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.
3 Heavy Construction Stocks to Buy From Infrastructure Upswing
Read MoreHide Full Article
The Zacks Building Products - Heavy Construction industry is riding a strong growth wave, supported by a generational infrastructure push that’s reshaping America’s physical and digital backbone. The federal government’s aggressive spending on transportation, broadband expansion and clean energy initiatives has created a deep and durable pipeline of projects. Meanwhile, the explosive growth of data centers is adding another powerful tailwind, boosting demand for sophisticated civil and electrical infrastructure.
Amid this ongoing transformation, established players such as EMCOR Group (EME - Free Report) , MasTec (MTZ - Free Report) and Dycom Industries (DY - Free Report) continue to shine. Their broad service offerings, deep technical expertise and disciplined project execution position them to lead the next leg of industry expansion. The heavy construction sector is steadily gaining ground despite macroeconomic challenges like persistent inflation, tariffs, high interest rates and labor constraints. While near-term headwinds persist, the long-term growth narrative for the industry remains firmly intact.
Industry Description
The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure as well as building service providers. This industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. The companies serve commercial, industrial, utility and institutional clients. The industry players are engaged in the engineering, construction and maintenance of communications infrastructure, oil and natural gas pipelines, as well as processing facilities for energy and utility industries. These firms are also engaged in mining and dredging services in the United States and internationally.
4 Trends Shaping the Future of the Heavy Construction Industry
U.S. Administration’s Infrastructural Endeavor: The U.S. administration’s ambitious infrastructure plan, aimed at creating modern, sustainable infrastructure and a cleaner future, is set to have significant implications for the economy and the construction industry over the next five years. This comprehensive initiative includes accelerated investments across diverse areas such as roads, bridges, green spaces, water systems, electricity grids, and universal broadband. By laying the groundwork for sustainable growth, the plan seeks to mitigate the effects of climate change and enhance public health, ensuring access to clean air and water. This expansive infrastructure agenda could be a major boost for companies involved in construction and related sectors.
The data center boom is fueling growth for U.S. heavy construction firms by driving demand for large-scale site development, power infrastructure, and specialized mechanical systems. These long-term, high-value projects enhance backlog visibility, regional expansion, and margin performance, particularly for companies with technical expertise and national execution capabilities. Overall, the data center boom, fueled by AI and digital infrastructure needs, is reshaping the U.S. heavy construction landscape, favoring firms with technical expertise, national reach, and the ability to execute high-value, mission-critical infrastructure.
Strong Prospects in Telecommunication: The ramp-up of projects related to 5G has been a silver lining for the industry players. The increased demand from telecom customers for wireline networks, wireless/wireline converged networks and wireless networks using 5G technologies has been benefiting industry players. Construction work for communications is expected to pick up on huge investments in network expansion. Also, the industry is poised to gain from a significant number of project awards across multiple segments, including communications, health care, transmission and power, along with infrastructural projects in domestic and international markets.
Solid Inorganic Moves & Renewable Business Prospects: Acquisitions have been companies’ preferred mode of solidifying product portfolios and leveraging new business opportunities. Again, due to increased renewable project activity and the expansion of services in biomass and other smaller production facilities, the power generation and industrial construction market is poised to see sizable growth. The companies are well-positioned to gain from the renewable energy drive of the pro-environmental Biden administration. The development and deployment of technology solutions across the full spectrum of decarbonization efforts, comprising all facets of infrastructure for providing carbon-free energy solutions, should benefit the companies going forward.
Macroeconomic Challenges: The biggest headwinds for the industry players are centered around macroeconomic challenges and labor availability. In addition to a tight labor market, a rise in raw material costs is a concern. Meanwhile, the businesses of the industry players are susceptible to the cyclical nature of the markets in which clients operate and are dependent on the timing and funding of new awards. Hence, volatility in credits and operating risks associated with economic downturns are pressing concerns. Presently, the macro environment is marked by economic and policy uncertainty, including potential shifts in interest rates, inflation and lingering volatility in equity markets—all of which can raise the companies' borrowing costs. The industry players have been specifically citing concerns around evolving tariff and trade policies—such as anti-dumping duties on Chinese imports—that could affect materials pricing and project economics. The companies remain sensitive to changes in customer capital expenditure budgets and regulatory frameworks.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Building Products - Heavy Construction industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since July 2025, the industry’s earnings estimates for 2025 have increased to $6.52 per share from $5.90.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector & the S&P 500
The Zacks Building Products - Heavy Construction industry has performed better than the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.
