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.

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.