#2 - Abbott Labs (NYSE:ABT)
Abbott Labs (ABT) -While the world waits for a coronavirus vaccine, the strategy for reopening the economy is centered around testing. More specifically, we need a simple blood test that will identify individuals who have recovered from the virus. By recovered, it means they were exposed to the novel coronavirus even if they were asymptomatic. The thinking is that those individuals will have developed at least some kind of immune response.
Abbott Laboratories (NYSE:ABT) is at the forefront of this initiative. The company has come up with a point-of-care coronavirus test that received emergency use authorization (EUA) from the U.S. Food and Drug Administration. The test is the fastest of its kind to date. It can provide a positive result in as soon as five minutes, and a negative results in 13 minutes. The test is considered a point-of-care test because it is conducted from a device that is approximately the size of a toaster allowing it to be used in a variety of locations.
The testing will need to be conducted both before and throughout the reopening of the economy. But that’s not the only driver for Abbott Labs. The company’s core business is about the manufacturing of medical devices. These are used in procedures that are being postponed due to the sheltering at home policies that are in place in much of the nation. Once patients are allowed to reschedule these procedures, they will regardless of the status of the economy.
ABT stock is basically flat for the year, but it is off its low and up nearly 40% in the last three weeks.
About Abbott Laboratories
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon.
Read More - Current Price
- $114.23
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $130.71 (14.4% Upside)
