Stocks with critical Profitability Analyses: Abbott Laboratories (NYSE:ABT)

Abbott Laboratories (NYSE:ABT) share price swings at $45.53 with percentage change of -0.42% in most recent trading session.

Pool Consensus

The ABT held a rough session during the week but was ready to get some critical analysis. The stock was assessed by a pool of analysts at WSJ and came out with some serious outcomes not to be avoided before making investment. The ABT ratings chart showed that 6 gave HOLD ratings for the current month as 1 analyst opting for Overweight option for same period, whereas, 1 analyst out of pool gave UNDERWEIGHT rating. For stocks’ current month, 11 analysts opted for BUY ratings. The stock price target chart showed average price target of 47.57 as compared to current price of 45.53.

Taking look on per share earnings estimates, its next year first quarter current estimate trend for EPS was for $0.60 and on annual basis FY 2016 estimate trends at current was for $2.45 as compared to one month ago of $2.20, and for next year per share earnings estimates have $2.75.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, Abbott Laboratories (NYSE:ABT) has positive 6.70% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. The firm has gross profit margin of 56.80% and operating profit margin calculated as 15.30%. Moving toward returns ratio, ABT has returns on investment of 6.70% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 3.30% that gives an idea about how efficient management is at using its assets to generate earnings. Abbott Laboratories (NYSE:ABT) has returns on equity of 6.80%, which is measuring a corporation’s profitability by revealing how much profit generates by ABT with the shareholders’ money. The firm attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of 0.89%.

Effective Investment Valuation

To persist focus on investment valuation, Abbott Laboratories (NYSE:ABT) also have significant role in eyes of active investors, it has price to earnings growth of 5.66, which is a valuation metric for determining relative trade-off among price of a stock.

ABT has price to earnings growth ratio of 5.66, it is adding factors in a stock’s estimated earnings growth into its current valuation that showed 63.59 by price to earning ration. Furthermore, it has price to sale ratio of 3.77 that signifies the value placed on each dollar of a firm’s sales or incomes. The firm’s price to book was 3.28, which can be compared with current price to get idea about under or overvalue of stock. Forward Price to Earnings ratio of ABT attains value of 16.55 that is projecting or estimating EPS for the next 12-months and its follow by traders who believe on anticipates of a firm’s future rather than past performance.

To have technical views, liquidity ratio of Abbott Laboratories (NYSE:ABT) calculated as 4.00 to match up with its debt to equity ratio of 1.05. The float short ration was 0.92%; as compared to Short Ratio were 1.73. The firm has institutional ownership of 65.10%, while insider ownership included 0.70%.

 

About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

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