Abbott Laboratories
ABT
$105.70
+0.09%
Abbott Laboratories is a diversified healthcare company that develops and manufactures medical devices, diagnostics, nutritional products, and branded generic pharmaceuticals. It is a global leader in cardiovascular and diabetes devices, with a strong competitive moat built on decades of innovation and a broad product portfolio spanning pacemakers, continuous glucose monitors, and diagnostic testing kits. The current investor narrative centers on Abbott's ability to navigate near-term headwinds, including a reduced 2026 profit outlook that overshadowed a solid Q1 earnings beat, while investors debate the long-term growth trajectory of its medical device segment and the impact of its strategic acquisitions.…
ABT
Abbott Laboratories
$105.70
Related headlines
ABT 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Abbott Laboratories's 12-month outlook, with a consensus price target around $118.42 and implied upside of +12.0% versus the current price.
Average Target
$118.42
0 analysts
Implied Upside
+12.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$103 - $135
Analyst target range
Abbott is covered by 24 analysts, with a consensus recommendation of 'Buy' (mean rating 1.67 on a 1-5 scale, where 1 is Strong Buy). The average target price is $119.125, implying approximately +15.6% upside from the current price of $103.06. The distribution leans bullish, with no sell ratings and a majority of buy or outperform ratings. Recent ratings from firms like Evercore ISI, Piper Sandler, and Barclays have maintained positive stances, indicating continued confidence despite the guidance cut. The target price range spans from a low of $103.00 to a high of $135.00. The low target of $103.00 is essentially at the current price, suggesting some analysts see limited upside and potential downside if headwinds persist. The high target of $135.00 implies a 31% upside, likely assuming a successful turnaround in medical devices and margin expansion. The spread between low and high ($32) is moderate, reflecting reasonable uncertainty. The fact that the low target matches the current price indicates that the stock may be fairly valued at the lower end of expectations, while the high target reflects optimism about future growth catalysts such as new product launches and the Exact Sciences acquisition.
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ABT Technical Analysis
Abbott's stock is in a clear downtrend over the past year, with a 1-year price change of -17.97%, significantly underperforming the S&P 500's +16.47% gain. The current price of $103.06 sits at 37.5% of its 52-week range (low $81.97, high $137.49), indicating the stock is closer to its lows than highs, which could suggest a value opportunity but also reflects persistent selling pressure. The price is well below its 52-week high, confirming the bearish trend. Short-term momentum has improved notably, with a 1-month price change of +13.89% and a 3-month change of +13.09%, contrasting sharply with the 1-year decline. This divergence suggests a potential short-term reversal or mean reversion rally, but the 1-month relative strength of +13.11% versus the S&P 500 indicates the stock is outperforming the market in the near term, possibly driven by oversold conditions or positive news. The 52-week low of $81.97 serves as key support, while the 52-week high of $137.49 is a major resistance level. A breakout above $137.49 would signal a trend reversal, while a breakdown below $81.97 could accelerate losses. With a beta of 0.607, Abbott is significantly less volatile than the market, meaning it tends to decline less during market downturns but also rallies less during upswings, which is consistent with its defensive healthcare profile.
Beta
0.61
0.61x market volatility
Max Drawdown
-39.6%
Largest decline past year
52-Week Range
$82-$137
Price range past year
Annual Return
-16.2%
Cumulative gain past year
| Period | ABT Return | S&P 500 |
|---|---|---|
| 1m | +14.7% | +0.2% |
| 3m | +18.2% | +3.7% |
| 6m | -3.3% | +8.0% |
| 1y | -16.2% | +18.2% |
| ytd | -14.9% | +9.6% |
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ABT Fundamental Analysis
Abbott's revenue trajectory shows steady growth, with Q1 2026 revenue of $11.164 billion, up 7.78% year-over-year from $10.358 billion in Q1 2025. However, the growth rate has decelerated from the 10.1% YoY growth seen in Q2 2025 ($11.142 billion) and the 11.4% in Q3 2025 ($11.369 billion), indicating a slight slowdown. Revenue segments show Medical Devices ($5.539 billion) and Diagnostic Products ($6.2 billion) as the largest contributors, while Nutritional Products ($2.017 billion) and Established Pharmaceuticals ($1.426 billion) provide diversification. The growth is driven by medical devices and diagnostics, but the deceleration warrants monitoring. Abbott is profitable, with Q1 2026 net income of $1.077 billion and a gross margin of 56.28%, which is stable compared to 56.44% in Q2 2025 and 55.75% in Q3 2025. Operating margin was 16.50% in Q1 2026, down from 19.64% in Q4 2025, reflecting some margin compression. The net margin of 9.65% in Q1 2026 is lower than the 15.50% in Q4 2025, partly due to higher expenses. Despite this, Abbott's margins are healthy for the medical devices industry, where gross margins typically range from 50-70%. Abbott's balance sheet is solid, with a debt-to-equity ratio of 0.289, indicating low leverage. Free cash flow (FCF) was $916 million in Q1 2026, down from $2.626 billion in Q4 2025, but the TTM FCF of $7.378 billion provides ample coverage for dividends and investments. The current ratio of 1.58 suggests good liquidity, and ROE of 12.51% (trailing twelve months) reflects efficient capital use. The FCF yield (FCF/market cap) is approximately 3.4%, which is reasonable for a defensive stock.
Quarterly Revenue
$11.2B
2026-03
Revenue YoY Growth
+7.8%
YoY Comparison
Gross Margin
56.3%
Latest Quarter
Free Cash Flow
$7.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ABT Overvalued?
Since Abbott has positive net income, we lead with the P/E ratio. The trailing P/E is 33.5x, while the forward P/E is 17.0x, implying the market expects significant earnings growth in the next year. The large gap between trailing and forward P/E suggests that the market is pricing in a sharp earnings recovery, likely due to the recent guidance cut that depressed current earnings. Compared to the industry average (medical devices), Abbott's trailing P/E of 33.5x is at a premium to the sector median of around 25x, representing a 34% premium. This premium may be justified by Abbott's strong competitive position, diversified revenue streams, and consistent dividend growth, but it also leaves little room for error. Historically, Abbott's trailing P/E has ranged from 21x to 46x over the past five years. The current 33.5x is near the middle of this range, suggesting it is not at extreme levels. However, the forward P/E of 17.0x is near the lower end of its historical forward P/E range (typically 15-25x), indicating that the market is pricing in a recovery but not excessive optimism. The P/S ratio of 4.94x is above the industry average of 3.5x, reflecting a premium for its scale and stability.
PE
33.5x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 21x~47x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.5x
Enterprise Value Multiple
