ABT

It has been about a month since the last earnings report for GE HealthCare Technologies (GEHC). Shares have added about 3.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is GE HealthCare due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for GE HealthCare Technologies Inc. before we dive into how investors and analysts have reacted as of late. GE HealthCare reported second-quarter 2026 adjusted earnings per share of $1.13, which beat the Zacks Consensus Estimate of $1.04 by 8.7%. The bottom line increased 6.6% year over year, aided by commercial execution, pricing and productivity gains. GAAP EPS in the quarter was $1.24, up 16.5% from the year-ago level. Revenues of $5.29 billion increased 5.7% year over year on a reported basis and 3.5% organically. The top line surpassed the Zacks Consensus Estimate by 0.7%. Revenue growth was led by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), along with strength in the United States, EMEA and Rest of World markets. However, growth was partially offset by a decline in the Patient Care Solutions (PCS) segment. Total company orders increased 11.1% year over year organically. The book-to-bill ratio was 1.15X, indicating rising orders compared to shipments, with backlog reaching a record $23.9 billion. Management cited order growth across every segment, supported by strong commercial execution and adoption of new products. Pharmaceutical Diagnostics revenues increased 15.6% year over year to $843 million. Growth was supported by higher contrast-media volumes, pricing and U.S. radiopharmaceutical demand. Segment EBIT was $250 million, up 16.9% year over year. Advanced Imaging Solutions revenues increased 7.9% year over year to $3.77 billion. Growth was supported by CardioVascular and Interventional Solutions, computed tomography and Molecular Imaging. Segment EBIT was $525 million, up 15.4% year over year. Patient Care Solutions revenues declined 13.3% year over year to $675 million. Management attributed the decline primarily to operational and fulfillment challenges, despite strong first-half orders that indicated healthy customer demand. Net income margin expanded 90 basis points to 10.6%. However, net income margin was negatively impacted due to PCS weakness and inflation in memory chips, oil and freight costs. Cumulative cash flow from operating activities at the end of the second quarter was $458 million compared with $344 million a year ago. GEHC exited the second quarter with cash, cash equivalents and restricted cash of $2.11 billion compared with $2.28 billion in the previous quarter. Total assets increased to $37.25 billion from $37.12 billion on a sequential basis. GE HealthCare reaffirmed its guidance for 2026. The company still expects organic revenue growth of 3-4% in 2026. It anticipates adjusted earnings per share to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth, as expected previously. Management anticipates approximately $250 million of inflation associated with memory chips, oil and freight and other components, but expects pricing and cost actions to offset more than half of that impact. Since the earnings release, investors have witnessed a downward trend in estimates revision. Currently, GE HealthCare has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, GE HealthCare has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. GE HealthCare is part of the Zacks Medical - Products industry. Over the past month, Abbott (ABT), a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Abbott reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.31 for the same period compares with $1.26 a year ago. Abbott is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of +10%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Abbott Laboratories stock has delivered a 14.0% total return over the past three years, yet its current checks suggest a mixed valuation picture as the Discounted Cash Flow (DCF) estimate points to meaningful upside while market multiples look closer to fair. A 14.0% return over three years indicates that long term holders have seen moderate gains, even though shorter term returns have recently been weaker. Partnerships such as supplying sensors for MiniMed Flex and the Lingo data collaboration with Google Health can support expectations for future cash flows, while execution risk around product adoption and data driven health offerings may weigh on how much value the market is willing to ascribe. Abbott Laboratories scores 3 out of 6 on valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation. For investors, the debate is whether the current share price around US$111.25 still leaves enough upside relative to the intrinsic value suggested by the DCF work. Find out why Abbott Laboratories' -12.6% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) method estimates what Abbott Laboratories could be worth based on its projected future cash generation. For Abbott Laboratories, the latest twelve month free cash flow is about $7.6b, and the model applies a growing cash flow profile over the next decade to reflect expectations of continued business expansion. Under these assumptions, the DCF model arrives at an intrinsic value of about $151 per share, compared with the current price around $111. This implies the stock is trading at roughly a 26.1% discount to that cash flow based estimate, so the shares appear undervalued within this framework. The new MiniMed Flex system using Abbott sensors illustrates how product partnerships can support the cash flow story, yet the market price remains below the value indicated by the DCF