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ABB's Business Unit Unveils Distribution Center in Phoenix

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ABB Installation Products, a business unit under ABB Ltd’s Electrification segment announced the opening of its West Coast Distribution Center in Phoenix, AZ. This 400,000-sq.ft. distribution center is expected to expand the company’s operations in the Western United States, enabling it to better serve customers.

Yesterday, the company’s share price increased 2.1% to eventually close at $22.16.

The new distribution center — which is expected to be entirely functional during the third quarter of this year — recently commenced shipments. Notably, this facility will facilitate faster delivery of a wide range of the company’s necessary electrical products, including the likes of Ty-Rap cable ties, Color-Keyed lugs, and Steel City commercial boxes and fittings. The facility will house in excess of 2,000 products from across the overall portfolio of ABB Installation Products.

The launch of the distribution center is in sync with the company’s expansion strategy to grow volume capacity along with boosting its speed and service capabilities. It is worth noting here that the addition of its distribution center will help in generating more than 100 job opportunities in the Phoenix area.

ABB, with a $47.9-billion market capitalization, currently carries a Zacks Rank #4 (Sell). The coronavirus outbreak-led market downturn and the volatile oil market will likely affect the company’s near-term operating results. Also, persistent weakness in the Robotics & Discrete Automation segment remains a major concern for the company.

In the past six months, the stock has lost 8% compared with the industry’s decline of 13.9%.

 



Stocks to Consider

Some better-ranked stocks from the same space are II-VI Incorporated , AZZ Inc. (AZZ - Free Report) and Energous Corporation (WATT - Free Report) . While II-VI currently sports a Zacks Rank #1 (Strong Buy), AZZ and Energous carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

II-VI has a trailing four-quarter positive earnings surprise of 52.08%, on average.

AZZ delivered a positive earnings surprise of 6.17%, on average, in the trailing four quarters.

Energous has a trailing four-quarter positive earnings surprise of 5.69%, on average.

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