North Chicago, Illinois-based Abbott Laboratories (ABT) discovers, develops, manufactures, and sells healthcare products. Valued at $232.4 billion by market cap, ABT is a global leader in the large and growing in-vitro diagnostic market and its products include pharmaceuticals, nutritional, diagnostics, and vascular products.

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ABT definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry. ABT offers a diverse range of healthcare products helping to mitigate risks and capture opportunities in various markets. With a global presence in over 160 countries, ABT can tap into different economic conditions. The company's strong focus on research and development (R&D) enables it to develop innovative products and technologies, giving it a competitive advantage.

Despite its notable strength, ABT slipped 5.4% from its 52-week high of $141.23, achieved on Mar. 4. Over the past three months, ABT stock declined 3.2%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 10.9% dip during the same time frame.

In the longer term, shares of ABT rose 18.1% on a YTD basis and climbed 31% over the past 52 weeks, outperforming XLV’s YTD losses of 3.6% and 7% over the last year.

To confirm the bullish trend, ABT is trading above its 200-day moving average since early August, 2024. The stock has been trading above its 50-day moving average since late July, 2024, experiencing some fluctuations.

Abbott's strong growth is driven by its innovative pipeline, including Freestyle Libre and Alinity systems. The company's agreement with Epic will enhance healthcare provider workflow by integrating Libre CGM data into electronic health records, improving efficiency and patient care. Abbott's optimistic outlook for 2025 is supported by its progress in biosimilars and strong market share in Adult Nutrition.

On Apr. 16, ABT shares closed up more than 2% after reporting its Q1 results. Its adjusted EPS of $1.09 topped Wall Street expectations of $1.07. The company’s revenue was $10.36 billion, failing to meet Wall Street forecasts of $10.42 billion. The company expects full-year adjusted EPS in the range of $5.05 to $5.25.

In the competitive arena of medical devices, Boston Scientific Corporation (BSX) has taken the lead over ABT, showing resilience with a 40% uptick over the past 52 weeks but lagged behind the stock with a 17.9% gain on a YTD basis.

Wall Street analysts are bullish on ABT’s prospects. The stock has a consensus “Strong Buy” rating from the 25 analysts covering it, and the mean price target of $143.14 suggests a potential upside of 7.2% from current price levels.