analysis. Overall, the Discounted Cash Flow work suggests Abbott Laboratories stock appears undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Abbott Laboratories is undervalued by 26.1%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Abbott Laboratories. The P/E multiple suits Abbott Laboratories because earnings remain a key anchor for how the market prices large, diversified healthcare groups. Right now the stock trades on a P/E of about 35.6x, which is higher than the Medical Equipment industry average of roughly 26.2x and above the peer group average of about 31.0x. The tailored fair P/E ratio for Abbott Laboratories is estimated at about 36.9x, which is only slightly above where the stock currently trades. That small gap suggests the higher multiple versus the sector is largely in line with what the company profile, margins and risk level might warrant, rather than pointing to a clear premium or discount. On the P/E measure, Abbott Laboratories stock appears roughly fairly valued relative to what the model indicates would be a reasonable earnings multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Abbott Laboratories valuation puzzle leaves off and clarify which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price on the Community page. Each Narrative presents fair value as a thesis about Abbott Laboratories' business that can be tracked over time, rather than a one off snapshot. You can add your voice to the Simply Wall St community by sharing a Narrative on Abbott Laboratories' stock that sets out a clear, number driven case and tracks how it holds up as new results come through. This is a chance to put forward a view on whether developments like Abbott Laboratories' role in the MiniMed Flex system and the Lingo collaboration with Google Health ultimately support the current share price or call for a different valuation story. Do you think there's more to the story for Abbott Laboratories? Head over to our Community to see what others are saying! For Abbott Laboratories, the Discounted Cash Flow (DCF) work points to meaningful upside, while the P/E based view suggests the stock is priced roughly in line with peers once its profile is factored in. The valuation checks therefore lean toward undervalued, but not in a way that overrides the mixed signals from the broader framework. The key question from here is whether Abbott Laboratories can convert its partnerships and product pipeline into the cash flows that justify the intrinsic value estimate, or whether the market is correct to keep a discount in place for execution risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ABT. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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This article first appeared on GuruFocus. Mason Hawkins (Trades, Portfolio), the Chairman and CEO of Southeastern Asset Management since 1975, recently filed his 13F for the second quarter of 2026. A disciplined value investor with an M.B.A. in Finance from the University of Georgia, Hawkins seeks "good business, good people, and a good price." He typically invests in companies trading at 60% or less of their intrinsic value, maintaining a concentrated portfolio of fewer than 25 stocks per fund. This filing reveals a significant new stake in Abbott Laboratories, alongside other strategic moves. Warning! GuruFocus has detected 6 Warning Signs with RYN. Is RYN fairly valued? Test your thesis with our free DCF calculator. Mason Hawkins (Trades, Portfolio) added a total of 2 stocks, among them: The most significant addition was Abbott Laboratories (NYSE:ABT), with 840,747 shares, accounting for 3.98% of the portfolio and a total value of $76.29 million. The second largest addition to the portfolio was Tencent Music Entertainment Group (NYSE:TME), consisting of 2,305,210 shares, representing approximately 1% of the portfolio, with a total value of $19.25 million. Mason Hawkins (Trades, Portfolio) also increased stakes in a total of 8 stocks, among them: The most notable increase was CNX Resources Corp (NYSE:CNX), with an additional 648,942 shares, bringing the total to 4,663,053 shares. This adjustment represents a significant 16.17% increase in share count, a 1.15% impact on the current portfolio, and a total value of $158.22 million. The second largest increase was Albertsons Companies Inc (NYSE:ACI), with an additional 1,216,461 shares, bringing the total to 8,636,262. This adjustment represents a significant 16.39% increase in share count and a total value of $116.85 million. Mason Hawkins (Trades, Portfolio) completely exited 4 of the holdings in the second quarter of 2026, as detailed below: Bio-Rad Laboratories Inc (NYSE:BIO): Mason Hawkins (Trades, Portfolio) sold all 162,804 shares, resulting in a -2.23% impact on the portfolio. Constellation Brands Inc (NYSE:STZ): Mason Hawkins (Trades, Portfolio) liquidated all 3,661 shares, causing a -0.03% impact on the portfolio. Mason Hawkins (Trades, Portfolio) also reduced positions in 25 stocks. The most significant changes include: Reduced People Inc (NASDAQ:PPLI) by 890,894 shares, resulting in a -22.15% decrease in shares and a -1.75% impact on the portfolio. The stock traded at an average price of $42.63 during the quarter and has returned 0.95% over the past 3 months and 3.32% year-to-date. Reduced Rayonier Inc (NYSE:RYN) by 1,271,296 shares, resulting in an -11.81% reduction in shares and a -1.29% impact on the portfolio. The stock traded at an average price of $20.94 during the quarter and has returned 7.98% over the past 3 months and 2.16% year-to-date. At the second quarter of 2026, Mason Hawkins (Trades, Portfolio)'s portfolio included 47 stocks. The top holdings included 10.54% in Rayonier Inc (NYSE:RYN), 8.92% in Mattel Inc (NASDAQ:MAT), 8.25% in CNX Resources Corp (NYSE:CNX), 7.54% in People Inc (NASDAQ:PPLI), and 6.09% in Albertsons Companies Inc (NYSE:ACI). The holdings are mainly concentrated in 10 of all 11 industries: Consumer Defensive, Consumer Cyclical, Communication Services, Real Estate, Industrials, Healthcare, Energy, Technology, Financial Services, and Basic Materials.

