Abbott Laboratories Price To Sales vs. Profit Margin

ABT Stock  MXN 2,360  56.20  2.33%   
Based on Abbott Laboratories' profitability indicators, Abbott Laboratories may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Abbott Laboratories' ability to earn profits and add value for shareholders.
For Abbott Laboratories profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Abbott Laboratories to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Abbott Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Abbott Laboratories's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Abbott Laboratories over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy Abbott Stock please use our How to Invest in Abbott Laboratories guide.
Please note, there is a significant difference between Abbott Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Abbott Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbott Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Abbott Laboratories Profit Margin vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Abbott Laboratories's current stock value. Our valuation model uses many indicators to compare Abbott Laboratories value to that of its competitors to determine the firm's financial worth.
Abbott Laboratories is number one stock in price to sales category among its peers. It also is number one stock in profit margin category among its peers . The ratio of Price To Sales to Profit Margin for Abbott Laboratories is about  539.35 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Abbott Laboratories by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Abbott Laboratories' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Abbott Profit Margin vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Abbott Laboratories

P/S

 = 

MV Per Share

Revenue Per Share

 = 
85.65 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Abbott Laboratories

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.16 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Abbott Profit Margin Comparison

Abbott Laboratories is currently under evaluation in profit margin category among its peers.

Abbott Laboratories Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Abbott Laboratories, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Abbott Laboratories will eventually generate negative long term returns. The profitability progress is the general direction of Abbott Laboratories' change in net profit over the period of time. It can combine multiple indicators of Abbott Laboratories, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company was founded in 1888 and is headquartered in Abbott Park, Illinois. ABBOTT LABORATORIES operates under Medical Devices classification in Mexico and is traded on Mexico Stock Exchange. It employs 103000 people.

Abbott Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Abbott Laboratories. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Abbott Laboratories position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Abbott Laboratories' important profitability drivers and their relationship over time.

Use Abbott Laboratories in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abbott Laboratories position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abbott Laboratories will appreciate offsetting losses from the drop in the long position's value.

Abbott Laboratories Pair Trading

Abbott Laboratories Pair Trading Analysis

The ability to find closely correlated positions to Abbott Laboratories could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abbott Laboratories when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abbott Laboratories - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abbott Laboratories to buy it.
The correlation of Abbott Laboratories is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abbott Laboratories moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abbott Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abbott Laboratories can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Abbott Laboratories position

In addition to having Abbott Laboratories in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Software Thematic Idea Now

Software
Software Theme
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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Additional Tools for Abbott Stock Analysis

When running Abbott Laboratories' price analysis, check to measure Abbott Laboratories' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbott Laboratories is operating at the current time. Most of Abbott Laboratories' value examination focuses on studying past and present price action to predict the probability of Abbott Laboratories' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Abbott Laboratories' price. Additionally, you may evaluate how the addition of Abbott Laboratories to your portfolios can decrease your overall portfolio volatility.