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AECOM (ACM) to Act as a Lead Engineering Firm for TxDOT

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AECOM (ACM - Free Report) has been selected by the Texas Department of Transportation (TxDOT) to act as a Lead Engineering Firm for the team chosen to support the Southeast Connector project.

Per the deal, AECOM will work with Kiewit Engineering Group, Inc. to serve South-Point Constructors, a fully-integrated joint venture between Kiewit Infrastructure South Co. and Austin Bridge & Road, LP.

This approximately $1.6 billion base-bid project, which aims to improve mobility, safety, and transportation in the Fort Worth area, entails designing, constructing and maintaining more than 16 miles of non-tolled freeways, frontages and local access in the area. Post completion, the project is expected to improve overall mobility, operational efficiency, accessibility, safety, and emergency response within the area.

Jennifer Aument, chief executive of AECOM’s global transportation business, stated, "We look forward to supporting the team with our extensive local expertise and global reach in producing high-quality solutions for transportation clients, employing a cohesive and comprehensive approach to the Southeast Connector project that prioritizes equity, safety, and quality."

Solid Project Execution Aids AECOM

AECOM is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, energy and water businesses. The major part of the U.S. government’s broad infrastructural plan is focused on transit and water markets, wherein AECOM enjoys a dominant position.

Currently, this leading professional, technical and management solution provider is witnessing a robust pipeline of pursuits across the business. It has been benefiting from solid infrastructure spending in the U.K., Canada, Hong Kong and Australia.

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Among major industry bellwethers, AECOM appears to be highly attractive to investors. Shares of the company have climbed 18.9% in the past six months, faring better than the industry’s 4.8% growth.

AECOM has been banking on strength across core transportation, water, and environment markets and a solid backlog. Furthermore, its focus on Environmental, Social and Governance or ESG-related services and digital initiatives is encouraging.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in seven of the trailing eight quarters. The trend is expected to continue in the near term, courtesy of its solid prospects. Earnings estimates for fiscal 2022 have moved up 1.5% over the past 60 days to $3.40 per share, indicating 20.6% year-over-year growth.

Also, the company currently has a VGM Score of B, supported by a Growth Score of A and a Value Score of B. These positive trends signify analysts’ bullish sentiments and justify ACM’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Top-Ranked Stocks From the Broader Construction Sector

Fluor Corporation (FLR - Free Report) : Fluor — a Zacks Rank #2 company — is gaining from the "Building a Better Future" initiative, which is focused on enhancing markets outside the traditional oil and gas sector, fair and balanced commercial deals, financial discipline, and high-performing business culture. It made significant progress toward strategic goals that comprise the reduction of outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.

FLR’s earnings estimates have increased to $1.34 per share from $1.12 over the past 60 days. The projected figure indicates 42.6% year-over-year growth.

Lennar Corporation (LEN - Free Report) — a Zacks Rank #2 company — is a well-known homebuilder. The company is benefiting from effective cost control and focus on making its homebuilding platform more efficient, leading to higher operating leverage.

The consensus mark for LEN’s earnings for fiscal 2022 has increased to $16.43 from $15.82 per share over the past 30 days. Lennar’s earnings for fiscal 2022 are expected to rise 15.1% year over year.

D.R. Horton, Inc. (DHI - Free Report) — a Zacks Rank #2 company — is a Texas-based prime homebuilder. The company continues to gain from industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots and homes along with affordable product offerings across multiple brands.

The consensus mark for DHI’s earnings for fiscal 2022 has increased to $15.88 from $15.80 per share over the past 30 days. The projected figure indicates a 39.2% year-over-year rise.


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