Abbott Laboratories Shares Drop 1.84 as Analysts Clash on Value Amid $850M Volume 155th in Market Activity

Abbott Laboratories (ABT) fell 1.84% on July 31, with a trading volume of $0.85 billion, ranking 155th in market activity. Analyst sentiment remained mixed, with upgrades from Jefferies and Bank of America citing strong fundamentals and undervaluation, while Wells Fargo and Raymond James trimmed price targets amid cautious outlooks. CEO Robert Ford described the post-earnings selloff as an overreaction, emphasizing confidence in the company’s long-term growth drivers, including its medical devices division and pipeline.

Recent analyst activity highlighted diverging views: Jefferies raised its price target to $145, Bank of America reiterated a “buy” rating, and William Blair upgraded to “strong-buy.” Conversely, Wells Fargo cut its target to $142, and BTIG reduced its estimate to $145, reflecting reduced visibility on near-term gains. The stock’s 4-week decline of 9% triggered debates over its valuation, with some analysts noting oversold technical conditions and others cautioning against overextended optimism.

The Caviar Cruise screening strategy identified ABT as a high-quality investment, citing a 7.19% 5-year revenue CAGR, 19.76% ROIC, and a debt-to-free-cash-flow ratio of 1.99. Profitability metrics, including a 31.89% net margin and 10-year dividend growth of 11.4%, further underscored its appeal. However, a P/E ratio of 26.23 raised questions about valuation sustainability amid sector-wide volatility.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to July 2025, outperforming the benchmark by 137.53%. This momentum-driven approach capitalized on liquidity surges in high-volume names, though its effectiveness remains tied to evolving market dynamics.