Tuesday’s midterm elections failed to deliver the “Blue Wave” the media had hyped for months.
U.S. President Donald Trump has long advocated for infrastructure spending of $1 trillion to $1.5 trillion. It’s one of the few issues Democrats agree with him on, making it a potentially massive catalyst for the construction industry.
That’s why shares of construction stocks are moving higher today. Shares of Caterpillar Inc. (NYSE: CAT) climbed 3% today in the wake of Democrats’ victory in the House of Representatives.
In an odd echo of bipartisan spirit, Hoyer’s statements mirrored those of Vice President Mike Pence, who said before the election that infrastructure was a top priority for the Trump administration right after the new Congress is sworn in.
As we’ve seen with Caterpillar, industrial stocks are already taking off on speculations about the future of U.S. infrastructure.
Tutor Perini Corp. (NYSE: TPC) is a construction powerhouse with $8 billion in backlog contracts waiting to be completed.
The firm currently has projects to expand Newark Liberty International Airport, build a light rail system in Minneapolis, and help with the high-speed rail system in California.
And it’s trading at a bargain price.
This stock opened on Wednesday morning with a price to tangible book value under 0.9.
That means you could liquidate the company, and it would be worth more than the market capitalization of the firm.
The company has a Pitroiski Score of 7, signally strong cash flow that will likely improve if and when the federal and state governments begin turning on the infrastructure taps.
The Tutor Perini Corp. stock price opened today at $18.36 per share.
However, analysts from DA Davidson forecast shares to rise to $29, an 88% gain from today’s share price.
That might be on the low side too.
Ignore the noise in Washington and make money from this top infrastructure stock.