The stock of Abbott Labs (ABT) has gained almost 40% over the past year. Sales of COVID-19 tests for the ABT stock were strong, but other diagnostic tests declined as well.
Return to normalcy in US health care could make other tests at Abbott Labs more successful. We probably have not reached the end of our successful growth story yet.
Abbot Labs received FDA approval for the emergency use of tests in March 2020, becoming one of the first companies. Since then, Abbott Labs has developed several more COVID-19 tests and has received about a dozen sets of approvals from the regulator. Abbott Laboratories launched BinaxNOW on August 20, 2020, a $5 15-minute portable test designed for professional use.
For schools, nursing homes, and underserved communities, the United States has purchased 150 million of these tests. As the US administration under US President Joe Biden is paying much attention to testing in the future, the sale of such tests will likely increase. Meanwhile, in addition to this, the BinaxNOW test has been approved for single-use and can be purchased without receiving a prescription over-the-counter.
Abbott Labs (ABT) sold $ 2.4 billion worth of COVID-19 tests in the fourth quarter, of which $ 1.9 billion came from BinaxNOW. Despite the decrease in the number of infected, sales in this segment are expected to remain high because the future’s testing frequency is unlikely to decline. The ABT stock is also likely to reopen sales of other diagnostic products halted because of the pandemic. Consequently, Abbott Lab’s potential revenue will grow even further.
To evaluate that publicly traded company’s historical performance, we will examine different Abbott Labs (ABT) trends. During the last week, ABT stock rose 1.16% and for one month had increased by 2.88%. Shares of this company gained 11.63% over the past quarter. Within the past six months, the stock has gained 9.41%, with a full-year gain of 36.30%. On a year-to-date basis, this stock shows positive price performance of 10.97%.