After a strong 2017 for the construction industry and most signs pointing to continued growth, it might be a great time to jump on some construction and homebuilding industry stocks.
Three-quarters of U.S. construction firms plan to increase their payrolls in 2018, according to a new survey from the Associated General Contractors of America. Last year, the construction industry added 210,000 new jobs, which marked a 35% year-over-year jump, according to the Bureau of Labor Statistics. Spending climbed in the real estate sector, commercial and residential industry and in private construction projects.
“Construction firms appear to be very optimistic about 2018 as they expect demand for all types of construction services to continue to expand,” Associated General Contractors of America CEO Stephen E. Sandherr said in a statement.
“This optimism is likely based on current economic conditions, an increasingly business-friendly regulatory environment and expectations the Trump administration will boost infrastructure investments.”
With that said, let’s take a look at three construction stocks that investors might want to scoop up before the spring-time building boom really picks up.
1. Fastenal Company (FAST – Free Report)
Last week, this industrial and construction supply wholesale giant posted Q4 sales that climbed 14.8% year-over-year. Fastenal’s strong fourth-quarter helped its shares climb to a new all-time high of $56.73 per share on Wednesday. However, it doesn’t seem like the company will have a hard time breaking into a new range as its growth is expected to continue.
Looking ahead to the first quarter of 2018, Fastenal is projected to see its revenues surge 10.63% to hit $1.16 billion, based on our current Zacks Consensus Estimates. Earnings are expected to jump by 30.43% in the quarter. Fastenal is currently a Zacks Rank #2 (Buy) and sports “A” grades for both Growth and Momentum in our Styles Scores system.
