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.

Trade-Ideas LLC identified Aecom ( ACM) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Aecom 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 $50.4 million.
  • ACM has traded 208,979 shares today.
  • ACM is trading at 3.87 times the normal volume for the stock at this time of day.
  • ACM is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ACM:

AECOM, together with its subsidiaries, provides professional technical and management support services for public and private clients worldwide. The company operates through two segments, Professional Technical Services (PTS) and Management Support Services (MSS). ACM has a PE ratio of 31. Currently there are 4 analysts that rate Aecom a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Aecom has been 1.5 million shares per day over the past 30 days. Aecom has a market cap of $4.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.19 and a short float of 3.1% with 3.52 days to cover. Shares are up 4.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Aecom as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:
  • ACM's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 114.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 105.72% to $282.64 million when compared to the same quarter last year. In addition, AECOM INC has also vastly surpassed the industry average cash flow growth rate of -124.25%.
  • AECOM INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, AECOM INC reported lower earnings of $2.33 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.33).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Construction & Engineering industry and the overall market on the basis of return on equity, AECOM INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has significantly decreased by 283.5% when compared to the same quarter one year ago, falling from $56.40 million to -$103.50 million.

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