For The Shaw Group, the profits are in the pipeline

Despite a probable U.S. economic slowdown, global growth is proceeding at a better-than-adequate pace (so far), with infrastructure work playing a significant role, and that's good news for The Shaw Group.

The Shaw Group Inc. (NYSE: SGR) is a leading supplier of industrial piping systems, including engineering, pipe erection, and construction/maintenance services.

Analysts really like the fact that Shaw Group has also positioned itself as one of the largest engineering and construction contractors for the power generation market and as a top environmental services company. Analysts also like SGR's large geographic footprint.

Further, in general Wall Street expects 15%-20% revenue growth for fiscal year (FY) 2008, and 12%-15% for 2009, with adequate margins. The Reuters FY 2007/FY 2008 EPS consensus estimates for SGR are $2.44 to $3.41

The risks? Analysts are monitoring potential cyclical declines in markets of SGR's customers, overall cost containment, and the company's order backlog.

The First Call mean rating for SGR is: Buy [12 firms]. Mean 2008 target: $74.00 [high: $90, low: $65].

Stock Analysis: The Shaw Group is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from SGR's shares. Sell/Stop Loss if you were to purchase shares in this company: $44.