There are three reasons Cramer thinks infrastructure company AECOM Technology is a buy:
The stock is down almost $10 off its 52-week high, which is a nice bargain price.
The bond market is indicating a recession and interest rates are plummeting, Cramer said, and when that happens, investors want companies with solvent customers. And the U.S. government is a reliable payer, making AECOM a more reliable stock.
But most of all, Cramer thinks the purchase of Washington Group by URS will have the biggest effect on AECOM stock. It’s simple supply and demand, he said. There will be fewer shares of small infrastructure plays left on the market when Washington is gone, so that should push up ACM shares.
AECOM has a ton of good business on the horizon, too, especially in New York. ACM will build the PATH station at the new World Trade Center in New York, the Second Avenue subway line and there’s even a chance it could get the contract to build a new tunnel under the Hudson River for the Port Authority.
This stock doesn’t get a lot of analyst attention, but it got Cramer’s. He thinks it’s worth owning.
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