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Reasons why Abbott (ABT) should be in your portfolio

Updated: Dec 16, 2022

Abbott labs, the healthcare and medical devices conglomerate, reported $3.3 billion in coronavirus test sales last quarter. But as the pandemic cases are coming down, are Abbott shares still worth investing in?


Dive in to understand how it is still a trusted brand with numerous revenue-generating avenues to continue its growth trajectory!


Background


Abbott Laboratories (NYSE: ABT) is a multinational pharma company known for its vast range of healthcare products. The company operates under four major arms:


  1. Established Pharmaceutical Products

  2. Diagnostic Products

  3. Nutritional Products

  4. Vascular Products


Additionally, the company offers products like structural heart products, electrophysiology products, and more!


Attractive investment


With such a wide portfolio of products and services, the company is one of the largest and oldest healthcare companies and hence a favorite in the stock market.


It has gained a positive Growth Score and topped the Zacks Rank. The combination of favorability of a Growth Score of A or B and a Zacks Rank (#1 is a strong buy and #2 is a buy) has made it a must-have stock on every investor's list!


Stable growth


Abbott Labs has a $238 billion market cap and about $42.3 billion in revenue.


The dividend yield of the stocks has remained stable throughout the last fifty years. It signifies the resilient nature of the stock, attracting investors to enjoy a steady return.


Competing businesses offer a single category service, whereas Abbott has scaled up to a range of products. Its high-end expertise in surgical instruments and monitoring tools makes it stand out in one too many categories.


The foundation of the company with its wide base is its biggest asset. The patent value and favorable reputation in the industry gain a competitive advantage over other companies in the market.


Booming healthcare sector


After the world was hit by the pandemic, the stock market went through a major cycle of ups and downs!


Asa medical devices company, Abbott Labs touched $1.9 billion in the third quarter of 2021. With Covid-19 diagnostic tests and rapid antigen kits, the diagnostic sales of the company rose by 45% during the third quarter of 2021.