Aecom Technology (ACM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syste ...

Key Takeaways Tetra Tech's fiscal Q1 2026 net revenues rose 8% on U.S. Federal and global strength.TTEK's GSG and CIG segment revenues grew 5% and 10%, aided by water and automation work.TTEK raised its dividend 12% and repurchased $50M in shares in fiscal Q1 2026.Tetra Tech, Inc. (TTEK) is well-positioned to benefit from strength across its segments and accretive acquisitions. The company’s shareholder-friendly moves also augur well.Shares of TTEK have gained 5.9% in the year-to-date period. The company be ...

Aecom Technology (ACM) closed the last trading session at $99.56, gaining 2.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $129.08 indicates a 29.7% upside potential.The mean estimate comprises 12 short-term price targets with a standard deviation of $12.09. While the lowest estimate of $110.00 indicates a 10.5% increase from the current price level, the most optimistic analyst ...

Core Insights - AECOM has been selected by Sound Transit for multiple-award task order contracts to provide design, planning, environmental services, and project management for the Seattle region's transportation network [1] Group 1: Contract Details - The contracts will facilitate the planning, design, and delivery of light rail, commuter rail, and bus network projects in the Seattle area [1] - AECOM will serve as the prime firm responsible for these services under the awarded contracts [1]

Industry Overview - AI-powered data centers are experiencing significant growth, driven by a bullish demand scenario for managing and storing cloud computing data [1] - Global data center capital expenditure (capex) is projected to reach $1.7 trillion by 2030, with McKinsey estimating a requirement of $5.2 trillion to $6.7 trillion in capex to support AI data center development [2] Company Analysis MasTec Inc. (MTZ) - MasTec is positioned as a leading provider of infrastructure services, benefiting from the AI data center boom and the expansion of the energy industry [6][7] - The company operates in four segments: Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy, all of which are growing alongside infrastructure spending trends [8][10] - Expected revenue and earnings growth rates for MasTec are 9.2% and 29.9%, respectively, for the current year [10] EMCOR Group Inc. (EME) - EMCOR is a key player in providing critical infrastructure for AI-powered data centers, focusing on electrical, mechanical, and cooling systems [11] - The company is gaining traction in the data center construction market, which is enhancing its remaining performance obligations (RPOs) and future revenue visibility [12][13] - Expected revenue and earnings growth rates for EMCOR are 5.4% and 8.6%, respectively, for the current year [14] AECOM (ACM) - AECOM benefits from strong demand across various markets, supported by government-funded infrastructure programs and opportunities in the Middle East [15] - The company is investing in AI and technology-enabled engineering solutions, leading to significant project wins in water infrastructure and transportation [16][17] - Expected revenue and earnings growth rates for AECOM are 4.8% and 13.5%, respectively, for the current year [18] Jacobs Solutions Inc. (J) - Jacobs Solutions has a record backlog of $26.3 billion and is benefiting from rising demand for digital and advisory services [19] - The company’s performance is supported by long-term public funding and private-sector investments, allowing it to capitalize on multi-cycle growth themes [20][21] - Expected revenue and earnings growth rates for Jacobs are 9.4% and 16.5%, respectively, for the current year [21] Sterling Infrastructure Inc. (STRL) - Sterling Infrastructure specializes in constructing complex data centers and is a major provider of high-density, AI-powered data centers [22][23] - The company operates in E-Infrastructure, Building, and Transportation Solutions, focusing on advanced site development for data centers and e-commerce distribution [22][24] - Expected revenue and earnings growth rates for Sterling are 18.8% and 17.2%, respectively, for the current year [25]

Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

Core Insights - Willdan Group, Inc. (WLDN) is set to report its fourth-quarter fiscal 2025 results on February 26, 2026, after market close [1] Financial Performance - In the last reported quarter, Willdan achieved record performance with contract revenue increasing by 15% year over year to $182 million and net revenue rising by 26% year over year to $95 million, exceeding the Zacks Consensus Estimate by 11.5% [2] - Gross profit grew by 30% year over year to $67.1 million, while adjusted EBITDA surged by 53% year over year to $23.1 million, achieving a margin of 24% of net revenue [2] - Adjusted EPS increased by 65.8% year over year to $1.21, surpassing the consensus estimate by 49.4% [2][3] Earnings Estimates - The Zacks Consensus Estimate for the fourth-quarter EPS remains unchanged at 79 cents, indicating a 5.3% growth from the year-ago reported EPS of 75 cents [4] - The consensus revenue estimate for the fourth quarter is $87.5 million, suggesting a 39.3% year-over-year decline [4] - For 2026, revenues are expected to increase by 4.8% year over year, with EPS projected to grow by 9.6% [5] Market Position and Performance - WLDN has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 58.1% [3] - The stock has rallied 19.4% over the past three months, outperforming key peers and the broader Zacks Business - Services industry [19][20] Key Growth Drivers - The strength of Willdan's Energy segment, which constitutes approximately 85% of total revenue, is expected to support Q4 results despite anticipated revenue decline [9] - Recent contract wins in energy and infrastructure, along with the APG acquisition, are anticipated to contribute positively to revenues [10] - Utility programs and government work continue to provide recurring revenue visibility, supporting steady demand [11] Profitability Outlook - Management has guided for full-year 2025 adjusted EBITDA of $77-$78 million and net revenues of $360-$365 million, indicating continued margin discipline [13] - Operating leverage from revenue growth and effective cost control are expected to drive margin expansion [14] - However, integration costs from acquisitions and ongoing investments may temper margin expansion [15] Valuation and Investment Stance - WLDN stock is currently trading at a premium valuation compared to its industry [23] - The near-term outlook appears balanced, with recent share price increases suggesting that much of the optimism is already priced in, leading to a Hold stance for now [24]

