In this article we discuss the 5 best stocks that will gain from Biden’s job and infrastructure plan. If you want to read our detailed analysis of Biden’s economic recovery plan, go directly to 10 Best Stocks That Will Gain From Biden’s Job and Infrastructure Plan.
5. American Electric Power Company, Inc. (NASDAQ: AEP)
American Electric Power Company, Inc. (NASDAQ: AEP) is an Ohio-based electric company meeting the electrical needs of millions of American citizens in more than ten states across the country. President Joe Biden has marked $100 billion to modernize the American electrical infrastructure, and AEP could gain from the plan as it owns the largest electricity transmission system in the country. The firm also has a stake in the electrical transmission system of Texas, a state that Biden has singled out as long overdue for an upgrade in electric transmission.
The market cap of the company is more than $43 billion and it posted a revenue of close to $15 billion in 2020. Morgan Stanley, a leading investment bank, earlier this year urged investors to pick AEP. Stephen Byrd, an analyst at the investment bank, said stocks of firms like American Electric were on the growth trajectory as they moved away from coal power and towards clean energy in line with government initiatives in this regard. American Electric is 5th on our list of top 10 best stocks that will gain from Biden’s jobs and infrastructure plan.
The company is also getting the attention of the smart money, as 32 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 30 funds a quarter earlier.
4. Union Pacific Corporation (NYSE: UNP)
Union Pacific Corporation (NYSE: UNP) is a Nebraska-based railroad holding company. It is one of the largest rail providers in the Western US, posting strong profits that it expects to grow by 31% over the next two years. The stock of the firm saw a new high of $219 over the past few months and was in the portfolio of 68 hedge funds at the end of last year. The company has a market cap of more than $147 billion and posted more than $19.5 billion in revenue in December 2020. It is expected to benefit from the spending on American infrastructure in the next few years if the American Jobs Plan is passed.
Leading investment firm Morgan Stanley increased the price target of Union Pacific from $170 to $180 earlier this week. The investment firm had an Equal Weight rating on the stock of UNP. Another investment bank, Credit Suisse Group, had set the rating of Union Pacific stock to Outperform and revised their price target to $243 earlier this year. Stocks for the railroad company were up 0.11% in trading earlier today. The firm is 4th on our list of top 10 best stocks that will gain from Biden’s jobs and infrastructure plan.
Chris Hohn’s TCI Fund Management, with 6 million shares of UNP, is the biggest stakeholder in the company.
3. Evoqua Water Technologies Corp. (NYSE: AQUA)
Evoqua Water Technologies Corp. (NYSE: AQUA) is a Pennsylvania-based holding company that provides water treatment solutions. The firm offers capital systems and related recurring services for treating industrial process water, utility water, and wastewater. It has served the healthcare, pharmaceutical, food and beverage, and other industries. Evoqua also makes products that filter and separate clean and dirty water. Since the American Jobs Plan envisions the provision of clean water to every American household, the firm could benefit from it.
It has a market cap of more than $3 billion and posted more than $1.4 billion in revenue in September 2020. Over the past month, the share price of the company stock has increased by more than 7%. The price of shares is 30% higher than what it was three years ago. The earnings per share for the stock have increased by 8.8% in the past twelve months. The company is 3rd on our list of top 10 stocks that will gain from Biden’s job and infrastructure plan.
As of the end of the fourth quarter of 2020, Impax Asset Management owns 3.3 million shares of AQUA worth $99.5 million. AQUA accounts for 0.63% of Impax Asset’s total portfolio.
2. Activision Blizzard, Inc. (NASDAQ: ATVI)
Activision Blizzard, Inc. (NASDAQ: ATVI) is a California-based video game holding company. It is one of the largest game companies in North America and Europe in terms of market capitalization and revenue. US President has pushed for increased access to high-speed broadband across the country, and the firm stands to gain as more people will use the entertainment services it offers in a growing digital economy. The COVID-19 pandemic pushed the stock of the firm higher owing to increased video-game demand.
The company has a market cap of more than $75 billion and posted more than $8 billion in revenue in December 2020. Berenberg, a multinational investment bank, earlier this year reiterated a Buy rating on Activision stock despite the reopening of the economy because of the frequency of high quality new content the video game company was releasing. The price target was set at $105 in a 14% upside in outlook. The shares of the company feature 2nd on our list of top 10 best stocks that will gain from Biden’s job and infrastructure plan.
Ken Griffin’s Citadel Investment Group currently holds 4.97 million shares of Activision Blizzard that amounts $461 million. ATVI occupies 0.12% of Citadel’s total portfolio.
1. AECOM (NYSE: ACM)
AECOM (NYSE: ACM) is a California-based American engineering firm. Since infrastructure spending forms the biggest chunk of the American Jobs Plan, the firm will stand to gain a lot from the multitude of new projects that will be initiated by the US government if the plan is approved by Congress. The firm has over 80,000 employees and offers design, construction and engineering services across the country. It also operates an environmental and risk management department for big projects.
The company has a market cap of close to $10 billion and posted more than $13 billion in earnings in September 2020. Last month, the firm was awarded a $2 billion US Air Force contract for infrastructure and facilities. The long-term outlook for the company looks great and with big government projects on the horizon, the stock prices could rise and offer handsome returns to investors. The company ranks 1st on our list of top 10 best stocks that will gain from Biden’s job and infrastructure plan.
According to our database, the number of ACM’s long hedge funds positions decreased at the end of the fourth quarter of 2020. There were 37 hedge funds that hold a position in AECOM compared to 39 funds in the third quarter. The biggest stakeholder of the company is Jeffrey Smith’s Starboard Value LP, with 7.8 million shares, worth $386.9 million.
You can also take a peek at 10 Most Profitable Cash-Only Businesses To Avoid Taxes and Unknown Billionaire Phill Gross’ Top 10 Stock Picks.
