The global engineering services market was valued at $3.26 trillion in 2023, as reported by Grand View Research. It’s projected to grow at a CAGR of 5.5% from 2024 to 2030, due to several driving factors. Technological advancements, particularly the integration of automation, AI, and IoT, are dramatically enhancing productivity and operational efficiency. Simultaneously, rapid urbanization and substantial government investments are driving increased infrastructure development worldwide. Stringent environmental regulations are also forcing an emphasis on sustainable solutions, which further propels this market expansion.
According to ALLPLAN, the architecture, engineering, and construction (AEC) industry collectively is undergoing a fundamental shift, with sustainability transitioning from an optional consideration to an essential imperative. As the urgency of climate change intensifies, the built environment faces increasing pressure to minimize its environmental impact and contribute to global net-zero targets. The engineering industry is actively exploring and implementing innovative sustainable solutions. The adoption of green building materials, such as recycled aggregates and low-carbon concrete, is gaining traction as a means of reducing environmental footprints and promoting circular construction principles. Energy-efficient designs that incorporate passive strategies and renewable energy systems are becoming standard practice. The rise of smart cities, which are powered by IoT and AI, further underscores the industry’s commitment to urban sustainability.
Technology is pivotal for driving sustainable practices. Building Information Modeling (BIM) and Digital Twins empower engineering teams to optimize designs, reduce material waste, and enhance operational efficiency, which leads to more sustainable project outcomes. Automation and prefabrication are reshaping construction methodologies by minimizing both material waste and energy consumption. Real-time monitoring systems, which use IoT and AI, provide critical data for informed decision-making. Achieving sustainability in engineering projects necessitates a proactive and collaborative approach. Lifecycle assessments, localized material sourcing, and robust monitoring systems are essential engineering strategies. By embracing principles of technological innovation and collaborative engineering practices, engineers are mitigating the environmental impact of their projects and creating more resilient and sustainable infrastructure.
Given this context, we’re here with a list of the 11 best engineering stocks to invest in now.
A team of construction workers managing a complex engineering project.
Our Methodology
We used the Finviz stock screener to compile an initial list of top engineering stocks. We then selected 11 engineering stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Engineering Stocks to Invest in Now
11. AECOM (NYSE:ACM)
Number of Hedge Fund Holders: 31
AECOM (NYSE:ACM) is a global leader in infrastructure engineering that provides services that range from design and planning to construction and program management. It specializes in tackling complex projects across transportation, water, energy, and environmental sectors. It delivers critical solutions for governments and private clients worldwide.
The company’s Americas Design segment stands as a primary revenue driver with a 9% increase in Net Service Revenue (NSR) during FQ1 2025. This was fueled by transportation project acquisitions in the US and Canada, as well as contributions from the Water, Environment, and Facilities divisions. The segment is capitalizing on the Infrastructure Investment and Jobs Act (IIJA) funding, with less than 35% currently deployed, which ensures prolonged revenue visibility.
The company achieved a 100% win rate in its largest and most strategic pursuits in this quarter. AECOM (NYSE:ACM) is expanding its addressable markets through high-margin advisory services by using its existing engineering strengths. Specifically, it is developing the Water and Environment Advisory business intending to double its current $200 million annual NSR within three years. This initiative, like the Program Management business which tripled in four years, uses the company’s technical expertise to meet growing client demand.
10. Argan Inc. (NYSE:AGX)
Number of Hedge Fund Holders: 33
Argan Inc. (NYSE:AGX) delivers specialized engineering and construction solutions that are focused on the power generation sector. This includes large-scale energy projects and alternative energy facilities. It also provides industrial construction and telecom infrastructure services which encompass underground and aerial cabling for communication and power networks.
The company’s Power Industry Services segment is focused on the engineering and construction of power facilities. It saw a 65% year-over-year revenue surge to $173.8 million in FQ2 2025 and accounted for 77% of the company’s total quarterly revenue. This growth was driven by projects like the 950-megawatt natural gas-fired power plant under the name of Trumbull Energy Center and the 405-megawatt solar field.
