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Investigating the Market's Optimism or Pessimism Regarding Abbott Laboratories Shares

Abbott Laboratories surpasses market performance over the past year, prompting analysts to uphold optimistic views on the stock's future.

Over the past year, Abbott Laboratories has surpassed the general market, sparking optimism among...
Over the past year, Abbott Laboratories has surpassed the general market, sparking optimism among Wall Street analysts about the stock's future performance.

Investigating the Market's Optimism or Pessimism Regarding Abbott Laboratories Shares

ABT: A Healthcare Titan Worth a Closer Look

Step into the world of Abbott Laboratories (ABT), a global powerhouse in the healthcare sector, with a whopping market cap of $233.1 billion. This North Chicago, Illinois-based giant strides through the fields of diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. A pioneer in emerging markets and a shrewd player in strategic acquisitions and divestitures, ABT is committed to revolutionizing healthcare solutions worldwide.

The past 52 weeks have been kind to ABT shares. They've soared an impressive 28.4%, surpassing the modest 8.9% gain of the S&P 500 Index (SPX). And you might say that this year's been a walk in the park for ABT, with its share price rising by 18.8% compared to SPX's 3.5% decline.

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On closer inspection, ABT has outperformed the Health Care Select Sector SPDR Fund's 6.2% decrease over the same time period.

Despite falling short of consensus revenue predictions in Q1 2025 (reporting $10.4 billion), ABT shares leaped by 2.8% on Apr. 16, as adjusted earnings per share (EPS) came in at $1.09, outshining the estimate and rising by an impressive 11.2% year-on-year. The market was captivated by robust organic sales growth of 6.9%, primarily driven by the Medical Devices segment, which demonstrated a staggering 12.6% growth propelled by popular products like FreeStyle Libre and structural heart devices. ABT remained confident, reaffirming its full-year 2025 EPS guidance of $5.05 - $5.25.

Analysts predict that ABT’s EPS will grow by 10.5% year-over-year to $5.16 for the fiscal year ending December 2025. ABT's history of beating or meeting consensus estimates in the past four quarters is a strong indicator of its performance consistency.

A whopping 25 analysts who follow the stock have assigned a "Strong Buy" rating, based on 17 "Strong Buys", two "Moderate Buys", and six "Holds".

On Apr. 17, Stifel reaffirmed a "Buy" rating on ABT, with a fresh price target of $135. This adjustment came on the heels of ABT’s resilient Q1 2025 performance, characterized by robust medical device growth and an EPS beat despite macroeconomic and COVID testing obstacles.

At the time of writing, the current ABT share price is under the mean price target of $143.14. The Street’s highest price target of $159 implies a potentially rewarding upside of 18.3% from the current price levels.

At the time of publication, this article was penned by Sohini Mondal, who did not own any positions (either directly or indirectly) in the securities mentioned in this piece. All data in this article is intended solely for informative purposes. For more information, please review our website's Disclosure Policy here.

  1. In the midst of its robust performance, with a 28.4% increase over the past 52 weeks and a projected year-over-year EPS growth of 10.5%, Abbott Laboratories (ABT) proves to be a significant investment opportunity in finance.
  2. Beyond the healthcare sector, ABT's financial performance stands out, as its share price surpassed the S&P 500 Index by 18.8% this year, while the Health Care Select Sector SPDR Fund decreased by 6.2%.

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