Abbott Laboratories (ABT): A Bull Case Theory 

We came across a bullish thesis on Abbott Laboratories on R. Dennis’s SubstackR. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on ABT. Abbott Laboratories’s share was trading at $106.09 as of January 29th. ABT’s trailing and forward P/E were 28.52 and 18.69 respectively according to Yahoo Finance.

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. ABT has recently been the target of a significant institutional block trade that highlights a unique opportunity for investors. A market participant sold 1,000 put option contracts with a $110 strike price expiring December 18, 2026, collecting a premium of $5.10 per share, generating an immediate inflow of $510,000 and establishing a break-even entry price of $104.90.

The trade signals strong confidence from a “Smart Money” participant that Abbott’s legal risks from the NEC litigation are overstated, and that the stock has a robust valuation floor near $100. By following this trade, investors effectively align with the institution’s assessment that Abbott’s recent court victories in late 2025, including summary judgments in federal bellwether cases and state court reversals, have neutralized the threat of multi-billion-dollar settlements.

The timing of the trade is deliberate, bridging the period through late-2026 federal trials, while the option premium offers a potential annualized return of ~8–9% if collateralized, significantly above the 1-year Treasury yield. Abbott’s valuation floor of $104.90 represents a P/E of ~13x, a stark discount to peers trading at 25–35x, and provides a strong margin of safety. Additionally, the company’s 53rd consecutive dividend increase creates a natural buying pressure at these levels, further supporting the strike price.

Abbott’s growth catalysts, including consumer biowearables like Lingo and Libre Rio, and the upcoming dual-sensor technology, bolster earnings visibility and reduce the likelihood of a meaningful price decline. This trade, effectively selling insurance on a diminishing risk, allows investors to capture rich premiums while potentially acquiring a high-quality, recession-resistant Dividend King at a discounted, fundamentally attractive price. The combination of legal clarity, valuation support, and growth momentum positions Abbott as a compelling investment with a high probability of profit and attractive risk/reward.

Previously we covered a bullish thesis on Medtronic plc (MDT) by Investing Intel in May 2025, which highlighted strong Q4 and FY2025 results, broad-based growth, and the planned spin-off of its diabetes business to unlock value. The company’s stock price has appreciated approximately by 25.18% since our coverage. The thesis still stands, while R. Dennis emphasizes Abbott Laboratories’ institutional block trade, signaling legal clarity and a strong valuation floor.

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Disclosure: None.