As more industrial companies report, what had originally looked like a
pretty good quarter is looking increasingly mixed. While companies with
exposure to aerospace, automotive, and energy markets are generally
doing pretty well (including Honeywell (NYSE:HON), General Electric (NYSE:GE), and Dover (NYSE:DOV)), businesses leveraged to industrial and utility markets are seeing shakier results.
In the case of ABB (NYSE:ABB),
the problem isn't so much about the quarter that is in the books, but
rather the company's double-digit decline in orders. Although it seems
that management believes this is mostly a timing issue, weakness in the
peer group and declines in markets like mining and robotics could be
more problematic. I'm still fundamentally bullish on ABB shares, and
it's a rare undervalued industrial stock, but it may take a couple of
quarters for the Street to feel comfortable with the story again.
Please read more here:
http://www.investopedia.com/stock-analysis/072513/abb-gets-dinged-orders-it-timing-or-something-worse-abb-hon-si-emr.aspx
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