- Abbott: Three Supercycles, Mispriced At A 10-Year Low
May 11, 2026 · seekingalpha.com
Abbott Laboratories trades at a decade low of 17.7x forward earnings despite 13.2% Q1 2026 Medical Devices growth and a 54-year dividend streak. Three underappreciated catalysts—Exact Sciences synergy, CMS CGM expansion, and Nutrition margin recovery—could drive $1.27–$1.73 incremental EPS by 2028–2029. Consensus underestimates ABT's commercial leverage, with distribution synergies and CMS reimbursement expansion offering asymmetric upside not priced into current models.
- A Look At Abbott Laboratories (ABT) Valuation After Mixed Q1 Results And Baby Formula Legal Ruling
May 11, 2026
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
Abbott Laboratories (ABT) is back in focus after mixed first quarter results, a cut to its 2026 adjusted EPS outlook tied to the Exact Sciences acquisition, and a large baby formula legal verdict that raised fresh questions.
See our latest analysis for Abbott Laboratories.
The recent mix of weaker first quarter sentiment, the Exact Sciences related EPS guidance cut and the baby formula verdict has coincided with a sharp reset in expectations. The share price is down 15.9% over 30 days and total shareholder return is down 34.8% over one year, pointing to fading momentum despite ongoing product approvals such as the Ultreon 3.0 AI software and new board appointments.
If Abbott’s recent volatility has you thinking about diversification, this could be a good moment to look at other healthcare AI opportunities using our stock screener for 35 healthcare AI stocks
With the stock down sharply over 1 year and trading well below consensus analyst targets, yet facing legal and earnings headwinds, investors may need to consider whether Abbott now appears undervalued or whether the market is already pricing in its future growth.
Most Popular Narrative: 26% Undervalued
Abbott Laboratories' most followed narrative, according to NateF, places fair value at $113.88 versus the last close at $84.32. This points to a sizable valuation gap that stands in contrast to the recent share price slide.
Abbott Laboratories is a compelling growth investment with defensive qualities, supported by its market leadership, innovation-driven strategy, and diversified portfolio. While its premium valuation may limit near-term upside, the company’s strong fundamentals, exposure to high-growth markets, and commitment to shareholder returns make it a solid choice for investors with a medium- to long-term horizon. Strategic entry points and careful monitoring of growth drivers and market dynamics will be key to maximizing returns.
Read the complete narrative.
Want to understand why this narrative still sees upside after a 34.8% one year total return decline? It leans heavily on long run profit compounding, steady revenue expansion across several segments, and a margin profile that the narrative expects to hold up even as product mix changes. Curious which of those pillars really drives that $113.88 fair value gap against today’s price? The full story connects those assumptions to a discount rate and future earnings profile that the market may not be focusing on yet.
Story Continues
Result: Fair Value of $113.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this thesis could weaken if legal liabilities expand further or if legal and regulatory issues begin to constrain margins and future earnings assumptions.
Find out about the key risks to this Abbott Laboratories narrative.
Next Steps
If the mixed signals in this story leave you unsure, that is a useful signal in itself. Take a moment to weigh both sides by reviewing the 4 key rewards and 2 important warning signs
Looking for more investment ideas?
If Abbott has sharpened your focus on quality, do not stop here. Use targeted screeners to surface other stocks that could suit your portfolio goals.
Target potential mispricings by scanning for companies flagged as 48 high quality undervalued stocks that might warrant a closer look. Prioritise resilience by checking out 71 resilient stocks with low risk scores if you want businesses with lower overall risk scores on your radar. Hunt for underfollowed opportunities through the screener containing 22 high quality undiscovered gems before the rest of the market pays attention.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ABT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- What This Fund’s $4 Million Apollo Commercial Real Estate Finance Sale Could Signal About CRE Risk
May 10, 2026
Key Points
Chicago-based Cura Wealth Advisors sold 386,000 shares of ARI; the estimated trade size was $4.02 million based on quarterly average prices. Meanwhile, the quarter-end ARI position value declined by $3.35 million, reflecting both trading activity and valuation shifts. The transaction represented 1.8% of 13F AUM for the quarter.10 stocks we like better than Apollo Commercial Real Estate Finance ›
Chicago-based Cura Wealth Advisors disclosed in a May 8, 2026, SEC filing that it sold 386,000 shares of Apollo Commercial Real Estate Finance(NYSE:ARI), an estimated $4.02 million trade based on quarterly average pricing.
What happened
According to a recent SEC filing dated May 8, 2026, Cura Wealth Advisors reduced its holdings in Apollo Commercial Real Estate Finance by 386,000 shares. The estimated value of the trade was approximately $4.02 million, based on the average closing price during the first quarter of 2026. The ARI stake ended the quarter at 437,233 shares, totaling $4.62 million in value.
What else to know
The fund trimmed its ARI position, which now accounts for 2.07% of 13F reportable assets under management.Top five holdings after the filing:
NYSE:ABBV: $63.72 million (28.5% of AUM)NYSE:ABT: $23.58 million (10.6% of AUM)NYSE:FSK: $23.06 million (10.3% of AUM)NASDAQ:MFIC: $6.90 million (3.1% of AUM)NYSEMKT:VT: $5.57 million (2.5% of AUM)As of May 7, 2026, ARI shares were priced at $10.91, up 16% over the past year, compared to a roughly 30% gain from the S&P 500.
