In his weekly Internet address on Saturday, President-elect Barack Obama provided more detail about his economic recovery plan that will be rolled out in the coming weeks, and when he takes office and Congress reconvenes in January.
He noted that the total number of job losses during the current recession totaled nearly 2 million but the plan is expected to save or create at least 2.5 million. It is focused on reducing dependence on oil and rebuilding infrastructure.
This includes a “massive effort to make public buildings more energy efficient” as part of what Mr. Obama said is the single largest new investment in national infrastructure since the creation of the Federal highway system in the 1950s.
Many stocks have already begun to discount this potential catalyst in their valuations, according to Canaccord Adams analyst John Quealy, who expects this theme will continue to attract attention in the next few weeks.
The analyst told clients:
While speculation as to the content and size of an infrastructure-centric stimulus package remains ongoing, the president-elect reiterated his commitment to working with Congress to pass legislation as quickly as possible in January.
He also noted that several companies in Canaccord’s coverage universe are positioned to benefit from a stimulus package.
These include advanced metering leaders Itron Inc. (NASDAQ:ITRI), ESCO Technologies Inc. (NYSE:ESE) and Badger Meter Inc. (NYSE:BMI) as a result of Mr. Obama’s emphasis on intelligent communication, as well as grid upgrading and energy solution provider EnerNOC Inc. (NASDAQ:ENOC). Mr. Quealy said companies like Echelon Corp. (NASDAQ:ELON), Comverge Inc. (NASDAQ:COMV) and PowerSecure International Inc. (NASDAQ:POWR) are also relevant in this space.