AtkinsRéalis Group Inc. (ATRL.TO)

Thinks this is a sleeper. It sort of got through its bribery problems. The kind of stock that should do well in a growth environment. There was a lot of hope that the US Trump expansion was going to get into place. It hasn’t, but there is probably still good opportunity in the future. Dividend yield of 2%. (Analysts’ price target is $68.)

(A Top Pick July 7/17. Down 7.02%.) If you look back to the bribery scandal, the stock didn’t really do too much. Oil and gas is still a drag, but it is for most companies that have energy exposure. That will correct itself over time.

Stantec has been literally going sideways for the last 3 years. This one is really hanging around the same valuation. He has a model price of $46, so it is overpriced by 15%.

He likes construction and engineering. If you want a Canadian name in that sector, this is one that you could take a look at, although he doesn’t necessarily want Canadian exposure. Be a little careful on this.

They had a troubled few years. They have not completely emerged from this. They have not settled and so a lot of investors cannot own the name. He would revisit it on a pull back. It is a name that people want to own going forward.

Has just completed the acquisition of Atkins, which will improve global operations. Globally we are starting to see a truckload of infrastructure projects being announced. The stock hasn’t done much since it emerged from the corruption scandal in early 2016. With the acquisition, we should see this move higher over time. Dividend yield of 1.9%. (Analysts’ price target is $68.)

Has had a bit of a sordid past over the years, and he thinks that is all behind them. They recently had a real decent quarter. There are some great tailwinds fundamentally and technically. Dividend yield of 2%. (Analysts price target is $66.)

(A Top Pick June 17/16. Up 4%.) This would have been up more, but it is in the midst of making an acquisition in the UK. The acquisition will give them more worldwide exposure, and lessen their dependence on the energy industry. This is still a Buy.

Doesn’t think there is any major concern with this company. They had some issues at one time, but it has turned around. This is really quite good.

This is on her watch list. She wants something in the engineering/construction space, and this is a good candidate. It is much more global than some of the other players.

They made an acquisition, and you have 3-5 years now of run rate. Big synergies and lots of growth coming. If you take out the #407 toll road you get a stock that is now trading at over 13X earnings. For industrial international growth, it is about the cheapest thing out there. The court cases are diminishing and is coming to the point where it is inconsequential. Dividend yield of 2%. (Analysts’ price target is $66.)

They have a couple of silos. A pure construction play. They have a mining business which represents quite a small chunk. In 4 or 5 years, this has really been going nowhere. Thinks the worst is behind them. The potential acquisition of Atkin out of the UK good be really accretive. One of the big challenges they have is the street’s view of their guidance going forward and their free cash flow. Feels both of those will be addressed with their acquisition. Dividend yield of 2%. (Analysts’ price target is $64.)

They had problems in the past but now he likes it going forward. He bought early, but it has worked out for him. They continue to get lots of contracts. Most recently it has sold off and is now the cheapest engineering and construction company in North America. This is because they have an inefficient balance sheet. The market expects them to make a large acquisition and take on lots of debt and that it will hurt them. He expects them to buy back stock. An acquisition would be good for them, making the balance sheet more efficient. It is cheap here. They still own highway 407 where the value continues to go up and up. There is not a lot of goodwill built in here. (Analysts’ target: $64.00).

The US infrastructure spend is over the 8 years of the administration. It will not move the needle all that much, but this company is one of the top ones to benefit from it. We are back up at the levels when SNC-T had the problems mid-2014. He would buy on dips, but does not see a big upside breakout here.

(A Top Pick March 4/16. Up 19.8%.) This has eased off recently, so he has started to pick up more stock. It is the emphasis on infrastructure and new construction that he likes. He sees long-term growth potential.