AECOM: A Defensive Bet For Upcoming Recession


  • Despite the recessionary pressures, the company’s revenue growth should benefit from the infrastructure funding environment across the globe.
  • The orders from the U.S. IIJA funding are expected to start flowing in FY23 and beyond.
  • I believe the stock can continue its outperformance.

Aecom office building in Markham, On, Canada.


Investment Thesis

AECOM’s (NYSE:ACM) stock has outperformed the S&P 500 (SPY) since our previous article, gaining over 12%, and we expect this outperformance to continue. In the near term, the company’s revenue should benefit from its strong order

ACM's order backlog

ACM’s order backlog (Company data, GS Analytics Research)

ACM's adjusted operating margin

ACM’s adjusted operating margin (Company data, GS Analytics Research)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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