Stocks in this industry have collectively gained 51.5% against the broader sector’s 3.2% decline. Meanwhile, the S&P 500 has jumped 18.5% in the said period.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing heavy construction stocks, the industry is currently trading at 23.47 versus the S&P 500’s 23.55 and the sector’s 19.98.
Over the past five years, the industry has traded as high as 23.47X, as low as 10.53X and at a median of 16.38X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
3 Heavy Construction Stocks to Buy Now
Here, we have discussed three stocks from the industry that have solid growth potential.
EMCOR: Based in Norwalk, CT, EMCOR delivers electrical, mechanical, and facilities services across the United States and the U.K. EMCOR’s record backlog, solid execution, and presence in high-growth sectors provide a strong foundation for future growth. Its disciplined approach to capital allocation, seamless integration of Miller Electric and expertise in complex electrical and mechanical contracting continue to strengthen its market leadership. With robust earnings momentum, strong cash generation, and steady demand from infrastructure, healthcare, and data center projects, EMCOR remains a compelling long-term investment for investors seeking exposure to the expanding U.S. nonresidential construction and infrastructure cycle.
EMCOR, currently carrying a Zacks Rank #2 (Buy), has gained 54.9% over the past year. Earnings estimates for 2025 have increased to $25.19 per share over the past 30 days from $25.11. Earnings for 2025 are expected to grow 17.1% from a year ago. EME surpassed earnings estimates in all the trailing four quarters, with the average surprise being 16.8%.
MasTec: Based in Coral Gables, FL, this is a leading infrastructure construction company operating mainly throughout North America. MasTec’s growth is fueled by robust demand across communications, clean energy, power delivery, and pipelines. The company is benefiting from nationwide broadband expansion, AI data center buildouts and renewable energy investments supported by extended tax credits through 2027. Utilities’ heavy grid modernization spending and resurgent natural gas infrastructure further strengthen its multi-segment momentum. Communications revenue is soaring on record fiber deployment, while renewables and power delivery add stability and margin expansion. With backlog up 23% year over year and EPS expected to jump 60% in 2025, MasTec is positioned for sustained double-digit growth driven by infrastructure megatrends.
MasTec, currently carrying a Zacks Rank #2, has gained 69.4% over the past year. Earnings estimates for 2025 have remained unchanged at $6.32 per share over the past 60 days. Yet, earnings for 2025 are expected to grow a solid 60% from a year ago. MTZ surpassed earnings estimates in all the trailing four quarters, with the average surprise being 25.2%. Again, it carries an impressive VGM Score of A.
Price and Consensus: MTZ
Dycom Industries: Headquartered in Palm Beach Gardens, FL, this is a specialty contracting firm operating in the telecom industry. The company is capitalizing on multi-year investments in broadband and AI-driven digital infrastructure, including $90-plus billion in state and federal programs and surging hyperscaler spending. Dycom's growth has been propelled by the increasing need for telecommunications infrastructure. As leading telecom providers accelerate investments in 5G networks and fiber-optic deployment, Dycom has established itself as a key partner in developing these high-speed networks. The surge in demand for fiber-to-the-home deployments, increased service and maintenance activity, and expanding digital infrastructure work, particularly with hyperscalers, have been major contributors to Dycom's financial success, as reflected in its recent earnings reports.
Dycom, currently carrying a Zacks Rank #2, has gained 49% over the past year. Earnings estimates for fiscal 2026 have increased to $10.01 per share from $9.91 over the past 60 days. DY surpassed earnings estimates in all the trailing four quarters, with the average surprise being 22.4%.
