Construction Company Stock Rally: Why These 3 Infrastructure Plays Are Dominating Markets Right Now

The infrastructure construction sector is experiencing a remarkable transformation, and savvy investors are taking notice. While most people focus on the obvious tech winners, the real money might be flowing into a completely different corner of the market: heavy construction and infrastructure companies.

The Numbers Tell the Story

Here’s what makes this moment special: over the past 12 months, stocks in the building products and heavy construction space have delivered a stunning 51.5% collective return—outpacing the broader construction sector’s 3.2% decline and significantly beating the S&P 500’s 18.5% gain. These aren’t flashy tech stocks; they’re solid construction company stocks solving real problems.

The Zacks Building Products - Heavy Construction industry currently ranks at #32 out of 250+ industries, placing it squarely in the top 13%. Translation: analysts are increasingly confident in this group’s near-term earnings potential. Since mid-2025, the industry’s 2025 earnings estimates have climbed to $6.52 per share, up from $5.90—a clear signal of growing confidence.

Why Now? The Perfect Storm of Catalysts

1. The Infrastructure Megaproject Wave

Federal spending on transportation networks, broadband expansion, and clean energy initiatives has created an unprecedented pipeline of projects. This isn’t speculative—it’s already funded and underway. Construction company stock prices have responded because the revenue visibility is genuine.

2. Data Centers Are Creating New Demand

The AI explosion has triggered explosive demand for data center infrastructure. Large-scale site development, power systems, and specialized mechanical installations are creating high-value, multi-year contracts. For construction companies with national execution capabilities and deep technical expertise, this is a goldmine.

3. Telecom and 5G Infrastructure

5G deployment and fiber-optic expansion programs represent another sustained tailwind. With over $90 billion in state and federal programs supporting broadband buildout, telecom-focused construction contractors are positioned for years of steady work.

4. Renewable Energy and Grid Modernization

Utilities are aggressively modernizing electrical grids, while renewable energy investments benefit from extended federal tax credits through 2027. This stability contrasts sharply with cyclical market segments.

The Valuation Picture

The industry trades at a 23.47 forward P/E ratio—essentially in line with the S&P 500’s 23.55, but compared favorably against the broader construction sector’s 19.98. Over the past five years, the industry has ranged from 10.53X to 23.47X, with a median of 16.38X. This suggests current valuations reflect genuine growth expectations without extreme frothiness.

Three Construction Company Stocks Worth Your Attention

EMCOR Group (EME): The Execution Machine

Based in Connecticut, EMCOR delivers electrical and mechanical services across the U.S. and U.K., benefiting from infrastructure, healthcare, and data center project demand. The company’s record backlog and disciplined execution have fueled impressive momentum.

Key metrics:

• Zacks Rank #2 (Buy) rating
• Up 54.9% over the past year
• 2025 EPS estimates recently increased to $25.19 (from $25.11)
• Expected earnings growth: 17.1% YoY
• Beat earnings expectations in all four trailing quarters (average beat: 16.8%)

MasTec (MTZ): The Infrastructure Darling

This North America-focused infrastructure construction leader operates across communications, clean energy, power delivery, and pipelines. MasTec is riding multiple growth vectors simultaneously: fiber deployment for broadband, AI data center buildouts, renewable energy, and grid modernization.

Key metrics:

• Zacks Rank #2
• Up 69.4% over the past year (the strongest performer of the three)
• Backlog up 23% year-over-year
• 2025 EPS expected to jump 60% YoY
• Beat earnings expectations in all four trailing quarters (average beat: 25.2%)
• Carries an impressive VGM Score of A

Dycom Industries (DY): The Telecom Specialist

Headquartered in Florida, Dycom is a specialty contracting firm focused on telecommunications infrastructure. As carriers accelerate 5G and fiber deployments, and hyperscalers expand digital infrastructure spending, Dycom benefits from sustained demand in both traditional telecom work and cutting-edge data center support services.

Key metrics:

• Zacks Rank #2
• Up 49% over the past year
• Fiscal 2026 EPS estimates recently increased to $10.01 (from $9.91)
• Beat earnings expectations in all four trailing quarters (average beat: 22.4%)

The Bottom Line

The heavy construction sector is often overlooked because it lacks the glamour of technology. But when federal spending aligns with corporate capital expenditure cycles, and when major infrastructure tailwinds converge—as they’re doing right now—the returns can be substantial. All three of these construction company stocks carry Buy ratings from Zacks, have demonstrated consistent execution, and are positioned to benefit from years of infrastructure spending.

For investors seeking exposure to the infrastructure cycle without the volatility of speculative growth plays, this sector deserves serious consideration.