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Prospects and technical actions involve Abbott Laboratories NYSE: Abt Healthcare names like Johnson & Johnson will lead the way NYSE:JNJ Higher in 2025. While each produced a solid quarter, Abbott Laboratories outperformed and has a stronger outlook. Prospects for Abbott’s growth to be maintained above the 4.2% pace in the 40s in 2025, with growth accelerating in away and margin dominance. Johnson and Johnson’s results will be sluggish in comparison.

Analyst reaction to Q4 results highlights the potential for outperformance. Abbott analysts are raising price targets and strengthening sentiment, while JNJ is doing the opposite. The conclusion is that JNJ shares have headwinds and ABT Taillds to boost the share price. The mid-January consensus implies 10% growth in 2025, while revisions suggest the forecast assumes a move to the high range, adding another 12.5%.

Assuming Abbott continues to perform well, chances are high that the analyst’s trends will continue to lift market sentiment as the year progresses.

The device for Johnson & Johnson is not bad, just less bullish, and the cap on price action gives Abbott strengths. MarketBeat.com is tracking several revisions, and 100% have cut their price target to a below-consensus range. Despite this, sentiment is firmly held with a bullish bias; 45% rate the stock as a buy and 55% as a hold without selling. Potential potential potential ranges from high to low this year.

Growth and leadership are critical factors in ABT and JNJ results

Both companies reported OK, with JNJ even outperforming analyst consensus. However, JNJ’s performance is tepid, with growth of just 5.1% compared to Abbott’s 7.2%, and earnings quality and guidance are also factors. Segmentally, JNJ’s Medtech segment was the most significant but underperformed, while the Innovative Medicine segment outperformed.

Abbott’s fourth-quarter earnings hit consensus in part due to weakness in Covid-19 testing, but organic growth is double-digit and all segments contributed. Coincidentally, Abbott’s medical devices segment drove a 14% increase, driven by a robust product pipeline.

The results of the bottom lines are also good and sufficient to support the prospect of capital return. However, again, Johnson & Johnson’s Q4 lead is marred by tepid leadership and underperformance relative to Abbott. Both revenue and earnings growth are forecast this year, but Abbott’s will be more significant and likely to beat estimates in early 2025.

It is growing organically across all segments and the impact of Covid-19 is quickly fading. The pipeline is strong, with 15 new features and numerous product launches expected in the product line.

JNJ Value or Abbott Quality; Investors win anyway

Both dividends are attractive but appeal to different types of inventors. Johnson & Johnson offers high-yield value with a 3.4% dividend at 13 times earnings, while Abbott’s yield is lower and his valuation higher. The trade-off is the prospect of a higher share price, which is more sustainable in Abbott’s case.

Abbott could add 10-20% in 2025 and valuations are rising, while Johnson & Johnson’s 10% gain is questionable. Analysts could lower their price targets as the year progresses and keep this stock near long-term lows.

Technical action shows a bottom in JNJ shares, limiting downside risks. The Abbott chart, on the other hand, looks strong, with price action set above the critical resistance point. Critical resistance is at the top of the trading range and is a significant trigger point for crossing. The market could continue to retest 2021 highs in this scenario, and then rally to new highs later in the year or in 2026.

Before you consider Abbott Laboratories, you’ll want to hear this.

Marketbeat tracks the top and best-performing analysts with top-performing Wall Street analysts and the stocks they recommend to their clients daily. Marketbeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes over… and Abbott Laboratories wasn’t on the list.

While Abbott Laboratories currently has a Moderate Buy rating among analysts, the top-rated analysts consider these five stocks to be Outperform Buys.

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