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AECOM ACM stock has rallied 24.9% over the past six months, far outperforming its industry peers and broader benchmarks. While the Zacks Engineering - R and D Services industry has inched up only 0.5%, AECOM has outpaced the broader Construction sector’s 8.1% rise and the S&P 500 index’s 9.3% rally.
AECOM's 6-Month Price Performance
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Technical Trends Signal Strength for AECOM Stock
AECOM stock trades below its 50-day moving average but remains above the 200-day average. Importantly, the 50-day Simple Moving Average (SMA) continues to trend higher than the 200-day SMA, signaling sustained bullish sentiment. This positive technical setup aligns with investor confidence in AECOM’s financial health and growth outlook.
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Below, we explore key aspects of AECOM's recent success and discuss whether the stock is a buy, hold, or sell.
Infrastructure Demand and Global Trends
AECOM’s growth is anchored in robust demand for infrastructure development, particularly in the United States. With over 46,000 structurally deficient bridges and aging infrastructure across the nation, federally funded programs like the Infrastructure Investment and Jobs Act (IIJA) provide a stable revenue stream. Notably, 95% of IIJA funding is already secured, offering long-term visibility.
Urbanization and Energy Needs Globally
Worldwide, urbanization trends are reshaping infrastructure priorities. By 2050, nearly 70% of the global population is expected to live in urban areas, driving demand for modernized transportation, water systems, and sustainable infrastructure. AECOM is capitalizing on these trends through marquee projects like the UK’s Great Grid and Australia’s grid expansion. Additionally, the growing push for electrification and energy efficiency further broadens AECOM’s market opportunities.
Strong Project Wins and Margins
AECOM’s ability to secure large, high-value contracts gives it a distinct edge. The company boasts a win rate exceeding 50% for large pursuits, which rises for projects over $25 million. Its technical expertise and leadership in key markets, such as water design, drive these successes.
Adding to its growth story is the expansion of high-margin businesses like advisory and program management services. For instance, AECOM’s Water and Environment Advisory division is projected to grow from $200 million to $1 billion in revenues within three years, enhancing profitability.
Rising Earnings Estimates Highlight Analyst Optimism for ACM
One of the most encouraging signals for AECOM is the upward revision of its fiscal 2025 earnings per share (EPS) estimates. Over the past 60 days, analysts have raised their EPS expectations, reflecting growing optimism about the company’s ability to execute on its pipeline and deliver shareholder value, as shown in the chart below.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.