With the passage of he much anticipated infrastructure bill, the economy should get a boost and the markets get a new catalyst for a year end rally. The bill should also boost the prospects of stocks such as Reliance Steel & Aluminum Co. (RS), Olin Corporation (NYSE:OLN), and EMCOR Group Inc. (EME).On Nov 15th, President Biden signed a bipartisan infrastructure bill for $550 billion, in addition to previously approved funds of $450 billion for five years. The goal of the bill is to upgrade our nation's infrastructure. An infrastructure bill has been talked about for decades, and now that one has passed, there will be many winners.
The bill is expected to provide billions toward roads and bridges as well as upgrade freight and passenger rails. It should provide a boost to the U.S. economy and will serve as a new catalyst for the markets. This is especially true for industries such as materials, industrials, telecommunications, and utilities. Investors have been anticipating the bill based on the U.S. Infrastructure Development ETF's (PAVE) 35% gain this year.
But there is plenty of upside left as companies can now get to work. As revenue increases, this will be reflected in future earnings reports. To find stocks that are likely to benefit from the bill and see gains in the months ahead, I ran a search in our POWR Ratings database. Based on that search, Reliance Steel & Aluminum Co. (RS), Olin Corporation (OLN), and EMCOR Group Inc. (EME) look like great options.