Industrials

5 Stocks May Be Huge Winners From Infrastructure Spending Coming in 2021

Oshkosh

This off-the-radar stock may hold some of the largest upside potential for investors. Oshkosh Corp. (NYSE: OSK) designs, manufactures and markets specialty vehicles and vehicle bodies worldwide.

The company’s Access Equipment segment likely would benefit the most from an infrastructure build as it provides aerial work platforms and telehandlers for use in various construction, industrial, institutional and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation services; and chassis and service parts sales.

Oshkosh stock investors receive a 1.50% dividend. The $95 Jefferies price target compares with an $89.13 consensus target and the most recent closing price of $80.05 a share.

Terex

Investors looking for a stock that could surprise both this year and in 2021 may want to look here. Terex Corp. (NYSE: TEX) manufactures and sells aerial work platforms, materials processing machinery and cranes worldwide.

Terex has AWP equipment, utility equipment, telehandlers and light towers, as well as related components and replacement parts under the Terex and Genie brands, to construct and maintain industrial, commercial, institutional, and residential buildings and facilities; construction and maintenance of utility and telecommunication lines; tree trimming; certain construction and foundation drilling applications; and for other commercial operations, as well as infrastructure projects.

Jefferies has set a $30 price target. The consensus target is $21.38, but the last Terex trade on Friday was reported at $24.43.

Vulcan Materials

Shares of this top company have been on a roll in 2020 and look to press even higher the rest of the year. Vulcan Materials Corp. (NYSE: VMC) is one of the largest producers of construction aggregates (crushed stone, sand and gravel) in the United States and a significant producer of aggregates-based construction materials (ready-mixed concrete and asphalt mix). Its largest revenue-generating states are Texas, California, Virginia, Georgia, Florida, Tennessee, Arizona, Illinois, North Carolina and Alabama.

Earnings grew 8% last quarter to $1.60 per share, and sales were flat at $1.32 billion. However, those numbers topped Wall Street estimates. Also note that some of the top hedge funds have been adding shares lately, very possibly looking for an infrastructure bounce in 2021.

Investors receive a 0.93% dividend. The Jefferies price objective is $173. The posted consensus price is $147.00, and Vulcan Materials stock ended last week at $146.42 per share.


All five stocks have been acting very well, as Wall Street and investors are anticipating some sort of agreement, as this extremely important project is sorely needed across the country. Again, regardless of who wins the election, this issue looks poised to come up fast in 2021. With earnings for the quarter coming in, it may make sense to buy partial positions here and look for the results.