-pepsico-sprint-2019-04-17 | nan | nan | The Day Ahead newsletter:
The Morning News Call newsletter:
At 10:25 a.m. ET, the Dow Jones Industrial Average was down 0.09 percent at 26,429.31. The S&P 500 was down 0.07 percent at 2,905.17 and the Nasdaq Composite was up 0.07 percent at 8,005.579.
The top three S&P 500 percentage gainers:
** Qualcomm Inc up 13.5 pct
** Textron Inc up 8 pct
** CSX Corp up 5.9 pct
The top three S&P 500 percentage losers:
** Bank of New York Mellon Corp down 8 pct
** Anthem Inc down 4.5 pct
** Pentair Plc down 4.4 pct
The top NYSE percentage gainers:
** Smart & Final Stores Inc up 20.2 pct
** Puxin Ltd up 17.2 pct
The top NYSE percentage losers:
** Tenet Healthcare Corp down 11.3 pct
** Rexahn Pharmaceuticals Inc down 8.9 pct
The top three Nasdaq percentage gainers:
** Uxin Ltd up 48.7 pct
** Helius Medical Technologies Inc up 17 pct
** Greenpro Capital Corp up 14.6 pct
The top three Nasdaq percentage losers:
** CEVA Inc down 17.6 pct
** eHealth Inc down 13.8 pct
** Ionis Pharmaceuticals Inc down 11.2 pct
** PepsiCo Inc : up 3.3 pct
Shares tick higher on demand for snacks, low-sugar soda
Street View: Happy hours for PepsiCo investors after solid Q1 beat
** T-Mobile : down 3.3 pct
** Sprint Corp : down 5.2 pct
Sprint, T-Mobile drop on DOJ concerns about merger
** CSX Corp : up 5.9 pct
** Union Pacific Corp : up 1.2 pct
** Kansas City Southern : up 3.1 pct
Shares rise on Q1 profit beat
Railroad rivals chug along as CSX tops profit view
** Arconic Inc : down 3.4 pct
Slides on block trade
** OncoSec Medical Inc : up 2.5 pct
Surges on research collaboration with Duke University
** Textron Inc : up 8.0 pct
Set to open at more than 1-month high after profit beat
** Future FinTech Group Inc : down 13.5 pct
Drops on delaying filing of FY18 results
** Smart & Final Stores Inc : up 20.2 pct
Smart & Final Stores set for best day in 5 months on Apollo deal
** United Continental Holdings Inc : up 3.5 pct
United Airlines first-quarter profit rises, holds 2019 target
United Airlines: Shares rise on Q1 profit beat, 2019 forecast unchanged
** Qualcomm Inc : up 13.6 pct
Gains set to add over $25 bln in market cap since settlement with Apple
Street View: Qualcomm moves past litigations to focus on 5G dominance
** Aurora Cannabis Inc : up 1.1 pct
** Canopy Growth Corp : up 1.4 pct
Aurora Cannabis, Canopy Growth: BofA starts coverage with "buy"
** Morgan Stanley : up 2.4 pct
Morgan Stanley profit beats estimates on wealth management, lower costs
Gains after better-than-expected results
** Hollysys Automation Technologies Ltd : up 6.3 pct
Rises after pulling stock offering
** Domino's Pizza : up 4.3 pct
** Chipotle Mexican Grill : down 1.6 pct
Pizza over burritos: MS upgrades Domino's, sidelines Chipotle
Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight'
** Moleculin Biotech Inc : up 11.0 pct
Jumps on new data from cancer drug testing
** DPW Holdings Inc : up 19.8 pct
Soars on bright outlook
** Bank of New York Mellon Corp : down 8.0 pct
BNY Mellon profit misses estimates on lower fee revenue
Slides on first profit miss in 2 years
** International Business Machines Corp : down 2.9 pct
Street View: IBM's story in progress, with all eyes on RHT
** Pinduoduo Inc : up 3.4 pct
Keybanc calls Pinduoduo new online disruptor, starts with 'overweight'
** Pentair Plc : down 4.4 pct
Slips after biggest quarterly results miss in at least 2 years
** GasLog Partners LP : down 8.4 pct
GasLog Partners: Distribution growth running out of steam-MS
** Abbott Laboratories : down 3.3 pct
Falls on unchanged 2019 forecast
** Hooker Furniture Corp : down 9.3 pct
Slides on Q1 sales warning
** Boston Scientific Corp : down 1.3 pct
Dips as co sees $25 mln hit to 2019 rev
The 11 major S&P 500 sectors:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 10:25 a.m. ET, the Dow Jones Industrial Average was down 0.09 percent at 26,429.31. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 13.5 pct ** Textron Inc up 8 pct ** CSX Corp up 5.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8 pct ** Anthem Inc down 4.5 pct ** Pentair Plc down 4.4 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.2 pct ** Puxin Ltd up 17.2 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 11.3 pct ** Rexahn Pharmaceuticals Inc down 8.9 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 48.7 pct ** Helius Medical Technologies Inc up 17 pct ** Greenpro Capital Corp up 14.6 pct The top three Nasdaq percentage losers: ** CEVA Inc down 17.6 pct ** eHealth Inc down 13.8 pct ** Ionis Pharmaceuticals Inc down 11.2 pct ** PepsiCo Inc : up 3.3 pct Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 3.3 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 5.9 pct ** Union Pacific Corp : up 1.2 pct ** Kansas City Southern : up 3.1 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.4 pct Slides on block trade ** OncoSec Medical Inc : up 2.5 pct Surges on research collaboration with Duke University ** Textron Inc : up 8.0 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 13.5 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.2 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 3.5 pct United Airlines first-quarter profit rises, holds 2019 target United Airlines: Shares rise on Q1 profit beat, 2019 forecast unchanged ** Qualcomm Inc : up 13.6 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 1.4 pct Aurora Cannabis, Canopy Growth: BofA starts coverage with "buy" ** Morgan Stanley : up 2.4 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.3 pct Rises after pulling stock offering ** Domino's Pizza : up 4.3 pct ** Chipotle Mexican Grill : down 1.6 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 11.0 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 19.