ABT · Abbott Laboratories
Conviction · Low · more likely to lag the S&P 500 over the next three months
Wrong if: a daily close above $127.42
Note written ·
Price against the kill line
14.8% clear of its kill line on the 13 November 2026 close.
How to read this
This note expects the shares to lag the market, so its kill line sits above the price: a close above the red mark would prove the view wrong. Prices run from low on the left to high on the right. The dot is where the stock closed on 13 November 2026, left of the mark while it is below the line; a dot right of the mark has closed through it.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a daily close above $127.42, on record since 11 November 2026. The shares are down 1.1% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A daily close above $127.42, the highest adjusted close of the past year (14 November 2025), which would show the shares leading the S&P 500; 2027 comparable sales growth guidance above 7.5% would also prove the call wrong.
Research onlyNot in the portfolio.
Key figures from the filings · Health Care
Quarter to 30 September 2026, filed 4 November 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 13,013
- Revenue, change on a year (%)
- +14.5
- Gross margin (%)
- 56.8
- Operating margin (%)
- 10.4
- Free cash flow, four quarters ($M)
- 6,757
- Net cash, cash less debt ($M)
- −26,861
- Price to earnings (×)
- 40.0
- Enterprise value to sales (×)
- 4.5
All filed numbers
What Abbott Laboratories reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Gross margin (%) | Operating margin (%) |
|---|---|---|---|---|
| first filed | 13,013 | +14.5 | 56.8 | 10.4 |
| first filed | 12,593 | +13.0 | 57.7 | 13.4 |
| first filed | 11,164 | +7.8 | 56.2 | 12.0 |
| first filed | 11,459 | +4.4 | 57.0 | 19.6 |
| first filed | 11,369 | +6.9 | 55.4 | 18.1 |
| first filed | 11,142 | +7.4 | 56.4 | 18.4 |
| Pre-tax income ($M) | 1,231 |
| Net income ($M) four quarters: 4,701 | 920 |
| Diluted shares, change on a year (%) against the quarter to 30 September 2025 | −0.7 |
| Operating cash flow ($M) | 8,855 |
| Capital spending ($M) | 2,098 |
| Free cash flow ($M) | 6,757 |
| Cash and short-term investments ($M) | 4,298 |
| Debt ($M) non-current long-term debt plus current maturities | 31,159 |
| Net cash, cash less debt ($M) | −26,861 |
| Deferred revenue ($M) +2.9% on a year | 669 |
| Backlog, orders not yet delivered ($M) | Not reported |
| Receivables ($M) | 9,032 |
| Inventory ($M) | 7,337 |
| Shareholders' equity ($M) | 51,027 |
| Market value ($M) | 187,950 |
| Enterprise value, market value plus net debt ($M) | 214,811 |
| Enterprise value to sales (×) | 4.5 |
| Enterprise value to operating income (×) | 32.3 |
| Price to earnings (×) | 40.0 |
| Price to book value (×) | 3.7 |
| Free-cash-flow yield (%) | 3.6 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 1.0% of shares outstanding sold short, 1.8 days of average trading to cover, +27.5% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $0 | $46.6M |
| 12 monthsfrom | $4.4M | $47.9M |
The thesis
Abbott Laboratories' shares are more likely to lag the S&P 500 than lead it over the next three months. Abbott cut its 2026 comparable sales growth guide to about 6.0% on 21 October 2026, and the fourth-quarter report and 2027 guidance, expected in late January 2027, decide whether growth recovers toward the third quarter's 7.0%.
Abbott's 21 October 2026 release shows third-quarter sales of $13,013 million, up 14.5% reported and 7.0% comparable. Adjusted earnings per share (EPS) were $1.42 against a $1.38–$1.46 guide. The full-year adjusted EPS guide was narrowed to $5.50–$5.55 from $5.45–$5.60, and fourth-quarter adjusted EPS is guided to $1.62–$1.67. The 10-Q filed on 4 November 2026 carries the same $13.01 billion quarter against $11.37 billion a year earlier.
