Is it the Right Time to Retain Abbott Stock in Your Portfolio?

Core Insights - Abbott has shown strong growth and market share gains in its Nutrition business, with a focus on adult nutrition products and a strategic emphasis on biosimilars in its Established Pharmaceuticals division [1][3][10] - The Diabetes Care segment is benefiting from the success of the FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership and is expanding with new FDA-approved products [5][6] - Macroeconomic challenges and currency fluctuations pose potential risks to Abbott's financial performance [1][12][13] Nutrition Business Performance - Abbott's Nutrition business reported 3.4% organic growth in Q2 2025, driven by a 6.6% increase in Adult Nutrition sales [4][9] - The strong demand for Ensure and Glucerna brands supports the growth in Adult Nutrition, while Pediatric Nutrition remains robust in the U.S. with the Similac brand leading the market [4][9] Diabetes Care Segment - Sales of the FreeStyle Libre CGM system exceeded $1.9 billion in Q2 2025, reflecting a 19.6% organic growth, with U.S. sales rising nearly 26% [6][9] - The introduction of new over-the-counter CGM systems marks a significant expansion opportunity for Abbott in the U.S. market [5] Established Pharmaceuticals Division - Abbott's EPD achieved 7.7% organic growth in Q2 2025, with a focus on branded generics in emerging markets [11] - The division is well-positioned for sustainable growth, with a five-year CAGR of 8% and plans for biosimilar launches starting in 2026 [10][11] Financial Performance and Market Position - Abbott's market capitalization stands at $231.06 billion, with an earnings yield of 3.9%, significantly higher than the industry average of 0.2% [2] - The company has outperformed the industry, with a 17.5% stock price increase over the past year compared to a 0.3% decline in the industry [2]