ABM Industries Stock Rises 24% in a Year: Here's What to Know

Core Viewpoint - ABM Industries Incorporated (ABM) has demonstrated strong performance over the past year, with a stock price increase of 24%, significantly outperforming the industry and the S&P 500 composite growth rates of 5.1% and 15.2% respectively [1] Group 1: Factors Driving Performance - ABM's diversified service portfolio, including janitorial, engineering, and facility services, has shown resilience during economic uncertainty, with consistent demand particularly from healthcare, education, and commercial real estate sectors [2] - The company has reported strong quarterly earnings over the past four quarters, exceeding the Zacks Consensus Estimate, with an average earnings surprise of 11.6% [3] - ABM's focus on sustainability and energy efficiency initiatives has attracted ESG-focused investors, enhancing its market appeal and differentiating it from competitors [4] Group 2: Market Sentiment and Position - Positive investor sentiment in the facility management sector is driven by increasing demand for services that ensure workplace safety and operational efficiency, benefiting ABM's market position [5] - ABM currently holds a Zacks Rank of 2 (Buy), indicating strong investment potential, alongside other top-ranked stocks in the business services sector [6] - Competitors like AppLovin Corporation and Booz Allen Hamilton also show strong performance, with AppLovin having a long-term earnings growth expectation of 20% and an average earnings surprise of 23.5% [6][7]