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ABM Industries (ABM) Announces JFKIAT Partnership Expansion

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ABM Industries Incorporated(ABM - Free Report) yesterday announced that it has expanded partnership with JFKIAT which operates Terminal 4 at John F. Kennedy International Airport.

ABM will work with JFKIAT for integration of its ABM EnhancedClean program to the cleaning procedures that were incorporated in Terminal 4 at the initial stages of the pandemic.

Notably, ABM EnhancedClean is an infectious disease and industrial hygiene expert-backed certified disinfection process aimed at enabling viral protection for a long term. It fights surface-based spread of COVID-19 and other seasonal viruses.

The process under the program involves trained and certified disinfection specialists cleaning high-touch surfaces frequently at regular intervals and performing disinfection with electrostatic sprayers.

Our Take

The move is expected to benefit ABM’s Aviation segment that provides janitorial services to airlines and airports. The segment’s performance in the third quarter of 2020 was extremely weak due to coronavirus-induced global travel decline and flight reductions. Revenues declined 56% year over year to $116.4 million.

Notably, ABM shares have gained 6.1% over the past year, significantly underperforming the 46% rally of the industry it belongs to and 16.1% gain of the Zacks S&P 500 composite.

Zacks Rank and Stocks to Consider

ABM currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , Gartner (IT - Free Report) and Insperity (NSP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Long-term earnings (three to five years) growth rate for Republic Services, Gartner and Insperity is estimated at 9.4%, 13.5% and 15%, respectively.

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