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Buy 3 AI-Led Construction Stocks Looks More Promising on Q3 Earnings
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Key Takeaways
Comfort Systems' backlog reached $17.8 billion, up 89.8% Y-O-Y as AI data center demand strengthened.
Quanta plans to invest $500-$700 million in transformer facilities, aiming to double manufacturing capacity.
Sterling's combined backlog rose 78% Y-O-Y to $6.14 billion, with E-Infra opportunities near $7 billion.
The artificial intelligence (AI) infrastructure space remains rock solid, supported by a bullish demand scenario. Here, we recommend three AI-powered construction giants with a favorable Zacks Rank that have posted solid third-quarter earnings results. These stocks have surged year to date, yet they have robust 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.
Zacks Rank #1 Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets. 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.
Growing Backlog
Comfort Systems highlighted continued strength in AI-powered data center construction, while industrial customers remained the primary growth engine. Backlog as of Sept. 30, 2026, totaled $17.8 billion, increasing 26.3% from $14.06 billion at June 30, 2026, and jumping 89.8% from $9.38 billion reported a year ago. On a same-store basis, backlog climbed to $17.4 billion from $9.4 billion in the year-ago period.
Solid Estimate Revisions
Comfort Systems has an expected revenue and earnings growth rate of 48.6% and 73.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last seven days.
FIX has an expected revenue and earnings growth rate of 23.6% and 30.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.1% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 57.8% from the last closing price of $1,285.13. The brokerage target price is currently in the range of $1,808-$2,500. This indicates a maximum upside of 94.5% and no downside.
Quanta Services Inc.
Zacks Rank #2 Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure 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. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation.
PWR 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.
Long-Term Prospects
PWR is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. Management believes that the company is still in the early stages of the current demand cycle, with larger utility-generation and technology/load center programs expected to be built over the coming years.
These favorable trends helped drive total backlog to a record $51.9 billion as of Sept. 30, 2026. Underground and Infrastructure backlog reached a record $11.8 billion, including approximately $1.30 billion associated with third-quarter acquisitions. Consolidated 12-month backlog climbed to $38.4 billion, while remaining performance obligations reached $41.8 billion, supporting multi-year revenue visibility.
Solid Estimate Revisions
Quanta Services has an expected revenue and earnings growth rate of 41.4% and 58.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days.
PWR has an expected revenue and earnings growth rate of 16.3% and 16.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.7% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 22.3% from the last closing price of $657. The brokerage target price is currently in the range of $684-$967. This indicates a maximum upside of 47.2% and no downside.
Sterling Infrastructure Inc.
Zacks Rank #2 Sterling Infrastructure 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.
STRL benefited from data center and semiconductor demand, organic site development growth and CEC's electrical services. Higher operating income and disciplined transportation project selection supported profitability. Multiyear project opportunities are future catalysts.
Strong Backlog
As of Sept. 30, 2026, STRL’s signed backlog increased 61% year over year to $4.14 billion, while combined backlog rose 78% to $6.14 billion. Including future phases in design, total scoped work approached $8 billion, up approximately 90% year over year.
STRL’s E-Infrastructure represented nearly $7 billion of these opportunities, with mission-critical projects accounting for approximately 95%. The expanding opportunity set reflects larger campuses, broader project scopes and longer construction timelines.
Solid Estimate Revisions
Sterling Infrastructure has an expected revenue and earnings growth rate of 78.5% and 84%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% over the last seven days.
STRL has an expected revenue and earnings growth rate of 18.1% and 28.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.01% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 109.5% from the last closing price of $361.14. The brokerage target price is currently in the range of $500-$1,000. This indicates a maximum upside of 176.9% and no downside.
View the Zacks #1 Rank List
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Buy 3 AI-Led Construction Stocks Looks More Promising on Q3 Earnings
Key Takeaways
The artificial intelligence (AI) infrastructure space remains rock solid, supported by a bullish demand scenario. Here, we recommend three AI-powered construction giants with a favorable Zacks Rank that have posted solid third-quarter earnings results. These stocks have surged year to date, yet they have robust upside potential for the short term.
The stocks are: Comfort Systems USA Inc. (FIX - Free Report) , Quanta Services Inc. (PWR - Free Report) and Sterling Infrastructure Inc. (STRL - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (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.
Zacks Rank #1 Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets. 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.
Growing Backlog
Comfort Systems highlighted continued strength in AI-powered data center construction, while industrial customers remained the primary growth engine. Backlog as of Sept. 30, 2026, totaled $17.8 billion, increasing 26.3% from $14.06 billion at June 30, 2026, and jumping 89.8% from $9.38 billion reported a year ago. On a same-store basis, backlog climbed to $17.4 billion from $9.4 billion in the year-ago period.
Solid Estimate Revisions
Comfort Systems has an expected revenue and earnings growth rate of 48.6% and 73.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last seven days.
FIX has an expected revenue and earnings growth rate of 23.6% and 30.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.1% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 57.8% from the last closing price of $1,285.13. The brokerage target price is currently in the range of $1,808-$2,500. This indicates a maximum upside of 94.5% and no downside.
Quanta Services Inc.
Zacks Rank #2 Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure 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. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation.
PWR 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.
Long-Term Prospects
PWR is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. Management believes that the company is still in the early stages of the current demand cycle, with larger utility-generation and technology/load center programs expected to be built over the coming years.
These favorable trends helped drive total backlog to a record $51.9 billion as of Sept. 30, 2026. Underground and Infrastructure backlog reached a record $11.8 billion, including approximately $1.30 billion associated with third-quarter acquisitions. Consolidated 12-month backlog climbed to $38.4 billion, while remaining performance obligations reached $41.8 billion, supporting multi-year revenue visibility.
Solid Estimate Revisions
Quanta Services has an expected revenue and earnings growth rate of 41.4% and 58.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days.
PWR has an expected revenue and earnings growth rate of 16.3% and 16.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.7% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 22.3% from the last closing price of $657. The brokerage target price is currently in the range of $684-$967. This indicates a maximum upside of 47.2% and no downside.
Sterling Infrastructure Inc.
Zacks Rank #2 Sterling Infrastructure 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.
STRL benefited from data center and semiconductor demand, organic site development growth and CEC's electrical services. Higher operating income and disciplined transportation project selection supported profitability. Multiyear project opportunities are future catalysts.
Strong Backlog
As of Sept. 30, 2026, STRL’s signed backlog increased 61% year over year to $4.14 billion, while combined backlog rose 78% to $6.14 billion. Including future phases in design, total scoped work approached $8 billion, up approximately 90% year over year.
STRL’s E-Infrastructure represented nearly $7 billion of these opportunities, with mission-critical projects accounting for approximately 95%. The expanding opportunity set reflects larger campuses, broader project scopes and longer construction timelines.
Solid Estimate Revisions
Sterling Infrastructure has an expected revenue and earnings growth rate of 78.5% and 84%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% over the last seven days.
STRL has an expected revenue and earnings growth rate of 18.1% and 28.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.01% over the last seven days.
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 109.5% from the last closing price of $361.14. The brokerage target price is currently in the range of $500-$1,000. This indicates a maximum upside of 176.9% and no downside.