Key Highlights

  • Abbott shares were trading up 5.43% at $115.34, against a prior close of $109.40.
  • One-year VERITAS data for the Amulet 360 occluder were positive.
  • TECTONIC data for the SonicForce coronary lithotripsy system were presented at TCT.
  • The stock trades above the average analyst price target near $118.
  • The Dividend Yield is 2.19%, with a forward P/E of 19.76.

TCT Data for Amulet 360 and SonicForce Give Abbott a Catalyst

Abbott (NYSE:ABT) shares were trading up 5.43% at $115.34 on Wednesday, with Volume below average. Company news helped, as positive one-year VERITAS data for the Amulet 360 left atrial appendage occluder and TECTONIC data for the SonicForce coronary lithotripsy system were presented at the TCT conference.

The device maker also benefited from a wider move after Democrats won control of Congress, which eased political uncertainty and lifted health stocks. Peers including Medtronic (NYSE:MDT) and Intuitive Surgical (NASDAQ:ISRG) advanced in the same session, and the Dow Jones Industrial Average was up about 2.9%.

Medical Devices Are Abbott’s Largest Segment, Led by FreeStyle Libre

Medical Devices is the largest of Abbott’s four segments at roughly 43% to 45% of revenue, and includes FreeStyle Libre glucose monitoring, heart devices such as MitraClip, and neuromodulation. The other segments are Diagnostics, Nutrition and Established Pharmaceuticals. The company has about 115,000 employees and annual Revenue near $44 billion.

Stock Trades Above Analyst Targets After October Target Trims

Several firms trimmed price targets after Abbott’s October earnings, and the stock now trades above the average target near $118, with consensus at Moderate Buy. The shares are about 12.6% below their 52-week high of $132.03 and about 41% above the low of $81.97.

Abbott trades at 19.76 times forward Earnings and 42.67 times trailing earnings, with trailing EPS of $5.21. The dividend yield is 2.19%.

Sector Rotation and Device Data Flow Set the Next Moves

Today’s jump combines company data and sector momentum, and the latter can reverse quickly if the policy trade fades. The next markers are further TCT data, device adoption trends and any reaction to the recent analyst target trims.