A Good Start To The Year For ABB, But Management Has To Build From Here

Owning ABB (ABB) continues to be an exercise in frustration, as the shares have lagged peers like Schneider (OTCPK:SBGSY), Emerson (EMR), and Siemens (OTCPK:SIEGY) so far this year, while only very slightly outperforming Rockwell (ROK). Stretch those comparisons out a couple of years and the story remains frustratingly consistent, as ABB has had to pay the price for its own self-inflicted wounds in years past.

I remain cautiously optimistic that better days lie ahead. ABB has gotten smarter lately with its M&A and has been reinvesting in areas like R&D and services to support better long-term growth. Likewise, I’m bullish on the long-term opportunities in higher-margin areas like grid automation, robotics, and EV charging. Although the company still has some fundamental mix issues to solve, ABB’s late-cycle skew and exposure to recovering industries like oil/gas and mining should help.

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A Good Start To The Year For ABB, But Management Has To Build From Here