Is Abbott Laboratories Stock Built to Withstand More Downside?
Abbott Laboratories (ABT) stock is down 10.0% in a day. The recent slide reflects renewed concerns around a revenue miss and slowing growth in its diagnostics and nutrition segments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Abbott Laboratories stands today.
- Size: Abbott Laboratories is a $189 Bil company with $44 Bil in revenue currently trading at $108.61.
- Fundamentals: Last 12 month revenue growth of 6.4% and operating margin of 17.6%.
- Liquidity: Has Debt to Equity ratio of 0.07 and Cash to Assets ratio of 0.09
- Valuation: Abbott Laboratories stock is currently trading at P/E multiple of 13.5 and P/EBIT multiple of 21.9
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell ABT Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ABT stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ABT stock falls another 20-30% to $76 – can investors comfortably hold on? Turns out, the stock has been more resilient than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Buy or Sell Abbott Laboratories Stock?
- How Did Abbott Fare In Q4 And What Lies Ahead?
- Pay Less, Gain More: RMD Tops Abbott Laboratories Stock
- Why RMD Could Outperform Abbott Laboratories Stock
- Better Value & Growth: RMD, BDX Lead Abbott Laboratories Stock
- RMD, BDX Top Abbott Laboratories Stock on Price & Potential
2022 Inflation Shock
- ABT stock fell 36.2% from a high of $141.46 on 27 December 2021 to $90.19 on 12 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $140.22 on 3 March 2025 , and currently trades at $108.61
| ABT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.2% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- ABT stock fell 31.6% from a high of $91.86 on 22 January 2020 to $62.82 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 April 2020
| ABT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -31.6% | -33.9% |
| Time to Full Recovery | 24 days | 148 days |
2018 Correction
- ABT stock fell 11.7% from a high of $74.27 on 3 December 2018 to $65.56 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 February 2019
| ABT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -11.7% | -19.8% |
| Time to Full Recovery | 50 days | 120 days |
2008 Global Financial Crisis
- ABT stock fell 30.6% from a high of $27.92 on 16 September 2008 to $19.38 on 1 May 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 March 2012
| ABT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.6% | -56.8% |
| Time to Full Recovery | 1,053 days | 1,480 days |
Feeling jittery about ABT stock? Consider portfolio approach.
Smart Investing Begins With Portfolios
Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.