Wall Street Favors These 12 Stocks Ahead Of Infrastructure Deal

Mandatory Credit: Photo by Pavlo Gonchar/SOPA Images/Shutterstock (12205310a)In this photo illustration a Quanta Services logo is seen on a smartphone and a pc screen.
Pavlo Gonchar/SOPA Images/Shutterstock / Pavlo Gonchar/SOPA Images/Shutterstock

As legislators inch toward a historic deal on a bipartisan infrastructure bill, Wall Street is picking certain stocks they believe will increase in value should Washington move forward with the deal.

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The names below are members of the iShares U.S. Infrastructure ETF, which edged higher last week amid the news of the deal by lawmakers. The list is compiled by CNBC and includes those with at least a 20% upside potential and identified names that had at least a 70% buy rating. That means that 70 percent of analysts agree it’s a good idea to buy:

  • Builders FirstSource, Inc (BLDR)
  • Sunnova Energy International Inc (NOVA)
  • Primoris Services Corporation (PRIM)
  • Olin Corporation (OLN)
  • Harsco Corporation (HSC)
  • Avient Corporation (AVNT)
  • MasTec, Inc (MTZ)
  • Vistra Corporation (VST)
  • Steel Dynamics, Inc (STLD)
  • Oshkosh Corporation (OSK)
  • AECOM (ACM)
  • Quanta Services (PWR)

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JP Morgan analyst Ichael Glick takes a long view of the steel industry in general, reports Nasdaq. He stated that “the U.S. is seeing accelerating demand across nearly all key steel-consuming sectors (construction, autos, machinery), which seems likely to continue as the country emerges from the pandemic, with the rest of the world, notably Europe, nearing a similar resurgence.” One of his picks is Steel Dynamics, which is the third-largest producer of carbon steel products in the United States. Analysts believe the stock could run up about 24% in the next 12 months.

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Quanta Services, a top construction and energy pick by Credit Suisse, had 70.6% of the 15 Wall Street analysts included in the list say to buy the stock, CNBC added. Contributing to the high buy rating, Quanta is on track to perform well if the infrastructure deal goes through, as it has added new spending verticals in utility grid modernization, power grid hardening, renewables integration, electric vehicles and 5G.

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The bill is expected to go through to a final vote in the coming weeks. The “Bipartisan Infrastructure Framework,” a pared-down version of Biden’s larger more ambitious “American Jobs Plan” which was first proposed, is a bipartisan deal largely focused on infrastructure and modernization improvements to the country’s ports, railways, bridges and internet. The deal would inject around 550 billion dollars into the nation’s infrastructure systems, teeing up infrastructure stocks like steel, energy, telecom and carbon for major upside potential.

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Last updated: August 3, 2021

About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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