The Zacks Analyst Blog Highlights EMCOR, MasTec, Comfort Systems, Sterling Infrastructure and Acuity Brands

For Immediate ReleaseChicago, IL – December 4, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: EMCOR Group, Inc. EME, MasTec, Inc. MTZ, Comfort Systems USA, Inc. FIX, Sterling Infrastructure, Inc. STRL and Acuity Brands, Inc. AYI.Here are highlights from Tuesday’s Analyst Blog:5 Construction Stocks to Explore on Increased SpendingAccording to a recent report by the U.S. Census Bureau, construction activity in the country has been gaining momentum since July 2024. The October 2024 data shows that construction activity was driven by increased residential construction spending month over month and year over year. Although non-residential construction spending during the month was down from September 2024, it was up year over year.Residential construction witnessed an uptick of 1.5% from September 2024 and 6.4% year over year thanks to increased homebuilder’s confidence and easing inflation. Non-residential construction in October inched down 0.4% from the previous month but gained 3.9% year over year. The non-residential construction was pulled up by increased activity in public safety, amusement and recreation, water supply, manufacturing, office, healthcare, and education.Based on the trends and numbers mentioned above, it will be wise to invest in a few of the construction stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy), including EMCOR Group, Inc., MasTec, Inc., Comfort Systems USA, Inc., Sterling Infrastructure, Inc. and Acuity Brands, Inc.. You can see the complete list of today’s Zacks #1 Rank stocks here.Knowing the NumbersConstruction activity spending can be understood better when private and public construction is gauged.The private construction in October 2024 increased 0.7% month-over-month and 5.1% from the past year. Under private construction, residential construction increased 1.5% from the previous month and 6.4% year over year, primarily backed by increased new single-family housing construction compared with new multi-family. Furthermore, non-residential construction was down 0.3% from the prior month but up 3.5% from last year.The public construction spending during the month inched down 0.5% compared to September but increased 4.5% year over year. The month-over-month decrease was due to a 0.5% decline in both residential and non-residential construction. On a year-over-year basis, residential and non-residential activity was up 6.4% and 4.5%, respectively.Key Growth Drivers of the Construction SectorThe recent move by the Fed to cut down interest rate after maintaining it at a benchmark of 5.25% to 5.50% since mid-2023 and the expectations of further rate cuts through 2025 have acted as catalysts in boosting the market’s construction activity.Considering residential construction, the 30-year fixed-rate mortgage of 6.08% at September 2024-end fostered by the rate cuts aided the numbers to increase in October despite the still high inflation scenario. On Oct. 17, 2024, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported builder’s confidence for newly-built single-family homes of 43 compared with 41 in September. The optimism among homebuilders regarding the upcoming year based on the possibilities of further rate cuts is backing up growth.Now, regarding non-residential construction, the numbers were pulled down compared to September 2024 because of softness in conservation and development, sewage and waste disposal, healthcare, commercial and highway and street. However, when compared year over year, the growth is visible from the numbers backed by strong demand trends in infrastructure modernization, energy transition, health care, public safety and manufacturing. Also, increased spending for carbon/ESG-related projects to pursue carbon capture and storage work bodes well.The Zacks Construction sector has risen 29.8% so far this year compared with the S&P 500 Index’s 26.7% rally.Top 5 Construction Stocks to BuyEMCOR: The company is the leading provider of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The stock has surged 134.4% so far this year. EME presently sports a Zacks Rank of 1.The Zacks Consensus Estimate for EME’s 2025 sales and earnings per share (EPS) indicates 6.6% and 7.2% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 32.3%.MasTec: This is the leading infrastructure construction company operating mainly throughout North America. The stock has surged 87.6% in the year-to-date period. MTZ presently sports a Zacks Rank of 1.The consensus estimate for MTZ’s 2025 sales and EPS indicates 8.6% and 45.5% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 40.2%.Comfort Systems: Shares of this building and service provider for mechanical, electrical, and plumbing building systems have soared 138% so far this year. It currently sports a Zacks Rank of 1.The consensus estimate for FIX’s 2025 sales and EPS indicates 7.9% and 20.8% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.7%.Sterling Infrastructure: Shares of this Texas-based infrastructure services provider of e-infrastructure solutions, building solutions, and transportation solutions have surged 121% in the year-to-date period. It presently flaunts a Zacks Rank of 1.The consensus estimate for STRL’s 2025 sales and EPS indicates 7.3% and 8.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 21.5%.Acuity Brands: Shares of this Atlanta-based manufacturer and distributor of lighting fixtures and related components have rallied 57.2% so far this year. AYI presently carries a Zacks Rank of 2.The consensus estimate for AYI’s fiscal 2025 sales and EPS indicates 4.7% and 7.1% year-over-year growth, respectively. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.2%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis Report Acuity Brands Inc (AYI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks