10 Most Undervalued Industrial Stocks to Buy According to Analysts

7. ABM Industries Inc. (NYSE:ABM)

Forward PE: 11.5

Potential Upside: 23%

Number of Hedge Fund Holders: 20

ABM Industries Inc. (NYSE:ABM) is one of the 10 most undervalued industrial stocks to buy according to analysts. On June 9, a UBS analyst upgraded ABM Industries to Buy from Neutral and raised its price target to $54 from $50.

His decision came despite the stock dropping 9% after Q2 results and unchanged full-year guidance. The analyst called the challenges temporary and believes that the decline was likely an overreaction.

The analyst highlighted that ABM’s largest segment has returned to positive growth, which marked a meaningful shift in the overall outlook. He also points to the improvement in fundamentals and signs of stabilization and recovery which the business has been exhibiting. As the stock is now trading at a lower level, he believes that the current weakness presents a buying opportunity.

ABM Industries Inc. (NYSE:ABM) provides facility, engineering, and infrastructure solutions, including air conditioning, janitorial, lighting, parking, security, and other outsourced facility services to commercial, industrial, and institutional customers.