5 Best Civil Engineering Stocks to Buy for Smart City Projects

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1. AECOM (NYSE:ACM)

Upside Potential: 49.83%

AECOM (NYSE:ACM) strengthened its position in the defense infrastructure market on May 21 after securing the top ranking on Defence Construction Canada’s National Architecture & Engineering Source List. The multi-year program carries a potential value of up to C$270 million and will support the Department of National Defence in delivering critical infrastructure projects across Canada. Under the agreement, AECOM will provide comprehensive planning, engineering, architectural, and construction support services for facilities, including aircraft maintenance buildings, high-security offices, military accommodations, training centers, and other strategically important assets. The award highlights the company’s strong reputation in managing complex public-sector infrastructure programs.

Earlier, on May 19, Barclays lowered its price target on AECOM (NYSE:ACM) to $90 from $110 while maintaining an Equal Weight rating following the company’s fiscal second-quarter results. Although the firm noted a lack of near-term catalysts and an ongoing market re-rating of asset-light businesses, it also acknowledged AECOM’s strong multi-year growth profile and consistent free-cash-flow generation. The analyst described the stock as attractively valued despite the absence of an immediate catalyst for multiple expansion.

AECOM (NYSE:ACM) is a multinational infrastructure consulting firm headquartered in Dallas, Texas, and was founded in 1990. The company provides planning, engineering, architectural design, environmental consulting, construction management, and program management services for public and private-sector clients worldwide.

While we acknowledge the potential of ACM for smart city projects, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 7 Best Electrical Contracting Stocks to Buy for Data Hall Fit-outs and 9 Best Silver and Copper Stocks to Buy for the EV Transition.

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