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Shares of ABM Industries Incorporated (ABM - Free Report) scaled a 52-week high of $43.05 in the trading session on Feb 19, before closing a tad lower at $42.58.
The company’s shares have gained 12.6% year to date against the 5.9% decline of the industry it belongs to.
Let’s find out what’s supporting the uptick.
Consecutive Earnings Beat
ABM Industries came up with better-than-expected earnings performance in five of the past seven quarters. The company’s bottom line continued to benefit from higher margin improvement in Work Orders and persistent management of direct labor to align with the operating environment. Continuous operational investments in the company’s EnhancedClean program and re-engaged corporate projects within certain areas like information technology (which were previously paused due to the pandemic) have also been aiding the bottom line.
Shareholder Friendly Moves
ABM Industries’ board of directors announced a dividend hike of 2.7%, thereby raising the quarterly cash dividend to 19 cents. The raised dividend was paid out on Feb 1, 2021, to its shareholders of record as of Jan 7, 2021. This marked the 219th consecutive quarterly cash dividend declared by the company.
The company paid out dividends of $49.3 million in fiscal 2020 and $47.7 million in fiscal 2019. Additionally, the company returned $5.1 million through share buybacks in fiscal 2020. Such shareholder friendly moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact the company's earnings per share.
Strategic Acquisitions Bode Well
ABM Industries' strategy entails growth through strategic acquisitions while maintaining desirable profit margins. The acquisition of GCA Services Group has expanded the company’s long-term operational and financial position. The GCA integration has been completed and is making meaningful contributions to ABM Industries' overall operational results, predominantly within Technology & Manufacturing, Business & Industry and Education segments.
Zacks Rank and Stocks to Consider
ABM Industries currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for Kforce, Gartner and NV5 Global is 10%, 13.5% and 18%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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ABM Industries (ABM) Touches 52-Week High: What's Driving It?
Shares of ABM Industries Incorporated (ABM - Free Report) scaled a 52-week high of $43.05 in the trading session on Feb 19, before closing a tad lower at $42.58.
The company’s shares have gained 12.6% year to date against the 5.9% decline of the industry it belongs to.
Let’s find out what’s supporting the uptick.
Consecutive Earnings Beat
ABM Industries came up with better-than-expected earnings performance in five of the past seven quarters. The company’s bottom line continued to benefit from higher margin improvement in Work Orders and persistent management of direct labor to align with the operating environment. Continuous operational investments in the company’s EnhancedClean program and re-engaged corporate projects within certain areas like information technology (which were previously paused due to the pandemic) have also been aiding the bottom line.
Shareholder Friendly Moves
ABM Industries’ board of directors announced a dividend hike of 2.7%, thereby raising the quarterly cash dividend to 19 cents. The raised dividend was paid out on Feb 1, 2021, to its shareholders of record as of Jan 7, 2021. This marked the 219th consecutive quarterly cash dividend declared by the company.
The company paid out dividends of $49.3 million in fiscal 2020 and $47.7 million in fiscal 2019. Additionally, the company returned $5.1 million through share buybacks in fiscal 2020. Such shareholder friendly moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact the company's earnings per share.
Strategic Acquisitions Bode Well
ABM Industries' strategy entails growth through strategic acquisitions while maintaining desirable profit margins. The acquisition of GCA Services Group has expanded the company’s long-term operational and financial position. The GCA integration has been completed and is making meaningful contributions to ABM Industries' overall operational results, predominantly within Technology & Manufacturing, Business & Industry and Education segments.
Zacks Rank and Stocks to Consider
ABM Industries currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Kforce (KFRC - Free Report) , Gartner (IT - 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 Kforce, Gartner and NV5 Global is 10%, 13.5% and 18%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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