Riding the construction wave: 10 fastest growing infra stocks

Summary

  • Vulcan Materials (NYSE: VMC) has a P/E ratio of 35.87 and a dividend yield of 0.84%.
  • Caterpillar, Inc.’s (NYSE: CAT) P/E ratio is 34.16 and dividend yield is 2.12%. 
  • Freeport-McMoRan (NYSE: FCX) has a P/E ratio of 20.11 and a dividend yield of 0.83%. 

Infrastructure companies are those engaged in building roads, bridges, highways and rails, and providers of EV charging stations and drinking and waste-water infrastructure.

On Wednesday, the bipartisan infrastructure investment bill worth around US$1 trillion advanced in the US Senate, with 67-32 voting in favor of debating the measure. The proposal, when signed into law, is expected to create jobs, and drive economic growth.

Here we explore ten infrastructure stocks that are expected to benefit from the measure.

Martin Marietta Materials, Inc. (NYSE: MLM) is one of the largest construction materials producers, such as sand, gravel, and crushed stone in the United States. 

With a market capitalization of US$ 23.19 billion, the company has a P/E ratio of 30.56. The dividend yield of MLM is 0.65%. 

MLM released its Q2 results on Thursday. The revenue for the June quarter was US$1.4 billion, an 8% increase YoY, and the net income was US$225.8 million, registering a 4% YoY growth. EPS diluted was US$3.61.

The stock closed at US$367.46 on July 28, 2021. It gave around 29.33% return YTD.

Also Read: AMD revenue surges 99% in Q2, Qualcomm’s net income more than doubles

Source: Pixabay

Vulcan Materials Company (Holding Company) (NYSE: VMC) also produces construction aggregates. Its P/E ratio is 35.87, market capitalization is US$24.5 billion, dividend yield is 0.84%, and annualized dividend is US$1.48.

VMC’s revenue for the March quarter was US$1.07 billion, increased nearly 2%, and net income was US$161 million, an increase of 166% YoY. The company’s EPS diluted was US$1.20 compared to US$0.45 in the previous year quarter.

VMC will release its Q2 results on August 4. The stock grew 23.13% YTD and closed at US$182.98 on July 28, 2021.

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Caterpillar, Inc. (NYSE: CAT) is a heavy equipment, power solutions, and locomotives manufacturer, with a P/E ratio of 34.16, dividend yield of 2.12%, annualized dividend of US$4.44, and market capitalization of US$116.95 billion.

Its revenue for the March quarter was US$11.89 billion, and net income was US$1.53 billion, a 12% and 40% increase, respectively, YoY. Earnings per share diluted were US$US$ 2.77. 

Its June quarter result will be announced on Friday. The stock closed at US$211.44 on July 28 and gave around 16.78% YTD.

Also Read: Check out these six high-paying dividend penny stocks

Freeport-McMoRan, Inc. (NYSE: FCX) is a mining company, primarily dig for copper and gold. It has a P/E ratio of 20.11, dividend yield of 0.83%, annualized dividend of US$ 0.30, and market capitalization of US$56.3 billion. 

The revenue for the second quarter was 5.75 billion, registering 88% growth YoY. Its net income was US$1.1 billion or diluted earnings per share of US$0.73 compared to the net income of US$53 million in prior year Q2. 

The stock closed at US$36.68 on July 28. It has given a 47.89% return YTD. 

Also Read: Three healthcare stocks stealing the show today

Astec Industries, Inc. (NASDAQ: ASTE), a construction and development equipment manufacturer, has a P/E ratio of 40.1. Its market capitalization is US$1.39 billion, the dividend yield is 0.74%, and annualized dividend is US$0.44.

Its revenue and net income were US$ 288.4 million and US$ 8.7 million, giving a 1.5% and 58% decline, respectively, YOY. The EPS diluted reduced to US$ 0.38 from US$ 0.91 in a year-ago period.   

The company will announce its second-quarter results on August 4. The stock gave 5.04% YTD and closed at US$60.23 on July 28.

Also Read: Banking on Banks: Five hot bank stocks based on earnings to explore

Cleveland-Cliffs Inc. (NYSE: CLF) is an iron ore mining company and supplies iron ore pellets to North America. Its P/E ratio is 16.34, and market capitalization is US$12.4 billion. 

The revenue and net income for the second quarter of 2021 were US$5.0 billion and US$780 million, registering a 362% increase in revenue, an improvement from the net loss of US$124 million in Q2 of 2020. EPS diluted was US$1.33.

The stock closed at US$23.56 on July 28. The stock gave 70.74% YTD.

Also Read: 10 technology stocks that are under US$100 but popular on NASDAQ

United Rentals, Inc. (NYSE: URI) provides construction equipment on rent. It has a market capitalization of US$23.4 billion and a P/E ratio of 23.47. 

The revenue and net income for the second quarter were US$2.29 billion and US$293 million, reflecting an increase of 18% and 38%, respectively, YoY. The EPS diluted for the June quarter was US$4.02 against US$2.93 a year ago. 

URI stock gave a 39.05% return YTD. The stock closed at US$325.89 on July 28.

Also Read: Boeing returns to profit for the first time in 2 years, revenue up 44%

ChargePoint Holdings, Inc. (NYSE: CHPT) has a market capitalization of US$7.7 billion. This EV charging network provider does not pay any dividend. Its IPO came in July 2019.

Its revenue for the quarter ended April 30 was US$40.5 million, reflecting an increase of 24% YoY. CHPT incurred a net loss of US$1.88 million compared to US$30 million in the previous year’s quarter. Its diluted net loss per share was US$0.83 compared to US$2.46 in the same period in 2020.

On July 12, CHPK announced a secondary public offering where certain stockholders to offer 12,000,000 shares for which registration statement has been filed with SEC.  

The stock closed at US$24.37 on July 28. The YTD return was -39.95%.

Also Read: Seven fast-growing stocks on Nasdaq in 2021

Source: Pixabay

Deere & Company (NSE: DE) is an agricultural equipment manufacturer, a known name in the heavy machinery industry. Its market capitalization is US$112.6 billion, the P/E ratio is 24.88, the dividend yield is 1.02%, and annualized dividend is US$3.60.

The revenue and net income for the quarter ended May 2, 2021, was US$21.2 billion and US$3.01 billion, respectively, representing 25% and 155% growth, sequentially. The EPS diluted was US$9.55 compared to US$.73 in the year-ago quarter.

YTD stock return is 33.73%, and the stock closed at US$353.56 on July 28.

Also Read: Facebook doubles Q2 profit; PayPal’s net profit declines 23%

Union Pacific Corporation (NYSE: UNP), a railroad provider in North America, has a market capitalization of US$141.8 billion. Its P/E ratio is 24.77, the dividend yield is 1.96%, and annualized dividend is US$4.28.

The revenue and net income for the June quarter, 2021, was US$5.5 billion, up 30% YoY. The net income was US$1.8 billion, up 59% YoY, and diluted EPS was US$2.72 against US$1.67 in the June quarter of 2020.  

UNP stock grew 4.37% YTD and closed at US$216.56 on June 28, 2021.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.

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