What Is Driving Growth For Abbott Stock?

After a 10% fall year-to-date, at the current levels, Abbott stock (NYSE: ABT) has room for growth, in our view. ABT stock fell from $110 in early January to $99 now. The YTD -10% return for ABT marks an underperformance with the broader S&P500 index, up 4%. The recent fall of ABT stock can partly be attributed to the ongoing investigation by the SEC and the FTC for Abbott’s baby formula products.

Looking at a slightly longer term, ABT stock is up 37% from levels seen in late 2018, compared to a 60% rise in the broader S&P500 index. This 37% rise for ABT can be attributed to 1. Abbott’s Revenue, which grew a solid 43% to $44 billion over the last twelve months, compared to $31 billion in 2018, 2. a 1.3% fall in its total shares outstanding to 1.8 billion currently, partly offset by 3. the company’s P/S ratio, which fell 5% to 4.0x trailing revenues, from 4.2x in 2018. Our dashboard – Why Abbott Stock Moved – details the factors behind this move.