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What: Shares of AECOM Technology
So what: The planning and construction consulting service actually missed earnings estimates by a cent but generated strong free cash flow to make up for the earnings miss. Investors had been previously concerned about the company's cash position as it carries more than a $1 billion in debt, but its results brought net debt to its lowest point in the last seven quarters. Net income was down slightly from a year ago, though EPS moved up a penny to $0.63 due to share buybacks.
Now what: Heading into earnings season, some observers had argued that the company's valuation was attractive, and that still looks to be the case at a P/E of just 8.3. With a backlog of $15.8 billion sitting on its books, the company has plenty of new business on the way. If AECOM keeps its costs under control, this could be a solid pick over the coming months.
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Fool contributor Jeremy Bowman holds no positions in the companies above. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.