Stocks Trading Well Below Their Current Backlog Orders

Description:

An essential metric in valuing engineering and construction companies’ are the current state of their backlog, and how that backlog fairs in the current global economic backdrop. By definition, a backlog is the total value of sales and orders by clients, waiting to be filled by the company. Generally speaking, increase or decreases in a company’s backlog might indicate the future direction of sales and forward earnings.
Right now, there are a bunch of companies whose current backlog is substantially higher than the entire value of the company. This makes them prime take-over targets, as future contract orders and sales will more than cover for the value of the firm, plus any additional premium a bidder might make.

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