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Why a Hold Strategy is Apt for ABM Industries (ABM) Stock Now
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ABM Industries Incorporated (ABM - Free Report) is currently benefiting from growth through strategic acquisitions as well as organic investment. The company’s revenues are expected to increase 23.9% and 4.7% year over year in fiscal 2022 and 2023, respectively. The stock gained 4.6% in the past six months.
ABM’s multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiencies, developing its own talent management system capabilities, expanding data usage and modernizing the digital ecosystem. ELEVATE is expected to significantly accelerate the company’s organic growth, improve its strategic and comprehensive positioning, and reinforce profitability.
The recent acquisition of Dublin-based janitorial services company — Momentum Support — is expected to strengthen ABM’s foothold in fast-growing markets in Ireland like technology and life sciences. The buyout provides ABM access to Momentum’s blue-chip customer base and positions it to cross sell ABM services to existing ABM clients who also have presence in the Republic of Ireland and Northern Ireland.
ABM focuses on rewarding its shareholders through dividends. The company paid $51 million, $49.3 million and $47.7 million in dividends in fiscal 2021, 2020 and 2019, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Some Risks
ABM Industries' current ratio (a measure of liquidity) at the end of the January quarter was pegged at 1.17, lower than the current ratio of 1.45 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Cross Country Healthcare has an expected earnings growth rate of 55.9% for the current year. CCRN has a trailing four-quarter earnings surprise of 29.2%, on average.
Cross Country Healthcare has a long-term earnings growth rate of 6.9%.
Avis Budget has an expected earnings growth rate of 74.7% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102.1%, on average.
Avis Budget has a long-term earnings growth rate of 19.4%.
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Why a Hold Strategy is Apt for ABM Industries (ABM) Stock Now
ABM Industries Incorporated (ABM - Free Report) is currently benefiting from growth through strategic acquisitions as well as organic investment. The company’s revenues are expected to increase 23.9% and 4.7% year over year in fiscal 2022 and 2023, respectively. The stock gained 4.6% in the past six months.
ABM Industries Incorporated Price
ABM Industries Incorporated price | ABM Industries Incorporated Quote
ABM’s Tailwinds
ABM’s multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiencies, developing its own talent management system capabilities, expanding data usage and modernizing the digital ecosystem. ELEVATE is expected to significantly accelerate the company’s organic growth, improve its strategic and comprehensive positioning, and reinforce profitability.
The recent acquisition of Dublin-based janitorial services company — Momentum Support — is expected to strengthen ABM’s foothold in fast-growing markets in Ireland like technology and life sciences. The buyout provides ABM access to Momentum’s blue-chip customer base and positions it to cross sell ABM services to existing ABM clients who also have presence in the Republic of Ireland and Northern Ireland.
ABM focuses on rewarding its shareholders through dividends. The company paid $51 million, $49.3 million and $47.7 million in dividends in fiscal 2021, 2020 and 2019, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Some Risks
ABM Industries' current ratio (a measure of liquidity) at the end of the January quarter was pegged at 1.17, lower than the current ratio of 1.45 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Zacks Rank & Stocks to Consider
ABM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) and Avis Budget (CAR - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Cross Country Healthcare has an expected earnings growth rate of 55.9% for the current year. CCRN has a trailing four-quarter earnings surprise of 29.2%, on average.
Cross Country Healthcare has a long-term earnings growth rate of 6.9%.
Avis Budget has an expected earnings growth rate of 74.7% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102.1%, on average.
Avis Budget has a long-term earnings growth rate of 19.4%.