UBS’ Best Stocks In The AI, Growth & Low Rates Era: Top 29 US Stocks

21. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Investors In Q2 2024: 69

UBS’ Sector Rating: Neutral

Sector: Healthcare 273

Abbott Laboratories (NYSE:ABT) is a diversified healthcare company that sells medicines, medical devices, diagnostic products, and others. Established in 1888, it is one of the largest firms of its kind as evidenced by total assets of $73 billion and cash and equivalents of $7.2 billion. While its diversified product portfolio enables Abbott Laboratories (NYSE:ABT) to fire on multiple fronts, it also means that turmoil in one or multiple markets also creates headwinds. For instance, the firm’s third-quarter results saw its nutritional products business lose market share internationally while a tight spending environment led to slower diagnostic equipment sales. Consequently, Abbott Laboratories’ (NYSE:ABT) Q2 results saw a modest 4% revenue growth to $10.4 billion. Q3 revenue was $10.3 billion. Its devices business is more important to the firm than other segments as it accounted for 44.8% of Abbott Laboratories’ (NYSE:ABT) revenue during H1 2024. On this front, its Structural Heart and Electrophysiology products have been growing in double-digit percentages.

Abbott Laboratories’ (NYSE:ABT) management shared details about these segments during its Q3 2024 earnings call:

“In Electrophysiology, growth of 14% was driven by double-digit growth in both the U.S. and international markets and similar to previous quarters, the growth was broad-based across the portfolio, including double-digit growth in catheters and cardiac mapping related products. We also achieved several important milestones as it relates to our electrophysiology new product pipeline, and this includes completing enrollment ahead of schedule in our VOLT-AF U.S. IDE trial and after we complete the required patient follow-up phase, we expect to file for FDA approval next year. Earlier this month, we announced that we began enrolling patients in our focal FLEX clinical trial designed to assess our new TactiFlex DUO catheter, which offers physicians the option of using PFA and radio frequency energy to treat atrial fibrillation.”