3 Highly Ranked Construction Stocks Benefitting from Top Business Industries

Group 1: Construction Sector Overview - The Zacks Construction sector has 15 stocks on the Zacks Rank 1 (Strong Buy) list, indicating abundant investment opportunities [1] - The sector is benefiting from strong business industries, with several stocks recently added to the strong buy list [1] Group 2: Comfort Systems USA (FIX) - Comfort Systems USA is part of the Zacks Building Products-Air Conditioner and Heating Industry, which ranks in the top 2% of over 250 Zacks industries [2] - The stock has increased by 54% year-to-date and 125% over the last year, driven by its comprehensive HVAC services [2] - Annual earnings are forecasted to grow by 30% in FY24 to $11.42 per share, with FY25 EPS expected to rise another 13% [2] - The stock trades at 27.5X forward earnings, slightly below the industry average of 33.8X [2] Group 3: CRH (CRH) - CRH operates in the Zacks Building Products-Miscellaneous Industry, which is in the top 3% of all Zacks industries [4] - The stock has risen by 22% year-to-date and 68% over the last year, trading at a forward earnings multiple of 15.8X, below the industry average of 18.3X [4] - Annual earnings are expected to increase by 15% this year and by another 8% in FY25 to $5.79 per share [4] Group 4: Armstrong World Industries (AWI) - Armstrong World Industries is also in the Zacks Building Products-Miscellaneous Industry, with its stock up 24% in 2024 and 78% over the last year [7] - The stock trades at a forward earnings multiple of 20.9X, near the industry average [7] - Annual earnings are projected to rise by 8% in both FY25 [7] Group 5: Earnings Estimates and Market Outlook - Earnings estimate revisions for these top construction sector stocks have increased, suggesting continued strong price performance [8] - The reasonable P/E valuations indicate that now is a good time to buy [8]