Biden’s sprawling efforts to overhaul and revamp the nation’s infrastructure position infrastructure stocks to benefit greatly. Since small-cap stocks are typically more responsive to macroeconomic improvements, these stocks in the infrastructure space are well positioned to soar in the upcoming months. That’s why Alamo Group (NYSE:ALG), EnPro Industries (NPO), and Columbus McKinnon Corporation (CMCO) could be solid bets now.Last month, President Joe Biden unveiled a $2 trillion infrastructure and climate plan to rehabilitate the nation’s fraying infrastructure, reshape its economy, and combat climate change. In a speech at a union hall in Pittsburgh, Biden said, “It’s not a plan that tinkers around the edges, it’s a once in a generation investment in America.”
Naming it the American Jobs Plan, he proposed massive investments into modernizing transportation infrastructure, repairing “10,000 bridges,” replacing 100% of the nation's lead pipes, and a long list of other projects. Once approved, this plan is expected to give a huge boost to infrastructure companies that can contribute immensely toward rebuilding the nation.
Economic recoveries usually drive the performance of small-cap stocks because they are more sensitive to increases in investments and federal spending. So, we believe it would be wise to bet on small-cap infrastructure stocks such as Alamo Group Inc . (ALG), EnPro Industries, Inc. (NPO), and Columbus McKinnon Corporation. (CMCO) now.