Displaying items by tag: infrastructure
This infrastructure package is a big deal in many ways. Not only has it been—and will it be—a major market-mover, but the deal is also expansive and intricate in scope. For example, did you know that $100 bn has been specifically earmarked for increasing internet connectivity/infrastructure, which Biden refers to as the new electricity. As one can imagine, this will creative strong returns for firms that specialize in the space. Accordingly, take a look at two stocks: Applied Materials (Nasdaq: AMAT), and American Tower Corporation (REIT) (NYSE: AMT). AMT is a chipmaker and the forthcoming expansion of internet connectivity is seen as a big driver for the chips they make. American Tower is a major provider of 5G broadband, which will be heavily supported the proposed infrastructure package.
FINSUM: If and when it passes, this package is going to be a huge market driver for years to come. These stocks seem like a no-brainer.
It is not even close to approved yet, but the Biden infrastructure deal has been making serious waves. The implications of the deal are large and would send trillions of government dollars flowing into the private sector. With that in mind, here are four stocks that look like big winners from the package: Eaton Corporation (ETN), Jacobs Engineering Group (J), Herc Holdings (HRI), Mastec (MTZ). Three of these companies (other than HRI) are engineering/construction oriented, which makes sense. Herc Holdings is a rental company that leases vehicles (yes, the Hertz that went bankrupt last year).
FINSUM: Herc is interesting to us because they rent construction and earth-moving equipment. This injection of government dollars would flow through to them and provide a nice hedge against the headwind of the pandemic, which has slowed down retail car rental.
The infrastructure bill is not only making waves in Washington, but also on stock exchanges. The bill is going to send many stocks surging, but here are six names that look likely to do very well if the current plan passes, with a particular focus on semiconductors. One little known detail is that the Biden plan earmarks $50 bn for the US semiconductor industry and an extra ~$175 bn for electric vehicles, which will also help semiconductors. Accordingly, check out these stocks, all of which seem like good candidates for appreciation: Vishay Intertechnology (VSH), Applied Materials (AMAT), Macom Technology Solutions Holdings (MTSI), Micron Technology (MU), Analog Devices (ADI), Maxim Integrated (MXIM).
FINSUM: The semiconductor industry has been lobbying for this to help increase its eroding market share versus China and it seems like the Biden plan will deliver.
Biden’s new proposed $2 tn infrastructure package is a gargantuan bill (coming right after the newest pandemic relief package) that will have significant effects on stocks generally, and specific ones more narrowly. The plan is so big that it harkens back to 1950s era spending. Barron’s described it best, saying “At 10% of current gross domestic product, doled out over eight years, the plan reads like a Rooseveltian blueprint for economic and social engineering”. The big winners are pretty clear: infrastructure stocks, and more specifically construction and industrials. The Invesco DWA Industrials Momentum (PRN) and the Industrial Select Sector SPDR (XLI) are great ways to play the rise in these types of shares, with the latter offering more large-cap exposure. In terms of specific names, look for MasTec, Aecom, and Jacobs Engineering Group.
FINSUM: Biden is setting up infrastructure stocks to have a golden run over the next few years. As the package inches closer to passing, these sectors should rise.
This week was a big one for infrastructure stocks. After years of discussion, Biden took action and put forth an eye-opening $3 tn package (in two parts) for American infrastructure. The package would focus on infrastructure, education, work force development, and fighting climate change. The aim is to make the economy more productive. However, for the stock market, one of the immediate benefits is how such government dollars would affect infrastructure stocks. Most specifically, look at the following sectors: machines, construction, and materials stocks.
FINSUM: $3 tn is a great deal of money, and a lot of it will likely flow into the private sector to fulfil these mandates. Time to dig in and pick winners. We will continue coverage on this in the coming week.