3 infrastructure stocks to put on your shopping list now

Infrastructure stocks represent a unique opportunity for investors to capitalize on the growth of the US economy. As governments and the private sector invest billions in expanding modern infrastructure, there are a number of companies that will be the main beneficiaries.

The biggest tailwind since the end of the decade is the Biden administration’s recent bipartisan infrastructure bill. This groundbreaking agreement will rebuild and modernize America’s roads, bridges, railroads, grids and energy infrastructure. Additionally, the $1.2 trillion infrastructure deal will create 1.5 million new jobs per year over the next 7 years. With interest rates expected to decline through 2025, these outstanding companies are in a unique position to expand their revenue, earnings and cash flow.

Now, let’s discover the top infrastructure stocks to put on your buy list for August 2024!

Eaton (ETN)

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Eaton (NYSE:ETN), a diversified energy management company, is one of the best infrastructure stocks to buy in August. After an incredible start to 2024, the company has continued to build momentum.

Eaton’s infrastructure products are strategically positioned to benefit from the increased demand for green energy solutions. The company’s expertise in electrical, hydraulic and industrial control systems are key components for powering modern infrastructure. These markets are growing rapidly, and Eaton’s growing backlog reflects strong demand.

In fiscal 2024, Eaton expanded into new markets with the acquisition of UK-based Exertherm. Likewise, the electric segment in the Americas is growing by double digits, and the new addition has strengthened key markets such as data centers. In the second quarter, revenue rose 8% year-over-year (YOY) to $6.35 billion. In addition, net income increased 33% year-over-year to $993 million, including record segment margins up 210 basis points to 23.7%. With full-year guidance raised for the second time, investors should watch closely through the end of the year.

Emcor Group (EME)

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Emcor Group (NYSE:EME), a leading mechanical and electrical construction company, is another company with tremendous growth potential. The company’s services are an integral part of modern infrastructure development, which aligns well with the global LEED green building standard.

Emcor Group is currently firing on all cylinders in 2024 after posting a record year in revenue, earnings and free cash flow. Its rest is also growing considerably, driven by strong demand for large infrastructure projects in the construction and industrial services segments. The increasingly difficult macroeconomic environment has not affected the company’s prospects at all. In addition, management continued to issue strong guidance, with remaining performance obligations near record levels.

In its latest quarterly results, revenue rose 20% year over year to $3.67 billion. Net income rose 76% from last year to $248 million, with its electrical and mechanical construction segments reporting record operating income and margin. In addition, the remaining performance obligations of $9 billion instill significant confidence in the going forward of the business. This makes EME stock one of the top infrastructure stocks to watch in 2024.

Sterling Infrastructure (STRL)

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Sterling Infrastructure (NASDAQ:STRL), an American company specializing in e-infrastructure, transportation and construction solutions is the final choice on the list. His focus on critical infrastructure projects as part of the bipartisan infrastructure deal makes him a noteworthy candidate with incredible growth potential.

Sterling Infrastructure is a much smaller company than its peers, but has emerged as an emerging player since the 2020 COVID-19 pandemic. The company has seen substantial growth in revenue, earnings and free cash flow, which has translated into earnings stock price robustness.

Over the past 5 years, shares have returned 854% to shareholders, compared to S&P 500 84% Despite this unprecedented rally, the stock still looks cheap at current levels. This is due to its continued margin expansion and pending growth driven by data center demand and artificial intelligence. In the second quarter, revenue rose 12% year-over-year to $583 million. Additionally, net income rose 31% to $52 million, or $1.67 per share. After a strong first half of the year, CEO Joe Cutillo raised the company’s revenue, net earnings and EBITDA guidance for FY24.

As of the date of publication, Terel Miles did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.