ABM Industries Incorporated (ABM Quick QuoteABM - Free Report) has had an impressive run in the past year. The stock has gained 24%, outperforming the industry and the Zacks S&P 500 composite’s growth of 5.1% and 15.2%, respectively.

Factors Driving the Uptick

ABM’s diversified portfolio of services, including janitorial, engineering and facility services, has proven to be resilient during times of economic uncertainty. As businesses and institutions have heightened their focus on maintaining clean and safe environments, ABM has seen a consistent demand for its services. This demand stems particularly from sectors, such as healthcare, education and commercial real estate, where hygiene and operational efficiency remain top priorities. ABM's broad exposure to essential industries has helped mitigate the impact of economic volatility on its business.

ABM Industries Incorporated Price

ABM Industries Incorporated price | ABM Industries Incorporated Quote

ABM has delivered strong quarterly earnings in the past four quarters, exceeding the Zacks Consensus Estimate. The company’s trailing four-quarter average earnings surprise is 11.6%. Higher-than-expected earnings per share growth and effective cost management have underpinned the company's financial stability, making it an appealing investment option.

ABM’s focus on sustainability and energy efficiency initiatives has resonated well with the market, especially among ESG-focused investors. Its emphasis on reducing carbon emissions and supporting clients in achieving their sustainability goals has added a layer of appeal as ESG considerations continue to drive investment decisions. This focus on sustainability has differentiated ABM from competitors and attracted long-term investors.

Investor sentiment has been positive in the broader facility management sector attributed to the increasing demand for services that ensure workplace safety, compliance and operational efficiency. ABM’s strong market position has allowed it to capture this demand, contributing to the company’s share price rally.

ABM’s Zacks Rank & Other Stocks to Consider

ABM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are AppLovin Corporation (APP Quick QuoteAPP - Free Report) and Booz Allen Hamilton (BAH Quick QuoteBAH - Free Report) .

AppLovin Corporation currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

APPhas a long-term earnings growth expectation of 20%. It delivered a trailing four-quarter earnings surprise of 23.5%, on average.

Booz Allen Hamilton currently carries a Zacks Rank #2 (Buy). BAH has an impressive earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 6.7%.