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The last month has been very good for the stock price of TRC Companies, Inc. (NYSE:TRR), which has doubled since early May. I think this is a company with a great deal of growth potential, and I am confident we'll see its stock price double again within the next two years.

In fact, imagine that TRC doesn't even have sell-side research coverage and the stock still succeeded in attracting some of the smartest money on Wall Street. TRC provides infrastructure, engineering, and environmental services such as as transportation, land development, water and wastewater treatment, and the redevelopment of contaminated sites.

These are absolutely vital services for a wide range of industries, from energy providers to construction firms; TRC also provides its services to government agencies. TRC has been benefiting of late from the strong economy, but it will be in demand even in a slower economy, as it provides services that are necessary just to keep businesses going --not just for growth. In fact, the company's website clearly indicates that it is positioning itself to work on the $1.3 trillion of upgrades that will be necessary just in the U.S. infrastructure (such as bridges and roads) in the next decade.

Infrastructure stocks have been really, really hot, like Foster Wheeler, Ltd. (NASDAQ:FWLT) and McDermott International Inc. (NYSE:MDR). TRC's time is coming, too. TRC is now poised to take advantage of this demand. The company is a year into a three-year turnaround strategy that has focused on improving the company's infrastructure by centralizing decisions and creating new systems that are better at tracking the company's wide-ranging efforts.The strategy has been expensive -- the company suffered a huge net loss for FY 2006 -- but it is already starting to pay off, with net income for the six months ending December 31, 2006, rising to $1.3 million, compared to a net loss of $9.8 million for the 12 months ending December 31, 2005. CEO Chris Vincze claims this three-year strategy will continue to cut costs through 2008, leaving the company poised to generate much larger profits in 2009.

The doubling of TRC's stock price came not long after these results were announced, and it's clear that investors have noticed the company's changing fortunes. Combining these necessary services with a new foundation for profitability, TRC will be a great value pick if you get in soon enough.

Type of stock: A perfectly positioned (but very low profile) small-cap infrastructure and engineering company that has improved its own infrastructure and is ready to start generating serious profits.

Price target: It's always a little daunting to pick a stock at the peak of its 52-week range, but I think this one is only going up and you are buying into strength. If you grab it now while it's still below $16 I think you can double your money in the next 12 months.

TRR 1-yr chart:

TRR

Source: TRC: It's The Infrastructure, Silly