Is Abbott’s January Pullback a Good Time to Buy?

ABT -1.10%

Key Points

• Abbott Laboratories’ January pullback looks driven more by sentiment than fundamentals, putting shares back near a prior accumulation zone.

• Quarterly results showed solid sales growth, improving margins, and faster adjusted earnings growth despite a revenue miss.

• A long dividend-growth track record and potential upside implied by analyst targets underpin the bullish rebound case.

• Interested in Abbott Laboratories? Here are five stocks we like better.

Abbott Laboratories' (NYSE: ABT) January 2026 price pullback is making its stock look attractively valued. The move, driven more by market angst and fear than by any real weaknesses, seems to be a knee-jerk overreaction that has launched the stock back into the buy zone.

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The zone in question aligns with market action from 2022 to 2024, when Abbott was recovering from its post-COVID-19 revenue contraction, during which institutions actively accumulated the stock.

Abbott Laboratories Growth Accelerates

The worst that can be said about Abbott Laboratories' Q4 results and guidance is that some metrics fell short of market expectations. However, revenue of $11.46 billion is up 4.5% from the prior year, margins improved, and adjusted earnings grew at an accelerated pace.

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Revenue growth fell short by several hundred basis points, but margin strength offset it, with adjusted earnings per share (EPS) up 12% and slightly above consensus.

Segmentally, the results revealed the strength of Abbott’s diversified healthcare portfolio.

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The Nutrition and Diagnostic segments contracted, led by a nearly 9% decline in Nutrition, but were offset by solid growth in Established Pharmaceuticals and Med Tech.

The pharma segment grew by 9%, driven by generics and emerging markets, and Med Tech by 12.3%, with strength in all sub-segments.

Margin news was also good, though it fell short of analyst forecasts.

A product mix shift, strength in Med Tech, and reduced COVID-19 sales were compounded by operational improvements, leaving margins ahead of forecasts. Looking forward, the company expects improvement to continue with earnings growing by another 10% in 2026, ahead of revenue growth, sufficient to sustain the capital return outlook.

Abbott’s capital returns are central to the buying opportunity. The company is a Dividend King, having increased its payout annually for more than 50 years, and has the capacity to continue this trend for many years to come. As it stands, the stock yields about 2.5% after its fall, and the company pays out less than 50% of the consensus earnings forecast, leaving room in its cash flow for share buybacks, another critical component that helps offset the impact of dilutive share-based compensation.

Analysts Point to Robust Rebound in Abbott Laboratories Stock

Some analysts expressed concerns about Abbott’s revenue miss, but no major rating or price target changes were issued the morning of the release. While concerns were present, the view is that this fundamentally healthy company can continue to return capital while reinvesting in growth, and the growth outlook is substantial.

The consensus share price target, as reported by MarketBeat, suggests the stock could rebound as much as 30%, potentially setting new all-time highs in the process, while even the low-end target forecasts some upside potential.

Abbott’s catalysts include the expanding Med Tech portfolio, AI integration across operations and products, widening margins, and acquisitions.

The acquisition of Exact Sciences is only one example, expanding its revenue and profit streams and its product pipeline.

Abbott’s stock price decline has been ugly and could potentially lead to a deeper decline. However, institutions bought throughout 2025 and are likely buyers now that prices are discounted.

Early indications show some support in the $105 to $110 range, but it is not confirmed. The risk is that ABT shares will fall to the low end of the target buy zone before rebounding, potentially hitting the $95 level or lower.

The article "Is Abbott’s January Pullback a Good Time to Buy? " was originally published by MarketBeat.