Near Perfect Ratings And Upward Trend Channel Are Good News For Abbott Labs

When I view the sentiment indicators, I prefer to see some sense of bearishness from investors. From a contrarian view, investors or analysts that are bearish can reverse their opinion on the stock and help push it higher. If everyone is already bullish, it leaves more room for them to reverse to a bearish position and push the stock down.

Ideally, you find extreme pessimism on stocks that you’re bullish on and heavy optimism on stocks you are bearish on. In the case of Abbott, neither the analysts’ ratings nor the short-interest ratio are extremely optimistic, and even if they were, the bullish sentiment seems warranted based on the strong fundamentals and the upward trend on the chart.

Given the overall picture for Abbott, I can see the stock moving up to the $160 level within the next six to nine months. The company has seen strong earnings and revenue growth and its profitability measurements are solid. The pattern on the chart shows an upward trend and the little dip in February brought the stock down to support. The sentiment isn’t a big driver behind the bullish posture, but it also isn’t a negative.

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