As the end of 2017 approaches, there are some serious reflections that must be made. The stock market indexes were all up well into the double-digits for percentage gains, and the Dow’s surge beyond 23,000 looks like 25,000 might be in the cards a year from now. Tax reform has taken center stage in Washington, D.C., and an outright repeal of Obamacare has taken a back seat. With the passage of a new budget, many investors, taxpayers and workers are going to wonder what ever happened to those great bipartisan promises from the 2016 election about the billions of dollars to be targeted toward infrastructure investing.
24/7 Wall St. was quick to jump on the infrastructure bandwagon in 2016, outlining some would-be winners regardless of who would have won the 2016 presidential election. Half of the country may disagree or have varying views with the other half of the country about taxes and health care. Still, it goes without saying that our great nation with the best economy in the world has an ailing infrastructure that is holding back growth. The poor grade of the U.S. infrastructure even threatens the economy and the economic competitiveness in the decades ahead.
Many issues have driven infrastructure shares after the 2016 elections. Then in 2017, the market drove continued interest in many of the infrastructure giants. Then came the repairs from hurricane damage in Texas, Louisiana, Florida, Puerto Rico and other locations.
Investors have to consider things in a different light than other groups. Some infrastructure players have had such explosive gains that their shares may look overvalued in late 2017. What should stand out now is that the United States needs more than $800 billion in infrastructure spending soon, and that figure could rise into the trillions if you measure it over the next two or three decades.
Investing in infrastructure has proven to bring some disappointments along with rewards. Two of the post-election winners saw their shares get lots of attention, only to crash and burn despite the great opportunities they could have had. Two such names have been featured at the end of this article.
Here 24/7 Wall St. features several potential infrastructure winners for 2018 and beyond. Most of these companies will have to get some extra business out of governmental and private sector orders ahead. Additional color has been added on each company, and the consensus analyst target prices refer to the mean targets on each company issued by Thomson Reuters.
One special note should be made during earnings season. Some of these companies have reported earnings already, while others have yet to report at the time this was written. These are not meant to be barometer or predictions around how each company will be treated going into and immediately after their respective earnings reports. After all, these are generally implied to be multiyear beneficiaries of infrastructure spending ahead. Promises out of Washington and local governments often fail to materialize, and sometimes governments and industries do not make their needed infrastructure investments until after a disaster forces them to.