Is Abbott Laboratories Stock a Buy?

Core Viewpoint - Abbott Laboratories, a leading player in the healthcare sector, is facing challenges but still presents a compelling investment opportunity for long-term investors due to its diversified business model and growth potential in key segments [1][7]. Group 1: Company Overview - Abbott Laboratories is a major medical device manufacturer with a diverse portfolio that includes nutrition, established pharmaceuticals, and diagnostics, reducing reliance on any single business unit [2]. - The company has shown resilience during disruptions, such as the pandemic, by leveraging its diagnostic business when demand for medical devices declined [2][3]. Group 2: Financial Performance and Growth Opportunities - Abbott's financial results have remained consistent, supported by its innovative capabilities and expertise in the industry [3]. - The diabetes care segment, particularly the FreeStyle Libre continuous glucose monitoring (CGM) franchise, is a significant growth driver, with only 1% of the estimated half-billion adults with diabetes currently having access to CGM technology [4]. - The recent launch of over-the-counter CGM options, Libre Rio and Lingo, further expands Abbott's market reach [3][4]. Group 3: Dividend and Investment Appeal - Abbott Laboratories has a strong track record of dividend payments, with 52 consecutive payout increases and a current yield of 1.8%, making it an attractive option for income-focused investors [4]. Group 4: Risks and Competition - The company faces legal and regulatory challenges, including lawsuits related to its baby formula and recalls of FreeStyle Libre sensors, but these issues have not yet caused significant long-term harm [5][6]. - Abbott competes with DexCom in the CGM market, but its unit has continued to thrive despite this competition [6].