Johnson & Johnson (NYSE:JNJ) delivered strong fiscal Q2 2026 results, with sales for the quarter growing nearly 7% to $25.31 ⁠billion, above analysts' average estimate of about $25.05 billion. Adjusted earnings per share reached $2.90, surpassing the expectation of $2.85. The company also raised its guidance and stated that it is on track to meet its 2026 goal of over $100 billion in annual revenue for the first time in its 140-year history. Abbott Laboratories (NYSE:ABT) also beat its quarterly estimates in its fiscal Q2 2026 results while also raising its annual profit forecast, with strong demand for its cancer diagnostics business and medical devices easing procedure-volume concerns. Sales for the quarter rose 13% on a reported basis and 4.8% on a comparable basis. So which healthcare giant offers the more compelling investment case for investors? Let's dive into it. An operating room with a doctor monitoring a patient's vital signs during surgery with a medical device. Both healthcare giants beat quarterly estimates and raised their outlooks, suggesting continued resilience across their businesses. The key question for investors is whether Johnson & Johnson’s (NYSE:JNJ) pharmaceutical growth story or Abbott Laboratories’ (NYSE:ABT) expanding diagnostics and medical devices businesses offer the more compelling investment case going forward. Johnson & Johnson’s (NYSE:JNJ) pharmaceutical unit was an optimistic factor, as it helped increase total sales, generating $16.38 billion in quarterly sales and exceeding analysts' estimate of $16.1 billion. The healthcare giant now expects its annual sales to be around $101.1 billion at the midpoint, ​compared with $100.8 billion ⁠previously. In another optimistic feat, it raised its adjusted earnings per share forecast to $11.68 at the midpoint, from a previous $11.55 per share. Revenue from Johnson & Johnson’s (NYSE:JNJ) Stelara, which treats psoriasis, Crohn's disease, and ​other autoimmune conditions, dropped over 55% in the quarter to $740 million due to patent loss. However, the company’s cancer and newer immunology drugs can be seen countering this loss, as sales of Tremfya, its psoriasis and inflammatory bowel disease drug, rose 72.5% to $2 billion, considerably exceeding the estimate of $1.74 billion. The most encouraging sign for investors thus may be Johnson & Johnson’s (NYSE:JNJ) ability to absorb a significant patent-related decline in Stelara sales while still raising its full-year outlook. Strong performance from newer drugs such as Tremfya suggests the company's pipeline is successfully offsetting losses from older products. On the other hand, Abbott Laboratories (NYSE:ABT) reported GAAP diluted EPS of $0.53 and adjusted diluted EPS of $1.31, which excludes specified items, and reaffirmed its full-year 2026 comparable sales growth guidance of 6.5% to 7.5%, suggesting confidence in its operations. The company also raised its full-year 2026 adjusted diluted EPS guidance range to $5.45 to $5.60, compared to the previous range of $5.38 to $5.58. Abbott Laboratories (NYSE:ABT) diagnostics segment rose 42% to $3.09 billion in fiscal Q2, surpassing the estimate ​of $3.02 billion, emerging as one of the company's strongest performers during the quarter. This was driven by strong adoption in electrophysiology, diabetes care (such as CGM systems), and expanding cancer screening diagnostics. William Blair stated that the company’s cancer diagnostics results should improve sentiment around the Exact Sciences ​acquisition, with growth in medical devices helping offset concerns surrounding hospital procedure volumes. Johnson & Johnson's (NYSE:JNJ) MedTech segment was comparatively less impressive during the quarter, with sales slightly missing expectations. Management attributed some of the weakness to temporary headwinds, including inventory-related pressures in China that weighed on Electrophysiology sales and softer U.S. procedure trends affecting Abiomed. While Johnson & Johnson (NYSE:JNJ) expects these challenges to improve over time, investors may want to watch whether its MedTech business returns to its historical growth trajectory in the coming quarters. Sustained weakness in these businesses could limit the company's ability to diversify its growth beyond pharmaceuticals. On the other hand, while Abbott Laboratories' (NYSE:ABT) outlook remains encouraging, a meaningful portion of its expected growth acceleration in the second half of 2026 depends on the successful commercialization of several pipeline products. Management has expressed confidence that sales and earnings growth will accelerate in the second half of 2026. While this outlook is supported by improving momentum across multiple business segments, investors will need to see that acceleration materialize over the coming quarters. Notably, Abbott Laboratories (NYSE:ABT) reaffirmed rather than raised its full-year comparable sales growth guidance of 6.5% to 7.5%, suggesting that management remains prudent despite its strong second-quarter performance. Hedge fund ownership for the two stocks provides