Abbott Laboratories (ABT, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial standing. With a current share price of $109.21, despite a daily loss of 1.89%, Abbott Laboratories has shown a positive three-month change of 4.32%. A detailed analysis, supported by the GF Score, positions Abbott Laboratories for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system from GuruFocus, which evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently and have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. For Abbott Laboratories, the GF Score is an impressive 93 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 5/10
Understanding Abbott Laboratories Business
Abbott Laboratories, with a market cap of $190.01 billion and annual sales of $40.73 billion, operates globally, deriving about 60% of its sales from outside the United States. The company is a diversified healthcare giant, manufacturing and marketing a range of products including cardiovascular devices, diabetes care products, nutritional goods, and diagnostic equipment. This diverse product portfolio allows Abbott to maintain a strong competitive position in the healthcare sector.
Financial Strength Breakdown
Abbott Laboratories showcases a robust balance sheet, with an Interest Coverage ratio of 10.7 and an Altman Z-Score of 5.24, indicating low risk of financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.36, underscoring its financial prudence.
Profitability Rank Breakdown
Abbott Laboratories excels in profitability with a high rank, supported by a consistent increase in its Operating Margin over the past five years. The company's ability to efficiently turn revenues into actual profit is further evidenced by its Piotroski F-Score and a Predictability Rank of 4.5 stars, indicating reliable operational performance.
Growth Rank Breakdown
Abbott Laboratories is highly rated for growth, with a 3-Year Revenue Growth Rate of 5.8%. The company's EBITDA has also seen significant growth, highlighting its ongoing expansion and capability to scale effectively.
Conclusion
Considering Abbott Laboratories's strong financial metrics, profitability, and growth indicators, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
