Is ABT a buy after its Q3 2024 performance?

Abbott Laboratories (ABT) exhibits strong growth potential, and its Q3 2024 performance supports a "buy" recommendation for several reasons:

1. Robust Growth in Key Financial Metrics:
   • ABT reported a net income of $1.65 billion and total revenue of $10.64 billion for Q3 2024. The diluted EPS was $0.94, which is a significant figure considering the 479.12% year-over-year growth.
   • The company's growth rates are impressive, with a net income growth rate of 478.98% and a revenue growth rate of 7.16%. This indicates a strong operational performance and market demand for its products.

2. Positive Market Response and Guidance Raise:
   • ABT's stock price closed at $131.35 on March 27, 2025, reflecting investor confidence in its performance.
   • The company has raised its full-year guidance, forecasting organic sales growth of 9.5% to 10% and adjusted EPS between $4.61 and $4.71. This optimistic outlook suggests management's confidence in continued growth.
   • ABT's Q2 performance was also strong, with adjusted EPS of $1.14, exceeding analyst expectations. This consistency across quarters is a positive indicator.

3. Strong Segmental Performance: ABT's MedTech division showed particular strength, with a 10% year-over-year growth and significant contributions from the diabetes segment. This is a positive signal, as the MedTech segment is a key driver of the company's growth.
4. Institutional Confidence: Institutional investors have shown interest, with some adjustments to their positions but overall a high level of ownership This suggests that ABT is seen as a stable and potentially lucrative investment.
5. Analyst Ratings and Price Targets: Analysts have provided mixed ratings, with a consensus target price of $121.00, indicating potential upside from the current price. The average analyst rating is "Moderate Buy," which is a positive signal.

In conclusion, ABT's Q3 2024 performance, coupled with its raised guidance and strong segmental growth, supports a "buy" recommendation. Investors should consider the company's continued momentum and potential for further growth, especially in its MedTech division. However, it's important to monitor the impact of competitive pressures and potential litigation risks.