Infrastructure

8 Infrastructure Giants Could Continue to Bring Upside for Investors

KBR

For years this Houston-based company was considered as a military facility-support and disaster-support company. That means it could win if additional military deployments become necessary, but recent natural disasters and storms have helped its shares. The Government and Infrastructure business of KBR Inc. (NYSE: KBR) offers services to civilian authorities and private clients outside of the military, and from an outsider’s view it still seems that KBR can mobilize hundreds and even thousands of workers for disaster assistance faster than any other company.

This was a $15 stock just ahead of Hurricane Harvey, and shares were up at $18.40 on last look. They were at about $15.50 when we featured the stock in March, and the 52-week range is $13.17 to $19.39. KBR’s consensus price target was $19.23 at the start of March, and it is $19.25 now. The market cap is almost $2.6 billion.

Tetra Tech

California-based infrastructure player Tetra Tech Inc. (NASDAQ: TTEK) has seen shares rise in 2016 and again in 2017. Its two areas of operations are Water, Environment and Infrastructure, and Resource Management and Energy. Tetra Tech is still considered to be one of the great companies when it comes to consulting, engineering, construction, technical services and project management in its two areas of operations. It also keeps growing its headcount over time and has been a hurricane-recovery winner.

Tetra Tech shares were trading at $41.50 in March, and the stock was under $41 in the days before Hurricane Harvey. Now that Puerto Rico has been trashed along with much of the Caribbean, and after Hurricane Irma blasted Florida, its shares are close to $49.75. Tetra Tech has a 52-week range of $36.96 to $50.00. Its consensus price target was $49.00 back in March, but that target is now up above $51, and the company now has a $2.8 billion market cap.

United Rentals

Not only has United Rentals Inc. (NYSE: URI) been a stellar performer since the start of 2017, but going back to last year’s election. The company is involved in oil and gas equipment, as well as all sorts of equipment for building projects from residential to commercial to massive infrastructure projects. It has grown exponentially since a private equity company tried unsuccessfully to acquire the company more than a decade ago.

United Rentals was trading at $133.40 when we featured it at the start of March, and its stock is now at $141.75. The market cap is $12 billion, and shares have traded in a 52-week range of $70.58 to $147.60. The stock’s consensus analyst price target was down at $123.86 at the start of March, but it was most recently seen up at $144.23.

On the Other Hand

24/7 Wall St. does not only highlight the positive issues. There have been some serious disappointments along the way. Politics and the surrounding push and pull policies have been hard to stomach, but there also have been some disappointing companies when it comes to performance.

One such disappointment has been Chicago Bridge & Iron Co. N.V. (NYSE: CBI). This company already had undergone much change since 2013 after its Shaw purchase, but 2017 has been rather harsh on it. CB&I was last seen trading at $16.75 — down more than 50% from its 52-week high, and almost every analyst has thrown in the towel on this company.

Another disappointment was United States Steel Corp. (NYSE: X). This stock was initially treated as a huge Trump infrastructure winner after the election, rising to almost $40 at the start of March from just $20 before the election. After poor earnings earlier this year, now U.S. Steel’s stock was last seen down at $28.15, and analysts see very little upside now, even at lower share prices. The company is worth just $4.9 billion, and the 52-week trading range of $17.05 to $41.83 should outline just how boom-bust investors can treat the company.