Abbott Laboratories (ABT): Yawn All The Way to Retirement With It

Abbott Laboratories (NYSE:ABT) sees the need for improvement as opportunity and has high hopes for its diagnostics business. The innovative automated instruments provided to laboratories, clinics, and hospitals allow doctors to quickly and accurately diagnose disease like never before. They also represented 81.2% of the segment’s total revenue in the first quarter.

The company boasts 10 platforms that address the quickly expanding fields of immunology (various ailments), hematology (blood analysis), and molecular biology (genetic analysis). Why stop there? A total of six new platforms are being developed, including the ultra-awesome universal-microbe-detecting-PLEX-ID.

Look for the growth to pick up in coming periods: Operating margin for diagnostics is currently “on track to exceed its full-year target of 20% by 2015,” according to the company. Despite the progress, I would like to see Abbott Laboratories (NYSE:ABT) expand its presence in molecular technologies, which bring in just 10% of total diagnostics revenue. The ability to detect a patient’s genetic susceptibility to disease will become increasingly important in the future of medicine.

Foolish bottom line

I can’t promise that Abbott Laboratories (NYSE:ABT) stock won’t cool off from its recent all-time highs. However, the company is as determined as ever to expand its market dominance in cardiovascular devices to diagnostics and increase its presence in nutrition. AbbVie Inc (NYSE:ABBV) may have taken most of the former giant’s dividend with it, but it faces problems of its own with Humira coming off patent in a few years. Boring ol’ Abbott faces no such patent cliff and can continue to grow slow and steady for years to come. Put it on your watchlist, maybe grab some shares, and yawn your way to market-beating returns.

The article Yawn Your Way to Retirement With Abbott Laboratories Stock originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio or his CAPS page, or follow him on Twitter, @BlacknGoldFool, to keep up with his writing on energy, bioprocessing, and emerging technologies. The Motley Fool recommends and owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!