Analysts will be looking for earnings per share to hit $1.14 on revenue of $11.01 billion. While these metrics should be within realistic reach, Abbott hasn’t enjoyed a strong string of performances recently. In the prior Q3 and Q4 reports, the healthcare specialist merely met EPS targets, while missing on the top line.

To be fair, it did beat on both profit and growth in Q2. Unfortunately, the impact has been limited, with ABT stock losing over 21% in the past 52 weeks. As such, options traders aren’t taking any chances. When you consider the positioning of trades in the derivatives market, the volatility skew for the upcoming April 17 expiration date shows clear downside risk protection.

Again, no one should be surprised. Perusing the technical chart, the five-year look reveals a security that has plundered 19% of value. Obviously, that money could have been put to better use, imposing an air of regret on ABT stock.

Still, for the aggressive contrarian, a deeper investigation may be warranted.

Volatility Skew is Relatively Promising for ABT Stock

Let me get something straight from the get-go: the smart money is not necessarily prescient. Yes, the “smart” label implies a level of sophistication — and that assumption is generally warranted. However, there’s no indicator that absolutely reveals what top options traders are thinking. And even if such an indicator existed, following it wouldn’t automatically lead to profits.

Nevertheless, options screeners like volatility skew provide important clues regarding sentiment. Further, I believe the skew is a more reliable mechanism for assessing sentiment — rather than, say, social media posts — because we’re dealing with professionals and institutional players.

Simply put, these are the folks who have serious money. They can move the market if they want to. However, many of these elite traders choose to position themselves first in the options market to avoid triggering huge waves in the open arena. And that’s ultimately the signal provided by the volatility skew — we can see how much risk protection the smart money is willing to pay to have confidence in the trade.

In the case of ABT stock, the skew for the April 17 expiration date shows relative calm near the current spot price. While it is true that there is urgency in the left side of the axis (thus indicating that the market is aggressively adjusting implied volatility per unit of distance from spot), the fact that such protection exists shouldn’t catch anyone by surprise. After all, we’re talking about a severely underperforming blue-chip stock.

What is surprising, though, is the right side of the skew. Despite the prior carnage in Abbott stock and the lingering doubts, the smart money is clearly pricing for upside convexity. Stated differently, while they may fear further downside, these sophisticated traders recognize the potential for a near-term bounce back. Subsequently, they don’t want to be caught with at least some exposure to the bullish side of the trade.

What’s more, the convexity is significantly elevated, even though the magnitude of urgency isn’t as strong as for downside mitigation. Suffering extensive red ink, the return of bullish sentiment will be a welcome sight for intrepid contrarians.

Leveraging Inductive Analysis to Trade Abbott Stock

When making any forecast about the future, induction is unavoidable. This term refers to a method of analysis that begins with specific observations to formulate a general rule or theory. Induction relies on the uniformity of nature or the assumption that the future will behave like the past.

A simpler way to define the process is pattern recognition. By recording various events and tracking their evolution, we can postulate forward probabilities when those same events materialize in the present space. Although this is arguably the best mechanism for forecasting stock price movements, the methodology comes with a serious caveat.

Basically, if you see a thousand white swans, it does not necessarily mean that all swans are white. Should the next swan be black, the presumed absoluteness of the inductive model would collapse immediately.

As a result, market analysts never talk in absolutes. Because no one indicator or signal logically compels a security to act in a certain way, analysts use the language of probabilities, not certainties.

While these caveats may sound problematic, induction is powerful because it conditions market behaviors on specific (discretized) events. In other words, we’re not looking at a smorgasbord of price action and forecasting next trades on vibes. Rather, we’re making specific observations and assigning probabilities of what may happen in the future based on these established markers.

Diving into the Details

Using data extending back to January 2019, we can observe that an average 10-week-long position generally features a tight distribution. Using the current ABT stock price as an anchor, a 10-week hold would be expected to range between $100 and $103.50.

However, we’re conditioning Abbott stock under the current framework. In the past 10 weeks, ABT printed only three up weeks, leading to an overall downward slope. This 3-7-D sequence features a unique forward distribution relative to the aggregate condition of all sequences. Again, using the current spot as an anchor, we would expect ABT to land between $95 and $115 over the next 10 weeks.

Since this range stems from an inductive inference, I cannot say that ABT is logically compelled to land in this distribution. However, if you want to get extremely aggressive, you may consider the 105/110 bull call spread expiring June 18.

Should ABT stock rise through the $110 strike at expiration, the maximum (capped) payout would clock in at nearly 186%. That would turn a $175 net debit into a $325 profit. Further, the second-leg strike is within the observed forward distribution of ABT under 3-7-D conditions.

If you want to dip your toes into true contrarianism, Abbott should be on your radar.

Let me be clear, sometimes crushed stocks deserve to be crushed. In many cases, something fundamental or structural has changed the thesis for owning the stock.

