7 Best Construction Stocks To Buy According to Analysts

5. Fluor Corporation (NYSE:FLR)

Average Analyst Price Target Upside: 17.5%

Number of Hedge Fund Holders: 30

Fluor Corporation (NYSE:FLR) is a Texas-based engineering and construction firm founded in 1912. It started its business by building oil refineries and pipelines in California before expanding its operations globally. The company offers its products, services, and solutions to several industries including energy, chemicals, manufacturing, infrastructure, mining, metals, advanced technologies, and life sciences.

Its engineering, procurement, and construction (EPC) services span the entire project lifecycle, from conceptual design to operations and maintenance. In the energy sector, its expertise includes consulting, design-build, and operations for oil and gas production, processing, renewable fuels, and renewable energy projects.

Fluor (NYSE:FLR) has over 50 years of experience providing engineering, procurement, and construction management (EPCM) solutions across many manufacturing sectors, including food and beverage, advanced materials, sustainable products, robotics, and synthetic graphite.

It excels in managing complex projects from concept to commissioning, emphasizing cost efficiency and technological advancements. The company offers specialized services in advanced materials, smart battery production, and fast-moving consumer goods.

On August 30, TipRanks reported that Analyst Andrew Wittmann from Robert W. Baird maintained a Buy rating on Fluor (NYSE:FLR) with a price target of $54.00. The analyst mentioned its expected earnings growth in the latter half of the year, which is expected to continue into 2025. The company’s comprehensive EPC capabilities are in high demand, which points to a favorable market for its services.

Wittmann also pointed to the positive developments in the company’s ongoing projects and the steady earnings increase from new, higher-margin contracts, including notable projects like Pantex and Lily. While some projects may see reduced contributions, the company is set for additional awards in the latter half of 2024, especially in high-margin ventures such as the Romanian pre-FEED project.

The analyst noted that the forthcoming strategic plan may include shareholder returns, such as share buybacks, supporting his positive outlook on the company’s growth and stability.

Fluor’s (NYSE:FLR) average analyst price target among 11 analysts is $54, representing an upside of 17.5% from current levels, as of September 25. This ranks the company at 5 on our list of best construction stocks to buy according to analysts.