What’s Next for Construction Spending?

What’s Next for Construction Spending?

Construction isn’t just about buildings—it also encompasses engineering. Key players to watch include Fluor Corporation (FLR), Argan (AGX), Jacobs Engineering, and Aecon (ACM). These companies operate in diverse sectors, from oil and gas to data centers.

With DJT likely to push for more drilling, the oil and gas sector could see a boost.

 Case in point: Argan recently secured an engineering, procurement, and construction (EPC) contract with Sandow Lakes Energy for a natural gas-fired plant in Lee County, Texas.

 Despite uncertainty since the election, construction spending isn’t expected to slow down, especially with rising power demand. While stocks in the sector have taken a hit, these companies remain worth watching.

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All the companies above are fairly valued, with Jacobs having the lowest P/E ratio.

 As of February 8, 2025, the Price-to-Earnings (P/E) ratios for the specified companies are:

·         Fluor Corporation (FLR): 33.66

·         Argan, Inc. (AGX): 33.94

·         AECOM (ACM): 36.73

Based on IBD: 1/20/25

This blog is not investment advice; I am not an investment advisor but a blogger. You are investing at young risk. 


 

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