Core Insights - Abbott Laboratories is a global healthcare company with a diverse product range, facing recent stock challenges but remaining a strong industry player [1] Stock Performance - The current stock price of Abbott Laboratories (ABT) is $107.42, reflecting a decrease of approximately -1.10% [4] - Over the past year, ABT has reached a high of $141.23 and a low of $105.78, with a market capitalization of approximately $186.96 billion [4] - The trading volume for ABT on the NYSE is 21,703,521 shares [4] Executive Actions - Ford Robert B, Chairman and CEO, purchased 18,800 shares at approximately $107.13 each, increasing his total ownership to 216,203 shares, signaling confidence in the company's future [2][6] Company Ratings and Forecasts - Abbott Laboratories is rated as a 'Buy' despite recent stock price declines, primarily due to weaknesses in its Nutrition segment and a decrease in COVID-19 diagnostics [3][6] - The Medical Devices segment, particularly Continuous Glucose Monitoring (CGM) products, continues to show strong double-digit growth, counterbalancing challenges in the Nutrition sector [3] - The company forecasts a 7% increase in sales and a 10% growth in earnings per share (EPS) for 2025, supported by ongoing innovation and a return to normalcy in the Nutrition segment [5][6]

Core Viewpoint - Abbott Laboratories experienced a significant drop in share price following its Q4 2025 earnings report, which revealed lower-than-expected revenue, leading to concerns among investors about the company's performance and future growth prospects [1]. Group 1: Financial Performance - Abbott reported Q4 revenue of $11.5 billion, missing Wall Street's expectation of $11.8 billion, primarily due to challenges in its nutrition segment [3]. - Despite the revenue miss, Abbott's adjusted diluted earnings per share (EPS) increased by 12% year over year, aligning with analysts' estimates [3]. - The company anticipates overall revenue growth to accelerate in 2026, projecting organic sales growth of 6.5% to 7.5% and adjusted diluted EPS of $5.55 to $5.80, indicating a 10% year-over-year growth at the midpoint [4]. Group 2: Market Position and Future Outlook - Abbott is recognized as a Dividend King, having increased its dividend for 54 consecutive years, making it an attractive option for income investors [2]. - The company is expected to implement changes in its nutrition business to drive a return to growth in the second half of 2026 [3]. - Abbott's diversified business model and comprehensive product portfolio position it favorably within the medtech and diagnostics markets, as stated by CEO Robert Ford [6].

Group 1 - Citigroup has lowered Abbott's target price from $155 to $140 while maintaining a "Buy" rating [1]

Core Viewpoint - Abbott's financial performance for 2025 shows overall revenue and earnings growth, with significant contributions from the medical devices segment, while nutrition and diagnostics face challenges [1][3][22]. Overall Financial Performance - In Q4 2025, Abbott reported total sales of approximately $11.46 billion, with a net profit of $1.78 billion, leading to a diluted EPS of $1.01 and an adjusted EPS of $1.50, slightly above market expectations [4][5]. - For the full year 2025, total sales reached about $44.33 billion, with a diluted EPS of $3.72 and an adjusted EPS of $5.15, achieving double-digit growth [4][21]. Business Segment Breakdown Medical Devices - The medical devices segment continues to be the standout performer, with Q4 sales of $5.68 billion, reflecting a 12.3% year-over-year growth [8][9]. - Growth in this segment is driven by products related to cardiac rhythm management, electrophysiology, and chronic disease management solutions [7][8]. Nutrition - The nutrition segment is currently under pressure, with Q4 sales of $1.94 billion, down 8.9% year-over-year [10][12]. - The decline is attributed to ongoing adjustments in pricing strategies and product mix, which are expected to persist [10][22]. Diagnostics - The diagnostics segment reported Q4 sales of $2.46 billion, a decrease of 2.5% compared to the previous year, primarily due to declining demand for COVID-19 testing [13][15]. - The segment's performance reflects a broader trend of reduced testing needs impacting overall revenue [13][22]. Established Pharmaceuticals - The established pharmaceuticals segment generated Q4 sales of $1.38 billion, maintaining stable growth, particularly in international markets, with a 9.0% increase year-over-year [16][18]. Key Operational Developments - Abbott has received regulatory approval for its first pulse field ablation system for atrial fibrillation patients and has made progress with several cardiovascular and electrophysiology products in Europe [20]. - The company plans to acquire Exact Sciences for approximately $21 billion to expand its oncology screening and diagnostic capabilities [20][21]. 2026 Financial Outlook - For 2026, Abbott's management anticipates accelerated growth driven by new product launches and ongoing business structure optimization [21][22].

