5 Best Construction & Engineering Stocks to Buy According to Wall Street

4. Construction Partners Inc. (NASDAQ:ROAD)

Construction Partners Inc. (NASDAQ:ROAD) is one of the 8 best construction & engineering stocks to buy according to Wall Street.

On April 2, B. Riley upgraded the rating from Neutral to Buy for Construction Partners Inc. (NASDAQ:ROAD) while significantly increasing the price target from $117 to $135. The firm noted that the recent 20% stock selloff caused by concerns around crude oil prices has resulted in attractive entry points for investors.

It is of the view that the company’s shares are actively pricing in cost pressures, with the impact hardly limited to $12 million of temporary EBITDA absorption within a pass-through business model. Furthermore, sources from the industry have indicated that the upcoming Surface Transportation bill is expected to be between $500 and $600 billion.

On April 1, Construction Partners Inc. (NASDAQ:ROAD) announced the completion of its acquisition of Four Star Paving LLC, a commercial paving contractor serving the Nashville, Tennessee metropolitan area. The acquisition further builds on Construction Partners’ footprint in middle Tennessee via its platform company, Pavement Restorations Inc.

Four Star has been in business for over 20 years, offering asphalt paving and construction-related services to municipalities, industries, and businesses. President and Chief Executive Fred J. Smith stated that Four Star was a long-standing customer of Construction Partners’ three Nashville-area plants prior to the acquisition. This brings much-needed construction capability, especially with the continued rapid growth of the population in the Nashville metro area.

Smith also expressed delight at the Four Star management team consisting of Robert Loudermilk, Brock Lodge, and Clint Hensley joining the Construction Partners family of companies. This deal further strengthens Construction Partners’ vertical integration approach within its Sunbelt operations in Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.

Construction Partners Inc. (NASDAQ:ROAD) is engaged in building and maintaining roadways. It provides goods and services for infrastructure projects for commercial and residential purposes. It is also involved in producing and selling hot mix asphalt and liquid asphalt cement. Additionally, it offers site development, installation of drainage systems, and mining aggregates.