Abbott Laboratories Stock Slumps Amid Weaker Demand in Key Segments

Abbott Laboratories (ABT) is one of the largest healthcare companies in the world, valued at $194.6 billion.

The company's stock has been underperforming its peers and the broader market over the past year, with a decline of 19.7% from its 52-week high of $137.49.

While ABT shares have gained 29.2% over the past three months, outpacing the State Street Health Care Select Sector SPDR ETF's (XLV) 14.1% return, they are still down 11.8% on a year-to-date basis and 15.8% over the past 52 weeks.

The stock has been trading above its 50-day moving average since late June, but analysts remain concerned about weaker demand in areas such as Nutrition and Diagnostics, which have limited overall growth momentum.

Consequences around infant-formula business normalization in diagnostics, and the integration of Exact Sciences have also weighed on the outlook. In comparison, ABT stock has lagged behind its rival Johnson & Johnson (JNJ), which has increased 28.6% on a YTD basis and 51.7% over the past 52 weeks.