Core Insights - Primoris Services Corporation (PRIM) and MasTec, Inc. (MTZ) are leading infrastructure construction companies in North America, benefiting from rising investments in grid upgrades, renewable energy, and broadband expansion [1][2] - Both companies have different growth strategies, with Primoris focusing on renewables and natural gas, while MasTec adopts a broader scaling approach across various sectors [2][10] - Shared risks include tariff-related uncertainties, cost pressures, and execution challenges on large projects [3] Summary of Primoris (PRIM) - Primoris is diversifying its infrastructure services, emphasizing renewables and natural gas generation, supported by federal incentives and a multi-year solar pipeline [4] - In Q2 2025, renewables drove a 27% year-over-year revenue increase, with projected annual revenues nearing $2.5 billion [5] - The company is exploring $1.7 billion in potential data center projects, with communications revenues growing at a double-digit rate [6] - Backlog reached $11.5 billion, with expectations for growth in utilities, renewables, and industrial services [7] - EPS is projected to rise 24.8% year-over-year in 2025, with favorable revisions in earnings estimates [9][18] Summary of MasTec (MTZ) - MasTec has a diversified portfolio across communications, clean energy, power delivery, and pipelines, focusing on scaling in high-demand markets [10] - In Q2 2025, non-pipeline operations showed strong momentum, with significant increases in communications revenues and improved margins in clean energy [11] - Total backlog reached a record $16.45 billion, up 23.3% year-over-year, leading to raised revenue and EPS guidance for 2025 [13] - EPS is projected to grow 58% year-over-year in 2025, with upward revisions in earnings estimates [9][21] Stock Performance & Valuation - Primoris has outperformed MasTec and the Zacks Building Products - Heavy Construction industry in share price performance over the past three months [14] - MasTec trades at a premium valuation compared to Primoris, which has a more compelling valuation and stronger relative share price performance [15][22] - Primoris is rated Zacks Rank 1 (Strong Buy), indicating a better investment opportunity compared to MasTec, which holds a Zacks Rank 2 (Buy) [23]

Market Overview - The market received a boost from Fed Chair Jerome Powell's Jackson Hole speech, indicating potential rate cuts as early as September, leading to a 1.5% rally in the S&P 500 [1][10] - Powell's acknowledgment of persistent inflation, coupled with a focus on job growth, reassured investors about the Fed's readiness to intervene if economic momentum slows [1][10] - By the end of the week, traders raised their bets on a September rate cut, with odds exceeding 90% [1] Investor Sentiment - Investors interpreted Powell's remarks as a sign that tariff-related inflation is viewed as temporary, not a long-term concern, which has fueled optimism in equities [2][10] - With falling treasury yields and a returning risk appetite, equities are expected to continue gaining in the upcoming weeks [2] Stock Recommendations - Recommended stocks based on relative price strength include Pediatrix Medical Group (MD), Enova International (ENVA), Primoris Services Corporation (PRIM), SkyWest, Inc. (SKYW), and Agnico Eagle Mines Limited (AEM) [3][10] Stock Analysis Strategy - Investors should assess stocks based on earnings growth and valuation multiples, while also considering their performance relative to industry peers or benchmarks [4] - Underperforming stocks should be avoided, while those outperforming their sectors in price should be prioritized for potential returns [5] - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and have solid fundamentals are ideal candidates for investment [6] Earnings Estimates - Positive estimate revisions for upcoming earnings are crucial; upward revisions typically lead to additional price gains [7] - Screening parameters include relative price changes over various time frames and positive current-quarter estimate revisions [8] Zacks Rank and Stock Performance - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are considered for investment [9] - Specific stocks highlighted include: - **Pediatrix Medical Group (MD)**: Market cap of $1.5 billion, 51.8% share price increase over the past year, and a 9.3% upward revision in earnings estimates [11][12] - **Enova International (ENVA)**: Market cap of $2.9 billion, 37.4% share price increase, and a 32.4% growth estimate for 2025 earnings [13][14] - **Primoris Services Corporation (PRIM)**: Market cap not specified, 107.7% share price increase, and a 20.7% growth estimate for 2025 earnings [15] - **SkyWest, Inc. (SKYW)**: Market cap of $4.8 billion, 60.4% share price increase, and a 28.1% growth estimate for 2025 earnings [16] - **Agnico Eagle Mines Limited (AEM)**: Market cap of $69 billion, 66% share price increase, and a 62.2% growth estimate for 2025 earnings [17][18]

Core Viewpoint - Fluor Corporation (FLR) has experienced a significant share price increase of 54.8% over the past three months, outperforming its industry peers and the broader market indices [1][4]. Group 1: Company Performance - The company is benefiting from strong demand trends in various sectors, including infrastructure projects for data centers, semiconductors, pharmaceuticals, energy transition, fuel production, and mining and metals [3][20]. - Fluor's backlog has reached $28.7 billion, with 79% classified as reimbursable, which reduces project risks and supports long-term margin growth [7][8]. - In Q1 2025, Fluor secured new awards totaling $5.8 billion, indicating a healthy book-to-burn ratio of 1.5x [7][8]. Group 2: Business Strategy - Fluor is transitioning its strategy from "fix and build" to "grow and execute" for the 2025-2028 period, focusing on generating cash and earnings while maintaining financial discipline [9][10]. - The company aims to diversify its business portfolio to stabilize its operations and capitalize on cyclical markets at appropriate times [10]. Group 3: Shareholder Returns - Fluor has committed to returning capital to shareholders, having repurchased $193 million in shares in Q1 2025 and planning additional buybacks totaling $450 million for the year [11][12]. - The stock is currently trading at a discount compared to industry peers, presenting an attractive entry point for investors [13]. Group 4: Market Trends and Risks - The favorable market trends are expected to continue, driven by increased public infrastructure demand and technological advancements [6][20]. - However, Fluor faces challenges such as project delays, currency translation risks, and inflationary pressures, which could impact its growth [5][18][19].