In this article, we discuss the 10 best infrastructure stocks according to Reddit.
Ever since United States President Joe Biden announced the $2 trillion plan to upgrade American airports, roads, bridges, and communications systems back in April, the stocks of infrastructure companies have been soaring. Lawmakers approved the plan last month, further boosting the construction and related industries that had a torrid 2020 due to the coronavirus lockdowns. The plan was passed in the Senate alongside the $3.5 trillion budget proposal aimed at jumpstarting American manufacturing.
Since the plan, dubbed the American Jobs Plan, envisions government spending of $650 billion for infrastructure and $620 billion for transportation, companies that work in these sectors can expect a windfall over the next few months as new contracts from Washington are rolled out. The massive spending has even made waves among retail investors on social media, who often use internet platforms like Reddit to discuss their stocks ideas. This is extraordinary since these retail investors often prefer investing in high growth sectors like technology.
Some of the stocks presently popular on Reddit include Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), among others. However, over the past few weeks, infrastructure stocks have also been gaining traction among Redditors. Some of these stocks are discussed in detail below. Some of the trends shaping the industry include shifts in capital, supply chain disruptions due to COVID-19, and environmental policies.
According to a report by professional services firm PwC, total global requirement for infrastructure investment is estimated at close to $4 trillion annually. The report also reveals that the gap between infrastructure capital demand and supply is widening. The report highlights how the pandemic has accelerated changes within the industry, like intensifying focus on operational resilience, the affordability of infrastructure, the deployment of new technologies, and the need for sustainability.
It is noteworthy that technology has permeated every aspect of our lives, including sectors like infrastructure and finance. Tech-enabled disruption has been chipping away at traditional power players in the market over the past few years but the virus crisis has accelerated this process by decades. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Denys Nevozhai on Unsplash
Our Methodology
With this context in mind, here is our list of the 10 best infrastructure stocks according to Reddit. They were picked keeping in mind the hype around the companies on finance-related Reddit forums like “WallStreetBets,” “Stocks,” “Options,” “Investing” and more.
The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey. The list is compiled according to the hedge fund holders in each stock.
The analyst ratings of the companies and their basic business fundamentals are also discussed to provide readers with some more context for their investment decisions.
Best Infrastructure Stocks According to Reddit
10. Harsco Corporation (NYSE: HSC)
Number of Hedge Fund Holders: 11
Harsco Corporation (NYSE: HSC) is placed tenth on our list of 10 best infrastructure stocks according to Reddit. The company provides environmental solutions for industrial and specialty waste streams. It is headquartered in Pennsylvania.
On May 7, investment advisory Argus upgraded Harsco Corporation (NYSE: HSC) stock to Buy from Hold with a price target of $26, noting that the firm had led a turnaround before the pandemic with transformative initiatives.
At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $476 million in Harsco Corporation (NYSE: HSC), up from 10 in the preceding quarter worth $158 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Rubric Capital Management is a leading shareholder in Harsco Corporation (NYSE: HSC) with 889,708 shares worth more than $18 million.
Just like Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), Harsco Corporation (NYSE: HSC) is also popular among retail investors on Reddit.
9. Brookfield Infrastructure Partners L.P. (NYSE: BIP)
Number of Hedge Fund Holders: 16
Brookfield Infrastructure Partners L.P. (NYSE: BIP) is ranked ninth on our list of 10 best infrastructure stocks according to Reddit. The company has interests in the utilities, transport, and data businesses and is headquartered in Bermuda.
On August 31, investment advisory Citi maintained a Neutral rating on Brookfield Infrastructure Partners L.P. (NYSE: BIP) stock and raised the price target to $57 from $54, noting that overall outlook on the firm had improved as the economy reopens.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Brookfield Infrastructure Partners L.P. (NYSE: BIP) with 416,105 shares worth more than $23 million.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $71 million in Brookfield Infrastructure Partners L.P. (NYSE: BIP), up from 12 in the preceding quarter worth $47 million.
