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AECOM ACM will now manage the construction of the New Jersey Wind Port via the AECOM Tishman business. This infrastructure consulting firm will collaborate with the New Jersey Economic Development Authority to develop the first greenfield offshore wind port in the United States.
New Jersey Wind Port is the country’s first purpose-built offshore wind marshaling and manufacturing port located in Lower Alloways Creek Township, NJ, on the eastern shore of the Delaware River. This 200-acre infrastructure project will serve the manufacturing and assembly needs of future offshore wind projects on the East Coast of the United States, and is expected to create 83,000 jobs and witness more than $150 billion of investment in offshore wind over the next 15 years.
In this regard, Jay Badame, president of AECOM Tishman said, "AECOM Tishman is proud to play this role in building a sustainable future for both the State of New Jersey and the United States as a whole," He further added, "The Wind Port project will leave a legacy for future generations, fostering growth in the renewable energy sector and is anticipated to serve as a catalyst for the creation of tens of thousands of jobs and more than $100-billion in investment.”
Focus on Renewable Energy Bodes Well
AECOM is prioritizing its investments in ESG or Environmental, Social and Governance. The company has been benefiting from its industry-leading position in green building and green design, environmental compliance and remediation, energy efficiency as well as infrastructure resilience. As a result of its ESG priorities, the company will be in a position to advise clients in key transportation, water and environment markets, thereby boosting backlog level.
AECOM is witnessing a robust pipeline of pursuits across the business. The company’s net service revenues or NSR — defined as revenues excluding subcontractors and other direct costs — have been benefiting from strength across core transportation, water, and environment markets. Although its backlog of $39.7 billion at fiscal third quarter-end was down 4% due to tepid performance of the Construction Management business, the design business was strong (up 8% year over year). AECOM currently has good visibility into growth and a strong backlog for the upcoming quarters.
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The stock has rallied 29.3% in the year-to-date period compared with the industry’s 28.2% growth. Earnings estimates for fiscal 2021 have moved up 0.7% in the past 60 days, depicting analysts' optimism over bottom-line growth potential. The Zacks Consensus Estimate for the Zacks Rank #4 (Sell) company’s fiscal 2021 earnings indicates a 31.2% increase from the 2020 level.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same industry include KBR, Inc. KBR, Jacobs Engineering Group Inc. J and Quanta Services Inc. PWR, each carrying a Zacks Rank #2 (Buy).
KBR, Jacobs, and Quanta are likely to register an earnings growth rate of 24.9%, 13.5%, and 21.5% year over year, respectively, in 2021.
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Quanta Services, Inc. (PWR) : Free Stock Analysis Report
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