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With a market cap of $218.8 billion, Abbott Laboratories (ABT) is a global healthcare leader with a diversified portfolio spanning medical devices, diagnostics, nutrition, and branded generic pharmaceuticals. The North Chicago, Illinois-based company is best known for innovations like its FreeStyle Libre glucose monitoring system. Abbott plays a major role in chronic disease management, lab testing technologies, and specialized nutrition with brands such as Ensure, Pedialyte, and Similac. Over the past year, ABT shares have soared 5.8%, trailing the broader S&P 500 Index ($SPX), which has gained 17.5%. Moreover, ABT stock has risen 10.1% on a YTD basis, compared to SPX's 15.6% rise. Looking closer, Abbott has outpaced the Health Care Select Sector SPDR Fund's (XLV) 1.5% decrease over the past 52 weeks and 5.9% rise in 2025. On Oct. 15, shares of Abbott Laboratories dropped 2.9% after the company reported FY2025 Q3 results. While Revenue came in at $11.37 billion, up 6.9% year over year, it missed the Wall Street expectations. On the bright side, adjusted EPS rose 7.4% to $1.30, matching market expectations. Abbott reaffirmed its full-year 2025 outlook, maintaining organic sales growth guidance of 7.5%–8.0% (excluding COVID-related testing) and 6.0%–7.0% (including it). The company also kept the midpoint of its adjusted EPS outlook and narrowed the range to $5.12–$5.18, representing double-digit growth at the midpoint. For the fiscal year ending in December 2025, analysts expect ABT’s EPS to grow 10.3% year-over-year to $5.15. The company's earnings surprise history is promising. It topped or met the consensus estimates in the last four quarters. Among the 29 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.” The current configuration is more bullish than a month ago, when 19 analysts advised a “Strong Buy” for the stock. On Oct. 17, Citi analyst Joanne Wuensch reaffirmed her “Buy” rating on Abbott Laboratories. On the same day, the stock also received a “Buy” rating from Benchmark Co. analyst Bruce Jackson. The mean price target of $146.29 implies a premium of 17.5% from the current price levels. The Street-high price target of $162 indicates a potential upside of 30.1%.
