ABT Should I Buy
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Abbott Laboratories (ABT) is not a strong buy at this moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has strong long-term prospects and a history of dividend growth, recent financial performance, analyst sentiment, and congressional trading activity suggest caution. The stock may stabilize in the long term, but current challenges in key business segments and lack of immediate positive catalysts make it less compelling for an impatient investor.
The MACD is positive and expanding, indicating a potential bullish trend. However, the RSI is neutral at 50.839, and moving averages are converging, suggesting no clear trend direction. The price is near the pivot level of 109.955, with resistance at 113.042 and support at 106.868.
Abbott's medical devices division is showing strong growth.
The company has increased its dividend for 54 consecutive years.
The Exact Sciences acquisition has cleared antitrust scrutiny, potentially boosting future growth.
Q4 financials revealed a significant decline in net income (-80.76% YoY) and EPS (-80.72% YoY).
Challenges in the Nutrition and Diagnostics segments are expected to persist in the first half of
Congress members have shown a cautious attitude, with 4 recent sale transactions and no purchases.
Analysts have lowered price targets, citing underperformance in Q4 and a weak 2026 revenue outlook.
In Q4 2025, revenue increased by 4.42% YoY to $11.46 billion, but net income dropped by 80.76% YoY to $1.776 billion. EPS also fell by 80.72% YoY to $1.02. Gross margin improved slightly to 53.38%, up 4.79% YoY.
Analysts have generally lowered their price targets, with a range of $120-$142, citing challenges in Nutrition and Diagnostics. However, many maintain Buy or Overweight ratings, expecting stabilization and growth in the long term.
