We recently published a list of 11 Best Engineering Stocks to Invest in Now. In this article, we are going to take a look at where Granite Construction Incorporated (NYSE:GVA) stands against other best engineering stocks to invest in now.

The global engineering services market was valued at $3.26 trillion in 2023, as reported by Grand View Research. It’s projected to grow at a CAGR of 5.5% from 2024 to 2030, due to several driving factors. Technological advancements, particularly the integration of automation, AI, and IoT, are dramatically enhancing productivity and operational efficiency. Simultaneously, rapid urbanization and substantial government investments are driving increased infrastructure development worldwide. Stringent environmental regulations are also forcing an emphasis on sustainable solutions, which further propels this market expansion.

According to ALLPLAN, the architecture, engineering, and construction (AEC) industry collectively is undergoing a fundamental shift, with sustainability transitioning from an optional consideration to an essential imperative. As the urgency of climate change intensifies, the built environment faces increasing pressure to minimize its environmental impact and contribute to global net-zero targets. The engineering industry is actively exploring and implementing innovative sustainable solutions. The adoption of green building materials, such as recycled aggregates and low-carbon concrete, is gaining traction as a means of reducing environmental footprints and promoting circular construction principles. Energy-efficient designs that incorporate passive strategies and renewable energy systems are becoming standard practice. The rise of smart cities, which are powered by IoT and AI, further underscores the industry’s commitment to urban sustainability.

Technology is pivotal for driving sustainable practices. Building Information Modeling (BIM) and Digital Twins empower engineering teams to optimize designs, reduce material waste, and enhance operational efficiency, which leads to more sustainable project outcomes. Automation and prefabrication are reshaping construction methodologies by minimizing both material waste and energy consumption. Real-time monitoring systems, which use IoT and AI, provide critical data for informed decision-making. Achieving sustainability in engineering projects necessitates a proactive and collaborative approach. Lifecycle assessments, localized material sourcing, and robust monitoring systems are essential engineering strategies. By embracing principles of technological innovation and collaborative engineering practices, engineers are mitigating the environmental impact of their projects and creating more resilient and sustainable infrastructure.

Our Methodology

We used the Finviz stock screener to compile an initial list of top engineering stocks. We then selected 11 engineering stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A construction worker in full protective gear using heavy machinery to build a bridge.

Granite Construction Incorporated (NYSE:GVA)

Number of Hedge Fund Holders: 41

Granite Construction Incorporated (NYSE:GVA) delivers engineering and construction solutions for large-scale infrastructure projects. These include roads, bridges, and complex site developments, alongside the production of core construction materials. Its expertise extends to projects in sectors like mining, public safety, and energy.

The Construction segment at the company is experiencing a robust market, with state transportation budgets near record levels. California’s 2025-2026 budget sees increases in key transportation areas. About 75% of the segment’s revenue comes from publicly funded projects, which are supported by the Federal Infrastructure Bill (IIJA). The remaining 25% is private work, which includes water and rail infrastructure.

In Q4 2024, the segment won more work year-over-year, though Contract Awarded Projects (CAP) decreased slightly sequentially. However, CAP is expected to increase in 2025, with backlog quality improving. Granite Construction Incorporated (NYSE:GVA) is securing best-value projects within its core markets using existing relationships for larger and lower-risk projects. This strategy has improved project execution and margin expansion.

Overall, GVA ranks 9th on our list of best engineering stocks to invest in now. While we acknowledge the growth potential of GVA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.