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ABB Ltd.

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Tough macroeconomic and geopolitical conditions have been plaguing ABB in recent times. Going forward, volatility in oil & gas markets and uncertainty in the process industries will likely be major headwinds for ABB. Also, lower capital spending in ABB’s key upstream energy end-markets will hurt its prospects. This apart, ABB will have to contend with escalating geopolitical tension triggered by the Brexit referendum and weakness in key end markets. In addition, a stringent competitive environment, volatility in raw material prices and dwindling customer expenditure are expected to add to the woes.On the positive side, ABB has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, year to date, ABB’s shares have outperformed the Zacks classified Machinery Electric industry average return.

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