Medical devices and health care company, Abbott Laboratories (NYSE: ABT), is among the companies doing relatively well despite the pandemic. ABT stock performance during the similar timeframe has reflected it. The Covid-19 pandemic heavily impacted its core business of medical devices, yet the company navigated on changing the course according to the stream.
Abbott leveraged the growing demand for Coronavirus diagnostic products and indulged in its manufacturing and marketing. Catering to the demand for these devices for several tests during the pandemic has made the ABT stock continue to move upwards. However, the pattern was seen to go reverse in the recent past.
Company sales have seen a significant drop in Q1 2023. Last earnings report noted the loss of 18.1% in sales and dropped to $9.7 Billion. This changing course has affected company financials, and hence, the volatility followed in.
Abbott Laboratories has also faced issues related to safety concerns in its nutrition business. The dwindle of ABT stock price in the past months have also suffered due to those factors.
ABT stock price attained its highest peak of $142 in December 2021, the same time of Covid pandemic. Since then, it has struggled to keep up the pace and drop to its current price. At present, ABT stock price is trading at $107.22 after a slight decline of 1.65% in its value in the last intraday session.
The stock price is currently moving ahead within a zone and is positioned to sustain the sideways movement. ABT stock is at the point of conjunction with the 50- and 200-days EMA, and any significant move is also not expected at the moment. It has the next resistance to break at around $115 if it tried to move upwards, or else, if it could not generate the steam, then it would take support at $100.
Though Abbott and ABT stock price seems to struggle for time being, the distortions within the company related to Covid 19 is likely to end soon. The jump of 10% year over year in its organic sales suggests this.
Abbott Laboratories claims to have multiple opportunities for growth in the long-term. The continued research and development allows the company to develop more new medical devices according to the sector’s needs.
The company is also known for its consistent dividend where the upcoming one would be the 51st year in a row where payout is going to see an increase.
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The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/05/abbott-laboratories-nyse-abt-stock-in-position-prior-earnings/