"Being contrarians, we are always looking for laggard stocks with the potential to rebound," says turnaround expert George Putnam.

In his The Turnaround Letter, the advisor reviews four medical and pharmaceutical stocks that have been among the worst performers in the S&P 100 since the market bottom. Despite their poor performance, he thinks they may be due for a rebound.

"We think that investors who got left behind by the first leg of the market rally are struggling to catch up.

In her The MoneyPaper, editor Vita Nelson looks to stocks offering dividend reinvestment plans. Here, she highlights Abbott Laboratories (NYSE: ABT) as a featured holding in her model portfolio.

"Abbott is a diversified, multinational, health care firm.The shares have not responded to the recent stock market rallies in part due to the defensive nature of health care stocks.

"Uncertainty regarding health care reform is also a factor in the static share price of recent months. ABT shares are now trading below 11 times 2010 earnings estimates, compared with about 15 for the S&P 500.

"Abbott Laboratories (NYSE: ABT) is continuing its long record of rewarding shareholders," notes Alex Kolb In Zacks Elite, pointing to its 341st consecutive quarter of dividends since 1924.

"Abbott is a global, broad-based health care company that develops, manufactures and markets pharmaceuticals and medical products, including nutritionals, devices and diagnostics.

"The company employs more than 68,000 people and markets its products in more than 130 countries.

"The company recently released new data, showing that a combination of its new TriLipix triglycerides medicine and a low dose of AstraZeneca's Crestor cholesterol drug are better than the individual pills for treating heart problems.

Leo Fasciocco, who specializes in stocks that have shown technical "breakouts," turns to Abbott Labs (NYSE: ABT) as the latest featured stock in his top notch Ticker Tape Digest.

"Abbott has been acting strong depite market weakness, indicating that money moving into ABT, perhaps as a defensive play.

"ABT has a low beta of 0.14 versus the S&P 500's 1.00. That would indicate that ABT is a low risk play. In any case, the stock is set up nicely for a breakout from an eight-week flat base. With good earnings coming this year, we suggest accumulation of the shares.

"Abbott's products include prescription drugs, coronary and carotid stents, and nutritional liquids for infants and adults.

"The stock's long-term chart shows ABT 'knocking on the door' of a new high. It just needs to get over 61.09. If it can do that it could well draw in more buying.

"ABT is acting strong and is a good spot for institutional money to move into in a difficult market. We suggest accumulation of a partial stake in ABT with further buying to be done on a move over 60.

"Overall, we see ABT as a conservative play with low downside risk. We are targeting the stock for a move to 70 within the next few months."

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.

"You can invest for all the right reasons and still get the wrong result," notes long-standing turnaround stock expert George Putnam, referring to the poor performance of the pharmaceutical sector in recent years.

Here, in his industry-leading The Turnaround Letter, he offers a fascinating review of 10 leading drug stocks which he now believes offer a combination of growth potential at "pretty cheap" valuations. Here is his overview.

"In 2000 and 2001, when the Internet boom was becoming a bust, many smart investors turned away from technology stocks and put their money into drug stocks. How could you go wrong with the big pharmaceutical companies?

"Demand for their products was growing as the population aged. These companies had huge research
and development programs that seemed to keep cranking out new blockbuster drugs. And most of them had great balance sheets, with many paying handsome dividends.

"Much of this reasoning has been borne out in the intervening years. Many large drug manufacturers have rung up substantial revenue gains over the last decade. So what's happened to the big drug stocks? With few exceptions they have gone sideways or down – in some cases down a lot.

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.

Abbott Laboratories (NYSE: ABT) will not sell its primary in-vitro and point-of-care diagnostics businesses to General Electric (NYSE: GE) as planned, both companies say, due to a disagreement on the final terms of the $8.13 billion proposal.

Despite being approved by regulators in the U.S. and Europe, GE says that it was in both of their best interests to terminate it. The move would have given GE its first entry into the laboratory testing space.

The Wall Street Journal believes that the breakup may have been related to the continued regulatory problems at Abbott's Irving, TX, manufacturing facility. The unit has been problematic for Abbott, with $100 million in fines back in 1999. The FDA called Abbott's devices "adulterated" and "misbranded," which could have made GE nervous about taking on regulatory issues.

Some analysts say the deal's failure is a good thing because they think GE was overpaying. "Health care," says JP Morgan's Stephen Tusa in the Journal, "is still a place that we want to see them invest."

Abbott said the decision to cancel the contract would have no impact on their previously issued second-quarter or full-year guidance, excluding specified items. JP Morgan told investors this morning to buy shares of Abbott on the weakness from the news, saying that while the break-up is a setback, the company's broader plan is still intact.

Summer Street Research believes the lack of a deal between GE and Abbott could fuel speculation that one of them may now be interested in pursuing Ventana Medical Systems (NASDAQ: VMSI), the medical equipment supplier that recently rejected a $3 billion hostile offer from Roche Holding Ag (OTC: RHHBY).

One of the world's largest companies, General Electric Company (NYSE:GE), will be acquiring some of the medical diagnostics business of Abbott Laboratories for $8.13 billion in cash, according to both companies as as late last week.

What does this move give GE? It will deeply increase the importance GE has been placing recently on its health care business, which right now is pegged at a $16 billion figure for GE annually.

GE CEO Jeff Immelt said the acquisition is "consistent with GE's strategy to invest in high-technology global infrastructure businesses that deliver strong top-line growth, earnings expansion and expanded margins." Easy enough said.

Abbott's partial sale to GE will net the company about $6 billion in after-tax cash according to the company, which will use the money primarily to pay down debt and supplement share repurchases.