Is aabb a buy
12/23/2024 11:42am
**ABB's stock presents a mixed outlook, and the decision to buy should be based on a comprehensive analysis of its financial health, market position, and growth prospects.** Here's a detailed assessment:
1. **Financial Performance and Growth**:
- ABB's revenue has shown a modest year-over-year growth of 3.83% as of 2024 Q3, reaching $14.46 billion. However, net income has declined by 12.18% to $1.56 billion during the same period. The diluted EPS has also decreased by 12% to $0.88.
- Over the past three years, ABB's revenue has decreased by 1.69%, net income by 35.04%, and diluted EPS by 35.06%.
2. **Dividend and Dividend Yield**:
- ABB offers a dividend yield of 3.53% as of December 20, 2024, which is attractive for income-seeking investors.
- The company has a history of consistent dividend payments, with a dividend growth duration of 10 years and a continuous dividend duration of 11 years.
3. **Technical Indicators**:
- The stock's technical indicators show a MACD of 0.52, an RSI of 55.2, and a KDJ of 67.27, suggesting that the stock is neither overbought nor oversold.
- The stock is trading above its 5-Day, 10-Day, and 20-Day moving averages, which could indicate a short-term upward trend.
|Ticker|Name|Date|Moving Average|code|market_code|
|---|---|---|---|---|---|
|ABBV.N|Abbvie|20241220|173.4260|ABBV|169|
4. **Market Sentiment and Analyst Ratings**:
- Analysts have set an average price target of $201.29, which is significantly higher than the current price, indicating potential upside.
- However, UBS expects a weaker 4th quarter and has lowered its outlook, which could impact investor sentiment.
5. **Recent Institutional Activity**:
- There has been a net fund flow of $11.36 million, with block orders showing a net fund flow of $739,229, indicating confidence from institutional investors.
In conclusion, while ABB's stock shows some positive signs, such as a high dividend yield and potential upside based on analyst targets, the decline in net income and EPS growth over the past three years is a concern. Investors should weigh these factors against their investment strategy and risk tolerance before making a decision.