Abbott Laboratories: Undervalued or Market Already Factoring in Expectations for Future Growth?

Abbott Laboratories (ABT) shares have dropped 7% in the past month, but have gained 11% YTD. The company's long-term performance has been strong, with a 10% total return over the past year and 38% over three years. The current valuation suggests the company is trading at a 14% discount to its calculated fair value, driven by robust growth in branded generics and biosimilars in emerging markets. However, regulatory changes and global pricing pressures could impact long-term earnings.