ABB stock: buy or sell?

ABB stock price: $20.07 -0.55% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

ABB shares slightly fell -0.55% to $20.07 today. With Friday it's been 3 sliding days in a row, loosing $-0.29 (-1.43%).

Should I buy ABB stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with ABB stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is ABB stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 14 ratings published for ABB stock in the last month.

The general sentiment of these ratings is bearish for ABB stock, with 6 negative ratings.
Is ABB a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6JPMorgan Chase & Co.n/aSell
2019-8-1Societe GeneraleBuyHold
2019-7-9JPMorgan Chase & Co.n/aSell
2019-7-26Vertical ResearchSellHold
2019-7-26Morgan Stanleyn/aHold
2019-7-26Deutsche Bankn/aBuy
2019-6-17JPMorgan Chase & Co.n/aSell
2019-5-3Royal Bank of Canadan/aHold
2019-4-8JPMorgan Chase & Co.n/aSell
2019-3-4DNB MarketsBuyHold
2019-3-19Berenberg Bankn/aSell
2019-1-8Bank of AmericaNeutralBuy
2019-1-28Berenberg BankHoldSell
2019-1-15Royal Bank of Canadan/aSector Perform

ABB stock analysis

Daily outlook

Shares of ABB ended today at $20.07 and slightly fell a lame -0.55%.

ABB shares slightly fell -0.55% to $20.07 today. Since price and SMA200d lines crossed up on Sep/4, ABB climbed $1.36 (7.27%). On July, SMA100d and SMA200d crossed up triggering a rise of 8.31%. ABB is retaking the upward trend marking a new rising bottom heading to break out over $20.49.

ABB stock chart (daily)

Weekly outlook

ABB closed this week at $20.07 and depreciated a lame -1.42%.

Since late August when ABB stock price broke up the SMA40w line, it gained $1.65 (8.96%). Since SMA20d and SMA40w crossed up early July, ABB price climbed $0.63 per share (3.24%).

ABB stock chart (weekly)

ABB stock price history

ABB stock went public on April 6th, 2001 with a price of $9.151. Since then, ABB stock grew a 119.30%, with a yearly average of 6.60%. If you had invested right after ABB's IPO a $1,000 in ABB stock in 2001, it would worth $1,193.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ABB stock historical price chart

ABB stock reached 52-week highs at $23.50, and all-time highs 2018-01-24 with a price of 26.57.

ABB stock price target is $21.40

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 3 price forecasts for ABB stock released in the last 30 days:
ABB stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-26Morgan StanleyReiteratesn/a$20.10-
2019-7-26Deutsche BankReiteratesn/a$23.00-
2019-5-3Royal Bank of CanadaReiteratesn/a$21.00-
(in average)$0.00$21.400.0%
The price forecast for ABB stock is $21.40, moving in a range between $23.00 and $20.10. In average, analysts' outlook on ABB price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

ABB failed analysts on February when it posted an Earnings per Share (EPS) of $0.30 when the analysts' forecast was $0.40.
ABB earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.29n/a
2017-Q3-n/a0.32n/a
2017-Q42018-02-080.250.3332.0%
2018-Q12018-04-190.310.310.0%
2018-Q22018-07-190.360.372.8%
2018-Q32018-10-250.380.34-10.5%
2018-Q42019-02-280.40.3-25.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, ABB annual turnover rose a wonderful 9.79% to $27,662.00 M USD from $25,196.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) stayed stable a -0.93% to 7.86%.

ABB annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$38,740 M-$2,620 M6.8%-
2014$39,830 M2.81%$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 M9.79%$2,173 M7.9%-1.81%

Quarterly financial results

ABB posted $889.00 M in sales for 2018-Q4, a -90.40% less compared to previous quarter. Reported quarter income 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 chilling slide and collapsed a -90.42%.
ABB quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$8,260 M-$516 M6.2%-
2017-Q3$8,370 M1.33%$555 M6.6%7.55%
2017-Q4$9,280 M10.87%$393 M4.2%-29.14%
2018-Q1$8,627 M-7.04%$572 M6.6%45.55%
2018-Q2$8,889 M3.04%$681 M7.7%19.06%
2018-Q3$9,257 M4.14%$603 M6.5%-11.45%
2018-Q4$889 M-90.40%$317 M35.7%-47.43%
2019-Q1$6,847 M670.19%$535 M7.8%68.77%

ABB ownership

When you are planning to buy shares of a stock, it's always worth to overview its ownership structure.

ABB shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.00% of all shares.

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 context understanding, the next table shows ownership data compared to other related stocks:

ABBEMRGEHONITW
Market cap$42.7 B$40.1 B$81.8 B$121.2 B$50.4 B
Total shares2,130.0 M615.1 M8,730.0 M719.5 M323.5 M
Float shares1,780.0 M610.8 M8,710.0 M687.1 M320.1 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 selling0.0%0.0%0.0%0.0%0.0%

ABB summary

Friday, September 20th, 2019
Open$20.17
Close$20.07
Day range$20.06 - $20.23
Previous close$20.18
Session gain-0.55%
Average true range$0.25
50d mov avg$18.96
100d mov avg$19.07
200d mov avg$18.88
Daily patternlb02a
Weekly pattern

ABB performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We selected Emerson Electric, General Electric, Honeywell International, Illinois Tool Works and United Technologies as the bechmarking frame for ABB stock.
Stock3m6m12m
ABB 0.90%12.44%-14.08%
EMREmerson Electric0.15%-0.94%-13.86%
GEGeneral Electric-10.42%-5.92%-19.57%
HONHoneywell Interna...-2.92%9.13%7.19%
ITWIllinois Tool Wor...3.28%11.56%8.06%
UTXUnited Technologi...5.91%9.56%-2.36%

ABB competitors

We picked a few stocks to conform a list of ABB competitors to examine if you are interested in investing in ABB:

Latest ABB stock news