ABB stock: buy or sell?

ABB stock price: $18.90 -0.42% At close on May 20th, 2019

Updated on:
May 20th, 2019

1

ABB closed today at $18.90 and declined a disappointing -0.42%.

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.

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?

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.
Is ABB a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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 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 stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $21.00

Nobody 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:
ABB stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-3Royal Bank of CanadaReiteratesn/a$21.00-
(in average)$0.00$21.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
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

Compared 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%.

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 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%.
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 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:

ABBEMRGEHONITW
Market cap$40.3 B$39.3 B$87.2 B$122.7 B$48.7 B
Total shares2,130.0 M614.6 M8,720.0 M727.7 M325.8 M
Float shares1,780.0 M610.8 M8,710.0 M696.3 M322.6 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 selling0.0%0.0%0.0%0.0%0.0%

ABB summary

Monday, May 20th, 2019
Open$18.75
Close$18.90
Day range$18.71 - $18.91
Previous close$18.98
Session gain-0.42%
Average true range$0.32
50d mov avg$18.93
100d mov avg$18.79
200d mov avg$19.76
Daily pattern
Weekly pattern lb02a

ABB performance

To 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.
Stock3m6m12m
ABB -3.23%-0.74%-16.37%
EMREmerson Electric-6.08%-1.46%-9.30%
GEGeneral Electric3.20%30.04%-29.03%
HONHoneywell Interna...10.06%18.32%18.65%
ITWIllinois Tool Wor...3.90%13.02%4.18%
UTXUnited Technologi...5.04%4.62%7.46%

ABB competitors

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

Latest ABB stock news