Zacks Industry Outlook EMCOR, MasTec, Granite Construction, Primoris Services and Great Lakes Dredge & Dock

Industry Overview - The Zacks Building Products - Heavy Construction industry is experiencing growth driven by a significant infrastructure push from the U.S. government, focusing on roads, bridges, and broadband connectivity [1][5] - The industry includes mechanical and electrical construction, industrial and energy infrastructure, and building service providers, specializing in transportation projects [3][4] Market Trends - The U.S. administration's infrastructure plan aims to create modern, sustainable infrastructure, which is expected to significantly impact the economy and construction industry over the next five years [5][6] - Increased demand for 5G-related projects is benefiting industry players, with expectations of growth in communications, healthcare, and power transmission sectors [7] - Companies are leveraging acquisitions to solidify their product portfolios and expand into renewable energy projects, aligning with the pro-environmental policies of the current administration [8][9] Company Performance - EMCOR Group Inc. has seen a 71.8% increase in stock price over the past year, with 2024 earnings estimates rising to $18.00 per share, reflecting a growth of 34.9% [20] - Granite Construction has gained 80.3% in stock price, with 2024 earnings estimates increasing to $5.24 per share, indicating a growth of 66.9% [24] - Great Lakes Dredge & Dock has a robust backlog and is positioned for growth in the offshore wind market, with 2024 earnings estimates rising to $0.80 per share, a growth of 471.4% [28] - MasTec has a strong backlog of $13.3 billion and has seen a 13.3% stock price increase, with 2024 earnings estimates rising to $3.02 per share, reflecting a growth of 53.3% [31] - Primoris Services has a backlog of over $5.24 billion and has experienced a 59.8% stock price increase, with 2024 earnings estimates increasing to $2.82 per share, indicating a growth of 5.6% [33] Industry Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, with a collective gain of 51.7% compared to the sector's 39% and the S&P 500's 27% over the past year [15] - The industry currently trades at a forward price-to-earnings ratio of 19.6X, which is lower than the S&P 500's 21.7X and the sector's 18.2X [16]