Investors often consider how a stock’s price has changed over time, as it can affect their investment portfolios and provide a basis for comparing different sectors and industries. FOMO, or the fear of missing out, also influences investing decisions, particularly with popular tech giants and consumer-facing stocks.

If you had invested in Abbott (ABT) ten years ago and managed to hold onto the stock throughout that period, it might not have been an easy journey. However, let’s explore how much your investment would be worth today.

Abbott, headquartered in Abbott Park, IL, is engaged in the discovery, development, manufacturing, and sale of various healthcare products. The company operates in different divisions that drive its business.

The Established Pharmaceuticals Division (EPD) focuses on branded generics in emerging markets and accounted for 10.9% of total sales in 2021, experiencing organic growth of 10.4% compared to the previous year.

Medical Devices encompasses businesses related to diabetes care, vision care, and vascular products. It contributed to 33.4% of total sales in 2021, with a reported organic growth of 19.4% from the previous year.

Diagnostics involves the manufacturing and marketing of diagnostic systems and tests across core laboratory, molecular, point of care, and rapid diagnostics business lines. This division accounted for 36.3% of total sales in 2021, achieving a remarkable 42.7% organic growth compared to 2020. This growth includes sales from the acquisition of Alere in 2017.

Nutrition includes a wide range of pediatric and adult nutritional products and accounted for 19.3% of total sales in 2021, showing organic growth of 7.7% from the previous year.

Abbott has actively pursued acquisitions to expand and diversify its portfolio. Notably, the company acquired CFR Pharmaceuticals in 2014, Tendyne Holdings, Inc. in 2015, St. Jude Medical in 2017, and Alere Inc. in 2017. On the other hand, Abbott divested its developed markets branded generics pharmaceuticals business to Mylan in 2015, its animal health business to Zoetis Inc. in 2015, and its vision care business, Medical Optics, to Johnson and Johnson for $4.325 billion in cash.

In summary, building a successful investment portfolio requires research, patience, and a willingness to take some risks. If you had purchased Abbott shares ten years ago, you would likely be pleased with the results of your investment today.

According to our calculations, a $1000 investment made in June 2013 would be valued at $3,048.03 as of June 27, 2023, representing a gain of 204.80%. This calculation considers price appreciation but excludes dividends.

For comparison, over the same time frame, the S&P 500 rose 170% and the price of gold increased by 50.92%.

Analysts are predicting further potential growth for ABT.

Abbott delivered better-than-expected earnings and revenues in the first quarter of 2023. Excluding COVID testing, organic sales growth increased by 10%, driven by double-digit growth in Medical Devices, EPD, and Nutrition. EPD has maintained its double-digit sales growth momentum for the past two years, while Medical Devices experienced strong sales, particularly in Diabetes Care, Structural Heart, Heart Failure, and Neuromodulation. Abbott’s Diabetes Care business benefited from the growing sales of its sensor-based continuous glucose monitoring system, FreeStyle Libre. Over the past year, Abbott has outperformed its industry, although its figures declined compared to the previous year due to a decrease in COVID testing-related sales.

Over the past four weeks, the stock has seen a 5.48% increase, and no earnings estimate has been revised downward for fiscal 2023 in the past two months, while one estimate has been revised higher. The consensus estimate has also moved upward.

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