The momentum seems to be surprisingly on the side of the bipartisans in Congress – surprising, given the political context at present in the US. All to the good. Folks from the right and left getting on the same page.
Whatever your bias, it is presently the case that a divided Senate has now finalized the text of a $1 trillion bipartisan infrastructure bill.
It is likely a throwback moment to sunnier political days of the past, rather than the dawn of a revival of unity in America. Still, one can’t argue with the moment. And that moment has very important implications for investors.
Chief among them is the job of picking out which names may benefit most as that trillion dollars heads out the door to fund a variety of projects around the country over coming years.
This bill stands to drive core results for companies like Pioneer Natural Resources Co (NYSE:PXD), Vulcan Materials Company (NYSE:VMC), Martin Marietta Materials, Inc. (NYSE:MLM), Camber Energy Inc (NYSEAMERICAN:CEI), Caterpillar Inc. (NYSE:CAT), Deere & Company (NYSE:DE), Oshkosh Corp (NYSE:OSK), and Crown Castle International Corp (NYSE:CCI).
As such, we survey a few of the more aggressive ideas that fit this premise below.
Vulcan Materials Company (NYSE:VMC) bills itself as a company that engages in the provision of basic materials and supply for infrastructure and construction industry. It operates through the following business segments: Aggregates, Asphalt, Concrete and Calcium.
The Aggregates segment produces and sells asphalt mix and ready-mixed concrete primarily in its mid-Atlantic, Georgia, Southwestern, Tennessee and Western markets. The Asphalt segment produces and sells asphalt mix in Arizona, California, New Mexico, Tennessee, and Texas. The Concrete segment produces and sells ready-mixed concrete in California, Georgia, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the Bahamas. The Calcium segment produces calcium products for the animal feed, plastics, and water treatment industries with calcium carbonate material mined at the Brooksville quarry.
Vulcan Materials Company (NYSE:VMC) put out earnings this morning. However, we would expect the results for the past quarter to have little to do with projections for coming performance given the company’s close association with the targets for funding embedded in the infrastructure bill.
However, there may be much more information to be gleaned from the company’s conference call today. According to its latest pre-earnings release, the company will host its second quarter earnings conference call on Wednesday, August 4 at 10:00 a.m. CT (11:00 a.m. ET).
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 2% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 6% in that time on strong overall action.
Vulcan Materials Company (NYSE:VMC) managed to rope in revenues totaling $1.1B in overall sales during the company’s prior reported quarterly financial data — a figure that represents a rate of top line growth of 1.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($890.9M against $565.9M).
Camber Energy Inc (NYSEAMERICAN:CEI) is an interesting speculative player in the oil and gas space that may perfectly fit the mold of a company capable of deriving next-gear growth from the energy demands spurred by a trillion dollars in new in new infrastructure building. In the energy space, it is the companies at the margin that reap the rewards.
With the oil space flirting with another round of new highs on lagging production growth and booming demand, this small-cap big board E&P player with oil and gas properties spread across Oklahoma, Texas, Louisiana, Mississippi, Kansas, and the Gulf Coast, has positioned itself through acquisitions that seem to be outperforming expectations.
Camber Energy Inc (NYSEAMERICAN:CEI) recently announced the completion of another deal with its majority-owned subsidiary, Viking Energy Group, Inc. (OTC US:VKIN), pursuant to which Camber purchased $11 million worth of common stock of Viking.
According to its release, the proceeds from the transaction are to be used by Viking to (i) facilitate the potential acquisition of an approximate 60.5% interest in a company engaged in the manufacture and supply of industrial engines, power generation products, services and custom energy solutions; (ii) facilitate the potential execution of an agreement with respect to the license of a patented carbon-capture system for exclusive use in Canada and for a specified number of locations in the United States; and (iii) for general working capital purposes.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 4% in that timeframe.
Camber Energy Inc (NYSEAMERICAN:CEI) managed to rope in revenues totaling $57K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -99.1%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.1M against $1.6M, respectively).
Caterpillar Inc. (NYSE:CAT) operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other. The Construction Industries segment supports customers using machinery in infrastructure and building construction applications. The Resource Industries segment is responsible for supporting customers using machinery in mining and quarrying applications and it includes business strategy, product design, product management and development, manufacturing, marketing and sales and product support.
The Energy and Transportation segment supports customers in oil and gas, power generation, marine, rail, and industrial applications. The Financial Products segment offers a range of financing alternatives to customers and dealers for caterpillar machinery and engines, solar gas turbines, as well as other equipment and marine vessels. The All Other segment include activities such as the business strategy, product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, engaging tools, and fluid transfers.
Caterpillar Inc. (NYSE:CAT) recently announced second-quarter 2021 sales and revenues of $12.9 billion, a 29% increase compared with $10.0 billion in the second quarter of 2020. The increase was primarily due to higher sales volume driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased their inventories more during the second quarter of 2020 than during the second quarter of 2021.
“Our dedicated global team remains focused on serving our customers, executing our strategy and investing for future profitable growth,” said Caterpillar Chairman and CEO Jim Umpleby. “We’re encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets.”
Even in light of this news, CAT hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -2%.
Caterpillar Inc. (NYSE:CAT) managed to rope in revenues totaling $11.9B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 11.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($11.4B against $26.6B, respectively).