3 Sectors That Would Benefit From Another Stimulus Bill
Congress is currently discussing another stimulus package. This one would not be like the first package which was loaded with tax cuts and spending on healthcare, information technology, and education. This package would go directly to improving our bridges, highways, dams, and tunnels. If Congress does pass a $50 billion dollar infrastructure stimulus bill, these are the sectors that would benefit the most.
Chicago Bridge & Iron (CBI), Jacobs Engineering (JEG), Foster Wheeler (FWLT), and Manitowoc (MTW) are a few of my favorite companies in this sector. These companies have their hands in every stage of the construction and engineering process. Both firms would benefit substantially from an infrastructure stimulus package.
Materials Manufacturer Stocks
Vulcan Materials(VMC), Eagles Materials (EXP), Martin Marietta (MLM), and Astex Industries (ASTE) all produce the materials that are used for industrial and commercial construction. These materials are used to cementing and asphalting roads and highways.
Metals Producer Stocks
The federal government may issue the money but they can’t complete their projects without basic materials. Steel will be needed from the nation’s largest steel producers. That includes companies like U.S. Steel (X), AK Steel (AKS), Nuecor (NUE) and Mittal Steel (MT).
The first stimulus plan should have had more spending in the infrastructure arena. Although this plan is only for $50 billion dollars, it should help tp boost the revenues of many of these companies. It may be abit late but I suppose that something is better than nothing at all.
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