AECOM (ACM) JV Wins Contract to Remediate Abandoned Wells
AECOM ACM, a global infrastructure consulting leader, is set to play a pivotal role in the remediation of abandoned oil and gas wells on federal lands across the United States. Its joint venture, SLICOM, in partnership with Street Legal Industries, has secured an indefinite delivery, indefinite quantity contract from the U.S. Department of Interior Bureau of Land Management. This initiative, backed by $4.7 billion from the Infrastructure Investment and Jobs Act, aims to tackle the environmental and health risks posed by these neglected wells.
The contract covers a wide array of services, including planning, environmental assessments, permitting, testing, compliance, and investigations of these wells. Notably, the program will prioritize addressing harmful methane pollution, which is a critical step in combating climate change. AECOM's expertise in methane monitoring technology and air quality management will be instrumental in the venture's success.
Street Legal Industries, an 8(a) woman-owned small business, is part of the U.S. Small Business Administration mentor-protégé program with AECOM, where large contractors mentor smaller firms to enhance their competitiveness in the federal market. AECOM's commitment to fostering meaningful small business partnerships has earned them national recognition, having mentored 12 firms in federal agency programs over the past five years.
This contract underscores AECOM's dedication to infrastructure sustainability and environmental responsibility. With their cutting-edge technology and collaborative approach, AECOM and SLICOM are well-positioned to contribute significantly to the Federal Orphaned Well Program, safeguarding the environment and public health while supporting economic growth.
Share Price Performance
Shares of AECOM have gained 17.3% in the past year compared with the Zacks Engineering - R and D Services industry’s 39.4% growth. Although shares of the company have underperformed its industry, its ongoing contract wins position it well to gain momentum in the upcoming period.
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ACM’s expected three-five year earnings per share (EPS) growth rate is currently pegged at 11%. Again, it carries an impressive VGM Score of A. This helps to identify stocks with the most attractive value, growth and momentum.
The company has been benefiting from the industry-leading position in green building and green design, environmental compliance and remediation, energy efficiency and infrastructure resilience.
At the end of third-quarter fiscal 2023, AECOM’s total backlog increased to $41.63 billion (including 10% growth in the design business) from $41.13 billion in the prior-year quarter.
Zacks Rank
AECOM currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-than stocks from the Construction sector are EMCOR Group, Inc. EME, TopBuild Corp. BLD and Meritage Homes Corporation MTH.
EMCOR currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EME delivered a trailing four-quarter earnings surprise of 17.2%, on average. Shares of the company have risen 77.4% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and EPS indicates growth of 11.7% and 36.2%, respectively, from the previous year’s reported levels.
TopBuild currently sports a Zacks Rank of 1. BLD delivered a trailing four-quarter earnings surprise of 14.1%, on average. Shares of the company have risen 46.1% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates growth of 3.3% and 8.4%, respectively, from the previous year’s reported levels.
Meritage Homes currently sports a Zacks Rank of 1. MTH delivered a trailing four-quarter earnings surprise of 24.1%, on average. Shares of the company have gained 62.8% in the past year.
The Zacks Consensus Estimate for MTH’s 2023 sales and EPS indicates a decline of 3.2% and 27.3%, respectively, from the previous year’s reported levels.
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