Abbott Laboratories (ABT) Down 7.2% — Should I Let It Go?
Abbott Laboratories (ABT) came under heavy pressure in the latest session, sliding 7.23% and losing $8.73 to close at $112.00 on the NYSE, down from a previous close of $120.73. The stock’s retreat was accompanied by a notable pickup in trading activity, with volume surging to 13.27 million shares, more than double its 90-day average of about 6.34 million. This combination of sharp price decline and elevated volume points to intensified selling interest, with ABT clearly losing ground in the near term and retreating further from recent levels.
From a longer-term perspective, the stock is now trading well below its 52-week high of $141.23 set on March 4, 2025, placing it roughly $29—or about 20%—under that peak. This reinforces the view that Abbott Laboratories has been in a sustained period of price weakness rather than just a minor pullback. Within the broader health care and medical technology space, sector peers such as Medtronic (MDT), HCA Healthcare (HCA), and McKesson (MCK) have not seen a comparable single-day percentage drop, leaving Abbott looking comparatively weaker on a short-term price basis. Overall, the latest action highlights a stock under pressure and retreating meaningfully from its prior highs, with sellers firmly in control for now.
Why Abbott Laboratories Price is Moving Lower
Abbott Laboratories shares are under pressure as investors reassess risk ahead of the company’s Q4 2025 earnings release and digest the sizable Exact Sciences acquisition. Despite forecasts for nearly 12% EPS growth and roughly 7.5% revenue growth year over year, the stock has fallen in recent sessions, slipping more than 1% even on a day broader markets advanced. That weakness suggests mounting concern that expectations may already be fully reflected in the valuation, with ABT trading at a premium forward P/E near 22. Any earnings miss, cautious 2026 guidance, or signal of slowing momentum could be punished given that premium, keeping near-term sentiment fragile.
The roughly $21 billion Exact Sciences deal is also a key overhang. Although management frames the transaction as accretive to growth, investors are wary of integration risk, potential balance sheet strain and execution challenges in combining diagnostics franchises like Cologuard and Oncotype DX into Abbott’s existing portfolio. Elevated trading volume relative to recent averages points to active repositioning as some shareholders lock in gains or step aside until there is more clarity on post-deal earnings power. At the same time, sector peers such as Medtronic, HCA Healthcare, and McKesson have offered alternative ways to gain health care exposure without near-term M&A uncertainty. Even a 6.8% dividend increase has not offset these headwinds, with recent price action indicating that investors are prioritizing deal risk, lofty expectations, and downside earnings surprises over incremental income and longer-term growth potential.
What is the Abbott Laboratories Rating - Should I Sell?
Weiss Ratings assigns ABT a B rating. Current recommendation is Buy. Even so, recent price pressure and several mediocre risk/reward components mean investors should approach with caution rather than complacency. A B (Buy) rating signals a generally favorable profile, but it does not eliminate downside risk, especially when sentiment turns against the broader Health Care sector or medical technology names.
Beneath the surface, Abbott benefits from the Excellent Efficiency Index and Excellent Solvency Index, supported by a 30.62% return on equity and a near 32% profit margin. Revenue growth of 6.90% and a forward P/E of 15.14 look reasonable. However, these strengths have not translated into standout stock performance, as shown by the Fair Total Return Index and Fair Volatility Index. In other words, the business fundamentals are strong, but shareholders have not been consistently rewarded for the risks they are taking.
The Good Growth Index signals a solid operational trajectory, yet the Fair Dividend Index and only average total return profile limit the case for aggressive new capital. Investors are being asked to accept meaningful price swings and an only middling payout profile in exchange for growth that, while respectable, is not exceptional for a company with this risk profile.
Within Health Care peers, Abbott’s B rating is in line with Medtronic plc (MDT, B) and HCA Healthcare, Inc. (HCA, B), but trails McKesson Corporation (MCK, A-). That gap underscores the concern: other names in the sector offer a stronger balance of risk and return. For existing holders, the rating does not demand an immediate sale, but it does argue against blind loyalty if the recent weakness deepens.
About Abbott Laboratories
Abbott Laboratories (ABT) is a global health care company with a diversified but sprawling portfolio across diagnostics, medical devices, nutritionals, and branded generic medicines. The company develops and markets a wide range of health care equipment and services, from blood and glucose monitoring systems to cardiovascular and neuromodulation devices. Its diagnostics franchise includes laboratory instruments and point‑of‑care systems used in hospitals and clinics, creating dependence on large institutional customers and group purchasing organizations that exert significant pricing pressure. In medical devices, Abbott competes aggressively in segments such as structural heart, vascular intervention, and diabetes management, facing entrenched rivals and rapid technology cycles that demand ongoing, costly innovation just to maintain relevance.
Abbott’s nutrition and branded generic pharmaceuticals businesses add further complexity. The nutrition unit sells infant formulas, adult nutrition drinks, and specialty products, where brand perception is critical and product recalls or quality issues can quickly erode trust. In emerging markets, its branded generics portfolio exposes the company to regulatory uncertainty, local competition, and currency volatility, all of which can constrain long‑term stability. Across its health care equipment and services footprint, Abbott’s breadth offers scale but also creates operational risk, as supply chain disruptions, product safety concerns, or regulatory actions in any one category can spill over and damage its broader reputation. The company’s diverse lineup and global reach do not eliminate these vulnerabilities; instead, they amplify the need for tight quality control, sustained R&D spending, and effective compliance just to defend its position in an intensely competitive health care landscape.
Investor Outlook
Despite its B (Buy) Weiss Rating, the latest sharp drop in Abbott Laboratories (ABT) warrants careful monitoring of how the stock behaves around recent support zones and whether selling pressure persists. Investors should watch for changes in sector sentiment, upcoming fundamental catalysts, and any shift in the underlying risk-reward profile that could affect the current Buy rating. See full rankings of all B-rated Health Care stocks inside the Weiss Stock Screener.
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