Stantec Inc. (STN): A Bull Case Theory

We came across a bullish thesis on Stantec Inc. (STN) on Investing Intel’s Substack. In this article, we will summarize the bulls’ thesis on STN. Stantec Inc. (STN)'s share was trading at $101.83 as of 23^rd May. STN’s trailing and forward P/E were 41.89 and 26.39 respectively according to Yahoo Finance.

Stantec (NYSE: STN) has continued to benefit from a favorable macro backdrop driven by increasing infrastructure investment and demand for sustainable solutions. In Q1 2025, the company reported robust financial performance, including a 13.3% increase in net revenue and a 28.9% rise in adjusted EPS, while also achieving a record-high backlog of $7.9 billion. These results were underpinned by strong public and private sector funding, particularly in water, transportation, and climate-resilient infrastructure.

Reinforcing confidence in its trajectory, Stantec reaffirmed its 2025 guidance, projecting 7% to 10% revenue growth and 16% to 19% EPS growth. The company’s ongoing strategic acquisitions, notably the U.S.-based design firm Page, have bolstered its technical capabilities and geographic reach. With a growing portfolio aligned with global sustainability goals and infrastructure renewal, Stantec is well-positioned to sustain long-term growth and deliver shareholder value.

Previously, we have covered Stantec Inc. (STN) in January 2025 wherein we summarized a bullish thesis by Serhio MaxDividends on Substack. The author highlighted the company’s appeal as a dividend growth investment, citing 12 consecutive years of dividend increases and a low 26.36% payout ratio supporting future hikes. The article emphasized Stantec’s strong Q3 2024 results, with 16% revenue growth and robust performance in the Water and Buildings segments, underpinned by a $7.3 billion backlog and global operations. The thesis positioned Stantec as a financially disciplined, diversified infrastructure leader well-suited for long-term investors seeking reliable income and growth. Since our last coverage, the stock is up 29.64% as of 27^th May.

Stantec Inc. (STN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held STN at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of STN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.