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A Look at Abbott Laboratories Stock for 2Q17

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Abbott Laboratories

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

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Stock performance

Abbott Laboratories stock has risen ~9.8% in 2Q17. It has risen 24.8% year-to-date as of July 7, 2017.

Analyst recommendations

Wall Street analysts estimate that Abbott stock has the potential to return ~6.1% over the next 12 months. Analyst recommendations show a 12-month target price of $50.87 per share compared to the last price of $47.94 on July 6, 2017.

There are 19 analysts tracking Abbott Laboratories stock. Of those, 13 are recommending a “buy,” while six are recommending a “hold.” The consensus rating for Abbott stands at ~2.0, which represents a “strong buy” for long-term growth investors.

Analysts’ revenue estimates

Abbott’s revenues are mainly driven by the strong performance of its established pharmaceuticals and its diagnostics business.

Wall Street analyst estimates show revenues of $6.6 billion in 2Q17, which is a ~24.0% rise compared to 2Q16, and EPS (earnings per share) of $0.60 for the quarter.

To divest the company-specific risks, you can consider the iShares US Medical Devices (IHI), which holds 9.4% of its total assets in Abbott. IHI also holds 5.5% in Stryker (SYK), 11.7% in Medtronic (MDT), and 3.8% in Zimmer Biomet Holdings (ZBH).

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