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.
5. Quanta Services, Inc. (NYSE:PWR)
Upside Potential: 15.49%
Quanta Services, Inc. (NYSE:PWR) attracted additional Wall Street support on May 20 when CICC initiated coverage of the stock with an Outperform rating and an $872 price target. The initiation reflects growing confidence in Quanta’s ability to benefit from large-scale investments in electric grid modernization, renewable energy infrastructure, and telecommunications networks.
Earlier, on May 4, UBS raised its price target on Quanta Services, Inc. (NYSE:PWR) to $900 from $646 while maintaining a Buy rating. The substantial increase underscores the firm’s confidence in the company’s growth prospects and its leadership position in critical infrastructure services. UBS believes Quanta’s diversified exposure to electric power, renewable energy, telecommunications, and pipeline infrastructure provides a strong foundation for sustained revenue and earnings growth over the coming years.
Quanta Services, Inc. (NYSE:PWR) is a leading specialized contracting services company headquartered in Houston, Texas, and was founded in 1997. The company designs, builds, upgrades, and maintains infrastructure for electric utilities, renewable energy developers, telecommunications providers, and pipeline operators.
4. Jacobs Solutions Inc. (NYSE:J)
Upside Potential: 30.75%
Jacobs Solutions Inc. (NYSE:J) strengthened its position in the utility and infrastructure consulting market on June 4 after being selected by SSEN Transmission for multiple strategic frameworks with a combined potential value exceeding $1 billion. The agreements will support the modernization of northern Scotland’s electricity transmission network and include operational technology cybersecurity, substation design, and digital services. The projects are designed to improve grid resilience, enhance network security, and facilitate greater integration of renewable energy resources, further reinforcing Jacobs’ reputation as a trusted partner on large-scale infrastructure modernization initiatives.
Earlier, on May 6, KeyBanc analyst Sangita Jain lowered the firm’s price target on Jacobs Solutions Inc. (NYSE:J) to $150 from $154 while maintaining an Overweight rating. Although operating margins were affected by the resolution of a legacy joint-venture matter, the company reported stronger-than-expected revenue and raised its full-year guidance for net service revenue and EBITDA margin. KeyBanc highlighted strong momentum in data center-related projects, robust growth in critical infrastructure operations, and expectations for improving activity in life sciences later in the year, all of which support a favorable long-term outlook.
Jacobs Solutions Inc. (NYSE:J) is a global professional services firm headquartered in Dallas, Texas, and was founded in 1947. The company provides consulting, engineering, design, project management, and technology solutions across infrastructure, environmental services, water systems, life sciences, advanced manufacturing, cybersecurity, and energy markets.
3. MasTec, Inc. (NYSE:MTZ)
Upside Potential: 34.20%
MasTec, Inc. (NYSE:MTZ) continued to gain support from the analyst community on May 20 when CICC initiated coverage of the company with an Outperform rating and a $480 price target. The initiation reflects confidence in MasTec’s ability to capitalize on long-term infrastructure investment trends across energy, communications, and utility markets.
Earlier, on May 13, JPMorgan raised its price target on MasTec, Inc. (NYSE:MTZ) to $491 from $471 while maintaining an Overweight rating. The revised target underscores the firm’s optimism regarding the company’s growth prospects and operational execution. JPMorgan’s continued bullish stance reflects expectations that MasTec will remain a key participant in several of the fastest-growing infrastructure markets, including renewable energy, power delivery, and communications networks, all of which are expected to attract substantial capital investment in the years ahead.
MasTec, Inc. (NYSE:MTZ) is a North American infrastructure construction and engineering company headquartered in Coral Gables, Florida, with roots dating back to 1929. The company specializes in designing, building, installing, and maintaining complex infrastructure systems across communications, renewable energy, power generation and transmission, pipeline, and industrial sectors.
2. Construction Partners, Inc. (NASDAQ:ROAD)
Upside Potential: 35.66%
Construction Partners, Inc. (NASDAQ:ROAD) attracted fresh analyst attention on June 3 when Truist initiated coverage of the stock with a Hold rating and a $130 price target. The firm described Construction Partners as a leading road-paving consolidator benefiting from solid organic growth, driven by strong highway funding and its strategic concentration in the rapidly expanding Southeastern United States. While Truist cited recent share-price outperformance and asphalt cost inflation as reasons for a more cautious stance, the firm acknowledged the company’s favorable positioning within the infrastructure construction market.
Earlier, on May 11, Baird analyst Andrew Wittmann raised the firm’s price target on Construction Partners, Inc. (NASDAQ:ROAD) to $169 from $129 and reiterated an Outperform rating. The significant increase reflects confidence in the company’s growth strategy, acquisition-driven expansion, and ability to capitalize on sustained public-sector infrastructure spending. Baird’s bullish outlook suggests that Construction Partners continues to benefit from favorable industry fundamentals and strong demand for road construction and maintenance services throughout its operating regions.
Construction Partners, Inc. (NASDAQ:ROAD) is a vertically integrated civil infrastructure company headquartered in Dothan, Alabama, and was founded in 1999. Ranking second among the best civil engineering stocks to buy for smart city projects, it focuses on the construction and maintenance of highways, roads, bridges, airport runways, and other transportation-related infrastructure.
1. AECOM (NYSE:ACM)
Upside Potential: 49.83%
AECOM (NYSE:ACM) strengthened its position in the defense infrastructure market on May 21 after securing the top ranking on Defence Construction Canada’s National Architecture & Engineering Source List. The multi-year program carries a potential value of up to C$270 million and will support the Department of National Defence in delivering critical infrastructure projects across Canada. Under the agreement, AECOM will provide comprehensive planning, engineering, architectural, and construction support services for facilities, including aircraft maintenance buildings, high-security offices, military accommodations, training centers, and other strategically important assets. The award highlights the company’s strong reputation in managing complex public-sector infrastructure programs.
Earlier, on May 19, Barclays lowered its price target on AECOM (NYSE:ACM) to $90 from $110 while maintaining an Equal Weight rating following the company’s fiscal second-quarter results. Although the firm noted a lack of near-term catalysts and an ongoing market re-rating of asset-light businesses, it also acknowledged AECOM’s strong multi-year growth profile and consistent free-cash-flow generation. The analyst described the stock as attractively valued despite the absence of an immediate catalyst for multiple expansion.
AECOM (NYSE:ACM) is a multinational infrastructure consulting firm headquartered in Dallas, Texas, and was founded in 1990. The company provides planning, engineering, architectural design, environmental consulting, construction management, and program management services for public and private-sector clients worldwide.
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