The U.S. Senate is inching closer to making a deal on the proposed bipartisan infrastructure bill. President Biden and his fellow Democrats are pushing to close a deal by October 31. If the bill is passed, it should be a significant boost to the infrastructure sector. Given this backdrop, we think quality infrastructure stocks Dover (DOV), Regal Rexnord (NYSE:ZWS) (RRX), and Crane Co. (CR) could be rewarding bets now. Read on.The U.S. infrastructure sector is looking at a potential trillion-dollar federal spending initiative, which will be targeted at upgrading the country’s existing infrastructure base. The “once-in-a-generation” investment proposal should be a significant boost to the overall economy. The planned vote to pass the infrastructure package has been delayed due to intraparty disagreements and a lack of support from some Democrats.
However, President Biden and his Democratic caucus intend to wrap up negotiations and pass the bipartisan infrastructure bill and a larger “Build Back Better” package (an ambitious plan to fund meaningful climate action and achieve a carbon-zero electric grid by 2035, create jobs, cut taxes, and lower costs for working families) by the end of the month. When passed, the bill should stimulate growth in the U.S. infrastructure sector.
The potential infrastructure spending opens an attractive opportunity to invest in quality infrastructure stocks, which could generate substantial returns over an extended term, bolstered by the massive government spending. Given this backdrop, we think Dover Corporation (NYSE:DOV), Regal Rexnord Corporation (RRX), and Crane Co. (CR) could be attractive additions to one’s portfolio, based on their immense growth potential.