Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM) and Babcock International Group PLC (BCKIY). But which of these two stocks is more attractive to value investors?
ACM's decision to retain its construction unit signals confidence in profitability, but integration risks may test its higher-margin strategy.
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The demand for AI solutions and data center-related infrastructure is proving to be the core growth pillar for infrastructure solution providers like Comfort Systems USA, Inc. FIX and AECOM ACM. The peak position of the United States' public funding program has fueled the already outperforming market demand despite lingering inflation risks and geopolitical unrest.
AECOM ACM has been offered a position by the U.S. Missile Defense Agency in the SHIELD (Scalable Homeland Innovative Enterprise Layered Defense) program, an indefinite-delivery/indefinite-quantity (IDIQ) contract with a total ceiling of $151 billion. The SHIELD contract is designed to accelerate the development and deployment of innovative defense solutions with greater speed and flexibility, positioning AECOM to benefit from future opportunities in a large-scale, high-priority national security program.
AECOM's ACM aggressive push into Artificial Intelligence (AI) is not just a buzzword, but may be a meaningful margin catalyst. In its recent first-quarter fiscal 2026 earnings release, the company reported an adjusted operating profit of $264 million, which was up 10% from the year-ago quarter, with adjusted operating margin improving 100 bps to 16.4%.
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM) and Babcock International Group PLC (BCKIY). But which of these two stocks presents investors with the better value opportunity right now?
Alliancebernstein L.P. lowered its position in AECOM (NYSE: ACM) by 6.7% during the undefined quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 2,607,315 shares of the construction company's stock after selling 188,720 shares during the period. Alliancebernstein L.P. owned 1.97% of AECOM
After a 29.7% six-month drop, ACM trades far below its high though backlog hits $26B, margins expand and guidance rises-reviving the buy-the-dip debate.
Aecom (ACM) reported earnings 30 days ago. What's next for the stock?
AECOM ACM is seeing strong momentum from rising infrastructure investment across global markets. Rising investment in transportation networks, water systems and environmental infrastructure is creating a steady pipeline of projects.
AECOM ACM has been witnessing robust market trends with global public infrastructure demand reaching new heights. As of Dec. 31, 2025, the total backlog grew 9% year over year to $25.96 billion, with a book-to-burn ratio of 1.5x, more than enough coverage to sustain revenues through subsequent quarters.