ABT Stock Analysis — Abbott Laboratories
Sector: Healthcare
AI Verdict
Abbott trades at 18.1x next year's earnings while analysts expect nearly 100% EPS growth, so it's cheap for the growth you're getting if its diversified healthcare moat delivers, but the overbought RSI means the entry point is risky if results slip.
Competitive Moat
Abbott's moat comes from its diversified portfolio of medical devices, diagnostics, and branded generic pharmaceuticals, which creates cross-segment resilience and entrenched hospital relationships. Its proprietary diagnostic platforms and global distribution scale make it hard for competitors to displace its core products.
Summary
A 97.8% jump in forward EPS growth expectations has slashed Abbott's forward P/E to 18.1x, drawing attention despite a high trailing multiple.
Where It Stands
Abbott is down -13.93% over the past year, trades at 18.1x forward earnings (below the healthcare median of 22x), but its RSI of 74.7 signals the stock is overbought and at pullback risk.
Key Metrics
- RSI: 74.7 — Overbought
- Trailing P/E: 35.8x
- Forward P/E: 18.1x
- PEG Ratio: 0.37
- Earnings Growth: +1.0%
- Revenue Growth: +0.1%
- Market Cap: $192.5B
- Dividend Yield: 0.02%
- 1-Year Return: -13.93%
- 52-Week High: $137.49
- 52-Week Low: $81.97
Analyst Consensus
24 Buy · 9 Hold · 0 Sell (33 analysts)
Bull Case
Forward EPS is expected to nearly double (+97.8%), making the 18.1x forward P/E look cheap for the growth on offer if Abbott delivers.
Bear Case
With an RSI of 74.7 and a trailing P/E of 35.8x (well above the sector's 22x), any disappointment could trigger a sharp correction as the stock is priced for a big rebound.
Catalyst to Watch
Quarterly earnings beats or misses will directly test the credibility of the 97.8% forward EPS growth forecast.