Are These The Best Infrastructure Stocks To Invest In Right Now?

As investors digest a wide spread of economic data alongside their Thanksgiving meals, infrastructure stocks continue to gain traction. For the most part, this area of the stock market today stands to benefit from several key tailwinds. To begin with, the industry is home to companies that play crucial roles in, well, infrastructure work. This ranges from the upkeep of roads and bridges to electric vehicle (EV) charging stations among others. All of which would come into focus as the economy continues to rebound from the pandemic.

Not to mention, there is also the recent trillion-dollar infrastructure bill to consider. Since mentions of it began to pop up this year, the bill has and continues to generate substantial lift for infrastructure stocks. Take companies like Steel Dynamics (NASDAQ: STLD) and United Rentals (NYSE: URI) for instance. Both STLD stock and URI stock are currently sitting on year-to-date gains of over 60%. In brief, Steel Dynamics is a leading steel producer while United Rentals is the largest equipment rental firm globally. Arguably, their momentum would be thanks to their prominent roles in the broader infrastructure construction industry.

Stock performances aside, these two companies are also gaining on the financial front. In their latest quarterly earnings calls, both firms posted solid figures. In particular, Steel Dynamics more than doubled its total revenue year-over-year. The company also posted massive gains of over 880% in both its net income and earnings per share over the same period. Meanwhile, United Rentals raised its full-year guidance for total revenue and adjusted EBITDA as its rental figures came in above expectations. All things considered, I could see investors watching the top infrastructure stocks in the stock market now.

Top Infrastructure Stocks To Buy [Or Sell] Ahead Of December 2021

Nucor Corporation

Starting us off today is the Nucor Corporation. For some context, it is the largest producer of steel in the U.S. Additionally, it is also the biggest mini-mill steelmaker and recycler of scrap in North America. Nucor offers a wide array of steel-based offerings. This includes but is not limited to carbon and alloy steel construction components, steel racking, precision castings, metal building systems, and insulated metals panels. Moreover, the company also supplies ferrous and nonferrous metals via its David J. Joseph subsidiary.

Overall, demand for Nucor’s wares would be on the rise thanks to the current construction efforts nationwide. Likewise, investors appear to be giving similar attention to NUE stock now. Year-to-date, the company’s shares are currently holding on to gains of over 120%. Nucor also reported record figures in its latest fiscal quarter earnings call. In detail, the company posted an earnings per share of $7.28, smashing its previous record of $5.04. On top of that, Nucor also saw its total revenue double year-over-year.

If all that wasn’t enough, the company remains as busy as ever on the operational front as well. Just last week, it revealed plans to add a blast and prime line at its greenfield steel plate mill in Brandenburg, Kentucky. According to Nucor, this addition to its latest mill will provide its Nucor Plate Group with “even broader capabilities and offerings”. This would be in the form of thicker and wider plate products. Given all of this, will you be adding NUE stock to your portfolio?

NUE stock chart
Source: TD Ameritrade TOS

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Caterpillar Inc.

Another name to consider among infrastructure stocks now would be Caterpillar. As most would know, it is a titan in the global construction machinery and equipment market now. Through its portfolio, Caterpillar would develop and provide the necessary tools needed to carry out infrastructure-related work. As such, it would make sense that investors looking to bet on this industry tailwind would be eyeing CAT stock. This would especially be the case as global construction efforts rise from pandemic-era levels. Evidently, CAT stock is up by over 110% since then.

Despite all of this, Caterpillar does not seem to be slowing down anytime soon. As of this week, the company is now working with Microsoft (NASDAQ: MSFT) and Ballard Power Systems (NASDAQ: BLDP). Through this alliance, the trio are looking to test the capabilities of hydrogen fuel cells. In essence, they will be working on a power system that incorporates large-format hydrogen cells. This system will then serve to produce reliable and sustainable backup power for Microsoft’s data centers, according to Caterpillar.

Amid all of this, Caterpillar is providing the overall system integration, power electronics, and controls that form the system’s core structure. Jason Kaiser, VP of Caterpillar’s Electric Power Division said, “This hydrogen fuel cell demonstration project enables us to collaborate with industry leaders to take a large step toward commercially viable power solutions that also support our customers in making their operations more sustainable.” With Caterpillar seemingly firing on all cylinders now, would CAT stock be a top buy in your book?

CAT stock
Source: TD Ameritrade TOS

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Deere & Company

Following that, we will be taking a look at Deere & Company, also known as John Deere. By and large, it is a manufacturing company. Notably, the company is in the business of making agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains to name a few. The viability of John Deere’s services continues to propel DE stock in the stock market now. Since its Covid-era low, the company’s shares have skyrocketed by over 220%. This would be after gaining by 5% during intraday trading on Wednesday.

All in all, the recent movement in DE stock could be thanks to the company’s latest quarterly earnings figures. In short, John Deere posted solid figures across the board. Namely, the company raked in a total revenue of $11.33 billion for the quarter, marking a sizable 16% year-over-year increase. Adding to that, John Deere also posted a net income of $1.28 billion for the quarter. This would indicate a year-over-year surge of about 70%.

According to CEO John May, the company’s great performance throughout the quarter is thanks to two key factors. He said,” Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union.” Having read all of this, some would argue that DE stock could have more room to grow. Would you agree?

DE stock
Source: TD Ameritrade TOS

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