The segment’s project backlog includes $570 million in renewable projects, which represents 91% of the current backlog that supports low or zero carbon emissions. Argan Inc. (NYSE:AGX) anticipates growth in the Power Industry Services segment due to the increasing energy demand. The company is actively pursuing new projects using its expertise in complex power facility construction.
9. Granite Construction Incorporated (NYSE:GVA)
Number of Hedge Fund Holders: 41
Granite Construction Incorporated (NYSE:GVA) delivers engineering and construction solutions for large-scale infrastructure projects. These include roads, bridges, and complex site developments, alongside the production of core construction materials. Its expertise extends to projects in sectors like mining, public safety, and energy.
The Construction segment at the company is experiencing a robust market, with state transportation budgets near record levels. California’s 2025-2026 budget sees increases in key transportation areas. About 75% of the segment’s revenue comes from publicly funded projects, which are supported by the Federal Infrastructure Bill (IIJA). The remaining 25% is private work, which includes water and rail infrastructure.
In Q4 2024, the segment won more work year-over-year, though Contract Awarded Projects (CAP) decreased slightly sequentially. However, CAP is expected to increase in 2025, with backlog quality improving. Granite Construction Incorporated (NYSE:GVA) is securing best-value projects within its core markets using existing relationships for larger and lower-risk projects. This strategy has improved project execution and margin expansion.
8. Primoris Services Corporation (NYSE:PRIM)
Number of Hedge Fund Holders: 42
Primoris Services Corporation (NYSE:PRIM) delivers infrastructure engineering and construction services. It installs and maintains utility systems and provides EPC solutions for the energy sector, which includes renewables and petrochemicals. Its expertise extends to fabrication and replacement services, which support a range of infrastructure projects.
The company’s Renewables segment saw revenue approach $2 billion in 2024. This growth was driven by the strong demand for solar EPC, battery storage, and O&M services. The segment’s Q4 bookings reached nearly $900 million, which contributed to a record-high backlog of $3.1 billion. Ancillary solar businesses, which include battery storage and O&M, now contribute ~10% of Renewables revenue.
Primoris Services Corporation (NYSE:PRIM) is expanding its team and customer base to meet the sustained high demand for its renewable energy solutions. While gross margins for the Renewables segment declined slightly to 11% in 2024 due to lower pipeline activity year-over-year, the overall growth trajectory remained positive. The company is actively managing potential challenges related to tariffs and regulatory changes through close customer communication.
7. Jacobs Solutions Inc. (NYSE:J)
Number of Hedge Fund Holders: 42
Jacobs Solutions Inc. (NYSE:J) provides engineering and consulting services, which encompass infrastructure design, advanced facility development, and project management across diverse sectors. Its expertise spans planning, architecture, and construction, with a focus on delivering complex engineering solutions to government and private clients.
The company’s Infrastructure and Advanced Facilities segment is focused on Water and Environmental Services, which saw adjusted net revenue rise by 11% year-over-year in FQ1 2025. This growth spanned all major geographies, with key project wins. These include a 10-year contract for the JXN Water treatment system, which benefits 180,000 residents, and the involvement in the $15.4 billion River Torrens to Darlington project in Australia and the BusConnects Dublin program in Ireland.
Operating profit for the Infrastructure and Advanced Facilities segment increased by 26% year-over-year in FQ1. Jacobs Solutions Inc. (NYSE:J) anticipates growth in this segment due to a strong backlog and pipeline. The company’s strategic positioning in key markets and expertise in critical infrastructure development ensures sustained momentum.
6. Fluor Corporation (NYSE:FLR)
Number of Hedge Fund Holders: 48
Fluor Corporation (NYSE:FLR) delivers engineering, procurement, and construction (EPC) solutions across diverse sectors. These include urban infrastructure, energy (both traditional and renewable), and government projects. Its expertise spans complex project management, fabrication, and technical consulting, with a focus on delivering large-scale and mission-critical infrastructure.
The company’s Urban Solutions segment reported a Q4 2024 profit of $81 million. New awards totaled $1.4 billion, and the year-end backlog surged 20% year-over-year to $17.7 billion. This growth is driven by projects in Advanced Technologies & Life Sciences (ATLS), Mining and Metals, and Infrastructure. In ATLS, the company secured an additional $243 million for Lilly’s LP1 project and won further semiconductor tool installation work.
