Core Insights - AECOM has achieved significant success in the U.K. water sector under the new AMP8 framework, maintaining a 100% success rate in recompeting for contracts, with the expected value of these contracts more than double that of the previous AMP7 period [1][2][3] Group 1: AMP8 Framework Overview - The AMP8 framework, managed by Ofwat, is valued at approximately £104 billion, representing a 77% increase compared to the AMP7 program, and will focus on enhancing the reliability, sustainability, and digitalization of water infrastructure in England and Wales [2] - AECOM aims to double its water practice over the next five years and is committed to partnering with U.K. water utilities to achieve infrastructure goals [3] Group 2: Recent Wins and Contracts - Recent key appointments include professional service frameworks for Thames Water and Southern Water, along with a role in Southern Water's $4.8 billion capital delivery program, showcasing AECOM's strong technical expertise [4][5] - AECOM's position as the leading water design firm is further solidified by its access to sustainable technologies, enabling comprehensive solutions across various markets [6] Group 3: Financial Performance and Growth Prospects - AECOM's shares have increased by 16.8% year-to-date, outperforming the Zacks Engineering - R and D Services industry's growth of 9%, supported by $1.2 trillion IIJA funding in the U.S. and U.K. government investments in infrastructure [8] - The company reported a trailing four-quarter earnings surprise of 21.5% on average, with a total backlog of $23.86 billion, reflecting a 50.8% growth in contracted backlog [14]

Core Insights - AECOM has been selected as the delivery partner for Phase 1 of Austin's first light rail transit system, which will span 10 miles and include 15 stations, enhancing regional connectivity and mobility [7][8] - The project aligns with Austin's Strategic Mobility Plan, aimed at improving local transportation accessibility and connectivity, linking key locations such as downtown Austin and the University of Texas [9] - AECOM's program management expertise is expected to support the growth of Austin's transit network, addressing the city's increasing demand for reliable transportation [2][3] Company Performance - AECOM's shares have increased by 15.8% year-to-date, outperforming the Zacks Engineering - R and D Services industry's growth of 7.2% [4] - The company has a current backlog of $23.86 billion, reflecting a growth from $23.16 billion in the previous year, with a contracted backlog growth of 50.8% [17] - AECOM maintains a win rate of over 50% for large project pursuits, which increases for projects valued over $25 million [17] Market Context - The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) funding is accelerating infrastructure investments in the U.S., particularly in transportation and water markets, which bodes well for AECOM's growth prospects [4] - AECOM's partnership with Disadvantaged Business Enterprise (DBE) firms aims to provide opportunities for socially and economically disadvantaged individuals, enhancing the project's community impact [1]

Company Overview - Aecom Technology (ACM) is part of the Construction group, which consists of 88 companies and is currently ranked 7 in the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with Aecom Technology holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - Year-to-date, Aecom Technology has increased by approximately 15.7%, outperforming the Construction sector's average return of 15.1% [4] - The consensus estimate for ACM's full-year earnings has risen by 3% over the past quarter, indicating improved analyst sentiment [3] Industry Context - Aecom Technology operates within the Engineering - R and D Services industry, which includes 18 companies and is currently ranked 159 in the Zacks Industry Rank [5] - The Engineering - R and D Services industry has seen an average gain of about 8.5% year-to-date, with Aecom Technology performing better than this group [5] Comparison with Peers - Another notable performer in the Construction sector is Construction Partners (ROAD), which has surged by 105.5% year-to-date [4] - Construction Partners is categorized under the Building Products - Miscellaneous industry, which has a ranking of 141 and has increased by 13.5% since the start of the year [6]

