Yahoo Finance AECOM (ACM) Wins Seats on TfL Engineering Consultancy Framework
AECOM ACM has secured seats on more than 30 Lots of the Transport for London (TfL) Engineering Consultancy Framework. This also includes positions on the strategic Multidisciplinary Engineering Services and Multidisciplinary Rail Engineering Services Lots.
AECOM’s shares edged up marginally by 0.49% during the regular trading session on Nov 24, 2021.
This four-year framework will enable AECOM to provide a wide range of projects and programs across all TfL infrastructure. This comprises major station upgrades, surface works, oversite developments and line extensions. It is to be noted that this latest framework replaces the TfL Rail Engineering and Multidisciplinary Services frameworks.
Works under this framework Lots involve multidisciplinary engineering services, specialist engineering services, engineering architectural services, highways engineering and rail engineering.
Prospects Beyond the Border
Prospects of AECOM look promising beyond the borders. Owing to an improvement in the global economic scenario, the company is expecting better infrastructural prospects in the international market. AECOM has been benefiting from solid infrastructure spending in the United Kingdom, Canada, Hong Kong and Australia. Overall, the international segment’s backlog grew 10.2% year over year to $5.21 billion for fiscal 2021, reflecting market share gains and visibility into growth. Management remains confident of attaining its goal of achieving double-digit International margins by 2024.
For instance, leading infrastructure and support services firm AECOM has been providing support to TfL since its inception across all transport modes. The company has been assisting in the delivery of transformative programs such as Crossrail, Cycle Superhighways and Healthy Streets. Other current projects with TfL include DLR Thamesmead and Bakerloo Line Extension.
Furthermore, AECOM’s performance across the Asia Pacific region continues to be led by strong public-sector infrastructure investment in Australia and New Zealand. The company’s transportation business in Australia is witnessing a steady rebound, thus supplementing growth. Overall, it can be said the global consensus toward the need for substantial infrastructure investments will boost the company’s growth drive. In Saudi Arabia, AECOM has invested resources to take advantage of a robust set of opportunities that include the $500-billion NEOM development.
Share Price Performance
The stock has rallied 50.9% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 36.1% growth.
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Zacks Rank
AECOM currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Construction Stocks to Bet On
Some better-ranked stocks in the broader construction sector include James Hardie Industries plc JHX, D.R. Horton DHI and Altair Engineering Inc. ALTR.
James Hardie Industries, also a Zacks Rank #1 stock, is expected to witness 34% growth in earnings for this year.
James Hardie Industries’ earnings estimates for the current fiscal year grew to $1.38 per share from $1.34 over the past 30 days. Shares of the company have jumped 35.1% year to date compared with the broader sector’s 27.7% rally.
D.R. Horton — also a Zacks Rank #1 company — is likely to witness 24% earnings growth this year.
D.R. Horton’s earnings estimates for the current fiscal year grew 2.1% to $14.15 per share over the past seven days. Shares of the company have jumped 46.6% year to date.
Altair, a Zacks Rank #2 (Buy) stock, is expected to witness 83.9% growth in 2021 earnings.
Altair has a trailing four-quarter earnings surprise of 651.3%, on average. Shares of the company have jumped 30.3% year to date.
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