Q: A few months ago you rated WSP, STN, and ATRL in that order; is this still the case?
BNN pundits have touted WSP's experience in power infrastructure and ATRL's in nuclear reactors, and given the scale of the projects involved, these competences should matter (particularly as concerns nuclear.)
In your database, WSP stands apart from the others w/rt both market cap and margins, ATRL shows lower debt/equity, while STN shows the best ROE - yet they all show elevated P/E metrics such that one might wonder if their appreciation potential were already baked-in.
BNN pundits have touted WSP's experience in power infrastructure and ATRL's in nuclear reactors, and given the scale of the projects involved, these competences should matter (particularly as concerns nuclear.)
In your database, WSP stands apart from the others w/rt both market cap and margins, ATRL shows lower debt/equity, while STN shows the best ROE - yet they all show elevated P/E metrics such that one might wonder if their appreciation potential were already baked-in.
5i Research Answer:
We would keep the same ranking. P/E's are on the high side of things, but with lower rates, stimulus spending and strong growth expected, some of this can be justified. We might see these companies make acquisitions of small, cheaper stocks over the next couple of years because of this. We would still be positive towards the sector overall. Their backlogs also add some reliability to future earnings power.