Company Overview MetricValuePrice (as of market close 2026-05-07)$10.91Market capitalization$1.45 billionRevenue (TTM)$263.3 millionNet income (TTM)$126.96 million
Company Snapshot
Apollo Commercial Real Estate Finance originates, acquires, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States.It operates as a mortgage real estate investment trust (REIT), generating income primarily through interest on commercial real estate loans and related investments.It serves institutional investors and commercial property owners seeking real estate financing solutions.
Apollo Commercial Real Estate Finance, Inc. is a mortgage REIT focused on providing commercial real estate debt financing solutions across the United States. Its business model centers on originating and managing a diversified portfolio of commercial real estate loans to generate income for shareholders.
What this transaction means for investors
This sale ultimately looks like a cautious repositioning around commercial real estate exposure rather than a complete loss of confidence in Apollo Commercial Real Estate Finance. Cura Wealth Advisors kept a meaningful stake after the trim, but reducing the position from 1.4% of assets to less than 0.3% suggests the firm may be dialing back risk in a sector that continues to face pressure from higher rates and refinancing uncertainty.
As for fundamentals, Apollo Commercial Real Estate Finance’s latest earnings were relatively stable. The company reported first-quarter net income of $0.16 per diluted share and distributable earnings of $0.22 per share. Plus, the company disclosed no realized investment losses during the quarter, which matters given ongoing investor concerns around commercial property values and office exposure.
Still, the broader backdrop remains difficult for mortgage REITs. Even with shares up about 16% over the last year, ARI has materially lagged the S&P 500, and investors remain wary of how long elevated financing costs could pressure borrowers.
Should you buy stock in Apollo Commercial Real Estate Finance right now?
Before you buy stock in Apollo Commercial Real Estate Finance, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apollo Commercial Real Estate Finance wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- What This Fund’s $4 Million Apollo Commercial Real Estate Finance Sale Could Signal About CRE Risk
May 10, 2026
Chicago-based Cura Wealth Advisors disclosed in a May 8, 2026, SEC filing that it sold 386,000 shares of Apollo Commercial Real Estate Finance(NYSE:ARI), an estimated $4.02 million trade based on quarterly average pricing.
What happened
According to a recent SEC filing dated May 8, 2026, Cura Wealth Advisors reduced its holdings in Apollo Commercial Real Estate Finance by 386,000 shares. The estimated value of the trade was approximately $4.02 million, based on the average closing price during the first quarter of 2026. The ARI stake ended the quarter at 437,233 shares, totaling $4.62 million in value.
What else to know
The fund trimmed its ARI position, which now accounts for 2.07% of 13F reportable assets under management. Top five holdings after the filing:
NYSE:ABBV: $63.72 million (28.5% of AUM) NYSE:ABT: $23.58 million (10.6% of AUM) NYSE:FSK: $23.06 million (10.3% of AUM) NASDAQ:MFIC: $6.90 million (3.1% of AUM) NYSEMKT:VT: $5.57 million (2.5% of AUM) As of May 7, 2026, ARI shares were priced at $10.91, up 16% over the past year, compared to a roughly 30% gain from the S&P 500.
Company Overview
Metric Value Price (as of market close 2026-05-07) $10.91 Market capitalization $1.45 billion Revenue (TTM) $263.3 million Net income (TTM) $126.96 million
Company Snapshot
Apollo Commercial Real Estate Finance originates, acquires, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. It operates as a mortgage real estate investment trust (REIT), generating income primarily through interest on commercial real estate loans and related investments. It serves institutional investors and commercial property owners seeking real estate financing solutions.
Apollo Commercial Real Estate Finance, Inc. is a mortgage REIT focused on providing commercial real estate debt financing solutions across the United States. Its business model centers on originating and managing a diversified portfolio of commercial real estate loans to generate income for shareholders.
What this transaction means for investors
This sale ultimately looks like a cautious repositioning around commercial real estate exposure rather than a complete loss of confidence in Apollo Commercial Real Estate Finance. Cura Wealth Advisors kept a meaningful stake after the trim, but reducing the position from 1.4% of assets to less than 0.3% suggests the firm may be dialing back risk in a sector that continues to face pressure from higher rates and refinancing uncertainty.
As for fundamentals, Apollo Commercial Real Estate Finance’s latest earnings were relatively stable. The company reported first-quarter net income of $0.16 per diluted share and distributable earnings of $0.22 per share. Plus, the company disclosed no realized investment losses during the quarter, which matters given ongoing investor concerns around commercial property values and office exposure.
Still, the broader backdrop remains difficult for mortgage REITs. Even with shares up about 16% over the last year, ARI has materially lagged the S&P 500, and investors remain wary of how long elevated financing costs could pressure borrowers.
Story Continues
Should you buy stock in Apollo Commercial Real Estate Finance right now?
Before you buy stock in Apollo Commercial Real Estate Finance, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apollo Commercial Real Estate Finance wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.
What This Fund's $4 Million Apollo Commercial Real Estate Finance Sale Could Signal About CRE Risk was originally published by The Motley Fool
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- What to Know About This Fund’s $3 Million Blackstone Mortgage Trust Sale Amid Office Stress
May 10, 2026
Key Points
Chicago-based Cura Wealth Advisors sold 155,210 shares of BXMT in the first quarter; the estimated trade size was $2.99 million (based on quarterly average prices). Meanwhile, the quarter-end position value declined by $2.97 million, reflecting share sale and price change. The move represents a 1.34% change in 13F reportable assets under management. Post-sale, Cura held 32,300 BXMT shares valued at $618,545.10 stocks we like better than Blackstone Mortgage Trust ›
On May 8, 2026, Chicago-based Cura Wealth Advisors disclosed in a Securities and Exchange Commission filing that it sold 155,210 shares of Blackstone Mortgage Trust(NYSE:BXMT), with the estimated transaction value at $2.99 million based on quarterly average pricing.
