URS Corporation (URS: 38.93 +0.47 +1.22%) is trading with great valuations as estimate rise into its next quarterly report.Company Description
URS Corporation is an engineering, construction and technical service company for both public and private entities. The company is in more than 30 countries and operates in sectors from oil & gas to Homeland Security.
Easily Ahead of Expectations
The most recent quarterly report for URS was back in May and included net income of $125 million, or $1.17 per share. Analysts were only expecting 78 cents, marking the fifth consecutive earnings surprise.
URS has only missed earnings expectations once in the past 5 years.
M&A Activity
Over the past few weeks, URS has been going after U.K.-based Scott Wilson, a design and engineering consulting firm. The latest offer was raised to $337 million and supported by the target’s board of directors.
Estimate Revisions
Over the past 3 months the Zacks Consensus Estimate for full-year 2010 is up 29 cents, to $3.70. Next year’s estimates have not moved as much, but are up 4 cents to $3.77.
Given these levels, projected growth is almost 20% this year and 2% in 2011.
Shares are Cheap
URS Corp’s stock is trading at less than 11 times its forward estimates and with a PEG ratio barely over 1.0. The price-to-book is just under 0.8, better than the industry average of 1.24.
The Chart
Shares of URS have been in a downward trend recently, but with the valuations and potential level of support here, it could be poised for a turn around. take a look at the chart below.
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