Plenty of companies are reporting earnings this Wednesday morning, one of which is Abbott Laboratories (NYSE: ABT).

The health-care giant reported third-quarter earnings of 95 cents per share, far better than last year's 69 cents per share. Taking items out of the equation, Abbott would have earned 92 cents per share, which is two cents better than the consensus estimate. Quarterly revenue matched the consensus estimate for $7.76 billion.

Abbott Laboratories (NYSE: ABT), the broad-based health care company that produces both Humira and Similac, is scheduled to discuss its third quarter 2009 financial results in a conference call Wednesday at 9:00 AM ET. You can catch the live webcast on the company's website.

During the three months that ended in September, Abbott Labs announced acquisitions of Visiogen, Evalve, and Solvay pharmaceuticals, as well as declared its 343rd consecutive quarterly dividend. Analysts surveyed by Thomson Reuters expect this suburban Chicago company to report that earnings rose 12.2% from a year ago to $0.90 per share. Sales for the quarter are expected to be 3.3% higher to $7.8 billion.

The market may be entering a more volatile period or it may just go sideways for a while. The last few weeks the market has been down. Maybe it is because the rapid rise mid-March through mid-June is forcing people to stop and take a breath, or perhaps it is because investors are having second thoughts about whether the "green shoots" Ben Bernanke spoke of in regards to a healing economy were really just weeds.

All in all, I still believe that there is opportunity in this market and I have been trying to point out how investors can get in with as little risk as possible, while being rewarded for their patience now, and when a recovery ensues ---- whenever that is. To this end, two weeks ago I posted Serious Money: Five high-yield, safe, diversified stocks and decided to follow up with another five I think will produce similar results.

"Stocks are likely in a new downtrend," says Michael Ashbaugh. In Marketwatch's The Technical Indicator, he looks at the S&P's prospects and some drug stocks set to buck the trend.

"The S&P 500 has violated its major moving averages in the closely tracked 900 area. The recent downturn was convincingly bearish, placing the burden on market bulls to reassert the uptrend.

"After finding resistance in the 923 area, the S&P sold off sharply, edging back under its 200-day moving average, which currently holds at 900 and now marks resistance. This is bearish price action.

"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.

Abbott Laboratories (NYSE: ABT - option chain) shares are higher today despite the surrounding market meltdown after a study released over the weekend showed the company's Xience stent showed significant safety advantages over competitor Boston Scientific's (NYSE: BSX) Taxus stent. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT.

ABT opened this morning at $46.69. So far today the stock has hit a low of $46.65 and a high of $47.90. As of 11:35, ABT is trading at $47.73, up $1.13 (2.4%). The chart for ABT looks bullish and S&P gives ABT a positive 5 STARS (out of 5) strong buy ranking.

"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.

Many of us would be happy to benefit from a quiet retirement without facing concerns of losing all of our hard earned money. Fortune 40 gives us a helping hand by suggesting some big names to invest in that could offer us the results that we are looking for.

One such company is Abbott Laboratories (NYSE: ABT), whose earnings surged 35% during its last quarter, helped by its famous anti-inflammatory drug Humira and HIV treatment Kaletra. Looking ahead to the company's performance, CEO Miles White is planing to keep his main attention on its medical devices unit which is seen as a key element against strong competition.

Fortune 40 also looks at beverage maker The Coca-Cola Company (NYSE: KO), which benefits from strong international gains able to beat recent weakness in U.S. In addition, it looks like the company's acquisition of Glacéau and its VitaminWater brand offer it a good support to outperform on the market.

"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.

Abbott Laboratories (NYSE: ABT) shares are trading higher after the Food and Drug Administration denied regulatory approval for Merck & Co.'s (NYSE: MRK) cholesterol drug Cordaptive. The Merck drug would have directly competed with ABT's own cholesterol drug. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT.

