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President Joe Biden’s big speech on infrastructure is scheduled to take place on Wednesday when he visits Pittsburgh. Analysts have reflected on his willingness to spend $ 3 trillion or more on roads, clean energy, broadband, and more – including how to make money out of it.
Stifel analysts covering specialty engineering, construction and related services highlighted five stocks in those sectors, saying in a Monday note that they were “ways to play off infrastructure spending.” The analyst team focused on names that have earned “buy” ratings from their store and that have high exposure to earnings in “potentially investing markets”.
Here are Stifel’s five choices:
Dycom Industries
DY,
: “Estimated income exposure – 100%,” and the company is focusing on “telecommunications, rural broadband deployment,” analysts said.
Quanta Services
PWR,
: “Estimated exposure to income – 69%. Power Grid, Telecom. “
MasTec
MTZ,
: “Estimated exposure to income – 68%. 5G / rural broadband, renewable energy construction, electric T&D [transmission & distribution]. “
MYR Group
MYRG,
“Estimated exposure to income – 61%. Electricity network, renewable energies, rail, schools, energy modernization. “
Atlas technical consultants
ATCX,
: “Estimated income exposure ~ 25-35%. We note that while the estimated revenues in the markets that could be affected by the infrastructure revival are high at ~ 59%, the high percentage of work done on existing assets limits exposure to some extent. Highways, roads, public transport, energy / security modernization, energy. “
Beyond those five stocks, analysts at Stifel said other beneficiaries of specialty engineering, construction and related services will include an infrastructure rehabilitation company. Aegion
AEGN,
(although they note that it is in the process of becoming private and that it only has a “hold” note), as well as Emcor Group
EME,
AZZ
AZZ,
Tetra Tech
TTEK,
and Montrose Environment
MEG,
At the same time, analysts from the energy sector at Truist said in a note on Monday that there is “a broad consensus for a high probability of a stand-alone storage ITC,” referring to a credit of investment tax, which would come “eventually in a Biden infrastructure package.” . ”
This type of incentive “would further support the space’s already strong growth prospects,” the Truist team said.
Energy technology company Enphase Energy
ENPH,
and Sunrun
CLASSES,
a supplier of solar panels and batteries, both have indicated that ITC has a good chance of becoming a reality, analysts said. Truist gives each company a “buy” rating.
Away from individual stocks, Phil van Doorn of MarketWatch wrote that the Global X US Infrastructure Development ETF
PAVE,
might be your best bet to take a broad approach to accompanying Biden’s infrastructure plan, and MarketWatch’s Andrea Riquier listed PAVE among ETFs poised to win during Biden’s tenure.
Related: Selling Clean Energy ETFs Can Be A Buying Opportunity
And see: United States achieves C rating on infrastructure bulletin
More: Biden wants massive infrastructure package approved this summer
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