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.0 pct BNY Mellon profit misses estimates on lower fee revenue Slides on first profit miss in 2 years ** International Business Machines Corp : down 2.9 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.4 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 4.4 pct Slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 8.4 pct GasLog Partners: Distribution growth running out of steam-MS ** Abbott Laboratories : down 3.3 pct Falls on unchanged 2019 forecast ** Hooker Furniture Corp : down 9.3 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.3 pct Dips as co sees $25 mln hit to 2019 rev The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 10:25 a.m. The S&P 500 was down 0.07 percent at 2,905.17 and the Nasdaq Composite was up 0.07 percent at 8,005.579. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 13.5 pct ** Textron Inc up 8 pct ** CSX Corp up 5.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8 pct ** Anthem Inc down 4.5 pct ** Pentair Plc down 4.4 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.2 pct ** Puxin Ltd up 17.2 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 11.3 pct ** Rexahn Pharmaceuticals Inc down 8.9 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 48.7 pct ** Helius Medical Technologies Inc up 17 pct ** Greenpro Capital Corp up 14.6 pct The top three Nasdaq percentage losers: ** CEVA Inc down 17.6 pct ** eHealth Inc down 13.8 pct ** Ionis Pharmaceuticals Inc down 11.2 pct ** PepsiCo Inc : up 3.3 pct Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 3.3 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 5.9 pct ** Union Pacific Corp : up 1.2 pct ** Kansas City Southern : up 3.1 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.4 pct Slides on block trade ** OncoSec Medical Inc : up 2.5 pct Surges on research collaboration with Duke University ** Textron Inc : up 8.0 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 13.5 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.2 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 3.5 pct United Airlines first-quarter profit rises, holds 2019 target United Airlines: Shares rise on Q1 profit beat, 2019 forecast unchanged ** Qualcomm Inc : up 13.6 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 1.4 pct Aurora Cannabis, Canopy Growth: BofA starts coverage with "buy" ** Morgan Stanley : up 2.4 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.3 pct Rises after pulling stock offering ** Domino's Pizza : up 4.3 pct ** Chipotle Mexican Grill : down 1.6 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 11.0 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 19.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.0 pct BNY Mellon profit misses estimates on lower fee revenue Slides on first profit miss in 2 years ** International Business Machines Corp : down 2.9 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.4 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 4.4 pct Slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 8.4 pct GasLog Partners: Distribution growth running out of steam-MS ** Abbott Laboratories : down 3.3 pct Falls on unchanged 2019 forecast ** Hooker Furniture Corp : down 9.3 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.3 pct Dips as co sees $25 mln hit to 2019 rev The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET, the Dow Jones Industrial Average was down 0.09 percent at 26,429.31. The S&P 500 was down 0.07 percent at 2,905.17 and the Nasdaq Composite was up 0.07 percent at 8,005.579. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 13.5 pct ** Textron Inc up 8 pct ** CSX Corp up 5.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8 pct ** Anthem Inc down 4.5 pct ** Pentair Plc down 4.4 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.2 pct ** Puxin Ltd up 17.2 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 11.3 pct ** Rexahn Pharmaceuticals Inc down 8.9 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 48.7 pct ** Helius Medical Technologies Inc up 17 pct ** Greenpro Capital Corp up 14.6 pct The top three Nasdaq percentage losers: ** CEVA Inc down 17.6 pct ** eHealth Inc down 13.8 pct ** Ionis Pharmaceuticals Inc down 11.2 pct ** PepsiCo Inc : up 3.3 pct Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 3.3 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 5.9 pct ** Union Pacific Corp : up 1.2 pct ** Kansas City Southern : up 3.1 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.4 pct Slides on block trade ** OncoSec Medical Inc : up 2.5 pct Surges on research collaboration with Duke University ** Textron Inc : up 8.0 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 13.5 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.2 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 3.5 pct United Airlines first-quarter profit rises, holds 2019 target United Airlines: Shares rise on Q1 profit beat, 2019 forecast unchanged ** Qualcomm Inc : up 13.6 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 1.4 pct Aurora Cannabis, Canopy Growth: BofA starts coverage with "buy" ** Morgan Stanley : up 2.4 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.3 pct Rises after pulling stock offering ** Domino's Pizza : up 4.3 pct ** Chipotle Mexican Grill : down 1.6 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 11.0 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 19.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.0 pct BNY Mellon profit misses estimates on lower fee revenue Slides on first profit miss in 2 years ** International Business Machines Corp : down 2.9 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.4 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 4.4 pct Slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 8.4 pct GasLog Partners: Distribution growth running out of steam-MS ** Abbott Laboratories : down 3.3 pct Falls on unchanged 2019 forecast ** Hooker Furniture Corp : down 9.3 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.3 pct Dips as co sees $25 mln hit to 2019 rev The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 10:25 a.m. ET, the Dow Jones Industrial Average was down 0.09 percent at 26,429.31. The S&P 500 was down 0.07 percent at 2,905.17 and the Nasdaq Composite was up 0.07 percent at 8,005.579. |
