Is There More Upside For ABT Stock After A 10% Jump In A Week?

Core Viewpoint - Abbott Laboratories reported mixed Q4 results with revenues slightly below expectations but earnings meeting consensus estimates, indicating strong performance in the medical devices segment while diagnostics sales declined marginally [1][3][5]. Financial Performance - Q4 revenue was $10.97 billion, reflecting a year-over-year increase of 7.2$1.34, showing a 12.6% growth year-over-year [5]. - Medical devices segment sales increased by 13.7%, with diabetes sales specifically rising by 20.1% due to the popularity of FreeStyle Libre [3][4]. Segment Analysis - The nutrition segment saw a 4.5% increase in sales, while established pharmaceuticals grew by 3.8% [3]. - Diagnostics sales experienced a slight decline of 0.6% [3]. Future Outlook - For 2025, Abbott expects organic revenue growth between 7.5% and 8.5% and a 150 basis points improvement in operating margin [5]. - The earnings outlook for 2025 is projected between $5.05 and$5.25 per share, indicating potential double-digit growth at the midpoint [5]. Stock Performance - Despite a mixed Q4 and a Q1 outlook below expectations, Abbott's stock has risen over 10% in a week and 15% since the beginning of 2024 [2][6]. - The stock is currently trading at approximately $123, which is under 24 times the expected forward earnings of$5.15 per share, slightly below its average P/E ratio of 25 over the past three years [8].