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.