Swiss automation and power technologies conglomerate ABB (NYSE:ABB)
managed to avoid another major quarterly sell-off, but I think the
reaction to this earnings report owes a lot to lower expectations and
stronger orders. Looking through the line-items, ABB still has a lot of
work to do in its Power Systems business and underwhelming margin
performance across the board is a concern. ABB is a rare stock within
the industry space in that it trades below my estimate of fair value,
but that undervaluation comes with the intangible cost of significant
execution risk and downside revision potential.
Follow this link to the full article:
Orders A Bright Spot, But ABB Has A Lot Of Work To Do
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