We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why ABB Stock Should Grace Your Portfolio Now
Read MoreHide Full Article
ABB Ltd is witnessing a healthy demand environment across most segments. Pricing actions and cost-control initiatives are driving its margins.
This Zacks Rank #1 (Strong Buy) company is thriving on the strength of its core segment, the Electrification unit, owing to stable demand across most customer verticals. Revenues from the segment increased 7% year over year to $14.11 billion. The segment accounted for 48% of the company’s top line in 2022. You can see the complete list of today’s Zacks #1 Rank stocks.
ABB’s Motion segment is gaining from continued volume recovery in both the short cycle and the systems-related business. The acquisitions of PowerTech Converter and Siemens' low voltage NEMA motor business are expected to fortify the segment’s performance.
With easing component shortages, the recovery in volumes is supporting growth of the Robotics & Discrete Automation unit. Robust customer activity in the marine & ports, mining and refining and renewables markets bodes well for the Process Automation segment. For the first quarter of 2023, ABB anticipates double-digit comparable revenue growth. For 2023, it expects comparable revenue growth to be more than 5%.
ABB’s portfolio restructuring actions to add complementary businesses and divest non-core operations should drive its growth. The company’s acquisition of a majority stake in InCharge Energy (January 2022) boosted its E-mobility business by expanding its customer base and enhancing its fleet electrification software and digital services offering in North America. In January 2023, the company entered into an agreement to sell its Power Conversion division to AcBel Polytech Inc. for $505 million in cash. The transaction is expected to be completed in the second half of 2023.
In December 2022, ABB sold its remaining 19.9% equity stake (80.1% of the stake was divested in 2020) in the Hitachi Energy joint venture to Hitachi, Ltd. ABB realized a net positive cash inflow of approximately $1.425 billion in the fourth quarter of 2022 as part of the divestment. The divestment allows the company to focus more on key market trends and customer needs of electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity.
In October 2022, ABB completed the spin-off of its turbocharging unit, Accelleron. The spin-off is a part of the company’s portfolio management strategy and helps it to focus on growing global megatrends in electrification and automation. ABB’s organic growth investments and diligent cost-control initiatives are expected to improve its competency over time.
ABB’s measures to reward its shareholders through dividends and share buybacks are encouraging. In 2022, ABB paid out dividends worth $1,698 million. In April 2022, the company launched a $3 billion share repurchase program, which will run through its 2023 annual general meeting. Under the previous program, completed in March 2022, the company purchased 90 million shares for approximately $3.1 billion.
Other Stocks to Consider
Some other top-ranked stocks within the broader Industrial Products sector are as follows:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). ALLE pulled off a trailing four-quarter earnings surprise of 8.8%, on average.
Allegion has an estimated earnings growth rate of 5.2% and 12.1% for 2022 and 2023, respectively. The stock has gained 11.8% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI delivered a trailing four-quarter earnings surprise of 12.5%, on average.
Valmont Industries has an estimated earnings growth rate of 26.7% and 13.7% for 2022 and 2023, respectively. The stock has rallied 12.4% in the past six months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why ABB Stock Should Grace Your Portfolio Now
ABB Ltd is witnessing a healthy demand environment across most segments. Pricing actions and cost-control initiatives are driving its margins.
This Zacks Rank #1 (Strong Buy) company is thriving on the strength of its core segment, the Electrification unit, owing to stable demand across most customer verticals. Revenues from the segment increased 7% year over year to $14.11 billion. The segment accounted for 48% of the company’s top line in 2022. You can see the complete list of today’s Zacks #1 Rank stocks.
ABB’s Motion segment is gaining from continued volume recovery in both the short cycle and the systems-related business. The acquisitions of PowerTech Converter and Siemens' low voltage NEMA motor business are expected to fortify the segment’s performance.
ABB Ltd Price and Consensus
ABB Ltd price-consensus-chart | ABB Ltd Quote
With easing component shortages, the recovery in volumes is supporting growth of the Robotics & Discrete Automation unit. Robust customer activity in the marine & ports, mining and refining and renewables markets bodes well for the Process Automation segment. For the first quarter of 2023, ABB anticipates double-digit comparable revenue growth. For 2023, it expects comparable revenue growth to be more than 5%.
ABB’s portfolio restructuring actions to add complementary businesses and divest non-core operations should drive its growth. The company’s acquisition of a majority stake in InCharge Energy (January 2022) boosted its E-mobility business by expanding its customer base and enhancing its fleet electrification software and digital services offering in North America. In January 2023, the company entered into an agreement to sell its Power Conversion division to AcBel Polytech Inc. for $505 million in cash. The transaction is expected to be completed in the second half of 2023.
In December 2022, ABB sold its remaining 19.9% equity stake (80.1% of the stake was divested in 2020) in the Hitachi Energy joint venture to Hitachi, Ltd. ABB realized a net positive cash inflow of approximately $1.425 billion in the fourth quarter of 2022 as part of the divestment. The divestment allows the company to focus more on key market trends and customer needs of electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity.
In October 2022, ABB completed the spin-off of its turbocharging unit, Accelleron. The spin-off is a part of the company’s portfolio management strategy and helps it to focus on growing global megatrends in electrification and automation. ABB’s organic growth investments and diligent cost-control initiatives are expected to improve its competency over time.
ABB’s measures to reward its shareholders through dividends and share buybacks are encouraging. In 2022, ABB paid out dividends worth $1,698 million. In April 2022, the company launched a $3 billion share repurchase program, which will run through its 2023 annual general meeting. Under the previous program, completed in March 2022, the company purchased 90 million shares for approximately $3.1 billion.
Other Stocks to Consider
Some other top-ranked stocks within the broader Industrial Products sector are as follows:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). ALLE pulled off a trailing four-quarter earnings surprise of 8.8%, on average.
Allegion has an estimated earnings growth rate of 5.2% and 12.1% for 2022 and 2023, respectively. The stock has gained 11.8% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI delivered a trailing four-quarter earnings surprise of 12.5%, on average.
Valmont Industries has an estimated earnings growth rate of 26.7% and 13.7% for 2022 and 2023, respectively. The stock has rallied 12.4% in the past six months.