32993.0 | 2019-04-17 00:00:00 UTC | Notable Wednesday Option Activity: ALXN, SWKS, ABT | ABT | https://www.nasdaq.com/articles/notable-wednesday-option-activity-alxn-swks-abt-2019-04-17 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Alexion Pharmaceuticals Inc. (Symbol: ALXN), where a total of 7,820 contracts have traded so far, representing approximately 782,000 underlying shares. That amounts to about 61.7% of ALXN's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $120 strike call option expiring May 17, 2019, with 1,296 contracts trading so far today, representing approximately 129,600 underlying shares of ALXN. Below is a chart showing ALXN's trailing twelve month trading history, with the $120 strike highlighted in orange:
Skyworks Solutions, Inc. (Symbol: SWKS) options are showing a volume of 8,857 contracts thus far today. That number of contracts represents approximately 885,700 underlying shares, working out to a sizeable 60.6% of SWKS's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $77.50 strike put option expiring May 17, 2019, with 1,086 contracts trading so far today, representing approximately 108,600 underlying shares of SWKS. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. Especially high volume was seen for the $80 strike call option expiring June 21, 2019, with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for ALXN options, SWKS 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 $80 strike call option expiring June 21, 2019, with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. | That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. Especially high volume was seen for the $80 strike call option expiring June 21, 2019, with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. | Below is a chart showing ABT's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for ALXN options, SWKS options, or ABT options, visit StockOptionsChannel.com. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. | That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. Below is a chart showing ABT's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for ALXN options, SWKS options, or ABT options, visit StockOptionsChannel.com. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. |
32994.0 | 2019-04-17 00:00:00 UTC | Abbott Laboratories Earnings: ABT Stock Down After Q1 Beat | ABT | https://www.nasdaq.com/articles/abbott-laboratories-earnings-abt-stock-down-after-q1-beat-2019-04-17 | nan | nan | Abbott Laboratories earnings for the first quarter of 2019 have ABT stock down on Wednesday.
Source:
Abbott Laboratories reported earnings per share of 63 cents for the first quarter of the year. This is an increase over the company’s earnings per share of 59 cents from the same period of the year prior. It also beats out Wall Street’s earnings per share estimate of 61 cents for the quarter, but that couldn’t keep ABT stock from falling today.
The Abbott Laboratories earnings report for the first quarter of 2019 also includes net income of $672 million. This is up from the company’s net income of $418 million reported in the first quarter of 2018.
Abbott Laboratories earnings for the first quarter of 2019 have operating income coming in at $739 million. The health care company’s operating income reported during the same time last year was $608 million.
The most recent Abbott Laboratories earnings report has it bringing in revenue of . This is better than the company’s revenue of $7.39 billion reported in the first quarter of the previous year. It also beats out analysts’ revenue estimate of $7.47 billion for the period, but was unable to stop ABT stock from dropping.
All of this is good news for Abbott Laboratories, but it’s stock is still down today. This may have to do with its 2019 guidance. Despite beating its own estimates for the quarter, the company didn’t increases its earnings per share guidance for the year.
ABT stock was down 4% as of Wednesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It also beats out Wall Street’s earnings per share estimate of 61 cents for the quarter, but that couldn’t keep ABT stock from falling today. It also beats out analysts’ revenue estimate of $7.47 billion for the period, but was unable to stop ABT stock from dropping. Abbott Laboratories earnings for the first quarter of 2019 have ABT stock down on Wednesday. | Abbott Laboratories earnings for the first quarter of 2019 have ABT stock down on Wednesday. It also beats out Wall Street’s earnings per share estimate of 61 cents for the quarter, but that couldn’t keep ABT stock from falling today. It also beats out analysts’ revenue estimate of $7.47 billion for the period, but was unable to stop ABT stock from dropping. | Abbott Laboratories earnings for the first quarter of 2019 have ABT stock down on Wednesday. It also beats out Wall Street’s earnings per share estimate of 61 cents for the quarter, but that couldn’t keep ABT stock from falling today. It also beats out analysts’ revenue estimate of $7.47 billion for the period, but was unable to stop ABT stock from dropping. | Abbott Laboratories earnings for the first quarter of 2019 have ABT stock down on Wednesday. It also beats out Wall Street’s earnings per share estimate of 61 cents for the quarter, but that couldn’t keep ABT stock from falling today. It also beats out analysts’ revenue estimate of $7.47 billion for the period, but was unable to stop ABT stock from dropping. |
32995.0 | 2019-04-17 00:00:00 UTC | U.S. STOCKS ON THE MOVE-Qualcomm, BNY Mellon, PepsiCo, Sprint, Domino's Pizza | ABT | https://www.nasdaq.com/articles/us-stocks-move-qualcomm-bny-mellon-pepsico-sprint-dominos-pizza-2019-04-17 | nan | nan | The Day Ahead newsletter:
The Morning News Call newsletter:
At 11:26 ET, the Dow Jones Industrial Average was down 0.03 percent at 26,444.88. The S&P 500 was down 0.11 percent at 2,903.98 and the Nasdaq Composite was down 0.01 percent at 7,999.569.