Core Viewpoint - AECOM reported strong fourth-quarter fiscal 2024 earnings, exceeding estimates and showing year-over-year growth in both earnings and revenues, alongside an increase in dividend and share repurchase authorization [2][3][4]. Financial Performance - Adjusted earnings per share (EPS) reached $1.27, surpassing the consensus estimate of $1.22 by 4.1% and increasing 25.7% from $1.01 in the prior-year quarter [4]. - Revenues totaled $4.11 billion, reflecting a 7% year-over-year increase, with adjusted net service revenues (NSR) rising 5% to $1.81 billion [5]. Segment Performance - Revenues in the Americas segment were $3.16 billion, up 8% year-over-year, with NSR of $1.06 billion increasing 6% [6]. - International revenues grew 5% year-over-year to $948.4 million, with NSR increasing 4% to $754.1 million [8]. Operating Metrics - Adjusted operating income was $207.7 million, a 9% increase year-over-year, with an adjusted operating margin expanding 70 basis points to 19.6% [7]. - Adjusted EBITDA rose 15% year-over-year to $290 million, with an adjusted EBITDA margin of 16.7%, up 140 basis points [13]. Backlog and Growth Opportunities - Total backlog at the end of fiscal 2024 was $23.86 billion, compared to $23.16 billion a year ago, with a 5% increase in the design business backlog [14]. - The company reported a 10% increase in its pipeline of opportunities, driven by robust funding across major markets [14]. Fiscal 2024 Highlights - For the full year, AECOM reported revenues of $16.1 billion, a 12% increase from the previous year, with NSR reaching an all-time high [15]. - Adjusted EPS increased 22% to $4.52, with adjusted EBITDA margins rising 100 basis points to 16% [16]. Liquidity and Cash Flow - Cash and cash equivalents at fiscal 2024-end totaled $1.58 billion, up from $1.26 billion at fiscal 2023-end, while total debt increased to $2.54 billion [17]. - Adjusted operating cash flow increased 19% year-over-year to $827 million, with adjusted free cash flow rising 20% to $708 million [17]. Fiscal 2025 Guidance - The company anticipates 5-8% organic NSR growth in fiscal 2025, with adjusted EPS expected in the range of $5.00-$5.20, indicating a 13% improvement from fiscal 2024 [18]. - Adjusted EBITDA is projected to be between $1.17 billion and $1.21 billion, reflecting 9% year-over-year growth at the midpoint [18]. Long-Term Outlook - AECOM expects to achieve 5-8% organic NSR growth annually, with double-digit adjusted EPS and free cash flow per share improvement [20]. - The company aims for at least 17% adjusted EBITDA margin by the end of fiscal 2026 and approximately 100% conversion of adjusted net income to free cash flow [21].

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their investment strategies [1][10]. Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3][9]. - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [4]. Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [5]. Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing earnings, sales, and cash flow [6]. Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes to identify optimal buying opportunities [7]. VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [8]. Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [9]. - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10]. Stock to Watch: AECOM Technology - AECOM is a leading provider of professional, technical, and management solutions across various industries [14]. - AECOM holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of B, indicating strong growth potential [15]. - The company is projected to achieve year-over-year earnings growth of 12.8% for the current fiscal year, with recent earnings estimates revised upward [15][16].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the short term [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [5] - **Growth Score**: Evaluates stocks based on future earnings and sales growth potential [6] - **Momentum Score**: Assesses stocks based on price trends and earnings estimate changes [7] - **VGM Score**: Combines all three Style Scores to identify stocks with the best overall potential [8] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [9] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [11] - The direction of earnings estimate revisions is crucial; stocks with lower ranks may still have good Style Scores but are at risk of price declines [12][13] Company Spotlight: AECOM Technology - AECOM is a leading provider of professional, technical, and management solutions across various industries [14] - AECOM holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential [15] - The company has seen upward revisions in earnings estimates, with a consensus estimate of $5.10 per share for fiscal 2025 [15] - AECOM's forward P/E ratio of 21.97 makes it attractive for value investors [15][16]

The construction sector is gearing up for a promising 2025, bolstered by improving conditions in both residential and infrastructure markets. Falling mortgage rates, renewed builder confidence, and the U.S. government’s focus on infrastructure investment set the stage for growth. Wall Street analysts are eyeing several stocks in this space, highlighting their potential to rally in the coming year.Macroeconomic indicators further underscore this optimism. The U.S. economy is expected to grow at a moderate pa ...

FREMONT, Calif., Dec. 11, 2024 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced packaging applications, today issued comments regarding recent updates to U.S. export regulations. On December 2, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) imposed additional controls on exports to, and transfers within, the People’s Republic of China (“PRC”) relating to advanced integrated circuit ...

Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM) and Altair Engineering (ALTR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with stro ...

Share buybacks are important for the stock market because, all else being equal, they increase earnings and equity per share. With earnings per share and equity rising, the stock price has little else to do but follow the leader to new highs. The stocks on the list today buy back shares in significant amounts and have recently upped their authorizations. The tailwind provided by the new capital allocation is robust and likely to drive the respective stock prices higher over the next twelve months and longer ...