ABB Ltd shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● With a 2024 P/E ratio at 23.13 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● Over the past twelve months, analysts' opinions have been revised negatively.
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Surperformance is Buy on ABB LTD since 2025-09-18
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ABB Ltd is one of the world's leaders in the design, production and marketing of industrial equipment. Net sales break down by family of products and services as follows:
- electrical transmission and distribution products and systems (68.2%): transformers, medium-voltage electrical distribution systems (circuit breakers, switches, fuses, transducers, etc.), high-voltage electrical distribution systems (condensers, switches, etc.), and automated systems for use in electrical plants. ABB Ltd also offers turnkey installation services for transmission systems;
- automation systems (30.2%): electrical protection systems and instruments for measuring and controlling fluids, production process control systems (primarily for the oil and gas, chemical and pharmaceutical, marine, mining, and paper industries). The group also manufactures and markets robots and modular systems;
- other (1.6%).
Net sales are distributed geographically as follows: Europe (33.9%), the United States (27%), Americas (8.9%), China (13.1%), and Asia/Middle East/Africa (17.1%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
