Currently in the top 35% of over 250 Zacks industries, The Zacks Engineering-R and D Services Industry continues to stand out among the industrial products sector.   

With a captivating total return of +35% year to date, this industry has impressively outperformed the broader indexes in 2024.

That said, here are a few of the industry’s top stocks that investors may want to consider. 

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Top Infrastructure Stocks

Coveting a Zacks Rank #1 (Strong Buy), Arcadis ARCAY and Sterling Infrastructure’s STRL stock have been two top contributors regarding the strong price performance of the Zacks Engineering-R and D Services Industry.

Arcadis stock has spiked +33% this year as an international provider of consultancy, planning, and architectural design for buildings among other infrastructure-related activities. Also specializing in infrastructure for building and transportation solutions, Sterling Infrastructure shares have soared nearly +70% in 2024.

Their stellar rallies could continue as earnings estimate revisions have trended higher making their increased probability and steady top line growth more compelling. Expecting over 20% EPS growth in fiscal 2024 and FY25, Arcadis’ bottom line has expanded significantly since the pandemic.

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Sterling Infrastructure’s annual earnings have hit new heights as well with EPS expected to increase 26% in FY24 and projected to rise another 6% next year to $6.02 per share. Plus, FY24 and FY25 EPS estimates have risen over 5% in the last 60 days respectively.

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Aerospace Engineer Leader

Sporting a Zacks Rank #2 (Buy) is Howmet Aerospace HWM, a provider of engineered solutions for customers in the transportation and aerospace industries. With its reach extending to commercial and defense aerospace markets, Howmet’s stock has shot up +80% YTD.

This comes as Howmet has now reached or exceeded earnings expectations for 15 consecutive quarters as illustrated by the green arrows in the EPS surprise chart below.

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Despite such an extensive rally, earnings estimates have remained higher in the last two months with Howmet’s EPS projected to climb 41% in FY24 and forecasted to soar another 22% in FY25 to $3.16 per share.

Furthermore, Howmet's total sales are projected to increase over 10% in FY24 and FY25 with projections edging toward $8 billion.

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Bottom Line

The expansion of these top engineering companies has led to stellar gains for their stocks. Now may be a good time to buy considering EPS estimates are higher with Arcadis, Sterling Infrastructure, and Howmet Aerospace checking an “A” Zacks Style Scores grade for Growth.

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Arcadis NV (ARCAY) : Free Stock Analysis Report

Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report

Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report

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