Abbott Laboratories Achieves Strong Performance Amid Market Dynamics

North Chicago, Illinois-based Abbott Laboratories (ABT) discovers, develops, and manufactures a diverse range of healthcare products. With a market cap of $239.4 billion, Abbott’s extensive portfolio encompasses life-changing technologies spanning diagnostics, medical devices, nutrition, and branded generic medicines.

Classified as a “mega-cap stock,” Abbott Laboratories stands out with its market cap surpassing the $200 billion threshold, which underscores its substantial size and influence within the healthcare sector. The company employs nearly 114,000 individuals in over 160 countries worldwide.

Recent Stock Performance

In its latest trading session on February 28, ABT reached a three-year high of $138.37 before experiencing a slight pullback. The stock has surged more than 16% in the last three months, significantly outperforming the Dow Jones Industrial Average’s ($DOWI) 2% decline during the same period.

Examining Abbott’s long-term performance reveals even more impressive results. Over the past 52 weeks, ABT has climbed nearly 15%, and it has risen 22.2% over the last six months, surpassing the Dow’s 12.6% increase in the past year and 6.7% rise in the past six months.

To reinforce this bullish trend, Abbott has consistently remained above its 200-day moving average since early August 2024 and above its 50-day moving average since mid-January.

Impressive Q4 Results

Following the release of its solid Q4 results on February 22, Abbott Laboratories’ stock prices increased by 85 basis points. The company reported a robust year-over-year organic sales growth both in the U.S. and internationally, contributing to an overall topline increase of 7.2% to approximately $11 billion. Furthermore, Abbott experienced a notable improvement in profitability, with its non-GAAP earnings rising 12.2% year-over-year to $2.4 billion. Adjusted EPS also grew 12.6% year-over-year, reaching $1.34 and meeting analysts’ expectations.

Looking ahead, Abbott anticipates its full-year 2025 adjusted operating margin to range between 23.5% and 24%, suggesting an expansion of 150 basis points at the midpoint compared to 2024. Additionally, organic sales are expected to grow between 7.5% and 8.5%, further enhancing investor confidence.

Comparative Analysis and Future Ratings

Despite its strong performance, Abbott has underperformed relative to its peer, Boston Scientific Corporation (BSX), which saw a robust 54.9% increase over the past year and a 30.5% return in the last six months.

According to 25 analysts monitoring ABT, the consensus rating is a “Strong Buy.” Currently, the stock is trading slightly above its mean price target of $136.09.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is strictly for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.