4 Stocks Set to Gain From Trump's Infrastructure Bill
The Trump administration is leaving no stone unturned to ensure the U.S. economy roars back to life, after having reopened for weeks now. This is why a new plan to spend on the country’s infrastructure is being formulated. This might paint a brighter picture of the United State’s current economic scenario.
The President is considering a $1T Infrastructure Plan
The Department of Transportation has prepared a preliminary version of the bill, which addresses areas that would witness the major infrastructure work. Under the bill, not only roadwork and bridges have been allotted funds but also 5G wireless infrastructure and broadband connectivity in rural areas. The President is expected to discuss rural broadband access at a White House event on Jun 18.
The proposal by the Trump administration is part of a stimulus measure meant to boost the U.S. economy especially after the coronavirus pandemic. The move could be highly beneficial, since infrastructure plans are usually spread over a long period and employ a lot of people.
Lawmakers from both parties are brainstorming on the bill, since the timing and scope of the stimulus is extremely vital. After all, the nationwide lockdowns earlier this year pushed the U.S. economy into a recession and monetary stimulus in the form of infrastructure spending could be one of the many ways to boost it.
This is why infrastructure spending is so crucial right now. The measures ensure long-term employment for those engaged in building and repair work of roads, bridges, highways and upgrading airports that would leave a lingering impact on the economy. In addition, upgrading Internet connectivity systems and implementing new ones, especially 5G infrastructures across remote areas is ideal as well.
Second, infrastructure spending while the federal fund rates are still low would be beneficial for the companies as well. Since the Federal Reserve has no plans to raise its benchmark rates for a while, as mentioned in its latest FOMC meeting, the infrastructure plans could be highly effective with minimal federal deficit.
Given that the bill will primarily boost companies that are engaged in heavy construction, building products, network and related infrastructure, one should consider investing across these industries.
4 Stocks to Buy
We have, therefore, chosen four stocks that could gain from the proposed infrastructure bill. All of these stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Great Lakes Dredge & Dock Corporation GLDD is a provider of dredging services. Great Lakes Dredge & Dock’s expected earnings growth rate for the current year is 23.3%. The Zacks Consensus Estimate for the company’s current-year earnings has moved 23.3% north in the past 60 days. Great Lakes Dredge & Dock belongs to the Zacks Building Products - Heavy Construction industry and carries a Zacks Rank #1.
U.S. Concrete, Inc. USCR is a manufacturer and marketer of ready-mixed concrete, aggregates and concrete-related products and services. U.S. Concrete’s expected earnings growth rate for the next year is 12.9%. The Zacks Consensus Estimate for the company’s current-year earnings has moved more than 100% north in the past 60 days. U.S. Concrete belongs to the Zacks Building Products - Concrete and Aggregates industry and carries a Zacks Rank #1.
ADTRAN, Inc. ADTN is a provider of networking and communications equipment. ADTRAN’s expected earnings growth rate for the next year is more than 100%. The Zacks Consensus Estimate for the company’s current-year earnings has moved more than 100% north in the past 60 days. ADTRAN belongs to the Zacks Communication - Infrastructure industry and carries a Zacks Rank #1.
Dycom Industries, Inc. DY is a provider of specialty contracting services. Dycom Industries’ expected earnings growth rate for the next year is 34.9%. The Zacks Consensus Estimate for the company’s current-year earnings has moved 1.5% north in the past 60 days. Dycom Industries belongs to the Zacks Building Products - Heavy Construction industry and carries a Zacks Rank #2.
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