ABM Industries Incorporated (ABM) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of ABM Industries Incorporated (ABM) 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 8 reasons to buy and 4 reasons to sell ABM 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 ABM stock:

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

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

1. ABM profitability is improving. The YoY profit margin change was 1.45pp. See ABM profitability chart.

2. ABM forward dividend yield is 1.98%, higher than the industry (0.38%) and sector (0.45%) forward dividend yields. See ABM forward dividend chart.

3. ABM forward P/E ratio is 16.22, and it’s low compared to its industry peers’ P/E ratios. See ABM forward P/E ratio chart.

4. ABM Price/Book ratio is 1.68, and it’s low compared to its industry peers’ P/B ratios. See ABM forward Price/Book ratio chart.

5. ABM Price/Sales ratio is 0.38, and it’s low compared to its industry peers’ P/S ratios. See ABM forward Price/Sales ratio chart.

6. ABM PEG ratio (P/E adjusted for growth) is 1.09, and it’s low compared to its industry peers’ PEG ratios. See ABM PEG chart.

7. ABM average analyst rating is Buy. See ABM analyst rating chart.

8. ABM average analyst price target ($41.00) is above its current price ($37.00). See ABM price target chart.

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

1. ABM stock price ($37.00) is close to the 52-week high ($37.38). Perhaps now is a good time to sell? See ABM price chart.

2. ABM quarterly revenue growth was 1.20%, lower than the industry and sector average revenue growth (3.61% and 4.74%, respectively). See ABM revenue growth chart.

3. ABM short share of float is 14.79%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ABM short share of float chart.

4. ABM short interest (days to cover the shorts) ratio is 8.91. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ABM short interest ratio chart.

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

Metrics ABM
Price $37.05
Average Price Target / Upside $41.00 / 10.65%
Average Analyst Rating Buy
Industry Business Services
Sector Industrials
Number of Employees 140,000
Market Cap $2.48B
Forward P/E Ratio 16.46
Price/Book Ratio 0.38
PEG 1.16
Revenue (TTM) $6.46B
YoY Quarterly Revenue Growth 1.2%
Profit Margin 1.28%

What are your thoughts on ABM?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Comments (0)expand_more