This article cites the following companies: AAON (AAON), Granite Construction (GVA), Perini (PCR) and URS Corp. (URS).The cover of a recent issue of the construction weekly Engineering News-Record (ENR) heralds the event: "PRICES PLUNGE!!!"For the first time in a long time, the cost of just about everything the Engineering & Construction (E&C) Sector uses is finally falling. Some examples for the month of December, 2008: standard structural shapes - off by 1.1%; grade 60, #4 re-bar - down 0.8%; 14 gauge stainless -- a drop of 2.6%; and the list goes on. Overall, material costs declined by 2.9%.This is good news for the E&C sector because it reduces the value of the bids the companies make, without affecting the direct charges of company personnel assigned to a project. In tough times, if the cost of materials declines, then there are more funds left ...

URS Corp.'s (...

The infrastructure stocks featured in this article are URS Corp. (...

Turning from the mind-rattling analyses of financial stocks for a bit, we sat down with Zacks senior equities analyst John Nelson Simon for a discussion on a sector thatÂ’s easier to sink oneÂ’s teeth into: engineering & construction.

What is your current outlook for Engineering & Construction (E&C) stocks these days?

Conditions are such that the E&C companies, collectively, are doing quite well. The demand for energy, the need for support in war zones, the crumbling infrastructure, the emerging countries -- all are requiring their help. In fact, it's come to a point where the demand is so strong that customers in some cases are willing to go to cost-plus contracting rather than fixed-price. That doesn't happen very often.

In light of what weÂ’ve seen in the financial sector recently, is it better to invest in an industry that manufactures goods?

I don't feel qualified to pick

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Tontine PartnersTontine Capital Partners - Holding AnalysisThis post is being written as part of HedgeFundBlogger.com's Investment Securities Tool which analyzes the holdings of hedge fund managers.If you're unfamiliar with Gendell and his Tontine Partners, then here's what you need to know. Founded 11 years ago, Tontine is a $10 billion fund ran by Jeffrey Gendell. He specializes in macro investing and takes very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005.So, let's get right down to it... what was Jeffrey Gendell ...

ITT Educational Services, Inc. (ESI) has seen its estimates hold up in an industry hit by tightened lending practices. The company has also seen an upgrade from a major broker since being featured as a Zacks Rank Buy on August 1st.

Company Description

ITT Educational Services provide career-focused degree programs, with an emphasis on technology. The company has over 100 locations across the United States and currently have approximately 55,000 students enrolled in classes. Each location is nationally accredited by the U.S. Department of Education. ITT carries a market cap of $3.5 billion.

Solid Earnings

Current-quarter estimates for ITT Education's earnings are $1.14 per share, or a 16.6% year-over-year increase. Estimates for full-year 2008 are projecting an increase of 27.8%, $4.74 up from $3.71 last year. The estimates initially popped following the company's July earnings announcement, but have been sustained

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Of URS Corp.Â’s (URS) current $17.9 billion backlog, 7.8% is Power, 14% is Infrastructure, 58.1% is Federal and 20.1% is Industrial/Commercial. At this point, the Power sector probably has the best outlook, as the switch appears to be on from coal-fired and oil-fired plants to gas-fired and nuclear-powered plants.

Infrastructure is increasingly being financed through bond issues, which should be a positive. While Federal will remain an unknown until after the election, Industrial/Commercial could be problematic, given the current economic environment. URS continues to make bolt-on acquisitions, and Zacks has upgraded URS from a Hold to a Buy.

URS continues to see favorable trends in the Federal Government sector. There is strong funding for O&M programs -- which is expected to reach $300 billion in fiscal 2009, a 7% increase over fiscal 2008 levels -- increased opportunities to support long-term Department of Defense (DoD) initiatives and stable funding for the Department

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Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

Baker Hughes Inc (BHI) BP Prudhoe Bay Royalty Trust (BPT) CARBO Ceramics Inc (CRR) Coherent Inc (COHR) Colfax Corp (CFX) Cyberonics Inc (CYBX) DepoMed Inc (DEPO) Fluor Corp (FLR) FMC Corp (FMC) Green Mountain Coffee Roasters Inc (GMCR) GSC Investment Corp (GNV) Hugoton Royalty Trust (HGT) Kendle International Inc (KNDL) Omega Navigation Enterprises Inc (ONAV) Simcere Pharmaceutical Group (SCR) Tanzanian Royalty Exploration Corp (TRE) Teekay Tankers Ltd (TNK) Telemig Celular Participacoes SA (TMB) UIL Holdings Corp (UIL) URS Corp (URS) Valmont Industries Inc (VMI) Vanguard Natural Resources LLC (VNR) Visa Inc (V) Yucheng Technologies Ltd (YTEC) View the entire Zacks #1 Rank List.

"BHI" Free ...