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AECOM (ACM) Secures NASA Environmental Restoration Contract
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AECOM (ACM - Free Report) clinched a pivotal deal with NASA, earning the nod to provide environmental restoration and compliance services across various U.S. facilities under the NASA Environmental Restoration and Compliance Contract (NERCC).
This five-year agreement will see AECOM spearheading environmental restoration endeavors, encompassing activities such as sampling, contaminant investigations, risk assessments, and remediation efforts. Of particular significance, AECOM will play a central role in NASA's initiatives concerning per- and polyfluoroalkyl substances, utilizing its extensive expertise garnered over two decades and spanning more than 500 sites globally.
Additionally, this infrastructure consulting firm will extend its support to NASA's compliance and sustainability goals, addressing pollution prevention, recycling, and hazardous materials management across its facilities.
The company's arsenal of more than 9,000 environmental professionals, leveraging an extensive Technical Practice Network, stands poised to deliver innovative solutions and state-of-the-art technologies to tackle some of the most daunting remediation projects worldwide. These capabilities will now be harnessed to benefit NASA's environmental programs under the NERCC.
By securing this contract, AECOM not only reaffirms its position as a leader in environmental consulting but also underscores its commitment to fostering sustainable solutions for critical infrastructure projects. As the company embarks on this venture with NASA, it signifies a milestone in its mission to address environmental challenges on a global scale, reinforcing its reputation as a trusted partner in environmental stewardship.
Share Price Performance
AECOM has been reaping rewards from its high-yielding organic growth strategies. In the initial quarter of fiscal 2024, revenues increased 15% year over year, reaching $3.9 billion. Adjusted net service revenues (NSR) also saw a notable uptick, rising 7% to $1.71 billion. Within the design business segment, organic NSR witnessed an 8% increase compared with the previous year, primarily driven by robust performance in the water and transportation sectors, along with a noteworthy 9% growth in the Americas region.
Image Source: Zacks Investment Research
Over the past six months, AECOM's shares have experienced a modest uptick of 22.8%, trailing behind 34.8% growth observed in the Zacks Engineering - R and D Services industry. However, despite this relative underperformance, the company's robust backlog signals strong growth prospects. As of the fiscal first-quarter end, AECOM's total backlog stood at an impressive $39.81 billion, with contracted backlog growth accounting for 56.5%.
During the first fiscal quarter, the design business segment witnessed a remarkable 9% growth in backlog (on a constant-currency basis), fueled by an exceptional win rate and sustained positive trends in end markets. Contracted backlog within the design business also rose 17%, supported by solid funding across key markets.
Looking ahead, AECOM boasts a favorable outlook with clear visibility of a robust backlog and promising pipelines for the forthcoming quarters. The company's strong backlog levels serve as significant indicators of future revenue growth, highlighting substantial opportunities on the horizon.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the sector are as follows:
Advanced Drainage Systems, Inc. (WMS - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). WMS delivered a trailing four-quarter earnings surprise of a whopping 37.1%, on average. The stock has risen 52.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Drainage Systems’ 2024 earnings per share (EPS) has increased to $6.19 from $5.88 over the past 30 days.
Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank of 1. AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. Shares of the company have surged 74.9% in the past six months.
The Zacks Consensus Estimate for Armstrong World Industries’ EPS for 2024 has increased to $5.74 from $5.65 over the past 30 days.
Masco Corporation (MAS - Free Report) currently carries a Zacks Rank #2 (Buy). This leading manufacturer of branded home improvement and building products has a trailing four-quarter earnings surprise of 23.4%, on average.
Shares of MAS have rallied 50.4% in the past six months. Estimates for Masco’s EPS for 2024 have increased to $4.12 from $3.98 over the past 60 days.
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AECOM (ACM) Secures NASA Environmental Restoration Contract
AECOM (ACM - Free Report) clinched a pivotal deal with NASA, earning the nod to provide environmental restoration and compliance services across various U.S. facilities under the NASA Environmental Restoration and Compliance Contract (NERCC).
This five-year agreement will see AECOM spearheading environmental restoration endeavors, encompassing activities such as sampling, contaminant investigations, risk assessments, and remediation efforts. Of particular significance, AECOM will play a central role in NASA's initiatives concerning per- and polyfluoroalkyl substances, utilizing its extensive expertise garnered over two decades and spanning more than 500 sites globally.
Additionally, this infrastructure consulting firm will extend its support to NASA's compliance and sustainability goals, addressing pollution prevention, recycling, and hazardous materials management across its facilities.
The company's arsenal of more than 9,000 environmental professionals, leveraging an extensive Technical Practice Network, stands poised to deliver innovative solutions and state-of-the-art technologies to tackle some of the most daunting remediation projects worldwide. These capabilities will now be harnessed to benefit NASA's environmental programs under the NERCC.
By securing this contract, AECOM not only reaffirms its position as a leader in environmental consulting but also underscores its commitment to fostering sustainable solutions for critical infrastructure projects. As the company embarks on this venture with NASA, it signifies a milestone in its mission to address environmental challenges on a global scale, reinforcing its reputation as a trusted partner in environmental stewardship.
Share Price Performance
AECOM has been reaping rewards from its high-yielding organic growth strategies. In the initial quarter of fiscal 2024, revenues increased 15% year over year, reaching $3.9 billion. Adjusted net service revenues (NSR) also saw a notable uptick, rising 7% to $1.71 billion. Within the design business segment, organic NSR witnessed an 8% increase compared with the previous year, primarily driven by robust performance in the water and transportation sectors, along with a noteworthy 9% growth in the Americas region.
Image Source: Zacks Investment Research
Over the past six months, AECOM's shares have experienced a modest uptick of 22.8%, trailing behind 34.8% growth observed in the Zacks Engineering - R and D Services industry. However, despite this relative underperformance, the company's robust backlog signals strong growth prospects. As of the fiscal first-quarter end, AECOM's total backlog stood at an impressive $39.81 billion, with contracted backlog growth accounting for 56.5%.
During the first fiscal quarter, the design business segment witnessed a remarkable 9% growth in backlog (on a constant-currency basis), fueled by an exceptional win rate and sustained positive trends in end markets. Contracted backlog within the design business also rose 17%, supported by solid funding across key markets.
Looking ahead, AECOM boasts a favorable outlook with clear visibility of a robust backlog and promising pipelines for the forthcoming quarters. The company's strong backlog levels serve as significant indicators of future revenue growth, highlighting substantial opportunities on the horizon.
Zacks Rank & Key Picks
AECOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the sector are as follows:
Advanced Drainage Systems, Inc. (WMS - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). WMS delivered a trailing four-quarter earnings surprise of a whopping 37.1%, on average. The stock has risen 52.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Drainage Systems’ 2024 earnings per share (EPS) has increased to $6.19 from $5.88 over the past 30 days.
Armstrong World Industries, Inc. (AWI - Free Report) currently carries a Zacks Rank of 1. AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. Shares of the company have surged 74.9% in the past six months.
The Zacks Consensus Estimate for Armstrong World Industries’ EPS for 2024 has increased to $5.74 from $5.65 over the past 30 days.
Masco Corporation (MAS - Free Report) currently carries a Zacks Rank #2 (Buy). This leading manufacturer of branded home improvement and building products has a trailing four-quarter earnings surprise of 23.4%, on average.
Shares of MAS have rallied 50.4% in the past six months. Estimates for Masco’s EPS for 2024 have increased to $4.12 from $3.98 over the past 60 days.