Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Special Report
A Dividend King on Sale: Is Abbott Labs a Healthcare Bargain?Reported by Jeffrey Neal Johnson. First Published: 4/7/2026. 
Key Points
- Abbott's Medical Devices division continues to accelerate, demonstrating the underlying strength within the company's largest business segment.
- Abbott's impressive history of consecutive dividend increases underscores its commitment to consistently rewarding long-term shareholders.
- Strategic acquisitions are positioning Abbott to lead in new high-growth healthcare sectors, securing a powerful pipeline for future expansion.
- Special Report: Elon’s “Hidden” Company
In the world of investing, stability is a prized commodity. Few companies embody that stability better than Abbott Laboratories (NYSE: ABT), a diversified healthcare powerhouse and a member of the elite dividend kings. For decades, investors have relied on Abbott for steady growth and dependable income. That long-standing reputation makes its recent performance all the more striking.
Since 2009, the Dividend Machine has posted a total return of 7,056.47% - turning a $10,000 stake into more than $700,000 while the broader market struggled through multiple downturns.
With a 93% win rate since launch, this dividend-focused strategy has kept investors cashing steady checks through every crash. Bill Spetrino has released a free report outlining how to position for income no matter what the market does next. Claim your free report and see how the Dividend Machine works
Abbott Laboratories’ stock price recently touched its 52-week low, closing just above $100 in the last trading days of March. This sharp downturn has left many wondering whether the foundation of this industry leader is cracking. A closer look at Abbott Laboratories’ position reveals a possible disconnect between market sentiment and operational reality, raising a key question: Is the market’s pessimism justified, or has a significant value opportunity emerged for long-term investors? Separating the Signal From the NoiseA stock like Abbott doesn't fall without reason. Its recent decline stems from two distinct pressures. The first is an internal headwind in its Nutrition segment. Abbott Laboratories’ fourth-quarter 2025 earnings report showed a 9.1% organic sales decline in this division, driven mainly by market-share losses in the U.S. pediatric business and pricing dynamics that constrained volume. Management has acknowledged the challenge and outlined a clear turnaround plan. CEO Robert B. Ford described price and promotion initiatives and a pipeline of at least eight new product launches in 2026 intended to reignite volume growth, with a return to growth expected in the second half of the year. The second factor is external and broader in scope. The market is experiencing a rotation of capital: in periods of economic optimism, investors often shift funds away from stable, defensive sectors like the healthcare sector into higher-beta areas, such as artificial intelligence (AI) and the energy sector, seeking faster returns. This broad trend has pressured many fundamentally sound healthcare companies, including Abbott, for reasons largely unrelated to their individual performance or long-term prospects. Abbott’s Engine Room Is Running StrongWhile the Nutrition segment works through a short-term recovery, Abbott Laboratories' core remains robust, led by its largest and most profitable division: Medical Devices. That segment is accelerating, posting 10.4% organic growth in the most recent quarter. Abbott’s diversified model helps offset the isolated weakness in nutrition, and the company's health is most evident in these high-performing areas.
Medical Devices: The Medical Devices business is gaining momentum, powered by market-leading innovation in critical care areas. Diabetes Care: The FreeStyle Libre franchise of continuous glucose monitors (CGM) continues to drive growth. This product line, which lets users track glucose without routine fingersticks, generated over $7.5 billion in sales in 2025 and remains a primary growth engine for Abbott. Cardiovascular Leadership: Abbott is a significant player in cardiovascular health. Its Electrophysiology business grew at a double-digit rate, while Structural Heart posted strong organic growth of 8.7%. This performance reflects a portfolio of best-in-class products—such as MitraClip and TriClip for minimally invasive valve repair—and a pipeline of innovations, including the recently FDA-approved Volt PFA System for treating atrial fibrillation. Abbott is also positioning for future growth through the acquisition of Exact Sciences. Exact Sciences, best known for its non-invasive colon cancer test Cologuard, is a leader in cancer screening and diagnostics. The deal would immediately enhance Abbott's footprint in the fast-growing market for cancer diagnostics, adding a new, high-growth vertical that could meaningfully contribute to revenue for years to come. This bullish outlook is not limited to management. Wall Street maintains a Moderate Buy consensus rating on the stock. The average 12-month price target is $135.47, implying potential upside of over 30% from current levels and suggesting many analysts see the stock as undervalued. A Bedrock of Reliability for Income InvestorsFor long-term investors focused on reliable income, Abbott’s dividend is its standout feature. Abbott Laboratories is a member of the S&P 500 Dividend Kings, an exclusive group of companies that have increased their dividend for at least 50 consecutive years. That track record demonstrates a long-standing commitment to returning capital to shareholders through multiple market cycles. The recent decline in Abbott’s stock price has a direct benefit for new investors: a higher dividend yield. At current levels, Abbott offers a yield of about 2.5%, allowing investors to lock in a higher rate of income from this historically reliable payer. The dividend also appears well supported. Abbott’s dividend payout ratio is about 68% of earnings, and dividends account for roughly 37% of cash flow, indicating the company generates ample cash to cover payments with room for future increases. A Disconnect Between Price and ValueCurrent market sentiment around Abbott Laboratories seems out of step with its business fundamentals. Temporary headwinds in one division and broad market rotations have weighed on the stock, yet Abbott’s core growth engines are accelerating. The Medical Devices division continues to deliver strong results, the dividend remains a dependable income source, and strategic catalysts like the Exact Sciences deal could unlock new growth. For investors with a long-term horizon, the present valuation highlights a meaningful gap between price and intrinsic value—an opportunity worth considering. |
