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4-Star Stocks Poised to Pop: AECOM Technology

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:57PM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, professional technical and management support services provider AECOM Technology (NYSE:ACM) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at AECOM's business and see what CAPS investors are saying about the stock right now.

AECOM facts

Headquarters (founded)

Los Angeles, California (1980)

Market Cap

$3.09 billion

Industry

Technical Services

TTM Revenue

$5.19 billion

Management

CEO John Dionisio (since 2005)

CFO Michael Burke (since 2006)

Return on Equity (average last two years)

13.6%

Competitors

Fluor (NYSE:FLR),

Shaw Group (NYSE:SGR)

CAPS members bullish on ACM also bullish on

Apple (NASDAQ:AAPL),

Google (NASDAQ:GOOG)

CAPS members bearish on ACM also bearish on

General Motors (NYSE:GM),

Amazon.com (NASDAQ:AMZN)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 564 of the 580 members who have rated AECOM -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Fools include Hoping2Retire and Genkibro.

In October, Hoping2Retire included AECOM as one of the more attractive ways to play infrastructure:

There will be significant pressure for new infrastructure project investments in U.S. and Europe to reduce unemployment in the next several years. Additionally Asia will continue its massive investments in this area and, accordingly, architecture and engineering firms should do well.

In a pitch from two days ago, Genkibro agrees with that line of thinking, writing:

Loose money and emphasis on infrastructure will give heavy construction a charge, Aecom does nice work.... They also have year-over-year earnings growth of over 45% a PEG below 1.0, and a good track record all over the planet, so whatever region recovers and grows, they will have a chance to be part of it.

What do you think about AECOM, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Amazon are Motley Fool Stock Advisor picks. Google is a choice of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

AECOM Stock Quote
AECOM
ACM
$74.72 (2.52%) $1.84
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$119.70 (2.63%) $3.07
Apple Inc. Stock Quote
Apple Inc.
AAPL
$169.24 (2.62%) $4.32
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$142.69 (3.53%) $4.86
General Motors Company Stock Quote
General Motors Company
GM
$37.95 (3.63%) $1.33
Fluor Corporation Stock Quote
Fluor Corporation
FLR
$25.70 (4.68%) $1.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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