What happened
According to a filing with the Securities and Exchange Commission dated May 8, 2026, Cura Wealth Advisors reduced its holdings in Blackstone Mortgage Trust by 155,210 shares. The estimated value of shares sold was $2.99 million, calculated using the average closing price for the quarter. The value of the position at quarter-end fell by $2.97 million, reflecting both the trade and market movement.
What else to know
This was a sale, leaving Blackstone Mortgage Trust at 0.28% of 13F reportable assets under management as of March 31, 2026.Top holdings after the filing:
NYSE:ABBV: $63.72 million (28.5% of AUM)NYSE:ABT: $23.58 million (10.6% of AUM)NYSE:FSK: $23.06 million (10.3% of AUM)NASDAQ:MFIC: $6.90 million (3.1% of AUM)NYSEMKT:VT: $5.57 million (2.5% of AUM)As of May 7, 2026, BXMT shares were priced at $19.15, roughly flat over the past year and underperforming the S&P 500, which is instead up about 30%.The position was previously 1.4% of the fund's assets as of the prior quarter.
Company overview MetricValueRevenue (TTM)$585.1 millionNet income (TTM)$103.63 millionDividend yield9.82%Price (as of market close May 7, 2026)$19.15
Company snapshot
Blackstone Mortgage Trust originates senior loans secured by commercial real estate properties across North America, Europe, and Australia, generating revenue primarily from interest income.It operates as a mortgage real estate investment trust (REIT), earning income by deploying capital into commercial mortgage loans and distributing a significant portion of taxable income as dividends.It serves institutional borrowers, property owners, and developers seeking large-scale commercial real estate financing solutions.
Blackstone Mortgage Trust is a leading mortgage REIT focused on originating and managing senior commercial real estate loans globally.
What this transaction means for investors
Blackstone Mortgage Trust’s latest earnings report showed a mixed picture that might explain why a wealth advisory like Cura would choose to trim its stake. BXMT posted a first-quarter net loss of $6.3 million, or $0.04 per share, though distributable EPS prior to realized gains and losses came in at $0.49 per share, slightly above the company’s $0.47 dividend. Management emphasized that 98% of the loan portfolio remains performing, with more than half tied to residential and industrial properties rather than office buildings. The firm also maintained roughly $1 billion in liquidity and no corporate debt maturities until 2027.
But even though Blackstone Mortgage Trust has stabilized considerably from the worst of the office-property fears, the stock has still badly lagged the broader market, and some investors may simply be losing patience waiting for sentiment to recover. The nearly 9.4% annualized dividend yield is attractive, but mortgage REITs remain highly sensitive to interest rates, property values, and refinancing conditions, all of which long-term investors should keep in mind.
Should you buy stock in Blackstone Mortgage Trust right now?
Before you buy stock in Blackstone Mortgage Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blackstone Mortgage Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- What to Know About This Fund’s $3 Million Blackstone Mortgage Trust Sale Amid Office Stress
May 10, 2026
On May 8, 2026, Chicago-based Cura Wealth Advisors disclosed in a Securities and Exchange Commission filing that it sold 155,210 shares of Blackstone Mortgage Trust(NYSE:BXMT), with the estimated transaction value at $2.99 million based on quarterly average pricing.
What happened
According to a filing with the Securities and Exchange Commission dated May 8, 2026, Cura Wealth Advisors reduced its holdings in Blackstone Mortgage Trust by 155,210 shares. The estimated value of shares sold was $2.99 million, calculated using the average closing price for the quarter. The value of the position at quarter-end fell by $2.97 million, reflecting both the trade and market movement.
What else to know
This was a sale, leaving Blackstone Mortgage Trust at 0.28% of 13F reportable assets under management as of March 31, 2026. Top holdings after the filing:
NYSE:ABBV: $63.72 million (28.5% of AUM) NYSE:ABT: $23.58 million (10.6% of AUM) NYSE:FSK: $23.06 million (10.3% of AUM) NASDAQ:MFIC: $6.90 million (3.1% of AUM) NYSEMKT:VT: $5.57 million (2.5% of AUM) As of May 7, 2026, BXMT shares were priced at $19.15, roughly flat over the past year and underperforming the S&P 500, which is instead up about 30%. The position was previously 1.4% of the fund's assets as of the prior quarter.
Company overview
Metric Value Revenue (TTM) $585.1 million Net income (TTM) $103.63 million Dividend yield 9.82% Price (as of market close May 7, 2026) $19.15
Company snapshot
Blackstone Mortgage Trust originates senior loans secured by commercial real estate properties across North America, Europe, and Australia, generating revenue primarily from interest income. It operates as a mortgage real estate investment trust (REIT), earning income by deploying capital into commercial mortgage loans and distributing a significant portion of taxable income as dividends. It serves institutional borrowers, property owners, and developers seeking large-scale commercial real estate financing solutions.
Blackstone Mortgage Trust is a leading mortgage REIT focused on originating and managing senior commercial real estate loans globally.
