Construction sector facing challenges, but 5 stocks predicted to beat Q1 earnings

From Nasdaq: 2025-04-28 13:10:00

The U.S. construction sector is slowing down, facing challenges like high borrowing costs and labor shortages. Companies like Dream Finders Homes, Primoris Services, PotlatchDeltic Corporation, Martin Marietta Materials, and MasTec are expected to beat earnings in the current cycle, with a decline in sector earnings by 20% and 4.2% lower revenues.

Factors like federal spending on infrastructure projects and residential housing shortages are influencing the construction sector’s performance. Public works projects are seeing increased activity, while residential construction faces challenges like high mortgage rates and rising costs. Commercial construction varies, with industrial and warehouse projects thriving but office and retail struggling.

For the first quarter, the construction sector is expected to experience a decline in earnings by 12.8% and a 3.3% drop in revenues. To identify winning stocks, using the Zacks methodology is essential, combining a Zacks Rank and Earnings ESP to predict positive earnings surprises. Five construction stocks, including Dream Finders Homes and Primoris Services, are highlighted for their potential in the current earnings season.



Read more at Nasdaq:: 5 Construction Stocks Set to Carve a Beat in Q1 Earnings