Top 5 Construction Companies To Watch For 2014

It's been said plenty of times that our neighbor to the south is home to a burgeoning, debt-light economy that offers emerging-market growth with an element of domestic risk and valuation. China is very much "last season" when it comes to manufacturing, and Mexico offers a fantastic answer, with geographical superiority and an eager work force. One company based in Mexico, Empresas ICA (NYSE: ICA  ) , is a heavy-construction firm with a market cap of $1 billion that was as recently as April worth nearly $2 billion. The causes for the haircut includes a collapsed deal and lousy first-quarter earnings. But with a strong outlook for Mexican infrastructure spending, and an apparent case of market negligence, Empresas ICA might be an undervalued pick with substantial upside potential.

Grow Mexico
Recently elected Mexican President Enrique Pena Nieto holds infrastructure investments as a top priority for his administration. In fact, his proposed 5% of GDP plan represents one of the largest national undertakings in more than 20 years. Using current projections (recently revised down) of 3.5% GDP growth, Mexico should have a GDP of $1.196 trillion. Five percent of that amount, $59.79 billion, is theoretically allocated toward infrastructure improvements -- 12% of which is directly allocated to transportation enchancements.

Best Performing Stocks To Buy Right Now: Oci NV (OCI)

Oci NV is a Netherlands-based company, which divides its activities into two groups. The first group is engaged in the design, construction and maintenance of industrial and commercial infrastructures and buildings, such as roads, ports, railroads, hospitals, stadiums and water treatment units. The second group is engaged in the production of fertilizers, such as anhydrous ammonia, granulated urea, calcium ammonium nitrate and urea ammonium nitrate, among others. The Company is a subsidiary of Orascom Construction Industries SAE, an international fertilizer producer and construction contractor based in Cairo, Egypt. In September 2013, it announced spin-off of its subsidiary OCI Partners LP. Advisors' Opinion:

• [By Ahmed A. Namatalla]

  OCI attracted $2 billion in commitments from a group of investors including Cascade Investment LLC, Gates�� personal investments vehicle, to help finance the move to Amsterdam, which it said would lower borrowing costs and boost its global profile. Yesterday�� settlement prompted Cairo-based investment bank Pharos Holding to raise Orascom to buy from hold, saying the construction and fertilizer company would proceed with an offer to investors to buy its Cairo-listed shares or swap them with OCI NV (OCI) stock.

Top 5 Construction Companies To Watch For 2014: Tile Shop Holdings Inc (TTS)

Tile Shop Holdings, Inc., incorporated on June 21, 2012, is a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States. The Company sells over 4,500 products from around the world, including ceramic, porcelain, glass, and stainless steel manufactured tiles and, marble, granite, quartz, sandstone, travertine, slate, and onyx natural tiles. It purchases its tile products and accessories directly from producers. The Company manufactures its own setting and maintenance materials, such as thinset, grout, and sealers under its brand name. The Company operates 70 stores in 22 states, with an average size of 23,000 square feet. It also sells its products on its Website. In January 2014 Tile Shop Holdings Inc launched its first retail store in Oklahoma City.

The Company offers a complete assortment of tile products, generally sourced directly from producers, including ceramic, porcelain, glass, and stainless steel manufactured tiles, and marble, granite, quartz, sandstone, travertine, slate, and onyx natural tiles. The Company also offers a range of setting and maintenance materials, such as thinset, grout and sealers, and accessories, including installation tools, shower and bath caddies, drains, and similar products.

The Company competes with Home Depot, Tile America, World of Tile, Century Tile, and Floor and Decor, Dal-Tile and Florida Tile.

Advisors' Opinion:

• [By Tim Melvin]

  Tile Shops Holdings (TTS) came public back in 2012 and was initially a hot deal, doubling in the months after the deal was priced. It has been pretty much downhill from there, and the shares have lost half their peak value and are back near the offering price.

• [By Dan Caplinger]

  Stock market investors were generally pleased with the congressional testimony that Fed chair nominee Janet Yellen gave today, with new expectations that accommodative monetary policy will continue as long as any hint of economic weakness persists. The Dow and S&P 500 reached new record highs yet again, with Dow 16,000 and S&P 1,800 now within a single percentage point. But Cisco Systems (NASDAQ: CSCO  ) , Tile Shop Holdings (NASDAQ: TTS  ) , and Millennial Media (NYSE: MM  ) all missed the record run, falling by more than 10% each.

