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Here's Why Hold Strategy is Apt for ABM Industries Stock Now
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Shares of ABM Industries Incorporated (ABM - Free Report) have gained 18.5% year to date, outperforming the 9.3% rally of the industry it belongs to.
With expected earnings growth rate of 7.4% in fiscal 2019 and 10.3% in fiscal 2020, ABM seems to be a stock that investors should retain in their portfolio.
Factors Favoring the Company
ABM is currently executing 2020 Vision, a comprehensive transformation initiative. It includes upgradation of human resources information, labor management and enterprise resource planning systems, utilizing technology to enhance account planning, labor management, payroll and procurement and centralization of back-office functions. All these translate to substantial investments but will fetch significant operational improvement and long-term profits on the back of an industry-based go-to-market approach.
ABM Industries' strategy entails growth through acquisitions while maintaining desirable profit margins. The acquisition of GCA Services Group has strengthened the company’s long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. Revenues related to GCA acquisition were more than $1 billion in fiscal 2018.
Some top-ranked stocks in the broader Zacks Business Services sector include ICF International (ICFI - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for ICF, Booz Allen and Charles River is 10%, 13% and 13%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Here's Why Hold Strategy is Apt for ABM Industries Stock Now
Shares of ABM Industries Incorporated (ABM - Free Report) have gained 18.5% year to date, outperforming the 9.3% rally of the industry it belongs to.
With expected earnings growth rate of 7.4% in fiscal 2019 and 10.3% in fiscal 2020, ABM seems to be a stock that investors should retain in their portfolio.
Factors Favoring the Company
ABM is currently executing 2020 Vision, a comprehensive transformation initiative. It includes upgradation of human resources information, labor management and enterprise resource planning systems, utilizing technology to enhance account planning, labor management, payroll and procurement and centralization of back-office functions. All these translate to substantial investments but will fetch significant operational improvement and long-term profits on the back of an industry-based go-to-market approach.
ABM Industries Incorporated Net Income (TTM)
ABM Industries Incorporated net-income-ttm | ABM Industries Incorporated Quote
ABM Industries' strategy entails growth through acquisitions while maintaining desirable profit margins. The acquisition of GCA Services Group has strengthened the company’s long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. Revenues related to GCA acquisition were more than $1 billion in fiscal 2018.
Zacks Rank and Stocks to Consider
Currently, ABM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some top-ranked stocks in the broader Zacks Business Services sector include ICF International (ICFI - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for ICF, Booz Allen and Charles River is 10%, 13% and 13%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>