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3 Top-Ranked AI Construction Stocks With Double-Digit Near-Term Upside
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Key Takeaways
FIX backlog jumped 80.8% year over year as AI-driven data center demand boosted HVAC activity.
STRL expects 2026 revenues of $3.70B-$3.80B as AI data center projects fuel growth.
PWR raised 2026 guidance and posted record $48.5B backlog tied to power and data centers.
The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.
Four major hyperscalers have decided to invest a massive $725 billion in 2026 as capital expenditure for AI-powered data center infrastructure development, higher than the $670 billion estimated earlier.
Here, we have narrowed our search to three Zacks top-ranked AI-powered construction giants that have posted solid first-quarter 2026 earnings results and guidance. These stocks have skyrocketed year to date, yet they have double-digit upside potential for the short term.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Comfort Systems USA Inc.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.
The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units.
This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Strong Guidance
The last reported quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers. Management highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets.
Backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion at Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago. On a same-store basis, backlog climbed to $12.21 billion from $6.89 billion in the year-ago period.
Solid Estimate Revisions and Price Upside
Comfort Systems USA has an expected revenue and earnings growth rate of 30.7% and 48%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 17% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 13.7% from the last closing price of $1,828.25. The brokerage target price is currently in the range of $1,910-$2,518. This indicates a maximum upside of 37.7% and no downside. The risk/reward ratio is extremely favorable.
Sterling Infrastructure Inc.
Sterling Infrastructure operates in E-Infrastructure, Building and Transportation Solutions principally in the United States, across the South, Northeast, Mid-Atlantic and the Rocky Mountain States, California and Hawaii.
STRL specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Building Solutions projects include residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs and other concrete work. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail, water, wastewater and storm drainage systems.
Strong Guidance
STRL projected 2026 total revenues in the range of $3.70-$3.80 billion. Adjusted net income will be around $572-592 million. Adjusted EPS is likely to be in the range of $18.40 to $19.05. Adjusted EBITDA will be around $843-$873 million.
Solid Estimate Revisions and Price Upside
Sterling Infrastructure has an expected revenue and earnings growth rate of 47.4% and 63.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 29% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 24.6% from the last closing price of $732.94. The brokerage target price is currently in the range of $875-$956. This indicates a maximum upside of 30.4% and no downside. The risk/reward ratio is extremely favorable.
Quanta Services Inc.
Quanta Services’ mix across transmission and distribution, grid hardening, renewable integration and generation gives it multiple paths to participate as those plans become multi-year capital programs. Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy.
PWR achieved a record total backlog of $48.5 billion as of March 31, 2026, providing a clear and durable runway for long-term growth. This record includes a 12-month backlog of $28.2 billion and remaining performance obligations of $26.2 billion. The Electric Power Infrastructure Services segment accounted for $40.1 billion of the total backlog.
PWR is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. The company expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.
Strong Guidance
PWR raised full-year 2026 expectations. Quanta now forecasts consolidated revenues of $34.7-$35.2 billion (compared with the prior expectations of $33.25 billion-$33.75 billion) and adjusted EPS of $13.55-$14.25 (compared with the earlier projection of $12.65–$13.35). Adjusted EBITDA is projected in the range of $3.49-$3.65 billion, up from the earlier expectation of $3.34-3.50 billion.
On a segment basis, Electric Infrastructure Solutions is expected to generate $28.2-$28.5 billion of revenues with an operating income margin of 10.1-10.5%, while Underground Utility and Infrastructure Solutions is projected to deliver $6.50-$6.70 billion of revenue with an operating margin of about 8.25-8.5%. PWR also reaffirmed free cash flow expectations of $1.55-$2.05 billion for 2026.
Solid Estimate Revisions and Price Upside
Quanta Services has an expected revenue and earnings growth rate of 21.4% and 29.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.1% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 11.2% from the last closing price of $723.44. The brokerage target price is currently in the range of $693-$901. This indicates a maximum upside of 24.5% and a downside of 4.2%. The risk/reward ratio is 1:5.8.
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3 Top-Ranked AI Construction Stocks With Double-Digit Near-Term Upside
Key Takeaways
The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.
