Abbott Laboratories: Prepare For A Tough 2023

Nov. 21, 2022 1:01 AM ETAbbott Laboratories (ABT)VHT22 Comments
Michael Fitzsimmons profile picture
Michael Fitzsimmons
19.67K Followers

Summary

  • The stock of Abbott Labs is down 18%+ over the past 12 months and has significantly underperformed the broad healthcare sector.
  • This is likely not what investors expected - typically a healthcare stock like Abbott would outperform during an inflationary bear market.
  • While Covid-19 test sales were a boon for the company last year, its medical devices segment and non-Covid-19 related diagnostics suffered as a result of the pandemic.
  • Bottom line: Abbott appears poised for lower revenue & earnings next year while the current 1.81% yield is less than compelling given the two-year Treasury yield is currently 4.5%.

Abbott Laboratories headquarters in Silicon Valley

Sundry Photography

The stock of Abbott Labs (NYSE:ABT) had a long and very impressive run - that is, until it got mauled by the 2022 bear market (see graphic below). The stock peaked at the beginning of the year and YTD it is

Chart
Data by YCharts

Chart
Data by YCharts

ABT Revenue & EPS Estimates

Yahoo Finance

This article was written by

Michael Fitzsimmons profile picture
19.67K Followers
Technology stocks, ETFs, portfolio strategy, renewable energy, and O&G companies. Primary goal is growing net-worth. I typically allocate a portion of my own portfolio and devote some of my SA articles to small and medium sized companies offering compelling risk/reward propositions. I am an Electronics Engineer, not a qualified investment advisor. While the information and data presented in my articles are obtained from company documents and/or sources believed to be reliable, they have not been independently verified. Therefore, I cannot guarantee its accuracy. I advise investors conduct their own research and due-diligence and to consult a qualified investment advisor. I explicitly disclaim any liability that may arise from investment decisions you make based on my articles. Thanks for reading and I wish you much investment success!

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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