Infrastructure

8 Infrastructure Giants Could Continue to Bring Upside for Investors

AECOM

This top provider of architecture and engineering design services in the United States and abroad operates in three segments: Design and Consulting, Construction, and Management. AECOM (NYSE: ACM) services the transportation, environmental and energy sectors. It also serves key infrastructure projects such as highways, airports, bridges, wastewater facilities and power transmission and distribution. If infrastructure spending as a whole is growing, AECOM is likely in the major infrastructure investing cross-hairs. Its shares have sputtered for much of 2017, with a share price of $35.29 being lower than the $37.82 when it was featured in early 2017. That being said, AECOM was a $27 stock just days before the 2017 election results.

AECOM shares have a 52-week trading range of $26.65 to $40.72. The consensus analyst price target of $39.70 has been more or less flat for 90 days but is lower than the $43.50 consensus analyst target from earlier this year. Its market cap was last seen at $5.5 billion, down from a previous $5.9 billion. Analysts expect that revenue of $17.4 billion in 2016 will grow to $17.9 billion in 2017 and ultimately to $19.5 billion in 2019.

Caterpillar

Caterpillar Inc. (NYSE: CAT) needs no introduction. The company’s shares have exploded higher in 2017 after having been left for dead in prior years. If one American equipment giant will win from orders here and abroad, Caterpillar will find a way. This Dow Jones Industrial Average component has a dividend yield of about 2.4%, and trading at $137.70 after third-quarter earnings, it pays a hefty dividend. Its stock has continued to defy those who have tracked its monthly global and North American sales trends as the sole basis to invest.

Caterpillar traded under $100 back in March, and its $137.70 share price might spook many investors. The consensus price target was under $95 earlier this year, and now the consensus analyst target price is $144.45. After earnings, firms with the higher targets were as follows: BMO ($165); UBS ($155); Wells Fargo ($160); Argus ($155); Stifel and Citigroup (both $145); and Deutsche Bank ($149).

Fluor

Irving, Texas-based Fluor Corp. (NYSE: FLR) has been a disappointment for infrastructure investors. The engineering, procurement, construction, maintenance and project management services provider sells to government and private industry in five groups: Oil & Gas, Industrial & Infrastructure, Government, Global Services and Power. Some investors may think the sell-off has been too harsh here, with shares at $42.75 after being near $56.00 in March of this year.

Flour has a consensus analyst price target that is now down to about $45 from above $57 earlier this year. Its market cap is about $6 billion, and it is already winning post-storm infrastructure contracts.

Granite Construction

This civil engineering player in infrastructure projects works on streets and roads, highways and bridges. Granite Construction Inc. (NYSE: GVA) also works in sites underground and in power-related facilities, utilities and other large projects. The company also mines and processes aggregates and sells construction materials for operations of infrastructure and heavy construction.

Granite Construction shares were trading at $55 when first featured at the beginning of March, and shares were at $57.70 on last look in October. Its market cap is $2.3 billion, and the 52-week range is $42.59 to $62.18. Granite’s consensus price target was about $65 when we covered it in March, but that consensus target price is currently about $66.

Jacobs Engineering

Jacobs Engineering Group Inc. (NYSE: JEC) is based in Pasadena, California, and is involved in almost every level of infrastructure planning and consulting to both government clients and to private industry. Much of Jacobs Engineering’s effort is international, and it has about 200 offices.

Shares of Jacobs Engineering were just under $58 at the start of March and the stock was last seen at $58.55. Shares have traded in a 52-week range of $49.16 to $63.42, and the current consensus analyst target price is $59.40.