Balfour Beatty (BLFBY) and Vinci (VCISY) have emerged as top-performing stocks in the construction sector, with increases of over 40% this year, significantly outperforming the broader index return of 2%. These companies, based in the UK with operations across Europe and North America, are positioned to benefit from peak construction activity during summer.
Both firms have raised their dividends, offering yields of 2.58% for Balfour Beatty and 3.97% for Vinci, surpassing the S&P 500 average of 1.23%. Their valuations remain attractive, trading below 15X forward earnings, compared to the S&P’s 23.2X. Earnings estimates also show positive growth, with Balfour Beatty expecting a 14% increase in FY26 EPS to $1.36, while Vinci projects a 13% rise to $2.75 for the same period.
Recent strategic acquisitions support their growth; Balfour Beatty’s purchase of a 300-unit community in Texas and Vinci’s acquisition of Peters Bros Construction in British Columbia enhance their market presence. These factors position both companies as appealing options for long-term investment.
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