Is ABB Finally in Turnaround Mode?

Value investors will be looking at ABB (NYSE: ABB) for a number of reasons, not least of which is its eye-catching forward dividend yield of 4.3%. Throw in the argument that the company's significant restructuring initiatives could lead to substantive performance improvement relative to its peers, and the case gets even stronger.

ABB is definitely a turnaround story, but is it buy? And what do you need to know before buying the stock? Let's take a look in the light of the recent results.

Going back to 2016, activist hedge fund Cevian Capital pushed ABB to separate its poorly performing power-grids division, leaving it to focus on automation, robotics, and motion. Management's response in early 2017? Keep power grids but invest in internal development and acquisitions in order to digitalize products. Clearly, ABB's management believed software and digitalization were the way to go.

Source Fool.com