5 Stocks to Buy Before the Next Recession

2. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 64

Abbott Laboratories (NYSE:ABT) is an American multinational company that manufactures and sells medical devices, diagnostics, branded generic medicines, and nutritional products. 

Abbott Laboratories (NYSE:ABT) is likely to survive the expected recession since demand for medical devices by hospitals and patients is somewhat inelastic. Similarly, medicines cannot be foregone entirely, although people might switch to low cost biosimilars. Overall, the Abbott Laboratories (NYSE:ABT) is positioned for stable earnings, as exhibited by its consistently increasing dividend payments for 50 years back-to-back. 

BofA analyst Travis Steed on March 1 reinstated coverage of Abbott Laboratories (NYSE:ABT) with a Buy rating and a $140 price target as part of a broader research note on medical technology. According to the analyst, Abbott Laboratories (NYSE:ABT) delivers a sustainable organic growth profile, a top-notch product pipeline, a healthy balance sheet supported by COVID testing profits, and a diversified business that is positioned to perform well in many different market conditions.

Ken Fisher’s Fisher Asset Management endorses Abbott Laboratories (NYSE:ABT). Being the company’s leading shareholder, Ken Fisher’s fund elevated its stake by 5% in the fourth quarter to 8.7 million shares worth $1.2 billion. Overall, 64 hedge funds were bullish on Abbott Laboratories (NYSE:ABT) at the end of December 2021. 

Here is what Richie Capital Group has to say about Abbott Laboratories (NYSE:ABT) in its Q4 2021 investor letter: 

“Abbott Labs (ABT – up 20.08%) – Abbott Labs continues to benefit from resurging demand for Covid testing kits. The company is planning to increase their monthly production of BinaxNOW athome rapid tests to 100M a month, a 43% increase from current levels.”