5-Star Stocks Poised to Pop: ABB Ltd
By
Brian D. Pacampara
December 10, 2008
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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Swiss electrical engineering giant ABB Ltd (NYSE: ABB) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin, while one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at ABB's business, and see what CAPS investors are saying about the stock right now.
ABB facts
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Headquarters (founded)
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Zurich, Switzerland (1883)
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Market Cap
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$30.92 billion
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Industry
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Heavy Electrical Equipment
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Trailing-12-Month Revenue
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$34.49 billion
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Management
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CEO Joseph Hogan (since September 2008)
CFO Michel Demare (since January 2005)
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Return on Equity (average last three years)
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34.8%
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Dividend Yield
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3.6%
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Competitors
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Siemens (NYSE: SI),
Emerson Electric (NYSE: EMR)
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CAPS members bullish on ABB also bullish on:
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General Electric (NYSE: GE),
Transocean (NYSE: RIG)
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CAPS members bearish on ABB also bearish on:
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First Solar (Nasdaq: FSLR),
General Motors (NYSE: GM)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 97% of the 1,454 members who have rated ABB believe the stock will outperform the S&P 500 going forward. These bulls include kpscott and Ak66.
Late last month, kpscott tapped ABB as a play on the Obama plan to build out infrastructure: "Very low debt ratio, P/E, and Price-to-book. Down 70% from its highs and infrastructure investment part of president-elect's economic recovery plan."
In a pitch from the same day, Ak66 agrees, providing inside insight into ABB's gear:
Great company, superior valuation … Will be needed for infrastructure no matter what happens going forward. Will also be needed to make distribution systems more efficient. I buy and maintain their equipment. They provide good equipment. Are in the same cost range and more honest than their main competitors. Should continue to expand their customer base.
What do you think about ABB, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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