As far as ABB (ABB) is concerned, the industrial recovery that has propelled names like Honeywell (HON), Emerson (EMR), Rockwell (ROK), and Schneider (OTCPK:SBGSY)
over the past couple of years is just something that happens to other
companies. Hampered by large exposures to industries that have been much
slower to recover, and troubled by some of its own restructuring and
execution issues, ABB has been a frustrating laggard at a time when
investors are banking solid profits in many other industrial names.
With
two straight better-than-expected quarters and improving orders,
though, maybe ABB’s late-cycle leverage is about to start shining
through. The outlook for transmission and distribution is still not
particularly strong, but the company is executing well in its automation
operations and there are signs of life in the low/medium voltage
business as well. There remain good reasons why ABB continues to trade
at a discount to its peer group, but if ABB can make the most of this
late-cycle move, the shares could finally close some of that performance
gap.
Read more here:
Will Two Straight Good Quarters Mark A Turn For ABB?
No comments:
Post a Comment