The news since then is product and analyst news, with no new financial figures. Abbott announced FDA approval and CE Mark for its UltiSynq defibrillation lead around 10 November 2026, and BofA raised its target to $125 on 10 November 2026. The shares still slipped, closing at $107.25 on 12 November 2026 after $113.60 on 5 November 2026.
The price reflects the guidance cut but not a return to 7% growth: the 12 November 2026 close sits 18.8% below the quoted 52-week high of $132.03 from 18 November 2025, and the three-month price change is −3.0%. The rating is Low because the next result that can move the earnings line is more than two months away, while insiders sold near $116 in August and November.
Bullish and bearish views on Abbott Laboratories
The bull case on Abbott Laboratories (ABT), in brief: comparable growth accelerated in the third quarter. The bear case: the full-year growth guide was cut.
Bull case
- Comparable growth accelerated in the third quarter. Comparable growth was 7.0% against 4.8% in the second quarter (Abbott, 16 July 2026 and 21 October 2026). Adjusted EPS of $1.42 landed inside the guided range.
- Electrophysiology and cancer diagnostics lead growth. Electrophysiology grew 15.5% comparable in the third quarter, and Cancer Diagnostics, which includes Exact Sciences, grew 13.8% (Abbott, 21 October 2026).
- Heart-rhythm and structural-heart approvals keep arriving. The UltiSynq lead, approved by the FDA and given CE Mark around 10 November 2026, rests on the ASCEND CSP trial of about 200 patients, with a 97.5% three-month major complication-free rate (Diagnostic and Interventional Cardiology, 10 November 2026). On 2 November 2026 Abbott reported that the TECTONIC trial of its SonicForce coronary intravascular lithotripsy system met its primary safety and effectiveness endpoints.
- The Libre sensor reaches more insulin pumps. Tandem Diabetes Care received Health Canada approval on 12 November 2026 for its t:slim X2 pump working with the FreeStyle Libre 3 Plus sensor (Tandem release).
- A fresh target sits above the price. BofA raised its target to $125 on 10 November 2026, above the $107.25 close of 12 November 2026.
Bear case
- The full-year growth guide was cut. About 6.0% comparable growth sits below the 6.5%–7.5% range Abbott reaffirmed on 16 July 2026 (Abbott, 21 October 2026).
- Glucose monitoring growth slowed. Continuous glucose monitor comparable growth was 7.7% in the third quarter against 9.5% in the second, and Diabetes Care grew 6.7% (Abbott, 21 October 2026). Argus Research downgraded the shares to Hold on 27 October 2026.
- Insiders sold near $116. Chairman and Chief Executive Robert Ford exercised options and sold 398,832 shares at an average $115.85 on 25 August 2026. Executive Vice President Mary Moreland sold 3,500 shares at $116.00 on 5 November 2026 (SEC Form 4 filings).
- The early-November rebound reversed. The shares fell 3.23% on 6 November 2026 to close at $109.93, while Stryker fell 2.75% the same session (TradingKey). They closed at $107.25 on 12 November 2026.
- The spin-off and litigation add cost. Abbott has not quantified one-time charges for the Nutrition distribution, which still needs a Form 10 registration and board approval. About 1,700 infant-formula suits remain after the $385 million Department of Justice settlement announced on 14 September 2026.
Price setup
The shares closed at $107.25 on 12 November 2026, down from $113.60 on 5 November 2026. The quoted 52-week high is $132.03, an intraday level from 18 November 2025, before the October guidance cut. The 52-week closing low is $82.56 on 11 May 2026.
On adjusted daily closes, the last close sits above the 50-day moving average of $103.55 and the 200-day moving average of $100.42, both as of 12 November 2026. The three-month price change is −3.0%. The late-October close of $103.10 on 27 October 2026, near the 50-day average, is the floor of the recent rebound; a return there would put the shares back where they traded before the device news of early November.
