Abbott Laboratories Stock: Is ABT Underperforming the Healthcare Sector?

Valued at a market cap of $194.6 billion, Abbott Laboratories (ABT) is a global healthcare company that discovers, develops, manufactures, and sells a wide range of healthcare products across various segments. With operations in pharmaceuticals, diagnostics, nutrition, and medical devices, it serves diverse markets worldwide, including emerging and developed regions.

Companies worth over $10 billion are generally described as “large-cap” stocks, and Abbott Laboratories fits this criterion perfectly. Abbott is renowned for its innovative medical devices, particularly the FreeStyle Libre continuous glucose monitoring system, which revolutionized diabetes care.

Shares of the North Chicago, Illinois-based company have declined 19.7% from its 52-week high of $137.49. The stock has gained 29.2% over the past three months, outpacing the State Street Health Care Select Sector SPDR ETF’s (XLV) 14.1% return over the same time frame. 

ABT stock is down 11.8% on a YTD basis, underperforming XLV’s 10.2% gain. Moreover, shares of the medical devices and health care company have decreased 15.8% over the past 52 weeks, compared to XLV’s nearly 25% increase over the same time frame.

Yet, the stock has been trading above its 50-day moving average since late June. 

Abbott Laboratories has underperformed over the past year because weaker demand in areas such as Nutrition and Diagnostics has limited overall growth momentum. Concerns around the infant-formula business, post-COVID normalization in diagnostics, and the integration of Exact Sciences have also weighed on the outlook.

In comparison, ABT stock has lagged behind its rival Johnson & Johnson (JNJ). JNJ stock has increased 28.6% on a YTD basis and 51.7% over the past 52 weeks. 

Despite ABT’s underperformance relative to the broader market over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 29 analysts in coverage, and the mean price target of $121.33 is a premium of 10.1% to current levels. 

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.