Top Construction & Engineering Stocks to Buy in 2019
Construction and engineering stocks include companies that build residential and non-residential building construction, contract services and other building, material and infrastructure related companies. Although many analysts believe the global economy is cooling, there has been a secular trend in growth due to increasing economic activities. Office buildings, retail space and housing are at the core of building and engineering companies. With lower interest rates, there is a stimulus to borrow in order to build.
Here are the top construction and engineering companies to consider:
⚒🧱 Construction & Engineering
Canada Stocks
Bird Construction Income Fund (BDT-T)
The company and management are well liked by analysts. They are mostly focused in the West. The stock price has been under pressure due to low margins and some operational hiccups in the last year. However, this could be a turnaround story.
Opinion about BDT.TO: Industrial stocks have come off on tariff, and other, fears. Very good ROE profile. Excellent earnings growth, with analysts…
Stockchase Boyuan Construction Group Inc (BOY-T)
A small cap construction company. It is engaged in residential and commercial building construction as well as municipal infrastructure projects in China. Their book value is far above their current stock price.
Opinion about BOY.TO: This is a funny one. The book value is $4.80. They started a few more projects in China. It is not for him, but he can see why…
Stockchase Stuart Olson Inc (SOX-T)
The company has disappointed with their fixed contracts going over cost. They have been traditionally based in the West and the economy has slowed down. However, analysts believe it should be worth more and it could see the price take off.
Opinion about SOX.TO: The company has not only created some stability within operations, but also have the potential of improving operations going…
Stockchase Stantec Inc (STN-T)
An international professional design and consulting industry company. They are based in Edmonton. They recently sold off their construction side of the business where margins were poorer. The company is focusing on their engineering segment.
Opinion about STN.TO: A true compounder in Canada. Respects management, but it's fallen from its summer peak due to profit-taking. It's a buying…
Stockchase Aecon Group Inc (ARE-T)
The largest publicly traded Canadian construction company. They have three core segments which are infrastructure, energy and mining. It’s been cited a top pick by many analysts and their chart continues to show a strong uptrend.
Opinion about ARE.TO: Aecon vs. Atkins Over 12 months, Aecon could do better. It's more exposed to Canada, more revenues from Canada, whereas Atkins…
Stockchase WSP Global Inc. (WSP-T)
A management and consultancy service for buildings. They have been a beneficiary of the SNC Lavalin scandal and their price has gone up. They largely grow by acquisition.
Opinion about WSP.TO: Core holding. Great executional track record with M&A and organic growth. CAGR of 20%. With the global trade war unleashed,…
Stockchase SNC-Lavalin Group Inc. (SNC-T)
The scandal ridden company has put pressure on the company’s stock price. There is threat of class-action litigation and official prosecution. The underlying value is more than the current stock price.
Opinion about ATRL.TO: Well diversified geographically in Canada and beyond and in end markets. Strong balance sheet, but profits are below the…
Stockchase DIRTT Environmental Solutions (DRT-T)
A company that provides technology used in construction and design. Their main activity is in healthcare and office design. Jim Huang has chosen this company as his Top Pick twice recently.
Opinion about DRT.TO: (A Top Pick Nov 10/15. Down 19.94%.) Likes this for its revolutionary technology, designing, installation and manufacturing in…
Stockchase U.S.Stocks
Mastec Inc (MTZ-N)
An American multinational infrastructure company. A leader in pipelines and wireless network towers. With the growth of 5G, the company is expected to grow.
Opinion about MTZ: Focused in 3 areas. 1) Optical networking, 2) pipelines for gas infrastructure and 3) electrical grid. Recently broke out above…
Stockchase Quanta Services (PWR-N)
An engineering, procurement and construction services company in the energy sector. The management team is very effective and pays a nice dividend.
Opinion about PWR: Nuts and bolts of hardening the electronic grid for EVs. Likes it because contracts are not long-term, so pricing power is…
Stockchase Jacobs Engineering Group Inc. (JEC-N)
The largest engineering company in the S&P 500. The trend for public construction spending is up. Jon Vialoux chose it as a top pick at the beginning of October.
Opinion about JEC: He's never liked companies involved in construction--it's a hard business. However, Jacobs is tops in their industry.
Stockchase Fluor Corp. (FLR-N)
A multinational engineering and construction firm. The company experienced multiple problems in 2018 and the stock sold off. Analysts still believe the business is good, though management has been ineffective in a couple projects.
Opinion about FLR: An engineering company. Has been looking at this for the last few years. He passed on it because about half their business is very…
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