With a market capitalization of $189.6 billion, Abbott Laboratories (ABT) is a global healthcare company that discovers, develops, manufactures and sells a broad range of medical products spanning pharmaceuticals, diagnostics, nutrition and medical devices. It serves patients around the world with solutions spanning disease treatment, testing and diagnosis, nutrition, cardiovascular care, diabetes management and neuromodulation.
Shares of the Abbott Park, Illinois-based company have underperformed the broader market over the past 52 weeks. ABT shares have declined 15.1% over this period, while the broader S&P 500 index ($SPX) has gained 15.4%. Additionally, the stock has fallen nearly 13% so far this year, compared to SPX’s gain of 1.1%.
Looking closer, shares of the maker of infant formula, medical devices and drugs have also lagged the State Street Health Care Select Sector SPDR ETF’s (XLV) 5.9% return over the past 52 weeks.
Abbott shares fell 10% on Jan. 22 after the company reported revenue of $11.46 billion in the fourth quarter of 2025, missing Wall Street estimates even though adjusted earnings per share of $1.50 met expectations. Investors were concerned about weak performance in key segments, particularly Nutrition, where fourth-quarter sales fell 8.9% (9.1% organic), and Diagnostics, which declined 2.5%, reflecting lower volumes and lower demand for COVID-19 tests. The sell-off was amplified by Abbott’s 2026 organic sales growth outlook of 6.5%-7.5%, which was below previous consensus.
For the fiscal year ending December 2026, analysts expect ABT’s adjusted EPS to grow 10.3% year over year to $5.68. The company’s track record of earnings surprises is promising. It has surpassed or met consensus estimates over the past four quarters.
Among the 28 analysts covering the stock, the consensus rating is “Strong Buy.” This is based on 20 “Strong Buy” ratings, two “Moderate Buys” and six “Holds.”
On January 23, Wells Fargo analyst Larry Biegelsen lowered Abbott’s price target to $122 and maintained an “overweight” rating.
The average price target of $134.38 represents a 23.3% premium to ABT’s current price. The Street’s high price target of $158 suggests an upside potential of 44.9%.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com