In this article, we discuss the 10 best infrastructure stocks according to Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 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.
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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).
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Disclosure. None. 10 Best Infrastructure Stocks According to Reddit is originally published on Insider Monkey.