However, sometimes selling momentum gets overdone. When that happens, it’s usually the company insiders who are the first to know.

That’s why you should always keep an eye on insider buying. After all, if insiders are putting their money where their mouths are, it’s a sign of confidence.

Crushed Stocks #1: Abbott Laboratories

Abbott Laboratories (NYSE: ABT) is down about 16.6% in 2026. However, almost all of that loss came after the company’s fourth-quarter earnings report on Jan. 22. The stock was crushed following the report. In fact, it had its worst showing in more than 20 years, gapping from about $120 to $105.60.  

This was despite the fact that the company’s adjusted earnings beat analysts’ forecasts by a penny. However, sales came to $11.5 billion, missing the $11.8 billion estimate.

The sell-off made the report look like a disaster.  However, for Chairman and CEO Robert Ford, it was an opportunity. After the drop, he reportedly bought 18,800 shares of ABT for just over $2 million on January 23.

Despite the earnings mess, Ford said Abbott was well-positioned to accelerate growth in 2026. “While we know we’ve got some work to do in nutrition, I can guarantee you that we’re not distracted by that,” he added, as quoted by Barron’s.

Crushed Stocks #2: GameStop

GameStop Corp. (NYSE: GME) was one of the original meme stocks, and it’s never shaken that reputation. To be fair, the company and its loyal band of retail investors have leaned into the reputation.

The company is trying to make a pivot from being a retail dinosaur to being a digital-first gaming and entertainment company. This has included speculation in Bitcoin and forays into seemingly unrelated businesses to manufacture a new equity story.

GME stock is down more than 51% in the last five years. But it’s showing big signs of life in 2026. That’s caused CEO Ryan Cohen to buy 500,000 shares for about $21.12 each for nearly $21.4 million. 

He wasn’t alone. Board member Alain Attal picked up 12,000 shares for about $20.90 each. Even investor Michael Burry disclosed a long position in GME, noting that he likes the company’s untapped value and strategic optionality under Ryan Cohen.  

As noted by Seeking Alpha, “Burry framed GameStop not as a typical retail business, but as a cash-generating platform with a young, disciplined leadership team and the optionality to deploy billions in a patient, intelligent manner.”

Crushed Stocks #3: Elanco Animal Health

Since bottoming out in April at around $8 a share, Elanco Animal Health Inc. (NYSE: ELAN) stock is now up to $24 and could rally even higher.  Most recently, CEO Jeffrey Simmons paid $478,500 to buy 22,000 shares on December 11 at an average price of $21.75 a share.

The company, which was spun off from Eli Lilly in 2018, has been explosive thanks to key product launches, including chewable parasite preventative for dogs, as well as anti-itch medication.

Americans spend big money on their pets. In 2024, the average household spent about $40 billion on vet care and pet medications alone. By 2027, spending is expected to soar to $173 billion, as noted by Fortune. Americans will spend a total of $157 billion on their pets by the end of 2025; according to projections, U.S. pet spending will total almost $200 billion in 2030, as noted by Capital One Spending.

Those are substantial catalysts for pet companies like ELAN.

Crushed Stocks #4: Bath & Body Works

Bath & Body Works (NYSE: BBWI) hasn’t had a great year. Since the start of 2025, BBWI fell from about $40 to $14.28. It’s now back to $21.65, and showing some signs of life again after tanking on earnings.

But before the recent rally, insiders were buying. 

On November 21, director Lucy Brady bought just over 3,469 shares for $14.40 a share. Huntington Bancshares CEO Stephen Steinour bought 6,700 shares for $14.86 per share. Former Mastercard executive Francis Hondal bought 3,343 shares for about $15 per share. Hershey VP and CFO Steven Voskuil bought 20,000 shares for about $15.04 per share. 

On November 24, Board Chair Sarah Nash picked up 10,000 shares for $15.58 per share. Signet Jewelers’ CEO James Symancyk bought 22,500 shares for about $15.58 per share.

Crushed Stocks #5: Fiserv

Fiserv Inc. (NASDAQ: FISV) operates in the emerging financial technology (fintech) space. But that hasn’t meant much to investors. Just weeks ago, FISV stock gapped from about $130 to a recent low of about $60. 

However, several company insiders have had enough. CFO Paul Todd just bought 17,000 shares for $1 million. Chief Administrative and Legal Officer Adam Rosman just bought 7,900 shares for $499,201.

This was after the stock was sent screaming lower after the company cut its growth forecast and earnings outlook. The company also said its operations in Argentina would be hurt by poor economic conditions, which forced the stock below $100 for the first time since 2003, as noted by Barron’s.

Final Thoughts on Insider Buying

There are many reasons why insiders will sell a stock. For many executives, stock options are an integral part of their compensation. These sales are usually orchestrated well in advance and without regard to the stock’s current price.

However, insiders are only buying for one reason. That is, they believe the stock is undervalued. If you’re looking for crushed stocks with comeback potential, these five stocks may be a good place to start.