ABM Industries (ABM) Stock Rises 13% in 6 Months: Here's How
ABM Industries Incorporated ABM has had an impressive run in the past six months.
The stock has gained 12.8% compared with the 6.7% rally of the industry it belongs to and the 6.4% rise of the Zacks S&P 500 composite.
ABM Industries Incorporated Price
ABM Industries Incorporated price | ABM Industries Incorporated Quote
Reasons for the Upside
ABM’s multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiencies, developing its talent management system capabilities, expanding data use 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 RavenVolt is part of ABM’s ELEVATE strategy and is aimed at expanding the company’s footprint in potential geographies and end markets. The acquisition expands ABM’s Technical Solutions service offerings, strengthening its foothold in EV infrastructure, power and bundled energy solutions markets. RavenVolt boosts the company’s eMobility business as a provider of customized power solutions in facilities that require additional power generation capacity to support EV charging.
ABM focuses on rewarding its shareholders through dividends. The company paid out $51.9 million, $51 million and $49.3 million through dividends in fiscal 2022, 2021 and 2020, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average earnings surprise of 3%.
Zacks Rank & Stocks to Consider
ABM currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the broader Zacks Business Services sector that investors may consider.
Omnicom Group's OMC internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.4, which has been revised downward by 1.4% in the past 60 days. The consensus estimate for the full year stands at $7.15 per share. This has been revised 13.7% upward in the past 60 days.
For first-quarter 2023, OMC’s earnings are expected to be in line with the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.5% on a year-over-year basis in 2023. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ICF International ICFI is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised 7.3% upward in the past 60 days.
For first-quarter 2023, ICFI’s earnings are expected to register 7.6% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 9.2% on a year-over-year basis. The company currently flaunts a Zacks Rank #1.
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