ABB stock: buy or sell?
May 20th, 2019
Should I buy ABB stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, ABB stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is ABB stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we detected 7 ratings published for ABB stock in the last month. The general sentiment of these ratings is bearish for ABB stock, with 3 negative ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-3||Royal Bank of Canada||n/a||Hold|
|2019-4-8||JPMorgan Chase & Co.||n/a||Sell|
|2019-1-8||Bank of America||Neutral||Buy|
|2019-1-15||Royal Bank of Canada||n/a||Sector Perform|
ABB stock analysis
Shares of ABB closed today at $18.90 and declined a disappointing -0.42%.
ABB shares declined -0.42% to $18.90 today. On April 10th, SMA50d and SMA100d crossed up triggering a rise of 1.02%.
ABB shares remained steady -0.42% this week, ending at $18.90. Counting this, it's been 5 sliding weeks in a row, loosing $-1.23 (-6.49%). By mid April ABB rocketed an astounding 5.91% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $20.36 resistance. Since late April, when ABB stock price broke down the 40-weeks moving avarage line, it slid $-1.23 per share (-6.11%). Stocks below the 200 days moving average line are usually not recommended for average traders. Since early April when SMA10w and SMA20w crossed up, ABB price gained $0.77 per share (4.25%).
ABB stock price history
ABB stock went public on April 6th, 2001 with a price of $9.161. Since then, ABB stock grew a 106.30%, with an average of 5.90% per year. If you had invested right after ABB's IPO a $1,000 in ABB stock in 2001, it would worth $1,063.00 today.
1: Adjusted price after possible price splits or reverse-splits.
ABB stock historical price chart
ABB stock reached 52-week highs at $23.75, and all-time highs 2018-01-24 with a price of 26.56.
ABB stock price target is $21.00Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we only found 1 price prediction for ABB stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-5-3||Royal Bank of Canada||Reiterates||n/a||$21.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, ABB didn't meet the estimates of the experts and reported a bloodcurdling EPS of $0.30 per share when experts were expecting $0.40.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual revenues report draw a brilliant increase of 9.79% to $27,662.00 M dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) stayed constant a -0.93% to 7.86%.
|2013||$38,740 M||-||$2,620 M6.8%||-|
|2014||$39,830 M||2.81%||$2,594 M6.5%||-0.99%|
|2015||$35,481 M||-10.92%||$1,933 M5.4%||-25.48%|
|2016||$33,828 M||-4.66%||$1,899 M5.6%||-1.76%|
|2017||$25,196 M||-25.52%||$2,213 M8.8%||16.54%|
|2018||$27,662 M||9.79%||$2,173 M7.9%||-1.81%|
Quarterly financial resultsABB reported $889.00 M in sales for 2018-Q4, a -90.40% decline compared to previous quarter. Reported quarter earnings marked $317.00 million with a profit margin of 35.66%. Profit margin boosted a 29.14% compared to previous quarter when profit margin was 6.51%. When comparing sales to same quarter last year, ABB sales marked a scary slide and plunged a -90.42%.
|2017-Q2||$8,260 M||-||$516 M6.2%||-|
|2017-Q3||$8,370 M||1.33%||$555 M6.6%||7.55%|
|2017-Q4||$9,280 M||10.87%||$393 M4.2%||-29.14%|
|2018-Q1||$8,627 M||-7.04%||$572 M6.6%||45.55%|
|2018-Q2||$8,889 M||3.04%||$681 M7.7%||19.06%|
|2018-Q3||$9,257 M||4.14%||$603 M6.5%||-11.45%|
|2018-Q4||$889 M||-90.40%||$317 M35.7%||-47.43%|
|2019-Q1||$6,847 M||670.19%||$535 M7.8%||68.77%|
ABB ownershipWhen you are planning to invest in a company, it's worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For ABB, 0.00% of all outstanding shares are owned by its staff.
In case of ABB stock, 4.45% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ABB stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related stocks:
|Market cap||$40.3 B||$39.3 B||$87.2 B||$122.7 B||$48.7 B|
|Total shares||2,130.0 M||614.6 M||8,720.0 M||727.7 M||325.8 M|
|Float shares||1,780.0 M||610.8 M||8,710.0 M||696.3 M||322.6 M|
|- Institutional holdings (%)||4.5%||74.2%||58.6%||77.1%||79.7%|
|- Insider holdings (%)||0.0%||0.6%||0.2%||0.4%||0.2%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, May 20th, 2019|
|Day range||$18.71 - $18.91|
|Average true range||$0.32|
|50d mov avg||$18.93|
|100d mov avg||$18.79|
|200d mov avg||$19.76|
ABB performanceTo better understand ABB performance you must compare its gains with other related stocks in same sector or industry. We chose Emerson Electric, General Electric, Honeywell International, Illinois Tool Works and United Technologies as the bechmarking frame for ABB stock.
|ITWIllinois Tool Wor...||3.90%||13.02%||4.18%|
ABB competitorsWe chose a few stocks to conform a list of ABB competitors to check if you are interested in investing in ABB:
- Emerson Electric (EMR)
- General Electric (GE)
- Honeywell International (HON)
- Illinois Tool Works (ITW)
- United Technologies (UTX)
Latest ABB stock news
- Seeking AlphaWith Power Grids Out Of The Picture, Is Electrification Next To Go At ABB?April 23, 2019
- Seeking AlphaThe Sale Of Power Grids Creates Immediate Value For ABB ShareholdersDecember 17, 2018
- Seeking AlphaFor ABB, It's About Cycle, Self-Improvement, And SentimentOctober 8, 2018
- Seeking AlphaGrowth Is Picking Up At ABB, With Book-To-Bill Indicating It Will Not Slow Down SoonAugust 13, 2018
- Seeking AlphaWill Two Straight Good Quarters Mark A Turn For ABB?July 20, 2018