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's Indicator enters downward trend
The Aroon Indicator for ABT entered a downward trend on October 06, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 210 similar instances where the Aroon Indicator formed such a pattern. In 119 of the 210 cases the stock moved lower. This puts the odds of a downward move at 57%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 31, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ABT as a result. In 45 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
ABT moved below its 50-day moving average on September 10, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ABT crossed bearishly below the 50-day moving average on September 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ABT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ABT's RSI Indicator exited the oversold zone, 19 of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 51%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 24 of 52 cases where ABT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 46%.
The 50-day moving average for ABT moved above the 200-day moving average on September 10, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +3.53% 3-day Advance, the price is estimated to grow further. Considering data from situations where ABT advanced for three days, in 174 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
ABT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 4 (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 (3.419) is normal, around the industry mean (10.853). P/E Ratio (32.680) is within average values for comparable stocks, (98.910). Projected Growth (PEG Ratio) (1.853) is also within normal values, averaging (11.052). ABT's Dividend Yield (0.025) is considerably higher than the industry average of (0.002). P/S Ratio (3.836) is also within normal values, averaging (39.828).
The Tickeron PE Growth Rating for this company is 7 (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 58 (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 Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 68 (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 100 (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 96, placing this stock worse than average.
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a manufacturer of health care products
Industry MedicalNursingServices
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