• [By Steve Symington]

  Almost two months ago, I singled out�Tile Shop Holdings� (NASDAQ: TTS  ) as one of�three great small-cap stocks�with which many investors might not be familiar. After all, the high-end stone and tile specialist still had a market capitalization under $800 million at the time, and only just went public late last year.

Top 5 Construction Companies To Watch For 2014: KBR Inc. (KBR)

KBR, Inc. operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Its Downstream business unit provides front end engineering design; detailed engineering; engineering, procurement, and construction (EPC); EPC management; and program management services to petrochemical, refining, coal gasification, and syngas markets. The company?s Government and Infrastructure business unit provides program and project management, contingency logistics, operations and maintenance, construction management, engineering, and other services to military and civilian branches of governments and private clients. Its Services business unit delivers engineering, construction, construction management, fabrication, maintenance, and turnaround services. It also offers maintenance, construction, and drilling support services for offshore oil and gas producing facili ties using semisubmersible vessels. This segment serves oil, gas, petrochemicals, and hydrocarbon processing industries, as well as power, alternate energy, pulp and paper, industrial and manufacturing, and pharmaceutical industries. The company?s Technology business unit offers various process technologies, including value-added technologies in the coal monetization, petrochemical, refining, and syngas markets. Its Upstream business unit constructs liquefied natural gas, gas-to-liquids, onshore oil and gas production facilities, offshore oil and gas production facilities, and onshore and offshore pipelines. The company?s Ventures business unit invests in and manages projects, where the company provides engineering, construction, construction management or operations, and maintenance services. KBR, Inc. was founded in 1901 and is based in Houston, Texas.

Advisors' Opinion:

• [By Rich Smith]

  Raytheon's rockets will be deployed to defend the base, while Lockheed Martin (NYSE: LMT  ) is managing the overall project. And last week, we found out who will build it, when government contractor KBR (NYSE: KBR  ) was awarded $134 million to turn the 430-acre site into a missile base.

• [By Monica Gerson]

  KBR (NYSE: KBR) is expected to post its Q3 earnings at $0.70 per share on revenue of $1.99 billion.

  Zynga (NASDAQ: ZNGA) is estimated to post a Q3 loss at $0.04 per share on revenue of $142.67 million.

• [By Garrett Cook]

  KBR (NYSE: KBR) shares tumbled 8.17 percent to $24.17 after the company reported a Q1 loss of $0.29 per share on revenue of $1.63 billion. The company said it would undergo a strategic review of its businesses.

• [By Monica Gerson]

  KBR (NYSE: KBR) is projected to post its Q1 earnings at $0.38 per share on revenue of $1.77 billion.

  Pier 1 Imports (NYSE: PIR) is expected to report its Q1 earnings at $0.20 per share on revenue of $422.81 million.

Top 5 Construction Companies To Watch For 2014: Badger Daylighting Ltd (BAD)

Badger Daylighting Ltd. and its subsidiaries (Badger) provide non-destructive excavating services to the utility, transportation, industrial, engineering, construction and petroleum industries in Canada and the United States. Its key technology is the Badger Hydrovac excavator, which is used primarily for digging trenches in congested grounds. The Company�� excavation services include daylighting and potholing, slot trenching, debris removal and cleanups, maintenance and installation service pits, poles and piling holes and trench shoring/shoring. Badger slot trenching provides a non-destructive method of digging trenches for water lines, wiring and pipeline installations or excavations. Its applications include pipeline tie-ins, investigative slot trenching, installation slot trenching, drain tile trenching and line fault repairs. In November 2013, the Company acquired the business and operating assets of Fieldtek Holdings Ltd. Advisors' Opinion:

• [By Kim Hjelmgaard]

  There have been some good (read: bad) predictions over the years.

  Before the 2013 forum, DealBook's Andrew Ross Sorkin recalled that in 2003 the serial Davos attendee, Microsoft co-founder Bill Gates, said of Google: "These Google guys (co-founders Larry Page and Sergey Brin), they want to be billionaires and rock stars and go to conferences and all that. Let us see if they still want to run the business in two to three years."