The demand for infrastructure services will surge as governments around the world prioritize upgrading and expanding essential networks. From transportation and energy to water systems and telecommunications, infrastructure stocks to buy offer promising growth potential for investors.
These companies often enjoy stable cash flows, supported by essential services and government contracts. Moreover, advancements in technology and sustainability initiatives continue to drive innovation within the infrastructure sector. With favorable tailwinds blowing, savvy investors may want to consider adding the top infrastructure stocks to their April buy list.
Now, let’s discover the top three infrastructure stocks to buy in April!
Quanta Services (PWR)
Quanta Services (NYSE:PWR) is a leading North American provider of infrastructure solutions, primarily for the electric power, energy and telecom sectors. They’re involved in both building and maintaining infrastructure, making them well-positioned to benefit from the surge in infrastructure spending.
Quanta’s growth over the last several years reflects the company’s strong demand. They have averaged 23% revenue growth over the last 3 years, while also delivering exceptional bottom-line results. Moreover, its FCF has grown substantially and eclipsed the $1 billion mark for the first time in 2023. In FY23, revenue increased 22% YOY, with net income up 52% to $744.69 million. Additionally, PWR’s backlog hit an all-time high of $30.11 billion, further highlighting the company’s continued expansion. Management’s strong execution has led to significant revenue growth and profits while generating robust cash flow from operations. With double-digit growth in adjusted EBITDA, EPS and FCF, PWR stock is among the best infrastructure stocks to buy in 2024.
Caterpillar (CAT)
Caterpillar (NYSE:CAT) is the most notable infrastructure stock on the market, offering a wide range of products used in various infrastructure projects. The company has consistently demonstrated strong financial performance, even amid supply chain constraints and tougher macroeconomic conditions.
Caterpillar is set to be one of the major beneficiaries of the Infrastructure Investment and Jobs Act. The company’s extensive distribution network and established brand reputation position the company to capitalize on the influx of construction activity expected in the U.S. and across the globe. Right now, the construction equipment market is at the end of the cycle meaning growth may be much slower in FY24. However, it is laying the foundation for accelerated growth towards the end of the decade. In Q1 FY24, revenue was largely flat due to lower sales volume. EPS was $5.75 per share, with its operating margin up 510 bps. Caterpillar’s continued margin expansion and strong FCF are positive signs as the company navigates the end of the cycle.
Dycom Industries (DY)
Dycom Industries (NYSE:DY) is a provider of specialty contract services for the telecommunications industry. It plays a vital role in the expansion and maintenance of high-speed broadband networks, essential for supporting the growing demand for data connectivity.
Dycom’s expertise in fiber optics and wireless infrastructure services makes it well-placed to benefit from the continuous rollout of 5G networks. With the proliferation of 5G and IoT, Dycom’s services remain in exceptionally high demand. Furthermore, as governments and the private sector continue to invest in broadband infrastructure, Dycom’s expertise makes it a noteworthy candidate for growth. In FY24, revenue increased 9.6% YOY to $4.17 billion. Net income increased 54% YOY to $218.9 million, or $7.37 per share. The company delivered record results in the 2024 fiscal year and repurchased 485,000 worth of shares on the open market in January of this year. That helps instill confidence in shareholders, making Dycom one of the top infrastructure stocks to buy now.
On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.