These Top Engineering Stocks Are Industrial Products Standouts
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Recently in the top 35% of over 250 Zacks industries, The Zacks Engineering R&D Services Industry continues to stand out among the industrial products sector. With a captivating total return of around +35% year-to-date, this industry has impressively outperformed the broader indexes in 2024.
That said, here are a few of the industry’s top stocks that investors may want to consider.
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Top Infrastructure Stocks
Boasting Zacks Rank #1 (Strong Buy) ratings, Arcadis NV (ARCAY - Free Report) and Sterling Infrastructure (STRL - Free Report) have been two top contributors regarding the strong price performance of the Zacks Engineering R&D Services Industry.
Arcadis' stock spiked approximately +33% this year as an international provider of consultancy, planning, and architectural design for buildings, among other infrastructure-related activities. Also specializing in infrastructure for building and transportation solutions, Sterling Infrastructure's shares have soared nearly +70% in 2024.
Their stellar rallies could continue as earnings estimate revisions have trended higher, making their increased probability and steady top line growth even more compelling. While expecting over 20% EPS growth in fiscal 2024 and FY25, Arcadis’ bottom line has expanded significantly since the pandemic.
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Sterling Infrastructure’s annual earnings have hit new heights as well, with EPS expected to increase 26% in FY24 and projected to rise another 6% next year to $6.02 per share. Plus, FY24 and FY25 EPS estimates have risen over 5.3% and 5.7%, respectively, in the last 60 days.
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Aerospace Engineer Leader
Similarly sporting a Zacks Rank #1 (Strong Buy) rating is Howmet Aerospace (HWM - Free Report), a provider of engineered solutions for customers in the transportation and aerospace industries. With its reach extending to commercial and defense aerospace markets, Howmet’s stock has shot up around +80% year-to-date.
This comes as Howmet has now reached or exceeded earnings expectations for 15 consecutive quarters, as illustrated by the green arrows in the EPS surprise chart below.
Image Source: Zacks Investment Research
Despite such an extensive rally, earnings estimates have remained higher in the last two months, with Howmet’s EPS projected to climb 41% in FY24 and forecasted to soar another 22% in FY25 to $3.16 per share.
Furthermore, the company's total sales are projected to increase over 10% in FY24 and FY25, with projections edging toward $8 billion.
Image Source: Zacks Investment Research
Bottom Line
The expansion of these top engineering companies has led to stellar gains for their stocks. Now may be a good time to look into buying shares, as EPS estimates are higher, with Arcadis, Sterling Infrastructure, and Howmet Aerospace checking an “A” Zacks Style Scores grade for Growth.
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