Alongside Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), Brookfield Infrastructure Partners L.P. (NYSE: BIP) is also attracting retail investor interest on Reddit.
8. Dycom Industries, Inc. (NYSE: DY)
Number of Hedge Fund Holders: 18
Dycom Industries, Inc. (NYSE: DY) is a Florida-based company that provides specialty contracting services. It is placed eighth on our list of 10 best infrastructure stocks according to Reddit.
In April, investment advisory Craig-Hallum reiterated a Buy rating on Dycom Industries, Inc. (NYSE: DY) stock and raised the price target to $110 from $72, appreciating the quarterly earnings report of the company.
At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $209 million in Dycom Industries, Inc. (NYSE: DY), down from 19 in the previous quarter worth $277 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Peconic Partners LLC is a leading shareholder in Dycom Industries, Inc. (NYSE: DY) with 973,384 shares worth more than $72 million.
In addition to Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), Dycom Industries, Inc. (NYSE: DY) is one of the trending stocks on Reddit.
7. Terex Corporation (NYSE: TEX)
Number of Hedge Fund Holders: 27
Terex Corporation (NYSE: TEX) is a Connecticut-based company that makes and sells aerial work platforms and materials processing machinery. It is ranked seventh on our list of 10 best infrastructure stocks according to Reddit.
On August 2, investment advisory Credit Suisse maintained a Neutral rating on Terex Corporation (NYSE: TEX) stock and raised the price target to $58 from $52, noting that the firm exceeded market expectations on earnings for the second quarter.
At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $470 million in Terex Corporation (NYSE: TEX), down from 31 in the previous quarter worth $501 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Terex Corporation (NYSE: TEX) with 3.3 million shares worth more than $159 million.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA) are some of the popular stocks on Reddit, just like Terex Corporation (NYSE: TEX).
6. Oshkosh Corporation (NYSE: OSK)
Number of Hedge Fund Holders: 28
Oshkosh Corporation (NYSE: OSK) is placed sixth on our list of 10 best infrastructure stocks according to Reddit. The company makes and sells products used for construction, industrial, institutional, and general maintenance applications. It operates from Wisconsin.
The stock is set to gain from Biden’s infrastructure plan because..
On May 12, investment advisory Evercore maintained an Outperform rating on Oshkosh Corporation (NYSE: OSK) stock and raised the price target to $166 from $133, underlining that the machinery sector was highly positively correlated with commodity prices.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Oshkosh Corporation (NYSE: OSK) with 755,940 shares worth more than $92 million.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $360 million in Oshkosh Corporation (NYSE: OSK), up from 26 in the previous quarter worth $416 million.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA) are some of the top stocks Redditors recommend buying, alongside Oshkosh Corporation (NYSE: OSK).
5. Colfax Corporation (NYSE: CFX)
Number of Hedge Fund Holders: 31
Colfax Corporation (NYSE: CFX) is ranked fifth on our list of 10 best infrastructure stocks according to Reddit. The company has interests in a wide array of businesses related to medical consumable products and equipment. It is headquartered in Delaware.
On August 16, investment advisory Argus reiterated a Buy rating on Colfax Corporation (NYSE: CFX) stock and raised the price target to $56 from $50, underlining that the firm was a “well-managed mid-cap company”.
Out of the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Colfax Corporation (NYSE: CFX) with 4.5 million shares worth more than $206 million.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Colfax Corporation (NYSE: CFX) was one of them. Here is what the fund said:
“Colfax Corporation is a global manufacturing company providing orthopedic and fabrication technology products and services. Its orthopedic products are focused primarily on injury prevention and recovery, including athletic braces, hot and cold therapy, bone growth stimulators and therapeutic shoes. The fabrication technology division is a leader in welding and cutting solutions such as filler metals, equipment, automation/digital solutions and gas equipment. Management recently reconstructed Colfax’s portfolio of businesses—acquired the orthopedic/medical technology business in 2019, divested its air and handling equipment and fluid handling businesses in 2019 and 2017, respectively. We believe the remaining portfolio will benefit from a near-term rebound in elective medical procedures and welding as the broader economy reopens. We also believe additional med tech acquisitions, margin improvements and market share gains in the fabrication technology division are additional long-term profit cycle drivers. With shares trading at an attractive valuation, we initiated a GardenSM position.”
