Truist Names Top Infrastructure Services Stocks

Investing.com -- Truist has identified leading opportunities in the infrastructure services sector, with Quanta Services topping the firm's rankings as the highest-quality name in the group, followed by MasTec, AECOM, and Fluor.

The rankings come as infrastructure services companies navigate industry bottlenecks while positioning for growth across power, communications, and energy infrastructure projects.

1. Quanta Services (PWR) - Truist recommends buying the pullback in Quanta Services, which it views as the highest-quality name in the group. The firm notes that Quanta's diversified exposure across the power value chain should enable it to outgrow even as industry bottlenecks remain real. Truist believes PWR is positioned for beats and raises, as well as double-digit backlog and earnings growth. Incremental upside could come from 765 kV transmission, additional gas-fired power opportunities, and underappreciated organic growth ultimately enabled by acquired capabilities.

2. MasTec (MTZ) - MasTec remains in the penalty box after lowering its Communications outlook, but Truist views this as a short-term setback. The firm continues to see a double-digit earnings-growth trajectory supported by transmission and distribution, renewables, gas pipeline, and an eventual recovery in Communications.

3. AECOM (ACM) - AECOM needs to demonstrate that its problem project is contained and that cost-to-complete assumptions remain on track, according to Truist. The company will also guide for fiscal year 2027. Truist expects organic growth at the low end of the company's target range amid headwinds from the restart of the construction management recovery, continued focus on the problem project, and less support for earnings per share growth following the suspension of share repurchases through the first half of 2027 pending greater clarity on project completion.

4. Fluor (FLR) - Truist believes Fluor's print will be less about the quarter and more about the 2027 earnings setup, with LNG Canada Phase 2 now in backlog following strong second quarter bookings.

All four stocks carry Buy ratings from Truist.

Original Article

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