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

ABB Underrated, But Has Work To Do

For a doom-and-gloom quarter, ABB (NYSE:ABB) did a pretty decent job. A lot of analysts and investors are down on ABB due to its outsized exposure to emerging markets and industries like oil/gas, power, and mining, but ABB did about as well as the most-loved industrials this quarter.

ABB's work is far from done, as the declines in the order book and relative margins would suggest. The company is doing better with its power businesses, though, and taking a serious swing at structural operating costs. While a willingness to do M&A is a mixed blessing, the company's increasing chatter about increasing its service and software contributions is welcome. All told, I still think these shares are worth around...

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