In this article, we will discuss 7 Best Civil Engineering Stocks to Buy for Smart City Projects.
The next trillion-dollar investment opportunity may not come from Silicon Valley; it may be built beneath your feet.
As governments around the world pour hundreds of billions of dollars into smart city projects, next-generation transportation networks, digital infrastructure, and climate-resilient urban development, civil engineering companies are emerging as some of the most overlooked beneficiaries of one of the largest construction booms in modern history.
Legendary investor Warren Buffett has long favored infrastructure-related businesses that generate durable cash flows and provide essential services to the economy. Ray Dalio has similarly warned that aging infrastructure, urbanization, and economic modernization will require enormous investment in physical assets over the coming decades. Ken Griffin has also highlighted the growing importance of infrastructure, logistics, and industrial development as governments seek to strengthen economic competitiveness and supply-chain resilience.
The numbers behind the opportunity are significant. According to the United Nations, nearly 70% of the world’s population is expected to live in urban areas by 2050, creating unprecedented demand for transportation, housing, utilities, and digital connectivity. Meanwhile, market research projects the global smart city market could exceed $6 trillion by the early 2030s, driven by investments in intelligent infrastructure, energy management, and connected public services. Industry studies also estimate that global infrastructure spending needs could surpass $90 trillion by 2040 to support economic growth and modernization.
For investors seeking exposure to the physical backbone of the digital economy, civil engineering stocks may offer a front-row seat to one of the most powerful infrastructure megatrends of the 21st century.
With this context in mind, here are some of the best civil engineering stocks to buy for smart city projects.
Our Methodology
We used stock screeners to identify a list of civil engineering stocks with positive upside potential. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.
“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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).”
7 Best Civil Engineering Stocks to Buy for Smart City Projects
7. Sterling Infrastructure, Inc. (NASDAQ:STRL)
Upside Potential: 5.83%
Sterling Infrastructure, Inc. (NASDAQ:STRL) earned strong support from analysts on June 2 when KeyBanc raised its price target on the stock to $922 from $889 while maintaining an Overweight rating. The firm pointed to accelerating demand for site preparation work associated with large-scale data center campuses, noting that these projects are becoming larger and more numerous. KeyBanc believes Sterling has established itself as a best-in-class provider of site preparation services, leveraging its deep expertise in heavy civil and transportation construction while expanding into higher-value downstream opportunities through a targeted mechanical, electrical, and plumbing growth strategy.
Earlier, on May 28, Oppenheimer initiated coverage of Sterling Infrastructure, Inc. (NASDAQ:STRL) with an Outperform rating and a $950 price target. The firm highlighted the company’s transformation through acquisitions into a leading specialty infrastructure contractor serving major projects tied to technology and manufacturing customers. Oppenheimer also noted that Sterling’s expansion beyond traditional civil construction and site development into electrical construction services should enable the company to capture a larger share of customer spending while strengthening its competitive position across critical infrastructure projects.
Sterling Infrastructure, Inc. (NASDAQ:STRL) is a diversified construction and infrastructure services company headquartered in The Woodlands, Texas. Originally founded in 1955 as Oakhurst Company, Inc., the business designs, builds, and maintains essential infrastructure throughout the United States.
6. Comfort Systems USA, Inc. (NYSE:FIX)
Upside Potential: 13.68%
Comfort Systems USA, Inc. (NYSE:FIX) received a favorable initiation on June 5 when Erste Group began coverage of the stock with a Buy rating. The firm noted that management expects sales growth in the mid-to-high 20% range during 2026, supported by sustained demand from technology-sector customers. Erste also highlighted expectations for gross margins to remain near recently achieved elevated levels, reflecting the company’s ability to execute complex projects while maintaining pricing discipline and operational efficiency.
Previously, on May 28, Oppenheimer initiated coverage of Comfort Systems USA, Inc. (NYSE:FIX) with an Outperform rating and a $2,200 price target. The firm described the company as uniquely positioned to address growing demand for highly sophisticated facilities, particularly those requiring advanced mechanical, electrical, and plumbing systems. Oppenheimer further stated that Comfort Systems has a strong likelihood of sustaining or even exceeding its recent pace of earnings growth, given its exposure to some of the fastest-growing construction markets in the United States.
Comfort Systems USA, Inc. (NYSE:FIX) is a national provider of mechanical, electrical, and plumbing contracting services headquartered in Houston, Texas, and was founded in 1996. The company designs, installs, maintains, and services building systems for commercial, industrial, and institutional facilities.
While we acknowledge the potential of FIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FIX and that has 100x upside potential, check out our report about the cheapest AI stock.
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