ABB is part of the industrials sector and is part of the industrial products industry. The company CEO is Peter R. Voser. ABB is a power and automation systems provider that are designed to boost industrial productivity, increase power grid reliability and enhance energy efficiency. The company works closely with utility, industry, transport and infrastructure customers.



Previous Intraday Performance:

The ABB shares had a previous change of 0.75% which opened at 18.77 and closed at 18.83. It moved to an intraday high of 18.87 and a low of 18.71.

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Historical Performance:

Over the last five trading days, ABB shares returned -0.37% and in the past 30 trading days it returned -0.63%. Over three months, it changed -3.28%. In one year it has changed -20.02% and within that year its 52 week high was 24.45 and its 52 week low was 18.05. ABB stock is 4.35% above its 52 week low.

Our calculations result in a 200 day moving average of 19.74 and a 50 day moving average of 18.98. Right now, ABB stock is trading -4.60% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

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Liquidity:

The company has a market cap of $40.1b with 2.1b shares outstanding and a float of 2.1b shares. Trading volume was 1,256,928 shares and has experienced an average volume of 1,927,502 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for ABB was 1.02 which ended on 31st of December 2018, which according to the previous close, that is a PE of 18.46. The trailing twelve month EPS reported is 1.32 (trailing twelve month diluted EPS is 1), which comes to a trailing twelve month PE of 14.27. Historically, the PE high was 30.30 and the PE low was 14.27. ABB stock has set a new PE low record!

Below was the last reported quarterly diluted earnings per share:

1stQtr 2019 0.25
4thQtr 2018 0.15
3rdQtr 2018 0.28
2ndQtr 2018 0.32
1stQtr 2018 0.27

The dividend per share is currently 0.80, which is a dividend yield of 4.23%. With a payout ratio of 60.39%, ABB stock may not have sufficient earnings to cover future dividends and still be able to invest in and grow the business, therefore in the future the dividend may be reduced.

Base on our calculations, the intrinsic value per share is 16.45, which means it might be overvalued by -14.44%.



The long-term trend of the EPS is a vital number as it helps understand the future potential of ABB; the EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 12.10% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 4.90% of institutional ownership. Short-interest was 2,740,385, which was 0.13% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.43. This stock has some short interest, but it might be normal and no need to worry if long the position.

The beta was calculated to be 1.09.

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 16.11%, return on assets is 5.04%, profit margin is 7.02%, price-to-sales is 1.25 and price-to-book is 2.75.

Company Score Card:

Results are out of six:
 4  : Growth Expectations Result
 5  : Financial Safety Result
 2  : Past Performance Result
 0  : Valuation Result
 0  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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