5 Stocks Still Offering Stunning Value

Stock #1: Abbott Laboratories (ABT)

Abbott Laboratories (ABT) has put together a balanced stable of businesses, including
pharmaceuticals, diagnostic products, nutritional products and medical devices (such as drug-eluting stents, where Abbott’s
Xience is the #1 seller). In the pharma area, the company boasts one of the industry’s lowest patent-expiration rates over
the next few years — zero through 2012.

The analyst consensus calls for ABT to boost earnings about 10% this year. How good is that? Amid the deepest economic slump
since the 1930s, most companies would give their eye teeth for any uptick in profits. Yet the stock is quoted at a mere 12X estimated
FY09 net, down from 21X only two years ago.

I’m also delighted with Abbott’s dividend yield, a generous 3.7% at last glance. ABT has sweetened its payout 37
years in a row, and has never missed a dividend since 1924.

Abbott is a growth story, too — now muscling in on the cataract and LASIK businesses. You wouldn’t guess from Abbott’s
stock chart, though, which shows a terminal slump from $60 to $42.

Indeed, the thunderous March rally of 34% left Abbott in the dust, down another 4%.

But get ready for a surprise comeback, soon. From here, I’m projecting a total return of 40%–65% over the next 12–18
months.

NEXT: Stock #2: Entergy (ETR)