We recently published a list of 11 Best Breakout Stocks to Buy According to Analysts. In this article, we are going to take a look at where Matrix Service Company (NASDAQ:MTRX) stands against other best breakout stocks to buy according to analysts.
Stock markets have been on edge in response to the US President’s aggressive trade war that has resulted in trade tariffs aimed at settling the trade deficit. Likewise, stocks remain on edge, with the US president ramping up attacks against the Federal Reserve Chair Jerome Powell raising serious concerns about the central bank’s independence.
Trump has been on Powell’s neck over what he terms as laxity in cutting interest rates at a time when major central banks led by the European Central Bank and Bank of Canada have cut significantly. In posts on his social network Trust Social, Trump has always insisted that the US economy would slow unless Powell, who he has always deemed as “Mr. Too Late, a major loser,” cut rates.
The remarks come against the backdrop of major indices pulling back significantly from record highs as stocks remain under pressure across various sectors. The S&P 500 has already closed on the negative for the 3rd straight month, waiting to see if the selloff will persist. The last time the index closed negative for 4 straight months was in 2011.
While a negative, the sell-off has presented unique investment opportunities as valuations have pulled back significantly from historical highs. Likewise, the pullback has given rise to solid breakout plays as the selloff dust slowly settles. Nearly two-thirds of the S&P 500 stocks have posted first-quarter 2025 results that have topped estimates. Strong quarterly results from some of the big tech giants are helping alleviate concerns about the potential impact of Trump’s tariffs. Likewise, the solid earnings have once again eased concerns that the artificial intelligence progress has slowed amid economic turmoil triggered by the trade war.
“Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”
China signaling it is evaluating the possibility of starting trade negotiations with the US is a positive for the markets under pressure. The remarks come at a time when the Trump administration is increasingly targeting quick wins with major trading partners. The prospects of a trade agreement between the US and China should be a catalyst to trigger a significant bounce back after months of deep sell-offs.
Our Methodology
To compile a list of 11 Best Breakout Stocks to Buy According to Analysts, we analyzed the holdings of the IBD Breakout Opportunities ETF. We then settled on 11 companies backed by solid underlying fundamentals and well poised to breakout, according to analysts, once the sell off dust in the equity markets settles. Finally, we ranked these stocks in ascending order based on analysts’ upside potential (as of May 2).
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Matrix Service Company (MTRX) the Best Breakout Stock to Buy According to Analysts?
A side view of a heavy industrial crane in operation, lifting an oil rig tower.
Matrix Service Company (NASDAQ:MTRX) is an Engineering & Construction company that provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets. Its Storage and Terminal Solutions segment undertakes work related to above-ground crude oil and refined product storage tanks. The company is reaping on its increased focus on large complex projects across the energy and industrial landscape.
Executing a diverse backlog of large multiyear projects is the catalyst behind sustained organic revenue growth. Consequently, revenue in its second quarter fiscal 2025 rose to $187.2 million compared to $175 million a year ago. The increase was attributed to higher volumes in the storage and terminal solution segments.
A backlog of about $1.3 billion as of 2024 underscores Matrix Service Company’s (NASDAQ:MTRX) solid revenue base. Consequently, the company remains in a solid position to achieve its fiscal 2025 revenue guidance of between $850 and $900 million, which would be a significant improvement from revenue of $782.4 million delivered in 2024.
Overall, MTRX ranks 6th on our list of best breakout stocks to buy according to analysts. While we acknowledge the potential of MTRX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MTRX but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
