AECOM Technology Up to Strong Buy on Estimate Revision
On Nov 15, Zacks Investment Research upgraded AECOM Technology Corp. (ACM) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
AECOM has been witnessing positive estimate revisions on the back of its strong fourth-quarter results. Although AECOM’s fourth-quarter earnings fell short of the Zacks Consensus Estimate, it was up year over year. Meanwhile, the long-term expected earnings growth rate for this stock is currently pegged at 12.4%
On Nov 11, 2014, the company reported fourth-quarter and full fiscal 2014 results. Revenues for the quarter as well as for fiscal 2014 increased significantly, driven by impressive performance by the company’s international and construction services business. This was, however, partially offset by sluggishness in the design business in the Americas.
Furthermore, AECOM’s recent acquisitions also hold considerable promise in the form of new order wins and high backlog. Particularly, through the acquisition of URS Corp, AECOM has attained a leading position as an engineering and construction company. Following the acquisition, the company intends to leverage URS’ knowledge and expertise in key sectors like construction, oil & gas, power and government services which are expected to be significant growth drivers.
Moreover, over the last seven days, following the earnings release, the Zacks Consensus Estimate scaled up for the first and second quarter of fiscal 2015 as well as for fiscal 2015 and 2016. The Zacks Consensus Estimate for the first quarter of fiscal 2015 surged 45% to 58 cents per share as two of nine estimates were revised higher over the last seven days. For fiscal 2015, more than half of the estimates were revised higher over the same time frame, lifting the Zacks Consensus Estimate by 11.1% to $3.01 per share. The current estimate is within the guidance provided by AECOM.
Other Stocks to Consider
There are other companies who are performing equally well as AECOM like Willdan Group Inc. (WLDN), Noble Group Ltd. (NOBGY) and Carlisle Companies Incorporated (CSL). All three sport a Zacks Rank #1.
Read the Full Research Report on CSL
Read the Full Research Report on WLDN
Read the Full Research Report on NOBGY
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