Abbott Laboratories

New York Stock Exchange
Neutral 0

The Zacks Analyst Blog Highlights Eli Lilly, RTX, Abbott Laboratories, Ohio Valley Banc and Rave Restaurant

- πŸ“ˆ Zacks Equity Research analysts published new daily reports covering major stocks including Eli Lilly, RTX, Abbott Laboratories, Ohio Valley Banc, and Rave Restaurant Group on March 24, 2026.

- πŸ’Š Eli Lilly's shares have outperformed the large cap pharmaceuticals industry by 23.4% over six months driven by strong demand for GLP-1 drugs Mounjaro and Zepbound.

- πŸš€ Lilly continues to expand its portfolio with new launches like Kisunla and Omvoh, plus an oral GLP-1 obesity pill called orforglipron expected this year.

- ⚠️ Investors face potential headwinds for Eli Lilly from declining Trulicity sales, pricing pressure on existing drugs, and emerging competition in the diabetes and obesity markets.

- πŸ›‘οΈ RTX Corp. shares have outperformed the aerospace-defense industry by 22.8% due to strong defense orders from the Pentagon and allies alongside improving global commercial air traffic.

- πŸ”‹ RTX reported a record backlog of $268 billion as of December 31, 2025, supported by steady volumes in large commercial engines and Pratt Canada operations.

- 🏭 The aerospace sector faces ongoing supply-chain challenges and risks related to recent U.S. government import tariffs that could adversely impact RTX's growth momentum.

- 🩺 Abbott Laboratories' shares have declined 15.1% over the past year, though the company maintains a strong product pipeline supporting growth into 2026.

- 🧬 Abbott's Medical Devices segment is driven by the FreeStyle Libre CGM franchise and expansion in Diabetes Care, while Diagnostics sees improving demand outside China.

- 🍽️ Abbott's Nutrition business is transitioning after near-term volume and pricing issues, with Adult Nutrition innovations expected to support growth starting in the second half of 2026.

- 🏦 Ohio Valley Banc shares have outperformed the Midwest banking industry by 15.6% due to balance-sheet optimization and a strategic shift toward higher-yielding commercial lending.

- ⚠️ The regional bank faces elevated credit sensitivity from its increased concentration in commercial assets, with early signs of asset quality pressure emerging.

- πŸ• Rave Restaurant Group shares have underperformed the restaurant industry by 28.9% due to limited net unit expansion and structural drag from its Pie Five brand.

- πŸ’Έ Rave's revenue visibility is constrained by reliance on incentive income, though the company offers a differentiated asset-light franchise model anchored by Pizza Inn's buffet strategy.

- πŸ“‰ The market currently prices limited growth potential for Rave Restaurant, leaving future upside dependent on sustained unit expansion and successful brand stabilization.

Bullish Signals
  • Abbott Laboratories shares have outperformed the broader industry decline of -20.6%, dropping only -15.1% over the past year due to a strong product pipeline supporting growth into 2026.
  • The company's Medical Devices segment, led by the FreeStyle Libre CGM franchise, remains a key driver for future expansion.
  • Diagnostics demand is improving outside of China as Core Laboratory and Point of Care gain momentum in emerging markets.
  • Abbott maintains a constructive outlook on its biosimilar strategy, which supports sustained growth in the EPD segment across emerging markets.
  • The Nutrition business is positioned to support a return to growth in the second half of 2026 following current near-term volume and pricing challenges.
  • RTX has outperformed the Aerospace-Defense industry with shares rising +22.8% versus -2.6%, fueled by ample orders for defense products from the Pentagon and foreign allies.
  • Strong volumes and a favorable mix across commercial engines are expected to sustain growth momentum, resulting in a massive backlog of $268 billion as of Dec. 31, 2025.
  • Eli Lilly has outperformed its industry with +23.4% gains over the past six months compared to +14%, driven by robust demand for GLP-1 drugs Mounjaro and Zepbound.
  • New drugs like Kisunla, Omvoh, and Jaypirca are actively contributing to top-line growth alongside rapid pipeline progress in obesity with oral GLP-1 orforglipron expected to launch this year.
  • Ohio Valley Banc has outperformed its industry with +15.6% gains over six months as balance-sheet optimization and a shift toward higher-yielding lending drive margin expansion.
  • Operating efficiency gains and disciplined expense management at Ohio Valley Banc enhance scalability, while a stable core deposit base underpins funding needs.
Risk Factors
  • Abbott Laboratories shares have declined -15.1% over the past year, significantly lagging its industry peer group.
  • The company faces near-term volume and pricing woes in its Nutrition segment as it transitions back to growth expected only by the second half of 2026.
  • Macro uncertainty, tariffs, and China pressures limit Abbott's near-term visibility despite its diversified portfolio.
  • Abbott is facing declining sales on Trulicity and rising pricing pressure on some drugs which acts as a headwind to top-line growth.
  • Potential competition in the GLP-1 diabetes/obesity market poses a threat to Eli Lilly's top-line drivers.
  • Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX Corp.
  • Uncertainties created by recent U.S. government-imposed import tariffs pose a specific risk for RTX Corp.
  • Ohio Valley Banc faces credit sensitivity risks as greater concentration in commercial assets elevates vulnerability to early signs of asset quality pressure.
  • Ohio Valley Banc is experiencing declining fee income and relies heavily on balance-sheet-driven earnings, highlighting evolving revenue risks.
  • Rave Restaurant Group's shares have underperformed the sector by -28.9% over the past six months due to limited net unit expansion and reliance on system-wide sales.
  • Pie Five remains a structural drag for Rave Restaurant with ongoing unit contraction and weak sales contributing to growth constraints.
  • Rave Restaurant's revenue visibility is impacted by its reliance on incentive income which creates volatility in earnings.
Full Analysis
Zacks Equity Research analysts highlight Abbott Laboratories (ABT) as one of five stocks featured in their latest daily research output, alongside Eli Lilly, RTX Corp, Ohio Valley Banc, and Rave Restaurant Group. The analysis notes that ABT shares have declined 15.1% over the past year, which is significantly less severe than the Zacks Medical Products industry's decline of 20.6%, suggesting relative resilience. Despite a diversified portfolio offering prospects through 2026, the company faces several headwinds including macroeconomic uncertainty, import tariffs, and ongoing pressures from its China operations. The report identifies the Medical Devices segment as a primary growth engine, driven by the FreeStyle Libre continuous glucose monitor franchise and strategic expansion across diabetes care markets. Additionally, underlying demand in Diagnostics outside of the saturated COVID-19 space is improving, with momentum gaining in Core Laboratory and Point of Care sectors that are less reliant on the Chinese market. The company also maintains a constructive outlook for its biosimilar strategy, which supports continued growth in emerging markets within its EPD division. However, the Nutrition business unit is currently in transition as it attempts to recover from recent near-term volume and pricing issues; management expects a return to growth in the second half of 2026. While Abbott’s strong product pipeline provides new prospects, the analysis concludes that current valuation suggests investors recognize improved earnings power but are cautious regarding long-term upside due to external risks like tariffs and limited visibility in specific geographic regions.