The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
ACM wins a key role in Seattle's $1B transit overhaul, boosting its footprint in large-scale infrastructure modernization.
Investors interested in Engineering - R and D Services stocks are likely familiar with Aecom Technology (ACM) and Sterling Infrastructure (STRL). But which of these two stocks presents investors with the better value opportunity right now?
Aecom (ACM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
ACM Research is downgraded to Hold after Q4 2025 margins sharply declined despite strong revenue growth and a solid balance sheet. Q4 gross margin dropped to 40.9%, below ACMR's 42-48% target, with rising costs and competitive pressures challenging the prior bullish thesis. ACMR maintains ambitious 2026 revenue guidance ($1.08B-$1.175B), but sustained margin pressure and high working capital raise doubts about future profitability.
ACM Research, Inc. delivered Q4 revenue growth but suffered significant margin deterioration, prompting a Hold rating despite a strong balance sheet. Q4 gross margin fell over 870bps to 40.9%, with operating margin dropping 720bps, attributed to vague factors like product mix and scaling costs. Management maintains 2026 revenue guidance of $1.08B–$1.175B, implying 20%-30% growth, but expects lower margins to persist into H1 2026.
MTZ, EME, ACM, J and STRL are riding a massive AI data center build-out, as trillions in projected capex fuel demand for power, cooling and infrastructure.
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ACM Research: The Valuation Gap Is Shrinking But Still Wide Open
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
AECOM initiated with a Buy rating, supported by strong Q1 2026 results and a positive outlook. ACM delivered a beat-and-raise quarter, increasing EPS guidance and demonstrating margin expansion, especially in higher-margin services. Despite modest sales growth, I see 12% base case upside to a $116.71 price target, with robust backlog and disciplined capital allocation.