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ABM Stock Surges 7%: Transformation, Strategic Moves Drive Gains

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ABM (ABM - Free Report) climbed 7% over the past month, outperforming the Zacks S&P 500 composite’s 6% rally. This performance is partly due to a disciplined transformation strategy that's reshaped the company from the inside out.

From 2020 Vision to ELEVATE: A Playbook for ABM’s Growth

In 2015, ABM launched its bold transformation blueprint — dubbed the 2020 Vision — with a clear mission: to drive long-term, profitable growth through a streamlined, industry-focused operating model. The company centralized functions, built out sales infrastructure and standardized service delivery across high-demand verticals, including janitorial, engineering, HVAC, energy, and mission-critical services, becoming a more agile operator.

In 2021, it launched ELEVATE, a next-gen strategic plan focused on digitization, data, and workforce development. The impact is stronger client traction and operational scalability.

ABM’s Strategic Expansion Into AI-Powered Infrastructure

ABM's 2024 acquisition of Quality Uptime marked a significant shift in the rapidly growing data center space. As AI demand spikes, so does the need for reliable, mission-critical infrastructure. Quality Uptime brings with it capabilities in electrical testing, UPS and breaker maintenance, and power distribution, critical systems for AI-driven facilities. This move elevates ABM to a full-suite provider for data centers, unlocking high-margin growth potential in one of the fastest-expanding segments of the tech industry.

ABM is Shareholder-Focused

ABM is not just growing, it's rewarding. In fiscal years 2022, 2023, and 2024, the company distributed dividends of $51.9 million, $57.5 million, and $56.5 million, respectively. Additionally, it returned $97.5 million, $138.1 million, and $56.1 million through share repurchases in fiscal 2022, 2023, and 2024, respectively. These actions reflect ABM's dedication to enhancing shareholder value and its confidence in the business's long-term potential.

ABM’s Financial Strength to Power the Next Leg

With a current ratio of 1.52 versus the industry average of 1.31, ABM maintains a solid financial footing. Its strong liquidity ensures operational agility and reinforces investor confidence, especially in volatile market conditions.

Zacks Rank & Stocks to Consider

ABM has a Zacks Rank #2 (Buy) at present. 

Some other top-ranked stocks from the broader Zacks Business Services sector are Marqeta (MQ - Free Report) and SPX Technologies (SPXC - Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Marqeta has a long-term earnings growth expectation of 28%. MQ delivered a trailing four-quarter earnings surprise of 24.4% on average. 

SPX Technologies has a long-term earnings growth expectation of 18%. SPXC delivered a trailing four-quarter earnings surprise of 8.3% on average.


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