Swiss automation and power product company ABB (NYSE:ABB)
has plenty of doubters and skeptics out there, and I don't think
second-quarter results are going to be enough to bring them over to the
bull side. The company should get credit for delivering a better result
than was expected, but that has to be tempered by the fact that
expectations have been heading lower with worries about demand in energy-related process automation and a slow bottoming out of the power end markets.
I'm
more bullish on ABB's opportunity to turn around the power businesses
and continue to deliver growth in automation through new opportunities
like human-safe robots, smart buildings, and so on. The company lacks Rockwell's (NYSE:ROK) leverage
to higher-value software and controls, but then it comes at a lower
valuation and it still has balance sheet flexibility to add to its
capabilities in those areas. ABB is a more of a turnaround story than a
growth story, and on that basis, I still see some value here.
Read more here:
ABB Muddling Through Amidst Ample Skepticism
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