The infrastructure bill plans to dedicate more than half of the $1 trillion in resources to roads, bridges, renewable energy infrastructure, and electric vehicle (EV) charging stations. Many companies are set to benefit, from large to small caps, so here are some companies to keep an eye on.
1. Caterpillar (large cap)
Caterpillar (NYSE: CAT) is one of the world’s leading suppliers of construction equipment. It has a portfolio of over 40 brands specifically dedicated to the construction, energy, and transportation industries, so it’s a perfect fit into this infrastructure bill.
With over $48 billion in revenue in the last 12 months, it’s only just starting to make a rebound from its pandemic woes. Another pro with Caterpillar is it offers a healthy dividend of 2.14% and it has continued to increase it the past 28 years in a row, despite boom and bust cycles.
Overall, this is a resilient business, with a longstanding history, and is likely to continue to do extremely well unless we see a major economic downturn.
2. Enphase (mid cap)
Enphase (NASDAQ: ENPH) is a technology-based energy solutions company. It builds solar and battery solutions that are integrated with its technology platform, which intends to bring cost savings and a lower carbon footprint for homeowners and businesses alike.
With green energy solutions a priority in this bill, new home, and commercial builds could benefit from Enphase products, and a 26% solar investment tax credit is still available once the build commences before December 2022. After that, the credit drops to 10% so there could be a construction ramp-up before then. The company reported record revenue of $381 million in its most recent quarter, it has healthy margins of circa 40%, it has over $1.4 billion in cash and cash equivalents, and it continues to invest heavily in research and development, as growth is a priority.
Enphase’s Investor Day took place on Tuesday, November 16, 2021, for anyone interested.
3. Blink Charging (small cap)
Blink Charging (NASDAQ: BLNK) is an EV charging solutions company. The Blink network is connected directly to the cloud where you can access its platform to see charging times, costs, availability, usage stats, as well as map and mobile integrations.
Blink equipment qualifies for rebates and tax incentives that attract businesses to its products, including some of the largest corporations like Starbucks, McDonald’s, and Walmart.
In its most recent quarter, total revenue increased over 600% to $6.4 million, and product sales increased over 750% to $4.8 million, which is amazing growth but keep in mind, this small-cap is still in its early stages.
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Financial Writer at MyWallSt
David's favorite stock is Google. He's a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.