A handful of construction and electric vehicle companies rose Monday – analysts predict further gains – after the House of Representatives passed its $ 1 trillion infrastructure bill over the weekend.
A variety of Wall Street analysts from firms like Jefferies, Baird, Stifel, and Evercore ISI identified several companies in particular that are likely to see significant earnings growth and stock prices surge.
According to analysts, major beneficiaries of the bill include construction equipment manufacturers such as Caterpillar and Deere, whose stocks are both up over 3%.
Building materials manufacturers such as Vulcan Materials and Martin Marietta Materials will also be adjusted to “strong price dynamics” thanks to the bill, according to Jefferies analysts, who are predicting double-digit earnings growth rates.
For example, shares in asphalt maker Astec Industries rose nearly 14% on Monday, while steelmakers Nucor and US Steel both rose around 3% or more.
The Infrastructure Act also provides billions for the nation’s first network of chargers for electric vehicles, as well as electric school buses and ferries, which analysts at Evercore ISI say should give companies in the sector a “significant” boost.
Electric vehicle charging companies’ stocks rose on Monday: ChargePoint Holdings rose 13%, Volta 19%, Blink Charging 26% and EVGO 35%.