The top three S&P 500 percentage gainers:
** Qualcomm Inc up 9.5 pct
** Textron Inc up 6.2 pct
** CSX Corp up 4.9 pct
The top three S&P 500 percentage losers:
** Bank of New York Mellon Corp down 8.4 pct
** DaVita Inc down 5.8 pct
** Alexion Pharmaceuticals Inc down 5.7 pct
The top NYSE percentage gainers:
** Smart & Final Stores Inc up 20.3 pct
** Puxin Ltd up 10.8 pct
The top NYSE percentage losers:
** Tenet Healthcare Corp down 10.1 pct
** GasLog Partners LP down 9.4 pct
The top three Nasdaq percentage gainers:
** Uxin Ltd up 41 pct
** Palomar Holdings Inc up 22.1 pct
** Greenpro Capital Corp up 16.8 pct
The top three Nasdaq percentage losers:
** eHealth Inc down 21.4 pct
** UP Fintech Holding Ltd down 18.6 pct
** CEVA Inc down 16 pct
** PepsiCo Inc : up 3.3 pct
PepsiCo results beat as new CEO's ad push lifts sales
Shares tick higher on demand for snacks, low-sugar soda
Street View: Happy hours for PepsiCo investors after solid Q1 beat
** T-Mobile : down 2.9 pct
** Sprint Corp : down 5.2 pct
Sprint, T-Mobile drop on DOJ concerns about merger
** CSX Corp : up 4.9 pct
** Union Pacific Corp : up 0.9 pct
** Kansas City Southern : up 3.7 pct
Shares rise on Q1 profit beat
Railroad rivals chug along as CSX tops profit view
** Arconic Inc : down 3.5 pct
Slides on block trade
** OncoSec Medical Inc : up 4.8 pct
Surges on research collaboration with Duke University
** Textron Inc : up 6.2 pct
Set to open at more than 1-month high after profit beat
** Future FinTech Group Inc : down 12.6 pct
Drops on delaying filing of FY18 results
** Smart & Final Stores Inc : up 20.3 pct
Smart & Final Stores set for best day in 5 months on Apollo deal
** United Continental Holdings Inc : up 4.0 pct
United Airlines first-quarter profit rises, holds 2019 target
** Qualcomm Inc : up 9.5 pct
Gains set to add over $25 bln in market cap since settlement with Apple
Street View: Qualcomm moves past litigations to focus on 5G dominance
** Aurora Cannabis Inc : up 1.1 pct
** Canopy Growth Corp : up 2.7 pct
Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy"
** Morgan Stanley : up 2.1 pct
Morgan Stanley profit beats estimates on wealth management, lower costs
Gains after better-than-expected results
** Hollysys Automation Technologies Ltd : up 6.5 pct
Rises after pulling stock offering
** Domino's Pizza : up 3.8 pct
** Chipotle Mexican Grill : down 2.5 pct
Pizza over burritos: MS upgrades Domino's, sidelines Chipotle
Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight'
** Moleculin Biotech Inc : up 5.7 pct
Jumps on new data from cancer drug testing
** DPW Holdings Inc : up 10.8 pct
Soars on bright outlook
** Bank of New York Mellon Corp : down 8.4 pct
BNY Mellon profit misses estimates on lower fee revenue
Set for worst day in over 7 yrs on profit miss
** International Business Machines Corp : down 3.2 pct
Street View: IBM's story in progress, with all eyes on RHT
** Pinduoduo Inc : up 3.2 pct
Keybanc calls Pinduoduo new online disruptor, starts with 'overweight'
** Pentair Plc : down 2.6 pct
Pentair slips after biggest quarterly results miss in at least 2 years
** GasLog Partners LP : down 9.4 pct
Distribution growth running out of steam-MS
** Abbott Laboratories : down 2.7 pct
Falls on unchanged 2019 forecast
Abbott likely lost market share to Medtronic, Boston Scientific - analyst
** Hooker Furniture Corp : down 8.6 pct
Slides on Q1 sales warning
** Boston Scientific Corp : down 1.7 pct
Dips as co sees $25 mln hit to 2019 rev
** Quotient Technology Inc : up 2.6 pct
Rises on Craig-Hallum's 'buy' call
** PolyOne Corp : down 7.7 pct
Set for worst day in more than six months
** Marker Therapeutics Inc : down 6.3 pct
Falls after cancer therapy data presentation gets delayed
** Signature Bank : down 3.3 pct
Falls after quarterly report disappoints
The 11 major S&P 500 sectors:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 11:26 ET, the Dow Jones Industrial Average was down 0.03 percent at 26,444.88. The S&P 500 was down 0.11 percent at 2,903.98 and the Nasdaq Composite was down 0.01 percent at 7,999.569. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 9.5 pct ** Textron Inc up 6.2 pct ** CSX Corp up 4.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8.4 pct ** DaVita Inc down 5.8 pct ** Alexion Pharmaceuticals Inc down 5.7 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.3 pct ** Puxin Ltd up 10.8 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 10.1 pct ** GasLog Partners LP down 9.4 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 41 pct ** Palomar Holdings Inc up 22.1 pct ** Greenpro Capital Corp up 16.8 pct The top three Nasdaq percentage losers: ** eHealth Inc down 21.4 pct ** UP Fintech Holding Ltd down 18.6 pct ** CEVA Inc down 16 pct ** PepsiCo Inc : up 3.3 pct PepsiCo results beat as new CEO's ad push lifts sales Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 2.9 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 4.9 pct ** Union Pacific Corp : up 0.9 pct ** Kansas City Southern : up 3.7 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.5 pct Slides on block trade ** OncoSec Medical Inc : up 4.8 pct Surges on research collaboration with Duke University ** Textron Inc : up 6.2 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 12.6 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.3 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 4.0 pct United Airlines first-quarter profit rises, holds 2019 target ** Qualcomm Inc : up 9.5 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 2.7 pct Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy" ** Morgan Stanley : up 2.1 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.5 pct Rises after pulling stock offering ** Domino's Pizza : up 3.8 pct ** Chipotle Mexican Grill : down 2.5 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 5.7 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 10.