3 Infrastructure Stocks to Buy as They Build the Future
Investors may not find infrastructure and other similar companies exciting or attractive. But, they are a sector that has seen considerable growth and is always vital for the continued operations of our day-to-day lives. Industrial stocks to buy focus on improving infrastructure and should be at the top for investors looking for significant returns from a sector.
Below, I discuss a few infrastructure companies necessary for any investor looking to add to their portfolio. These stocks have seen record growth and are expected to keep going higher.
Fluor (FLR)
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Fluor (NYSE:FLR) is a construction company based in Irving, Texas. They engage in energy markets, including decarbonization, renewable fuels and nuclear power. They also serve the oil and gas industries and provide management services for the industrial, information technology and healthcare industries.
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Fluor released their third-quarter earnings for 2023 on Nov. 3, which stated that revenue grew 10% and net income jumped over nine-fold compared to the previous year. Their most considerable sales growth was from the urban solutions segments, which saw a 32% increase within the same period.
Within the last month, Fluor was awarded multiple multi-year contracts, including BHP Canada, an infrastructure company, to assist in developing their potash project in Saskatchewan. Altris AB, a battery producer, signed another engineering contract to service Sweden’s first large-scale sodium-ion battery plant.
Year-to-date, their share price has risen 12%. They are a solid infrastructure company with strong fundamentals, and having multiple segments of its business offers diversification within one company.
Limbach Holdings (LMB)
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Limbach Holdings (NASDAQ:LMB) is a building solutions business based in Warrendale, Pennsylvania. They design, fabricate, install and provide maintenance for electrical, plumbing, and HVAC systems. Limbach Holdings services hospitals, colleges, laboratories and other facilities.
Over the past year, their share price has increased 300%. This company has had investor attention for quite some time due to its steady growth and strong financial foundation.
On Nov. 2, Limbach Holdings announced that they acquired Industrial Air LLC, a similar specialty contracting company based in North Carolina. The deal was all-cash and cost $14 million.
Limbach’s stock price rose 18% directly following the release of their third-quarter earnings results. It stated an increase in revenue of 4%, and net income nearly doubled from the year before. The CEO also mentioned that the current market conditions are advantageous for them. They have a robust balance sheet, which still offers investors projected growth.
CECO Environmental (CECO)
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CECO Environmental (NASDAQ:CECO), located in Dallas, Texas, is a pollution reduction company in industrial air quality and water treatment. CECO designs and manufactures flow control products, expansion joints, dust collectors, filtration systems and other water treatment technology.
On Nov. 7, they released their earnings for the third quarter, which stated that net income increased 71% and revenue rose by 38% compared to Q3 2022. CECO raised its full-year outlook for overall revenue, expecting $525 million, up 24% compared to the end of last year. They also announced the acquisition of Kemco Systems during the third quarter. They are based in Florida and are a similar pollution reduction company that engages in water treatment and filtration.
CECO Environmental has had a great year so far, with positive earnings results for multiple quarters and a 78% growth in their stock price within the last year. It’s a great pick for investors looking for companies helping to reduce the effects of climate change and pollution.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
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