Abbott (ABT): Contrarian sees healthy gains

Posted Jan 30th 2009 12:30PM by Steven Halpern
Filed under: Newsletters, Abbott Laboratories (ABT), Stocks to Buy

"I think 2009 will be a very tough year for the economy but an exceptional year for stocks," says Alexander Green of The Oxford Club. Here, he looks at Abbott Laboratories (NYSE: ABT).

"The company has been around for more than 120 years. It currently operates in more than 130 countries, selling hundreds of products, including Ultane (an inhaled anesthetic), the anti-infective Biaxin XL, and TriCor and Niaspan to manage cholesterol.

"However, Abbott's biggest growth driver is Humira, a blockbuster drug that targets autoimmune disorders. The drug has received FDA approval to treat a number of diseases, including rheumatoid arthritis, psoriasis and Crohn's disease.

"Last July, the FDA approved Abbott's newest drug-coated stent, Xience V. And management has been surprised and pleased by how rapidly doctors have adopted the new technology. (Drug-coated stents are now used in nearly 70% of procedures in the United States.)

"Abbott's numbers are already excellent. Third-quarter profit jumped 51% on a 17.6% increase in revenue. (Sales hit $7.5 billion.) With rapid expansion into international markets and a slew of new products becoming available over the next 12 months, this company's prospects remain excellent."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

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