3 Highly Ranked Construction Stocks to Buy as Markets Rebound

Group 1: Market Overview - Several construction sector stocks have been added to the Zacks Rank 1 (Strong Buy) list, indicating a positive outlook for the industry [1] - The broader market is starting to stabilize and rebound, creating opportunities in the construction sector [1] Group 2: Knife River Corporation (KNF) - Knife River Corporation has increased over +100% since its spin-off from MDU Resources Group in 2023 [2] - The company has shown increased profitability and is ranked in the top 40% of over 250 Zacks industries [3] - KNF trades at a forward earnings multiple of 19.7X, with EPS expected to rise 10% in fiscal 2024 and another 13% in FY25 to $4.05 per share [3] Group 3: MasTec (MTZ) - MasTec benefits from increased infrastructure spending in the US and is a leading company in engineering, building, installation, and maintenance [5] - The company is in the top 6% of all Zacks industries, with its stock climbing +42% year to date [6] - Total sales are projected to increase 4% this year and another 8% in FY25 to $13.45 billion, with high double-digit EPS growth forecasted for FY24 and FY25 [6] Group 4: Meritage Homes (MTH) - Meritage Homes operates in the Building Products-Home Builders Industry, which is in Zacks' top 7% [6] - The company trades at a forward earnings multiple of 8.1X, with robust bottom line growth expected to expand 5% in FY24 and another 5% in FY25 to $21.98 per share [6] - Despite a recent dip of -12%, MTH is still up +2% year to date and has gained +30% over the last year [7] Group 5: Conclusion - The construction sector presents abundant opportunities due to infrastructure-related activities and steady demand for new homes post-pandemic [7] - Recent market volatility has created better buying opportunities for highly-ranked construction sector stocks [7]