In this article, we discuss the 10 infrastructure stocks to buy under $10. If you want to skip our detailed analysis of these stocks, go directly to the 5 Infrastructure Stocks to Buy Under $10.
Interest in infrastructure stocks has exploded since United States President Joe Biden signed the $1 trillion Infrastructure Plan into law on November 15. The plan envisions increased government spending on the rebuilding of roads, bridges, airports, and other important projects at the state and local levels. It has also set aside hundreds of billions of dollars for improving high-speed broadband access across the country. The infrastructure plan is accompanied by a social safety net plan worth $1.7 trillion.
According to the details of the plan, released by the White House, priority spending on infrastructure would translate into 20,000 miles of rebuilt roads, projects to eliminate lead pipes from water supplies across the country, and repairs to economically important bridges. Steel producers, cement companies, communications firms, and even technology companies stand to benefit from the plan. Since supply chain issues have dogged the post-pandemic economic recovery, the plan also aims to give tax breaks to US-based chipmakers.
The global demand for infrastructure investment is rising. A report by professional services firm PwC claims that this need is giving rise to $4 trillion worth of investments in the infrastructure industry every year. Sustainability and the impact of technology are the two most important factors shaping infrastructure spending.
As the government incentivizes manufacturing in the United States, some of the top stocks to buy to benefit from the plan include Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), among others discussed in detail below. In addition to these relatively elite options, there are several infrastructure stocks trading below $10 which could prove to be a good bargain for shrewd investors in the coming months.
Our Methodology
These were picked based on business fundamentals and analyst ratings. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Photo by Denys Nevozhai on Unsplash
Infrastructure Stocks to Buy Under $10
10. Cementos Pacasmayo S.A.A. (NYSE:CPAC)
Number of Hedge Fund Holders: N/A
Share Price as of November 28: $6.53
Cementos Pacasmayo S.A.A. (NYSE:CPAC) is a cement company based in Peru. It was founded in 1949 and has a market cap of $544 million. It has an impressive dividend history and recently declared an annual dividend of $1.0552 per share.
In earnings results for the third quarter, posted in late October, Cementos Pacasmayo S.A.A. (NYSE:CPAC) reported a net income of S/42 million. The gross margin was 29.3%. The 52-week price range of the stock lies between $5.1 and $9.5.
Cementos Pacasmayo S.A.A. (NYSE:CPAC) stock rallied in the first half of the year after posting encouraging earnings results. Over the past three months, the stock has returned more than 18% to investors.
Just like Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), Cementos Pacasmayo S.A.A. (NYSE:CPAC) is one of the stocks attracting the attention of hedge funds.
9. Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH)
Number of Hedge Fund Holders: 1
Share Price as of November 28: $8.52
Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) markets specialty piping and leak detection systems. The stock has jumped in the past few weeks on the back of a $3 million share repurchase program and the announcement of a contract win in Egypt worth $5 million.
Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) beat market expectations on earnings per share for the second quarter by $0.38. The revenue over the period was close to $40 million, up 95% year-on-year.
At the end of the third quarter of 2021, 1 hedge fund in the database of Insider Monkey held stakes worth $1.8 million in Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH).
8. DIRTT Environmental Solutions Ltd. (NASDAQ:DRTT)
Number of Hedge Fund Holders: 6
Share Price as of November 28: $2.47
DIRTT Environmental Solutions Ltd. (NASDAQ:DRTT) markets interior solutions for commercial spaces. Some of the services offered by the firm include construction solutions for walls, ceilings, and floors, as well as piping systems and network infrastructure.
DIRTT Environmental Solutions Ltd. (NASDAQ:DRTT) has a market cap of $203 million and posted $117 million in revenue last year. Earlier this year, the company opened up a manufacturing facility in South Carolina.
At the end of the third quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $48 million in DIRTT Environmental Solutions Ltd. (NASDAQ:DRTT), up from 4 in the previous quarter worth $71 million.
