5 Best Infrastructure Stocks To Buy Now

In this article, we discuss 5 best infrastructure stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Infrastructure Stocks To Buy Now. 

5. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 34

Vulcan Materials Company (NYSE:VMC) is an American producer and supplier of construction aggregates, operating through Aggregates, Asphalt, Concrete, and Calcium segments. The company’s products are utilized in the construction and maintenance of highways, streets, and other public infrastructure applications, as well as the construction of residential, commercial, industrial, and other non-residential facilities. Vulcan Materials Company (NYSE:VMC) is one of the best infrastructure stocks to invest in. 

On October 14, Vulcan Materials Company (NYSE:VMC) declared a quarterly dividend of $0.40 per share, in line with previous. The dividend is payable on December 5, to shareholders of record on November 15. The dividend yield on November 1 came in at 0.98%. 

DA Davidson analyst Brent Thielman on October 12 maintained a Buy recommendation on Vulcan Materials Company (NYSE:VMC) but lowered the price target on the stock to $200 from $205. The analyst attributed his price target change to short-term volume slowness but noted that some non-residential suppliers suggest that positive pipelines into 2023 “lend cautious optimism” for Vulcan Materials Company (NYSE:VMC).

According to Insider Monkey’s data, 34 hedge funds were bullish on Vulcan Materials Company (NYSE:VMC) at the end of June 2022, compared to 36 funds in the preceding quarter. Sharlyn C. Heslam’s Stockbridge Partners is the biggest position holder in the company, with more than 2 million shares worth $286.4 million. 

Here is what Weitz Investment Management Partners Value Fund has to say about Vulcan Materials Company (NYSE:VMC) in its Q4 2021 investor letter:

“Vulcan Materials contributed to returns due to solid results and a bright outlook for the company’s prosaic, essential products. Aggregate volumes and backlogs are strong across end markets, pricing momentum is robust, and the federal infrastructure bill adds visibility into the amount of money that will be allocated to infrastructure projects.”

4. Parker-Hannifin Corporation (NYSE:PH)

Number of Hedge Fund Holders: 35

Parker-Hannifin Corporation (NYSE:PH) was founded in 1917 and is headquartered in Cleveland, Ohio. The company manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. On October 26, Parker-Hannifin Corporation (NYSE:PH) declared a quarterly dividend of $1.33 per share. The dividend is distributable on December 2, to shareholders of the company as of November 14. 

Stifel analyst Nathan Jones on October 11 reaffirmed a Buy recommendation on Parker-Hannifin Corporation (NYSE:PH) and lowered the price target on the shares to $280 from $325. Market indicators point towards some weakening of short cycle industrial demand, noted the analyst, who goes into the Q3 earnings season for the Americas multi-industry group “cautious on short cycle industrial” and leans towards energy, infrastructure, and water names in general.

According to Insider Monkey’s second quarter database, 35 hedge funds reported owning stakes worth $1.07 billion in Parker-Hannifin Corporation (NYSE:PH), compared to 39 funds in the earlier quarter worth $1.3 billion. Andreas Halvorsen’s Viking Global held the biggest position in the company, comprising over 3 million shares valued at $755.5 million. 

Here is what Oakmark Fund specifically said about Parker-Hannifin Corporation (NYSE:PH) in its second quarter 2022 investor letter:

“Parker-Hannifin Corporation (NYSE:PH), a U.S. company that specializes in motion and control technologies, is suffering from what we believe are investor misunderstandings and misjudgments, despite the efforts of the company’s unusually strong management team. In our opinion, since his promotion in 2015, CEO Thomas Williams has vastly improved operations and shifted the product portfolio to longer cycled, higher growth, higher margin and higher return end markets. The results are impressive. Margins, returns and earnings have increased substantially. With the expected closing of the Meggitt acquisition in the September quarter, the highly depressed aerospace segment will be its largest end market. We anticipate a rebound in aerospace revenue, which—combined with the company’s strong position in attractive businesses, including clean technologies and factory automation—should accelerate revenue growth. Parker Hannifin trades at a discount to other high-quality industrials, which we believe is unwarranted since its growth and returns should be similar or better. At a low-teens multiple of next year’s normalized cash earnings, Parker Hannifin is an attractive investment, in our view.”

3. Martin Marietta Materials, Inc. (NYSE:MLM)

Number of Hedge Fund Holders: 39

Next on our list of the best infrastructure stocks is Martin Marietta Materials, Inc. (NYSE:MLM), a natural resource-based building materials company that supplies aggregates, crushed stone, sand, gravel products, ready mixed concrete and asphalt, and specialty cement for use in infrastructure projects, as well as non-residential and residential construction markets. 

