Abbott Laboratories has been resilient throughout the pandemic, which is somewhat surprising. The company specializes in developing medical devices
, a business that was hit hard by the crisis, in part due to hospitals postponing elective and non-essential procedures. However, Abbott was able to navigate the downturn thanks to its COVID-19 diagnostic test kits.
While the coronavirus diagnostics market is less than a year old, it is already worth billions in revenue. According to Grand View Research, the segment will be worth $19.8 billion this year
, and it will continue to grow at a compound annual growth rate (CAGR) of 3.1% through 2027. The fact that we are witnessing a rise in new COVID-19 cases isn't good, but companies like Abbott Laboratories will benefit.
Thanks to its work in the COVID-19 diagnostic market, the company should be able to offset some of the losses it will incur in its other segments. During its third quarter ending Sept. 30, Abbott recorded sales of $8.9 billion, 9.6% higher
than the prior-year quarter. The company's diagnostics segment reported $2.6 billion in sales -- a 38.2% year-over-year increase
-- largely thanks to its COVID-19-related products. Abbott Laboratories offers other growth prospects as well, especially within the diabetes
The company's FreeStyle Libre is a continuous glucose monitor (CGM)
that has had rapidly growing sales. During the third quarter, the company's diabetes care segment generated $843 million in sales, 26.9% higher
than the year-ago period. This was driven by the FreeStyle Libre, which had sales for the quarter increase by 37.9% year over year. Abbott Laboratories is well-positioned to keep profiting from the growing CGM market, and thanks to its COVID-19 (and other) efforts, the healthcare stock will probably keep outperforming the market.