15 Best Stocks to Buy During Recession

10. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 66

Abbott Laboratories (NYSE:ABT) is engaged in discovering, developing, manufacturing, and selling health care products. Josh Jennings from TD Cowen reiterated a “Buy” rating on the company’s stock, with a price objective of $145.00. The analyst’s rating is backed by a combination of factors demonstrating Abbott Laboratories (NYSE:ABT)’s healthy financial performance and growth potential. Despite witnessing significant tariff impacts, the company maintained its guidance for 2025, expects strong EPS, operating margins, and organic sales growth, opines Jennings.

Notably, Abbott Laboratories (NYSE:ABT) expects FY 2025 organic sales growth to be in the range of 7.5% – 8.5%, and an adjusted operating margin of between 23.5% – 24.0% of sales. The company expects FY 2025 adjusted diluted EPS of $5.05 – $5.25. According to Jennings, in Q1 2025, Abbott Laboratories (NYSE:ABT)’s Medical Devices segment demonstrated impressive organic growth, mainly in Diabetes Care, in which continuous glucose monitoring sales surged. Notably, in Diabetes Care, sales of continuous glucose monitors sat at $1.7 billion and increased 18.3% on a reported basis and 21.6% on an organic basis. Also, the company’s 2 new manufacturing and R&D investments in Illinois and Texas, totalling $0.5 billion, are expected to go live by 2025 end.

Diamond Hill Capital, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Abbott Laboratories (NYSE:ABT) is a diversified health care company with an extensive portfolio that spans medical devices, pharmaceuticals, nutritionals and diagnostics. With a substantial portion of its revenues generated internationally, emerging markets contribute about 40% of overall sales. We have always liked Abbott’s diverse mix of businesses and its fundamental growth prospects. The management team has consistently demonstrated skill in capital allocation, highlighted by strategic divestitures such as the European generic business in 2014, and significant acquisitions like St. Jude in 2016.”