ABB Ltd (ADR) (ABB): Some Renewable Energy Businesses

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Summing it up

On a stand-alone basis, Power One Inc (NASDAQ:PWER)would probably be up against challenges, including price erosion, due to mix and reduced factory absorption. Similarly, Power-One’s capacity utilization has decreased, putting pressure on margins. The solar industry, nevertheless, should remain vital over time, as the return on investment improves.

Finally, Power One Inc (NASDAQ:PWER)’s likely acquirer, ABB Ltd (ADR) (NYSE:ABB), is on track for a nice profit improvement this year, regardless of Power-One’s impact. It boasts a large order backlog; plus, and an improved product mix. The Thomas & Betts synergies and initiatives, aimed at lifting operating margins, ought to help lift its market share. The Swiss company’s shares derive a five-star CAPS Community ranking and offer better-than average price appreciation potential, in addition to a decent dividend yield of 3.3%.


Damon Churchwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Some Renewable Energy Businesses originally appeared on Fool.com.

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