Should You Invest in Abbott Laboratories?

PHOTO CREDIT: Abbott Laboratories

OVERVIEW

Why You Should?

2. Abbott Laboratories has a strong research and development program. This will benefit them in the future as the company continues to design new, life-saving medications. This was apparent when they were able to produce a rapid COVID-19 test in a short amount of time.

3. Abbott was founded in 1888 and has been through several economic downturns. Regardless of the economic time, the company was able to have stable sales due to the essential nature of the product that it sells. Because of this, it is both a safe and a fairly recession-proof investment.

4. Abbott Laboratories boasts strong growth year after year. The company has seen a rise in revenues and profits over the past couple of financial years regardless of any major event that has occurred. According to the graph below, Abbott Laboratories reported revenues of around 32 billion and profits of 3.7 billion for the financial year of 2019. Both of these metrics are lower in the financial year of 2018 when the company reported revenues of 30.6 billion and profits of 2.4 billion.

PHOTO CREDIT: Yahoo Finance

5. Abbott Laboratories sells a wide range of products. They sell everything from nutritional products to generic drugs, medical devices, and diagnostic tools like tests. This will benefit the company in the long term as its products always have some demand.

Why You Should Not?

2. The political landscape might also hurt Abbott’s profits in the future as both sides of the aisle look to reduce prices on drugs and further regulate big pharma.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.