This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Construction Stocks Leading Sector Rally

Stocks in this article: FLR JEC KBR FWLT ACM

BOSTON ( TheStreet) -- Construction and engineering, typically a boom-and-bust industry, has attracted big investor money this year as worldwide demand for new infrastructure and energy projects propel earnings.

Shares of companies in the construction and engineering (C&E) sector, such as Fluor (FLR) and Jacobs Engineering (JEC), have jumped an average of 13% this year versus 5.4% for the S&P 500 Index. That's the fifth-best-performing industry among more than 100 tracked by Standard & Poor's. C&E, a sub-industry of the industrials sector, is up 50% over the past 12 months.

Those returns are indicative of the big flow of funds going into developed-equities markets in the U.S., Japan and Europe, and out of emerging markets over the past few weeks. Fund-flows tracking firm EPFR Global recently said $47 billion flowed into developed markets, and the second week of February had the biggest inflows into those markets in over 30 months.

C&E includes multinational civil-engineering companies and large-scale contractors, but excludes homebuilders. These firms are seen benefiting from new power generation projects or improvements to existing ones, including coal-fired plants, oil & gas, and nuclear power plants as those firms have increased their capital spending budgets in the face of rising oil prices.

Another driver should be government work. President Obama has a $50 billion infrastructure plan to rebuild roads, railways and airport runways, and separately, last year Congress approved $45 billion of highway construction funds, a 10% increase from 2010.

Additionally, Congress is considering a new $450 billion transportation bill.

Here are five of the industry's biggest companies that should benefit from these growth trends:

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs