Among the Zacks Rank #1 (Strong Buy) list, several construction and industrial products sector stocks may be poised to soar as we progress through the spring and summer, which are the peak seasons for industrial production.

Although tariffs can impact construction-related activities, it’s hard to ignore these highly ranked stocks as they appear to have priced in the potential risk of higher imported materials.

The Electrical & Mechanical Construction Giant

EMCOR Group’s EME price tag of $375 a share may look bodacious amid broader market volatility, but the leading provider of mechanical and electrical construction has seen its stock fall 31% from a 52-week high of $545. Serving commercial, industrial, utility, and institutional clients, EMCOR’s total sales are projected to increase by 13% in fiscal 2025 and are forecasted to expand another 4% in FY26 to $17.19 billion.

Most daunting is EMCOR’s robust bottom line, with annual earnings expected to increase 8% this year and projected to spike another 9% in FY26 to a whopping $25.40 per share. Magnifying EMCOR's stellar growth is that EME trades at a reasonable 15.1X forward earnings multiple and at less than 2X sales.

Image Source: Zacks Investment Research

The Undervalued Single-Family Home Builder

As one of the leading designers and builders of single-family homes in the United States, Meritage Homes MTH stock is very appealing near its 52-week lows of $59 a share. To that point, MTH is trading at just 7X forward earnings, a slight discount to its Zacks Building Products-Home Builders Industry average and well below the benchmark S&P 500’s 20.8X. Plus, at current levels, MTH offers a generous 2.58% annual dividend yield.

Image Source: Zacks Investment Research

Coming off of a record year that saw EPS at an eye-popping $21.44, Meritage’s bottom line is naturally expected to contract but the company’s earnings potential makes buying the dip more tempting with MTH appearing to be in oversold territory.

Image Source: Zacks Investment Research

E-Infrastructure, Building & Transportation Solutions Leader

There hasn’t been an abundance of buy the dip opportunites for Sterling Infrastructure’s STRL stock in recent years due to the company's rapid expansion as a cornerstone to advancing infrastructure in the U.S., including next-generation manufacturing for data centers.

STRL was my most recent pick for the Zacks Bull of the Day at the beginning of the month with this year's dip appearing to be a healthy correction. That said, advancements in AI have led to peak demand for Sterling Infrastructure's data center solutions while signing new interstate roadway projects in Utah and Colorado. Trading just over $130, STRL is still down 21% year to date but has skyrocketed +3,000% over the last decade and is now up +17% in April.

Image Source: Zacks Investment Research

Bottom Line

With construction activities picking up as the warmer spring and summer months approach, there could be an abundance of upside for EMCOR Group, Meritage Homes, and Sterling Infrastructure stock, especially as recent market volatility has created an ideal buy-the-dip scenario. 

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

EMCOR Group, Inc. (EME) : Free Stock Analysis Report

Meritage Homes Corporation (MTH) : Free Stock Analysis Report

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research