This Underappreciated Healthcare Stock Is on Sale: Should You Buy?

Medical devices giant Abbott Laboratories (NYSE: ABT) was on fire last year for one simple reason: Even though many of its business segments suffered due to the pandemic, the company established itself as one of the leaders in the COVID-19 testing market. Abbott Laboratories sold several hundred million coronavirus test kits last year, which helped keep the company's revenue and earnings afloat. In the fiscal year 2020, ending Dec. 31, Abbott Laboratories recorded sales of $34.6 billion -- an 8.5% year over year increase.

However, the healthcare giant's coronavirus testing tailwinds seem to be coming to an end. The company recently lowered its guidance because it anticipates a decline in demand for COVID-19 tests. This new development sent Abbott Laboratories' stock tumbling by more than 7%. And for the year, the company's shares are up by a measly 0.48%, compared with gains of 12.86% for the S&P 500. Should you buy Abbott Laboratories' stock on the dip?