Is Abbott Laboratories stock a ‘buy’ after market-beating Q2 results?

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:

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.