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Abbott Labs: Looking For A New All-Time High

Abbott Laboratories (NYSE:ABT) is poised for another stock price appreciation in the coming months. The price performance has been relatively lackluster for 2015 and is currently up 0.01% for the year. This is out of the ordinary for Abbott. ABT has been a good performer returning 85% since 2011. I expect ABT stock to get back on track and push toward a fresh 52 week high by the end of the year. Abbott focuses on emerging healthcare markets such as China, Vietnam, and India to fuel growth.

The company most recently reported Q3 earnings on October 21, 2015. Abbott Laboratories reported EPS of $0.54, beating the consensus estimate of $0.53 by 1.12%. The EPS showed a year-over-year (YoY) decline of 12.9%, compared to the EPS of $0.62 in the same quarter last year. The company posted revenue of $5.2 billion, surpassing the consensus estimate of $5.13 billion. This was an increase of 10.9% on an operational basis over the previous year time frame.

Abbott operates four business segments:

  • Nutrition
  • Diagnostics
  • Established Pharmaceuticals
  • Medical Devices

1. Nutrition segment offers a diverse product portfolio that is balanced between adult and pediatric nutrition. Abbott concentrates on launching new products into developed and fast-growing emerging markets, where healthcare trends, such as aging populations and high birth rates, are increasing the need for quality medical nutrition. Brands such as Pediasure, Ensure, and Similac are well known brands that are owned by Abbott. Sales in Q3 increased 6.5%, led by growth in the international pediatric business.

2. Diagnostic segment offers a broad range of innovative diagnostic instrument systems and solutions for hospitals, reference labs, molecular labs, blood banks, physician offices, and clinics. Diagnostics achieved...