10 Best Construction Stocks to Buy Now

6. Knife River Corporation (NYSE:KNF)

Number of Hedge Fund Holders: 27

Knife River Corporation (NYSE:KNF) provides aggregates- led construction materials and contracting services. Oppenheimer analyst Ian Zaffino remains optimistic about the company’s growth prospects. As per the analyst, the demand environment remains strong and Infrastructure Investment and Jobs Act spending is a tailwind in Knife River Corporation (NYSE:KNF)’s markets. If the initiatives to upgrade and expand infrastructure materialize, the company can see a significant increase in demand for their products and services.

Furthermore, the trend towards sustainable and environmentally friendly construction practices can present new avenues for the company. Furthermore, strategic acquisitions can offer a pathway to growth. Knife River Corporation (NYSE:KNF) can expand its product offerings, enter new markets, or achieve economies of scale, resulting in an improved competitive position. Also, DA Davidson is positive on its Strata acquisition. Knife River Corporation (NYSE:KNF) expects Strata to be accretive to its adj. EBITDA margin within the first year. Strata’s high-quality assets enable the company to expand its service territory and the acquisition can add high-quality, complementary assets. Apart from Strata, Knife River Corporation (NYSE:KNF)’s deal pipeline remains strong, and its healthy capital position provides it with significant capacity to pursue strategic growth opportunities.