Core Insights - AECOM is recognized as one of the 10 Best Consensus Buy-Rated Stocks to Invest in, with analysts increasing price targets following strong fiscal Q1 performance [1][2]. Financial Performance - AECOM reported Q1 revenue of $3.83 billion, exceeding the consensus estimate of $3.53 billion, and demonstrated growth in net service revenue of 2% on a constant currency basis and 5% when adjusted for fewer working days [3]. - The company’s backlog increased by 9%, supported by a 1.5 book-to-burn ratio and several large project wins, indicating strong future revenue potential [3]. Analyst Ratings and Price Targets - Truist analyst Jamie Cook raised the price target on AECOM to $132 from $126 while maintaining a Buy rating, citing fiscal Q1 EPS that surpassed management expectations [1]. - BofA analyst Michael Feniger also raised his price target to $118 from $117, maintaining a Buy rating, and noted AECOM's positioning to benefit from infrastructure tailwinds and margin expansion [2]. Strategic Initiatives - Management highlighted ongoing investments in Advisory, Program Management, and technology initiatives, including AI, aimed at expanding the addressable market and reinforcing long-term growth targets [3].

Core Insights - Sterling Infrastructure, Inc. (STRL) is set to report its fourth-quarter 2025 results on February 25, 2026, after market close [1] Financial Performance - In the last reported quarter, Sterling achieved adjusted earnings per share (EPS) of $3.48, exceeding the Zacks Consensus Estimate by 24.7% and marking a 58% increase year over year [2] - Revenues reached $689 million, surpassing estimates by 12.5% and reflecting a 32% year-over-year growth [2] - Gross margin expanded by 280 basis points to 24.7%, driven by a shift towards higher-margin projects [3] - Adjusted EBITDA increased by 47% compared to the same quarter last year, with healthy operating cash flow [3] Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter EPS has risen to $2.66, indicating an 82.2% growth from the previous year [5] - Revenue estimates for the fourth quarter stand at $647.8 million, suggesting a 29.9% year-over-year increase [5] - For the full year 2025, revenues are expected to grow by 12.6%, while the bottom line is projected to increase by 71.3% [6] Segment Performance - The E-Infrastructure Solutions segment, which accounted for 60% of third-quarter revenues, is anticipated to be the primary growth driver, benefiting from strong demand for data center projects [13] - The Transportation Solutions segment, contributing 25% to total revenues, is expected to see a decline due to the planned wind-down of low-bid heavy highway operations in Texas, with revenues projected at $170 million, down 31.4% year over year [15][16] - The Building Solutions segment, making up 15% of total revenues, is expected to face mixed conditions, with residential activity under pressure but stable construction in key markets providing some support [17][18] Market Position and Valuation - Sterling's stock has increased by 49.4% over the past six months, outperforming the Zacks Engineering – R&D Services industry and the broader Construction sector [20] - The stock is currently trading at a forward P/E ratio of 32.8, which is a 25% premium to the industry average of 26.24 [22] - Compared to peers like AECOM, Fluor, and KBR, STRL appears overvalued, as these companies have lower forward P/E ratios [25] Outlook - The company is expected to report a resilient quarter, supported by strong demand in mission-critical infrastructure markets and disciplined project selection [26] - A solid backlog and healthy project pipeline are anticipated to provide revenue visibility [27] - However, challenges in the Transportation Solutions segment and residential softness in Building Solutions may limit upside potential [28]

Core Viewpoint - ACM Research (ACMR) has experienced significant stock price appreciation, doubling in value within a few months, yet it still appears undervalued based on its growth potential [1]. Group 1: Company Analysis - ACMR was trading in the low $30s in November while demonstrating strong growth metrics [1]. - The analysis focuses on identifying mispriced opportunities in the small and mid-cap sectors, emphasizing the importance of cash flow durability, balance sheet strength, and capital structure risks [1]. Group 2: Market Dynamics - The current market sentiment towards ACMR is lagging behind its actual performance, indicating potential for substantial price discovery with modest changes in expectations [1].