Is Abbott Laboratories stock a ‘buy’ after market-beating Q2 results?
- Brenda Vingiello sees "opportunity" in Abbott Laboratories stock.
- ABT reported market-beating results for its fiscal Q2 a day earlier.
- Shares of the healthcare company are down over 20% for the year.
Abbott Laboratories (NYSE: ABT) down more than 20% for the year is an opportunity to buy a quality name at a deep discount, says Brenda Vingiello. She’s the Chief Investment Officer at Sand Hill Global Advisors.
Vingiello’s remarks on CNBC’s ‘Halftime Report’
A day earlier, the medical devices and healthcare company reported market-beating results for its fiscal Q2. Still, the stock didn’t respond all too well. On CNBC’s “Halftime Report”, Vingiello said:
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It’s a stock that has really underperformed the broader healthcare group. It’s all about COVID testing this year, it’s going to be more about the underlying business trends and the organic growth. So, I think it’s a good opportunity here.
In comparison, the healthcare space at large (Health Care Select Sector SPDR Fund) is down less than 10% versus the start of 2022. The stock trades at a PE multiple of 23.
Abbott raised its guidance for fiscal 2022
This week, Abbott Laboratories also raised its outlook for fiscal 2022. It now forecasts $4.90 of per-share earnings on an adjusted basis this year versus the Street estimate for a marginally lower $4.88 a share.
The American multinational has a dividend yield of 1.70% that further adds to the bull case. Abbott also says that it’s committed to rewinning the share it lost in baby-formula market due to the recall announced in February.
Wall Street also agrees with the constructive view on Abbott Laboratories. It rates the stock at “overweight” and sees upside to $127 a share on average that translates to about a 15% upside from here.