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3 Big Winners as House Passes $1.2T US Infrastructure Bill
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The requirement for considerable spending on infrastructure has been a talking point in Washington for quite some time now. However, most of the efforts had more or less been unsatisfactory. Unfortunately, any major bill to uplift the dilapidated transportation and infrastructure facilities in the United States hasn’t got passed in Washington before last week.
Particularly, improving infrastructure conditions were the need of the hour as it led to supply-chain disturbances, which eventually resulted in higher prices for American consumers. Thankfully, such concerns can now be put on the back burner since the Senate version of the $1.2-trillion infrastructure bill was passed by the House of Representatives on Nov 5.
The long-awaited bipartisan infrastructure bill passed the House floor by 228 votes to 206. The bill is now expected to go to President Biden, which invariably will be signed into law soon. Once the landmark bill gets signed, Federal agencies like the Department of Transportation, in particular, will have a tremendous responsibility to execute the law.
Nonetheless, the $1.2-trillion package includes $550 billion for new investments in almost every infrastructure sector over the next five-year period, including transportation, energy, broadband and water. Out of that, $110 billion has been earmarked for roads, bridges, rails and other major projects. As a result, several construction companies have witnessed an uptick in their share prices.
In fact, the largest manufacturer of construction equipment globally, Caterpillar Inc. (CAT - Free Report) , saw its stock price surge more than 4% when markets opened on Nov 8. So far this week, its shares are up 0.4%. Having said that, Caterpillar’s shares have already gained a steady 13.5% so far this year.
Caterpillar was under significant pressure this year due to an increase in commodity prices as well as a slowdown in China’s economic growth. But Biden’s infrastructure package will provide a shot in the arm to Caterpillar. In reality, Caterpillar’s expected earnings growth rate for the current year is a solid 57.3%. The Zacks Consensus Estimate for its current-year earnings has moved up almost 1.9% over the past 60 days. The company currently has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Steel manufacturer Nucor (NUE - Free Report) and producer of construction materials Vulcan Materials Company (VMC - Free Report) have also seen their shares climb more than 4% on Nov 8, after the House of Representatives passed the bipartisan infrastructure bill over the weekend.
Talking about Nucor, it is the largest domestic steel manufacturer, and steel is required to develop America’s infrastructure. So, the bipartisan infrastructure bill should certainly boost Nucor’s stock price. By the way, so far this week, Nucor’s shares have advanced 3.4%. Its shares have soared a whopping 107.5% year to date.
Nucor’s expected earnings growth rate for the current year is a superb 583.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 18.1% over the past 60 days. The company currently has a Zacks Rank #1.
Vulcan Materials, by the way, stands to benefit if roads are repaired soon. After all, it is the largest producer of sand, stone and gravel in the United States. Vulcan Materials’ shares have gained an encouraging 107.5% so far this year and are projected to rally 6.6% this year. The Zacks Consensus Estimate for its next-year earnings has moved up 1.1% over the past 90 days. The company currently has a Zacks Rank #3.
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3 Big Winners as House Passes $1.2T US Infrastructure Bill
The requirement for considerable spending on infrastructure has been a talking point in Washington for quite some time now. However, most of the efforts had more or less been unsatisfactory. Unfortunately, any major bill to uplift the dilapidated transportation and infrastructure facilities in the United States hasn’t got passed in Washington before last week.
Particularly, improving infrastructure conditions were the need of the hour as it led to supply-chain disturbances, which eventually resulted in higher prices for American consumers. Thankfully, such concerns can now be put on the back burner since the Senate version of the $1.2-trillion infrastructure bill was passed by the House of Representatives on Nov 5.
The long-awaited bipartisan infrastructure bill passed the House floor by 228 votes to 206. The bill is now expected to go to President Biden, which invariably will be signed into law soon. Once the landmark bill gets signed, Federal agencies like the Department of Transportation, in particular, will have a tremendous responsibility to execute the law.
Nonetheless, the $1.2-trillion package includes $550 billion for new investments in almost every infrastructure sector over the next five-year period, including transportation, energy, broadband and water. Out of that, $110 billion has been earmarked for roads, bridges, rails and other major projects. As a result, several construction companies have witnessed an uptick in their share prices.
In fact, the largest manufacturer of construction equipment globally, Caterpillar Inc. (CAT - Free Report) , saw its stock price surge more than 4% when markets opened on Nov 8. So far this week, its shares are up 0.4%. Having said that, Caterpillar’s shares have already gained a steady 13.5% so far this year.
Caterpillar was under significant pressure this year due to an increase in commodity prices as well as a slowdown in China’s economic growth. But Biden’s infrastructure package will provide a shot in the arm to Caterpillar. In reality, Caterpillar’s expected earnings growth rate for the current year is a solid 57.3%. The Zacks Consensus Estimate for its current-year earnings has moved up almost 1.9% over the past 60 days. The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Steel manufacturer Nucor (NUE - Free Report) and producer of construction materials Vulcan Materials Company (VMC - Free Report) have also seen their shares climb more than 4% on Nov 8, after the House of Representatives passed the bipartisan infrastructure bill over the weekend.
Talking about Nucor, it is the largest domestic steel manufacturer, and steel is required to develop America’s infrastructure. So, the bipartisan infrastructure bill should certainly boost Nucor’s stock price. By the way, so far this week, Nucor’s shares have advanced 3.4%. Its shares have soared a whopping 107.5% year to date.
Nucor’s expected earnings growth rate for the current year is a superb 583.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 18.1% over the past 60 days. The company currently has a Zacks Rank #1.
Vulcan Materials, by the way, stands to benefit if roads are repaired soon. After all, it is the largest producer of sand, stone and gravel in the United States. Vulcan Materials’ shares have gained an encouraging 107.5% so far this year and are projected to rally 6.6% this year. The Zacks Consensus Estimate for its next-year earnings has moved up 1.1% over the past 90 days. The company currently has a Zacks Rank #3.