Abbott Laboratories (ABT) just secured U.S. FDA approval for its TactiFlex Duo ablation catheter for challenging atrial fibrillation cases, putting the medical devices segment in sharper focus for anyone tracking the stock.
Recent product launches in electrophysiology, diagnostics and nutrition have arrived against a mixed trading backdrop for Abbott Laboratories. The share price has retreated over the past week and month, including a 1-day share price return of down 2.59%, even after a 90-day share price return of up 18.34%. Over a longer window, the year-to-date share price return is down 15.03%, and the 1-year total shareholder return is down 18.18%. This points to fading momentum despite a 3-year total shareholder return of 9.69% and ongoing product news such as the TactiFlex Duo approval and the rollout of new Similac 360 Total Care formats.
Scan beyond Abbott Laboratories and see how other health-focused device makers with solid fundamentals are lining up in our hand picked list of solid balance sheet and fundamentals (24 results) for potential ideas to research next.
Against that mix of fresh approvals and a share price that has slipped this year, the real test now is whether Abbott Laboratories still offers enough potential upside to justify the risk.
Most Popular Narrative: 11.4% Undervalued
Against Abbott Laboratories' last close of $105.52, the most followed narrative anchors on a fair value of $119.13, implying meaningful upside in that framework.
The analysts have a consensus price target of $119.12 for Abbott Laboratories based on their expectations of its future earnings growth, profit margins and other risk factors.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.
Read the complete narrative. Read the complete narrative.
Want to see what sits behind that fair value gap for Abbott Laboratories? The story focuses on factors such as top line expansion, changes in profitability and a valuation multiple that reflects the market’s view on execution across several product launches. Curious how those moving parts combine into one target number? The full narrative provides the details.
Result: Fair Value of $119.13 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
Still, Abbott Laboratories faces real pressure points, including pricing and reimbursement risks in diagnostics and diabetes care that could challenge the upbeat analyst narrative.
Find out about the key risks to this Abbott Laboratories narrative.
Another Take On Abbott Laboratories' Valuation
On simple price multiples, Abbott Laboratories looks less generous. The shares trade on a P/E of 33.8x, which is richer than both the US Medical Equipment group at 26.3x and the peer average of 27x, even though the fair ratio points to a higher 37.2x. Is that gap a cushion or a warning signal for you as an investor?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals around Abbott Laboratories can feel unclear, so move quickly, review the numbers yourself and weigh the 3 key rewards and 2 important warning signs.
Looking for more investment ideas beyond Abbott Laboratories?
If you stop with Abbott Laboratories, you risk missing other opportunities. Use the Simply Wall Street screener to surface fresh candidates that fit your style.
- Target resilient balance sheets and steady fundamentals by reviewing the list of solid balance sheet and fundamentals (24 results).
- Hunt for quality at a potential discount by scanning the 49 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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