Core Viewpoint - Abbott Laboratories is expected to report its fourth-quarter fiscal 2024 results on January 22, with projected non-GAAP earnings between $1.31 and $1.37 per share, reflecting a 12.6% growth from the previous year [1][2]. Earnings Estimates - The Zacks Consensus Estimate for Abbott's earnings has remained steady at $1.34 per share over the past 90 days [2]. - The consensus mark for revenues is pegged at $11.02 billion, suggesting a 7.6% growth from the year-ago quarter [4]. Segment Performance Diagnostics - The Diagnostics segment is expected to benefit from high testing demand and the adoption of top-tier systems, with a projected revenue increase of 1.4% year over year [4][6]. - However, a decline in COVID-19 testing revenues is anticipated, continuing a trend from previous quarters [5]. Established Pharmaceuticals (EPD) - Abbott's EPD business is likely to show strong performance driven by a broad product portfolio and favorable demographic trends, with a projected revenue increase of 6.9% year over year [7][9]. - The company has identified biosimilars as a strategic growth area, contributing positively to the fourth-quarter results [8]. Medical Devices - The Medical Devices segment is expected to report an 11.8% year-over-year revenue increase, driven by the Diabetes Care division and new product launches [10][13]. - Key products include the Freestyle Libre sensing technology and the recently launched tricuspid repair device, TriClip [11][12]. Nutrition - The Nutrition division is anticipated to see a 5.8% revenue improvement, with strong sales in pediatric nutrition and market share gains in the infant formula business [13][14]. Stock Performance - Abbott's shares have outperformed the broader industry, declining only 0.4% compared to a 4.1% decline in the industry during the fourth quarter [15]. - The stock has also outperformed the Medical sector's 12.2% decline, while the S&P 500 rose 3.7% in the same period [15]. Valuation - Abbott's stock is considered to have a stretched valuation, with a forward 12-month Price/Earnings ratio of 21.95X, higher than the sector's 21.42X [19]. - Compared to peers, MDT trades at 15.33X and BSX at 35.35X [19]. Investment Rationale - Abbott's diversified business model and strong market position contribute to its consistent performance and growth prospects, making it a compelling stock for investment [20]. - The company's financial strength, characterized by strong cash flow and conservative leverage, enhances its ability to invest in growth opportunities [21].

Core Viewpoint - Analysts project Abbott (ABT) will report quarterly earnings of $1.34 per share, a 12.6% increase year over year, with revenues expected to reach $11.02 billion, reflecting a 7.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Projections - Analysts estimate 'Net sales- Medical Devices- Rhythm Management- Total' at $623.50 million, a 7.1% year-over-year increase [4] - 'Net sales- Medical Devices- Diabetes Care' is projected to reach $1.82 billion, indicating a 17.3% increase from the prior-year quarter [4] - 'Net sales- Established Pharmaceuticals' is expected to be $1.31 billion, reflecting a 6.9% increase year over year [5] - 'Net sales- Diagnostics' is estimated at $2.57 billion, a 1.4% increase from the prior-year quarter [5] - 'Net sales- Diagnostics- U.S.' is projected to be $1.03 billion, indicating a 0.9% increase year over year [5] - 'Net sales- Diagnostics- International' is forecasted to reach $1.54 billion, a 1.7% increase from the prior-year quarter [6] - 'Net sales- Nutrition- International' is expected to be $1.21 billion, reflecting a 3.1% year-over-year change [6] - 'Net sales- Nutrition- U.S.' is projected at $942.92 million, indicating a 9.6% increase from the prior-year quarter [6] - 'Net sales- Medical Devices- Neuromodulation- International' is estimated at $50.56 million, a 17.6% increase year over year [7] - 'Net sales- Medical Devices- Rhythm Management- U.S.' is projected to be $303.63 million, reflecting a 6.5% increase [7] - 'Net sales- Medical Devices- Rhythm Management- International' is expected to reach $318.99 million, indicating a 7.4% increase from the prior-year quarter [8] - 'Net sales- Medical Devices- Structural Heart- U.S.' is projected at $279.89 million, reflecting a significant 21.2% increase year over year [8] Stock Performance - Abbott shares have shown a return of -0.7% over the past month, compared to the Zacks S&P 500 composite's -3.3% change, indicating relative outperformance [8]

