3 Stocks To Buy
Chicago Bridge & Iron Company (CBI)
While it’s not based in Chicago and it doesn’t build bridges, Chicago Bridge & Iron Company (CBI) could be one of the best energy infrastructure stocks to buy for building out America’s shale boom. The firm is a petrochemical construction powerhouse and has been involved in a variety petroleum-related projects — including the design and construction of some of the world’s largest onshore and offshore pipeline projects, LNG facilities and refineries.
CBI has been racking up new contracts like crazy. The latest include a $6 billion LNG export facility contract with Sempra Energy (SRE) and a $100 million contract to build pipelines & propane dehydrogenation unit for Enterprise Products Partners (EPD).
Those hefty contract wins, plus the forward P/E of just 14 — make CBI one of the best stocks to buy.
Like CBI, KBR specializes in a variety of oil and gas infrastructure projects — including LNG and gas-to-liquids (GTL) facilities. However, unlike CBI stock, KBR has recently run into a bit of trouble lately.
The firm reported terrible earnings and KBR stock sunk nearly 13.5% on the news. Currently, KBR stock trades for cheaper forward P/E than CBI, and it sports a higher dividend at 1.2%. At the same time, KBR continues to gain new contracts in the midstream and downstream segments of the energy markets. It has posted recent wins in oil sands processing as well as new natural gas-based fertilizer units.
Despite its recent troubles, KBR is still one of the better stocks to buy if you want to play the prospective infrastructure boom.
While it isn’t as big as KBR or CBI, MasTec (MTZ) is quickly becoming of the best energy stocks to buy. Shares of the construction firm recently hit 10-year highs.
MTZ continues to diversity away from its traditional core construction market of electric transmission and telecomm work. Its new focus has been pipelines, pipelines and more pipelines. Recent buys of private and smaller midstream-focused rivals has made MTZ into a pipeline specialist.
Those buys have translated into some serious earnings and profit growth at the firm. Oil & gas operation revenue jumped a whopping 103% during the last reported quarter.
Meanwhile, MTZ’s backlog of new projects jumped 23% versus last year to stand at $4.1 billion. That backlog of new midstream and pipeline projects is currently greater than the firm’s market cap. All in all, MTZ is small. But the small stature could make it one of the best energy stocks to buy in today’s market.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.