No earnings report falls before late January 2027, so the price over the next two months is likely to follow the large-cap medical device group and product news rather than new Abbott results.
Catalysts ahead
- ~15 December 2026 (est.): Board dividend decision for 2027. December 2025 was the 54th straight annual increase; a 55th would show the board's confidence in cash flow while the Nutrition spin-off and litigation are pending.
- ~31 December 2026 (est.): Libre Duo 10 Day US launch, guided for later in 2026. Would turn a regulatory approval into revenue in the continuous glucose monitor line, which grew 7.7% comparable in the third quarter after 9.5% in the second.
- ~21 January 2027 (est.): Fourth-quarter 2026 report and 2027 guidance. Shows whether comparable growth holds near the third quarter's 7.0% and how the Nutrition separation is reflected in 2027 guidance; this report settles the call.
What would change the view
A daily close above $127.42, the highest adjusted close of the past year (14 November 2025), which would show the shares leading the S&P 500; 2027 comparable sales growth guidance above 7.5% would also prove the call wrong.
What it trades with
Abbott trades with large-cap medical device and diagnostics peers. On 6 November 2026 Abbott fell 3.23% and Stryker 2.75% while Thermo Fisher rose 2.63% (TradingKey), so device sentiment drove the session more than any Abbott headline. Its own reports on 16 July 2026 and 21 October 2026 moved the shares more than sector news did. The Exact Sciences acquisition, closed 23 March 2026, links Cancer Diagnostics to oncology screening demand. Until the Nutrition separation completes, targeted by the end of 2027, earnings also carry consumer nutrition and infant-formula litigation exposure.
The evidence, claim by claim (8)
- Third-quarter 2026 sales were $13,013 million, up 14.5% reported and 7.0% comparable; adjusted diluted EPS was $1.42 against a $1.38–$1.46 guide. Abbott third-quarter 2026 results release (8-K Exhibit 99.1) · as of
- Full-year 2026 comparable sales growth guided to about 6.0%, down from the 6.5%–7.5% range reaffirmed on 16 July 2026; adjusted EPS guide narrowed to $5.50–$5.55 and fourth-quarter adjusted EPS guided to $1.62–$1.67. Abbott third-quarter 2026 results release (8-K Exhibit 99.1) · as of
- Third-quarter comparable growth by business: Nutrition 4.9%, Diagnostics 6.4%, Cancer Diagnostics 13.8%, Electrophysiology 15.5%, Diabetes Care 6.7%, Established Pharmaceuticals 8.4%. Abbott third-quarter 2026 results release (8-K Exhibit 99.1) · as of
- Executive Vice President Mary K. Moreland sold 3,500 shares in the open market at $116.00 on 5 November 2026. SEC Form 4 filed 6 November 2026 · as of
- Chairman and CEO Robert B. Ford exercised options on 398,832 shares and sold 398,832 shares at an average $115.85 on 25 August 2026. SEC Form 4 filed 27 August 2026 · as of
- BofA raised its Abbott price target to $125. Company news headline, 10 November 2026 · as of
- Abbott's UltiSynq defibrillation lead received FDA approval and CE Mark, based on the roughly 200-patient ASCEND CSP trial with a 97.5% three-month major complication-free rate. Diagnostic and Interventional Cardiology, 10 November 2026 · as of
- Abbott reported that the TECTONIC trial of its SonicForce coronary intravascular lithotripsy system met its primary safety and effectiveness endpoints. Abbott press release · as of
Sources
- ABBOTT LABORATORIES - Form 8-K - FY2026 · sec.gov
- dicardiology.com ·
- FDA approves Abbott’s new defibrillation lead for conduction system pacing · cardiovascularbusiness.com
- Abbott Laboratories Stock (ABT) Closed Down by 3.23% on Nov 6: What Investors Need To Know · tradingkey.com ·
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