Our latest recommendation is a low-profile small-cap stock with steady performance and plenty of upside potential, asserts Nicholas Vardy, editor of the Bull Market Alert.

Founded in 1909 and headquartered in New York, ABM Industries (ABM) is in a distinctly unsexy business.

The company provides carpet and floor cleaning and window washing for airports, commercial office buildings, health facilities, stadiums and arenas.

It boasts revenues of approximately $4.9 billion and has over 100,000 employees in 300 offices throughout the world.

The stock has already had a solid run in 2016, and here’s why I expect that to continue in the months ahead.

First, ABM metrics have been popping up on a lot of value investors’ investment screens.  The company’s price/sales ratio is only 0.39 compared to the industry average of 1.25.

It is a similar story with the price/cash flow metric. Here, ABM comes in at 11.86 vs. an industry average of 25.80.

Second, ABM has a history of under-promising and over-delivering on its earnings.

Two quarters ago, ABM was expected to earn 26 cents per share. It beat these estimates handily with earnings of 38 cents per share -- a beat of 46.2%.

Last quarter, ABM was expected to earn 28 cents per share. Actual earnings of 31 cents per share represented a 10.7% positive surprise.

Also, recent estimates have been moving higher, suggesting that analysts have recently become more bullish on the company’s earnings prospects. ABM is expected to announce next quarter’s earnings on Sept. 7.

Finally, ABM has emerged in no fewer than 10 value and low-volatility small-cap investment strategies that I track.

This again shows that the stock is on the radar screens of a lot of small-cap investors as a leading choice. No matter how you slice and dice it, ABM is a severely undervalued stock.

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By Nicholas Vardy, Editor of the Bull Market Alert