Trade-Ideas: ABM Industries (ABM) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified ABM Industries as such a stock due to the following factors:
- ABM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
- ABM has traded 7,453 shares today.
- ABM is trading at a new lifetime high.
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More details on ABM:
ABM Industries Incorporated provides integrated facility solutions services in the United States and internationally. The stock currently has a dividend yield of 2%. ABM has a PE ratio of 22.1. Currently there are 3 analysts that rate ABM Industries a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for ABM Industries has been 201,700 shares per day over the past 30 days. ABM has a market cap of $1.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.14 and a short float of 1.5% with 3.24 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates ABM Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- ABM's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ABM has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ABM INDUSTRIES INC has improved earnings per share by 34.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ABM INDUSTRIES INC increased its bottom line by earning $1.33 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.33).
- You can view the full ABM Industries Ratings Report.
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