Core Viewpoint - ABB has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For ABB, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to upward pressure on its stock price [5][8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of ABB to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Recent Earnings Estimate Revisions - Analysts have raised their earnings estimates for ABB, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $2.55 per share, reflecting a 1.3% increase over the past three months [8].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Tesco, Grocery Outlet, and ABB [1][2][3][4] Group 1: Tesco - Tesco is the UK's largest retailer and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Tesco's current year earnings increased by 4.6% over the last 60 days [1] - Tesco's shares gained 8% over the last three months, outperforming the S&P 500's gain of 5.2% [2] - The company possesses a Momentum Score of A [2] Group 2: Grocery Outlet - Grocery Outlet is a high-growth, extreme value retailer with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Grocery Outlet's current year earnings increased by 1.3% over the last 60 days [2] - Grocery Outlet's shares gained 9.4% over the last three months, also outperforming the S&P 500's gain of 5.2% [3] - The company possesses a Momentum Score of A [3] Group 3: ABB - ABB is a leading technology company with a Zacks Rank 1 [3][4] - The Zacks Consensus Estimate for ABB's current year earnings increased by 1.2% over the last 60 days [3] - ABB's shares gained 14.1% over the last three months, significantly outperforming the S&P 500's gain of 5.2% [4] - The company possesses a Momentum Score of B [4]

For the quarter ended September 2025, ABB (ABBNY) reported revenue of $9.08 billion, up 11.4% over the same period last year. EPS came in at $0.66, compared to $0.51 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $8.84 billion, representing a surprise of +2.71%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being $0.63.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Vestas Wind Systems AS (VWDRY) and ABB (ABBNY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong e ...

Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Franklin Electric (FELE) and ABB (ABBNY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision tren ...

Core Insights - ABB Ltd (ABBNY) is experiencing strong performance in its Electrification segment, driven by robust customer activities in key markets such as service and utilities, with orders in Q2 2025 reaching $4.52 billion, a 9% year-over-year increase on a comparable basis [1][8] - The order backlog has reached a record $8.69 billion, up from $7.55 billion in the same quarter last year, with revenues for the segment totaling $4.33 billion, reflecting an 11% year-over-year increase [2][8] - The Electrification segment benefits from effective execution of its order backlog, particularly in medium voltage and power protection, with positive customer activity and project wins expected to enhance growth [3][8] - ABBNY anticipates a favorable market response to its new SACE Emax 3 air circuit breaker, which is designed to enhance energy security in critical infrastructure [4][8] Peer Segment Performance - EnerSys' Energy Systems segment reported net sales of $399 million in Q4 fiscal 2025, an 8% year-over-year increase, driven by data center strength and recovery in the U.S. Communications market [5] - Emerson Electric Co.'s Software and Control Automation Solutions segment generated net sales of $1.42 billion in Q2 fiscal 2025, up 7% year-over-year, supported by momentum in the AspenTech business and strength in power and process markets [6] Financial Performance and Valuation - ABB shares have increased by 22% over the past six months, outperforming the industry growth of 16.4% [7] - The company is currently trading at a forward price-to-earnings ratio of 25.07X, above the industry average of 24.53X, and carries a Value Score of C [9] - The Zacks Consensus Estimate for ABB's 2025 earnings has risen by 1.2% over the past 60 days [12]

Core Insights - ABB Ltd and Rockwell Automation, Inc. are key players in the industrial automation and electrification sectors, with ABB focusing on power and automation technologies while Rockwell is known for its industrial automation and information technologies [1][2] ABB Analysis - ABB's Process Automation segment is currently the strongest driver of its business, benefiting from robust project activity in marine, ports, and energy industries [3] - In Q2 2025, orders in the Process Automation segment increased by 45%, with revenues rising by 5% year over year, and a significant order worth $600 million was booked [4] - The Electrification segment is also performing well, with orders and revenues increasing by 11% and 14% respectively in Q2 [5] - The Motion segment saw orders and revenues rise by 5% and 6% year over year, supported by strong performance in commercial building HVAC and power generation markets [6] - However, the Robotics & Discrete Automation segment is facing challenges due to weak demand in chemicals, pulp & paper, and mining industries [7] - ABB's long-term debt increased to $8.26 billion from $6.65 billion at the end of 2024, with short-term debt surging by 90% [8] Rockwell Automation Analysis - Rockwell is expanding its portfolio of hardware and software products, benefiting from investments in cloud technologies [9] - The company's FactoryTalk Design Studio, which includes a copilot for automation system design, is an industry first and is expected to drive growth [9] - Rockwell's annual recurring revenues (ARR) grew in double digits in fiscal 2024 and are projected to grow by 10% in fiscal 2025 [13] - The company maintains a strong financial position, having repurchased 0.5 million shares for $129 million in Q2 2025 [14] - Rockwell's stock has appreciated by 28.9% over the past year, outperforming ABB's 18.7% increase [17] Financial Performance and Valuation - ABB's forward P/E ratio is 25.27X, while Rockwell's is higher at 31.49X, indicating that ABB may be more attractively valued [10][20] - The Zacks Consensus Estimate for ABB's 2025 sales and EPS implies growth of 6.1% and 14.1% respectively, although EPS estimates have decreased recently [18] - In contrast, Rockwell's fiscal 2025 sales estimates indicate a decline of 1.8%, but EPS estimates show a 1% increase, with positive trends for both fiscal 2025 and 2026 [19] Conclusion - ABB's strengths in Electrification and Process Automation are offset by weaknesses in Robotics and high debt levels [22] - Rockwell's market leadership and investments position it for strong growth, making it a more favorable investment option compared to ABB [23][24]

