The AI Infrastructure Stocks Are on Sale: Buy Now

• (0:20) - Should You Be Buying The Dip In AI Infrastructure?
• (7:50) - Performance Breakdown of Stocks On Sale
• (12:30) - Tracey's Top Stock Picks For Your Watch List 
• (36:30) - Episode Roundup: STRL, FIX, ECG
•     Podcast@Zacks.com

Welcome to Episode #492 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey went solo to discuss the AI infrastructure stocks. She has done several podcasts on the AI infrastructure stocks in the last three years.

Remember, the AI infrastructure stocks are not the semiconductors or memory companies. They are involved in the build-out of the data centers.

Without the data centers, there is no AI.

Follow the Money

The hyperscalers are spending over $1 trillion just this year to build-out their AI capabilities. That's a lot of money going somewhere.

There are some companies that are building the data centers, filling them with racks, powering them, and cooling them.

Own those companies.

AI Infrastructure Stocks Sell Off

Some of the hottest stocks this year have been the AI infrastructure stocks until the last month when they have sold off.

If you thought you had missed out on owning these stocks, now is your chance. Most are down over 10% and some have pulled back as much as 20%.

Are they value stocks? No. But the growth is still there and now that growth is on sale.

3 AI Infrastructure Stocks for Your Short List

1. Sterling Infrastructure, Inc. STRL

Sterling Infrastructure is an engineering firm that builds data centers. Shares of Sterling have soared over the last 5 years, gaining 2,937%.

However, the fundamentals match it. Earnings are expected to rise 75.7% this year on revenue growth of 59.2%. Sterling Infrastructure beat and raised last quarter and is still a Zacks Rank #1 (Strong Buy) stock. It's expected to report second quarter results in early August.

Over the last month, Sterling shares have fallen 22%. It now trades with a forward price-to-earnings (P/E) ratio of 34. That's down from over 40.

Sterling is more attractive.

Should you be buying Sterling Infrastructure on this pullback?

2. Comfort Systems USA, Inc. FIX

Comfort Systems USA does heating and air conditioning. Shares of Comfort System have soared in the last 5 years, jumping 2,225%.

But the shares are off their highs and have fallen 11% in the last month. That's a correction. Comfort Systems valuations look more attractive after the sell-off. It now trades with a forward P/E of 39.

Comfort Systems is a growth stock. Earnings are expected to jump 49.2% this year and another 22.8% next year.

Comfort Systems is expected to report earnings on July 23, 2026. Be sure to look for the earnings update.

With shares off the all-time highs, is it time to buy Comfort Systems USA?

3. Everus Construction Group, Inc. ECG

Everus Construction Group is an electrical and mechanical construction firm based in Bismark, North Dakota with business nationwide. Yes, it's building data centers.

Shares of Everus Construction Group are up 239.7% over the last 5 years. That's well below what Sterling Infrastructure and Comfort System USA have done in the same period but is above the S&P 500 at 108%.

But shares have fallen 15% in the last month, making the stock more attractive. Everus has a forward P/E of 30.

Earnings are expected to rise 11.1% in 2026 and another 9.2% in 2027. Everus doesn't report earnings again until mid-August 2026.

Is Everus a deal after the sell-off?

What Else Should You Know About the AI Infrastructure Stocks?

Tune into this week's podcast to find out.

[In full disclosure, Tracey owns shares of STRL in her personal portfolio and in Zacks Value Investor.]

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