Abbott Laboratories [NYSE: ABT] shares went higher by 2.04% from its previous closing of $85.74, now trading at the price of $87.49, also adding 1.75 points. Is ABT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.59 million contracts. Compared to the average trading volume of ABT shares, the company saw a far better performance. Moreover, the stock has a 1.76B float and a +1.44% run over in the last seven days. ABT share price has been hovering between $89.24 and $68.36 lately, and is definitely worthy of attention.
Abbott Laboratories [NYSE:ABT]: Analyst Rating and Earnings
Its stock price has been found in the range of 68.36 to 89.24. This is compared to its latest closing price of $85.74.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 22 Jan (In 7 Days).
Fundamental Analysis of Abbott Laboratories [ABT]
Now let’s turn to look at profitability: with a current Operating Margin for Abbott Laboratories [ABT] sitting at +12.57 and its Gross Margin at +51.75, this company’s Net Margin is now 10.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 7.03, and its Return on Invested Capital has reached 6.10%. Its Return on Equity is 7.55, and its Return on Assets is 3.23. These metrics suggest that this Abbott Laboratories does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Abbott Laboratories [ABT] has generated a Total Debt to Total Equity ratio of 64.10. Similarly, its Total Debt to Total Capital is 39.06, while its Total Debt to Total Assets stands at 29.13. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 5.27, and its Long-Term Debt to Total Capital is 63.42.
What about valuation? This company’s Enterprise Value to EBITDA is 23.49 and its Total Debt to EBITDA Value is 2.75. The Enterprise Value to Sales for this firm is now 5.34, and its Total Debt to Enterprise Value stands at 0.14. Abbott Laboratories [ABT] has a Price to Book Ratio of 4.16, a Price to Cash Flow Ratio of 20.32 and P/E Ratio of 47.40. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Abbott Laboratories [ABT] earns $296,874 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.86 and its Total Asset Turnover is 0.43. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.20 and its Current Ratio is 1.62. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Abbott Laboratories [ABT] has 1.79B shares outstanding, amounting to a total market cap of $153.55B. Its stock price has been found in the range of 68.36 to 89.24. At its current price, it has moved down by -1.96% from its 52-week high, and it has moved up 27.98% from its 52-week low.
This stock’s Beta value is currently 1.12, which indicates that it is 1.52% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 59.80. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Abbott Laboratories [ABT] a Reliable Buy?
Abbott Laboratories [ABT] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.