AECOM(ACM) Shares Soar 0.97% on Upgraded Rating, Strong Earnings

AECOM(ACM) shares surged 0.97% today, marking the second consecutive day of gains, with a total increase of 1.57% over the past two days. The stock price reached its highest level since January 2025, with an intraday gain of 1.18%.

The strategy of buying ACM shares after they reached a recent high and holding for 1 week resulted in a 6.06% annualized return over the past 5 years, significantly underperforming the market and ACM's average annual return of 19.97%. This suggests that this strategy failed to capitalize on ACM's strong performance, indicating a less than optimal approach..

AECOM's recent stock price movements can be attributed to several key factors. Analysts have shown optimism towards the company, with Robert W. Baird upgrading its rating to "outperform" and increasing the price target from $108.00 to $118.00. This sentiment is echoed by Wall Street analysts, who have given AECOM a consensus "Strong Buy" rating with a 12-month average price target of $118.93, indicating a 9.32% upside potential from the current price.

The company's strong financial performance has also played a significant role in boosting investor confidence. In fiscal 2024, AECOM reported a 12% increase in revenue and a 22% rise in adjusted earnings. The company maintains a record high backlog and pipeline, positioning it well for future growth. These financial results, coupled with strategic investments, have contributed to the positive market sentiment surrounding AECOM.

Additionally, AECOM's strategic initiatives have further supported its growth prospects. The company recently secured an $81.3 million environmental remediation contract, demonstrating its ability to diversify its portfolio and capitalize on new opportunities. This contract aligns with the company's strategic shift and has been cited by analysts as a reason for their buy recommendations.