What this transaction means for investors
Blackstone Mortgage Trust’s latest earnings report showed a mixed picture that might explain why a wealth advisory like Cura would choose to trim its stake. BXMT posted a first-quarter net loss of $6.3 million, or $0.04 per share, though distributable EPS prior to realized gains and losses came in at $0.49 per share, slightly above the company’s $0.47 dividend. Management emphasized that 98% of the loan portfolio remains performing, with more than half tied to residential and industrial properties rather than office buildings. The firm also maintained roughly $1 billion in liquidity and no corporate debt maturities until 2027.
But even though Blackstone Mortgage Trust has stabilized considerably from the worst of the office-property fears, the stock has still badly lagged the broader market, and some investors may simply be losing patience waiting for sentiment to recover. The nearly 9.4% annualized dividend yield is attractive, but mortgage REITs remain highly sensitive to interest rates, property values, and refinancing conditions, all of which long-term investors should keep in mind.
Story Continues
Should you buy stock in Blackstone Mortgage Trust right now?
Before you buy stock in Blackstone Mortgage Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blackstone Mortgage Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.
What to Know About This Fund's $3 Million Blackstone Mortgage Trust Sale Amid Office Stress was originally published by The Motley Fool
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- Trump says unaware of a plan to fire FDA commissioner
May 9, 2026
Anna Moneymaker/Getty Images News
Amid multiple reports suggesting that President Donald Trump has signed off on a plan to oust FDA commissioner Marty Makary, Trump said late Friday that he is completely unaware of such a proposal.
The Wall Street Journal first reported Trump’s plans on Friday, noting that senior White House officials have become increasingly convinced that Makary, a former pancreatic surgeon at Johns Hopkins University, should depart after a tumultuous period leading the FDA. [https://seekingalpha.com/news/4590068-trump-to-fire-fda-commissioner-marty-makary-wsj]
Leaving the White House Friday evening, Trump dismissed the idea in response to a question from a reporter. “Are you going to fire him?” the reporter asked. “I’ve been reading about it, but I know nothing about it,” the President said.
Makary, nominated by Trump to lead the FDA in November 2024, has overseen an agency that has suffered several high-profile departures in recent months.
Richard Pazdur, the director of the FDA's Center for Drug Evaluation and Research and a 26-year veteran at the agency, sought retirement in December, just weeks after Makary picked him to lead the unit. [https://seekingalpha.com/news/4527734-fda-top-drugs-official-pazdur-retiring-shortly-after-starting]
Vinay Prasad, the former head of the FDA’s Center for Biologics Evaluation and Research, left the agency last month, marking his second departure in less than eight months.
MORE ON PHARMA MAJORS
* Pfizer Inc. (PFE) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4898600-pfizer-inc-pfe-q1-2026-earnings-call-transcript]
* Pfizer Q1 Earnings Review: Stuck In Second Gear, But Dividend Helps [https://seekingalpha.com/article/4898517-pfizer-q1-earnings-review-stuck-in-second-gear-but-dividend-helps]
* Pfizer Inc. 2026 Q1 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4898522-pfizer-inc-2026-q1-results-earnings-call-presentation]
* HHS officials considered banning SSRI antidepressants - report [https://seekingalpha.com/news/4590187-hhs-officials-considered-banning-ssri-antidepressants-report]
* FDA food head eyed as acting commissioner - report [https://seekingalpha.com/news/4590184-fda-food-head-eyed-acting-commissioner-report]
- Abbott Laboratories: Mispriced Growth Behind Near-Term Noise?
May 9, 2026
This article first appeared on GuruFocus.
Abbott Laboratories stands as a cornerstone of the global healthcare landscape, possessing a legacy that spans over 135 years of continuous operation and a financial track record characterized by relentless dividend growth and strategic agility. As the organization navigates the post-pandemic era, it has transitioned from a critical provider of infectious disease diagnostics to a leader in chronic disease management and precision medicine. The release of the fourth-quarter 2025 financial results underscores a period of tactical repositioning, where the company is balancing the exceptional growth of its medical device portfolio against the structural headwinds in its nutritional division and the multi-billion-dollar integration of Exact Sciences. This analysis evaluates Abbott's fundamental business architecture, the nuances of its recent operational performance, and the underlying investment thesis that continues to attract institutional interest despite recent valuation compression.
Diversification as a Defensive Moat
Is ABT fairly valued? Test your thesis with our free DCF calculator.
The operational strength of Abbott Laboratories is rooted in its four-pillared business model, which segments the enterprise into Medical Devices, Diagnostics, Established Pharmaceuticals (EPD), and Nutrition. This structural diversification acts as an internal hedge; while the high-margin, innovation-driven medical device segment captures the market's growth premium, the consumer-facing nutrition and branded generic pharmaceutical segments provide a consistent, defensive cash flow profile. This "quadrant" approach allows the company to maintain a steady growth trajectory even when specific verticals face regulatory or macroeconomic challenges.
The company's global reach is equally vast, with operations in over 160 countries. This international footprint is a critical component of Abbott's competitive advantage, particularly in the Established Pharmaceuticals Division, where the company focuses exclusively on emerging markets. By avoiding the price-capped mature markets of the U.S. and Western Europe for generics, Abbott captures the rising demand for reliable, high-quality medication in countries like India, where EPD has achieved consistent double-digit growth. In the high-tech segments, such as Medical Devices, the global presence ensures that innovations like the FreeStyle Libre system can be rapidly scaled across diverse reimbursement environments, maximizing the return on R&D investments.
