Seven Ways To Play Biden’s Infrastructure Bill After The Senate Passes


1. Xylem

The water technology company is already in a strong position, said Nancy Tengler, chief investment officer of Laffer Tengler Investments.

“They just beat and increased in their latest earnings report,” with digital orders growing 29%, said Tengler, calling the stock “a bit expensive for our valuation work, but not terribly”.

Xylem is up around 27% year-to-date, trading at a futures price / earnings multiple of nearly 47 times.

2. Jacobs Engineering

Tengler’s second choice is Jacobs Engineering, which provides construction services to government agencies and commercial companies around the world.

Up nearly 21% year-to-date, it is still trading at a “reasonable” valuation and is expected to benefit from higher infrastructure spending, she said in an email to CNBC on Tuesday. .

3. Dynamics of steel

Steel producers like Steel Dynamics should also get a boost if the bill passes, Tengler said.

Although the stock is up 85% year-to-date, it only trades at a forward price-to-earnings ratio of less than five times, which means it is expected to rise again, she declared.

4. Technological infrastructure

Biden’s infrastructure plans will be “transformational for many industries,” said Michael Bapis, chief executive officer of Vios Advisors at Rockefeller Capital Management.

“The technological infrastructure surrounding semiconductors, surrounding any part of the infrastructure bill that goes through technology, we believe it will lead the charge for the next 12 to 24 months of economic growth,” he said. he stated in the same interview.

5. Finances

Financial actions could be tangential beneficiaries, Bapis said.

“With the rate hike and hopefully inflation coming, but at a moderate pace and then… national economic growth, financials is probably the leading sector,” he said,

6. ESG

The infrastructure bill will also focus on climate change mitigation, which investors can trade through environmental, social and governance-related assets, Bapis said.

“For people who want to gain a large benefit from growing infrastructure, it goes through the industry and the ESG strategy,” he said.

7. Industrial

One of the most visible beneficiaries will likely be the industrial sector, Bapis added in an email to CNBC on Tuesday.

“Industrial and construction activity is booming and supply chains are stretched,” he wrote. “Supply chain issues will have an impact – tracking supply and demand will also be crucial. “

Disclosure: Laffer Tengler Investments and Tengler personally hold shares in Xylem, Jacobs Engineering and Steel Dynamics.


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