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Optimistic Outlook for Construction Sector Titans

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Zacks Construction Sector Highlights

Diving into the Zacks Construction sector reveals a goldmine of opportunity, with 15 stocks proudly flaunting the coveted Zacks Rank #1 (Strong Buy) badge.

Bolstered by robust business industries, here stand three exemplary titans in the construction sector that recently earned their spot on the Strong Buy list.

Heating Up the Industry: Comfort Systems USA

Comfort Systems USA, a key player in the Zacks Building Products-Air Conditioner and Heating Industry, currently basks in the glory of being in the top 2% among over 250 Zacks industries.

With a meteoric rise of +54% year-to-date and a staggering +125% surge over the past year, Comfort Systems has emerged as a national juggernaut in providing comprehensive heating, ventilation, and air conditioning services.

Forecasted to witness a 30% hike in annual earnings in FY24, up to $11.42 per share from last year’s $8.74, the future looks even brighter with an additional 13% leap expected in FY25. Trading at a modest 27.5X forward earnings, Comfort Systems offers a tempting investment, especially with competitors like Lennox International and Watsco dominating the space.

Zacks Investment Research

Image Source: Zacks Investment Research

Building the Future: CRH

CRH, a stalwart in the Zacks Building Products-Miscellaneous Industry, proudly boasts its position in the top 3% of all Zacks industries. The company, specializing in manufacturing cement, concrete products, aggregates, roofing, insulation, and other building materials, continues its strong performance with a +22% surge YTD and an impressive +68% uptick over the past year.

Sporting an attractive 15.8X forward earnings multiple, well below the industry average and the S&P 500, CRH is set to witness a 15% earnings boost this year. Projections suggest an additional 8% rise in FY25 to reach $5.79 per share, making it an appealing investment prospect in the construction sector.

Zacks Investment Research

Image Source: Zacks Investment Research

Rising Above: Armstrong World Industries

Armstrong World Industries, a key player in the Zacks Building Products-Miscellaneous Industry, has seen its stock soar by +24% in 2024. As a pioneer in providing ceiling systems for construction and renovation projects globally, Armstrong World Industries boasts an impressive +78% surge over the past year.

Trading at a reasonable 20.9X forward earnings multiple, in line with the industry average but below the benchmark, Armstrong World Industries projects an 8% rise in annual earnings for both FY24 and FY25, positioning itself strongly in the market.

Zacks Investment Research

Image Source: Zacks Investment Research

Explosive Opportunities Ahead

Earnings estimate revisions for these top construction sector stocks have been on the rise, indicating a promising trajectory in their price performance. With attractive P/E valuations, the time is ripe for savvy investors to seize their position in these flourishing companies.

Zacks Names #1 Semiconductor Stock

It’s only 1/9,000th the size of NVIDIA, which has skyrocketed over +800% since its recommendation. While NVIDIA remains a robust player, the top chip stock identified by Zacks shows tremendous growth potential. With a focus on Artificial Intelligence, Machine Learning, and Internet of Things, this stock stands to benefit from the massive surge projected in the global semiconductor manufacturing sector, expected to reach $803 billion by 2028 from $452 billion in 2021.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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