As the nation’s infrastructure takes center stage in political discourse and public consciousness, investors are eyeing opportunities in the sector, spurred by calls for revitalization following recent events such as the Baltimore bridge collapse. With a significant portion of America’s infrastructure showing signs of aging and disrepair, allocating funds toward critical upgrades has become imperative. Here are three top infrastructure stocks poised to benefit from this renewed focus on infrastructure development.
Vulcan Materials (VMC): Building the Foundation for Growth
Vulcan Materials (NYSE: VMC) stands as the largest supplier of construction aggregates in the nation, playing a pivotal role in infrastructure development. With its robust portfolio of construction materials, including crushed stone, sand, and gravel, Vulcan is well-positioned to capitalize on increased demand for transportation and non-residential projects. The company’s optimistic outlook, coupled with its recent forecast of net earnings growth for 2024, underscores its potential for sustained profitability. Moreover, Vulcan’s recent dip presents an attractive buying opportunity, supported by oversold indicators and a compelling yield, making it a top pick for investors seeking exposure to infrastructure growth.
Caterpillar (CAT): Paving the Way for Progress
Caterpillar (NYSE: CAT) emerges as another standout player in the infrastructure space, renowned for its leadership in heavy machinery and equipment. Despite recent sales guidance concerns, Caterpillar remains a cornerstone investment, poised to benefit from increased infrastructure spending. With demand for improvements to infrastructure on the rise, Caterpillar’s extensive product portfolio and global presence position it as a key beneficiary of infrastructure revitalization initiatives. Analysts’ upward revisions of price targets underscore confidence in Caterpillar’s long-term growth prospects, making it an opportune choice for investors seeking exposure to infrastructure-related projects.
iShares U.S. Infrastructure ETF (IFRA): Diversified Exposure to Infrastructure Assets
For investors seeking diversified exposure to the infrastructure sector, the iShares U.S. Infrastructure ETF (NYSEMKT: IFRA) offers a compelling investment opportunity. This exchange-traded fund (ETF) tracks the performance of U.S. companies with infrastructure exposure, providing access to a broad range of equities poised to benefit from increased infrastructure activities. With a diverse portfolio comprising 162 stocks, including industry leaders such as NRG Energy, Dominion Energy, and Kinder Morgan, the ETF offers investors a cost-effective means to capitalize on infrastructure growth. As the fund rebounds from recent pullbacks, investors can seize the opportunity to gain exposure to a diverse array of infrastructure assets at an attractive valuation.
Seizing Opportunities in Infrastructure Investment
With the urgent need for infrastructure revitalization driving increased spending and investment, Vulcan Materials, Caterpillar, and the iShares U.S. Infrastructure ETF emerge as top picks for investors seeking exposure to this burgeoning sector. As infrastructure development takes center stage on the national agenda, these stocks offer compelling opportunities for long-term growth and capital appreciation in the evolving landscape of infrastructure investment.