4. AECOM (NYSE: ACM)
Number of Hedge Fund Holders: 32
AECOM (NYSE: ACM) is a California-based firm that provides professional services to the construction industry. It is placed fourth on our list of 10 best infrastructure stocks according to Reddit.
On May 12, investment advisory Credit Suisse maintained a Neutral rating on AECOM (NYSE: ACM) stock and raised the price target to $67 from $59, appreciating the strong earnings results posted by the company for the second quarter.
At the end of the second quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $791 million in AECOM (NYSE: ACM), down from 38 the preceding quarter worth $1 billion.
3. Quanta Services, Inc. (NYSE: PWR)
Number of Hedge Fund Holders: 40
Quanta Services, Inc. (NYSE: PWR) is a Texas-based company that markets specialty contracting services. It is ranked third on our list of 10 best infrastructure stocks according to Reddit.
On September 8, investment advisory Credit Suisse maintained an Outperform rating on Quanta Services, Inc. (NYSE: PWR) stock and raised the price target to $137 from $118. Jamie Cook, an analyst at the advisory, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Peconic Partners LLC is a leading shareholder in Quanta Services, Inc. (NYSE: PWR) with 5.6 million shares worth more than $513 million.
2. Cleveland-Cliffs Inc. (NYSE: CLF)
Number of Hedge Fund Holders: 44
Cleveland-Cliffs Inc. (NYSE: CLF) is placed second on our list of 10 best infrastructure stocks according to Reddit. The company makes and sells steel products and is headquartered in Ohio.
On August 11, investment advisory Morgan Stanley initiated coverage of Cleveland-Cliffs Inc. (NYSE: CLF) stock with an Equal Weight rating and a price target of $26, underlining that the stock had outperformed peers and the constructive outlook seemed well priced.
At the end of the second quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Cleveland-Cliffs Inc. (NYSE: CLF), up from 36 in the preceding quarter worth $968 million.
1. Carrier Global Corporation (NYSE: CARR)
Number of Hedge Fund Holders: 46
Carrier Global Corporation (NYSE: CARR) is ranked first on our list of 10 best infrastructure stocks according to Reddit. The company provides heating, ventilating, refrigeration, fire, security, and building automation services. It operates from Florida.
On August 13, investment advisory Citi reinstated coverage of Carrier Global Corporation (NYSE: CARR) stock with a Neutral rating and a price target of $58, noting the “strong” second quarter results and improved guidance numbers posted by the company earlier.
Out of the hedge funds being tracked by Insider Monkey, Wyoming-based firm Southport Management is a leading shareholder in Carrier Global Corporation (NYSE: CARR) with 25,000 shares worth more than $1.2 million.
In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Carrier Global Corporation (NYSE: CARR) was one of them. Here is what the fund said:
“Resilient cyclicals such as Carrier Global have since rebounded, while at first negatively impacted by the recession, as U.S. GDP fell by 9% year-over-year in the second quarter of 2020, and some even have benefited from certain aspects of the pandemic world. Carrier, the leader in heating and ventilation systems, for example, has seen demand for home and workplace air filters rise.”
You can also take a peek at 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Stocks to Buy for the Next Ten Years.
Follow Insider Monkey on Twitter
Suggested Articles:
- Stanley Druckenmiller is Dumping These 10 Stocks
- 10 Best EV Startups to Watch
- 15 Most Valuable Aerospace Companies in the World
Disclosure. None. 10 Best Infrastructure Stocks According to Reddit is originally published on Insider Monkey.
