Every four years, the American Society of Civil Engineers issues a report card on the condition of the nation’s infrastructure. In 2013, the country received a sad D+ – something that then-candidate Donald Trump highlighted during his presidential campaign. The recently released 2017 report card is no better – another D+.
However, as president, Trump has promised up to $1 trillion in new spending to spruce up the nation’s crumbling infrastructure, a prospect that should encourage investors who seek exposure to this niche. (See: How Big Investors Will Profit From Trump’s Infrastructure Bonanza.)
It is important to note that infrastructure is an extremely broad category, encompassing transportation, communications, water and electricity – representing hundreds, if not thousands, of equities. Selection is essential to success, since not all “infrastructure” stocks will take off under the proposed spending. (See: Build Your Portfolio With Infrastructure Investments.)
That being said, well-diversified companies positioned to handle major infrastructure projects should do well over the medium to long term, especially if the administration follows through with its spending commitment. Here’s a look at four of the most promising infrastructure stocks. All figures are accurate as of November 10, 2017.
AECOM’s business is designing, financing, building and operating infrastructure assets for federal and state governments and businesses. With a market cap of just under $5 billion and fiscal 2016 annual revenue of $17.47 billion, the company is well positioned to handle a large influx of new government projects.
AECOM recently merged with rival URS to enhance its focus on the energy and transportation sectors, areas that are sure to see new spending under the Trump administration if the president can pass his infrastructure package. In fact, AECOM stock surged sharply on Trump’s victory, rising from $27.61 on Nov. 8, 2016, to $37.54 a week later, reaching a high…