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Abbott Laboratories Traded at a 52-Week High after Posting Strong 4Q17 Results

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The impact of 4Q17 earnings release on ABT’s stock price performance

On January 29, 2018, Abbott Laboratories (ABT) closed trading at $63.31 per share. The company reported its 52-week high of $64.60 on January 25, 2018.

Before the earnings release, ABT stock was trading near these highs, and then the stock rose to register a 52-week high following the company’s earnings release (see ABT Stock Trading Near Its All-Time High: What’s Driving Growth?). The stock price was boosted by the company’s strong 4Q17 and fiscal 2017 earnings results, which the company posted on January 24, 2018.

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This stock price rise was triggered by positive investor sentiment boosted by the company’s strong 2017 growth reported across all business segments. This growth was primarily due to the strengthening of the company’s businesses through a number of strategic acquisitions, divestitures, and product launches.

On January 25, 2018, ABT stock opened ~2.9% higher than the stock’s closing price on the previous day. Abbott Laboratories was trading at its 52-week low of $40.6 one year previously on January 31, 2017.

ABT stock is now trading higher than its 50-day moving average of $58.34 and its 200-day moving average of $54.03.

Recent product approvals drove ABT’s stock performance

Over the past few months, Abbott’s stock has seen a stock price rally due to a number of key product approvals including the FDA (US Food and Drug Administration) approval of Freestyle Libre and the MRI indication expansion for Abbott’s Ellipse device. (For details of the drivers of Abbott’s stock price performance recently, read “Abbott Stock Rides High on Recent Product Approvals.”)

Over the past month, ABT stock has registered a stock price rise of ~9.5%. In the past six months, the stock has risen ~26%. The 12-month return of ABT stock stands at ~52.4%.

Peer and market comparisons

As of January 30, 2018, peers Boston Scientific (BSX), Medtronic (MDT), and Baxter (BAX) have registered stock price rises of ~17.9%, ~15.3%, and ~52%, respectively, over the last 12 months.

The 12-month returns of the S&P 500 Index and the iShares US Medical Devices (IHI) stand at ~23.8% and ~37.2%, respectively. Abbott Laboratories has thus largely surpassed the peer performance and the performance of the market as well as the broader US medical device industry over the past 12 months.

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