Abbott Laboratories stock forecast today
$132.50
5.90% upModerate purchase
Based on 17 analyst ratings
| High expectations | $149.00 |
|---|---|
| Average expectations | $132.50 |
| Low expectations | $117.00 |
Abbott Laboratories stock forecast details
Indicates forecasts and technical procedures Abbott Laboratories New York Stock Exchange: APT It will be led by healthcare names like Johnson & Johnson New York Stock Exchange: GNG Higher in 2025. While both produced a strong quarter, Abbott Laboratories outperformed and has a more robust outlook. The outlook is for Abbott’s growth to continue above the Q4 pace of 7.2% in 2025, with year-over-year growth accelerating and margin widening. Johnson & Johnson’s results will be sluggish by comparison.
Analysts’ reaction to Q4 results highlights the potential for outperformance. Abbott analysts are raising price targets and boosting sentiment, while JNJ analysts are doing the opposite. The takeaway is that JNJ stock has both headwinds and ABT tailwinds to drive its stock price. Consensus in mid-January suggests a 10% upside in 2025, while revisions point to a possible move to the upper range, adding another 12.5% to the forecast.
Assuming Abbott continues to perform well, chances are good that analyst trends will continue to lift market sentiment as the year progresses.
Sentiment towards J&J is not bad, just less bullish, and the extreme price action gives Abbott strengths. MarketBeat.com tracks multiple revisions, and 100% lowered their price target to a range below consensus. However, sentiment is firm when holding with an upward bias; 45% rate the stock when buying and 55% when waiting without selling. The potential upside runs in the single-digit to low-double-digit range this year.
Growth and guidance are the critical factors in ABT and JNJ outcomes
Both companies reported good quarters, and JNJ outperformed compared to analyst consensus. However, JNJ’s results are tepid, with overall growth of just 5.1% compared to Abbott’s 7.2%, and earnings quality and guidance are also factors. Sector-wise, JNJ’s Medical Technology sector was the most important but underperformed, while the Innovative Medicine sector outperformed.
Abbott’s fourth-quarter revenue fell short of consensus due in part to weakness in COVID-19 testing, but organic growth was in the double digits, and all segments contributed. Coincidentally, Abbott’s medical devices segment advanced with a 14% increase, driven by a strong product portfolio.
The final results are good and sufficient to maintain capital return expectations. However, once again, Johnson & Johnson’s outperformance in the fourth quarter was overshadowed by tepid guidance and poor performance compared to Abbott. Both revenue and profit growth are expected this year, but Abbott’s will be more significant and likely to beat early 2025 estimates.
They are growing organically across all sectors, and the effects of Covid-19 are fading quickly. The pipeline is strong, with 15 new opportunities and several product launches expected across the product lines.
JNJ value or Abbott quality; Investors win either way
Johnson & Johnson stock forecast today
$170.06
15.87% upHe catches
Based on 17 analyst ratings
| High expectations | $215.00 |
|---|---|
| Average expectations | $170.06 |
| Low expectations | $150.00 |
Johnson & Johnson stock forecast details
Both returns are attractive but attract different types of inventors. Johnson & Johnson offers high-yielding value with a 3.4% dividend yield of just 13x earnings, while Abbott’s yield is lower and its valuation is higher. The trade-off is expectations of rising stock prices, which is even stronger in Abbott’s case.
Abbott’s value could increase by 10% to 20% in 2025, and estimates are rising, while Johnson & Johnson’s 10% gain is questionable. Analysts could lower their price targets as the year progresses and keep this stock near long-term lows.
Technical action shows a bottom for JNJ stock, limiting downside risks. On the other hand, the Abbott chart looks strong, with price action set to break above a critical resistance point. Critical resistance is located at the top of the trading range and is an important starting point when exceeded. The market could continue to retest the 2021 highs in this scenario and then rally to new highs later in the year or in 2026.
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