The numbers from Automatic Data Processing (ADP) are out, and they claim that the United States added 216,000 jobs in the private sector in the month of February. This marks a distinct jump from January's upwardly revised 173,000 jobs. While the big, government jobs report from the Labor Department that most economists find more reliable is due out Friday, the ADP report continues to pump up those bulls who see a slow but steady recovery on the horizon for the American economy.
So which sectors would be most likely to benefit most from a bounce back in the economy? Obviously, higher employment is likely to be good for everyone, but one sector is likely to benefit greatly from an improved economy: heavy construction. Construction tends to be heavily reliant on the overall economy as businesses and people are more likely to postpone any major projects at a time when money is tight or outlooks aren't as strong. However, with the belief that an economic recovery is chugging along, that should mean that heavy construction stocks are on the rise. So, here are six stocks in the heavy construction industry that are on the rise so far this year.
Fluor Corporation (FLR)
Market Cap: $9.95 billion Year-to-date Gain: 17.19 percent
Originally founded in Oshkosh, WI in 1922, Fluor is currently based out of Irving, TX. With over 41,000 employees in more than 25 countries, Fluor provides professional engineering, construction, and maintenance services.
Foster Wheeler (FWLT)
Market Cap: $2.46 billion Year-to-date Gain: 19.49 percent
This Swiss construction firm serves industries including oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, metals and mining, power generation and power plant operation and maintenance. The company is up almost 20 percent this year despite a swoon early in March. Through February 24, Foster Wheeler was up over 34 percent.
McDermott International (MDR)
Market Cap: $3.25 billion Year-to-date Gain: 20.24 percent
McDermott International is an engineering firm that specializes in marine solutions for the oil and gas industry. Based out of Houston, TX, McDermott was formerly J.Ray McDermott but changed its name after spinning off Babcock & Wilcox (BWC).
Great Lakes Dredge & Dock Corporation (GLDD)
Market Cap: $415.08 million Year-to-date Gain: 26.62 percent
Great Lakes Dredge & Dock provides dredging services throughout the United States as well as a variety of other services through various subsidiaries.
Matrix Service (MTRX)
Market Cap: $331.02 million Year-to-date Gain: 36.33 percent
Matrix Service, based out of Tulsa, OK, provides construction and repair services to the energy sector in all 50 US states and Canada.
Empresas ICA (ICA)
Market Cap: $1.17 billion Year-to-date Gain: 51.88 percent
This Mexican construction company is the largest of its kind in Mexico and services Mexico and Latin American countries.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer