After the Election, 7 Major Infrastructure Winners for 2017 and Beyond

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Chicago Bridge & Iron

Chicago Bridge & Iron Co. N.V. (NYSE: CBI) went through a transformation after being covered in 2013. While technically a Dutch company, it has many Americans in the top ranks and throughout its ranks.

CB&I spent about $3 billion to acquire the Shaw Group, and its former 18,000 employees is now over 40,000 as a result. It also has over 80 U.S. offices. Its prior core areas included oil and gas infrastructure, steel plate structures and plant manufacturing. Shaw is a vertically integrated player in energy, chemicals, environmental, infrastructure and emergency response industries.

CB&I’s market cap was about $4.7 billion in 2013, but its energy influence weighed against it over the past two years and that market value is down to $3.2 billion now. The combined annual sales in 2013 were projected to be almost $12 billion back then, and that figure is expected to be about $11 billion in 2016. CB&I may have a dependence on energy infrastructure, but it can greatly dial up its efforts and win under an infrastructure theme.

CB&I shares closed down 1.5% at $30.57 on Friday, but Thursday’s closing price of $31.05 was up 10.5% since Tuesday’s close of $28.09. CB&I has a 52-week range of $26.12 to $43.17 and a consensus price target of $36.00, with a current dividend yield of 0.9%.

Fluor

Based in Irving, Texas, Fluor Corp. (NYSE: FLR) provides engineering, procurement, construction, maintenance and project management services to government and private industry. Its five groups are Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power. It had some 43,000 employees in 2013, but that is down to almost 39,000 on last look.

Fluor has a market value of almost $7 billion now, less than the $10.4 billion in 2013. It was projected to generate close to $29.5 billion in sales in 2013, and that is now closer to $19 billion.

Fluor shares closed down 2.5 % at $49.14 on Friday, but the $50.40 close on Thursday was actually up 13% since Tuesday’s pre-election close. Fluor has a 52-week range of $39.48 to $55.69, and the consensus price target is $49.26. Fluor pays a dividend yield of 1.7% to its shareholders.

Granite Construction

This civil engineering player in infrastructure projects works on streets and roads, highways and bridges, sites and underground, and power-related facilities, utilities and other large projects. Granite Construction Inc. (NYSE: GVA) also mines and processes aggregates and sells construction materials for operations of infrastructure and heavy construction. The company operates through Construction, Large Project Construction and Construction Materials segments.

While Granite Construction was smaller than most major players in 2013, its market cap has risen from $1.4 billion early in 2013 to $2.3 billion in late 2016. Revenues were less than $2.3 billion in 2013 and are expected to rise to $2.5 billion in 2016 and over $2.8 billion in 2017.

Granite Construction shares closed up 4.6% at $57.53 on Friday, but it was up right at 20% since Tuesday’s close. The 52-week range is $35.69 to $57.69, and the consensus price target is $56.75. The dividend yield is 0.9%.