5 infrastructure stocks to buy now that Biden's bill has been passed, according to Jefferies

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The big money pot for highways, bridges and other projects means these companies are expected to grow earnings at double-digit rates.

The infrastructure bill that was passed by the House of Representatives late on Nov. 5 will pay off for some companies over several years, according to Jefferies’ Philip Ng.

The infrastructure bill is far less controversial than President Biden’s $2 trillion social-spending plan. Speaker of the House Nancy Pelosi separated the voting on the two bills. In hindsight, this was a wise move, as it garnered bipartisan support. “This is a ~50% increase from the previous five years of funding, which includes a year of the FAST Act extension, with the largest step-up in funding occurring in FY22E, followed by low-single digit annual growth over the remainder of the bill,” Ng wrote.

Sales-growth estimates Here are the five building products stocks Ng recommended, with expected compound annual growth rates for sales through 2023 and 2024, based on estimates among analysts polled by FactSet: The first four companies on the list all provide various materials used in heavy construction. WillScot Mobile Mini Holdings Corp. WSC, +3.72% provides temporary storage facilities used in construction and other industries.

Expected earnings growth As companies’ sales are boosted, their profit margins can improve more quickly. The group is expected to achieve high double-digit growth rates for earnings-per-share:

 

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Yay biden and trump

thanks

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