"Long-suffering" is probably a good description for many ABB (ABB) shareholders, but it looks as though their patience is starting to show a few rewards. While the long-term performance of ABB shares doesn't compare so favorably to its peer group (including companies like Emerson (EMR), Rockwell (ROK), Schneider (OTCPK:SBGSY), and Siemens (OTCPK:SIEGY)), the shares have continued to outperform since the August 2019 hiring of former Sandvik CEO Bjorn Rosengren, helped as well by a small string of better than expected results.
While better-than-expected results in the second quarter were welcome, there's still a lot of work that needs to be done at ABB. The business still has too much in the way of central/corporate expenses, corporate cultures tend to change slowly, and ABB has some fierce competitors. What's more, there may be some intrinsic complexities to the business that just prove resistant to change. Still, I believe ABB can be a much better-run company than it has been, and while the current share price already prices some of that in, there's further upside if the company can hit the CEO's long-term targets.
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