Seven hot infrastructure stocks to explore after Biden’s fiscal boost

Summary

• US-based infrastructure company Martin Marietta Materials reported total revenue of US$982.4 million in Q1, 2021.
• Construction material company Caterpillar Inc. has a market capitalization of US$119.8 billion.
• Bipartisan Infrastructure Framework by the US government would develop infrastructure across the country.

President Joe Biden’s US$1 trillion infrastructure spending plan has helped propel the equity market to record levels in recent times. His administration plans to spend the money on restoring and building roads, broadband infrastructure, rail tracks, and bridges, among others.

Biden proposed his dream project American Job Plan to develop infrastructure and create jobs. We explore here seven infrastructure projects that may benefit from Biden’s grand plan.

Source: Pixabay

Martin Marietta Materials (NYSE:MLM)

Martin Marietta Materials is a US-based infrastructure company that provides cement, asphalt, building material, and ready-mixed concrete. 

Its stock traded at US$361.11 at 11.42 am ET on June 25, up by 0.60% over the previous closing price. It increased by 29.98% YTD. Its market capitalization is US$22.4 billion. Its P/E ratio is 29.62 and forward P/E 1 year is 27.68. The highest 52-week stock price was US$383.71, and the lowest was US$198.81.

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It reported total revenue of US$982.4 million in Q1, 2021, ended on March 31, and it was US$958.2 million in Q1, 2020. It recorded a gross profit of US$174.7 million in Q1, 2021, from US$142.4 million in Q1 last year. Adjusted EBITDA was US$204.4 million in Q1, 2021, compared to US$149 million in Q1, 2020.

Deere & Company (NYSE:DE)

Deere & Company manufactures construction, agriculture material. Its stock traded at US$353.17 at 12.05 pm on June 25, up by 0.70% over the previous closing price. It increased by 31.89% YTD. Its market capitalization is US$110 billion. P/E ratio is 24.32 and forward P/E 1 year is 19.44. The highest 52-week stock price was US$400.34, and the lowest was US$148.19.

It reported a net income of US$1.790 billion,, or US$5.68 per share in Q2, 2021, which ended on May 2, 2021. Net income for Q2, 2020 was US$666 million, or US$2.11 per share. Also, net income for the first six months was US$3.013 billion, or US$9.55 per share.

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Its net sales grew by 30% to US$12.058 billion in Q2 and rose by 25% to US$21.170 billion in the last six months.

Caterpillar, Inc. (NYSE:CAT)

Caterpillar manufactures construction material and mining equipment. Its stock traded at US$218.52 at 12.36 pm ET on June 25, down 0.42% over the previous closing price. It increased by 19.85% YTD. Its market capitalization is US$119.8 billion. P/E ratio is 34.99 and forward P/E 1 year is 22.27. The highest 52-week stock price was US$246.69, and the lowest was US$120.80.

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The company reported net sales and revenue of US$11.9 billion in Q1, 2021, which ended on March 31. It was US$10.6 billion in Q1, 2020. Profit per share was US$2.77 per share in Q1, 2021, compared to US$1.98 in Q1, 2020.

Source: Pixabay

Brookfield Infrastructure Partners LP Limited (NYSE:BIP)

Brookfield Infrastructure is an infrastructure company with operations across the world. Its stock traded at US$53.86 at 12.51 pm ET on June 25, down by 0.09% over the previous closing price. It increased by 8.83% YTD. Its market capitalization is US$15.9 billion. P/E ratio is 103.62 and forward P/E 1 year is 15.63. The highest 52-week stock price was US$56.27, and the lowest was US$38.95.

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It reported a net income of US$190 million, or US$0.27 per share, in Q1, 2021, ended on March 31. It was US$119 million or US$0.13 per share in Q1, 2020.

Freeport-McMoRan, Inc. (NYSE:FCX)

Freeport-McMoRan is a producer of copper that is used in construction.

Its stock traded at US$37.935 at 12.59 pm on June 25, up by 1.15% over the previous closing price. It increased by 39.83% YTD. Its market capitalization is US$55.60 billion. P/E ratio is 31.39 and forward P/E 1 year is 11.66. The highest 52-week stock price was US$46.10, and the lowest was US$10.48.

It reported a net loss of US$718 million, US$0.48 per share, in Q1, 2021, ended on March 31. Total revenue was US$4850 million in Q1, 2021, and that was US$2798 million in Q1, 2020.

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Union Pacific Corporation (NYSE:UNP)

Union Pacific Corporation is a railroad company that operates over 83000 locomotives across various routes in the US. 

Its stock traded at US$221.02 at 1.34 pm ET on June 25, up by 1.17% over the previous closing price. It increased by 8.97% YTD. Its market capitalization is US$146.8 billion. P/E ratio is 28.59, and forward P/E 1 year is 22.90. The highest 52-week stock price was US$231.26, and the lowest was US$162.13.

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It reported a net income of US$1.3 billion, or US$2.00 per diluted share, in Q1, 2021, ended on March 31. They were US$1.5 billion, or US$2.15 per diluted share, YoY.

American Tower Corporation (REIT) (NYSE:AMT)

American Tower Corporation operates broadband and wireless communication infrastructure. Its stock traded at US$265.66 at 2.02 pm on June 25, up by 0.57% over the previous closing price. It increased by 21% YTD. Its market capitalization is US$120.7 billion.

P/E ratio is 61.61 and forward P/E 1 year is 28.84. The highest 52-week stock price was US$272.20, and the lowest was US$197.50.

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It reported total revenue of US$2159 million and a net income of US$652 million in Q1, 2021, which ended on March 31. And adjusted EBITDA was US$1440 million.

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