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ABM Industries (ABM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, ABM Industries (ABM - Free Report) closed at $45.15, marking a -1.01% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq added 0.56%.

Prior to today's trading, shares of the provider of cleaning and other maintenance services for commercial buildings, hospitals and airports had lost 13.59% over the past month. This has lagged the Business Services sector's loss of 11.73% and the S&P 500's loss of 10.53% in that time.

Investors will be hoping for strength from ABM Industries as it approaches its next earnings release. The company is expected to report EPS of $0.84, up 2.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.92 billion, up 27.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $7.84 billion, which would represent changes of +0.56% and +25.86%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ABM Industries. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ABM Industries is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ABM Industries is currently trading at a Forward P/E ratio of 12.69. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.69.

The Building Products - Maintenance Service industry is part of the Business Services sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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