We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights EMCOR, MasTec, Comfort Systems, Sterling Infrastructure and Acuity Brands
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 4, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: EMCOR Group, Inc. (EME - Free Report) , MasTec, Inc. (MTZ - Free Report) , Comfort Systems USA, Inc. (FIX - Free Report) , Sterling Infrastructure, Inc. (STRL - Free Report) and Acuity Brands, Inc. (AYI - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Construction Stocks to Explore on Increased Spending
According to a recent report by the U.S. Census Bureau, construction activity in the country has been gaining momentum since July 2024. The October 2024 data shows that construction activity was driven by increased residential construction spending month over month and year over year. Although non-residential construction spending during the month was down from September 2024, it was up year over year.
Residential construction witnessed an uptick of 1.5% from September 2024 and 6.4% year over year thanks to increased homebuilder’s confidence and easing inflation. Non-residential construction in October inched down 0.4% from the previous month but gained 3.9% year over year. The non-residential construction was pulled up by increased activity in public safety, amusement and recreation, water supply, manufacturing, office, healthcare, and education.
Based on the trends and numbers mentioned above, it will be wise to invest in a few of the construction stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy), including EMCOR Group, Inc., MasTec, Inc., Comfort Systems USA, Inc., Sterling Infrastructure, Inc. and Acuity Brands, Inc.. You can see the complete list of today’s Zacks #1 Rank stocks here.
Knowing the Numbers
Construction activity spending can be understood better when private and public construction is gauged.
The private construction in October 2024 increased 0.7% month-over-month and 5.1% from the past year. Under private construction, residential construction increased 1.5% from the previous month and 6.4% year over year, primarily backed by increased new single-family housing construction compared with new multi-family. Furthermore, non-residential construction was down 0.3% from the prior month but up 3.5% from last year.
The public construction spending during the month inched down 0.5% compared to September but increased 4.5% year over year. The month-over-month decrease was due to a 0.5% decline in both residential and non-residential construction. On a year-over-year basis, residential and non-residential activity was up 6.4% and 4.5%, respectively.
Key Growth Drivers of the Construction Sector
The recent move by the Fed to cut down interest rate after maintaining it at a benchmark of 5.25% to 5.50% since mid-2023 and the expectations of further rate cuts through 2025 have acted as catalysts in boosting the market’s construction activity.
Considering residential construction, the 30-year fixed-rate mortgage of 6.08% at September 2024-end fostered by the rate cuts aided the numbers to increase in October despite the still high inflation scenario. On Oct. 17, 2024, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported builder’s confidence for newly-built single-family homes of 43 compared with 41 in September. The optimism among homebuilders regarding the upcoming year based on the possibilities of further rate cuts is backing up growth.
Now, regarding non-residential construction, the numbers were pulled down compared to September 2024 because of softness in conservation and development, sewage and waste disposal, healthcare, commercial and highway and street. However, when compared year over year, the growth is visible from the numbers backed by strong demand trends in infrastructure modernization, energy transition, health care, public safety and manufacturing. Also, increased spending for carbon/ESG-related projects to pursue carbon capture and storage work bodes well.
The Zacks Construction sector has risen 29.8% so far this year compared with the S&P 500 Index’s 26.7% rally.
Top 5 Construction Stocks to Buy
EMCOR: The company is the leading provider of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The stock has surged 134.4% so far this year. EME presently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for EME’s 2025 sales and earnings per share (EPS) indicates 6.6% and 7.2% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 32.3%.
MasTec: This is the leading infrastructure construction company operating mainly throughout North America. The stock has surged 87.6% in the year-to-date period. MTZ presently sports a Zacks Rank of 1.
The consensus estimate for MTZ’s 2025 sales and EPS indicates 8.6% and 45.5% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 40.2%.
Comfort Systems: Shares of this building and service provider for mechanical, electrical, and plumbing building systems have soared 138% so far this year. It currently sports a Zacks Rank of 1.
The consensus estimate for FIX’s 2025 sales and EPS indicates 7.9% and 20.8% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.7%.
Sterling Infrastructure: Shares of this Texas-based infrastructure services provider of e-infrastructure solutions, building solutions, and transportation solutions have surged 121% in the year-to-date period. It presently flaunts a Zacks Rank of 1.
The consensus estimate for STRL’s 2025 sales and EPS indicates 7.3% and 8.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 21.5%.
Acuity Brands: Shares of this Atlanta-based manufacturer and distributor of lighting fixtures and related components have rallied 57.2% so far this year. AYI presently carries a Zacks Rank of 2.
