Huge federal spending should drive the infrastructure industry’s growth for the foreseeable future. Therefore, we think it could now be wise to scoop up the shares of quality infrastructure stocks Eaton (NYSE:ETN), Tetra Tech (NASDAQ:TTEK), CEMEX (CX), and United States Steel (NYSE:X). Read on.The COVID-19 pandemic highlighted the importance of infrastructure worldwide. Governments are now making huge investments to revamp their countries’ infrastructure. Wall Street analysts believe that President Biden’s nearly $2 trillion Build Back Better plan—on top of the $1 trillion-plus infrastructure spending bill he signed this fall—will significantly boost the infrastructure sector’s growth. Economists at Goldman Sachs (NYSE:GS), Evercore ISI, Morgan Stanley (NYSE:MS), and J.P. Morgan believe there are signs of a massive forthcoming boom in the overall infrastructure segment.
Investor interest in the infrastructure industry is evident in the Global X U.S. Infrastructure Development ETF’s (PAVE) 7% gains over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 4.2% returns. And infrastructure-related construction activities continue to surge with the reopening of the economy. According to a Research and Markets report, the global infrastructure construction industry is expected to witness a sharp 6.2% increase in output in 2021.
Therefore, we think it could be wise to bet now on quality infrastructure stocks Eaton Corporation plc (ETN), Tetra Tech, Inc. (TTEK), CEMEX, S.A.B. de C.V. (CX), and United States Steel Corporation (X).