ABM ABM has performed well over the past year and has the potential to sustain its momentum in the near term.

What Makes ABM an Attractive Pick?

Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. ABM Industries has gained 31%, outperforming the 14% rally of the industry it belongs to and the 25.4% rise of the Zacks S&P 500 composite.

One Year Price Performance

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Solid Rank & VGM Score: ABM currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Four estimates for fiscal 2025 have moved north in the past 60 days versus no southward revision. The Zacks Consensus Estimate for fiscal 2025 earnings has moved up 1.6% in the past 60 days.

Positive Earnings Surprise History: ABM has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the past four quarters, the average surprise being 11.6%.

Estimate Trend: The Zacks Consensus Estimate for ABM’s fiscal 2025 revenues is pegged at $8.6 billion, suggesting a year-over-year rise of 2.5%. For fiscal 2026, the consensus estimate is pegged at $8.9 billion, indicating 3.3% year-over-year growth.

The Zacks Consensus Estimate for ABM’s fiscal 2025 earnings is pegged at $3.7 per share, hinting at a year-over-year rise of 3.9%. For fiscal 2026, the consensus estimate is pegged at $4.1, implying 10.6% year-over-year growth.

Growth Factors: In 2021, ABM launched ELEVATE, a multi-year comprehensive strategic plan. ELEVATE is driving long-term value for ABM’s stakeholders by strengthening its industry leadership position via end-market repositioning and expansion of its core offerings.

In 2024, the company commercialized ABM Clean and ABM Performance Solutions. ABM Clean is an AI-based purpose-built application for the aviation industry. ABM Performance Solutions is a tech-driven multi-service offering that incorporates data from multiple sources to allow ABM to deliver better results for its clients and their customers under a single service contract. A substantial portion of the top line in 2024 was derived from clients who use these products.

In fiscal 2022, 2023 and 2024, the company distributed $51.9 million, $57.5 million and $56.5 million in dividends, respectively. Additionally, it returned $97.5 million, $138.1 million and $56.1 million through share repurchases for the same period. ABM’s robust cash position supports its motivation to reward shareholders through dividends and share buybacks. These actions reflect dedication to boosting shareholder value and confidence in the long-term potential of the business.

Other Stocks to Consider

Some other top-ranked stocks to consider are AppLovin APP and UiPath PATH.

AppLovin currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 20%.

APP delivered a trailing four-quarter earnings surprise of 26.2%, on average.

UiPath sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 19.3%.

PATH delivered a trailing four-quarter earnings surprise of 38.8%, on average.

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ABM Industries Incorporated (ABM) : Free Stock Analysis Report

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