Monthly Archives: January 2023

Infrastructure Stocks for Investment

The United States federal government is slated to deliver heavy funding for infrastructure projects in the upcoming years. The onshoring boom starting to take hold makes it a better time than ever to invest in specific stocks focused on infrastructure. 

The infrastructure law will boost the funding of many American infrastructure companies as a growing number look to reshore their businesses to the States. From plane engines to internet service providers, continue reading to discover the possibilities. 

AT&T – T
Internet broadband and mobility (smartphones) are at the forefront of AT&T’s horizon. The company will benefit from the infrastructure bill that is expected to provide $65 billion for expanding broadband internet coverage. T stock has a price-earnings ratio of 7.6 and a high dividend yield of 6.1 percent.

Canadian Pacific – CP
This Canada-based freight-railroad operator is currently merging with Kansas City Southern, one of its major American counterparts. CP has already benefited from solid fertilizer, wheat, automotive, and intermodal volumes, with an overall revenue swelling 19 percent year-over-year. 

Caterpillar – CAT
This equipment giant manufactures pavers, backhoes, and other heavy construction vehicles. CAT gets a chunk of its revenue from selling equipment to oil and natural gas explorers. The farm equipment sector is being boosted by elevated food prices, which fares well for CAT. In the third quarter, CAT jumped 21 percent year-over-year to $15 billion. 

Eaton – ETN
Eaton is well-positioned to benefit from the government’s upcoming electric grid investment due to their development of electrical components and power distribution systems. Last quarter, Eaton soared 75 percent year-over-year in terms of its sector backlog, and the company’s earnings gained 15 percent. 

General Electric – GE
This electrical giant is a massive player in the plane engine market and is expected to grow 10.9 percent between 2021 and 2028. Air travel is growing in popularity, which puts engines in high demand. When GE’s joint ventures are added to the equation, it’s the world’s largest aircraft manufacturer. GE also sells turbines to power natural gas plants, is focused on improving the electrical grids, and will benefit from the government’s investments in the grid. 

Union Pacific – UNP
One of the United States’ largest freight train operators, projects supported by the infrastructure law will be backed by Union Pacific, along with many onshoring goals. The railroad is expected to be adaptable to challenging macroeconomic environments. UNP’s forward price-earnings ratio is 17.5, and the dividend yield is 2.5 percent. 

Vulcan Materials – VMC
One of the biggest providers of raw materials used for construction in America, Vulcan, is slated to receive a heavy lift as a result of road repair, construction of bridges, roads, etc. Materials used include sand, gravel, rock, concrete, stone, and more. Last quarter, 115.9 million of Vulcan’s shares were held or bought, while they unloaded a mere 5.7 million stock shares.

For more details, read the article in full by Larry Ramer at Investor Place.

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J&P Electrical is a full-service electrical supply company. At J&P, we source contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of heavy industrial electrical equipment such as bus plugs, bus duct, transformers, circuit breakers, fuses, and switchboards. Call us at 877-844-5514 for assistance.  

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