Abbott Laboratories (NYSE:ABT)
Sep
24
Written by:
9/24/2008 9:54 PM
Abbott Laboratories
(NYSE:ABT)
This developer, manufacturer, and seller of healthcare
products nationally and internationally has held up well during the past six
months of turbulence in the markets.
By Steve Patterson
Six Month High and a
Channel
The six month chart shows some
early weakness down to the low $50 area for Abbott Labs’ stocks but since May
of 2008 the stock has rallied recently reaching a new six month high near $60.
The current range is between $56.50 and $60 and a breakout in either direction
would signal additional movement to the upside or the downside.
Fundamentals
The
fundamentals of the company are solid given the climate in the United States
and abroad. Earnings for the current year compared to a year ago are predicted
to increase 15.1%. Revenue is increasing for the same period with a similar
increase of 14.2%. The price to earnings ratio (P/E) is right around 22 and
therefore the stock is not overly expensive but close to the growth rate.
The Trade
Wait for an
additional 5% pullback and begin to build a position in Abbott. Their next
earnings release is scheduled for October 15th so you can hold the
position until the earnings week occurs. If there is a correction in the stock
or a major change in the business that signals a sell, exit the position
accordingly.