Best US Infrastructure Stocks to Watch in 2023

In an era where infrastructure is the backbone of economic growth, investing in the right stocks can be a game-changer. The United States, with its vast network of roads, bridges, and public utilities, offers numerous opportunities for investors looking to capitalize on the infrastructure sector. This article delves into the best US infrastructure stocks to watch in 2023, highlighting key players and their potential for growth.

1. Cement Companies

Cement companies play a crucial role in infrastructure development. As the foundation for many construction projects, their stocks often reflect the health of the infrastructure sector. Cemex S.A.B. de C.V. (NYSE: CX) and Votorantim Cimentos S.A. (NYSE: VC) are two notable players. Both companies have a strong presence in the US and are involved in various infrastructure projects, making them solid investments.

2. Public Utility Companies

Public utility companies are vital for the day-to-day operations of society. Stocks in this sector often benefit from stable cash flows and government support. NextEra Energy, Inc. (NYSE: NEE) is a leader in renewable energy and utility infrastructure, while Exelon Corporation (NYSE: EXC) operates one of the largest utility networks in the country. Both companies offer attractive dividend yields and long-term growth potential.

3. Transportation Stocks

Transportation infrastructure is essential for economic mobility. Companies involved in the construction, maintenance, and operation of roads, bridges, and tunnels can be lucrative investments. AECOM (NYSE: ACM) and Kiewit Corporation (NYSE: KWT) are two such companies. They are involved in a wide range of transportation projects and have a strong track record of growth.

4. Renewable Energy Stocks

The shift towards renewable energy is a significant trend in infrastructure. Companies involved in the development and installation of renewable energy projects, such as wind turbines and solar panels, are poised for substantial growth. First Solar, Inc. (NASDAQ: FSLR) and Orsted A/S (OTCMKTS: ORSTY) are leading players in the renewable energy sector, offering investors a chance to profit from the global transition to clean energy.

5. Construction Equipment Manufacturers

Construction equipment manufacturers supply the tools and machinery needed for infrastructure projects. Caterpillar Inc. (NYSE: CAT) and Deere & Company (NYSE: DE) are two of the largest players in this space. Both companies have a strong presence in the US and are well-positioned to benefit from increased infrastructure spending.

Case Study: Caterpillar Inc.

Caterpillar Inc. is a prime example of a company that has thrived in the infrastructure sector. The company has a diverse product line, including construction equipment, engines, and turbines. As infrastructure spending in the US has increased, Caterpillar has seen significant growth in its sales and revenue. In 2022, the company reported record revenue of $55.4 billion, a 21% increase from the previous year.

In conclusion, investing in the best US infrastructure stocks can be a wise decision for investors looking to capitalize on the growth of the infrastructure sector. By focusing on companies involved in cement production, public utilities, transportation, renewable energy, and construction equipment, investors can gain exposure to a wide range of infrastructure-related opportunities. As the US continues to invest in its infrastructure, these companies are well-positioned to benefit and deliver strong returns to their shareholders.

us stock market today