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Why Aecom Technology (ACM) is a Top Value Stock for the Long-Term
ACMAECOM(ACM) ZACKS·2024-12-13 15:46

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]