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ABT Stock Trading Near Its All-Time High: What’s Driving Growth?

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ABT’s recent stock price performance

Abbott Laboratories (ABT) is currently trading near its all-time high of $59.60 per share, which was reported on January 4, 2018. On January 18, 2018, ABT stock closed at $59.07 per share. The company’s stock price has gotten a boost from strong investor sentiments due to its successful big-ticket acquisitions, product launches, approvals, and strong earnings results. The company’s growth trend amid challenging circumstances reflects its strong fundamentals. The company posted its 52-week low of $39.25 on January 25, 2017.

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Comparison with peers and market

Year-to-date, ABT stock provided stock price returns of ~3.5%. Over the last 12 months, Abbott Laboratories’ stock has risen ~44.3%, surpassing the market and the broader medical device sector in the United States.

As of January 18, 2018, the market (S&P 500 Index) and the broader US medical device industry (IHI) has returned ~23% and ~32%, respectively. Peers Medtronic (MDT), Boston Scientific (BSX), and Zimmer Biomet Holdings (ZBH) have witnessed stock price returns of approximately 16.2%, 15%, and 6.1%, respectively, over the last one year.

What is driving ABT’s recent stock performance?

Currently, Abbott Laboratories is trading higher than its 50-day moving average as well as its 200-day moving average of $56.9 and $53.28, respectively. On October 18, 2017, when the company announced strong 3Q17 earnings results, the stock price registered a rise. Since the 3Q17 earnings release, ABT stock has risen ~7.3%. Moreover, in September 2017, Abbott Laboratories received FDA (US Food and Drug Administration) approval for Freestyle Libre and the MRI indication of its Ellipse device. The stock price traded significantly higher on both announcements.

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