4 Infrastructure Stocks To Check Out Now As The Bipartisan Infrastructure Package Moves Forward
For newer investors wondering how to start investing in stocks, infrastructure stocks would be a hot pick in the stock market today. Notably, this would be thanks to the current tailwinds in the industry now. Diving right into it, the U.S. Senate passed a bipartisan $1 trillion infrastructure package. In turn, it will now be heading over to the House for approval. For the uninitiated, the current bill will see funds directed towards improving roads, bridges, and broadband infrastructure in the U.S. As the bill clears another hurdle, investor hype around the sector could build as well.
After all, should things go as planned, there would be massive cash flow heading towards the top infrastructure-focused companies? It would make sense then that stock market investors would want a piece of that action as well. In the current context, infrastructure stocks such as T-Mobile (NASDAQ: TMUS) and United Rentals (NYSE: URI) would be in focus. On one hand, T-Mobile is a leading player in the U.S. 5G market today. On the other hand, United Rentals boasts the largest construction equipment rental fleet in the world. Overall, there are plenty of other options for new and old investors to consider in the stock market now. Should all this have you interested in the industry now, here are four top infrastructure stocks to watch this week.
Top Infrastructure Stocks To Buy [Or Sell] Today
- Nucor Corporation (NYSE: NUE)
- Brookfield Infrastructure Partners (NYSE: BIP)
- United States Steel Corporation (NYSE: X)
- Caterpillar Inc. (NYSE: CAT)
Nucor is an infrastructure stock that manufactures steel and steel products with headquarters in North Carolina. It also has operating facilities across the U.S., Canada, and Mexico. Notably, its products include carbon and alloy steel in bars, beams, and plates. The company also brokers ferrous and nonferrous metals, pig iron, and direct reduced iron. NUE stock currently trades at $122.14 as of 2:40 p.m. ET and has more than doubled in valuation year-to-date.
Earlier this week, the company announced that it has completed the acquisition of Cornerstone Building Brands’ insulated metal panels (IMP) business for a cash purchase price of approximately $1 billion. The company says that the CENTRIA and Metl-Span brands acquired from Cornerstone are now part of the newly created Insulated Panel Group, which also includes the company’s existing IMP business, TrueCore.
“We are excited to officially welcome our CENTRIA and Metl-Span teammates as part of the Nucor team,” said Jeff Carmean, President of Nucor Insulated Panel Group. “Adding these two brands to our Insulated Panel Group will allow us to provide our customers with a full range of products to service high-end architectural applications, as well as the quickly expanding cold storage and warehousing markets.” For these reasons, will you consider adding NUE stock to your portfolio?
Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure Partners is one of the largest owners and operators of critical and diverse global infrastructure networks which facilitate the movement and storage of energy, water, freight, passengers, and data. The company’s objective is to generate long-term returns of 12-15% on equity and provide sustainable distributions to stakeholders. BIP stock currently trades at $55.10 as of 2:40 p.m. ET.
Last week, the company reported its second-quarter 2021 financials. Firstly, it posted a net income of $352 million for the quarter compared to a loss of $61 million in the prior year. This was driven by strong organic growth, the contribution from new investments, and the recognition of gains on the sale of its Canadian district energy business and smart meter portfolio.
Secondly, funds from operations (FFO) for the quarter was $394 million, an 18% increase year-over-year. The results were supported by strong growth from its base business and higher volumes attributable to the continued economic rebound. With the exciting financials, is BIP stock worth buying right now?
United States Steel Corporation
United States Steel Corporation (U.S. Steel) is an integrated steel producer that is based in Pennsylvania. It also has production operations in the U.S. and Central Europe. It is one of the largest steel producers in the U.S. The company strives for innovation and serves the automotive, construction, appliance, and containers industries with its high value-added steel products. X stock currently trades at $28.25 as of 2:40 p.m. ET.
In late July, the company reported its second-quarter financials as well. Net earnings for the quarter was $1.01 billion or $3.53 per diluted share. The company also reported net sales of $5.03 billion for the quarter, more than doubling from a year ago. It also recently announced an investment in a state-of-the-art non-grain-oriented electrical steel line to enhance the organization’s position. Lastly, U.S. Steel also ended the quarter with $1.329 billion in cash. All things considered, is X stock a top infrastructure stock to buy?
Following that, we will be taking a look at Caterpillar. In brief, the company primarily designs, manufactures, and markets construction machinery and related equipment. The company accomplishes this via its extensive dealer network that spans across the globe. All of this adds up to make Caterpillar the largest construction equipment manufacturer in the world today. In theory, the company would stand to benefit from the $1 trillion infrastructure bill that is making headlines this week. Because of that, I could see investors eyeing CAT stock now.
As it stands, CAT stock currently trades at $221.36 as of 2:42 p.m. ET. Could it be worth buying at its current price point? Well, for one thing, we could take a closer look at its financials to understand this better. Last month, Caterpillar reported solid figures in its second-quarter fiscal. The company raked in total revenue of $12.89 billion for the quarter, marking a sizable 28% year-over-year jump.
Moreover, Caterpillar also posted surges of 208% in net income and 204% in earnings per share over the same period. By and large, the company appears optimistic about its current trajectory. CEO Jim Umpleby cites improving sales and revenues across the company’s portfolio as key growth factors moving forward. Would all this make CAT stock a top pick in the market for you?