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Reasons Why You Should Retain ABM Industries Stock in Your Portfolio

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Key Takeaways

  • ABM expects fiscal 2026 & 2027 earnings growth of 18.9% and 7.9%, with revenues up 5% and 1.6%, respectively.
  • ABM's revenue momentum comes from aviation wins, expansions and new airport passenger service contracts.
  • ABM is investing in AI and acquiring WGNSTAR in 2026 to expand capabilities in semiconductor fabrication.

ABM Industries (ABM - Free Report) has a Growth Score of B, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

ABM’s fiscal 2026 and 2027 earnings are expected to rise 18.9% and 7.9%, respectively. Revenues are expected to grow 5% in fiscal 2026 and 1.6% in fiscal 2027.

Factors That Bode Well for ABM

ABM’s strong revenue growth is fueled by recent client wins and customer expansions in the Aviation and Manufacturing & Distribution divisions. The company announced a new passenger services contract at a leading global gateway airport, with several additional contracts expected in 2026, highlighting the company’s continued focus on the aviation sector.

ABM’s focused approach to investing in AI is improving its internal processes. Enhanced automation of Request for Proposal, smarter HR support tools and elevated client-facing operations by Agentic AI collectively boost the company’s innovative and technological drive.

ABM will acquire WGNSTAR, a leading provider of managed technical workforce solutions and equipment support services, a deal that is expected to be closed in the first quarter of 2026. The acquisition should strengthen the company’s technical capabilities in fabrication settings, adding over 1,300 skilled employees and deepening its exposure to long-term growth opportunities from U.S. semiconductor onshoring.

ABM enhances shareholder value through consistent dividends and share buybacks.It distributed $57.5, $56.5 and $65.6 million in dividends, while returning $138.1, $56.1 and $122.2 million through share repurchases in fiscal years 2023, 2024 and 2025, respectively.

ABM’s current ratio (a measure of liquidity) was 1.49 at the end of the fourth quarter of fiscal 2025, higher than the industry average of 1.27. Acurrent ratio above 1 indicates strong liquidity and the ability to cover its immediate liabilities.

A Risk

ABM operates in a competitive market with companies such as EMCOR Group, Ecolab, Aramark, GCA Services Group and Universal Services of America. This makes it challenging to balance growth and profitability while continuously innovating, differentiating offerings and maintaining cost efficiency.

Zacks Rank & Stocks to Consider

ABM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks are Genpact (G - Free Report)  and Palantir Technologies Inc. (PLTR - Free Report) .

Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 9.6%. The company delivered a trailing four-quarter earnings surprise of 5.5% on average.

Palantir Technologies also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 50%. PLTR beat earnings estimates in three of the last four quarters and matched once, with an earnings surprise of 16.3% on average.


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