eyeQ: outlook is favourable for this building stock
Experts at eyeQ have used AI and their own smart machine to analyse macro conditions and generate actionable trading signals. Here’s what it makes of this mid-cap stock.
13th August 2025 10:37
by Huw Roberts from eyeQ
“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ
- Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary
Balfour Beatty
Macro Relevance: 76%
Model Value: 562.52p
Fair Value Gap: +1.66% premium to model value
Data correct as at 13 August 2025. Please click glossary for explanation of terms. Long-term strategic model.
Good earnings from engineering and construction giant Balfour Beatty (LSE:BBY) dominate this morning’s domestic headlines.
A big part of that was a healthy pipeline of contracts from the UK government covering a wide span of industries including railways, defence and clean energy.
The stock is well placed to benefit from a key theme that looks set to be around for years to come - the need to rebuild UK infrastructure.
eyeQ’s macro picture is also upbeat. There’s no valuation edge - the share price is pretty much trading where it should be given macro conditions - but the trend in macro momentum is impressive. Model value is up 8.3% so far in Q3 and up 7.5% in the last month alone.
The gain in BBY model value is one of the biggest in the FTSE 100. The chart shows the strong move higher in the orange line, which effectively captures how the broad macro environment is supportive of a higher share price.
Macro likes Balfour Beatty.
Source: eyeQ. Past performance is not a guide to future performance.
Useful terminology:
Model value
Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.
Model (macro) relevance
How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.
Fair Value Gap (FVG)
The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.
Long Term model
This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.
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Disclosure
We use a combination of fundamental and technical analysis in forming our view as to the valuation and prospects of an investment. Where relevant we have set out those particular matters we think are important in the above article, but further detail can be found here.
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