AECOM: Good Growth Prospects Driven By Multi-Year Secular Demand Trends

Summary:

  • AECOM is expected to sustain its revenue and margin growth due to a robust backlog of projects, increased rate of project wins, and global investments in infrastructure and sustainability.
  • The increased government funding and effective backlog execution should offset a slowdown in the commercial real estate market.
  • AECOM’s valuation is reasonable, trading at a significant discount compared to its peer, Tetra Tech, making it an attractive investment opportunity.

Aecom office building in downtown Los Angeles.

JHVEPhoto

Investment Thesis

AECOM (NYSE:ACM) is well-positioned to sustain its impressive revenue and margin growth in the foreseeable future. The company’s revenue growth is expected to be boosted by several factors. Firstly, it benefits from a robust backlog of projects, totaling $41.9 billion


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This article is written by Saloni V.

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