Abbott Laboratories Return On Equity vs. Shares Owned By Institutions
| ABL Stock | EUR 108.06 0.44 0.41% |
For Abbott Laboratories profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Abbott Laboratories to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Abbott Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Abbott Laboratories's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Abbott Laboratories over time as well as its relative position and ranking within its peers.
Abbott |
Abbott Laboratories Shares Owned By Institutions vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Abbott Laboratories's current stock value. Our valuation model uses many indicators to compare Abbott Laboratories value to that of its competitors to determine the firm's financial worth. Abbott Laboratories is number one stock in return on equity category among its peers. It also is number one stock in shares owned by institutions category among its peers producing about 401.73 of Shares Owned By Institutions per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Abbott Laboratories' earnings, one of the primary drivers of an investment's value.Abbott Shares Owned By Institutions vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Abbott Laboratories |
| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Abbott Laboratories |
| = | 76.37 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Abbott Shares Owned By Institutions Comparison
Abbott Laboratories is currently under evaluation in shares owned by institutions category among its peers.
Abbott Laboratories Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Abbott Laboratories, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Abbott Laboratories will eventually generate negative long term returns. The profitability progress is the general direction of Abbott Laboratories' change in net profit over the period of time. It can combine multiple indicators of Abbott Laboratories, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company was founded in 1888 and is based in North Chicago, Illinois. ABBOTT LABS operates under Medical Devices classification in Germany and is traded on Frankfurt Stock Exchange. It employs 109000 people.
Abbott Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Abbott Laboratories. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Abbott Laboratories position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Abbott Laboratories' important profitability drivers and their relationship over time.
Use Abbott Laboratories in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abbott Laboratories position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abbott Laboratories will appreciate offsetting losses from the drop in the long position's value.Abbott Laboratories Pair Trading
Abbott Laboratories Pair Trading Analysis
The ability to find closely correlated positions to Abbott Laboratories could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abbott Laboratories when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abbott Laboratories - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abbott Laboratories to buy it.
The correlation of Abbott Laboratories is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abbott Laboratories moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abbott Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abbott Laboratories can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Abbott Laboratories position
In addition to having Abbott Laboratories in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Abbott Stock
When determining whether Abbott Laboratories is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Abbott Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Abbott Laboratories Stock. Highlighted below are key reports to facilitate an investment decision about Abbott Laboratories Stock:Check out Trending Equities. For more detail on how to invest in Abbott Stock please use our How to Invest in Abbott Laboratories guide.You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project Abbott Laboratories' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Abbott Laboratories at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Abbott Laboratories' income statement, its balance sheet, and the statement of cash flows.