Abbott Labs

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Pharmaceutical firm Abbott Labs ( ABT) isn't your typical big pharma firm. Instead, this stock has exposure to other, equally attractive niches of the medical market and recurring revenue opportunities. Even though shares are mostly flat on the year, there's significant upside potential left in this stock, and the fundamentals make it a strong name for this market.

Abbott generates around three-quarters of its sales from the pharmaceutical business, an industry that's been under pressure as patent expirations and medical reform proposals threaten to derail profit margins. That said, Abbott is among the best-positioned to handle the transition thanks to limited looming expirations and a mature pipeline of potentially lucrative names.

Financially, Abbott is looking good right now. The company generates significant cash flows, money that largely makes its way to shareholders in the form of a dividend. With a 3.87% yield right now, this stock is looking cheap. We're betting on a solid fundamental backstop in Abbott to mitigate any more selling this week.

Abbott shows up on recent lists of 10 Top High-Yield Momentum Stocks and 10 Top Stocks From S&P Equity.

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