ABB Ltd (ABB) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of ABB Ltd (ABB) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 7 reasons to buy and 1 reasons to sell ABB stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ABB stock:

  • Is ABB a buy or a sell?
  • Should I sell or hold ABB stock today?
  • Is ABB a good buy / investment?
  • What are ABB analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ABB stock:

1. ABB profitability is improving. The YoY profit margin change was 6.45pp. See ABB profitability chart.

2. ABB forward dividend yield is 4.42%, higher than the industry (0.62%) and sector (0.45%) forward dividend yields. See ABB forward dividend chart.

3. ABB forward P/E ratio is 16.64, and it’s low compared to its industry peers’ P/E ratios. See ABB forward P/E ratio chart.

4. ABB Price/Sales ratio is 1.47, and it’s low compared to its industry peers’ P/S ratios. See ABB forward Price/Sales ratio chart.

5. ABB PEG ratio (P/E adjusted for growth) is 3.06, and it’s low compared to its industry peers’ PEG ratios. See ABB PEG chart.

6. ABB average analyst rating is Buy. See ABB analyst rating chart.

7. ABB average analyst price target ($21.96) is above its current price ($19.51). See ABB price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ABB stock (i.e., the bear case):

1. ABB quarterly revenue growth was -20.30%, lower than the industry and sector average revenue growth (5.29% and 4.74%, respectively). See ABB revenue growth chart.

Now let's look at the key statistics for ABB:

Metrics ABB
Price $20.46
Average Price Target / Upside $21.96 / 7.31%
Average Analyst Rating Buy
Industry Diversified Industrials
Sector Industrials
Number of Employees 147,000
Market Cap $44.69B
Forward P/E Ratio 17.61
Price/Book Ratio 1.61
PEG 3.12
Revenue (TTM) $28.07B
YoY Quarterly Revenue Growth -20.6%
Profit Margin 7.61%

What are your thoughts on ABB?

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