Three Reasons Why ACM is Risky and One Stock to Buy Instead

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Three Reasons Why ACM is Risky and One Stock to Buy Instead Since December 2019, the S&P 500 has delivered a total return of 89.1%. But one standout stock has nearly doubled the market - over the ...

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But one standout stock has nearly doubled the market - over the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/three-reasons-why-acm-risky-083451459.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Three Reasons Why ACM is Risky and One Stock to Buy Instead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThree Reasons Why ACM is Risky and One Stock to Buy Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-16 16:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/three-reasons-why-acm-risky-083451459.html><strong>StockStory</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Three Reasons Why ACM is Risky and One Stock to Buy Instead \n \n\nSince December 2019, the S&P 500 has delivered a total return of 89.1%. But one standout stock has nearly doubled the market - over the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/three-reasons-why-acm-risky-083451459.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2308191902.HKD","symbol_name":"BNP PARIBAS ECOSYSTEM RESTORATION \"CLASSIC\" (HKD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/three-reasons-why-acm-risky-083451459.html","article_id":"2491869313","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/v9YWVnmPPPLn26d0LqMoVw--~B/aD03MDA7dz0xNDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/stockstory_922/e95acadd9b7b8ff56f8fece2cad732c0"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491869313","pubTimestamp":1734338091,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Since December 2019, the S&P 500 has delivered a total return of 89.1%. But one standout stock has nearly doubled the market - over the past five years, AECOM has surged 159% to $111.51 per share. Its momentum hasn’t stopped as it’s also gained 26% in the last six months, beating the S&P by 15.6%.Is now the time to buy AECOM, or should you be careful about including it in your portfolio?See what our analysts have to say in our full research report, it’s free.We’re happy investors have made money, but we're cautious about AECOM. Here are three reasons why you should be careful with ACM and a stock we'd rather own.Founded in 1990 when a group of engineers from five companies decided to merge, AECOM  provides various infrastructure consulting services.Investors interested in Engineering and Design Services companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into AE","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2308191902.HKD":"BNP PARIBAS ECOSYSTEM RESTORATION \"CLASSIC\" (HKD) ACC","ACM":"Aecom Technology Corporation","BK4129":"建筑与工程","BK4516":"特朗普概念"},"translate_title":"ACM有风险的三个原因以及值得购买的一只股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ACM":1},"content_text":"Three Reasons Why ACM is Risky and One Stock to Buy Instead \n \n\nSince December 2019, the S&P 500 has delivered a total return of 89.1%. But one standout stock has nearly doubled the market - over the past five years, AECOM has surged 159% to $111.51 per share. Its momentum hasn’t stopped as it’s also gained 26% in the last six months, beating the S&P by 15.6%. \nIs now the time to buy AECOM, or should you be careful about including it in your portfolio? \nSee what our analysts have to say in our full research report, it’s free. \nWe’re happy investors have made money, but we're cautious about AECOM. Here are three reasons why you should be careful with ACM and a stock we'd rather own. \nWhy Is AECOM Not Exciting?\nFounded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE:ACM) provides various infrastructure consulting services. \n1. Long-Term Revenue Growth Disappoints\nReviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, AECOM grew its sales at a sluggish 3.4% compounded annual growth rate. This fell short of our benchmark for the industrials sector. \n2. Backlog Is Unchanged, Sales Pipeline Stalls\nInvestors interested in Engineering and Design Services companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into AECOM’s future revenue streams. \nOver the last two years, AECOM failed to grow its backlog, which came in at $23.86 billion in the latest quarter. This performance was underwhelming and shows the company faced challenges in winning new orders. It also suggests there may be increasing competition or market saturation. \n3. Low Gross Margin Reveals Weak Structural Profitability\nAll else equal, we prefer higher gross margins because they usually indicate that a company sells more differentiated products and commands stronger pricing power. \nAECOM has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 6.2% gross margin over the last five years. That means AECOM paid its suppliers a lot of money ($93.75 for every $100 in revenue) to run its business. \nFinal Judgment\nAECOM isn’t a terrible business, but it doesn’t pass our quality test. With its shares outperforming the market lately, the stock trades at 22.5× forward price-to-earnings (or $111.51 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward Google, whose cloud computing and YouTube divisions are firing on all cylinders. \nStocks We Like More Than AECOM\nThe Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them. \nGet started by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. \nStocks that made our list in 2019 include now familiar names such as Nvidia (+2,691% between September 2019 and September 2024) as well as under-the-radar businesses like Comfort Systems (+783% five-year return). Find your next big winner with StockStory today for free.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491869313"}