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Why Hold Strategy is Apt for ABM Industries (ABM) Stock Now
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ABM Industries Incorporated (ABM - Free Report) is currently benefiting from growth through strategic acquisitions, as well as organic investments.
The company’s revenues are expected to increase 3.5% and 3.6% year over year in fiscal 2023 and 2024, respectively. The stock has gained 4.2% in the past three months.
ABM’s multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiencies, developing its own talent management system capabilities, expanding data usage and modernizing the digital ecosystem. ELEVATE is expected to significantly accelerate the company’s organic growth, improve its strategic and comprehensive positioning, and reinforce profitability.
The 2022 acquisition of RavenVolt is a part of ABM’s ELEVATE strategy and focuses on expanding the company’s footprint in potential geographies and end markets through strategic acquisitions.
RavenVolt’s addition is expanding ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets. RavenVolt also boosts ABM’s eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.
The acquisition of Momentum Support has strengthened ABM’s foothold in fast-growing markets in Ireland like technology and life sciences. The buyout provides ABM access to Momentum’s blue-chip customer base and positions it to cross-sell ABM services to existing ABM clients who also have a presence in the Republic of Ireland and Northern Ireland.
ABM focuses on rewarding its shareholders through dividends. The company paid $51.9 million, $51 million and $49.3 million as dividends in fiscal 2022, 2021 and 2020, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Some Risks
ABM's operating expenses have seen year-over-year increases, which have impacted the bottom line. During fiscal 2022, operating expenses of $6.76 billion increased 28.5% year over year. The same rose 2% year over year in fiscal 2021.
The company has a trailing four-quarter earnings surprise of 9.9% on average. VRSK shares have gained 5.8% in the past three months.
Aptiv carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 13.4% on average. APTV shares have gained 2% in the past three months.
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Why Hold Strategy is Apt for ABM Industries (ABM) Stock Now
ABM Industries Incorporated (ABM - Free Report) is currently benefiting from growth through strategic acquisitions, as well as organic investments.
The company’s revenues are expected to increase 3.5% and 3.6% year over year in fiscal 2023 and 2024, respectively. The stock has gained 4.2% in the past three months.
ABM Industries Incorporated Price
ABM Industries Incorporated price | ABM Industries Incorporated Quote
ABM’s Tailwinds
ABM’s multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiencies, developing its own talent management system capabilities, expanding data usage and modernizing the digital ecosystem. ELEVATE is expected to significantly accelerate the company’s organic growth, improve its strategic and comprehensive positioning, and reinforce profitability.
The 2022 acquisition of RavenVolt is a part of ABM’s ELEVATE strategy and focuses on expanding the company’s footprint in potential geographies and end markets through strategic acquisitions.
RavenVolt’s addition is expanding ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets. RavenVolt also boosts ABM’s eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.
The acquisition of Momentum Support has strengthened ABM’s foothold in fast-growing markets in Ireland like technology and life sciences. The buyout provides ABM access to Momentum’s blue-chip customer base and positions it to cross-sell ABM services to existing ABM clients who also have a presence in the Republic of Ireland and Northern Ireland.
ABM focuses on rewarding its shareholders through dividends. The company paid $51.9 million, $51 million and $49.3 million as dividends in fiscal 2022, 2021 and 2020, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Some Risks
ABM's operating expenses have seen year-over-year increases, which have impacted the bottom line. During fiscal 2022, operating expenses of $6.76 billion increased 28.5% year over year. The same rose 2% year over year in fiscal 2021.
Zacks Rank & Stocks to Consider
ABM currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider stocks like Verisk Analytics (VRSK - Free Report) and Aptiv (APTV - Free Report) .
Verisk currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter earnings surprise of 9.9% on average. VRSK shares have gained 5.8% in the past three months.
Aptiv carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 13.4% on average. APTV shares have gained 2% in the past three months.