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.4 pct BNY Mellon profit misses estimates on lower fee revenue Set for worst day in over 7 yrs on profit miss ** International Business Machines Corp : down 3.2 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.2 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 2.6 pct Pentair slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 9.4 pct Distribution growth running out of steam-MS ** Abbott Laboratories : down 2.7 pct Falls on unchanged 2019 forecast Abbott likely lost market share to Medtronic, Boston Scientific - analyst ** Hooker Furniture Corp : down 8.6 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.7 pct Dips as co sees $25 mln hit to 2019 rev ** Quotient Technology Inc : up 2.6 pct Rises on Craig-Hallum's 'buy' call ** PolyOne Corp : down 7.7 pct Set for worst day in more than six months ** Marker Therapeutics Inc : down 6.3 pct Falls after cancer therapy data presentation gets delayed ** Signature Bank : down 3.3 pct Falls after quarterly report disappoints The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 11:26 ET, the Dow Jones Industrial Average was down 0.03 percent at 26,444.88. The S&P 500 was down 0.11 percent at 2,903.98 and the Nasdaq Composite was down 0.01 percent at 7,999.569. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 9.5 pct ** Textron Inc up 6.2 pct ** CSX Corp up 4.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8.4 pct ** DaVita Inc down 5.8 pct ** Alexion Pharmaceuticals Inc down 5.7 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.3 pct ** Puxin Ltd up 10.8 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 10.1 pct ** GasLog Partners LP down 9.4 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 41 pct ** Palomar Holdings Inc up 22.1 pct ** Greenpro Capital Corp up 16.8 pct The top three Nasdaq percentage losers: ** eHealth Inc down 21.4 pct ** UP Fintech Holding Ltd down 18.6 pct ** CEVA Inc down 16 pct ** PepsiCo Inc : up 3.3 pct PepsiCo results beat as new CEO's ad push lifts sales Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 2.9 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 4.9 pct ** Union Pacific Corp : up 0.9 pct ** Kansas City Southern : up 3.7 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.5 pct Slides on block trade ** OncoSec Medical Inc : up 4.8 pct Surges on research collaboration with Duke University ** Textron Inc : up 6.2 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 12.6 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.3 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 4.0 pct United Airlines first-quarter profit rises, holds 2019 target ** Qualcomm Inc : up 9.5 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 2.7 pct Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy" ** Morgan Stanley : up 2.1 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.5 pct Rises after pulling stock offering ** Domino's Pizza : up 3.8 pct ** Chipotle Mexican Grill : down 2.5 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 5.7 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 10.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.4 pct BNY Mellon profit misses estimates on lower fee revenue Set for worst day in over 7 yrs on profit miss ** International Business Machines Corp : down 3.2 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.2 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 2.6 pct Pentair slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 9.4 pct Distribution growth running out of steam-MS ** Abbott Laboratories : down 2.7 pct Falls on unchanged 2019 forecast Abbott likely lost market share to Medtronic, Boston Scientific - analyst ** Hooker Furniture Corp : down 8.6 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.7 pct Dips as co sees $25 mln hit to 2019 rev ** Quotient Technology Inc : up 2.6 pct Rises on Craig-Hallum's 'buy' call ** PolyOne Corp : down 7.7 pct Set for worst day in more than six months ** Marker Therapeutics Inc : down 6.3 pct Falls after cancer therapy data presentation gets delayed ** Signature Bank : down 3.3 pct Falls after quarterly report disappoints The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 11:26 ET, the Dow Jones Industrial Average was down 0.03 percent at 26,444.88. The S&P 500 was down 0.11 percent at 2,903.98 and the Nasdaq Composite was down 0.01 percent at 7,999.569. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 9.5 pct ** Textron Inc up 6.2 pct ** CSX Corp up 4.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8.4 pct ** DaVita Inc down 5.8 pct ** Alexion Pharmaceuticals Inc down 5.7 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.3 pct ** Puxin Ltd up 10.8 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 10.1 pct ** GasLog Partners LP down 9.4 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 41 pct ** Palomar Holdings Inc up 22.1 pct ** Greenpro Capital Corp up 16.8 pct The top three Nasdaq percentage losers: ** eHealth Inc down 21.4 pct ** UP Fintech Holding Ltd down 18.6 pct ** CEVA Inc down 16 pct ** PepsiCo Inc : up 3.3 pct PepsiCo results beat as new CEO's ad push lifts sales Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 2.9 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 4.9 pct ** Union Pacific Corp : up 0.9 pct ** Kansas City Southern : up 3.7 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.5 pct Slides on block trade ** OncoSec Medical Inc : up 4.8 pct Surges on research collaboration with Duke University ** Textron Inc : up 6.2 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 12.6 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.3 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 4.0 pct United Airlines first-quarter profit rises, holds 2019 target ** Qualcomm Inc : up 9.5 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 2.7 pct Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy" ** Morgan Stanley : up 2.1 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.5 pct Rises after pulling stock offering ** Domino's Pizza : up 3.8 pct ** Chipotle Mexican Grill : down 2.5 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 5.7 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 10.