ABM Industries Incorporated (ABM - Free Report) is benefiting from strategic acquisitions and investor-friendly steps.
ABM’s earnings are anticipated to grow 2.2% and 1.8% in 2022 and 2023, respectively.
Factors That Augur Well
ABM Industries' strategy entails growth through strategic acquisitions and organic investment. The recent acquisition of RavenVolt is part of ABM’s ELEVATE strategy that focuses on expanding the company’s footprint in potential geographies and end markets. The acquisition will help to expand ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets.
RavenVolt will also boost ABM’S eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.
ABM Industries’ endeavors in rewarding its shareholders through dividend payments and share repurchases are also impressing. In fiscal 2021, ABM paid out $51 million of dividends but did not repurchase any shares. In fiscal 2020, ABM returned $49.3 million through dividend payments and $5.1 million through share buybacks. Such moves indicate ABM’s commitment to create its shareholder value and underline its confidence in its business. Apart from instilling investors’ confidence in the stock such initiatives also impact the EPS positively .
Some Risks
ABM Industries' current ratio at the end of the July quarter was pegged at 1.21, lower than the current ratio of 1.45 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable as it suggests a company’s inefficiency in serving its short-term debt obligations.
Zacks Rank and Stocks to Consider
ABM Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
ABM Industries Incorporated (ABM - Free Report) is benefiting from strategic acquisitions and investor-friendly steps.
ABM’s earnings are anticipated to grow 2.2% and 1.8% in 2022 and 2023, respectively.
Factors That Augur Well
ABM Industries' strategy entails growth through strategic acquisitions and organic investment. The recent acquisition of RavenVolt is part of ABM’s ELEVATE strategy that focuses on expanding the company’s footprint in potential geographies and end markets. The acquisition will help to expand ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets.
RavenVolt will also boost ABM’S eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.
ABM Industries’ endeavors in rewarding its shareholders through dividend payments and share repurchases are also impressing. In fiscal 2021, ABM paid out $51 million of dividends but did not repurchase any shares. In fiscal 2020, ABM returned $49.3 million through dividend payments and $5.1 million through share buybacks. Such moves indicate ABM’s commitment to create its shareholder value and underline its confidence in its business. Apart from instilling investors’ confidence in the stock such initiatives also impact the EPS positively .
Some Risks
ABM Industries' current ratio at the end of the July quarter was pegged at 1.21, lower than the current ratio of 1.45 reported at the end of the prior-year quarter. A decreasing current ratio is not desirable as it suggests a company’s inefficiency in serving its short-term debt obligations.
Zacks Rank and Stocks to Consider
ABM Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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