2 Under The Radar Infrastructure Stocks To Buy Now

low-angle photography of concrete bridge

Source: Unsplash 

As the global economy gradually reopens, infrastructure-related activities—such as building and repairing bridges, roads, and tunnels—are expected to increase markedly. Investors are taking note of this and increasingly betting on the infrastructure space. This is evident from iShares U.S. Infrastructure ETF’s (IFRA) 16.9% returns over the past three months compared to SPDR S&P 500 ETF Trust (SPY) 8.8% gains.

The infrastructure sector is also expected to receive a major boost from President Joe Biden’s proposed $2 trillion-plus infrastructure spending.

So, we think it wise to bet on Federal Signal Corporation (FSS - Get Rating) and Columbus McKinnon Corporation (CMCO - Get Rating). These companies are not necessarily making headlines, but we expect them to gain significantly in the coming months by leveraging their strong business models.

Federal Signal Corporation (FSS - Get Rating)

FSS designs manufacture and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers internationally. It operates through two segments: Its Environmental Solutions Group, and Safety and Security Systems Group. It offers a wide range of products, including street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, road-marking and line-removal equipment, trailers, and industrial signaling equipment.

On February 18, FSS completed the acquisition of OSW Equipment & Repair, LLC., which also includes the operations of Northend Truck Equipment. This should help the company expand its geographic market reach.

FSS’ net sales for the fourth quarter, ended December 31, 2020, came in at $294.80 million compared to $279.80 in the third quarter (ended September 30, 2020). Its $75,90 million gross profit for the quarter compares to $72.60 million in the previous quarter. Its $0.44 adjusted EPS surpassed the consensus estimate by 7.3%. Also,  its net cash generated from operations came in at $57 million, up 27% year-over-year.

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