On Wednesday, Abbott Laboratories (NYSE:ABT) shares surged nearly 4% after announcing solid fiscal third-quarter results. The company reported its most recent quarterly revenue and earnings before markets opened, beating the consensus Street expectations.
Abbott posted FQ3 non-GAAP earnings per share of $1.40, surpassing the average Street estimate of $0.94. On the other hand, its GAAP EPS of $1.17, was $0.50 ahead of expectations, while revenue for the quarter surged 22.8% from the same period a year ago to $10.93 billion, exceeding consensus estimates by $1.37 billion.
Moreover, ABT boosted its full-year 2021 diluted non-GAAP EPS guidance to $5.00-$5.10 from the previous guidance of $4.30-$4.50, pushing it ahead of the average Street forecast of $4.45.
Abbott stock outlook
From an investment perspective, Abbott shares trade at a reasonable forward P/E ratio of 25.66, thereby making the stock a compelling option for value investors.
In addition, analysts are upbeat about its growth prospects as they expect earnings to increase by 24.50% this year, before rising at an average annual rate of $12.53, over the next five years.
Therefore, although the stock is up more than 16% since the start of June, its exciting growth prospects make it an attractive opportunity for long-term investors.
Source – TradingView
Technically, Abbott shares seem to have recently completed an upward breakout from a descending channel formation. As a result, the stock has surged above the 100-day moving average in the intraday chart.
However, with the stock yet to reach overbought conditions of the 14-day RSI, the current bull-run could continue for the foreseeable future. Therefore, investors could target profits at about $126.68 or higher at $129.75, while $121.17 and $116.59 are solid support levels.
ABT still looks like a buy
In summary, although Abbott shares have rallied significantly recently, the stock is yet to reach overbought conditions, thus leaving room for more upward movement.
Therefore, given ABT’s exciting growth prospects, it may not be too late to invest in the stock.
The post Is it too late to buy Abbott shares after raising FY2021 earnings guidance? appeared first on Invezz.