As we kick off August, infrastructure stocks appear to be taking center stage in the stock market today. For the most part, this would be due to yet another update on the highly anticipated $1 trillion infrastructure bill. Over the weekend, the U.S. Senate finalized the text for the Infrastructure Investment and Jobs Act (IIJA) spanning 2,700 pages. Namely, this iteration of the bill includes $550 billion in new spending on crucial infrastructure over the next five years. The likes of which will likely focus on building roads, electric vehicle (EV) charging stations, and replacing lead water pipes. On top of the previously approved funds of about $450 billion, this serves as a major step to bolster the U.S. economy.
Because of all this, it would make sense then that investors are eyeing infrastructure stocks in the stock market now. Notably, major names in the industry now continue to bolster their operations aggressively. Take ChargePoint (NYSE: CHPT) for example. For one thing, ChargePoint recently acquired, “has-to-be”, a European EV charging software company for $295 million. With Europe being a major EV market, this would be a strategic play by ChargePoint. More importantly, the acquisition would also improve the overall quality of its EV charging stations on the software front.
Meanwhile, the Vulcan Materials Company (NYSE: VMC) is currently looking to acquire U.S. Concrete (NASDAQ: USCR) for an estimated $1.294 billion. With U.S. Concrete being another construction aggregate producer, Vulcan would be beefing up its construction-focused operations at a crucial time. Overall, things appear to be heating up as the infrastructure bill takes another crucial step towards the Senate floor. Could one of these top infrastructure stocks be worth investing in now?Top Infrastructure Stocks To Buy [Or Sell] This Month
- Vale (NYSE: VALE)
- Freeport-McMoRan Inc. (NYSE: FCX)
- Caterpillar Inc. (NYSE: CAT)
- General Electric Company (NYSE: GE)
- United Rental Inc. (NYSE: URI)
Vale is a multinational corporation that engages in metals and mining. It is also one of the largest ore logistics operators in Brazil. It has operations abroad that cover approximately 30 countries. The company, in addition to mining, also has a logistics business that integrates mines, railroads, ships, and ports for the transportation of ore. VALE stock currently trades at $21.41 as of 12:12 p.m. ET and is up by over 80% in the past year.
Last week, the company reported its second-quarter performance for 2021. Net operating revenue for the quarter was $16.67 billion, up by 31% year-over-year. The company also reported a net income of $7.58 billion for the quarter, an increase of 36% year-over-year. Vale says that the main drivers for its second-quarter performance were its ferrous minerals, mainly due to higher realized sales prices and higher volumes. Given the impressive financials, will you consider adding VALE stock to your watchlist?Source: TD Ameritrade TOS
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Freeport-McMoRan is an international mining company with headquarters in Phoenix, Arizona. The company operates large, long-lived geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. Its portfolio includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits. It also has significant mining operations in the Americas. FCX stock currently trades at $37.12 as of 12:13 p.m. ET.
On July 22, 2021, the company reported its second-quarter and six-month financials for 2021. Firstly, Freeport posted a net income of $1.08 billion or $0.73 per share. Its consolidated sales totaled 929 million pounds of copper, 305,000 ounces of gold, and 22 million pounds of molybdenum for the second quarter. The average realized prices for the quarter were $1.48 per pound of copper and it expects to average at $1.35 per pound of copper for the year 2021. With that in mind, will you consider watching FCX stock?Source: TD Ameritrade TOS Caterpillar Inc.
Next on this list, we have Caterpillar, an infrastructure company that designs, manufactures, and sells machinery and engines to customers via a worldwide dealer network. In essence, it is one of the world’s largest construction equipment manufacturers. CAT stock currently trades at $207.35 as of 12:13 p.m. ET and has been up by over 55% in the past year. The company also recently reported its second-quarter financials last week.
Diving in, the company reported that its sales and revenues for the quarter increased by 29% to $12.9 billion. It also posted earnings per share of $2.56 for the quarter. The company also ended the quarter with a strong balance sheet, returning $800 million to shareholders through dividends and share repurchases. Chairman and CEO Jim Umpleby said, “We’re encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets.” With that being said, is CAT stock worth watching?Source: TD Ameritrade TOS
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Another top name to consider in the infrastructure industry now would be the General Electric Company (GE). In brief, GE is a multinational conglomerate that boasts leading positions across a wide array of industries. These include the renewable energy, aviation, health care, and power businesses. In particular, the General Electric Renewable Energy (GERE) division is a $16 billion business with one of the broadest portfolios in the renewable energy industry today.
For the most part, GERE being involved in infrastructure work would help President Biden achieve his zero-emissions goal. As it stands, GE stock currently trades at $101.57 as of 12:13 p.m. ET, after a 1-for-8 reverse stock split. Now, the company’s renewable energy arm remains hard at work as well. As of July 22, GERE is working with Whiffle, a Netherlands-based weather forecasting tech firm. Through this collaboration, GE is planning to leverage Whiffle’s tech to optimize its wind turbine operations. With this in mind, will you be keeping an eye on GE stock?Source: TD Ameritrade TOS
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Following that, we will be taking a look at United Rentals Inc. If anything, United Rentals would be another top pick among infrastructure stocks now. In short, it is the largest equipment rental firm globally. For a sense of scale, United Rentals operates via an integrated network of over 1,330 rental locations across the world. The likes of which span North America, Europe, Australia, and New Zealand. With a rental fleet of over 650,000 units, United Rentals’ services could be in focus now.
Namely, the company mainly caters to customers in the construction, industrial, and utility markets. With URI stock currently trading at $326.64 as of 12:13 p.m. ET, would it be a wise offering? Well, for one thing, the company reported solid figures in its second-quarter fiscal last week. In it, United Rentals raked in total revenue of $2.06 billion for the quarter. It also saw sizable year-over-year gains of 17% in net income. In addition, United Rentals is raising its fiscal 2021 outlook in anticipation of persisting tailwinds this year. Could this make URI stock a top watch for you?Source: TD Ameritrade TOS