For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"My favorite conservative idea for 2008, Abbott Laboratories (NYSE: ABT), is a leading player in several growing health care markets, offering a wide range of prescription pharmaceuticals, nutritional and diagnostic products, and medical devices," says Jim Stack, money manager and editor of InvesTech Market Analyst.
"The company has a long history of stable sales and earnings growth fostered by its strong research and development program, acquisitions and global expansion. As a defensive health care play, we particularly like the diversification this company provides.
"It derives nearly 30% of profits from overseas markets, while pharmaceuticals account for 44% of sales, hospital products 20%, nutritional products 18% and diagnostics 15%.
"Currently, Abbott is enjoying double-digit sales growth in three of these four major divisions, and we expect this strength to continue at least through 2008. The company is a bright spot in the drug industry, which has been plagued in recent years by patent expirations and meager product pipelines.
"US pharmaceutical sales were up 18% and International sales increased 22% in the latest quarter, driven by strong growth in HUMIRA, Kaletra and TriCor.
"The story isn't only about recent growth, however. The company has a long dividend history reaching back to 1924.
"With a current yield of 2.2%, Abbott has increased its dividend annually for the past 33 years. For investors looking for a good defensive addition to their portfolios, this company offers an excellent combination of growth potential and financial strength."
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Reader Comments (Page 1 of 1)
1-09-2008 @ 4:26PM
Rah Mardhman said...
When do you think ABT will split again?
1-11-2008 @ 7:01PM
Ron said...
dido