Industry Drivers Support Construction and Engineering Growth
Argan's 38% Stock Surge Signals Strength in Industrial Construction Boom
Alpha Picks stock winner, Argan, Inc. (AGX), surged 38% Friday, reminding investors that not all stocks are impacted by the same macro pressures. While markets remain focused on higher oil prices and inflation arising from geopolitical uncertainty, AGX delivered a blowout earnings report highlighted by a $2.9 billion project backlog, which provides clear earnings visibility into demand for large-scale power infrastructure.
This type of sector- and industry-specific strength reinforces an important theme in today's market. Select segments of the economy, particularly within Industrials, are benefiting from large-scale infrastructure investment trends that are not directly impacted by short-term macro volatility. In industries like Construction and Engineering, multi-year project backlogs can translate into earnings strength and continued price momentum.
How I Selected the Best Industrials Stocks to Buy Now
To select the best stocks to follow AGX's lead, I used the Seeking Alpha Stock Screener and targeted Quant Strong Buys. Then I selected the sector & industry filter so I could sort for targeted stocks in the Industrials sector and the Construction and Engineering industry. I dug further to find compelling backlog stories that reveal strong earnings visibility.
1. Sterling Infrastructure, Inc. (STRL)
- Market Capitalization: $12.89B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 03/30/2026): 7 out of 611
- Quant Industry Ranking (as of 03/30/2026): 1 out of 37
- Sector: Industrials
- Industry: Construction and Engineering
One of my Alpha Picks holdings, Sterling Infrastructure, is a market leader in large-scale E-infrastructure solutions like data centers, as well as transportation and manufacturing facilities. What sets STRL apart from many of its competitors is its increasing focus on higher-margin growth markets tied to AI, reshoring, and digital infrastructure. Like AGX, Sterling's strong backlog growth and sector-leading margins signal potential for earnings growth in 2026.
2. MasTec, Inc. (MTZ)
- Market Capitalization: $24.60B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 03/30/2026): 25 out of 611
- Quant Industry Ranking (as of 03/30/2026): 3 out of 37
- Sector: Industrials
- Industry: Construction and Engineering
MasTec, Inc. is a leading U.S.-based infrastructure company focused on energy, utility, and communications projects, including renewable energy and oil and gas pipeline construction. Its exposure extends to data center-related work, which opens further growth opportunities. With a growing backlog, MTZ is well-positioned to expand profitability and maintain its earnings visibility into 2026.
3. MYR Group Inc. (MYRG)
- Market Capitalization: $4.25B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 03/30/2026): 14 out of 611
- Quant Industry Ranking (as of 03/30/2026): 2 out of 37
- Sector: Industrials
- Industry: Construction and Engineering
A construction and engineering industry leader for more than 130 years, MYR Group provides large-scale electrical construction services for utilities and commercial customers, including data centers. This gives MYRG a strong competitive advantage, as backlog strength is supported by rising power demand.
Conclusion: Industrials Sector Maintains Growth Potential
AGX's 38% surge following Friday's earnings highlights a broader theme, which is the potential for Industrials, particularly select Construction and Engineering companies, to benefit from cyclical demand. Furthermore, while the geopolitical and macro environment weighs on market sentiment, high-quality companies like STRL, MTZ, and MYRG with strong backlogs can attract investor attention and continue pre-war price momentum.