additional insight into the investment thesis. According to Insider Monkey data, Johnson & Johnson (NYSE:JNJ) seems to be growing in popularity among hedge funds, with its ownership going from 104 in fiscal Q4 2025 to 113 in fiscal Q1 2026. Some notable stakes for Johnson & Johnson (NYSE:JNJ) come from Fisher Asset Management, GQG Partners, and AQR Capital Management, with Balyasny Asset Management's position jumping by 1,411% to $146 million. Hedge fund sentiment for Abbott Laboratories (NYSE:ABT) also improved moderately from last quarter, going from 71 in fiscal Q4 2025 to 73 in fiscal Q1 2026. While the increase is modest, it suggests that institutional investors continue to maintain confidence in Abbott Laboratories’ (NYSE:ABT) long-term growth prospects following its strong quarterly performance. Johnson & Johnson’s (NYSE:JNJ) earnings highlight the strength of its pharmaceutical pipeline and its ability to navigate patent losses, while Abbott Laboratories’ (NYSE:ABT) results shed light on the growing importance of its diagnostics and medical device businesses. Both companies delivered strong quarterly results, suggesting that investors may be choosing between two different growth opportunities rather than one clear winner. While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Abbott Laboratories (NYSE:ABT) delivered strong fiscal Q2 2026 results, beating quarterly estimates and raising its annual profit forecast as robust demand for its cancer diagnostics and medical devices businesses helped ease investor concerns surrounding procedure volumes. Sales for the quarter rose 13% on a reported basis and 4.8% on a comparable basis. Danaher Corporation’s (NYSE:DHR) second-quarter results, on the other hand, were marked by core growth improving compared to the previous quarter, along with disciplined execution that drove high-single-digit adjusted EPS growth. Let's take a closer look at which company appears better positioned for future growth following their latest quarterly results. Abbott Laboratories (NYSE:ABT) reported GAAP diluted EPS of $0.53 and adjusted diluted EPS of $1.31, which excludes specified items, and reaffirmed its full-year 2026 comparable sales growth guidance of 6.5% to 7.5%, suggesting confidence in its operations. The company also raised its full-year 2026 adjusted diluted EPS guidance range to $5.45 to $5.60, compared to the previous range of $5.38 to $5.58. Key fiscal Q2 2026 results for Danaher Corporation (NYSE:DHR) included a 5.5% year-over-year growth in revenue to $6.3 billion, as well as a 60% year-over-year rise in net earnings to $870 million, or $1.23 per diluted common share. The company also reported that non-GAAP core revenue increased 3.0% year-over-year and non-GAAP core revenue, excluding respiratory testing revenue, increased 4.5% year-over-year, suggesting improving trends in the company’s operations. According to LSEG data, Danaher Corporation’s (NYSE:DHR) adjusted EPS of $1.94 exceeded analyst estimates of $1.83. One of the biggest highlights of the quarter for Abbott Laboratories (NYSE:ABT) was its diagnostics segment. ‌The company’s cancer ⁠diagnostics business, which was recently integrated through the Exact Sciences buyout, is benefiting from an expanding base that comprises both new and repeat users of the colorectal cancer screening test, Cologuard. Sales in its diagnostics segment rose 42% to $3.09 billion in fiscal Q2, surpassing the estimate ​of $3.02 billion, emerging as one of the company's strongest performers during the quarter. Analysts agree with this sentiment. William Blair stated that the company’s cancer diagnostics results should improve sentiment around the Exact Sciences ​acquisition, with growth in medical devices helping offset concerns surrounding hospital procedure volumes. The firm reiterated an Outperform rating on the shares and noted that its shares rose over 10% on fiscal Q2 results, which helps alleviate concerns surrounding the recent Exact Sciences acquisition and medtech end markets, and signals an improving nutrition business. It told investors in a research note that all of these updates were positive, and should compound with pipeline products for even better results in H2 2026 and into FY27. In contrast, Danaher Corporation’s (NYSE:DHR) biggest positive was its Life Sciences business, which delivered its strongest performance in several years. Although bioprocessing revenue was affected by customer project timings, the underlying order trends remained strong, with bioprocessing orders growing mid-teens in the quarter. This shows that the underlying demand for bioprocessing remained strong, which includes consumables and equipment necessary to make biologic drugs. Danaher Corporation (NYSE:DHR) stated that a little over $100 million of revenue has shifted into next year, primarily from the second and third quarters. This suggests that customer demand has been delayed rather than cancelled, potentially supporting future revenue growth. While the academic and government markets have largely stabilized, more supportive government policies would be essential to safely call it an inflection point. However, Danaher Corporation (NYSE:DHR) reported weaker-than-expected revenue in its biotechnology business and cut its full-year core revenue growth outlook. The company cut the upper end of its core revenue growth outlook range to 4% from 6% for the year, and maintained the lower end at 3%, primarily to take into account the effects of the weaker respiratory testing revenue. These trends overshadowed the improving trends in the life sciences tools