ABM Industries is experiencing growth and enhancing shareholder value through dividends and share repurchases.

From Zacks Investment Research: 2025-03-21 14:28:00

ABM Industries Incorporated (ABM) is experiencing growth due to its ELEVATE initiatives, strong liquidity, and commitment to dividends and share repurchases. The company’s shares have increased by 9% over the past year. ABM has consistently distributed dividends and repurchased shares, demonstrating its dedication to enhancing shareholder value. The company’s robust cash position supports these initiatives, with $169 million in free cash flow generated in 2024. ABM’s ELEVATE strategic plan focuses on enhancing transparency, talent management, data usage, and digital modernization. Recent acquisitions, such as RavenVolt and Quality Uptime, are expected to strengthen ABM’s service offerings and revenue streams. However, the company faces challenges related to customer retention, wage inflation, and labor availability. ABM carries a Zacks Rank #3 (Hold), while better-ranked stocks in the Business Services sector include UiPath and Limbach Holdings, Inc., both with a Zacks Rank #1 (Strong Buy). UiPath has a long-term earnings growth expectation of 19%, while Limbach Holdings has a long-term earnings growth expectation of 12%.



Read more at Zacks Investment Research: Here’s Why Hold Strategy is Apt for ABM Industries Stock Now – March 21, 2025