Weak Orders, Low Visibility, And A Lack Of Dynamism Hurting ABB

ABB (NYSE:ABB) shares are faring poorly after third quarter earnings, as not only did the company miss on revenue, operating earnings, and orders, management's market commentary suggested no short-term turnaround was in sight. ABB may also still be suffering something of a hangover from its Capital Markets Day, an event that basically ended up with the message of "more of the same, only better!"

I still believe that ABB is undervalued, but it's a harder case to make when orders are weak and management's strategic plan doesn't seem to offer much that hasn't already been tried. I believe there are solid reasons to expect better growth from ABB's business units than the market currently anticipates, but it's going to be a frustrating wait if ABB can't or won't do something a little more dynamic in the meantime. I continue to believe that the shares are undervalued and that fair value lies from $22.50 to $24.

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Weak Orders, Low Visibility, And A Lack Of Dynamism Hurting ABB