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.
Welcome to Episode #431 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Stocks are selling off after the start of the Iran War has brought uncertainty back to the markets. Oil has spiked over $90 a barrel on the near closure of the Strait of Hormuz which has caused traders to get jittery.
Is this a short-term event, or will it drag on for months?
There is uncertainty.
That means it’s a good time for value investors to look for buying opportunities in stocks. In times of high volatility, most stocks tend to sell off. Why not get your favorite stocks on sale?
The AI Infrastructure Companies are on Sale
The AI infrastructure companies posted strong fourth quarter and 2025 earnings, and most have guided higher for 2026. The hyperscalers are spending over $500 billion this year on building out the infrastructure for AI. The AI infrastructure companies are going to be among the beneficiaries.
They are involved in many different areas of the AI universe. These companies are building the data centers, providing products for power generation, making racks to hold the chips in the data centers, and are cooling the data centers.
Shares of many of these companies were trading at 5-year highs recently. But valuations were stretched. None of the AI infrastructure companies are “cheap” on a P/E or P/S ratio basis.
But this sell-off has made them more attractive. They are on sale. Now is the time for value investors to take a look.
Everus Construction Group is “building America’s future.” It is involved in electrical and communication wiring and infrastructure as well as electrical transmission and distribution projects.
Shares of Everus have fallen further since the podcast was recorded on Wednesday, Mar 4, 2026. Everus is down 9.1% in the last 5 days but remains up 178% over the last year.
It has gotten cheaper on a price-to-earnings (P/E) basis. Everus now trades with a forward P/E of 27. Earnings are expected to rise 5.3% in 2026 and 7% in 2027.
Sterling Infrastructure provides development services in E-Infrastructure, Transportation and Building Solutions including for e-commerce warehouses and data centers. Earnings are expected to jump 25.8% in 2026 and another 15% in 2027.
Shares of Sterling have pulled back 9.4% over the last 5 days and are now in the $300s. On the podcast, Tracey said she would be a buyer if the shares went into the $300s. Over the last year, Sterling has gained 225%.
The valuation is still attractive. Sterling trades with a forward P/E of 29.
Is it time for value investors to buy a development services company like Sterling?
Flowserve provides flow control solutions and products for the global infrastructure markets, which includes power generation companies. It traces its heritage back to 1790.
Shares of Flowserve fell 12.4% over the last 5 sessions but are still up 56% in the last year. Flowserve has gotten cheaper on a P/E basis due to the pull back. It now trades with a forward P/E under 20, at 19.8. At the time of the recording of the podcast, it was not below 20.
Earnings are expected to rise 12.9% in 2026 and another 13.6% in 2027. Flowserve is shareholder friendly. It just raised its dividend 5%. It currently yields 1%.
Is this a buying opportunity in Flowserve?
What Else Should You Know About the AI Infrastructure Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns STRL in Zacks Value Investor portfolio and her own personal portfolio.]
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
3 AI Infrastructure Stocks on Sale
Key Takeaways
Welcome to Episode #431 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Stocks are selling off after the start of the Iran War has brought uncertainty back to the markets. Oil has spiked over $90 a barrel on the near closure of the Strait of Hormuz which has caused traders to get jittery.
Is this a short-term event, or will it drag on for months?
There is uncertainty.
That means it’s a good time for value investors to look for buying opportunities in stocks. In times of high volatility, most stocks tend to sell off. Why not get your favorite stocks on sale?
The AI Infrastructure Companies are on Sale
The AI infrastructure companies posted strong fourth quarter and 2025 earnings, and most have guided higher for 2026. The hyperscalers are spending over $500 billion this year on building out the infrastructure for AI. The AI infrastructure companies are going to be among the beneficiaries.
They are involved in many different areas of the AI universe. These companies are building the data centers, providing products for power generation, making racks to hold the chips in the data centers, and are cooling the data centers.
Shares of many of these companies were trading at 5-year highs recently. But valuations were stretched. None of the AI infrastructure companies are “cheap” on a P/E or P/S ratio basis.
But this sell-off has made them more attractive. They are on sale. Now is the time for value investors to take a look.
3 AI Infrastructure Stocks on Sale
1. Everus Construction Group (ECG - Free Report)
Everus Construction Group is “building America’s future.” It is involved in electrical and communication wiring and infrastructure as well as electrical transmission and distribution projects.
Shares of Everus have fallen further since the podcast was recorded on Wednesday, Mar 4, 2026. Everus is down 9.1% in the last 5 days but remains up 178% over the last year.
It has gotten cheaper on a price-to-earnings (P/E) basis. Everus now trades with a forward P/E of 27. Earnings are expected to rise 5.3% in 2026 and 7% in 2027.
Is it time for value investors to buy Everus?
2. Sterling Infrastructure, Inc. (STRL - Free Report)
Sterling Infrastructure provides development services in E-Infrastructure, Transportation and Building Solutions including for e-commerce warehouses and data centers. Earnings are expected to jump 25.8% in 2026 and another 15% in 2027.
Shares of Sterling have pulled back 9.4% over the last 5 days and are now in the $300s. On the podcast, Tracey said she would be a buyer if the shares went into the $300s. Over the last year, Sterling has gained 225%.
The valuation is still attractive. Sterling trades with a forward P/E of 29.
Is it time for value investors to buy a development services company like Sterling?
3. Flowserve Corp. (FLS - Free Report)
Flowserve provides flow control solutions and products for the global infrastructure markets, which includes power generation companies. It traces its heritage back to 1790.
Shares of Flowserve fell 12.4% over the last 5 sessions but are still up 56% in the last year. Flowserve has gotten cheaper on a P/E basis due to the pull back. It now trades with a forward P/E under 20, at 19.8. At the time of the recording of the podcast, it was not below 20.
Earnings are expected to rise 12.9% in 2026 and another 13.6% in 2027. Flowserve is shareholder friendly. It just raised its dividend 5%. It currently yields 1%.
Is this a buying opportunity in Flowserve?
What Else Should You Know About the AI Infrastructure Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns STRL in Zacks Value Investor portfolio and her own personal portfolio.]