Story Continues
Decoding the Fourth Quarter of 2025
The fourth quarter of 2025 presented a complex narrative of operational resilience set against top-line pressures. Abbott reported total net sales of $11.459 billion, an increase of 4.4% on a reported basis and 3.0% on an organic basis. When excluding the impact of COVID-19 testing-related sales, which continued their terminal decline, organic growth reached 3.8%. Despite this steady growth, the top-line result was a miss compared to analyst expectations of approximately $11.8 billion, leading to a temporary contraction in the share price.Abbott Laboratories: Mispriced Growth Behind Near-Term Noise?
The divergence between the revenue miss and the bottom-line strength is the defining characteristic of this quarter. Adjusted diluted EPS grew 12% to $1.50, successfully meeting market expectations and demonstrating management's ability to defend profitability through aggressive margin management. The operating margin expansion to 25.8%, a 150-basis-point improvement, was particularly noteworthy given the persistent inflationary pressures and the costs associated with the Exact Sciences acquisition. This expansion reflects a disciplined approach to P&L leverage, where the company is successfully shifting its mix toward higher-margin medical devices while simultaneously optimizing the cost structure in its foundational businesses.
The Medical Device Growth Engine
Medical Devices remained the primary engine of value creation for Abbott in the final months of 2025. The segment recorded sales of $5.675 billion, representing a 12.3% reported increase and 10.4% organic growth. This performance marked the 12th consecutive quarter of double-digit organic growth, a streak that distinguishes Abbott from many of its large-cap medtech peers.
FreeStyle Libre continuous glucose monitoring (CGM) system continues to be the dominant force in the portfolio. In Q4, CGM sales grew 12.2% organically to $2.0 billion.13 For the full year 2025, Libre sales surpassed the $7.5 billion mark, marking the third year in a row where the product added more than $1 billion in incremental revenue. The strategic focus is now shifting toward the massive opportunity in the non-insulin-using Type 2 diabetes population. Management is preparing for an expansion of CMS coverage for these patients in the first half of 2026, which could significantly increase the total addressable market for CGM technology. Furthermore, the launch of Lingo, an over-the-counter CGM for health-conscious consumers, represents Abbott's foray into the bio-wearable market, aiming to leverage medical technology for general wellness.
The electrophysiology (EP) sub-segment is undergoing a technological shift toward Pulsed Field Ablation, a safer and more precise method for treating atrial fibrillation (AFib). Abbott has positioned itself as a disruptor in this space with the FDA approval of the Volt PFA System and the CE Mark for the TactiFlex Duo ablation catheter. The company's "toolbox" strategy, offering physicians a choice between radiofrequency and PFA energy within the same catheter system, is designed to capture market share from incumbents who lack this flexibility. EP sales grew double-digits in both the U.S. and international markets during the quarter, signaling a strong reception for these new technologies.
Abbott's structural heart portfolio, which includes the Navitor TAVR valve and the TriClip for tricuspid regurgitation, achieved double-digit growth fueled by new product launches and expanded indications. In rhythm management, the Aveir leadless pacemaker has been a standout performer, growing 12% in the quarter. With only a 10% penetration in the $5 billion global pacemaker market, the leadless category represents a significant long-term growth vertical as it addresses the complication risks associated with traditional lead-based systems.
Volume Growth through Nutrition Segment Recovery
The Nutrition segment, historically a source of stability, was the primary detractor from Abbott's top-line performance in late 2025. Worldwide nutrition sales fell 8.9% on a reported basis and 9.1% organic. This decline was driven by a 13.2% drop in U.S. sales, where the pediatric business faced challenges including the loss of a major WIC contract and broader market share erosion.
Management has been transparent about the mechanism behind this downturn. Post-pandemic inflation led to higher manufacturing costs, which the company passed on to consumers through higher prices. However, this pricing power eventually reached a point of diminishing returns, where price sensitivity suppressed volume growth. To rectify this, Abbott has implemented a "reignition" strategy focused on price and promotion initiatives intended to regain market share, even at the cost of short-term revenue growth. A robust pipeline of eight new products in the next year is expected to support this recovery, with management forecasting a return to growth for the division in the second half of 2026.
The Diagnostic Segment's Evolution
The Diagnostics segment reported a sales decline of 2.5% reported and 3.6% organic in Q4. However, this figure is heavily distorted by the anticipated roll-off of COVID-19 testing, which plummeted from $176 million in the prior-year quarter to just $89 million in late 2025. When stripping out these volatile pandemic-era revenues, the underlying business shows a healthier trajectory.
The Core Laboratory Diagnostics division, the segment's long-term growth driver, grew 5.3% reported and 3.6% organic in the quarter. Excluding the impact of the challenging operating environment in China, where volume-based procurement (VBP) policies have squeezed pricing, Core Lab growth was 7%. The Alinity automation platform remains the central competitive advantage here, as it allows hospitals to consolidate their testing onto a single, highly efficient system, creating high switching costs and a steady stream of recurring revenue from consumables.
The most transformative strategic action in the diagnostics vertical is the acquisition of Exact Sciences, which officially closed on March 23, 2026. The $23 billion deal marks Abbott's definitive entry into the $60 billion U.S. cancer screening and precision oncology market. By acquiring Cologuard (the leading non-invasive colorectal cancer test) and Oncotype DX (breast cancer treatment guidance), Abbott is adding a high-growth vertical that is immediately accretive to its organic sales growth.
