
A high-quality large-cap income stock trading near fair value. Frameworks sharply disagree on it.
Mkt Cap
$146.00B
P/E
—
PEG
1.25
P/B
2.80
Dividend
3.05%
ROE
12.3%
About the business
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.
Who would buy ABT?
Consensus 14/100 · Mixed · Investors are split.
Endorses
· 2 frameworksDividend Yield > 2% 3.0% clears "> 2.0%".
Down > 30% from 52-wk high -39.7% clears "< -30.0%".
Rejects
· 3 frameworksOver the last ~6 months 3 different insiders made open-market purchases totalling $4.2M, against $688K of selling (including planned 10b5-1 disposals). Multi-insider open-market buying is one of the more durable positive signals because it reflects fresh-dollar conviction rather than vesting or diversification. Over the 6M window, insiders are net buyers by 316,747 shares.
In Prism's context
Insider buying adds modest supporting evidence alongside the framework read (Fails criteria).
| Insider | Role | Type | Date | Shares | Avg price | Value | Own |
|---|---|---|---|---|---|---|---|
| STARKS DANIEL J | Director | Open-market buy | Apr 27, 2026 | 10,000 | $92.65 | $927K | Direct |
| GONZALEZ PATRICIA PAOLA | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| AHUJA NITA M.D. | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| BABINEAUX CLAIRE FONTENOT | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| MCDEW DARREN W | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| STARKS DANIEL J | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| ROMAN MICHAEL F | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| KUMBIER MICHELLE A | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| STRATTON JOHN G. | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| MCKINSTRY NANCY | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| O GRADY MICHAEL G | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| BLOUNT SALLY E | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| CONROY KEVIN T | Director | Award / grant | Apr 24, 2026 | 2,286 | $0.00 | $0 | Direct |
| BOUDREAU PHILIP P | Chief Financial Officer | Open-market buy | Apr 23, 2026 | 2,200 | $91.50 | $201K | Indirect |
| ORVILLE JACOB A | Officer | Award / grant | Mar 23, 2026 | 13,255 | $0.00 | $0 | Direct |
| MORRONE LOUIS H | Officer | Open-market sell | Mar 2, 2026 | 1,144 | $115.58 | $132K | Direct |
| SHROFF ERIC | Officer | Open-market sell | Mar 2, 2026 | 709 | $115.58 | $82K | Direct |
| CUSHMAN ELIZABETH C | General Counsel | Open-market sell | Mar 2, 2026 | 263 | $115.58 | $30K | Direct |
| MCCOY JOHN A. JR | Officer | Open-market sell | Mar 2, 2026 | 585 | $115.58 | $68K | Direct |
| MORELAND MARY K | Officer | Open-market sell | Mar 2, 2026 | 613 | $115.58 | $71K | Direct |
| SALVADORI DANIEL GESUA SIVE | Officer | Open-market sell | Mar 2, 2026 | 885 | $115.58 | $102K | Direct |
| BOUDREAU PHILIP P | Chief Financial Officer | Award / grant | Feb 24, 2026 | 27,997 | $0.00 | $0 | Direct |
| MORRONE LOUIS H | Officer | Award / grant | Feb 24, 2026 | 15,418 | $0.00 | $0 | Direct |
| SHROFF ERIC | Officer | Award / grant | Feb 24, 2026 | 10,873 | $0.00 | $0 | Direct |
| CUSHMAN ELIZABETH C | General Counsel | Award / grant | Feb 24, 2026 | 15,031 | $0.00 | $0 | Direct |
| MCCOY JOHN A. JR | Officer | Award / grant | Feb 24, 2026 | 5,373 | $0.00 | $0 | Direct |
| SCOGGINS CHRISTOPHER J | Officer | Award / grant | Feb 24, 2026 | 18,502 | $0.00 | $0 | Direct |
| MORELAND MARY K | Officer | Award / grant | Feb 24, 2026 | 13,951 | $0.00 | $0 | Direct |
| FORD ROBERT B. | Chief Executive Officer | Award / grant | Feb 24, 2026 | 83,464 | $0.00 | $0 | Direct |
| SALVADORI DANIEL GESUA SIVE | Officer | Award / grant | Feb 24, 2026 | 21,644 | $0.00 | $0 | Direct |
| EARNHARDT LISA D | Officer | Award / grant | Feb 24, 2026 | 27,056 | $0.00 | $0 | Direct |
| STARKS DANIEL J | Director | Open-market buy | Feb 4, 2026 | 10,000 | $108.73 | $1.09M | Direct |
| FORD ROBERT B. | Chief Executive Officer | Open-market buy | Jan 23, 2026 | 18,800 | $107.13 | $2.01M | Indirect |
| SALVADORI DANIEL GESUA SIVE | Officer | Stock Gift at price 123.28 per share. | Dec 11, 2025 | 1,536 | $123.28 | $189K | Direct |
| SHROFF ERIC | Officer | Open-market sell | Nov 25, 2025 | 1,586 | $128.02 | $203K | Direct |
Insider activity from Yahoo Finance (quoteSummary: insiderTransactions + netSharePurchaseActivity). Cached 6 hours. · Insiders hold 0.5% of shares outstanding.