Core Viewpoint - Abbott Laboratories (ABT) shares are currently trading at a discount compared to the Zacks Medical Products industry, presenting a potential buying opportunity for value investors [1][2]. Valuation and Market Position - Abbott's trailing 12-month price-to-book (P/B) value is 4.91X, significantly lower than the industry average of 7.64X and the benchmark's average of 8.77 [1]. - The stock is attractively valued compared to peers such as Boston Scientific (P/B of 6.47X) and Stryker (P/B of 6.72X) [1]. - The company has a market capitalization of $196 billion, indicating its substantial size within the MedTech sector [4]. Performance Metrics - Over the past six months, Abbott's shares improved by 11.6%, outperforming the broader industry, which saw a mere 9.1% improvement, and the Medical sector, which declined by 9.3% [5]. - The S&P 500 index improved by 7.4% during the same period [5]. - Abbott's trailing 12-month return on equity (ROE) stands at 20.18%, surpassing the industry average of 16.62%, highlighting efficient management and strong returns for shareholders [13]. Strategic Developments - Abbott is gaining a prominent position in global point-of-care testing, focusing on areas such as Infectious Disease and Consumer Diagnostics [8]. - The company is advancing in biosimilars within its Established Pharmaceuticals Division, with plans for commercialization in oncology and women's health set for 2025 [9]. - In Diabetes Care, Abbott's continuous glucose monitoring (CGM) system, FreeStyle Libre, generated over $1.6 billion in sales, growing 21% in the third quarter of 2024 [10]. Recent Agreements and Future Outlook - Abbott has settled all pending lawsuits with Dexcom, allowing the company to focus on advancing its Diabetes Care business without the burden of litigation expenses [11][12]. - The company's diversified business model and strong market position contribute to its consistent performance and growth prospects, making it a compelling buy [15]. - Abbott's financial strength, characterized by strong cash flow and conservative leverage, enhances its ability to invest in growth opportunities [17].

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - The finance experience of Dion spans multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - The approach to investment prioritizes cash flow as a critical factor for both companies and investors [1]

Company Overview - Abbott's stock closed at $113.04, reflecting a -0.69% change from the previous day's closing price, underperforming the S&P 500's gain of 0.55% [1] - The company is set to announce its earnings on January 22, 2025, with an expected EPS of $1.34, representing a 12.61% increase from the same quarter last year [2] - Revenue is forecasted to reach $11.02 billion, indicating a 7.64% increase compared to the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Abbott are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Abbott as 2 (Buy), suggesting a favorable outlook [5] Valuation Metrics - Abbott has a Forward P/E ratio of 22.15, which is higher than the industry average of 18.88, indicating a premium valuation [6] - The company's PEG ratio stands at 2.43, compared to the industry average PEG ratio of 2.19, reflecting its expected earnings growth trajectory [6] Industry Context - Abbott operates within the Medical - Products industry, which has a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [7] - The top 50% rated industries, as per Zacks Rank, tend to outperform the bottom half by a factor of 2 to 1, indicating a strong competitive position for Abbott within its industry [7]

Group 1 - Abbott (ABT) is a notable stock in the Medical sector, currently outperforming the sector with a year-to-date return of approximately 0.3%, while the average Medical stocks have lost 4.8% [4] - Abbott holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.2% over the past 90 days [3] - The Medical sector consists of 1011 companies and Abbott is part of the Medical - Products industry, which includes 82 companies and is currently ranked 87 in the Zacks Industry Rank [2][5] Group 2 - Acurx Pharmaceuticals, Inc. (ACXP) has also outperformed the Medical sector with a year-to-date return of 3.2% and holds a Zacks Rank of 2 (Buy) [4][5] - The consensus EPS estimate for Acurx has increased by 8% over the past three months, indicating positive analyst sentiment [5] - The Medical - Biomedical and Genetics industry, to which Acurx belongs, has seen a decline of 13.1% this year, ranking 66 among 513 stocks [6]

