Abbott Laboratories: Dividend aristocrat with big discount

Abbott has had a couple of "boring" quarters: sales are growing in the 4-8% range, organic growth net of Covid tests is at the top end of estimates, management gives a consistent outlook and confirms the ambition to keep organic sales growth around 7.5-8.5% per year. In terms of a quality defensive title, this is exactly what one would want - no drama, steady development, good visibility.

But it doesn't look like that on the chart. The stock is currently trading around $84.30, at the low end of the 52-week range ($84.09-139.06), with a P/E of 23.61 and a P/S of around 3, with the 50-day average over $101 and the 200-day over $119 - the market has "moved the title significantly into the basement" after a series of weaker quarters and disappointing organic growth in late 2025/2026. Yet consensus fair prices and analysts' targets are around USD 130-143, well above current levels.

What's realistically happening at Abbott: Covid-free growth, improved margins, stable outlook

Covid testing has…