It’s also targeting the data center market with agreements with major developers. Mining and Metals won a project in Australia and anticipates tens of billions in potential awards for resource expansion. Infrastructure projects like Gordie Howe and LAX Automated People Mover are progressing. As older projects near completion, Fluor Corporation (NYSE:FLR) is selectively pursuing new opportunities in Texas, North Carolina, and the Netherlands. For 2025, the company expects growth in Urban Solutions, with segment margins projected at 4% to 5%.
ClearBridge Small Cap Growth Strategy added Fluor Corporation (NYSE:FLR) to its portfolio due to its position to benefit from high-priority investments from its strong market position and improved financials. It stated the following regarding the company in its Q4 2024 investor letter:
2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor Corporation (NYSE:FLR) and Modine.
Fluor is one of the largest engineering, procurement and construction firms, with global scale supporting megaprojects across various end markets. With an improved contract structure mix and balance sheet, the company is poised to benefit from an array of high-priority investment projects in markets such as data centers, GLP-1 manufacturing, mining and nuclear energy.
5. Comfort Systems USA Inc. (NYSE:FIX)
Number of Hedge Fund Holders: 50
Comfort Systems USA Inc. (NYSE:FIX) specializes in the engineering, installation, and maintenance of mechanical and electrical systems. It provides MEP solutions for new and existing buildings across the US. Its services encompass HVAC, plumbing, electrical, and fire protection, with a focus on design, engineering, and remote monitoring for commercial, industrial, and institutional clients.
The company’s Mechanical segment experienced substantial growth in 2024, with full-year revenue increasing by 40% year-over-year. This was driven by acquisitions, modular expansion, and significant organic construction and service growth. The segment’s performance contributed to a record-breaking year for the company, with overall revenue reaching $7 billion, which was a 35% increase from 2023.
The Mechanical segment’s backlog is robust and broadly based, with contributions from the industrial sector, which accounted for over 60% of the company’s 2024 volume. This includes the growing technology sector which encompasses data centers and chip fabs that represented 33% of the company’s revenue. Modular construction, which is a key component of the Mechanical segment, accounted for 17% of the total 2024 revenue.
Carillon Chartwell Small Cap Growth Fund stated the following regarding Comfort Systems USA Inc. (NYSE:FIX) in its first quarter 2024 investor letter:
“Another strong performer was Comfort Systems USA, Inc. (NYSE:FIX). The company is a modular construction company, involved in manufacturing plant and data center construction. Given strong demand trends, the company is reporting record growth and backlogs.”
4. EMCOR Group Inc. (NYSE:EME)
Number of Hedge Fund Holders: 55
EMCOR Group Inc. (NYSE:EME) delivers specialized engineering and construction services. With a focus on electrical and mechanical systems, it facilitates maintenance and industrial solutions across the US and the UK. It designs, installs, and maintains complex systems like power generation, HVAC, and communication networks.
The US Mechanical Construction segment at EMCOR Group Inc. (NYSE:EME) generated revenues of $1.66 billion in Q4 2024, which marked a 12.8% year-over-year increase. This growth was driven by the strong demand in the network and communications sector (data centers), high-tech manufacturing, and healthcare. The segment also benefited from increased service work, which reflected the expansion of its mechanical and fire protection maintenance base.
The company is confident in the underlying demand drivers of the manufacturing and industrial sectors, which is supported by a 7% year-over-year increase in manufacturing RPOs (Remaining Performance Obligations). EMCOR Group Inc. (NYSE:EME) is positioned to capitalize on growing markets due to its expertise in complex mechanical and piping systems, VDC (Virtual Design and Construction), and prefabrication capabilities.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding EMCOR Group Inc. (NYSE:EME) in its first quarter 2024 investor letter:
Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. EMCOR Group, Inc. (NYSE:EME) supplies electrical, mechanical, and facilities services. The company’s strong results fueled a 62% increase in the stock price. Highlights from the quarter included improved margins and a record level of backlog. We trimmed the position on this strength.
3. KBR Inc. (NYSE:KBR)
Number of Hedge Fund Holders: 56
KBR Inc. (NYSE:KBR) delivers advanced scientific, technology, and engineering solutions, with a focus on government and commercial projects globally. Its expertise encompasses systems engineering, cyber analytics, and program management for defense and space sectors. It also offers proprietary process technologies and sustainable solutions for the energy and industrial markets.
