How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Aecom Technology (
ACM Quick Quote ACM - Free Report) ten years ago? It may not have been easy to hold on to ACM for all that time, but if you did, how much would your investment be worth today? Aecom Technology's Business In-Depth
With that in mind, let's take a look at Aecom Technology's main business drivers.
AECOM is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government as well as those in environmental, energy and water businesses.
AECOM specializes in providing integrated services for planning, construction and maintenance of infrastructures that includes consulting, architecture, engineering as well as managing the requirements for energy, water and environment to various private and public clients. The company primarily focuses on providing fee-based services and is driven by knowledge-based services. AECOM reports through three operating segments — Americas (which accounted for 75.6% of fiscal 2022 revenues), International (24.3%) and AECOM Capital or ACAP (0.1%). Americas include planning, consulting, architectural and engineering design, and construction and program management services to commercial and government clients in major end markets of the United States, Canada, and Latin America. International unit involves planning, consulting, architectural and engineering design services, and program management to commercial and government clients in major markets of Europe, the Middle East, Africa, India and the Asia-Pacific regions. ACAP includes investments primarily in real estate projects. As of the fiscal second quarter end, the total backlog came in at $41.98 billion compared with $40.8 billion reported in the prior-year period. The current backlog level includes 54.5% contracted backlog growth. A record-high 12% growth in the design business backlog (on a constant currency basis) reflects solid quarterly wins and 1.5x book-to-burn. Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Aecom Technology ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $2,678.06, or a 167.81% gain, as of June 9, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 161.29% and the price of gold went up 36.95% over the same time frame.
Going forward, analysts are expecting more upside for ACM.
Shares of AECOM outperformed its industry in the past year. The company’s growth is driven by robust contributions from the Americas and International segments. Its solid backlog level of $41.98 billion indicates significant opportunities in the forthcoming quarters. Management remains focused on leveraging the company's scale and technical leadership. It plans to do so by simplifying the operating model to drive greater collaboration across the business and push digital innovation. Earnings estimates for fiscal 2023 have increased by 2 cents in the past 30 days, depicting analysts’ optimism. However, persisting macroeconomic risks and the cyclical nature of its business are potential headwinds. Also, dependency on long-term government projects is an added concern.
The stock is up 6.60% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.