Chicago Bridge & Iron Company N.V. (CBI), Fluor Corporation (NEW) (FLR): How to Profit From Surging LNG Project CapEx

A few weeks back, Deutsche Bank upgraded the stock on the back of a strong LNG pipeline. The firm sees margins increasing in the LNG segment ultimately helping earnings to nearly double from $2.75 in 2013 to $5.50 in 2016. With the average analyst only expecting earnings of $3.17 in 2014, the company would need to see a significant increase during the 2015 and 2016 years.

Bottom line

With the boom in shale gas production in North America, the market for LNG capital expenditures is expected to explode over the next few years. Domestic engineering stocks should benefit greatly from this growth. Chicago Bridge & Iron Company N.V. (NYSE:CBI) is the top pick in the sector though analysts make a great case for KBR as well. Fluor is probably best as a general pick on the overall increased need for engineering work as the global economy rebounds.

The article How to Profit From Surging LNG Project CapEx originally appeared on Fool.com and is written by Mark Holder.

Mark Holder and Stone Fox Capital Advisors, LLC have no positions in any stocks mentioned. The Motley Fool owns shares of Fluor Corporation (NEW) (NYSE:FLR). Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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