Top 5 U.S. Engineering Stocks to Watch According to Citi’s Latest Rankings

Investing.com -- U.S. engineering stocks are showing strong potential for growth amid increasing infrastructure demands and technological expansion.

According to Citi’s latest analysis, several companies in this sector stand out for their robust backlog, strategic positioning, and earnings growth potential. Here’s a closer look at the top performers in the U.S. engineering sector.

1. Quanta Services (PWR): Quanta Services leads Citi’s rankings as its top pick in the engineering sector. The company continues to "check all the boxes" with strong topline visibility, solid execution, and strategic capital deployment that positions it for mid-teens or higher EPS growth long-term.

PWR’s alignment with end markets that have durable growth outlooks provides a healthy framework for continued expansion.

Despite potential headwinds from lower emergency restoration work in 2025, PWR’s strong backlog and disciplined execution should enable it to deliver on the higher end of its 2025 EPS guidance.

The company has generated an impressive +25% adjusted EPS CAGR from 2015-2025E, with continued mid-teens growth expected through 2026-2027.

Following a quarterly report that featured a slight increase in its backlog, Quanta Services has received several analyst upgrades, including a new Buy rating from Jefferies, which cited expected market expansion in data centers and renewables.

2. MasTec (MTZ): Ranked as Citi’s #2 pick, MTZ benefits from exposure to solid and resilient end markets supported by secular trends and federal funding.

The company’s elevated 18-month backlog of approximately $16.5 billion (up from $13.3 billion in Q2 2024) provides robust topline visibility through 2025-2026. MTZ’s Pipeline Infrastructure segment shows particularly good visibility toward a multi-year upcycle driven by broad power-related needs.

More recently, MasTec received an upgrade to Outperform from Wolfe Research, which anticipates a favorable inflection point in gas infrastructure spending, while firms like KeyBanc and Stifel also noted positive momentum in the company’s growth prospects.

3. Fluor Corporation (FLR): While FLR faces softer bookings in the near term, Citi notes that its SMR (Small Modular Reactor) monetization has begun and its relatively attractive "core" valuation could support stock re-rating.

The company maintains a healthy backlog of $28.2 billion (approximately 80% reimbursable), providing solid topline visibility despite current headwinds from client investment delays amid tariff and macro uncertainty.

FLR’s successful conversion and sale of 15 million Class B NuScale shares for $605 million in proceeds demonstrates its monetization strategy, with the company still holding 111 million shares representing approximately 39% of NuScale’s equity.

This position offers significant financial flexibility for addressing liabilities or pursuing share repurchases.

Fluor Corporation reported revenue of $4 billion in its second-quarter 2025 earnings release and also announced a series of executive leadership changes as part of its succession planning process.

Each of these engineering firms is seen as strategically positioned to benefit from ongoing infrastructure development, grid modernization, and the expanding needs of data centers and power generation facilities across the United States.

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