In its Q2 2021 investor letter, JDP Capital Management, an asset management firm, highlighted a few stocks and DIRTT Environmental Solutions Ltd. (NASDAQ:DRTT) was one of them. Here is what the fund said:
“DIRTT Environmental Solutions Ltd. (NASDAQ: DIRTT and TSX: DRT.TO) is a small-cap Canadian designer and manufacturer of pre-fabrication interiors for commercial buildings in North America. The company uses a virtual reality platform to engineer interior building infrastructure with a high degree of precision and cost efficiency. Projects are sold through a network of third-party dealers. Video: What is DIRTT Environmental?
JDP initially invested in DIRTT in March 2020 at a price of $1.15 per share (USD). In the first half of 2021 the stock was up 78%, and 280% overall from our initial investment.
DIRTT was introduced to us by Shaun Noll who is one of the best investors I know. Shaun has a unique process and mindset for uncovering hidden gems with both multi-bagger potential and a strong margin of safety. Together with a family office, Shaun acquired 12.2% of DIRTT in 2020.
We were attracted to DIRTT because it is a small company with big ambitions to transform the manual construction processes using software and precision manufacturing.
DIRTT’s CEO is Kevin O’Meara who co-founded Builders FirstSource (BLDR) a $9+ billion market cap business started in 1998. We admire Kevin’s vision, drive, and willingness to be held accountable for long-term financial goals.
Between February and mid-March 2020, DIRTT declined ~65% because the pandemic had largely halted office and hotel renovations. We found enough comfort in the cash flow of the company’s medical division (hospitals/clinics/labs) to make an initial investment at an 87% discount to the previous 52-week high.
Our experience owning Autodesk in the past helped us recognize the growing leverage in DIRTT’s business model as its software becomes increasingly entrenched within commercial interior construction processes.
DIRTT is in a great position to benefit from an outsized opportunity in office reconfigurations to meet social distancing standards in the post-COVID workplace.
DIRTT also has meaningful owned assets in five state-of-the-art manufacturing faculties including a new plant in South Carolina that recently doubled the company’s capacity.
The company is conservatively financed and recently completed a capital raise on favorable terms which adds increased operational flexibility in the event the economic recovery takes longer than hoped.”
7. Hill International, Inc. (NYSE:HIL)
Number of Hedge Fund Holders: 7
Share Price as of November 28: $2.11
Hill International, Inc. (NYSE:HIL) provides project and construction management services. The company has a market cap of $119 million and posted $296 million in revenue last year. The 52-week price range of the stock lies between $1.6 and $3.3.
In late October, Hill International, Inc. (NYSE:HIL) announced that it had been awarded a contract worth $125 million to provide professional services to Southern California Edison. The contract will be valid for five years and include project management and support services.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Engine Capital is a leading shareholder in Hill International, Inc. (NYSE:HIL) with 5.5 million shares worth more than $11 million.
At the end of the third quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $31 million in Hill International, Inc. (NYSE:HIL), up from 6 in the previous quarter worth $38 million.
6. Orion Group Holdings, Inc. (NYSE:ORN)
Number of Hedge Fund Holders: 10
Share Price as of November 28: $4.27
Orion Group Holdings, Inc. (NYSE:ORN) is a Texas-based construction company. It recently posted earnings for the third quarter, reporting a revenue of $139 million, beating market predictions by $7.2 million.
B Riley analyst Alex Rygiel has a Neutral rating on Orion Group Holdings, Inc. (NYSE:ORN) stock with a price target of $4.50.
At the end of the third quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $13 million in Orion Group Holdings, Inc. (NYSE:ORN), down from 12 in the previous quarter worth $15 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Orion Group Holdings, Inc. (NYSE:ORN) with 957,944 shares worth more than $5.2 million.
In addition to Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD), Tesla, Inc. (NASDAQ:TSLA), and NVIDIA Corporation (NASDAQ:NVDA), Orion Group Holdings, Inc. (NYSE:ORN) is one of the stocks on the radar of institutional investors.
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Disclosure. None. 10 Infrastructure Stocks to Buy Under $10 is originally published on Insider Monkey.