Core Insights - ABB Ltd's Motion segment reported revenues of $1.84 billion in Q1 2025, reflecting a 3% year-over-year increase, driven by strong performance in commercial building HVAC, power generation, and water & wastewater markets [1][7] - The operational EBITA for the Motion segment rose 5% year-over-year to $360 million, with an operational EBITA margin increase of 110 basis points to 19.6% due to positive pricing and improved operational efficiency [1][7] - The order backlog for the Motion segment increased to $5.72 billion from $5.61 billion year-over-year, with a book-to-bill ratio of 1.17 [1] Revenue and Orders - Total orders for the Motion segment decreased by 6% year-over-year to $2.16 billion, primarily due to a tough comparison with the previous year, which included a one-time $150 million order [2][7] - Weak demand was noted across various end markets, including oil & gas, food & beverage, chemicals, and rail [2] Market Position and Performance - Despite the decline in orders, the Motion segment is well-positioned for growth in the coming quarters, supported by solid momentum in the service business and a strong backlog level [3] - ABB's shares have gained 8.5% over the past six months, outperforming the industry growth of 3.5% [6] Peer Comparison - Eaton Corporation's eMobility segment reported net sales of $162 million in Q1 2025, up 2% year-over-year, but incurred an operating loss of $4 million due to launch costs [4] - EnerSys' Motive Power segment generated net sales of $392 million in Q4 fiscal 2025, down 0.6% year-over-year, with flat volume growth and a positive price/mix impact of 1% [5] Valuation Metrics - ABB is currently trading at a forward price-to-earnings ratio of 23.17X, slightly above the industry average of 23.12X [9] - The Zacks Consensus Estimate for ABB's second-quarter 2025 earnings has declined over the past 60 days, with current estimates at 1.29 for Q2 2025 and 2.43 for the current year [11][12]

Core Insights - ABB Ltd's Electrification segment is a key driver of overall growth, with strong customer activities in major markets such as utilities and buildings [1][3] - The segment's orders in Q1 2025 totaled $4.39 billion, reflecting a 2% year-over-year increase, while the order backlog reached a record $8.17 billion [1][7] - Revenue for the Electrification segment grew by 6% year-over-year during the same period [1][7] Segment Performance - The Electrification segment benefits from effective execution of its order backlog, particularly in medium voltage and power protection businesses [2] - Increased project wins and improving customer activity in short-cycle businesses are positive indicators for future performance [2] - The acquisition of Siemens' Wiring Accessories is expected to further support revenue growth in upcoming quarters [2] Market Challenges - There are concerns regarding muted customer demand in the hyperscale data center market and weakness in the residential building market in China [3] - Global trade policy uncertainties may impact the segment's near-term performance [3] - Despite these challenges, ongoing electrification trends and a strong order backlog position the segment for continued growth [3] Peer Comparison - Eaton Corporation's Electrical Americas segment reported net sales of $3.01 billion in Q1 2025, up 11.9% year-over-year, with a 6% increase in backlog [4] - EnerSys' Energy Systems segment generated net sales of $399 million in Q4 fiscal 2025, reflecting an 8% year-over-year increase, driven by data center growth [5] Valuation and Estimates - ABB shares have gained 13% over the past six months, outperforming the industry growth of 6.5% [6] - The company is trading at a forward price-to-earnings ratio of 23.61X, slightly above the industry average of 23.13X [9] - The Zacks Consensus Estimate for ABB's second-quarter 2025 earnings has declined over the past 60 days [10]

Core Viewpoint - ABB is expanding its production investment in the U.S. in response to Trump's tariff policies, raising questions about the actual effects of U.S. trade protectionism on global supply chains [1][5]. Group 1: ABB's Investment Strategy - ABB plans to increase its local production ratio in the U.S. to over 90% through a combination of organic investment and acquisitions [3]. - Currently, 75%-80% of ABB's sales in the U.S. rely on domestic production, with a total investment of approximately $500 million (about 3.7 billion RMB) over the past three years for factory expansions [3]. - Recent investments include a $40 million (about 290 million RMB) expansion in Senatobia, Mississippi, creating 122 technical jobs and doubling production capacity, and an $80 million (about 580 million RMB) new factory in Selmer, Tennessee, focused on power distribution equipment [3][5]. Group 2: Industry Context and Reactions - Other companies, such as Honda and Novartis, are also increasing their U.S. production to mitigate tariff risks, with Honda planning a 30% increase in U.S. auto production and Novartis investing $23 billion (about 161 billion RMB) [5]. - ABB's CEO emphasized the need to reduce import dependence in the U.S. market, aligning with the Trump administration's goals to boost domestic manufacturing and employment [5]. - The Mississippi Development Authority supports ABB through tax incentive programs, highlighting the state's attractive business environment [5]. Group 3: Market Concerns and Economic Impact - Despite ABB's investments being seen as a short-term success of tariff policies, there are concerns about the long-term sustainability of these strategies [7]. - Analysts express worries that rising costs due to tariffs may squeeze corporate profits, and that mergers and acquisitions could increase financial risks [7]. - The local economy has benefited from ABB's investments, with new jobs contributing to community stability, although actual job creation may fall short of initial promises [7][9].