What Happened?
Shares of energy and renewable energy projects company Ameresco (NYSE: AMRC) jumped in the morning session after the company announced it secured a $197 million energy contract with the U.S. Naval Research Laboratory.
This project aimed to modernize critical infrastructure at the NRL's Washington, D.C. campus and Chesapeake Bay Detachment. The work included upgrading steam and chilled water systems. Ameresco reported that the contract was expected to generate over $362 million in savings over a 21-year period, with annual cost savings projected at $12.5 million once fully operational.
After the initial pop the shares cooled down to $38.64, up 1% from previous close.
Is now the time to buy Ameresco? Access our full analysis report here.
What Is The Market Telling Us
Ameresco’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 9.1% on the news that Jefferies upgraded the stock to Buy from Hold and more than doubled its price target to $39 from $19. The investment bank pointed to reduced execution risks and lower uncertainty surrounding the Inflation Reduction Act as key factors for its decision. The firm's analysts noted that despite the stock's recovery from its April lows, they believed there was potential for more upside. They pointed to expected data center announcements and a revival in the company's Projects business as future drivers. Jefferies described this as the beginning of a 'growth era' for Ameresco following a challenging period for the company.
Ameresco is up 53.7% since the beginning of the year, and at $38.64 per share, has set a new 52-week high. Investors who bought $1,000 worth of Ameresco’s shares 5 years ago would now be looking at an investment worth $1,038.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
