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This Week's Bonus Story Is Abbott's January Pullback a Good Time to Buy? Submitted by Thomas Hughes. Published: 1/24/2026. 
Key Points - Abbott Laboratories’ January pullback looks driven more by sentiment than fundamentals, putting shares back near a prior accumulation zone.
- Quarterly results showed solid sales growth, improving margins, and faster adjusted earnings growth despite a revenue miss.
- A long dividend-growth track record and potential upside implied by analyst targets underpin the bullish rebound case.
Abbott Laboratories' (NYSE: ABT) January 2026 price pullback has made its stock look attractively valued. The move — driven more by market angst than by any clear weakness in the business — feels like a knee-jerk overreaction that has pushed the stock back into a buy zone.  The zone in question aligns with market action from 2022 to 2024, when Abbott was recovering from its post-COVID-19 revenue contraction and institutions were actively accumulating the stock. Abbott Laboratories Growth Accelerates At worst, some metrics in Abbott Laboratories' Q4 results and guidance missed market expectations. Still, revenue of $11.46 billion was up 4.5% year over year, margins improved, and adjusted earnings accelerated. Revenue growth fell short by several hundred basis points, but margin strength helped offset the shortfall: adjusted earnings per share (EPS) rose about 12%, slightly above consensus. Segment results illustrated the benefits of Abbott’s diversified healthcare portfolio. The Nutrition and Diagnostics segments contracted — Nutrition declined nearly 9% — but that weakness was offset by solid growth in Established Pharmaceuticals and Med Tech. Pharmaceuticals grew roughly 9%, driven by generics and emerging markets, while Med Tech expanded about 12.3% with strength across sub-segments. Margin performance was encouraging, even if it came in a touch below some analyst forecasts. A favorable product mix, strength in Med Tech, lower COVID-19-related sales and operational improvements pushed margins ahead of expectations. Management expects earnings to improve further in 2026, forecasting roughly 10% EPS growth that should support ongoing capital returns. Capital returns are central to the buying case. Abbott is a Dividend King, having raised its payout for more than 50 consecutive years, and it appears positioned to continue that trend. After the pullback the stock yields about 2.5%, and the payout ratio is under 50% of consensus EPS, leaving room for continued share buybacks and other uses of cash that help offset dilutive share-based compensation. Analysts Point to Robust Rebound in Abbott Laboratories Stock Some analysts noted the revenue miss, but there were no major rating or price-target changes the morning of the release. The prevailing view is that this is a fundamentally healthy company that can both return capital to shareholders and reinvest in growth. MarketBeat's consensus share price target implies as much as ~30% upside, potentially reaching new all-time highs; even the low-end targets suggest modest upside from current levels. Key catalysts include expansion in the Med Tech portfolio, greater AI integration across operations and products, margin improvement and strategic acquisitions. The planned acquisition of Exact Sciences, for example, would broaden Abbott’s revenue, profit streams and product pipeline. Abbott’s recent decline has been steep and could deepen, but institutions that bought through 2025 are likely buyers at discounted prices. Early technical support appears near the $105–$110 range, though it isn’t confirmed. The risk is that shares may drop to the lower end of the buy zone — potentially toward $95 or below — before staging a sustained rebound.
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