Price and Consensus: DY
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Heavy Construction Stocks to Buy From Infrastructure Upswing
The Zacks Building Products - Heavy Construction industry is riding a strong growth wave, supported by a generational infrastructure push that’s reshaping America’s physical and digital backbone. The federal government’s aggressive spending on transportation, broadband expansion and clean energy initiatives has created a deep and durable pipeline of projects. Meanwhile, the explosive growth of data centers is adding another powerful tailwind, boosting demand for sophisticated civil and electrical infrastructure.
Amid this ongoing transformation, established players such as EMCOR Group (EME - Free Report) , MasTec (MTZ - Free Report) and Dycom Industries (DY - Free Report) continue to shine. Their broad service offerings, deep technical expertise and disciplined project execution position them to lead the next leg of industry expansion. The heavy construction sector is steadily gaining ground despite macroeconomic challenges like persistent inflation, tariffs, high interest rates and labor constraints. While near-term headwinds persist, the long-term growth narrative for the industry remains firmly intact.
Industry Description
The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure as well as building service providers. This industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. The companies serve commercial, industrial, utility and institutional clients. The industry players are engaged in the engineering, construction and maintenance of communications infrastructure, oil and natural gas pipelines, as well as processing facilities for energy and utility industries. These firms are also engaged in mining and dredging services in the United States and internationally.
4 Trends Shaping the Future of the Heavy Construction Industry
U.S. Administration’s Infrastructural Endeavor: The U.S. administration’s ambitious infrastructure plan, aimed at creating modern, sustainable infrastructure and a cleaner future, is set to have significant implications for the economy and the construction industry over the next five years. This comprehensive initiative includes accelerated investments across diverse areas such as roads, bridges, green spaces, water systems, electricity grids, and universal broadband. By laying the groundwork for sustainable growth, the plan seeks to mitigate the effects of climate change and enhance public health, ensuring access to clean air and water. This expansive infrastructure agenda could be a major boost for companies involved in construction and related sectors.
The data center boom is fueling growth for U.S. heavy construction firms by driving demand for large-scale site development, power infrastructure, and specialized mechanical systems. These long-term, high-value projects enhance backlog visibility, regional expansion, and margin performance, particularly for companies with technical expertise and national execution capabilities. Overall, the data center boom, fueled by AI and digital infrastructure needs, is reshaping the U.S. heavy construction landscape, favoring firms with technical expertise, national reach, and the ability to execute high-value, mission-critical infrastructure.
Strong Prospects in Telecommunication: The ramp-up of projects related to 5G has been a silver lining for the industry players. The increased demand from telecom customers for wireline networks, wireless/wireline converged networks and wireless networks using 5G technologies has been benefiting industry players. Construction work for communications is expected to pick up on huge investments in network expansion. Also, the industry is poised to gain from a significant number of project awards across multiple segments, including communications, health care, transmission and power, along with infrastructural projects in domestic and international markets.
Solid Inorganic Moves & Renewable Business Prospects: Acquisitions have been companies’ preferred mode of solidifying product portfolios and leveraging new business opportunities. Again, due to increased renewable project activity and the expansion of services in biomass and other smaller production facilities, the power generation and industrial construction market is poised to see sizable growth. The companies are well-positioned to gain from the renewable energy drive of the pro-environmental Biden administration. The development and deployment of technology solutions across the full spectrum of decarbonization efforts, comprising all facets of infrastructure for providing carbon-free energy solutions, should benefit the companies going forward.
Macroeconomic Challenges: The biggest headwinds for the industry players are centered around macroeconomic challenges and labor availability. In addition to a tight labor market, a rise in raw material costs is a concern. Meanwhile, the businesses of the industry players are susceptible to the cyclical nature of the markets in which clients operate and are dependent on the timing and funding of new awards. Hence, volatility in credits and operating risks associated with economic downturns are pressing concerns. Presently, the macro environment is marked by economic and policy uncertainty, including potential shifts in interest rates, inflation and lingering volatility in equity markets—all of which can raise the companies' borrowing costs. The industry players have been specifically citing concerns around evolving tariff and trade policies—such as anti-dumping duties on Chinese imports—that could affect materials pricing and project economics. The companies remain sensitive to changes in customer capital expenditure budgets and regulatory frameworks.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Building Products - Heavy Construction industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since July 2025, the industry’s earnings estimates for 2025 have increased to $6.52 per share from $5.90.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector & the S&P 500
The Zacks Building Products - Heavy Construction industry has performed better than the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.
