David Silver: If the time to consider investing in cyclicals is near the beginning of an economic upturn, aggressive investors might consider the capital spending-driven engineering and construction industry. E&Cs design, build, and maintain mining and manufacturing facilities, transportation networks; buildings and infrastructure; and power generation facilities.
A cyclical bottom may be at hand: Pressures from years of low energy and commodity prices have abated, and industry restructuring has been broad-based and productive. Stabilizing markets and a pro-business administration in Washington have led to guarded optimism from managements and customers. We expect order backlogs to stabilize and then grow during 2017, and for revenue growth to begin in 2018.