Abbott Laboratories Stock Review (ABT): What You Need To Know

By Amit Chowdhry ● September 18, 2020
  • Looking for an Abbott Laboratories stock review (NYSE: ABT)? Here is some information to help you decide whether to add it to your portfolio.

Abbott Laboratories (NYSE: ABT) has been a strong performing stock over the last few years as it is up over 140% since about five years ago. And over the last 6 months, the company’s stock price is up 34.2%. This week, the company’s board of directors also announced a quarterly common dividend of 36 cents per share, which is the 387th consecutive quarterly dividend paid by the company since 1924 — which is happening at a time when many other companies have been slashing their dividends and share repurchase programs.

BinaxNOW COVID-19 Rapid Test

On August 26, the U.S. Food and Drug Administration (FDA) Abbott’s BinaxNOW COVID-19 rapid test an emergency use authorization (EUA). This test is able to product results in only 15 minutes and it costs only $5 each.

At the Republican National Convention on August 28, President Trump had announced a $750 million deal with Abbott Laboratories for rapid COVID-19 tests. As part of the agreement, the Trump administration said it would buy 150 million of the tests.

Quarterly Earnings

In July, Abbott reported its second-quarter 2020 results. The worldwide sales for the company was $7.3 billion, down 8.2% on a reported basis and 5.4% on an organic basis. One of the hardest hit segments for the company was Medical Devices as the sales decreased 21.2% on a reported basis and 19% on an organic basis. The sales growth was negatively impacted due to reduced cardiovascular and neuromodulation procedure volumes caused by COVID-19. However, procedure volume trends improved significantly over the course of the second quarter as the demand for procedures and availability of healthcare resources began to return to more normalized levels. 

Abbott Laboratories (ABT) Review:

On August 31, Credit Suisse increased Abbott’s price target from $109 to $136. And about a week ago, Wolfe Research initiated an outperform and announced a price target of $124.

And while reviewing Abbott’s stock, I checked out an analyst consensus report. In the consensus: 8 analysts are saying strong buy; 8 say buy; 4 say neutral; 1 says sell; and 0 says strong sell.

I also checked out Abbott’s stock performance over certain periods of time:

1-Day: +0.91%

5-Day: +2.6%

1-Month: +5.9%

6-Month: +34.2%

YTD: +22.8%

1-Year: +27.6%

2-Year: +57.6%

5-Year: +141.1%

50-Year: +66,638%  

Based on all of the information above, I like what I am seeing when it comes to ABT in the long-term. What I plan to do in my portfolio is to buy more ABT stock and hold it for an extended period of time. Specifically, I plan to keep increasing my position at a wide variety of price points in order to keep improving on the dollar-cost averaging.

Disclosure: I own a few ABT shares. I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.