Best Construction Stocks Positioned for the Infrastructure Boom: Top 3 Picks

The construction sector is experiencing a pivotal moment. Driven by substantial government spending on modernization projects and the explosive demand from artificial intelligence infrastructure, the heavy construction industry has become one of the most compelling segments for investors seeking exposure to long-term secular growth trends. Three established contractors—EMCOR Group, MasTec, and Dycom Industries—stand out as prime candidates for capturing this structural upswing.

Market Dynamics Fueling Construction Stock Growth

The foundation for this industry expansion rests on multiple concurrent tailwinds. Federal initiatives targeting transportation networks, broadband connectivity, and clean energy development have created an unprecedented backlog of projects spanning the next several years. Simultaneously, the data center buildout—accelerated by AI and cloud computing demands—has emerged as an unexpected catalyst, requiring specialized civil and electrical infrastructure that positions well-capitalized contractors to capture significant market share.

Telecommunications infrastructure represents another critical growth vector. The national fiber-to-the-home deployment and 5G network expansion continue to drive robust demand for specialized contracting services. These projects, often multiyear commitments with predictable cash flows, provide the financial stability that construction companies require for consistent earnings growth.

Why This Moment Matters for Construction Stocks

Valuations appear reasonable relative to the industry’s earning potential. The Zacks Building Products - Heavy Construction industry currently trades at a forward P/E ratio of 23.47, nearly aligned with the S&P 500’s 23.55 and above the broader construction sector’s 19.98. More importantly, the industry’s Zacks Industry Rank stands at #32, placing it within the top 13% of all tracked sectors—a signal of improving analyst confidence in near-term performance.

The industry has significantly outperformed broader benchmarks over the past twelve months. Stocks within this group have collectively gained 51.5%, compared to a 3.2% decline in the wider construction sector and an 18.5% rise in the S&P 500. Earnings estimate revisions have been uniformly positive: 2025 aggregate earnings per share have increased from $5.90 to $6.52 since mid-July, indicating growing conviction among Wall Street analysts.

Three Construction Stocks Worth Buying

EMCOR Group: Leading Through Technical Expertise and Strategic Integration

EMCOR, based in Norwalk, Connecticut, has established itself as a premier provider of electrical, mechanical, and facilities services across North America and the United Kingdom. The company’s competitive advantages rest on its record-setting backlog, disciplined capital allocation, and the successful integration of specialized firms like Miller Electric, which has deepened its electrical contracting capabilities.

Recent performance metrics validate this strategic positioning. Over the trailing year, EMCOR shares have appreciated 54.9%. The company carries a Zacks Rank of #2 (Buy), and earnings estimates for 2025 have modestly increased to $25.19 per share from $25.11 over the past month. Full-year 2025 earnings are projected to expand 17.1% from prior-year levels, with the company demonstrating consistent execution—surpassing earnings expectations in each of the last four quarters by an average margin of 16.8%.

The company’s exposure to data center build-outs, healthcare facility upgrades, and infrastructure modernization projects provides multiple revenue streams resistant to cyclical downturns.

MasTec: Capturing Multi-Segment Infrastructure Upside

MasTec operates as a North America-focused infrastructure construction powerhouse headquartered in Coral Gables, Florida. The company benefits from a diversified portfolio spanning communications networks, renewable energy deployment, electrical grid modernization, and natural gas infrastructure.

The telecommunications segment is particularly dynamic, with record fiber deployment driving communications revenue expansion. Renewable energy investments, bolstered by extended tax credits through 2027, provide secular growth tailwinds. Grid modernization spending from utilities and the emergence of hyperscaler data center infrastructure represent additional growth catalysts.

MasTec’s backlog expanded 23% year-over-year, providing substantial revenue visibility. The stock has advanced 69.4% over the past twelve months and maintains a Zacks Rank of #2. While earnings estimates for 2025 have remained steady at $6.32 per share over the past 60 days, the company is positioned for explosive 60% earnings growth in 2025. The company’s earnings track record is similarly impressive—surpassing expectations in all trailing four quarters with an average surprise of 25.2%. The firm also carries an impressive VGM Score of A, indicating attractive value at current prices.

Dycom Industries: Dominating the Digital Infrastructure Wave

Dycom, headquartered in Palm Beach Gardens, Florida, specializes in telecommunications infrastructure contracting. The company is uniquely positioned to capitalize on the national broadband expansion initiatives and hyperscaler infrastructure investments, with federal and state programs totaling over $90 billion fueling project awards.

As telecommunications providers accelerate 5G deployment and fiber-optic network expansion, Dycom has emerged as an essential partner. Rising demand for fiber-to-the-home installations, elevated service and maintenance requirements, and expanding digital infrastructure work—particularly with major cloud computing providers—have fueled recent financial performance.

Over the past year, Dycom shares have gained 49%. The company maintains a Zacks Rank of #2, with fiscal 2026 earnings estimates revised upward to $10.01 per share from $9.91 over the past 60 days. The company has exceeded earnings guidance in all four trailing quarters, averaging a 22.4% upside surprise—a testament to conservative guidance and consistent execution.

Industry Headwinds: Understanding the Risks

While the growth narrative remains compelling, investors should acknowledge near-term headwinds. Persistent labor market tightness, elevated raw material costs, and evolving tariff policies—particularly regarding Chinese imports—create margin pressure for contractors. Macroeconomic volatility, including interest rate uncertainty and policy shifts, can affect customer capital spending decisions and project timing.

These cyclical challenges, however, do not undermine the structural strength of multi-year project backlogs and government funding commitments that extend beyond the current economic cycle.

The Investment Case

The heavy construction industry stands at an inflection point where multiple secular growth drivers—federal infrastructure investment, AI-driven data center demand, and digital network expansion—are converging. EMCOR, MasTec, and Dycom represent best-in-class operators with the technical expertise, financial resources, and market positioning to capture disproportionate growth. With all three carrying Zacks Rank #2 designations and demonstrating consistent earnings beat performance, these construction stocks merit consideration for investors seeking exposure to the infrastructure megatrend.