Abbott shares drop amid sector rotation but growth in diabetes and devices signals buying opportunity.

Abbott Laboratories shares have fallen from $127.12 to $90.53 due to sector-wide rotation and concerns over its $21 billion Exact Sciences acquisition. Despite this, its diabetes franchise, led by the FreeStyle Libre glucose monitor, and medical devices unit are growing strongly, with CGM sales up 13.8% and medical devices revenue up 13.2%. Abbott's forward P/E is 16, and analysts see upside to a $116.54 target, with 20 out of 27 rating it a Buy or Strong Buy. Risks include integration costs and competition, but the stock offers a 2.76% dividend yield and potential growth from expanding diabetes treatment markets. Investors may wait for Q2 earnings on July 20, 2026, to confirm growth momentum before buying.