Net 6M: +316,747 sh
Price history
Drag across the chart to select a custom period — all analysis below refocuses to that window.
What this means: Price near 52-week lows confirms what most frameworks are already flagging: the market is discounting deteriorating fundamentals.
Add Abbott Laboratories at a hypothetical weight and Prism recalculates your whole book:
Sharpe, Sortino, volatility, max drawdown, beta — before and after.
How much this shifts your top sector weight and overall diversification.
Whether this leans your book more toward Quality, Value, Growth, Deep Value, Income, or Momentum.
Portfolio analytics are part of the member experience.
Sign in to run this simulationABT: 48% estimated probability of outperforming over the next 12M window. 1 of 6 signal families negative (medium confidence). Strongest support: 3 insiders buying. Main risk to monitor: 91% above fair value.
Probabilistic research output, not financial advice. Prism recommendations are based on available data, historical relationships, and model assumptions. They do not guarantee future returns. Conduct independent due diligence before any investment decision.
Backtested and similar-setup statistics may be affected by survivorship bias, look-ahead bias, overfitting, transaction costs, liquidity constraints, and data limitations. Probability estimates are anchored heuristics — not validated forecasts — until the walk-forward backtest pipeline is in place.
P/B 2.80× · FCF yield 4.3%
91% above fair value
Indicative only. Probabilities are model-implied weights for stress-testing — not forecasts.
A turnaround takes hold: margin recovers toward peer averages, revenue stabilises, and the market re-prices the asset value rather than the running earnings.
No deterioration, no surprise re-acceleration. 13% operating margin and 8% top-line growth chug along; the multiple slowly converges to the central fair-value estimate.
Sector: Healthcare. MENA-aware investors can sanity-check whether the US name is offering value relative to regional peers.
| Metric | ABT | GCC median | MENA median | Global ex-US |
|---|---|---|---|---|
| P/E (TTM) | — | 24.0× | — | 20.0× |
| P/B | 2.80× | 4.80× | — | 3.80× |
| Dividend yield | 3.05% | 1.40% | — | 1.80% |
| ROE | 12.3% |
Reported EPS $1.15 vs $1.28 expected — a manageable miss. Whether it matters depends on cause: input-cost pressure or one-off charges shrug off; demand softness compounds. Trailing operating margin: 13.5%.
A miss without a clear one-off cause raises questions about the durability of the margin structure.
Decelerating growth + a miss is the pattern that resets multiples — even a small miss matters when the prior multiple was full.
Already cheap; the question is whether the deterioration is cyclical (digestible) or structural (avoid).
Next earnings
Thu, Jul 16 · consensus EPS $1.28 · last actual $1.15
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P/E Ratio (TTM)
N/A
PEG Ratio
1.25
P/B Ratio
2.80
EPS Growth
-19.7%
Revenue Growth
7.8%
Debt / Equity
0.65
Net Cash / Share
$-15.41
Return on Equity
12.3%
Gross Margin
56.5%
Operating Margin
13.5%
FCF / Share
$3.64
Current Ratio
1.39
PEG < 1 (growth at a discount) is 1.25× — fails "< 1.00×".
ROE > 20% is 12.3% — fails "> 20.0%".
Revenue Growth > 15% is 7.8% — fails "> 15.0%".
Trades meaningfully above the fair-value range — limited margin of safety.
Quality is mixed — some strengths, some softness.
Capital structure is unremarkable — neither a stress nor a tailwind.
Price has been weak — momentum is a headwind.
Insiders and / or superinvestors are accumulating — informed-money tailwind.
Mixed catalyst picture.
Among 97 historical setups with similar Prism Score and signal-agreement profiles, 49% beat the benchmark over the next 12 months, with average excess return of -0.2% / yr.
ROE 12% · Op margin 13%
D/E 0.65 · CR 1.39
3 insiders buying
No tracked superinvestor holds it
3.05% yield + buyback runway
3% through 52w range
EPS -20% · Rev 8%
Cyclical earnings prove to be at peak; revenue stalls and the multiple, already low, drifts lower as estimates re-rate down.
| — |
| 15.0% |
Institutional Own.
81.4%
Insider Own.
0.5%
Dividend Yield
3.05%
Book Value / Share
$29.89