Abbott Story

ABT -  USA Stock  

USD 118.95  0.16  0.13%

12% of stocks are less volatile than Abbott, and above 97% of all equities are expected to generate higher returns over the next 90 days. As many adventurous traders are excited about healthcare space, it is only fair to review the risk of shorting Abbott Laboratories based on its current volatility spike. What exactly are Abbott Laboratories shareholders getting in May?
Published over two weeks ago
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Will private investors pick up Abbott Laboratories May?
Abbott Laboratories has roughly 7.15 B in cash with 7.9 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.03.
Volatility is a rate at which the price of Abbott Laboratories or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Abbott Laboratories may increase or decrease. In other words, similar to Abbott's beta indicator, it measures the risk of Abbott Laboratories and helps estimate the fluctuations that may happen in a short period of time. So if prices of Abbott Laboratories fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

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

Abbott Laboratories Volatility Drivers

Abbott Laboratories unsystematic risk is unique to Abbott Laboratories and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Abbott Laboratories you can also buy Edwards Lifesciences Corp. You can also mitigate this risk by investing in the medical devices sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Abbott Laboratories important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Abbott Laboratories income statement and balance sheet. Here are more details about Abbott volatility.