At 10:07 AM ET today, Abbott Laboratories (NYSE:ABT) stock rose by about 3.9%. The company reported its first-quarter financial results. Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE), and Medtronic (NYSE:MDT) stocks have returned 0.03%, -0.03%, and -1.3%, respectively. The Dow Jones Industrial Average fell by 250 points or 1.1%. Also, the S&P 500 and the Nasdaq Composite returned about -0.5% and 0.2%, respectively.
On Wednesday, Abbott stock rose 2.0% and closed at $90.94. Based on the last closing price, the company has a market capitalization of $160.4 billion. The stock price has risen 11.0% in the trailing five-day period, while it has risen 17.3% in the trailing 12-month period.
Currently, Abbott stock is trading 1.6% below its 52-week high of $92.45 and 47.6% above its 52-week low of $61.61. On a year-to-date basis, the stock has risen 4.7% as of Wednesday.
Abbott’s Q1 results
Abbott Laboratories’ first-quarter revenues rose 2.5% YoY (year-over-year) to $7.73 billion. The revenues also beat analysts’ expectations of $7.34 billion. Meanwhile, the company’s adjusted EPS of $0.65 beat analysts’ expectations of $0.58 and rose about 3.2% YoY. The company suspended its fiscal 2020 financial outlook due to uncertainty amid COVID-19.
According to a CNBC report, “Abbott has so far launched three coronavirus tests in the U.S., including an on-site diagnostic kit that can deliver results within minutes and heralded as a game-changer by President Donald Trump.”
Currently, analysts expect -4.0% and 13.2% growth in Abbott’s 2020 and 2021 revenues, respectively. Meanwhile, they expect an adjusted EPS of $2.81 and $3.61 in 2020 and 2021, respectively.
Among the 20 analysts tracking Abbott stock, 16 recommend a “buy” and four recommend a “hold.” None of the analysts recommend a “sell.” The mean target price of $92.60 implies a 1.8% upside from the closing price of $90.94 on Wednesday.
Johnson & Johnson, Pfizer, and Medtronic have average broker target prices of $160.41, $41.14, and $114.87, respectively. These figures imply returns of 8.6%, 14.4%, and 18.0%, respectively, over the next 12 months.
Abbott’s stock returns
On Wednesday, Abbott stock was trading 15.0% above its 20-day moving average of $79.09. Meanwhile, the stock is trading 11.5% above its 50-day moving average of $81.59 and 8.0% above its 100-day moving average of $84.17. The stock’s 14-day relative strength index score of 64.6 indicates that the stock is approaching the “overbought” zone.
Abbott has an upper Bollinger Band level of $92.60. The company’s middle Bollinger Band level is $78.53, while its lower Bollinger Band level is $64.47. On Wednesday, the stock closed closer to its upper Bollinger Band level, which suggests that the stock is overbought.
Currently, Abbott stock is trading at 32.36x its 2020 estimated EPS of $2.81. Meanwhile, the stock is trading at 25.18x its 2021 estimated EPS of $3.61. Analysts expect Abbott’s earnings to increase at a CAGR of 10.0% over the next five years.