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Here's Why You Should Retain ABM Stock in Your Portfolio Now
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Key Takeaways
ABM Industries' stock gained 11.6% in three months, beating its industry's 11.4% drop.
ABM expanded in semiconductor services via WGNSTAR and backed electrification with the DASH charger project
ABM returned $121.3M in FY25 buybacks, raised dividend 9% and marked 58 straight years of growth.
ABM Industries (ABM - Free Report) stock rose 11.3% in the past three months against the industry’s 11% fall. The Zacks S&P 500 composite gained 2.2% in the said time frame.
Image Source: Zacks Investment Research
ABM’s fiscal 2026 and 2027 earnings are expected to rise 18.9% and 6.5%, respectively. Revenues are expected to grow 4.9% in fiscal 2026 and 2.2% in fiscal 2027.
Factors That Bode Well for ABM
ABM Industries strengthened its presence in the semiconductor and high-technology services market by acquiring WGNSTAR and expanding its technical capabilities in cleanroom operations and production tool management. The company accelerated its strategy to expand higher-margin, specialized engineering services while increasing its exposure to mission-critical semiconductor fabrication environments. As chipmakers continue to invest in advanced manufacturing capacity, ABM can leverage WGNSTAR’s expertise to secure long-term, recurring contracts and enhance its competitive position in the high-tech infrastructure space.
Moreover, the City of Alexandria Transit Company DASH partnered with ABM Industries to install an in-route pantograph charger and supporting infrastructure, advancing its fleet electrification plan. The project enables buses to charge during service, improving operational flexibility, extending range and reducing emissions while maintaining reliable transit service.
ABM Industries continues to enhance shareholder value through disciplined capital returns, combining steady dividends with meaningful share repurchases. The company repurchased $73.0 million of stock in the fourth quarter of fiscal 2025 and $121.3 million for the full fiscal year 2025, reducing its outstanding share count by 4%, while the board approved a 9% increase in the quarterly dividend to $0.29 per share, marking 58 consecutive years of annual dividend growth.
In fiscal 2023, 2024 and 2025, ABM distributed $57.5 million, $56.5 million and $65.6 million in dividends, respectively. During the same period, the company returned $138.1 million, $56.1 million and $122.2 million through share repurchases, underscoring its consistent commitment to returning capital to shareholders.
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. A current ratio above 1 indicates strong liquidity and the ability to cover its immediate liabilities.
ABM’s Key Risks to Watch
ABM faces growing cost pressures as operating expenses continue to trend upward, weighing on margins and near-term earnings growth. The company increased total operating costs by 4.2% in fiscal 2023, 4.1% in fiscal 2024 and 4.7% in fiscal 2025. This underscores the need for stronger cost control to prevent expense growth from outpacing revenues and eroding profitability.
ABM Industries faces risks from macroeconomic uncertainty, including tariff pressures and changes in government policies that could raise input costs or delay infrastructure and public-sector projects. Trade tensions and shifting spending priorities may slow contract awards, while elevated labor costs could further pressure margins and temper growth.
ABM’s Zacks Rank
ABM currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some top-ranked stocks for investors’ consideration are AppLovin (APP - Free Report) and Maximus (MMS - Free Report) .
APP has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 15.3%.
Maximus carries a Zacks Rank of 2. MMS has an expected earnings growth rate of 14.4% and 1.2% for 2025 and 2026. The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 25.5%.
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Here's Why You Should Retain ABM Stock in Your Portfolio Now
Key Takeaways
ABM Industries (ABM - Free Report) stock rose 11.3% in the past three months against the industry’s 11% fall. The Zacks S&P 500 composite gained 2.2% in the said time frame.
Image Source: Zacks Investment Research
ABM’s fiscal 2026 and 2027 earnings are expected to rise 18.9% and 6.5%, respectively. Revenues are expected to grow 4.9% in fiscal 2026 and 2.2% in fiscal 2027.
Factors That Bode Well for ABM
ABM Industries strengthened its presence in the semiconductor and high-technology services market by acquiring WGNSTAR and expanding its technical capabilities in cleanroom operations and production tool management. The company accelerated its strategy to expand higher-margin, specialized engineering services while increasing its exposure to mission-critical semiconductor fabrication environments. As chipmakers continue to invest in advanced manufacturing capacity, ABM can leverage WGNSTAR’s expertise to secure long-term, recurring contracts and enhance its competitive position in the high-tech infrastructure space.
Moreover, the City of Alexandria Transit Company DASH partnered with ABM Industries to install an in-route pantograph charger and supporting infrastructure, advancing its fleet electrification plan. The project enables buses to charge during service, improving operational flexibility, extending range and reducing emissions while maintaining reliable transit service.
ABM Industries continues to enhance shareholder value through disciplined capital returns, combining steady dividends with meaningful share repurchases. The company repurchased $73.0 million of stock in the fourth quarter of fiscal 2025 and $121.3 million for the full fiscal year 2025, reducing its outstanding share count by 4%, while the board approved a 9% increase in the quarterly dividend to $0.29 per share, marking 58 consecutive years of annual dividend growth.
In fiscal 2023, 2024 and 2025, ABM distributed $57.5 million, $56.5 million and $65.6 million in dividends, respectively. During the same period, the company returned $138.1 million, $56.1 million and $122.2 million through share repurchases, underscoring its consistent commitment to returning capital to shareholders.
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. A current ratio above 1 indicates strong liquidity and the ability to cover its immediate liabilities.
ABM’s Key Risks to Watch
ABM faces growing cost pressures as operating expenses continue to trend upward, weighing on margins and near-term earnings growth. The company increased total operating costs by 4.2% in fiscal 2023, 4.1% in fiscal 2024 and 4.7% in fiscal 2025. This underscores the need for stronger cost control to prevent expense growth from outpacing revenues and eroding profitability.
ABM Industries faces risks from macroeconomic uncertainty, including tariff pressures and changes in government policies that could raise input costs or delay infrastructure and public-sector projects. Trade tensions and shifting spending priorities may slow contract awards, while elevated labor costs could further pressure margins and temper growth.
ABM’s Zacks Rank
ABM currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some top-ranked stocks for investors’ consideration are AppLovin (APP - Free Report) and Maximus (MMS - Free Report) .
AppLovin currently carries a Zacks Rank of 2 (Buy). APP has an expected earnings growth rate of 105.7% and 62.5% for 2025 and 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
APP has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 15.3%.
Maximus carries a Zacks Rank of 2. MMS has an expected earnings growth rate of 14.4% and 1.2% for 2025 and 2026. The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 25.5%.