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ACM Partners With Gorilla & NC Digy for Smart City Development

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AECOM (ACM - Free Report) entered into a strategic partnership with Gorilla Technology Group Inc. (GRRR) and NC Digy Smart Cities to advance smart cities in Latin America and the United States. The collaboration aims to implement advanced technologies to improve urban infrastructure and enhance the quality of life in these regions.

The smart cities market in Latin America is rapidly expanding, while the United States is preparing for a new phase of urban development. The initiative marks a major advancement in smart city infrastructure, targeting one of the largest growth opportunities in the Western Hemisphere. It is expected to drive significant growth over the next 30-50 years.

Paving the Way for Smart Cities in Latin America

Latin America is experiencing rapid urbanization as cities seek to improve efficiency, sustainability and safety. The smart city market in the region is projected to expand significantly on the back of government initiatives, a growing urban population and a demand for sustainable solutions.

Gorilla, in partnership with NC Digy Smart Cities, AECOM and local partner Protactics, aims to leverage this growth by introducing advanced security solutions tailored for Latin American cities. This collaboration will deliver a wide range of services, including enhanced surveillance, AI-driven analytics and secure data management systems. AECOM’s expertise in infrastructure consulting will ensure the smooth deployment of these technologies, aligning them with best practices in urban planning.

Innovating Smart Urban Solutions in the United States

In the United States, smart cities are becoming a key focus in urban development. Cities aim to modernize infrastructure and improve residents' quality of life, leading to a surge in demand for innovative technologies. The partnership will primarily market Gorilla Technology's advanced AI and cybersecurity solutions tailored for smart city applications. These solutions include surveillance, access control and emergency response systems — essential for ensuring safety in urban areas. This collaboration is positioned to significantly impact the transformation of cities across the United States by addressing the security challenges of smart city projects.

ACM’s Stock Performance

The company’s shares have moved up 25% in the past three months compared with the Zacks Engineering - R and D Services industry’s 18.2% growth. Ongoing contract wins are expected to boost prospects further. Global infrastructure spending trends remain strong, providing more opportunities for AECOM’s continued expansion.

Zacks Investment Research
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AECOM has been witnessing robust prospects in each of its segments. It has a good visibility of a strong backlog and pipelines for the upcoming quarters. Owing to the improving global scenario, which is fostering infrastructural demand around the globe, there has been an increase in demand for ACM’s services. This improving trend is reflected in ACM’s backlog levels.

As of the fiscal third-quarter end, the total backlog was $23.36 billion compared with $23.21 billion reported in the prior-year period. The current backlog level includes 54.8% contracted backlog growth. The design business backlog rose 3% to $21.89 billion. The upside was driven by a near-record win rate and continued strong end-market trends.

ACM's Zacks Rank & Key Picks

AECOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Construction sector are:

Frontdoor, Inc. (FTDR - Free Report) presently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.

Shares of the company have gained 58.2% in the past six months. Frontdoor has a trailing four-quarter earnings surprise of 279%, on average.  The Zacks Consensus Estimate for FTDR’s 2024 sales and earnings per share (EPS) indicates a rise of 3% and 21.3%, respectively, from the prior-year levels.

Howmet Aerospace Inc. (HWM - Free Report) presently carries a Zacks Rank #2. HWM has a trailing four-quarter earnings surprise of 10.9%, on average. Shares of the company have appreciated 57.8% in the past six months.

The Zacks Consensus Estimate for HWM’s 2024 sales EPS indicates a rise of 12.6% and 40.8%, respectively, from the prior-year levels.

M-tron Industries, Inc. (MPTI - Free Report) currently carries a Zacks Rank of 2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%. MPTI has surged 60.9% in the past six months.

The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.


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