The intrinsic value of this acquisition lies in the synergy between Exact Sciences' product innovation and Abbott's global commercial scale. Exact Sciences' sales have historically been concentrated in the United States. By utilizing Abbott's massive international distribution network across 160 countries, the company can accelerate the adoption of cancer screening tools in emerging and developed markets where cancer incidence is rising but early detection tools are underutilized. Furthermore, the potential to host Exact Sciences' molecular assays on the Alinity platform could transform the workflow for hospitals globally, further entrenching Abbott as the preferred partner for complex diagnostics.
Branded Generics in Emerging Markets
The Established Pharmaceuticals Division (EPD) continues to be an underappreciated pillar of Abbott's business model. In Q4 2025, the segment grew 9.0% reported and 7.0% organic. This marked the fifth consecutive year that EPD delivered organic growth exceeding 7%, a level of consistency rarely seen in the generics industry.
Abbott's success in EPD is a result of its deliberate decision to avoid the commoditized, price-sensitive generic markets of the United States. Instead, the company focuses on a portfolio of branded generics in high-growth emerging markets including India, Brazil, Russia, and Southeast Asia. In these regions, consumers and healthcare providers often prefer branded versions of generic drugs due to concerns about quality and consistency. By branding its generics, Abbott captures a price premium and builds significant brand equity with physicians. Looking forward, EPD is expanding into biosimilars in emerging markets, targeting the fastest-growing generic segment and positioning itself to capture the long-term trend toward biologic medicines in the developing world.
Forward Guidance and 2026 Outlook
For the full year 2026, management has issued an outlook that implies a re-acceleration of the business. Abbott projects organic sales growth in the range of 6.5% to 7.5%. This guidance includes the anticipated recovery of the nutrition business in the second half of the year and the initial incremental sales from the Exact Sciences acquisition.
The company's ability to meet these targets will depend heavily on its continued margin expansion. Abbott is targeting 50 to 70 basis points of annual operating margin improvement, driven by gross margin expansion as the product mix shifts toward high-tech devices and oncology diagnostics. While the acquisition of Exact Sciences will be dilutive to adjusted EPS by approximately $0.20 in 2026, the long-term accretion to both the top line and gross margins is expected to outweigh this near-term pressure.
Valuation Analysis
The Sum-of-the-Parts Framework
To understand Abbott's true worth, we must move beyond the blended multiple. As a diversified conglomerate, Abbott houses businesses with vastly different growth profiles and capital requirements. By applying peer-group multiples to the estimated earnings contribution of each segment, we can determine the enterprise's intrinsic value.
Medical Devices: The Innovation Engine (Premium Multiple)
Medical Devices is Abbott's crown jewel, contributing $21.39 billion in 2025 revenue. With the FreeStyle Libre CGM system achieving its third consecutive year of $1 billion+ incremental growth, this segment rivals pure-play medtech innovators.
Peer Comparison: Stryker (SYK) and Boston Scientific (BSX) trade at forward P/Es ranging from 20x to 22.1x.
Segment EBIT Contribution: Based on historical margins and segment momentum, we estimate this unit contributes approximately 55% of corporate net income.
Diagnostics & Life Sciences: The Oncology Pivot (High Multiple)
With the closing of the $23 billion Exact Sciences deal in March 2026, Abbott now controls the $60 billion U.S. cancer screening market.
Peer Comparison: High-performance life sciences peers like Danaher (DHR) and Thermo Fisher (TMO) trade at 21.0x to 22.5x forward earnings.
Segment EBIT Contribution: Diagnostics and Life Sciences represent approximately 20% of normalized net income post-acquisition.
Nutrition: The Defensive Staple (Discounted Multiple)
These segments represent the mature "staple" side of Abbott. Nutrition is currently in a "reignition" phase to regain market share, while EPD continues to deliver steady 7%+ organic growth in emerging markets.
Peer Comparison: Best compared to consumer staples like Nestle (22x P/E) or Danone (18x P/E). Emerging generic drug peers like Viatris trade much lower (~5.5x), but Abbott's "branded generic" model in high-growth territories justifies a premium over commoditized generics.
Implied Value: We apply a conservative 15x multiple to reflect the current volume challenges in Nutrition.
At a current market capitalization of approximately $145 billion, Abbott trades at a significant discount to its peer-weighted components. If an investor buys the entire business today at 16x forward earnings, they are essentially paying a fair price for the Nutrition and EPD segments, while acquiring the high-growth, high-multiple Medical Device and Oncology segments at a 20-25% discount relative to their pure-play medtech peers.
Intrinsic Value: Beyond the Market Multiple
Independent of market sentiment, a 2-stage Free Cash Flow to Equity (FCFE) model provides a grounded estimate of Abbott's worth. With trailing twelve-month free cash flow of $7.26 billion and analyst projections reaching $11.46 billion by 2028, the discounted value of these future flows points to an intrinsic value of approximately $136.14 per share.
At a current price of ~$85, investors are purchasing the business at a 35% discount to its cash-generative power. The "conglomerate discount" appears to have reached an extreme, where the market has over-emphasized short-term headwinds in Nutrition while underestimating the compounding power of the Exact Sciences integration.