The company’s Sustainable Technology Solutions (STS) segment experienced growth in 2024, with Q4 revenues increasing by 30% year-over-year and full-year revenues rising by 17%. This was driven by the demand for the company’s ammonia, energy security, and decarbonization offerings, which include LNG projects. Key engineering projects in the past quarter included the deployment of the company’s ammonia process technology in Angola and Kazakhstan. This showcased its expertise in complex chemical plant design and construction.
KBR Inc.’s (NYSE:KBR) involvement in LNG projects like Shell’s Manatee LNG and Oman LNG highlights its proficiency in large-scale energy infrastructure engineering. The partnership with Mura Technology, which uses its Hydro-PRT advanced plastics recycling process, demonstrates the company’s commitment to developing and deploying cutting-edge chemical engineering solutions for sustainability.
Cove Street Capital Small Cap Value Fund stated the following regarding KBR Inc. (NYSE:KBR) in its Q2 2024 investor letter:
“On the plus side, KBR, Inc. (NYSE:KBR) has been a strong performer so far YTD on the back of an investor day in the second quarter that highlighted the success of the last four-year plan (2020-2023) before laying out ambitious but credible targets for the next 4 years (2024- 2027). Since 2020, KBR has pivoted their commercial business away from high-risk EPC projects to a more differentiated IP-first consulting approach that now sees 20% EBIT margins and contributes 40% of their overall profitability. KBR has cleaned up their balance sheet by settling convertible notes and warrants and now sits at a healthy 2x net leverage. With the upcoming ramp of a $20B government services contract with the U.S. army, the company is well positioned to generate cash and return value to shareholders.”
2. MasTec Inc. (NYSE:MTZ)
Number of Hedge Fund Holders: 60
MasTec Inc. (NYSE:MTZ) is an infrastructure construction company that provides engineering, building, and maintenance services across communications, energy, utility, and civil sectors in the US and Canada. It offers wireless and fiber communications infrastructure, renewable energy projects, pipeline construction, power delivery systems, and heavy civil engineering.
The company’s Clean Energy and Infrastructure segment experienced record-breaking performance in Q4 2024 and achieved its highest revenue quarter in history at $1.26 billion. This was an 18% year-over-year increase. This performance was driven by growth across all three verticals: renewables, infrastructure, and industrial. For the full year 2024, the segment’s revenue was ~$4.1 billion. The segment’s backlog reached $4.2 billion, which was up 36% year-over-year increase.
This segment excels in large-scale and technically demanding projects that require specialized engineering skills in design, construction, and project management. The company expects continued growth here, with revenue projected to be ~$4.75 billion, which indicates a 16% increase. MasTec Inc. (NYSE:MTZ) has a focus on customer and project selection, improved project timing and risk management, and expanded execution teams.
1. Quanta Services Inc. (NYSE:PWR)
Number of Hedge Fund Holders: 67
Quanta Services Inc. (NYSE:PWR) provides infrastructure engineering and construction solutions across the electric and gas utility, renewable energy, communications, and pipeline sectors globally. It designs, constructs, and maintains critical infrastructure, which includes power transmission and distribution, renewable energy facilities, and underground utility systems.
Roth MKM initiated coverage of the company on February 21 with a Buy rating and a $350 price target. Analysts emphasized that this engineering, procurement, and construction company is one of the best-positioned companies in supporting the electrical infrastructure build-out for data centers and AI. The company’s Renewable Energy Infrastructure Solutions segment is integrated into the Electric Infrastructure Solutions segment and achieved a record-high twelve-month total backlog in 2024.
The increasing demand for renewable energy sources, coupled with grid modernization needs, positions Quanta Services Inc. (NYSE:PWR) at the center of large-scale energy infrastructure development. The company’s diversified service lines, self-perform capabilities, and craft skill workforce allow for flexible resource deployment across various geographies, industries, and service lines. This approach is valued by clients as they navigate the evolving energy landscape.
While we acknowledge the growth potential of Quanta Services Inc. (NYSE:PWR), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PWR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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