market at a time when pharmaceutical and biotech companies are increasing research and manufacturing spending following the post-pandemic slowdown. Following the earnings, BofA told investors that while the overall total company numbers were “fine” and ahead of expectations, the result “was certainly messier than expected”, driven primarily by a miss in bioprocessing that caused the stock to tumble 11%. While the firm maintained a Buy rating on Danaher Corporation (NYSE:DHR), it cut the price target on the stock to $230 from $270, stating that the company now has to rebuild confidence in the execution and business. This holds especially true as “this is not the first setback/headwind to pop up in recent years” for the company. On the other hand, while Abbott Laboratories' (NYSE:ABT) outlook remains encouraging, a meaningful portion of its expected growth acceleration in the second half of 2026 depends on the successful commercialization of several pipeline products. Management has expressed confidence that sales and earnings growth will accelerate in the second half of 2026. While this outlook is supported by improving momentum across multiple business segments, investors will need to see that acceleration materialize over the coming quarters. Notably, Abbott Laboratories (NYSE:ABT) reaffirmed rather than raised its full-year comparable sales growth guidance of 6.5% to 7.5%, suggesting that management remains prudent despite its strong second-quarter performance. Hedge fund ownership for the two stocks provides additional insight into the investment thesis. According to Insider Monkey’s database of 1,022 hedge funds, hedge fund sentiment for the stock has improved moderately from the previous quarter, rising from 71 in fiscal Q4 2025 to 73 in fiscal Q1 2026. While the increase is modest, it suggests that institutional investors continue to maintain confidence in Abbott Laboratories’ (NYSE:ABT) long-term growth prospects following its strong quarterly performance. However, according to Insider Monkey’s extensive database tracking 1,022 hedge funds, Danaher Corporation’s (NYSE:DHR) hedge fund ownership dropped from 125 in fiscal Q4 2025 to 110 in fiscal Q1 2026. The total dollar value also dropped from $11.42 billion to $10.11 billion, suggesting that some institutional investors have become more cautious amid the company's recent execution challenges. William Blair highlighted the key pipeline products to watch for Abbott Laboratories (NYSE:ABT), which include the launch of Amulet 360 late in the year or early in 2027, the ramping-up launch of Volt in the U.S. and TactiFlex Duo OUS, and the potential for Libre reimbursement expansion. For Danaher Corporation (NYSE:DHR), investors should watch bioprocessing order growth over the coming quarters. If delayed revenues begin flowing into next year as management expects, investor confidence could improve significantly. Management also expects 3%-4% core revenue growth for fiscal 2026, making execution in its Life Sciences segment an important factor to monitor. Sustained momentum and execution in the life sciences segment could also offset weakness elsewhere in the portfolio for the company. While we acknowledge the potential of DHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DHR and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Interested in AllianceBernstein Holding L.P.? Here are five stocks we like better. AllianceBernstein delivered a strong second quarter, with record assets under management above $905 billion, nearly $800 million in net inflows, and its strongest sales quarter in five years. Adjusted earnings rose 8% to $0.82 per unit, while the operating margin expanded to 33%. Fixed income, alternatives and insurance-related mandates drove growth, including a $9 billion Equitable passive fixed-income mandate. Private-market AUM reached $91 billion ahead of schedule and exceeded $100 billion after the subsequent onboarding of $11.8 billion in commercial mortgage loans. The firm raised its 2026 performance-fee outlook to $115 million–$135 million and lowered its non-compensation expense and tax-rate forecasts. AllianceBernstein also expects to add at least $100 billion of Corebridge assets over time if the proposed Equitable-Corebridge combination closes. Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street AllianceBernstein (NYSE:AB) reported record assets under management and its strongest quarterly sales in five years during the second quarter of 2026, as fixed-income demand, private-market deployments and insurance-related mandates helped the firm return to positive organic growth. Adjusted earnings were $0.82 per unit, up 8% from a year earlier. Adjusted net revenue rose 5% to $888 million, while operating income increased 7% to $293 million. The firm’s adjusted operating margin expanded 70 basis points year over year to 33%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Abivax: Wall Street Catches Up to the Data “The second quarter reinforces the direction of travel for AB,” Chief Executive Officer Seth Bernstein said. “We reached record AUM, returned to positive organic growth, generated our strongest sales quarter in five years, and continued to scale the strategic growth platforms we’ve spent years building.” Assets under management ended the quarter above $905 billion, a record for the firm. AllianceBernstein generated nearly $800 million of firmwide net inflows, ending four consecutive quarters of outflows. