Is Abbott Laboratories (ABT) stock a good buy?

• Founded: Abbott Laboratories was established in 1888 by Dr. Wallace C. Abbott in Chicago, Illinois.
• Early Focus: Initially, the company focused on producing high-quality medicines, starting with a single product, a painkiller made from morphine.
• Innovation: Abbott was a pioneer in pharmaceutical research and development, introducing the first commercially available insulin in 1922.
• Expansion: Throughout the 20th century, Abbott expanded its product line to include diagnostics, medical devices, and nutrition products.
• Global Reach: Today, Abbott operates in over 160 countries, providing a wide range of healthcare solutions, including branded generics, specialty pharmaceuticals, and medical devices.
• Recent Achievements: In recent years, Abbott has been recognized for its advancements in diabetes care and rapid diagnostic testing, including COVID-19 tests.
• Mission: Abbott is committed to improving global health through innovative products and solutions, focusing on nutrition, diagnostics, medical devices, and branded generic medicines.

2. MOS (Margin Of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

• Summary: Overpriced
• Score: 28
• MOS: 1%

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3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Abbott Laboratories makes money:

• Diagnostics: Revenue from tests and equipment for detecting diseases and health conditions.
• Medical Devices: Earnings from devices used in surgeries, heart care, and other medical procedures.
• Nutrition Products: Sales of nutritional supplements and specialty foods for various health needs.
• Branded Generic Medicines: Income from branded versions of generic drugs, often for chronic conditions.
• Research and Development: Revenue from developing new healthcare products and technologies.
• Acquisitions: Profits from integrating and expanding through acquisitions of other companies.

Here are a few of the other companies that Abbott Laboratories has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.

• Alere Inc.
• St. Jude Medical
• FreeStyle Libre
• Abbott Vascular
• Abbott Diagnostics

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Abbott Laboratories stacks up against other companies.

1. Stryker Corporation.(SYK) – 89
2. Edwards Lifesciences Corporation.(EW) – 72
3. Penumbra, Inc.(PEN) – 72
4. Globus Medical, Inc.(GMED) – 67
5. Boston Scientific Corporation.(BSX) – 61
6. Abbott Laboratories.(ABT) 28

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5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.