Bull of the Day: MYR Group Inc. (MYRG)

MYR Group Inc. MYRG is a great buy-and-hold stock to ride converging megatrends across AI, energy, electrification, and beyond.

The specialty electrical contractor posted another strong beat-and-raise quarter at the end of July, with its backlog up 20% YoY. MYR Group is benefiting from the “ongoing investment in electrical infrastructure” driven by the AI boom and more.

MYR Group’s recent upward earnings revisions land the stock a Zacks Rank #1 (Strong Buy) and extend its impressive run of upward earnings revisions. MYRG more than doubled its revenue between 2018 and 2023 and roughly tripled its adjusted earnings.

The grid construction specialist bounced back big time in 2025 after setbacks in 2024, and it's projected to post strong double-digit revenue and earnings growth again in 2026 and 2027.

The utility grid expert and AI data center infrastructure stock soared over the last 10 years.

Yet investors can buy the stock down ~35% from its late June peaks as it finds support at key technical levels. On top of that, MYRG stock is trading at oversold levels, and its valuation is far more reasonable.

The Best Top-Ranked Stocks to Buy Now in August and Hold: MYRG

MYR Group’s long-term bull case is straightforward: it’s one of the go-to electrical construction contractors for critical projects like grid hardening and expansion, electrification, nuclear energy and renewable integration, the rapid build-out of data centers, and more.

U.S. electricity demand is projected to grow 100% by 2050, fueled by the power-hungry AI boom, the reshoring of critical manufacturing such as semiconductors, electrification, and a desperate need to expand and repair the grid after decades of neglect.

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It’s hard to determine which AI companies will come out on top as the technologies rapidly evolve. This is why investors must own stocks such as MYR Group that are riding the AI-boosted infrastructure spending spree and the once-in-a-generation energy and electrification boom regardless of which tech companies come out on top.

MYR Group is one of the largest specialty electrical construction contractors in the U.S. and Canada, operating via its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) segments.

The electrical contracting powerhouse builds, maintains, and repairs high-voltage power lines, substations, and a wide range of other vital electrical infrastructure that keep the grid running and growing.

It also helps build large-scale electrical systems for renewable energy projects, electric vehicle charging networks, industrial facilities, airports, hospitals, and most importantly, AI data centers.

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MYR Group’s long-term growth runway is impressive as the U.S. races to expand energy capacity and grid infrastructure across the country to support the AI arms race, electrification, the reshoring of semiconductor manufacturing and other critical industries, and more.

MYRG is one of dozens of companies rapidly expanding its business and growing its sales and earnings as the U.S. economy shifts from a prolonged period of capital-light growth into a capex-heavy spending spree.

McKinsey projects that $7 trillion will be spent globally on AI-focused capex by 2030. The AI hyperscalers alone, such as Amazon and Meta, are projected to spend at least $700 billion in AI-related capex in 2026 and ramp up again in 2027, after pouring $400 billion into AI capital spending last year.

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The recent AI-boosted rally to new all-time highs for the S&P 500 showcases that the AI bubble fears might be overblown. Nvidia reportedly just reached a deal with Wall Street giants including Apollo Global Management, BlackRock, and Goldman Sachs to help raise $500 billion to fund the AI-infrastructure build-out.

The half-trillion in new AI infrastructure spending is the latest bullish sign for all things related to AI. This AI-centric spending is helping line the pockets of MYR Group and others that are physically building the new pillars of the 21st-century economy.

Buy Zacks Rank #1 (Strong Buy) MYRG Stock for AI and Megatrend-Boosted Growth

The utility grid expert more than doubled its revenue between 2018 and 2023 and roughly tripled its adjusted earnings during that stretch.

MYRG faced short-term setbacks in 2024, driven by project delays, cost overruns in clean energy contracts, and more. But those setbacks appear to be in the rearview after it posted 307% EPS growth in 2025 and 9% higher sales.

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Most recently, MYRG grew its adjusted Q2 2026 earnings by 87%, topping our estimate by 25%—its fourth straight double-digit beat.

The company also expanded its revenue by 20% and boosted its backlog by 20%, as it benefits from the “ongoing investment in electrical infrastructure.” 

MYR Group’s upbeat outlook sent its earnings revisions higher, landing it a Zacks Rank #1 (Strong Buy). MYRG is projected to grow its adjusted earnings by 59% in 2026 and 13% in 2027 on 22% and 13%, respective sales expansion.

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Buy the Data Center, Energy, and Electric Infrastructure Stock Before It Breaks Out?

The electric construction stock surged ~1,500% over the last 15 years, crushing the Utilities sector’s 70% and the S&P 500’s 580%. MYR Group’s long-term climb includes a 230% run in the past five years and a 70% charge in the past 12 months.

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Yet, investors can buy the data center electrician stock down roughly 35% from its late June peaks. MYRG’s average Zacks price target implies 40% upside from its current price, and it would have to climb roughly 50% to return to its all-time highs.  

The stock found support near its 200-day and its 50-week to close July. It has chopped around above its 200-day mark since then as it looks to break out above its pre-breakout levels from late April (see chart above).

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Its selloff, mixed with its strong earnings growth outlook, has it trading at a 45% discount to its highs and only a 30% premium to its 10-year median and the S&P 500 at 25.9X forward 12-month earnings. MYRG stock has soared ~1,100% in the past 10 years vs. its industry’s 40% and the S&P 500’s 280%.   

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This article originally published on Zacks Investment Research (zacks.com).

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