Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Orders A Bright Spot, But ABB Has A Lot Of Work To Do

Swiss automation and power technologies conglomerate ABB (NYSE:ABB) managed to avoid another major quarterly sell-off, but I think the reaction to this earnings report owes a lot to lower expectations and stronger orders. Looking through the line-items, ABB still has a lot of work to do in its Power Systems business and underwhelming margin performance across the board is a concern. ABB is a rare stock within the industry space in that it trades below my estimate of fair value, but that undervaluation comes with the intangible cost of significant execution risk and downside revision potential.

More "Less Bad" Than Better

The second quarter was a better one for ABB, but how much can you celebrate when the...

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