News

At the moment the Zacks Engineering-R and D Services Industry is in the top 28% of over 250 Zacks industries and many of the stocks in the space are seeing sound growth.

These companies tend to serve as viable long-term investments as they are critical to the research and development of engineering that focuses on solving advanced technical problems with intelligent solutions. Even better, here are three Zacks Engineering-R and D Services Industry stocks that currently sport a Zacks Rank #2 (Buy) and have seen their stocks soar in 2024.

Sterling Infrastructure STRL

Sterling Infrastructure’s impressive backlog and balance sheet have been boosted by the growing trend of data center developments for artificial intelligence workloads along with its subsidiary Plateau being awarded the landmark site development project for Hyundai’s Engineering America EV battery facility in Georgia last year.

Additionally, Sterling Infrastructure has seen a spike in its transportation solutions revenue, and data centers now represent 40% of its backlog which currently stands at $961 million reflecting a 32% increase from Q1 2023. Expecting double-digit top and bottom-line growth in fiscal 2024 and FY25, Sterling Infrastructure’s stock has soared +41% year to date and is up an astonishing +451% in the last three years.

Image Source: Zacks Investment Research

Howmet Aerospace HWM

Providing engineered solutions for customers in the transportation and aerospace industries, Howmet Aerospace’s diversification is very compelling with its reach also extending to the automotive and industrial applications markets.

However, the company’s dominance in the aerospace market continues to stand out due to increased demand for air travel and defense spending which led to records in revenue, profit, margin, and earnings per share during the first quarter. Notably, Howmet Aerospace’s stock is up +98% YTD and has climbed +139% over the last three years. Correlating with its strong price performance, Howmet Aerospace is projected to post EPS growth of over 20% in FY24 and FY25 with double-digit sales growth in the forecast as well.

Image Source: Zacks Investment Research

M-tron Industries MPTI

As a manufacturer of highly engineered frequency and spectrum control products, M-tron Industries provides solutions for test and measurement equipment, computers, servers, and networks among other energy management solutions.

With a growing niche in engineered R&D services, M-tron Industries’ increased profitability is very intriguing. To that point, annual earnings are expected to climb 58% this year to $2.03 per share compared to $1.28 a share in 2023. Plus, FY25 EPS is projected to expand another 13%. This comes as total sales are forecasted to increase 9% in FY24 and FY25 with projections edging towards $50 million. As one of the market’s top performers this year M-tron Industries stock has skyrocketed +194% YTD with MPTI now up +150% since the company went public in August of 2022.

Image Source: Zacks Investment Research

Other Stocks to Watch

Also sporting a Zacks Rank #2 (Buy) and expected to post sound growth on thier botttom lines, Mayville Engineering (MEC) and Gates Industrial (GTES) are two other promising stocks to watch among the top-rated Zacks Engineering-R and D Services Industry.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

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

M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report

Mayville Engineering Company, Inc. (MEC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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