Forget AI, Buy 5 High-Flying Old Economy Bigwigs With More Room to Run

The artificial intelligence (AI)-driven, astonishing bull run of 2023 and 2024 has continued into 2025. The AI frenzy looks rock solid as hyperscalers are increasingly opting for data center installations to support the massive growth of cloud computing. Stock prices of several AI-centric companies have skyrocketed 200-300% during this period.Meanwhile, market participants have other sectors to look into. Several old economy stocks from sectors such as industrials, finance, auto, materials and construction have popped year to date. Investing in these stocks with a favorable Zacks Rank should lead to profits. These old-economy stocks have transformed the ongoing rally into a broad-based one with huge opportunities for portfolio diversification.  Here, we have narrowed our search to five old-economy stocks that have rallied more than 30% year to date. Yet, their current favorable Zacks Rank indicates more upside potential in the near term. These are: Comfort Systems USA Inc. FIX, MasTec Inc. MTZ, JPMorgan Chase & Co. JPM, GE Aerospace GE and Howmet Aerospace Inc. HWM. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks year to date.Image Source: Zacks Investment ResearchComfort Systems USA Inc.Zacks Rank #1 Comfort Systems USA is a national provider of comprehensive heating, ventilation and air conditioning (HVAC) installation, maintenance, repair and replacement services. FIX operates primarily in the commercial and industrial HVAC markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for the specialized HVAC solutions of FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. This segment is becoming a significant growth driver for FIX, offering high-margin opportunities and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.Comfort Systems USA has an expected revenue and earnings growth rate of 15.5% and 52.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% in the last 30 days.MasTec Inc.Zacks Rank #1 MasTec is an infrastructure construction company providing engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. MTZ is helping lead the charge in the once-in-a-lifetime expansion of the energy industry, which has only just begun, to support power-hungry AI, reshoring, and more. The company is a major beneficiary of the AI-powered data center boom. MTZ is a leading solution provider for design, construction, and maintenance services in the wireless network space. High-speed wireless network connectivity is of utmost importance as both enterprises and households use more AI-driven products. MTZ operates four segments: Communications (wireless and wireline/fiber infrastructure), Power Delivery (utility transmission and distribution), Pipeline Infrastructure (natural gas pipeline and distribution services) and Clean Energy and Infrastructure (renewable energy and heavy civil/industrial projects).The power-hungry AI age, electrification, and the reshoring of critical manufacturing such as semiconductors are all happening at the same time. MTZ’s entire portfolio is growing directly alongside the converging infrastructure spending megatrend.MasTec has an expected revenue and earnings growth rate of 13.6% and 60%, respectively, for the current year. The Zacks Consensus Estimate for next year’s earnings has improved 2.6% in the last 60 days.JPMorgan Chase & Co.Zacks Rank #2 JPMorgan Chase’s business expansion initiatives, loan demand and relatively high interest rates should drive net interest income (NII) growth. We project NII to witness a CAGR of 2.9% by 2027. While normal deal-making activity is tied to the health of the economy, JPM’s solid pipeline and leadership have generated continued growth in the investment banking business thus far.A solid pipeline and market leadership continue to support investment banking (IB) business, though capital markets volatility and high mortgage rates will likely weigh on fee income. JPM emphasized the importance of AI in boosting efficiency and noted that its technology budget is $18 billion this year, up roughly 6% from last year.JPMorgan Chase has an expected revenue and earnings growth rate of -0.2% and -0.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last seven days.GE AerospaceZacks Rank #2 GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. GE’s portfolio-reshaping actions are likely to unlock value for its shareholders. GE remains committed to making investments to boost growth. For instance, it plans to invest more than $1 billion in its MRO facilities around the world over the next five years. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level.GE Aerospace has an expected revenue and earnings growth rate of -4.4% and 27.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days. Howmet Aerospace Inc.Zacks Rank #2 Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.Howmet Aerospace has an expected revenue and earnings growth rate of 9.4% and 32.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 60 days. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report GE Aerospace (GE): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks