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Technology stocks have been hot for many years and for good reason, although at different times, certain corners of the tech industry soar as companies in those areas capture the imagination of investors.

However, one largely unsung area of technology is engineering. After all, engineers with a broad range of expertise have long been helping to drive the latest technologies forward. As such, every February and March bring a full week dedicated to appreciating engineers and one day devoted to sustainable engineering.

First, in 1951, the National Society of Professional Engineers dubbed the week of Feb. 18-24 as Engineers Week. More recently, UNESCO declared March 4 as World Engineering Day for Sustainable Development. Thus, this seems like an excellent time to look at some engineering stocks, so here are five interesting small- and micro-cap ideas.

Babcock & Wilcox Enterprises

Babcock & Wilcox (BW) offers clean-energy solutions in the form of decarbonization technologies through its advanced emissions-control equipment. The company also engineers more efficient ways to tap into the energy found in a broad range of fuel types. Babcock & Wilcox's overall focus is on reducing greenhouse gasses, which it does in three different ways.

The company's Renewable division targets smart energy generation by inventing new ways to create clean energy. It's also working to make energy infrastructure cleaner by utilizing and recycling resources to create clean, renewable energy from municipal solid waste, biomass, solar energy, and other sources.

Babcock & Wilcox's Environmental division focuses on decarbonization through carbon capture, cooling systems, ash handling, and state-of-the-art equipment designed to reduce particulate, mercury, nitrogen oxide, sulfur dioxide, acid gas, and other harmful substances in the atmosphere. Finally, the company's Thermal division works on improving efficiencies through steam generation.

Brenmiller Energy

Brenmiller Energy (BNRG) offers proprietary, high-temperature thermal-energy storage solutions. The company's bGen is a patented energy-storage unit that uses solid-state material in the form of crushed rocks. The unit is charged electrically or thermally and then delivers steam or hot air whenever needed.

The company's solutions are modular and can be deployed at various scales ranging from industrial to large-scale power plants. For example, industrial facilities can decarbonize the heat they produce, instead generating clean steam, hot water or hot air.

On the other hand, power plants can be made more flexible by shifting their excess heat to peak hours, allowing for faster ramp-up with higher maximum and lower minimum loads. Brenmiller highlighted some of its projects on its website, including its work with the New York Power Authority, global sustainable-power company Enel Group, Brazilian water-storage service provider Fortlev, and the Israel Defense Forces (IDF).

FARO Technologies

FARO Technologies (FARO) provides solutions for 3D measurement, imaging and realization across a wide range of applications with a goal of bringing speed and precision to manufacturing, engineering, architecture, construction, public safety and other industries.

Touting itself as "the global leader in 3D measurement, imaging and realization solutions," FARO aims to bridge the physical and digital worlds with its many offerings. The company helps manufacturers avoid expensive errors and supports construction companies as they build. It also helps law enforcement agencies build better cases and provides engineers, designers and investigators with the tools to get things done faster.

Among the many industries FARO services are aerospace and defense, architecture engineering and construction, automotive, shipbuilding, industrial plant and power, heavy equipment, energy and natural resources, and fire investigation. Applications for the company's technologies include quality control and inspection, product design and engineering, production, fabrication, and assembly, design layout, and others.

Helios Technologies

Helios Technologies (HLIO) develops hydraulic and electronic solutions, defining itself as "a global leader in highly engineered motion control and electronic controls technology." The company serves a wide variety of different industries through various applications.

Helios designs and manufactures hydraulic cartridge valves, quick-release couplings, and customized electronic controls systems and displays to serve the agriculture, energy and marine industries, among many others. The company also serves the recreational, health and wellness, commercial equipment, mobile, and industrial markets.

Helios serves its various end markets through several operating companies, including Balboa Water Group, Enovation Controls, Faster, and Syn Hydraulics.

Ideal Power

(Disclaimer: Ari Zoldan is CEO of Quantum Media Group, LLC, and Ideal Power is a client of Quantum Media Group.) Ideal Power (IPWR) has created a patented, bidirectional semiconductor power switch called the B-TRAN. The company addresses several markets, including electric vehicles and EV chargers, renewable-energy solutions, energy storage, data centers, solid-state circuit breakers, and various other industrial and military applications.

The bidirectional design allows a single B-TRAN to replace two or more conventional power switches in many uses. It also slashes conduction losses, reduces the complexity of thermal management, and cuts operating costs in AC power switching and control circuitry.

Testing has revealed that EVs utilizing B-TRAN have been found to offer extended range versus EVs that don't. Additionally, renewable-energy installations that use Ideal Power's technology have been found to generate more kilowatt hours of energy than those that use conventional switching solutions.

The company recently started shipping its new SymCool power modules, which incorporate its B-TRAN switches, to fulfill initial customer orders. The SymCool modules target applications like inverters for solar and wind energy, EVs and EV charging, solid-state switchgear, and industrial inverters.

Investing in engineering stocks

A key benefit of investing in engineering stocks is that they cover a wide variety of different market areas, allowing for significant portfolio diversification. Additionally, the engineering services market is large and growing, and demand for engineers will never disappear.

Although sales projections vary widely, one estimate pegged the industry at $1.67 trillion in 2024 with a compound annual growth rate of 4.2% through 2029, bringing its value to $2.04 trillion. Notably, the U.S. earmarked $52.7 billion to semiconductor R&D and manufacturing through the CHIPS and Sciences Act in 2022, so chipmaking is one area of engineering that could see significant growth in the U.S. in the coming years.

Of course, investors are always advised to do their due diligence before investing in any industry or stock.

Disclosure: Ari Zoldan is CEO of Quantum Media Group, LLC, and Ideal Power is a client of Quantum Media Group.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.