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.4 pct BNY Mellon profit misses estimates on lower fee revenue Set for worst day in over 7 yrs on profit miss ** International Business Machines Corp : down 3.2 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.2 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 2.6 pct Pentair slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 9.4 pct Distribution growth running out of steam-MS ** Abbott Laboratories : down 2.7 pct Falls on unchanged 2019 forecast Abbott likely lost market share to Medtronic, Boston Scientific - analyst ** Hooker Furniture Corp : down 8.6 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.7 pct Dips as co sees $25 mln hit to 2019 rev ** Quotient Technology Inc : up 2.6 pct Rises on Craig-Hallum's 'buy' call ** PolyOne Corp : down 7.7 pct Set for worst day in more than six months ** Marker Therapeutics Inc : down 6.3 pct Falls after cancer therapy data presentation gets delayed ** Signature Bank : down 3.3 pct Falls after quarterly report disappoints The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Day Ahead newsletter: The Morning News Call newsletter: At 11:26 ET, the Dow Jones Industrial Average was down 0.03 percent at 26,444.88. The S&P 500 was down 0.11 percent at 2,903.98 and the Nasdaq Composite was down 0.01 percent at 7,999.569. The top three S&P 500 percentage gainers: ** Qualcomm Inc up 9.5 pct ** Textron Inc up 6.2 pct ** CSX Corp up 4.9 pct The top three S&P 500 percentage losers: ** Bank of New York Mellon Corp down 8.4 pct ** DaVita Inc down 5.8 pct ** Alexion Pharmaceuticals Inc down 5.7 pct The top NYSE percentage gainers: ** Smart & Final Stores Inc up 20.3 pct ** Puxin Ltd up 10.8 pct The top NYSE percentage losers: ** Tenet Healthcare Corp down 10.1 pct ** GasLog Partners LP down 9.4 pct The top three Nasdaq percentage gainers: ** Uxin Ltd up 41 pct ** Palomar Holdings Inc up 22.1 pct ** Greenpro Capital Corp up 16.8 pct The top three Nasdaq percentage losers: ** eHealth Inc down 21.4 pct ** UP Fintech Holding Ltd down 18.6 pct ** CEVA Inc down 16 pct ** PepsiCo Inc : up 3.3 pct PepsiCo results beat as new CEO's ad push lifts sales Shares tick higher on demand for snacks, low-sugar soda Street View: Happy hours for PepsiCo investors after solid Q1 beat ** T-Mobile : down 2.9 pct ** Sprint Corp : down 5.2 pct Sprint, T-Mobile drop on DOJ concerns about merger ** CSX Corp : up 4.9 pct ** Union Pacific Corp : up 0.9 pct ** Kansas City Southern : up 3.7 pct Shares rise on Q1 profit beat Railroad rivals chug along as CSX tops profit view ** Arconic Inc : down 3.5 pct Slides on block trade ** OncoSec Medical Inc : up 4.8 pct Surges on research collaboration with Duke University ** Textron Inc : up 6.2 pct Set to open at more than 1-month high after profit beat ** Future FinTech Group Inc : down 12.6 pct Drops on delaying filing of FY18 results ** Smart & Final Stores Inc : up 20.3 pct Smart & Final Stores set for best day in 5 months on Apollo deal ** United Continental Holdings Inc : up 4.0 pct United Airlines first-quarter profit rises, holds 2019 target ** Qualcomm Inc : up 9.5 pct Gains set to add over $25 bln in market cap since settlement with Apple Street View: Qualcomm moves past litigations to focus on 5G dominance ** Aurora Cannabis Inc : up 1.1 pct ** Canopy Growth Corp : up 2.7 pct Aurora Cannabis, Canopy Growth: Bofa starts coverage with "buy" ** Morgan Stanley : up 2.1 pct Morgan Stanley profit beats estimates on wealth management, lower costs Gains after better-than-expected results ** Hollysys Automation Technologies Ltd : up 6.5 pct Rises after pulling stock offering ** Domino's Pizza : up 3.8 pct ** Chipotle Mexican Grill : down 2.5 pct Pizza over burritos: MS upgrades Domino's, sidelines Chipotle Chipotle Mexican Grill: Morgan Stanley downgrades to 'equal-weight' ** Moleculin Biotech Inc : up 5.7 pct Jumps on new data from cancer drug testing ** DPW Holdings Inc : up 10.8 pct Soars on bright outlook ** Bank of New York Mellon Corp : down 8.4 pct BNY Mellon profit misses estimates on lower fee revenue Set for worst day in over 7 yrs on profit miss ** International Business Machines Corp : down 3.2 pct Street View: IBM's story in progress, with all eyes on RHT ** Pinduoduo Inc : up 3.2 pct Keybanc calls Pinduoduo new online disruptor, starts with 'overweight' ** Pentair Plc : down 2.6 pct Pentair slips after biggest quarterly results miss in at least 2 years ** GasLog Partners LP : down 9.4 pct Distribution growth running out of steam-MS ** Abbott Laboratories : down 2.7 pct Falls on unchanged 2019 forecast Abbott likely lost market share to Medtronic, Boston Scientific - analyst ** Hooker Furniture Corp : down 8.6 pct Slides on Q1 sales warning ** Boston Scientific Corp : down 1.7 pct Dips as co sees $25 mln hit to 2019 rev ** Quotient Technology Inc : up 2.6 pct Rises on Craig-Hallum's 'buy' call ** PolyOne Corp : down 7.7 pct Set for worst day in more than six months ** Marker Therapeutics Inc : down 6.3 pct Falls after cancer therapy data presentation gets delayed ** Signature Bank : down 3.3 pct Falls after quarterly report disappoints The 11 major S&P 500 sectors: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
32996.0 | 2019-04-17 00:00:00 UTC | Abbott Labs Starts 2019 Off by Beating Expectations | ABT | https://www.nasdaq.com/articles/abbott-labs-starts-2019-beating-expectations-2019-04-17 | nan | nan | So far in 2019, Abbott Laboratories (NYSE: ABT) has had a reasonably good year, with its stock up 5.6% to date earlier this week. The question now is: Can the company pick up even more momentum?
