HomeMost PopularTech StocksUnlocking the Potential of Top Construction Sector Stocks for Investor Gain

Unlocking the Potential of Top Construction Sector Stocks for Investor Gain

Actionable Trade Ideas

always free

The Rise of Construction Sector Stocks in the Zacks Rankings

Spring is the time for renewal, and for investors eyeing the construction sector, it holds the promise of growth. The Zacks Construction sector, positioned second among 16 Zacks sectors, is a beacon of hope. Many subindustries within this sector are currently basking in the glow of favorable operating conditions, poised for success.

Leading the charge is the Zacks Building Products-Home Builders Industry, residing within the top 6% of over 250 Zacks industries. The Zacks Building Products-Heavy Construction Industry and the Zacks Engineering-R and D Services Industry are also paving their way as stalwarts in the top 33% of all Zacks industries.

The Stronghold of Zacks Rank #1 Stocks in Construction

In the realm of highly-rated stocks, there is a select breed that sits atop the Zacks Rank #1 (Strong Buy) list. Among these, a few in the construction sector beckon investors with promises of growth and reasonable valuations.

The Standout: Toll Brothers

Toll Brothers, a name synonymous with luxury homes, has been a beacon of consistency amidst the tumult of the past years. Earnings have seen a meteoric rise, catapulting 207% over the last five years, surpassing industry standards. Despite a soaring stock performance of +98% in the last year, Toll Brothers’ valuation remains modest at just 8.7X forward earnings, making it an attractive proposition for discerning investors.

62245
Image Source: Zacks Investment Research

Dream Finder Homes and Century Communities join the fray with their optimistic growth prospects for FY24. Dream Finder Homes, with a remarkable +213% surge in the past year and Century Communities with a solid +47% increase, both offer double-digit growth potential for investors.

62246
Image Source: Zacks Investment Research

EMCOR Group & Sterling Infrastructure: A Tale of Expansion

Within the realms of heavy construction, EMCOR Group shines with its monumental growth trajectory. A robust 132% EPS rise over the past five years places it in a league of its own. As for Sterling Infrastructure, an E-Infrastructure solutions provider, its meteoric stock surge of +175% and projected earnings and sales growth herald a bright future in the industry.

62247
Image Source: Zacks Investment Research

Investors keen on long-term growth prospects will find solace in Sterling Infrastructure’s double-digit growth projections for FY25, coupled with its modest 22.2X forward earnings and 1.7X sales valuation.

62248
Image Source: Zacks Investment Research

The Path Forward for Investors

The allure of these construction sector stocks lies not only in their past performance but in the promising trajectory painted by earnings estimates for FY24 and FY25. With revisions trending higher, the time is ripe for investors to capitalize on these flourishing opportunities.

Zacks Names β€œSingle Best Pick to Double”

Amidst a sea of stocks, a hidden gem awaits discovery, poised to skyrocket +100% or more. With a track record of robust earnings and a promising future, this lesser-known chemical company could rival the most successful investment ventures of recent times.

This under-the-radar entity holds the potential to surpass other recent Zacks’ high flyers, making it an enticing prospect for retail investors seeking substantial returns.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research

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

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.