Tuesday , 24 May 2022

New $1.2T Infrastructure Bill Will Benefit These 13 Companies

The passage of the $1.2T infrastructure bill should be a major boon to the following 13  stocks over the next 8 years according to an article by kiplinger.com.

This article by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]) and abridged (…) version of a post by Kiplinger and you are encouraged to visit the article for the specific reasons as to their selection of each particular stock.
  1. Brookfield Infrastructure Corporation (BIPC)
    • Together with its sister company, Brookfield Infrastructure Partners (BIP), BIPC is one of the largest diversified infrastructure stocks in the world, with operations spanning utilities, transportation, energy and even data infrastructure.
  2. Caterpillar (CAT)
    •  CAT makes asphalt pavers, compactors, excavators, pipelayers, backhoes and just about everything else you’d need for a major infrastructure project.
  3. ChargePoint Holdings (CHPT)
    • ChargePoint builds customized charging stations and the $7.5 billion in the bill will be enough to deliver about 250,000 charging stations and this massive build-out should directly benefit ChargePoint.
  4. Crown Castle International (CCI)
    • It’s a lot cheaper to blanket a region with cell towers than it is to string new cables and CCI is one of America’s leading wireless tower real estate investment trusts (REITs). Mobile data usage will continue to grow at a blistering rate for the foreseeable future, and Crown Castle is a solid way to play that trend.
  5. Deere (DE)
    • It is a major producer of construction and forestry equipment, and specifically the equipment used in earthmoving and roadbuilding.
  6. Eaton (ETN)
    • Wind and solar farms have to be integrated into the national grid, and that’s exactly what Eaton does as it is a major supplier of electrical components and systems.
  7. Freeport-McMoRan (FCX)
    • 43% of all copper mined is used in building construction, with another 20% used in transportation equipment, and FCX is one of the world’s largest and best-run copper miners. In addition, copper is a critical part of the green energy story, too, as electric vehicles use about four times as much copper as traditional internal combustion vehicles and the transition to renewable solar and wind energy use will require major investments in copper which uses more than four times as much copper as oil and gas.
  8. Global X U.S. Infrastructure Development ETF (PAVE)
    • The ETF currently holds roughly 100 infrastructure stocks so its an ideal single one-stop shop.
  9. Martin Marietta Material (MLM)
    • It makes crushed sand and gravel products, ready-mixed concrete and asphalt, and paving products and services; magnesia-based chemical products for industrial, agricultural and environmental applications; produces dolomitic lime for the steel and mining industries, and makes chemical products for use in flame retardants, wastewater treatment and assorted environmental applications.
  10. Nucor (NUE)
    • As the largest domestic steelmaker in North America, pent-up demand from automakers and other industrial buyers coming out of the pandemic have massively boosted demand for Nucor’s steel and passage of the infrastructure bill is icing on the cake.
  11. Oshkosh (OSK)
    • The bill calls for the electrification of the federal vehicle fleet and Oshkosh recently won the contract to produce 165,000 new mail trucks. In addition, OSK builds specialty trucks used in heavy construction projects as well as cement mixers, truck mounted cranes, “cherry pickers” and other hydraulic lifting systems.
  12. United Rentals (URI)
    • Its General Rentals segment rents out typical construction equipment: backhoes, forklifts, earthmoving equipment, boom lifts, etc., while its Trench, Power and Fluid Solutions segment rents out specialty equipment specifically designed for underground work and fluid treatment.
  13. Vulcan Materials (VMC)
    •  It’s America’s largest producer of construction aggregates, which includes things like crushed stone, sand and gravel. It’s also a major producer of asphalt and cement.

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