Abbott Labs announced its first-quarter results before the market opened on Wednesday. Did investors receive good news or bad news? Here are the highlights from Abbott Laboratories' first-quarter update.
Image source: Getty Images.
By the numbers
Abbott Labs announced Q1 revenue of $7.5 billion, a 2% increase from the $7.4 billion reported in the same quarter of the previous year. The company's reported revenue was slightly higher than the average analysts' revenue estimate of $7.47 billion.
How did Abbott Labs' bottom line look in the first quarter? The company reported net earnings of $672 million, or $0.38 per share, on a GAAP basis, compared to $409 million, or $0.23 per share, in the same period in 2018.
The company's adjusted net earnings in the first quarter were $0.63 per share. This was an improvement over Abbott Labs' result in the prior-year period, when the company announced adjusted net earnings of $0.59 per share. It was also better than the consensus analysts' adjusted earnings estimate of $0.61 per share.
Behind the numbers
Abbott Lab's nutrition sales rose 2% worldwide in Q1. This rise was due largely to growth in Asian and Latin American sales, especially for the company's infant and toddler brands, and from higher sales of Ensure and Glucerna.
Diagnostic sales increased by only 0.2% in Q1, including an unfavorable impact from foreign exchange of 4.2%. The company's Alinity diagnostic system was a key growth driver.
Established pharmaceutical sales for Abbott Labs fell 4.9% year over year. However, this decrease was due to a 10.3% negative impact from currency fluctuation. On an organic basis, established pharmaceutical sales increased by 5.4%.
Medical device sales rose by 5.5% in the first quarter. This increase stemmed from solid growth in electrophysiology, heart failure, structural heart, and diabetes care.
Abbott Labs also had several key achievements in the first quarter:
U.S. FDA approval for expansion of MitraClip -- a clinical device in treating secondary mitral regurgitation.
U.S. FDA approval for TactiCath Contact Force Ablation Catheter -- a device for physician use to help treat atrial fibrillation.
Alinity gained its CE mark (the European stamp of approval), allowing labs to test infectious diseases at a more accurate and timely pace with this diagnostic system.
Looking ahead
Abbott Labs anticipates GAAP earnings per share (EPS) of $1.95 to $2.05. The company also expects its second-quarter GAAP EPS to be between $0.47 and $0.49.
In Abbott's fourth-quarter conference call in January, Chairman and CEO Miles D. White was enthusiastic about his company's performance, saying that 2018 "was an excellent year by every measure." White thinks 2019 will also be a good year.
He stated in Abbott's Q1 press release that the company is "right on track with our expectations to start the year." White added that "all of our key long-term growth drivers are performing well and we're targeting another year of strong sales and earnings growth."
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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. | So far in 2019, Abbott Laboratories (NYSE: ABT) has had a reasonably good year, with its stock up 5.6% to date earlier this week. Abbott Labs also had several key achievements in the first quarter: U.S. FDA approval for expansion of MitraClip -- a clinical device in treating secondary mitral regurgitation. Alinity gained its CE mark (the European stamp of approval), allowing labs to test infectious diseases at a more accurate and timely pace with this diagnostic system. | So far in 2019, Abbott Laboratories (NYSE: ABT) has had a reasonably good year, with its stock up 5.6% to date earlier this week. By the numbers Abbott Labs announced Q1 revenue of $7.5 billion, a 2% increase from the $7.4 billion reported in the same quarter of the previous year. This was an improvement over Abbott Labs' result in the prior-year period, when the company announced adjusted net earnings of $0.59 per share. | So far in 2019, Abbott Laboratories (NYSE: ABT) has had a reasonably good year, with its stock up 5.6% to date earlier this week. By the numbers Abbott Labs announced Q1 revenue of $7.5 billion, a 2% increase from the $7.4 billion reported in the same quarter of the previous year. This was an improvement over Abbott Labs' result in the prior-year period, when the company announced adjusted net earnings of $0.59 per share. | So far in 2019, Abbott Laboratories (NYSE: ABT) has had a reasonably good year, with its stock up 5.6% to date earlier this week. By the numbers Abbott Labs announced Q1 revenue of $7.5 billion, a 2% increase from the $7.4 billion reported in the same quarter of the previous year. Established pharmaceutical sales for Abbott Labs fell 4.9% year over year. |
32997.0 | 2019-04-17 00:00:00 UTC | Notable Wednesday Option Activity: ALXN, SWKS, ABT | ABT | https://www.nasdaq.com/articles/notable-wednesday-option-activity-alxn-swks-abt-2019-04-17-0 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Alexion Pharmaceuticals Inc. (Symbol: ALXN), where a total of 7,820 contracts have traded so far, representing approximately 782,000 underlying shares. That amounts to about 61.7% of ALXN's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $120 strike call option expiring May 17, 2019 , with 1,296 contracts trading so far today, representing approximately 129,600 underlying shares of ALXN. Below is a chart showing ALXN's trailing twelve month trading history, with the $120 strike highlighted in orange:
Skyworks Solutions, Inc. (Symbol: SWKS) options are showing a volume of 8,857 contracts thus far today. That number of contracts represents approximately 885,700 underlying shares, working out to a sizeable 60.6% of SWKS's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $77.50 strike put option expiring May 17, 2019 , with 1,086 contracts trading so far today, representing approximately 108,600 underlying shares of SWKS. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. Especially high volume was seen for the $80 strike call option expiring June 21, 2019 , with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. Below is a chart showing ABT's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for ALXN options , SWKS 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.
