A Look at Abbott Laboratories’s Valuation After Q3 Earnings Meet Profit Expectations but Miss on Sales

Abbott Laboratories (ABT) issued third-quarter earnings that met profit expectations, while revenue came in just under consensus due to challenges in diagnostics and baby formula. The company maintained its full-year guidance and narrowed the range slightly.

See our latest analysis for Abbott Laboratories.

Shares of Abbott Laboratories slipped following Q3 results that aligned with profit forecasts but came in just shy on sales, with investors reacting to softer diagnostics and nutrition segments. Even so, the company’s 13.3% year-to-date share price return and nearly 10% total return over the last year highlight solid momentum through 2025. Broader confidence in its medical device innovation continues to anchor the long-term story.

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With shares sitting roughly 12% below analyst price targets and the business showing resilient growth in key areas, is Abbott Laboratories trading at an attractive entry point? Or is the market already pricing in its future gains?

Most Popular Narrative: 11% Undervalued

Abbott Laboratories’ last close of $128.54 sits below the narrative’s fair value estimate of $144.40, highlighting potential upside if consensus assumptions hold. The stage is set by shifting healthcare dynamics and Abbott’s evolving product pipeline.

The expansion of healthcare access and rising middle class in key emerging markets (such as India, China, Latin America, and the Middle East) is fueling robust growth in branded generics and biosimilars, highlighted by Abbott’s record sales in these regions and imminent biosimilar launches. This trend is poised to drive sustained double-digit top-line growth and greater geographic revenue diversification.

Read the complete narrative.

Curious what’s powering this premium over prevailing market sentiment? One catalyst is an ambitious call on earnings resiliency and global diversification. Want the full story including the bold financial forecasts the narrative is betting on? Discover what experts are projecting and see exactly what drives their outlook.

Result: Fair Value of $144.40 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent pressures in diagnostics sales and possible global currency volatility could undermine near-term growth and challenge the optimistic valuation outlook.

Find out about the key risks to this Abbott Laboratories narrative.

Another View: A Look Through the SWS DCF Model

While analysts see upside to Abbott Laboratories based on consensus price targets, our DCF model arrives at a much lower fair value of $97.01. This suggests the shares could actually be overvalued relative to longer-term cash flow fundamentals. This sharp divergence raises an important question for investors: which valuation story holds more weight when sentiment and fundamentals collide?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Abbott Laboratories for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own Abbott Laboratories Narrative

If you have a different perspective or want to dive deeper into the data, it only takes a few minutes to build your own viewpoint. Do it your way

A great starting point for your Abbott Laboratories research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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