Why Aecom Technology (ACM) is a Top Growth Stock for the Long-Term

AECOM (ACM) is highlighted as a compelling growth stock, despite its Zacks Rank #3 (Hold), due to its robust underlying metrics. The company boasts an 'A' Growth Style Score and 'B' VGM Score, underpinned by a forecasted 15.9% year-over-year earnings growth for the current fiscal year. This outlook is further supported by recent upward revisions to its fiscal 2025 earnings estimate, increasing the Zacks Consensus Estimate by $0.09 to $5.24 per share, alongside a consistent average earnings surprise of 9.8%, positioning ACM as a potential outperformer within Zacks' analytical framework.

Analysis

AECOM (ACM) presents a compelling case for growth-focused investors, anchored by strong fundamental metrics despite its neutral Zacks #3 'Hold' rating. The company's primary appeal lies in its 'A' grade Growth Style Score, supported by a forecast for 15.9% year-over-year earnings growth in the current fiscal year. This positive forward outlook is reinforced by recent analyst activity, where two analysts have revised fiscal 2025 earnings estimates upward over the last 60 days, increasing the Zacks Consensus Estimate by $0.09 to $5.24 per share. Furthermore, AECOM has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of +9.8%. The combination of these factors, encapsulated in a solid 'B' VGM (Value, Growth, Momentum) score, suggests that the underlying growth and earnings momentum may be more robust than the 'Hold' rating implies, positioning the stock as a noteworthy candidate on fundamentals alone.

Key Decisions for Investors

• Growth-oriented investors should look past the neutral Zacks #3 'Hold' rating and focus on the company's strong underlying growth metrics, including a forecasted 15.9% earnings growth and an 'A' for its Growth Style Score.
• Investors should monitor for any potential upgrade from the current 'Hold' rating, as this could act as a significant catalyst given the already positive earnings estimate revisions and consistent earnings beats.
• Given the positive momentum in analyst estimates for fiscal 2025, it is prudent to watch for continued upward revisions in consensus figures as confirmation of the long-term growth thesis.
• While the growth story is strong, the neutral rating suggests investors should consider the current valuation and overall market conditions before initiating a new position, potentially waiting for a more attractive entry point.