Abbott Laboratories poised to end in red after six-session rally

Abbott Laboratories (NYSE:ABT) was on track to snap six consecutive sessions of gains as the stock dropped 2.29% to $131.21 during Monday’s afternoon trading.

The drugmaker gained 5.49% in the previous six sessions. On a YTD basis, Abbott has risen by more than 15% while in the past year it added 24.27% compared to a 20% rise in the broader markets.

ABT’s rise came after it closed 1.84% lower on July 31.

Last month, Jefferies upgraded the stock to Buy from Hold after its Q2 results and updated guidance, noting that the market’s reaction was “overly punitive” and presenting what analysts see as an attractive entry point despite temporary headwinds.

The company guided Q3 EPS in the range of $1.28–$1.32, which was slightly below the $1.33 consensus. However, analysts at the brokerage considered these pressures, such as declines in COVID testing and the impact of China’s VBP on diagnostics, to be temporary.

Looking at Seeking Alpha’s quant rating, the stock has a Hold rating with a score of 3.14 out of 5. ABT has been rated an A+ for profitability, but is dragged down by an F grade for valuation.

However, Seeking Alpha and Wall Street analysts share a consensus rating of Buy.

Earlier this month, Seeking Alpha analyst Sensor Unlimited issued a Buy call over the stock, expressing optimism over its dividend payout and fair valuation.

It expressed confidence in the company, arguing that short-term challenges such as tariffs and drug price controls do not materially affect Abbott’s long-term competitive moat.

“The underlying moat across its core business segments remains intact, in my view. I also expect the moat to be further augmented by a cycle of new product launches from its pipeline in the coming years,” the analyst added.