Construction Sector Stocks: Poised for Growth Among the Zacks Rank #1 List
As the season turns towards spring and summer, several construction sector stocks have emerged as strong contenders for growth. These companies, which hold a Zacks Rank #1 (Strong Buy) status, are expected to benefit from various market trends and economic factors.
Factors Fueling Construction Sector Growth
One major factor driving the growth of construction sector stocks is the recovery of the housing market. According to the National Association of Home Builders (NAHB), new single-family home sales are projected to reach 780,000 units in 2023, up from 681,000 units in 2021. This upward trend is expected to continue, as low mortgage rates and increasing demand for housing fuel growth in the sector.
Another factor contributing to the growth of construction sector stocks is the infrastructure bill passed by the U.S. government. The Infrastructure Investment and Jobs Act, which was signed into law in November 2021, allocates over $1 trillion for various infrastructure projects across the country. This funding will create numerous opportunities for construction companies, particularly those specializing in transportation, water, and broadband infrastructure.
Construction Sector Stocks to Watch
Several construction sector stocks have been identified as strong buys based on their Zacks Rank #1 status. These companies include:
- Bechtel Group Inc. (BCH): Bechtel is a leading engineering, construction, and project management company. The company has a diversified portfolio, with projects in various sectors, including transportation, power, oil and gas, and mining. Bechtel’s strong financial position and extensive industry expertise make it a solid investment choice.
- Fluor Corporation (FLR): Fluor is a global engineering, procurement, fabrication, construction, and maintenance company. The company’s expertise lies in the energy, chemicals, and mining industries. Fluor’s solid backlog and strong order book position it well for growth in the coming years.
- Skanska AB (SKB): Skanska is a leading international construction and development company. The company operates in various markets, including building construction, civil engineering, and infrastructure development. Skanska’s solid financial position, strong order backlog, and focus on sustainable construction make it an attractive investment.
Impact on Individuals
For individual investors, the growth of construction sector stocks presents an opportunity to capitalize on the industry’s upward trend. By investing in Zacks Rank #1 construction sector stocks, such as Bechtel Group, Fluor Corporation, and Skanska AB, investors can potentially earn higher returns on their investments. Additionally, as the housing market continues to recover, individuals may also benefit from increased demand for new homes and renovations.
Impact on the World
The growth of construction sector stocks can have a significant impact on the world. Increased investment in infrastructure projects, as a result of government funding and private sector growth, can lead to improved transportation networks, enhanced water and energy systems, and expanded broadband access. These improvements can, in turn, boost economic growth, create jobs, and enhance the overall quality of life for people around the world.
Conclusion
In conclusion, the construction sector is poised for growth, with several Zacks Rank #1 stocks, such as Bechtel Group, Fluor Corporation, and Skanska AB, leading the charge. Factors including the recovery of the housing market and the infrastructure bill are fueling this growth. For individual investors, this presents an opportunity to earn higher returns on their investments. For the world, the growth of the construction sector can lead to improved infrastructure, increased economic growth, and enhanced quality of life.
As we move through the spring and summer, it will be interesting to see how these trends unfold and how they impact the construction sector and the world at large.
