Wolfe Research Recommendation Overview
Wolfe Research identified six U.S. engineering and construction companies that it believes will benefit from robust power demand, renewable‑energy projects and data‑center construction.
MasTec (NYSE:MTZ)
MasTec is Wolfe’s top idea. The company recently completed the acquisition of The Superior Group in a transaction valued at approximately $1.65 billion. Following the deal, analysts including Guggenheim and TD Cowen raised their price targets. Wolfe expects MasTec to deliver a beat‑and‑raise quarter and to have the strongest upside to its full‑year guidance, with organic growth remaining the primary driver beyond the acquisition.
SOLV Energy (NYSE:MWH)
SOLV Energy priced a public offering of 15 million shares at $36 per share, generating gross proceeds of $540 million. The firm’s debt‑free balance sheet gives it flexibility for further acquisitions. Wolfe expects continued margin outperformance and sees backlog momentum and additional M&A opportunities. JPMorgan named the stock a top pick and Jefferies raised its price target.
Quanta Services (NYSE:PWR)
Quanta Services reported first‑quarter 2026 adjusted earnings and revenue that significantly exceeded analyst expectations. The company announced a new $1 billion stock repurchase programme and declared a quarterly cash dividend. Wolfe views Quanta as a core holding with consistent execution and expects guidance to be reiterated.
Primoris Services (NYSE:PRIM)
Primoris is positioned as a long‑term turnaround story. The company received an Overweight rating upgrade from JPMorgan, while Needham and Cantor Fitzgerald lowered their price targets after a revision to the outlook. Wolfe cites bookings and execution as key catalysts.
Legence (NYSE:LGN)
Legence posted first‑quarter 2026 earnings per share that beat analyst forecasts and revenue that grew 105 % year‑over‑year. S&P Global Ratings upgraded the company’s credit rating to BB‑ from B+. Wolfe notes strong execution but views further guidance increase as less likely.
NextPower (NYSE:NXT)
Wolfe is positive on utility‑scale solar demand for NextPower but seeks greater clarity on the integration of recent acquisitions and their impact on margins. Analyst actions have been mixed: Guggenheim upgraded the stock to Buy, while TD Cowen and Jefferies cut their price targets.
Sector Context
The engineering and construction sector continues to attract attention as companies benefit from increased U.S. spending on power infrastructure, renewable‑energy projects and data‑center construction.