A look at Abbott
Headquartered in Illinois, Abbott Laboratories (ABT) is one of the leading healthcare companies. It has operations in more than 150 countries worldwide. Its product portfolio includes pharmaceutical products, medical devices, diagnostics, and nutritional products.
The above chart shows the comparison of revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.
Abbott Laboratories stock has risen ~9.7% in 3Q17. It has risen 45.8% year-to-date as of October 20, 2017.
Wall Street analysts estimate that the stock has the potential to rise ~8.5% over the next 12 months. Their recommendations show a 12-month target price of $60.78 per share compared to the last price of $56 per share on October 19, 2017.
There are 21 analysts tracking Abbott Laboratories stock. Thirteen of them have recommended a “buy” for the stock, and eight have recommended a “hold.” The consensus rating for Abbott is 2.05, which represents a “strong buy” for long-term growth investors.
Analysts’ revenue estimates
Abbott’s revenues are driven by increased sales of products from its established pharmaceuticals business as well as its diagnostics business.
Wall Street analysts estimate revenues of $6.7 billion in 3Q17, a ~26.7% rise compared to 3Q16, and EPS of $0.65.
To divest the company-specific risks, investors can consider ETFs such as the Vanguard Dividend Appreciation ETF (VIG), which holds 2.3% of its total assets in Abbott Laboratories (ABT). VIG also holds 4.2% in Johnson & Johnson (JNJ), 3.2% in Medtronic (MDT), and 1.5% in Stryker (SYK).