On October 10, Citi analyst Anthony Pettinari reiterated a Buy rating on Martin Marietta Materials, Inc. (NYSE:MLM) but slashed the price target on the stock to $386 from $410. The analyst trimmed estimates in North America building products ahead of the Q3 earnings season to factor in weak residential demand, ongoing cost pressure, unfavorable weather, and labor and material availability issues. Within building products, the analyst prefers aggregates producers as he expects higher public construction to broadly offset softening residential demand.

According to Insider Monkey’s data, 39 hedge funds held stakes in Martin Marietta Materials, Inc. (NYSE:MLM) at the end of June 2022, compared to 35 funds in the last quarter. Select Equity Group featured as the largest position holder in the company, with approximately 4 million shares worth $1.2 billion. 

Here is what Diamond Hill Capital Management specifically said about Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2022 investor letter:

“Martin Marietta Materials, Inc. (NYSE:MLM) is the second largest aggregates producer and distributor in the US, with competitively positioned cement, ready-mix, asphalt and magnesia specialty businesses. Its share price recently sold off due to concerns about a slowdown in the US residential housing market, giving us the opportunity to initiate a position at an attractive price. We believe Martin Marietta is strategically positioned in markets with strong growth potential, in states that have multi-year department of transportation (DOT) plans approved, and the Infrastructure Investment and Jobs Act (IIJA) will begin distributing funds later this year. Additionally, in the event of an economic downturn, the company has the ability to pull from its prior playbook as a stronger, more geographically diversified player to acquire smaller companies, resulting in better market consolidation.”

2. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 39

Eaton Corporation plc (NYSE:ETN) is one of the premier infrastructure stocks to invest in. It operates as a power management company worldwide, providing electrical components, industrial components, power distribution and assemblies, and residential products, among others. On October 25, Eaton Corporation plc (NYSE:ETN) declared a quarterly dividend of $0.81 per share, in line with previous. The dividend is distributable on November 30, to shareholders of record on November 10. For the fourth quarter of 2022, the company expects organic growth of 13% to 15% and adjusted earnings per share between $2.00 and $2.10, versus a $2.06 consensus. 

On October 13, investment advisory Deutsche Bank maintained a Buy recommendation on Eaton Corporation plc (NYSE:ETN) but lowered the firm’s price target on the shares to $160 from $174. Analyst Nicole Deblase issued the ratings update. 

According to Insider Monkey’s data, 39 hedge funds were bullish on Eaton Corporation plc (NYSE:ETN) at the end of Q2 2022, compared to 42 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.6 million shares worth $205 million.  

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Eaton Corporation plc (NYSE:ETN) in its Q1 2022 investor letter:

“We also added to Eaton (NYSE:ETN), a market leader in the electrical equipment industry and a position begun late in 2021. Eaton’s products enable the electrification of the power grid and, importantly, EV charging infrastructure. Share prices should benefit as EVs grow and investments increase to improve grid efficiency and resilience.”

1. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 48

Crown Castle Inc. (NYSE:CCI) operates and leases cell towers across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless services. On October 20, Crown Castle Inc. (NYSE:CCI) declared a $1.565 per share quarterly dividend, a 6.5% increase from its prior dividend of $1.470. The dividend is payable on December 30, to shareholders of record on December 15. Crown Castle Inc. (NYSE:CCI)’s dividend yield on November 1 came in at 4.70%. It is one of the best infrastructure stocks to invest in.

On October 26, RBC Capital analyst Jonathan Atkin maintained an Outperform rating on Crown Castle Inc. (NYSE:CCI) but lowered the price target on the shares to $150 from $202. The company’s Q3 results were in-line, and the analyst set a more conservative target multiple given the macroeconomic environment. Crown Castle Inc. (NYSE:CCI) and towers overall are still well positioned to recover once the macro and financing conditions become stable, the analyst added.

According to Insider Monkey’s data, Crown Castle Inc. (NYSE:CCI) was part of 48 hedge fund portfolios at the end of June 2022, compared to 50 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 2.8 million shares worth $485.8 million. 

Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about Crown Castle International Corp. (NYSE:CCI) in its Q1 2022 investor letter:

“U.S. communications company Crown Castle International (NYSE:CCI) was the largest detractor from quarterly performance. Crown Castle is the leading independent owner and operator of wireless communications infrastructure in the U.S. with a portfolio of approximately 40,000 towers. The stock underperformed as, driven by rising interest rates, investors rotated away from defensive into more value-oriented sectors. Communications infrastructure remains attractive, however, as companies continue to deploy greater capital spend to support the strong tailwinds from 5G.”

You can also take a look at Best Housing Stocks To Buy and Best Stocks For Beginners with Little Money. 

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