US infrastructure spending plans favor investing in aggregates and building materials stocks such as Boise Cascade, Eagle Materials, GMS, and Louisiana-Pacific.
At the end of last year, the US administration announced a huge infrastructure spending plan. It will focus on funding for roads and bridges, money for transit and rail, broadband upgrade, airports, ports, and waterways upgrade – to name a few.
So what aggregates and building materials stocks to buy to make the most of US spending plans? Here are four names to consider: Boise Cascade, Eagle Materials, GMS, and Louisiana-Pacific.
Boise Cascade (NYSE:BCC) is based in Boise, Idaho. It manufactures wood products and also distributes building materials, and its stock price gained +28.31% in the past twelve months.
Boise pays a quarterly dividend and it increased it for the past four consecutive years. The company increased its YoY revenue by 44.77%, higher than the sector median by 195.28%.
Eagle Materials (NYSE:EXP) provides heavy construction materials and light building materials. Its revenue is estimated to reach $1.851 billion in 2022 and to grow to $2.5 billion by 2026.
Just like Boise, Eagle Materials pays a dividend too. The dividend yield is 0.78% in 2022, forecast to increase to 1% by 2026.
Eagle Materials’ stock price has been upgraded by buy at Northcoast in January this year, with a price target of $193/share. Out of the 17 analysts following the stock price, 16 have issued buy ratings, and only one has a neutral rating. No analyst has a sell recommendation.
GMS (NYSE:GMS) makes wallboards and complementary building products and it is based in Tucker, Georgia. The company operated with a gross profit margin for the past 12 months of 32.11%, higher than the sector median by 10.01%.
GMS does not pay a dividend, and the stock price advanced 28.07% in the past year. YoY revenue growth exceeds the sector median by 139.83%.
Louisiana-Pacific (NYSE:LPX) is based in Nashville, Tennessee, and it serves the outdoor structure market. Its gross profit margin exceeded the sector median by 50.11% in the past 12 months, and it pays a quarterly dividend; the dividend payout ratio is 4.91%, and the forward dividend yield is 1.37%.