We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ABB Wins $75M Order for Power Transmission Link in Brazil
Read MoreHide Full Article
ABB Ltd. secured its third contract in a week, as it clinched a $75-million power order for long-distance power transmission link in Brazil. The contract follows two others earlier in the week, one for the modernization of the existing Sylmar HVDC (high-voltage direct current) converter station in California and another to deliver a transmission link with the capacity to bring reliable electricity to over 80 million people in India.
The current order entails supplying advanced converter transformers for the Belo Monte 800 kilovolts (kV) ultra-high-voltage direct current (UHVDC) transmission link. This link will transmit clean power generated in the north of Brazil, from the Xingu substation, to the Rio Substation in the southeast. The transmitted electricity will be able to cater to the needs of roughly 10 million people.
ABB had booked the order in fourth-quarter 2016.
ABB forged HVDC technology over 60 years back and has been awarded over 110 HVDC projects till date. UHVDC is an advancement of HVDC – representing the greatest capacity and efficiency increase in over two decades. ABB will employ its UHDVC technology for this project, which helps balance renewable and conventional electricity supply and transmit clean power across long distances efficiently, while minimizing losses.
This is part of the company’s “Next Level” strategy, which focuses on integrating renewable sources with traditional grids, for reliable and efficient transmission of power.
ABB is likely one of the world’s best-managed industrial infrastructure, power and automation companies. Its shares recorded an average return of 12.8% over the past six months, outperforming the Zacks categorized Machinery - Electrical industry average of 8.3%.
In addition, the company has been witnessing solid activity on the earnings estimate revision front over the past month, reflecting bullish analyst sentiment. Over the past 60 days, the company recorded two upward estimate revisions versus none lower. This has led the Zacks Consensus Estimate for 2016 earnings to trend up from 98 cents to $1.09, reflecting an impressive increase of 11.2%.
We expect ABB to benefit from huge investments in HVDC and ultra high voltage DC power transmission projects, as well as continuing investments in the maintenance of aging electric infrastructures.
Further, over the long haul, this Zacks Rank #1 (Strong Buy) company believes that its prospects are bright for all three major markets, including utilities, industry and transport & infrastructure. Positive development in the electricity value chain, rapid progress of Internet of Things, Services and People, rapid urbanization and a surge in energy-efficient transport & infrastructure bode well for the company, over the long term.
KBR, which operates as an engineering, construction, and services company worldwide, has an average positive earnings surprise of 3.9%, for the trailing four quarters, beating estimates twice.
Headquartered in Milwaukee, WI, A.O. Smith is one of the leading manufacturers of commercial and residential water heating equipment, as well as water treatment products of the world. The company also boasts a striking earnings surprise history and has an average positive surprise of 5.9% for the trailing four quarters, beating estimates all through.
Donaldson Company manufactures and sells filtration systems and replacement parts worldwide. It operates through two segments, Engine Products and Industrial Products. The company managed to beat earnings estimates twice over the trailing four quarters. In the last reported quarter, it surprised estimates by 8.6%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ABB Wins $75M Order for Power Transmission Link in Brazil
ABB Ltd. secured its third contract in a week, as it clinched a $75-million power order for long-distance power transmission link in Brazil. The contract follows two others earlier in the week, one for the modernization of the existing Sylmar HVDC (high-voltage direct current) converter station in California and another to deliver a transmission link with the capacity to bring reliable electricity to over 80 million people in India.
The current order entails supplying advanced converter transformers for the Belo Monte 800 kilovolts (kV) ultra-high-voltage direct current (UHVDC) transmission link. This link will transmit clean power generated in the north of Brazil, from the Xingu substation, to the Rio Substation in the southeast. The transmitted electricity will be able to cater to the needs of roughly 10 million people.
ABB had booked the order in fourth-quarter 2016.
ABB forged HVDC technology over 60 years back and has been awarded over 110 HVDC projects till date. UHVDC is an advancement of HVDC – representing the greatest capacity and efficiency increase in over two decades. ABB will employ its UHDVC technology for this project, which helps balance renewable and conventional electricity supply and transmit clean power across long distances efficiently, while minimizing losses.
This is part of the company’s “Next Level” strategy, which focuses on integrating renewable sources with traditional grids, for reliable and efficient transmission of power.
ABB is likely one of the world’s best-managed industrial infrastructure, power and automation companies. Its shares recorded an average return of 12.8% over the past six months, outperforming the Zacks categorized Machinery - Electrical industry average of 8.3%.
In addition, the company has been witnessing solid activity on the earnings estimate revision front over the past month, reflecting bullish analyst sentiment. Over the past 60 days, the company recorded two upward estimate revisions versus none lower. This has led the Zacks Consensus Estimate for 2016 earnings to trend up from 98 cents to $1.09, reflecting an impressive increase of 11.2%.
We expect ABB to benefit from huge investments in HVDC and ultra high voltage DC power transmission projects, as well as continuing investments in the maintenance of aging electric infrastructures.
Further, over the long haul, this Zacks Rank #1 (Strong Buy) company believes that its prospects are bright for all three major markets, including utilities, industry and transport & infrastructure. Positive development in the electricity value chain, rapid progress of Internet of Things, Services and People, rapid urbanization and a surge in energy-efficient transport & infrastructure bode well for the company, over the long term.
Key Picks
Other stocks worth considering in the same space include KBR, Inc. (KBR - Free Report) , A. O. Smith Corporation (AOS - Free Report) and Donaldson Company, Inc. (DCI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KBR, which operates as an engineering, construction, and services company worldwide, has an average positive earnings surprise of 3.9%, for the trailing four quarters, beating estimates twice.
Headquartered in Milwaukee, WI, A.O. Smith is one of the leading manufacturers of commercial and residential water heating equipment, as well as water treatment products of the world. The company also boasts a striking earnings surprise history and has an average positive surprise of 5.9% for the trailing four quarters, beating estimates all through.
Donaldson Company manufactures and sells filtration systems and replacement parts worldwide. It operates through two segments, Engine Products and Industrial Products. The company managed to beat earnings estimates twice over the trailing four quarters. In the last reported quarter, it surprised estimates by 8.6%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>