Key Takeaways Sterling acquired CEC, adding revenues, backlog and expanded capabilities across key end markets.CEC contributed $41.4M in September and added $475M to backlog, lifting E-Infrastructure visibility.Sterling sees strong 2026 demand, including data center wins, supporting pursuit of higher-margin work.Sterling Infrastructure, Inc. (STRL) is taking a meaningful step forward with the acquisition of CEC, expanding capabilities across mission-critical end markets and strengthening its position for hi ...

Investors with an interest in Engineering - R and D Services stocks have likely encountered both M-tron Industries, Inc. (MPTI) and Alfa Laval AB Unsponsored ADR (ALFVY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zack ...

Key Takeaways KBR won a five-year Navy contract worth up to $117M to support global F/A-18 and EA-18G fleets.The deal includes engineering, logistics, training and lifecycle support for multiple partner nations.KBR's backlog grew to $23.35B, aided by major wins across Mission Technologies and STS.KBR, Inc. (KBR) has expanded its U.K. presence after securing a U.S. Navy contract to provide Foreign Military Sales support for the Naval Air Systems Command’s (NAVAIR) F/A-18 and EA-18G Program Office (PMA-265). ...

Investors interested in Engineering - R and D Services stocks are likely familiar with Amentum Holdings (AMTM) and Aecom Technology (ACM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estima ...

Key Takeaways Sterling reports Q3 momentum in Transportation as federal funding cycle approaches 2026.More than two years of backlog offers visibility as states adjust projects ahead of funding transitions.Steady bids and a shift toward higher-value work, including a Texas wind-down, support 2026 momentum.Sterling Infrastructure, Inc. (STRL) is entering an important phase for its Transportation Solutions segment as the current federal funding cycle moves toward the conclusion in September 2026. With strong ...

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Argan (AGX) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.Argan is a member of the Construction sector. This group includes 92 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank considers 16 different s ...

Core Insights - Quanta Services, Inc. (PWR) is strategically expanding its Total Solutions Platform to meet the increasing demand for integrated power infrastructure, positioning itself as an end-to-end partner for complex energy programs [1][4] Group 1: Strategic Expansion - The Total Solutions Platform now includes a more comprehensive power generation offering, building on the company's history of constructing over 80,000 megawatts across various energy assets [2] - The enhanced model aims to deliver fully integrated generation and infrastructure solutions, catering to utilities, large-load consumers, and industrial operators [2][4] Group 2: Joint Ventures and Risk Management - PWR has formed a joint venture with Zachry to execute a major program for NiSource, which encompasses generation, battery storage, transmission, substation, and underground infrastructure [3] - This joint venture allows for risk sharing and strengthens execution certainty, which is crucial as project sizes expand [3] Group 3: Competitive Landscape - Competitors like MasTec, Inc. and Fluor Corporation are also positioned in adjacent markets, with MasTec focusing on power delivery and renewable generation, but lacking the integration advantages of PWR's unified platform [5] - Fluor competes on large-scale EPC projects but carries higher execution risk and less self-performed craft labor, potentially limiting its ability to offer end-to-end certainty [6] Group 4: Financial Performance - PWR's shares have increased by 39.8% year-to-date, outperforming the Zacks Engineering - R and D Services industry's growth of 9.7% [7] - The company currently has a forward 12-month price-to-earnings ratio of 36.4X, compared to the industry's 23.92X [10] Group 5: Earnings Estimates - Quanta's earnings estimates for 2025 and 2026 indicate year-over-year growth of 17.8% and 16.7%, respectively [11]

