Abbott (ABT) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Abbott (ABT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Abbott's Earnings Outlook - For the fiscal year ending December 2025, Abbott is expected to earn $5.16 per share, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade reflects an improvement in Abbott's underlying business, which is likely to drive the stock price higher as investor sentiment improves [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [7].