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Hims & Hers Eyes Global Growth: Will $1.15B Eucalyptus Deal Fuel Its Recovery or Dilute Shareholders? Fixed income was the largest contributor to flows. During the quarter, the firm funded a $9 billion passive fixed-income mandate from Equitable. Demand for tax-efficient income and gains in the municipal business added roughly $3 billion of inflows, Bernstein said. Alternatives and multi-asset strategies generated more than $4 billion of net inflows, marking a sixth consecutive quarter of positive organic growth in that category. However, active-equity outflows were nearly $11 billion and taxable fixed-income outflows exceeded $4 billion, largely reflecting retail redemptions in Asia-Pacific. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Bernstein said allocations in the region have shifted toward local equity markets following their strong performance. President Onur Erzan said institutional demand for fixed income in Asia remained robust, including for both fundamental investment-grade and systematic strategies. Retail gross sales reached $31 billion, the highest quarterly level in five years, producing $900 million of net inflows. Excluding the Equitable mandate, retail gross sales were $22 billion, up 14% from the comparable 2025 period. AllianceBernstein ended the quarter with $91 billion in private-market AUM, surpassing the low end of its $90 billion-to-$100 billion Investor Day target more than a year before its 2027 goal. The firm subsequently onboarded approximately $11.8 billion of commercial mortgage loans from Equitable in July, ahead of schedule. Including those assets, private-market AUM exceeded the upper end of the original target range, executives said. The commercial mortgage assets are expected to begin generating management fees in the fourth quarter at a high-single-digit fee rate. Chief Financial Officer Tom Simeone said the blended rate is expected to rise over time as the firm originates new loans and adds servicing revenue. AllianceBernstein’s third-party insurance business managed $61 billion across roughly 100 clients at quarter-end, including $34 billion in general-account assets, up more than 30% from a year earlier. During the first half, the firm began seven new insurance relationships and deployed nearly $3 billion of third-party insurance capital on a gross basis. Executives also discussed the proposed combination of Equitable and Corebridge. AllianceBernstein expects to add at least $100 billion of Corebridge assets over time following the close of the transaction, which is expected around year-end. Simeone said roughly 20% to 30% of those assets could come online in 2027, with the pace accelerating in 2028. Erzan said the combined entity is expected to have about $350 billion in general-account assets and roughly $200 billion in separate-account assets. While initial asset transitions may include lower-fee core fixed-income mandates, executives said the assets should carry attractive incremental margins because they can be supported through existing infrastructure. Bernstein Private Wealth ended the quarter with $167 billion in assets and accounted for nearly 40% of firmwide revenue. The business recorded $700 million of net outflows during the quarter, which Bernstein attributed to seasonal tax-related selling, but net new assets grew at a 6% annualized rate over the prior 12 months. Erzan said alternatives represent nearly 10% of private-wealth client allocations and could rise to the mid-teens over time, subject to client needs. Private wealth raised approximately $900 million for alternatives during the second quarter. The firm’s separately managed account platform reached $69 billion in AUM and posted 17% annualized organic growth over the prior year. Its customized retirement platform grew to $117 billion in assets. AllianceBernstein also continued expanding active exchange-traded funds globally. The platform included 31 strategies and more than $20 billion in AUM, with assets growing 73% organically over the past year. The active ETF business generated approximately $100 million in annualized management-fee revenue, according to Bernstein. Base fees increased 7% year over year, reflecting higher average AUM, though shifts in product and channel mix affected the firmwide fee rate. The second-quarter fee rate was 37.7 basis points and was also affected by the June 30 timing of the $9 billion Equitable mandate, which added period-end assets but generated little quarterly management-fee revenue. Total operating expenses rose 4% to $595 million. Compensation and benefits increased 5%, while the compensation ratio remained 48.5% of adjusted net revenue. The company lowered its full-year non-compensation expense outlook to $620 million to $640 million from a prior range of $625 million to $650 million. AllianceBernstein raised its outlook for 2026 performance fees to $115 million to $135 million, from $95 million to $115 million previously. The increase reflects stronger expected public-market performance fees, while the outlook for private-market performance fees was reduced to $55 million to $65 million from $70 million to $80 million. Simeone said the private-market revision reflected unrealized portfolio marks and tax events at the investor level, rather than credit events. The firm also lowered its expected full-year tax rate to 5% to 6%, from 6% to 7%. AllianceBernstein is a global investment management firm that offers a broad range of research-driven strategies across equities, fixed income, multi-asset solutions and alternative investments. The firm provides active and quantitative portfolio management, drawing on in-house research capabilities to serve the needs of institutional clients, private wealth investors and intermediaries. Its product lineup encompasses mutual funds, separately managed accounts and customized investment vehicles designed to meet diverse risk-return objectives. The firm's roots date back to 1967 with the founding of Sanford C. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "AllianceBernstein Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