Four major hyperscalers have decided to invest a massive $725 billion in 2026 as capital expenditure for AI-powered data center infrastructure development, higher than the $670 billion estimated earlier.
Here, we have narrowed our search to three Zacks top-ranked AI-powered construction giants that have posted solid first-quarter 2026 earnings results and guidance. These stocks have skyrocketed year to date, yet they have double-digit upside potential for the short term.
These stocks are: Comfort Systems USA Inc. (FIX - Free Report) , Sterling Infrastructure Inc. (STRL - Free Report) and Quanta Services Inc. (PWR - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Comfort Systems USA Inc.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.
The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units.
This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Strong Guidance
The last reported quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers. Management highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets.
Backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion at Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago. On a same-store basis, backlog climbed to $12.21 billion from $6.89 billion in the year-ago period.
Solid Estimate Revisions and Price Upside
Comfort Systems USA has an expected revenue and earnings growth rate of 30.7% and 48%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 17% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 13.7% from the last closing price of $1,828.25. The brokerage target price is currently in the range of $1,910-$2,518. This indicates a maximum upside of 37.7% and no downside. The risk/reward ratio is extremely favorable.
Sterling Infrastructure Inc.
Sterling Infrastructure operates in E-Infrastructure, Building and Transportation Solutions principally in the United States, across the South, Northeast, Mid-Atlantic and the Rocky Mountain States, California and Hawaii.
STRL specializes in constructing complex data centers, e-commerce distribution facilities, and manufacturing sites. The company is a major provider of high-density, AI-Powered data centers. STRL is a notable beneficiary of the massive AI data center boom.
E-Infrastructure Solutions projects develop advanced, large-scale site development systems and services for data centers, e-commerce distribution centers, warehousing, transportation, energy and more.
Building Solutions projects include residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs and other concrete work. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail, water, wastewater and storm drainage systems.
Strong Guidance
STRL projected 2026 total revenues in the range of $3.70-$3.80 billion. Adjusted net income will be around $572-592 million. Adjusted EPS is likely to be in the range of $18.40 to $19.05. Adjusted EBITDA will be around $843-$873 million.
Solid Estimate Revisions and Price Upside
Sterling Infrastructure has an expected revenue and earnings growth rate of 47.4% and 63.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 29% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 24.6% from the last closing price of $732.94. The brokerage target price is currently in the range of $875-$956. This indicates a maximum upside of 30.4% and no downside. The risk/reward ratio is extremely favorable.
Quanta Services Inc.
Quanta Services’ mix across transmission and distribution, grid hardening, renewable integration and generation gives it multiple paths to participate as those plans become multi-year capital programs. Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy.
PWR achieved a record total backlog of $48.5 billion as of March 31, 2026, providing a clear and durable runway for long-term growth. This record includes a 12-month backlog of $28.2 billion and remaining performance obligations of $26.2 billion. The Electric Power Infrastructure Services segment accounted for $40.1 billion of the total backlog.
PWR is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. The company expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.
Strong Guidance
PWR raised full-year 2026 expectations. Quanta now forecasts consolidated revenues of $34.7-$35.2 billion (compared with the prior expectations of $33.25 billion-$33.75 billion) and adjusted EPS of $13.55-$14.25 (compared with the earlier projection of $12.65–$13.35). Adjusted EBITDA is projected in the range of $3.49-$3.65 billion, up from the earlier expectation of $3.34-3.50 billion.
On a segment basis, Electric Infrastructure Solutions is expected to generate $28.2-$28.5 billion of revenues with an operating income margin of 10.1-10.5%, while Underground Utility and Infrastructure Solutions is projected to deliver $6.50-$6.70 billion of revenue with an operating margin of about 8.25-8.5%. PWR also reaffirmed free cash flow expectations of $1.55-$2.05 billion for 2026.
Solid Estimate Revisions and Price Upside
Quanta Services has an expected revenue and earnings growth rate of 21.4% and 29.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.1% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 11.2% from the last closing price of $723.44. The brokerage target price is currently in the range of $693-$901. This indicates a maximum upside of 24.5% and a downside of 4.2%. The risk/reward ratio is 1:5.8.