Abbott Labs Makes Many Medical Devices & Systems
Today I'm reviewing a large-cap US medical device firm. Its name is Abbott Laboratories. Its trading ticker symbol is ABT.
Abbott Laboratories is a health care company that manufactures medical devices, blood glucose monitoring kits, nutritional healthcare products, diagnostic products and equipment, and branded generic drugs.
Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company's Established Pharmaceutical Products segment offers branded generic pharmaceuticals.
Its Diagnostic Products segment offers core laboratory systems. The company's Nutritional Products segment provides pediatric and adult nutritional products. Its Cardiovascular and Neuromodulation Products segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices.
The company also provides blood and flash glucose monitoring systems, including test strips, sensors, data management decision software, and accessories for people with diabetes.
The company was founded in 1888 and is headquartered in Abbott Park, Illinois.
I use three key data points to gauge the value of any dividend equity or fund like Abbott Laboratories (ABT):
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will finally unlock an equity or fund in which to invest.
No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money.
ABT Price
Abbott's price was $61.28 per share at yesterday's market close.A year ago its price was $48.73 for a gain of $12.55 per share in the past year.
Assuming Abbott's price will continue to trade in the range of $45.00 to $75.00 next year, its price could grow another $12.55 from $61.28 to $73.83 by June 29, 2019.
ABT Dividends
Abbott's most recently declared quarterly dividend was $0.28 per share payable August 15.That $0.28 quarterly dividend equates to an annual payout of $1.12or a 1.85% yield at yesterday's $61.28 closing stock price.
Gains For ABT?
Abbott's $12.55 estimated year over year price gain plus an anticipated dividend of$1.12 makes a projected gross annual gain of $13.67 per share, which will be reduced by the costs to trade those shares.
A little over $1,000.00 invested today at the $61.28 price buys 16 shares.
A $10 broker fee paid half at purchase and half at sale subtracts $0.63 per share.
Taking that $0.63 brokerage cost out of the estimated $13.67 gross gain per share leaves a net gain of $13.04 X 16 shares = $208.64 or a 21% potential net gain on a $980.48 investment.
Therefore, Abbott Laboratories (whose ticker symbol is ABT), now shows a possible 21% net gain including a 1.85% dividend yield.
Twenty-one analysts cover this stock:
Eleven say "buy" ABT.
Five say ABT will "outperform."
Five say "hold" ABT shares.
Their twenty-one analyst salute and consensus recommendation is 1.7 or "outperform" and their price target is$68 or $5,83 under my $73.83 year over year target.
Y Charts rates ABT "neutral" for an overall "Y" rating. Y Charts also shows "average" for a Value score of 5 out of ten points. And YCharts ranks FMS "strong" with 7 out of 10possible Fundamental points. Y Charts Historic Valuation score for ABT is 17% overvalued at a $52.38 historic valuation.
You could look at all those numbers like this: Abbott Laboratories (ABT) has made money, is making money, and could net a 15% to 21% net gain next year including a 1.85% annual dividend yield. It could be more, it could be less.
The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Abbott Laboratories (ABT) is worth your time and money.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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