Industry Overview - The MedTech industry has shown resilience and growth in 2024, with the Dow Jones U.S. Select Medical Equipment Index increasing by 10% despite challenges like supply chain disruptions and regulatory hurdles [1] - The global AI in healthcare market was valued at $19.27 billion in 2023, with an expected CAGR of 38.5% from 2024 to 2030, indicating significant growth potential in the sector [2] - The MedTech market was valued at $503.2 billion in 2023 and is projected to grow at a CAGR of 4.4% through 2033, highlighting ongoing expansion opportunities [16] Technological Advancements - The integration of AI and machine learning in diagnostics, medical imaging, and robotic surgery is expected to enhance treatment precision and outcomes, driving growth in the MedTech sector [4] - The global minimally invasive surgery market is projected to grow from $79.3 billion in 2024 to $173.9 billion by 2029, with a CAGR of 17% [15] Company Highlights Abbott Laboratories - Abbott is advancing in biosimilars, targeting oncology and women's health, with launches expected in 2025 [6] - The company's Diabetes Care business is thriving, particularly with its FreeStyle Libre continuous glucose monitoring system [6] - Abbott's earnings growth rate for 2025 is estimated at 10.1%, with a revenue increase of 7.1% year-over-year [7] Boston Scientific - Boston Scientific reported 41% of its 2023 revenues from international markets, achieving 16.8% operational sales growth in Q3 2024 [19] - The company is expanding its leadership in Electrophysiology and has seen a 14.3% operational sales increase in the EMEA region [19] - Boston Scientific's earnings growth rate for 2025 is projected at 12.6%, with a revenue increase of 12.9% year-over-year [9] Align Technology - Align Technology is expanding its Invisalign Palatal Expander System in Asia Pacific and has seen strong adoption of its Vivera retainers [10] - The company's earnings growth rate for 2025 is estimated at 9.4%, with a revenue increase of 5.9% year-over-year [21] Intuitive Surgical - Intuitive Surgical is a leader in robotic-assisted surgery, with its da Vinci Surgical System widely used globally [11] - The company's earnings growth rate for 2025 is pegged at 14.1%, with a revenue increase of 16.9% year-over-year [12] Stryker Corporation - Stryker is focusing on expanding its Mako robotic platform and has pursued an acquisition-driven growth strategy [13] - The company's earnings growth rate for 2025 is estimated at 12.1%, with a revenue increase of 8.4% year-over-year [24]

Analyst's Position - The analyst holds beneficial long positions in shares of BTAFF, CVX, EOG, HSY, KO, PEP, PFE, PG, RBGPF, UNLYF, and XOM through stock ownership, options, or other derivatives [1] Article Context - The article reflects the personal opinions of the analyst and is not influenced by any compensation or business relationships with the mentioned companies [1] - The content is for informational purposes only and should not be considered as investment or tax advice [3] - The analyst is a private investor from Europe and shares their investing journey on Seeking Alpha [3]

Group 1: Intuitive Surgical - Intuitive Surgical is the global leader in robotic surgery with a compound annual growth rate of about 15%, and the market is expected to exceed $25 billion by 2030 [3] - In the recent quarter, da Vinci procedures increased by 18% year over year, and revenue climbed 17% to over $2 billion, with an installed base growth of 15% to more than 9,500 systems [4] - The company has a strong competitive advantage due to surgeon familiarity with the da Vinci platform and the significant investment hospitals make in the robots, which encourages continued use [5] - Despite trading at over 75 times forward earnings estimates, the company's leadership, competitive moat, and recurrent revenue model justify the valuation [6] Group 2: Abbott Laboratories - Abbott Laboratories is a well-diversified healthcare company with four distinct units: medical devices, diagnostics, nutrition, and established pharmaceuticals, allowing for overall growth even if one unit faces challenges [9] - In the recent quarter, Abbott reported a 5% increase in revenue to $10.6 billion, driven by double-digit growth in the medical devices unit despite a decline in diagnostics revenue [7] - Abbott's glucose monitoring systems generated over $1.6 billion in the recent quarter, reflecting a year-over-year increase of about 20% [11] - The company has a strong pipeline of innovations, including the recent launch of Lingo, a continuous glucose monitoring platform for wellness, and shares trade at about 23 times forward earnings estimates, which is considered reasonable given its growth track record [12]

Core Insights - Abbott's diversified business portfolio is positioned for continued momentum into 2025, currently holding a Zacks Rank 2 (Buy) [1] Business Segments - Abbott's Established Pharmaceuticals Division (EPD) is advancing in biosimilars, with plans to commercialize several products in oncology and women's health by 2025, capitalizing on its strong presence in emerging markets [2] - The Diabetes Care segment is benefiting from the success of the FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership in its category [7] - Abbott's Diagnostics business, accounting for 22.6% of total revenues in Q3 2024, is expanding its point-of-care testing capabilities, particularly in respiratory tests [8] Financial Performance - In Q3 2024, Diabetes Care sales exceeded $1.6 billion, reflecting a 21% growth [11] - The cost of products sold increased by 2.1%, while selling, general, and administrative expenses rose by 6.3% year-over-year [9] Market Conditions - Foreign exchange fluctuations are negatively impacting Abbott's performance, with a 2.5% unfavorable year-over-year impact on sales in Q3 2024 due to a strong euro and other currencies [4] - The ongoing geopolitical situation is leading to increased raw material and freight costs, which may affect Abbott's business in the coming months [13] Stock Performance - Over the past three months, Abbott's shares have gained 2.6%, outperforming the industry's 2.2% decline, driven by expansion in high-growth areas and new product launches [12]