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 $80 strike call option expiring June 21, 2019 , with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. | That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. Especially high volume was seen for the $80 strike call option expiring June 21, 2019 , with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. | Below is a chart showing ABT's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for ALXN options , SWKS options , or ABT options , visit StockOptionsChannel.com. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. | Especially high volume was seen for the $80 strike call option expiring June 21, 2019 , with 3,195 contracts trading so far today, representing approximately 319,500 underlying shares of ABT. Below is a chart showing SWKS's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And Abbott Laboratories (Symbol: ABT) options are showing a volume of 26,045 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 51.9% of ABT's average daily trading volume over the past month, of 5.0 million shares. |
32998.0 | 2019-04-17 00:00:00 UTC | Earnings Reaction History: Abbott Laboratories, 50.0% Follow-Through Indicator, 1.7% Sensitive | ABT | https://www.nasdaq.com/articles/earnings-reaction-history-abbott-laboratories-500-follow-through-indicator-17-sensitive | nan | nan | Expected Earnings Release: 04/17/2019, Premarket
Avg. Extended-Hours Dollar Volume: $3,898,722
Abbott Laboratories (ABT) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect light trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in ABT indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 57.1%
Average next regular session additional gain: 1.2%
Over the prior three fiscal years (12 quarters), when shares of ABT rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.2%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 40%
Average next regular session additional loss: 0.5%
Over that same historical period, when shares of ABT dropped in the extended-hours in reaction to its earnings announcement, history shows that 40.0% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 0.5% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.2% Over the prior three fiscal years (12 quarters), when shares of ABT rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 40% Average next regular session additional loss: 0.5% Over that same historical period, when shares of ABT dropped in the extended-hours in reaction to its earnings announcement, history shows that 40.0% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 0.5% by the following regular session close. Extended-Hours Dollar Volume: $3,898,722 Abbott Laboratories (ABT) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.2% Over the prior three fiscal years (12 quarters), when shares of ABT rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 40% Average next regular session additional loss: 0.5% Over that same historical period, when shares of ABT dropped in the extended-hours in reaction to its earnings announcement, history shows that 40.0% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 0.5% by the following regular session close. Extended-Hours Dollar Volume: $3,898,722 Abbott Laboratories (ABT) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.2% Over the prior three fiscal years (12 quarters), when shares of ABT rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 40% Average next regular session additional loss: 0.5% Over that same historical period, when shares of ABT dropped in the extended-hours in reaction to its earnings announcement, history shows that 40.0% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 0.5% by the following regular session close. Extended-Hours Dollar Volume: $3,898,722 Abbott Laboratories (ABT) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $3,898,722 Abbott Laboratories (ABT) is due to issue its quarterly earnings report in the upcoming extended-hours session. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 57.1% Average next regular session additional gain: 1.2% Over the prior three fiscal years (12 quarters), when shares of ABT rose in the extended-hours session in reaction to its earnings announcement, history shows that 57.1% of the time (4 events) the stock posted additional gains in the following regular session by an average of 1.2%. Historical earnings event related premarket and after-hours trading activity in ABT indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. |
32999.0 | 2019-04-17 00:00:00 UTC | Abbott Laboratories Q1 adjusted earnings Beat Estimates | ABT | https://www.nasdaq.com/articles/abbott-laboratories-q1-adjusted-earnings-beat-estimates-2019-04-17 | nan | nan | (RTTNews) - Abbott Laboratories (ABT) announced a profit for its first quarter that advanced from last year.
The company's bottom line totaled $672 million, or $0.38 per share. This compares with $418 million, or $0.23 per share, in last year's first quarter.
Excluding items, Abbott Laboratories reported adjusted earnings of $1.13 billion or $0.63 per share for the period.
Analysts had expected the company to earn $0.61 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 2.0% to $7.54 billion from $7.39 billion last year.
Abbott Laboratories earnings at a glance:
-Earnings (Q1): $1.13 Bln. vs. $1.05 Bln. last year. -EPS (Q1): $0.63 vs. $0.59 last year. -Analysts Estimate: $0.61 -Revenue (Q1): $7.54 Bln vs. $7.39 Bln last year.
-Guidance: Next quarter EPS guidance: $0.79 to $0.81 Full year EPS guidance: $3.15 to $3.25
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Abbott Laboratories (ABT) announced a profit for its first quarter that advanced from last year. Excluding items, Abbott Laboratories reported adjusted earnings of $1.13 billion or $0.63 per share for the period. Analysts had expected the company to earn $0.61 per share, according to figures compiled by Thomson Reuters. | (RTTNews) - Abbott Laboratories (ABT) announced a profit for its first quarter that advanced from last year. Excluding items, Abbott Laboratories reported adjusted earnings of $1.13 billion or $0.63 per share for the period. -Analysts Estimate: $0.61 -Revenue (Q1): $7.54 Bln vs. $7.39 Bln last year. | (RTTNews) - Abbott Laboratories (ABT) announced a profit for its first quarter that advanced from last year. The company's revenue for the quarter rose 2.0% to $7.54 billion from $7.39 billion last year. -Analysts Estimate: $0.61 -Revenue (Q1): $7.54 Bln vs. $7.39 Bln last year. | (RTTNews) - Abbott Laboratories (ABT) announced a profit for its first quarter that advanced from last year. Excluding items, Abbott Laboratories reported adjusted earnings of $1.13 billion or $0.63 per share for the period. last year. |
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