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Just For You Abbott Laboratories' October Price Plunge Is a Signal to BuyWritten by Thomas Hughes. Published 10/17/2025. 
Key Points - Abbott Laboratories' Q3 results did not catalyze a rally but also did not provide a reason to sell.
- Margin is solid, growth is present, and the capital return outlook is reliable.
- Analyst and institutional trends suggest these influential market groups will buy ABT on the dip.
Abbott Laboratories' (NYSE: ABT) October price plunge is a signal to buy, as analyst and institutional trends suggest they, too, will be buying the stock. Analyst trends revealed by MarketBeat data include increasing coverage with newly initiated ratings appearing within days of the Q3 earnings release. Coverage is rising, sentiment has firmed over the preceding two quarters, and price targets are moving higher. The consensus had forecast about a 10% gain ahead of the release — enough to reach a new all-time high — while the high-end range adds roughly another 10%. An unstoppable force is reshaping America — one so powerful it's already disrupting how we work, invest, and live. Porter Stansberry calls it The Final Displacement — a rare turning point that's only happened four times in human history, each one redefining entire eras. His new documentary reveals why this shift could trigger both immense loss and unprecedented opportunity, and what you can do to prepare before it accelerates. Click here to stream The Final Displacement free today The institutional group has been consistently buying this healthcare stock throughout the year. MarketBeat tracking shows institutions have purchased approximately $1.50 for every $1.00 sold over the past 12 months, and that buying accelerated in the back half of the year, reaching roughly $3.25 bought for each $1.00 sold as of mid-October. Their activity provides a solid support base — institutions own about 75% of the stock — and creates a tailwind for future price action.  The ABT chart reflects a market in a long-term uptrend that is consolidating ahead of its next significant move. The monthly view shows the stock pulling back from recent peaks but still in rebound mode, forming a Bullish Flag pattern after the October 2023 trend-line bounce and the price reversal confirmed earlier this year. Abbott's price action may consolidate at this level through year-end, but it appears set to reach higher prices in 2026, supported by growth, earnings quality, and capital returns. A move to new highs would be meaningful — potentially a roughly $30, or about 30%, increase. Abbott Laboratories Q3 Release Is No Reason to Sell This Stock Abbott Laboratories' Q3 release came in slightly below analysts' consensus, but it did not provide a reason to sell the stock. Revenue missed the consensus forecast by just 0.17%, yet the company still reported 6.9% revenue growth and maintained strong margins. Foreign exchange, which has been a headwind for many S&P 500 companies, turned into a tailwind for Abbott during the quarter, helping both revenue and earnings. Revenue growth was driven by strength in the U.S. and international markets, with international sales up 9.9% and growth across three primary reporting segments. Diagnostics was the weak link, down 7.8% organically — largely the result of lower COVID-19-related sales, which are not core to the long-term business. Other segments performed better, led by 12.5% organic growth in Medical Devices and 7.1% in Established Pharmaceuticals. Margin news was constructive: the company widened its adjusted operating margin by 40 basis points, producing leveraged income growth. Operating income rose 10.6% while net income grew 7.5%. Adjusted EPS came in at $1.30, in line with expectations and up about 7.5% year over year. The key takeaway is that Abbott's diversified business model sustains growth and solid margins, supporting its outlook for capital returns. Abbott Laboratories' Dividend Is Reliable and Growing Abbott Laboratories' dividend is reliable and is expected to grow at a high-single- to low-double-digit pace for the foreseeable future. The company is a Dividend King with more than 50 consecutive years of annual increases. It pays a payout ratio of about 45% of its earnings guidance and is projected to deliver significant earnings growth. Long-term consensus forecasts call for Abbott to grow earnings at a low-double-digit rate for at least the next five years — enough to support rising distributions without jeopardizing the company's financial flexibility or investments in growth. Its diversified product portfolio across diagnostics, medical devices, nutrition, and branded generics provides multiple revenue streams, helping to buffer the company against sector-specific slowdowns. With a strong balance sheet and consistent cash flow, Abbott is well-positioned to sustain both growth investments and increasing shareholder returns.
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