Connect with us

Hi, what are you looking for?

Stock

2 Infrastructure Stocks to Buy in July, 2 to Avoid

Stock Markets9 minutes ago (Jul 01, 2021 11:02AM ET)

(C) Reuters. 2 Infrastructure Stocks to Buy in July, 2 to Avoid

With President Biden having purportedly reached an agreement with a bipartisan group of senators on an infrastructure bill, and with the economy’s reopening driving the infrastructure sector’s revival, we believe it is wise to invest in fundamentally strong stocks in the sector Eaton (NYSE:ETN) and Oshkosh (NYSE:OSK). Conversely, investors should avoid Vulcan (VMC) and Martin Marietta Materials (NYSE:MLM), which are trading at sky-high valuations that we don’t think are justified by their near-term growth prospects. Let’s examine these names.Because traditional infrastructure like roads, bridges and ports need regular maintenance and upgrades, it’s no surprise that the infrastructure sector has been enjoying renewed investor attention with the economy’s reopening. This is evidenced by the Global X U.S. Infrastructure Development ETF’s (PAVE) and iShares U.S. Infrastructure ETF’s (IFRA) 21.4% and 17.7% respective returns year-to-date.

Furthermore, because President Biden recently reached an agreement with a bipartisan group of senators on a $1.2 trillion infrastructure plan, the industry is expected to be the recipient of even more investor attention this month and beyond. However, not all stocks in the infrastructure space are solid bets currently.

Eaton Corporation plc (ETN) and Oshkosh Corporation (OSK) are two fundamentally sound stocks in the infrastructure space that we think have the potential to capitalize on the industry tailwinds. So, it could be wise to bet on them now. Conversely, we believe investors should steer clear of the stocks of Vulcan Materials Company (NYSE:VMC) and Martin Marietta Materials, Inc. (MLM) given their lofty valuations, which look untenable considering the company’s bleak near-term growth prospects.

Continue reading on StockNews

2 Infrastructure Stocks to Buy in July, 2 to Avoid

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock

Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...

Tech

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: Wisegazette.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved