Why ABM Industries (ABM) is a Top Value Stock for the Long-Term

Zacks
08 Jan

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

ABM Industries (ABM)

New York based ABM Industries is a provider of integrated facility solutions in the United States and internationally.

ABM sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Building Products - Maintenance Service industry's P/E of 30.1X, shares of ABM Industries are trading at a forward P/E of 13.6X. ABM also has a PEG Ratio of 2.6, a Price/Cash Flow ratio of 9.4X, and a Price/Sales ratio of 0.4X.

Many value investors pay close attention to a company's earnings as well. For ABM, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $3.69 per share for 2025. Per share ABM boasts an average earnings surprise of 11.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ABM to their portfolios.

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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