Core Insights - Amentum Holdings reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and showing an increase from $0.47 per share a year ago, resulting in an earnings surprise of +6.78% [1][2] - The company achieved revenues of $3.93 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.81%, compared to $2.21 billion in the same quarter last year [2] - Amentum has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Amentum's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $3.4 billion, and for the current fiscal year, it is $2.39 on revenues of $14.05 billion [7] Industry Context - Amentum operates within the Zacks Engineering - R and D Services industry, which is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Amentum's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - The energy-infrastructure sector is experiencing a significant transformation as utilities, data-center operators, and industrial customers seek to expand capacity and modernize grids [2] - Quanta Services, Inc. (PWR) and Fluor Corporation (FLR) are two major U.S.-listed contractors playing pivotal roles in this transformation, focusing on power generation, transmission, and large-scale EPC services [2][3] - Each company is adopting different strategies to navigate the current market cycle, with Quanta emphasizing execution certainty and integrated solutions, while Fluor is pursuing a more asset-light approach [3] Quanta Services, Inc. (PWR) - PWR is witnessing strong momentum in its core markets, particularly in electric infrastructure and renewable energy, with the Electric segment contributing 80.9% of total revenues in Q3 2025, amounting to $6.17 billion, reflecting a 17.9% year-over-year growth [5][10] - The company reported a record backlog of $39.2 billion at the end of Q3 2025, up from $33.96 billion a year ago, indicating strong demand across utility and technology-driven markets [6][10] - PWR anticipates ongoing strength in electricity needs, driven by data centers and manufacturing, which will support further investments in infrastructure [8] Fluor Corporation (FLR) - Fluor is capitalizing on healthy activity across key markets, with strong execution in Energy Solutions and progress in Mission Solutions, leading to improved performance in LNG, mining, and government services [11][12] - The company raised its full-year guidance due to stronger-than-expected performance and a total backlog of $28.2 billion, with 82% being reimbursable projects, indicating a lower-risk mix [12] - Fluor expects constructive conditions in LNG, clean energy, and government work, with a strengthening pipeline of engineering and EPC opportunities [14] Stock Performance & Valuation - Over the past six months, Quanta's share price has outperformed Fluor's and the Zacks Engineering - R and D Services industry [15] - Quanta is currently trading at a premium compared to Fluor based on a forward 12-month price-to-earnings (P/E) ratio [16] Earnings Estimates - The Zacks Consensus Estimate for PWR's 2025 and 2026 earnings indicates year-over-year improvements of 17.8% and 16.7%, respectively, while FLR's 2025 EPS estimate shows a 7.7% decline [19][20] - PWR's EPS for 2025 is estimated at $10.57, while FLR's is projected at $2.15 [20][21] Conclusion - Both Quanta and Fluor hold a Zacks Rank 3 (Hold), supported by different fundamental drivers, with Quanta focusing on utility infrastructure and Fluor benefiting from a stronger mix of reimbursable work [22][23]

Core Insights - The U.S. infrastructure and energy transition sectors are experiencing significant growth, benefiting companies in engineering and construction services, particularly Sterling Infrastructure, Inc. (STRL) and Quanta Services, Inc. (PWR) [1][2] Company Strategies - Sterling is focusing on large-scale site development related to data centers, reshoring-driven manufacturing, and major logistics facilities [1] - Quanta is expanding its utility, grid, and renewable infrastructure platform through an integrated solutions model [1] Sterling Infrastructure, Inc. (STRL) - STRL's E-Infrastructure segment is the primary growth driver, with revenues reaching $417.1 million, a 58% increase year-over-year, and data center revenues rising over 125% [3][4] - The total backlog for STRL is $2.6 billion, up 64% from the previous year, with E-Infrastructure Solutions accounting for $1.8 billion, reflecting a 97% year-over-year increase [5] - STRL anticipates strong momentum in data centers, manufacturing, and e-commerce projects through 2026, raising full-year guidance for revenues and earnings [7] Quanta Services, Inc. (PWR) - PWR's Electric segment generated revenues of $6.17 billion, a 17.9% increase year-over-year, accounting for 80.9% of total revenues [10] - PWR's backlog reached $39.2 billion, up from $33.96 billion the previous year, indicating strong demand across utility and renewable markets [11] - PWR expects continued strong demand in utility, renewable, and technology sectors, supporting ongoing investment in infrastructure [13] Stock Performance & Valuation - STRL's share price has outperformed PWR and the Zacks Engineering - R and D Services industry over the past three months [14] - STRL is trading below PWR on a forward 12-month price-to-earnings (P/E) ratio basis, indicating a premium valuation for STRL compared to PWR's discounted valuation [16][18] Earnings Estimates - The Zacks Consensus Estimate for STRL's 2025 EPS indicates a 56.9% year-over-year growth, while PWR's estimates imply improvements of 17.8% for 2025 [19][21] - STRL's EPS estimates have remained unchanged over the past 60 days, reflecting stability in growth expectations [20][21] Investment Outlook - STRL shows faster momentum and stronger stock performance, appealing to investors seeking higher growth potential [22] - PWR offers stability and broad exposure to utility and renewable infrastructure, suitable for investors looking for steady long-term returns [22][23]