Are these infra stocks poised to take off after US$1 tr spending plan?

Highlights

  • The revenue of Caterpillar Inc. (NYSE: CAT) surged 25% YoY in Q3, FY21.

  • Deere & Company’s (NYSE: DE) revenue increased by 29% YoY in Q3, FY21.

  • ChargePoint Holdings, Inc’s (NYSE: CHPT) revenue ticked up 61% YoY in Q2, FY22.

The infrastructure companies saw a silver lining in clouds as the US House of Representatives passed a US$1 trillion infrastructure spending bill on Friday after a month-long debate.

Here we explore five infrastructure stocks that may benefit from the spending plan.

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Caterpillar Inc. (NYSE: CAT)

Caterpillar is based in Deerfield, Illinois, and manufactures construction machinery, engines, and other related products.

The shares of the company traded at US$210.99 at 10:25 am ET on November 9, down by 1.52% from their closing price of November 8. Its stock value increased by 17.62% YTD.

The firm has a market cap of US$113.93 billion, a P/E ratio of 22.53, and a forward P/E one year of 20.84. Its EPS is US$9.35. The 52-week highest and lowest stock prices were US$246.69 and US$160.76, respectively. Its trading volume was 5,944,657 on November 8.

The company's revenue surged 25% YoY to US$12.4 billion in Q3, FY21. For the period, its profit per share was US$2.60 apiece, compared to US$1.22 per share in the third quarter of FY2020.

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Infrastructure stocks: CAT, DE, NUE, MLM, CHPT

Deere & Company (NYSE: DE)

Deere & Company is a manufacturing company based in Moline, Illinois. It manufactures machinery for agricultural use, heavy equipment, forestry, and other sectors.

The stock of the company was priced at US$355.76 at 10:28 am ET on November 9, down 1.41% from its previous closing price. The DE stock rose 34.83% YTD.

The market cap of the company is US$110.36 billion, the P/E ratio is 20.62, and the forward P/E one year is 19.08. Its EPS is US$17.26.

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The stock saw the highest price of US$400.34 and the lowest price of US$245.96 in the last 52 weeks. Its share volume on November 8 was 1,540.514. The firm will release its fourth-quarter financial results on November 24, before the opening bell.

Meanwhile, in the third quarter of fiscal 2021, the company's global sales and revenue surged 29% YoY to US$11.52 billion. Its net income came in at US$1.66 billion, up 106% from US$811 million in Q3, FY20.

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Nucor Corporation (NYSE: NUE)

Nucor is a Charlotte, North Carolina-based steel production firm. It is one of the leading steel producers in the US that also recycles scrap in North America.

The shares of the company traded at US$114.74 at 10:30 am ET on November 9, down by 1.29% from their closing price of November 8. Its stock value ticked up 121.37% YTD.

The firm has a market cap of US$32.71 billion, a P/E ratio of 6.85, and a forward P/E one year of 5.09. Its EPS is US$16.72. The 52-week highest and lowest stock prices were US$128.81 and US$47.94, respectively. Its trading volume was 4,202,309 on November 8.

The company's net sales were US$10.31 billion in Q3, FY21, compared to US$4.92 billion in the same quarter of the previous year. Its net earnings were US$2.22 billion versus US$222.63 million in the comparable quarter of the previous year.

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Martin Marietta Materials, Inc. (NYSE: MLM)

Martin Marietta is a building material company that supplies heavy building materials. It is based in Raleigh, North Carolina.

The stock of the company was priced at US$423.00 at 10:39 am ET on November 9, down 0.47% from its previous closing price. The MLM stock soared 52.99% YTD.

The market cap of the company is US$26.27 billion, the P/E ratio is 36.16, and the forward P/E one year is 35.56. Its EPS is US$11.65.

The stock saw the highest price of US$422.61 and the lowest price of US$253.35 in the last 52 weeks. Its share volume on November 8 was 648,833.

The company's total revenue was US$1.55 billion in Q3, FY21, compared to US$1.32 billion in the year-ago quarter. Its attributable net income came in at US$254.6 million, compared to US$294.4 million in Q3, FY20.

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Infrastructure stocks to watch in November as House passes US$1 trillion spending bill

Source: Pixabay

ChargePoint Holdings, Inc. (NYSE: CHPT)

ChargePoint Holdings is an electric vehicle infrastructure firm that focuses on EV charging stations in various geographical locations. It is based in Campbell, California.

The shares of the company traded at US$26.58 at 10:41 am ET on November 9, down by 3.70% from their closing price of November 8. Its stock value fell 24.96% YTD.

The firm has a market cap of US$8.56 billion and a forward P/E one year of -38.87. The 52-week highest and lowest stock prices were US$49.48 and US$15.34, respectively. Its trading volume was 30,445,410 on November 8.

The company's revenue increased by 61% YoY to US$56.1 million in Q2, FY22. On a GAAP basis, its net loss attributable to common shareholders was US$84.93 million, compared to a loss of US$93.91 million in Q2, FY21.

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Bottomline

Experts believe the House passage of the infrastructure bill would benefit the companies in the coming months. The S&P 500's industrial and material sectors grew 20.48% and 22.50% YTD while increasing 9.22% and 12.41% QTD, respectively. The money will be spent on building highways, public transportation, aviation, and other essential public infrastructure.

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