We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Infrastructural Push Sustain Growth for Arcosa (ACA)?
Read MoreHide Full Article
Arcosa, Inc. (ACA - Free Report) has been benefiting from solid contributions from its Construction Products and Transportation Products segments. A boost in infrastructural and public construction spending, along with a renewable energy drive, should improve Arcosa’s growth.
Shares of this infrastructure-related products and solutions provider have gained 28% year to date (YTD), outperforming the Zacks Building Products - Miscellaneous industry’s 24.5% rise. Its earnings topped the Zacks Consensus Estimate in all the trailing four quarters, the average being 47.5%.
Earnings estimate for 2023 has moved up to $2.91 per share from $2.82 in the past 60 days. Despite the prevailing macroeconomic uncertainties and potential supply-related risks, the stock exhibits a favorable trajectory, underscoring its strong underlying fundamentals and heightening expectations for continued outperformance in the short run.
Image Source: Zacks Investment Research
Arcosa — a Zacks Rank #2 (Buy) stock — has a favorable VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities to investors.
Let’s delve deeper and find out the factors aiding the stock.
Solid Prospects: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act together represent a significant dedication to enhancing American competitiveness. These legislative acts encompass fresh investments across nearly every infrastructure sector, spanning transportation, energy, broadband, and water. The U.S. government's initiative to allocate funds for the revitalization of the nation's roads, bridges, and other infrastructure projects stands to provide Arcosa with a robust platform for future growth. Furthermore, the company has proficiently harnessed megatrends to spearhead the shift toward sustainable energy solutions and enable technological progress.
Upbeat View: Looking forward, management expects demand in the near term to remain robust. The company now expects total revenues between $2.25 billion and $2.30 billion for 2023, revised from $2.20 billion-$2.30 billion previously. The company’s revenues were $2.05 billion in 2022, excluding $189 million from the storage tanks business. Adjusted EBITDA is now expected to be between $355 and 370 million, up from earlier expectations of $345-370 million. In 2022, adjusted EBITDA was $278 million.
The Zacks Consensus Estimate for earnings per share (EPS) of $2.91 and $3.37 for 2023 and 2024 indicates 32.9% and 15.8% year-over-year growth, respectively.
Solid Backlog Level: At the end of second-quarter 2023, the combined backlog for utility, wind, and related structures was $1,507.4 million, an increase from $410.1 million at the end of the second quarter of 2022. Meanwhile, Barge backlog at the end of the quarter was $287.1 million, an increase from $131.8 million at the end of the second quarter of 2022. The company expects to deliver approximately 45% of its current backlog in 2023.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
Installed Building Products, Inc. (IBP - Free Report) currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 5.5%, on average. Shares of IBP have risen 37.9% YTD.
The Zacks Consensus Estimate for IBP’s 2023 sales and EPS suggests growth of 4.7% and 8.6%, respectively, from the year-ago period’s levels.
Fluor Corporation (FLR - Free Report) currently sports a Zacks Rank of 1. FLR delivered a trailing four-quarter negative earnings surprise of 5.3%, on average. Shares of the company have gained 5.5% YTD.
The Zacks Consensus Estimate for FLR’s 2023 sales and EPS indicates growth of 12.6% and 159.8%, respectively, from the previous year’s reported levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Infrastructural Push Sustain Growth for Arcosa (ACA)?
Arcosa, Inc. (ACA - Free Report) has been benefiting from solid contributions from its Construction Products and Transportation Products segments. A boost in infrastructural and public construction spending, along with a renewable energy drive, should improve Arcosa’s growth.
Shares of this infrastructure-related products and solutions provider have gained 28% year to date (YTD), outperforming the Zacks Building Products - Miscellaneous industry’s 24.5% rise. Its earnings topped the Zacks Consensus Estimate in all the trailing four quarters, the average being 47.5%.
Earnings estimate for 2023 has moved up to $2.91 per share from $2.82 in the past 60 days. Despite the prevailing macroeconomic uncertainties and potential supply-related risks, the stock exhibits a favorable trajectory, underscoring its strong underlying fundamentals and heightening expectations for continued outperformance in the short run.
Image Source: Zacks Investment Research
Arcosa — a Zacks Rank #2 (Buy) stock — has a favorable VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities to investors.
Let’s delve deeper and find out the factors aiding the stock.
Solid Prospects: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act together represent a significant dedication to enhancing American competitiveness. These legislative acts encompass fresh investments across nearly every infrastructure sector, spanning transportation, energy, broadband, and water. The U.S. government's initiative to allocate funds for the revitalization of the nation's roads, bridges, and other infrastructure projects stands to provide Arcosa with a robust platform for future growth. Furthermore, the company has proficiently harnessed megatrends to spearhead the shift toward sustainable energy solutions and enable technological progress.
Upbeat View: Looking forward, management expects demand in the near term to remain robust. The company now expects total revenues between $2.25 billion and $2.30 billion for 2023, revised from $2.20 billion-$2.30 billion previously. The company’s revenues were $2.05 billion in 2022, excluding $189 million from the storage tanks business. Adjusted EBITDA is now expected to be between $355 and 370 million, up from earlier expectations of $345-370 million. In 2022, adjusted EBITDA was $278 million.
The Zacks Consensus Estimate for earnings per share (EPS) of $2.91 and $3.37 for 2023 and 2024 indicates 32.9% and 15.8% year-over-year growth, respectively.
Solid Backlog Level: At the end of second-quarter 2023, the combined backlog for utility, wind, and related structures was $1,507.4 million, an increase from $410.1 million at the end of the second quarter of 2022. Meanwhile, Barge backlog at the end of the quarter was $287.1 million, an increase from $131.8 million at the end of the second quarter of 2022. The company expects to deliver approximately 45% of its current backlog in 2023.
Other Key Picks
EMCOR Group, Inc. (EME - Free Report) presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 36.7% YTD. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
Installed Building Products, Inc. (IBP - Free Report) currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 5.5%, on average. Shares of IBP have risen 37.9% YTD.
The Zacks Consensus Estimate for IBP’s 2023 sales and EPS suggests growth of 4.7% and 8.6%, respectively, from the year-ago period’s levels.
Fluor Corporation (FLR - Free Report) currently sports a Zacks Rank of 1. FLR delivered a trailing four-quarter negative earnings surprise of 5.3%, on average. Shares of the company have gained 5.5% YTD.
The Zacks Consensus Estimate for FLR’s 2023 sales and EPS indicates growth of 12.6% and 159.8%, respectively, from the previous year’s reported levels.