ABM Should I Buy
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ABM Industries Inc is not a strong buy for a beginner investor with a long-term focus at this time. The stock has experienced a significant price drop recently, technical indicators suggest a bearish trend, and analysts have downgraded the stock with reduced price targets. Additionally, the company's latest financial performance shows declining profitability, which raises concerns about its near-term growth potential. While there are no significant positive catalysts or trading signals, the stock may warrant re-evaluation after its upcoming earnings report in March 2026.
The technical indicators suggest a bearish trend. The MACD histogram is negative and expanding, indicating downward momentum. The RSI is at 24.61, which is near oversold territory but not yet a clear buy signal. Moving averages are converging, and the stock is trading near its support level of 43.587, with resistance at 45.607. The stock has a 70% chance to decline slightly in the next day and week, with a modest chance of recovery over the next month.
No significant positive catalysts identified. The company has an upcoming earnings report on March 9, 2026, which may provide more clarity on its financial outlook.
Recent analyst downgrades with reduced price targets, citing lack of catalysts, flat margins, and limited capital deployment. The company's Q4 financials showed a sharp decline in net income and EPS, raising concerns about profitability.
In Q4 2025, revenue increased by 5.42% YoY to $2.295 billion. However, net income dropped significantly by -397.44% YoY to $34.8 million, and EPS fell by -394.74% YoY to $0.56. Gross margin also declined to 11.23%, down 5.39% YoY. These figures indicate declining profitability despite revenue growth.
Analyst sentiment has turned cautious. Truist downgraded the stock to Hold with a reduced price target of $47, citing a lack of catalysts and potential overestimation of Q1 revenue. UBS downgraded the stock to Neutral with a price target of $51, citing flat margins and limited capital deployment. Baird lowered its price target to $52 but maintained an Outperform rating, noting easing pricing headwinds. Freedom Capital initiated coverage with a Buy rating and a $54 price target, highlighting the company's potential for record revenue in 2026.
