Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6516
    -0.0020 (-0.30%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • Bitcoin AUD

    108,724.44
    +2,235.09 (+2.10%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6036
    +0.0006 (+0.09%)
     
  • AUD/NZD

    1.0903
    +0.0023 (+0.21%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Aegion (AEGN) Wins Two Tite Liner System Contracts, Stock Up

Aegion Corporation’s AEGN United Special Technical Services, LLC ("USTS") — a joint venture of its subsidiary United Pipeline Systems, Inc. ("United") and Special Technical Services LLC ("STS") of Oman — has secured two contracts from local contractors working for a major oil and gas pipeline operator in Saudi Arabia. The combined value of the contracts stands at nearly $11 million.

Following the news, shares of the company gained 5% on Sep 11. Year to date, the stock has rallied 32.4% compared with the industry’s 35% growth.

Under the contract, USTS will rehabilitate more than 25 miles of 42-inch diameter seawater transport pipelines using United’s Tite Liner system, which is a high-density polyethylene (HDPE) liner. Notably, this will mark the largest pipe diameter in the Middle East since the introduction of Tite Liner system in the region. The project is expected to start in fourth-quarter 2019 and will continue for the next two years.

ADVERTISEMENT

Meanwhile, Aegion remains committed to the USTS business in Saudi Arabia as it continues to see solid prospects for both its industrial linings and coatings businesses. Moreover, the company remains confident about its onshore and offshore projects over the next several years.

Although the company’s top line had declined over the past few quarters, we believe recent contract wins will drive the company’s revenues in the coming quarters.  In the second quarter of 2019, overall revenues declined by 4.9% from the prior year.

Zacks Rank & Other Key Picks

Aegion, which shares its space with Construction Partners, Inc. ROAD, carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same industry include Frontdoor, inc. FTDR and Quanex Building Products Corporation NX, each sporting a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank stocks here.

Frontdoor has an impressive long-term earnings growth rate of 15.5%.

Quanex posted a trailing four-quarter average beat of 12.5%.

Breakout Biotech Stocks with Triple-Digit Profit Potential
 
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Aegion Corporation (AEGN) : Free Stock Analysis Report
 
Quanex Building Products Corporation (NX) : Free Stock Analysis Report
 
Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
 
Frontdoor, Inc. (FTDR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research