Performance Summary - AeroVironment, Inc. (NASDAQ:AVAV) decreased by 19.45% due to a stop work order from the US government on the SCAR program [1] - DraftKings Inc. (NASDAQ:DKNG) fell by 14.4% after a judge allowed Massachusetts to block Kalshi from offering sports-related contracts [2] - Constellation Energy Corporation (NASDAQ:CEG) decreased by 10.38% with Wells Fargo analyst lowering the price forecast from $478 to $460 while maintaining an Overweight rating [3] - Applovin Corporation (NASDAQ:APP) fell by 14.68% following concerns raised in a CapitalWatch report [3] - Abbott Laboratories (NYSE:ABT) slumped by 12.23% after reporting worse-than-expected fourth-quarter sales and issuing first-quarter adjusted EPS guidance below estimates [4] - Flutter Entertainment plc (NYSE:FLUT) fell by 13.07% with multiple analysts lowering their price forecast [4] - Shopify Inc. (NASDAQ:SHOP) decreased by 13.51% [4] - Talen Energy Corporation (NASDAQ:TLN) slumped by 6.05% while Wells Fargo analyst raised the price forecast from $445 to $506, maintaining an Overweight rating [5]

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Core Viewpoint - Abbott Laboratories' stock price pullback in January 2026 is seen as an overreaction driven by market sentiment rather than fundamental weaknesses, making the stock attractive for buying [2][4]. Financial Performance - Abbott reported Q4 revenue of $11.46 billion, reflecting a 4.5% increase year-over-year, with adjusted earnings per share (EPS) growing by 12%, slightly above consensus expectations [5]. - Despite some metrics falling short of market expectations, the company demonstrated solid sales growth and improved margins, indicating a strong operational performance [5][7]. Segment Analysis - The company's diversified healthcare portfolio showed strength, with Established Pharmaceuticals growing by 9% and Med Tech by 12.3%, while the Nutrition and Diagnostic segments faced declines, particularly a nearly 9% drop in Nutrition [6]. - The growth in the pharma segment was driven by generics and emerging markets, showcasing the resilience of Abbott's product offerings [6]. Margin and Earnings Outlook - Although margins fell short of analyst forecasts, they were supported by a favorable product mix, strength in Med Tech, and operational improvements, with expectations for continued earnings growth of 10% in 2026 [7]. - The company anticipates that earnings growth will outpace revenue growth, which is crucial for sustaining capital returns [7]. Capital Returns and Dividend Policy - Abbott is recognized as a Dividend King, having increased its dividend payout for over 50 years, with a current yield of approximately 2.5% [8]. - The company maintains a payout ratio of less than 50% of consensus earnings forecasts, allowing for share buybacks and reinforcing its capital return strategy [8].

Core Viewpoint - Abbott Laboratories (ABT), known as a Dividend King, experienced a decline in stock price following a mixed Q4 earnings report, indicating resilience but also facing headwinds in certain segments [1] Financial Performance - The Q4 earnings report was mixed, suggesting that while the company shows resilience, there are negative impacts from challenges in some segments [1] Market Reaction - The stock price drop reflects investor sentiment in response to the earnings report, highlighting the market's reaction to the company's performance [1]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors seeking undervalued opportunities [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing metrics like weekly price changes and monthly earnings estimate changes to identify optimal entry points [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that highlights stocks with strong value, growth potential, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock to Watch: Abbott (ABT) - Abbott, rated 2 (Buy) on the Zacks Rank, has a VGM Score of B and a Value Style Score of B, with a forward P/E ratio of 19.16, indicating attractive valuation [11] - Recent upward revision of earnings estimates for fiscal 2026 has increased the Zacks Consensus Estimate to $5.67 per share, with an average earnings surprise of +0.7% [12]