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Providing value-added construction materials, we’ll start with Knife River Corporation which has soared over +100% since spinning off from MDU Resources Group (MDU - Free Report) in 2023.
Knife River’s increased profitability has kept the rally going since becoming independent with its Zacks Products-Miscellaneous Industry in the top 40% of over 250 Zacks industries. Despite a monstrous rally over the last year KNF still trades at a reasonable 19.7X forward earnings multiple with EPS expected to rise 10% in fiscal 2024 and projected to jump another 13% in FY25 to $4.05 per share.
Increased infrastructure spending in the US has continued to benefit MasTec, a leading infrastructure construction company that engages in engineering, building, installation, and maintenance.
MasTec’s Building Products-Heavy Construction Industry is in the top 6% of all Zacks industries. Notably, MasTec’s stock has climbed +42% year to date with high double-digit EPS growth in the forecast for FY24 and FY25. The company’s steady top line growth also stands out with total sales slated to increase 4% this year and forecasted to rise another 8% in FY25 to $13.45 billion.
Rounding out the list is Meritage Homes with its Building Products-Home Builders Industry in Zacks top 7%. Meritage is one of the leading designers and builders of single-family homes and is trading at just 8.1X forward earnings. Plus, its robust bottom line is expected to expand 5% in FY24 and projected to increase another 5% in FY25 to a whopping $21.98 per share.
Image Source: Zacks Investment Research
Investors might have been waiting for buy-the-dip opportunities for many of the top-performing homebuilder stocks and MTH has dipped -12% amid the broader selloff over the last week but is still up +2% YTD and sitting on +30% gains over the last year.
Image Source: Zacks Investment Research
Bottom Line
From infrastructure-related activities to steady demand for new homes following the pandemic, there is still an abundance of opportunity in the construction sector. Furthermore, recent market volatility has presented better buying opportunities with these three highly-ranked construction sector stocks starting to stand out in particular.
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3 Highly Ranked Construction Stocks to Buy as Markets Rebound
Several construction sector stocks were added to the Zacks Rank #1 (Strong Buy) list this week as beneficiaries of vibrant business industries.
With the broader market starting to stabilize and rebound, here are three of these highly-ranked construction stocks to consider.
Knife River Corporation (KNF - Free Report)
Providing value-added construction materials, we’ll start with Knife River Corporation which has soared over +100% since spinning off from MDU Resources Group (MDU - Free Report) in 2023.
Knife River’s increased profitability has kept the rally going since becoming independent with its Zacks Products-Miscellaneous Industry in the top 40% of over 250 Zacks industries. Despite a monstrous rally over the last year KNF still trades at a reasonable 19.7X forward earnings multiple with EPS expected to rise 10% in fiscal 2024 and projected to jump another 13% in FY25 to $4.05 per share.
Image Source: Zacks Investment Research
MasTec (MTZ - Free Report)
Increased infrastructure spending in the US has continued to benefit MasTec, a leading infrastructure construction company that engages in engineering, building, installation, and maintenance.
MasTec’s Building Products-Heavy Construction Industry is in the top 6% of all Zacks industries. Notably, MasTec’s stock has climbed +42% year to date with high double-digit EPS growth in the forecast for FY24 and FY25. The company’s steady top line growth also stands out with total sales slated to increase 4% this year and forecasted to rise another 8% in FY25 to $13.45 billion.
Image Source: Zacks Investment Research
Meritage Homes (MTH - Free Report)
Rounding out the list is Meritage Homes with its Building Products-Home Builders Industry in Zacks top 7%. Meritage is one of the leading designers and builders of single-family homes and is trading at just 8.1X forward earnings. Plus, its robust bottom line is expected to expand 5% in FY24 and projected to increase another 5% in FY25 to a whopping $21.98 per share.
Image Source: Zacks Investment Research
Investors might have been waiting for buy-the-dip opportunities for many of the top-performing homebuilder stocks and MTH has dipped -12% amid the broader selloff over the last week but is still up +2% YTD and sitting on +30% gains over the last year.
Image Source: Zacks Investment Research
Bottom Line
From infrastructure-related activities to steady demand for new homes following the pandemic, there is still an abundance of opportunity in the construction sector. Furthermore, recent market volatility has presented better buying opportunities with these three highly-ranked construction sector stocks starting to stand out in particular.