Section 1: Company Overview and Fundamentals

1.2 Company Overview:

Abbott Laboratories (NYSE: ABT) is a global healthcare company. The Company’s portfolio of technologies spans the spectrum of healthcare, with businesses and products in diagnostics, medical devices, nutritional and branded generic medicines. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 16.04% in the last three months as well as by 13.78% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 115.83 and 52-week low price of USD 89.67, with the current price inside a decent support range of USD 90.00-USD 100.00, from where the price has taken a support in the past. Levels of USD 95.00-USD 105.00 are key resistance , if broken the price is estimated to achieve both technical resistance levels.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 44.68, with expectations of a short-term upward momentum or some consolidation.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~32.58% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A., are the biggest shareholders, holding the maximum stake in the company at ~8.93% and ~5.05%, respectively.

1.4 Consistent dividend payments with impressive dividend yield:

Abbott (NYSE: ABT) has formally declared a quarterly common dividend of 51 cents per share. This dividend announcement underscores Abbott's enduring commitment to its shareholders and marks the 399th uninterrupted quarterly dividend issued by the company; a practice maintained since 1924. Shareholders on record as of October 13, 2023, will be entitled to receive this cash dividend, with the disbursement scheduled for November 15, 2023. It is noteworthy that Abbott has consistently augmented its dividend distribution for an impressive 51 consecutive years, demonstrating its unwavering dedication to delivering value to its investors. Additionally, Abbott's inclusion in the S&P 500 Dividend Aristocrats Index serves as confirmation of its status as a company that has continually enhanced its dividend payments for a minimum of 25 successive years.

1.5 Key Metrics

In comparison to industry medians, ABT demonstrates stronger financial performance as highlighted by various key metrics. ABT exhibits robust profitability with higher EBITDA Margin, Operating Margin, Pretax Margin, and Net Margin, illustrating its strong operational efficiency and profitability in the industry.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY23:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 16.04% in the last three months as well as by 13.78% in the past six months.
• The stock is leaning towards the lower band of its 52-week range of USD 115.83 and 52-week low price of USD 89.67, with the current price inside a decent support range of USD 90.00-USD 100.00, from where the price has taken a support in the past. Levels of USD 95.00-USD 105.00 are key resistance , if broken the price is estimated to achieve both technical resistance levels.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 44.68, with expectations of a short-term upward momentum or some consolidation.

 

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 24, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

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