AECOM (ACM) Buy or Sell Stock Guide

Last updated: Dec 24, '18

The analysis below may be helpful to you if you have any of the following questions about ACM stock:

  • Is ACM a buy or a sell?
  • Should I sell or hold ACM stock today?
  • Is ACM a good buy / a good investment?
  • What are ACM analyst opinions, recommendations, ratings?

Here are ACM stock buy reasons/signals:

1. AECOM is well positioned to benefit from rising infrastructure demand, with broad capabilities in design, engineering, project management, and direct construction to serve federal, state, and local level infrastructure.

2. AECOM's purchase of Hunt Construction in 2015 positioned it as one of the few E&C's with design-build capabilities for major sports venues and event destinations.

3. Through its AECOM Capital unit, the company is one of the relatively few E&Cs to embrace infrastructure-based public-private partnerships, a segment with high growth and economic moat potential.

4. ACM stock price ($25.38) is at the 52-week low. Perhaps now is a good time to buy?

5. ACM quarterly revenue growth was 9.30%, higher than the industry and sector average revenue growth (5.75% and 5.41%, respectively).

6. ACM forward P/E ratio is 8.92, and it’s low compared to its industry peers’ P/E ratios.

7. ACM Price/Sales ratio is 0.22, and it’s low compared to its industry peers’ P/S ratios.

8. ACM average analyst rating is Buy.

9. ACM average analyst price target ($35.83) is above its current price ($25.38).

Here are ACM stock sell reasons/signals:

1. Almost two thirds of AECOM's business is from government entities, both in the U.S. and abroad. Delays in expected federal incentives for infrastructure spending could lead to shortfalls in demand and disappoint investors.

2. After nearly three years and more than $600 million in integration and restructuring costs, it is hard to pinpoint the major cost savings from the URS acquisition in reported results.

3. AECOM's Oil and Gas business is heavily tied to unconventional energy sources in the U.S. and Canada and has significantly declined the past few years along with global oil prices.

4. ACM profitability is declining. The YoY profit margin change was -1.19pp.

5. ACM short share of float is 5.65%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

6. ACM short interest (days to cover the shorts) ratio is 5.39. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ACM?

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