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Here's Why You Should Hold ABM Industries in Your Portfolio
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ABM Industries Incorporated (ABM - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company’s earnings are anticipated to register 10.6% growth in the current quarter and 20.5% growth in fiscal 2020.
Aiding Factors
ABM is currently executing 2020 Vision, a comprehensive transformation initiative, aimed at achieving operational improvement and vertical realignment. As part of this plan, the company is upgrading its human-resources information, labor management and enterprise-resource planning systems. It is utilizing technology to enhance account planning, labor management, payroll and procurement. ABM is centralizing many of its back-office functions via Enterprise Services Center in Sugar Land.
The buyout of GCA Services Group strengthened ABM’s long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. GCA is now fully embedded in ABM’s organic base.
The company has been able to leverage its scale, increase purchasing power and identify preferred suppliers through consolidating purchasing activities, thereby saving cost in supplies and materials procurement. Post complete execution, the 2020 Vision will boost long-term profits on the back of an industry-based go-to-market approach.
Risks Associated
ABM Industries has a debt-laden balance sheet. Total debt at the end of the fiscal third-quarter fiscal 2020 was $751 million, while the company’s cash and cash equivalent is of $229 million, well below its debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the current debt of $87 million.
Zacks Rank and Key Picks
ABM Industries currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for Republic Services, Elastic and NV5 Global 7.9%, 26% and 13.7%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Here's Why You Should Hold ABM Industries in Your Portfolio
ABM Industries Incorporated (ABM - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company’s earnings are anticipated to register 10.6% growth in the current quarter and 20.5% growth in fiscal 2020.
Aiding Factors
ABM is currently executing 2020 Vision, a comprehensive transformation initiative, aimed at achieving operational improvement and vertical realignment. As part of this plan, the company is upgrading its human-resources information, labor management and enterprise-resource planning systems. It is utilizing technology to enhance account planning, labor management, payroll and procurement. ABM is centralizing many of its back-office functions via Enterprise Services Center in Sugar Land.
The buyout of GCA Services Group strengthened ABM’s long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. GCA is now fully embedded in ABM’s organic base.
ABM Industries Incorporated Price and Consensus
ABM Industries Incorporated price-consensus-chart | ABM Industries Incorporated Quote
The company has been able to leverage its scale, increase purchasing power and identify preferred suppliers through consolidating purchasing activities, thereby saving cost in supplies and materials procurement. Post complete execution, the 2020 Vision will boost long-term profits on the back of an industry-based go-to-market approach.
Risks Associated
ABM Industries has a debt-laden balance sheet. Total debt at the end of the fiscal third-quarter fiscal 2020 was $751 million, while the company’s cash and cash equivalent is of $229 million, well below its debt level, underscoring that the company doesn’t have enough cash to meet this debt burden. However, the cash level can meet the current debt of $87 million.
Zacks Rank and Key Picks
ABM Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , Elastic N.V. (ESTC - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Republic Services, Elastic and NV5 Global 7.9%, 26% and 13.7%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>