Abbott Laboratories (ABT) Launches SimpleScreen CRC As Fair Value Debate Heats Up
Abbott Laboratories (ABT) just brought SimpleScreen CRC to the U.S. market, adding an FDA-approved, Medicare-covered blood test for colorectal cancer screening that targets adults 45 and older who decline traditional methods.
The launch of SimpleScreen CRC comes at a tricky moment for Abbott Laboratories investors. The 1-month share price return is down 11.74%, and the year-to-date share price return has fallen 21.49%, even though the 3-year total shareholder return remains positive at 7.13%.
Scan how Abbott Laboratories compares with hand-picked healthcare peers by running the 35 healthcare AI stocks alongside this new SimpleScreen CRC launch story.
Recent pressure on Abbott Laboratories shares sits awkwardly next to fresh product launches and reported growth in revenue and net income. Is the current valuation starting to reflect business reality or just a swing in sentiment?
Most Popular Narrative: 19% Undervalued
Compared with Abbott Laboratories' last close of $97.50, the most followed narrative points to a fair value of $120.26. This frames the recent share price slide against a higher long term earnings view built on devices and diagnostics.
The main thing that has to go right is that Abbott Laboratories continues to convert its medical technology pipeline in areas like continuous glucose monitoring, electrophysiology and cancer diagnostics into sustained sales growth and margin expansion, while managing Nutrition legal and regulatory risks.
See why 187 investors see Abbott Laboratories as 19% undervalued.
Result: Fair Value of $120.26 (UNDERVALUED)
Still, Abbott Laboratories faces pressure from ongoing Nutrition legal settlements and the capital intensity of Libre expansion, both of which could squeeze the margin story that analysts rely on.
Find out about the key risks to this Abbott Laboratories narrative.
Another View On Abbott Laboratories' Value
That 19% undervalued fair value narrative sits uncomfortably next to the SWS DCF model, which places Abbott Laboratories at a future cash flow value of $80.48 per share against the current $97.50. On that read, the stock looks expensive. Which story do you trust more: the earnings path or the cash flows?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Abbott Laboratories for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 31 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed about Abbott Laboratories after all this? It makes sense to move quickly, weigh the upside against the downside, and let the numbers guide you with the 3 key rewards and 2 important warning signs
Want more ideas beyond Abbott Laboratories?
Round out your thinking by lining Abbott Laboratories up against other opportunities, then pressure test where your next dollar of capital should really go.
- Zero in on quality at a discount and see which companies show up in the 31 high quality undervalued stocks before the crowd catches on.
- Lock in income potential by reviewing the 7 dividend fortresses that pair higher yields with staying power.
- Dial back portfolio risk and scan the 31 resilient stocks with low risk scores that aim to keep drawdowns in check when markets turn.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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