Tag: infrastructure

The Infrastructure Bill Passed: Here’s What’s Included

by Fred Fuld III

The new infrastructure bill went to a vote last night, Friday, November 5, passing 228 to 206, with 13 Republicans joining all but 6 Democrats in supporting the legislation.

First, the various names of the bill:

  • Infrastructure Investment and Jobs Act
  • Bipartisan Infrastructure Framework (BIF)
  • Bipartisan Infrastructure Deal
  • INVEST in America Act
  • Infrastructure Bill

Details about what is included can be found at Forbes, the Wall Street Journal, and other publications.

Here is a summary:

  • $110 billion for roads and bridges
  • $66 billion for Amtrak
  • $65 billion for broadband Internet
  • $65 billion for the electric grid
  • $55 billion for clean drinking water
  • $48 billion for water infrastructure improvements
  • $39 billion for public transit
  • $25 billion for airports
  • $11 billion for transportation safety programs
  • $7.5 billion for s network of electric-vehicle chargers along highways
  • $5 billion for zero-emission buses including electric school buses
  • $2.5 billion for ferries

If you want to read the whole bill, you can check out H.R.3684.

 

The Top Ten Infrastructure Stocks

by Fred Fuld III

Just one week ago, President Trump’s administration announced a $1 trillion infrastructure proposal to stimulate the economy. Then just four days ago, the House Democrats came up with a $1.5 trillion infrastructure bill.

This huge amount of money should not only help the economy but should also benefit certain stocks involved in the infrastructure business. Here is a list of ten infrastructure stocks that could show an increase in revenues, earnings, and stock price due to the money flowing into this arena.

Arcosa (ACA) provides infrastructure-related products and solutions for the construction, energy, and transportation markets, including commercial, industrial, road and bridge, and underground construction. The stock has a price to earnings ratio of 17 and pays a yield of 0.5%.

Construction Partners, Inc. (ROAD) is an infrastructure and road construction company, providing products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial sites. The stock has a price to earnings ratio of 22 and does not pay a dividend.

Primoris Services Corporation (PRIM) is a specialty contractor and infrastructure company, which provides construction, fabrication, maintenance, replacement, and engineering services, including highway and bridge construction, airport runway and taxiway construction, and demolition. The stock has a P/E ratio of 11 and pays a yield of 1.4%.

Tutor Perinin (TPC) is a construction company that provides diversified general contracting, construction management, and design-build services. The company has been generating negative earnings and does not pay a dividend.

Nucor (NUE) manufactures and sells steel and steel products used in numerous infrastructure projects. The stock has a P/E ratio of 16.5 and pays a yield of 3.8%.

Vulcan Materials (VMC) produces and markets construction aggregates, asphalt mix and ready-mixed concrete for highways, airports, and government buildings. The stock has a P/E ratio of 26 and pays a yield of 1.1%.

Martin Marietta Materials (MLM) is a major supplier of aggregates and heavy building materials. The stock has a P/E ratio of 22 and pays a yield of 1.0%.


Aecom (ACM) is a provider of design, engineering, and construction services. The company has been generating negative earnings and does not pay a dividend.

Caterpillar (CAT) is a heavy equipment manufacturer with products used in infrastructure. The stock has a P/E ratio of 13 and pays a yield of 3.2%.

Granite Construction (GVA) is an infrastructure contractor and a construction materials producer. The company has been generating negative earnings but pays a dividend of 2.7%.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Infrastructure Stocks Under Trump Administration

When you filter through all the news about Donald Trump and his upcoming policies, one of the proposals that stands out is his plan to spend a trillion dollars on infrastructure.

So what is infrastructure? Infrastructure includes such things as roads, bridges, tunnels, dams, water pipes, and sewers. The companies that should benefit are those that build, repair, and provide the materials and equipment for infrastructure.

In terms of what stocks may benefit, there are many to choose from. We have compiled a list of over 20 stocks involved in the infrastructure industry. Here are a few that stand out.

Granite Construction (GVA) produces construction materials for the repair of highways, airports, and other types of infrastructure. The stock trades at 28 times forward earnings, and earnings for the latest reported quarter went from 77 cents per share to 92 cents per share, an increase of over 19%. The stock currently pays a yield of 0.85%.
Martin Marietta Materials (MLM) is a producer of granite, limestone, sand, and gravel, which are critical products used in infrastructure repair. The stock has a forward price to earnings ratio of 23.7, and a small yield of  0.8%. Earnings increased by 43% for the latest quarter, year-over-year.
Vulcan Materials Company (VMC) is another infrastructure materials producer, providing concrete, sand and gravel for these projects. The forward P/E is 29.1 and the yield is 0.6%.

Check out our list of over 20 stocks involved in the infrastructure industry. Hopefully one of these stocks will repair your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written.