--- title: "Arcosa (ACA): Assessing Valuation as Net Income Grows and Infrastructure Tailwinds Build" description: "Arcosa (ACA) is gaining investor interest due to strong net income growth and a solid product backlog, supported by increased federal infrastructure spending. Despite a recent 6.4% drop in share price" type: "news" locale: "en" url: "https://longbridge.com/en/news/260881376.md" published_at: "2025-10-13T10:50:54.000Z" --- # Arcosa (ACA): Assessing Valuation as Net Income Grows and Infrastructure Tailwinds Build > Arcosa (ACA) is gaining investor interest due to strong net income growth and a solid product backlog, supported by increased federal infrastructure spending. Despite a recent 6.4% drop in share price, the company has delivered a 52% total shareholder return over three years. Current share price of $89.15 is below the fair value of $116, indicating upside potential. However, its high price-to-earnings ratio of 47.5x raises concerns about future growth expectations. Investors are encouraged to assess risks and explore additional investment opportunities. Arcosa (ACA) is catching investor attention after recent coverage pointed to its strong net income growth and steady product backlog. This performance is supported by increased federal infrastructure spending and a healthy pipeline of construction projects. See our latest analysis for Arcosa. Even as Arcosa navigates industry headwinds like elevated costs and tariffs, the share price has slipped 6.4% over the past month. The company has achieved a total shareholder return of 52% over three years and nearly 89% over five years. While momentum has cooled recently, its long-term performance still impresses and suggests investors see ongoing value tied to infrastructure demand. If you’re curious where else investor momentum is building in this space, this is a great moment to explore fast growing stocks with high insider ownership. With Arcosa’s shares lagging lately, yet long-term prospects appearing strong, the key question becomes clear: Is this an attractive entry point for investors, or is all of that anticipated infrastructure growth already priced into the stock? ## Most Popular Narrative: 23.1% Undervalued Arcosa’s current share price of $89.15 stands well below the narrative’s fair value assessment of $116, signaling a substantial upside potential according to the dominant market storyline. The stage is set for a pivotal growth surge fueled by broad infrastructure trends and strategic expansion plans. > *Accelerating investment in grid modernization, data center development, and renewable energy integration is boosting demand for utility and transmission structures. This is leading to a record backlog and prompting capacity expansions that are expected to support higher earnings growth and margin accretion.* Read the complete narrative. What are the quantitative leaps behind this bullish projection? Competitive tailwinds and margin upgrades are at the core, but the story’s biggest surprises are hidden in the numbers that push this fair value far above the last close. Uncover the full financial blueprint driving this aggressive price target now. **Result: Fair Value of $116 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, long-term political budget cuts or difficulties in integrating new acquisitions could quickly challenge even the strongest bullish scenario for Arcosa. Find out about the key risks to this Arcosa narrative. ## Another View: The Multiples Perspective Taking a step back from the market narrative, Arcosa’s current valuation looks expensive when judged by its price-to-earnings ratio. At 47.5x, it sits well above both peer (32.6x) and industry (35.6x) averages, not to mention the fair ratio of 38.2x. This implies investors are paying a substantial premium for future growth. Does this set the stage for future disappointment if earnings don’t accelerate fast enough, or could market confidence be justified? See what the numbers say about this price — find out in our valuation breakdown. ## Build Your Own Arcosa Narrative For those who prefer to chart their own course or question the prevailing consensus, it’s easy to dig into the data and craft your own view in just a few minutes. Do it your way. A great starting point for your Arcosa research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. ## Looking for more investment ideas? Smart investing is all about finding opportunities that others may overlook. Make your next move count by checking out these unique stock picks before the market catches on. - Scoop up income potential by checking out these 19 dividend stocks with yields > 3%, which consistently generate strong yields over 3% and prioritize shareholder returns. - Ride the momentum of innovation by backing companies leading the charge in artificial intelligence through these 24 AI penny stocks, with real growth potential. - Capitalize on future technologies by reviewing these 26 quantum computing stocks, featuring firms at the forefront of quantum computing advancements. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### Related Stocks - [ACA.US - Arcosa](https://longbridge.com/en/quote/ACA.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | “AI 交易” 的關鍵變量：服務業敞口越高，AI 顛覆風險越大，“AI 基建” 最有利 | 大摩量化研究顯示，“服務業敞口” 是 AI 投資的關鍵變量，與收益呈顯著負相關。由於市場擔憂 AI 顛覆，服務業敞口高達 53% 的 “AI 採用者” 表現墊底。相反，“AI 基礎設施” 敞口僅 14%，受顛覆風險最小且受益於資本支出，在六 | [Link](https://longbridge.com/en/news/275977957.md) | | Colliers 工程與設計公司與 vialytics 合作，協助客户實現路面評估和基礎設施規劃的現代化 | Colliers 工程與設計公司和 vialytics 已建立戰略聯盟，以增強市政客户的路面評估和基礎設施規劃。此次合作利用了 vialytics 的人工智能技術，實現高效的數據收集和狀態洞察，從而促進主動維護和更好的資源分配。該合作旨在改 | [Link](https://longbridge.com/en/news/275816520.md) | | Antin 已與 CARAVELLE 展開獨家談判，計劃收購 Belambra | Antin Infrastructure Partners 已與 CARAVELLE 進入獨家談判，計劃收購 Belambra，這是一家領先的法國休閒基礎設施運營商。此次投資是 Antin 的中型基金 I 的一部分，旨在加速 Belambr | [Link](https://longbridge.com/en/news/275931926.md) | | 預覽：Clear Street Group Inc 將於明日進行首次公開募股 | Clear Street Group Inc 將於 2 月 13 日在納斯達克上市，股票代碼為 CLRS，發行價格在 40.00 美元至 44.00 美元之間。內部鎖定期將持續 180 天，至 2026 年 8 月 12 日結束。Clear | [Link](https://longbridge.com/en/news/275774920.md) | | BANKR：從迷因幣熱潮到智能代理基礎設施 | 加密貨幣人工智能領域正在發展，從投機性的 Memecoin 階段轉向更為結構化的基礎設施，出現了像 OpenClaw 和 Bankr 這樣的工具。OpenClaw 使用户能夠創建可以跨平台互動的自主代理，而 Bankr 則為這些代理提供錢包 | [Link](https://longbridge.com/en/news/275753922.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.