Wells Fargo lists four industrial stocks as “the most immediate and direct beneficiaries” of the new infrastructure spending law: (WAB) - Get Free Report, (WCC) - Get Free Report, (JBT) - Get Free Report and EPAC.
That’s Westinghouse Air Brake Technologies, Wesco International, John Bean Technologies and Enerpac Tool.
Westinghouse Air Brake recently traded at $96.14, up 2%; Wesco was at $138.25, up 1%; John Bean traded at $165.52, little changed; and Enerpac was at $23.45, up 3%. The S&P 500 firmed 0.18%.
Westinghouse is a Pittsburgh freight and transit company, Wesco is a Pittsburgh logistics company, John Bean is a Chicago food and aerospace technology company and Enerpac is a Menomonee Falls, Wis., specialty machinery company.
“WAB is a direct beneficiary of the $39 billion transit funding,” wrote Wells analyst Allison Poliniak-Cusic. “It's not clear how funds will be allocated. However, prior [government] injections … have proven to accelerate WAB's project-related growth.”
Meanwhile, “reports indicate 18 million to 43 million Americans lack access to broadband,” she wrote.
“The $65 billion in incremental funding follows the [Federal Communications Commission's] $20 billion committed spend through the Rural Digital Opportunity Fund.”
WCC benefits from partnering with utilities, municipalities and telecommunications companies, Poliniak-Cusic said.
Also, “as the No. 1 domestic supplier of gateway passenger bridges and ground support equipment, JBT is a clear beneficiary of … the $25 billion in airport infrastructure [assistance],” she said.
Finally, “we view EPAC as a clear winner on multiple fronts, most notably $110 billion in roads and bridges [assistance] and $66 billion in rail infrastructure [assistance].”