After hitting a one-year low of $49.58 in July, the stock hit a one-year high of $61.09 in January. ABT opened this morning at $53.32. So far today the stock has hit a low of $52.97 and a high of $53.73. As of 12:10, ABT is trading at $53.24, up $1.63 (3.2%). The chart for ABT looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 13.6% return in just seven weeks as long as ABT is above $50 at June expiration. Abbott would have to fall by more than 6% before we would start to lose money. Learn more about this type of trade here.

Shares of drug company Abbott Laboratories Inc. (NYSE: ABT) were trading higher this morning after the company reported that its first-quarter profit jumped 35%, helped by strong international demand for its rheumatoid arthritis medication Humira. However, the stock is down 1% just before noon.

For the quarter, Abbott Laboratories reported that its profit climbed to $938 million, or 60 cents per share, boosted by higher sales of its prescription drugs and medical devices that benefited from favorable foreign exchange rates. Excluding special items, the company's earnings came in at 63 cents a share, beating analysts' estimations for quarterly earnings of 62 cents a share.

The pharmaceutical company also announced a 14% growth in revenues, to $6.77 billion, up from $5.95 billion a year earlier. Revenue during the period was helped by a 54% increase in its drug Humira sales which surged to $878 million in the first quarter. Analysts, on average, were expecting the company show $6.53 billion in revenue, according to Thomson Financial.

Abbott Laboratories (NYSE: ABT) shares are trading higher today as the company announced favorable results concerning a clinical trial of its experimental heart stent Xience. ABT reported that patients receiving the stent were less likely to die, have a heart attack, or need additional surgery after two years than with Taxus, a device made by competitor Boston Scientific Corp (NYSE: BSX). There was also positive news from a drug trial concerning the company's TriLipix. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT.

After hitting a one-year low of $49.58 in July, the stock hit a one-year high of $61.09 in January. ABT opened this morning at $53.81. So far today the stock has hit a low of $53.62 and a high of $55.40. As of 1:00, ABT is trading at $55.07, up $2.00 (3.8%). The chart for ABT looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $47.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just 7 weeks as long as ABT is above $47.50 at May expiration. Abbott would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.

ABT hasn't been below $49 at all in the past year and has shown support around $51 recently. This trade could be risky if the company's earnings (due out in mid to late May) disappoint, but even if that happens, this position could be protected by the support the stock might find around $50, where it has bottomed out quite a few times in the past two year.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in ABT or BSX.

The Coca-Cola Company (NYSE: KO) should not have a problem selling Coke, even in a recession. It traded up to $65.31 from 52-week low of $45.56.

The Southern Company (NYSE: SO) is an electrical utility with safe yield of 4.1%. It moved up to $40.52 from 52-week low of $33.16.

Abbott Laboratories (NYSE: ABT). Healthcare seems like safe haven. ABT traded up to $60.29 from 52-week low at $49.58.

Genzyme Corporation (NASDAQ: GENZ). Analysts say sales should be strong for several years. Stock was up to $79.70 from 52-week low of $58.71.

Douglas A. McIntyre is an editor at 247wallst.com.

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) is scheduled to announce its Q3 earnings before the market opens tomorrow. The company's last three earnings announcements have narrowly beaten analyst expectations, and its year-ago quarter was in-line with expectations. The company is predicting earnings between 64 and 66 cents per share while analysts are forecasting earnings of 66 cents per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ABT.

After hitting a one-year high of $59.50 in May, the stock has struggled against resistance around $56 over the past few months, and has dropped sharply in recent weeks. This morning, ABT opened at $52.11. So far today the stock has hit a low of $51.66 and a high of $52.18. As of 10:45, ABT is trading at $51.99, up 7 cents (0.13%). The chart for ABT looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a January bear-call credit spread above the $60 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in 3 months as long as ABT is below $60 at January expiration. Abbott would have to rise by more than 15% before we would start to lose money.

ABT has not been above $60 ever and has shown some resistance around $56 recently. This trade could be risky if the company's earnings tomorrow morning are a positive surprise, but even if that happens, this position could be protected by the resistance the stock formed when it topped around $59 back in April and May.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: At publication time, Brent currently controls a bullish hedged positions in ABT. Both this trade and the one above can expire profitably at the same time.

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