The consensus estimate for AYI’s fiscal 2025 sales and EPS indicates 4.7% and 7.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.2%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights EMCOR, MasTec, Comfort Systems, Sterling Infrastructure and Acuity Brands
For Immediate Release
Chicago, IL – December 4, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: EMCOR Group, Inc. (EME - Free Report) , MasTec, Inc. (MTZ - Free Report) , Comfort Systems USA, Inc. (FIX - Free Report) , Sterling Infrastructure, Inc. (STRL - Free Report) and Acuity Brands, Inc. (AYI - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Construction Stocks to Explore on Increased Spending
According to a recent report by the U.S. Census Bureau, construction activity in the country has been gaining momentum since July 2024. The October 2024 data shows that construction activity was driven by increased residential construction spending month over month and year over year. Although non-residential construction spending during the month was down from September 2024, it was up year over year.
Residential construction witnessed an uptick of 1.5% from September 2024 and 6.4% year over year thanks to increased homebuilder’s confidence and easing inflation. Non-residential construction in October inched down 0.4% from the previous month but gained 3.9% year over year. The non-residential construction was pulled up by increased activity in public safety, amusement and recreation, water supply, manufacturing, office, healthcare, and education.
Based on the trends and numbers mentioned above, it will be wise to invest in a few of the construction stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy), including EMCOR Group, Inc., MasTec, Inc., Comfort Systems USA, Inc., Sterling Infrastructure, Inc. and Acuity Brands, Inc.. You can see the complete list of today’s Zacks #1 Rank stocks here.
Knowing the Numbers
Construction activity spending can be understood better when private and public construction is gauged.
The private construction in October 2024 increased 0.7% month-over-month and 5.1% from the past year. Under private construction, residential construction increased 1.5% from the previous month and 6.4% year over year, primarily backed by increased new single-family housing construction compared with new multi-family. Furthermore, non-residential construction was down 0.3% from the prior month but up 3.5% from last year.
The public construction spending during the month inched down 0.5% compared to September but increased 4.5% year over year. The month-over-month decrease was due to a 0.5% decline in both residential and non-residential construction. On a year-over-year basis, residential and non-residential activity was up 6.4% and 4.5%, respectively.
Key Growth Drivers of the Construction Sector
The recent move by the Fed to cut down interest rate after maintaining it at a benchmark of 5.25% to 5.50% since mid-2023 and the expectations of further rate cuts through 2025 have acted as catalysts in boosting the market’s construction activity.
Considering residential construction, the 30-year fixed-rate mortgage of 6.08% at September 2024-end fostered by the rate cuts aided the numbers to increase in October despite the still high inflation scenario. On Oct. 17, 2024, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported builder’s confidence for newly-built single-family homes of 43 compared with 41 in September. The optimism among homebuilders regarding the upcoming year based on the possibilities of further rate cuts is backing up growth.
Now, regarding non-residential construction, the numbers were pulled down compared to September 2024 because of softness in conservation and development, sewage and waste disposal, healthcare, commercial and highway and street. However, when compared year over year, the growth is visible from the numbers backed by strong demand trends in infrastructure modernization, energy transition, health care, public safety and manufacturing. Also, increased spending for carbon/ESG-related projects to pursue carbon capture and storage work bodes well.
The Zacks Construction sector has risen 29.8% so far this year compared with the S&P 500 Index’s 26.7% rally.
Top 5 Construction Stocks to Buy
EMCOR: The company is the leading provider of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The stock has surged 134.4% so far this year. EME presently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for EME’s 2025 sales and earnings per share (EPS) indicates 6.6% and 7.2% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 32.3%.
MasTec: This is the leading infrastructure construction company operating mainly throughout North America. The stock has surged 87.6% in the year-to-date period. MTZ presently sports a Zacks Rank of 1.
The consensus estimate for MTZ’s 2025 sales and EPS indicates 8.6% and 45.5% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 40.2%.
Comfort Systems: Shares of this building and service provider for mechanical, electrical, and plumbing building systems have soared 138% so far this year. It currently sports a Zacks Rank of 1.
The consensus estimate for FIX’s 2025 sales and EPS indicates 7.9% and 20.8% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.7%.
Sterling Infrastructure: Shares of this Texas-based infrastructure services provider of e-infrastructure solutions, building solutions, and transportation solutions have surged 121% in the year-to-date period. It presently flaunts a Zacks Rank of 1.
The consensus estimate for STRL’s 2025 sales and EPS indicates 7.3% and 8.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 21.5%.
Acuity Brands: Shares of this Atlanta-based manufacturer and distributor of lighting fixtures and related components have rallied 57.2% so far this year. AYI presently carries a Zacks Rank of 2.
The consensus estimate for AYI’s fiscal 2025 sales and EPS indicates 4.7% and 7.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.2%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.