Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified AECOM Technology as such a stock due to the following factors:
- ACM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.4 million.
- ACM is down 8.8% today from today's close.
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More details on ACM:
AECOM Technology Corporation, together with its subsidiaries, provides professional technical and management support services for public and private clients in worldwide. The company operates through two segments, Professional Technical Services (PTS) and Management Support Services (MSS). ACM has a PE ratio of 13.9. Currently there are 4 analysts that rate AECOM Technology a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for AECOM Technology has been 1.2 million shares per day over the past 30 days. AECOM Technology has a market cap of $3.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.89 and a short float of 2.3% with 0.79 days to cover. Shares are up 17% year-to-date as of the close of trading on Monday.
rates AECOM Technology as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
- AECOM TECHNOLOGY CORP's earnings per share declined by 22.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AECOM TECHNOLOGY CORP turned its bottom line around by earning $2.36 versus -$0.57 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $2.36).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 5.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, ACM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full AECOM Technology Ratings Report.