ACM Should I Buy
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AECOM is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock has experienced a significant price drop (-12.38% in regular trading), and technical indicators suggest further downside risk in the short term. While the company has positive long-term prospects, including a strong project pipeline and raised EPS guidance, the recent financial performance shows declining revenue and net income, which could weigh on the stock's recovery. Waiting for stabilization or a clearer uptrend would be prudent.
The MACD is negative and expanding, indicating bearish momentum. RSI is at 22.427, suggesting the stock is oversold but not yet signaling a reversal. Moving averages are converging, and the stock is trading below key support levels (S1: 90.159, S2: 85.151), indicating potential for further downside.
Raised fiscal 2026 EPS guidance.
Strong project pipeline with record growth in early-stage projects.
Partnership with TomTom to enhance transportation planning.
Significant price drop (-12.38%) in regular trading.
Declining revenue (-4.57% YoY) and net income (-55.39% YoY) in Q1
Mixed analyst sentiment with some downgrades and lowered price targets.
No significant hedge fund or insider trading activity to indicate confidence.
In Q1 2026, revenue declined by 4.57% YoY to $3.83 billion, and net income dropped by 55.39% YoY to $74.52 million. EPS also fell by 55.20% YoY to $0.56. However, gross margin improved by 9.57% YoY to 7.33%. The company raised its share repurchase authorization to $1 billion, indicating confidence in long-term prospects.
Analyst sentiment is mixed. While several analysts maintain Buy ratings and have raised price targets (e.g., UBS to $145, Truist to $132), others have lowered price targets or downgraded the stock (e.g., Barclays to $100 with an Equal Weight rating). The consensus highlights strong backlog visibility and infrastructure tailwinds but also notes risks tied to AI and macroeconomic factors.
