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Abbott’s Q1 Earnings Report Might Boost Its Stock

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Abbott Laboratories (NYSE:ABT) stock rose by about 1.0% in extended trading on Thursday. The stock rose 1.3% and closed at $86.04. Based on the last closing price, the company has a market cap of $151.7 billion. The stock price has risen 8.3% in the trailing five-day period, while it has risen 9.4% in the trailing 12-month period.

Currently, Abbott stock is trading 6.9% below its 52-week high of $92.45 on January 22, 2020. The stock is also trading 39.7% above its 52-week low of $61.61 on March 23, 2020. On a year-to-date basis, the stock has fallen by 1.0% as of Thursday.

What can investors expect from Abbott’s first-quarter earnings results? The healthcare company is scheduled to announce its first-quarter financial results on April 16 before the market bell.

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Abbott’s first-quarter expectations

Wall Street analysts expect Abbott to report revenues of $7.6 billion in the first quarter—a rise of 0.4% YoY (year-over-year) compared to $7.5 billion in the first quarter of 2019. Also, analysts expect the company’s adjusted earnings to fall by 1.6% YoY to $0.62 per share in the first quarter.

According to a CNBC report, “The company is set to report earnings next week, and investors will be on the lookout for new business and research developments related to the coronavirus.”

Currently, analysts expect 1.1% and 9.9% growth in the company’s 2020 and 2021 revenues, respectively. Meanwhile, they expect an adjusted EPS of $3.17 and $3.77 in 2020 and 2021, respectively.

Analysts’ recommendations for Abbott stock

Among the 20 analysts covering Abbott stock, 16 recommend a “buy,” while four recommend a “hold.” None of the analysts recommended a “sell” over the last few months.

Analysts have an average target price of $92.93 on Abbott. The target price implies a return of 8.0% based on the closing price of $86.04 on Thursday. The consensus target price for the stock has fallen from $99.20 in March—a fall of 6.3%.

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Abbott’s stock returns

On Thursday, Abbott stock was trading 11.8% above its 20-day moving average of $76.98. Meanwhile, the stock is trading 5.6% above its 50-day moving average of $81.50 and 2.4% above its 100-day moving average of $83.99. The stock’s 14-day relative strength index score of 59 indicates that the stock isn’t oversold or overbought.

Abbott has an upper Bollinger Band level of $88.43. The company’s middle Bollinger Band level is $76.98, while its lower Bollinger Band level is $65.53. On Thursday, the stock closed near its upper Bollinger Band level, which indicates that the stock is overbought.

Currently, Abbott stock is trading at 27.11x its fiscal 2020 estimated EPS of $3.17. Meanwhile, the stock is trading at 22.82x its fiscal 2021 estimated EPS of $3.77. Wall Street analysts expect Abbott’s earnings to rise at a CAGR of 10.4% over the next five years.

Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE), and Medtronic (NYSE:MDT) stocks returned -1.4%, 2.3%, and 1.8% on Thursday. On the same day, the Dow Jones Industrial Average rose by 286 points or 1.2%. Also, the S&P 500 and the Nasdaq Composite gained about 1.5% and 0.8%, respectively. Read COVID-19: Have US Stock Markets Bottomed Out? to learn more.

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