The 2026 Q2 earnings cycle continues to roll along, with the reporting docket remaining stacked in the coming days and weeks. The period has been another one of positivity so far, with several companies, including Abbott Laboratories ABT, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ all reporting record-breaking results in one way or another. Abbott Laboratories posted a double-beat relative to our consensus expectations while also lifting its adjusted EPS guidance. Sales of $12.6 billion reflected an all-time high for the company, growing by a double-digit 13% year-over-year. Image Source: Zacks Investment Research The stock has bounced back by 15% over the past month following a weak start in the first half of the year, with the recent set of quarterly results injecting positivity. The post-earnings reaction was the first one of positivity that we’ve seen in recent periods, with the recent earnings upgrade likely to keep momentum positive for the near-term. Keep in mind that the stock also offers a nice dividend payout, with shares currently yielding 2.4% annually. Payouts have also grown consistently over its history, with ABT not only a Dividend Aristocrat but a Dividend King as well. Taiwan Semiconductor, a current Zacks Rank #2 (Buy), has been caught up in the recent weakness we’ve seen among many leading AI-related names, down 14% over the last month overall. It manufactures the powerful chips needed to run next-generation AI technologies. Sales of $40.2 billion in its recent release grew 33% YoY and reflected a new record, with the company also raising its full-year revenue growth forecast to roughly 40%. TSM’s revenue has melted higher as of late, with the recent $40.2 billion in quarterly sales reported nearly doubling since 2024 Q2. Image Source: Zacks Investment Research Johnson & Johnson shares have quietly delivered a huge gain in 2026 so far, up nearly 30%. The 3.2% gain over the last month has similarly shown nice outperformance relative to the S&P 500, with the recent results leading to positive momentum post-earnings. Sales of $25.3 billion reflected a new quarterly record for the company, growing by a solid 6.6% year-over-year. It also increased both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history. Image Source: Zacks Investment Research Bottom Line The 2026 Q2 earnings season continues to roll along, and results have been positive for many companies, including Abbott Laboratories ABT, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ. Not all companies have seen great post-earnings reactions, but the overall earnings landscape remains one of strength. The 2026 Q2 earnings season continues to roll along, and results have been positive for many companies, including Abbott Laboratories, Taiwan Semiconductor, and Johnson & Johnson. Not all companies have seen great post-earnings reactions, but the overall earnings landscape remains one of strength. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Abbott Laboratories ABT has a stronger earnings setup after a second-quarter beat and a higher profit outlook. The question is whether that improvement is enough to justify buying the stock with valuation upside looking limited. The answer is balanced. Growth in devices, cancer diagnostics and emerging-market pharmaceuticals supports the case, but acquisition costs, integration risk and a modest premium leave little room for disappointment. Abbott stock is down 17.7% year to date, compared with the industry's steeper 20.4% decline. Image Source: Zacks Investment Research Abbott reported second-quarter adjusted earnings of $1.31 per share, up 4% year over year. Sales increased 13% to $12.59 billion, while comparable sales rose 4.8%. Medical Devices remained the key driver, with comparable sales up 8.4%. Diagnostics benefited from Cancer Diagnostics growth of 13.3%, while Established Pharmaceuticals rose 8.7% on a comparable basis. These gains helped offset Nutrition, where comparable sales declined 3.6%. Abbott raised its full-year adjusted earnings guidance to $5.45-$5.60 per share from $5.38-$5.58. It also reaffirmed comparable sales growth guidance of 6.5%-7.5%. Margin improvement is central to the earnings case. Adjusted gross margin expanded 107 basis points to 58%, giving Abbott more flexibility as higher-growth businesses such as Medical Devices and Cancer Diagnostics scale. Abbott trades at 17.66X forward 12-month earnings, above the Zacks sub-industry multiple of 16.35X but below the broader Zacks Medical sector and S&P 500 levels. That leaves the stock neither clearly cheap nor stretched relative to broader benchmarks. Image Source: Zacks Investment Research The $108 price target is based on 18.5X forward 12-month earnings. Compared with the share price of $103.06, that implies less than 5% upside, suggesting a measured appreciation case rather than an aggressive one. The Exact Sciences acquisition expands Abbott’s oncology diagnostics platform, but it also brings integration and financing pressure. Second-quarter interest expense rose to $299 million from $50 million a year earlier. Cost growth also bears watching. Reported research and development expense increased 