On the upside, ABB Ltd (NYSE:ABB) will test short term resistance at around $19.34. On a downside, the share price is likely to find some support, which begins at $19.02. The failure to get near-term support could push it to $18.82. Its 50 day simple moving average (SMA 50) price is $20.86 and its 200-day simple moving average (SMA 200) price is $22.64. The company’s stock currently has a total float of 2.14B shares. Its weekly volatility is hovering around 1.57% and felt 1.4% volatility in price over a month.
ABB stock has been range bound between the range of $18.94 and $18.94 during the whole day. The stock finished Thursday at $19.22. The -2.24% downtrend forced its market value to reach at $42B. The price went up as high as $18.94 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,161,335 shares versus 2,486,350 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,215,761 shares. The stock is now 0.73% above against its bear-market low of $19.08 on December 06, 2018. It has retreated -49.17% since it’s 52-week high of $28.67 reached in January. Now the market price is down -24.39% on the year and down -28.34% YTD.
Wall Street’s most bullish ABB Ltd (NYSE:ABB) analysts are predicting the share price to blow past $30.56 per share during the next 12 months. The current median share price forecast by them is $24.95, suggesting that the stock could increase 29.81% in that time frame. The average price target of $24.44 calls for a nearly 27.16% increase in the stock price.
It had seen a negative analyst call from JP Morgan, which downgraded the stock from Neutral to Underweight on December 03. Analysts at Societe Generale, shed their negative views on September 13 by lifting it fromHold to Buy. The stock won favor of Citigroup analysts who expressed their confidence in it using an upgrade from Neutral to Buy on September 04. Berenberg analysts came out with bullish views on January 17 when the call was made. They think the stock is now Hold compared to to their prior call for Sell.
When looking at valuations, ABB Ltd (ABB) has a pricey P/E of 18.36x as compared to industry average of 17.43x. Moreover, it trades for 13 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.91x price/book and 1.17x price/sales. Compared to others, ABB Ltd is in a different league with regards to profitability, having net margins of 6.2%. To put some perspective around this, the industry’s average net margin is 4.9%. ABB’s ROE is 16.1%, which is also considerably better than the industry’s ROE of 7.73%. It’s also very liquid in the near term, with a current ratio of 1.2. The stock has a debt/capital of 0.67.
Shares of ABB Ltd (ABB) have dropped -1.2% since the company’s last earnings report. Over the past 12 fiscal quarters, ABB Ltd (NYSE:ABB) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. ABB last reported earnings on October 25, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.34 per share, -95.09% change on the same period last year. That was worse than consensus for $0.37. Revenue for the recent quarter stood at $9.26 billion, up 6% on last year and below the $9.38 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $9.76 billion to $10.17 billion, which should be compared with $9.72 billion generated last year. EPS is seen in a range of $0.28 to $0.4, against the $0.4 reported a year ago.