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While the rest of the market has been on a tear for the first part of the year, one sector that has particularly underperformed has been heavy construction companies. As contrarian investors that translates to stock profit opportunity, and we've identified several appealing purchase options.
The heavy construction sector, as a whole, is slightly underwater for the year to date, and the stocks below are down an average of ten percent. Part of this underperformance may be related to the weakness in the metals stocks that we discussed in February and in the mining stocks discussed in May. Among other things, all of these sectors appear to be weighed down by concerns about a near-term slowdown in China.
Longer-term, the fundamentals for this sector look pretty favorable. In the U.S., the real estate markets appear to be recovering, and in the public sector there is growing awareness of our need to rebuild our infrastructure. Globally, all of the emerging markets are likely to need extensive heavy construction in the years to come.
The stocks profiled in our July 2013 article are in different aspects heavy of heavy construction or machinery.. They have all been under pressure recently, but have good long-term prospects. Click here to learn about nine stock profit opportunities within the heavy construction sector.