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Don't Overlook These Construction & Infrastructure Stocks: BLFBY, VCISY

Entering the summer, which is the peak season for construction-related activities, Balfour Beatty (BLFBY - Free Report)  and Vinci (VCISY - Free Report)  are two stocks investors will want to pay attention to.

Making their way onto the Zacks Rank #1 (Strong Buy) list, these highly ranked stocks also boast an overall “A” Zacks Style Scores grade for the combination of Value, Growth, and Momentum. Trading near 52-week highs, Balfour Beatty and Vinci stock appear to have more upside and offer generous dividends.   

 

BLFBY & VCISY Performance Overview  

With their headquarters in the United Kingdom, Balfour Beatty and Vinci have global operations that encompass much of Europe and North America, leading to steady top and bottom-line growth.

Balfour Beatty’s expansion has centered around its construction services and infrastructure investments for various real estate assets, with Vinci engaged in the construction of buildings and civil transport structures, including motorways, bridges, and airports.

Notably, Balfour Beatty and Vinci’s ADRs (American Depository Receipts) have been two of the top-performing stocks on U.S. exchanges this year, soaring over +40% respectively, to vastly outperform the broader indexes' returns of +2%.

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Strategic Expansion Efforts

Lifting investor sentiment has been Balfour Beatty's and Vinci’s strategic expansion efforts. To that point, Balfour Beatty acquired River Pointe in May, a 300-unit multifamily community in Conroe, Texas, one of the state's fastest-growing areas, near major employers and retail centers.

Similarly, Vinci has added to its expansion efforts in North America by acquiring Peters Bros Construction at the beginning of the month, strengthening its presence in Western Canada, particularly in British Columbia.  

 

Attractive P/E Valuations & EPS Revisions

Despite their very extensive rally, BLFBY and VCISY shares still trade under 15X forward earnings, offering a nice discount to the benchmark S&P 500’s 23.2X. Most intriguing and correlating with peak seasonal demand for their services is that annual earnings estimates are up for Balfour Beatty and Vinci, making their reasonable P/E valuations more attractive.

In that last week, Balfour Beatty’s fiscal 2025 EPS estimates are up 2%, with FY26 EPS estimates spiking 4%. Furthermore, Balfour Beatty’s annual earnings are currently expected to rise 9% this year and are projected to spike another 14% in FY26 to $1.36 per share.

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As for Vinci, FY25 and FY26 EPS estimates are up over 6% in the last 60 days. Although FY25 EPS projections of $2.42 would be flat from a year ago, Vinci’s annual earnings are now projected to pop 13% in FY26 to $2.75 per share.

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Balfour & Vinci’s Generous Dividends

Attributed to their stronger operational performance, Balfour Beatty and Vinci have raised their dividends this year, having enticed annual yields of 2.58% and 3.97% respectively, which impressively tops the benchmark’s average of 1.23%.

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Conclusion & Final Thoughts

Balfour Beatty and Vinci are two of the most appealing construction and infrastructure-related stocks to consider at the moment. Even better is that they are shaping up to be viable long-term investments, which has been highlighted by their strategic expansion efforts.


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