Abbott Story

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ABT -- USA Stock  

USD 122.21  2.43  2.03%

It looks like Edwards Lifesciences will be up for a correction way faster as its share price whent up 0.76% today to Abbott Laboratories's 0.0087%. As many investors are getting excited about healthcare space, Abbott Laboratories and Edwards Lifesciences may be going in opposite directions. We are going to break down some of the competitive aspects of both Abbott and Edwards.
Published over a month ago
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Will Abbott Laboratories (NYSE:ABT) shadow Edwards Lifesciences price increase?
By analyzing existing basic indicators between Abbott Laboratories and Edwards, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Edwards with a short position in Abbott Laboratories. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Abbott Laboratories has an asset utilization ratio of 78.11 percent. This implies that the company is making $0.78 for each dollar of assets. An increasing asset utilization means that Abbott Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Abbott or Edwards is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Abbott Laboratories dividends

A dividend is the distribution of a portion of Abbott Laboratories earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Abbott Laboratories dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Abbott one year expected dividend income is about $0.68 per share.
Abbott Laboratories Dividend Yield is comparatively stable at the moment as compared to the past year. Abbott Laboratories reported Dividend Yield of 0.013 in 2020. Dividends per Basic Common Share is likely to gain to 1.48 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (2.8 B) in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-2.6 B-2.8 B
Dividend Yield 0.013  0.0133 
Dividends per Basic Common Share 1.44  1.48 
Investing in dividend-paying stocks, such as Abbott Laboratories is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Abbott Laboratories must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Abbott Laboratories. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Abbott Laboratories's Liquidity

Abbott Laboratories financial leverage refers to using borrowed capital as a funding source to finance Abbott Laboratories ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Abbott Laboratories financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Abbott Laboratories's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Abbott Laboratories, but it might be worth checking our own buy vs. sell analysis

Correlation Between Abbott and Edwards Lifesciences Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Abbott Laboratories together with similar or unrelated positions with a negative correlation. For example, you can also add Edwards Lifesciences to your portfolio. If Edwards Lifesciences is not perfectly correlated to Abbott Laboratories it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Abbott Laboratories for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between ABT and EW for more information.

Detailed Perspective On Abbott Laboratories

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Abbott Laboratories revenue. Based on the latest financial disclosure, Abbott Laboratories reported 32.22 B of revenue. This is 322.46% higher than that of the Healthcare sector and significantly higher than that of the Medical Devices industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Edwards Lifesciences we see revenue of 4.37 B, which is 71.32% higher than that of the Medical Devices

Abbott32.22 Billion
Sector2.55 Billion
Edwards4.37 Billion
32.2 B

Momentum Analysis of Abbott Laboratories suggests possible reversal in February

Newest information ratio is at -0.12. As of the 26th of January, Abbott Laboratories shows the mean deviation of 0.9969, and Risk Adjusted Performance of 0.0638. Abbott Laboratories technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Abbott Laboratories, which can be compared to its rivals. Please confirm Abbott Laboratories information ratio, and the relationship between the downside deviation and value at risk to decide if Abbott Laboratories is priced correctly, providing market reflects its regular price of 114.73 per share. Given that Abbott Laboratories has jensen alpha of 0.0666, we suggest you to validate Abbott Laboratories's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Abbott Laboratories

Whereas few other entities within the medical devices industry are still a little expensive, even after the recent corrections, Abbott Laboratories may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Abbott Laboratories at this time. The Abbott Laboratories risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Abbott Laboratories.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Abbott Laboratories. Please refer to our Terms of Use for any information regarding our disclosure principles.

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