Real Money’s Jim Cramer and Bob Lang talk about companies that will likely benefit from the infrastructure bill.
What do tractors, trains, concrete, steel and wireless infrastructure have in common?
Companies from those sectors were recently picked by Jim Cramer and Bob Lang as winners from the $1 trillion infrastructure spending bill making its way through Congress .
Among Lang’s favorites is Martin Marietta Materials (MLM) – Get Martin Marietta Materials, Inc. (MLM) Report, whose daily chart showed a series of higher highs and higher lows including a bullish W-pattern. The Chaikin Money Flow and Relative Strength Index both signaled the stock had more room to run.
Over on Real Money, Lang writes: “From a market perspective, there are going to be plenty of winners lining up for their share of the riches.” Read more about the stocks he’s eying, including Caterpillar (CAT) – Get Caterpillar Inc. Report, Deere (DE) – Get Deere & Company Report and 3M (MMM) – Get 3M Company Report.
Martin Marietta is a supplier of aggregates and heavy building materials, including concrete, with operations spanning 26 states, Canada and the Caribbean. Martin Marietta supplies materials for roads, sidewalks and foundations.
Lang also liked Union Pacific (UNP) – Get Union Pacific Corporation Report, which will benefit from rail and port upgrades across the country. He noted that shares have been trading in a box for almost six months, making a breakout to the upside very likely. He also noted this stock’s strong MACD (Moving Average Convergence Divergence) momentum indicator.
On a recent episode of Cramer’s Mad Money TV show, he and Lang talked about which companies have the most to gain from the bill. Lang is founder of ExplosiveOptions.net, an options trading service.
Cramer said the bill is a big deal, as it represents over a decade’s worth of spending on roads, bridges and other long-overdue projects. The infrastructure bill was approved by the U.S Senate and faces a vote in the House of Representatives before President Joe Biden can sign it into law.
Nucor (NUE) – Get Nucor Corporation Report is a Cramer favorite, and a big beneficiary of increased demand for steel. Lang put a price target of $150 to $175 on Nucor. The company started the year in the $50 range and was trading in the $125 area this week.
Get more trading strategies and investing insights from Cramer, Lang and the other contributors on Real Money.
Lang chose American Tower Corp., (AMT) – Get American Tower Corporation Report a lesser-known infrastructure stock, but one that will benefit from an increase in mobile broadband access. The company makes infrastructure for wireless technology. American Tower has been on an upward trajectory all year.
Cramer recently added Deere to his list of infrastructure picks, noting this stock also has a bullish chart with positive CMF and RSI values. John Deere stock started the year below $300 and has followed an upward trajectory to over $380 per share.