The Federal Reserve now expects interest rates to stay relatively high through 2026 while inflation sits around 3.6%, yet economic activity, capital investment, and job growth remain firm. That mix can reward companies that are already financially healthy and positioned to benefit from steady infrastructure and industrial spending, and it can pressure weaker balance sheets. This article looks at 3 U.S. infrastructure and industrial stocks from our screener that are exposed to this Fed outlook. It shows how their value, health, and performance profiles might appeal to investors who want to either lean into this macro backdrop or step back from it.

Astec Industries (ASTE)

Overview: Astec Industries is a Chattanooga based manufacturer of machinery and technology for road building, concrete and asphalt production, and aggregate processing, supplying equipment like asphalt plants, crushers, screens, and material handling systems to contractors, producers, quarries, and government agencies worldwide.

Operations: Astec Industries generates most of its revenue from Infrastructure Solutions at about US$893.8m, with Materials Solutions contributing around US$623m and a US$39.5m intersegment reduction.

Market Cap: US$1.29b

Astec Industries provides direct exposure to U.S. infrastructure spending and construction activity, supported by federal highway funding and demand for asphalt, concrete, and aggregates equipment. However, the situation is more nuanced than simple top line growth. Earnings have been growing and analysts see scope for further improvement as the company focuses on higher margin products and operational excellence. At the same time, current net margins and return on equity are low, and the balance sheet leans heavily on debt, which can be important if interest rates stay higher for longer. Recent results also showed how margin pressure can quickly affect the stock even when revenue is strong. Understanding how Astec plans to translate a healthy backlog, acquisitions, and cost initiatives into durable profitability is central to the investment debate.

Astec Industries is working to convert solid infrastructure demand into stronger profitability, but the real story lies in how margins, debt and cash flows fit together in a single picture, which is laid bare in the Astec Industries financial health report

Dycom Industries (DY)

Overview: Dycom Industries is a U.S. contractor that designs, builds, and maintains digital and utility infrastructure, handling everything from fiber optic and coaxial cable installation to wireless towers, small cells, underground utility locating, and field services for telecom and power companies.

Operations: Dycom Industries generates the bulk of its roughly US$5.8b in segment revenue from Communications services, with segment adjustments bringing reported revenue to about US$6.3b, almost all from the United States.

Market Cap: US$13.7b

Dycom Industries sits at the crossroads of two significant trends: the long buildout of fiber and data connectivity across the U.S., and the Fed’s expectation that economic activity and capital investment can remain firm even with higher rates. Recent record quarterly revenue of US$1.96b, a backlog around US$11.9b, and raised multi year guidance highlight how large customers are committing to long-term network programs tied to AI, data centers, and broadband. At the same time, a premium P/E multiple, heavy reliance on a few major telecom clients, and high debt mean that any pullback in customer capex or a setback in infrastructure policy could have a rapid impact. Understanding how that trade off looks over the next phase of the cycle is crucial for anyone considering Dycom.

Dycom Industries looks like a pure play on long term fiber and data buildouts, but the real tension is how that premium P/E and customer concentration stack up against its growth story, which is unpacked in the analyst forecasts for Dycom Industries

Granite Construction (GVA)

Overview: Granite Construction is a U.S. infrastructure contractor that builds and rehabilitates roads, bridges, highways, airports, water systems, dams, tunnels, and industrial sites, while also producing aggregates, asphalt, and other construction materials for its own projects and external customers.

Operations: Granite Construction generates around US$3.8b from its Construction segment and about US$1.1b from Materials, with roughly US$305.7m eliminated on intersegment sales.

Market Cap: US$6.42b

Granite Construction provides direct exposure to the multi year U.S. infrastructure buildout, from highways and transit to water and resilience projects. This is supported by a large contracted backlog and a growing presence in regions described as high growth. Vertical integration into materials and the strategic focus on higher quality contracts and project selection are intended to support improving margins. Investors, however, may also consider the company’s relatively high P/E, significant use of debt, ongoing acquisition activity, and recent insider selling. The Federal Reserve’s stated expectation for firm capital investment, even with higher rates, is consistent with management’s comments about one of the strongest markets in decades. A key consideration for investors is how these factors may affect the company’s ability to generate durable free cash flow and returns across a full cycle, particularly in the context of rising funding and execution risks.

Granite Construction’s high P/E, sizable backlog, and acquisitions suggest a story that may not be fully reflected in the current valuation, and the next piece sits inside the analysis report for Granite Construction

The three stocks in this article are only a starting point. The full U.S. Infrastructure and Industrial Stocks screener highlights 46 more U.S. infrastructure and industrial companies with similarly compelling value, health, and performance stories that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, financial traits, and business narratives that matter most to you so you can focus on the highest conviction opportunities in this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.