Infrastructure stocks are shares from companies that are in the business of building and maintaining bridges, roads, highways, railways; transportation, communication, etc.
Some companies in the infrastructure business include include Vulcan Materials, Carterpillar, Consolidated Edison Inc., Dominion Energy, Inc, etc.
For investors looking for the best stocks to buy, infrastructure stocks would be a hot pick.
Not only because they can add diversification to your portfolio, but also you can benefit from the $1 trillion infrastructure bill that Congress just passed.
President Joe Biden’s number one goal since being in office is to boost the American economy by investing in the country’s infrastructure.
Congress has passed the $1 trillion infrastructure bill. Therefore, it will be a significant boost for infrastructure stocks.
So what are the best infrastructure stocks right now?
Vulcan Materials (VMC), Martin Marietta Materials (MLM), Vale (VALE), Nucor (NUE), Carterpillar (CAT), Deere (DE), United Rentals (URI), and ChargePoint Holdings (CHPT) are top on the list.
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Best Infrastructure Stocks to Buy Today
- ChargePoint Holdings (CHPT)
- Nucor (NUE)
- Carterpillar (CAT)
- Deere (DE)
- United Rentals (URI)
- Vulcan Materials (VMC)
- Martin Marietta Materials (MLM)
- Vale (VALE)
1. ChargePoint Holdings (CHPT) – 1st of the Best Infrastructure Stocks
ChargePoint is the first on the list of our 8 best infrastructure stocks to buy right now for two main reasons. First, the share price is very reasonable, trading at $22.69 as of October 27, 2021.
This means that beginner investors with little money should be able to afford buying several shares. Second, ChargePoint is in the EV business, an industry that is rapidly growing.
Regardless of an infrastructure bill, this company has a great short and long-term prospect.
ChargePoint is an American electric vehicle (EV) charging infrastructure company, founded in 2007. It is headquartered in Campbell, California. The company operates EV charging stations operating in 14 countries. ChargePoint has approximately 1045 employees.
The current CEO is Pasquale Romano. In 2021, the company made $146 million in revenue. Some of its subsidiaries are 365 Energy Group, ViriCiti B.V and has.to.be gmbh.
The Motley Fool wrote an interesting article about the future prospect of ChargePoint.
According to the Motley Fool, “the market for electric vehicles is expected to grow rapidly, and [ChargePoint – CHPT] plans to keep playing a big role in powering them up.”
President Biden’s infrastructure bill will also play a big role in that growth. $7.5 billion of that bill will be in investment in electric vehicle charging infrastructure. That is then a good opportunity for ChargePoint.
According to the article, ChargePoint, in the next 5 years, will see most of its expansion in Europe. In terms of metric/company’s finances and long-term outlook, the company has a projected revenue of $346 million in the 2022 fiscal year, $602 million in 2023, $984 million in 2024, $1.43 billion in 2025, and $2.07 billion in 2026.
However, the company faces strong competition from EV charging companies like Blink Charging, Volta, and EVgo. That can make it challenging for ChargePoint to successfully execute its growth plan.
However, as long as there is a demand for electric vehicles, there is also going to be a demand for EV charging stations. So, if you are a long term investor with a tolerance for risk, CHPT should be on your list of best infrastructures stocks to own.
2. Nucor Corporation (NUE) – 2nd of the Best Infrastructure Stocks
Nucor ranks 2nd in our list of the best infrastructure stocks to buy. It is the largest steelmaker in North America. This company manufactures steel and steel products. Its products include carbon and alloy steel in bars, beams and plates. It provides products for airports, bridges, waterways, etc.
Nucor is headquartered in North Carolina with operating facilities across North America. Nucor is already booming. Now that Congress passed the infrastructure bill, this company will be even more profitable.
3. Caterpillar (CAT) – 3rd of the Best Infrastructure Stocks
Carterpillar is a top pick when it comes to potential beneficiaries of an infrastructure bill. When it comes to construction, Caterpillar’s equipments are everywhere.
Caterpillar is a manufacturer of heavy construction equipment. It makes asphalt pavers, pipelayers, backhoes, almost anything you can think of when it comes to a construction project.
4. Deere & Company (DE) – 4th of the Best Infrastructure Stocks
Deere & Company (DE) is an obvious beneficiary of the Infrastructure Investment and Job Act. The company manufactures agricultural machine, heavy equipment, forestry machinery, diesel engines, lawn care equipment, etc.
The company was founded in 1837 and is headquartered in Moline Illinois. Deere has approximately 69,634 employees. Some of the subsidiaries include John Deere Ltd, The Vapormatic Company, Nortrax, etc.
5. United Rentals, Inc – 5th of the Best Infrastructure Stocks
United Rentals is the largest equipment rental company in the world. It was founded in 1997 and headquartered in Stamford Connecticut. It has approximately 18,250 employees.
United Rentals generated $8.53 billion in 2020. Some of its subsidiaries include United Rentals (North America) Inc, Vander Holding Corporation, UR Acquisition Corp., Bakercorp International Holdings, Inc.
6. Vulcan Materials (VMC) – 6th of the Best Infrastructure Stocks
Vulcan Materials is the largest producer of construction aggregates (crushed stone, sand, and gravel) in the US. It is also a major producer of asphalt, ready-mixed concrete, etc.
It is obviously a top pick when it comes to the Infrastructure Investment and Jobs Act. In ‘building America’, you will see a lot of paved and repaired roads soon. Therefore, it makes sense to own Vulcan Materials (VMC).
The company’s corporate office is located in Birmingham, Alabama.
7. Martin Marietta Materials (MLM) – 7th of the Best Infrastructure Stocks
To build and repair the American infrastructure, you will need cement and asphalt for roads and bridges, among other things. Just like, Vulcan Materials, Martin Marietta Materials supplies aggregates and heavy building materials. The company operates in 26 states, Canada and the Caribbean.
The company is headquartered in Raleigh North Carolina. It has approximately 8,700 employees. It generated $4.7 billion of revenue in 2020. The current CEO is C. Howard Nye.
Now that infrastructure funds will be available soon, you will see a lot growth from this stock.
8. Vale (VALE) – 8th of the Best Infrastructure Stocks
Vale (VALE) is a Brazilian multinational infrastructure company in the metals and mining business. It is the largest producer of iron ore and nickel in the world.
The company was founded in 1942. The corporate office is in Rio de Janeiro in Brazil. It has approximately 74,316 employees. The current CEO is Eduardo Bartolomeo.
The Bottom Line
Infrastructure stocks are stocks from companies that engage in the business of building and repairing roads, bridges, waterways, highways, railways; transportation, communication, etc. Because building the American’s infrastructure is very high on President Joe Biden’s list, these stocks tend to benefit significantly.
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