The Road Ahead
It's been a full 18 months since Congress passed its last highway bill, and that can only mean one thing... the money is finally starting to flow to the companies that build roads. That's why Cramer said it's time to start picking up shares of Cemex (CX) and Vulcan Materials (VMC).
There are a lot of things going right for the aggregate and cement makers, including a huge boost in a federal loan program, states increasing funds for their own infrastructure projects and the recovering non-residential construction industry.
Cemex, based in Mexico, is the third-largest cement maker on Earth, with 21% of its earnings stemming from the U.S., 40% from Mexico and another 28% from northern Europe. The company just completed a major restructuring, strengthening its balance sheet and making it a great bet on a recovery in infrastructure spending.Vulcan Materials is the best pure-play on U.S. construction and is the higher-risk, higher-reward stock of the two. The company never recovered to its 2007 highs of $121 a share, trading today at just $57 a share. Vulcan has a superior geography footprint, said Cramer, and investors shouldn't fear its 87 multiple as the earnings estimates will increase dramatically once stalled projects start moving again.