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The Bullish Case for Abbott Laboratories

Published 07/28/2021, 12:22 PM
Updated 07/28/2021, 01:30 PM
© Reuters.  The Bullish Case for Abbott Laboratories
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Abbott Laboratories (NYSE:ABT) is a renowned player in the medical devices and ancillary healthcare products industry with an impressive dividend payout history. We think the company’s stable growth outlook makes it an ideal investment bet amid the resurgence of COVID-19 cases and surging market volatility. Let's discuss.With a $212.88 billion market capitalization, diversified healthcare products manufacturer Abbott Laboratories (ABT) is an established player in the healthcare space.

The Abbott Park, Ill.-based company generated $1.3 billion in COVID-19-testing-related sales in the second quarter, ended June 30. Its net income increased 170.9% from the same period last year to $2.98 billion, while its EPS rose 172.1% from the prior-year quarter to $1.66, beating the $1.02 consensus EPS estimate.

Amid a resurgence of COVID-19 cases with the rapid spread of the Delta variant, the demand for testing equipment is expected to rise in the coming quarters. As such, ABT’s diagnostic equipment pertaining to coronavirus-related testing should witness high demand in the near term.

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