Two Paths to Value Realization
The value can be unlocked through two distinct strategic paths:
Path A: Operational Execution and the Oncology Halo
If Abbott successfully integrates Exact Sciences and achieves the projected $100 million in annual synergies by 2028, the blended corporate growth rate will naturally accelerate. As the Medical Device and Diagnostics segments come to represent a larger portion of the total revenue mix, the market may "naturally" re-rate the company higher to reflect its shift toward being a high-tech healthcare innovator rather than a diversified conglomerate.
Path B: Structural Unlock (The "GE/Danaher" Precedent)
If the conglomerate discount persists, management has a proven playbook for unlocking value: separation. Precedent exists within the company's own history; the 2013 spin-off of AbbVie unlocked massive shareholder value by separating the high-growth proprietary drug pipeline from the stable base business. Other industrials and healthcare peers like General Electric and Danaher have successfully utilized spin-offs to allow individual segments to trade at their "true" pure-play multiples. Path B suggests that even without market cooperation, Abbott possesses the structural flexibility to realize sum-of-the-parts value.
Guru Sentiment and Institutional Flows
The movement of top-tier institutional investors (gurus) provides critical context for the recent stock price volatility. During the second half of 2025, there was a notable divergence in how major hedge funds and asset managers viewed the ABT opportunity.
T. Rowe Price Investment Management: Doubled down on Abbott, adding 9.4 million shares (+112.4%) to its portfolio in Q3 2025.
UBS Asset Management: Increased its position by 64.0%, adding 8.16 million shares.
Morgan Stanley: Added 3.4 million shares, representing a 9.7% increase in its stake.
Invesco Ltd.: Increased its holding by 51.0%, adding 4.7 million shares.
The aggressive buying by T. Rowe Price and UBS, both value-oriented institutional managers, indicate a belief that the market is overreacting to the nutrition headwinds and underestimating the long-term value of the Exact Sciences acquisition.
JPMorgan Chase & Co: Conducted a massive reduction, removing 9.92 million shares (-25.2%) from its portfolio.
Polen Capital Management: Reduced its position by 3.2 million shares (-30.5%).
The exit by JPMorgan may reflect a broader sector rotation or concerns about the near-term dilutive impact of the Exact Sciences merger on GAAP earnings. Furthermore, internal insider activity has been exclusively selling, with CFO Philip Boudreau and SVP Eric Shroff selling a combined 7,136 shares over the last six months. While insider sales can be motivated by various personal reasons, the lack of insider buying during the recent dip is a factor for cautious investors to monitor.
Relative Execution: Why Abbott Outperforms in a Crowded Field
The core of the bull case for Abbott is its relative execution. Unlike pure-play medtech companies that are vulnerable to single-market shifts (e.g., Edwards Lifesciences' reliance on TAVR), Abbott's diversified model allows it to absorb shocks. In Q4 2025, the exceptional performance of the medical device segment (10.4% organic growth) more than offset the temporary softness in nutrition.
When compared to its peers, Abbott's execution in the diabetes space is particularly superior. The Libre 3 system has maintained its market-leading position through continuous iteration and a focus on affordability and user experience, consistently outgrowing competitors. In Electrophysiology, the decision to offer a "toolbox" approach rather than a single technology has allowed Abbott to navigate the PFA transition more effectively than those who committed purely to one energy source.
Conclusion
The core of the investment thesis for Abbott Laboratories is not that "the multiple might go up," but that the current price fails to reflect the reality of the business's components. At 18.5x forward earnings, investors are paying for the stability of a Nutrition and Branded Generic business while receiving a world-class Medical Device innovator and a leading Precision Oncology platform as a "free" bonus.
While the five-year per-share growth has been limited, the forward-looking guidance for 2026, projecting 7% organic sales growth and 10% adjusted EPS growth, signals a re-acceleration. Whether through flawless execution (Path A) or potential future structural separation (Path B), the sum-of-the-parts value of Abbott Laboratories far exceeds its current market price. For the long-term investor, Abbott represents a rare opportunity to acquire a high-quality, innovation-driven "Danaher-like" business at a significant conglomerate discount.
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- Abbott Laboratories Is On Sale, Don't Overlook It
May 9, 2026 · seekingalpha.com
Abbott Laboratories is trading at a 27% discount to fair value, offering a compelling entry point for long-term investors. ABT's Medical Devices and Diagnostics segments drive robust growth, with the Exact Sciences acquisition adding market-leading oncology diagnostics. Consensus forecasts 9.1% annual EPS growth through 2028, supporting continued 7%-8% dividend growth and a 54-year streak.
- Tandem Diabetes Care Q1 Earnings Call Highlights
May 9, 2026
Tandem Diabetes Care logo
Key Points
Interested in Tandem Diabetes Care, Inc.? Here are five stocks we like better. Tandem Diabetes Care posted record first-quarter results, with more than 29,000 pump shipments worldwide and $247 million in sales. U.S. sales rose 7% to $161 million, while international sales hit a company-record $86 million. The company has begun its PayGo pharmacy-channel transition, with formulary coverage rising to about 40% and early adoption still limited. Management said the rollout is on track, though it is creating some near-term pressure on sales as the new reimbursement model ramps up. Tandem is advancing a busy product pipeline, including Android compatibility for Mobi, FDA clearance for Control-IQ+ in pregnant women with type 1 diabetes, and upcoming integrations with Abbott Libre 3 Plus and Dexcom G7 15-day sensors. It also plans to file for Mobi Tubeless and remains on track for a pivotal study for its first fully closed-loop system.
