Abbott Laboratories: Reasonably Valued After Surge, But Still An Attractive Buy Long-Term

Dividend Collection Agency Investing Group Follow Summary Abbott Laboratories remains a buy, with accelerating earnings growth, margin expansion, and robust segment performance following Q2’s double beat and guidance raise. ABT’s Exact Sciences acquisition strengthens its long-term growth runway, supporting a raised EPS outlook and 10.4% CAGR over the next six years. Despite recent price appreciation, ABT trades below its 5-year forward P/E average, offering a 2.5% yield and a potential 37% upside to a $151 price target. Risks include Nutrition segment volatility, regulatory scrutiny on the pipeline, and international exposure, but ABT’s A credit rating and Dividend King status support a premium valuation. Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » Sundry Photography/iStock Editorial via Getty Images Introduction Since my last coverage of Abbott Laboratories ( ABT ), shares have surged, likely driven by the company's double beat on their latest earnings and full-year guidance raise. Although I don't believe shares are This article was written by Dividend Collection Agency 9.56K Followers Follow Formerly known as "The Dividend Collectuh." Top 1% of financial experts on TipRanks. Contributing analyst to the iREIT+Hoya Capital investment group. Dividend Collection Agency is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDCs, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.