{"id":1560,"date":"2023-10-16T12:34:04","date_gmt":"2023-10-16T12:34:04","guid":{"rendered":"https:\/\/connectwithfund.com\/markets\/which-is-a-better-pick-abbott-stock-or-amgen\/"},"modified":"2023-10-16T12:34:05","modified_gmt":"2023-10-16T12:34:05","slug":"which-is-a-better-pick-abbott-stock-or-amgen","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=1560","title":{"rendered":"Which Is A Better Pick \u2013 Abbott Stock Or Amgen?"},"content":{"rendered":"
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Given its better prospects, we believe Abbott stock<\/strong> (NYSE: ABT) is a better healthcare pick than Amgen stock<\/strong> (NASDAQ
\n NDAQ
\n <\/fbs-ticker>: AMGN). Both stocks have a similar market capitalization of $150 billion to $160 billion. AMGN trades at a higher valuation multiple of 5.7x<\/strong> revenues vs. 3.9x<\/strong> for ABT due to its superior profitability. There is more to the comparison, and in the sections below, we discuss why we believe ABT will offer better returns than AMGN in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Abbott vs. Amgen<\/strong>
\n AMGN
\n <\/fbs-ticker>: Which Stock Is A Better Bet?<\/strong> Parts of the analysis are summarized below.<\/p>\n

ABT stock has seen a decline of 20% from levels of $110 in early January 2021 to around $90 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. However, the decrease in ABT stock has been far from consistent. Returns for the stock were 29% in 2021, -22% in 2022, and -18% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 13% in 2023 – indicating an underperformance for the ticker in 2022 and 2023.<\/p>\n

In fact, consistently beating the S&P 500<\/strong> – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the healthcare sector, including LLY, UNH, and JNJ, and even for the mega-cap stars GOOG, TSLA, and MSFT.<\/p>\n

In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that?<\/strong> As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.<\/p>\n

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Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could ABT face a similar situation as it did in 2022 and 2023 and lose value over the next 12 months – or will it see a recovery?<\/p>\n

1. Abbott\u2019s Revenue Growth Is Better<\/strong><\/p>\n