Stocks in this industry have collectively gained 51.5% against the broader sector’s 3.2% decline. Meanwhile, the S&P 500 has jumped 18.5% in the said period.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing heavy construction stocks, the industry is currently trading at 23.47 versus the S&P 500’s 23.55 and the sector’s 19.98.
Over the past five years, the industry has traded as high as 23.47X, as low as 10.53X and at a median of 16.38X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
3 Heavy Construction Stocks to Buy Now
Here, we have discussed three stocks from the industry that have solid growth potential.
EMCOR: Based in Norwalk, CT, EMCOR delivers electrical, mechanical, and facilities services across the United States and the U.K. EMCOR’s record backlog, solid execution, and presence in high-growth sectors provide a strong foundation for future growth. Its disciplined approach to capital allocation, seamless integration of Miller Electric and expertise in complex electrical and mechanical contracting continue to strengthen its market leadership. With robust earnings momentum, strong cash generation, and steady demand from infrastructure, healthcare, and data center projects, EMCOR remains a compelling long-term investment for investors seeking exposure to the expanding U.S. nonresidential construction and infrastructure cycle.
EMCOR, currently carrying a Zacks Rank #2 (Buy), has gained 54.9% over the past year. Earnings estimates for 2025 have increased to $25.19 per share over the past 30 days from $25.11. Earnings for 2025 are expected to grow 17.1% from a year ago. EME surpassed earnings estimates in all the trailing four quarters, with the average surprise being 16.8%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: EME
MasTec: Based in Coral Gables, FL, this is a leading infrastructure construction company operating mainly throughout North America. MasTec’s growth is fueled by robust demand across communications, clean energy, power delivery, and pipelines. The company is benefiting from nationwide broadband expansion, AI data center buildouts and renewable energy investments supported by extended tax credits through 2027. Utilities’ heavy grid modernization spending and resurgent natural gas infrastructure further strengthen its multi-segment momentum. Communications revenue is soaring on record fiber deployment, while renewables and power delivery add stability and margin expansion. With backlog up 23% year over year and EPS expected to jump 60% in 2025, MasTec is positioned for sustained double-digit growth driven by infrastructure megatrends.
MasTec, currently carrying a Zacks Rank #2, has gained 69.4% over the past year. Earnings estimates for 2025 have remained unchanged at $6.32 per share over the past 60 days. Yet, earnings for 2025 are expected to grow a solid 60% from a year ago. MTZ surpassed earnings estimates in all the trailing four quarters, with the average surprise being 25.2%. Again, it carries an impressive VGM Score of A.
Price and Consensus: MTZ
Dycom Industries: Headquartered in Palm Beach Gardens, FL, this is a specialty contracting firm operating in the telecom industry. The company is capitalizing on multi-year investments in broadband and AI-driven digital infrastructure, including $90-plus billion in state and federal programs and surging hyperscaler spending. Dycom's growth has been propelled by the increasing need for telecommunications infrastructure. As leading telecom providers accelerate investments in 5G networks and fiber-optic deployment, Dycom has established itself as a key partner in developing these high-speed networks. The surge in demand for fiber-to-the-home deployments, increased service and maintenance activity, and expanding digital infrastructure work, particularly with hyperscalers, have been major contributors to Dycom's financial success, as reflected in its recent earnings reports.
Dycom, currently carrying a Zacks Rank #2, has gained 49% over the past year. Earnings estimates for fiscal 2026 have increased to $10.01 per share from $9.91 over the past 60 days. DY surpassed earnings estimates in all the trailing four quarters, with the average surprise being 22.4%.
Price and Consensus: DY