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Best Infrastructure Stocks for Value and Growth

Larry Davidson - April 16, 2020

infrastructure stocks

Infrastructure has been a hot topic on the stage of American politics over the past few years, and it’s one of the few issues that’s earned bipartisan support. The United States desperately needs to make a major investment in its infrastructure, and Washington knows it. Much of the nation’s infrastructure is over 50 years old and it will cost a lot of money to get everything back up to standards. An infrastructure spending bill is expected to pass through congress some time in the near future, and it could create a major opportunity for infrastructure stocks that manage to land government contracts.

The coronavirus outbreak slammed the brakes on much of the legislative agenda in 2020, but the country still needs to revive its crumbling infrastructure. Eventually, lawmakers must address the infrastructure issues and, when they do, certain infrastructure stocks stand to benefit tremendously. These companies are some of the top players in the sector

infrastructure stocks

American Water Works (AWK)

American Water Works is a public water and utility company operating in the United States and Canada. Founded in 1886, the company is the largest investor-owned water and wastewater services company in the U.S. The company’s large customer base and stable business model make it an attractive investment for many value investors. 

The company has continued with some expansion operations despite the pandemic. In April, American Water Works announced that its subsidiary, Illinois American Water, would continue with planned infrastructure projects. Illinois American Water currently provides water service to 1.3 million people and the firm wants to grow its customer base even further.

Pennsylvania American Water is another AWK subsidiary with expansion plans. It’s currently investing $14.2 million in three infrastructure projects across its service areas. The initiative will replace and upgrade water lines and other assets.

American Water Works is placing itself strategically to continue recording growth despite the current lockdown of most parts of the country. American Water Works’ stock has been performing well so far, and it could remain one of the top infrastructure stocks to keep an eye on this year.

Brookfield Infrastructure Partners (BIP)

Company management is confident that coronavirus will have a minimal impact on its business. Brookfield doesn’t operate in China and it sources most of its supplies from other parts of the world. All and all, Brookfield Infrastructure Partners says it has a positive outlook on for 2020.

This company is one of the largest diversified infrastructure firms on the planet. It offers services both domestically and abroad, and its asset portfolio includes a wide range of infrastructure assets. Brookfield could be a bastion of stability in the near future because its businesses are largely recession-resistant. This could be an interesting large-cap pick for infrastructure investors.

concrete stocks

NV5 Global (NVEE)

NV5 Global is a Florida-based leading provider of technical engineering and consulting solutions. The firm works with both private and public sector organizations to design and build large-scale infrastructure projects. Shares of NV5 performed well since the outbreak began and the performance could carry through an economic downturn.  

In March, NV5 Global was awarded two new contracts valued at $8 million. The firm will design two liquefied natural gas (LNG) projects for utility providers in the eastern U.S. One contract is for a $6 million LNG facility expansion, and the other is a $2 million project that will provide a boil-off compressor for another LNG facility.

NV5’s team of industrial hygenist is also helping clients confront the coronavirus threat. The company’s team of experts is working with various organizations to help them develop better health and safety protocols in order to mitigate the risk of a COVID-19 outbreak.

Vulcan Materials Company (VMC)

Vulcan is an Alabama-based company that principally produces, distributes, and sells building materials. The firm primarily focuses on construction aggregates, asphalt mix, and concrete. Vulcan is a major supplier of concrete for government projects, including highways, airports, and government buildings.

In March, Vulcan Materials elected a new director to its board. George Willis joins the company’s board of directors and will serve on the Audit and Safety, Health, and Environmental Affairs Committees of the Board.

Willis has 35 years worth of experience and expertise in the logistics industry. He formerly served as an operations director at UPS. The company hopes Willis will be a valuable addition to the executive team, and investors seem to agree. The stock performed well after the company announced the hire. 

Best Infrastructure Stocks: Closing Thoughts

Global demand for infrastructure is expected to increase over the next decade. A new middle class is emerging in developing economies and it could lead more people to move to urban areas. They will need new infrastructure to support them, so the outlook for infrastructure demand remains strong.

Infrastructure stocks are highly sensitive to politics and global economics, so you should pay attention to the news if you want to invest in this sector. The Stock Dork Cheat Sheet can keep you informed will all the latest stock market news, plus weekly watchlist, hot stock alerts, and much more. Click here to sign up today.

Larry D. is one of the most experienced writers at the Dork. His expert insights into the individual stocks have made small fortunes for some of his readers and profitable trades for many more. Best known for his work with under-the-radar growth stocks, Larry has been picking winners for over 30 years.

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