22.9%, while selling, general and administrative expense rose 30.3%. If oncology growth slows or integration takes longer than expected, the deal could extend earnings dilution. ABT’s Growth Drivers Offer Support Abbott’s diversified model still provides support. Medical Devices continues to benefit from demand in electrophysiology, rhythm management, heart failure and diabetes care, while FreeStyle Libre remains a key franchise within continuous glucose monitoring. DexCom, Inc. DXCM is relevant in this context because it competes in glucose sensing and continuous glucose monitoring, an area central to Abbott’s diabetes-care growth profile. Medtronic plc MDT also remains a useful medtech comparison, given its broad cardiovascular and medical-device exposure. Nutrition is the potential swing factor. Sales improved sequentially by $127 million from the first quarter, helped by pricing actions and new products. If volumes stabilize, Nutrition could broaden Abbott’s earnings growth beyond devices and diagnostics. The bottom line is that Abbott’s earnings beat and raised profit outlook improve confidence, but the stock’s limited target-price upside and acquisition-related risks keep the risk-reward profile balanced. ABT currently carries a Zacks Rank #3 (Hold). Its Value Score of C, Growth Score of C and VGM Score of C suggest the stock does not stand out as either a pronounced bargain or a top-tier growth setup. The Momentum Score of A is more constructive for near-term trading sentiment. Still, with a Hold rank and mixed Style Scores, patience looks more appropriate than chasing the stock after the guidance update. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The 2026 Q2 earnings season will continue at a rapid pace in the coming weeks, with many notable companies on the reporting docket. The big banks helped kick the period off positively, though post-earnings reactions haven’t been great for all that have reported. But General Motors GM, Abbott Laboratories ABT, and Johnson & Johnson JNJ have been nice standouts so far, all raising guidance and seeing strength post-earnings. Guidance upgrades are generally one of the most bullish things to watch for in earnings season, as renewed outlooks can often lead to positive EPS revisions, the strongest driver of a stock’s near-term movement. General Motors posted a double-beat relative to our consensus expectations, with EPS reflecting a positive surprise of 14%. Sales of $48.0 billion came in 3% above our consensus sales estimate. The company raised its full-year 2026 EBIT adjusted guidance for the second time this year, with adjusted EPS guidance also getting raised. And for the cherry on top, it also lifted its automotive operating cash flow outlook, overall reflecting a rock-solid release. EPS revisions for its current fiscal year got an additional boost from the lifted outlook, with the trend overall remaining positive for the entire last year. The profitability picture of automotive players is always the key driver behind sentiment, and the updated guidance across key profitability metrics remains a huge positive for GM’s share momentum overall. Image Source: Zacks Investment Research Abbott Laboratories similarly posted a double-beat relative to our consensus expectations, with adjusted EPS of $1.31 reflecting a 2.3% beat while sales of $12.6 billion came in roughly 1% ahead of expectations. The company lifted its adjusted EPS guidance to $5.45-$5.60, modestly higher than the previous $5.38-$5.58 per share range. It also reaffirmed its current-year comparable sales guidance, now expecting accelerating revenue and earnings growth in the second half of the year. The stock has had a rough YTD performance overall, but the release has helped keep momentum going in a positive direction. Importantly, it reflects the first instance of the stock seeing positive gains over the last four quarters. The EPS revisions picture for its current fiscal year has finally started to show positive momentum following the release, with the more recent revisions definitely holding more weight from a near-term perspective. Continued positivity on the revisions front will support further share momentum, with the current 17.3X forward 12-month earnings multiple trading at a significant discount to the 23.3X five-year median. Image Source: Zacks Investment Research Johnson & Johnson beat on both the top and bottom line in its recent release, continuing a streak of earnings excellence. In fact, the company has posted a double-beat in nine consecutive quarters. Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history. EPS revisions for its current fiscal year have followed the upgrade, continuing the bullish trend established over the past year. The stock overall reflects a highly defensive investment given its consistent revenue-generating nature throughout many economic cycles. Image Source: Zacks Investment Research Bottom Line Guidance upgrades are always a bullish development to watch for in earnings releases, commonly leading to positive post-earnings share reactions. While it isn’t a guarantee that a stock will pop just because it raised its outlook, it still remains a favorable factor from a fundamental standpoint. Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors. All three stocks above - General Motors GM, Abbott Laboratories ABT, and Johnson & Johnson JNJ – have recently upped their outlooks. While they may not be as flashy as high-flying tech stocks amid the AI craze, their improving business fundamentals can’t be overlooked. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research