Abbott Labs bounces off of the lower rail of an upwardly sloped channel
Abbott Laboratories (NYSE: ABT) is classified as a diversified medical company because the company develops generic pharmaceuticals and nutritional supplements, but it also develops diagnostic systems. The diversification might not seem like a big deal, but it could help the company in the long run. The current political environment has brought attention to the costs of prescription drugs in the United States and with Abbott developing generic drugs and also having the cushion of developing nutritional supplements and diagnostic systems as well, it could actually benefit from additional regulation in the industry.
Regardless of what happens going forward, the company has performed very well in recent years and so has the stock. The company has seen earnings grow by a rate of 13% per year over the last three years while sales have grown by a rate of 18%. Earnings increased by 12% in the most recent quarterly report while sales were up 3%. Analysts expect earnings to increase by 13% for 2019 while sales are expected to increase by 4.4%.
The management efficiency measurements are slightly above average with a return on equity of 16.7% and a profit margin of 19.5%.
The Tickeron Valuation Rating system shows a current reading of 3 for Abbott and that indicates that the company is seriously undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. The stock’s price-to-book ratio, P/E ratio, and PEF Ratio are all below the industry averages.
The Tickeron Price Growth Rating for this company is 8, indicating outstanding price growth and meaning that Abbott’s price has grown at a higher rate over the last 12 months as compared to S&P 500 index constituents. A rating of 1 points to highest price growth (largest percent return), while a rating of 100 points to lowest price growth (smallest percent return).
Also from Tickeron we see a Profit vs. Risk rating for Abbott of 9, indicating low risk on high returns. The average Profit vs. Risk rating for the industry is 75, placing this stock better than average.
Looking at the daily chart for Abbott we see that the stock has been trending higher over the last four months and a trend channel has formed that defines the different cycles within the overall trend.
We see that the upper rail connects the highs from April, June, and July while the parallel lower rail connects the lows from May and August. The stock just hit the lower rail in the last week and has since turned higher. It is worth noting that the stock moved back above its 50-day moving average in the last few days.
The daily stochastic readings show low readings, but not quite low enough to get to oversold territory. It is interesting that the indicators did a little double dip in the last few weeks.
The stock briefly broke below its lower Bollinger Band earlier this month and according to the Tickeron Technical Analysis Overview, when that has happened in the past, the stock moved higher 63% of the time over the next month.
One area of concern for Abbott is the sentiment toward the company. Analysts are pretty bullish on the company with 18 out of 21 ratings falling in the “buy” or “overweight” category. There are also two “hold” ratings and one “underweight” rating.
The short interest ratio is a little higher than average at 3.3. The total number of shares sold short did jump significantly in July with total short interest jumping from 14.15 million to 16.99 million from the end of June through the end of July. This indicates growing bearish sentiment.
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ABT in +3.68% Uptrend, growing for three consecutive days on August 19, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where ABT advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In of 259 cases where ABT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.949) is normal, around the industry mean (11.035). P/E Ratio (37.748) is within average values for comparable stocks, (70.949). Projected Growth (PEG Ratio) (2.348) is also within normal values, averaging (4.006). Dividend Yield (0.021) settles around the average of (0.017) among similar stocks. P/S Ratio (4.373) is also within normal values, averaging (34.463).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ABT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ABT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.
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Fundamental Analysis Ratings
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General Information
a manufacturer of health care products
Industry MedicalNursingServices
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