Why a Product Recall Won't Change This Company's Prospects

Healthcare giant Abbott Laboratories (NYSE: ABT) has underperformed the market this year. Marketwide worries such as rising inflation and geopolitical tensions aside, the medical devices specialist has been hit hard partly due to issues related to its infant formula business. In February, Abbott Laboratories voluntarily recalled infant formula manufactured at one of its U.S. plants after four infants who had consumed the company's products were hospitalized with bacterial infections.

This problem is worth keeping an eye on as it negatively impacted Abbott Laboratories' revenue. However, it won't derail Abbott Laboratories' long-term prospects, and the company provided more evidence for that in its latest quarterly update. Here's why Abbott Laboratories' future remains bright.