3 Discounted AI Infrastructure Stocks

Episode #431: Exploring Value in AI Infrastructure

• 1:00 – Are There Compelling Value Plays in AI Infrastructure?
• 8:55 – Leading Investment Picks to Watch Right Now
• 30:00 – Summary: ECG, STRL, FLS, FIX

Welcome to the 431st episode of the Value Investor Podcast.

Each week, Tracey Ryniec, who leads the Zacks Value Investor portfolio, offers her insights on value investing strategies and highlights notable stock selections.

Recent geopolitical tensions, particularly the onset of the Iran conflict, have unsettled the markets, leading to a broad sell-off. Oil prices have surged past $90 per barrel as the Strait of Hormuz faces potential closure, causing increased market anxiety.

It remains uncertain whether this volatility will be short-lived or persist for an extended period.

Periods of uncertainty often present unique opportunities for value investors. As market swings drive down prices, it may be the perfect moment to consider adding quality stocks at discounted prices.

AI Infrastructure Stocks: Discounted Opportunities

Companies supporting AI infrastructure have reported robust results for the fourth quarter and into 2025, with many raising their outlooks for 2026. Major cloud providers are projected to invest more than $500 billion this year to expand AI infrastructure, positioning these companies to benefit significantly.

These firms operate across various segments, including constructing data centers, supplying power solutions, manufacturing server racks, and providing cooling systems for these facilities.

Although many of these stocks recently reached five-year highs and were trading at elevated valuations, the recent downturn has made them more appealing. While not traditionally “cheap” based on P/E or P/S ratios, the pullback offers a more attractive entry point for value-focused investors.

Three AI Infrastructure Stocks Worth Watching

• Everus Construction Group (ECG)

  Everus Construction Group is a key player in America’s infrastructure development, specializing in electrical and communications systems as well as power transmission projects.

  Since the podcast recording on March 4, 2026, Everus shares have dropped 9.1% over the past week, though they remain up 178% year-over-year. The stock now trades at a forward P/E of 27, with earnings projected to increase by 5.3% in 2026 and 7% in 2027. Is this a favorable entry point for value investors?

• Sterling Infrastructure, Inc. (STRL)

  Sterling Infrastructure delivers solutions for E-Infrastructure, transportation, and building projects, including e-commerce warehouses and data centers. Earnings are forecasted to climb 25.8% in 2026 and another 15% in 2027.

  The stock has retreated 9.4% in the last five days, now trading in the $300 range—a level previously identified as a buying opportunity. Over the past year, Sterling’s shares have soared 225%. Its forward P/E stands at 29, maintaining an attractive valuation for investors seeking growth in the sector.

• Flowserve Corp. (FLS)

  Flowserve is a global provider of flow control products and services, catering to infrastructure and power generation markets, with a legacy dating back to 1790.

  Shares have declined 12.4% over the last week but are still up 56% year-over-year. The recent dip has brought its forward P/E to 19.8, making it more affordable. Earnings are anticipated to grow 12.9% in 2026 and 13.6% in 2027. Flowserve has also increased its dividend by 5%, now yielding 1%. Could this be the right time to invest?

Additional Insights on AI Infrastructure Investments

For more details and analysis, be sure to listen to this week’s podcast episode.

Disclosure: Tracey holds STRL in both the Zacks Value Investor portfolio and her personal account.

Zacks’ Top Pick: The Stock Poised to Double

Zacks’ research team has identified five stocks with the strongest potential to gain 100% or more in the near future. Among these, Research Director Sheraz Mian spotlights one standout poised for exceptional growth.

This leading pick is a lesser-known satellite communications company, operating in a sector expected to reach a trillion-dollar valuation. With a rapidly expanding customer base and analysts predicting a significant revenue surge in 2025, this stock could outperform previous Zacks’ “Stocks Set to Double” such as Hims & Hers Health, which soared over 200%.

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• Flowserve Corporation (FLS): Complimentary Stock Analysis
• Sterling Infrastructure, Inc. (STRL): Complimentary Stock Analysis
• Everus Construction Group, Inc. (ECG): Complimentary Stock Analysis

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