Wednesday, July 10, 2013

Why Abbott Labs Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health care giant Abbott Laboratories (NYSE: ABT  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Abbott and see what CAPS investors are saying about the stock right now.

Abbott facts

Headquarters (founded)

Abbott Park, Ill. (1888)

Market Cap

$55.2 billion

Industry

Healthcare equipment

Trailing-12-Month Revenue

$40.0 billion

Management

Chairman/CEO Miles White (since 1999)
CFO Thomas Freyman (since 2001)

Return on Equity (average, past 3 years)

20.6%

Cash / Debt

$8.5 billion / $7.1 billion

Dividend Yield

1.6%

Competitors

Boston Scientific
Johnson & Johnson
Mead Johnson Nutrition

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 2,606 members who have rated Abbott believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star healthcarevalue, brought Abbott's solid fundamentals to our community's attention:

Price/earnings good at 10.4, reasonable market cap, Return on Invested Capital (ROIC) [13.18%] last twelve trailing months, ROIC of over [10%] going back to 2007, Low debt/equity ratio of 0.15. Abbott Laboratories has 91,000 employees and strong value in both its generic drug segment and diagnostic segments.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Abbott may not be your top choice.

If you're looking for more long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

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