Shares of engineering and construction firms soar

Stifel, Nicolaus & Co. Inc. analyst Barry B. Bannister said in a note to investors that engineering and construction companies could dodge a possible recession by switching to other projects.

"With few opportunities to leverage paper assets and eroding monetary integrity, we believe the natural repository of wealth becomes tangible producing assets, i.e., energy, farms, mines," he said.

He recommended that investors buy "oversold, high-quality stocks" that offer the least execution risk while providing adequate exposure to global energy capital spending and ethanol-supported farm equipment. He cited Foster Wheeler Ltd., Fluor Corp. and Jacobs Engineering Group Inc.

Shares of Foster Wheeler Ltd. rose $4.28, or 13.4 percent, to $36.09. Fluor Corp. added $6.11, or 12.5 percent, to $54.86. Jacobs Engineering Group Inc. gained $6.71, or 14.1 percent, to $54.30, while Shaw Group Inc. shares advanced $2.32, or 8.3 percent, to $30.20.