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ABM Remains Well Poised for Healthy Growth on Core Focus
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On Aug 10, Zacks Investment Research updated the research report on leading provider of facility solutions, ABM Industries Inc. (ABM - Free Report) .
Over the years, ABM has developed a platform to deliver an end-to-end service model to its clients by realigning its operational structure into an on-site, mobile and on-demand market based structure. This realignment has improved its long-term growth prospects and provides higher margin opportunities by enabling it to better deliver end-to-end services to its clients across urban, suburban and rural areas. The company further expects to extend its global footprint and strengthen its position in existing markets through both inorganic and organic growth across the industry verticals.
In order to fuel its growth momentum, ABM has embarked on a Vision 2020 Plan that outlines its vision for the next five years. The plan has three primary phases, the first of which is aimed at increasing the efficiency of the company through diligent execution of the operating plan and stringent cost-reduction activities. The second phase will focus on driving growth across the realigned verticals through effective realization of the cost savings from procurement, account management and other organizational changes. The final phase of the transformation will include accelerated growth impetus from the vertical alignment and account planning systems with a continuous focus on additional cost savings.
ABM has successfully completed the first phase of the Vision 2020 plan. The company is currently focusing on the second phase of the plan and remains confident of achieving $40–$50 million in savings through operational efficiencies by the end of 2017.
However, with a significant presence in the U.K., ABM is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post Brexit referendum. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering the productivity of the company.
Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry include CRA International Inc. (CRAI - Free Report) , CBIZ, Inc. (CBZ - Free Report) and Navigant Consulting Inc. , each carrying a Zacks Rank #2 (Buy).
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ABM Remains Well Poised for Healthy Growth on Core Focus
On Aug 10, Zacks Investment Research updated the research report on leading provider of facility solutions, ABM Industries Inc. (ABM - Free Report) .
Over the years, ABM has developed a platform to deliver an end-to-end service model to its clients by realigning its operational structure into an on-site, mobile and on-demand market based structure. This realignment has improved its long-term growth prospects and provides higher margin opportunities by enabling it to better deliver end-to-end services to its clients across urban, suburban and rural areas. The company further expects to extend its global footprint and strengthen its position in existing markets through both inorganic and organic growth across the industry verticals.
In order to fuel its growth momentum, ABM has embarked on a Vision 2020 Plan that outlines its vision for the next five years. The plan has three primary phases, the first of which is aimed at increasing the efficiency of the company through diligent execution of the operating plan and stringent cost-reduction activities. The second phase will focus on driving growth across the realigned verticals through effective realization of the cost savings from procurement, account management and other organizational changes. The final phase of the transformation will include accelerated growth impetus from the vertical alignment and account planning systems with a continuous focus on additional cost savings.
ABM has successfully completed the first phase of the Vision 2020 plan. The company is currently focusing on the second phase of the plan and remains confident of achieving $40–$50 million in savings through operational efficiencies by the end of 2017.
However, with a significant presence in the U.K., ABM is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post Brexit referendum. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering the productivity of the company.
Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry include CRA International Inc. (CRAI - Free Report) , CBIZ, Inc. (CBZ - Free Report) and Navigant Consulting Inc. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>