Tandem Diabetes Care (NASDAQ:TNDM) reported record first-quarter pump shipments and sales for 2026, while reaffirming its full-year outlook as the diabetes technology company advances a shift toward pharmacy-channel reimbursement, expands direct international operations and prepares several product launches.
President and CEO John Sheridan said the company delivered “strong financial and operational performance” in the quarter and is focused on modernizing its commercial operations, reshaping its U.S. business model and introducing new technologies. Chief Financial Officer Leigh Vosseller said Tandem achieved new first-quarter records with more than 29,000 pump shipments worldwide and $247 million in sales.
Record Q1 Shipments and Sales
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Vosseller said U.S. pump shipments exceeded 19,000, representing approximately 10% year-over-year growth. Renewals accounted for more than 50% of shipments, while new starts were primarily multiple daily injection patients, representing about two-thirds of new customers.
U.S. sales totaled $161 million, up 7% year over year and the company’s highest first-quarter U.S. sales total. Vosseller said U.S. results included an approximately $1 million headwind from adoption of the company’s PayGo pharmacy model and slight pressure in infusion set sales related to shortages from a key supplier.
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International sales totaled $86 million, up 3% year over year and the highest international sales quarter in company history, aided in part by favorable currency dynamics. Tandem shipped more than 10,000 pumps internationally. Vosseller noted that the prior-year first quarter benefited by about $5 million from the timing of distributor orders, creating a tougher comparison.
Story Continues
PayGo Pharmacy Transition Begins
Tandem began executing contracts in March for its pay-as-you-go, or PayGo, model in the pharmacy channel, covering both t:slim and Mobi pump supplies. Sheridan said the transition changes how healthcare providers prescribe Tandem products, how the company services customers and how orders are processed and fulfilled.
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The company said formulary coverage has increased to approximately 40%. Vosseller said fewer than 5% of customers ordered a pump through their pharmacy benefit in the first few weeks of the rollout, and less than 5% of the installed base purchased supplies through the channel. Pharmacy sales represented 6% of U.S. sales in the quarter.
Vosseller said Tandem still expects about $350 per month per patient for supply orders under the model, though she described the figure as a modeling assumption given the early stage of the transition and varying rebate structures in contracts. She said the company remains on pace with its pharmacy access goals for the year.
Product Pipeline and Launches Advance
Sheridan highlighted several product and regulatory updates. In March, Tandem Mobi became fully available for use with Android smartphones in the U.S., expanding access beyond iOS users. Sheridan said Android represents “a big opportunity” and a meaningful addition to the portfolio.
In April, the company received FDA clearance for Control-IQ+ for use in pregnant women with type 1 diabetes, making the t:slim X2 and Mobi the first and only commercially available automated insulin delivery systems cleared for pregnancy in the U.S., according to Sheridan. He said the company is also awaiting CE mark for the indication in Europe.
Tandem is preparing to launch Abbott FreeStyle Libre 3 Plus integration with t:slim in select European countries in the second quarter, with broader rollout through the year. The company also plans to begin commercial rollout of Tandem Mobi outside the U.S. in the second quarter and upgrade t:slim and Mobi for compatibility with Dexcom’s G7 15-day sensor.
Sheridan said Tandem plans to file a 510(k) submission in the second quarter for Mobi Tubeless, an infusion site option for the existing Mobi pump that would allow users to switch between tubed and tubeless wear on one platform. He described it as Tandem’s first tubeless pump offering and said the company remains on track to start a pivotal study this year for its first fully closed-loop system.
Margins Improve as Guidance Is Reaffirmed
Tandem reported non-GAAP gross margin of 55% in the quarter, up nearly five percentage points year over year and the company’s highest first-quarter gross margin. Vosseller said the improvement reflected pricing discipline and product cost improvements.
Operating expenses were $154 million, essentially flat year over year, as a slight reduction in research and development spending offset increased commercial investments. Adjusted EBITDA was approximately 1% of sales, and operating margin improved to negative 7% of sales. The company generated $5 million in free cash flow.
Tandem also completed a convertible debt financing in February, yielding net proceeds of $276 million at 0% interest. The company ended the quarter with $570 million in total cash and investments.
For 2026, Tandem reaffirmed its guidance for worldwide sales of $1.065 billion to $1.085 billion, including U.S. sales of $730 million to $745 million and international sales of $335 million to $340 million. The company expects full-year gross margins of 56% to 57% and adjusted EBITDA of 5% to 6% of sales.
For the second quarter, Tandem expects worldwide sales of approximately $255 million, including U.S. sales of about $175 million and international sales of about $80 million. Vosseller said second-quarter margins are expected to remain consistent with the first quarter.
Infusion Set Shortages Remain a Near-Term Issue
Sheridan said Tandem continues to work through infusion set shortages caused by capacity challenges at a supplier, which began in the fourth quarter and continued into the first quarter. He said the shortages affect only a small number of SKUs, but the impact on affected customers and healthcare providers is significant.
The company is working with the supplier on what Sheridan described as near-daily calls and is offering alternatives where possible, including different lengths or colors. He said the issue may not be resolved for “a quarter or two,” though Tandem expects to see progress in the second half of the year.
Vosseller said the impact was modest in the first quarter in both the U.S. and international markets, and Tandem has factored a similar level of impact into second-quarter expectations.
About Tandem Diabetes Care (NASDAQ:TNDM)
Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.
The company's flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.
The article "Tandem Diabetes Care Q1 Earnings Call Highlights" was originally published by MarketBeat.
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