HomeMost PopularInvestingSecuring Government Contracts: AECOM (ACM) Joint Venture Emerges Victorious in FEMA Deal

Securing Government Contracts: AECOM (ACM) Joint Venture Emerges Victorious in FEMA Deal

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Breaking News: AECOM ACM, a powerhouse in the infrastructure world, has just clinched a major victory. Alongside Dewberry, they’ve scored a plum contract with the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA), to deliver crucial public assistance services. Operating under the NISTAC PLUS JV banner, AECOM is set to play a leading role in FEMA’s quest to support communities devastated by disasters.

This heavyweight contract is tailored to the Atlantic Zone, encompassing eight states, Puerto Rico, and the Virgin Islands. The mission? Facilitating grants for the repair and replacement of crucial public infrastructure following declared disasters. AECOM will utilize its well-honed expertise to assess damage, identify viable losses, and aid in the restoration process.

The scope of work spans a vast array of services, from site inspections to technical support, program analysis, and cost estimating. This win reinforces AECOM’s longstanding commitment to FEMA’s vital mandate, honed over 400 responses to disasters worldwide.

Riding the Wave

Now, let’s talk numbers. AECOM has been riding the crest of organic growth, with first-quarter revenues hitting $3.9 billion, a 15% year-over-year surge. Adjusted net service revenues followed suit, climbing 7% to $1.71 billion. Notably, their design business witnessed an organic NSR growth of 8%, particularly in the water and transportation sectors, with a solid 9% uptick in the Americas.

Although AECOM’s shares have seen a modest 0.3% uptick in the past six months, they’ve somewhat lagged behind the booming Engineering-R and D Services industry, which itself witnessed an 11.3% surge. However, AECOM’s significant backlog, standing tall at $39.81 billion at the close of the fiscal first quarter, bodes well. A hefty 56.5% contracted backlog growth has set the stage for exciting times ahead.

The Prodigies in the Pack

As if this win wasn’t enough, AECOM is running with the wolves. Currently sitting at a Zacks Rank #3 (Hold), they’re holding their own. But there are shining stars in the sector worth a gander:

First up, Advanced Drainage Systems, Inc. WMS, a Strong Buy with a remarkable quarterly earnings surprise of 37.1%, has seen a hearty 25.3% jump in shares over the last six months. Masco Corporation MAS, a Buy, with a 23.4% trailing four-quarter earnings surprise, has surged 28.5% in the same period. And let’s not forget Armstrong World Industries, Inc., currently enjoying a 56.7% rise in the past six months.

Your best bet for a double-up? Zacks experts have brought a hidden gem to light – a chemical company with a speculated 100% eruption. It might just outshine recent stars like the Boston Beer Company and NVIDIA. The buzz around this stock is palpable, with sky-high earnings estimates and a whopping $1.5 billion for buybacks.

Parting Words

Curious to know more? Dive right in and uncover the potential treasures waiting in the stock market depths. Unearth the gems that could pave your path to financial glory. The stakes are high, the rewards even higher.

Invest wisely and let your fortune soar. It’s not just a game; it’s a strategic dance on the volatile floor of investment. The choices you make today could ripple into a prosperous tomorrow. Seize the day, seize the opportunities.

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Zacks Investment Research

The perspectives shared in this article are those of the author and do not necessarily represent the views of Nasdaq, Inc.

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