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.
Just For You
A Dividend King on Sale: Is Abbott Labs a Healthcare Bargain?Author: Jeffrey Neal Johnson. Article Posted: 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.
For a moment…
Forget about Trump’s ties to Israel.
Forget about reports of Iran’s nuclear program.
Because my research has led me to believe we’re risking World War 3 with Iran for a completely different reason. Click here to find out what it is.
Abbott Laboratories’ stock price recently hit its 52-week low, closing just above $100 in the last trading days of March. The sharp downturn has left many wondering whether the foundation of this industry leader is cracking. A deeper look at Abbott’s situation suggests a potential disconnect between market sentiment and operational reality. The key question for long-term investors is: Is the market’s pessimism justified, or has a meaningful value opportunity emerged? Separating the Signal From the NoiseAbbott’s slide stems from two distinct pressures. The first is an internal headwind in its Nutrition segment. Abbott’s fourth-quarter 2025 earnings report showed a 9.1% organic sales decline in that division, driven primarily by market-share losses in the U.S. pediatric business and pricing dynamics that constrained volume. Management has been forthcoming about the issue and has outlined a clear turnaround plan: targeted price and promotion initiatives and a pipeline of at least eight new product launches in 2026, with a forecasted return to growth in the second half of the year. The second factor is external and broader: a significant rotation of capital across the market. In times of economic optimism, investors often shift funds away from defensive sectors such as the healthcare sector toward higher-beta areas like artificial intelligence (AI) and the energy sector in search of faster returns. That 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 navigates a short-term recovery, Abbott’s core businesses remain strong—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 provides a powerful counterweight to the isolated weakness in Nutrition; the company’s true health is most evident in these high-performing areas.
Medical Devices: This division is firing on multiple cylinders, driven by market-leading innovation in critical-care areas. Diabetes Care: The FreeStyle Libre franchise of continuous glucose monitors (CGM) continues to be a growth engine. The product line—allowing users to monitor glucose without routine fingersticks—generated over $7.5 billion in sales in 2025 and remains a primary driver of Abbott’s success. Cardiovascular Leadership: Abbott is a strong player in cardiovascular health. Its Electrophysiology business grew at a double-digit pace, while its Structural Heart business posted solid organic growth of 8.7%. This performance stems from a portfolio of best-in-class products, such as MitraClip and TriClip, and a pipeline of innovations that includes the recently FDA-approved Volt PFA System for treating atrial fibrillation. Abbott is also positioning itself for future growth through the acquisition of Exact Sciences, a leader in cancer screening and diagnostics best known for the non-invasive colon cancer test Cologuard. The deal would immediately expand Abbott’s presence in the fast-growing cancer diagnostics market, adding a high-growth vertical expected to contribute meaningfully to revenue over time. This bullish view is echoed by professional analysts. Wall Street maintains a Moderate Buy consensus rating on the stock, with an average 12-month price target of $135.47—implying upside of more than 30% from current levels and suggesting some analysts see the stock as undervalued. A Bedrock of Reliability for Income InvestorsFor long-term investors focused on income, Abbott’s dividend is a compelling feature. Abbott 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 shows a deep commitment to returning capital to shareholders through multiple market cycles. The recent decline in Abbott’s stock price has made the dividend yield more attractive for new investors. At current levels, Abbott yields about 2.5%, allowing investors to lock in a higher income rate from a historically reliable payer. The dividend appears secure: the payout ratio is roughly 68% of earnings, and the dividend accounts for only about 37% of cash flow—indicating Abbott generates more than enough cash to cover payments with room for future increases. A Disconnect Between Price and ValueCurrent market sentiment around Abbott seems out of step with the company’s underlying business. Temporary headwinds in a single division and a broad market rotation have weighed on the stock, yet Abbott’s primary growth engines are accelerating. Its dominant Medical Devices division continues to perform well, the dividend remains a reliable income source, and strategic catalysts like Exact Sciences could add a substantial new growth vertical. For investors with a long-term horizon, the present valuation highlights a meaningful gap between price and fundamental value—an opportunity worth considering. |
