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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Rallying Stocks as Construction Spending Grows

James Dennin, Kapitall: Construction spending was released this morning, so we found 5 Rallying stocks in the industry. ​

Construction spending rose, albeit modestly, by .01% this month. While the move may seem negligible, it is still significant because it climbed to its highest point since March, 2009. 

The gains are also noteworthy because they came at a time when Public Construction spending was decreasing. The Government Shutdown and the ensuing cuts were therefore offset by even bigger gains to private spending, which climbed to its highest levels since December 2008

Investing Ideas

Construction is an important bellwether for the economy as a whole. Improved construction output benefits firms in the industry as well as many of the producers of raw materials who provide material support. Moreover , people investing in their homes signals increasing optimism in the housing market. 

We built a list of stocks in the heavy construction sector that are rallying above their simple moving average for the last 50 days. 

The simple moving average (SMA 50) is an average of the prices that the stock has traded at over a set period of time. A stock which is trading above that figure can be said to be rallying. All 5 of these stocks were rallying as of 9:30 EST, before the markets opened.

That means they were performing well before the favorable construction report. Will they fare equally well afterwards? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart below to view data over time. 

1.Argan, Inc. ( AGX):Provides engineering, procurement, and construction services. Market cap at $393.26M, most recent closing price at $28.41.

Rallying 5.69% above its SMA50. 


2.Layne Christensen Co. ( LAYN):Provide drilling and construction services and related products to the water infrastructure and mineral exploration markets. Market cap at $328.67M, most recent closing price at $16.96.

Rallying 1.5% above its SMA50. 


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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