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]

Core Viewpoint - Abbott Laboratories (ABT) is strategically positioned to leverage its diversified business model and strong market presence, particularly in biosimilars and diabetes care, despite facing industry-wide challenges such as margin pressure and declining COVID-19 testing demand. Group 1: Financial Performance and Valuation - Abbott's stock has risen 9.6% over the past six months, outperforming the industry's 8.5% growth and the broader Medical sector's 9.8% decline [4] - The company is trading at a forward 12-month price-to-sales (P/S) multiple of 4.4X, which is a 22% discount to the Zacks Medical Products industry average of 5.6X, indicating the stock is undervalued [11] - Abbott's trailing 12-month return on equity (ROE) of 20.18% significantly outpaces the industry average of 16.61%, highlighting its operational efficiency [25] Group 2: Business Segments and Growth Initiatives - Within the Established Pharmaceuticals Division (EPD), Abbott is advancing in biosimilars, with plans to commercialize several products in oncology and women's health by 2025 [2] - The company is gaining momentum in Diabetes Care through consistent upgrades of its FreeStyle Libre continuous glucose monitoring system [7] - Abbott's diversified business portfolio, including a strong Adult Nutrition segment, is helping regain market share despite softness in the pediatric arm [21] Group 3: Challenges and Market Conditions - Abbott faces industry-wide challenges such as margin pressure due to inflation, labor shortages, and supply chain disruptions, which are increasing operational costs [3] - The company has experienced a decline in COVID-19 testing demand, with organic sales in Rapid Diagnostics decreasing by 3% in the last reported quarter [22] - A challenging macroeconomic environment is leading to higher-than-anticipated increases in raw material and freight expenses, impacting overall business performance [15] Group 4: Strategic Partnerships and Innovations - Abbott has formed partnerships with five major companies offering automated insulin dosing pumps, enhancing the connectivity of its Libre technology [5] - The company announced a partnership with the Big Ten conference to boost U.S. blood supply through a blood donation competition [14] - Abbott is progressing with its Alinity family of diagnostics, which is expected to significantly contribute to its Diagnostics business in the second half of 2024 [14]

Company Overview - Abbott's stock closed at $114.31, reflecting a slight increase of +0.07% from the previous day, underperforming the S&P 500's gain of 0.73% [1] - Over the past month, Abbott's shares have decreased by 3%, which is better than the Medical sector's decline of 3.8% but worse than the S&P 500's increase of 0.34% [8] Financial Performance - Abbott is expected to report earnings of $1.34 per share, indicating a year-over-year growth of 12.61%. The consensus revenue estimate is $11.02 billion, representing a 7.64% increase from the same quarter last year [3] - For the entire fiscal year, consensus estimates project earnings of $4.67 per share and revenue of $42 billion, reflecting increases of +5.18% and +4.71% respectively from the prior year [9] Valuation Metrics - Abbott's Forward P/E ratio stands at 24.45, which is lower than the industry average of 25.12, suggesting that Abbott is trading at a discount compared to its peers [5] - The company has a PEG ratio of 2.69, compared to the industry average PEG ratio of 2.29, indicating a higher expected earnings growth rate relative to its price [11] Industry Context - Abbott operates within the Medical - Products industry, which ranks 124th in the Zacks Industry Rank, placing it in the top 50% of over 250 industries [6] - The Zacks Rank system indicates that Abbott currently holds a rank of 2 (Buy), with a historical average annual return of +25% for 1 ranked stocks since 1988 [10]

Core Insights - The Future Investor with Albert Anthony is a new author concept on the Seeking Alpha platform, focusing on diversified portfolio growth and performance drivers across multiple sectors [1] - Albert Anthony, a contributing analyst, has covered over 200 stocks since 2023 and has gained over 1.07K followers [1] - A new book titled "The Future Investor: Growing a Diversified Portfolio (2025 edition)" is in development [1] Author Background - Albert Anthony is a first-generation Croatian-American from the New York City/New Jersey area, with experience as an information systems analyst at Charles Schwab [1] - He holds a B.A. in political science from Drew University and has completed certification programs from various institutions, focusing on capital markets and securities [1] - His interests include managing a small equities portfolio called the Future Investor Fund and participating in business and innovation conferences [1] Media Presence - The Future Investor channel was launched on YouTube in late 2024 to complement the articles and provide market commentary [1] - Albert Anthony is an active member of the Croatian Association of Economists since 2024 [1]

Company Insights - Nvidia has seen a significant increase in stock value, rising over 160% this year, with strong demand for its Blackwell architecture expected to add billions in revenue and a gross margin exceeding 70% [2][7] - Pfizer is shifting focus to new products after a decline in demand for its coronavirus products, planning to launch 19 new products in 18 months and aiming to double the number of patients using its oncology drugs by 2030 [3][8] - Viking Therapeutics is entering phase 3 trials for VK2735 in the obesity treatment market, which is experiencing strong demand, indicating potential for growth despite not yet commercializing a product [4][9] - Amazon is leveraging AI to enhance its e-commerce operations and has reported a $110 billion annualized revenue run rate for AWS, indicating strong growth potential in both e-commerce and cloud computing [10][16][17] - Etsy operates a capital-light business model, allowing it to convert 90% of its adjusted EBITDA into free cash flow, and trades at a low valuation of 13x forward earnings estimates [11][12] - Vertex Pharmaceuticals is a leader in cystic fibrosis treatments and is awaiting regulatory decisions on a new pain treatment, which could represent a multibillion-dollar opportunity [18][19] - Abbott Laboratories has a diverse business structure that mitigates risks across its medical devices, diagnostics, nutrition, and pharmaceuticals segments, maintaining steady revenue growth [24][25] - American Express has reported record revenue of $16.6 billion, with a significant portion of new accounts coming from millennial and Gen-Z customers, indicating strong growth potential in the premium market [21][27] - Palantir Technologies has experienced substantial growth in both commercial and government revenue, with a 54% increase in U.S. commercial revenue, suggesting strong future prospects driven by its AI platform [22][28] Industry Trends - The AI chip market is experiencing rapid growth, with companies like Nvidia at the forefront, indicating a strong demand for AI technologies across various sectors [2][7] - The oncology market is becoming increasingly competitive, with Pfizer and other companies aiming to launch multiple blockbuster drugs, reflecting a trend towards innovation in cancer treatment [3][8] - The obesity treatment market is gaining traction, with several companies, including Viking Therapeutics, poised to capitalize on the growing demand for effective treatments [4][9] - E-commerce and cloud computing are evolving with AI integration, as seen with Amazon's advancements, highlighting the importance of technology in driving operational efficiency and revenue growth [10][16][17] - The healthcare sector is diversifying, with companies like Abbott and Vertex exploring new therapeutic areas, indicating a trend towards broadening product portfolios to capture more market opportunities [18][19][24][25]