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Analyzing the Performance of Abbott Laboratories in 1Q17

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A look at Abbott Laboratories

Abbott Laboratories (ABT) is one of the leading healthcare companies dealing with established pharmaceuticals, medical devices, diagnostics, and nutritional products. The company has its operations in over 150 countries worldwide.

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Stock price performance

Abbott Laboratories’ stock price rose ~7.1% in 1Q17. On April 7, 2017, the stock’s price had risen 13.7% year-to-date (or YTD).

Analysts’ recommendations

Analysts estimate that the stock has the potential to return ~9.6% over the next 12 months. Analysts’ recommendations show a 12-month target price of $47.85 per share, compared to its price of $43.67 per share on April 6, 2017.

There are 17 analysts tracking Abbott Laboratories stock, and 70.6% of them recommend “buys,” while 29.4% recommend “holds.” The consensus rating for Abbott stands at 1.9, which represents a “buy” for long-term growth investors.

Analysts’ revenue estimates

Abbott’s revenue is mainly driven by the strong performances of its established pharmaceuticals and diagnostics businesses.

Analysts’ estimates show revenue of $6.2 billion, a ~26% rise compared to 1Q16, and earnings per share (or EPS) of $0.43 for the company 1Q17.

To divest company-specific risk, investors can consider ETFs such as the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds 5.0% of its total assets in Abbott Laboratories, 5.% of its total assets in Merck & Co. (MRK), 4.9% of its total assets in Gilead Sciences (GILD), and 4.8% of its total assets in Mylan (MYL).

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