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Attractive stocks have exceptional fundamentals. In the case of AECOM (NYSE:ACM), there's is a company with a a great history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on AECOM here.
Good value with proven track record
Over the past year, ACM has grown its earnings by 51%, with its most recent figure exceeding its annual average over the past five years. Not only did ACM outperformed its past performance, its growth also surpassed the Construction industry expansion, which generated a 0.4% earnings growth. This paints a buoyant picture for the company. ACM's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ACM's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of ACM's peers, it is also trading at a value below those of similar sizes in asset terms. This further reaffirms that ACM is potentially undervalued.
For AECOM, I've put together three essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ACM’s future growth? Take a look at our free research report of analyst consensus for ACM’s outlook.
- Financial Health: Are ACM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.