Shares of U.S. Concrete (USCR) have surged 22% since Election Day, but there is more to the bullish story than having a former builder in the White House, said Craig Hodges, portfolio manager of the Hodges Fund (HDPMX) .
"U.S. Concrete is concentrated in areas that have population growth that can support long-term demand from housing, as well as infrastructure spending on airports, roads, bridges, and much needed highway investment," said Hodges. "And consolidation opportunities for the company remain robust, as the ready-mix concrete market is highly fragmented among smaller operators."
The Hodges Fund is up 1% thus far in 2017, according to Morningstar. The $419 million fund has returned an average of 19% annually over the past five years, outpacing 99% of its peers in Morningstar's mid-cap growth category.
Hodges is also a fan of Forterra (FRTA) , a water infrastructure provider that came public last October. Hodges said the Irving, Texas-based company should have strong secular demand for its pipes and precast products in the next few years, especially with the expected infrastructure boom.
Finally, Hodges is bullish on Controladora Vuela Compania (VLRS) , a low cost Mexican airline that has dropped nearly 30% since Election Day.
"Demand for seats is growing faster than capacity," said Hodges. "Demand is coming from passengers who would typically travel by bus to visit friends and family. And the fundamentals of business exceed those of its U.S. peers."